Marketing 340 Final Exam Spring 17

product oriented business

"At Trader Joe's, our mission is to provide all our customers the best food and beverage values to be found anywhere, and the information to make informed buying decisions."

new-product development

saves the company money in product development costs by going ahead with only the product ideas that are likely profitable

Decline

According to the PLC, the ________ stage is reached when sales plunge to zero, or when they drop to a low level where they continue for many years.

marketplace, customer needs and wants

According to the five-step model of the marketing process, a company should understand the________ before designing a customer-driven marketing strategy.

Buyer's decision process

According to the model of buyer behavior, which of the following is one of the two primary parts of a "buyer's black box"?

evolve

Although products that remain in the maturity stage of the PLC seem unchanged, the most successful ones actually ____ to meet changing consumer needs.

Marketing segments

An organic farmer has identified three distinct groups that might be interested in his products: vegetarians, health-conscious individuals, and people identified as trendsetters who try out new products in the market before others. These three groups are examples of ________.

Innovator

Cameron loves to own and be up-to-date on the latest technological gadgets available in the market. Among his friends, he is always the first to own the latest electronic gadgets. He loves trying out new products before others. Cameron most likely belongs to the ________ adopter group.

value added pricing

Companies that adopt ________ attach value-added features and services to differentiate their offers and support their higher prices

Develop strategies to change the environment in their favor

Companies that take a proactive stance toward the marketing environment are most likely to ________.

specialty products

Consumers are generally willing to make a special purchase effort to buy specialty products.

Microenvironment

Dan has been directed to study the actors close to a company that affect its ability to serve its customers, such as the company, suppliers, marketing intermediaries, customer markets, competitors, and publics. In this instance, Dan has been directed to study the ________ of the company.

Demographic Segmentation

Delta Motorworks markets its cars based on the age, gender, and income of its customers. Which of the following types of market segmentation is evident here?

Derived

Demand for outboard motors depends on consumers purchasing fishing boats. This is an example of ________ demand.

market segmentation

Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate products or marketing programs

market diversification.

Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate products or marketing programs is known as

Behavioral

Dividing buyers into groups based on their knowledge, attitudes, uses, or responses to a product is called ________ segmentation.

Subcultures

Each culture contains smaller ________, or groups of people with shared value systems based on common life experiences and situations.

Differentiation

Effective positioning begins with ________.

Casual

Experimental research is best suited for gathering ________ information.

strategic planning.

Finding the game plan for long-run survival and growth is the focus of ____

Production

Henry Ford's philosophy was to perfect the Model-T so that its cost could be reduced further for increased consumer affordability. This reflects the ________ concept.

Business analysis

Hollingsworth is a retail company that is planning to release a new line of luxury personal care products. Its managers are now reviewing the sales history of similar products and conducting marketing surveys to estimate minimum and maximum sales for the product. In which of the following stages of the new product development process is the product?

Elastic

If demand changes greatly with a small change in price, the demand is ________.

Problem recognition

In the beginning of the buying process, Timothy Perry, a product development manager, noticed that the raw materials that were being procured from his company's regular supplier were of poor quality. Consequently, he decided to change the existing supplier as a remedial measure. The stage of the buying process in which Timothy identified the quality breach represents the ________ stage.

primary data

Information collected for the specific purpose at hand

Cost plus pricing

Involves adding a standard markup for profit

Perceived value

It is most accurate to say that when customers purchase products they act on ________ as they judge values and costs.

Share of customer

Keith, a clothing store owner, offers product suggestions to customers based on their current purchases. Which of the following is Keith targeting to increase?

Market penetration

Making more sales to current customers without changing a firm's products is known as ________.

Technological

Many companies use RFID product labels on their goods, which exemplifies the ________ environment in business.

Mass marketing

Marketing the same product to a huge customer base without any customization is referred to as ________.

Idea generation

New-product development starts with ________.

Opportunity

Omega Inc. makes lightweight sunglasses with 100-percent UV protection for people who love to hunt, hike, and ride bikes. The company's long-term plans include the development of lenses that, in addition to protecting users from UV rays, would help reduce lens spotting through effective water-sheeting methods. This new feature would be valuable to people who fish. Given the rising popularity of recreational fishing in the United States, Omega products clearly have a huge market potential. In terms of a SWOT analysis, Omega has recognized a market ________.

Product

Railroads were once operated based on the thinking that users wanted trains that would offer the most in quality, performance, and innovative features. The railroad managing companies overlooked the fact that there could be other modes of transportation. This reflects the ________ concept.

Market segment

Rob has been asked by his manager to identify a group of potential customers who would respond in a similar way to a given set of marketing efforts. In this instance, Rob has been asked to identify a ________.

Target marketing

Selecting which segments of a population to serve is called ________.

Optional product

Selling accessory products along with the main product is referred to as ________ pricing.

Services cannot be stored for later sale or use

Service perishability means that ________.

A straight rebuy

Sigma Inc., a software firm based in California, reordered 50 printers from the designated provider without any modifications. This is an example of ________.

break even

The ___ volume is the point at which the total revenue and total cost curves intersect

distribution strategy

The ____ during the decline stage of PLC involves building more intensive distribution networks

Cultural

The ________ environment consists of institutions and other forces that affect a society's basic values, perceptions, preferences, and behaviors.

fewer, larger buyers

The business marketer normally deals with ________ than the consumer marketer does.

Conspicuous Consumption

The buyer decision process consists of five stages. Which of the following is NOT one of these stages?

Buying center

The decision-making unit of a purchasing organization is called its ________.

Consumer purchasing power

The economic environment consists of economic factors that affect ________.

Natural

The physical environment affecting marketing activities is referred to as the ________ environment.

Marketing mix

The set of marketing tools a firm uses to implement its marketing strategy is called the ________.

Concept testing

The stage in which a product concept is presented to groups of target consumers physically or symbolically is referred to as ________.

media publics

This group carries news, features, and editorial opinion

product mix

Total number of items a company carries within its product lines

relative advantage and compatibility

Two of the characteristics that are especially important in influencing an innovation's rate of adoption are ____

Family

What is the most important consumer buying organization in society?

Good value pricing

When McDonald's and other fast food restaurants offer "value menu" items at surprisingly low prices, they are most likely using ________.

Differential

When market segments are conceptually distinguishable and respond distinctively to various marketing mix elements and programs, they are said to be ________.

Market Targeting

When marketers at Fair & Leigh Inc. selected the Millennials, a demographic group that includes college students, as an untapped group of potential customers for their new line of products, they were engaging in ________.

Measurable

When the size, purchasing power, and profiles of a market segment can be calculated, the market is ________.

Psychological pricing

Which of the following is a price adjustment strategy that considers how a customer's perception of a product is influenced by its price?

Shampoo

Which of the following is a pure tangible good?

Internal databases can be accessed more quickly and cheaply than other information sources.

Which of the following is an advantage of using an internal database?

Cultural Stimuli

Which of the following is one of the other stimuli present in a buyer's environment apart from a marketing stimuli?

Price

Which of the following is true with regard to price?

Value proposition

Which of the following refers to a set of benefits that a company promises to deliver to customers to satisfy their needs?

Introduction

Which of the following stages of the PLC is characterized with high promotional expenditures that result from an effort to create consumer awareness?

Social classes show distinct product and brand preferences in areas such as clothing and travel.

Which of the following statements is true of cultural factors that influence consumer behavior?

Considering customer focus and value as the paths to sales and profits

Which of the following statements reflects the marketing concept?

Marketing environment

Which of the following terms is used to describe the actors and forces outside marketing that affect marketing management's ability to build and maintain successful relationships with target customers?

Convenience products

Which of the following types of products are generally priced the lowest?

divide the market

While designing a customer-driven marketing strategy, marketers are likely to _____ into smaller segments.

Shopping products

___ are less frequently purchased consumer products and services that customers compare carefully on suitability, quality, price, and style.

Retail

____ exemplifies a service

technological environment

____ is predominantly static.

Open ended

____ questions are especially useful in exploratory research.

Line extension

____ refers to extending an existing brand name to new product categories

Marketing success

____ requires building relationships with other company departments, suppliers, marketing intermediaries, competitors, various publics, and customers, which combine to make up the company's value delivery network.

Price decisions

_____ must be coordinated with product design, distribution, and promotion decisions to form a consistent and effective integrated marketing mix program.

Ethnographic

_____ research involves sending observers to watch and interact with consumers in their natural environments.

Internal databases

_____ usually can be accessed more quickly and cheaply than other information sources.

Service companies

______ can differentiate their service delivery by having more able and reliable customer-contact people.

Wants

________ are human needs that are shaped by culture and individual personality.

Question mark

________ are low-share business units in high-growth markets that require a lot of cash to hold their share.

Social Classes

________ are society's relatively permanent and ordered divisions whose members share similar values, interests, and behaviors.

Geographic Segmentation

________ calls for dividing the market into regions, states, counties, cities, or even neighborhoods.

Brand extension

________ involves using an existing brand name for a new product category.

Brand equity

________ is the differential effect that knowing the brand name has on customer response to the product and its marketing.

Service Variability

________ means that the quality of services depends on who provides them as well as when, where, and how they are provided.

Personality

________ refers to the unique psychological characteristics that distinguish an individual or group.

Perceptual positioning maps

________ shows consumer perceptions of a company's brands versus competing products on important buying dimensions.

target market

A ____ consists of a set of buyers who share common needs or characteristics that the company decides to serve.

product position

A ____ is the way a product is defined by consumers on important attributes. True or False?

sample

A _____ is a segment of the population selected for marketing research to represent the population as a whole.

product concept

A detailed version of a product idea stated in meaningful consumer terms

Specialty product

A hickory rocking chair, handmade by an Amish woodcarver in Lancaster, Pennsylvania from locally grown wood, is an example of a(n) ________.

Differentiated marketing

A market-coverage strategy in which a firm decides to target several market segments and designs separate offers for each is known as ________.

Widened its product mix

A reputed cosmetic company in New York City added new product lines in order to increase its business. In other words, it ________.

Sample

A(n) ________ is a segment of the population selected for marketing research to represent the population as a whole.

Market

A(n) ________ is the set of actual and potential buyers of a product or service.

marketing mix

consists of people, property, planning, and position.

Market development

involves company growth by identifying and developing new market segments for current company products.