Exam 1 MKTG490

When consumers order a newspaper subscription, they want the paper delivered early in the morning so that they can read it before setting out for the day. It appears that newspaper publishers are offering form, time, and place utility, but not ownership utility.

False

Fun Time Corp. has decided to move production of its board games for children and adults from the United States to Mexico to realize cost savings. At the same time, the company has decided to make Spanish-language versions of the games and distribute them in Central and South America. Most likely Fun Time is pursuing a strategy of ________.

Growth/concentration via horizontal

Riverside Senior living has a campus with living arrangements for independent living, assisted living, rehabilitation, memory care, and skilled nursing. What type of segmentation is Riverside using?

behavioral

The National Do Not Call Registry is an example of how the ________ environment affects marketing.

political/legal

Fixed cost

programmed cost and committed costs

The choice of generic strategy is usually driven by ________ capabilities of the firm, as well as the ________.

resource; competitive landscape

According to the BCG matrix, a business that is classified as a cash cow has high market share and low growth.

true

Sabeen didn't have time to shop for Christmas gifts, so she ordered everything from Amazon. This shows how Amazon's _______ leadership is one way the company creates differentiation in its offerings.

convenience

variable cost

cost of goods sold and expenses

To remain competitive, firms collect intelligence on a number of external factors. Information related to population change is referred to as ________ information.

demographic

Davido's Pizza promised delivery in 30 minutes, but it averaged closer to 60-minute deliveries. Eventually Davido's began to lose customers to other pizza restaurants because they didn't trust Davido's promise of quick delivery. What positioning error did Davido's make?

doubtful positioning

Tastee Yogurt Shop wants to survey its customers about their recent experiences. Tastee has a database with all 100,000 customers who have been to the shop. The company will randomly select 10 percent of those customers to call and survey about their experience. Tastee Yogurt Shop is using a nonprobability sampling method.

false

When McDonald's introduced Happy Meals, it was segmenting the market by primarily considering the demographic variables of gender and income.

false

When State Farm retired the "Auto-Fire-Life" ovals from its logo to create the impression of a more modern company, it was focusing on segmentation.

false

When a manager notices that increases in call wait times are causing customer dissatisfaction, the manager is looking at an external source of data.

false

It is important to remember that a marketing plan should be able to change as customers change, competitors develop new products, or there is a change in the external environment. In other words, a marketing plan should be ________ to be successful.

flexible

As the marketing manager of Tiny Tire Company, you are interested in assessing whether it is possible to decrease the amount of time between customers' tire replacement services and also whether it is possible to increase average transaction amounts through add-on sales. To assess customer satisfaction with current services, you decide to consult your CRM system to ________ customer orders.

identify the frequency and size of

Jeffie completed his mission statement for his marketing plan and has written down company goals; now he is focusing on his business's ________, or how he will be able to attain these goals in specific, measurable ways.

objectives

________ can be very useful in helping visualize where to make strategic changes to either move your product closer to the main market or further differentiate your product away from the competitive cluster and into more unique market space.

perceptual maps

Data collected specifically for the research question under consideration is called ________ data.

primary

________ target markets are those segments that have reasonable potential but for one reason or another are not best suited for development immediately.

secondary

What country spends the most on market research?

the USA

Brad's company is in the process of determining the best way to get enough wood to build the furniture that they need to manufacture. This represents the value-creating activity of inbound logistics.

true

Exploratory research is useful for clarifying the research problem so that a hypotheses can be developed.

true

In terms of segmentation, strategic marketing includes both identifying existing segments and creating new ones.

true

Marketing research is called for when the answer to a specific problem or issue is not available from a firm's market information system or other sources.

true

The GE Business Screen portfolio analysis uses three levels—high, medium, and low—to rank business position and market attractiveness.

true

When Jon and Nathan opened their bakery in a small, rural midwestern town, they knew that their limited customer base could be a problem. To attract more customers they created character cookies for children, cupcakes for teenagers' birthday and graduation parties, and cakes for weddings and anniversaries. They even designed a special "welcome" cake for seniors moving to senior living centers. Jon and Nathan used differentiated target marketing to reach their customers.

true

When analyzing segment attractiveness, one of the three factors to consider is the segment's strategic fit to the company's goals.

true

the value of a focus group lies in the richness of the discussion.

true

BCG Matrix:

· Stars (high share, high growth): important to building the future of the business and deserving any needed investment. · Cash Cows (high share, low growth): key sources of internal cash generation for the firm. · Dogs (low share, low growth): potential high cash users and prime candidates for liquidation. · Problem Children, or Question Marks (low share, high growth): high cash needs that, if properly nurtured, can convert into stars.

value

- ratio of benefits to costs, as viewed from the eyes of the beholder (the customer)

Value may be defined as the want-satisfying power of a good or service.

False Def of Utility

A beer manufacturer has noticed that the cost of hops has increased four times in the last year. A description of this would be found in the ________ section of the SWOT analysis.

Threats