Chapter 1 MAR 4503

market segment

A portion of a larger market whose needs differ somewhat from the larger market is referred to as a(n)

an image of the product in the consumer's mind relative to competing products

A product's position refers to

product

A(n) __________ is anything a consumer acquires or might acquire to meet a perceived need.

price

Amy purchased a new 32" LCD high-definition television and paid $400 for it. This amount of money Amy had to pay to obtain this product is known as the

service

Auxiliary or peripheral activities that are performed to enhance the primary product or primary service is referred to as

need set

Barry is looking for a car that is dependable yet stylish enough to let others know that he has achieved a respectable status in his life and career. He also wants it to be a high-performance automobile. Dependability, status, and performance represent Barry's

injurious consumption

Bob and his friends go out every weekend and drink until they get drunk. Then they drive home in that condition. Which type of consumption does this represent?

identify product-related need sets

Carlos is attempting to segment the market for his company's products. Where should he begin?

the company's own ability to meet customer needs competitors' capabilities and strategies consumers' needs conditions in the market Correct Answer All of these choices are correct.

Darren is conducting a market analysis for his business, and he has asked your advice on what he should be analyzing. Which of the following should he consider at this step of marketing strategy development?

conduct a market analysis

Harold is tasked with developing the marketing strategy for his family's business. What should he do first?

by doing a better job of anticipating and reacting to customer needs than the competition does

How can an organization provide superior customer value to customers?

Target Market

J&J Produce is a distributor of fresh produce. They conducted a thorough analysis of its market and identified groups of consumers that had similar product-related needs. One particular market identified wanted fresh and unique produce, such as Swiss chard, radicchio, and exotic fruits, and they were willing to pay higher prices for these choices. J&J Produce decided to focus its marketing effort on this segment of the total market. This segment is J&J's

conducting a market analysis

Jamie is developing a thorough understanding of his company's own capabilities, the capabilities of current and future competitors, the consumption process of potential customers, and the economic, physical, and technological environment in which these elements interact. Which step in the marketing strategy process is Jamie performing?

actual need fulfillment and perceived need fulfillment

John purchases and is satisfied with his SUV because he believes that it provides greater crash safety than a sedan even though this is not technically true. John's satisfaction is based on the distinction between

selecting an attractive segment(s) to serve

Juan has segmented the market for boats and is currently analyzing each with respect to several factors, such as size, growth rate, competitor strength, fit with company image, distribution available, cost to serve, and risk before deciding which segment to target. Which step of market segmentation is Juan conducting?

low-involvement decision

Karen was at the checkout at the grocery store and remembered that she was out of chewing gum that she normally likes to keep in her purse. Without much thought, she grabbed two packages of the gum she likes. What type of consumer decision does this illustration?

personality

Kate Spade is a brand of clothing, accessories, and home products. Brand managers at this company are trying to learn which internal influences impact their customers' needs and desires most. Which of the following is a possible internal influence these managers should examine?

customer value

Laurie saved for six months to have enough money to buy a new designer outfit to wear to a special party. She had to travel to a larger city to purchase this outfit, but it was worth it to her because it made her feel beautiful and confident. The difference between the benefits Laurie perceived from this purchase and the cost to her to acquire these benefits describes her

total product

Marketing strategy is formulated in terms of the marketing mix; that is, it involves determining the product, features, price, communications, distribution, and services that will provide customers with superior value. This entire set of characteristics is often referred to as the

social marketing

Mia is concerned how her marketing activities will affect individual consumers as well as society at large. Mia is implementing

consumption

Most economically developed societies are legitimately referred to as __________ societies.

position

Rod is surveying consumers to gain a better understanding of his restaurant's image relative to competing restaurants. Rod is concerned with his restaurant's

market segment

Smaller women like to purchase fashionable clothes just as much as any women. However, most clothes are not proportioned for their smaller size and do not fit well. As a result, several manufacturers offer "petite" sizes of clothing for this group of consumers. Women who comprise this group have needs that differ somewhat from the total market and represent a

behavioral targeting

Tacoda Systems tracks consumers' online activity and delivers specific banners based on that activity. This tracking and ad delivery system has been installed on almost 3,000 websites, and advertisers pay on a pay-for-performance basis, which means that advertisers pay Tacoda Systems only when a consumer clicks on their ad. The tracking of online activity and delivery of ads based on that activity is called

describing each group

Talbot's is a women's clothing store that offers classic fashions at a slightly premium price (i.e., a wool skirt typically costs over $100). During the process of market segmentation, Talbot's identified a group of consumers who are larger than average women yet still want stylish clothing. Further research into this segment revealed that these women tend to be between the ages of 35 and 50, are career-oriented, have a household income over $50,000, and are married with children under the age of 18 living at home. This group is also heavy users of magazines and newspapers as well as prime-time television. Which step of market segmentation does this describe?

culture

Teresa is trying to understand her customers better. She is examining the external influences that shape her customers' self-concepts and lifestyles. Which of the following is a possible external influence Teresa could examine?

customer value

The difference between all the benefits derived from a total product and all the costs of acquiring those benefits is known as

shifted power from marketers to consumers and helped marketers like CVS listen and adapt to consumers in real time.

The rise of social media has

self-concept

The totality of an individual's thoughts and feelings about him- or herself is known as

marketing strategy

Thomas wants to gain a usable understanding of consumer behavior in order to help him become a more effective marketing manager. Which application of consumer behavior does this represent?

consumer cost

Timothy and his wife are considering the purchase of a new car. In addition to the price, they are also considering the cost of insurance, gasoline, maintenance, finance charges, and license fees. All of these factors combined represent the

value

To survive in a competitive environment, an organization must provide its target customers more __________ than is provided to them by its competition.

distribution

Tony's job entails making sure his company's products get to retailers so that target customers can buy them. Which element of the marketing mix is Tony involved with?

they serve as a visible symbol that he is back as a successful member of society

What does the consumption of a product like Nikes mean to Andre Hank, the formerly homeless consumer discussed in the text?

problem recognition

What is the first step in the consumer decision process?

selecting an attractive segment(s) to serve

What is the last step in market segmentation?

self-concept analysis

Which is not a step in the consumer's decision process?

perception

Which is not an external influence on consumer behavior?

social welfare

Which of the following is a societal outcome of marketing strategy and consumer behavior?

Who do we want to communicate with? What effect do we want to have? What message will achieve the desired result? What media should we use? Correct Answer All of these choices are critical questions.

Which of the following is not a critical question for developing marketing communications?

customer satisfaction

Which of the following is not a societal outcome of marketing strategy and consumer behavior?

set budget

Which of the following is not a step in market segmentation?

human resource management

Which of the following is not an application of consumer behavior?

service

Which of the following is not considered one of the firm's outcomes of the marketing strategy and consumer behavior process?

competitors

Which of the following is not evaluated when analyzing a company's own ability to meet customer needs?

product price communications distribution Correct! All of these choices are correct.

Which of the following is part of the marketing mix?

demographics, lifestyles, and media usage

Which of the following is used to describe a group of consumers with similar needs sets?

Marketing communications

__________ include(s) advertising, the sales force, public relations, packaging, and any other signal that the firm provides about itself and its products.

Consumer behavior

is the study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society.

Lifestyle

represents how one lives, including the products one buys, how one uses them, what one thinks about them, and how one feels about them.