Marketing Exam 1

Baby Boomers

-born between 1946-1964 -50-plus consumers

mission statement

-broad description of firms objectives -answers what type of business are we?

Production-oriented era

-build a good product & it'll sell itself -retailers were considered places to hold inventory until it was sold -concern with innovation not satisfying consumer needs

Gen X

-latchkey children -represent 41 million Americans -born between 1965-1976

Sales-oriented era

-lots of advertising & personal selling are the keys to success -aggressive selling & TV advertising -overproduction

Portfolio Analysis

-management allocates its resources to products with the greatest potential to be profitable -firms typically perform it at the SBU or product line level of the firm -management evaluates the firms various products & businesses

Gen Y

-millennials -cohort varies most in age

Value-based era

-more to marketing than just meeting needs & wants -consumers expect a fair return for the price they pay

marketing strategy

-outlines what a firm plans to do to appeal to potential customers -identifies firms target market, related marketing mix & bases upon firm plans to build sustainable competitive advantage

market share

-percentage of a market accounted for by a specific entity -defines a products strength in a particular market

Marketing-oriented era

-products were designed to focus on consumers needs -it was a buyers market -growing focus on meeting customers needs & wants

marketing plan

1. Business Mission & Objectives 2. Situation Analysis (SWOT) 3. Identify Opportunities (STP) 4. Implement Marketing Mix 5. Evaluate Performance Using Marketing Metrics

consumer decision process

1. Need Recognition 2. Information Search 3. Alternative Evaluation 4. Purchase 5. Postpurchase

B2B buying process

1. Need Recognition 2. Product Specification 3. RFP process 4. Proposal analysis & supplier selection 5. Order specification 6. Vendor/performance assessment

Which of the following laws was passed to prohibit monopolies and other activities that would restrain trade or competition, as well as make fair trade within a free market a national goal?

1890 Sherman Antitrust Act

Which ethnic group represents the fastest-growing minority population and tends to earn more, have more schooling, and be more likely to be professionally employed or own a business?

Asian Americans

After World War II, the birthrate in the United States rose sharply, resulting in a generational cohort known as

Baby Boomers

Your text describes the macroenvironmental factors that operate in the external environment by which acronym?

CDSTEP

In BCG portfolio analysis, products in low-growth markets that have received heavy investment and now have excess funds available to support other products are called

Cash Cows

The primary strength of Pepsi is the manufacture, distribution, and promotion of carbonated beverages. These describe which factor of a Pepsi consumers' immediate environment?

Company capabilities

Immediate environment

Company, competition, corporate partners

Which of the following entities is at the center of the marketing environment?

Consumers

Which of the following is the most likely result of inflation?

Consumers will switch to less expensive options for necessities

Ford Motor Company engages in partnerships with its suppliers, component part makers, unions, transport companies, and dealerships—collectively known as its

Corporate Partners

Broadly defined, _____ is (are) the shared meanings, beliefs, morals, values, and customs of a group of people.

Culture

Many catalog companies create special-run issues based on what customers have purchased in the past. For example, customers who frequently order bedding items like sheets and pillows receive a catalog with a larger section of bedding items than do customers who mostly order kitchen tools. This is an example of

Customer Relationship Management (CRM)

Red Mango rewards loyal customers with coupons that can be redeemed for free and discounted products, and they offer loyal customers special promotions. These activities are part of a(n) ______________ program.

Customer Relationship Management (CRM)

Both Red Mango and Pinkberry must communicate information about their products and services and then deliver them to their customers. In turn, their customers provide these companies with money and information. This represents the core marketing concept of _______.

Exchange

The first generation of "latchkey" children, known as _____, includes those born between 1965 and 1976.

Gen Xers

_____, also known as Millennials, constitutes more than 60 million members in the United States alone and were born between 1977 and 2000.

Gen Y

Which of the following groups of people are referred to as Digital Natives?

Gen Z

Advertising guidelines stating that companies cannot link unhealthy foods with cartoon and celebrity figures is geared toward which social trend?

Health & Wellness concerns

_______ consumers in the United States have increasing influences on mainstream U.S. culture and the buying power of this group is projected to reach $1.3 trillion in 2015.

Hispanic

Which of the following frameworks for analysis is comprised of a company's capabilities, competitors and corporate partners?

Immediate Environment

An important economic factor that refers to the persistent increase in the prices of goods and services is called

Inflation

The cost of borrowing money is measured by

Interest rates

Moving from television broadcast into e-commerce has allowed HSN to achieve _______ excellence.

Locational

Culture, demographics, social issues, technological advances, economic situations, and the political/regulatory environment are all factors that make up which of the following frameworks of analysis?

Macroenvironmental factors

When Spirit Airlines expands into additional cities, which growth strategy is it using?

Marketing development

Which of the sources of sustainable competitive advantage discussed in the text is Spirit Airlines most likely pursuing with its ultra-low cost carrier strategy?

Operational excellence

Effective promotion enhances a product or service's

Perceived value

Jeff is going to sell sporting apparel, which he has already purchased from manufacturers, and has signed a deal agreeing to the volume he will sell monthly. He has researched his competition, talked to some customers, and decided on prices he will charge. Jeff has also developed a plan for promoting his business. Based on this description, which element of the marketing mix does Jeff still need to work on?

Place

Macroenvironmental

Political/Legal, cultural, social, economic, technological

When Spirit Airlines identifies itself as an ultra-low cost carrier (ULCC), it is ______ itself compared to other airlines.

Positioning

Clearly, customers enjoy the frozen yogurt offered at both Pinkberry and Red Mango. They also seem to enjoy the service in the stores as well as the idea that frozen yogurt is healthy. These elements all represent delivering value through which of the four Ps?

Product

Which element of the marketing mix is most relevant to the activity "creating value"?

Product

3M involves its customers in the process of developing new products. In this way, it can benefit from current customers' insights and develop new products that will meet these customers' needs. 3M is pursuing a __________ growth strategy

Product development

By offering new products developed by well-known designers to its existing customers, HSN used which growth strategy?

Product development

Which of the following is not a demographic listed in your text that would typically be used to identify consumer markets?

Religion

Strategic Business Unit

SBU may have a different mission or objective from other divisions

STP

Segmentation, Targeting, & Postioning

SWOT

Strengths, Weaknesses, Opportunities, Threats

HSN focuses its marketing efforts on busy women older than 35 years old who own their homes. This customer group is HSN's ________.

Target Market

First-time Spirit Airlines customers sometimes don't understand its "bare fare" strategy, leading to unpleasant surprises when they check in at the airport. In terms of a SWOT analysis, this is an example of a(n)

Weakness

behavioral component

actions we undertake based one what we know/feel

sustainable competitive advantage

advantage over competition that is not easily copied & can be maintained over a long period of time

consensus buying center

all members of the team must reach a collective agreement

esteem needs

allow people to satisfy their inner desires

market growth rate

annual rate of growth of the specific market in which the product competes

financial risk

associated with monetary outlay, includes initial cost as well as costs of using item/service

compensatory decision rule

assumes that the consumer trades off one characteristic against another

In 2006, Walmart announced that it would begin selling organic food products. In doing so, Walmart was most likely trying to

attract a different market segment

value-oriented marketers measure the _____ that customers perceive against the cost of their offerings

benefits

The ___________ includes members of Hope Springs' upper management team, Brian (the purchasing manager), and members of the accounts payable department.

buying center

Price

captures value

Promotion

communicates value

When McDonald's opened its fast-food restaurants in European locations, it had to modify its product offering primarily due to differences in

country culture

Product

creates value

If the makers of the camp car focused on promoting the car's convenience in urban areas, they would be appealing to which of the following?

customers lifestyle

B2B marketing impacts

customers, partners, & employees

Place

delivers value

Hope Springs purchases many products from suppliers in the course of doing business, including empty water bottles. The number of bottles Hope Springs will need each month depends on the number of bottles purchased by customers. This is an example of __________.

derived demand

The news began airing coverage of accidents that occurred in Ford vehicles. This extensive coverage created fear for consumers, causing them to purchase fewer Ford vehicles. This is an example of ___________.

derived demand

Fast, convenient home delivery and a wider selection of movies, Netflix's competitive advantage over retail stores, represent ______ for many customers.

determinant attributes

Sharon is researching different weight-loss programs. She is evaluating each program's costs, ease of use, group support, and variety of choices. In the decision process, these four program differences that Sharon is evaluating are called ________.

determinant attributes

The Netflix distribution centers help to reduce postpurchase _______ by ensuring fast delivery and responsiveness

dissonance

SBU

division of firm tat can be managed & operated somewhat independently from other divisions

product excellence

effective branding & positioning, high perceived value

affective component

emotions about issue at hand

market penetration strategy

employs the existing marketing mix & focuses the firms efforts on increasing sales to current customers

how is market penetration achieved?

encouraging current customers to patronize the firm & the brand more often

Henrik is overweight and is considering a weight loss program. He feels it is an important and risky decision and is spending a lot of time and effort gathering information and evaluating the different plans. Henrik is involved in a process known as ________.

extended problem solving

What type of buying process do most customers engage in when shopping for a car?

extended problem solving

social influencing factors

family, culture, & referencing groups

social risk

fears consumers suffer when they worry others might not regard their purchases positively

operational excellence

focus on excellent supply chain management

The CEO of Netflix recognized lconsumers' ______need for a more cost-efficient movie rental system focusing on avoiding large late fees.

functional

_________ control the flow of information and/or access to the members of the buying center at Hope Springs.

gatekeepers

Consumers who have similar purchase behaviors because they have shared experiences and are in the same stage of life are known as a _____ cohort.

generational

The social trend of _____ is causing consumers to question whether or not firms are truly operating with consideration for the environment or simply changing marketing efforts in order to appear that they are.

greener consumers

Firms that disingenuously market products as environmentally friendly with the goal of gaining public approval and sales, rather than actually improving the environment, are guilty of

greenwashing

product line

group of products that consumers may us together or perceive as similar

Product Development Strategy

growth strategy that offers a new product/service to a firms current target market

locational excellence

high density of stores & closer proximity to customers

Stars (upper left)

high-growth markets & are high market share products

Question Marks (upper right)

high-growth markets but have relatively low market shares

institutions

hospitals, universities, & religious organizations

Suppose an individual with a large disposable income passes a camp car en route to work. Intrigued with the car's unique look, the individual visits a camp car dealership later that day and purchases one. Which type of problem solving best characterizes this individual's purchase decision?

impulse buying

product development strategy

incorporates a new product/service to a firms current target market

organizations that make up B2B

institutions, manufacturers, resellers, government

diversification strategy

introduces a new product/service to a new market segment

When a firm evaluates how other companies react to the firm's marketing activities, it is attempting to understand what aspect of the immediate environment?

its competitors

relational orientation

lifetime profitability is more important than money made during each transaction

Dogs (lower right)

low-growth markets & have relatively low market shares

Cash Cows (lower left)

low-growth markets but are high market share products

customer excellence

loyalty programs & supplier service

democratic buying center

majority rules on decision

who is in the supply chain?

manufacturers & retailers

resellers are

marketing intermediaries that resell manufactured products without significantly altering their form

If Brian were tasked with purchasing an additional 500 tablets for Hope Springs but he was asked to change the requirements for making the purchase, this would be called a(n) __________ situation.

modified rebuy

psychological influencing factors

motives, attitudes, perceptions, learning & lifestyle

autocratic buying center

one person makes decision alone

consultative buying center

one person makes decision based on input from others

what creates customer value?

operational, customer, product, & locational excellence

performance risk

perceived danger in a poorly performing product/service

functional needs

performance of a product/service

Many consumers question whether diet programs really work and result in weight loss. This represents _______ risk. The higher this risk, the more likely a consumer will extend his _____ when going through the decision process.

performance; search for information

user

person who consumes/uses the product/service

gatekeeper

person who controls information access

initiator

person who first suggests buying product/service

buyer

person who handles paperwork of actual purchase

decider

person who ultimately determines any part of or the entire buying decision

influencer

person whos views influence other members of buying center

cognitive component

person's belief system

psychological needs

personal gratification consumers associate with a product/service

One concern some potential car buyers might have about the camp car is that it might be cheaply made and thus might break down frequently. Which type of risk does this concern represent?

physiological risk

After the major tire recall, Ford regretted purchasing so many Firestone tires for its vehicles. This kind of buyer's remorse is also called _______________.

postpurchase dissonance

noncompensatory decision rule

product purchase decision made because it has an attribute, valued above any of its other attributes

Hope Springs needs tablet computers that are fast, include 24/7 tech support, and include a generous volume discount. These criteria would be collected during which stage of the B2B buying process?

product specification

One of the main causes for the tire's defect was the lack of a nylon overlay. Ford claims that it asked Firestone to produce the tires with a nylon overlay as well as include materials that would reduce tread separation. These are examples of ______________.

product specifications

After the Firestone recall, Ford recognized that it would need to work with a new tire supplier for its vehicles. Ford then began to develop new product specifications and request proposals from other tire manufacturers. What is the next step in the B2B buying process for Ford?

proposal analysis & supplier selection

habitual decision making

purchase decisions process in which customers engage in littler conscious effort

situational influencing factors

purchase situation, temporal state, & shopping situation

market development strategy employs existing product offering to

reach new market segments

organizational culture

reflects set of values, traditions, & customs that guide its employees behavior

value

reflects the relationship of benefits to costs

In New England, soft drink beverages are called soda while in many other parts of the country they are called pop. This is an example of the effects of

regional culture

method of building a relationship with customers based on the philosophy that buyers & sellers should develop a log-term relationship

relational orientation

relative market share is used to provide managers with a products

relative strength

psychological risks

risk associated with the way people will feel if the product/service doesn't convey the right image

physiological risk

safety risk, what might happen if a product doesn't perform as expected

Maslow's Hierarchy of needs

self-actualization, esteem, love, safety, & physiological

evaluative criteria

set of important attributes about a particular product

Xavier is analyzing potential market segments. He should carefully seek potential customers who have both an interest in his products and

the ability to buy them

In the immediate environment, what is the first factor that affects the consumer?

the company itself

marketing opportunity

unfilled needs

Both Pinkberry and Red Mango allow customers to "do-it-yourself." In other words, customers can create and customize their own unique combinations of flavors and toppings. In marketing, this is known as ______.

value co-creation