Marketing Chapter 1-7 Questions and Terms

A) Demands

__________ are human wants that are backed by buying power. A) Demands B) Wants C) Needs D) Marketing offerings

A) Customer satisfaction

__________ is the extent to which a product's perceived performance matches a buyer's expectations. A) Customer satisfaction B) Customer-perceived value C) Customer relationship management D) Share of customers

A) Marketing myopia

__________ is the mistake of paying more attention to the specific product a company offers than to the benefits and experiences produced by these products. A) Marketing myopia B) Exchange C) Marketing management D) Marketing

Business Portfolio Planning

1. Analyze current business portfolio 2. Develop strategies for growth and downsizing

The growth share matrix defines 4 types of SBUs

1. Stars 2. Cash cows 3. Question marks 4. Dogs

D) target marketing

Disney has chosen families and children as the segment of the market to sell​ to, which is the process known as​ ___________. A) marketing paranoia B) exchange C) demand D) target marketing E) the production concept

Which of the following correctly defines the consumer market?

Individuals and households that buy goods and services for personal consumption

​________ is the process of dividing a market into distinct groups of buyers who have different​ needs, characteristics, or behaviors and who might require separate marketing strategies or mixes.

Market segmentation

Printer companies often charge a fairly low price for their ink jet printers​ (relative to​ costs) and a high price for replacement cartridges. These companies are using a strategy of​ ________ pricing.

captive-product

Increased long-term customer equity is the result of

capturing customer lifetime value and a greater share of customers

Market development

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

Once management has decided on its product concept and marketing​ strategy, it can evaluate the business attractiveness of the​ proposal, which involves​ ___________.

conducting a business analysis

target market

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

brand sponsorship: store brands

created and owned by a reseller of a product or service

federal food and drug act (1906)

created the Food and Drug Administration. it forbids the manufacture or sale of adulterated or fraudulently labeled foods and drugs

financial reform law (2010)

creates the bureau of consumer financial protection, which writes and enforces rules for the marketing of financial products to consumers. it is also responsible for enforcement of the truth-in-lending act, the home mortgage disclosure act, and other laws designed to protect consumers

behavioral segmentation

divides buyers into segments based on their knowledge, attitudes, uses, or responses concerning a product

economic environment

economic factors that affect consumer purchasing power and spending patterns

federal trade commission act (1914)

established the Federal Trade Commission, which monitors and remedies unfair trade methods

national environmental policy act (1969)

establishes a national policy on the environment. the 1970 reorganization plan established the environmental protection agency (EPA)

telephone consumer protection act (1991)

establishes procedures to avoid unwanted telephone solicitations. limits marketers' use of automatic telephone dialing systems and artificial or prerecorded voices

consumer product safety act (1972)

establishes the consumer product safety commission and authorizes it to set safety standards for consumer products as well as exact penalties for failing to uphold those standards

line extension

extending an existing brand name to new forms, colors, sizes, ingredients, or flavors of an existing product category

brand extension

extending an existing brand name to new product categories

concentrated marketing (niche marketing)

firm goes after a large share of one or a few smaller segments or niches

technological environment

forces that create new technologies,, creating new product and market opportunities

intermarket segmentation (cross-market segmentation)

form segments of consumers who have similar needs and buying behaviors even though they're located in different countries

competitive advantage

gained by offering greater customer value, either by having lower prices or providing more benefits that justifies higher prices

segmentation types

geographic, psychographic, demographic, behavioral

Price

is the amount of money customers must pay to obtain the product

Four key design strategies

market segmentation, market targeting, differentiation, positioning

benefit based

marketing based on benefits sought out of the product

Product

means the goods and services combination the company offers to the target market

to be useful, market segments must be

measurable, accessible, substantial, differentiable, actionable

Marketing control

measuring and evaluating the results of marketing strategies and plans and taking corrective action to ensure that the objectives are achieved

lanham trademark act (1946)

protects and regulates distinctive brand names and trademarks

The buyer decision process starts with​ __________.

recognizing a need

Promotion

refers to activities that communicate the merits of the product and persuade target customers to buy it.

interactive marketing

training service employees int eh fine art of interacting with customers to satisfy their needs

occasion based

when you use service for specific occasions (ie photographer, wedding planner)

What are the five marketing management functions used to manage the marketing​ process?

​Analysis, planning,​ implementation, organization, and control

Forces in a​ company's macroenvironment that shape opportunities and pose threats to the company include​ what?

​Demographic, economic,​ natural, technological,​ political/social, and cultural forces

A​ company's external value delivery network consists of​ __________.

​suppliers, distributors, and customers

four service characteristics

1. intangibility 2. variability 3. inseparability 4. perishability

positioning statement

Company and brand positioning should be included here

​People's views of​ themselves, others,​ organizations, and nature are part of which macroenvironmental​ force?

Cultural forces

Important trend in the natural environment?

Shortages of raw materials, increased pollution, increased government intervention in natural resource management

Which of the following statements regarding the changing marketing landscape is correct?

The Great Recession caused consumers to rethink their buying priorities

What is the single most important demographic trend in the U.S.​ today?

The changing age structure of the population

Which of the following statements regarding socially responsible product decisions is​ correct?

The government may prevent companies from adding products through acquisitions if the effect threatens to lessen competition.

store brand (or private brand)

a brand created and owned by a reseller of a product or service

convenience product

a consumer product that customers usually buy frequently, immediately, and with minimal comparison and buying effort

unsought product

a consumer product that the consumer either dow not know about or knows about but does not normally consider buying

robinson-patman act (1936)

amends the clayton act to define price discrimination as unlawful. empowers the FTC to establish limits on quantity discounts, forbid some brokerage allowances, and prohibit promotional allowances except when made available on proportionately equal terms

what is the best starting point for building market segments?

behavioral segmentation

value statement

defines how a company will create differentiated value for targeted segments and what positions it wants to occupy in those segments

managing service quality

delivering consistently higher quality than the competitors

what's the most popular bases for segmenting customer groups?

demographic factors

According to the​ text, two major public policy and ethical issues in marketing research are​ ________.

intrusions on consumer privacy and the misuse of research findings

brand valuation

is the estimation of the total financial value of a brand

customer equity

is the value of customer relationships that the brand creates

Business Legislation (legal) Areas

laws protecting companies form each other, laws protecting consumers, laws protecting the interests of society

children's television act (1990)

limits the number of commercials aired during children's programs

americans with disabilities act (1991)

makes discrimination against people with disabilities illegal in public accommodations, transportations, an telecommunications

Evaluating each market segment's attractiveness and selecting one or more market segments to enter is called _______.

market targeting

Products and technologies eventually become outdated, but basic market needs can last forever. For this reason, company mission statements should be

market-oriented

When a company sets a high price as the initial price of a new​ product, it is pursuing a​ ________ new product pricing​ strategy.

market-penetration

brand sponsorship: national brands

marketed under the manufacturer's own name

brand positioning and brand name selection

marketers should establish a mission and vision for the brand when positioning it

The people and procedures dedicated to assessing information​ needs, developing the needed​ information, and helping decision makers use the information to generate and validate actionable customer and market insights comprise a​ ________.

marketing information system

Dynamic pricing is when companies continually adjust prices to meet the characteristics and needs of individual customers and situations. Where is this method especially prevalent​ today?

online buying

internal marketing

orienting and motivating customer-contatct employes and supporting service employees to work as at sam to provide customer satisfaction

The four major brand strategy decisions involve brand _______.

positioning, name selection, sponsorship, and development

Firms that develop strategies to change the environment - instead of assuming that strategic options are bounded by the current environment - are being _________.

proactive

Sherman antitrust act (1890)

prohibits monopolies and activities (price fixing, predatory pricing) that restrain trade or competition in interstate commerce

children's online privacy protection act (2000)

prohibits web sites or online services operators from collecting personal information from children without obtaining consent from a parent and allowing parents to review information collected from their children

To deliver real value to marketers, marketing information must _______________.

provide useful customer insights

federal cigarette labeling and advertising act (1967)

requires that cigarette packages contain the following statement, "Warning: The Surgeon General Has Determined That Cigarette Smoking Is Dangerous to Your Health."

During the introductory stage of the product lifecycle, __________.

sales are slow and profits are nonexistent

Many state colleges and universities charge one price for​ in-state students and a higher price for​ out-of-state students. Which price adjustment strategy are these schools​ using?

segmented pricing

Relative market share

serves as a measure of company strength in the market it is on the horizontal axis of the growth share matrix

Services are characterized by four key aspects: ____________

services are intangible, inseparable, variable, and perishable

service inseparability

services are produced and consumed at the same time and cannot be separated from their providers

service intangibility

services cannot be seen, tasted, felt, heard, or smelled before they are bought

Return on Marketing Investment or marketing ROI

the net return from a marketing investment divided by the costs of the marketing investment

Value delivery network

the network made up the company, its suppliers, its distributors, and, ultimately, its customers who partner with each other to improve the performance of the entire system

co-branding

the practice of using the established brand names of two different companies of the same product

Strategic planning

the process of developing and maintaining a strategic fit between the organization's goals and capabilities and its changing marketing opportunities

service variability

the quality of services may vary greatly depending on who provides them and when, where, and how they are provided

brand sponsorship: co-branding

use the established brand names of two different companies on the same product

What are the three general sources from which marketers can obtain​ information?

Internal​ data, marketing​ intelligence, and marketing research

What are the four choices a company has for developing brands?

Line extensions, brand extensions, multibrands, and new brands

Dogs - GSM

Low growth, low share businesses or products. they may generate enough cash to maintain themselves but do not promise to be large source of cash.

Strategic Business Units (SBU)

Management's first step is to identify the key businesses that make up the company called these when doing a portfolio analysis

E) marketing myopia

Many of​ Zappos' more traditional rivals focus greater attention on the attributes of the products and services they sell rather than on the benefits and experiences produced by their market offerings. This trap is sometimes referred to as​ __________. A) marketing paranoia B) marketing malpractice C) the production concept D) marketing management E) marketing myopia

Which of the following statements regarding the business market is correct?

Many sets of business purchases are made for one set of consumer purchases

A company has set a low price on a new product it introduced. It wants to maximize its market share and attract a large number of buyers quickly. Which new product pricing strategy should the company​ use?

Market-penetration pricing

A) Advertising

Marketers consider five core concepts when considering their consumer base. Which of the following is not considered one of the five core​ concepts? A) Advertising B) Market offerings C) Needs, wants, and demands D) Exchanges and relationships E) Markets

What do marketers use to analyze big​ data?

Marketing analytics

A) the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return

Marketing is __________. A) the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return B) the art and science of choosing target markets and building profitable relationships with them C) the act of obtaining a desired object from someone by offering something in return D) the mistake of paying more attention to the specific product a company offers than to the benefits and experiences produced by these products

Which of the following are additional variables marketers use to segment business markets but not consumer​ markets?

Operating characteristics, purchasing approaches, situational factors, and personal characteristics

In which step of the buying decision process is the final order with the chosen supplier​ developed?

Order-routine specification

What are the eight steps in the business buying decision process in the correct​ sequence?

Problem​ recognition, general need​ description, product​ specification, supplier​ search, proposal​ solicitation, supplier​ selection, order-routine​ specification, and performance review

Product Mix Demensions

1. Width: Number of different product lines a company carries 2. Length: Total number of products a company carries within its product line. 3. Depth: Number of versions for each product offered in the line 4. Consistency: How closely product line products are in end use, production requirements, or distribution channels.

What are the two ways a firm can obtain new products?

Acquisitions and new product development

Which of the following statements regarding the marketing of international products and services is​ correct?

Because markets and consumers around the world differ​ widely, companies must usually adapt their product offerings in different world markets.

In which targeting strategy does a firm go after a large share of one or a few smaller segments?

Concentrated marketing

What is big data?

Data contained in huge and complex data sets

Market Plan

Executive summary, current marketing situation, threats and opportunities analysis, objectives and issues, marketing strategy, action programs, budgets, controls

What are the three types of objectives a marketing research project might​ have?

Exploratory​ research, descriptive​ research, and causal research

Which of the following statements is true regarding the marketing of services?

For service providers, a solution to price competition is to develop a differentiated offer, delivery, and image

Which of the following correctly identifies the five important decisions marketers must make when developing individual products and services?

Product attributes, branding, packaging, labeling, and product support services

Four Ps

Product, price, place, and promoiton

A) needs

The state of felt deprivation is known as __________. A) needs B) wants C) demands D) marketing offerings

To design a winning marketing strategy, what are the two important questions a marketing manager must answer?

The two questions are the following: What customers will we serve? How can we serve these customers best?

What is a product position

The way a product is defined by consumers on important attributes

Why do companies use customer relationship​ management?

To capture and use customer data

Product development

company growth by offering modified or new products to current market segments

Choosing a Targeting Strategy depends on

company resources, product variability, product life-cycle, market variability, and competitive marketing strategies

market targeting

evaluating each segment's attractiveness and selecting one or more market segments to enter

Some companies might miss new product and market opportunities because of three primary reasons that include

fighting or ignoring new technologies, inability to keep up, ignoring a changing regulatory landscape

desirable qualities for a brand name should

- be based on the product's benefits and qualities -be easy to pronounce, recognizable, and remember -be distinctive and extendable -translate easily into foreign languages -be capable of registration and legal protection

brand equity consumer perception dimensions include

-differentiation -relevance -knowledge -esteem

product and service decisions

-individual product decisions -product line decisions -product mix decisions

Other marketable entities

-organizational marketing -person marketing -place marketing -social marketing

managing service productivity

-training current employees or hiring new ones -increasing the quantity of service by giving up some quality -harnessing the power of technology

Marketing Process

1. Understand the marketplace, which includes customer needs and wants 2. Design a customer value driven marketing strategy 3. Construct and integrated marketing program that delivers superior value 4. Engage customers, build profitable relationships, and create customer delight 5. Capture value from customers to create profits and customer equity

three types of service marketing

1. internal marketing 2. external marketing 3. interactive marketing

Individual product decisions

1. product attributes 2. branding 3. packaging 4. labeling 5. product support labels

individual product decisions

1. product attributes 2. branding 3. packaging 4. labeling 5. product support services

Boston Consulting Group (BCG) approach

A company classifies all its SBUs according to the growth matrix ( the portfolio planning method)

B) share of customer

A company rarely gets​ 100% of a​ customer's purchases for a product category. The share it does get of the​ customer's purchasing in its product categories is called​ ________. A) customer defections B) share of customer C) customer lifetime value D) share of market E.customer equity

Market segment

A group of consumers who respond in a similar way to a given set of marketing efforts

Which type of business buying situation offers marketers the greatest opportunity but also the greatest challenge?

A new task situation

Product/market expansion grid

A portfolio planning tool for identifying company growth opportunities through market penetration, market development, product development, or diversification.

Which of the following is the correct definition of a product?

A product is anything that can be offered to a market for​ attention, acquisition,​ use, or consumption that might satisfy a want or need.

Mission statement

A statement of the organizations purpose - what it wants to accomplish in the larger environment

Differentiation

Actually differentiating the market offering to create superior customer value

E) customer satisfaction

Although Zappos was not legally bound to fulfill customer orders following its pricing​ snafu, failure to do so would have significantly lowered​ __________, which is based on a​ company's performance relative to the​ customers' expectations A) customer demand B) customer-perceived value C) customer lifetime value D) customer engagement E) customer satisfaction

A SWOT is a part of which marketing management​ function?

Analysis

Positioning

Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers

What are the five stages of the consumer adoption process in the correct sequence?

Awareness, interest, evaluation, trial, and adoption

Demographic trends

Changing age and family structures, geographic population shifts, educational characteristics, population diversity

Market penetration

Company growth by increasing sales of current products to current market segments without changing the product

Diversification

Company growth through starting up or acquiring businesses outside the company's current products and markets

Actors in the microenvironment

Company, suppliers, marketing intermediaries, competitors, public, customers

What are the two broad classifications of products?

Consumer products and industrial products

Which of the following is included in a broad definition of marketing?

Creating customer value, building customer relationships, and engaging customers

What are the four general characteristics that influence consumer​ purchases?

Cultural​ characteristics, social​ characteristics, personal​ characteristics, and psychological characteristics

A) the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction

Customer relationship management is __________. A) the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction B) the customer's evaluation of the difference between all the benefits and all the costs of a marketing offer relative to those of competing offers C) the extent to which a product's perceived performance matches a buyer's expectations D) the portion of the customer's purchasing that a company gets in its product categories

Four Cs

Customer solution Customer cost Convenience Communication

Which of the following statements is true regarding initiating price​ cuts?

Cutting prices in an industry loaded with excess capacity might lead to price wars.

What is the correct sequence of the steps in the strategic planning process?

Define the company​ mission, set company objectives and​ goals, design the business​ portfolio, and plan the market and other functional strategies

What are the four steps of the marketing research process in their correct sequence?

Define the problem and research​ objectives, develop the research​ plan, implement the research​ plan, interpret and report the findings

D) social​ media, mobile​ apps, and blogs

Digital marketing tools used in digital and social media marketing include​ ________. A) mobile​ apps, online​ video, and personal selling B) ​e-mail, telemarketing, and blogs C) social​ media, online​ video, and newspaper coupons D) social​ media, mobile​ apps, and blogs E) social​ media, mobile​ apps, and television advertising

B) customer lifetime value

Disney has created a​ strong, memorable brand with its​ customers, which in turn keeps customers returning to the brand over​ time, known as​ ___________ A) needs, wants, and demands B) customer lifetime value C) customer relationship value D) customer retention E) value and satisfaction

B) exchange

Disney offers its products to families and children who desire the Disney experience and subsequently purchase products and experiences. Disney and its customers are engaged in​ _________ A) marketing B) exchange C) customer lifetime value D) demand E) engagement

What is market segmentation?

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

What is the first step in the new product development process?

Generating new product ideas

What are the four major variables used to segment consumer markets?

Geographic, demographic, psychographic, and behavioral

Stars - GSM

High growth, high share business or products. Often need heavy investments to finance rapid growth. Eventually their growth will slow down and they will turn into cash cows

Which of the following is a potentially effective action a company could take in response to a​ competitor's price​ cut?

Increase both price and quality

Cash cows - GSM

Low growth, high share businesses or products. These are established and successful SBUs and need less investment to hold their market share. So they produce a lot of cash that the company uses to pay bills and support other SBUs

Question Marks - GSM

Low share business units in high growth markets. they require a lot of cash to hold their share, let alone increase it. Managament has to think about which question mark it should try to build into stars

Segmentation Analysis

Markets must be measurable, accessible, substantial, differentiable, actionable

What are the four growth strategies identified by the​ product/market expansion​ grid?

Market​ penetration, market​ development, product​ development, and diversification

Which stage of the product life cycle normally lasts longer than the previous stages and poses strong challenges to marketing management?

Maturity

A) states of felt deprivation

Needs are __________. A) states of felt deprivation B) shaped by culture and individual personality C) human wants that are backed by buying power D) some combination of products, services, information, or experiences offered to a market to satisfy a need or want

Which of the following correctly identifies the five core customer and marketplace concept?

Needs, wants, and demands; market offerings; value and satisfaction; exchanges and relationships; and markets

Which of the following statements is true regarding how price might play an important role in helping to accomplish company objectives.

Pricing can create excitement for a brand

What are the five product mix pricing situations?

Product line​ pricing, optional-product​ pricing, captive-product​ pricing, by-product​ pricing, and product bundle pricing

Which of the following represent market offerings?

Products, services, information, and experiences

What are the five characteristics that are especially important in influencing an innovation's rate of adoption?

Relative advantage, complexity, compatibility, divisibility, and communicability

A) marketing concept

The __________ is a philosophy in which achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do. A) marketing concept B) selling concept C) product concept D) production concept

A) production concept

The __________ is the idea that consumers will favor products that are available and highly affordable; therefore, the organization should focus on improving production and distribution efficiency. A) production concept B) product concept C) selling concept D) marketing concept

A) product concept

The __________ is the idea that consumers will favor products that offer the most quality, performance, and features; therefore, the organization should devote its energy to making continuous product improvements. A) product concept B) production concept C) selling concept D) marketing concept

A) selling concept

The __________ is the idea that consumers will not buy enough of the firm's products unless the firm undertakes a large-scale selling and promotion effort. A) selling concept B) product concept C) production concept D) marketing concept

Most standard portfolio analysis methods evaluate strategic business units​ (SBUs) on their performance in two important dimensions. What are these two​ dimensions?

The attractiveness of the​ SBU's market or industry and the strength of the​ SBU's position in that market or industry

Business portfolio

The collection of business and products that make up the company. This best one is that best fits the companys strengths and weaknesses to opportunities in the environment.

D) understand the​ marketplace, which includes customer needs and wants.

The first step of the marketing process is to​ ___________________ A) design a​ customer-driven marketing strategy B) capture value from customers to create profits and customer equity. C) construct an integrated marketing program that delivers superior value D) understand the​ marketplace, which includes customer needs and wants. E) build profitable relationships

Which marketing management orientation holds that a firm should have a customer focus to achieve sales and profits?

The marketing concept

creating profits and customer equity

The marketing process captures value from customers by __________ A) creating profits and customer equity B) understanding the marketplace and customers' needs and wants C) constructing an integrated marketing program that delivers superior value D) building profitable relationships and creating customer delight

Portfolio analysis

The process by which management evaluates the products and businesses that make up the company.

Market targeting

The process of evaluating each market segments attractiveness and selecting one or more segments to enter

A) the idea that consumers will favor products that are available and highly affordable; therefore, the organization should focus on improving production and distribution efficiency

The production concept is __________. A) the idea that consumers will favor products that are available and highly affordable; therefore, the organization should focus on improving production and distribution efficiency B) the idea that consumers will favor products that offer the most quality, performance, and features; therefore, the organization should devote its energy to making continuous product improvements C) the idea that consumers will not buy enough of the firm's products unless the firm undertakes a large-scale selling and promotion effort D) a philosophy in which achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do

What determines whether the buyer is satisfied or dissatisfied with a purchase

The relationship between the consumer's expectations and the product perceived performance

Marketing mix

The set of tactical marketing tools, product, price, place and promotion (Four Ps) that consists of everything a firm can do to engage customers and deliver customer value

A) the idea that a company's marketing decisions should consider consumers' wants, the company's requirements, consumers' long-run interests, and society's long-run interests

The societal marketing concept is __________. A) the idea that a company's marketing decisions should consider consumers' wants, the company's requirements, consumers' long-run interests, and society's long-run interests B) the idea that consumers will favor products that offer the most quality, performance, and features; therefore, the organization should devote its energy to making continuous product improvements C) the idea that consumers will not buy enough of the firm's products unless the firm undertakes a large-scale selling and promotion effort D) a philosophy in which achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do

Issues with BCG and other formal methods revolutionized strategic planning

They can be difficult, time consuming, and costly to implement. These approaches focus on classifying current business but provide little advice for future planning

Which of the following correctly lists the actors in a​ company's microenvironment?

The​ company, suppliers, marketing​ intermediaries, customer​ markets, competitors, and publics

B) customer satisfaction

Through the customer experiences of its​ products, hotels, theme​ parks, and other packaged value​ items, Disney has been quite successful in creating high​ ________________ A) ​customer-perceived value B) customer satisfaction C) customer engagement D) customer demand E) customer lifetime value

A) What customers will we​ serve? How can we serve these customers​ best?

To design a winning marketing​ strategy, what are the two important questions a marketing manager must​ answer? A) What customers will we​ serve? How can we serve these customers​ best? B) What customers will we​ serve? How can we maximize​ profits? C) How can we serve our customers​ best? How can we maximize​ profits? D) What markets should we​ enter? How do we maximize sales in those​ markets? E) Who are our​ competitors? How can we beat our​ competitors?

Which of the following is a reason for business​ legislation?

To protect consumers from unfair business practices

Which of the following is true regarding international marketing​ research?

Translating questionnaires from one language to another is not an easy task.

What are the two keys to building lasting customer relationships?

Value and satisfaction

Which structural factor would make a market segment attractive to enter?

Very few actual or potential substitute products

B) Value and satisfaction

What are the two keys to building lasting customer​ relationships? A) Satisfaction and sales promotions B) Value and satisfaction C) Value and customer service D) Innovative products and low prices E) Customer service and quality products

What advice would you give a firm about how to respond to the changing marketing environment?

Whenever possible, take a proactive approach to the environment

C) The marketing concept

Which marketing management orientation holds that a firm should have a customer focus to achieve sales and​ profits? A) The production concept B) Product concept C) Selling Concept D) The marketing concept E) The societal marketing concept

E) Needs, wants, and​ demands; market​ offerings; value and​ satisfaction; exchanges and​ relationships; and markets.

Which of the following correctly identifies the five core customer and marketplace​ concepts? A) Needs, wants, and​ demands; products;​ value; customers; and competitors B) ​Needs, wants,​ demands, market​ offerings, and markets C) Needs, wants, and​ demands; market​ offerings; value;​ satisfaction; and markets D) Needs, wants, and​ demands; market​ offerings; value and​ satisfaction; competitors; and profits E) ​Needs, wants, and​ demands; market​ offerings; value and​ satisfaction; exchanges and​ relationships; and markets

c) Creating customer​ value, building customer​ relationships, and engaging customers

Which of the following is included in a broad definition of marketing? a) selling, advertising, and promoting b) advertising, selling and developing quality products c) Creating customer​ value, building customer​ relationships, and engaging customers. d) Satisfying​ customers, beating​ competitors, and maximizing profits. e) Creating customer​ value, building customer​ relationships, and having a strong selling orientation.

C) Products, services,​ information, and experiences

Which of the following represent market​ offerings? A) Products, services,​ needs, and wants B) Value, satisfaction,​ sales, and profits C) ​Products, services,​ information, and experiences D) ​Products, services,​ needs, and exchanges E) ​Needs, wants,​ products, and advertisements

B) The Great Recession caused consumers to rethink their buying priorities.

Which of the following statements regarding the changing marketing landscape is​ correct? A) Today's post-recession era consumers buy​ more, use fewer​ coupons, use their credit cards​ more, and save less. B) The Great Recession caused consumers to rethink their buying priorities. C) Global competition affects only large companies. D) Companies can safely ignore the environmental movement. E) Digital technology has had little impact on the way we live.

E) customer lifetime value

While​ Zappos' pricing snafu cost the company nearly​ $1.6 million​ dollars, the company chose to fulfill all the orders because it realized the​ long-term loss of patronage from these customers could be even more expensive. A key metric that measures the​ long-term profitability of individual customers or groups of customers is known as​ __________ A) customer satisfaction B) customer retention C) customer relationship value D) ROI E) customer lifetime value

Partner relationship management

Working closely with others inside and outside the company to jointly engage and bring more value to customers

A) value

Zappos creates​ __________ for its customers by offering a wide​ selection, higher levels of​ service, and​ customer-friendly return policies A) value B) equity C) exchanges D) demands E) satisfaction

D) exchange

Zappos offers customers wide​ selection, excellent​ service, and​ customer-friendly return policies. In​ return, customers are willing to pay more for the​ company's offerings. This act of obtaining a desired object from someone by offering something in return is known as​ __________. A) satisfaction B) engagement C) marketing D) exchange E) value

A) Marketing offerings

__________ are some combination of products, services, information, or experiences offered to a market to satisfy a need or want A) Marketing offerings B) Demands C) Wants D) Needs

A) Wants

__________ are the form human needs take as they are shaped by culture and individual personality. A) Wants B) Needs C) Demands D) Marketing offerings

A) Exchange

__________ is the act of obtaining a desired object from someone by offering something in return. A) Exchange B) Marketing management C) Marketing D) Marketing myopia

A) Marketing management

__________ is the art and science of choosing target markets and building profitable relationships with them. A) Marketing management B) Marketing C) Exchange D) Marketing myopia

A) Customer-perceived value

__________ is the customer's evaluation of the difference between all the benefits and all the costs of a marketing offer relative to those of competing offers. A) Customer-perceived value B) Customer relationship management C) Customer satisfaction D) Share of customers

A) Share of customers

__________ is the portion of the customer's purchasing that a company gets in its product categories A) Share of customers B) Customer satisfaction C) Customer-perceived value D) Customer relationship management

A) Customer equity

__________ is the total combined values of all of the company's customers. A) Customer equity B) Customer lifetime value C) Share of customers D) Customer-perceived value

A) Customer lifetime value

__________ is the value of the entire stream of purchases a customer makes during a lifetime of patronage. A) Customer lifetime value B) Customer equity C) Share of customers D) Customer-perceived value

shopping product

a consumer product that the customer, in the process of selecting and purchasing, usually compares on such attributes as suitability, quality, price, and style

specialty product

a consumer product with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort

undifferentiated marketing (mass marketing)

a firm decides to ignore market segment differences and target the whole market with one offer

product line

a group of products that are closely related because they function in a similar manner, are sold to the same customer groups, and marketed through the same types of outlets, or fall within given price ranges

brand

a name, term, sign, symbol, or design, or a combination of these, that identifies the products or services of one seller or group of sellers and differentiates them from those of competitors

Growth Share Matrix

a portfolio planning method that evaluates a company's strategic business units (SBUs) in terms of its market growth rate and relative market share

consumer product

a product bought by final consumers for personal consumption, which includes convenience, shopping, specialty, and unsought products

industrial product

a product bought by individuals and organizations for further processing or for use in conducting a business, which include materials and parts, capital items, and supplies/services.

unique selling proposition

a specific attribute that a company chooses about a brand and touts as "number 1" in regards to that attribute

service

an activity, benefit, or satisfaction offered for sale that is essentially intangible and does not result in the ownership of anything

SWOT analysis

an overall evaluation of the company's strengths (S), weaknesses (W), opportunities (O), and Threats (T)

public

any group that has an actual or potential interest in or impact on an organization's ability to achieve its objectives

product

anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need

positioning

arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers

do-not-call implementation act (2003)

authorizes the FTC to collect fees from sellers and telemarketers for the implementation and enforcement of a national do-not-call registry

magnuson-moss warranty act (1975)

authorizes the FTC to determine rules and regulations for consumer warranties and provides consumer access to redress, such as the class action suit

child protection act (1966)

bans the sale of hazardous toys and articles. sets standards for child resistant packaging

Understanding wants, needs, and demands helps companies to design want-satisfying market offerings and build value-laden customer relationships by which they can capture

customer lifetime value and greater share of customer equity

The price​ ceiling, the maximum price a company can​ charge, is set by​ ________.

customer perceptions of the​ product's value

What are the three major pricing strategies used by​ marketers?

customer value-based pricing, cost-based pricing, and competition-based pricing

managing service differentiation

developing a differentiated offer, delivery, and image

environmental sustainability

developing strategies and practices that create a world economy that the planet can support indefinitely

differentiation

distinguishing a market offering from other offerings in order to create superior customer value

psychographic segmentation

divides buyers into different segments based on social class, lifestyle, or personality characteristics

demographic segmentation

divides the market into segments based on age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation

income segmentation

dividing a market into different income groups

gender segmentation

dividing a market into different segments based on gender

market segmentation

dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors and who might require separate marketing strategies or mixes

occasion segmentation

dividing a market into segments according to the moments when buyers get the idea to buy, actually make their purchase, or use the purchased item

Market segmentation

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

differentiated marketing (segmented marketing)

firm decides to target several market segments and designs separate offers for each

marketing intermeiaries

firms that help the company to promote, sell, and distribute its goods to final buyers

variables companies can use to segment international markets include

geographic location, economic factors, political and legal factors, and cultural factors

Differentiation and positioning task consists of

identifying a set of possible differentiation that create competitive advantage, choosing product features and benefits on which to build a position, and selecting an overall positioning strategy

Place

includes company activities that make the product available to target consumers

In addition to income​ levels, marketers need to pay attention to​ ______, which has created a tiered market.

income distribution levels

cultural environment

institutions and other forces that affect society's basic values, perceptions, preferences, and behaviors

political environment

laws, government agencies, and pressure groups that influence and limit various organizations and individuals in a given society

The major product line decision involves the line's _______, or the number of items in the product line.

length

wheeler-lea act (1938)

makes deceptive, misleading, and unfair practices illegal regardless of injury to competition. places advertising of food and drugs under FTC jurisdiction

natural environment

natural resources that are needed as inputs by marketers or that are affected by marketing activities

Market Growth Rate

provides a measure of market attractiveness which is on the vertical axis of growth share matrix

national traffic and safety act (1946)

provides for the creation of compulsory safety standards for automobiles and tires

fair packaging and labeling act (1966)

provides for the regulation of packaging and the labeling of consumer goods. requires that manufacturers state what the package contains, who made it, and how much it contains

CAN-SPAM act (2003)

regulates the distribution and content of unsolicited commercial e-mail

nutrition labeling and education act (1990)

requires that food product labels provide detailed nutritional information

Managing the marketing process

requires the four marketing management functions, analysis, planning, implementation, and control

service perishability

services cannot be stored for later sale or use

A company rarely gets 100% of a customer's purchases for a product category. The share it does get of the customer's purchasing in its product categories is called

share of customer

perceptual positioning maps

show consumer perceptions of their brands vs those of competing products on important buying dimensions

Digital marketing tools used in digital and social media marketing include

social media, mobile apps, and blogs

clayton act (1914)

supplements the Sherman Act by prohibiting certain types of price discrimination, exclusive dealing, and tying clauses

local marketing

tailoring brands and marketing to the needs and wants of cities, neighborhoods, and even specific stores

individual marketing

tailoring products and marketing programs to the needs and preferences of individual customers

micromarketing

tailoring products and marketing programs to the needs and wants of specific individuals and local customer segments; it includes local marketing and individual marketing

According to the​ text, __________ are perhaps the most dramatic forces affecting​ today's marketing strategies.

technological forces

generation x

the 49 million people born between 1965 and 1976 in the "birth dearth" following the baby boom

baby boomers

the 78 million people born during the years following WWII and lasting until 1964

millenials (generation y)

the 83 million children of the baby boomers born between 1977 and 2000

packaging

the activities of designing and producing the container or wrapper for a product

marketing environment

the actors and forces outside marketing that affect marketing management's ability to build and maintain successful relationships with target customers

microenvironment

the actors close to the company that affect its ability to serve its customers- the company, suppliers, marketing intermediates, customer markets, competitors, and publics

service profit chain

the chain that links service firm profits with employee and customer satisfaction

product quality

the characteristics of a product or service that bear on its ability to satisfy states or implied customer needs

How to find best marketing strategy and mix

the company engages in marketing analysis planning implementing and control

brand equity

the differential effect that knowing the brand name has on customer response to the product or its marketing

value proposition

the full mix of benefits on which a brand is positioned

macroenvironment

the larger societal forces that affect the microenvironment- demographic, economic, natural, technological, political, and cultural forces

For strategic planning​ purposes, marketing provides a guiding philosophy that suggests the​ company's strategy should revolve around creating customer value and building profitable relationships with important consumer groups. This philosophy is called​ _______.

the marketing concept

Marketing Strategy

the marketing logic by which the company hopes to create customer value and achieve profitable customer relationships

Value chain

the series of internal departments that carry out value creating activities to design, produce, market, deliver, and support a firm's products

product mix (or product portfolio)

the set of all product lines and items that a particular seller offers for sale

demography

the study of human populations in terms of size, density, location, age, gender, race, occupation, and other statistics

social marketing

the use of commercial marketing concepts and tolls in programs designed to influence individuals' behavior to improve their well-being and that of society

product position

the way a product is defined by consumers on important attributes - the place the product occupies in consumers' minds relative to competing products

Internal factors that affect pricing include​ ________.

the​ company's overall marketing​ strategy, objectives, marketing​ mix, and other organizational considerations.

Marketing implementation

turning marketing strategies and plans into marketing actions to accomplish strategic marketing objectives

To create successful new products, a company must ________.

understand its consumers, markets, and competitors, and develop products that deliver superior value

the different levels market targeting can be carried out:

undifferentiated marketing, micromarketing, differentiated or concentrated marketing

brand sponsorship: licensing

use names and symbols created by other companies or well known movie characters or celebrities for free

A _______ defines how a company will create differentiated value for targeted segments and what positions it wants to occupy in those segments.

value proposition

What structural factor would make a market segment attractive to enter?

very few actual or potential substitute products