MKTG 380 Midterm 1

the practice of dividing a population into groups having similar attitudes, values, and lifestyles is called...

phsychographic segmentation

Placing a product at a certain point or location within a market in the minds of prospective buyers is known as _____.

positioning

The concept of _____ refers to placing a product at a certain point or location within a market in the minds of prospective buyers.

positioning

A(n) _____ is a tool that helps marketers place products in a market by graphically illustrating consumers' perceptions of competing products within an industry.

positioning map

A(n) _____ is an urbanized county or set of counties with social and economic ties to nearby areas.

primary metropolitan statistical area

The latest ad of Crest toothpaste says "Crest is a cavity fighter." This is an example of a positioning strategy based on:

product application

Facilitating functions of marketing

support and make easier the basic buying and selling, transporting and storing functions. These functions include: Standardizing and grading (offering goods of uniform size and quality) Financing (providing the necessary funds to produce, store, transport, and sell goods and services)

A company's plans that focus largely on its current and near-future activities and are determined by its middle level management are referred to as _____ plans.

tactical

A(n) _____ is a specific segment of consumers a firm believes is most likely to buy its goods and services.

target market

Time utility

the availability of goods and services when consumers desire them

Decisions relating to the product strategy primarily revolve around _____.

the features of the products being released in the market

Budweiser and its stable of beer brands including Michelob, Bud Lite and Budweiser Platinum have faced significant inroads in sales by craft breweries such as Boston Beer Company and Sierra Nevada Brewing Company. The craft breweries represent a(n) ______ to Budweiser.

threat

The leaping jaguar symbol, featured on cars of a particular brand, is a part of the brand's:

trade dress

A theater group promoting a performance to raise funds in the fight against cancer is an example of both cause marketing and event marketing.

true

Branding helps firms build and maintain identity and competitive advantage for their products.

true

In the sales era, firms attempted to match their output to the potential number of customers who would want it. Group of answer choices

true

Targeting a large number of small markets can produce an expensive, complex, and inefficient marketing strategy.

true

The Asian American population is more geographically distributed than either Hispanics or African Americans.

true

The competition between Amtrak, Hertz, and Delta Airlines for the travelers' dollar is considered indirect competition because these services can be substituted for one another.

true

Autocratic Decision

when one family member chooses a product

Decisions about distribution strategy primarily involve challenges such as

when to raise prices to cover costs.

Decisions about distribution strategy primarily involve challenges such as:

which marketing channels to adopt

Eight Universal Marketing Functions

1. Buying 2. Selling 3. Transporting 4. Storing 5. Standardizing and Grading 6. Financing 7. Risk Taking 8. Securing Marketing Information

Asian american consumers

14 million. $700 Billion in buying power. Average household income of $69,000/yr. 87% use internet. 80% have broadband at home. 90% have cell phones. 3/4 have laptops.

African american consumers

42 million people. Buying power above $1 Trillion. 1/3 own a smartphone. 24 million are active internet visitors. 3/4 visit social media sites.

A(n) _____ describes various activities, interests, and respondent's opinions that allows researchers to develop lifestyle profiles.

AIO statement

the 80/20 principle sometimes referred to as...

paretos law

Form Utility

Conversion of raw materials and components into finished goods and services

Paul is a sales representative at Midwest Mazda and recently sold a CX9 to Summer and Brian for their growing family. Paul knows how important it is to reassure his clients that they've made the right decision and usually calls his customers within 2-3 days of purchase to ask what they think so far and remind them of all the great features. He provides lots of reassurance and wants his customers to know he cares about them and values their business. Which of the following is a possible reason why Paul might contact his customers and provide reassurance they made the right purchase decision?

Counter potential cognitive dissonance

Which one of the following statements is true about past geopolitical events and the five eras in the history of marketing?

The marketing era was interrupted by World War II.

Which of the following factors falls under the resource dimension of the VALS system?

Eagerness to buy

Engel's Law

Engel's Law is an economic theory introduced in 1857 by Ernst Engel, a German statistician, stating that the percentage of income allocated for food purchases decreases as income rises. As a household's income increases, the percentage of income spent on food decreases while the proportion spent on other goods (such as luxury goods) increases.

A geographic area that generates 40 percent to 80 percent of a company's sales is called a(n) _____.

GIS

State bureaus of tourism and conventions typically engage in _____ marketing.

Place

BCG Matrix

The Boston Consulting Group Matrix (52)-widely used framework developed by BCG-this market share/growth matrix places strategic business units (SBUs) in a four quadrant chart that plots market share against market growth potential-the position of the SBU along the horizontal axis indicates its market share relative to those of the competitors in the industry-it's position along the vertical axis indicates the annual growth rate of the market-after plotting the firm's business units, planners divide them according to the four quadrants (stars, question marks, cash cows, and dogs)

You have worked in marketing for over twenty years, and you have seen the discipline and the environment it operates in change dramatically over that period of time. However, you believe the marketing environment in the 21st Century is changing at a pace faster than you have ever witnessed.Which of the following statements is TRUE about the marketing environment in the 21st Century?

The activities of the marketing organization must be broader in the 21st Century in order to avoid marketing myopia.

A shoe manufacturer has multiple suppliers for leather. Based on this information, which of the following statements is true? Group of answer choices

The suppliers have lesser bargaining than the buyer.

_____ is a psychographic segmentation system that divides consumers into eight psychographic categories based on resources and self-motivation.

VALS

A motive is an inner state that directs a person to create:

excitement in attaining the need satisfaction.

In the context of cybercrime, luring consumers to provide personal information is called _____.

phishing

The VALS system will categorize consumers who are influenced by symbols of success as:

achievement-motivated consumers.

marketing functions

activities performed within organizations that create value for specific products or services.

The marketing era

an orientation on customers, service, and profit. In this businesses were focused on determining what consumers wanted, their overall level of satisfaction, and producing the goods and services that would produce the largest.

A(n) _____ role is seen when the partners independently make equal numbers of decisions regarding household purchases.

autonomic

Jose is an avid runner and is training for his first marathon. He has several different brands of running shoes but his favorites are Asics because they are lightweight and also support his feet. He's going to purchase another pair for his training and decides that from now on, he will only purchase the Asics brand. Which level of brand loyalty is best described by this example?​

brand insistence

Consumers at the _____ level of brand loyalty, rely on previous experiences with the product when choosing it, if available, over competitors' products.

brand preference

A product that is purchased for use in the production of other goods and services for resale is called a(n) _____.

business product

The tendency of members of a generation with common characteristics to be influenced and bound together by significant events occurring during their key formative years is called the _____.

cohort effect

Organizational Drivers are made up of:

mission, values and story

The tagline used by Walmart, "Save money. Live better" is an example of a positioning strategy that is based on _____.

competitors

A firm that focuses its efforts on profitably satisfying a single market segment is opting for _____ strategy.

concentrated market

A product that is purchased for personal use by an ultimate consumer is called a(n) _____.

consumer

Bobby Flay is a popular celebrity chef who is famous for his use of the grill to create his signature dishes. Recently, Bobby Flay debuted a line of grilling accessories and believes these products will be successful because he has a loyal following among men aged 30 to 60. What type of segmentation is utilized for this new line of grilling accessories? Group of answer choices

demographic

Lululemon Athletica, which specializes in athletic wear for women, recently launched a website featuring Ivivva, a new line of athletic and dance clothing for girls. Based on the information given in this example, Lululemon Athletica is using _____ segmentation to segment its markets.

demographic

_____ defines consumer groups according to variables such as gender, age, income, occupation, and stage in the family lifecycle.

demographic segmentation

A firm that promotes numerous products with several marketing mixes designed to satisfy smaller target segments is said to practice _____.

differentiated marketing

Oscar Mayer, a maker of various meat products, introduced Lunchables, a product specifically aimed at children. This is an example of:

differentiated marketing.

Which of the following factors falls under the resource dimension of the VALS system?

eagerness to buy

Companies often reorganize their operations which might include lay-offs, divestiture of business units, or other decisions linked to their ability to maximize profitability. Which dimension of social responsibility is related to a firm's desire to maximize profits?

economic

First time drivers who are trying to decide which car to buy and how to select an insurance company, and newlyweds looking to buy their first home, both undergo the same problem solving processes with respect to their level of involvement in their buying decisions. Which of the following best describes this common buying process?​

extended problem solving

Creative applications of technology can benefit society, but rarely give firms a definite competitive edge since other firms can simply copy the technology.

false

Division of an overall market into homogeneous groups based on their locations constitutes socioeconomic segmentation.

false

The antitrust laws in the United States were designed to protect the interests of organizations having monopoly positions.

false

The marketing era is the successive historical outcome of the production era.

false

The number of suppliers available to a manufacturer or retailer affects the bargaining power of buyers.

false

The position of an SBU along the horizontal axis indicates the annual growth rate of the market.

false

Dell manufactures and markets computers and several related products, such as laptops, desktops, notebooks, and printers, all under the Dell name. These products are examples of _____ brands.

family

The practice of dividing an overall market into homogeneous groups based on the location is called _____.

geographic segmentation

The production, promotion, and reclamation of environmentally sensitive products is called _____.

green marketing

An undifferentiated marketing strategy:

is efficient from a production point of view.

Shannon and Jeff were recently married and purchased a home. Now, they're shopping for a lawn mower and are looking for one that is easy to use and is self-propelled. Jeff had a lawn mowing business when he was in high school and college and is fairly familiar with the brands and features. They visit a local WalMart and although Jeff wasn't familiar with the brand names, within a few minutes making comparisons across the models in-stock, they make their purchasing decision. What type of decision process did Shannon and Jeff utilize?

limited problem solving

The strategy of developing individual offerings to appeal to different market segments while remaining closely related to the existing product line is called _____.

line extension

The division of the total market into smaller, relatively homogeneous groups is called _____.

market segmentation

A good marketing plan revolves around an efficient, flexible, and adaptable ____________.​

marketing strategy

____ is a strategy that focuses on producing a single product and marketing it to all customers.

mass marketing

a strategy that focuses on producing a single product and marketing it to all customers

mass marketing

_____ is a targeting strategy that targets potential customers at a very basic level, such as by zip code, specific occupation, or lifestyle.

micromarketing

The financing function of marketing involves:

providing funds to buyers for building inventories prior to sales.

According to the BCG market share/market growth matrix, _____ typically require more cash than they generate.

question marks

​A key element in the success of Google is that the company's search engine is perceived as appropriate to people all over the globe. An enormous number of consumers feel a need for Google's benefits. Based on this information, which dimension of brand personality is best illustrated by Google?

relevance

A company produces a high-quality product, with a maximum monthly output of 10,000 units. Production levels are constant and the company relies on its marketing department to find customers for its output. This approach is consistent with which era in marketing history?

sales era

At specific mileage intervals, Capitol sends coupons to owners of their automobiles offering discounts on repair services through the dealerships. Each repair visit is overseen by a trained service representative, and the completed repairs are followed up to ensure customer satisfaction. The attention given by the dealership is called _____.

shaping

The process of applying a series of rewards and reinforcements to permit more complex consumer behavior to evolve is known as ____.

shaping

Friums & You, a Canadian firm, together with its subsidiaries, manufactures and markets snacks, confectionery, and quick meal products worldwide. The firm has been trying to expand its business into China. As Chinese laws require foreign firms to do business with local companies, Friums & You will have to be involved in a _____ to start operations in China.

strategic alliances

A certain social networking corporation has the highest number of users in the social networking industry. This is an example of the firm's:

strength

Market segmentation can help marketers increase their accuracy in reaching the right markets, but it is best used flexibly with other marketing tools. Choose the statement below that best summarizes the market segmentation process.​

​Market segmentation is accomplished in four steps: it employs user profiles; forecasts the overall market; estimates the market share; and selects specific target markets.

Psychographic segmentation is not an exact science. While it helps to paint an overall picture of the psychological motivations of consumers, those motivations are influenced by countless variables, such as family, occupation, and culture. Select the statement below that gives an accurate description of the effective use of psychographic segmenting.​

​Psychographic segmentation is effective when it helps to match a company's product offering with the types of consumers who use its products.

Which of the following tasks least describes the role of a brand manager?​

​protecting the company's trademark and brand