Marketing: Midterm 1 (Chapters 1, 2, 5, 9, 10, 11, 12, 15, 16)

Brian is struggling with the choice of publishing his new book, How to Cook Polish Barbeque, as an e-book or a paperback. Brian is addressing which core marketing aspect? A. developing a promotional plan B. managing the exchange function of marketing C. making product decisions D. deciding where and how to sell the product E. pricing the product

C. making product decisions

Marketing involves all of the following EXCEPT A. conducting exchanges. B. satisfying customer needs and wants. C. creating value. D. efforts by individuals and organizations. E. production scheduling.

E. production scheduling.

A group of firms that makes and delivers a given set of goods and services is known as a distribution channel.

FALSE: supply chain / marketing channel

C2C

consumer to consumer marketing. (ebay)

After defining the business mission, what should a firm do next to develop a marketing plan? Select one: a. Implement the four Ps. b. Select a target market. c. Develop a positioning strategy. d. Conduct an STP analysis. e. Perform a situation analysis.

e. Perform a situation analysis.

price

everything the buyer gives up--money, time, energy--in exchange for product

ideas

intellectual concepts-- thoughts, opinions, and philosophies

goods

items that can be physically touched

Market-Oriented Era

the customer became the king after war over. manufacturers and retailers thus began to focus on what consumers wanted and needed before they designed, made, or attempted to sell their products and services. firms discovered marketing

Marketing efforts designed to get the product or service to the right customer, when that customer wants it, are called A. supply chain management. B. a transactional orientation. C. wholesaling. D. value cocreation. E. endless chain marketing.

A. supply chain management.

A relational orientation is based on the philosophy that buyers and sellers develop A. a complete understanding of each other's needs. B. a long-term relationship. C. a price-value comparison matrix. D. supply chain synergy. E. a marketing value transaction focus.

B. a long-term relationship.

During the market-oriented era, A. a good product would sell itself. B. the customer was king. C. marketing was more important than production. D. advertising and personal selling were emphasized to make the sale. E. firms focused on value.

B. the customer was king.

B2B

Business to Business marketing.

B2C

Business to consumer marketing.

Marketing channel management is related to which of the four Ps? A. product B. price C. place D. promotion E. production

C. place

During the __________ era, manufacturers and retailers recognized they needed to give their customers greater value than their competitors did. A. production-oriented B. sales-oriented C. market-oriented D. value-based marketing E. retailing-oriented

D. value-based marketing

The fundamental goal of marketers when creating goods, services, or combinations of both, is to A. defeat the competition. B. serve all consumers. C. operate according to government regulations. D. stimulate short-term sales. E. create value.

E. create value.

When referring to exchange, marketers are focusing on A. the location where products and services are traded. B. the price charged, adjusted for currency exchange rates. C. location-based tactics for creating value. D. promotional offers designed to stimulate barter. E. the trading of things of value.

E. the trading of things of value.

Approximately half of U.S. companies now use social media tools for marketing purposes.

FALSE: 3/4

ToF: When a manufacturer sells truck and car parts to Toyota, this is an example of B2C marketing.

FALSE: B2B

ToF: Marketing's fundamental purpose is to create value by developing a variety of offerings that will earn income for the company.

FALSE: Marketing's fundamental purpose is to create value by developing a variety of offerings, including goods, services, and ideas, to satisfy customer needs.

ToF: The text highlights one entrepreneur who was a billionaire by the age of 50. This person is Warren Buffet.

FALSE: Oprah W.

services

any intangible offering that involves a deed, performance, or effort that cannot be physically possessed; intangible customer benefits that are produced by people or machines and cannot be separated from the producer

PRIZM and Tapestry divide and sort small geographic areas into categories using 60 or more demographic and lifestyle characteristics. These market research tools are examples of __________ segmentation. Select one: a. benefit b. geographic c. geodemographic d. psychographic e. loyalty

c. geodemographic

Differences in weather and climate create opportunities for Select one: a. benefit segmentation. b. concentrated targeting. c. geographic segmentation. d. psychographic segmentation. e. demographic segmentation.

c. geographic segmentation.

promotion

communication by a marketer that informs, persuades, and reminds potential buyers about a product or service to influence they opinions and elicit a response

Janine was tired of her winter coat, so she sold it to her friend, Marissa. This is an example of ________ marketing. Select one: a. BBC b. C2B c. B2B d. C2C e. B2C

d. C2C

How do Marketing firms become value driven

sharing info balancing benefits with costs building relationships with customers take advantage of new technologies and connect with customers (social media)

marketing

the activity, set of institutions, and processes for creating, capturing, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large

supply chain

the group of firms that make and deliver a given set of goods and services

When a T-shirt manufacturer states, "We only sell it in black because that way we can buy plenty of black fabric and run our plant efficiently," its statement reflects the views that were popular in which era of the evolution of marketing? A. production-oriented B. sales-oriented C. market-oriented D. value-based marketing E. economics-oriented

A. production-oriented

Julia is considering a career in marketing. She is concerned about the image of marketers as fast-talking, high-pressure people who only care about making a sale. When reading about the core aspects of marketing, Julia is relieved to see that in marketing A. all parties to an exchange should be satisfied. B. promotion is the most important consideration, followed by pricing decisions. C. decisions are made regarding how a product is designed. D. customers are not considered until the product is ready for sale. E. distribution is controlled by customers.

A. all parties to an exchange should be satisfied.

Whenever Valerie has a new massage therapy customer, she invites the person to be on her e-mail distribution list. In the process, in addition to exchanging her massage therapy service for payment, Valerie is gathering A. information. B. promotional capital. C. pricing data. D. value cocreation. E. feedback.

A. information.

54. Retailers accumulate merchandise from producers in large amounts and sell to consumers in smaller amounts. Retailers function as A. market intermediaries. B. monopolists. C. regulators of consumer demand. D. wholesale specialists. E. intermediate promoters.

A. market intermediaries.

Georgia, the outside sales rep for a major building supply company, reads a report stating that building permits are down dramatically in her sales territory. She had noticed that things were slowing down, but now she has data confirming her impression. Based on this information, one important function Georgia should provide is A. pushing her customers to buy products whether they need them or not. B. advising the production and purchasing departments to produce or order smaller quantities of products. C. assisting customers in product recall confirmations. D. avoiding contact with competing firms to maximize value-driven marketing. E. estimating profit per sale to determine whether the firm can survive the slowdown.

B. advising the production and purchasing departments to produce or order smaller quantities of products.

four Ps: the marketing mix

Product (creating) Price (capturing) Place (delivering) Promotion (communicate) the controllable set of activities that a firm uses to respond to the wants of its target markets

ToF: Foursquare is an example of a location-based social media application.

TRUE

ToF: Marketers might wish to sell their products to everyone, but it is not practical to do so.

TRUE

ToF: Value is what you get for what you give.

TRUE

relational orientation

a method of building a relationship with customers based on the philosophy that buyers and sellers should develop a long-term relationship

entrepreneurs

a person who organizes, operates, and assumes the risk of a new business venture

marketing plan

a written document composed of fan analysis of the current marketing situation, opportunities and threats for the firm, marketing objectives and strategy specified in terms of the four Ps, action programs, and projected or pro forma income statements

Many of today's college graduates will make their living providing goods and services to baby boomers, the large group of Americans born in the period after World War II. Baby boomers are a _________________ market segment. Select one: a. demographic b. social c. behavioral d. psychological e. product-based

a. demographic

Leah is the marketing manager for an electronics company. While on vacation in Ecuador, she visited electronics stores in the major malls in Quito, the capital city. Most of her company's products were available, except for smart phones. When she returned to work, she mentioned this observation to her international sales manager. Leah was providing the important marketing function of Select one: a. identifying opportunities to expand. b. alerting the logistics department when to ship products. c. engaging customers, developing long-term relationships. d. synthesizing and interpreting sales, accounting, and customer-profile data. e. advising production on how much product to make.

a. identifying opportunities to expand.

Many home design businesses volunteer to provide their latest products for tours-of-homes fundraisers because they know their new products will benefit from Select one: a. observability. b. relative advantage. c. trialability. d. compatibility. e. complexity.

a. observability.

place

all the activities necessary to get the product to the right customer when that customer wants it

After the previous sales representative in his territory infuriated an important customer, Benjamin visited the customer once a month, never asking for business but hoping to rebuild trust through listening and expressing concern. Finally, after more than two years, the customer gave Benjamin an order. Benjamin was providing the important marketing function of Select one: a. alerting the logistics department when to ship products. b. synthesizing and interpreting sales, accounting, and customer-profile data. c. advising production on how much product to make. d. engaging customers and developing long-term relationships. e. identifying opportunities to expand.

d. engaging customers and developing long-term relationships.

The prevailing marketing strategy of the __________ era was to find customers for inventories that went unsold. A. production-oriented B. sales-oriented C. market-oriented D. value-based marketing E. retailing-oriented

B. sales-oriented

The four Ps make up the marketing mix, which is the __________ set of activities that the firm uses to respond to the wants and needs of its target markets. A. unpredictable B. external C. internal D. controllable E. global

D. controllable

Four Winds Art Gallery recently began offering appraisals of customers' art collections, in addition to continuing to sell paintings. Four Winds is A. expanding from offering just services to also offering goods. B. implementing a market segmentation strategy. C. capturing value through multiple pricing strategies. D. expanding from offering just goods to also offering services. E. increasing customer value through inflated appraisal evaluations.

D. expanding from offering just goods to also offering services.

The importance of supply chain management is often overlooked in the study of marketing because A. marketing has no responsibility for supply chain management. B. supply chain management doesn't add much value for customers. C. companies do not want customers to know anything about the supply chain. D. many of the activities take place behind the scenes. E. supply chain management is already transparent.

D. many of the activities take place behind the scenes.

Every month, Dr. Combahee takes her staff to lunch and asks them to share patients' comments and concerns. Dr. Combahee uses the lunches as an informal marketing research effort intended primarily to Select one: a. help her to understand the needs of her customers. b. decrease the uncertainty associated with decision making. c. provide a link between herself and her profession. d. improve profitability. e. monitor her competitors.

a. help her to understand the needs of her customers.

Adidas Group owns Reebok, Rockport, and TaylorMade brands. Having a variety of brands allows Adidas to Select one: a. obtain a bigger share of the shoe market. b. generate economies of scale in advertising expenditures. c. use geographic segmentation. d. use mass marketing techniques. e. engage in micromarketing for hard-to-fit shoe customers.

a. obtain a bigger share of the shoe market.

ToF: The four Ps include product, promotion, planning, and place.

FALSE: Product, Price, Promotion, Place

value cocreation

customers act as collaborators with a manufacturer or retailer to create the product or service

Yuri is considering a new promotional campaign in which he will compare his products to those of his competitors. Before initiating the promotional campaign, Yuri will likely assess his competitors' strengths, weaknesses, and A. likely reaction to Yuri's promotional activities. B. demographics. C. just-in-time processes. D. satisfaction quotient as perceived by customers. E. ethical values.

A. likely reaction to Yuri's promotional activities.

The idea that a good product will sell itself is associated with the __________ era of marketing. A. production-oriented B. sales-oriented C. market-oriented D. value-based marketing E. retailing-oriented

A. production-oriented

Which of the following defines a value proposition? A. the unique value that a product or service provides to customers B. a special discount offer dropping the price C. an advertisement that talks about value D. a display of the position of products or brands in the consumer's mind E. the one feature that will prompt a customer to buy the product

A. the unique value that a product or service provides to customers

After hurricanes like Katrina, many small building contractors will flock to the damaged area, charging whatever customers will pay for temporary repairs to roofs and other parts of damaged homes. These contractors are engaged in a(n) __________ marketing orientation. A. transactional B. external C. relational D. internal E. value driven

A. transactional

Suppose that you are the vice president of marketing for Target, the large retail store chain. You want to keep your website and in-store services current with technological advances. You would be experimenting with what is most likely the next expected development in mobile technology, which is A. wireless payments from mobile devices. B. location-based social media applications. C. mobile devices completely replacing desktop and laptop computers. D. devices that block smartphone usage in retail stores. E. RFID tags.

A. wireless payments from mobile devices.

micromarketing

AKA one to one marketing an extreme form of segmentation that tailors a product or service to suit an individual customers wants or needs

Jenny, the delivery and sales representative for a beer distributor, is calling on a retailer and sees the shelves are almost empty. An unexpected sporting event held nearby resulted in a huge increase in sales. She calls her company's distribution manager and requests a special delivery for her customer. Jenny is providing the important marketing function of A. advising production on how much product to make. B. alerting the logistics department when to ship products. C. advising the customer about new products and markets. D. identifying opportunities to expand. E. synthesizing and interpreting sales, accounting, and customer-profile data.

B. alerting the logistics department when to ship products.

The pharmaceutical industry often justifies the high prices for new drugs by arguing that it researches as many as one hundred new compounds before it comes up with one __________, an extremely successful product that pays for the costs associated with the other attempts to develop new products. A. standout B. blockbuster C. first mover D. pioneer E. premium product

B. blockbuster

Which of the following is the third step in the marketing planning process? A. define the business mission B. identify opportunities C. evaluate using a matrix D. implement marketing mix and allocate resources E. situation analysis

B. identify opportunities

According to the text, fourteen cable companies agreed to provide low-cost Internet access to impoverished families for all of the following reasons EXCEPT A. calls for greater social responsibility. B. increased income from a larger number of subscribers. C. increasing access to faster broadband capabilities. D. the economic status of consumers. E. pressures from the Federal Communications Commission.

B. increased income from a larger number of subscribers.

Corporate pilot fish are former employees who start a new business based primarily on contacts and contracts with their old company. A corporate pilot fish would probably pursue a __________ targeting strategy. A. macromarketing B. micromarketing C. benefit-based D. differentiated E. undifferentiated

B. micromarketing

Adidas Group owns Reebok, Rockport, and TaylorMade brands. Having a variety of brands allows Adidas to A. engage in micromarketing for hard-to-fit shoe customers. B. obtain a bigger share of the shoe market. C. use mass marketing techniques. D. use geographic segmentation. E. generate economies of scale in advertising expenditures.

B. obtain a bigger share of the shoe market.

For U.S. businesses with strong export capabilities, expansion of U.S. trade agreements with other countries creates A. weaknesses. B. opportunities. C. strengths. D. threats. E. strategic plans.

B. opportunities.

E-books, in addition to being an alternative product form, provide __________ value creation since they can be downloaded via the Internet immediately when and where they are needed. A. product B. place C. promotion D. price E. primary

B. place

If a new product concept gets positive evaluations from potential customers during concept testing, the next step for a firm is A. market testing. B. product development. C. brainstorming. D. reverse engineering. E. launching the product.

B. product development.

The shift of population from the Rust Belt in the North to the Sun Belt in the South and Southwest will likely A. decrease national cultural identity. B. reduce regional cultural differences. C. make it difficult to collect demographic information. D. create a demand for a new generational cohort. E. make it more difficult for companies to differentiate their products.

B. reduce regional cultural differences.

Many restaurants offer daily specials, appetizers, entrees, and desserts not listed on their standard menu. These daily specials primarily provide the new product benefit of A. keeping up in a market where sales come mostly from new products. B. satisfying the changing needs of current and new customers. C. avoiding market saturation from products that have been on the market for a long time. D. creating diversification and reducing risk. E. reduction in cost of ingredients.

B. satisfying the changing needs of current and new customers.

Marketing enriches society by A. focusing solely on maximizing profits. B. sponsoring charitable events. C. recognizing that the firm can do very little by itself, so it should stay focused on its own core competencies. D. facilitating the smooth flow of goods through the supply chain. E. coordinating marketing functions with other functional areas in the company.

B. sponsoring charitable events.

The marketing goal of getting the right quantities to the right locations at the right time relates to A. communicating the value proposition. B. supply chain management. C. service marketing. D. capturing value. E. price and performance management.

B. supply chain management.

Barbara is using a test model of her firm's new inline skates to see whether they work according to the design specifications. Barbara is involved in A. test marketing. B. product launch. C. alpha testing. D. product development. E. concept testing.

C. alpha testing.

Jim wants to position his firm against his competitors. In doing so he should A. never select a competitor in the same neighborhood. B. avoid making the competitor's product look undesirable. C. avoid looking too much like the competitor so that he'd confuse the target segment. D. avoid discussing the strengths of his product so that competitors won't be aware of his product quality. E. avoid discussing the weaknesses of his competitors so they won't retaliate.

C. avoid looking too much like the competitor so that he'd confuse the target segment.

Marketers involved in value-oriented marketing are constantly balancing A. promotional effectiveness with ethical advertising standards. B. the problem of price maximization with cost efficiency. C. customer benefits with costs of their offerings. D. the desire to achieve with the need for a stable source of supply. E. the goal of efficiency with the price charged by competitors.

C. customer benefits with costs of their offerings.

The process by which the use of a new product or service spreads throughout a market group is referred to as A. new product introduction. B. lead user dispersion. C. diffusion of innovation. D. the product life cycle. E. product development diffusion.

C. diffusion of innovation.

Greenbelt Construction has been a successful small home-building firm for years. The owner pays subcontractors slightly more than the usual rate for different tasks, reducing the company's gross margin. Greenbelt rarely changes subcontractors, has relatively few complaints from home buyers, and is able to get quick responses from subcontractors when buyers do have problems. Greenbelt is engaged in A. a traditional transactional orientation. B. C2C value-driven marketing. C. effective supply chain management. D. value cocreation. E. a virtual monopoly.

C. effective supply chain management.

Henriette offers financial counseling and management on a fee-only basis. She has found that different customers are willing to pay different rates for her services. This shows that her pricing decisions should depend primarily on A. choosing an average price that she will charge all her clients. B. changes in technology allowing consumers to manage their own affairs. C. how different customers perceive the value of her services. D. changes in the economy. E. how much her competitors charge for similar services.

C. how different customers perceive the value of her services.

One of the benefits of a differentiated targeting strategy is that it allows the firm to diversify its business and A. decrease advertising spending. B. focus on a single market segment. C. lower overall risk. D. use undifferentiated strategies in micro markets. E. more widely market basic commodities.

C. lower overall risk.

Alex has found that both commercial and residential real estate buyers respond positively to his marketing communication message. Alex has identified __________ that respond similarly to his marketing efforts. A. mass customization consumers B. geographic segments C. market segments D. self-concept customers E. geodemographic segments

C. market segments

A(n) ___________ is a group of products that consumers may use together or perceive as similar in some way. A. SBU B. STP C. product line D. market segment E. promotional service

C. product line

Gloria is opening an upscale women's clothing store in a growing suburban residential area. Gloria knows her target market is upper-income women living within twenty miles. She can't afford to purchase a PRIZM or Tapestry analysis, so she will most likely use __________ as a basis for targeting her market. A. voter registration lists B. the city phone book C. real estate values by subdivision D. public school enrollment data E. new construction data

C. real estate values by subdivision

When testing new products, most firms consider the question of whether testing products on animals A. should always be done in the animal's natural environment. B. should be done outside of the United States to avoid consumer backlash. C. should be done when the new product does not contribute to the health and well-being of human users. D. should be done only by companies large enough to be ethically responsible. E. should be done with animal activists present.

C. should be done when the new product does not contribute to the health and well-being of human users.

A marketing strategy identifies three things: ________, a related marketing mix, and the bases on which the firm plans to build a sustainable competitive advantage. A. customer value B. a mission statement C. marketing metrics D. a firm's target markets E. a product plan

D. a firm's target markets

By adding new product lines beyond its core business of computer software, like the Zune MP3 player and Xbox 360 game system, Microsoft primarily benefits by A. keeping up in a market where sales come mostly from new products. B. satisfying the changing needs of the technological research staff. C. avoiding market saturation from products that have just been introduced to the market. D. creating diversification and reducing risk. E. spreading out production costs.

D. creating diversification and reducing risk.

Adidas Group owns Reebok, Rockport, and TaylorMade brands. Adidas uses the different brands to pursue a(n) __________ strategy. A. concentrated targeting B. micromarketing C. benefit targeting D. differentiated targeting E. undifferentiated targeting

D. differentiated targeting

The value of the euro has changed significantly since 2002 with the problems experienced by several European economies. This change in value is called A. interest destabilization. B. inflation. C. recession. D. foreign currency fluctuations. E. global financial impact.

D. foreign currency fluctuations.

When Toyota introduced hybrid cars, there were waiting lists to buy them. Then Honda and a few other manufacturers entered the market, shifting the product life cycle for hybrid cars into the __________ stage of the product life cycle. A. introduction B. leveling C. maturity D. growth E. decline

D. growth

Innovators are a critical group of new product adopters because they A. are the major source of innovation. B. act as reverse engineering consultants. C. help with test marketing. D. help the product gain market acceptance. E. extend the product life cycle.

D. help the product gain market acceptance.

The goal of customer relationship management is to A. manage every customer relationship differently. B. manage every customer relationship to maximum short-term profitability. C. eliminate customers who are profitable, but not highly profitable. D. identify and build loyalty among a firm's customers. E. generate relationships with all of a firm's customers.

D. identify and build loyalty among a firm's customers.

Carla has been directed by her regional marketing manager to cut prices on seasonal items, place an ad in the local paper, and tell distributors to reduce deliveries for the next month. Which step of the strategic marketing planning process is Carla engaged in? A. evaluate performance B. define the business mission C. situation analysis D. implement marketing mix and resources E. identify and evaluate opportunities

D. implement marketing mix and resources

College students can be a less __________ market segment because students' media habits are quite diverse. A. substantial B. perceptive C. identifiable D. reachable E. quantifiable

D. reachable

97. Generation X is known for which of the following characteristics? A. the most globally connected generation B. the biggest cohort since the original post World War II boom C. consider marriage secondary, and not obviously necessary, to being good parents themselves D. the first generation of latchkey children E. have an obsession with maintaining their youth

D. the first generation of latchkey children

After assessing the market growth potential for his company's baby products in Mexico, Harmon wanted to evaluate market competitiveness. To do this, Harmon would consider A. mass marketing distribution potential and logistical support. B. the current size of the market and the expected growth rate. C. ease of pricing control and number of promotional outlets. D. the number of competitors, entry barriers, and product substitutes. E. profitability and customer buying behavior.

D. the number of competitors, entry barriers, and product substitutes.

The growth phase of the product life cycle is always dynamic. Which of the following does NOT occur in this phase? A. Profits increase as sales increase. B. Profits increase as economies of scale are attained. C. Some new competitors may enter the market with similar products. D. Some competitors will exit in an industry shakeout. E. Price competition with protracted price wars erodes profits.

E. Price competition with protracted price wars erodes profits. ^^^ more likely in maturity stage

If McDonald's wanted to change its marketing strategy in response to the social trends outlined in the text, it might consider all of the following ideas EXCEPT A. offering an expanded menu of healthy options. B. speeding up drive-through service. C. using recycled paper in its food packaging. D. expanding its low-cost menu options. E. creating an advertising campaign to target elementary school children.

E. creating an advertising campaign to target elementary school children.

100. During the ___________ stage of the product life cycle, firms either position themselves for a niche market of loyal consumers or they exit the market. A. introduction B. leveling C. maturity D. growth E. decline

E. decline

If the __________ diffusion of innovation group is relatively small, the number of people who ultimately adopt the innovation likely will also be small. A. innovator B. laggard C. late majority D. early majority E. early adopter

E. early adopter

100. Gerald's Tire Store sets itself apart from competitors by the extra attention it pays to providing fast, courteous service in a clean, professional-looking environment. Gerald's has used this strategy for over 40 years, expanding to 15 outlets. Gerald's Tire Store has created a ___________________ to create and deliver value and to develop a sustainable competitive advantage. A. segmentation strategy B. set of metrics C. market development strategy D. diversification strategy E. macro, or overarching, strategy

E. macro, or overarching, strategy

The __________ is a specific price at which manufacturers encourage retailers to sell a product. A. key price point B. slotting fee C. perceived value D. retail margin E. manufacturer's suggested retail price

E. manufacturer's suggested retail price

A former advertising campaign for GEICO Insurance used the slogan, "So easy, even a caveman could do it" to emphasize the ease of buying insurance on GEICO's website. This campaign was part of GEICO's A. mission statement. B. market segmentation plan. C. product strategy. D. customer excellence strategy. E. positioning strategy.

E. positioning strategy.

Between concept testing and market testing, a firm should engage in which stage of the product development process? A. securing financial backing B. marketing research C. brainstorming D. determining potential ROI E. product development

E. product development

For many years, because of the size of the U.S. economy, domestic companies ignored international markets, preferring instead to develop new product offerings for existing customers. These companies were pursuing a ________________ strategy. A. market penetration B. market development C. segment development D. diversification E. product development

E. product development

Marketers who design and offer new products and services to their existing customers are pursuing a ____________________ growth strategy. A. product proliferation B. market development C. market penetration D. diversification E. product development

E. product development

A major limitation in the use of internal R&D departments for new idea generation is that A. few scientists have ideas. B. they tend to be dissolved once sufficient ideas have been generated. C. they tend to create too many blockbusters. D. few scientists have practical ideas. E. the costs tend to be quite high.

E. the costs tend to be quite high.

In the broadest terms, the marketplace refers to A. wholesale and retail environments. B. brick-and-mortar stores and the Internet. C. the four Ps. D. channels that are accessible to a given customer. E. the world of trade.

E. the world of trade.

ToF: The implement marketing mix step of the strategic marketing planning process is part of the control phase.

FALSE It is part of the implementation phase, along with STP analysis.

ToF: Firms decide how to allocate resources to their various products and services during the STP step of the marketing planning process.

FALSE Resource allocation takes place during Step 4, in which the marketing mix is implemented and resources are allocated.

ToF: Product penetration is one of the four major growth strategies.

FALSE The four major growth strategies are market penetration, product development, market development, and diversification.

ToF: New product development adds value to a firm's products and services through innovation.

TRUE

customer relationship management (CRM)

a business philosophy and set of strategies, programs, and systems that focus on identifying and building loyalty among the firm's most valued customers

Production-Oriented Era

belief that a good product would sell itself

During the __________ stage of the product life cycle, sales peak and profits begin to decline as competition becomes intense. Select one: a. decline b. introduction c. maturity d. leveling e. growth

c. maturity

Both major political parties have developed proprietary databases that contain vast information about voters, broken down by demographic and geographic information. This kind of information is Select one: a. syndicated data. b. qualitative research. c. secondary data. d. neuromarketing. e. primary data.

c. secondary data.

Though Asian Americans comprise only 6 percent of the U.S. population, they represent Select one: a. a uniform group of consumers with a common language and cultural background. b. all of these c. the fastest growing minority population. d. a large proportion of the minorities in the Midwest. e. the easiest minority group to access.

c. the fastest growing minority population.

When conducting a survey about choosing vacation destinations, Hillary will need to __________ to get reluctant respondents to provide honest information. Select one: a. choose only highly verbal consumers b. create an efficient data warehouse c. ask unstructured questions d. use only focus group interviews e. assure consumers that their individual responses will be kept confidential

e. assure consumers that their individual responses will be kept confidential

When an accounting firm provides an online training module showcasing real-life decision lapses and their negative effect on the company, it is trying to encourage what type of behavior from its employees? Select one: a. strategic b. formal c. casual d. secretive e. ethical

e. ethical

Value creation through place decisions for a consumer product involves Select one: a. focusing exclusively on Internet sales to reduce supply chain costs. b. designing creative displays to capture consumers' attention. c. pricing products differently at different stores. d. putting the product in the front of the store. e. making sure the product is available in the stores where customers will want to find it, and that it is always in stock so they can buy it when they want to.

e. making sure the product is available in the stores where customers will want to find it, and that it is always in stock so they can buy it when they want to.

Determining value proposition

firm benefits, customer needs, and competitor benefits

value-based marketing era

firms have transended a production or selling orientation and attempt to discover and satisfy their customers needs and wants

value

reflects the relationship of benefits to costs, or what the consumer gets for what he or she gives

As owner of a retail franchise food store, Mary Gray purchases supplies based on specials advertised nationally throughout the franchise system. One Monday, she was surprised to find customers asking for specials she hadn't been informed of in advance. The franchise company failed to live up to the value-driven activity of A. sharing information across the organization. B. balancing customers' benefits and costs. C. evaluating strategic competitive partnerships. D. building relationships with customers. E. keeping prices below those charged by competitors.

sharing information across the organization.

geographic segmentation

the grouping of consumers on the basis of where they live (ex. North America or mountain)

regional culture

the influence of the area within a country in which people live (ex. soda vs pop)

late majority

the last group of buyers to enter a new product market; when they do, the product has achieved its full market potential.

market saturation

the longer the product exists in the marketplace, the more likely that the market will become saturated.

control phase

the part of the strategic marketing planning process when managers evaluate the performance of the marketing strategy and take any necessary corrective actions

planning phase

the part of the strategic marketing planning process when marketing executives, in conjunction with other top managers, (1) define the mission or vision of the business and (2) evaluate the situation by assessing how various players, both in and outside the organization, affect the firms potential for success

implementation phase

the part of the strategic marketing planning process when marketing managers (1) identify and evaluate different opportunities by engaging in segmentation, targeting, and positioning (STP) and (2) implement the marketing mix using the four ps

ideal points

the position at which a particular market segments ideal product would lie on a perceptual map

manufacturers suggested retail price (MSRP)

the price that manufacturers suggest retailers use to sell their merchandise

Innovation

the process by which ideas are transformed into new products and services that will help firms grow

diffusion of innovation

the process by which the use of an innovation, whether a product or a service, spreads throughout a market group over time and over various categories of adopters

concept testing

the process in which a concept statement that describes a product or a service is presented to potential buyers or users to obtain their reactions

market segmentation

the process of dividing the market into groups of customers with different needs, wants, or characteristics-who therefore might appreciate products or services geared especially for them

target marketing/targeting

the process of evaluating the attractiveness of various segments and then deciding which to pursue as a market

STP

the process of segmentation, targeting, and positioning that firms use to identify and evaluate opportunities for increasing sales and profits

early adopters

the second group of consumers in the diffusion of innovation model, after innovators, to use a product or service innovation; generally dont like to take as much risk as innovators but instead wait and purchase the product after careful review

marketing channel

the set of institutions that transfer the ownership of and move goods from the point of production to the point of consumption; consists of all the institutions and marketing activities in the marketing process

product development

development of prototypes and the product

idea generation

development of viable new product ideas

perceptual map

displays, in 2 or more dimensions, the position of products or brands in the consumers mind

behavioral segmentation

divides customers into groups based on how they use the product or service. Occasion and Loyalty

geodemographic segmentation

grouping customers on the basis of a combo of geographic, demographic, and lifestyle characteristics

product lines

groups of associated items, such as those that consumers use together or think of as part of a group of similar products (EX: GoodYears product lines: 1 line; car van suv. 2 line; racing tires

beta testing

having potential consumers examine a product prototype in a real-use setting to determine its functionality, performance, potential problems, and other issues specific to its use

The product development process

idea generation, concept testing, product development, market testing, product launch, evaluation of results

Relative Advantage

if a product or service is perceived to be better than substitutes, the diffusion will be relatively quick

demographics

info about the characteristics of human populations and segments, especially those used to identify consumer markets such as by age, gender, income, and education

lead users

innovative product users who modify existing products according to their own ideas to suit their specific needs

Time of adoption of the innovation

innovators, early adopters, early majority, late majority, laggards

Segment Profitablility Equation

seg prof= seg size x seg adoption percentage x purchase behavior x profit margin percentage) -Fixed costs

ToF: A mission statement describes the specific actions a firm will take to achieve its goals.

False

After conducting STP analysis for her custom auto parts store and developing strategies for each of the four Ps, Monique now has to make _____________ decisions. A. competitive response B. resource allocation C. product line D. market growth E. mission statement

B. resource allocation

Marketers know that, compared to high school graduates who are working full time, college students A. will earn less over their working lifetime. B. spend their disposable income differently. C. are less likely to buy textbooks. D. have almost identical spending patterns. E. are more likely to drink beer and less likely to drink wine.

B. spend their disposable income differently.

The first step in the STP process is to A. identify the segmentation methods to be used. B. produce a list of strengths and weaknesses of the firm's past marketing strategies. C. clearly articulate the firm's vision or marketing strategy objectives. D. select target markets. E. develop a marketing mix, so that an appropriate segment can later be identified.

. clearly articulate the firm's vision or marketing strategy objectives.

Which of the following is NOT a social trend listed in the text? A. thrift B. health and wellness C. greener consumers D. privacy concerns E. technological advances

. technological advances

3 new product interrelated factors

1. its satisfaction of technical requirements, such as performance 2.customer acceptance 3. its satisfaction of the firms financial requirements such as sales and profits

Fernando was thrilled to find out that his company had just decided to invest a great deal of money in the product he was managing. He knows that even with its recent high rate of growth and the fact that it dominates its market, he would need more money to establish it firmly. Using the BCG portfolio analysis, his product would be classified as a(n) A. star. B. cash cow. C. question mark. D. dog. E. anchor.

A. star.

73. Greta is concerned that one of the potential market segments she has identified for her dog grooming service is too small and has too little income to have sufficient buying power. Greta is concerned with whether the segment is A. substantial. B. responsive. C. profitable. D. reachable. E. identifiable.

A. substantial.

After identifying various market segments that her company could pursue, Lisa evaluated each segment's attractiveness based on size, income, and accessibility. Lisa was involved in A. target marketing. B. situation analysis. C. diversification. D. positioning. E. market penetration estimation.

A. target marketing.

Whenever the president of the local public university promotes the institution, he emphasizes the university's price (much lower than neighboring private colleges) and high quality. He is positioning the institution based primarily on A. the value proposition. B. product attributes. C. symbols. D. competitive comparisons. E. profitability.

A. the value proposition.

Those who graduate from college tend to earn an annual salary that averages about _______ more than a high school graduate averages. A. $10,000 B. $21,500 C. $49,000 D. $55,500 E. $82,000

B. $21,500

Some universities offer online degree programs, competing with traditional colleges based on the convenience of taking online courses. These online programs are pursuing which macro strategy? A. Customer excellence B. Locational excellence C. Operational excellence D. Product excellence E. Purchase excellence

B. Locational excellence

Yesenia, the new university course scheduling manager, is struggling with adjustments to the fall schedule. She is trying to determine how to offer the classes students need at the times when students need them. Yesenia is struggling with the marketing function of A. communicating the value proposition. B. supply chain management. C. creating value. D. capturing value. E. value co-creation.

B. supply chain management.

Some discount stores put products in large bins and let consumers hunt and find bargains. The price these consumers pay includes A. only the actual price they pay at the register. B. the value of their time and energy. C. the excitement they experience in finding an item they desire. D. the savings to the store of not having to display the products neatly on shelves. E. the time the product was full price and didn't sell.

B. the value of their time and energy.

LeBron James, Alex Rodriguez, and other athletes are paid huge sums of money by companies for celebrity endorsements. If endorsements by these athletes create a clear understanding among consumers of the companies' products in comparison to competing products, they can help with the firm's ________________ strategy. A. product excellence B. targeting C. positioning D. segmentation E. customer excellence

C. positioning

magine that you are in a convenience store choosing your favorite comfort food instead of being in a classroom taking this test. You might notice the packaging, colors, labels, even the fonts used on labels. All of these efforts are part of the marketer's A. value-based promotions. B. market segmentation. C. positioning strategy. D. customer excellence strategy. E. target market.

C. positioning strategy.

Which statement about the changing ethnicity in the United States is TRUE? A. Minorities now represent almost half of the population in the United States. B. In spite of increases in the Hispanic population, Hispanic buying power is expected to maintain its current level. C. Hispanics differ vastly from other groups in America in terms of consumer behavior. D. African American U.S. households are more affluent than previous studies suggested. E. Asian Americans are the slowest growing minority population.

D. African American U.S. households are more affluent than previous studies suggested.

Although marketers have found that psychographics are often more useful for predicting consumer behavior than demographics, psychographic segmentation A. is available only in limited geographic areas. B. is rarely used and unproven. C. offers only one-to-one marketing potential. D. is a more expensive method for identifying potential customers. E. is still an unproven area.

D. is a more expensive method for identifying potential customers.

When considering the use of a radio commercial in England that was designed for U.S. markets, a marketer would likely need to consider which of the following aspects of culture that might be different between the two countries? A. dress B. symbols C. demographics D. language E. social trends

D. language

ToF: Although innovation strategies may not work in the long run, overriding short-term reasons compel firms to introduce new products and services.

False

mission statement

a broad description of a firms objectives and the scope of alternatives

strategic business unit (SBU)

a division of the firm itself that can be managed and operated somewhat independently from other divisions and may have a different mission or objectives (EX: Good Years SBUs: geography: N America, Europe, and Africa)

marketing strategy

a firms target market, marketing mix, and method of obtaining a sustainable competitive advantage

early majority

a group of consumers in the diffusion of innovation model that represnts approx 34% of the population; members dont like to take much risk and therefore tend to wait until bugs are workout out of a particlaur product or service. few new products and services can be profitable until this large group buys them

market segment

a group of consumers who respond similarly to a firms marketing efforts

sample

a group of customers who represent the customers of interest in a research stufy

market development strategy

a growth strategy that employs the existing marketing offering to reach new market segments, whether domestic or international (ex. MTV expands to other countries)

product development strategy

a growth strategy that offers a new product or service to a firms current target market (ex. New shows)

diversification strategy

a growth strategy whereby a firm introduces a new product or service to a market segment that it does not currently serve

unrelated diversification

a growth strategy whereby a new business lacks any common elements with the present business (ex: Nike ventured into child care business)

related diversification

a growth strategy whereby the current target market and/or marketing mix shares something in common with the new opportunity (ex: MTV introduces shows that focus on postives instead of negatives but appeal to same viewers)

concentrated marketing strategy

a marketing strategy of selecting a single, primary target market and focusing all energies on providing a product to fit that markets needs

relative market share

a measure of the products strength in a particular market, defined as the sales of the focal product divided by the sales achieved by the largest firm in the industry

metric

a measuring system that quantifies a trend, dynamic, or characteristics

location

a method of achieving excellence by having a strong physical location and or internet presence (ex. Starbucks)

Values and Lifestyles Survey, VALS

a psychographic tool developed by SRI consulting business intelligence; classifies consumers into 8 segments: innovators, thinkers, believers, achievers, strivers, experiencers, makers, or survivors

Firms that use the same brand name for new products can spend relatively less on marketing costs for the new product because Select one: a. people already know what the brand means. b. brand equity can only be obtained by means of product line depth. c. brands protect corporate copyrights. d. well-known brands are less likely to introduce brand extensions. e. consumer loyalty can be bought for less now compared to the past.

a. people already know what the brand means.

Firms spend millions of dollars annually to build brand equity, that recognizing brand equity contributes to Select one: a. profitability. b. perceived brand personality. c. brand liability. d. corporate stakeholder relations. e. product mix breadth.

a. profitability.

One of the reasons marketers use loyalty segmentation is Select one: a. the high cost of finding new customers. b. rapid population increases. c. accounting difficulties associated with identifying new customers. d. government tax incentives. e. the failure of micromarketing as a workable strategy.

a. the high cost of finding new customers.

macro environmental factors

aspects of the external environment that affect a companys business, Culture Demographics Social issues Technological advances Economic Political environment

If many consumers in the marketplace are familiar with a brand and what it stands for and have an opinion about the brand, the brand has considerable Select one: a. co-branding. b. awareness. c. equity. d. integration. e. extension.

b. awareness.

Which of the following actions, if it actually happened, would be the most likely to support and enhance an operational excellence macro strategy? Select one: a. McDonald's, lowering prices on its coffee drinks. b. 3M Corporation, implementing new software to improve communication with its suppliers. c. adidas, inviting customer suggestions to guide the design of the next generation of Air Jordan shoes. d. Nike, opening hundreds of new company stores in high-traffic shopping areas. e. Singapore Airlines, installing more comfortable seats in the economy-class cabins of its airplanes.

b. 3M Corporation, implementing new software to improve communication with its suppliers.

Marketers selling milk, bread, and other consumer staples know most customers do not spend much time searching or comparing alternatives. For most consumers, these are _____________ goods. Select one: a. specialty b. convenience c. impulse d. shopping e. ritual

b. convenience

Companies that develop customized business software often work closely with their users when installing their products. This close contact often creates new product ideas through Select one: a. reverse engineering. b. customer input. c. licensing technology. d. clinical trials. e. R&D consortia.

b. customer input.

Golden Years Vitamin Corporation targets consumers living in Florida who are over age 65. Golden Years is using __________ segmentation. Select one: a. self-actualization b. geodemographic c. psychographic d. loyalty e. benefit

b. geodemographic

In New England, foot-long sandwiches are called grinders, while in many other parts of the country they are called subs. This is an example of the impact of Select one: a. generational factors. b. regional culture. c. social trends. d. regulatory factors. e. country culture.

b. regional culture.

When Meg planned her trip to Australia, she spent months evaluating packages, airfares, and hotel accommodations. Meg's trip is an example of aNo ________ product. Select one: a. unsought b. shopping c. specialty d. sought e. convenience

b. shopping

What type of event exposes retailers to large numbers of new products in a concentrated location? Select one: a. hosted shows b. trade shows c. trade promotions d. browser shows e. premarket demonstrations

b. trade shows

Political consultants have been using market research for decades to help their candidates understand Select one: a. how large their campaign signs should be. b. who makes up the voting public and how to reach them. c. what ethical lapses they can get away with. d. which consumers spend the most money. e. how to buy the votes they need.

b. who makes up the voting public and how to reach them.

occasion segmentation

based on when a product or service is purchased or consumed (EX: Mens Warehouse)

concepts

brief written descriptions of a product or service; its technology, working principles, and forms; and what customer needs it would satisfy

immediate environment

competition, corporate partners, and company capabilities

cookies

computer program, installed on hard drives, that provides identifying information (Amazon.com)

premarket test

conducted before a product or service is brought to market to determine how many customers will try and then continue to use it

Which of the following is TRUE regarding modern gender roles? Select one: a. Gender roles are unimportant to marketers. b. Modern standards require firms to produce gender neutral advertising for every product. c. Gender boundaries should never be crossed in marketing efforts. d. Gender roles have been blurred in the past several years. e. Gender roles are a constant cultural norm.

d. Gender roles have been blurred in the past several years.

Select the statement that best describes the key traits of Generation Y. Select one: a. This generation focuses on health care and wellness services. b. This generation mostly uses the Internet for the purposes of checking e-mail, the news, and the weather. c. This generation—including its oldest members—has had access to the Internet for their entire lives. d. This generation puts a strong emphasis on work/life balance, and some are technologically savvy. e. This generation was the first generation of latchkey children.

d. This generation puts a strong emphasis on work/life balance, and some are technologically savvy.

For new product marketers, early adopters are important because they tend to be Select one: a. alpha testing enthusiasts. b. few in number. c. the first to adopt a new product. d. opinion leaders. e. fond of prototypes.

d. opinion leaders.

Joe is reviewing secondary data his company collected about seasonal variation in consumer spending because he is thinking about developing a new product line. The advantages of using these data are that Select one: a. they have been collected for just the purpose Joe is using it for. b. they are historical data that can be used to accurately predict future trends. c. they are new and can be used to project overall demand. d. they can be quickly accessed at a relatively low cost. e. their high cost can be justified by the results.

d. they can be quickly accessed at a relatively low cost.

Marketers should not assume that they can target all Asian consumers in the United States with one strategy because Select one: a. one strategy is likely to be more expensive than multiple strategies. b. Asians do not respond to marketing efforts. c. each major city tends to have only one group of Asians in large numbers. d. they speak different languages and come from different cultures. e. there are not enough Asians in the United States to effectively target.

d. they speak different languages and come from different cultures.

few new products can be profitable until ________ buys them

early majority

market penetration strategy

employs the existing marketing mix and focuses the firms efforts on existing customers (ex. MTV uses video games to engage viewers)

country culture

entails easy to spot visible nuances that are particular to a country, such as dress, symbols, ceremonies, language, colors, and food preferences, and more subtle aspects, which are trickier to identify

greenwashing

exploiting a consumer by disingenuously marketing products or services as environmentally friendly, with the goal of sales and public approval

product launch

full-scale commercialization of the product

Generation Y

generational cohorrt of people born btwn 1977 and 1995; biggest cohort since the original post war babyboom AKA millenials

baby boomers

generational cohort born after ww2 btwn 1946 and 1964

Generation X

generational cohort of people born between 1965-1976

segment attractiveness is based on

indentifiable, substantial, reachable, responsive, profitable

test marketing

introduces a new product to a limited geographical areas (usually a few cities) prior to a national launch

operational excellence

involves a firms focus on efficient operations and excellent supply chain management. (ex.Netflix)

product excellence

involves a focus on achieving high quality products; effective branding and positioning is key (ex. Coke, Apple, Disney, Google)

customer excellence

involves a focus on retaining loyal customers and excellent customer service (ex. Nike, Starbucks)

green marketing

involves a strategic effort by firms to supply customers with enviornmentally friendly merchandise

reverse engineering

involves taking apart a competitor's product, analyzing it, and creating an improved product that does not infringe on the competitor's patents, if any exist

market positioning

involves the process of defining the marketing mix variables so that target customers have a clear, distinctive, desirable understanding of what the product does or represents in comparison with competing products

Cash Cows

lower left. low growth markets but are high market share products

dogs

lower right. low growth market and low market shares.

trade show

major events attended by buyers who choose to be exposed to products and services offered by potential suppliers in an industry

Sales-Oriented Era

manufacturers produced more than consumers wanted to buy (bc Great Depression) so they depended heavily on personal selling and advertising

data

raw numbers or facts

value

reflects the relationship of benefits to cost, or what the consumer gets for what he or she gives

situation analysis

second step in marketing plan; uses a SWOT analysis that assesses both the internal environment with regard to its Strengths & weaknesses and the external environment in terms of its opportunities and threats

culture

the set of values, guiding beliefts, understandings, and ways of doing things shared by members of a society; exists on two levels: visible artifacts (behavior, dress, symbols, physical settings, ceremonies) and underlying values (thought processes, beliefs, and assumptions

exchange

the trade of things of value between the buyer and the seller so that each is better off as a result

value proposition

the unique value that a product or service provides to its customers and how it is better than and different from those competitors

lifestyles

the way a person lives his r her life to achieve goals

STP Steps

1. strategy or objectives 2. segmentation methods 3. evaluate segment attracriveness 4. select target market 5. identify and develop positioning strategy

The metrics used to evaluate a firm vary depending on ....

1. the level of the organization at which the decision is made 2. the resources the manager controls

From a marketing perspective, what separates __________ from the generation before them is that they are individualistic, value leisure time as a high priority, and are trying to maintain their youth. A. Baby Boomers B. Generation W C. Generation X D. Generation Y E. Generation Z

A. Baby Boomers

Which of the following is NOT a characteristic of products in the maturity stage of the product life cycle? A. Laggards are a major focus of marketing efforts. B. Price competition is intense. C. Marketing costs increase as firms defend their market share. D. The market may become saturated because nearly all potential customers have adopted the product. E. To increase the customer base, firms consider entry into new markets and new market segments.

A. Laggards are a major focus of marketing efforts.

During the __________ stage of the product life cycle, sales are low and profits are small or negative. A. introduction B. leveling C. maturity D. growth E. decline

A. introduction

Computer game companies constantly monitor computer game-related blogs keeping track of the latest hot products, because they know that their customers crave the latest and greatest games. They use this information to create new products that primarily provide the benefit of A. keeping up in a market where sales come mostly from new products. B. satisfying the changing needs of former customers. C. avoiding market penetration from products that have been on the market for a long time. D. creating diversification and reducing risk. E. taking advantage of a long product cycle.

A. keeping up in a market where sales come mostly from new products.

When Talbots, an upscale women's clothing store, tries to portray an image of "traditional, conservative, and with good taste," it is appealing to its target market's A. lifestyle. B. geodemographics. C. demographics. D. loyalty. E. PRIZM segment.

A. lifestyle.

For many years, Southwest Airlines distinguished itself as the low-cost airline. Now, many other low-cost competitors have entered the market. Similarly, Southwest was one of the first airlines to offer online ticketing. Now, all airlines have online ticketing. These examples suggest that A. no single strategy is likely to be sufficient to build a sustainable competitive advantage. B. situation analysis is a continuous process. C. customers rarely remain loyal to companies. D. product excellence is the only true source of a sustainable competitive advantage. E. innovation is pointless because competitors will develop copycat offerings.

A. no single strategy is likely to be sufficient to build a sustainable competitive advantage.

Coca-Cola sells two zero-calorie versions of Coke: Diet Coke and Coke Zero. It has chosen to attempt to appeal to men with Coke Zero. In addition to launching an ad campaign featuring men enjoying Coke Zero, Coca-Cola also designed a masculine looking can for Coke Zero, with bold red lettering on a black background. This specially designed can is an example of A. positioning. B. targeting. C. segmentation. D. a market segment. E. market penetration.

A. positioning.

Lorraine belongs to a national consumer panel created by a market research company. She regularly receives samples of new products from a variety of firms and fills out questionnaires about the products. The national consumer panel Lorraine is part of is engaged in A. premarket testing. B. product launch. C. test marketing. D. product development. E. concept testing.

A. premarket testing.

Henry Ford's statement, "Customers can have any color they want so long as it's black," typified the __________ era of marketing. A. production-oriented B. sales-oriented C. market-oriented D. value-based marketing E. retailing-oriented

A. production-oriented

One reason auto companies spend millions on racing cars is that they offer the opportunity to test new designs and technology under extreme conditions. Car racing provides an opportunity for A. pretesting. B. beta testing. C. test marketing. D. alpha testing. E. concept testing.

B. beta testing.

Which of the following factors, listed in a situation analysis for a major U.S. auto manufacturer, is the best example of a threat? A. The factory that manufactures a new, popular car cannot build enough vehicles to meet the demand, while other factories have excess capacity. B. Recent consumer studies have indicated that Chinese consumers prefer American cars. C. A New York law firm has filed a $10 million class action suit against the company on behalf of car owners whose gas tanks exploded. D. Due to outdated engine technology, the company's cars get lower gas mileage than those of major competitors. E. The company has lower manufacturing costs than its key competitors, allowing it to sell its cars at low prices.

C. A New York law firm has filed a $10 million class action suit against the company on behalf of car owners whose gas tanks exploded.

he 1936 ________ specifically outlawed price discrimination toward wholesalers, retailers, or other producers and required sellers to make ancillary services or allowances available to all buyers on proportionately equal terms. A. Sherman Antitrust Act B. Clayton Act C. Robison-Patman Act D. Financial Reform Law E. Do Not Spam Law

C. Robison-Patman Act

One of the goals of value-based marketing is A. to provide the greatest value for the least profit. B. to sell products for the highest possible price. C. to offer greater value than competitors offer. D. to determine the value of the brand. E. to sell to all consumers, regardless of their needs.

C. to offer greater value than competitors offer.

Which ethnic group in the U.S. tends to earn more, have more schooling, and be more likely to be professionally employed or own a business? A. Northern European B. Middle Eastern C. Hispanic D. Asian E. African American

D. Asian

In the early 1990s, the inflation rate in Mexico was twice the rate in the United States, but the Mexican monetary authorities kept the peso/dollar exchange rate almost constant. For Mexican consumers A. incomes rose dramatically. B. interest rates fell to compensate for increased inflation. C. Mexican products became less expensive while U.S.-made products became comparatively more expensive. D. Mexican products became more expensive while U.S.-made products became comparatively less expensive. E. U.S.-made products became less attractive to purchase.

D. Mexican products became more expensive while U.S.-made products became comparatively less expensive.

Paula is trying to determine whether the segments she is considering for her day care center will be profitable. Which of the following will NOT specifically help her in this analysis? A. The number of children needing day care in the immediate area. B. The fixed costs of operating the center. C. The percentage of parents in the area who can both afford to send their child or children to day care and who are willing to do so. D. The average number of school-age children in families sending a child to the day care center. E. The price she would charge minus the variable cost of providing service to each child.

D. The average number of school-age children in families sending a child to the day care center.

Which of these is NOT one of the main components of a value proposition? A. The target market. B. The name of the product or brand being offered. C. The product/service category or concept being offered. D. The price of the product or service being offered. E. The unique point of difference or benefits offered.

D. The price of the product or service being offered.

The poorest 10 percent of the U.S. population earned less than _______ per week in 2010. A. $2500 B. $1801 C. $1265 D. $920 E. $374

E. $374

The centerpiece of the marketing environment analysis framework is A. green marketing. B. corporate partners. C. culture. D. competitive intelligence. E. consumers.

E. consumers.

Karen has identified four potential market segments for her Rent-A-Chef home meal catering service. She will now evaluate whether each segment is attractive relative to all of the following EXCEPT A. substantial. B. responsive. C. profitable. D. reachable. E. realistic.

E. realistic.

Five steps of marketing plan

Planning Phase: Step 1: Business mission and objectives Step 2: Situation analysis (SWOT) Implementation Phase: Step 3: identify opportunities Step 4: Implementation marketing mix Control Phase: Step 5: evaluate performance using marketing metrics

differentiated targeting strategy

a strategy through which a firm targets several market segments with a different offering for each (EX: 20 niche magazines)

Which of the following factors, listed in a situation analysis for a major U.S. auto manufacturer, is the best example of an opportunity? Select one: a. Recent consumer studies have indicated that Chinese consumers prefer American cars. b. The company has lower manufacturing costs than its key competitors, allowing it to sell its cars at low prices. c. A New York law firm has filed a $10 million class action suit against the company on behalf of car owners whose gas tanks exploded. d. Due to outdated engine technology, the company's cars get lower gas mileage than those of major competitors. e. The factory that manufactures a new, popular car cannot build enough vehicles to meet the demand, while other factories have excess capacity.

a. Recent consumer studies have indicated that Chinese consumers prefer American cars.

trade promotions

advertising to wholesalers or retailers to get them to purchase new products, often through special pricing incentives

undifferentiated targ strategy

aka mass marketing if the product of service is perceived to provide the same benefits to everyone, with no need to develop separate strategies for different groups (EX: salt or sugar)

product development

aka product design. entails a process of balancing various engineering, manufacturing, marketing, and economic considerations to develop a products form and features or a services features

Generation Z

also know as the Digital Natives people in this group were born into a world that already was full of electronic gadgets and digital technologies such as the internet and social networks

alpha testing

an attempt by the firm to determine whether a product will perform according to its design and whether it satisfies the need for which it was intended. occurs in the firms R&D

evaluation of results

analysis of the performance of the new product and making appropriate modifications

product

anything that is of value to a consumer and can be offered through a voluntary marketing exchange

laggards

consumers who like to avoid change and rely on traditional products until they are no longer available

CDSTEP

cultural demographic social technological economic and political

four macro strategies that focus on aspects of the marketing mix

customer excellence, operational excellence, product excellence, locational excellence

product life cycle

defines the stages that products move through as they enter, get established in, and ultimately leave the marketpalce and thereby offers marketers a starting point for their strategy palnning

Serena studies her customer profiles, market research data, complaints, and other information, attempting to better understand what her customers want. Serena operates in the __________ era of marketing. Select one: a. sales-oriented b. market-oriented c. production-oriented d. value-based e. retailing-oriented

d. value-based

primary data

data collected to address specific research needs

17. A value proposition compares the price of a product to its benefits. True False

false

The Value and Lifestyle Survey (VALS) conducted by Strategic Business Insights (SBI) is a widely used tool for geographic segmentation. True False

false, psychographic

The members of Generation X are also referred to as Digital Natives. True False

false, thats gen Z

When analyzing the immediate environment and the macroenvironment, marketers must be careful to keep the firm at the center of all analyses. True False

false. consumer is center

A complex product that is best described in writing will be difficult to explain to consumers who are unable to read. For this reason, a segment in which many consumers could not read would be considered unattractive because the consumers would not be responsive. True False

false. problem is reachability not responsiveness

The marketing firm must consider the entire business process from an economic point of view. True False

false: customers pov

slotting allowance

fees firms pay to retailers simply to get new products into stores or to gain more or better shelf space for their products

self values

goals for life not just the goals one want to accomplish in a day; overriding desires that drive how a person lives his or her life (ex. sense on belonging) determine benefits that target market is looking for

pioneers or breakthroughs

new product introductions that establish a completely new market or radically change both the rule of competition and consumer preferences in a market; also called breakthroughs

information

organized analyzed interpretted data that offer value to marketers

market share

percentage of a market accounted for by a specific entity

secondary data

pieces of information that have already been collected from other sources and usually are readily availible

introductory price promotions

short term price discounts designed to encourage trial

If the early adopter group is relatively small, the number of people who ultimately adopt the innovation likely will also be _____

small

sustainable competitive advantage

something the firm can persistently do better than its competitors

introduction stage

stage of the product life cycle when innovators start buying the product

decline

stage of the product life cycle when sales decline and the product eventually exits the market

growth stage

stage of the product life cycle when the product gains acceptance, demand and sales increase, and competitors emerge in the product category

maturity stage

stage with the product life cycle when industry sales reach their peak, so firms try to rejuvenate their products by adding new features or repositioning them

loyalty segmentation

strategy of investing in loyalty initiatives to retain the firms most profitable customers (EX: airlines

market testing

testing the actual products in a few test markets

concept testing

testing the new product idea among a set of potential customers

prototype

the first physical form of service description of a new product, still in rough or tentative form, that has the same properties as a new product but is produced through different manufacturing processes, sometimes even crafted individually.

first mover advantage

the first to create the market or product category, they become readily recognizable to consumers and thus establish a commanding and early market share lead

demographic segmentation

the grouping of consumers according to easily measured, objective characteristics such as gender, age, income, education

benefit segmentation

the grouping of consumers on the basis of the benefits they derive from products or services

self concept

the image a person has of him or herself

innovators

those buyers who want to be the first to have the new product or service

Maintaining a unique value proposition can be sustained in the long term only in monopoly situations or monopolistic competition situations. True False

true

Positioning strategies generally focus either on how the product benefits the consumer or on how it is better than competitors' products. True False

true

Stars

upper left. high growth markets and are high market share products . rapid growth but as growth slows they become cash cows

Question Marks

upper right. high growth market, low market shares

psychographics

used in segmentation; delves into how consumers describe themselves; allows people to describe themselves using those characteristics that help them choose how they occupy their time (behavior) and what underlying psychological reasons determine those choices

Compatibility

various consumer features including cultural differences.

market growth rate

vertical axis, the annual rate of growth of the specific market in which the product competes

Observability

when products are easily observed, their benefits or uses are easily communicated to others, which enhances the diffusion process (ex. iPad vs Botox)