IBM 3012 Exam 1 Study Guide

Currently, females account for what percentage of all consumer purchases in the United States?

85%

Which of the following is most likely a low-involvement purchase?

A bottle of shampoo

licensing

A legal process in which one firm pays to use or distribute another firm's resources, including products, trademarks, patents, intellectual property, or other proprietary knowledge. risk: 1) licensee might used information and rights in the future 2) licensor may be creating future competitor 3) the licensee could potentially misuse trademarks

indirect competition

A process in which products provide alternative solutions to the same market

quota sampling

A type of sampling in which a certain number of participants is picked based on selection criteria such as demographics

snowball sampling

A type of sampling in which a set of participants is selected based on the referral of other participants who know they have some knowledge of the subject in question

European Union (EU)

An economic, political, and monetary union among 28 European nations that created a single European market by reducing barriers to the free trade of goods, services, and finances

World Trade Organization (WTO)

An international organization that regulates trade among participating countries and helps importers and exporters conduct their businesses

When U.S. domestic firms attempt to take their business global, one of the biggest mistakes they make is to

Believe that foreign consumers want exactly the same products that are sold in the U.S and want them marketed in the same way

Compare the following product offerings. Which is an example of indirect competition?

Burger King and Subway

Before deciding on a new promotional campaign, Jeffrey's Muffins looked at its customers' buying patterns over a 15-year period as determined by their use of a loyalty card. What method did Jeffrey's use to make sense of the data that was available?

Data mining

When demand for one product occurs because of demand for a related product this is called

Derived demand

A sudden drop in the average consumer income would be an example of which external force affecting the marketing environment?

Economic

The attributes a consumer considers important about a certain product are referred to as

Evaluative criteria

The distinct family-related phases that an individual progresses through over the course of his or her life is called the

Family-life cycle

A(n) __________ is a small group of people brought together for an intensive discussion of a topic.

Focus group

Compare the following product offerings. Which is the best example of direct competition?

Google and Yahoo

How consumers make choices is influenced by the personal, financial, and social significance of the decision being made, in other words, their level of

Involvement

A major advantage of primary data collection is that

It can be tailored to meet the specific research needs

A major disadvantage of primary data collection is

It takes more time to collect than secondary data and is more costly

_____________________ is a legal process in which one firm pays to use or distribute another firm's resources, including products, trademarks, patents, intellectual property, or other proprietary knowledge.

Licensing

Which of the following has the ability to crunch large amounts of structured and unstructured data, taking the guesswork out of various marketing tasks in order to identify messages that are more likely to be well received?

Machine learning

Which marketing strategy is being employed by a firm that is seeking to expand in foreign markets?

Market development

Adrienne decides to add new sales representatives and increase advertising in her existing market for her current line of security systems. Adrienne is pursuing a __________ growth strategy.

Market penetration

When it comes to income distribution, what income class are marketing professionals particularly attracted to?

Middle-income household

Quota sampling is a type of ________________ sampling.

Nonprobablility

Corporate Social Responsibility (CSR)

Note: know it when you see it A company's commitment to meeting the needs of its stakeholders (internal: employees, managers, owners) (external: suppliers, society, government, creditors, shareholders, customers)

Mattel wanted to determine whether a new toy would appeal to preschoolers, so it put six 4-year-olds in a room with several toys and waited to see which ones they played with. What form of research is this?

Observation

What process allows researchers to see how people behave and record behaviors that are relevant to the research objective?

Observation

ABC Pharmaceuticals has developed a patented medication that treats allergies more effectively than other medications, and causes fewer side-effects. As far as a SWOT goes, this represents a(an):

Opportunity

In Maslow's hierarchy of needs, what need must be satisfied first before a person will seek to satisfy any other need?

Physiological

The activities a firm undertakes to create a certain perception of its product in the eyes of the target market is referred to as

Positioning

4 elements of marketing mix

Product, Price, Place, Promotion

The top level in Maslow's hierarchy of needs is

Self-actualization

Grocery stores are increasingly selling more pre-prepared foods that take little time and effort on the part of the consumer. Changes to which one of the following external factors would be the most likely cause?

Socioculture

According to your text, of all the external factors that affect the marketing environment, which one represents the most significant challenges, as well as the most significant opportunities, for marketing professionals?

Technological

Which of the following generated an estimated 26 percent share of the global gross domestic product, making it the largest economy in the world in 2010?

The EU

According to your text, which of the following serves as perhaps the most important source of external information?

The consumer's family and friends

family life cycle (social factor)

The distinct family-related phases that an individual progresses through over the course of his or her life.

Overall GDP is the most common gauge of

The overall expansion or contraction of an economy

NAFTA is a trade agreement between

US, Canada, Mexico

reference group

a collect of people to whom a consumer compares himself or herself membership reference group: the group to which a consumer actually belongs aspirational reference group: the individuals a consumer would like to emulate dissociative reference group: the people that the individual would like to be like

observation research

a data collection tool that involves watching how people behave and recording anything about that behavior that might be relevant to the research objective

surveys

a data collection tool that poses a sequence of questions to respondents

The internal considerations in a SWOT analysis are

a firm's strengths and weaknesses

What is the premise behind the marketing concept?

a focus on satisfying the needs of the customer

A membership reference group is defined as

a group to which a consumer actually belongs

product development

a marketing strategy that entails the creation of new products for present markets

Daphne used to work in the city where she would take public transportation to work. However, she just took a new job in the suburbs and now not only has to find a place to live, but also has to buy a car to get to and from her job. For Daphne, these things represent

a need

direct competition (category competition or brand competition)

a situation in which products that perform the same function compete against one another

diversification

a strategy of increasing sales by introducing new products into new markets

Big Data

a term that describes both the growth in information that inundates businesses each day and the complex tools use to analyze the data and derive meaningful insights

simple random sampling

a type of sampling in which everyone in the target population has an equal chance of being selected

nonrandom sampling

a type of sampling that does not attempt to ensure that every member of the target population has a chance of being selected

cognitive dissonance

buyers remorse

the effect of time on consumer behavior

consumers are often willing to pay more for products if the placement of those products saves them time

The price of one country's currency in terms of another country's currency is referred to as

currency exchange rate

A good mission statement should be oriented around the

customer

primary data

data collected specifically for the research problem at hand collection method examples: focus groups, surveys, observations, data gathered by equipment (e.g video), in depth personal interviews advantages: pertain only to firm's research, may provide inside into why and how consumers make choices disadvantages: more expensive, may be difficult to enlist customer participation, may take excessive amount of time to collect examples of us: to understand consumer motivation, to determine the effect of variables, to gain feedback

Supermarkets collect information about individual customers through their use of loyalty cards and then analyze the data to look for patterns in purchases. This is an example of

data mining

The description of human populations based on characteristics such as age, gender, ethnicity, and education level is referred to as

demographics

analyzing qualitative data

disadvantages: results may be difficult to measure objectively, time consuming, poor interpretation of open ended questions advantages: substantial insight, participant can cover things that the researcher may not previously have thought of

analyzing quantitative data

disadvantages: sampling errors, may be limited by researchers' questions, response rates can be very low advantages: results may be generalizable to larger population, some method can be conducted quickly and inexpensively, analysis of data is faster, can be cost effective, can conduct causal studies that indicate why behaviors occur, often convenient for respondent

direct ownership

domestic firm actively manages a foreign company or overseas facilities risks: -it can be difficult to manage local resources from afar advantages: provides firm with more control over its intellectual property, advertising, pricing and product distribution

what are the external factors affecting the marketing environment?

economic (GDP, income distribution, inflation, consumer confidence) demographic sociocultural political legal technological

SWOT analysis (situational analysis)

evaluation of a firm's strengths, weaknesses, opportunities and threats

Opportunities (SWOT)

external factors that the company may be able to exploit to its advantage

situational influences

factors like time and involvement that serve as an interface between consumers and their decision-making process

low-involvement products

inexpensive products that can be purchased without much forethought and that are purchased with some frequency (impulse purchase)

secondary data

information collected for alternative purposes prior to the study collection method examples: literature reviews, online electronic searches, company records, marketing information systems, private research companies, boundary spanners (e.g salespersons) advantages: less expensive, readily available disadvantages: data may not be relevant or accurate or altered examples of use: to gather macroeconomic or socioeconomic data, to obtain info about competitors, to gain insight into international cultures and markets

Strengths (SWOT)

internal capabilities that may help a company reach its objectives

Weaknesses (SWOT)

internal limitations that may interfere with a company's ability to achieve its objectives

Marketers must realize that the consumer is unlikely to engage in any of the subsequent steps of the buying process if he or she

is not aware of the problem or does not recognize the need for it

Value

its role in marketing, along with an understanding, and the ability to identify, what the mutual benefits are for a given transaction.

what are the 5 international market entry strategies?

low risk, lower potential return 1) exporting 2) licensing 3) franchising 4) join venture 5) direct investment high risk, higher potential return

what are the four basic categories of marketing growth strategies?

market penetration, product development, market development, diversification

The act of collecting, interpreting, and reporting information concerning a clearly defined marketing problem is known as

market research

high involvement products

significant purchases that carry a greater risk to consumers if they fail

market development

strategies focus on selling existing goods and services to new customers

market penetration

strategies that emphasize selling more of the firm's existing goods and services to existing customers

country-of-origin effects

the beliefs and associations people in one country have about goods and services produced in another country

As it pertains to a situation analysis, the term "market" refers to

the group of consumers that is interested in and able to buy a particular product

Target Marketing

the group of customers toward which an organization directs its marketing efforts

if the U.S dollar rises in value against the Euro dollar, what will happen to the imports to the U.S from Europe?

the price of imported goods fall result: helps U.S importers that buy from Europe because it lowers their cost, they pay less for the same imports

if the U.S dollar falls in value against the Euro dollar, what will happen to the imports to the U.S from Europe?

the price of imported goods fall result: hurts U.S importers that buy from Europe because it raises the cost to the U.S buyer, they pay more for the same imports

if the U.S dollar falls in value against the Euro dollar, what will happen to the exports from the U.S to Europe?

the price of the exported goods fall result: helps U.S firms that export to Europe because it lowers cost of the good to the European buyer, which make U.S firm more competitive

if the U.S dollar rises in value against the Euro dollar, what will happen to the exports from the U.S to Europe?

the price of the exported goods rise result: hurts U.S firms because it raises the cost of the good to European buyer, which makes the U.S firm less competitive

Strategic Plan

typically includes an organization's plans for key functional areas: marketing plan, human resources plan, financial plan, and risk management plan

Maslow's hierarchy of needs model

what do marketers use to figure out motivation (the inward drive we have to get we need or want)

joint venture

when a domestic firm buys part of a foreign company or joins with a foreign company to create a new entity risks: - domestic and international firms often operate differently which can lead to culture clashes - mistrust over proprietary knowledge, conflict over new investments - disagreements on sharing rev and profits

sensory marketing

marketing that engages consumers' senses and affects their behaviors

Global marketing

marketing that targets markets throughout the world

business-to-business marketing (B2B)

marketing to organizations that acquire goods and services in the production of other goods and services that are then sold or supplied to others

Needs vs. Wants

need is biological (food, water, shelter) where wants is a product we want (headphones, makeup)

After reviewing the existing data on seasonal spending by his company's customers, Marvin decided he needed new information collected to address his research questions. Therefore, Marvin will need __________ data to address the questions in his market research study

primary

Marketers who design and offer new products and services to their existing customers are pursuing a ____________________ growth strategy.

product development

Ritual Consumption

refers to a pattern of behaviors tied to life events that affect what and how we consume. These behaviors tend to have symbolic meanings and vary greatly by importance and by culture.

Positioning

refers to the activities a firm undertakes to create a certain perception of its product in the eyes of the target market example: McDonalds entering gourmet coffee market, it had to overcome the perception that it was simply a fast food restaurant. marketers launched an advertising campaign called "unsnobby coffee" positioned its product as a place for consumers to get great coffee for a lower price than Starbucks

Jane wants to know what percentage of freshman at her college purchase clothing with college logos. She decides to randomly interview 10 people from each of the dorms and ask them. These people are her

sample

Exploratory Research

seeks to discover new insights typical research method: qualitative referred data source: internal

exporting

selling domestically produced products to foreign markets

focus groups

Data collection tool in which a moderator engages a small group of people as they discuss a particular topic or concept with each other in a spontaneous way.

High-involvement purchases are characterized by the fact that they

Carry a greater risk to consumers if they fail

Compare the following product offerings. Which is the best example of direct competition?

Coffee and tea

According to your text, the formal name for buyer's regret is

Cognitive dissonance

The superior position a product enjoys over competing products if consumers believe it has more value than other products in its category is referred to as a

Competitive advantage

franchising

Contractual arrangement in which the franchisor provides a franchisee the right to use its name and marketing and operational support; in return, franchisee pays franchisor a free and a share of profits risks: - granting name to a franchisee far away is difficult - franchisors also run the risk of providing such detailed info that they can potentially have a competitive advantage if they choose to open their business

The beliefs and associations people have about a country that can be either positive or negative are referred to as

Country-of-origin effects

If a domestic firm makes the mistake of believing that foreign consumers want exactly the same products that are sold in the United States, then that firm is most likely ignoring the importance of

Cultural fit

Threats (SWOT)

Current and potential external factors that may challenge the firm's short- and long-term performance.

All of the following are sources of external secondary data, EXCEPT:

Customer surveys

The activity of buyers and sellers trading things of value so that each is better off as a result is referred to as

an exchange

North American Free Trade Agreement (NAFTA)

an international agreement that established a free-trade zone among the United States, Canada, and Mexico

descriptive research

asks the questions who, what, when, where, and how typical research: qualitative or quantitative preferred data source: external or internal

casual research

attempts to understand cause-and-effect relationships among variables typical research method: quantitate preferred data source: internal