ag marketing quiz 2, Final exam marketing, AGEC 3010 Midterm

Personal Factors

-age and life-cycle stage -occupation -economic situation -lifestyle -personality -self-concept

product concept

-continuously modify or improve features -problem: only focusing on the company's products can lead to a "marketing myopia" which means they focus on meeting the company's needs instead of focusing on the customers

cultural factors

-culture: -subculture: hispanic, african, asian -social class: occupation, income, education, wealth

secondary data collection

-library and gov. data sources -commercial/private data sources -internet data

Primary Data Collection Methods

-mailed surveys -telephone surveys -online (email) surveys -face to face surveys -direct observation -questionnaire

production concept

-make products available and affordable -improve production and distribution efficiency example: farmers increase yields to drive down costs

psychological factors

-motivation (Maslow's theory, satisfy multiple needs) -perception: (the process by which people select, organize, and interpret information to form a meaningful pic of the world) -learning: drives, stimuli, cues, responses, reinforcement -beliefs and attitudes (feelings toward an object or idea, very difficult to change)

Microenvironment

-the company -suppliers -marketing channels/intermediaries (resellers, wholesale, distribution centers, marketing agencies, financial intermediaries) -competitors (perfect competition, monopoly, oligopoly, monopolistic competition) -publics (any group that has an actual or potential interest or impact on the organization. financial, media, gov, environmental groups) -customers

strategic planning steps

1. Defining the Company's Mission 2. Setting Company Objectives 3. Designing the Business Portfolio

which of the following companies uses captive product pricing

Photo Genie, which sells inexpensive cameras that run only on their own expensive batteries

exclusive territorial agreements

Producer agrees not to sell to other dealers in a given area, or the buyer may agree to sell only in its own territory

customer perceived value

The difference between total customer perceived benefits and customer cost

Agribusiness

The set of economic and political relationships that organize food production for commercial purposes. It includes activities ranging from seed production, to retailing, to consumption of agricultural products.

easy to pronounce and recognize

Twitter, iPad

_____________ involves the use of a successful brand name for new or modified products in a new category

a line extension

portfolio analysis

a major activity in strategic planning whereby management evaluates the products and businesses that make up the company (BCG growth share matrix)

brand

a name, term, symbol, design, or combination thereof that identifies a seller's products and differentiates them from competitors' products

shopping product

a product that requires comparison shopping because it is usually more expensive than a convenience product and is found in fewer stores (appliances, TV, furniture, clothing)

unsought product

a product unknown to the potential buyer or a known product that the buyer does not actively seek. aggressive advertising (life insurance, red cross blood donations)

company value chain

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

social factors

small groups, social networks, family, and social roles and status

Some fast-food restaurants offer tasty and convenient food at affordable prices, but in doing so they contribute to a national obesity epidemic and environmental problems. These fast-food restaurants overlook the ________ philosophy.

societal marketing

market analysis (SWOT)

strengths- internal capabilities weaknesses- internal limitations opportunities- external factors the company may be able to exploit to its advantage threats- current and emerging external factors that may challenge the company's performance

speciality product

strong brand preference/loyalty, high effort, little brand comparison, high price (rolex, luxury goods)

business portfolio

the collection of businesses and products that make up the company

customer satisfaction

the extent to which a product's perceived performance matches a buyer's expectations

societal marketing concept

the idea that a company's marketing decisions should consider consumers' wants, the company's requirements, consumers' long-run interests, and SOCIETY'S long-run interests

a cooperative oligopoly (such as OPEC) is sometimes called a

cartel

________________ are low growth, high share businesses that need less investment to hold their market share

cash cows

Which of the following types of advertising will most likely result in an advertising war?

comparative advertising

two factors are associated with the attribute of "quality" in a product. The first is level of quality (or costliness) and the other is?

consistency

Price & Malone Corp., a company based in Houston, caters to a market of individuals and households that buy goods and services for personal consumption. Price & Malone caters to a ________ market.

consumer

As a general pricing approach, value-based pricing uses buyers' perceptions of value rather than sellers' ___________ as the key to pricing.

cost

brand extension

create immediate new product acceptance at lower development costs

marketing concept

customer centered; the idea that an organization should strive to satisfy the needs of consumers while also trying to achieve the organization's goals choose value --> provide value --> communicate the value

Today's retailers increasingly adopt environmentally sustainable practices. Which of the following is NOT one of these practices?

cutting back on recycling programs

Which of the following is NOT a step in designing an effective marketing channel?

determining pricing policy for channel members

A good brand name should most likely be ________.

distinctive

If an international court can establish that the defendant country sold its products in the plaintiff's country at prices lower than the defendant's cost of production, this is usually ruled as evidence of

dumping

In-store demonstrations, displays, sales, and loyalty programs are examples of ________.

sales promotion

product attributes include all of the following except

price

Keeping the brand in a customer's mind during off-seasons is most likely a goal of ________ advertising.

reminder

the marketing process

1. Understand the marketplace and customer needs and wants what do customers need? want? 2. Design a customer-driven marketing strategy what is our target market? how can we best serve these customers? (value proposition) 3. Develop the marketing mix Product --> Customer Price --> Cost Place --> Convenience Promotion --> Communication 4. Manage marketing efforts and customer relationships create customer loyalty and retention

5 types of customer markets

1.) Consumer Markets- individuals and households that buy goods and services for personal consumption 2.) Business Markets- buy goods and services for further processing or use in their production processes 3.) Reseller Markets- buy goods and services to resell at a profit 4.) Government Markets- govt agencies that buy goods and services to produce public services or transfer the goods and services to others who need them 5.) International Markets- Buyers, consumers, producers, etc. in other countries

extendable

Amazon

what is the first step in strategic planning?

Defining the company mission

BCG Growth-Share Matrix

Dog: LOW growth, LOW market share Question Mark: HIGH growth, LOW market share Star: HIGH growth, HIGH market share Cash Cow: LOW growth, HIGH market share

suggestive of benefits and qualities

Lean Cuisine, Beautyrest

selling concept

PROMO; the idea that consumers will not buy enough of the firm's products unless the firm undertakes a large-scale selling and promotion effort. make product before looking at needs/wants; very pushy

distinctive

Panera, Swiffer

multibrand development

a way to appeal to different customer segments

What did I suggest could generate this shape for a product's life cycle?

adding new features

tying agreements

agreements where the dealer must take most or all of the line

which is one of the conditions required for price discrimination

all of the above (market power, extra revenue from segmentation, different demand elasticity, no resale)

style is ________

appearance

Using the AIDA model, an effective marketing message should get attention, hold interest, ________, and obtain action.

arouse desire

a restaurant wants to use value based pricing. it knows the costs of the ingredients in the food. it must also factor in _________________ in determining customer satisfaction and value

atmosphere and decor

Coors has several assets going for it that should prepare it in the high-stakes, highly competitive beer industry of the future. It has strong customer loyalty, high awareness, high perceived quality, and credibility. All these factors are combined in the last phrase of veteran industry analyst Robert S. Weinberg's comment: "The brand is strong, the beer is good and they have their own traditions. They have phenomenal ________."

brand equity

which of the following product mix strategies did polaroid use when it set the general price range of its cameras low and the markup on its film high

captive product pricing

customer level

estimates willingness to pay

convenience product

frequent purchase, little planning and buying effort, low price (toothpaste, laundry detergent)

Producers of strong brands sometimes sell to dealers only on the condition that dealers take some or all of the rest of a product line. This practice is known as ________.

full-line forcing

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

growth

Consumers are less likely to use price to judge the quality of a product when they ________.

have experience with the product

__________ pricing involves charging higher prices on an everyday basis but running frequent promotions to lower prices temporarily on selected items

high-low

Conflict that occurs among firms at the same level of the marketing channel is known as ________ conflict.

horizontal

Which of the following is the first step in developing an effective integrated communications and promotion program?

identifying the target audience

Today, most companies are adopting the concept of ________, which carefully combines and coordinates the company's many communication channels to deliver a clear, consistent, and compelling message about the organization and its brands.

integrated marketing communications

which of the following stages of the product life cycle is characterized with high promotional expenditures that result from an effort to create consumer awareness

introduction

line extension

low-cost, low-risk way to introduce new products

Which new product pricing strategy would you use if your market is price-sensitive and your production costs fall dramatically with increased output?

market penetration pricing

which new product pricing strategy would you use if your competitors will be slow to enter and/or you have great image and quality product

market skimming pricing

firm level

market value - book value

A ________ is a set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user.

marketing channel

The AIDA model identifies the characteristics of an effective ________.

marketing message

New Brand Development

may spread it's resources too thin

Which budgeting method entails defining specific promotion goals, determining the necessary tasks, and estimating the costs to determine a promotion budget?

objective-and-task method

Which of the following is a specialized and highly targeted media selection that an advertiser might use to reach smaller customer segments with personalized content?

online social networks

Because of ________, a company cannot make its product illegally similar to a competitor's already established product.

patent laws

design is ______

performance

Encouraging customers to switch brands is most likely the objective of ________ advertising.

persuasive

the __________ concept is aligned with the philosophy of continuous product improvement and the belief that customers will choose products that offer the most in quality, performance, and innovative features

product

Noticing that themed envelopes aren't selling well, Charles Payton decides to offer customers a special "letter writing" kit. He prices the kit—which comprises letter paper, matching envelopes, and pens—at $5, even though the combined prices of the individual items is $8. Which of the following pricing strategies is he using?

product bundle pricing

which of the following product mix pricing strategies involves setting prices across an entire product range based on cost differences between the products, customer evaluations of different features, and cometitors' prices?

product line pricing

industrial products

products purchased for further processing or for use in conducting a business: materials/parts, capital items, supplies

Which of the following promotion tools involves building up a good corporate image and handling unfavorable stories and events?

public relations

Under which promotional mix strategy does the producer direct its marketing activities toward channel members to induce them to carry the product and promote it to final consumers?

pull strategy

Using a(n) ________ strategy, the producer directs its marketing activities toward final consumers to induce them to buy the product.

push

John Deere does very little promoting of its lawn mowers and garden tractors to final consumers. Instead, John Deere's sales force works with Lowe's, Home Depot, independent dealers, and other channel members, who in turn sell John Deere products to final consumers. According to this information, which of the following promotion mix strategies is being used by John Deere?

push strategy

product attributes

quality (performance and consistency), features, style and design

Wal-Mart seems to have discovered that big, heavy apples bring in more revenue when they are sold for prices that look reasonable by the pound. This psychological pricing factor is defined as: "Prices that buyers carry in their minds and refer to when they look at a given product." What is this factor called?

reference prices

Macroenvironment

the larger societal forces that affect the microenvironment -demographics; age, family, geographic, diversity -economic; purchasing power, spending power -natural; environmental sustainability -technological -political; intellectual property rights, food safety -cultural; consumer advocates, anti-agriculture people

strategic planning

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

exclusive distribution

the producer gives only a limited number of dealers the exclusive right to distribute its products in their territories

brand value

the total financial value of a brand

customer lifetime value

the value of the entire stream of purchases that the customer would make over their lifetime

When amusement parks charge customers for admission and later for food and beverages, they are following a ________ pricing strategy.

two-part

A(n) ________ argument is most likely to be effective when the audience is highly educated or likely to hear opposing claims.

two-sided

______________ are consumer products that the consumer either does not know about or knows about but does not normally think about buying

unsought products

exclusive dealing

when the seller requires that the sellers not handle competitor's products