Chapter 2 Marketing

Trina's bakery had 600 customers last year and this year, 400 of those customers still patronize the bakery. What is the retention rate at Trina's Bakery?

66%

A marketing plan is

A document that describes a marketing strategy and various steps and elements involved in carrying out the strategy

Which of the following could be "breakthrough opportunities " for a candy company?

A patented formula that customers love and competitors could not copy The opportunity to purchase a well-known and respected brand name

What is true for firms considering international opportunities?

Advances in transportation make it cheaper to ship around the world.

Which of the following is true concerning the importance of the Four Ps?

All are equally important

Samson Inc. faced tough competition in the U.S. motorcraft market. What steps might the company take to improve the bottom line? (Check all that apply.)

Cut costs Expand overseas

The term "mass marketer" is used to

Describe large firms that aim at specific groups

Specifying a target market and the corresponding marketing mix are the two elements that comprise the

Development of the marketing strategy

Choose the statements about differentiation that are true

Differentiation can only occur if one or more of the four Ps is done better than the competition. Offering a lower price than the competition—while being similar on the other three Ps—would be a source of differentiation. True differentiation occurs when customers see the firm's offering as being better with regard to all four Ps.

Moving into a new line of business, such as a new product or market, is knows as

Diversification

Which of the following statements about the Four Ps is true?

Each of the Four Ps contributes to a whole marketing strategy.

A company's customer _________ is what the company can expect to earn from its current and potential customers during a particular period.

Equity

Why does the marketing strategy process start broad before narrowing?

It gives firms a chance to identify opportunities they might miss if the process starts too narrow.

Which two of the following describe a marketing program?

It includes more than one marketing strategy. It implements several marketing strategies at once.

Which of the following are true of market segmentation?

Managers use segmentation to help them figure out which groups of customers to serve. A major reason for market segmentation is to help a manager truly understand customers.

What are the four broad areas of opportunity a company can pursue in the marketing strategy planning process?

Market penetration Product development Market development Diversification

The marketing department at Henri's company is taking the next two weeks to measure and analyze their current marketing performance. The company will use the results of this analysis to adjust any areas and improve their current effectiveness. What is Henri's company engaging in?

Marketing analytics

An organization's _______ combines multiple marketing plans into a single, large plan.

Marketing program

Match the marketing decision with its "four P" area

Physical good- product Channels of distribution- place Personal selling- promotion Markups- price

Which of the Four P's is focused on all the decisions needed to get the right product to the target market via retail stores or online stores?

Place

What are the specific steps in the marketing management process?

Planning marketing activities Directing implementation of marketing activities Controlling marketing plans

Given below are the steps of the marketing management process. Arrange the steps in the correct order with the first step at the top and the last step at the bottom.

Planning marketing activities Guiding the implementation of marketing plans Controlling marketing plans

Risks involved in International opportunities include lack of knowledge of a country's culture, learning foreign regulations, and _________ unrest.

Political

Tom's Drug Store buys toothpaste for $1.00 and decides to mark it up to $1.50. This strategy decision falls into the ______ area of the marketing mix.

Price

Which of the following are true about the price area of the marketing mix?

Price includes an evaluation of delivery costs As part of price, marketing managers estimate how customers will react to changes in price Price includes decisions about discounts

Denny's adds two new meals to its menus. This is an example of which marketing mix area?

Product

Which of the following statements about the product area of the marketing mix are true?

Product can involve a physical good Product can involve a blend of physical good and service

The "four "Ps" of the marketing mix are

Product, place, promotion, and price

Which of the following are part of the "marketing mix"?

Promotion Product

What are a company's three potential paths for growth based on the customer equity approach?

Retaining current customers Acquiring new customers Franchising the business model

What are three components of the promotion element?

Sales promotion Mass selling Personal selling

Which of the following are the result of advances in e-commerce, transportation, and communications?

Small firms can operate internationally at little expense. Firms can more easily reach international customers.

Which of the following are potential concerns about international opportunities?

Some countries have instability because of political or social issues. Laws can be differnt in other countries. Cultural differences can create problems.

What managerial process involves cultivating and keeping a relationship that matches an organization's resources with its market opportunities?

Strategic management planning

Which of the following statements about marketing strategy are true?

Strategies include identifying both a target market and a marketing mix. The needs of the target market should drive decisions on the marketing mix.

Which of the following are true with respect to target marketing?

Target marketing can mean big profits and big markets. Target marketing fulfills the selected group's needs better than mass marketing.

Customer equity is

The amount of money a company can expect to earn from customers during a given time

Which of the following are true about the specific qualitative and quantitative screening criteria marketing managers develop?

The firm's objectives and available resources help determine the appropriate criteria to use. These criteria are useful in figuring out the markets in which a firm wants to compete.

Which of the following statements about the marketing strategy planning process are true?

The marketing strategy process starts broadly and then narrows down. A marketing strategy begins with an evaluation of customers, competitors, and company.

For which of the following reasons would a company want a fresh start in another country?

Tough competition Slow sales growth Thin profit margins

True or false: An effective marketing strategy matches opportunities to the firm's resources and objectives.

True

True or false: some firms find that it costs them less to retain a customer than trying to acquire a new one

True

When customers make online purchases, a company has access to data that can be used for marketing analytics

True

Population growth in the United States has slowed down and income is leveling off, making this a(n) ________ market for high end jewelry companies.

Unfavorable

Which of the following makes international marketing attractive?

Unfavorable trends at home Favorable trends in other countries

Price is concerned with which of the following? (Check all that apply.)

allowances and discounts

Target marketing classifies a marketing mix as

appealing to a selected group of people.

Companies rely on _________ opportunities to develop marketing strategies that are difficult to replicate and have the potential to make the company a lot of money for a long time

breakthrough

Which of the following helps companies create marketing strategies that are difficult to replicate and have long-term profit potential?

breakthrough opportunities

A company has ______ when the target market prefers the company's marketing mix over a competitor's mix.

competitive advantage

When a company is working to achieve market penetration, it is attempting to increase sales of its ______ products in its ________ markets.

current, present

Companies predict how many purchases a single customer might make from the company over the length of the relationship with that consumer, a measurement called the ______.

customer lifetime value

The number of purchases a person could make from a firm during the course of their relationship is called the

customer lifetime value

Jones company sells its motors in the United States. Now, it has the opportunity to sell in China. This means the cost per motor will _______

decrease

The marketing manager reminded the team that they had to come up with something that would set them apart from their competitor. In other words, their marketing mix needed

differentiation

The broad possibilities available in the market strategy planning process include market development, market penetration, product development, and

diversification

When a company begins working in a brand new market or with new products, it is engaged in

diversification

Customers in other countries are interested in products that a firm offers. This can improve a company's

economies of scale

What is the best way to describe a targeted market segment?

homogeneous

Garrett knows what the company plans to do for its marketing efforts and now needs to find a way to put those plans into operation. What phase of the marketing plan is Garrett working on?

implementation

Marketing plans are put into action during

implementation

Customer value ________ when customers perceive more benefits or lower costs.

increases

It is important for companies to remember that selecting a target market and developing a marketing mix are ______ activities and must be done ________.

interrelated; together

Which of the following is a company engaged in when it attempts to increase sales of its current products by offering them in new markets?

market development

Since most firms find attractive opportunities for their products fairly close to existing markets, what opportunity do marketing strategies typically pursue first?

market penetration

To identify and understand different subgroups in the target market, marketing managers rely on

market segmentation

A(n) ___________ __________ is a written document that identifies a marketing strategy and spells out the various elements that are necessary for fulfilling that strategy.

marketing plan

________ marketers, such as target, aim at large, clearly defined markets.

mass

Customers can perceive differences based on

only one important element of the marketing mix.

A successful marketing strategy pairs

opportunities with a company's resources and goals.

A company that is working to increase customer purchases of its current products in its current market is trying to achieve market

penetration

Many companies find attractive opportunities close to markets they already know. They are focused on market

penetration

A product needs to get to the customer when and where they need it. This is considered to represent the ________ function of the 4 Ps.

place

When targeted customers ______, the company is said to have a competitive advantage.

prefer a company's marketing mix over that of a competitor

When a company offers a new product or an improved version of a current product in its present markets, it is engaged in

product development

Which of the following is focused on informing people about the features of the product?

promotion

When determining customer lifetime value, the ________ rate refers to the percentage of customers who stay with the company in comparison to the total number of customers.

retention

Developing a ________ can help a manager identify and define the markets in which the firm wants to compete.

set of specific qualitative and quantitative criteria

_________ management planning involves the creation of a plan to guide the actions of an entire company.

strategic

The marketing _______ should be evaluated against the company's objectives.

strategies

What are the two parts of a marketing strategy?

target market and marketing mix

Which type of marketing focuses the marketing mix on appealing to a particular group?

target marketing

Which one of the following is the most important factor in determining an appropriate marketing mix?

the needs of the target market

If a customer perceives a product to have more features and a higher quality, then the customer perceives the product to have more

value