MKTG311 Veltri 1

Marketing Research

"Eyes and ears" of the firm, keeps you in touch with customers competitors trends

Production Concept

"if we build it, people will buy it" "lets make it widely available at a low cost"

King Soopers estimates that the average customer spends about $100 a week over 50 weeks a year. Most customers shop twice a week. The average customer shops at the same store for 10 years. King Soopers averages 1,500 customers a week. What is the Customer Lifetime Value?

$50,000

Safe Way estimates that the average customer spends about $100 a week over 50 weeks a year. Most customers shop twice a week. The average customer shops at the same store for 10 years. Safe Way averages 1,500 customers a week. What is the Customer Lifetime Value?

50,000

Value proposition

A brand's value proposition is the set of benefits or values it promises to deliver to customers to satisfy their needs.

Diversification

A product/service differentiation competitive advantage exists when a firm provides something that is unique and valuable to buyers beyond simply offering a lower price than that of the competition.

By 2050, ________ will be an estimated 13 to15 percent of the U.S. population.

African American

Market Nicher Strategies

An ideal market niche is big enough to be profitable with high growth potential and has little interest from competitors.

Stars

Are a type of SBU that often require heavy investments to finance their rapid growth

Among the generational groups in U.S population, the ________ are still the wealthiest generation in U.S. history.

Baby Boomers

Product development

Company growth by offering modified or new products to current market segments

Identifying Competitors

Competitors can include: • All firms making the same product or class of products • All firms making products that supply the same service • All firms competing for the same consumer dollars

The ________ environment consists of institutions and other forces that affect a society's basic values, perceptions, preferences, and behaviors.

Cultural

Product Concept

Customers desire products that have better features, performance and quality

Marketing Research

Exploratory research Descriptive research Causal research

Environmental sustainability concerns have declined steadily over the past three decades.

False

Mobile marketing is an unsuitable tool for triggering an immediate purchase from a consumer.

False

Wants

Form that a human need takes, as shaped by culture and individual personality. Wants + Buying Power = Demand

Companies that operate large marketing departments, conduct expensive marketing research, spell out elaborate competitive strategies, and spend huge sums on advertising are using ________ marketing strategies.

Formulated

Generations

G.I/Greatest Silent Boomers Gen X Millennial (Gen Y) Gen Z

Consumers born between 1965 and 1978 form a group called:

Gen X

Dog

In the portfolio matrix, a business unit that has low growth potential and a small market share

Star

In the portfolio matrix, a business unit that is a fast-growing market leader.

Problem Child (?)

In the portfolio matrix, a business unit that shows rapid growth but poor profit margins.

Cash Cow

In the portfolio matrix, a business unit that usually generates more cash than it needs to maintain its market share

Selling Concept

Industries find a way to get people to buy their product/ service eg. insurance or blood donations

Which of the following is a disadvantage of using information from internal databases?

Internal information may be incomplete or in the wrong form for making marketing decisions.

Collaborative filtering:

Involves a great deal of computer processing.

Marketing Concept

Listening and understanding the needs of the buyers

Best Buy has become the nation's largest specialty retailer by focusing on the customer's needs and wants. This philosophy is at the heart of a(n) orientation.

Market

Which of the following is a competitive position or role that firms play in the target market?

Market Nicher

Which of the following terms refers to sellers being preoccupied with their own products and losing sight of underlying consumer needs?

Marketing Myopia

Needs

Marketing Offer: Some combination of products services, information or experiences offered to a market to satisfy a need or want

Which of the following statements about Generation Y is true?

Members are tech-savvy and expect brands to be on social media.

Which of the following generational groups is most comfortable with digital technology and embraces that technology?

Millennials

Discretionary Income

Money after necessities and taxes

Disposable Income

Money after taxes

Marketing Mix

Pricing Product Place Promotion

Kramer Inc. designs and markets different brands of cycling watches. Each brand has a single unique feature: The Kramer Cosmos has a heart rate monitor, the Kramer Acumen is designed for older cyclists who prefer a large display, and the Kramer Aegis has a GPS function. Which of the following is evident here?

Product differentiation

The Five Marketing Management Concepts

Production Concept Product Concept Selling Concept Marketing Concept Societal Marketing Concept

_________ refers to activities that communicate the merits of the product and persuade target customers to buy it.

Promotion

Which of the following is a weakness of business portfolio analysis such as the Boston Consulting Group's growth-share matrix?

Requires analysis of SBUs without having to consider relationships to other SBUs.

For her current research project, Margaret Rogers wants to select a sample in which every member has a known and equal chance of selection. In other words, Margaret is looking for a

Simple Random Sample

Focus Group - Personal Contact Method (Primary)

Six to 10 people • Trained moderato • Challenges • Expensive • Difficult to generalize from small group • Consumers not always open and honest

The Very Big Toy Corporation has several different SBUs. The first SBU is the Wizard line of Fantasy toys. Big Toy is a major factor in this industry. The fantasy toys have had a major boost from the movies, Lord of the Rings and last Harry Potter movie, and this has increased the growth in this industry dramatically. Where would Wizard be placed on a Boston Consulting Group (BCG) Matrix?

Star

Boston Consulting Group (BCG) Matrix

Star Cash Cow Problem Child (?) Dog

scanner data

Supermarket club. This includes purchases by the specific customer when shopping at the respective chain (assuming that the customer presents his or her card). Purchases at other locations are not counted. Demographic information may be of limited accuracy. Shoppers are often motivated to join by large discounts (often 20-30%). This is also a method of price discrimination. Members may be given individualized coupons for possible products of interest. Only available for grocery products. • Scanner data panels. In some communities, people can sign up to be part of a "panel." Purchases at all local retailers are included (e.g. supermarkets, gas stations, drug stores, convenience stores). For a given customer, the database also includes TV viewing and demographics. Only available for grocery products. • Aggregated retail sales records. Records of sales volumes of products by UPC may be available from an assortment of retailers. This information is NOT tied to individual customer data and purchase history. This is available for more types of products.

Customer Lifetime Value

The entire stream of purchases that the customer would make over a lifetime of patronage.

Share of Customer

The share a company gets of the customers purchasing in their product categories.

"We empower customers to achieve their dreams." is an example of market-oriented mission statement?

True

From the article "Does Marketing Create or Satisfy Needs" the author claims that marketing is about giving satisfaction to the customers. "Customer is king". Customers must be number one.

True

The most obvious advantages that Internet-based survey research offers over mail and personal interviewing approaches are high speed and low costs.

True

Riot Media is a media and toy company that capitalizes on the "gross-out" humor enjoyed by boys ages 8 through 12. In other words, it targets:

Tweens

Demands

Wants backed by buying power

If your income is $400,000 and you pay $98,255 in taxes and $24,050 in mortgage, $6,175 in food, $4,900 for clothing for work, and $4,800 for car payments $2,033 restaurants, what is your disposable and discretionary income?

Your disposable income is $301,745 and your discretionary income is $261,820.

Marketing strategy

a firm's overall program for selecting and satisfying a target market A marketing strategy is aimed at satisfying consumers in the selected target market through a careful balance of the elements of the marketing mix - each of which represents a subset of the overall marketing strategy

Rather than competing head to head with established competitors, many companies seek out unoccupied positions in uncontested market spaces. They try to create products and services for which there are no direct competitors. This is called a

blue ocean strategy

Societal Concept

concept is the idea that a company should make good marketing decisions by considering consumers' wants, the company's requirements, consumers' long-term interests, but also the long-term well being of society as a whole.

Microenvironment

consists of the actors close to the company that affect its ability to serve its customers—the company, suppliers, marketing intermediaries, customer markets, competitors, and publics

Macro environment

consists of the larger societal forces that affect the microenvironment— demographic, economic, natural, technological, political, and cultural forces.

The marketing team of 7 Star Inc., a company manufacturing smartphones, is currently studying the size, density, location, age, and occupation of its target market. Which of the following environments is being studied in this scenario?

demographic environment

Eric Dylan is the marketing director of a charity that raises funds to help provide educational services to children and families in developing countries. Eric targets a selective market of individuals who have recently donated to international charities by sending letters with charity information and donation instructions. Eric uses ________ in this scenario.

direct-mail marketing

Pure Digital Technologies created the Flip, a digital camera priced around $150. It filled a gap between expensive digital cameras and webcams. The Flip plugs straight into a computer, and the video can easily be viewed and shared instantly. Creating a new product for a new market is called

diversification

Under Armour, a successful brand of women's clothing, recently introduced a line of fitness equipment. This is an example of ________.

diversification

As a consequence of the green movement, many companies are developing strategies and practices that support ________.

environmental sustainability

"Many companies today are localizing their products, advertising, promotion, and sales efforts to fit the needs of individual regions, cities, and neighborhoods." This is an example of

geographic segmentation

Nike has a system in place whereby consumers can go on-line and design their own Nike shoes. Nike is practicing:

individual marketing

Formulated marketing

involves developing formal marketing strategies and following them closely

Observational research

involves gathering primary data by observing relevant people, actions, and situations.

Ethnographic research

involves sending trained observers to watch and interact with consumers in their "natural environments."

Intrepreneurial marketing

involves the attempt to reestablish an internal entrepreneurial spirit and refresh marketing strategies and approaches.

Entrepreneurial marketing

involves visualizing an opportunity and constructing and implementing flexible strategies

Market segment

is a group of consumers who respond in a similar way to a given set of marketing efforts.is a group of consumers who

Market penetration

is a growth strategy increasing sales to current market segments without changing the product

Market development

is a growth strategy that identifies and develops new market segments for current products

Primary data

is information collected for the specific purpose at hand. • Interviews • Surveys

Secondary data

is information that already exists somewhere, having been collected for another purpose. • Census data • Web sites • Publications • Trade associations • Syndicated research and market aggregators

An exchange

is the act of obtaining a desired object from someone by offering something in return. In the broadest sense, the marketer tries to bring about a response to some Part of the value may be assurance of continued quality over time (value of the brand) In principle, money does not have to be exchanged. For goods and services, this is usually the most convenient way of trade. For ideas, there may be no monetary exchange as such.

Market segmentation

is the division of a market into distinct groups of buyers who have different needs, characteristics, or behaviors and who might require separate products or marketing mixes.

Competitor analysis

is the process of identifying, assessing, and selecting key competitors.

Customer lifetime value

is the value of the entire stream of purchases that the customer would make over a lifetime of patronage

Sam has been directed to study the demographic, economic, political, and cultural forces that affect an organization. In this instance, Sam has been directed to study the ________ of the organization.

macro environment

Rob has been asked by his manager to identify a group of potential customers who would respond in a similar way to a given set of marketing efforts. In this instance, Rob has been asked to identify a

market segment

Product Leadership (Competitive Strategy)

refers to a company providing superior value by offering a continuous stream of leading-edge products or services. Product leaders are open to new ideas and solutions and bring them quickly to the market.

Customer intimacy (Competitive Strategy)

refers to a company providing superior value by segmenting markets and tailoring products or services to match the needs of the targeted customers

Operational excellence (Competitive Strategy)

refers to a company providing value by leading its industry in price and convenience by reducing costs and creating a lean and efficient value delivery system.

Porters 5 Forces

substitute products potential new entrants bargaining power of buyers Bargaining power of suppliers Competitive Rivalry

Cathy's Clothes is a small yet successful retail chain that sells women's clothing and accessories with a focus on buyers who have relatively modest means. For this specific purpose, the firm has rolled out several marketing initiatives aimed at women of a specific demographic. This is an example of ________.

target marketing

Questionnaires

• Most commom • In person, by phone, or online • Flexible • Researchers must be careful with wording and ordering of questions Closed-ended • Open-ended • Useful in exploratory research