principles of marketing test 1

market development

identifying and developing new markets for its current products

Symbols such as the McDonald's golden arches, the colorful Google logo, the Nike swoosh, or Apple's "bite mark" logo provide strong company or brand recognition and are indicative of ________ differentiation

image

The ________ environment consists of laws, government agencies, and pressure groups that influence or limit various organizations and individuals in a given society

political

Rather than assuming that strategic options are bounded by the current environment, firms adopting a(n) ________ to the marketing environment develop strategies to change the environment

proactive stance

strategic planning

an organization's leaders define their vision for the future and identify their organizations goals and objectives

adoption process stages

awareness, interest, evaluation, trial, adoption

business buying process

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

Which of the following is NOT a step in the strategic planning process?

evaluating members of the company's value chain

Which of the following is the adoption process stage at which the consumer considers whether trying the new product makes sense?

evaluation

consumer buying process

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

________ refers to a business buying situation in which the buyer purchases a product orservice for the first time

new task

Differences between business markets and consumer markets include all of the following EXCEPT ________

people who make purchase decisions to satisfy needs

________ show(s) consumer perceptions of a company's brands versus competing products on important buying dimensions

perceptual positioning maps

Which of the following statements is true about creating customer loyalty and retention?

Losing a customer means losing the entire stream of purchases that the customer would makeover a lifetime of patronage

Which of the following is NOT an accurate descripti on of modern marketing?

Marketing emphasizes selling and advertising exclusively

niche marketing

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

The single most important demographic trend in the United States is the ________

changing age structure of the population

internal databases

collections of consumer and marketing information obtained from data sources within the company network

Individuals and households that buy or acquire goods and services for personal consumption make up the ________

consumer market

market segmentation

dividing a market into smaller segments with distinct needs, characteristics, or behaviors that might require separate marketing strategies or mixes

Which of the following is LEAST relevant when a firm evaluates different market segments?

core competencies of competitors

factors that influence consumer buyer behavior

cultural, social, personal, phycological

value proposition statement

declarativestatement that explains why a customer shouldpurchase your product or service

Marketing plays a key role in the company's strategic planning in all of these ways EXCEPT________

designing new products from scratch

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

differentiation

When consumers are highly involved with an expensive, infrequent, or risky purchase but see little difference among brands, they most likely will exhibit ________

dissonance-reducing buying behavior

Market segmentation can be best described as the process of ________

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

marketing plan

executive summary, current marketing situation (market description, product review, competitive review, channels and logistics), SWOT analysis, objectives and issues, marketing mix strategy, action program/implementation plan, evaluation & controls, supporting information

When marketers set low expectations for a market offering, they run the risk of ________

failing to attract enough customers

________ include banks, credit companies, insurance companies, and other businesses that help insure against the risks associated with the buying and selling of goods

financial intermediaries

survey research

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

observational research

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

experimental research

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

Many companies today are localizing their products, advertising, promotion, and sales efforts to fit the needs of individual regions, cities, and neighborhoods. This is an example of________

geographic segmentation

strategic planning cycle

goals, desired outcomes, strategies, measures and markets, results (vision, mission, and purpose at the center of this)

value proposition

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

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

in the customer insights it provides

primary data

information collected for the specific purpose at hand

secondary data

information that already exists somewhere, having been collected for another purpose

Which of the following is an advantage of using an internal database?

internal databases can be accessed more quickly and cheaply than other information sources

Which of the following is true with regard to a SWOT analysis?

it evaluates the company's overall strengths

market penetration

making more sales to current customers without changing its original products

According to the Boston Consulting Group approach, ________ provides a measure of market attractiveness

market growth rate

adoption process

mental process an individual goes through from first learning about an innovation to final regular use

The physical environment affecting marketing activities is referred to as the ________environment

natural

7 P's

product (what you're selling), promotion (building awareness for customers), price (value of the product), place (making it available), people (professionals that enable success), process (ways to ensure customer satisfaction), physical evidence (tangible clues to entice customers)

Marketers who use ________ often segment their markets by consumer lifestyles and base their marketing strategies on lifestyle appeals

psychographic segmentation

consumer driven marketing strategy

segmentation, targeting , differentiation, positioning

target segment

selecting the segment or segments to enter within the market

Maslow's hierarchy of needs

self actualization needs, esteem needs, social needs, safety needs, physiological needs

enthographic research

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

While collecting sensitive customer data, market researchers should adhere to all of thefollowing guidelines EXCEPT ________

sharing information without the customer's authorization

Positioning maps

show consumer perceptions of marketers brands versus competing products on important buying dimensions

Government agencies design ________ to encourage energy conservation and discourage smoking, excessive drinking, and drug use

social marketing campaigns

BCG growth-share matrix

stars: high growth, high-share businesses or products requiring heavy investment to finance rapid growth ; cash cows: low-growth, high-share businesses that are establishes and successful ; question marks: low-share business units in high-growth markets requiring a lot of cash to hold their share ; dogs: low-growth, low-share businesses that generate enough cash to maintain themselves

diversification

starting up or buying businesses beyond its current products and markets

The key businesses of Kimberley and Price consist of a division that produces and sells breakfast cereals and another that manufactures gardening tools. Each of these businesses is called a ________

strategic business unit

SWOT

strengths, weaknesses, opportunities, threats

Each culture contains smaller ________, or groups of people with shared value systems based on common life experiences and situations

subcultures

competitive marketing intelligence

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

individual marketing

tailoring products and marketing programs to suit the tastes of specific individuals

local marketing

tailoring products and marketing programs to suit the tastes of specific locations

Selecti ng which segments of a population to serve is called ________

target marketing

differentiated marketing

targets several different market segments and designs separate offers for each, goal is to achieve higher sales and stronger position

mass marketing

targets the whole market with one offer, focuses on common needs rather than what's different

selective distortion

tendency for people to interpret information ina way that will support what they already believe

The objective of causal research is to ________

test hypotheses about cause-and-effect relationships

micro-environment

the actors close to the company that affect its ability to serve its customers

new task

the buyer purchases a product or service for the first time

straight rebuy

the buyer routinely reorders something without modifications

modified rebuy

the buyer wants to modify product specifications, prices, terms, or suppliers

cognitive dissonance

the buyer's discomfort caused by post-purchase conflict

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

macro-environment

the larger societal forces that affect the microenvironment

marketing

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

marketing research

the process of planning, collecting, and analyzing data relevant to a marketing decision

selective attention

the tendency for people to screen out most of theinformation to which they are exposed.

selective retention

the tendency to remember good points madeabout a brand they favor and forget good points made about competingbrands

product position

the way a product is defined by consumers on important attributes