MGMT 324 Quiz Study

Which of the following is NOT an example of product-oriented mission statements?

"We sell memorable experiences."

Marketing processes

(Lecture 2, slide 7)

Selling and marketing concepts contrasted

(lecture 2, slide 16)

Maslow's Hierarchy of Needs

(level 1) Physiological Needs, (level 2) Safety and Security, (level 3) Relationships, Love and Affection, (level 4) Self Esteem, (level 5) Self Actualization

Perceptual processes

-Selective attention is the tendency for people to screen out most of the information to which they are exposed. -Selective distortion is the tendency for people to interpret information in a way that will support what they already believe. -Selective retention is the tendency to remember good points made about a brand they favor and forget good points made about competing brands.

Value proposition

A brand's value proposition is the set of benefits or values it promises to deliver to customers to satisfy their needs. Value propositions: Sonos positions its Sonos One with Amazon Alexa as "The smart speaker for music lovers." It gives you all the advantages of Alexa but with high-quality Sonos sound.

market

A market is the set of actual and potential buyers. Consumers market when they: §search for products §interact with companies to obtain information §make purchases

Secondary Data Advantages/Disadvantages

Advantages: Lower cost Obtained quickly Cannot collect otherwise Disadvantages: Data may not be Relevant, Accurate, Current or Impartial

________ segmentation divides buyers into segments based on their knowledge, attitudes, uses, 10) or responses concerning a product.

Behavioral

Big data

Big data comes from marketing research, internal transaction data, and real-time data flowing from its social media monitoring, connected devices, and other digital sources

Consumer-generated marketing

Brand exchanges created by consumers themselves.Consumers are playing an increasing role in shaping brand experiences.

Business objectives

Build profitable customer relationships Invest in research Improve profits

Selecting Target Market Segments

Choosing a targeting strategy depends on Company resources Product variability Product life-cycle stage Market variability Competitor's marketing strategies

________ occurs when two established brand names of different companies are used on the same 19) product.

Co-branding

strategic business units can be a

Company division Product line within a division Single product or brand

Cultural factors

Culture is the set of basic values, perceptions, wants, and behaviors learned by a member of society from family and other important institutions. Subcultures are groups of people within a culture with shared value systems based on common life experiences and situations.

Relationship building blocks

Customer-perceived value: The difference between total customer perceived benefits and customer cost Customer satisfaction: The extent to which perceived performance matches a buyer's expectations

Problems with matrix approaches

Difficulty in defining SBUs and measuring market share and growth § Time consuming § Expensive § Focus on current businesses, not future planning

The following are questions asked in the new product screening process

Does the product offer a sustainable advantage? Is there a clear product concept> Is there a real need and desire for the product? Does the product fit the company's overall growth strategy?

parts of a marketing plan

Executive summary Marketing situation Threats and opportunities Objectives and issues Marketing strategy Action programs Budgets Controls

Social factors

Family is the most important consumer-buying organization in society. Role and status can be defined by a person's position in a group.

Customer engagement marketing

Fosters direct and continuous customer involvement in shaping brand conversations, experiences, and community.

customer insights

Fresh and deep insights into customer needs and wants § Companies use customer insights to develop a competitive advantage § Insights can be difficult to obtain; marketers must manage marketing information from a wide range of sources

________ calls for dividing the market into regions, states, counties, cities, or even 9) neighborhoods.

Geographic segmentation

________ contributes to a product's usefulness as well as to its looks.

Good design

Which of the following is NOT likely to be a question asked in the new product screening process?

How many items will the company sell in the first two years?

analyzing the current business portfolio

Identify strategic business units (SBUs) Assess the attractiveness of its various SBUs Decide how much support each SBU deserves

Choosing a Differentiation and Positioning Strategy

Identifying a set of possible competitive advantages to build a position Choosing the right competitive advantages Selecting an overall positioning strategy Communicating and delivering the chosen position to the market

Marketing objectives

Increase market share Create local partnerships Increase promotion

marketing analytics

Marketing analytics involves analysis tools, technologies, and processes by which marketers dig out meaningful patterns in big data to gain customer insights and gauge marketing performance. Some analytics employ artificial intelligence (AI), technology by which machines think and learn in a way that looks and feels human but with a lot more analytic capacity.

Which of the following is NOT an accurate description of modern marketing?

Marketing emphasizes selling and advertising exclusively

Psychological factors

Motivation Perception Learning Beliefs and attitudes

Marketing ROI

Net return from a marketing investment divided by the costs of the marketing investment -Measurement of the profits generated by investments in marketing activities

Personal factors

Occupation affects the goods and services bought by consumers. Age and Life Stage affect tastes in food, clothes, furniture, ad recreation. Economic situations include trends in spending, personal income, savings, interest rates. Lifestyle is a person's pattern of living as expressed in his or her psychographics. Personality refers to the unique psychological characteristics that distinguish a person or group.

________ is the process by which people select, organize, and interpret information to form a 8) meaningful picture of the world.

Perception

Competitor's objectives

Profitability Market share growth Cash flow Technological leadership Service leadership

data

Secondary data is information that already exists somewhere, having been collected for another purpose. Primary data is information collected for the specific purpose at hand. (Mail questionnaires§ Telephone interviewing § Personal interviewing, internet and mobile surveys§ Online focus groups)

________ are a form of product that consists of activities, benefits, or satisfactions offered for sale 12) that are essentially intangible and do not result in the ownership of anything.

Services

Casual research

Tests hypothesis about or assess cause-and-effect relationships

Societal marketing

The company's marketing decisions should consider consumers' wants, the company's requirements, consumers' long-run interests, and society's long-run interests.

Descriptive research

To describe marketing problems, situations, or markets, such as the market potential for a product or the demographics and attitudes of consumers.

Exploratory research

To gather preliminary information that will help define the problem and suggest hypotheses.

marketing implementation

Turning marketing strategies and plans into marketing actions to accomplish strategic marketing objectives Addresses who, where, when, and how

________ refers to a market-coverage strategy in which a firm decides to ignore market segment 11) differences and go after the whole market with one offer.

Undifferentiated marketing

Elasticity

What the percentage change in one variable (e.g. sales) given a 1 % change in another variable - a measure of customer sensitivity to changes Price elasticity: the percentage change in sales given a 1% change in price Price Elasticity < 1, Inelastic§ Raising price increase or decrease revenue? Price Elasticity = 1, Unit Elastic Price Elasticity > 1, Elastic

integrated marketing program

a comprehensive plan that communicates and delivers intended value

portfolio analysis

a major activity in strategic planning whereby management evaluates the products and businesses that make up the company.

Internal databases

are collections of consumer and market information obtained from data sources within the company network.

Consumer markets

are made up of all the individuals and households that buy or acquire goods and services for personal consumption.

market offerings

are some combination of products, services, information, or experiences offered to a market to satisfy a need or want. Customers form expectations about the value and satisfaction of market offerings. §Satisfied customers buy again §Dissatisfied customers switch to competitors

differentiation

begins the positioning process.

A ________ is a name, term, sign, symbol, design, or a combination of these, that identifies the 15) maker or seller of a product or service.

brand

Elasticity matrix

clout is measured as the row-wise sum of the cross price elasticities • What happens to other brands when I reduce/increase my price • Vulnerability is measured by the column-wise sum of the cross price elasticities• What happens to my sales when other brands reduce/increase their prices (L6 S 15)

Which of the following is the practice of inviting broad communities of customers, employees, independent researchers, and members of the public into the new product innovation process?

crowdsourcing

Factors Influencing Consumer Behavior

cultural, social, personal, psychological (L 5 S 7)

When backed by buying power, wants become ________.

demands

customer value analysis

determines the benefits that target customers value and how customers rate the relative value of various competitors' offers. Identification of major attributes that customers value and the importance of these values Assessment of the company's and competitors' performance on the valued attributes

Psychographic segmentation

divides a market into different segments based on social class, lifestyle, or personality characteristics.

Behavioral segmentation

divides a market into segments based on consumer knowledge, attitudes, uses of a product, or responses to a product.

In ________ research, the objective is to gather preliminary information that will help define the 6) problem and suggest hypotheses.

exploratory

Which stage in the product life cycle is characterized by rapid market acceptance and increasing profits?

growth

John's fascination for his grandmother's sherbet recipes inspired him to come up with a recipe 20) for SherBetter, a gourmet sherbet for the American market. Which of the following stages of the new product development process does this exemplify?

idea generation

In the new product development process, the first idea-reducing stage is ________.

idea screening

A detailed version of a new idea stated in meaningful customer terms is called a product

image

The real value of marketing information lies in how it is used ________

in the customer insights it provides

Kei, a senior marketing manager of a pizzeria in North Florida, is currently researching 5) electronic collections of consumer information within the company network to arrive at crucial marketing decisions. In this instance, Kei is using ________.

internal databases

Many companies have developed ________ programs that encourage employees to develop new product ideas.

intrapreneurial

Survey research

involves gathering primary data by asking people questions about their knowledge, attitudes, preferences, and buying behavior.

Observational research

involves gathering primary data by observing relevant people, actions, and situations.

Experimental research

involves gathering primary data by selecting matched groups of subjects, giving them different treatments, controlling related factors, and checking for differences in group responses

Ethnographic research

involves sending trained observers to watch and interact with consumers in their "natural environments."

Local marketing

involves tailoring brands and promotion to the needs and wants of local customer segments. Cities Neighborhoods Stores

Individual marketing

involves tailoring products and marketing programs to the needs and preferences of individual customers. Also known as:One-to-one marketing or Mass customization

market segment

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

Marketing

is a process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return.

value chain

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

positioning

is arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products from competing brands and give them the greatest advantage in their target markets.

Cognitive dissonance

is buyer discomfort caused by postpurchase conflict.

not-for-profit marketing

is growing, as sound marketing can help organizations attract membership, funds, and support.

value delivery network

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

market positioning

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

marketing management

is the art and science of choosing target markets and building profitable relationships with them. § What customers will we serve (target market)? §How can we best serve these customers (value proposition)?

Consumer buyer behavior

is the buying behavior of final consumers—individuals and households that buy goods and services for personal consumption

business portfolio

is the collection of businesses and products that make up the company.

market segmentation

is the division of a market into distinct groups of buyers who have different needs, characteristics, or behaviors and who might require separate products or marketing mixes.

marketing strategy

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

Micromarketing

is the practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations. Local marketing Individual marketing

strategic planning

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

market targeting

is the process of evaluating each market segment's attractiveness and selecting one or more segments to enter.

marketing mix

is the set of controllable, tactical marketing tools—product, price, place, and promotion—that the firm blends to produce the response it wants in the target market.

postpurchase behavior

is the stage of the buyer decision process in which consumers take further action after purchase, based on their satisfaction or dissatisfaction.

competitive marketing intelligence

is the systematic collection and analysis of publicly available information about consumers, competitors, and developments in the marketing environment.

customer equity

is the total combined customer lifetime values of all of the company's customers.

customer lifetime value

is the value of the entire stream of purchases that the customer would make over a lifetime of patronage.

Multiple segmentation

is used to identify smaller, better-defined target groups.

A current trend in the United States involves rediscovering the benefits of home-cooked food 7) and the use of organic ingredients. People are choosing to spend hours in the kitchen using onlythe freshest ingredients to cook healthy and nutritious meals. This change in ________ is one ofthe reasons for the increasing demand for organic ingredients.

lifestyle

________ consists of evaluating each market segment's attractiveness and selecting one or more segments to enter.

market targeting

A(n) ________ consists of people and procedures dedicated to assessing information needs, 4) developing the needed information, and helping decision makers use the information to generate and validate actionable customer and market insights.

marketing information system

A(n) ________ consists of people and procedures dedicated to assessing information needs, developing the needed information, and helping decision makers use the information to generate and validate actionable customer and market insights.

marketing information system

________ is the systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization.

marketing research

Requirements for Effective Segmentation

measurable, accessible, substantial, differentiable, actionable

The buyer decision process

need recognition, information search, evaluation of alternatives, purchase decision, post purchase behavior

marketing myopia

paying more attention to the specific products than to the benefits and experiences produced

Costco's Kirkland Signature products are an example of a ________.

private brand

Which of the following marketing management concepts is most likely to lead to marketing myopia?

product concept

Which of the following refers to the course that a product's sales and profits take over its lifetime?

product life cycle

A ________ is a group of products that are closely related because they function in a similar 16) manner, are sold to the same customer groups, are marketed through the same type of outlets, or fall within given price ranges.

product line

Proton Corp. is an automobile manufacturer known for producing efficient, durable, and 17) low-priced cars. Recently, the company launched a new range of luxury cars to broaden its market appeal and to add prestige to its existing line of cars. This is an example of ________.

product line stretching

Companies that define their missions in terms of products or technologies are considered 3) myopic primarily because ________.

products and technologies eventually become outdated

A group of business entrepreneurs who worried about their teenage children drinking and driving decided there must be some way to approach this problem proactively. They came up with an idea for a pair of blurry goggles. They believed looking through the goggles would simulate what the world looks like when someone is seriously intoxicated. They developed a crude pair of blurry goggles to show prospective customers. This crude pair of goggles is known as a ________.

prototype

A shoe manufacturing company uses ads featuring the members of a country music band with the hope that the band's fans will see them wearing the company's shoes and hence purchase the same brand of shoes. The shoe company believes that the band portrays the image of a ________ to the band's fans.

reference group

Marketing information system (MIS)

refers to the people and procedures dedicated to assessing information needs, developing the needed information, and helping decision makers to use the information to generate and validate actionable customer and market insights.

Positioning maps

show consumer perceptions of marketer's brands versus competing products on important buying dimensions.

________ is the process of developing and maintaining a crucial fit between the organization's goals and capabilities and its changing marketing opportunities.

strategic planning

Positioning statement

summarizes company or brand positioning using this form: To (target segment and need) our (brand) is (concept) that (point of difference) Choosing the positioning is often easier than implementing the position. Establishing a position or changing one usually takes a long time. Maintaining the position requires consistent performance and communication.

Concentrated marketing

targets a large share of a smaller market. Limited company resources Knowledge of the market More effective and efficient

Differentiated marketing

targets several different market segments and designs separate offers for each. Goal is to achieve higher sales and stronger position More expensive than undifferentiated marketing

Undifferentiated marketing

targets the whole market with one offer. Mass marketing Focuses on common needs rather than what's different

If a consumer purchases a new flat-screen "smart" television, what is the augmented product 13) involved?

tech support and warranty

Customer Relationship Management (CRM)

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

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

understand the marketplace and customer needs and wants

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

value proposition