Test 1 Quizzes & Chap. 1 & 2 Vocab

market

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

market growth/market share matrix

A helpful business tool, based on the philosophy that a product's market growth rate and its market share are important considerations in determining its marketing strategy

mission statement

A long-term view, or vision, of what the organization wants to become

Corporate Strategy

A strategy that determines the means for utilizing resources in the various functional areas to reach the organization's goals

SWOT analysis

Assessment of an organization's strengths, weaknesses, opportunities, and threats

Cynthia works at an engineering firm in Arizona that installs transmission lines and works with the electrical systems of buildings. She is in charge of strategic planning. Mostly her firm has worked with cities such as Tucson and Phoenix. Once in a while they will receive a major project from the state, such as renovating a major government building in the capital. However, Cynthia's firm wants to expand its target market beyond government projects. Under her direction, the marketing team launched an initiative to target more potential clients in different areas. Two areas in which Cynthia would like to expand include colleges and large for-profit businesses. Refer to Scenario 6.1. A market is a group of individuals and/or organizations that have a desire or need for products in a product class and have the ability, willingness, and authority to purchase those products. There are two types of markets. Cynthia's organization targets the

Business Market (consists of individuals or groups that purchase a specific kind of product for one of three purposes: resale, direct use in producing other products, or use in general operations.)

Louis is a student at Texas A&M who just secured a summer internship working for the marketing department of Southwest Airlines. He is assisting Marlene, one of the marketing managers, with a competitive assessment of the U.S. market. Marlene wants him to think outside of the box when assessing the competition. She tells him to think beyond direct competitors to any competitors that might be able to offer similar services as Southwest. Refer to Scenario 3.1. Which of the following represents a brand competitor to Southwest Airlines? a. Delta Airlines b. Greyhound Bus c. FedEx Express d. GoKarts USA e. Harley Davidson

Delta Airlines

Which of the following statements is true about how our U.S. demographics are changing? a. Fertility rates are at their lowest. b. Immigration has begun to stall. c. The U.S. is undergoing another baby boom. d. Married couples are on the rise. e. The population has sunk to a low point.

Fertility rates are at their lowest

Scenario 3.1 Louis is a student at Texas A&M who just secured a summer internship working for the marketing department of Southwest Airlines. He is assisting Marlene, one of the marketing managers, with a competitive assessment of the U.S. market. Marlene wants him to think outside of the box when assessing the competition. She tells him to think beyond direct competitors to any competitors that might be able to offer similar services as Southwest. Refer to Scenario 3.1. Which of the following represents a generic competitor to Southwest Airlines? a. Blue Star Jets (on-demand private charter) b. Greyhound bus system c. Delta Airlines d. Schwinn bicycle e. FedEx Express

Greyhound bus system

Which of the following statements about sales estimates is correct? a. Industry-wide marketing activities directly impact the company's sales potential. b. Market potential is the maximum percentage share of a market that an individual firm within an industry can expect to capture for a specific product. c. In the buildup approach, the marketing manager first develops a general economic forecast for a specific time period. d. Competitive efforts have little influence over company sales potential. e. Market potential places absolute limits on company sales potential.

Market potential places absolute limits on company sales potential

Which of the following is a consumer protection law? a. Digital Millennium Copyright Act b. Sherman Antitrust Act c. Celler-Kefauver Act d. Lanham Act e. Nutritional Labeling and Education Act

Nutritional Labeling and Education Act

marketing environment

The competitive, economic, political, legal and regulatory, technological, and sociocultural forces that surround the customer and affect the marketing mix

strategic planning

The process of establishing an organizational mission and formulating goals, corporate strategy, marketing objectives, and marketing strategy

strategic marketing management

The process of planning, implementing, and evaluating the performance of marketing activities and strategies, both effectively and efficiently

Geodemographic segmentation allows marketers to focus precise marketing efforts on very small geographic markets, such as community and even individual neighborhoods. a. True b. False

True Geodemographic segmentation allows marketers to engage in micromarketing. Micromarketing involves focusing precise marketing efforts on very small geographic markets, such as a community and even individual neighborhoods

market opportunity

a combination of circumstances and timing that permits an organization to take action to reach a particular target market

value

a customer's subjective assessment of benefits relative to costs in determining the worth of a product

Strategic Business Unit (SBU)

a division, product line, or other profit center within the parent company

product

a good, a service or and idea

Jessica is working on a SWOT analysis of a local Mexican restaurant Tres Tortillas in Flagstaff. She writes down that the organization has high customer loyalty, resources for expansion, and strong management. She also writes that the market for salsa products is high and more people are eating out. On the other hand, one major complaint levied against the restaurant is that it is high priced and other casual-dining restaurants with less expensive menu offerings are locating to the city. Still, Jessica believes the restaurant's talented and well-known chef provides it with an advantage other restaurants do not have. Refer to Scenario 2.1. Which of the following characteristics of the Mexican restaurant represents an opportunity? A- a greater demand for salsa products B- strong organizational resources C- strong management D- customer loyalty E- talented and well-known chef

a greater demand for salsa products

customer lifetime value (CLV)

a key measurement that forcasts a customer's lifetime economic contribution based on continued relationship marketing efforts

marketing concept

a managerial philosophy that an organization should try to satisfy customers' needs through a coordinated set of activities that also allows the organization to achieve its goals

marketing strategy

a plan of action for identifying and analyzing a target market and developing a marketing mix to meet the needs of that market

target market

a specific group of customers on whom an organization focuses its marketing efforts

marketing objective

a statement of what is to be accomplished through marketing activities

green marketing

a strategic process involving stakeholder assessment to create meaningful long-term realtionships with customers while maintaining, supporing, and enhancing the natural enviornment

decentralized organization

a structure in which decision-making authority is delegated as far down the chain of command as possible

centralized organization

a structure in which top-level managers delegate little authority to lower levels

How does a sustainable competitive advantage differ from a competitive advantage? a. A sustainable competitive advantage occurs when the company takes advantage of temporary periods of optimal fit between the key requirements of a market and the particular capabilities of a company competing in that market. b. A sustainable competitive advantage is when a company matches a core competency to opportunities in the marketplace. c. A sustainable competitive advantage is one that competitors cannot copy in the immediate future. d. A sustainable competitive advantage lasts forever. e. A sustainable competitive advantage has an environmental focus.

a sustainable competitive advantage is one that competitors cannot copy in the immediate future

Good

a tangible physical entity

marketing plan

a written document that specifies the activities to be performed to implement and control the organization's marketing strategies

competitive advantage

an advantage that the competition cannot copy

sustainable competitive advantage

an advantage that the competition cannot copy

performance standard

an expected level of performance against which actual performance can be compared

market orientation

an oranizationwide commitment to researching and responding to customer needs

marketing cost analysis

analysis of costs to determine which are associated with specific marketing efforts

sales analysis

analysis of sales figures to evaluate a firm's performance

Which of the following is the final step in establishing an implementation timetable? a. determining the time required to complete each activity b. identifying the activities to be performed c. assigning responsibility for completing each activity to one or more employees, teams, or managers d. organizing the activities in the proper order e. separating the activities to be performed in sequence from those to be performed simultaneously

assigning responsibility for completing each activity to one or more employees, teams, or managers

A buffet restaurant targets its promotions toward those who love "all-you-can-eat" meals. Its promotion targets those who desire to get more for less money and/or those who like variety in their meals. However, the company knows that many of the people who come in will not eat as much. Others, however, may eat way past the value of what they paid. The buffet has balanced this out in its pricing strategy, classifying its diners as light eaters, moderate eaters, and heavy eaters. What type of segmentation strategy is the buffet using? a. customer size b. psychographic c. benefit segmentation d. behavioristic e. demographic

behavioristic

Eaton sells many industrial products for the lighting and solar industry, including lighting controls, landscape lighting, lighting relay and metering panels, flood lighting, and more. Among its vast array of products, it also sells lighting accessories and lighting solutions for private residences. Refer to Scenario 6.3. Eaton is targeting most of its industrial products to the ____________ market and targeting its residential lighting systems to the _________________ market. a. consumer; consumer b. business; residential c. business; business d. consumer; business e. business; consumer

business; consumer

Procter & Gamble's Tide laundry detergent has a predominant share of the detergent market in the United States. It makes $4.5 billion in sales of this detergent brand. However, the detergent market has reached market saturation in the United States. With this information, what type of product is Tide based upon the Boston Consulting Group's market growth/market share matrix? a. pig b. question mark c. star d. dog e. cash cow

cash cow

Marty works at an organization with a clear chain of command. The major decisions are regulated to top managers. Marty and his co-workers have strict performance standards. Managers at his organization monitor the work of employees to make sure they are staying on track. This is an example of a ______organization.

centralized

Which of the following is likely the most important decision a company makes during the strategic planning process? a. developing a marketing strategy b. choosing a target market c. conducting a SWOT analysis d. creating the marketing mix e. evaluating marketing performance

choosing a target market

___________ is the maximum percentage share of a market that an individual firm within an industry can expect to capture for a specific product

company sales potential (maximum percentage share of a market that an individual firm within an industry can expect to capture for a specific product)

Jessica continues to work on the marketing strategy for Tres Tortillas. Tres Tortillas was successful in selling 16 ounce jars of salsa in its restaurant. In fact, demand for the jars of salsa are so high that Jessica believes Tres Tortillas should try to expand and start selling in stores. She believes Tres Tortillas salsa has the potential for enormous growth, perhaps even more so than the actual restaurant. Refer to Scenario 2.3. Jessica's manager is skeptical. Such an investment would require a manufacturing facility, a larger marketing budget, and salespeople who would be able to get the salsa onto store shelves. However, Jessica maintains that Tres Tortilla's secret salsa recipe provides it with a core competency. The market for salsa is also strong. She believes this provides Tres Tortillas with a chance to match its core competency to market opportunities, otherwise known as a(n) ___________________. a. strategic window b. competitive advantage c. late-mover advantage d. optimal fit e. first-mover advantage

competitive advantage

stakeholders

constituents who have a "stake," or calim, in some aspect of a compnay's products, operations, markets, industry and outcomes

Which of the following food products would most likely use an undifferentiated marketing strategy? a. corn b. soy milk c. pizza d. hot sauce e. coffee

corn

Soda companies are worried because sales have fallen flat. People today are more concerned about their sugar intake and want to be healthier. This reflects a change in _____. a. diversity characteristics b. demographics c. ethical values d. consumerism e. cultural values

cultural values

Scenario 6.4. Mistine is a direct selling cosmetics firm based in Thailand. Originally, it made a name for itself selling an affordable product that was of good quality. It focused mainly on housewives. However, over the years Mistine has expanded its focus, targeting more groups such as teenagers and higher-income women. Unlike many comparable direct selling firms, Mistine engages in much advertising. Its advertising campaigns must be tailored toward the appropriate target market. Refer to Scenario 6.4. What type of segmentation strategy is Mistine using? a. heterogeneous targeting strategy b. undifferentiated targeting strategy c. homogenous targeting strategy d. differentiated targeting strategy e. concentrated targeting strategy

differentiated targeting strategy

Charles works as a marketer at Hewlett-Packard. He has just spent the last few weeks collecting information about environmental forces that will impact computer industry. The time has come to try and make sense of this data and gather insights which he hopes will improve the company's marketing strategy in relation to competitors. Which type of activity is Charles working on? a. technology assessment b. environmental analysis c. competitive scanning d. environmental scanning e. SWOT analysis

environmental analysis

Paul owns a small retail store. His store sells local products from farmers and small food and beverage businesses in his store. He has a number of strategic partnerships with different players in the industry and believes his business has the ability to become highly successful. Those customers who have bought from him have become loyal customers and frequently visit the store. The problem is most people do not seem to realize the store exists. He decides to write a marketing plan that will outline the marketing activities he needs to take to spread awareness of his company and attract consumers to his business. Refer to Scenario 2.5. Paul is at the stage of his marketing plan where he needs to gather information about his firm's situation with respect to the market. A major part of this is his assessment of target markets. Which section is he about to write? a. executive summary b. environmental analysis c. SWOT analysis d. marketing strategies e. marketing objectives

environmental analysis

_______is the process of collecting information about forces in the marketing environment.

environmental scanning

It is a year later. Jessica's manager decided that the company would develop a salsa business. Jessica has been in a flurry of activity since then. Not only did the company have to invest in a building and equipment, but she has had to develop marketing strategies for the new salsa business. The marketing strategies are now complete and ready to be put into action. Jessica was placed in charge of marketing implementation. She has spent several months organizing the marketing unit, training employees, coordinating the marketing staff, and communicating the goals and objectives of the strategy. Refer to Scenario 2.4. What is next step Jessica should take to implement the marketing strategy? a. Evaluate the marketing strategy. b. Undertake a SWOT analysis. c. Establish a timetable for implementation. d. Create the marketing mix. e. Establish performance standards.

establish a timetable for implementation

Relationship Marketing

establishing long-term, mutally satisfying buyer-seller relationship

strategic performance evaluation

establishing performance standards, measuring actual performance, comparing actual performance with established standards, and modifying the marketing strategy, if needed

An undifferentiated targeting strategy uses market segmentation. a. True b. False

false Segmentation is not needed for an undifferentiated targeting strategy because the market is homogenous

The major source of cultural values is religion. a. True b. False

false major source of cultural values is the family

marketing mix

four marketing activities - product, pricing, distribution and promotion - that a frim can control to meet the needs of customers within its target market

Which of the following is a disadvantage of being a first-mover in the market? a. the chance that products will be protected by patents b. high switching costs consumers may experience c. large outlays associated with creating a new product d. inability to accurately predict performance standards e. costs of marketing plan implementation

large outlays associated with creating a new product

Mistine is a direct selling cosmetics firm based in Thailand. Originally, it made a name for itself selling an affordable product that was of good quality. It focused mainly on housewives. However, over the years Mistine has expanded its focus, targeting more groups such as teenagers and higher-income women. Unlike many comparable direct selling firms, Mistine engages in much advertising. Its advertising campaigns must be tailored toward the appropriate target market. Refer to Scenario 6.4. Assume that Mistine wants to break into the Kenyan market. It is entering the market for the first time and is unsure about how successful its products will be. Mistine's management team wants to develop a sales forecast for the area. Which of the following would be most appropriate in terms of accuracy? a. time series analysis b. executive judgment c. surveys d. regression analysis e. market tests

market tests

A __________ is a written document that specifies the marketing activities to be performed to implement and evaluate the organization's marketing strategies

marketing plan

Google has written down the following: "to organize the world's information and make it universally accessible and useful." This is most likely a part of Google's _________________

mission statement

Lobbying involves which type of force in the marketing environment? Please choose the best answer. a. economic b. competitive c. political d. sociocultural e. legal and regulatory

political

Many marketing managers attempt to influence and shape environmental forces. This is known as the __________ approach

proactive

marketing

process of creating, distributing, promoting, and pricing goods, services, and ideas to facilitate satisfying exchange relationships with customers and to develop and maintain favorable relationships with stakeholders in a dynamic environment

Jessica's manager believes that Tres Tortillas can gain an advantage over competing Mexican restaurants in the area by capitalizing on the higher demand for salsa. He believes the firm's top secret salsa recipe could be the key to expanding into another market niche. The manager has proposed developing a line of its salsas in 16-oz jars to sell at its restaurant. This way its loyal customers could buy its salsa outright and serve it at home. Jessica has been tasked with the determining the feasibility of this strategy. Refer to Scenario 2.2. What type of competitive growth strategy is Jessica's manager discussing? a. product penetration b. product development c. market development d. market penetration e. diversification

product development

On Eaton's website, the firm segments its product offerings as aerospace, filtration, hybrid power, electrical, hydraulics, industrial clutches and brakes, plastic extrusion, and vehicle. What type of segmentation strategy has Eaton most likely adopted? a. benefit segmentation b. customer size c. type of organization d. product use e. lifestyle

product use

The first of two major components of developing a marketing strategy is to __________________. a. perform a business analysis b. determine a segmentation strategy c. develop a product d. select a target market e. perform sales analyses

select a target market

Angel wants to become a successful brewer. He analyzes the target market for beer and finds that there is a market niche for gluten-free beer. Angel considers the types of markets he can target with his beer. He knows that many people perceive gluten as unhealthy and might be inclined to buy his beer due to its gluten-free nature. However, he also knows there is a strong demand among those who suffer from Celiac disease. After doing sales and cost estimates, Angel feels ready to make a decision. Refer to Scenario 6.2. In making his decision, Angel is at what stage in the target market selection process? a. Develop market segment profiles. b. Evaluate relevant market segments. c. Select specific target markets. d. Determine which segmentation variables to use. e. Identify the appropriate targeting strategy.

select specific target markets

a market segment profile describes the ______ among potential customers within a segment and explains the ___________ among people and organizations in different segments

similarities differences

Through the process of __________ a company establishes an organizational mission and formulate goals, a corporate strategy, marketing objectives and a marketing strategy.

strategic planning

strategic windows

temporary periods of optimal fit between the key requirements of a market and the particular capabilities of a company competing in that market

first-mover advantage

the ability of an innovative company to achieve long-term competitive advantages by being the first to offer a certain product in the marketplace

late-mover advantage

the ability of later market entrants to achieve long-term competitive advantages by not being the first to offer a certain product in a marketplace

marketing implementation

the process of putting marketing strategies into action

exchange

the provison or transfer or goods, services or ideas in return for something of value

customers

the purchasers of organizations' products; the focal point of all marketing activities

core competencies

things a company does extremely well, which sometimes give it an advantage over its competition

Why might a marketer want to engage in marketing cost analysis? a. to allocate the firm's marketing resources better in the future b. to determine how much to company will charge customers c. to help outline how the company will achieve its objectives d. to reflect the market's reaction to the marketing mix e. to evaluate the firm's strengths and weaknesses

to allocate the firm's marketing resources better in the future

Cynthia works at an engineering firm in Arizona that installs transmission lines and works with the electrical systems of buildings. She is in charge of strategic planning. Mostly her firm has worked with cities such as Tucson and Phoenix. Once in a while they will receive a major project from the state, such as renovating a major government building in the capital. However, Cynthia's firm wants to expand its target market beyond government projects. Under her direction, the marketing team launched an initiative to target more potential clients in different areas. Two areas in which Cynthia would like to expand include colleges and large for-profit businesses. Refer to Scenario 6.1. How is Cynthia's company segmenting the market for its services? a. product use b. type of organization c. demographic d. customer size e. geographic location

type of organization

customer relationship management (CRM)

using information about customers to create marketing strategies that develop and sustain desirable customer relationships