Masters Marketing

If a low-risk marketing program has a return on marketing investment (ROMI) of 4.0, this means that any marketing program must generate at a minimum $4.00 in revenue for every ________ in marketing expenditure.

$1 (If the company has a marketing budget of $5 million and needs to generate $20 million in revenue, then the ROMI hurdle rate for any low-risk marketing program is 4.0. This means that any marketing program must generate at a minimum $4.00 in revenue for every $1.00 in marketing expenditure.)

Product Characteristics

- Essential benefit - Core product - Enhanced product

Boundaries of Branding

- good branding strategy will not overcome a poorly designed product that fails to deliver on the value proposition - Counterfeit products or illegal activities conducted under the name of another company's brand can do significant damage to the brand. - brand identity

Select a target marketing approach

- undifferentiated target marketing - Differentiated target marketing - Marketing a concentrated target marketing - customized (one-to-one) marketing

Value

-There was just the transactional, then there was the desire for co-creating value. The desire is to find the customers you want to do business with, and keep them. -marketer's are having to do more with less -communicating, delivering, and exchanging those offerings

Customer Satisfaction

A firm's value proposition must be strong enough to move customers past mere satisfaction and into a commitment to a company and its products and brands for the long run.

Product Line

A group of products linked through usage, customer profile, price points, and distribution channels or needs satisfaction

Technology Transformations

Faster, smaller, and easier-to-use computers and powerful software facilitate sophisticated analyses right on the desks of front-line managers from anywhere in the world. Complex supply chain and manufacturing processes coupled with Internet connectivity allow customers real-time access to the entire manufacturing process.

Firm resources

Finally, internal analysis involves taking an honest look at all aspects of a firm's functional/operational-level resources and capabilities and how they play into the ability to develop and execute market-driven strategies.

________ criteria are a set of analyses and metrics grouped together to assess the cost of ownership.

Financial (Financial criteria are a set of analyses and metrics grouped together to assess the cost of ownership.)

Competitive Forces Related to the Segment

For Reckitt Benckiser's cough-and-cold business, several of these forces predominate. First, rivalry among existing firms is fierce. Reckitt Benckiser entered a market dominated by Johnson & Johnson, but with fierce competition from brands like P&G as well. Second, a strong threat of substitute products is present in the form of a variety of cough-and-cold remedies, from homeopathic treatments to prescription medication to less conventional treatments like nasal irrigation (through neti pots and other sinus washes). New entrants are less of a threat, as patents and R&D make the barriers to entry high, and suppliers are not highly concentrated.

Which of the following is TRUE of descriptive research?

It uses many different methods including secondary data, surveys, and observation. (Descriptive research uses many different methods including secondary data, surveys, and observation. Some of these methods are also used in exploratory research. The difference is how you use the information. Descriptive research uses a different, more restrictive and rigorous methodology than exploratory research.)

In the context of social networks, ________ is targeted at working professionals and offers some distinct advantages in terms of content relevant to a professional audience.

LinkedIn (LinkedIn is targeted at working professionals, has a membership of over 120 million users, and offers some distinct advantages in terms of a professional calling card.)

Which of the following statements is TRUE of the baby boomers generational group?

The baby boomers think that they don't age. (Much of the research on baby boomers indicates that—at least in their minds—they don't age. Recall that a marketer must be cognizant of the difference between chronological age and attitudinal age.)

Which of the following is TRUE of utility?

The four major kinds of utility are form, time, place, and ownership. (Utility is the want-satisfying power of a good or service. Four major kinds of utility exist: form, time, place, and ownership. Form utility is created when the firm converts raw materials into finished products that are desired by the market. The other three utilities— time, place, and ownership—are created by marketing.)

HP sells an inexpensive printer for an entry-level user, but the printer cartridges that need continual replacement are fairly expensive. This demonstrates the concept of ________.

captive pricing (Captive pricing, sometimes called complementary pricing, entails gaining a commitment from a customer to a basic product or system that requires continual purchase of peripherals to operate.)

A restaurant's marketing manager is interested in finding out if reducing the price of food items will lead to increased sales. For this purpose, the manager should conduct ________ research.

causal (Causal research tries to discover the cause and effect between variables. Causal research can determine the change in the number of sales for different price levels.)

Positioning

communicating one or more sources of value to customers in ways that connect needs and wants to what the product has to offer.

When a firm's objective is to gain as much market share as possible, a likely pricing strategy is ________, sometimes also referred to as pricing for maximum marketing share.

penetration pricing (Market share is the percentage of total category sales accounted for by a firm. When a firm's objective is to gain as much market share as possible, a likely pricing strategy is penetration pricing, sometimes also referred to as pricing for maximum marketing share.)

The 4Ps of marketing refer to ________.

policy, production, plan, and preference (In the mid-1960s, a convenient way of teaching the key components was developed with the advent of the marketing mix, or 4Ps of marketing, originally for product, price, place, and promotion.)

Pamela only bought her cars from Lexis because they made it so easy to get them serviced by picking her car up and bringing it back to her. Lexis shows ________ leadership.

service (Service leadership is defined as having an unusual and notable commitment to providing service to customers.)

170. Brand Equity

set of assets (and liabilities) linked to a brand's name and symbol that adds to (or subtracts from) the value provided by a product or service to a firm or that firm's customers.

For products designed for business markets, market testing is ________.

smaller in scope and involves fewer individuals and companies (Products designed for business markets are tested differently than their consumer product counterparts. Essentially, the tests are smaller in scope and involve fewer individuals and companies; however, they are no less important in the new-product development process.)

Once a firm has invested in continuous process improvement and quality control in operations, goods, in general, tend to be much more ________ than services.

standardized (Goods, in general, tend to be much more standardized than services because, once a firm has invested in continuous process improvement and quality control in its manufacturing operations, products flow off the line with very little variation.)

The core marketing concept characteristics of an organization-wide customer orientation and long-run profits are ________ in nature.

strategic (The core concepts of customer value, exchange, customer relationships, and benefit to the organization and its stakeholders are all very strategic in nature and help form the core business philosophy of a firm. The marketing concept includes a strong Marketing (Big M) thrust: "an organization-wide customer orientation with the objective of achieving long-run profits." Certainly the core marketing concept characteristics of an organization-wide customer orientation and long-run profits are very strategic.)

Herbie recently read that Crane Airways of Japan, Kestrel Airlines of Germany, Heron Air of Australia, and Egret Airways of India have code sharing partnership, which allows passengers to fly on any of the airlines, share frequent flyer miles, and give each other logistical support. Herbie had just learned in his Global Marketing class that this arrangement is known as a(n) ________.

strategic alliance (A number of airlines have created a worldwide network of airline partnerships that include code-sharing, frequent flyer mileage partnerships, and some logistical support, demonstrating a strategic alliance.)

Maria identifies with a specific religious group, which is a smaller division of her culture. Maria's religious group is an example of a(n) ________.

subculture (A subculture is a group within a culture that shares similar cultural artifacts created by differences in ethnicity, religion, race, or geography.)

To better take into account the differential impact of fixed and variable costs, marketing managers can use ________ pricing.

target return (To better take into account the differential impact of fixed and variable costs, marketing managers can use target return pricing.)

A unique feature of Snapchat is that shared information is ________.

temporary (The temporary nature of the content on Snapchat provides a certain level of appeal to users that arguably resonates most with a younger demographic. While many social networks may have user-age distributions that skew toward the younger side, Snapchat boasts that about 60 percent of its users are between the ages of 13 and 24.)

service sector

the economy include such important categories as intellectual property, consulting, hospitality, travel, law, health care, education, technology, telecommunications, and entertainment—all high-growth job categories

Value proposition

the firm's communication of the unique value of its products to its customers -products to customers, the value message may include the whole bundle of benefits the company promises to deliver, not just the benefits of the product itself.

Essential benefit

the fundamental need met by the product (getting from point A to point B on an Southwest Airlines).

Nonverbal communication

the means of communicating through facial expressions, eye behavior, gestures, posture, and any other body language.

Core product

the physical, tangible elements (e.g., one kind of aircraft, low fares, good website).

Selective retention

the process of placing in one's memory only those stimuli that support existing beliefs and attitudes about a product or brand. This is significant because memory is where people store all past learning events; in essence it is the "bank" where people keep their knowledge, attitudes, feelings, and beliefs.

An individual moves through five stages before adopting a product. The five stages include all of the following EXCEPT ________.

validation (An individual moves through five stages before adopting a product: awareness, interest, evaluation, trail, and adoption. Marketers, particularly those involved in a new-product launch, want to move consumers through the process as quickly as possible.)

The immediacy and personalization of social networks and, more broadly, the web itself set up the environment for ________.

viral marketing (The immediacy and personalization of social networks and, more broadly, the web itself set up the environment for viral marketing.)

The marketing manager at Little Red Architects, a firm that specializes in the design of school buildings, discovered a glitch in the software that the firm uses. As a result, some of its most recent projects will come in over budget. In the context of SWOT analysis, a discussion of this would be included under ________.

weaknesses (In the context of SWOT analysis, a discussion of the issue mentioned in the scenario would be included under weaknesses. Internal analysis reveals strengths and weaknesses, while external analysis points to potential opportunities and threats.)

Marketing a concentrated target marketing

which Michael Porter refers to as a focus strategy and is also popularly called a niche strategy, involves targeting a large portion of a small market.

150. undifferentiated target marketing

which is essentially a one-market strategy, sometimes referred to as an unsegmented mass market. Firms whose market approach is grounded in Porter's competitive strategy of low cost may use a relatively undifferentiated target marketing strategy based primarily on the resulting price advantage.

Firing a Customer

who exhibits a low predicted lifetime value, and instead investing resources in other more profitable customers. Of course, such action assumes other more attractive customers exist.

Big Data Sources

•Business systems •Social media platforms •Internet-connected devices •Mobile apps •Commercial entities •Government entities

Stand-alone brands

•separate the company from the brand which insulates the company if there is a problem with the brand but are expensive and offer little or no synergy between company brands (e.g., Unilever personal care products: AXE, Dove, Lifebuoy, Lux, Pond's, Rexona, Sunsilk, Vaseline).

Differentiated target marketing

differentiation, which as you read earlier in this chapter, means developing different value offerings for different targeted segments. Possible sources of differentiation are many and include innovation/R&D, product quality, service leadership, employees, convenience, brand image, technology, corporate social responsibility, and many others.

Which advertising media offers the advantage of high audience selectivity?

direct mail (Direct mail offers the advantage of high audience selectivity. It creates the feel of one-to-one marketing.)

A technology or high-end industrial product company is most likely to use a(n) ________ in foreign markets because customers expect the expertise of highly-trained, accessible personnel.

direct sales force (For some industries, creating a direct sales force is required because customers will demand that company salespeople be in the country. This is often the case in the technology and high-end industrial product industries.)

Information can be misunderstood or made to fit existing beliefs, a process known as selective ________.

distortion (Information can be misunderstood or made to fit existing beliefs, a process known as selective distortion.)

Cho, the international sales manager at a fashion house, is concerned that the euro is stronger than the U.S. dollar. This would be identified in the ________ section of a global market research report.

economic (An accurate understanding of the current economic environment, such as gross domestic product growth, inflation, strength of the currency, and business cycle trends, is essential.)

Everything else being equal, ________ segmentation might lead a firm to offer its products based on some anticipated future payoff from the consumer.

educational (Everything else being equal, educational segmentation might lead a firm to offer its products based on some anticipated future payoff from the consumer.)

In the context of product testing, beta testing is designed to ________.

encourage customers to evaluate and provide feedback on a prototype (At some point, the company will want potential customers to begin testing the product. Beta testing encourages customers to evaluate and provide feedback on the prototype. The product may be close to the final configuration but beta tests allow for further product testing and refinement.)

What is the final element the marketing manager should implement in promotional strategy?

establish measures of results (The elements are identify targets for promotion, establish goals for promotion, select the promotion mix, develop the message, select media for use in promotion, prepare promotion budget, and establish measures of results.)

Target Marketing

evaluating the market segments, then making decisions about which among them is mostly worthy of investment of development.

The best place in a SWOT analysis to list the availability of credit for a firm seeking to expand through new construction of real estate is ________.

external opportunities (The best place in a SWOT analysis to list the availability of credit for a firm seeking to expand through new construction of real estate is external opportunities. Internal analysis reveals strengths and weaknesses, while external analysis points to potential opportunities and threats.)

Bart was awarded sales person of the year and was given a cruise for two by his company. This is an example of a(n) ________ reward.

extrinsic (Extrinsic rewards are those controlled and given by people other than the salesperson, such as managers and customers. They include pay, financial incentives, security, recognition, and promotion.)

Redefining the selling role within the firm to focus on customer business consultation and solutions is one way that CRM ________.

facilitates a customer-centric culture (At the strategic marketing level, a customer-centric culture includes redefining the selling role within the firm to focus on customer business consultation and solutions.)

Consumer Adoption and Diffusion Process

- Innovation diffusion - five stages before adopting a product.

Causes of Switching Behavior

- Pricing: high /increases /unfair /deceptive prices - Inconvenience: location /hours /wait time - Core Service Failure: service mistakes /billing errors /service catastrophe - Service Encounter Failures: uncaring /impolite /unresponsive /unknowledgeable - Response to Service Failure: negative or no or reluctant response - Competition: Found better service. - Ethical Problems: Cheating, hard selling, safety concerns, conflict of interest, and so on. - Involuntary Switching: Customer moved or provider closed.

160. Product Plan

- Product Line - Product Mix

Market Segment Analysis

- Segment Size and Growth Potential - Competitive Forces Related to the Segment - Strategic Fit of the Segment

120. Internal Information Sources

1. Customer orders - CRM - Operations Documents 2. Customer payments - Financial documents and databases 3. Customer inquiries - Marketing Documents and databases 4. Salesperson information systems - Salesperson generated data 5. Marketing Plans - Management Documents

Which of the following is LEAST likely to be true regarding marketing metrics?

Although marketing carries a stigma as a cost center, metrics such as ROI cannot indicate marketing success. (Appropriate and effective marketing metrics must be designed to identify, track, evaluate, and provide key benchmarks for improvement just as various financial metrics guide the financial management of the firm. Although, marketing carries a stigma as a cost center, metrics such as ROI can indicate marketing success.)

Selective awareness

An individual is exposed, on average, to between 2,000 and 3,000 messages daily. People cannot process, let alone retain, all those messages, so they employ a psychological tool known as selective awareness to help them focus on what is relevant and eliminate what is not. The challenge for marketers is breaking through people's decision rules, which are designed to reject the vast majority of stimuli they see every day

Firm culture

As discussed previously, successful marketing planning requires a culture that includes customer orientation as a core value. If a firm's culture does not value and support a customer orientation and customer-centric approach to the overall business, marketing planning will likely disappoint.

Situation Analysis (SWOT Analysis)

Assesses internal environment of a firm regarding its -Strengths Top -Weaknesses Top -Opportunities Bottom -Threats Bottom

five stages before adopting a product.

Awareness - know of the product, but insufficient information to move forward through the adoption process. Interest—receive additional information (advertising, word of mouth) and motivated to seek out added information for further evaluation. Evaluation—combine all information (word of mouth, reviews, advertising) and evaluate the product for trial purchase. Trial—purchase the product for the purpose of making a value decision. Adoption—purchase the product with the intent of becoming a dependable user.

________ occurs when channel members experience disagreements and their relationship becomes strained.

Channel conflict (Power can directly influence the relationships within the channel. Ultimately, channel conflict can occur in which channel members experience disagreements and their relationship can become strained or fall apart.)

________ power involves an explicit or implicit threat that a channel captain will invoke negative consequences on a channel member if it does not comply with the leader's request or expectations.

Coercive (Coercive power involves an explicit or implicit threat that a channel captain will invoke negative consequences on a channel member if it does not comply with the leader's request or expectations.)

Economic Conditions

Companies are keenly interested in the ability of their customers to purchase products and services

Marketing Research Process

Define the Research Problem - Establish Research Design - Search Secondary Sources - Collect the Data - Analyze the Data - Report the Findings

________ strategies can be intensive, selective, or exclusive.

Distribution (Distribution strategies can be intensive, selective, or exclusive.)

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

customer retention

Except in situations of monopoly (which creates forced loyalty), loyal customers by definition tend to also experience a high level of satisfaction.

________ is a central tenet of marketing in which a person gives up something of value to them for something else they desire to have.

Exchange (A central tenet of marketing is the concept of exchange, in which people give up something of value to them for something else they desire to have. Usually an exchange is facilitated by money, but not always.)

________ means that structure, processes and tools, and managerial knowledge and commitment are formally established in support of the culture.

Formalization (Formalization means that structure, processes and tools, and managerial knowledge and commitment are formally established in support of the culture. With these elements in place, strategies and programs can be successfully developed and executed toward the goals related to customers, accompanied by a high degree of confidence they will yield the desired results.)

customer lifetime value

Fredrick Reichheld in his books on customer loyalty has demonstrated time and again that investment in CRM yields more successful long-term relationships with customers, and that these relationships pay handsomely in terms of cost savings, revenue growth, profits, referrals, and other important business success factors

70. Which gap in the Gap Model of Service Quality fundamentally represents customer expectations management through marketing communications?

Gap 4: actual service delivery versus what the firm promises it delivers (Gap 4 represents customer expectations management through marketing communications. The messages a marketing manager puts out through various communication vehicles are in large measure what sets the expectations for customers. Thus, deceptive advertising, overly zealous sales pitches, and coupon promotions backed by too little stock to handle demand all create a negative gap at Gap 4.)

Cateleya was born in 2001. She is a member of ________.

Generation Z (People born 1994 to present constitute Generation Z.)

110. The Marketing Plan (G-STIC Framework)

Goal - Strategy - Tactics - Implementation - Control

Action plans

Implementation strategy that describes specific tasks and the resources needed, who is responsible, and metrics to track success.

________ refers to products sold at prices below cost to attract shoppers to a store.

Loss leader (Target Corporation was at one point sued by the State of Oklahoma for violating minimum markup laws by offering loss leader products. Target eventually prevailed by using an ad campaign to highlight higher prices being charged in Oklahoma compared to the rest of the country due to the state law. The law was eventually repealed as part of the Consumer Goods Pricing Act.)

________ include a set of methods facilitated by technology that utilize individual-level and market-level data to identify and communicate meaningful patterns within the data for the purpose of improving marketing-related decisions.

Marketing analytics (Marketing analytics include a set of methods facilitated by technology that utilize individual-level and market-level data to identify and communicate meaningful patterns within the data for the purpose of improving marketing-related decisions)

________ require that a certain percentage markup be applied to all products.

Minimum markup laws (Closely associated with fair trade laws are minimum markup laws, which require that a certain percentage markup be applied to products.)

Types of Values

Monetary, Functional, Psychological

Firm leadership

Of course, the CEO must believe in and continuously sup- port (financially and otherwise) the structure, systems, and culture necessary for market-driven strategic planning. JetBlue's employee-friendly—and customer-friendly—approach epitomizes such leadership and commitment.

Family branding advantages

One negative event reflects on all (e.g., Heinz ketchup and other condiments).

Competition

One of the most important external environmental factors to consider is the competition. Companies want to know as much as possible about competitors' products and strategies. In highly competitive markets, companies are constantly adjusting their strategies to the competition. Airlines, for example, track competitor pricing and adjust their pricing almost immediately to changes in the marketplace.

________ is a distinct advantage that personal selling offers over other marketing communications methods.

Personal relationship with a customer (Salespeople and the personal selling function are the single most effective approach for establishing and enhancing the personal relationship between company and customer.)

Contingency plans

Plans that can be implemented should something happen that negates the viability of the marketing plan.

External Forces Affecting the Marketing Decisions

Political Legal, tech transformation, economic contributions, natural world, competition, demographic - population of interest, ethnic groups, geographic changes

Political/Legal

Political judgments and, more broadly, the legal environment significantly affect company decisions and sometimes an entire industry.

Demographics

Populations of Interest, Ethnic Groups, Geographic Changes

Forces Driving Industry Competition

Potential entrants + suppliers power + Buyers power + substitutes = industry competitors

Marketing control

Process of measuring marketing results and adjusting the marketing plan as needed.

Segment Size and Growth Potential

Reckitt Benckiser is a British consumer goods company known for brands such as Dettol and (the best-selling antiseptic in the world), Veet (the best-selling depilatory brand globally), and smaller brands such as Clearasil, Lysol. Its biggest brands, however, are less well-known in the United States, so to move into U.S. markets, where it was not well represented, the company acquired Mucinex, Delsym, and eventually Cepacol, which positioned it squarely in the cough-and-cold market

stock-keeping unit (SKU)

SKU is a unique identification number used to track a product through a distribution system, inventory management, and pricing.

80. _______ is one of the most commonly provided channel intermediary activities.

Storage (Relatively few producers operate their own transportation networks or provide warehousing facilities. Producers make money by pushing finished goods out the door and into the channel of distribution. As such, transportation and storage functions are among the most commonly provided channel intermediary activities.)

Strategic Fit of the Segment

Strategic fit means there is a good match of a target market to the firm's internal structure, culture, goals, and resource capabilities. In the case of the Reckitt Benckiser acquisition of Mucinex and Delsym, the advantages and strategic fit were clear. The company already possessed similar international brands, and so it had experience with sourcing, production, and marketing. The brands also fit in well with the existing cleaning and disinfectant lines owned by Reckitt Benckiser, such as Lysol, since purchases of disinfectants often go hand-in-hand with purchases of cough or cold medication. The nature of the acquired brands was a great strategic fit for much of what Reckitt Benckiser already does in the market.

130. Return on Customer Investment

This analysis provides a very useful strategic tool for deciding which customers deserve what levels of investment of various resources (money, people, time, information, etc.).

Firm structure and systems

To what degree does the present organizational structure facilitate or impede successful market-driven strategic planning? Are the firm's internal systems set up and properly aligned to effectively serve customers?

Which of the following would NOT be a good product for using gender segmentation?

Toothpaste (A wide variety of products are clearly marketed for the primary consumption of either men or women, but not both—think Rogaine, cigars, and athletic supporters versus pregnancy tests, lipstick, and bras, for example.)

Natural World

Two key issues drive marketers' need to know about the natural world. First, individuals, governments, and business all recognize the need to manage the available resources well. A second concern regarding the natural world is pollution. In some parts of the world, pollution takes a significant toll on the quality of life and economic growth in a community.

140. Subculture

a group within the culture that shares similar cultural artifacts created by differences in ethnicity, religion, race, or geography. While part of the larger culture, subcultures are also different from each other. The United States is perhaps the best example of a country with a strong national culture that also has a number of distinct subcultures

100. Carlo receives a paycheck every other Friday for the same amount. Carlos receives ________.

a salary (A salary is a fixed sum of money paid at regular intervals. Most firms that pay a salary also offer incentives or incentive pay to encourage better performance.)

When an item is not in stock, it is called ________. In this case, inbound replenishment processes are triggered.

a stock-out (If the item ordered is in stock, outbound processing from inventory occurs. If the item is not in stock, referred to as a stock-out, then inbound replenishment processes are triggered.)

Culture

a system of values, beliefs, and morals shared by a particular group of people that permeate over time.

Perception

a system to select, organize, and interpret information to create a useful, informed picture of the world.

40.Small changes in consumer demand can lead to considerable shifts in business product demand and are referred to as the ________.

acceleration effect (Small changes in consumer demand can lead to considerable shifts in business product demand and are referred to as the acceleration effect.)

customized (one-to-one) marketing

advocates that firms should direct energy and resources into establishing a learning relationship with each customer and then connect that knowledge with the firm's production and service capabilities to fulfill that customer's needs in as custom a manner as possible.

The marketing manager of Toddles Baby Food is redesigning the package for her product. She is trying to select a color that is visually appealing and is distinctive so that her brand is easy to identify. In the context of effective packaging, the marketing manager of Toddles is focusing on ________.

aesthetics (Color plays a significant role in package design, indeed, in the entire branding strategy. It is an aesthetic feature.)

Goals and objectives should be set ________.

after completion of market research, situation analysis, and competitor analysis (Based on what is learned from the situation analysis, competitor analysis, and market research, goals and objectives can now be developed related to what the marketing manager intends to accomplish with the marketing plan.)

Product Mix

all the products offered by a company

customer loyalty

almost always is directly related to the various sources of value the customer is presently deriving from the relationship with the company and its brands.

Language

an essential cultural building block and the primary communication tool in society. At the most basic level it is important to understand the language, making sure that words are understood correctly. However, language conveys much more about a society and its values. Scandinavian cultures, for example, place a high value on spending time together. They have more words to express "being together" than English does, and their meaning implies a more intimate sharing of thoughts and ideas.

product

anything that delivers value to satisfy a need or want and includes physical merchandise, services, events, people, places, organizations, information, or ideas.

At the ________ stage of the AIDA model, marketing managers mostly use promotions to gain awareness of the offering with the market's innovators and early adopters.

attention (At the attention stage of the AIDA model, marketing managers hope to use promotions to gain awareness of their offering with the innovators and early adopters.)

In the context of market channels, the use of local distribution networks to reach target customers is identified in the ________ channel factor.

coverage (Local distribution networks around the world may lack full exposure to a given market. Even in the United States, for example, complete coverage of a consumer market necessitates multiple distribution channels. As a result, it is necessary to evaluate which distribution network best reaches the target customers, which may not necessarily be the network with the widest distribution.)

The assessment of which of the following attributes would require customers to have expertise not generally shared by the public?

credence (In many cases, a customer cannot make a reasonable evaluation of the quality of a service even after use. To assess these credence attributes would require customers to have expertise not generally shared by the public. These services have industry or trade groups that self-regulate the quality of their services and serve as a clearinghouse for information and referrals.)

Which phase of the process cycle for customer relationship management represents the actual implementation of the customer strategies and programs?

customer interaction (The customer interaction phase represents the actual implementation of the customer strategies and programs. This includes the personal selling effort, as well as all other customer-directed interactions.)

A(n) ________ is a person's belief that understanding and satisfying customers, whether internal or external to the organization, is central to the proper execution of his or her job.

customer mind-set (A customer mind-set, which is a person's belief that understanding and satisfying customers, whether internal or external to the organization, is central to the proper execution of his or her job.)

Exceeding customer expectations is often referred to as customer ________.

delight (Exceeding customer expectations is often referred to as customer delight, which has been shown to correlate highly with loyalty and high return on customer investment.)

The marketing manager for Ned's Bar and Grill notices that his typical customer is a male college student. In the context of external information sources, he is using ________ to define his market.

demographics (Demographics help define a market. How old is a typical customer? How educated? What is the typical customer's income? These are all demographic characteristics that help describe a market.)

90. When Sonja bought her new Samsung phone, she couldn't wait to show her co-workers its new features, all of which were widely-advertised by the company. The next day, three of them went out and bought the same phone. Which stage of the AIDA model was created through Sonja's actions?

desire (Many people undoubtedly let their friends and co-workers see and touch their prized possession—sharing the experience of its functionality and form. This creates desire for the product by others.)

The essential marketing objective in the growth phase of the product life cycle (PLC) is to ________.

differentiate the product from those of new competitors (The essential marketing objective in the growth phase of the product life cycle (PLC) is to differentiate the product from those of new competitors. During this phase, sales grow at increasing rate.)

Firms that employ service as a marketing strategy must plan ahead for service ________ and train employees to properly execute service recovery.

failure (Much research in services marketing has shown that service failure, when properly handled through service recovery, does not necessarily impact customer satisfaction, loyalty, or retention unless service failures become habitual. All firms employing service as a marketing strategy must plan ahead for the eventuality of service failures and train employees to properly execute service recovery.)

The innovation diffusion process is how long it takes a product to move from ________.

first purchase to last purchase (A product can be in the market for a long time and still be considered an innovation to an individual consumer. The innovation diffusion process is how long it takes a product to move from first purchase to last purchase (the last set of users to adopt the product).)

Innovation diffusion process

how long it takes a product to move from first purchase to last purchase (the last set of users to adopt the product).

brand identity

identifiable and meaningful differences among products in the market space

value message

include the whole bundle of benefits the company promises to deliver - not just the benefits of the product itself. communicating, delivering, and exchanging those offerings

Enhanced product

includes additional features, designs, and innovation that exceed expectations (e.g., frequent flyer program, fun and entertaining flight attendants).

30. A dashboard creates transparency in marketing's goals, operations, and performance. This in turn ________.

increases marketing's perceived credibility and trust by others (A dashboard creates transparency in marketing's goals, operations, and performance, creating stronger alliances between marketing and the rest of the firm. This elevates marketing's perceived accountability, earning greater trust and confidence from leadership and other key decision makers and influencers.)

Characteristics of Services

intangibility, inseparability, variability, perishability

Branding strategy

integral part of the product development process because companies know that successful new products result from a well conceived branding strategy.

As noted in the text, Caesars Entertainment points with pride to the fact that everyone in the firm understands and can articulate its branding and values. This would be an indication that Caesars is devoted to ________.

internal marketing to achieve the goals in the service-profit chain (Employees must have a deep understanding of the brand and must be able to consistently articulate a clear, concise message to customers that reflects the firm's service strategy and branding. At Caesars, Loveman points with pride to the fact that everyone in the firm understands and can articulate its branding and values.)

Comparative advertising works well when a brand ________.

is not the leader in its product category (Comparative advertising works especially well when a brand is not number one in a product category because the market leader can be put on the defensive.)

Peter Drucker, the father of modern management, believed that marketing ________.

is the whole business as seen from the customer's point of view. (According to Peter Drucker, marketing is so basic that it cannot be considered a separate function within the business. It is a central dimension of the entire business. It is the whole business seen from the customer's point of view. Concern and responsibility for marketing must permeate all areas of the enterprise.)

In addition to culture, three factors are particularly relevant in consumer behavior. They are ________.

language, values, and nonverbal communications (While culture affects people in many ways, three factors are particularly relevant in consumer behavior: language, values, and nonverbal communications.)

Offering other manufacturers the right to use the brand in exchange for a set fee or percentage of sales is known as ________.

licensing (Companies can choose to extend their brand by licensing—offering other manufacturers the right to use the brand in exchange for a set fee or percentage of sales. There is very little risk to the brand sponsor, and licensing can generate incremental revenue.)

In the maturity phase of the product life cycle, the targeted consumers are ________.

majority adopters (In the maturity phase of the product life cycle, the targeted consumers are majority adopters. During this stage, marginal competitors tend to drop out.)

In the context of identifying specific consumer trends, ________ is not a product issue for international consumer marketers.

manufacturing (Four specific product issues face international consumer marketers—quality, fitting the product to the culture, brand strategy, and country of origin.)

The owner of NOP Detergents is working with an art designer on the label for a new line of naturally- scented detergents. They are trying to come up with the best way to place the brand and logo along with the other required information on the label. They are working on the ________ requirements of labeling.

marketing (Since package labeling represents the last marketing opportunity before the purchase decision, as much label space as possible is allocated to marketing communications. Brand, logo, product image, and other relevant marketing messages take up the dominant space on the label.)

The sales manager at a company wants to keep informed, so he collects, analyzes, and stores data from the macro environment on a continuous basis. This illustrates the concept of ________.

marketing intelligence (Staying connected to the business environment is no longer optional. Success is based, in part, on both the quality and quantity of information available to management. As a result, most companies engage in collecting, analyzing, and storing data from the macro environment on a continuous basis known as marketing intelligence.)

Josh notices the low-fuel light is on as he is driving home. Without any additional information, he stops at the local station on the way home to fill up. This is an example of a(n) ________.

minimal information search (A minimal information search is when a consumer makes a purchase decision based on very little information or investigation.)

When Ford Motor Company is familiar with a product and supplier, but decides to seek additional information on new products in the marketplace, it is in the process of a(n) ________.

modified rebuy (A modified rebuy occurs when the customer is familiar with the product and supplier but is looking for additional information.)

The face-to-face time between customer and service provider is often called the ________ because that is when customer judgments take place

moment of truth (The face-to-face time between customer and service provider is often called the moment of truth. Most customer judgments take place at that moment.)

service economy

more than 80% of U.S. jobs are service-related.

Customers view new products much differently than companies view them. Customers care only if a product is ________.

new to them (While the company follows a specific strategy in creating a new product, the customer is unaware and, in reality, often does not really care about how the product arrived in the marketplace. The customer's perspective is much more narrow and self-directed. The customer is most interested in an answer to the fundamental question—is this product new to me?)

What is an example of measured media?

newspaper (Traditional forms of advertising are considered measured media—magazine, newspaper, TV, radio, outdoor, and display advertising on the Internet.)

reduces customer switching

not all satisfied customers are loyal. If a competitor comes along with a better value proposition, or if a value proposition begins to slip or is not effectively communicated, customers who are presently satisfied become good candidates for switching to another company's products

The manager of Gina's Groceries wanted to see how customers would react to some new displays. To collect this information, she posted employees where they could see the display and had them record how long customers looked at it, whether they picked up the item, and if they took the item with them. In this case, she is using ________ for her market research.

observational data (The manager of Gina's Groceries is collecting observational data to solve her research problem. Observational data are the behavioral patterns among the population of interest. One of the most common uses of this type of research is in retailing. Retailers' watch how people move through a store, noting what aisles they go down and where they spend their time.)

When a competitor used its logo in a disparaging way in an advertisement, Max Corp. sued. It won the suit on the basis that the competitor violated its trademark. Which company brand role does this scenario exemplify?

offering legal protection for a product (Brands perform important roles for the brand's sponsor (manufacturer, distributor, or retailer). They offer legal protection for the product through a trademark. By protecting the brand, the company is able to defend essential product elements such as its features, patentable ideas in manufacturing or product design, and packaging.)

The concept of engaging in a learning relationship with customers and directing the firm's resources to making each product or service as customized as possible is known as ________.

one-to-one marketing (In their books and articles, Don Peppers and Martha Rogers popularized the term one-to-one marketing, which advocates that firms should direct energy and resources into establishing a learning relationship with each customer and then connect that knowledge with the firm's production and service capabilities to fulfill that customer's needs in as custom a manner as possible.)

P&G solicits meaningful interaction from customers on its website rather than at independent sites. P&G recognizes the value of ________.

online brand communities (In recent years marketing managers have led their organizations to understand the potential of creating their own online brand communities, where customers can engage in meaningful interaction right on the organization's own website rather than at independent sites.)

Dan is creating a survey for his company. The question he is currently working on asks his business-to-business customers to describe the ideal purchasing transaction. Dan is utilizing a(n) ________ question.

open-ended (Since Dan asks his customers to describe their preferences rather than to give specific responses, he is utilizing an open-ended question. Open-ended questions encourage respondents to be expressive and offer the opportunity to provide more detailed, qualitative responses. As a result, these kinds of questions are often used in exploratory research.)

Maria, the marketing manager of an automobile dealership, is crafting a SWOT analysis. In this case, she should list competitors that have gone bankrupt under ________.

opportunities (Maria should list competitors that have gone bankrupt under opportunities. Internal analysis reveals strengths and weaknesses, while external analysis points to potential opportunities and threats.)

An example of a push strategy is ________.

paying a shelf fee (Push strategies usually are supported by heavy allowance payments to intermediaries for helping accomplish the manufacturer's goals. Examples include funding an extra incentive to a wholesale drug salesperson for pushing a particular medication to an independent pharmacy, or paying a slotting allowance or shelf fee to secure distribution in an intermediary's inventory listing and warehouse or onto a retail shelf.)

Phillippe needs to fire a manager of a French subsidiary of his company. He recently found that French law makes it difficult to terminate employees. This would be identified in the ________ section of a global market research report.

political, legal (Labor laws vary widely around the world. Germany and France, for example, make it difficult to terminate someone once that person has been hired, while Great Britain's termination policies are more consistent with those of the United States.)

10. Many countries base their court systems on those of former rulers. For example, the Spanish ruled many South American countries; therefore, the court system is based on code or civil law. This would be identified in the ________ section of a global market research report.

political, legal (Learning the legal landscape is fundamental before committing resources in a foreign market.)

In proposing a ________ strategy, the marketing manager usually is convinced that a strong price-quality relationship exists for the product.

price skimming (A strategy of price skimming addresses the objective of entering a market at a relatively high price point. In proposing price skimming, the marketing manager usually is convinced that a strong price-quality relationship exists for the product.)

Values

principles shared by a society that assert positive ideals. These principles are often viewed on a continuum.

Channel members add their value by bridging gaps in form, time, place, and ownership that naturally exist between ________.

producers and consumers (If an intermediary doesn't carry its weight, the channel structure eventually will change accordingly to maximize efficiencies across the utilities. Thus, channel members add their value by bridging gaps in form, time, place, and ownership that naturally exist between producers and consumers.)

service

product in the sense that it represents a bundle of benefits that can satisfy customer wants and needs, yet it does so without physical form.

Coca-Cola bottles placed on the desks of judges of the show American Idol is an example of the sales promotion approach of ________.

product placements (Coca-Cola bottles placed on the desks of judges of the show American Idol is an example of the sales promotion approach of product placements, which involve having product images appear in movies, on television, or in photographs in print media.)

In the context of change drivers impacting the future of marketing, marketing (little m) ________.

serves the firm and its stakeholders at a functional level (In contrast to Marketing (Big M), marketing (little m) serves the firm and its stakeholders at a functional or operational level; hence, marketing (little m) is often thought of as tactical marketing. In fact, marketing (little m) almost always takes place at the functional or operational level of a firm.)

60. Heinz revolutionized the industry when it introduced its inverted bottle because consumers had complained for years about how hard it was to get out that last bit of ketchup. The company spent three years designing the convenient container, which is equipped with a vacuum cap that stops dry ketchup from forming around the lid. Which of the following packaging objectives does this exemplify?

promote usage (Innovative package designs encourage product use. Heinz revolutionized the 170-year-old industry when it introduced its inverted bottle (consumers had complained for years about how hard it was to squeeze out that last bit of ketchup). Since the product's introduction, Heinz ketchup sales consistently beat the industry average sales growth.)

Bella is a discount furniture store. Most of the items in the store are overstock and hence tend to be more inexpensive than other furniture. Recently Bella started to display the manufacturers' suggested retail price next to the price it charges to show the savings. Bella is using a ________ strategy.

reference pricing (Reference pricing is implemented in a number of ways. Sometimes a store might show a manufacturer's suggested list price next to the actual price the product is offered for in other stores.)

The local sandwich shop has always sold calorie-laden sandwiches and recently introduced six new sandwiches featuring vegetables and lower-calorie meats and cheeses to appeal to health-conscious customers. What strategy is the sandwich shop pursuing?

repositioning (Repositioning changes the present consumer perceptions of a product.)

The individual's learned proficiency at performing necessary sales tasks is called ________.

sales skill level (Sales skill levels are the individual's learned proficiency at performing necessary sales tasks. They include such learned abilities as interpersonal skills, leadership, technical knowledge, and presentation skills.)

A marketing manager is considering a new advertising campaign for Guzzle Beverages. She purchases six months of scanner data for Cruncheez Snack Foods, a company that recently ran a similar campaign. She wants to use this information to determine the campaign's effectiveness before implementing it for Guzzle. In this case, the marketing manager is using ________ to collect the needed information for research.

secondary data (In the scenario, the marketing manager is using secondary data to collect the needed information for research. Secondary data are almost always part of marketing research. Searching a wide variety of sources and compiling additional information provide greater insight to the research problem and supplement the primary data collected for a specific study.)

50. At one time, specialized companies catered to markets segmented by race. Today ________.

the segments have become targets of mainstream businesses that offer specialized products (In years past, very few products were marketed specifically to the African-American segment other than by firms specializing only in that segment. Hair and beauty product pioneer Johnson Products, founded in 1954, was an early believer in the power of developing products such as Ultra Sheen, Afro Sheen, Classy Curl, and others that brought the company consistently double-digit sales increases throughout the 1970s and 1980s. Ultimately, the product line became so attractive that it was acquired by mainstream beauty care manufacturer L'Oréal and eventually by Well a Corporation, another broad-line marketer of beauty care products. Today, almost all major cosmetic and beauty aid firms, from Avon to P&G, market products specifically designed to appeal to this vital market segment.)

Selective Distortion

there is no guarantee it will be interpreted accurately. Information can be misunderstood or made to fit existing beliefs, a process

Malala, the marketing manager of an automobile dealership, is crafting a SWOT analysis. In this case, she should include the downturn in the U.S. economy and tightening of the credit markets under ________.

threats (Malala, in the scenario, should include the downturn in the U.S. economy and tightening of the credit markets under threats. Internal analysis reveals strengths and weaknesses, while external analysis points to potential opportunities and threats.)

20. Which of the following is most likely to be considered a goal rather than an objective?

to be the leader in one's field (Goals, general statements of what the firm wishes to accomplish in support of the mission and vision, eventually become refined into specific, measurable, and (hopefully) attainable objectives for the firm.)

All of these are package objectives EXCEPT ________.

to entertain (A product package protects, communicates, promotes usage, and provides a layer of security and verification. It is not meant to entertain.)

In order for Marketing (Big M) to succeed, it must be championed by ________.

top management (Finding somebody at the top of the firm to consistently champion this Marketing (Big M) business philosophy is crucial for its success. The CEO is the most appropriate person for this role, perhaps manifest through the CMO (chief marketing officer).

Barb's Butters recently changed the shape of its packages from a pouch to a tub because product testing revealed that the tubs created less mess for consumers. Which of the following package objectives does the change in shape exemplify?

usage promotion (Package design also encourages product use. By creating a more user-friendly package, a company can encourage consumers to buy its product.)

Market-driven strategic planning

used to describe the process at the corporate or strategic business unit (SBU) level of marshaling the various resource and functional areas of the firm toward a central purpose around the customer.

Product Life Cycle

useful tool because it provides a strategic framework for market analysis, (2) tracks historical trends, and (3) identifies future market conditions. The PLC generally refers to a product category (bicycles) rather than a product item (specific brand).