Market Research Comprehensive

Market myopia

Paying more attention to products instead of the benefits produced

Define quota sample

People are selected for some certain characteristics

Exchange

The trading of things of value between buyer and seller so that each perceives him or herself as better off after the trade.

Societal responsibility

obligations that organizations have (1) to the preservation of the ecological environment and (2) to the general public

When an organization attempts to control its marketing activities, it may find it difficult to

obtain the necessary information.

cause marketing

occurs when the charitable contributions of a firm are tied directly to the customer revenues produced through the promotion of one of its products

Closed-ended questions

offer two or more choices as answers

Primary Demand

One possible objective of promotional communications, designed to stimulate desire for a general product category.

In defining a market segment, marketers look for segments that are (A) substantial and homogeneous within (B) substantial and well defined (C) heterogeneous in relation to other segments and well defined (D) operational and at a certain income level (E) well defined and operational

(A) substantial and homogeneous within... The five factors that marketers look for in determining whether a market segmentation is worthwhile pursuing are whether it is substantial, homogeneous within, heterogeneous in relation to other segments, accessible, and operational.

POES Model

(Derived from "Paid, Owned, Earned, Shared") A framework that assigns message channels to one of four quadrants based on ownership and control.

click-through rate

(the number of times an ad is clicked on) divided by (the number of times an ad is shown)

List some ways of how to make market research more accurate

- A sample needs to be truly representative of the total population, hence a quota sample is normally used. - The larger the sample, the more accurate the results. - Questionnaires need to be tested on a small group of people to see if there are misinterpretations. The questionnaires will be modified to be as clear as possible.

Disadvantages of syndicated data

- Buyers have little control over what information is collected. - Firms often must commit to long- term contracts when buying syndicated data. - No strategic information advantage exists in purchases syndicated data.

External Data (Secondary Source Data Collection)

- Census, periodicals, library, government, reports, etc.

Classifications of secondary data

- Internal secondary data: are data that have been collected within the firm, such as sales records, purchase requisitions, and invoices. are usually used for database marketing. - database marketing: is the process of building and maintaining customer( internal) databases and other( internal ) databases for the purpose of contracting, transacting, and building relationships. EX: CRM and data mining.

What are the external sources of information?

- Internet: gives all sorts of information, but the info must be validated. - Trade and employer associations: gives info about things in an industry. - Specialist journals. - Research reports. - Newspapers: about the economy and disposable income of workers. - Government reports and statistics: contains things such as age groups and culture. - Media reports. - Market research agencies' reports: detailed reports on the economy. Expensive to buy.

Marketing applications of packaged information

- Measuring consumer attitudes and opinions - Market segmentation - Monitoring media usage and promotion effectiveness * Monitoring consumer buzz or consumer generated media ( CGM) * Monitoring and effectiveness of print media * market tracking studies: - Nielsen tracking studies are longitudinal studies that monitor a variable , such as sales or market share, over time.

What are the different ways to carry out primary research?

- Questionnaires - Interviews - Consumer panels - Observation - Experiments

Advantages of packaged services

- The experience of the research firm offering the service. -Reduced cost of the research - Speed of research service

What is market research used for?

- To find out what feature of the product do they like/dislike? - If people are willing to buy the product? - To find out what price are people prepared to pay? - Finding the location of the selling point of the product. - What type of customer who buys the product. - What type of promotion that will be effective. - To see what the competitor is like (in the same industry)

Marketing Information Systems

- Used for ORGANIZING data - Framework for managing and structuring information gathered from internal and external sources.

How to evaluate secondary data?

- What was the purpose of the study? - Who collected the information? - What information was collected? - How was the information attained? - How consistent is the information with other information?

According to the text, the 80/20 rule suggests that

80 percent of profits come from 20 percent of customers.

Which of the following can be branded? (A) Person, product, service, and value (B) Person, product, place, and service (C) Product, place, and service (D) Value, product, place, and service (E) Quality, value, product, and service

A brand may be a person (celebrity), product (autos), place (theme park), or service (accounting company) that buyers perceive as having unique added values that match their needs more than competitors, so choice B is correct.

A manufacturer of which of the following products would adopt an undifferentiated marketing strategy for its launch? (A) DVR (B) Low-end children's clothing (C) E-reader (D) Cookies made with organic products (E) Bread

A manufacturer of bread, choice E, is most likely to adopt an undifferentiated marketing strategy to launch its new product.

List Price

A manufacturer's, distributor's, or retailer's quoted, published, or displayed price on which discounts are computed. Also called manufacturer's suggested retail price (MSRP).

Marketing

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

Frequency Marketing

A program that encourages multiple transactions, designed to move customers toward that deep sense of loyalty.

Trade Allowances

A promotional strategy involving financial incentives to channel partners to purchase or promote specific offerings.

Define random sample

A random number of people are selected.

Volume Maximization

A strategic approach in which a company's primary objective is to generate as much sales volume (and revenue) as possible over a short time frame.

13. One way that product/service management benefits marketing is by helping to decrease A. business risk. B. profits. C. sales. D. financial success.

A. business risk.

43. In order for a market to exist, consumers must have an unfulfilled desire for a product and A. have financial resources. B. know where the product is sold. C. know who makes the product. D. have a specific brand preference.

A. have financial resources.

4. Businesses often use promotional campaigns to create or improve their A. image. B. credit. C. safety. D. displays.

A. image.

47. One of the main reasons for developing a marketing plan is to identify the strategies necessary to achieve the marketing A. objectives. B. functions. C. mix. D. share.

A. objectives.

41. Scuba diving gear is an example of a product that would be marketed to a(n) __________ market. A. specific B. general C. mass D. unlimited

A. specific

Strategic planning

Align organization's goals and capabilities with a changing market conditions

Product Placement

An advertising technique used to subtly promote products through appearances in film, television, or other media, or prominent display at consumer events.

The cartridge and paper kit that is sold with a photo printer is called what kind of product? (A) Alternate (B) Ancillary (C) Substitute (D) Reserve (E) Customized

An ancillary product is one that is sold with the core product, so choice B is correct.

Predictive Models

Analytic routines that attempt to guess the probability of an outcome given a set of input data.

Ask what to know to make a good decision

Assess information needs

Interpreting Research Findings

Statistical Interpretation, careful interpretation, understand & relate results

17. Channels of distribution are necessary for the sale of goods and services to ultimate A. wholesalers. B. consumers. C. retailers. D. sales agents.

B. consumers.

23. When companies increase the quality of materials used in the production of their products, their prices will tend to be A. the same. B. higher. C. lower. D. reduced.

B. higher.

19. Wal-Mart, Domino's Pizza, and Avis Rent-a-Car are examples of A. industrial distributors. B. retailers. C. agents. D. wholesalers.

B. retailers.

27. The way in which the promotional message is communicated should be A. selected by the market. B. suited to the product. C. different each time. D. the same in each case.

B. suited to the product.

A store advertises that for one day only a particular brand of refrigerator is 70 percent off. When customers get to the store, they find that the refrigerator is half-sized. This is an example of (A) upselling (B) cross selling (C) false advertising (D) bait and switch (E) trade promotion

Bait and switch, choice D, occurs when retailers offer a product at a very low price, in a very limited quantity, or of inferior quality to get customers into the store with the intention of selling them a higher priced product. Besides being unethical, it is illegal.

48. Why do businesses develop marketing plans? A. To provide quality service B. To expand the distribution system C. To attract the target customer D. To prepare a revenue statement

C. To attract the target customer

20. Where does a channel of distribution begin? A. With the industrial user B. With the ultimate consumer C. With the producer D. With the intermediary

C. With the producer

21. Can prices be set too low? A. Yes; customers may feel quality is too high. B. No; the lower the price, the more willing the customer is to buy. C. Yes; customers may feel quality is too low. D. No; the lower the price, the greater the product's appeal.

C. Yes; customers may feel quality is too low.

10. One basic requirement of a marketing-information management system is that it should be able to A. operate only when needed. B. be used by all personnel. C. gather, access, and evaluate data. D. discard data after they are analyzed.

C. gather, access, and evaluate data.

28. One of the reasons for using promotion is to __________ goods and services. A. guarantee B. deliver C. help sell D. display old

C. help sell

In a traditional organization, marketing decisions are likely to be

centralized at the top levels of the organization.

16. A short channel of distribution will probably be used by a producer that A. lacks sufficient funding. B. wants to share the costs of distribution. C. wants channel control. D. does not have its own sales force.

C. wants channel control.

Interpretation and presentation of results

Collected data must be analyzed, interpreted and presented to decision-makers who charged the researchers

Step 3

Collecting Data

Highlighting how much better the company's product is over the competitors' is an advertising strategy for which stage of the product life cycle? (A) Development (B) Introduction (C) Growth (D) Maturity (E) Decline

Competitive advertising is typically a feature of the maturity stage of the product life cycle, choice D.

Threats

Competitors, Regulators and Customers

Threats

Current and emerging external factors that may challenge the company's performance.

database marketing

Customer Relationship Management (CRM)

22. In which of the following businesses would a separate department most likely be responsible for establishing prices: A. Small boutique B. Local clothing store C. Hair salon D. Chain store

D. Chain store

8. Which of the following is a reason that marketers gather information: A. Competition in general has decreased. B. Today's consumers are easy to please. C. Marketers are decreasing their geographic scope. D. The marketing environment is constantly changing.

D. The marketing environment is constantly changing.

25. Which of the following costs do businesses usually include in the price of their products: A. Orientation B. Inflation C. Regulations D. Transportation

D. Transportation

38. A marketer who changes the product element in the marketing mix should re-evaluate the other marketing elements because the elements are A. detached. B. independent. C. unique. D. interrelated.

D. interrelated.

29. Consumers may be hesitant to believe information in ads for a good or service because advertising A. is directed toward a mass audience. B. is intended to be misleading. C. raises the price of the product. D. is necessarily biased.

D. is necessarily biased.

5. A business that sends discount coupons to potential customers is using the __________ function of marketing. A. product/service management B. financing C. selling D. promotion

D. promotion

31. Selling that meets customers'/clients' needs contributes to the A. relative price of products. B. national debt. C. size of the target market. D. success of the business.

D. success of the business.

Secondary Data

Data that already exists. Advantages - Cheap, fast, multiple perspectives. Downside- Not private, may not fit needs, Data collection procedures (can you trust?).

External secondary data

Data that resides outside the firm.

Marketing Research

Design, collection, interpretation, and reporting of not currently available information to solve specific marketing problems

Step 2

Designing the research project =Research design: An overall plan for obtaining the information needed to address a research problem or issue.

Demand

Desire for certain goods or services supported by the capacity to purchase them.

When moving into international markets, businesses are likely to face customers....

For whom they have little infor or experience

Reporting Research Findings

Determine level of detail, clear, objective

Relationship Marketing

Development and maintenance of long-term relationships with individual customers, suppliers, and other partners for the benefit of all.

Market Segmentation

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

Which is not one of the factors that should be ocnisdered when deciding wheter to use markeing reserach?

Do dicision makers believe that they have enough knowledge and experience to make the decision?

Speciality-line Research firm

Do special research in chosen areas of interest that are marketable enough to be sold commercially to anyone (person or organization) that may have interest in the topic

bias

Encouraging one response or outcome over another

A cosmetics ad that highlights the wrinkle erasing and skin brightening powers of the product is using what kind of appeal? (A) Scarcity (B) Youth (C) Snob (D) Humor (E) Social

Erasing wrinkles and brightening skin are both qualities that promise a youthful appearance, so choice B is correct.

In which of the following forms of pricing does a manufacturer pay no shipping costs on goods being sent to distributors? (A) FOB (B) Freight absorption pricing (C) Allowance (D) UDP (E) Zone pricing

FOB stands for free on board; the manufacturer pays no shipping costs to transport product to distributors who pay the shipping charges, so choice A is correct.

True or False:The marketing reseracher completing the study are the ones who make final decisions about solutions for a business

False

Four Utilities of Customer Value

Form, Time, Place, and Ease of Possession; aspects of a company's offerings that are useful (provide utility, hence the name) to customers. Buyers think of these aspects as purchase criteria that a product or service must meet in order to deliver value.

Marketing Intelligence System

Gathers relevant information from outside of the organization

a. Customer Satisfaction b. Perceived value c. Customer relations

How do you build profitable relationships and create customer delight?

1. Harness Technology 2. Manage global markets 3. Ensure ethics and social responsibility

How to achieve the 5 steps

Marketing Process or Marketing Mix

Includes the following: 1. Pricing 2. Promotion 3. Product and Service Management 4. Place (Process of Origin and Distribution)

Marketing Analytical Systems

Includes the mathematical tools and models the may be developed and used in order to predict future real world outcomes

Influencers are important to marketers for all of the following reasons EXCEPT that influencers (A) are early adopters and trendsetters (B) have large social networks (C) have money (D) are respected (E) are socially active in their communities and various movements and organizations

Influencers do not necessarily have money, so choice C is correct.

Media Coverage

Information presented in mass media about a company by reporters; may result from public relations activity.

Input

Information that goes into the system that is needed for decision making

Strengths

Internal capabilities that may help a company reach its objectives.

Weaknesses

Internal limitations that may interfere with a company's ability to achieve its objectives.

Step 4

Interpreting research findings

Which of the following is not a characteristic of a marketing objective?

It clearly identifies how marketing strategy will be implemented.

Line

Laborers

Desires

Longings or cravings, as for something that brings satisfaction or enjoyment; expressed wishes (as opposed to needs).

Dogs

Low-growth, low-share businesses and products. They may generate enough cash to maintain themselves but do not promise to be large sources of cash.

Selective Demand

One possible objective of promotional communications, designed to stimulate desire for a specific brand within a product category created through differentiation. Also called secondary demand.

What type of questions identify the problem or are completing a situational analysis?

Open-ended questions

If you were a marketing manager, under which type of organizational structure would you most likely be working if your firm were a large business with centralized marketing operations?

Organization by function

Designing Research

Overall Plan, Hypothesis

Descriptive survey/research methods

Personal interviews (most expensive), Telephone surveys, mail surveys (slowest least expensive), online surveys.

Affinity Marketing

Programs that leverage customers' ties to institutions and concepts they hold dear, designed to move customers toward that deep sense of loyalty.

Does the research technique consistently measure the true opinions and behavior of the respondent?

Reliability - a measure of the stability or consistency of customer responses. (measure same question repetitive) Validity- the relevance of the measure. Valid?

Quantitative research

Sampling and Questionnaire design.

Test Market

Specific citites or geographic areas in which marketing experiments are conducted

The Internet has facilitated the place function of the marketing mix by (A) reducing costs involved in customer service (B) speeding the automated delivery of orders and invoicing (C) providing information on customer needs and wants without using costly research methods (D) offering coupons and other discounts (E) continually updating advertising information and online catalogues

Speeding the automated delivery of orders and invoices, choice B, typically facilitates the place function for companies.

Mission statement

Statement of the organization's purpose (Always from the view of the customers)

Which of the following statements is incorrect?

Strategic planning begins at the marketing level and proceeds through business-unit and corporate levels.

Field

Subcomponents of information composing: 1. brand 2. color. 3. year. 4. model

polls

Surveys of people's opinions

Advertainment

Term coined for advertising that entertains, usually by relating a dramatic narrative or by engaging consumers in an interaction, such as a game.

Data Cleansing

The act of detecting and correcting (or removing) corrupt or inaccurate records from a record set.

Price Sensitivity

The amount by which changes in a product's cost tend to affect consumer demand for that product.

Analysis

The process of summarizing, comparing, or comving information so that decisions can be made

The ability to "name your own price" online for airline tickets and hotel rooms is an example of (A) supply pricing (B) price-setting power (C) condition pricing (D) dynamic pricing (E) situational pricing

The use of dynamic, or variable, pricing is a characteristic of e-commerce, so choice D is the correct answer.

To get a consumer to go from ignorance about a product to motivated, the marketer must move the consumer through which of the following stages? (A) Intentionality (B) Action (C) Interest and action (D) Awareness and interest (E) Awareness

This question is based on the hierarchy of advertising effects; advertising should take the consumer from ignorance to awareness to interest to motivated, so choice D is the correct answer.

Advertising Media

Traditional paid vehicles by which promotional messages are communicated to the public, such as newspaper, radio, and television.

a. Secondary Data/Already existing b. Primary Data - Relevant but costs a lot c. Commercial/online data d. Megadata - Already know what trends are e. Focus group - Intimate, you can ask questions about product f. Relative sample - Take one because you can't ask the whole world

Types of Data

Providers of secondary data

U.S. Census Bureau, American Demographics, The Government Printing Office, The Library of Congress, Statistical Abstract of the United States, Transcripts of industry studies undertaken by the Federal Trade Commission, the Justice Department, and the U.S. International Commission.

Marketing Information systems

UPC scanner - collecting data

Example of open-ended question

What are the most important features of this product?

When you want something and can afford it i. Also called buying power ii. Adjust price to adjust size of market

When is demand created

2. W___ collected the information? Check competence of firm and the methodology used.

Who

Example of close-ended question

Yes or No

The process of putting marketing strategies into action is called a) marketing implementation. b) marketing control. c) marketing action. d) marketing auditing. e) the marketing action plan.

a

The time lag between the performance of marketing activities and their results a) limits the marketing manager's ability to measure the effectiveness of marketing activities. b) facilitates the ability to measure performance. c) increases the chance of accurate measurement.

a

To formulate a marketing strategy, one must a) identify and analyze a target market and develop a marketing mix to satisfy individuals in that market. b)develop a statement of what is to be accomplished through marketing activities. c) develop plans for implementation and control. d) develop an adequate marketing control process.

a

database

a computerized collection of related information about a specified topic

code of ethics

a formal statement of ethical principles and rules of conduct.

marketing information system (MkIS)

a formalised set of procedures for generating, analysing, storing and distributing pertinent information to marketing decision makers on an ongoing basis - internal records + external market information = MkIS

According to the text, a market is defined as

a group of individuals and/or organizations that have needs for products in a product class and have the ability, willingness, and authority to purchase these products.

When Opryland Hotel wants to have at least 90 percent of its customers indicating they had a memorable and satisfying experience at the hotel, this is an example of

a marketing objective

cookie

a small data file that is placed on the hard drive of a web site visitor

SWOT analysis

an overall evaluation of the company's Strengths (S), weaknesses (W), opportunities(O), and threats (T).

Descriptive -Longitudinal Research

addresses customer responses over a period of time. (ask how u like csu over time- fresh, soph, junior, senior)

Descriptive - Cross- sectional research

addresses customer's responses at a specific point in time. (how happy are you today)

Customer relationship management is facilitated by gathering useful data from

all customer-contact points.

Population

all of the people in the group the company is interested in studying

forced-choice questions

allows customers to choose answers

The strategic planning process begins with

analysis of the marketing environment.

data

another term (vocabulary word) for facts

Non probability samples

are arbitrary sampling techniques where respondents have an unknown or zero chance of being chosen for the sample.

A competitive advantage that cannot be readily copied by the competition is referred to as a (n) __________ advantage. a) controllable b) sustainable c) noncopyable d) effective e) implementable

b

A firm's unique symbols, personalities, and philosophies comprise its a) corporate persona. b) corporate identity. c) corporate character. d) CEO's identity. e) ethics.

b

Which of the following is the most specific and detailed type of business strategy? a) business-unit b) marketing c) corporate d) customer service e) tactical

b

If Apple measured and evaluated the quality of its goods, services, and processes as compared with those of the best-performing companies in the computer industry, it would be employing

benchmarking

The term "______" describes measuring and evaluating a firm's quality in products and processes against industry leaders.

benchmarking

A __________ is created when a company matches its core competency to opportunities it has discovered in the marketplace. a) market opportunity b) market requirement c) competitive advantage d) strategic window

c

A __________ is something that an organization does extremely well and may give a company an advantage over its competition. a) benchmark b) sustainable competitive advantage c) core competency d) strategic vision

c

An appliance manufacturer that sells to large retail stores, wholesalers, and institutions would probably organize its marketing unit on the basis of a) subregions. b) national divisions. c) types of customers. d) functions. e) products.

c

For marketing implementation to be successful, the needs of _________ customers must be met. a) external b) internal c) both internal and external d) planned e) both planned and realized

c

Suppose a customer calls Ann's office at Frito-Lay in Atlanta. The customer has a friend in Seattle who was just telling her about a new snack Frito-Lay has introduced that is selling rapidly. Ann's office does not market this product, and at the present knows very little about it. Based on this information, this firm is most likely organized according to which of the following? a) Function b) Product c) Region d) Customer e) Market

c

The questions "Who are our customers?" and "What is our core competency?" are answered in the firm's a) business plan. b) strategic window. c) mission statement. d) market opportunity statement. e) marketing plan.

c

When an organization attempts to control its marketing activities, it may find it difficult to a) determine their effect on sales volume. b) use the information it collects. c) obtain the necessary information. d) get the accounting department to cooperate. e) develop a marketing plan.

c

At Mrs. Fill's Cookie Co., top-level managers delegate very little authority to lower-level employees. Mrs. Fill's is a(n) ___________ organization.

centralized

Experiments

carefully designed and controlled situations in which all important factors are the same except the one being studied.

According to the Boston Consulting Group, marketers may classify their products as all of the following except

cash contributors.

What is Databases?

collection of information arranged for easy access and retrieval.

Observation

collects information by recording actions without interacting or communicating with the participant.

moral philosophy

comes from: friends/family formal education influenced by: societal, business, and corporate culture

Profit responsibility

companies have a simple duty: to maximize profits for their owners or stockholders

business cultures

comprise the effective rules of the game, the boundaries between competitive and unethical behavior, [and] the codes of conduct in business dealings

exploratory research

conducted when a business is unaware of the exact problem

Sustainable development

conducting business in a way that protects the natural environment while making economic progress.

All marketing mix decisions must have two characteristics: ___________ and ___________.

consistency; flexibility

It's a specific process to profile e.g. Neighbourhoods and ensures c_________________ measured data.

consistently

Electronic marketing has greatly improved the ability of marketers to target individual customers. As a result, many feel that marketing's emphasis is shifting from share of market to share of

customer

Marketing managers can take each of the following corrective actions for reducing a discrepancy between established performance standards and actual performance except

coordinating a new step in performance analysis.

A __________ is something that an organization does extremely well and may give a company an advantage over its competition.

core competency

___________ strategy determines the means for utilizing resources in the functional areas of marketing, production, finance, research and development, and human resources to achieve the organization's goals.

corporate

A firm's unique symbols, personalities, and philosophies comprise its

corporate identity

Borders Books uses technology to help them identify specific customers, establish interactive dialogues with them to learn about their needs, and combine this information with their purchase histories to customize products to meet those needs. Borders Books is using the _____ approach.

customer relationship management

Disadvantages of Standardized Services are there's little c_____________________, and it may not fit the situation you're testing for.

customization

The Boston Consulting Group's matrix is based on the a) idea that a firm's market share and market attractiveness are the important factors for a marketing strategy. b) assumption that a firm's actions have a profitable impact on marketing strategy. c) business position and market attractiveness of the firm. d) philosophy that a product's market growth rate and its market share are important determinants of its marketing strategy. e) idea that a product's market growth rate and market attractiveness determine the marketing strategy.

d

The employees of Zingerman's Deli are its ______ customers. a) external b) extended c) intended d) internal e) domestic

d

Lo2: Discuss advantages and disadvantages of secondary d_____ .

data

Secondary Data

data gathered from outside the organization for some future purpose -This is more cost effective because someone else has done the research.

Point of Sale Research

data on purchases combined with interviews, observations, or surveys

secondary data

data that already exists, being used for a second purpose

External databases

databases supplied by organizations outside the firm, such as online information databases( e.g., IBISWOrld, Factiva, ....)

The Acme Corporation is expanding operations into countries outside the United States. To improve local managers' responsiveness to local conditions, Acme's senior management has decided to delegate decision-making authority further down the chain of command. Acme is

decentralized

marketing research process steps

defining the problem, develop an approach to the problem, formulating a research design, data collection, preparing and analysing data, preparing and presenting report

What are the characteristics of Descriptive Research?

demands prior research assumes problem is clearly defined may require statistical analysis

Key factors in determining the best organizational structure for a marketing unit are the

diversity of the firm's products and the characteristics and needs of the people in the target market.

Quota Sampling

divide population into groups and then choose from each group, no similarities in groups

Step 6: Report your results and it's important to report back, and d_____________ properly. (You can check with the rubric Maria provides.)

document

Products that have a relatively low market share and low prospects for growth are considered by the Boston Consulting Group to be

dogs

right to choose

don't limit the number of new products available to consumers

descriptive research

done when the business is aware of the problem that needs to be solved

market research

gathering, recording, and analyzing information about consumer behavior and sales

factors in preparing and analysing data

editing responses, verification for accuracy, statistical analysis, interpretation of results

When e_____________ secondary data you need to answer 5 key questions!

evaluating

A marketing plan usually begins with a(n)

executive summary

Secondary Data is f___, easy access via Internet and virtually always a part of research projects

fast

Internal databases are compiled by the f____ and customer relationship management uses them extensively

firm

Filter question

guides respondents to answer only questions that apply

Stars

high-growth, high-share businesses or products. Need Heavy investments to finance rapid growth. Eventually slow growth until they turn into cash cows.

Societal marketing Concept

i. Relationships with everyone ii. Key is long term relationships and benefits

what is marketing research

identification, collection, analysis, dissemination and use of information to improve decision making for problems in marketing

To formulate a marketing strategy, one must

identify and analyze a target market and develop a marketing mix to satisfy individuals in that market.

two broad types of research

identify problems, solve problems

The first step in the marketing research process it to ...

identify the problem

right to safety

industry and federal safety standards for most products sold in the United States.

The advantages of secondary data is that it's quick to obtain, i_______________ compared to primary data and generally widely available.

inexpensive

3. What i________________ was collected? It may not be accurately represented.

information

Secondary data

information already collected for another purpose that can be used to solve the current problem

Primary data

information collected for the first time to solve the problem being studied

Internal information

information developed from activities that occur within the organization

In essence, all organizations have two types of strategy: ___________ is the strategy that the organization decides on during the planning phase, and ___________ is the strategy that actually takes place.

intended strategy; realized strategy

Decision Support Systems

interactive, flexible information system that enables managers to obtain and manipulate information as they are making decisions

The employees of Zingerman's Deli are its ______ customers.

internal

___________ refers to the coordination of internal exchanges between the organization and its employees to better achieve successful external exchanges between the organization and its customers.

internal marketing

marketing information issues

international marketing research must recognize differences in culture, social media's told is significant, ethics in marketing research

Types of secondary data include, sales records, i_____________ and more

invoices

Storage

involves the resources used to maintain information, including equipment and procedures, so that it can be used when needed

Record

is a unit of information in a database.

Casual Research

is used when the research question specifically hypothesizes that X "causes" Y. (what happens if you play faster music? lights? heat?) Least likely used. - experimentaal

A disadvantage of organizing a firm's marketing unit by products is that

it can be rather expensive.

caveat emptor

let the buyer beware

Proximity operators: are adjoining words, truncation and nesting are l___________ but also useful.

limiting

The time lag between the performance of marketing activities and their results

limits the marketing manager's ability to measure the effectiveness of marketing activities.

Cash Cows

low-growth, high-share businesses or products. Need less investment to hold their market share. Produce a lot of cash that the company uses to pay bills and support other SBUs needing investment.

Standardized Information uses many systems to support decisions and help m____________ vast information produced.

manage

When they comb through a database it is data m________ which refers to seeking trends or patterns.

mining

Lo3: Discover how to find secondary data, including o__________ information bases.

online

Favorable conditions in the marketplace environment that could produce business rewards for the organization if acted upon properly are called

opportunities

Nesting is a technique that indicates the o________ in which a search is to be carried out first ( )

order

Social responsibility

organizations are part of a larger society and are accountable to that society for their actions

Marketing strategy

outlines how the company intends to create value for target customers in order to capture value in return.

External Secondary Data are data that have been collected from o_________ the firm.

outside

An expected level of performance against which actual performance can be compared is a

performance standard

Morris Business Products Co. has established a monthly sales quota of $150,000. This is a (n)

performance standard

Syndicated Data may examine appeal of performers for instance: -Nielsen provides data on TV viewing using Standardized Data and a standardized p_________.

process

Procter & Gamble, like many firms in the consumer packaged-goods industry, is organized by

product

Suppose a customer calls Ann's office at Frito-Lay in Atlanta. The customer has a friend in Seattle who was just telling her about a new snack Frito-Lay has introduced that is selling rapidly. Ann's office does not market this product, and at the present knows very little about it. Based on this information, this firm is most likely organized according to which of the following?

region

Nielsen tracks s___________ data for sales in that consumer's record household consumption.

scanning

Sample

smaller group selected from the population

An analysis of ___________ examines internal factors that give the organization certain advantages and disadvantages in meeting the needs of its target markets.

strengths and weaknesses

Harley-Davidson's Harley Owner's Group (HOG) helps to foster strong relationships between riders and their motorcycles, giving it a(n) _____ over other motorcycle manufacturers.

sustainable competitive advantage

Portfolio analysis

the process by which management evaluates the products and businesses that make up the company.

Analysis

the process of summarizing, combining or comparing information sot that decisions can be made.

price points

the range of prices charged for a category of merchandise

A market opportunity results from

the right combination of circumstances and timing that permit an organization to take action to reach a particular target market.

Corporate culture

the set of values, ideas, and attitudes that is learned and shared among the members of an organization

quantitative methods for formulating a research design

through surveys, interview, experiment

Applications of Standardized Information includes Conducting market t_____________, scanning studies track purchase patterns.

tracking

True

true or false: focus groups can be cmposed of participants who are experts on the topic rather than a random sampleof the population

data mining

using powerful computers to "dig up" data to make decisions

Internal Secondary Data are data that have been collected w_________ the firm.

within

Anonymous vs. Confidential (Writing Questionnaires)

• Confidential - you know who filled out the survey • Anonymous - You don't know • Must be honest and ethical about this.

What are the disadvantages of secondary research?

✖Data collected by others may not be accurate since it was used for other purposes. ✖Data can be out of date.

Writing Questionnaires

- Terminology - Don't bias the question - Double barreled questions - Keep it short - Be very specific - Importance level - Anonymous vs. Confidential

Market Research

- Used for GATHERING data - Form of marketing intelligence that involves specific inquiries into problems to guide marketer's in decision-making. - NOT a substitute for good decisions - but it aids in decision-making

Advantages of secondary data

- are obtained quickly - are inexpensive - are readily available - enhance existing primary data - may achieve research objective

Disadvantages of packaged services

- aspects of a project can not be customized - The company providing the packaged service may not know the idiosyncrasies of a particular industry.

Disadvantages of secondary data

- reporting units may be incompatible - measurement units do not match - class definitions are not usable - may be outdated - may not be credible

Advantages of syndicated data

- shared data - quality of the data collected typically very high - speed

American Community Survey (ACS)

- survey 3 million americans every year. - provide updated information on key demographics. - provide forecasts for future years. American Factfinder is the tool used for searching data collected by ACS.

Ways companies use databases

- to identify prospects - to decide which customers should receive a particular offer - to deepen customer loyalty - to reactivate customer purchases - to avoid serious customer mistakes.

Types of research

-Exploratory research=research collected to gather more information about a problem -Descriptive research= research that is conducted to clarify the characteristics of certain phenomena to solve a particular problem -Casual research= research which is assumed the a particular varianble x influences a variable y

Survey Methods

-Interview Bias (most expensive) -online surveys (least expensive) -Telephone survery's (cheaper because of the lack of field cost -Mail survery's can be cheaper than the telephone survey.

Flexibility of survey methods

-Personal Interviews are the MOST flexible because of the ability to guage reaction and use props. -Online surveys are the LEAST flexible because it must be easy for people to use (multiple choice, etc) -Telephone surveys are flexible because you can ask more detailed questions, but cannot observe body language. -Mail out surveys are not very flexible because they must be short and easy to fill out.

Major Areas of Use for Marketing Research

-consumer survey research -competitor research -channel research -environmental research

Creative Brief

A document created by marketing planners and followed by creative professionals to guide development of creative deliverables such as advertising, websites, etc.

The BIG Shoe Company maintains a Web site that sells a variety of shoe brands for big and tall men. The company acts as an intermediary, sending orders to shoe manufacturers that send the shoes to BIG Shoe's customers. BIG Shoe is a (A) selling agent (B) full-service wholesaler (C) purchasing agent (D) drop shipper (E) rack jobber

A drop shipper, choice D, receives orders from customers, passes the orders to manufacturers to fill, and receives a percentage of the sales as compensation.

A family in the Full Nest stage of the family life cycle would most likely be shopping for (A) a smaller home (B) a sports car (C) a kitchen appliances (D) living room set (E) a used car for a teenage driver

A family in the full nest stage of the family life cycle would be shopping for a used car for a teenage driver, choice E.

Buyer's Remorse

A feeling of guilt associated with doubts about the wisdom of a purchase decision experienced after making an expensive purchase or one requiring extended problem solving.

Image Advertising

A form of marketing designed to create generalized goodwill for a product, service, idea, or organization in the minds of consumers. This image aims to associate the advertised product and/or firm with certain lifestyles or values.

Direct Response Advertising

A form of marketing designed to solicit a direct response that is specific and quantifiable.

Marketing information systems:

A formal system that gathers data from a variety of sources, synthesizes it and funnels it to decision makers that may require it to perform their jobs.

Demographic Segmentation

Market segmentation based on differences in demographic factors of different groups of consumers.

Geographic Segmentation

Market segmentation based on differences in location-based factors of different groups of consumers.

Behavioral Segmentation

Market segmentation based on differences in motivations and attitudes, including reasons for purchases and quantities consumed, of different groups of consumers.

Flash Sales

A trend beginning in 2007 of members-only websites selling designer brands at bargain prices for very limited time periods while collecting consumer data by tracking online behavior.

Predictive Analytics

A variety of techniques from statistics, data mining, and game theory that analyze current and historical facts to make predictions about future events.

CyberCycle Inc., is preparing a written document specifying the activities to be performed to implement and control its marketing activities. This document is called the

marketing plan

Standardized Information is defining market segments and these segments are defined by a_____________, such as age.

attributes

Applications of Standardized Information is gained when retail store a_______ and track sales.

audits

Jason, a 17-year old high school student, wants to buy a pack of Marlboro Lights. He has the money to purchase them, but he is still not considered to be a market for the product due to his lack of _____ to buy

authority

Step 5: If you're still unhappy, consult an a_____________ as there may be individuals who specialize in the topic.

authority

What is a manager's job when interpreting research findings?

understand research results and relate them to a context that permits effective decision making.

Primary Data

Quantitative research is below. number satisfaction.

With _____, everyone in the population has an equal chance of being selected in the sample

Random Sampling

Observation Research

A way to collect information by recording actions iwthout interacting or communicating with the participant

Marketing decision support system

(MDSS) = Customized computer software that aids marketing managers in decision making. -By definition, this is a computer software.

Bias (Writing Questionnaires)

- "how much do think we spend on welfare?" • Bad image of welfare recipients • 22% think it's too little - "how much do you think we spend on assistance to the poor?" • People on welfare • 61% think it's too little

Design the research project (2nd step in market research)

- Create a Hypothesis (Informed guess - e.g. We think males will be more interested in X product) - Statistical Analysis: decide how you will analyze the data? (Directly correlates in what questions you ask.)

Interpreting the Results (4th step in market research)

- Deviation from the average - Statistical interpretation - Conclusion (Display data in a table format or cross tabulate - make it easy to understand)

What is the value of market research?

- Improves the marketer's ability to make decisions. - Organized and you get access it - Feedback from the consumers (Helps you meet the needs & wants of the consumer. )

Effective marketing information _____ the decisions of businesses and ___ the risk of decision making

Improves, reduces

Step 1

Locating and defining issues or problems -Most important step in the marketing process -Starts with defining the problem (studies departure and biases)

Is numerical or non-numerical data easier for researchers to analyze?

Numerical

What is the most important part of a marketing research report?

Presentation of results

False

True or False: Wheter or not to use marketing research depends soley on its cost

True

True or False: open-ended questions are often used while reserachers are trying to identify a problem or are completing a situational analysis

Data Base

=A collection of information arranged for easy access and retrieval

Another word for Observation

=Ethnography

Marketing Information System(MIS)

=Takes the gathered information and brings them together in a framework of whats going on.

Marketing Research

=The systematic Design, collection, interpretation, and reporting of information to help marketers solve specific marketing problems to take advantage of marketing opportunities.

Primary Data

=collected directly from the respondents and for a specific purpose

Experiment

Controlled situations in which all factors are the same except that on being stuided

A small number of people brought together to discuss identified elements of an issue or problem are called ..

Focus group

The resources used to maintain information, including equiptment and procedures, so that it can be used when needed is...

Storage

When products have limited differences, businesses try to compete for sales by emphasizing all of the following except

Their brand name, availability and price

True or False: Most businesses no longer believe that all consumers are a like and all want the same things

True

Collecting data (3rd step in market research)

You can get your data from primary or secondary sources.

Most consumers have moved beyond basic needs and devote more resources to satisfying thier wants and ______ purchases

descretionary

What is (MIS) Marketing Information Systems?

framework for managing and structuring information gathered from internal and external sources.

What is Single-Source data?

provided by single marketing research firm

What are the characteristics of Experimental Research?

provides strong evidence of cause and effect need a dependent variable and independent variable(s) in order to set up research project.

Information already collected for another purpose that can be used to solve the current problem is..

secondary data

What is MARKETING RESEARCH?

systematic design, collection, interpretation and reporting of information to help marketers solve specific problems or take advantage of opportunities.

an effective market is one...

that reflects important consumer and competitive characteristics

What is CONCLUSIVE RESEARCH?

verify insights through objective procedures, help marketers in making decisions.

Be specific (Writing Questionnaires)

• Don't overlap brackets (20-25,25-30) • ID Number - Blank, checkmark, yes, ID

Importance Level (Writing Questionnaires)

• Each question must be important • Nose-Picking survey

Double Barreled Questions (Writing Questionnaires)

• Was your server prompt AND efficient? • Knowledgeable AND available? • Hilton questionnaire

False

True of False: Businesses that have effective marketing information systems do no need to use marketing research

True

True or False: A great deal can be laerned about purchase behavior by observing consumers

True

True or False: Marketing research follows that steps of scientific problem solving

True

True or False: Marketing research helps businesses that are involved in international competition

True

True or False: Secondary data is usually less expensive to obtain than primary data

data collection - consider...

target audience, volume and quality of information, budget

An appliance manufacturer that sells to large retail stores, wholesalers, and institutions would probably organize its marketing unit on the basis of

types of customers

Locating & Defining Issues

uncover nature & boundaries of situation, research will be in depth, what is the aim of the research?

Sales Incentives

A promotional strategy involving programs that reward intermediaries for superior performance.

Marketing Research

Entails the systematic planning, collecting, and analyzing of data that is relevant to marketing decision making

Secondary Source Data Collection

- Information that is already out there - someone has already done the research. - Can be expensive - Internal or External Data

Internal Data (Secondary Source Data Collection)

- Information you already have available from within your company - Sales, accounting, marketing data, etc.

Length (Writing Questionnaires)

- Keep it short - Analyze every question - Does it need to be on there? - Demographics (Age + Birthdate?) - Other? Use a blank if you really need it.

Terminology (Writing Questionnaires)

- Must be able to understand the wording ("will you not buy gas")

Reporting research findings (5th step in market research)

- Must think in the mind of who is getting the data - Must write as clear as possible - Must be objective (What did you find out?) - Use tables and graphs. - Helps make information clear - Must point out deficiencies

Locate and define the problems or issues (1st step in market research)

- Nature/Scope of situation (Market research is EXPENSIVE) - How will the research be used? - Clear definition of need.

Survey (Primary Source Data Collection)

- Personal (Most flexible) - Telephone - Mail (Can't convince people to do it) - Online

Observation (Primary Source Data Collection)

- Personal - watching people to see if they use the play area in McDonalds. - Can be biased on the part of the observer (Pepsi vs. Coke - Mechanical (Brings people into the research facility and Uses cameras, etc. to test your reactions.)

Database Marketing

-involves the creation of large computerized files of customers and potential customers that includes their profiles and purchase patterns -the development of data base marketing has enabled the practice of techniques such as micro-marketing

Packaged information

-is a type of secondary data in which the data collected and/ or the process of collecting the data are prepackaged for all users. - there are two broad classes of packaged information: * syndicated data * packaged services.

right to be informed

-marketers have an obligation to give consumers complete and accurate information about products and services. -also applies to the solicitation of personal information over the Internet and its subsequent use by marketers

Benefits of Marketing Research

1) Assesses opportunities/threats 2) Ascertains potential success for products 3) Improves decisions

Steps in Market Research

1) Locate and define the problems or issues 2) Design the research project 3) Collect the data 4) Interprete Results 5) Report research findings

Five Steps of the Marketing Research Process

1) Locating & Defining Issues 2) Designing Research 3) Collecting Data 4) Interpreting Research 5) Reporting Research

Data Collection issues

1) Validity (Is your data accurate?, You have to make sure you are measuring what you say you're measuring.) 2) Reliability (Get a Random sample - representative of the population) - If the instrument is used more than once, you will get similar results.

What are the steps of the MARKETING RESEARCH PROCESS?

1) locating and defining issues or problems 2) designing the research project 3) collecting data 4) interpreting research findings 5) reporting research findings

Who does the research?

1. Company's own personnel 2. Outside Marketing Research Agencies

Marketing Research Process

1. Define the problem to be researched 2. Develop the research plan 3. Data collection 4. Processing and analysis of the collected data 5. Drawing conclusions 6. Report to management 7. Feedback & Evaluation

Macro environment

1. Demographic - Age, gender, race, people moving/shifts, education 2. Economic 3. Natural - Shortages of raw materials 4. Technological - Things we use to produce product 5. Political/Social - Laws, regulations, pressure groups a. Anti-trust law: Fight fair or don't lie about your product

3 roles of marketing research

1. Descriptive Gathering information about the nature of what is to be researched. 2. Diagnostic Explaining the "what's" and the "whys" of the data. 3. Predictive Answering the "what if" questions.

Marketing research has 3 distinct roles:

1. Descriptive- nature of research 2. Diagnostic- "whats" and "whys" of the data 3. Predictive- "what if" questions

Value Chain

1. Design 2. Produce 3. Market 4. Deliver 5. Support

List out the process of primary research

1. Identify the purpose of the market research. 2. Decide on the best method of research. (primary, secondary or both) 3. Decide on the size and type of sample (group of people who will be asked) 4. Carry out the research. 5. Collate data and analyse results. 6. Produce a report. (may include recommendations of action paths to take)

Characteristics of a decision support system

1. Interactive 2. Flexible 3. Discovery Oriented 4. Accessible

Common characteristics of a DSS

1. Interactive 2. Flexible 3. Discovery Oriented 4. Accessible

5 steps of the Marketing Research process

1. Locating and defining issues or problems 2. Designing the research project 3. Collecting Data 4. Interpreting research findings 5. Reporting research findings

Marketing information systems composed of

1. Marketing research system 2. marketing intellegence system 3. Internal Reports System 4. Marketing Analytical Systems

Marketing intelligence is important because

1. Organization have expanded their marketing horizons from local to national and even international scope 2. Buyers have become less predictable and more selective in their purchase decisions 3. Product differentiation has increased dramatically

The process of gathering marketing intelligence is more important than ever for the following reasons:

1. Organization have expanded their marketing horizons from local to national and even international scope 2. Buyers have become less predictable and more selective in their purchase decisions 3. Product differentiation has increased dramatically

Data Collection Stage

1. Secondary Data Collection 2. Primary Data Collection a. Qualitative b. Quantitative 3. Sampling 4. Question Design

Microenvironment

1. The company itself 2. Suppliers 3. Marketing intermediaries a. Companies helping to sell 4. Competitors 5. Publics a. Any group with actual or potential impact 6. Customers

Research Design

1. Types of Research 2. Types of Data Collection 3. Reliability and validity issues

Key sources of secondary sources for marketers

1. census of the population: conducted every 10 years. 2. Economic census: conducted every 5 years.

Marketing research process

1. define problem to be researched 2. develop research plan 3. data collection 4. analyze data 5. draw conclusion 6. report to management 7. feedback/evaluation

A concentrated marketing strategy would be best for a company that sells (A) processed foods (B) automobiles (C) cosmetics (D) software programs for both office and home use (E) timeshares in vacation properties

A concentrated marketing strategy is one that focuses its efforts on a particular market segment such as people interested in buying timeshares, choice E.

Coupons

A consumer-oriented promotional strategy involving documents that can be exchanged for a financial discount.

Samples

A consumer-oriented promotional strategy involving free products distributed in hopes of obtaining future sales.

Premiums

A consumer-oriented promotional strategy involving items given free or at reduced cost with purchases of other items.

Refunds

A consumer-oriented promotional strategy involving money returned on presentation of proof of purchase of an offering.

Cash Rebates

A consumer-oriented promotional strategy involving money returned on what has already been paid for an offering.

Bonuses

A consumer-oriented promotional strategy involving payment or gift added to what is expected.

Sweepstakes

A consumer-oriented promotional strategy involving prizes given to winners selected by chance from a pool of entrants.

Contests

A consumer-oriented promotional strategy involving prizes given to winners who are drawn from a pool of entrants who have completed a required task.

Variable Cost

A cost that fluctuates with production volume; for example, process materials or sales commissions.

The purpose of a SWOT analysis is to identify (A) a company's strengths and weaknesses as well as the threats to its success in the marketplace (B) the strengths and weaknesses of competitors and a company's own opportunities and threats in the marketplace (C) the strengths and weaknesses of competitors and their opportunities and threats in the marketplace (D) a company's external strengths and weaknesses and internal opportunities and threats to its success (E) a company's internal strengths and weaknesses and its opportunities and threats in the marketplace

A SWOT analysis identifies a company's own strengths and weaknesses and the opportunities and threats to it in the marketplace, so choice E is correct.

Consumer Orientation

A business philosophy emphasizing the importance of first determining the unmet needs of a consumer before designing goods and services to satisfy them.

Co-Creation of Value

A business strategy focusing on interactive relationships with customers that allow them to create a value-rich experience.

Modified Rebuy

A business-to-business purchase decisions process involving goods or services purchased previously by the firm, but which requires a new consideration set to meet changes sought in specifications, prices, terms, or suppliers.

An example of the perishable nature of services is (A) the difficulty in achieving economies of scale (B) the quality of an Internet marketing campaign (C) a cancelled concert tour by a band (D) the interconnectedness of the provider of the services with the service (E) the seasonal nature of ski instruction

A cancelled concert tour is an example of the perishable nature of services, so choice C is the correct answer.

Which of the following is NOT within the control of a company? (A) Price (B) Economic conditions (C) Advertising (D) Distribution (E) Personal selling

A company can't control economic conditions, so choice B is the correct answer to the question.

Marketing Information Systems

A formal system that gathers data from a variety of sources, synthesizes it and funnels it to decision makers that may require it to perform their jobs. Subsystems are 1. Marketing Research System and 2. Marketing Intelligence System 3. Internal Reports System 4. Marketing Analytical Systems

When a pharmaceutical maker brings out a low-cost version of one of its drugs, it is manufacturing a (A) product line extension (B) brand extension (C) brand generic (D) generic brand (E) brand choice

A generic brand is a low-priced item that has no individual brand, so choice D is correct.

Market Segment

A group of customers who respond in a similar way to a given set of marketing efforts.

Cohort

A group whose members share a significant experience at a certain period of time or have similar characteristics.

Consumer Bill of Rights

A law that codified the ethics of exchange between buyers and sellers, including the rights: to safety to be informed to choose to be heard.

A famous designer agrees to the use of his name on a men's cologne in exchange for a royalty. What kind of business arrangement is this? (A) Licensing (B) Franchise (C) Strategic alliance (D) Joint ownership (E) Patent

A licensing agreement involves one business entity granting another the right to the use of a patent, trademark, or other right such as the right to use a name in exchange for a royalty, choice A.

A limit on the amount of a product that can be exported is known as (A) an export quota (B) risk reduction (C) an embargo (D) an export control (E) a tariff

A limit that is imposed on exports by a government is known as an export quota, choice A.

Customer Relationship Management (CRM)

A management philosophy centered on identification and satisfaction of customers' needs and wants, supported by a data warehouse and analytic processes for identifying, targeting, acquiring, and retaining the best mix of customers.

Seller's Market

A market condition in which buyers outnumber the goods and services they want to buy.

Buyer's Market

A market condition in which more goods and services are available than people wanting to buy them.

Perceptual Maps

A marketing research technique in which consumers' views about a product are traced or plotted (mapped) on a chart, typically in two dimensions.

Transactional Communication Model

A model that sees communication as a negotiation of meaning in which two or more parties respond to their environment and each other.

The Jefferson Manufacturing Company buys sheet metal from the same supplier each month. In January, it changes its order to aluminum tubing. This is an example of a (A) straight buy (B) straight rebuy (C) new task buying (D) modified rebuy (E) modified buy

A modified rebuy is buying new products from a current supplier, so choice D is correct

Needs

A motivating force that compels action, ranging from basic survival to cultural, intellectual, and social needs. Needs require satisfaction (as opposed to desires, which can go unmet).

A nonprofit's customers are (A) its funders (B) the users of its services (C) the government agencies that regulate it (D) the public (E) its board of directors

A nonprofit's customers are its users, choice B.

Trigger Marketing

A one-to-one communication technique in which action by a consumer automatically triggers a marketing action.

Marketing Mix

A planned mix of the controllable elements of a product's marketing plan, which is made up of the four p's of product, price, place, and promotion.

Product/Market expansion Grid

A portfolio-planning tool for identifying company growth opportunities through market penetration, market development, product development, or diversification.

Cost-Plus

A pricing approach focused on adding a standard markup to the cost of the product that accommodates fixed and variable costs of production.

Target Profit

A pricing approach focused on calculating breakeven costs of making and marketing a product, and selecting a price to make a target profit above that cost.

Competition-Based

A pricing approach focused on setting prices based on competitors' prices for similar offerings.

Value-Based

A pricing approach focused on using buyers' perception of value to design an offering that can be sold profitably.

Which of the following is NOT an objective when companies set prices for their products? (A) Take market leadership (B) Indicate product quality (C) Recoup research and development costs (D) Discourage potential competitors from entering the market (E) Encourage competitors to cut prices

A pricing objective is to discourage competitors from cutting their prices on similar product, so choice E is not true, but is the correct answer to the question.

Sampling - Probability Sample

A probability sample is an umbrella term that is used to describe sampling techniques where respondents have a known (nonzero) chance of being chosen. Everyone can participate. Everyone has own equal chance.

Random Sampling

A procedure in which everyone in the population has an equal chance of being selected in a sample

Which of the following is NOT a step in the consumer adoption process model? (A) Trial (B) Awareness (C) Evaluation (D) User recommendations (E) Interest

A recommendation from a friend or family who uses a product is not a step in the consumer adoption process, although user recommendations may be part of building awareness. Because it is not a step, choice D is not true, but the correct answer.

Target Market

A segment of the population at which a marketing campaign is focused, based on the likelihood that people in the segment are likely to have a need or desire for a company's offerings and can be profitably served.

Sales Promotions

A short-term marketing strategy intended to stimulate purchases over a specific time period, by offering a reason to buy in addition to the service rendered by the offering regardless of price.

In conducting a situation analysis, a company would look at what factors related to the retail customer environment? (A) Market size, benefits customers are looking for, and frequency of purchase (B) Product line, market size, and frequency of purchase (C) Buying process, suppliers, and distributors (D) Market size, competitors' products, and buying process (E) Trends, company's image in the marketplace, and market segments

A situation analysis deals with the three C's: company, customers, and competitors. Market size, the benefits that customers are looking for, and the frequency of purchase are three elements of the customer environment that a company would analyze in considering new product development, so choice A is correct.

Marketing Dashboard

A software interface that presents the most critical diagnostic and predictive metrics, organized in a way that facilitates recognition of significant patterns, like a car's instrument panel.

Marketing Information System (MIS)

A software tool designed to gather, store, analyze, and distribute access to timely,accurate information to support managers' decision-making.

Mission Statement

A statement of the organization's purpose—what it wants to accomplish in the larger environment.

Profit Maximization

A strategic approach with the objective of generating the highest possible net income over time.

Penetration Pricing

A strategy calling for keeping prices low in comparison to competitors' and widely promoting an offering, to quickly achieve the most sales to the most buyers possible.

Neutral Pricing

A strategy calling for matching prices of the general market.

Skim Pricing

A strategy calling for setting prices high to attract higher income groups for luxury or status goods, or to extract maximum returns from a market before competitors emerge.

Market Development

A strategy for company growth by identifying and developing new market segments for current company products.

Market Penetration

A strategy for company growth by increasing sales of current products to current market segments without changing the product.

Product Development

A strategy for company growth by offering modified or new products to current market segments.

Diversification

A strategy for company growth through starting up or acquiring businesses outside the company's current products and markets.

High-Low Pricing

A strategy in which a company intentionally sets its regular prices higher and then reduces the price structure during frequent sales promotions.

Variable Pricing Strategy

A strategy in which different prices are charged to different customers or at different times.

Fixed Pricing Strategy

A strategy in which the same price is charged to all customers, as opposed to a variable pricing strategy.

Which of the following demonstrates customer goodwill toward a company? (A) Sponsorship of events hosted by nonprofit organizations (B) A strong brand name (C) Proactive post-purchase customer relations (D) Promotional activities that offer price reductions (E) A loyal-customer program

A strong brand name, choice B, is an indicator of customer goodwill toward a company.

AIDA Formula

A structure that describes four states required to sell a product or service: Attention, Interest, Desire, and Action; the name is an acronym.

Market Segment

A subdivision of a market or population sharing a similar set of needs and wants, usually because they share other traits, such as geography, age, income, and/or lifestyle.

Marketing Customer Information File (MCIF)

A synonym for data warehouse; a computerized file storing all pertinent information about an organization's customers.

North American Industry Classification System (NAICS)

A system grouping industries into 20 broad sectors identified by a 6-digit code based on the type of the establishment. Developed jointly by NAFTA member countries Canada, Mexico, and the United States to replace the obsolete Standard Industrial Classification (SIC) code.

social audit

A systematic assessment of a firm's objectives, strategies, and performance in terms of social responsibility

Price Waterfall Analysis

A tool used to calculate how much revenue companies keep from each sale after transactional costs have been subtracted.

11. Which of the following is the correct sequence of steps in the development of new products: A. Idea generation, product screening, concept testing, test marketing, commercialization B. Concept testing, idea generation, product screening, test marketing, commercialization C. Commercialization, test marketing, idea generation, product screening, concept testing D. Product screening, idea generation, concept testing, commercialization, test marketing

A. Idea generation, product screening, concept testing, test marketing, commercialization

6. Which of the following is an example of marketing information that a business could gather by surveying its customers: A. Location of the company's market B. The company's current market share C. Planned product improvements D. Financial status of competitors

A. Location of the company's market

15. Costs and available resources are especially important factors for product/service managers to examine during which phase of product/service management? A. New-product development B. Elimination of weak products C. Idea generation D. Monitoring of existing products

A. New-product development

40. Which of the following elements of the marketing mix are businesses considering when they answer the question of how much of a product to order: A. Place B. Price C. Product D. Promotion

A. Place

1. Which function of marketing determines how much gross profit a business will make on a good or service? A. Pricing B. Distribution C. Promotion D. Risk management

A. Pricing

46. What type of information do businesses include in their marketing plans? A. Pricing strategies B. Billing methods C. Payroll systems D. Accounting procedures

A. Pricing strategies

32. Products that are sold to the individual(s) who will make personal use of them are being sold for A. ultimate consumption. B. eventual resale. C. industrial purposes. D. promotional purposes.

A. ultimate consumption.

RFM Score

Abbreviation of Recency, Frequency, and Monetary Volume; a means to quantify the value of a customer relationship; useful as a basis for segmentation.

Which of the following is NOT an example of "green" marketing? (A) Using post-consumer waste in manufacturing new product (B) Reducing the use of product packaging (C) Sponsoring a community-wide clean-up day (D) Allowing consumers to opt out of receiving direct mail catalogues (E) Sending recycled electronics abroad for disposal

Accepting recycled electronics at home and then sending them abroad for disposal may reduce harm to the home country's environment, but does nothing for the other country or the environment in general, so choice E is not "green" marketing.

Marketing 3.0

According to Philip Kotler, the evolution of marketing practice to a third generation that focuses on fulfillment of higher human needs, such as the need for community.

Marketing Concept

Achieving goals depends on knowing needs and wants/satisfying customers better than competitors

Promotion

Activities that communicate the merits of the product and persuade target customers to buy it. (i.e., advertisements, assistance from dealers..etc...)

Marketing Intelligence

Activities that go into marketing plan a. Publicly available information

Differentiation

Actually differentiating the market offering to create superior customer value.

Markup

Adding a constant percentage to the cost paid for an item to arrive at its selling price.

Web Based Market Research

Advantages- Fast and inexpensive, diverse large group of internet users worldwide to small specialized niche, computer entry reduces researcher data entry errors, honest responses to sensitive questions, password protected, data easy to tabulate, less interview bias. Disadvantages- Sample selection generalizability, measurements validity, respondent authenticity uncertain, frivolous, Duplicate submissions, steep learning curve for web developers.

A company advertises it high-end foreign cars with a campaign that shows people turning around and staring as the car drives by. This campaign might be derived from which of Maslow's levels of basic needs? (A) Physiological (B) Love, affection, and belongingness (C) Safety (D) Self-actualization (E) Esteem

Advertising an expensive foreign-made car with a campaign based on turning people's heads could be built on Maslow's fourth level, esteem or prestige, choice E.

Which of the following is false with regard to customer lifetime value?

All customers have equal value to a firm.

Population

All of the people in the group that a company is intrested in studying

Exchange Process

An action in which two or more parties give something of value to each other to satisfy perceived wants or needs.

Which of the following commercials uses a lifestyle approach in its creative execution? (A) Animated characters talk about the benefits of a particular window cleaner. (B) A couple thinks about going on a cruise and then finds themselves on the cruise boat. (C) A movie star endorses skin care products. (D) An actor spills some liquid and then uses two brands of paper towel to soak it up; the sponsor's towel does a better job. (E) A family of five is packing camping equipment into a new SUV and talking about how roomy it is and how it fits not just camping equipment, but all their everyday sports equipment, grocery bags, etc.

An ad that uses a lifestyle creative approach shows how easily the product fits into a certain lifestyle, so choice E is the best answer.

sales forecast

An estimate of future sales for a product, service or business, which would fall in the area of Marketing Information Systems

In looking for secondary information online, market researchers may look at all of the following EXCEPT (A) search directories (B) intranets (C) social media sites (D) discussion groups (E) periodical and newspaper archives

An intranet, choice B, is a private computer network maintained by a company or an organization that limits access to it to employees of the company or organization. The only way unauthorized people can view it is by hacking it, which is illegal.

Integrated Marketing Communications (IMC)

An organizational focus on managing customer relationships over time by linking all management initiatives related to brand communications so that audiences encounter a consistent message across all channels; increasingly seen as necessary to achieve desired results from promotional activity.

Marketing Information System

An organized method of collecting, storying, analyzing, and retreving information to improve the effectiveness

Foundation Segment

Market segmentation based on customer/transaction records already in a company's database.

Service-Dominant Logic

An understanding of the purpose and nature of marketing based on the proposition that organizations, markets, and society are fundamentally concerned with the exchange of services, for the benefits of all parties.

Which MkIS element answers the question, "Which methods should be used to organize and study the information in order to make effective marketing decisions?"

Analysis

Buzz

Anything that creates excitement or stimulus; a marketing technique that leverages consumers' interest to generate marketing messages.

Various a___________________ of Standardized Information exist like consumer attitudes, opinion polls, emerging social and political issues.

Applications

Positioning

Arranging for a product to occupy a clear, distinctive, and desireable place relative to competing products in the minds of target customers.

Churn

Attrition or turnover of customers of a business or users of a service.

35. Which of the following is an example of a product's being sold without the use of an intermediary: A. A tanning salon B. A Mary Kay cosmetics party C. A construction-supply distributor D. A car-rental agency

B. A Mary Kay cosmetics party

34. Which of the following is an example of a product's being sold to an organization for use in producing other goods: A. A retailer sells office furniture to an advertising firm. B. A retailer sells a sewing machine to a professional seamstress. C. A teenager mows his neighbor's lawn for $20. D. A distributor sells hundreds of comics to a comic-book store.

B. A retailer sells a sewing machine to a professional seamstress.

37. Which of the following is a consideration in the place element of marketing: A. Offering warranties or guarantees B. Choosing distribution channels C. Using sales promotion D. Extending credit to customers

B. Choosing distribution channels

50. The Radnor Company outlined the specific activities and timelines it plans to use to accomplish its marketing goals. In which section of the marketing plan is this information placed? A. Situation analysis B. Implementation C. Objectives D. Executive summary

B. Implementation

45. ABC Inc. sells very expensive products that the average consumer cannot afford. Which form of demographic segmentation would be the most appropriate to use when directing promotional efforts to the target market? A. Age B. Income C. Occupation D. Life stage

B. Income

9. What function of a marketing-information management system involves the distribution of marketing information to those who make marketing decisions? A. Data gathering B. Information reporting C. Marketing research D. Data processing

B. Information reporting

39. What product factor should a business consider when selecting a good or service to offer its customers? A. Channels of distribution B. Level of quality C. Availability of credit D. Types of inventory control

B. Level of quality

24. A characteristic of effective prices is that they must be A. inflexible. B. competitive. C. high. D. low.

B. competitive.

18. Indirect channels of distribution are the only channels that involve A. industrial consumers. B. intermediaries. C. producers. D. ultimate consumers.

B. intermediaries.

36. Business goals are accomplished by means of marketing A. budgets. B. strategies. C. profit. D. salespeople.

B. strategies.

In a microenvironmental marketing analysis, banks belong to which sector? (A) Implementors (B) Suppliers (C) Publics (D) Marketing intermediaries (E) Customers

Bankers along with insurance companies and credit companies are part of financial intermediaries, a subcategory of marketing intermediaries, choice D.

Alex is conducting market research to determine ways to extend a product line. After defining the research problem, his next step is to (A) design the survey instrument (B) conduct a situation analysis (C) gather data (D) decide on the metrics to be measured (E) decide on the research sample

Before any research can be collected, the type of research that must be gathered has to be determined. This is part of developing an approach to the research problem, also known as conducting a situation analysis, choice B.

People who buy toothpaste for its whitening properties make up a market segment based on (A) demographics (B) usage rate (C) buyer readiness (D) lifestyle (E) benefits sought

Benefits sought is a subcategory of behavioristic criteria used in determining market segmentation; the subcategory is based on attracting a market segment interested in certain benefits of a product, so choice E is correct.

experimental research

Best for gathering causal information - cause-and-effect relationships

New Task

Business-to-business (B2B) purchase decisions process involving a full purchase decision process.

Straight Rebuy

Business-to-business purchase decisions process involving a routine reorder, requiring little thought or process.

Dynamic Pricing Model

Buyers and sellers collaborate to establish a price, accepting trade-offs in deliverables for favorable pricing.

Co-Creation Model

Buyers may bundle options to design products that suit their individual ideas of value.

Opaque Exchanges

Buying exchanges in which sellers strategically withhold information from customers who may not know the exact features of their purchase at the point of payment, a feature of the Name Your Own Price approach.

3. Which of the following statements is true about marketing functions: A. The marketing functions are important to producers but not to consumers. B. Some of the marketing functions are much more important than others. C. Marketing functions work together to get products from producers to consumers. D. Each of the marketing functions is independent of the others.

C. Marketing functions work together to get products from producers to consumers.

49. Which component of the marketing plan summarizes the environmental conditions that can affect a business's marketing activities: A. Conditional assessment B. Diagnostic summary C. Situational analysis D. Environmental synopsis

C. Situational analysis

14. One way that some businesses obtain new products to add to their product line is by A. consolidation. B. implementation. C. acquisition. D. syndication.

C. acquisition.

44. A home-improvement supply company targets its advertising to plumbers, carpenters, mechanics, and electricians. This business has segmented the market based on A. income. B. age. C. occupation. D. gender.

C. occupation.

33. A salesperson who explains to a customer the features and benefits of several types of 35mm cameras in stock is demonstrating good A. creativity. B. probing. C. product knowledge. D. ethical standards.

C. product knowledge.

Advantages of Standardized Services is the e___________advantage, and its proven processes.

experience

In online marketing, CPM stands for (A) Cost Per Mille (B) Cost Per Million (C) Customer Performance Measure (D) Customer Preference Metric (E) Cost Performance Metric

CPM stands for cost per mille, "mille" meaning thousand in Latin, so choice B is correct. CPM is a standard measure of online advertising costs, such as $100 per 1,000 appearances on a Web site.

Primary Source Data Collection

Can simply observe people or get them to answer a survey/questionnaire

Sponsorships

Cash and/or in-kind fee paid to a property (typically a celebrity) in return for endorsements and other exploit- able commercial potential associated with that property.

Which of the following is NOT a form of media marketing? (A) Infomercials (B) Internet shopping (C) Home shopping channels (D) Catalogue shopping (E) Mobile Web apps

Catalogue shopping is not a form of media marketing, so choice D is the correct answer to the question.

Example of Internal Information

Census data

Peak-Load Pricing

Charging higher prices during periods of rising demand (viable only when few competitors exist).

Which of the following products is considered a component product? (A) Computer chip (B) Paint (C) Broom (D) Margarine (E) Lubricating oil

Choice A, a computer chip, is a considered a component part because it is used in manufacturing another product.

The characteristics of package labels include all of the following EXCEPT that (A) they attract customer attention (B) depending on the product, they include the product's ingredients (C) they make the product easier to use (D) they provide product information (E) they need to be in multiple languages if a company sells in multiple countries

Choice C describes the functionality of the package—its structure and design—not its label, so choice C is the correct answer

Cookies are important to online advertisers because they enable advertisers to (A) identify social networks (B) count page views (C) customize content for visitors (D) track visitors to find out where they go after they leave their Websites (E) identify unique versus repeat visitors

Choice C is correct because cookies enable advertisers to customize content to repeat visitors.

Customer stability in the maturity phase of the product life cycle is (A) low (B) very stable (C) characterized by well-established buying patterns and customer loyalty (D) characterized by some loyalty (E) characterized by a declining customer loyalty

Choice C is correct because the customer stability factor in the maturity stage of the product life cycle is characterized by customer loyalty and well-established buying patterns.

Qualitative research is (A) objective (B) machine tabulated (C) not systematic in its design (D) deductive (E) not open to generalizations

Choice E is correct because qualitative research is not used for developing generalizations about the market.

Exchange trading companies can help importers with all of the following functions EXCEPT (A) arranging for financing (B) conducting research on new products to satisfy foreign market needs (C) providing promotional activities at foreign trade shows (D) arranging for packaging for the foreign market (E) negotiating for the cancellation of export duties

Choice E is incorrect because export duties don't affect importers and exchange trading companies (ETC) have no control over export duties, which are set by governments.

Churn rate is the (A) number of unique visitors to a site (B) number of customers who stop doing business with a company (C) number of purchases an individual makes on a particular site (D) another name for click throughs (E) number of calls a call center operator can handle in a day

Churn rate is the number of customers who stop doing business with a company, also known as the attrition rate, so choice B is correct.

Offering a 60-day money back guarantee as a sales promotion is one way to deal with post-purchase behavior known as (A) delay (B) satisfaction dissonance (C) loyalty dissonance (D) cognitive dissonance (E) bounce back

Cognitive dissonance, in some circumstances referred to as buyer's remorse, is post-purchase behavior in which a purchaser has second thoughts about the wisdom of the purchase, so choice D is correct.

Cultural

Common set of beliefs

Public Relations

Communication management that seeks to make use of publicity and other nonpaid forms of promotion to influence feelings, opinions, or beliefs held by buyers, prospects, or other stakeholders about the company, its products or services, and its activities.

An example of a psychographic characteristic as applied to businesses is (A) industry classification (B) whether a company sponsors cultural or sporting events (C) company size (D) whether a company is publicly or privately held (E) number of employees

Company sponsorship of cultural or sports events is one aspect of the lifestyle subcategory of psychographic characteristics that are used in profiling businesses, so choice B is correct.

The microenvironment in which companies operate consists of all of the following EXCEPT (A) customers of the company (B) the company itself (C) suppliers (D) competitors (E) marketing intermediaries

Competitors are part of the macroenvironment, so choice D is the correct answer.

Find needs, wants, demand and market offering

Conduct market research to:

marketing information systems

Consists of people and processes for assessing the information needs of management, developing needed information through customer surveys, point-of-purchase data, and other data sources and help decision makers use the information for customers

customer relationship management (CRM)

Consists of sophisticated software and analytical tools that integrate customer information from all sources, analyze it in depth, and apply the results to build stronger customer relationships

Best Available Screen Theory

Consumers' tendency in a media-convergent world to choose the best available screen for their location at the moment as they move through a day's activities.

Fixed Costs

Costs associated with normal operations of the business, such as rent or insurance, that do not change with changes in production volume.

Scope of Market Research

Customer Research, Channel Research, Competitor Research, Public Policy Research

Examples of Internal Information

Customer records and sales information, production and operations reports, performance information

Using information about customers to create marketing strategies that develop and sustain desirable long-term customer relationships is known as

Customer relationship management

Product Concept

Customers favor products with quality, performance and innovated features

Selling Concept

Customers won't buy enough product unless properly promoted

7. Which of the following would be the marketing information most likely to be gathered and analyzed by a marketing-information management system: A. Employee absences B. Unchanging events C. Historical data D. Consumer trends

D. Consumer trends

42. Customers in cold climates who need warm clothes are an example of which of the following market segments: A. Occupational B. Psychographic C. Behavioral D. Geographic

D. Geographic

12. Which of the following controls such new-product considerations as warranties and safety standards: A. Stages in product life cycles B. Product characteristics C. Market-research studies D. Government regulations

D. Government regulations

2. What marketing function helps marketers decide to whom to sell? A. Pricing B. Product/Service management C. Financing D. Marketing-information management

D. Marketing-information management

30. Promotion is thought of as being at the heart of marketing because it allows sellers to A. bypass middlemen such as retailers. B. distribute products to a larger market. C. bring new products to market. D. communicate the benefits of products to buyers.

D. communicate the benefits of products to buyers.

26. A long-range benefit that a business may derive from promoting its company image is A. reduced expenses. B. new customers. C. immediate sales. D. customer loyalty.

D. customer loyalty.

DSS

Decision Support Systems = an interactive, flexible information system that enables managers to obtain and manipulate information as they are making decision

marketing research process

Define problem, develop research plan, collect information, analyze information, present findings, make decision

The Peters Manufacturing Company has a number of locations around the country where goods are warehoused, orders are taken and processed, and products are shipped to customers. These locations are (A) customer service centers (B) distribution centers (C) call centers (D) intermodal transportation centers (E) merchant wholesaler centers

Distribution centers, choice B, warehouse goods, take and process orders, and ship the filled orders to customers in specific areas.

Kate is upset because the bank did not credit her account with a deposit, which resulted in a returned check to Kate's landlord. When she was told the branch manager was on vacation, Kate resigned herself to waiting two weeks to have the matter resolved. To her surprise, though, the receptionist apologized for the error and drafted a letter to Kate's landlord while Kate waited. The bank was engaging in which type of decision-making strategy?

Employee empowerment

Federal laws that regulate businesses generally fall into four categories. Which of the following is NOT one of those four categories? (A) Regulation of competition (B) Consumer protection (C) Maintenance of the competitive environment (D) Environment protection (E) Deregulation of certain industries

Environmental protection laws are not one of the four categories of laws that regulate business, so choice D is the correct answer to the question.

Marketing Intelligence

Every day information about developments in the marketing environment that decision makers use to prepare in order to prepare and adjust marketing plans

simple random sample

Every member of the population has a known and equal chance of selection

Staff

Everybody else

Perfect Price

Everything sells

Secondary values

Example: when to get married

Trade

Exchange carried out in the absence of markets, involving price equivalencies determined by treaties or administrative decisions, rather than behavior of a marketplace.

Research design is the master plan for the research study

Exploratory, descriptive, casual

Opportunities

External factors that the company may be able to exploit to its advantage.

1. Understand the Marketplace and customer needs and wants 2. Design a customer-driven marketing strategy 3. Construct an integrated marketing program that delivers superior value: Use the four P's 4. Build profitable relationships and create customer delight 5. Capture value from customers to create profits and customer equity

Five Step Marketing Process

The best use of focus groups in new product development is (A) to extrapolate from them how many people will buy the product (B) in identifying a price point for the product (C) in determining the issues that consumers are concerned about in a particular product category (D) to gain ideas for refining a sales presentation (E) to gain data for inventory management

Focus groups are best used in new product development to find out the issues that are important to consumers, choice C.

Syndicated Research Firm

Gather periodic trade information within a specific industry and then sell their findings to clients

Marketing intelligence system

Gathers relevant information from outside of the organization.

Internal Reports System

Gathers relevant information from within the organization's own internal operations

Internal Reports System

Gathers relevant information from within the organization's own internal operations.

Perceived value

Give customers an experience they believe is worth the price

Examples of External Information

Goverment reports, U.S Bureau of the Census

Consideration Set

Group of alternatives that meet purchase criteria.

Reference Groups

Groups of individuals whose attitudes, behavior, beliefs, opinions, preferences, and values an individual uses as the basis for judgment.

Data Collection: In-depth Interviews and customer visits

Hands-on customer research (become person with the problem), observational research (watch people with problem), motivational research ("want a baby, go make a cake."health club->meet others, relieve stress, like to watch, fit in, get in shape->Health, Attractiveness, summer).

Which of the following is a purchase that typically is a high-involvement decision? (A) Buying a week's worth of groceries (B) Renting a vacation unit for a month (C) Buying a tuxedo (D) Buying a SUV (E) Outfitting a student dorm room

High-involvement decision-making behavior comes into play when a purchase is important to the person making the purchase and is relatively expensive, the purchaser expects to receive a great deal of benefit from the purchase, and there is risk involved. The purchaser also lacks information about the intended purchase and expends time and energy conducting research. Only choice D satisfies all criteria for a high-involvement decision, so choice D is correct.

Custom Marketing Research Firm

Hired by a firm to design and carry out a specific research project. The firm that hires the research firm owns all of the information.

ISIC stands for (A) International Standards for Internet Classification (B) International Standard Industrial Classification (C) Internet Standardization Interglobal Categories (D) Industrial Standards Internet Categories (E) International Standardization Industrial Categories

ISIC stands for International Standard Industrial Classification, choice B. It is the international version of the North American Industry Classification System (NAICS) that replaced the Standard Industrial Classification (SIC) in 1997.

Steps in the process of gathering marketing information

Identify types, Evaluate source, Select source, enter information

Target Marketing

Identifying a segment of the population through detailed research, and developing specific marketing campaigns focused on it.

Identifying potential markets is called (A) segmentation (B) positioning (C) forecasting (D) targeting (E) environmental audit

Identifying potential markets is market segmentation, choice A.

An actor is cooking dinner and talking about how easy it is to put together the ingredients in the package and whip up dinner in 15 minutes. This style of ad is known as (A) dramatization (B) cheerleading (C) testimonial (D) demonstration (E) scientific

In a demonstration ad, an actor(s) shows how a product works and speaks directly to the viewer, so choice D is correct.

Value

In a marketing context (as opposed to a sociological one), the monetary or material worth for which an offering may be exchanged; the perceived trade-off between benefits and the sacrifice required to take possession of those benefits.

In a pure competitive environment, a firm has (A) complete control over pricing (B) no control over pricing (C) some control over pricing (D) a great deal of control over pricing (E) from no control to a great deal of control over pricing, depending on the product

In a pure competitive environment, companies have no control over pricing, so choice B is correct.

Individuals or groups within an organization who affect the decision-making process include (A) buyers, users, and marketers (B) users, influencers, marketers, and goaltenders (C) buyers, users, influencers, and goaltenders (D) users, influencers, marketers, and gatekeepers (E) buyers, users, influencers, and gatekeepers

In addition to deciders, decision making in an organization include buyers, users, influencers, and gatekeepers, so choice E is the most complete and only correct answer.

Reference Pricing

In buyer psychology, an amount representing a fair price in the consumer's mind that is remembered, researched, or inferred from the buying situation.

Signposts

In buyer psychology, the tendency of reference prices on certain items to signal a store's pricing in general.

Noise

In communication theory, extraneous factors that distort or block a message as it is sent or received, such as background sounds or printing errors.

In marketing products, companies want to maximize (A) revenue, profits, and costs (B) profits, revenue, and return on investment (C) return on investment, customer satisfaction, and brand acceptance (D) brand acceptance, profits, and return on investment (E) brand acceptance, revenue, and profits

In marketing products, companies want to maximize profits, return on investment (ROI), and revenue, so only choice B is correct.

Marketing Analytical Systems

Includes the mathematical tools and models the may be developed and used in order to predict future real world outcomes.

Marketing materials for nonprofits should include all of the following EXCEPT (A) the organization's services (B) the resume of the executive director (C) opportunities for donations (D) testimonials from users (E) the organization's mission

Including the resume of the executive director is not appropriate, so choice B is the correct answer to the question. However, noting a former affiliation of the executive director may be useful if there is a connection to the current organization, for example, noting that the executive director of an opera company was once an opera star.

Brand Ambassadors

Individuals who serve as the face of their client company at promotional events.

Internal records that provide information for marketing intelligence systems (MIS) include (A) cash flow, competitors' data, and inventories (B) cash flow, inventories, and suppliers' data (C) competitors' data, customers' needs, and cash flow (D) cash flow, suppliers' data, and sales orders (E) sales orders, inventories, and cash flow

Internal records are sales orders, inventories, and cash flow, so choice E is correct.

Marketing Research

Involves customers in order to find solutions to problems through carefully designed studies. Steps in Marketing Research: 1. Define the Marketing Problem. 2. Study the Situation. 3. Develop a Data Collection Procedure. 4. Gather and Analyze Information. 5. Propose a Solution.

observational research

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

ethnographic research

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

Database marketing

Involves the creation of large computerized files of customers and potential customers that includes their profiles and purchase patterns. enabled micro marketing

A nonprofit that wants to find sponsors for its golf event should do all of the following EXCEPT (A) communicate its target market to potential sponsors (B) analyze who potential sponsors might be based on the target audience (C) explain to potential sponsors how much the sponsorship will add to the sponsor's revenue (D) decide on sponsorship levels and the benefits attached to each level (E) explain how being affiliated with the nonprofit will benefit the potential sponsor's brand

It is very difficult to make a correlation between a sponsorship and an increase in revenue, so choice C is not something a nonprofit should do, so it is the correct answer to the question.

Karen is buying a new winter coat. She has heard that the manufacturer of the last coat that she bought uses sweatshop labor, so she buys another coat brand. By doing this, Karen exhibits (A) brand preference (B) brand recognition (C) brand indifference (D) brand rejection (E) brand disinterest

Karen recognizes the brand and refuses to buy it, so she exhibits brand rejection, choice D.

All of the following are reasons that companies decide to export products EXCEPT to (A) benefit from financial incentives offered by host countries (B) extend product life (C) exploit comparative advantage (D) increase sales (E) avoid license requirements

Licensing requirements are one of the tactics that host countries impose on foreign companies to limit imports, so choice E is not one of the reasons that companies decide to export products and the correct answer to the question.

The most important step in the marketing process for a nonprofit is (A) identifying its target market (B) developing promotional materials (C) keeping its database of donors up to date (D) implementing a social media marketing program (E) creating a Web site

Like a for-profit organization, a nonprofit first has to define its target market for promotion, so choice A is correct.

Loss leader pricing is (A) pricing a product just below its main competitor (B) pricing a product at or below cost to get customers into a store with the hope of selling them other more profitable product (C) based on keeping all costs involved, such as manufacturing, as low as possible (D) based on the value that customers perceive the product holds (E) pricing a product as part of a bundle to get rid of unwanted inventory

Loss leader pricing is a sales promotion technique that is used to get people into a store with the hope that they will buy more expensive products, so choice B is correct.

Question Marks

Low-share business units in high-growth markets. Require a lot of cash to hold their share/increase it. Management has to think hard about which question marks it should try to build into stars and which should be phased out.

1. Assess information needs 2. Internal Databases 3. Marketing Intelligence 4. Marketing research 5. Types of data

MIS

Marketing Concept

Management philosophy according to which a firm's goals can be best achieved through identification and satisfaction of the customers' stated and unstated needs and wants.

Marketing Research System

Manages and may conduct information gathering activities on specific topics that are deemed necessary

Marketing research system

Manages and may conduct information gathering activities on specific topics that are deemed necessary.

Questionnaire Design

Market researchers should carefully compose the questions in a survey so that they are precise, understandable, and help reveal the information required by the researcher. -Ratio scale -Interval scale

Psychographic Segmentation

Market segmentation based on analysis of consumer lifestyles to create a detailed customer profile.

Geodemographic Segmentation

Market segmentation based on combining data about demographic and location-based factors of different groups of consumers.

Behavioral Targeting

Marketers' recording of consumers' online communication behaviors, in order to market to them based on those observations.

i. Define problem and what to accomplish ii. Develop plan to get data iii. Implementation of plan iv. Analyze data, and report information

Marketing Research Plan

In-Store Marketing

Marketing dollars spent inside a retail store in the form of store design, merchandising, visual displays, or promotions.

A company selling Internet, phone, and cable service together is an example of (A) a cross promotion (B) a product bundle (C) product integration (D) a discount program (E) a complementary product

Marketing several items together creates a product bundle, or package, choice B.

Micro Marketing

Mass marketing programs that are tailored to prospective buyers on an individualized basis.

To enter the Asian market, The Lion Company changed its formula for hot sauce, but kept its slogan and promotional materials, based on market research. This is an example of (A) product adaptation and promotion extension (B) product extension and promotion adaptation (C) product extension and promotion extension (D) product adaptation and promotion adaptation (E) development of a new product and promotion

Modifying a product to meet consumer needs in a foreign market while keeping the same promotion is called product adaptation and promotion extension, choice A.

Hedonic Needs

Motivation toward purchase activity that requires the consumer achieves pleasure from the purchase; often associated with emotions or fantasies relating to consuming a product. See also utilitarian needs.

Utilitarian Needs

Motivation toward purchase behavior that seeks to achieve some practical benefit from a product; normally associated with product attributes that define performance. See also hedonic needs.

Bottom Line

Net income after tax; a purely profit-based view of the effects of a company's actions and policies on its sustainability as an organization.

A major manufacturer of software launched an e-reader, but withdrew it after 180 days of lackluster sales. Demand for the product can be classified as (A) no demand (B) falling demand (C) negative demand (D) latent demand (E) unwholesome demand

No demand means that consumers show little or no demand for a product, so choice A is correct.

Simulations

experiments where researchers create the situation to be studied

Non-probability sampling

Non probability sampling -> Convenience samples (talk to friends, that you know over convenience)-> quota samples (100 people represent a few from each ethnic group, pre- specified) -> judgment samples (Who you include is up to the interviewer, fit profile).

Who carries out market research?

Normally, research is done by any business who needs it. In smaller businesses, owners use secondary research since they cannot afford to conduct primary research. However, if a business has enough money, it can afford to have a specialist market research agency to do the research for it.

Which of the following statements about the marketing mix is incorrect?

Once a marketing mix has been created for a particular target market, it cannot be changed until a new strategic window opens.

The Cherry Company decides that it needs to get its customers to buy more of its existing candy products. The company is adopting what kind of growth strategy? (A) Penetration (B) Diversification (C) Market development (D) Product development (E) Flank attack

One aspect of penetration strategy is to get existing customers to buy more product, so choice A is correct.

The Sunshine Company wants to measure the influence that its brand has in the blogosphere. What metric should it use? (A) How many unique visitors come to the Sunshine blog (B) How many page views take place (C) How many click-throughs there are (D) How often visitors post comments on the brand's blog (E) How many times visitors make comments on competitors' blogs

One metric that can be used to determine the influence that a brand has in the blogosphere is how often visitors post comments on the brand's blog, choice D.

Form

One of the four utilities of customer value, the attribute that makes an offering useful to customers, created as the company converts raw materials and components into deliverable products and services.

Ease of Possession

One of the four utilities of customer value, the attribute that makes it possible to transfer title to an offering from the seller to the buyer—price, payment plan, and any warranties or guarantees.

Time

One of the four utilities of customer value, the availability of offerings when customers want them.

Place

One of the four utilities of customer value, the location or means by which the buyer/consumer takes ownership of the offering.

Consumer-Centric

Philip Kotler's term for the business philosophy of consumer orientation, with its emphasis on segmentation of markets and taking inspiration for the development and promotion of products from the people who will purchase or use them.

Stratified Sampling

Population is divided into groups with common attribute and a sample is chosen from each group

Methods of Collecting Primary Data

Population- all elements Sample- Limited # from population Sampling- process of selecting representatives

Position bias is a problem in (A) product placement in a retail store (B) selecting where to target a new product for the marketplace (C) choosing a market segment (D) conducting surveys (E) determining the outlets for new products

Position bias is the tendency of survey respondents to select the first answer in a multiple-choice question, so choice D is correct.

Return on Marketing Investment (ROI)

The net return from a marketing investment divided by the costs of the marketing investment.

Relevant but costs a lot i. Observe, Questionnaire and Experiment ii. Contact methods - Mail, telephone, personal and online

Primary Data

Define primary research

Primary research is gathering original data which may require direct contact with customers

Collecting Data

Primary- directly from respondents, address specific problem that cannot be answered by secondary data alone Secondary- inside&outside organization

Sampling cont. Probability Sampling

Probability sampling -> simple random samples (random name pull)-> Stratified samples (divide Male, female, age then simple random of those groups) -> Cluster samples (Location, prob sample based on where you live).

Market Customer Research Process

Problem definition, research design, Data collection, Data analysis and interpretation, presentation of results.

Construct an integrated marketing program that delivers superior value: Use the four P's

Product, Price, Promotion and Place

Four P's

Product, price, place, and promotion make up the marketing mix, the controllable elements of a product's marketing plan.

Nonpersonal Selling

Promotional technique featuring communications through non-person-to-person channels.

Personal Selling

Promotional technique featuring personal contact by members of a company's sales force (which can be face-to-face or via technology) intended to make sales or build customer relationships.

What are the pros and cons of Questionnaires?

Pros: ✔Detailed qualitative information can be gathered. Customers' opinions can be gathered. Cons: ✖If the questions are bad it could mislead customers. ✖Takes time and money to collate the results.

What are the pros and cons of Experiments?

Pros: ✔Easy to set up, carry out, and gather consumer opinions. Cons: ✖People might give wrong feelings to avoid offence. ✖Representatives of samples may not be asked, just people who shop in an area. ✖Many potential customers may not be asked.

What are the pros and cons of Observation?

Pros: ✔It is inexpensive. Cons: ✖Only provide basic figures and not reasons why people do things.

What are the pros and cons of Interviews?

Pros: ✔The interviewer can explain any questions the interviewee does not understand. ✔Detailed information about customers' opinions. Cons: ✖Interviewer bias. The interviewer might unconsciously lead the interviewee to answer in a certain way. ✖Time consuming and expensive.

What are the pros and cons of Consumer Panels?

Pros: ✔They provide detailed information about a product. Cons: ✖They can be time consuming, expensive, and biased if opinions of some is influenced by others.

U.S. Census Bureau

Provides wealth of data for marketers, trend analysis, target market identification

Cognitive Dissonance

Psychological tension produced by incompatibility among a person's attitudes, behavior, and/or beliefs, or when a choice has to be made between equally attractive or repulsive alternatives.

Internal secondary data

Published records that already exist within the organization.

Consumers

Purchasers of a good or service or end users who are not necessarily the purchasers.

Stratford Manufacturing is interested in total quality management and wants to learn more about its principles. Which of the following elements will Stratford not address in its investigation of TQM?

Purchasing lowest-cost materials

diagnostic

Qualitative Research

Primary Data

Qualitative Research is below! more examination not numbers. diagnostic. how can fix the number to become higher.

What are the different types of information that can be gathered from market research?

Qualitative information: information where opinion or judgement is necessary. Quantitative information: information about the quantity of something.

Exchange

Receiving cash or word of mouth for your product

Globalization Paradox

Recognition that on one hand, globalization is creating a more uniform culture worldwide, and at the same time it is creating a more diverse culture as a counterbalance; this causes anxiety for individuals who are feeling the pressure to be global as well as local citizens.

Word of Mouth

Recommendation by a satisfied customer to prospective customers of a good or service, considered one of the most effective forms of promotion.

Downsizing

Reducing the business portfolio by eliminating products of business units that are not profitable or that no longer fit the company's overall strategy.

Step 5

Reporting research findings

Types of data (Research Design)

Researchers must determine if the information they need is currently available from existing sources or if new research must be conducted. Primary Data, Secondary data.

Competitive Differentiation

Result of efforts to create perceptible differences in or between goods or services; making a product or brand stand out as of unique value to customers when compared with competing offerings.

1. Internal: Strengths and Weaknesses 2. External: Opportunities and Threats

SWOT

A SWOT analysis might look at all of the following external conditions EXCEPT the (A) bargaining power of suppliers (B) amount of competition (C) cost to enter a market (D) loyalty of customers to the market leader (E) company's ability to move quickly into a market

SWOT stands for strengths, weaknesses, opportunities, and threats. The company's ability to move quickly into a market is an internal issue, either a strength or a weakness, depending on the company. Choice E is the correct answer to this EXCEPT question.

Undifferentiated Strategy

Sales-growth strategy that ignores market segment differences and attempts to appeal to all prospective customers with a single, basic product line through mass advertising and distribution. Also called mass marketing.

i. Advantage - Cheap and quick ii. Disadvantage - May not be relevant

Secondary Data/Already existing

38. Larry designed a research project to analyze the market for a new dish detergent. The budget was cut and he needs to use research conducted for another product. All of the following are disadvantages of secondary research EXCEPT the (A) lack of applicability to the current research project (B) high cost of secondary research (C) datedness of the data (D) lack of accuracy and reliability of the data (E) lack of sufficient data

Secondary research has little cost in relation to primary research; the person/department that ordered the primary research project paid for it. High cost is not a disadvantage of secondary research, so choice B is the correct answer.

Define secondary research

Secondary research means taking information that has been already collected by others.

Manufacturer's Suggested Retail Price (MSRP)

See list price.

sample

Segment of the population selected for marketing research to represent the population as a whole

Market research tasks include all of the following EXCEPT (A) identifying market segments (B) test marketing (C) conducting focus groups (D) selecting distribution channels (E) measuring brand loyalty

Selecting distribution channels is not a market research task, so choice D is the correct answer to the question

People who volunteer to answer surveys may introduce which type of bias into the results? (A) Halo effect (B) Interviewer bias (C) Response bias (D) Self-selection bias (E) Unrestricted sample

Self-selection bias is bias for or against something that may be introduced into a survey as a result of people volunteering to answer the survey, choice D.

Segmented Pricing

Selling a product or service at more than one price, where the difference in prices is based on differences other than costs of production.

Which of the following is not a purpose of the marketing plan?

Serve as a contract with the customer

Yield Management

Strategic control of inventory to maximize yield or profits from a fixed, perishable resource.

Which of the following is the most specific and detailed type of business strategy?

marketing

Marketing

The activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

Supply and Demand

The amount of a product sellers make available (supply) and the amount buyers want to purchase (demand).

When a retailer removes one company's product and replaces it with product from another company, the first company is said to have lost (A) retail space (B) shelf space (C) product visibility (D) shelf life (E) retail visibility

The amount of space that a company's product receives in a retail situation is shelf space, so choice B is correct.

Field of Experience

The attitudes, knowledge, perceptions, and values that individuals or members of a group bring to a situation.

All of the following comprise services that can be added to enhance a product EXCEPT (A) warranty (B) delivery (C) financing (D) brand name (E) add-ons

The brand name is an intangible aspect of a product and isn't one of the services that can be used to enhance a product, so choice D is the correct answer to this EXCEPT question.

Business Portfolio

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

Brand

The combination of a unique design, sign, symbol, and/or words, strategically deployed to create an image that identifies a product, service, organization, or idea and differentiates it from its competitors.

Product-Centric

The concept of marketing that focuses attention on the development and promotion of products, as opposed to focusing on the consumers who will purchase or use them.

Humanity-Centric

The concept of marketing that focuses attention on the fulfillment of higher human needs, such as the need for community, as opposed to product-centric or consumer-centric marketing.

Which of the following statements best describes total quality management?

The coordination of efforts directed at improving customer satisfaction, increasing employee participation, forming and strengthening supplier partnerships, and facilitating continuous quality improvements

Economic factors that affect buying and purchasing patterns include all of the following EXCEPT (A) social status (B) business cycle (C) unemployment (D) inflation (E) income distribution

The correct answer is A. Social status is not an economic factor, so it is the correct answer to the question.

All of the following are metrics for measuring online ad effectiveness EXCEPT (A) click-through rate (B) cost per click (C) page view (D) pay per click (E) pop-under

The correct answer is E. A pop-under is an online ad that opens behind the Web browser window that is open, but doesn't show up until after all other windows have been closed. A pop-under ad is not a measurement tool, so it is the correct answer to the question.

Stickiness of a Web site is measured in terms of the (A) money spent on the site (B) click-throughs generated (C) ease of searching the site (D) number of repeat visits (E) average minutes per month that visitors spend on the site

The correct answer is E. Stickiness can be measured by the average minutes per month that visitors spend on a Web site, a combination of the number of repeat visits and time spent per visit.

Switching Costs

The costs associated with switching suppliers when the purchase will require buyers to spend on additional goods or services to gain its full value.

Value Delivery Network

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

Decision support systems can aid market research by (A) analyzing inventory needs at various times of the year (B) identifying target markets (C) developing sales forecasts (D) developing simulations to estimate the value of long-term customers (E) applying the regression method to survey results

The decision support system (DSS) aids market research in a number of ways including identifying target markets, so choice B is correct.

Elasticity of Demand

The degree to which demand for an offering varies with its price. Demand is highly elastic when a small change in price brings about a large change in sales, highly inelastic if a large price change has little effect on sales (demand).

Which of the following is NOT an advantage that a multibrand strategy offers the PT Soap Company? (A) A multibrand strategy creates internal competition among PT's brand managers. (B) By using a multibrand strategy, PT's brands take sales away from one another. (C) A multibrand strategy means that PT's competitors have limited shelf space for their products. (D) By having a number of brands, PT has brands for a variety of price and quality levels. (E) By having multibrands, PT will attract or keep more consumers who like to try different products.

The downside to a multibrand strategy is that some brands eat into the sales for a company's other brands, so choice B is the correct answer.

Triple Bottom Line

The financial, social, and environmental effects of a company's actions and policies that determine its sustainability as an organization.

Which of the following is the first step in developing a strategic marketing plan? (A) Development of goals (B) Analysis of the environment (C) Development of marketing strategies (D) Development of the business mission (E) Feedback on marketing acceptance

The first step in developing a strategic marketing plan is to develop the business mission, choice D.

Which of the following is an example of how integrated marketing communications affects advertising? (A) Advertising is based on customer needs and wants as determined through market research. (B) Advertising is aimed at broad markets rather than narrower segments. (C) Loyalty programs have become more important. (D) More emphasis is placed on traditional media advertising than on online and mobile marketing. (E) Building relationships with customers is no longer seen as the essential message

The focus of integrated marketing communications (IMC) is to connect all facets of internal and external marketing to communicate a single sales-related message to stakeholders, so choice A is correct.

Two of the basic facilitating functions of a marketing manager are (A) transportation and storage (B) financing and risk taking (C) buying and selling (D) developing marketing information and inventory control (E) buying and selling and transportation and storage

The four facilitating functions of marketing managers are grading, financing, risk taking, and developing market information. Choice B includes two of these functions, financing and risk taking, so choice B is correct.

Promotion

The function of informing, persuading, and influencing consumers' purchase decisions through the use of message channels such as publicity and/or advertising; the advancement of a product, idea, or point of view through message channels.

Primary Data

The generation of new data that is collected to address specific market research problems. Advantages - Private, fits your exact needs, control data collection. Disadvantage- Costly, time consuming, customers refuse to answer sensitive questions.

Which of the following would be classified as a public service ad? (A) An ad explaining the benefits of a particular antidepressant (B) An ad announcing an upcoming family night at a baseball game (C) An election ad by an incumbent reminding constituents of what she has done for the district (D) An ad raising awareness of breast cancer (E) A testimonial by a patient who underwent heart surgery at a local hospital

The goal of a public service ad is to raise awareness of an issue that will benefit the public in some way. An ad to raise breast cancer awareness classifies as a public service ad, so choice D is correct.

Motivation

The inner drive that moves consumers toward fulfillment of a perceived desire or need.

Based on lifestyle research, which group of consumers would be most likely to buy a hybrid automobile? (A) Strugglers (B) Believers (C) Experiencers (D) Strivers (E) Actualizers

The lifestyle orientations listed in this question are five of the eight orientations that resulted from the Stanford Research Institute's refining of its earlier values and lifestyle research. The eight are actualizers, fullfilleds, believers, achievers, strivers, experiencers, makers, and strugglers. A hybrid auto is typically a social responsible purchase, so choice E is correct because actualizers are socially conscious and have the education and resources to act on their convictions.

Marketing Strategy

The marketing logic by which the business unit hopes to create customer value and achieve profitable customer relationships.

Touchpoint

The moment in which a consumer experiences an interaction with a brand, the quality of which will influence relationships, perceptions, and actions.

Price

The money or other consideration exchanged for the ownership or use of a good or service, representing a quantifiable way to measure the value customers place on that offering.

survey research

The most widely used method, best for descriptive information - knowledge, attitudes, preferences, and buying behavior

All of the following are a host country's governmental influences on foreign trade EXCEPT the (A) multiplicity of languages spoken (B) stability of the political system (C) amount of competition allowed (D) tax system (E) legal system

The number of languages in a nation is a cultural influence, not a government political influence, so choice A is the correct answer

Brand Narrative

The ongoing dialogue connecting company and customer that encodes in story the values and experiences that compose the brand's meaning.

Customer

The person who acquires, or agrees to acquire, the goods or benefits of usage conveyed by ownership, in exchange for money or other consideration under a contract of sale; the person who has the ability to choose between different products and suppliers. Also known as the buyer or purchaser.

A furniture chain begins as a discounter. Then it adds lamps and other home accessories. It then offers an interior decorating service while also upgrading its furniture lines. Over time the store adds more departments and services. This describes the (A) retail life cycle (B) retail model (C) retail cycle (D) wheel of retailing (E) superstore evolution

The phenomenon described in the question is known as the wheel of retailing theory, choice D.

Breakeven Analysis

The point where total revenue received equals the total of fixed and variable costs associated with the sale of the product.

stratified random sample

The population is divided into mutually exclusive groups and random samples are drawn from each group

cluster (area) sample

The population is divided into mutually exclusive groups and the researched draws a sample

Equilibrium Point

The position of a market price that generates an equal amount of demand and supply for a product or service.

Price Discrimination

The practice of charging different prices to different buyers for goods of like grade or quality, prohibited under the Clayton Act as amended by the Robinson-Patman Act.

Positioning

The practice of creating an image or identity in the minds of prospective customers that allows one offering to stand out among many.

Segmentation

The practice of subdividing a population into groups (segments) with similar characteristics, such as geography, income, age, education, or lifestyle.

Pocket Price

The price collected by a seller in a particular transaction after accounting for all relevant discounts given to channel partners or the end consumer.

Problem Definition

The primary objective of the problem definition stage is to develop the research question. The MOST DIFFICULT step in the process. Symptoms versus problems.

Customer Analytics

The process by which customer data are used to inform key business decisions, influencing market segmentation and predictive analytics.

Media Convergence

The process in which several media channels come together to operate synergistically; for example, reducing the line between televisions, computers, and mobile devices.

Strategic Planning

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

Market targeting

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

Marketing Control

The process of measuring and evaluating the results of marketing strategies and plans and taking corrective action to ensure that objectives are achieved.

Marketing Management

The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.

Marketing Implementation

The process that turns marketing strategies and plans into marketing actions in order to accomplish strategic marketing objectives.

The production aspect of product development includes (A) product design and manufacturing (B) purchasing, manufacturing, and warehousing (C) quality control and test marketing (D) manufacturing, quality control, and test marketing (E) manufacturing, warehousing, and distribution

The production of product includes purchasing, manufacturing, quality control, warehousing, and shipping. Choice B includes three correct elements: purchasing, manufacturing, and warehousing, so choice B is correct.

Cereal makers advertise heavily on children's TV/cable programs. The result is that many children ask— even nag—their parents to buy a particular cereal. This is an example of (A) demand promotion strategy (B) an indirect strategy (C) push-and-pull promotion strategy (D) pull promotion strategy (E) push promotion strategy

The pull promotion strategy uses heavy advertising to build demand for a product, so choice D is the correct answer.

Market Research

The pursuit of knowledge of a specific market by using scientific methods to measure its size and other characteristics.

Authenticity

The quality of being authentic, reliable, trustworthy.

The diffusion process in marketing refers to (A) the innovation process within a company (B) the rate of adoption of new product by consumers (C) the spread of information in the marketplace about new product (D) a promotion campaign (E) a direct mail campaign

The rate of adoption of new products in the marketplace is called the diffusion process, so choice B is correct.

triple-bottom line

The recognition of the need for organizations to improve the state of PEOPLE, the PLANET, and PROFIT simultaneously if they are to achieve sustainable, long-term growth

Economic Value

The reference price that a buyer assigns to the features that differentiate an offering from the alternatives available at the reference price.

Customer Value Equation

The relationship between the value given (usually money) and the value the received in exchange (goods or services) as perceived by a customer.

Jack represents a textbook publisher and has known Sal since he was a teacher. Now he is a department chair. If Sal has a problem with an order, he calls Jack directly who handles it with customer service and gets Sal whatever he needs within 48 hours. This is an example of what kind of marketing philosophy? (A) Production (B) Sales (C) Relationship (D) Marketing (E) Direct Selling

The relationship philosophy of marketing, choice C, stresses long-term relationships with customers and customer satisfaction because, in the long-term, companies have found that it is cheaper to retain customers and increase their business than prospect for new customers.

quota sample

The researcher finds and interviews a prescribed number of people in each of several categories

convenience sample

The researcher selects the easiest population members

judgement sample

The researcher uses their judgement to select population members

Value Chain

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

Value-In-Use

The service rendered or benefits that an asset generates for a specific owner under a specific use.

Marketing Mix

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.

Seven Functions of Marketing

The seven functions of marketing include: 1. Pricing 2. Promotion 3. Product and Service Management 4. Place (Process of Origin and Distribution) 5. Selling 6. Marketing-Information Management 7. Financing

Market System

The social system for supplying a society's material needs governed by economic forces such as supply and demand, rather than treaties or administrative decisions.

Engagement

The state of being attracted and interested; devoting mental resources to a task; in marketing usage, the degree and depth of consumer interaction with a marketer's message.

market research

The systematic design, collection, analysis, and reporting of data and findings relevant to a specific marketing situation facing a company

Customer Lifetime Value

The total profit (or loss) estimated to result from an ongoing business relationship with a customer over the life of relationship.

Customer Value

The value a customer (buyer) places on a specific exchange, as opposed to the value placed on the exchange by the company (seller).

The increase in online social influence marketing has resulted in a decrease in (A) promotions (B) direct mail (C) virtual gifting (D) display ads (E) blogs

The volume of direct mail pieces has decreased as social influence marketing (SIM) has increased, so choice B is the correct answer.

Which of the following is an example of a typical industrial distribution channel? (A) Manufacturer to manufacturer's sales force to retailer to industrial customer (B) Manufacturer to wholesaler to jobber to retailer to industrial customer (C) Manufacturer to wholesaler's representative to industrial customer (D) Manufacturer to wholesaler to industrial customer (E) Manufacturer to manufacturer's representative to industrial distributor to industrial customer

There are several possible channels for industrial products, but choice E is the only correct one listed in the answers. (Others are manufacturer to industrial customer; manufacturer to industrial distributor to industrial customer; manufacturer to manufacturer's sales force to industrial distributor to industrial customer.)

During the maturity stage of the product life cycle, the number of competitors (A) explodes (B) declines (C) increases incrementally (D) remains the same (E) rises and falls with economic conditions

There is a shakeout of competitors as sales increase at a decreasing rate and price begins to decrease during the maturity stage of the product life cycle, so choice B is correct.

Which of the following is NOT an example of why people switch brands? (A) A mail coupon offers a discount on a competitor's product. (B) The store is out of the brand the consumer normally buys. (C) Consumers prefer domestic product over foreign product once a domestic version becomes available. (D) A consumer is having her in-laws for dinner and buys real butter instead of margarine. (E) A consumer is used to buying one brand of sandals, but decides to buy another brand for a change.

There is no evidence to support the idea that people will buy a domestic over a foreign brand once a domestic version becomes available. In fact, some people for whom status and prestige are important will buy a foreign brand over a domestic brand. Choice C is the not true, and is therefore the correct answer to the question.

According to the textbook, which of the following statements is most accurate?

There is no single approach to organizing a marketing unit that works well in all businesses.

Four Types of Research Studies

They include: -Surveys -Focus Groups -Observations -Experiments

True or False: Numerical data are easier to organize for analysis than non-numerical data

True

True or False:There are a nubmer of businesses that collect, analyze and sell data that businesses can use to meet thier information needs

True

False

True or False: The most precise and objective information about a potential market segment is obtained through focus groups

Guerilla Marketing

Unconventional marketing intended to get maximum results from minimal resources by being unexpected or unconventional; frequently includes consumer interactivity. The term "Guerilla Marketing" is a registered trademark of author Jay Levinson who popularized it through his several "Guerilla" books.

Internal Databases

Use info from company - cheap/available

Cause-Related Marketing

Use of tie-ins with causes motivated by the pursuit of profits for the company's bottom line.

ROI

Used to prove you deserve the company investment

All of the following are behavioristic criteria used for segmenting markets EXCEPT (A) user rate (B) occupational status (C) buyer readiness (D) product loyalty (E) desired benefits

User rate, buyer readiness, product loyalty, and desired benefits are all behavioristic criteria, so choices A, C, D, and E are incorrect answers to the question. Choice B, occupational status, is a demographic criterion, so it is the correct answer to the question.

A manufacturer that employs intermediaries in its distribution channel is using (A) a corporate channel (B) vertical integration (C) horizontal integration (D) an indirect channel (E) a direct channel

Using intermediaries in the distribution channel indicates that a company is using an indirect channel approach, choice D.

Data Mining

Using sophisticated data search capabilities and statistical algorithms to discover patterns and correlations in large preexisting databases; a way to discover new meaning in existing data.

Charging passengers to check bags on airlines is changing prices (A) by changing the terms of sale (B) by changing the quality of products (C) by changing the amount or size (D) based on the laws of supply and demand (E) based on full demand

When something that was free is now charged for, the terms of sale have been changed, choice A.

Most precisely, sociographics has become an important tool in (A) marketing by nonprofits (B) business-to-business marketing (C) global marketing (D) social influence marketing (E) mass marketing

While sociographics, the analysis of social networks, may be useful in marketing by nonprofits, global marketing, and mass marketing using the Internet, the best answer is social influence marketing (SIM), choice D, because it's the most precise.

The societal approach to marketing (A) puts social responsibility before company goals (B) considers company goals, customer needs and wants, and society's interests (C) uses social responsibility as the determining factor in product decisions (D) is the same as social media marketing (E) is another name for "green" marketing

While sociographics, the analysis of social networks, may be useful in marketing by nonprofits, global marketing, and mass marketing using the Internet, the best answer is social influence marketing (SIM), choice D, because it's the most precise.

Buying Center

Within a business, a functional unit charged with evaluating and purchasing goods and services. Initiators, users, buyers, gatekeepers, and deciders may all be involved in the buying center.

Dichotomous Question

Yes/No

External Secondary Data are published sources from libraries, trade or professional a_______________ whether it be in print or online.

associations

A competitive advantage exists when a a) firm matches a core competency to opportunities it has discovered in the marketplace. b) firm does marketing better than its competitors. c) combination of circumstances and timing allow a firm to reach an attractive target market.

a

A firm that markets diverse products would most likely base the organization of its marketing department on a) products. b) regions. c) functions. d) types of customers. e) marketing objectives.

a

A group that has the willingness, ability, and authority to buy a product is a a) market. b) consumer. c) strategic business unit. d) business customer.

a

A marketing plan usually begins with a(n) a) executive summary. b) introduction to the company's marketing objectives. c) summary of current performance as compared with past performance. d) situation analysis. e) opportunity and threat analysis.

a

According to the Boston Consulting Group, question marks are characterized as products a) having a small share of a growing market and requiring large amounts of cash to build market share. b) generating more cash than is required to maintain share. c) encompassing the greatest number of products. d) existing at a cost disadvantage and revealing few opportunities for growth at a reasonable cost. e) having substantial reported profits but needing a lot of cash to finance the rate of growth.

a

All marketing mix decisions must have two characteristics: ___________ and ___________. a) consistency; flexibility b) consistency; rigidity c) formality; flexibility d) variability; flexibility e) formality; rigidity

a

At Mrs. Fill's Cookie Co., top-level managers delegate very little authority to lower-level employees. Mrs. Fill's is a(n) ___________ organization. a) centralized b) decentralized c) empowered d) marketing-oriented e) total quality management

a

Products that have a relatively low market share and low prospects for growth are considered by the Boston Consulting Group to be a) dogs. b) cash contributors. c) question marks. d) stars. e) cash cows.

a

___________ strategy determines the means for utilizing resources in the functional areas of marketing, production, finance, research and development, and human resources to achieve the organization's goals. a) corporate b) business unit c) Marketing d) Mission statement e) Marketing mix

a

EXperience Limited is a company which offers tours and vacations that include participation in an extreme sport, such as hang-gliding, bungee jumping, skydiving, and motocross. Adrian Moss, EXperience Limited's owner, has just finished developing the strategic plan, including marketing objective of growing his customer base by 15% during the coming year. He believes that the best way of reaching that objective is to promote to the college-aged student. In the past, the majority of his sales have been to males under the age of 29, participating in hang-gliding and bungee jumping at various tourist locations. He wants to expand his skydiving and motocross tours, but isn't sure whether or not the expansion will be profitable. He currently has a database containing all the customers who have gone on a hang-gliding or bungee jumping vacation with his company. The information in EXperience Limited's database could be best used to develop

a CRM program

After determining that consumers had concerns about fat and carbohydrates, Sardino's Pizza began offering a low-fat, low-carb pizza product. The creation of this new product was the result of

a market opportunity

In response to the increase in demand for organic foods, Wegmans, Inc., a regional supermarket, recently created organic food departments within their large stores. The creation of these departments was a result of

a market opportunity

sample

a part of the target population

Moral idealism

a personal moral philosophy that considers certain individual rights or duties as universal, regardless of the outcome

utilitarianism

a personal moral philosophy that focuses on "the greatest good for the greatest number" by assessing the costs and benefits of the consequences of ethical behavior

Survey

a planned set of questions to which individuals or groups of people respond

Growth-share Matrix

a portfolio-planning method that evaluates a company's strategic business units in terms of its market growth rate and relative market share. SBUs are classified as stars, cash cows, question marks, or dogs.

Marketing research

a procedure designed to identify solutions to a specific marketing problem through the use of scientific problem solving.

sample

a representative subset of the large group

client-side researchers

a staff researcher who coordinates the research efforts of external marketing research firms

High Gliding Air Academy is developing its marketing mix for the coming year. Its managers know that they must first select _________, which may be the most important decision they make in the planning process.

a target market

A strategic window is

a temporary period of optimum fit between the key requirements of a market and the particular capabilities of a firm competing in that market.

The marketing plan is

a written document detailing activities to be performed to implement and control marketing actions.

Types of capture-able customer value

a. Cash b. Loyalty and Retention c. Grow market share d. Customer Equity (Good will)

Marketing research

a. Stuff you have to get - Exploratory, Descriptive (Most common) and Casual b. Marketing research plan

What is the purpose of conclusive research?

assistance in final stages of decision making.

Random Sampling

all units have an equal chance to be chosen

What is EXPERIMENTAL RESEARCH used for?

allows marketers to make casual inferences about relationships

EXperience Limited is a company which offers tours and vacations that include participation in an extreme sport, such as hang-gliding, bungee jumping, skydiving, and motocross. Adrian Moss, EXperience Limited's owner, has just finished developing the strategic plan, including marketing objective of growing his customer base by 15% during the coming year. He believes that the best way of reaching that objective is to promote to the college-aged student. In the past, the majority of his sales have been to males under the age of 29, participating in hang-gliding and bungee jumping at various tourist locations. He wants to expand his skydiving and motocross tours, but isn't sure whether or not the expansion will be profitable. He currently has a database containing all the customers who have gone on a hang-gliding or bungee jumping vacation with his company. The fact that college enrollments have been increasing at a fast rate the past few years is an example of _____ and creates a _______ for EXperience Limited.

an environmental factor; marketing opportunity

Marketing information system-

an organized method of collecting, storing, analyzing, and retrieving information to improve the effectiveness and efficiency of marketing decisions.

Syndicated data

are collected in a standard format and made available to all subscribers. For example, Marketing Evaluations, Inc., offers several Q scores

External databases

are databases supplied by organizations outside the firm: published, syndicated services data; database.

Business decisions made in creating a marketing mix

are only as good as the organization's understanding of the needs of the target market.

A firm that wants to put more senior management personnel into the field, to get closer to customers, and to enable the company to respond more quickly and efficiently to competitors would probably organize its marketing unit on the basis of a) functions. b) regions. c) customer types. d) markets. e) products.

b

According to the Boston Consulting Group, marketers may classify their products as all of the following except a) dogs. b) cash contributors. c) question marks. d) stars. e) cash cows.

b

According to the textbook, which of the following statements is most accurate? a) A small company always should organize by products, and a large organization should organize by regions. b) There is no single approach to organizing a marketing unit that works well in all businesses. c)Some organizations, by nature, have no specific internal structure. d) Organizing by type of customer works best for companies with few groups of customers. e) Using several bases for organizing leads to uncoordinated marketing management.

b

If you were a marketing manager, under which type of organizational structure would you most likely be working if your firm were a large business with centralized marketing operations? a) Organization by type of customer b) Organization by function c) Organization by regions d) Organization by products and regions e) Organization by products

b

In a traditional organization, marketing decisions are likely to be a) very decentralized. b) centralized at the top levels of the organization. c) made by frontline employees. d) made by frontline managers. e) made only by the CEO.

b

In response to the increase in demand for organic foods, Wegmans, Inc., a regional supermarket, recently created organic food departments within their large stores. The creation of these departments was a result of a) a core compentency b) a market opportunity c) its sales orientations d) its distribution plan e) a competitive advantage

b

Procter & Gamble, like many firms in the consumer packaged-goods industry, is organized by a) function. b) product. c) region. d) types of customers. e) subregion.

b

Realizing that consumers have begun to seek vehicles that use less gasoline, Toyota heavily promotes its hybrid automobiles to capitalize on this __________ while the strategic window is open. a) marketing mix b) market opportunity c) objective d) requirement

b

Green marketing

marketing efforts to produce, promote, and reclaim environmentally sensitive products

Resource deployment and coordination of functional areas of business are determined by a) the mission statement. b) corporate strategy. c) business-unit strategy. d) marketing strategy. e) the marketing mix.

b

The marketing control process consists of a) establishing goals, market scanning, and market share analysis. b) establishing performance standards, evaluating performance, and reducing the differences between desired and actual performance. c) establishing goals and measuring performance. d) planning, implementing, and measuring marketing activities. e) setting objectives, implementing strategies, and reducing the differences between desired and actual performance.

b

The term "______" describes measuring and evaluating a firm's quality in products and processes against industry leaders. a) total quality management b) benchmarking c) internal marketing d) empowerment e) implementation

b

Which of the following statements best describes total quality management? a) A process aimed at improving product quality, increasing competition based on quality, and quality improvement among employees b) The coordination of efforts directed at improving customer satisfaction, increasing employee participation, forming and strengthening supplier partnerships, and facilitating continuous quality improvements c) A method of increasing overall financial benefits, emphasizing faster development of innovations, and improving customer satisfaction d) A process directed at controlling marketing activities at a higher level of involvement among the firms' employees e) An approach used to emphasize the need for quality among a firm's hierarchy of employees, beginning with top-level executives

b

Within a business organization, a profit center that is self-supporting in terms of sales, markets, production, and other resources is known as a a) profit entity. b) strategic business unit. c) marketing program. d) small business. e) diversified corporation.

b

For marketing implementation to be successful, the needs of _________ customers must be met.

both internal and external

Standardized Information is especially useful in b_______________ marketing

business

A disadvantage of organizing a firm's marketing unit by products is that a) product managers do not have adequate control over marketing activities. b) large firms might experience coordination problems. c) it can be rather expensive. d) specialized marketing assistance is less readily available. e) marketing flexibility is limited.

c

The director of marketing for 3M tapes tells the rest of the management team, "When it comes to our transparent packaging tape unit, our strategy will be to use funds generated here to support our venture in the industrial bonding market." This strategy indicates that the packaging tape unit falls into which one of the following classifications? a) Problem child b) Star c) Cash cow d) Dog e) Question mark

c

The marketing plan is a)a plan of all aspects of an organization's business strategy. b) written differently for each SBU. c) a written document detailing activities to be performed to implement and control marketing actions. d)designed to specify not only marketing, but all other functional areas of business activities as well. e) updated only periodically.

c

The strategic planning process begins with a) development of an organizational mission statement. b) development of marketing strategy. c) analysis of the marketing environment. d) analysis of target markets. e) development of a marketing plan.

c

Which of the following is not a component of a marketing plan? a) Environmental analysis b) Marketing strategies c) Product d) Executive summary e) Marketing implementation

c

The director of marketing for 3M tapes tells the rest of the management team, "When it comes to our transparent packaging tape unit, our strategy will be to use funds generated here to support our venture in the industrial bonding market." This strategy indicates that the packaging tape unit falls into which one of the following classifications?

cash cow

EXperience Limited is a company which offers tours and vacations that include participation in an extreme sport, such as hang-gliding, bungee jumping, skydiving, and motocross. Adrian Moss, EXperience Limited's owner, has just finished developing the strategic plan, including marketing objective of growing his customer base by 15% during the coming year. He believes that the best way of reaching that objective is to promote to the college-aged student. In the past, the majority of his sales have been to males under the age of 29, participating in hang-gliding and bungee jumping at various tourist locations. He wants to expand his skydiving and motocross tours, but isn't sure whether or not the expansion will be profitable. He currently has a database containing all the customers who have gone on a hang-gliding or bungee jumping vacation with his company. According to the BCG matrix, the hang-gliding and bungee jumping tours have been a ____ for EXperience Limited, while the skydiving and motocross tours represent a_____________.

cash cow; question mark

The Boston Consulting Group classifies products that have a dominant market share but low prospects for growth and that generate more cash than is required to maintain market share as

cash cows

Experimental Research

casual inferences, evidence of cause and effect, independant/dependant variable

Place

company activities that make the product available to target consumers. (i.e., Dealerships)

A __________ is created when a company matches its core competency to opportunities it has discovered in the marketplace.

competitive advantage

Microsoft's marketing, technical skills, and continuing investment in improving its software systems give it a(n) ___________ because it makes computers easier to use.

competitive advantage

Southwest Airlines has a history of being able to retain its employees due to the atmosphere and culture of the company. Employees have been known to dress up in costume on an airplane, engage in "games" with the passengers, and generally provide a fun atmosphere for traveling. While other airlines have low rates of customer satisfaction, Southwest tends to maintain a high rating with its customers. Recent gas price hikes have caused most airlines to charge for checked luggage and to fill every flight to its maximum, adding to the negative experience of airline travel. Southwest keeps its costs low through several methods, one being that they do not serve meals on flights, or provide pre-boarding passes. The typical flight is two hours or less and occurs between several selected cities rather than flying to practically anywhere in the country. Southwest is known for its low fares, its dependability, and its on-time flights. Southwest's low fares, dependability, and its on-time flights represent its

competitive advantage

The process of putting marketing strategies into action is called

marketing implementation.

Gucci Group, a marketer of high-fashion products, achieved a company turnaround by ensuring that its brand had the same image and proper display around the world. It also lowered prices on some items, like handbags, to be more competitive. This illustrates a company working to develop a marketing mix that is both _______ and _______.

consistent; flexible

right to be heard

consumers should have access to public-policy makers regarding complaints about products and services

Disadvantages of Syndicated Data is that buyers have little c_______________ and data is not customized and it often requires a long-term contract.

control

Resource deployment and coordination of functional areas of business are determined by

corporate strategy

Limiting limits the search of database records to those that meet specific c____________ with advance search.

criteria

When managers at Logistics Pro are developing their strategic plan, they use a marketing orientation as a guide to ensure that ________ is an integral part of the process.

customer satisfaction

What is Marketing Decision Support Systems (MDSS)?

customized computer software that aids marketing managers in decision making.

A marketing unit can be organized according to functions, products, regions, and a) sales. b) target markets. c) competitive units. d) types of customers. e) product features.

d

The Boston Consulting Group classifies products that have a dominant market share but low prospects for growth and that generate more cash than is required to maintain market share as a) dogs. b) cash contributors. c) question marks. d) stars. e) cash cows.

e

A strategic window is a) The right combination of circumstances and timing that permit an organization to take action to reach a particular target market. b) what determines the factors that are most important in making a market attractive or strong. c) customers' requirements or desired benefits. d) a temporary period of optimum fit between the key requirements of a market and the particular capabilities of a firm competing in that market.

d

According to the text, a market is defined as a) a place to buy products. b) the buyers of the products that a company develops, promotes, prices, and distributes. c) the specific group of customers on whom an organization focuses its marketing efforts. d) a group of individuals and/or organizations that have needs for products in a product class and have the ability, willingness, and authority to purchase these products

d

According to the text, the 80/20 rule suggests that a)80 percent of profits come from 20 percent of business customers. b) 20 percent of profits come from 80 percent of business customers. c) 20 percent of profits come from 80 percent of customers. d) 80 percent of profits come from 20 percent of customers. e) 80 percent of profits come from 20 percent of sales.

d

An expected level of performance against which actual performance can be compared is a a) standard performance. b) standard of excellence. c) step in sales analysis. d) performance standard. e) corrective standard.

d

Based on the work by the Boston Consulting Group, products with a dominant share of the market and good prospects for growth are a) dogs. b) cash contributors. c) question marks. d) stars. e) cash cows.

d

Key factors in determining the best organizational structure for a marketing unit are the a) preferences of top management. b) fiscal resources of the firm. c) number of employees. d) diversity of the firm's products and the characteristics and needs of the people in the target market.

d

When the right combination of circumstances occurs at the right time to allow an organization to take action toward a target market, the firm is faced with a a) market objective. b) market requirement. c) strategic market plan. d) market opportunity. e) corporate objective.

d

___________ involves giving customer-contact employees the authority and responsibility to make marketing decisions without seeking the approval of a supervisor. a) total quality management b) benchmarking c) internal marketing d) empowerment e) implementation

d

___________ refers to the coordination of internal exchanges between the organization and its employees to better achieve successful external exchanges between the organization and its customers. a) Internal management b) Internal leadership c) Empowerment d) Internal marketing e) Total quality management

d

The _________ strategy in an organization often does not live up to marketing planners' expectations. a) intended b) expected c) planned d) control e) realized

e

The household income only you get per capita or the class d________________ are unusable. There might be different categories for income or the outdated data may not be useful.

definitions

Statistics Canada offers much data and d_______________ data is particularly valuable.

demographic

The most significant d_______________ groups for decades has been the Baby Boomers, Gen xers and Gen yers.

demographic

http://www.environicsanalytics.ca/prizm5 is a great website for looking up neighborhood d____________________.

demographics

qualitative methods for formulating a research design

descriptive data, information about WHY people behave the way they do, found through focus groups, interviews, observation

casual research

determines the cause-and-effect relationships when the problem is already clearly defined

Identifying and analyzing a target market and developing a marketing mix to satisfy individuals in that market are essential elements of which of the following parts of strategic planning?

developing a marketing strategy

identify problem by

discussion with decision makers, interviews with experts, analyse existing data

What is the first step Interpreting Research Findings?

drawing conclusions by displaying findings in table format.

product research

evaluation of such aspects as package design or value of an item

Customer relationship management systems cannot be effective unless they are developed as a) market-share building tools. b) profit-boosting tools. c) selling tools. d) cost-reduction tools. e) relationship-building tools.

e

Favorable conditions in the marketplace environment that could produce business rewards for the organization if acted upon properly are called a) strengths. b) market strategies. c) market niches. d) threats. e) opportunities.

e

Marketing managers can take each of the following corrective actions for reducing a discrepancy between established performance standards and actual performance except a) improving actual performance. b) reducing the performance standard. c) totally changing the performance standard. d) changing the marketing strategy. e) coordinating a new step in performance analysis.

e

Successful business organizations should take actions to convert internal weaknesses into ___________ and external threats into ___________. a) opportunities; core competencies b) core competencies; strengths c) opportunities; strengths d) strengths; core competencies e) strengths; opportunities

e

Random sampling

everyone in the population has an equal chance of being selected in the sample

The first step in the marketing control process is to a) take corrective action. b) reduce the difference between actual and desired standards. c) evaluate actual performance. d) compare actual performance and standards. e) establish performance standards.

e

The most important component of customer relationship management is a) technology. b) profits. c) sales. d) share of an individual customer's purchases. e) relationships with customers.

e

Which of the following is not a purpose of the marketing plan? a) Communicate internally with employees b) Assign tasks and responsibilities for implementation c) Specify the allocation of resources d) Monitor the performance of a marketing strategy e) Serve as a contract with the customer

e

2 kinds of unethical behavior in competition

economic espionage bribery

Field searching is a search by one or more fields which may be more e__________, e.g. title of field.

efficient

whistle-blowers

employees who report unethical or illegal actions of their employers.

A server ein a fine restaurant has the authority to give a complimentary dessert to a dissatisfied customer when the customer complains about the meal or service. This is an example of

empowerment

___________ involves giving customer-contact employees the authority and responsibility to make marketing decisions without seeking the approval of a supervisor.

empowerment

The first step in the marketing control process is to

establish performance standards.

The marketing control process consists of

establishing performance standards, evaluating performance, and reducing the differences between desired and actual performance.

Online Search Strategies [steps 4, 5, 6] Step 4: Compile and e_____________ your findings. You may need additional resources, help.

evaluate

One way that Saturn evaluates its product and service level is by how well it ranks on the J. D. Power & Associates Sales Satisfaction Survey. In doing so, Saturn is

evaluating actual performance

What are the benefits of Marketing Research? 5

facilitating strategic planning assesses opportunities/threats ascertaining potential for success determines feasibility of a strategy improves marketer's ability to make a decision

A competitive advantage exists when a

firm matches a core competency to opportunities it has discovered in the marketplace.

Psychographic profiles can also be provided by research f______.

firms

media research

focuses on effectiveness, selection, frequency, and ratings

What is Statistical Interpretation?

focuses on what is typical and what deviates from the average.

Ford has centralized marketing operations with personnel who direct marketing research, distribution, sales, advertising, and so forth reporting directly to the top-level marketing executive. Ford's marketing department is organized by

function

Syndicated research firm

gather periodic trade information within a specific industry then sell their findings to clients

According to the Boston Consulting Group, question marks are characterized as products

having a small share of a growing market and requiring large amounts of cash to build market share.

Meredith knows that whether she decides to interact with her customers in person, on the telephone, online, or by fax, that ________ should ultimately drive the marketing strategy.

her customers

custom marketing research firm

hired by a firm to design and carry out specific research project; the firm that hires the research firm owns all of the informatio

A group that has the willingness, ability, and authority to buy a product is a

market

Realizing that consumers have begun to seek vehicles that use less gasoline, Toyota heavily promotes its hybrid automobiles to capitalize on this __________ while the strategic window is open.

market opportunity

The disadvantages of secondary data is that it may be i__________________ with your needs and you may desire a different geographical area then they used.

incompatible

global marketplace

increased international competition for U.S. companies

internal records

information fathered from sources within the company to evaluate marketing performance and detect marketing problems and opportunities

market research

information gathered on a single target market

secondary data

information that has previously been gathered by someone other than the researcher or / and for some other purpose than the research project at hand. - applications include economic- trend forecasting , corporate intelligence, international data, public opinion, an historical data.

Primary data

information that is developed or gathered by the researcher specifically for the research project at hand.

Descriptive Research - Survey Research

involves the sampling and surveying of a population of customers using a carefully prepared set of questions. 1,2,3,4,5 number associated with.

Focus Group

is a carefully recruited group of 6 to 12 people who participate in a freewheeling, one- to two-hour discussion that focuses on a particular subject.

Focus group

is a small number of people brought together to discuss identified elements of an issue or problem

Exploratory Research

is appropriate when the research question needs to be further defined and/or if researchers want additional information before they venture into more formal and extensive data collection procedures. (quick and dirty how many of want a new stadium)

Descriptive Research

is characterized by a more formal research process of exploration and is typically used for product-usage and customer satisfaction research.

Customer Visit

is crucial because a few key customers often account for 80 percent of a firm's business. -> how u use product, and build relationship.

data mining

is the name for software that helps managers make sense out of seemingly out of seemingly senseless masses of information contained in databases.

Marketing Research

is the process of gathering information pertaining to customers, competitors, channels, and public policy ***for the purpose of specific decision making.***

Output

is the result of analysis given to decision makers.

When the right combination of circumstances occurs at the right time to allow an organization to take action toward a target market, the firm is faced with a

market opportunity

Hallaway's Corp.'s new shampoo, VS2, is faltering badly in the market. Hallaway's marketing personnel are unsure who is responsible for various marketing tasks, when these tasks are to be completed, or what resources have been allocated. Hallaway Marketing Director Carolyn Willis said that the problem is that VS2 has the most poorly written ___________ she has ever seen.

marketing plan

Starbucks is presently involved in a process of assessing marketing opportunities and resources, determining marketing objectives, re-defining marketing strategies, and developing guidelines for implementation and control. Thus, Starbucks is involved in

marketing planning

Safeway Food Stores is involved in identifying and analyzing a target market. The firm then develops a marketing mix to satisfy individuals in that market to gain long-term competitive advantages. Based on this example, Safeway is creating a

marketing strategy

Organizing a marketing unit by regions works well for a company that

markets products throughout the nation.

Micro-Marketing

mass marketing programs that are tailored to prospective buyers on an individualized basis

Text mining is when firms collect data from m_______ and in doing so they must do so ethical as there are legal issues on use of these data.

media

marketing information systems

methods and procedures for generating, analyzing, and storing data about consumers, sales and service

Another disadvantages of secondary data is that the measurement unit might m____________ what you need.

mismatch

A long-term view, or vision, of what an organization wants to become is called a

mission statement

The questions "Who are our customers?" and "What is our core competency?" are answered in the firm's

mission statement

Standardized Information view how product performs at retailers and it m______________ media and promotions.

monitors

ethics

moral principle and values that govern the actions and decisions of an individual or group

Major problem with sampling is the risk of

non-response error or participation bias that occurs when a particular customer group is under- or overrepresented in a sample. (worry about those who don't respond, and those that do, do they represent the group as a whole.)

Discretionary purchases

not essential, so consumers can decide whether or not to purchase them.

Southwest Airlines has a history of being able to retain its employees due to the atmosphere and culture of the company. Employees have been known to dress up in costume on an airplane, engage in "games" with the passengers, and generally provide a fun atmosphere for traveling. While other airlines have low rates of customer satisfaction, Southwest tends to maintain a high rating with its customers. Recent gas price hikes have caused most airlines to charge for checked luggage and to fill every flight to its maximum, adding to the negative experience of airline travel. Southwest keeps its costs low through several methods, one being that they do not serve meals on flights, or provide pre-boarding passes. The typical flight is two hours or less and occurs between several selected cities rather than flying to practically anywhere in the country. Southwest is known for its low fares, its dependability, and its on-time flights. Maintaining the current culture of "fun" for Southwest Airlines' employees is most likely a(n)

overall organizational objective.

Analysis p______________ is when you've looked at too much information, information overload.

paralysis

data collection approaches

personal, telephone, mail, electronic, in-house staff

The Boston Consulting Group's matrix is based on the

philosophy that a product's market growth rate and its market share are important determinants of its marketing strategy.

Secondary data is information p______________ gathered by someone other than the researcher and/or for some purpose other than the research project at hand.

previously

Which of the following is not a component of a marketing plan?

product

A firm that markets diverse products would most likely base the organization of its marketing department on

products

3 concepts of social responsibility

profit stakeholder societal

Standardized Information measures p________________ effectiveness and track video and book sales.

promotional

Marketing Information Systems

provide organized and continuous data collection and analysis for the purpose of providing ***ongoing marketing intelligence***

Syndicated services data

provided by firms that collect data in a standard format and make them available to subscribing firms- highly specialized and not available in libraries.

A marketing plan

provides a framework for implementing and controlling marketing activities.

External information

provides an understanding of factors outside of the organization

external secondary data

published material, syndicated services, computerised databases

Diaries were the traditional method to record p__________ or document media habits but fewer consumers participate now in that.

purchases

1. What was p__________ of study? It may reflect biased interest, they might have been "proving" something

purpose

Also Syndicated Data is q______, and its current data.

quick

internal secondary data

ready for use, furhter processing

Sayid's employer is currently developing a new marketing strategy. The top managers have developed the marketing strategy and have given it to Sayid so that he can now develop an implementation plan. Sayid's company will most likely end up with which type of strategy?

realized

The _________ strategy in an organization often does not live up to marketing planners' expectations.

realized

Wikipedia is only good if you go to their r______________ section and use those and not the actually article entry.

references

database

refers to a collection of data and information describing items of interest. Ex: Vehicle registration database.

Packaged services

refers to a prepackaged marketing research process that is used to generate information for a particular user. Unlike syndicated data, the data from a packaged service will differ for each client.

micromarketing

refers to using a differentiated marketing mix for specific customer segments, sometimes fine- tuned for the individual shopper.

A firm that wants to put more senior management personnel into the field, to get closer to customers, and to enable the company to respond more quickly and efficiently to competitors would probably organize its marketing unit on the basis of

regions

Customer relationship management systems cannot be effective unless they are developed as

relationship-building tools.

The most important component of customer relationship management is

relationships with customers

engaged customers

repeat customers who are completely loyal to a company's products and services

desk research

reports of other completed research are used to help define the problem

syndicated research

research conducted by an independent company

preparing and presenting the report factors

research question, approach, research design, data collection and analysis procedures, results, major findings

Truncation allows the r____ of the word to be submitted retrieving all words beginning with that root with ???

root

With an effecitve MkIS, no management attention is needed for decisions that are ....

routine

Internal Secondary Data is a Classification of S_________________ Data.

secondary

Lo1: Classify types of s___________________ data and demonstrate their uses.

secondary

culture

set of values, ideas, and attitudes that are learned and shared among the members of a group

The Advantages a of Syndicated Data is that cost is s________ across many firms and data is of high quality.

shared

Marketing researchers have identified certain demographic and psychographic groups as market segments that they tend to make s___________ purchases, have similar attitudes, and have similar media habits.

similar

Focus Group

small group of people are interviewed to observe interaction when exposed to idea or concept

Customer Advisory Boards

small groups of actual customers who offer insights on new products and other elements of the marketing strategy

laws

society's values and standards that are enforceable in the courts

Descriptive Research

solve a particular problem, demands prior knowledge, assumes problem is clearly defined

Published sources

sources of information prepared for public distribution and normally found in libraries or a variety of other entitles, such as trade organizations.

specialty-line research firm

special research in chosen areas of interest that are marketable enough to be sold commercially to anyone interested in the topic

Test markets

specific cities or geographic areas in which marketing experiments are conducted.

Primary data are information that is developed or gathered by the researcher s_______________ for the research project at hand

specifically

The Texas Pitt Barbecuem Corporation has conducted a SWOT analysis of its competition, and sees a marketing opportunity for its new Texas Pit Barbecue restaurant. It has developed its marketing plan to include the type of products it will sell, the location for the restaurant, and the pricing it will use. Their plan includes a marketing objective to make a profit of 5% the first year of operation. So far, the owners of the restaurant have eliminated a key piece of the marketing plan, which is ______.

specifying how they will achieve their marketing objective

Lo4: Examine sources of external secondary data, including s__________________ information sources.

standardized

Based on the work by the Boston Consulting Group, products with a dominant share of the market and good prospects for growth are

stars

Kraft purchased the Duracell Battery Company and now operates this division as a separate profit center within the firm. In this example, Duracell is a(n) ___________ unit of Kraft.

strategic business

Within a business organization, a profit center that is self-supporting in terms of sales, markets, production, and other resources is known as a

strategic business unit

Managers at the Littlefield Corporation are engaged in a complex process of revising their organization's mission and goals and developing corporate strategy, marketing objectives, marketing strategy, and, eventually, a marketing plan. This process is called

strategic planning

Southwest Airlines has a history of being able to retain its employees due to the atmosphere and culture of the company. Employees have been known to dress up in costume on an airplane, engage in "games" with the passengers, and generally provide a fun atmosphere for traveling. While other airlines have low rates of customer satisfaction, Southwest tends to maintain a high rating with its customers. Recent gas price hikes have caused most airlines to charge for checked luggage and to fill every flight to its maximum, adding to the negative experience of airline travel. Southwest keeps its costs low through several methods, one being that they do not serve meals on flights, or provide pre-boarding passes. The typical flight is two hours or less and occurs between several selected cities rather than flying to practically anywhere in the country. Southwest is known for its low fares, its dependability, and its on-time flights. The fact that Southwest Airlines has a history of being able to retain its employees is a ___ in its SWOT analysis.

strength

John Deere's strong name recognition and solid customer demand for its farm and garden equipment are two elements of the firm's

strengths.

Successful business organizations should take actions to convert internal weaknesses into ___________ and external threats into ___________.

strengths; opportunities

Internal Databases is a collection of data and information like records on customers, s__________ , products...

suppliers

A competitive advantage that cannot be readily copied by the competition is referred to as a (n) __________ advantage

sustainable

Because of its highly efficient and low-cost distribution system, Wal-Mart has a _________ advantage over Kmart.

sustainable competitive

A type of standardized Information is s_______________ Data: and has a standard format for subscribers.

syndicated

Internal Secondary Data can be part of firm's marketing information s_____________ especially databases which tend to have extensive customer information.

system

competitive intelligence

systematic collection and analysis of publically available information about competitors and devlopments in the marketing environment - stakeholders, social media, government reports, suppliers

EXperience Limited is a company which offers tours and vacations that include participation in an extreme sport, such as hang-gliding, bungee jumping, skydiving, and motocross. Adrian Moss, EXperience Limited's owner, has just finished developing the strategic plan, including marketing objective of growing his customer base by 15% during the coming year. He believes that the best way of reaching that objective is to promote to the college-aged student. In the past, the majority of his sales have been to males under the age of 29, participating in hang-gliding and bungee jumping at various tourist locations. He wants to expand his skydiving and motocross tours, but isn't sure whether or not the expansion will be profitable. He currently has a database containing all the customers who have gone on a hang-gliding or bungee jumping vacation with his company. The college-aged student represents EXperience Limited's _____, and the tours its operates represent the ______ element of the marketing mix.

target market; product

More general problem is

that many populations have been over-surveyed or taken in by bogus market research studies that were merely sophisticated sales pitches. (sugging, unethical)

Price

the amount of money customers must pay to obtain the product.( i.e., retail price, discounts, negotiation, trade-ins)

Economic espionage

the clandestine collection of trade secrets or proprietary information about a company's competitors.

Product

the goods-and-services combination the company offers to the target market. (i.e., Ford Escape and car parts)

Input

the information that goes into the system that is needed for decision making

Strategic Business Unit (SBU)

the key businesses that make up the company; a company division, a product line within a division, or sometimes a single product or brand.

Marketing managers at Consolidated Equipment Corporation are involved in establishing marketing performance standards, evaluating performance, and reducing the differences between actual and desired performance. These marketing managers are engaged in

the marketing control process

survey method

the most frequently used method of collecting primary data

Stakeholder responsibility

the obligations an organization has to those who can affect achievement of its objectives. These constituencies include consumers, employees, suppliers, and distributors.

greenwashing

the practice of making an unsubstantiated or misleading claim about the environmental benefits of a product, service, technology, or company practice

Southwest Airlines has a history of being able to retain its employees due to the atmosphere and culture of the company. Employees have been known to dress up in costume on an airplane, engage in "games" with the passengers, and generally provide a fun atmosphere for traveling. While other airlines have low rates of customer satisfaction, Southwest tends to maintain a high rating with its customers. Recent gas price hikes have caused most airlines to charge for checked luggage and to fill every flight to its maximum, adding to the negative experience of airline travel. Southwest keeps its costs low through several methods, one being that they do not serve meals on flights, or provide pre-boarding passes. The typical flight is two hours or less and occurs between several selected cities rather than flying to practically anywhere in the country. Southwest is known for its low fares, its dependability, and its on-time flights. In Southwest Airlines' SWOT analysis, the rising gas prices are a(n) ____, while the fact that other airlines are charging for all checked baggage may create a(n) ________,

threat; opportunity

Open-ended questions

to allow respondents to develop their own answers without additional information about possible choices.

Exploratory Research

to better understand a problem or situation, make a tentative hypothesis more specific Ex) how are consumer's car buying habits changing? More vague and open ended

What is DESCRIPTIVE RESEARCH used for?

to clarify characteristics of phenomena to solve a problem.

A marketing unit can be organized according to functions, products, regions, and

types of customers

Conclusive Research

verify insights through objective procedures and to help marketers in making decisions Ex) what % of consumers will consider an electric car purchase? More specific