MKTG 721 - Module 2

Niche marketing offers smaller companies an opportunity to compete by focusing their limited resources on serving niches that may be unimportant to or overlooked by larger companies.

True

Vernon Inc. would like to set the best price for a new product. The firm conducts an experimental study by selling the new product at two different prices in two different locations keeping other factors constant to see if a lower price results in better sales. This is most likely an example of​ ________ research.

causal

Hammond Corp. operates in the highly aggressive electronics market. The firm aims to obtain early warnings of opportunities and threats caused by the actions of other firms that are doing well in the industry. Which of the following sources would best serve​ Hammond's purpose?

competitive marketing intelligence

A brand difference is said to be preemptive if​ ________.

competitors cannot easily copy the difference

Lilly's, a furniture​ retailer, sells​ low-end furniture and accent pieces that are targeted toward​ lower-income consumer groups.​ Lilly's most likely segments the consumer market based on​ ________ variables.

demographic

Coolers Inc. has decided to launch a new energy drink that will have the fewest calories among its competitors. To understand the market potential for the new drink and the demographics and attitudes of consumers who are likely to buy the​ product, Coolers should most likely use​ ________.

descriptive research

A marketing firm has been assigned the task of watching trends in​ spending, personal​ income, savings, and interest rates. The marketing firm is most likely gathering information about​ consumers' ________.

economic situations

When marketers want to promote their products and services through​ word-of-mouth marketing​ programs, they typically begin by​ ________.

generating​ person-to-person brand conversations

A successful niche marketing strategy relies on a​ firm's ________.

knowledge of customer needs

Gold Class​ Electricals, a​ consumer-electronics firm, targets market segments based on factors such as​ country, age, social​ class, usage​ rate, and benefits sought. The company divides its markets based on​ ________.

multiple segmentation bases

Which of the following is the first stage of the buyer decision​ process?

need recognition

​________ is the degree to which an innovation may be tried on a limited basis.

Divisibility

Vincent Cosmetics decides to launch a cream with a claim that it makes skin​ "nine times​ smoother." The claim is based on a study of 30 respondents who used products of other brands as well.​ However, a second study on a larger sample reveals only a mild correlation between the use of the cream and smoother skin. In these​ circumstances, which of the following is the most ethical approach that Vincent Cosmetics can​ follow?

It should report the result as it​ is, or improve the product to match its claim.

________ is the systematic​ design, collection,​ analysis, and reporting of data relevant to a specific marketing situation facing an organization.

Marketing research

Hallmark's classic​ "When you care enough to send the very​ best" slogan appeals to which need category in​ Maslow's hierarchy?

Social

Becca wants to buy a new coat. She asks her friends to recommend a store​ and/or a style of coat. She looks for sale advertisements for coats in newspapers and also visits nearby stores to check if she can find a coat in her budget. In this​ case, Becca is most likely in the​ ________ stage of the buyer decision process.

information search

Although internal databases can be accessed more quickly and cheaply than other information​ sources, one of the challenges of internal databases is​ ________.

maintaining the current database

Which of the following is the right order of the steps that companies generally follow in designing a​ customer-driven marketing​ strategy?

market​ segmentation, market​ targeting, differentiation, and positioning

Marketing the same product to a huge customer base without any customization is referred to as​ ________.

mass marketing

Rad, a manufacturer of luxury​ watches, charges a higher price for its products than its competitors. Despite the high​ prices, the brand is popular among customers for its quality and service in comparison to cheaper alternatives available in the market. In this​ case, Rad offers​ a(n) ________ value proposition.

more-for-more

A shoe​ company's ads feature the members of a popular country music band. Product sales increase significantly among the​ band's fans. From the​ fans' viewpoint, the band is a​ ________.

reference group

A company regularly purchases cleaning supplies from a vendor and orders relatively consistent amounts of the same products on each purchase from the same vendor. This is an example of​ a(n) ________.

straight rebuy

Which of the following demonstrates the real value of a​ company's marketing research and information​ system?

the customer insights it provides

Which of the following sources constitutes the internal database of a​ company?

the​ company's sales transactions