MTK 3300 exam 2

5 steps in the marketing research process

1. define the problem or opportunity 2. develope marketing plan 3. collect data 4. analyze data 5. take action

Situational Analysis

A process planners use, within time and resource constraints, to gather, interpret, and summarize all information relevant to the planning issue under consideration.

market penetration

a marketing strategy that tries to increase market share among existing customers

SWOT analysis

a planning tool used to analyze an organization's strengths, weaknesses, opportunities, and threats

Before Segway manufactured its two-wheeled people movers, it built a prototype and had staff engineers test it for performance and stability. At this stage, Segway was involved in

alpha testing

Brands can be owned by

any firm in the supply chain

Marketers need to think about the product offer as more than just its physical characteristics or its basic service function. Which component includes associated services such as warranties, financing, support, and after-sale service?

augmented product

If many consumers in the marketplace are familiar with a brand and what it stands for and have an opinion about the brand, the brand has considerable

awareness

Margret always buys Lay's brand potato chips. She does not even consider alternatives. Margret is a ________ customer.

brand loyal

A service is any intangible offering that involves a deed, performance, or effort that

cannot be physically possessed.

When there is a significant difference between the service customers receive and the service the firm promotes, the firm has a ________ gap.

communications

In many high-end resort markets, Westin hotels compete directly with Crown Plaza hotels. When it comes to pricing, Westin tends to charge its guests similar rates to what the Crown Plaza hotels charge. Westin is using a ________ pricing strategy.

competitive parity

It is Nathan's job to evaluate the performance of the marketing strategy his company used to promote its new line of tennis shoes and recommend any changes the company should make. Which step of the marketing plan is Nathan responsible for?

control phase

When travelers are bumped from overbooked flights, they are frequently offered vouchers good for future travel. The dollar value of the voucher is the airline's estimate of

distributive fairness.

When consumers associate a brand with a certain level of quality and familiar attributes, allowing consumers to make quick decisions, the brand is

facilitating purchasing

Along the service-product continuum, which one of these would be considered the most product dominant?

grocery store

What refers to the variability in a service's quality?

heterogeneity

If the price for a product increases, the demand for the complementary product will

increase

Consumers might not realize that Old Spice health and wellness products and Iams pet nutrition products are made by the same company—Procter & Gamble. Old Spice and Iams are examples of

individual brands

secondary data

information that already exists somewhere, having been collected for another purpose ex: surveys, experiments, etc

___ is the process by which ideas are transformed into new products and services that will help firms grow.

innovation

Whenever Stephen considers upgrading his computer gaming system, he consults with Pete, a knowledgeable friend who always has the newest technology. For Stephen, Pete is a(n) ________ in the diffusion of innovation curve.

innovator

During the introduction stage of a product's life cycle, typical consumers are

innovators

Max relocated to take a new job. He immediately got sick and went to a doctor close to where he lived. During his exam, the doctor was impatient and demonstrated a poor bedside manner. Max wished that he could have requested a different doctor in that moment, but it was too late. Max's experience exemplifies which key characteristic of services?

inseparability

When marketers state that services are ________, they are referring to the fact that services are produced and consumed at the same time.

inseprable

Primar data

is the process of gathering data directly from a first-hand source

It was during the market-oriented era that firms first discovered "marketing." In what timeframe did this occur?

just after World War II

Gina booked a room at the Whispering Sands Resort because, as advertised on its website, she expected to check in at 11:00 am, the swimming pool would be heated, the talent in the dining area would be able to sing, and the breakfast would be fresh. When she arrived, she had to wait for her room, found the swimming pool to be 50 degrees, realized the singer could not carry a tune, and the free continental breakfast was stale. The Whispering Sands Resort was experiencing a severe ________ gap.

knowledge

In an effort to build sales for their new running shoes quickly, Sprinters Inc. set the initial price of the shoes very low. What type of pricing does this reflect?

market penetration

During the ________ stage of the product life cycle, sales peak and profits begin to decline as competition becomes intense.

maturity

In a market with ________ there are many firms providing differentiated products.

monopolistic competition

Many interior design businesses volunteer to provide their services for house-walk fundraisers because they know their design efforts will benefit from

observabilty

To generate ideas for new products, some firms will purchase the rights to use another firm's technology. This is known as

outsourcing

Cross-price elasticity is the

percentage change in quantity demanded of Product A compared to the percentage change in price of Product B.

For which of the following is demand likely to be least sensitive to price increases?

perscription drugs

represents all the activities necessary to get the product to the right customer when that customer wants

place

In one test before product launch, customers try a sample product and are then surveyed to understand whether or not they would buy/use the product again. This is known as

pre market testing

Isabella knows that her customers always shop for top-of-the-line leather purses and price is not a consideration. She decides to price her line of purses and wallets above those of her closest competition in order to capture those customers who only look for the best. What type of strategy is Isabella using?

premium pricing

A demand curve shows the relationship between ________ during a specific period of time.

price and demand

A ________ is a group of associated items that consumers tend to use together or think of as part of a group of similar products.

product line

A university that has separate graduate and undergraduate admission offices recognizes that these are distinct

product line

When a company launches a new product line with an existing brand name, this is known as

product line

It is Mallory's job to make sure the company's products are shipped to the distribution center from the production center to fulfill customer orders. Which element of the marketing mix does her job focus on?

production

Firms spend millions of dollars annually to build brand equity, recognizing that brand equity contributes to

profitability

In ________ many firms provide similar products that are considered substitutes for each other.

pure compitions

Yum Yum Ice Cream Shoppe provides each employee with a clean, sharp-looking uniform. It also instructs employees to keep the work area neat, tidy, and uncluttered. Yum Yum Ice Cream Shoppe emphasizes ________ in the five service

relability

Rob is the marketing manager for a home goods store. His boss tells him the firm's primary goal is to increase its local market share from 10 to 20 percent. His firm is using a ________ orientation.

sales

During the ________ era, firms had excess production capacity and used personal selling and advertising to generate customers.

sales-oriented

market penetration pricing

setting a low price for a new product in order to attract a large number of buyers and a large market share

By setting appropriate service standards and measuring service performance, firms can attempt to close a ________ gap.

standards

Sabrina's is an upscale running gear store. Prices are based on customers' beliefs about the value of the gear. The store focuses on a limited target market and provides excellent customer service. Sabrina's is using a ________ pricing strategy.

status quo

The Broadmoor Hotel in Colorado Springs, Colorado, maintains its five-star rating by focusing on five service characteristics: reliability, responsiveness, assurance, empathy, and tangibles. The hotel has been updating rooms built in the early part of the 20th century to meet the needs of 21st-century visitors. To accomplish this, it spent millions in improvements, renovating rooms, and adding a new outdoor pool complex. These renovations focus on the ________ service characteristic.

tangibles

When considering price within the marketing mix, price consists of

the money, time, and energy buyers give up in exchange for a product.

From a customer's perspective, value reflects

the relationship of benefits to costs.

During the ________ era, manufacturers and retailers recognized they needed to give their customers greater value than their competitors did.

value-based marketing