Intro to Marketing Exam 1 (University of Iowa, Nancy Abrams)

Patagonia believes that it exists not only to satisfy customer needs and to meet organizational objectives but also to consider society's long-term best interests. This is an example of

societal orientation

Pepsico has a joint venture with Unilever in the ready- to- drink tea business. Unilever owns the powerful Lipton brands, (Lipton, Pure Leaf and Brisk) and PepsiCo has distribution and bottling capabilities. When PepsiCo decided it would reduce their resource allocation behind the shrinking soft drink segment, and allocate more resources and invest heavily in Lipton Teas, they were engaging in

strategic planning

There are many sources of competitive advantage. For the advantage to be sustainable, it must be difficult to copy by a competitor, and allow you to charge more for your product. In an interview we watched in class with Bob Iger CEO of Disney, talking about their future, the entertainment business and Disney's plans, he stated the notion of original programming and own-ability are the keys to remain competitive in entertainment with his comment

content is king

18. All of the following are characteristics of culture EXCEPT:

culture is an inherited trait

Oreo strives to be the world's # 1 cookie. To do this they

-Adapt the product and flavor profile to meet the needs and preferences of different cultures -Utilize the most popular corporate brand on the package in different countries -A and C

As discussed in class, if you were brand manager for Lucky Charms, which of the below are environmental forces you should be concerned with

-Attitudes about advertising to children, -Attitude changes about children and sugar consumption -Government regulation concerning sugar content of children's cereal & advertising to children -(all of the above)

The Mission Statement

-the foundation of any marketing and strategic plan. -answers the question "What business are we in" -answers the question "Why do we matter"

All of the following statements about the creation of a code of ethics are true EXCEPT:

A code guarantees ethical behavior among a firm's employees.

As we discussed in class, Taco Bell has had good growth adding a breakfast menu to their offerings. This was their third attempt at this business growth strategy. What made it a winning strategy this time was a combination of

Consumer's growing need for convenience and targeting McDonald's breakfast users

As discussed in class, since 1890 there have been 4400 patents applied for "A Better Mouse Trap". Of those, less than 40 have gone to market, and less than 20 have ever made money. Currently the conventional "bait and snap" wooden trap has 80% of the market, and it is essentially the same product as in 1890. Why have mouse trap innovations been unsuccessful?

Consumers don't want a better mouse trap, current trap performance and cost are satisfactory.

Heinz has nearly 70% of the global ketchup market, and the ketchup market is not growing. They see this SBU as their cash cow. Other brands they own include Classico Sauces, several baby foods brands, Lea and Perrins Sauce, TGI Friday's, Ore-Ida and Weight Watchers branded packaged foods. In the US domestic market, growth in prepared "diet" foods has a 12% growth rate. Weight Watchers branded packaged foods has a 52% share. According to the Boston Consulting Group Matrix, Heinz should

Invest in product line expansion and promotion for the Weight Watchers branded goods as they are a star and can provide portfolio growth.

Jill's mother pays for her cell phone service. She is due for an upgrade. Jill is hoping for a new iPhone 7, and has suggested that to her parents. Her father is the family technology expert and specifies and decides what phones and service plans will be purchased. For Jill's next phone in this family buying scenario

Jill is the consumer and influencer; mom is the purchaser; and dad is the decision maker

One of the key reasons Seth Godin pointed out in the "Purple Cow" video that we need to be sure we do something remarkable to get noticed by consumers is

People have less time and more choices.

The work of the marketing manager and marketing department is to create a marketing mix that meets consumer needs, and is in sync with trends in the external environment. The marketing mix (commonly referred to as "the 4 P's") consists of

Price, promotion, product and place

In the Barry Schwartz video about the Paradox of Choice you viewed in discussion section, Schwartz contends that in today's developed economies we have an abundance of choice that is

Resulting in decision paralysis, reduced satisfaction, and depression.

Family consumption behavior can be full of emotional conflicts, as household resources are shared, and lifestyle choices of one may impact all members of the family. Behaviors that are used to manage and resolve the conflicts include all except:

Use of a buying group for efficiency

Andrea just purchased an upgraded wedding ring as a present to her husband for their tenth wedding anniversary. Andrea is anxious about the gift, afraid Bill will not like the ring and she is worried she spent too much money. Andrea is experiencing

cognitive dissonance

The University of Iowa has an outstanding College of Business. Sean attended, paid tuition and got a great job when he graduated. Was this a marketing exchange?

Yes, because paying tuition was exchanged for gaining knowledge that led to Sean's job.

As discussed in class, marketing is a combination of:

art and science

Target bought 124 Zeller's stores in Canada and converted them to Target brand stores. This expansion strategy failed, and is considered the highest risk method of growing globally. The strategy target used in Canada was

direct investment

As we discussed in class, acquisitions of companies like Honest Tea and Fairlife leverage Coke's strength and sustainable competitive advantage in

distribution

Warren loves to go to the beach on his vacation but hates to have to worry about the possibility of hurricanes. As Warren looked for where he should go on vacation this fall, he consulted a publication called Smart Money and learned the islands of Aruba, Bonaire, and Curacao are not in the hurricane belt. Now he will only consider these island resorts as possible vacation destinations. This group of resort islands is called Warren's

evoked set

Alanna is looking into purchasing a scooter as gas prices continue to rise. She needs a reasonably priced, comfortable, and safe scooter with room to store her books. She is not familiar with scooters, and this is a major purchase for her. The purchase will probably involve:

extensive decision making

Mountain Khakis has developed a line of apparel that uses a fiber made from recycled plastic called Bionic. Consumers like the look of the khakis, and Mountain Khakis' use of recycled materials is good for the environment. The production of the Bionic line would be consistent with

green marketing

Volkswagen, who paid huge fines for falsifying emissions testing is now running an advertising campaign featuring their sustainable practices in manufacturing and concern for the environment and air quality. Given Volkswagen's poor track record, this may be viewed as

green washing

As mentioned in class, key factor(s) impacting ethical behavior are

individual ethics, group ethics, opportunity

The primary input needed to have a marketing orientation is

information on customers, competitors and markets.

Jim needed to purchase a birthday gift for his 7-year-old niece. While looking at the DVDs at Target, Jim tried to remember the name of the Disney movie featuring a talking snowman and princess named Elsa. His niece had been asking for the DVD. Which step of the consumer decision-making process is this

internal information search

One key advantage of consumer's knowledge and familiarity of a strong brand is that it helps customers during their

internal search

39. Marketing (defined)

is the activity, set of institutions and processes for creating, communicating, delivering and exchanging offerings that have value for customers, clients, partners, and society at large

Mario usually purchases Old Spice deodorant. Unfortunately, the drug store is sold out of Old Spice today, so Mario will have to choose a brand that's in stock. In making his decision, Mario will engage in _____ consumer decision making

limited

Marketing managers often use in-store promotions to stimulate sales of:

low involvement products

The South Korea market, as described by one of our TA's Young Kim, has all the characteristics below except

low, under 1% suicide rate

In order to expand its sales into the U.S. market, BRL, an Australia-based winemaker, agreed to a merger with a U.S.-based wine distribution company. According to Ansoff's strategic opportunity matrix, BRL would be implementing a _____ strategy.

market development

Procter & Gamble has observed growth in men's foot care products, specifically scrubs and deodorants. Therefore they want to explore the viability of introducing a men's foot care line in their Old Spice Brand portfolio. They know they need to fully understand the market. They will look at the current products in the category, survey men on their interest in these types of products, and survey Old Spice users as well. They will determine purchase intent, and estimate the share they could get of this market. This is a

market opportunity analysis

Kraft Foods created a magazine full of recipes and coupons for customers as well as a Web site with product and recipe information. The goal was to get current customers to purchase more of Kraft's products. These activities are representative of a _____ strategy

market penetration

Which step in the consumer decision-making process is a result of an imbalance between actual and desired states?

need recognition

Jackie and Kevin like to cook fresh food and grow vegetables in their garden. They consider their home cooking and fresh meal preparation a "farm-to-table" style of life. An ad showing food created "fast from a can or box" would be appealing to Jackie and Kevin's _____ reference group.

non-aspirational

Sherri went shopping with a friend and noticed her friend's new jeans, and great fashion. She thinks her clothes are old worn, and behind the times. She realizes she would like some new clothes like her friends. In which stage of the consumer decision-making process is Sherri in?

problem recognition

When IKEA, the Swedish home furnishings retailer, first entered the Japanese market, it failed. It was more successful in its second try because it was aware of the need to adapt its furnishings to fit the smaller Japanese homes. IKEA's success on its second foray into Japan was based on its ability to give the Japanese consumer what he or she needed without abandoning its product strategy. IKEA had to adopt a _____ strategy

product adaptation

As we discussed in class, Jolly Time popcorn knows that the largest growth in the popcorn consumption category is "ready-to-eat", pre-popped corn. They have efficient plants and considerable investment in production of micro-wave popcorn, which is showing loss of share to ready-to-eat. When they introduced their newest product, "Simply Popped" they made it only available in microwave. This is evidence of a(n )___________ orientation to the business.

production

Burger King did a clever promotional event in South Korea that addressed the problem South Korean's having the longest commute to work each day, at an average of 58 minutes. There "wake me up at my stop" is an example of a(n) ___________________ approach to customizing a marketing mix to meet the needs of the market.

promotion adaptation

Coke recently introduced a "Fairlife" premium milk line. As we saw in the Bloomberg news clip, the premium/alternative milk category is growing rapidly. Coke has a small market share in this category, under 10%. Fairlife milk is an example of a(n) _____ according to the portfolio matrix

question mark

Lucky Charms from General Mills has had consistent performance in a shrinking cereal market. A key concern for Lucky Charms are all the copycat private label brands in the market such as Malt-O-Meal's Marshmallow Mateys. These wholesaler or store brands seem to flourish during economic periods described as

recession

On any given day, a person may be subjected to over 2,500 advertising messages but may only remember 11 to 20 of them. This is called

selective retention

The consumer journey is a more connected way companies are approaching consumer decision-making. This model often uses automation, proactive personalization, contextual interaction and journey innovation. The key goal(s) is (are) to

shorten or eliminate the consider and evaluate steps

In the strategic planning process, when determining the marketing mix, the most critical step of clarity and definition is to determine the , as demonstrated in the video about the 4P's of a lemonade stand we watched in class

target market

When mechanical gas pumps first appeared in the United States in the 1930's, their spinning dials couldn't register sales beyond $99.99. Today, some stations still use the retro pumps, but the limited dials cannot register the sales of higher-priced gas, which can amount to over $100 for large SUV's and RV's. The pumps can be modernized for about $650, but the company that provides the service has a huge backlog. This is an example of how __________________ and ____________ factors affect small convenience stores and service stations.

technological and economic

All of the following are factors in the external environment affecting marketing EXCEPT:

the marketing mix

While preparing a SWOT for Netflix, you would consider Amazon's entry into digital delivery of entertainment to Amazon Prime subscribers as a

threat