Marketing Exam #1
(ch3) ___ is the institutions and other forces that affect a society's basic values, perceptions, preferences, and behaviors.
The cultural environment
(ch3) What is environmental sustainability?
The development of strategies and practices that create a world economy that the planet can support indefinitely.
(ch6) ___ are people in an organization's buying center who make an actual purchase.
buyers
It can be supposed that an increase in the importance of fitness and wellness in people's lives prompted Apple to include features like the built-in compass and always-on workout apps. That increased importance in fitness is part of the __________________ societal force.
cultural
The most basic determinant of a person's wants and behavior are embedded in a consumers
culture.
(ch1) __ is the total combined customer lifetime values of all the company's current and potential customers.
customer equity
(ch1) ___ is the value of the entire stream of purchases a customer makes over a lifetime of patronage.
customer lifetime value.
(ch1) The ultimate aim of ___ is to produce high customer equity.
customer relationship management
(ch1) ___ is the overall process of building and maintaining profitable customer relationships.
customer relationship management
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.
customer satisfaction
(ch1) ___ 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.
customer-perceived value.
While Millennials are the primary target customer of the Atlanta Hawks, it is clear that the efforts of the organization to facilitate social media activity also appeals to other customer segments including Gen X and Baby Boomers. Thus, it is clear that the Hawks are employing a(n) __________________ targeting strategy.
differentiated
(ch7) market segmentation is best defined as ___
dividing a market into smaller segments of buyers with distinct needs, characteristics, or behaviors that might require separate marketing strategies or mixes
(ch3) Which of the following consists of economic factors that affect purchasing power and spending patterns?
economic environment
There are a number of influences on the buying organization and buying center that can impact how and what is purchased by a business. For Eaton's customers, the economic crises in 2008 would be classified as what type of influence?
environmental
(ch1) customer satisfaction is the ___
extent to which a product's perceived performance matches a buyer's expectations.
(ch6) __________ is the stage of the business buying process in which a buyer describes the general characteristics and quantity of a needed item.
general need description
Students purchasing items with the college logo most likely represent consumers involved in which type of buying behavior
habitual
When Eaton worked with the University of Notre Dame on its new engineering building to improve its energy efficiency and earn LEED credits, Eaton engaged with a number of people at Notre Dame to finalize the partnership and solidify terms and conditions associated with the agreement. Which of the following people in the buying center would have affected Notre Dame's buying decision (for example, define specs and provide information on evaluating alternatives)?
influencers
(ch6) __ are people in an organization's buying center who affect the buying decision; they often help define specifications and also provide information for evaluating alternatives.
influencers.
(ch5) ___ is the stage of the buyer decision process in which the consumer is motivated to search for more information.
information search
(ch5) An opinion leader ___
is someone within a reference group who can exert social influence on others.
(ch3) The political environment consists of the ___
laws, government agencies, and pressure groups that influence and limit various organizations and individuals in a given society
(ch3) Which of the following publics includes community residents and organizations?
local publics
(ch2) __ refers to 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 segmentation
(ch6) __ is the stage of the business buying process in which the buyer writes the final order with the chosen supplier(s), listing the technical specifications, quantity needed, expected time of delivery, return policies, and warranties.
order-routine specification
(ch7) __ divides the market into different segments based on lifestyle or personality characteristics.
psychographic segmentation
(ch6) supplier selection is the stage of the business buying process in which __.
the buyer reviews proposals and selects a supplier or suppliers
(ch6) business buyer behavior is best defined as __.
the buying behavior for organizations that buy goods and services for use in the production of other products and services that are sold, rented, or supplied to others
(ch7) a value proposition is __
the full positioning of a brand - the full mix of benefits on which it is positioned
(ch5) In the ___ stage of the adoption process, the consumer seeks information about the new product.
interest
(ch7) The segmenting of consumers who have similar needs and buying behaviors even though they are located in different countries is known as __ segementation.
intermarket
(ch7) a __ is a statement that summarizes company or brand positioning using this form: To (target segment and needs) our (brand) is (concept) that (point of difference).
positioning statement
When Eaton's customers became aware that they needed solutions for power management, energy savings, green technologies, and LEED certification, they were in which phase of the business buying process?
problem recognition
(ch1) marketing is best described as the ___
process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return.
(ch6) __ is the stage of the business buying process in which the buying organization decides on and specifies the best technical product characteristic for a needed item
product specification
(ch3) Smart marketing managers take a proactive approach rather than a(n) __ approach to the marketing environment.
reactive
(ch6) A straight rebuy is a business buying situation in which the buyer __.
routinely reorders sometime without any modifications.
(ch6) The institutional market is best defined as the ___
schools, hospitals, nursing homes, prisons, and other institutions that provide goods and services to people in their care
(ch7) What is another name for differentiated marketing
segmented marketing
(ch2) The growth-share matrix defines four types of SBUs: Cash cows are
low-growth, high-share businesses or products
(ch2) The growth-share matrix defines four types of SBUs (Strategic Business Unit): questions marks are ___
low-share business units in high-growth markets
A popular football player at a college who is able to influence the buying decisions of fans would best be described as a(n)
opinion leader influence
(ch5) __ is the process by which people select, organize, and interpret information to form a meaningful picture of the world.
perception
(ch3) The Sherman Antitrust Act ___
prohibits monopolies and activities (price-fixing, predatory pricing) that restrain trade or competition in interstate commerce.
(ch6) __ is the stage of the business buying process in which the buyer invites qualified suppliers to submit proposals.
proposal solicitation
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 __________.
customer lifetime value
Konica/Minolta hopes to create customer value through its mission, strategic goals and objectives, marketing mix, and other marketing tools. This collective effort is known as Konica/Minolta's __________.
marketing strategy
(ch7) __________ refers to tailoring products and marketing programs to the needs and wants of specific individuals and customer segments.
micromarketing
In terms of general value propositions, the Hawks are providing greater value with a __ strategy
more for the same
(ch7) geographic segmentation divides a market into__
nations, states, regions, counties, cities, or neighborhoods.
(ch3) which term refers to the physical environment and the natural resources that are needed as inputs by marketers or that are affected by marketing activities?
natural environment
(ch5) ___ is the first stage of the buyer decision process in which the consumer recognizes a problem or a need.
need recognition
Under the previous CEO, Konica/Minolta's management determined it was time to invest in __________ by offering new products to the technology market.
product development
Which differentiation strategy does the Atlanta Hawks seem to be employing?
product differentiation
__ is the set of all product lines and items that a particular seller offers for sale.
product mix
(CH1) 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.
production concept
(ch7) Occasion segmentation divides a market into ___
segments according to times when buyers get the idea to buy, actually make their purchase, or use the purchased item
___ means that the quality of services may vary greatly depending on who provides them and when, where and how they are provided.
service variability
(ch1) ___ is 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.
societal marketing concept
Through the years, Eaton has shifted from selling strictly components to solving its customers' problems with more tailored offerings. This is an example of _________.
solutions selling
(ch2) by ___, diversification achieves company growth
starting up or acquiring businesses outside the company's current products and markets
(ch5) Marketing stimuli are ___
such things as product, price, place, and promotion.
(ch6) __________ is the systematic development of networks of supplier-partners to ensure an appropriate and dependable supply of products and materials used in making products or reselling to others.
supplier development
(ch6) __________ is the stage of the business buying process in which the buyer tries to find the best vendors.
supplier search
The Apple Watch's "always on" display is made possible through advancements that produced Apple's low-temperature polysilicon and oxide display (LTPO). This particular development occurred in the ______________ force of the macroenvironment.
technological
(ch6) __ is the federal, state, and local units that purchase or rent goods and services for carrying out the main functions of government.
the government market
The Apple Watch Series 5 was developed with an awareness of current trends in the large societal forces known as ___.
the macroenvironment
(ch2) The marketing logic by which the company hopes to create customer value and achieve profitable customer relationships is ___
the marketing strategy
(ch2) marketing return on investment is ___
the net return from a marketing investment divided by the costs of the marketing investment
(ch2) strategic planning is __
the process of developing and maintaining a strategic fit between the organization's goals and capabilities and its changing market opportunities.
(ch2) marketing control is ___
the process of measuring and evaluating the results of marketing strategies and plans, and taking corrective action to ensure that the objectives are achieved.
(ch2) A value chain is best defined as ___.
the series of internal departments that carry out value-creating activities to design, produce, market, deliver, and support a firm's products.
(ch5) Culture is __
the set of basic values, perceptions, wants, and behaviors learned by a member of society from family and other important institutions
(ch6) What is a modified rebuy?
A business buying situation in which the buyer wants to modify product specifications, prices, terms, or suppliers
(ch2) What is a mission statement?
A description of the organization's purpose - what it wants to accomplish in the larger environment
(ch5) Which of the following describes a belief?
A descriptive thought that a person holds about something
(ch7) Which of the following describes undifferentiated marketing?
A market-coverage strategy in which a firm decides to ignore market segment differences and go after they whole market with one offer
(ch5) What are attitudes?
A person's consistently favorable or unfavorable evaluations, feelings, and tendencies towards an object or idea.
(ch1) what is the marketing concept?
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.
(ch1) a need is best described as ___.
A state of felt deprivation.
(ch7) positioning involves ___
arranging a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.
IMG World's products and services are geared toward colleges and students, the students of which may be considered young achievers. This designation can be best described as which influential factor of consumer buying behavior?
Age and life stages
What is a service?
An activity, benefit, or satisfaction offered for sale that is essentially intangible and does not result in the ownership of anything.
(ch3) ___ are the 78 million people born during the years following World War 2 and lasting until 1964.
Baby boomers
(ch6) Which of the following describes the business buying process?
Business buyers determine which products and services their organizations need to purchase and then they find, evaluate, and choose among alternative suppliers and brands
(ch5) __ are a part of the buyer's responses.
Buying attitudes and preferences.
(ch2) How does product development achieve company growth?
By offering modified or new products to current market segments.
(ch5) Which of the following describes leaerning?
Changes in an individual's behavior arising from experience
(ch5) In the adoption process, __ is when the consumer becomes aware of the new product, but lacks information about it.
awareness
(ch7) Which term refers to distinguishing the market offering to create superior customer value?
Differentiation
(ch7) What does differentiation involve?
Distinguishing the market offering to create superior customer value
(ch2) What is 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.
(ch2) The growth-share matrix defines four types of SUBs: __ are low-growth, low-share businesses and products.
Dogs
(ch6) __ refers to purchasing through electronic connections between buyers and sellers - usually online.
E-procurement
(ch7) Which of the following describes market targeting?
Evaluating each market segment's attractiveness and selecting one or more segments to enter.
Which of the following is the best example of Apple appealing to a trend in the demographic environment?
Fall detection and emergency SOS for the aging Baby Boomer population.
(ch3) What is the purpose of the Federal Food and Drug Act?
Forbids the manufacture or sale of adulterated or fraudulently labeled foods and drugs
(ch3) Which of the following groups is referred to as the "birth dearth"?
Generation X
(ch3) Which of the following refers to the 80 million people born between 1997 and 2012?
Generation Z
Which of the following is the technological trend most likely considered in the development of the new Apple Watch?
Increasingly efficient apps, features, and components that consume less energy stored in batteries.
(ch7) __ refers to tailoring products and marketing programs to the needs and preferences of individual customers
Individual marketing
IMG World provides college students with new, relevant media, making which stage of the consumer buyer behavior process easier for the consumer?
Information search
(CH1) ___ are some combination of products, services, information, or experiences offered to a market.
Market offerings
(ch2) __ refers to turning marketing strategies and plans into marketing actions to accomplish strategic marketing objectives.
Marketing implementation
(ch6) in an organization's buying center, who are the deciders?
People who have formal or informal power to select or approve the final suppliers.
(CH1) ____ 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.
Product concept
(ch2) __ refers to an overall evaluation of the company's strengths, weaknesses, opportunities, and threats.
SWOT analysis
(ch2) The growth-share matrix defines four types of SBU's: ___ are high-growth, high-share businesses or products.
Stars
(ch7) What is the definition of local marketing?
Tailoring brands and marketing to the needs and wants of local customer segments - cities, neighborhoods, and even specific stores
(ch1) __ is a global environment where everything and everyone is digitally connected to everything and everyone else.
The Internet of Things
(ch3) What is the microenvironment?
The actors close to the company that affects its ability to serve its customers - the company, suppliers, marketing intermediaries, customer markets, competitors, and publics.
(ch1) which of the following describes the selling concept?
The idea that consumers will not buy enough of the firm's products unless the firm undertakes a large-scale selling and promotion effort.
(ch6) Which of the following describes systems selling?
The purchase of a packaged solution to a problem from a single seller, thus avoiding all the separate decisions involved in a complex buying situation.
(ch2) What is the marketing mix?
The set of tactical marketing tools -- product, price, place, and promotion -- that the firm blends to produce the response it wants in the target market.
(ch5) Which of the following describes the purchase decision stage?
They buyer makes a decision about which brand to purchase.
(ch3) What is the purpose of the Robinson-Patman Act?
To empower 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 purpose of a service profit chain?
To link service firm profits with employee and customer satisfaction.
(ch3) What is the purpose of the Wheeler-Lea Act?
To make deceptive, misleading, and unfair practices illegal regardless of injury to competition.
(ch5) A subculture is __.
a group of people with shared value systems based on common life experiences and situations.
(ch1) which of the following is the set of all actual and potential buyers of a product or service?
a market
(ch5) lifestyle is __
a person's pattern of living as expressed in his or her activities, interests, and opinions.
(ch7) __ is defined by consumers on important attributes - the place the product occupies in consumers' minds relative to competing products
a product position
(ch5) A social class is __
a set of relatively permanent and ordered division in a society whose members share similar values, interests, and behaviors.
(ch2) __ consists of the company, its suppliers, its distributors, and, ultimately, its customers who partner with each other to improve the performance of the entire system.
a value delivery network
(ch3) marketing environment is best described as the ___
actors and forces outside marketing that affect marketing management's ability to build and maintain successful relationships with target customers.
(ch5) __ is the stage of the buyer decision process in which the consumer uses information to evaluate alternative brands in the choice set.
alternative evaluation
(ch7) competitive advantage is __
an advantage over competitors gained by offering greater customer value, either by having lower prices or by providing more benefits that justify higher prices
(ch3) a public is ___
any group that has an actual or potential interest in or impact on an organization's ability to achieve its objectives
(ch1) Demands are ___
backed by buying power
(ch7) __ divides a market into segments based on consumer knowledge, attitudes, uses, or responses to a product
behavioral segmentation
Attributes and benefits are part of ___, which is one of the major brand strategy decisions.
brand positioning
Licensing and co-branding are two key methods of ___.
brand sponsorship
(ch5) Consumer buying behavior in situations characterized by high consumer involvement in a purchase and significant perceived differences among brands is known as ___.
complex buying behavior
(ch7) __________ is a market-coverage strategy in which a firm goes after a large share of one or a few segments or niches.
concentrated marketing
The Atlanta Hawks recently renovated their home arena with Millenials as the target customer group. This is based on ___ segmentation.
demographic
(ch3)__ is described as the study of human population in terms of size, density, location, age, gender, race, occupation, and other statistics.
demography
Eaton sells only to businesses and focuses on the electrical, hydraulics, aerospace, and vehicle markets. When the economic crises hit in 2008, consumers began cutting back, and as a result, Eaton's customers needed to cut costs and scale back operations. This, in turn, impacted Eaton's sales, which is known as __________.
derived demand
Having an arena with bandwidth that is stronger than the average event venue is one way that the Atlanta Hawks have ______________________ their market offering.
differentiated
(ch1) ___ is best defined as the art and science of choosing target markets and building profitable relationships with them.
marketing management
Kevin Kern described Konica/Minolta's use of commercials, newspapers, social media, and other media to control the marketing message. Which marketing concept was he referring to?
marketing mix
(ch1) Which term refers to the mistake of paying more attention to the specific products that a company offers than to the benefits and experiences produced by those products?
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 __________.
marketing myopia
Prior to changing its product offerings and realigning its business units, managers at Konica/Minolta most likely first performed which of the following to determine those units that were profitable and those that should be phased out or realigned?
perform a portfolio analysis
(ch6) __________ is the stage of the business buying process in which the buyer assesses the performance of the supplier and decides to continue, modify, or drop the arrangement.
performance review
(ch7) __ is an example of psychographic segmentation
personality
(ch2) What is the name for the process of arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers?
positioning
(ch5) in the __ stage of the adoption process, the consumer tries the new product on the small scale to improve his or her estimate of its value.
trial
Zappos creates __________ for its customers by offering a wide selection, higher levels of service, and customer-friendly return policies.
value
(ch1) ___ are shaped by culture and an individual's personality.
wants
(ch6) users are members of the buying organization who __
will actually use the purchased product or service
With regard to consumer products, a specialty product is one __
with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort.
(ch5) In the __ stage of the adoption process, the consumer considers whether trying the new product makes sense.
evaluation
Zappos offers customers a 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 __________.
exchange
(ch3) The technological environment consists of the ___
forces that create new technologies that lead to new product and market opportunities
(ch3) Which term refers to the larger societal forces that affect the demographic, economic, natural, technological, political, and cultural forces?
macroenvironment
(ch2) __ achieves company growth by identifying and developing new market segments for current company products.
market development
(ch2) __ achieves company growth by increasing sales of current products to current market segments without changing the product.
market penetration
Konica/Minolta focuses one of its business units on medical and healthcare groups. These groups make up one of Konica/Minolta's __________.
market segment