Marketing 330 Midterm

Primary Data

Collected specifically for the research problem at hand. Can be expensive to collect! Observations Audio or video recordings Interviews Correspondence Focus groups Case studies Questionnaires Online surveys Experiments

A company uses sales forecasting to determine how much product to hold in inventory at various points in the distribution network. Sales forecasting is related to which of the four Ps of marketing?

Place

Luther got a cut and shave at the new barber shop that opened up in town. He gave his service person a generous tip. This tip is reflective of which stage of the consumer purchase decision process?

Post purchase evaluation

In the B2B buying process, after a business identifies a need, its immediate next step is to describe and quantify it. What is the third step in the process?

Research potential suppliers.

Which of the following is true of primary data?

Primary data are collected specifically for the research problem at hand. Primary data is considered primary because they were collected specifically for the purpose of the experiment—in other words, specifically for the research problem at hand.

Demographic segmentation divides markets by

characteristics such as age, gender, and income.

Which of the following actions takes place during the purchase stage of the consumer purchase decision process?

deciding to pay an extra $50 for unlimited product service for the year

The iconic Apple logo is recognized worldwide, and the Apple iPhone is a globally distributed product. Apple a firm that knows how to effectively

deliver value

Which of the following lists comprise the four broad bases of market segmentation?

demographic, geographic, psychographic, behavioral

Which of the following segmentation bases do marketers use to develop customer profiles?

demographic, geographic, psychographic, behavioral

To increase the likelihood that consumers will make a purchase, firms must not only emphasize the specific benefits of their good or service, but also how those benefits are ________ to the consumer.

important

Sustainable marketing

is the process of creating, communicating, and delivering value to customers through the preservation and protection of the natural systems that provide the natural resources upon which our society and economy depend.

This form of B2B e-marketing allow customers to access their accounts in real time, track their orders, and even message with their delivery drivers.

mobile applications

When a big-name retailer decides to open a manufacturing plant overseas, this is an example of

direct ownership Direct ownership is when a domestic firm actively manages a foreign company or overseas facility—in this case, a manufacturing plant.

Each of the six distinct stages of the _____ impacts consumer behavior; firms will market to each of these stages, offering such products and services as retirement investments.

family life cycle

Direct competitors

firms that compete with products designed around the same or similar characteristics

Indirect competitors:

firms that compete with products that have different characteristics but serve a similar function

A recent survey conducted by U.S. News and World Report on the best overall hybrid car, ranked the Ford Fusion Hybrid as the best hybrid car for the money. For Ford, this represents

A competitive advantage A product possesses a competitive advantage when it enjoys a superior position over competing products because consumers believe it has more value than other products in its category.

All of the following are direct competitors for T-Mobile except

Apple

One of the easiest ways for marketers to engage in sustainable marketing is to seek ways to cut costs using sustainable practices as a guideline.

True

All of the following are examples of institutional markets except

Wholesalers

A container of cookies boldly states that it has half the calories of its competitor; however, the container has half the number of cookies as the competitor. This is an example of

deceptive packaging

Firms develop a competitive advantage by

creating more value for customers than those of other firms.

Marketers can classify business-to-business buying situations into three general categories

new buy, straight rebuy, and modified rebuy.

Which of the following represents the three basic strategies for targeting markets?

undifferentiated targeting, differentiated targeting, and niche marketing

The eco-branding strategy tends to succeed in industries

where significant barriers to imitation exist. The eco-branding strategy tends to succeed in industries in which significant barriers to imitation exist. To achieve differentiation as part of an eco-branding strategy, the environmental improvement should be difficult to imitate.

Which of the following statements best represents how marketers assess the competitive environment with respect to strategic planning?

Firms look at both direct and indirect competitors in strategic planning because they both compete with the firm. Strategic planning starts with marketers systematically assessing the competitive environment. To complete this assessment, firms look at both direct and indirect competition. Direct competitors are firms that compete with products designed around the same or similar characteristics. Indirect competitors are firms that compete with products that have different characteristics but serve a similar function.

Franchising

Franchising is a contractual arrangement in which the franchisor provides a franchisee the right to use its name and marketing and operational support in exchange for a fee and, typically, a share of the profits.Franchising is an attractive method of entering foreign markets because franchisees assume the majority of the capital costs and human resource issues. The disadvantages of franchising include the risks of granting your name to a franchisee in a faraway place where direct oversight is difficult.

Read with Us is a local bookstore and café that just received a big box of donations filled with titles such as Orlando, Middlesex, Women's Day, and Men's Health. Which demographic variable should the bookstore consider when it organizes these books for its market?

Gender

Joint Venture

In a joint venture, a domestic firm partners with a foreign company to create a new entity and thus allows the domestic firm to enter the foreign company's market.The local partner shares equity in the new entity and provides the foreign entrant with valuable information about local consumers, suppliers, and the regulatory environment. Joint ventures come with inherent risk. ╸Domestic and international firms often operate differently, which can lead to culture clashes. ╸Joint ventures also can result in mistrust over proprietary knowledge, conflict over new investments, and disagreements about how to share revenue and profits.

How will marketers know when they have applied a product excellence strategy?

Items are produced at a high quality, with a focus on adding value.

Faye is an advocate for a greener environment and makes it a point to lead an eco-friendly existence. Talon, a car manufacturer, launches a hybrid car that uses fuel more efficiently and cuts down on carbon emissions by 60 percent. Its marketing campaign depicts its car, replete with environment-friendly features, cruising through the countryside. Of the personal factors that influence the consumer decision-making process, Talon's marketing campaign is most likely to appeal to Faye's

Lifestyle Lifestyle is a person's typical way of life as expressed by his or her activities, interests, and opinions. In this scenario, Talon's marketing campaign is most likely to appeal to Faye's lifestyle.

What are the two types of involvement influence on consumer behavior?

Low, high Involvement is the personal, financial, and social significance of the decision being made. The study of high and low involvement focuses on how consumers choose which alternative to purchase and is important for firms to understand as they develop strategies to sell their products.

Extreme Clean is a small, family-run cleaning service that operates seven days a week year-round. Despite its already full client load, it aims to bring in 10 new clients each month until the end of the following year. How can Extreme Clean modify this objective to satisfy the three key criteria for an effective marketing strategy objective?

Make it realistic

John's Fitness Club was originally geared toward individuals interested in weight training. Recently, the club started offering yoga and high intensity interval training classes in hopes of increasing memberships at the club. In this example, John is using a ________ strategy.

Market development A market development strategy focuses on selling existing goods and services to new customers. Since John's Fitness Club was primarily a weight training center, by expanding its services to include yoga and HITT classes, it is attempting to attract new customers.

People for Pets is a business that markets to pet owners. Its inventory of products and services include mugs, calendars, and key chains, as well as pet daycare, pet sitting, and pet grooming. People for Pets recently introduced a new month-long promotion: For every two or more products purchased, get a free daycare, sitting, or grooming service. These actions correlate with which type of marketing growth strategy?

Market penetration Market penetration strategies often involve encouraging current customers to buy more each time they patronize a store or to buy from the store on a more frequent basis.

________ are the relatively homogenous groups of consumers that result from the segmentation process.

Market segments Market segmentation is the process of dividing a larger market into smaller homogenous groups of consumers, called market segments.

Internal and external factors that affect a firm's ability to succeed are collectively known as the firm's

Marketing Environment

Which of the following statements about the relationship between marketing research and marketing analytics is accurate?

Marketing research and marketing analytics work in conjunction with each other.

Market segmentation involves dividing a larger market into smaller market segments based on

Meaningful shared characteristics

An advertisement shows a group of boys playing soccer on a hot day. When they take a break, the group runs to a cooler to find something to quench their thirst. Inside the cooler are water bottles, cans of soda, fruit juices, and Gatorade. Immediately, the boys fight over the Gatorade, showing that it is clearly the best choice. In this ad, liquid refreshment represents a _____, while Gatorade represents a _____.

Need/Want

________ allows firms to improve how they manage their employees, supply chain, and/or manufacturing processes to maximize customer value and sustain competitive advantage.

Operational Excellence Operational excellence is a strategy of focusing operational principles, systems, and tools on improving customer satisfaction with the firm's products and services.

The activities a firm undertakes to create a certain perception of its product in the eyes of the target market is referred to as

Positioning Success within the target market depends, to some degree, on how the firm positions its product. The set of activities a firm undertakes to create a certain perception of its product in the eyes of the target market is referred to as positioning.

Which of the following is true of primary data?

Primary data are collected specifically for the research problem at hand.

That a brand like Nike is known for its high-performing shoes and other sportswear that improve according to changing customer demands shows that its success starts with which marketing mix element?

Product

Etsy is an e-commerce site where different shops can sell handcrafted, vintage, custom, or other unique goods—from jewelry to apparel to kitchen cabinet hardware—at different price ranges; shops are located around the world. On which element of the marketing mix does Etsy focus its efforts?

Product Product is a specific combination of goods, services, or ideas that a firm offers to consumers. Etsy is a product-oriented e-commerce site.

Marketers can capitalize on consumer learning by designing marketing strategies that

Promote Reinforcement Marketers can capitalize on consumer learning by designing marketing strategies that promote reinforcement. Consistent reinforcement can lead the consumer to develop a habit of making the same purchase decision over and over again without much thought.

Qualitative

Provide a great deal of insight, but they don't always allow to draw generalized conclusions about the larger consumer population. Can be challenging: results may be difficult to measure objectively and without bias.

________ typically involves changing one or more marketing mix elements, often product or promotion.

Repositioning Repositioning is the act of reestablishing a product's position to respond to changes in the marketplace. Repositioning typically involves changing one or more marketing mix elements, often product or promotion.

Patagonia, a California-based clothing company, is deeply committed to the environment. The company makes fleece jackets out of recycled bottles, uses solar panels to generate most of the electricity at its headquarters, and even tells its customers in its advertisements to think twice before buying anything, all in an effort to reduce its carbon footprint. This is an example of how Patagonia is engaged in

Sustainable marketing

Select the statement that is not true regarding the B2B purchasing process.

The B2B purchasing process is less complex than the consumer decision-making process.

B2B Purchasing process

The B2B purchasing process typically involves professional purchasing managers. The B2B purchasing process may require the use of RFPs and contract negotiations. The B2B purchasing process is often far longer than the consumer decision-making process. The B2B purchasing process requires standardized procedures.

Which of the following statements about the dependent variable is true?

The dependent variable is the one being tested and measured. Dependent variables are the ones being tested and measured. A change in the dependent variable depends on something changing with another variable in the study.

Direct Ownership

The riskiest method of entering an international market is direct ownership, which requires a domestic firm to actively manage an overseas facility. Maintaining 100 percent ownership of offices, plants, and facilities in a foreign country exposes the firm to significant risks.However, direct ownership provides the firm with more control over its intellectual property, advertising, pricing, and product distribution.

Janie is looking to open a cupcake shop. She wants to make sure her shop is successful, so she hires a consultant to help her determine the best location for her new business. In this example, the information given to Janie by the consultant is considered a product.

True In addition to goods, products can also take the form of services or ideas, like those offered by a consultant.

What type of targeting strategy works with uniform products for which the firm can develop a single marketing mix that satisfies the needs of all customers?

an undifferentiated targeting strategy An undifferentiated targeting strategy approaches the marketplace as one large segment. It works best with uniform products, such as salt or bananas, for which the firm can develop a single marketing mix that satisfies the needs of all customers.

According to your text, what step in deciding how to position a product should be done on a continual basis since consumer tastes change for almost every product?

evaluate feedback

The sociocultural influences on consumer behavior are formally called

family influences, reference groups, and opinion leaders. Sociocultural factors develop from a consumer's relationships with others and can significantly impact his or her buying behavior. Sociocultural influences that impact the consumer decision-making process include family members, reference groups, and opinion leaders.

Levi found an antique violin at a garage sale for a great price and bought it. In making this purchase, Levi was

fulfilling a consumer want

Antel, an apparel manufacturer based in Alaska, produces winter wear. Despite having a recognized brand name and a huge potential for sales in New York, Antel is unable to tap into this market. With so many winter wear brands already present in New York, Antel realizes that it can be successful here only if it manages to connect the need for winter wear to what the potential customers really want. Which of the following actions is most likely to ensure that Antel achieves this objective?

hiring renowned designers to create fashionable snow clothing

Which of the following include some key factors for creating an environment for maximum performance?

leadership, adequate resources, clear company objectives, nonconflicting relationships

A focus on having a strong physical location and/or internet presence is known as

locational excellence

A reference group is

made up of the people to whom a consumer compares himself or herself.

A targeting strategy that involves pursuing a large share of a small market segment is referred to as

niche marketing Niche marketing involves targeting a large share of a small market segment. Consumers of niche marketing products typically have very specialized needs and will pay higher prices to meet those needs.

Which of the following best defines the marketing growth strategy of diversification?

offering new products that are unrelated to the existing products produced by a company

________ allows firms to improve how they manage their employees, supply chain, and/or manufacturing processes to maximize customer value and sustain competitive advantage.

operational excellence

This set of distinctive characteristics will lead or influence an individual to respond to certain consumer buying situations in a consistent way. This set of distinctive set of characteristics is referred to as a consumer's

personality Personality, which strongly influences a consumer's decision to purchase products, is the set of distinctive characteristics that lead an individual to respond in a consistent way to certain situations. A consumer's personality might include traits that make them confident, personable, deferential, adaptable, or dominant.

During the ________ stage of the consumer purchase decision process, a consumer is likely to feel satisfaction or regret.

post purchase evaluation

What is the key to creating value?

providing consumers with benefits that meet their needs and wants The key ingredient for creating value is providing consumers with benefits that meet their needs and wants. Merely creating a new product does not guarantee success.

Which of the following is not an example of a secondary data source?

questionnaires Questionnaires are a source of primary data.

Corporate social responsibility (CSR)

refers to an organization's obligation to maximize its positive impact and minimize its negative impact on society. Today's firm must accept responsibility for balancing profitability with social well-being when determining its success. CSR has been shown to benefit companies in many ways, including employee retention, brand image, and overall success.

Which of the following is a reason why the use of licensing to enter international markets has increased significantly in recent years?

rising research and development costs

Which of the following is an example of information search behavior during the consumer purchase decision process?

searching a company's website for product specifications

Jessica orders the same copier toner each month for the same price from the same supplier. This is an example of a

straight buy A straight rebuy occurs when a business customer signals its satisfaction by agreeing to purchase the same product at the same price.

A successful marketing ________ can lead to higher profits, stronger brands, and larger market share.

strategy A marketing strategy is the set of actions taken to accomplish organizational objectives. A successful marketing strategy can lead to higher profits, stronger brands, larger market share, and other desired outcomes for stakeholders of the firm.

Green Leaves seeks to encourage increased use of reusable bags by creating a new market space for "shoppers with a conscience." To achieve this, the firm creates differential value for consumers and makes contributions to society by reducing costs and environmental impact. Which overall environmental marketing strategy does this exemplify?

sustainable value innovation Firms that engage in sustainable value innovation do not aim to outperform the competition in an existing industry, but to create a new market space. In doing so, they hope to make the competition irrelevant by giving the consumer more value per product at a lower price.

The concept of sustainable marketing refers to

the process of creating, communicating, and delivering value to customers in a way that incorporates the concept of sustainability.

Positioning

1. Analyze Competitors' Positions 2. Highlight Competitive Advantage 3.Evaluate Consumer Feedback and Understand Its Importance

Select the statement that accurately defines a consumer want.

A consumer want is something a consumer would like to have but does not need for survival.

The marketers for Bob's Bagels have set up an Instagram account showcasing its unique bagel varieties (such as salted poppy seed) and unique homemade spreads (such as roasted red pepper). It has also posted a link in its Instagram bio directing customers to the online preordering form and a map that shows driving and walking directions to the actual shop. Which criterion for effective market segmentation is being applied in this situation?

Actionable In order to have a market segment that is actionable, marketers should be able to develop strategies that can attract certain market segments to their firms' goods and services.

Which of the following is true of demographic segmentation?

Age, being the easiest to identify, is one of the most commonly used demographic variables.

Which of the following is true of demographic segmentation?

Age, being the easiest to identify, is one of the most commonly used demographic variables. Companies divide markets using characteristics such as age, gender, income, education, and family size to achieve demographic segmentation. Age and gender, being the easiest to identify, are the most commonly used demographic variables. One of the most important sources of this information is the U.S. Census Bureau. Age is an especially valuable segmentation tool in areas such as food, housing, and health care because older Americans spend significantly more than younger consumers.

Quantitative

Almost always involves the use of statistical analysis, which is the mathematical classification, organization, presentation, and interpretation of numerical data.

Sal has heard a lot about his town's country club. He heard it has a great golf course, tennis courts and dining room. In addition, many of Sal's business partners belong to the club. Although he doesn't have the money to join the club now, Sal hopes to be able to in the future. What type of reference group would the country club be for Sal?

An aspirational reference group An aspirational reference group refers to the individuals a consumer would like to emulate.

Secondary Data

Collected for purposes other than answering the particular research question. Previous research Online electronic searchers Company records Marketing information systems Private research companies Government reports Academic journals Periodicals and mass media Historical information

Wanderlust Tours is a sustainable tourism group seeking to promote its latest trip—a trek through the Sapa region of Vietnam where all proceeds go toward building a new school for the children that live in the area. To promote this trip, it posts photos from the mountains on its Instagram account with the instructions to "click on the link in bio" for more information about the trip. Wanderlust Tours is using Instagram to

Communicate value

A product possesses a ________ when it enjoys a superior position over competing products because consumers believe it has more value than other products in its category.

Competitive advantage

Rico's firm manufactures homemade salsa. His product is sold around the country, but he adds extra jalapenos to his product sold in Texas, New Mexico, and Arizona because those customers prefer the extra heat and spice. Rico also markets the product differently based on the region of the country where it is sold. This represents what type of targeting strategy?

Differentiated A differentiated targeting strategy simultaneously pursues several different market segments, usually with a different strategy for each. In Rico's case, while the core product remained the same, select flavors were distributed to certain regions based on local preferences.

Which of the following scenarios would most likely require an extensive external search for information?

Dustin and Janelle are looking to buy their first home.

Petra recently landed her dream job as a travel writer for The New York Times. Not only does she get to visit a variety of places—from the beautiful mountain towns of Kentucky to the wild coastal villages of the Faroe Islands—she also gets to meet different people and uncover the latest food, clothing, or pop cultural trends in each of these places. According to VALS framework, Petra would be classified as a(n)

Experiencer Experiencers are primarily motivated by self-expression. They are characterized as trend seeking, impulsive, and variety seeking.

Information Search

External - Consumers seek information beyond their personal knowledge and experience. Advertisements, social media, product websites, friends and family Internal - Consumers use past experiences with items from the same brand or product class as sources of information.

Irina wants to open up a new reader's café in town for people to read, swap books, hold book club meetings, and enjoy coffee, pastries, and other refreshments at the same time. To determine how to position her business to best serve customers looking for this type of service and space, Irina should analyze the competitive environment using a repositioning strategy. Group starts

False A perceptual map provides a valuable tool for understanding competitor positions in the marketplace. It creates a visual picture of where products are located in consumers' minds. Marketers can develop a perceptual map based on marketing research or from their knowledge about a specific market.

Strategic planning is a process that is done only once, when the firm is defining its objectives and setting a course for achieving those objectives.

False Firms must continually undertake the task of strategic planning. Shifting conditions, including changing customer needs and competitive threats, ensure that what worked in the past will not always work in the future, thus requiring firms to modify their strategy.

One reason why it is important for marketers to analyze their competitors' position in the marketplace is to help firms promote an idealistic perception of their competitive offerings among their customers. Group starts

False Firms must understand the position other competitors have taken in the marketplace. Positioning does not occur in isolation, and it is important for marketers to have a realistic view of how customers perceive competitive offerings.