MKTG 300 Unit 1

How a product or service will be conceived or designed, how much it should cost, where and how it will be promoted, and how it will get to the consumer are all elements of

a marketing plan.

When marketers monitor the economic situation affecting their target markets, they are likely to monitor changes in all of the following except

age

Compared to the average company, firms with strong ethical climates tend to

be more socially responsible.

For every consumer who purchases a pair of TOMS shoes for $55, the company promises that a needy child will receive a pair of shoes. TOMS shoes is actively engaging in

corporate social responsibility.

The fundamental goal of marketers when creating goods, services, or combinations of both is to

create value

The shared meanings, beliefs, morals, values, and customs of a group of people constitute their

culture

Which of these is a macroenvironmental factor?

culture

The sale of products that may damage the environment, the use of sweatshop labor, and the marketing of dangerous products are examples of

marketing ethical issues.

Traditionally, marketing activities have been divided into product, price, place, and promotion. Select the term that best describes the four Ps.

marketing mix

Micromarketing is also referred to as

one-to-one marketing.

Franco, a former retailer, has been living in the United States for five years and wants to start a business. He does not have an existing firm or a product, and he doesn't have a lot of capital, but since he loves McDonald's food, he decides to

open a McDonald's franchise.

In a SWOT analysis, increasing gasoline prices would represent a potential __________ for manufacturers of electric cars.

opportunity

Which element of the marketing mix deals with supply chain management?

place

Which of the following is not one of the four overarching strategies to create and deliver value and to develop sustainable competitive advantages?

planning excellence

We often see advertisements touting a product as being made with natural ingredients, or being long-lasting. Marketers using these types of promotions are positioning their products based primarily on

product attributes.

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

In 2007, Apple Computer introduced its new iPhone, adding a cellular telephone, a camera, and Internet access to its iPod. The company was pursuing a(n) __________ strategy.

product development

The Big Mac Index is a novel measure of

purchasing power parity.

To develop psychographic segments, the marketer must understand consumers'

self-values, self-concept, and lifestyles.

Which of the following defines a value proposition?

the unique value that a product or service provides to customers

For each target market, General Imaging Corporation, a manufacturer of imaging equipment, will engage in positioning by adjusting its marketing mix variables in order to give customers

a clear, distinctive, and desirable understanding of their products relative to competing products.

In marketing terms, the trade of things of value between the buyer and the seller so that each is better off as a result is referred to as

a marketing exchange.

Over the last few months, Juan and his colleagues have analyzed the current business situation and identified target markets for his firm's personal care products. Finally, they developed the products, prices, distribution, and promotion that should appeal to each of those target markets. In doing so, Juan has also identified what he believes is an advantage his competitors cannot match. Juan and his colleagues have been developing

a marketing strategy.

Nordstrom, an upscale department store, has a well-known reputation for going the extra mile to serve its customers. This reputation for excellent customer service will most likely result in

a sustainable competitive advantage.

When a pharmaceutical company develops a new medication, it typically applies for a patent in order to prevent competitors from developing copycat products for several years. Pharmaceutical companies apply for patents to establish

a sustainable competitive advantage.

One alternative to enhance the service for Amazon Prime customers is to increase the number of order fulfillment centers to provide faster delivery and service. Which of the following would be considered Pros for this alternative?

a. increased speed of operations e. long-term cost savings f. sustained competitive advantage

Julia is considering a career in marketing. She is concerned about the image of marketers as fast-talking, high-pressure people who care only about making a sale. When reading about the core aspects of marketing, Julia is relieved to see that in marketing

all parties to an exchange should be satisfied.

What is the core issue/problem Amazon is trying to solve with the proposed drones?

b. Improve service to Amazon Prime customers by increasing the speed in which light weight products that are ordered on-line can be delivered.

The cost of offering Amazon Prime, $79/year for free two-day delivery & access to e-books & online videos, is growing in popularity but its profitability is questionable. Select the alternatives that Amazon should further analyze to solve its profitability problem.

b. Raise the price of Amazon Prime. c. Introduce Prime membership levels - base price for free shipping and an upgrade price for digital content. d. Increase the price of Prime but introduce a rewards system for its members.

__________ segmentation is the segmentation method most directly related to value creation for consumers.

benefit

The basic difference between a good and a service is that a good

can be physically touched.

The centerpiece of the marketing environment analysis framework is

consumers

The four Ps make up the marketing mix, which is the __________ set of activities that the firm uses to respond to the wants and needs of its target markets.

controllable

Every time a consumer surfs the web and clicks on a site, online marketers can place _____ on that user's computer, showing them how that consumer navigates the web and what he or she does or does not buy.

cookies

The firms that work along with the focal firm to provide goods and services to consumers are viewed as

corporate partners.

A local art gallery keeps information on its customers regarding their preferences for certain artists as well as the style of art that interests them. The gallery uses this information to inform the customers when new products arrive from their favorite artists and targets them with special promotions. In this way, the gallery is using _______ to build loyalty among its customers.

customer relationship management

Franco uses a database software system to remind him when his customers should be ready to reorder his industrial cleaning products. With this reminder system, Franco contacts his customers when they are most likely to be "in the buying mode." Franco's system is part of

customer relationship management.

Beer marketers know that high school educated, working-class males from the ages of 25 to 40 make an attractive market for their products. This is a __________ segment of the beer market.

demographic

When marketers look at advertising media they often begin with viewer or listener profiles such as age, income, gender, and race. They then compare the media profile with their target audience. These marketers are using __________ to see if the media "fit" with their advertising agenda.

demographics

As noted in your text, global segmenting, targeting, and positioning are more complicated than domestic segmenting and positioning because of cultural nuances, significant subcultures within countries, and

differences in the way consumers see themselves and in the way they see products and services.

When firms target several market segments with a different offering for each segment it is using which targeting strategy?

differentiated

Sydney's Emporium has 59 stores in the United States and wants to expand globally. Sydney's wants to achieve the highest possible returns, and is not concerned about pursuing a high-risk strategy as long as it maintains complete control over its stores. The best global entry strategy for Sydney's is most likely

direct investment.

Karen has identified four potential market segments for her Rent-A-Chef home meal catering service. The next step is to

evaluate the attractiveness of each segment.

Culture affects

every aspect of consumers' purchase decisions.

When a company decides to minimize risk and enter a global market by shipping its products to buyers in other countries, this is known as

exporting.

When entering a foreign market, the least risky strategy is

exporting.

Globalization refers to the processes by which goods, services, capital, people, information, and ideas

flow across national borders.

Many of the best-known American retailers, like Starbucks and McDonald's, have contractual agreements with another firm or individuals, allowing its businesses to operate overseas. These companies expanded globally using

franchising.

Airlines were among the first retailers to embrace loyalty segmentation when they created

frequent-flyer programs.

Some companies have been accused of taking advantage of the current social trend of green marketing, positioning their products as environmentally friendly when this may not actually be the case. This is called

greenwashing

The term trade deficit refers to

higher levels of imports than exports.

Sally is in the new marketing department of a midsized lawn and garden company. She is working on the first marketing plan the firm has ever used. She has defined the mission and objectives, and she just finished a situation analysis for the firm. The next step is to

identify and evaluate opportunities by conducting segmentation, targeting, and positioning analysis.

Garrett has just purchased a beer distributorship. He wants to increase the visibility of his firm in local markets, but he knows there are a number of regulations and socially accepted practices associated with promoting alcoholic beverages. According to the framework for ethical decision making, the first thing Garrett should do is to

identify issues that need to be addressed.

Generally, firms entering foreign markets begin with

less risky strategies first.

Which of the following is least likely to provide a sustainable competitive advantage?

lowering prices

Tariffs protect domestic producers by

making imported products more expensive.

Which of the following is a core aspect of marketing?

making product, place, promotion, and price decisions

Many companies use the Internet to allow consumers to design customized products; for example, Nike allows customers to order shoes with custom color combinations. This is a form of

micromarketing.

Yvonne knows her firm must look at everything it does from a consumer's point of view. One major difficulty is that consumers' __________ change(s) over time.

needs, wants, and ability to purchase

Samantha is charged with assessing her company's external environment as part of a SWOT analysis. Samantha will study her company's

opportunities and threats.

For U.S. businesses with strong export capabilities, expansion of U.S. trade agreements with other countries creates

opportunities.

A __________ is often used to illustrate the position of a firm's products or brands in consumers' minds.

perceptual map

Whenever Donald calls on potential pest control customers, he emphasizes the fact that, unlike the national franchise competitors, he is a local business person and has been in business over 20 years. Donald is __________ his business relative to his competition.

positioning

The ethical decision-making framework includes all of the following steps except

promote the firm's corporate social responsibility efforts.

Marketers have found that __________ segmentation is often more useful for predicting consumer behavior than __________ segmentation.

psychographic; demographic

Education marketers know that the primary motivations of most nontraditional college students are self-respect and self-fulfillment, so they craft their marketing message to emphasize the benefits these consumers are looking for in a college education. Which type of segmentation method was used to segment this market?

psychographics

Generational cohorts are groups of people of the same generation who have similar __________ because they have shared experiences and are in the same stage of life.

purchase behaviors

Ryan wants to sell personal website services to American soldiers in Afghanistan. Because of the difficulty of communicating with people in a war zone, Ryan may have trouble with this segment not being

reachable.

When Starbucks first opened, many critics suggested, "No one will pay $4 for a cup of coffee." Starbucks's critics suggested consumers would not be __________ to the company's offerings.

responsive

Near the end of the model year, Move-Them-Out automobile dealership had an unusually high inventory level. The manager increased her advertising spending and gave extra incentives to its salespeople. Move-Them-Out operates as if it were in the __________ era.v

sales-oriented

The prevailing marketing strategy of the __________ era was to find customers for inventories that went unsold.

sales-oriented

The primary ethical dilemma facing managers is how to balance

shareholder interests with the needs of society.

Fernando was thrilled to find out that his company had just decided to invest a great deal of money in the product he was managing. He knows that even with its recent high rate of growth and the fact that it dominates its market, he would need more money to establish it firmly. Using the BCG portfolio analysis, his product would be classified as a(n)

star

As part of her company's SWOT analysis, Valerie is assessing the company's internal environment, including

strengths and weaknesses.

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 marketing environment, the first factor that affects the consumer is

the firm itself.

Some banks have begun offering special accounts designed to attract junior high school students. These kids save in such small amounts that the accounts cost banks more to maintain than they are worth. But bankers know that consumers are creatures of habit and hope that the young people they serve now will become adult customers. These banks recognize

the lifetime value of customers.

When referring to "exchange," marketers are focusing on

the trading of things of value

For products like clothespins, which provide the same benefit for all consumers, marketers should probably use a(n) ________ strategy.

undifferentiated targeting

For some products, marketers can combine education level with other data like occupation and income to obtain

useful predictions of purchase behavior.

What is the name of the process in which customers collaborate in product design, often providing additional value to the firm's customers?

value cocreation

Christie has just started with a travel agency, and she has been offering clients and prospective clients a range of packaged tours. She is concerned because the commission she is earning on her sales is lower than she had hoped. Her colleague Peter, who has been with the agency for several years, is having a great deal of success by working closely with the clients, seeking their ideas, and building customized tour packages for each one based on their suggestions. Peter's approach is based on

value cocreation.

In value-based marketing, the promotion element of the four Ps communicates the ________ to customers through a variety of media.

value proposition

Serena studies her customer profiles, market research data, complaints, and other information, attempting to better understand what her customers want. Serena most likely operates in the __________ era of marketing.

value-based marketing

Marney bought a dress from a retail store. Which type of transaction was Marney participating in?

B2C

Christy, who was born in 1955, advocated for "casual Friday" at her workplace. Christy is a member of which generational cohort?

Baby Boomer

The Kiva robots are used to deliver packages to consumer homes.

False

The current lack of capability of drones being able to sense trees and other objects in order to avoid collisions is an example of a PEST - Social/cultural issue that translates into a SWOT- Strength.

False

Which of the following is not a question posed in the ethical decision-making metric?

Will this action help advance my career?

Which generation's members are also known as Millennials?

Gen Y

Match a. To be Earth's most customer-centric company, where customers can find and discover anything they might want to buy online, and endeavors to offer its customers the lowest possible prices b. We save people money so they can live better. c. To refresh the world. to inspire moments of optimism and happiness. d. To organize the world's information and make it universally accessible and useful. 1. Walmart 2. Google 3. Amazon 4. Coke

1.b 2.d 3.a 4.c

a. warehouse workers had to work in 100 °F heat, resulting in dehydration b. AmazonSmile activates a 0.5% donation to charity every time consumers shop c. Federal Trade Commission is the primary regulator of e-commerce & privacy d. 64% of consumers are more likely to purchase when offered free returns & exchanges e. Amazon reported a third quarter loss, yet its stock is selling at record highs above $400 per share 1. Stakeholder: Community 2. Stakeholder: Stockholders 3. Stakeholder: Government 4. Stakeholder: Consumers 5. Stakeholder: Employees

1.b 2.e 3.c 4.d 5.a

Match a. Increase in online retail sales b. Frequent outages of Amazon's web hosting and cloud computing servers c. Increasing pressure to collect sales tax on merchandise sold through online websites d. Revenues of ($61,093M), Amazon is much bigger than its close competitors 1. Strengths - favorable information about the company 2. Weaknesses - unfavorable information about the company 3. Opportunities - favorable information from the environment 4. Threats - unfavorable information from the environment

1.d 2.b 3.a 4.c

Match a. Amazon acquired controlling interest in a solar electric company b. Amazon is developing partnerships and distribution centers in China c. Amazon is developing original video content to be delivered online d. Amazon expanding its order fulfillment 1. Market Penetration Strategy 2. Product Development 3. Market Development 4. Diversificatio

1.d 2.c 3.b 4.a

Match a. Showrooming: pricing in one store & while still there using mobile to purchase online b. Marketplace Fairness Act of 2013-- specifies how online retailers collect sales tax c. Vendor Flex places Amazon employees at suppliers warehouses to lower shipping costs d. Amazon spent $14B building warehouse bigger & closer to customers e. 80% of new phone purchases are smartphones allowing online shopping f. E-commerce, up 13% year, while mobile commerce is growing at twice that rate g. Best Buy introduced price matching even for online offers to promote instore purchase 1. Immediate Environment: COMPANY 2. Immediate Environment: COMPETITOR 3. Immediate Environment: COLLABORATORS 4. Macro Environment: Political/Regulatory/Legal 5. Macro Environment: Economic 6. Macro Environment: Social/cultural 7. Macro Environment: Technological

1.d 2.g 3.c 4.b 5.f 6.a 7.e

Which of these trade agreements represents the highest level of integration among participating nations?

EU

Amazon's highly automated warehouses are efficient but don't directly provide value for Amazon Prime customers.

False

Which of the following trade agreements is designed to manage and promote trade activities for the United States, Canada, and Mexico?

NAFTA

Which technological advancement enables a firm to track an item from the moment it was manufactured, through the distribution system, to the retail store, and into the hands of the final consumer?

RFID tags

Marketing has traditionally been divided into a set of four interrelated decisions known as the marketing mix, or four Ps, which includes all of the following except

Performance

__________ involves defining the firm's marketing mix variables so that target customers have a clear, distinctive, and desirable understanding of the firm's offerings relative to competitors' offerings.

Positioning

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

Price

Tariffs, quotas, and currency exchange policies affect global

Pricing strategies

__________ is communication by a marketer that informs, persuades, or reminds potential customers about a product.

Promotion

The most important consideration when a firm chooses a global product strategy should be

The needs of the target market

If Amazon PrimeAir can successfully delivery on-line ordered products in 30-minutes it would provide a very strong competitive advantage over traditional retailers, and thus classified as a SWOT - Strength.

True

The Electronic Frontier Association is concerned about the invasion of privacy using drones which would be classified as a SWOT - Threat.

True

The Federal Aviation Administration oversees the regulation of drones and is slow to respond to Amazon's plan for delivery drones, which is an example of a PEST - Political/Regulatory/legal factor that translates into to a SWOT- Threat.

True

Manufacturers that use just-in-time manufacturing systems coordinate closely with suppliers to ensure that materials and supplies arrive just before they are needed in the manufacturing process. While just-in-time systems can offer major advantages in terms of inventory costs, they must be carefully managed. If a firm found that its just-in-time system was badly managed, leading to frequent manufacturing delays due to missing parts, this would represent a(n) __________ in a SWOT analysis.

Weakness