exam 2
Laggards make up roughly ______ of the market.
16%
Why might a firm prefer to manufacture in a country that has a trade surplus?
A trade surplus offers the chance to export to more markets.
A firm that joins with other firms as well as government and educational institutions to research a costly new technology is participating in which of the following?
Research consortium
The complex value chains inherent in global distribution networks include
Wholesalers, Importers and exporters, Transportation systems
A franchise is a contractual agreement between ______.
a firm or individual and another firm or individual
syndicated data
a form of external data that are supplied from a common database to subscribers for a service fee
Early __________ are the category of consumers who begin to use a product or service immediately following innovators.
adapters
Gross domestic product is defined as the total market value of ______ produced by a country in a year.
all goods and services
the firm attempts to determine whether the product will perform according to its design and whether it satisfies the need for which it was intended
alpha testing
what is the fourth step in marketing research process?
analyse data and develop insight
An advantage of secondary data is that, compared to primary data, they ______.
are usually available at a lower cost
Which of the following is a possible advantage for a firm that chooses to use brainstorming for its new products as opposed to other idea generation methods?
The ideas that receive the most votes go to the next stage.
Which of the following factors will most significantly influence the price of a product on the global marketplace?
The local pricing structures of individual markets
When researchers define the objectives and needs of their project, what are they trying to establish?
The problem that needs to be solved
1.Why change product mix breadth?
To capture new or evolving markets, increase sales, and compete in new venues; to address changing market conditions or meet internal strategic priorities.
Using an existing successful brand name for an improved or new product in the product line
Brand Extension Strategy
three components of a product
Core customer value, actual product, and associated services.
of innovation is 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
Diffusion
What is a major benefit of selling the exact same product or service in both the home and host countries?
Establishing strong brand recognition
What is a key characteristic of the maturity stage?
Firms defending market share
Product development entails a variety of processes and considerations to determine which aspects of a product or service?
Form and features
What is a major economic factor that a firm conducting an economic analysis of a country market must take into account?
General economic environment
Which of the following metrics measures a country's economic output?
Gross domestic product (GDP)
facilitate purchasing, establish loyalty, protect from competition, reduce marketing costs, are assets, impact market value
Value of Branding
Which of the following factors is included in gross national income (GNI) but NOT gross domestic product (GDP)? Value of goods produced in a country Value of services produced in a country Income from foreign investments Value of goods imported into a country
Income from foreign investments
firms often add new product lines to capture new or evolving markets and increases sales.
Increasing Breadth
what is defined as the basic facilities, services, and installations needed for a community or society to function?
Infrastructure
Hightower Industries wants to be a pioneering firm in the robotics and artificial intelligence industry. Which strategy is the company most likely to pursue?
Invest heavily in research and development
Firms can highlight a product's relative advantage, which refers to which perception among consumers about the product?
It is better than its substitutes.
______ consists of a set of techniques and principles for systematically collecting, recording, analyzing, and interpreting data that can aid decision makers involved in marketing goods, services, or ideas.
Marketing research
When a firm enters into a joint venture agreement with a local firm, the two investors will then share
Ownership of the firm, Control of business operations, and any profit gained
In distinguishing between firm strategies for developing new products, a pioneer firm will be more likely to rely on its______, whereas a follower firm will be more likely to ______ for ideas.
R&D department; scan the market
Which of the following is an accurate definition of the term data?
Raw numbers with no intrinsic meaning
uses potential consumers, who examine the product prototype in a "real use" setting to determine its functionality, performance, potential problems, and other issues specific to its usebeta testing
beta testing
Products that generate enough revenue to cover the losses from other unsuccessful introductions are known as
blockbusters
refers to a group session in which participants work together to generate new ideas.
brainstorming
what are components of brand equity?
brand awareness, perceived value, brand associations, brand loyalty
when the brand extension adversely affects consumer perceptions about the attributes the core brand is believed to hold
brand dilution
brand awareness, perceived value, brand associations, brand loyalty are components of what?
brand equity
the use of the same brand name for new products being introduced to the same or new markets
brand extension
an agreement whereby a company permits another organization to use its brand on other products for a licensing fee
brand licensing
a strategy in which marketers change a brand's focus to target new markets or realign the brand's core emphasis with changing market preferences
brand repositioning
the variety of different items a store carries
breadth
the practice of using the established brand names of two different companies on the same product
co-branding
what is the third step in marketing research process?
collect data
The step in the marketing research process that follows research design is ______.
collecting the data
is a written description of a product and its technology and is presented to potential buyers or users to obtain their reactions.
concept
product development process step 2
concept testing
products and services used by people for their personal useconsumer products
consumer products
power distance, uncertainty avoidance, individualism, masculinity and time orientation are examples of what?
cultural dimensions
______ are raw numbers, that on their own, have limited value to marketers. Multiple choice question.
data
The second step in the marketing research project involves design. In this step, researchers identify the type of ______ needed and work out the type of ______ necessary to collect it.
data, research
The analyst prepares the results to present them to a firm's ______ as a final step in the marketing research process.
decision makers
what is the first step in marketing research process?
define objectives
the number of categories within a product line
depth
what is the second step in marketing research process?
designing research
what is the fifth step in marketing research process?
develop and implement data
A joint venture is formed when a firm ______ a new market and ______ its resources with those of a local firm to form a new, shared company.
enters; pools
1. Satisfaction of technical requirements 2. Customer acceptance 3. Satisfaction of the firm's financial requirements
evaluation of results
product development process step 6
evaluation of results
Because research is ______, it is important to figure out beforehand exactly what problem needs to be solved.
expensive and time-consuming
Product Development Process step 1
idea generation
Global distribution networks form complex value chains that ultimately ______ the final selling price of a product.
increase
firms might add items to address changing consumer preferences or to preempt competitors while boosting sales
increasing depth
is the process by which ideas are transformed into new products and services that will help firms grow.
innovation
While the Blank______ is first to adopt the item, the Blank______ adopts next.
innovator; early adopter
characterized by slow sales growth, lack of profits, high expenses of promotion, selective distribution, and few competitors. The per-customer cost is high at this stage.
introduction
An exchange rate quantifies how much a currency ______.
is worth in relation to another
During the decline stage of the product life cycle, ______ who have not yet tried the product or service will be entering the market for the first time.
laggards
consumers who like to avoid change and rely on traditional products until they are no longer available
laggards
When the innovator ________ majority of consumers enters the market, the market has already reached its full market potential.
late
the last group of buyers to enter a new product market
late majority
innovative product users who modify existing products according to their own ideas to suit their specific needs
lead users
Exporting is an entry strategy that requires the _____ financial risk and allows a(n) _____ return to the firm.
least; limited
When entering their first foreign markets, firms typically take a(n) ______ approach.
less risky
Firms purchase the rights to technology or ideas from other research-intensive firms.
licensing
In a ______ agreement companies buy the rights to use technologies from another company
licensing
product development process step 4
market testing
the stage of the new-product process that exposes actual products to prospective consumers under realistic purchase conditions to see if they will buy
market testing
collecting, interpreting, analyzing data
marketing research
During the ______ stage of the product life cycle, the market for the product usually becomes saturated.
maturity
Total industry sales slow, and marginal competitors begin to leave the market. Sales increase at a decreasing rate, and most consumers who would buy the product are either repeat purchasers of the item or have tried and abandoned it. Fewer new buyers enter the market. Marketing actions are focused on maintaining market share through product differentiation and finding new buyers.
maturity
When adopting strategies for entering a new market, many firms follow a(n) approach that morphs and becomes ______ over time.
more risky
The marketing strategy a firm chooses when entering a new foreign market depends on the ______ of the target consumers.
needs
Gross national income consists of GDP plus ______, without including any payments made to those who do not live in the country but who contribute to the domestic economy.
net income earned from investments abroad
the process of examining consumers' brain patterns to determine their responses to marketing communications, products, or services for the purpose of developing marketing tactics or strategies
neuromarketing
Marketing managers can choose between three possible global ______, which range from selling the same product to introducing an entirely new product.
product strategies
In the second step of the marketing research process, what factor determines the type of data needed?
project objective
an original model on which later versions are patterned
prototype
product development or porduct design uses
prototype, alpha testing, beta testing
product labeling
provide information the consumer needs for his or her purchase decision and consumption of the product
Observation, in-depth interviews, focus group interviews, and social media are what types of research?
qualitative
Experiments, survey, scanner, and panel are types of what research
quantitative
changing customer needs, market saturation, managing risk through diversity, fashion cycles, improving business relationships
reason to innovate
The ______ department can be considered an investment into a company's future, in which scientists work to solve problems and develop new ideas.
research and development
The last phase of the marketing research process is presenting ______ to decision makers.
results
Direct investment exposes a firm to ______ risk.
significant
internal R&D, R&D consortia, licensing, brainstorming, outsourcing, competitors' products, customer input
source of ideas
items that the consumer makes a special effort to search out and buy
specialty products
What are the four types of consumer products?
specialty, shopping, convenience, unsought
defining objectives and needs, designing the research, collecting data, analyzing data and developing insights, developing and implementing an action plan
stages of marketing process
If a media company wants information on consumers' television viewing habits, it can purchase reports compiled by commercial research firms such as Nielsen. This is an example of ______ data.
syndicated
Marketers can purchase ______ data, which are secondary data available for a fee from commercial research firms.
syndicated
A(n) ______ is a tax levied on a good imported into a country.
tariff
A tariff is a ______ imposed on a product imported into a country.
tax
When Burger King introduced the new Whopper Bar to a limited geographic area prior to a national launch, it was engaging in
test marketing
Cannibalization
the loss of sales of an existing brand when a new item in a product line or product family is introduced
In most situations, data collection should begin only after ______.
the research design process is finished
product development process step 5
product launch
product development process step 3
product development
are consumers who like to avoid changes and rely on traditional products until they are no longer available.
Laggards
Hiring an outside firm to help generate ideas and develop new products and services.
outsourcing
Direct investment requires a firm to maintain ______ ownership of its facilities, offices, and plants in a foreign country
100%
-Lower costs and risks -Benefits spread to all firms
R&D consortia
What is the most common method of introducing a product or service outside of the home country?
Selling the same product or service in the home country and host country
Which of the following is a market entry strategy in which independent companies form a partnership to collaborate in the foreign market but do NOT invest in each other?
Strategic alliance
establish new market or radically change competition and consumer preferences
pioneers
Brands developed and marketed by a retailer
private-label brands
One disadvantage of secondary data is that ______.
they may not be exactly what the research project requires
While late to the party, the late majority category of consumers is still significant, making up roughly Blank______ of the total consumer market.
34%
True or False: Brazil is currently in the top ten of the world's largest economies.
true
When firms decide to develop new products, it is typically a long process that is broken into______ stages.
6
What are the four stages that a product passes through as it enters, gets established in, and ultimately leaves the marketplace?
Decline Introduction Growth Maturity
are those buyers who want to be the first on the block to have a new product or service.
Innovator
Suppose you work in the marketing department of a company and your boss, the marketing manager, asks you to take on a marketing research project. "But I'm not giving you any money for data collection," your boss says. "You can just use secondary data; they can meet all our needs and we can get them for free." Which of the following is the best argument against your boss's decision not to give you any funds for the research?
Secondary data may not be specific enough to meet the needs of the research.
What does a trade deficit signal to economic analysts?
Strong competition from foreign producers
Which of the following is a market testing method that offers a strong predictor of product success based on actual purchasing behavior?
Test marketing
defines the stages products move through as they enter, get established in, and ultimately leave the marketplace.
The product life cycle
If a laundry soap manufacturer decides to introduce in a developing country a detergent that requires far less water than the detergent it sells in its home country, which global product strategy is the company using?
Totally new product or service
What can marketers learn from the diffusion of innovation theory?
Which markets are likely to be most receptive to new products or services, The rate at which consumers are likely to adopt a new product or service
A good or service may pass through many stages as it establishes itself in the marketplace. Marketing managers refer to this as the product _______ cycle
life
the use of the same brand name within the same product line and represents an increase in a product line's depth
line extension
-Introducing a new version of the product in the same product class. -Lowers advertising and promotion costs because the same brand is used on all items. -Risks product cannibalism -Responds to customers' desire for variety
line extension strategy
a group of closely related product items
product line
items for which the consumer compares several alternatives on criteria such as price, quality, or style
shopping products
True or False: If market testing returns with positive results, the firm is then ready to introduce the product to the entire market, which is called a product launch.
true
items that the consumer does not know about or knows about but does not initially want
unsought products
Firms that collect a large amount of customer information and purchase history store it in large computer files called data _________.
warehouses
The early majority represents approximately ______ of the total consumer market and is crucial to the profitability of a product or service. Without them, the product or service will typically fail. Multiple choice question.
34%
-High product development costs -Often the source of technological products -Often the source of breakthrough products
Internal R&D
is an agreement through which one firm buys the rights to use the technology or ideas of another research-intensive firm.
Licensing
The stages through which goods and services move from the time they are introduced on the market until they are taken off the market
Product Life Cycle
data gathered by evaluating customer comments posted through social media sites such as Facebook and Twitter
data gathered by evaluating customer comments posted through social media sites such as Facebook and Twitter
Global marketing strategies includes two elements: identification of the target markets and ______.
developing a competitive marketing mix
Relative advantage, compatibility, complexity, and trialability enhance what?
diffusion of good
The theory that helps marketers understand the product or service adoption rates of consumers is called Blank______.
diffusion of innovation
a product diffuses, or spreads, through the population
diffusion of innovation
Along the diffusion of innovation curve, Blank______ make up the second group of consumers to adopt an innovation; they tend to be leaders in a social setting.
early adopters
The_________ _____________ of users representing approximately 34 percent of the population on the diffusion of innovation curve is crucial because few new products and services can be profitable until this large group buys them.
early majority
individuals who adopt a new product just prior to the average person
early majority
The most common method of evaluating the economic health of a country is to use metrics that measure the country's ______
economic output
A country with a trade surplus ______.
exports more goods than it imports
The global population has only experienced negative population growth since the turn of the 20th century in both less developed nations and developed countries.
false
A strategic alliance is a type of ______ firms use to expand into the foreign market.
global entry strategy
When a firm decides to standardize its products globally but use different promotional campaigns, this strategy is referred to as ______.
glocalization
The total market value of all goods and services produced by a country in a year is known as the country's ______.
gross domestic product
Usually, during the ______ stage of the product life cycle, the typical consumers are early adopters, and there are increases in the number of competitors.
growth
Characteristics: •Rapid increases in sales •Competition appears •Profit peaks •Advertising shifts to selective demand. •Sales grow at an increasing rate because of new people trying the product and repeat purchasers bought again. •Changes appear..."New and Improved!"
growth stage
Prices are often different in the global marketplace than they are in the home country because a firm's products may NOT Blank______.
have the same positioning as they do in the home country
A trade deficit means that a country ______
imports more goods than it exports
Licensing is a trade-off in that it can save a firm from the high costs of in-house R&D, but instead the firm is counting on a solution (product) that already exists but has not been
marketed
Attracts the consumers' attention. Enables products to stand out from their competitors. Allows for the same product to appeal to different markets with different sizes. A recent development is sustainable packaging.Key roles of packaging
packaging
The components of a country market assessment include all of the following EXCEPT ______ governmental actions sociocultural analysis pricing and product decisions infrastructure and technology
pricing and product decisions
If a firm has positive results from market testing, the next step will be the
product launch
New product and service innovation is important because the longer a product or service exists in a given marketplace, the more likely that the market will become ___________
saturated
Whenever you go into your local grocery store, your purchases are rung up using hardware that is a ______ system. The data from these purchases are likely to be acquired by leading marketing research firms.
scanner
When you make a purchase at a grocery store, the ______ are often collected by marketing research firms to help understand consumers' purchasing behavior.
scanner data
Exporting happens when a firm produces a product in its domestic plants and then ______.
sells it in a foreign country
the problem with using the product life cycle concept is that no one can predict the shape that the product's life cycle will take; therefore, it is impossible to know
which stage the product is in