mktg 230 final exam

Which of the following should Marketers be concerned with?

Social responsibility and ethics, external environment analysis, and globalization

Which of the following would be an internal SWOT issue (as relates to a firm)?

A firm's highly trained and professional sales force is a major strength for that firm

Which of the following is not a purchase between two commercial (for profit)/business type organizations during a purchase situation?

A local not-for-profit hospital buys cleaning supplies

I am involved in a limited to medium information search effort that includes memory based information as well as some external search conducted on several online product/brand websites. Which of the following items would likely fall under this category?

A new Apple running watch

Which of the following is likely not a "product dominate" product/service (i.e., an example where the emphasis is not on the product itself, but rather, on the service expertise of the individual conducting the service)?

A very intricate heart replacement surgery

Learning about the qualities of different products/brands usually occurs as a result of long term exposure to those brands through association with:

All of the above are influential in learning

Which of the following is true of the requirements for a segment (i.e., in terms of identifying/determining if a segment truly exists as a legitimate segment)? To qualify as a viable segment, individuals in that group________________.

All of the above are true.

Bob is nearing the end of his 2 month search for a new car and has narrowed his choices down to three different brands (from which he will make his final purchase decision). Which stage of the purchase decision process would this stage probably fall under?

Alternative evaluation stage

______________are "mental positions" or emotional feelings, favorable or unfavorable evaluations, and action tendencies people have about products, services, companies, ideas, issues, or institutions---which tend to be enduring and hard to change.

Attitudes

Which of the following would be benefits associated with target marketing? Target marketing/segmentation assists firms in:

Avoiding head-on competition with other firms trying to capture the same customers, Developing new offerings and expanding profitable brands and product lines, Remarketing older, less profitable products and brands

Business demand experiences much greater "ups and downs" than the changes that occur in the consumer market. The business concept that relates to that type volatility (i.e., in the business market compared to the (smaller) changes in demand that typically occur on the consumer side) would be:

Fluctuating demand

The age cohort group that grew up between the years 1946-1962 (post WWII babies) and which currently constitutes the second largest demographic group would be ____________.

Baby boomers

One method used for segmenting markets involves observing customer groups and the benefits they receive from using the product. This basis for segmentation is referred to as ________________.

Benefits segmentation

Ahmed is a purchasing agent for a hospital. He is directed to develop some technical specifications for a new CAT scan imaging machine. He assembles several of the hospital's radiologists and neurologists to determine what the technical requirements are for the machine, and then he writes-up his bid proposal. Ahmed isn't an expert on CAT scan machines and so his input into the buying center is going to be minimal other than the input he received when writing up the proposal. Once the alternatives have been evaluated and the selection decision is made, he will draw up the purchasing order. In this case, Ahmed is likely the/a/an:

Buyer

A product brand is associated with a slow growth market but that brand is also the segment leader/top selling brand in a very large market segment (i.e., think of a product brand like Coca-Cola in the cola market). In other words, that product would most likely be labeled as a ___________________.

Cash cow

Your marketing department has identified a segment of athletic shoe buyers who buy only for fashion reasons (i.e., they never played sports). The segment is growing in number, quite stable, has the ability to buy high end products, and will respond to marketing efforts to develop fashion based athletic shoes (i.e., they're not particularly brand loyal). Unfortunately, your firm (which manufactures basketballs, footballs, baseball and soccer balls) does not manufacture shoes of any kind. If the firm decided to pursue this segment, then it would probably be violating the __________segment selection criteria.

Comparability with existing products.

Ferrari focuses its attention on only one segment of the auto market....those who want and can afford very expensive, high performance 2-seat sports cars starting at around $250,000. Ferrari is most likely using a __________ target segmentation strategy.

Concentrated

______________ are products and services consumers generally don't want to put much effort into shopping for because they see little difference between competing brands.

Convenience

Low involvement purchases typically involve very limited, mostly internal/memory based information search for routinely purchased items such as:

Convenience products

Which of the following "activities" associated with the definition of Marketing relates to getting the product to the targeted customer at the right time, at the right price, in the right quantity, and at the place (i.e., optimizing value).

Delivering

Age, income, gender, and race are associated with ____________segmentation.

Demographic

Marketers examine characteristics of individual members of groups using descriptions such as that member's race, gender, average age, income, and/or education level. These descriptive variables are generally referred to as the ________ for the members associated with each group.

Demographic profile

Which of the following are associated with the social/cultural environment?

Demographic trends, the aging population, and immigration

Targeted marketing, otherwise referred to as __________, means that you offer a different marketing mix (i.e., different offerings, promotions, prices, etc.) for different groups of customers.

Differentiated marketing

Which of the following are minimum requirements for selecting a particular market segment to pursue?

Each of the above is true

Which of the following is true of business (as opposed to consumer) purchasing?

Each of the above is true

Which of the following are requirements for a marketing exchange to take place?

Each of the above is true of an exchange.

XYZ Travel Corp. markets upscale adventure vacation packages starting at $7500 per individual. Unfortunately, the stock market suddenly "melts down" and the typical investor loses 35-40% of his/her wealth in just under a month. Because a good portion of the target segment for these luxury vacation packages feels substantially poorer, demand for this type vacation package (among this target segment) quickly declines. Which of the external environmental factors is likely the most impactful in terms of demand for this product category?

Economic

Which of the following might be considered an Institutional buyer?

Elon University

Marketers continually monitor the external environment for changes that may impact the strategic direction of the firm. This continual monitoring is also referred to as __________.

Environmental scanning/analysis

The consumer purchase decision process typically begins with information search---resulting from the instantaneous receipt of incoming and unexpected marketing based stimuli.

False

True or False: African Americans are the single largest sub-cultural/ethnic group in the U.S. comprising roughly 25% of the U.S. population.

False

True or False: Business demand originates from commercial businesses making purchases from other commercial businesses.

False

True or False: Generally speaking, it is harder to retain old customers than it is to attract new ones.

False

True or False: In terms of the Marketing Mix (i.e., the 4 P Model) something like a car payment or the costs associated with monthly rent would probably go under the "P" category that is commonly associated with promotion.

False

True or False: The SW in SWOT Analysis refers to the external opportunities and threats posed by the various environmental factors.

False

True or False: The relationship between buyers and seller is typically longer and more stable on the consumer side than on the business side.

False

True or False: The total number of products sold in the consumer market dwarfs (i.e., is much larger) than the number of intermediate product purchases made by businesses when they produce the product they ultimately sell to the end consumer.

False

Patagonia primarily markets its heavy duty ski jackets to people living in the Northern Midwest and Rocky Mountain areas since people in the southern US don't experience the sort of cold weather conditions Patagonia's ski jackets are designed to withstand. In this case, Patagonia is probably using ________segmentation to decide where to market its ski jackets.

Geographic

Which of the following is not a "for-profit?"

Guilford County Public Medical Clinic

The stage in the consumer purchase decision process in which the consumer decides that she does not have enough stored, memory based information to make a good purchase decision, and therefore consults several outside marketing sources (i.e., she searches several brands' websites). This type search effort would probably be part of the the:

Information seach stage

The Red Cross is a form of _______________ buyer.

Institutional

Demand for business inputs _____________.

Is derived from consumer demand

You examine the demographic/psycho-graphic profile of a group your firm has identified as being quite large. The segment in question consists of high net worth individuals over 70 years old. You advise your VP of marketing to reject the segment because, while large and having the ability to buy, their current age and lifestyle makes it unlikely that many would be interested in purchasing your firm's family oriented camping tents. In other words, the most likely reason to reject this group as a target segment is because the segment_____________.

Isn't interested in the product (desire/unresponsive to marketing efforts).

____________firms recognize that an exchange must be profitable for the company to be successful. In the long run, firms that continually attempt to identify and satisfy the needs of their most profitable customers tend to be more profitable than those which don't.

Market oriented

The process of differentiating different clusters of customers into smaller, homogeneous groups (i.e., aggregating prospective buyers into various groups) is referred to as________________________.

Market segmentation.

An individual can now go online to almost any athletic shoe manufacturer site and then design a pair of shoes to fit the individual's color and style preferences. This is a unique form of segmentation made possible by technology. In this example, the firm is engaging in ____________.

Mass customization

_____________, or undifferentiated marketing, evolved along with mass production and involves selling the same product to everybody.

Mass marketing

Many "large ticket" purchases (such as cars) are stimulated by the perceived gap that exists between how the individual sees himself, and how he would like to be perceived. This underlying psychological force is what often spurs a person to fill this perceived gap (i.e., between where I am and where I want to be) through a purchase. The underlying force driving the individual to fill the gap is also referred to as the individual's:

Motivation

______________ is the inward drive we have to get what we need. In the mid-1900s, Abraham Maslow, an American psychologist, developed a hierarchy of needs (that looks like a pyramid) which presumably explains why we strive "to move up the ladder."

Motivation

A men's shaving/male grooming products manufacturer has evaluated the female shaving market (they determined that the female segment of the overall shaving market is large and stable and compatible with their existing line of male shaving products) and has made the decision to enter that market. The firm is now in the process of developing a separate "4-P" mix of shaving equipment/grooming products specifically designed for women. The sequence of the marketing segmentation process the firm is in now in would most likely be: that of________________________.

New product development/product differentiation stage

______________is how you interpret the world around you and make sense of it in your brain. You do so via exposure to routine stimuli that affect your different senses—sight, hearing, touch, smell, and taste.

Perception

A __________ is an imaginary map in your head that depicts where you have placed a product against other products of the same category. In other words, most consumers have a file stored in memory that positions one brand against another in terms of the attributes that are important to that individual.

Perceptual map

Terms such as extrovert, introvert, agreeableness, etc., are examples of ___________.

Personality traits

The "4P" model relates to the Marketing Mix. The "P" associated with the monetary amount that a consumer must exchange in order to receive the product would be:

Price

_____________ are companies that purchase goods and services that they transform into other products. They include both manufacturers and service providers. Procter & Gamble, General Motors, McDonald's, Dell, and Delta Airlines are examples.

Producers

A _________ is a group of related offerings.

Product line

The entire assortment of products that a firm offers is called the _______________.

Product mix

How a person lives or lifestyle segmentation is associated with ___________ segmentation.

Psychographic

From the 1920s until after World War II, companies tended to be __________, meaning they believed it was necessary to push their products by heavily emphasizing advertising and selling.

Sales oriented

Which of the following would be more typical of the consumer market than the business market?

Short decision cycles for most purchases

I am driving in the desert and discover that I am really low on gasoline. I find a roadside park and someone there offers to sell me 5 gallons for $50 (which, he says, should get me to the nearest gas station). I am desperate and so I agree to the deal. The most likely reason explaining why the I'm willing to pay so much for the gasoline is based on __________ factors.

Situational

The way I see myself in terms of lifestyle and product preferences is often based on how I was raised. In other words, regardless of my current financial situation, I still feel more comfortable associating with people who were raised with a similar background as mine. Hence, _________________is typically a stable and relatively permanent part of my self-identity.

Social class

_______________ are highly differentiated offerings, and the brands under which they are marketed are very different across companies, too. For example, an Orange County Chopper or Iron Horse motorcycle is likely to be far different feature-wise than a Kawasaki or Suzuki motorcycle.

Specialty

A _______________ situation occurs when a business makes a routine type re-purchase.

Straight rebuy

The group of people and organizations you decide to sell to would be referred to as a _______________.

Target segment

Which of the following might be considered an external opportunity?

The EPA has just loosened its mpg rules for gasoline powered trucks/SUVs 70% of your firm's auto production is light trucks and SUVs; The economy is rebounding strongly and your firm has just completed a new, state-of-the-art manufacturing facility in anticipation of increased demand; Your organic foods company is positioned to take advantage of the new cultural trend toward healthier, less processed food

XYZ Corporation, a major producer of athletic equipment, has just entered the athletic shoe market. The largest athletic shoe manufacturer, ABC Corporation, launches a counter attack by running a 15% discount in a new promotional event designed to limit the impact of the launch of XYZ's new line of shoes. Which environmental factor is most in play in this example.

The competitive environment

Which of the following would be an example of "total cost of ownership"?

The cost to purchase a sweater, The cost to have your sweater dry cleaned, The effort taken to search for and find the right sweater

All firms must monitor the ______________ because this environment impacts the level of discretionary income consumers have available to spend on luxury/optional type goods and services (such as vacations, restaurants, clothing, etc.).

The economic environment

Which of the following is not a business segmentation variable?

The psychographic profile (VALS) of the firm

Which of the following "buying center" individuals would likely be the actual buyer of the product being purchased by a firm?

The purchasing agent

You are driving in the desert and notice that you've got less than a quarter of a tank of gasoline and it's probably 50 miles to the nearest station. You see a truck on the side of the road with a sign that says "Gasoline---5 gallons for $25 dollars. You pull over and purchase 10 gallons. The factor that would most likely explain your action is:

The situation you're in

Which of the following is a factor or reason that might influence a consumer's behavior (at the time of purchase)?

The situation you're in, your mood, the time you have to make a decision

The fact that as many U.S. women now work outside the home as men suggests that (best answer)

The social/cultural environment in the U.S. has changed dramatically

Intel Corporation produces computer chips but has lost market share to Computer chip firms based in Taiwan. The industrial environment that Intel is involved in is fast changing and so firms involved in that industry must stay abreast of those changes or quickly lose their position as market leaders. In addition to the other environmental factors that affect all industries, firms such as Intel are in an industry where the primary environmental factor is indeed the ___________.

The technological environment

The _________ is arguably a more important External Environmental factor for firms like Apple, Google, Amazon, Facebook and/or Twitter than it is for say, firms in an industry that produce carbonated beverages.

The technological environment.

Two couples have almost identical demographics (i.e., same age, same income level, same education, etc.), and yet, one couple is very socially conservative and attends church regularly, and the other couple is involved in an open marriage (i.e., they're "swingers'). The difference in behavior in this case would likely be explained by which of the following differences?

Their lifestyle choices

Hi involvement purchases generally require greater search effort because they also usually entail great financial, social, and performance risk.

True

True or False: B-2-B marketing consists of commercial firms (mainly for-profit type businesses) marketing business goods and services to other commercial/for-profit firms, governments, or institutional buyers.

True

True or False: From a business practitioner perspective, the true role and value of the marketing department is to discover the unmet needs of the firm's targeted consumer segments, and then, disseminate that information across all firm departments. Marketing oriented firms are therefore those that can take this information and then use it to develop various marketing mixes (of goods and services) that the firm can market to its various target segment (in that hope that each 4-P mix will satisfy each target segment's needs).

True

True or False: Generally, the more high-dollar and complex the business item being sold is, the longer it takes for the sale to be made.

True

True or False: In general, most consumer purchases can be made quickly with fewer individuals involved in the purchase decision process than for business purchases.

True

True or False: One could argue that the way most people develop brand preference (i.e., for most convenience food type products such as mayonnaise and ketchup) is through exposure to the various brands they see and experiences while growing up within a family setting. Learning about brands in this case is therefore a gradual process where consumers develop consumer preferences over time through experience and the acquisition of information.

True

True or False: Product lines are generally associated with depth. In other words, some lines are quite deep (with many different line extensions) while others can be a fairly shallow (just a few offerings).

True

True or False: SWOT is used by firms to analyze their internal strengths and weaknesses amidst constant changes in the external environment.

True

True or False: The 4P model is also sometimes referred to as the "marketing mix" since the model represents a basket of attributes or "P's", designed to satisfy a particular consumer segment's needs.

True

True or False: Value is determined by the consumer, regardless of what the manufacturer may say in an advertisement.

True

True or False: Whether a decision is low, limited (medium), or high, the level of search involvement typically varies by consumer, not by product----although purchasing a house typically require a high-involvement search effort for all consumers.

True

Jackson is a fork lift operator/driver and he has been included in a buying center to determine which brand of forklifts will be purchased as replacement for the old ones. Jackson's position in the BC is likely that of a/an

User

The _______________ of a product or service is described as the benefits a consumer receives from the purchase of the product/service minus what it costs him/her to purchase the good or service.

Value

____________ is generally determined by the consumer rather than by the producer/manufacturer. In other words, if a customer perceives that he receives more in benefits than what he has to pay for those benefits (or, gets more in benefits than the perceived cost to acquire those benefits), then he is probably going to be fairly happy with that product in relation to its cost.

Value

You don't particularly like Girl Scout cookies but as you are entering the grocery store you notice that your neighbor and her daughter are selling cookies. In order to not appear rude, you purchase 3 boxes. The factor that influenced your purchase decision in this case is probably:

Your social situation

Feelings and emotions, perceptions based on my beliefs (cognitive attributes) and my own behavior in terms of repeat purchasing all form and are indicative of my ___________ about a certain brand of product.

attitude

P&G produces many different products for different product category markets (i.e., from tooth paste to deodorant to cough medicine). P&G also develops separate brands within the same product category (Tide, Cheer, Downy, Gain, etc., in the laundry detergent category). The most likely reason P&G would develop so many brands is because P&G_________________.

believes there are many segments across different product categories and the firm wants to reach as many of these different segments in as many different product markets as it can in order to increase the firm's sales revenue.

Ford's demand for new tires (for its new trucks) is based on consumer demand for new trucks. This is an example of businesses's _________________ demand.

derived

Delivering goods to the customer at the right time requires sound supply chain management and logistical skills. The "P" covering delivering is goods to consumers is ________.

place

Companies like Procter & Gamble created many products after WWII that served the same basic function but with a slight twist or difference in order to appeal to a different consumer, and as a result products proliferated. This is an example of a ___________ orientation.

product

The first step/stage of the market segmentation/target marketing process is to____________:

segment the overall market into identifiable market segments

For the past twenty years, at the end of each month, Mary (the office manager) purchases office supplies, usually from the same supplier, for the next month. This type purchasing is most likely a ___________ situation.

straight rebuy