Marketing Analysis GR#1

3 levels of problem solving

-Routinized (Low involvement, inexpensive, frequently purchased, low risk) -Limited (some effort is required in deciding the best way to satisfy a need) -Extensive (High involvement, expensive, infrequently purchased, high risk)

Characteristics of a good brand name

-Short & Simple -Easy to Spell & Read -Easy to Recognize & Remember -Easy to Pronounce -Can Pronounce in Only One Way -Can Pronounce in All Languages -Suggests Product Benefits -Adapts to Packaging/Labeling Needs -No Undesirable Imagery -Always Timely -Adapts to Any Advertising Medium -Legally Available for Use

Mission statement

-falls under company of 3 c's -guides marketing decisions

Positioning statement

-falls under company of 3 c's - identifies value we hope target market will get from product

The scenario below can be used to answer the 2 questions that follow. Ty is moving into a new place and needs to select a new method for watching TV shows and movies. He has previously used cable TV and Netflix and was debating between the two. However, after talking to friends and conducting research, he is now considering other options like Amazon, Hulu, and DirectTV. He is weighing price, convenience, and availability of the programming that he enjoys. 1. Which of the following best describes Ty's decision-making process? A. extensive problem solving B. limited problem solving C. routinized response behavior D. routine problem solving E. problem solving dissonance 2. Because he has used them before, Ty knows that he wants either cable TV or Netflix. If he asks a few friends what they think and quickly researches the pricing and programming options of each, he is using ________ problem solving. A. extensive B. routine C. rational D. limited E. dissonant

1. A 2. D

The scenario below can be used to answer the 2 questions that follow. Dawn Brady needed a new hat. She was tired of the sun hat that she had worn for years. She saw a woman on the beach with a hat that provided a lot of shade and was very fashionable. On her way home from the beach, Dawn stopped in six different stores looking for a similar hat. Finally, in a small boutique, she found the hat the woman was wearing. While in the store, Dawn noticed a large, colorful display with (what she learned were) sarongs in sun-resistant fabric that are used as beach cover-ups. She had never seen such an item, but the display had an eye-catching video that demonstrated the different ways that the sarong can be used. Dawn left the store with a new hat and a sarong. 1. Which of the following best describes the consumer product class of the hat Dawn purchased? A. specialty product B. emergency product C. impulse product D. homogenous shopping product E. regularly unsought product 2. Which of the following best describes the consumer product class of the sarong Dawn purchased? A. staple B. unsought product C. specialty product D. heterogeneous shopping product E. homogenous shopping product

1. A Feedback: Specialty products are consumer products that the customer really wants and makes a special effort to find. Dawn's willingness to search for the hat makes it a specialty product. 2. B Feedback: Unsought products are products that potential customers don't yet want or know they can buy, so they don't search for them. Consumers probably won't buy these products if they see them—unless promotion can show their value.

The scenario below can be used to answer the 4 questions that follow. Country Furniture, a maker of furniture, has, for years, bought its upholstery fabric from Zesta, a maker of stain-resistant fabrics. It has always been satisfied with its relationship with Zesta and has never had complaints about the firm or its product. Recently, Country Furniture has noticed that customers have increasingly begun to request leather furniture and it has decided to start offering some of its pieces in leather. Zesta does not produce upholstery leather. Country Furniture has done a lot of research on leather upholstery and has put together a list of requirements for the leather fabric that it will ultimately purchase. 1. Until recently, Country Furniture's purchase of stain-resistant fabrics from Zesta would best be described as A. new-task buying. B. a straight rebuy. C. a modified rebuy. D. competitive bid. E. negotiated contract buying. 2. How would you characterize Country Furniture's current position according to the Model of Organizational Buying presented in your text? A. Step 1: Defining the Problem B. Step 2: Decision-Making Process C. Step 3: Managing the Buyer-Seller Relationship D. Step 4: Structuring the Relationship E. Step 5: Monitoring supplier performance 3. Country Furniture's future purchase of leather upholstery fabric would best be characterized as A. new-task buying. B. a straight rebuy. C. a modified rebuy. D. competitive bid. E. negotiated contract buying. 4. Country Furniture's CEO, purchasing manager, R&D department, and upholsters each played a part in determining the type of leather fabric to buy and the supplier to use. This is best described as A. a straight rebuy. B. a competitive bid. C. negotiated contract buying. D. multiple buying influence. E. outsourcing.

1. B 2. A 3. A 4. D

The scenario below can be used to answer the 2 questions that follow. A marketing manager for a big industrial company hired an outside researcher to conduct a few focus group interviews with a small group of customers to get some ideas about potential new product development. After conducting two focus groups, the researcher urges the company to immediately develop a new machine that 40 percent of the focus-group participants said they would be interested in buying. 1. With regard to the researcher's conclusions, which of the following statements is the most accurate? A. Focus groups are representative of the target market. B. The focus group may not be a representative sample. C. The conclusions are based on quantitative research. D. The researcher accurately defined the company's problem. E. Such secondary data are helpful to solve a company's problem. 2. Based on the researcher's conclusions, which would be the best advice for the marketing manager? A. Consult with R&D to begin development of the new machine. B. Hire more researchers to verify the data interpretation. C. Reconvene the focus groups and get more problem-specific data. D. Define the problem more specifically and do a situation analysis. E. Create a customer journey map.

1. B. Feedback: Because the focus group includes a relatively few customers, it may not be representative. Quantitative summaries of qualitative results can be misleading. Qualitative research can provide good ideas, but other approaches—based on more representative samples and objective measures—are often needed to test the hypotheses. 2. D. Feedback: Even if the researcher's conclusion seemed correct, the marketing manager's next best step would be to more specifically define the problem and to do a situation analysis to get a better idea about what research is needed

The scenario below can be used to answer the 3 questions that follow. A backpack producer makes a roomy backpack with convenient front pockets and easy access to into the main storage area. Its backpack also contains a laptop sleeve that can be securely fastened to an inside pocket but can be removed if it is not needed. The top of the backpack has a convenient spot for a cell phone or other small portable device that contains a removable and rechargeable battery that can charge devices via a USB cord. 1. Based on the information provided, which of the following submarkets is least likely to become a "good" market segment? A. college students B. urban commuters C. elementary students D. travelers E. day hikers 2. The firm decides to target the college students. Which of the following is a Product decision according to the 4 Ps of marketing strategy? A. The company has designed a dependable and versatile backpack that college students can use for both for class and other adventures. B. The company decides to sell its backpack in campus bookstores and retailers that carry back-to-school items for college students. C. The company uses a series of distribution centers to get the backpacks to the retailers in time for back-to-school shopping. D. The company prices the backpack competitively at $59.99. E. The company advertises online and uses social media influencers to promote their backpack. 3. The backpack producer has decided to create one strategy that focuses on college students and urban commuters. Which of the following best describes this decision? A. broad product-market approach B. generic product market approach C. combined target market approach D. multiple target market approach E. single target market approach

1. C 2. A 3. C

A middle-class family lives 45 minutes from the city with their two young children. The couple hires a babysitter on one Saturday night every month to go out on a date night. They are in the process of planning a family trip to Six Flags Adventure and Water Park to surprise the kids. Think about this family as representative of a larger group of customers who have similar needs, and then answer the following questions. 1. Which of the following marketing mixes would be most likely to appeal to the couple on their monthly date night? A. a bar/restaurant located downtown near a University that has bowling and video games B. a sandwich shop in a business park with an attached coffee bar that has counter service C. an affordable fusion restaurant in the nearby suburb with a warm atmosphere that is conducive to having conversation D. a high-end, expensive restaurant in the city that requires reservations six months in advance but is known for its gourmet cuisine E. a burger joint located in the city that appeals to a younger crowd and has music, a bar, and cheap eats 2.What marketing mix would most likely appeal to the couple as they plan to purchase clothing for their upcoming vacation? A. moderately priced department store that carries women's, men's, and children's clothing that advertises through inserts in the local paper B. mail-order catalog with travel clothing that is sent to subscribers of financial magazines like Fortune and Inc. C. discount clothier that sells factory seconds and store overstocks and advertises their "final markdowns" on last season's fashions on the radio D. a high-end Internet based retailer that sells resort wear and exclusively advertises on-line E. a shop that specializes in swim and other types of active wear that depends mostly on word-of-mouth advertising

1. C 2. A.

The scenario below can be used to answer the 4 questions that follow. Carlos and Faith Gumicio are considering the purchase of a Jeep Wrangler. Carlos loves the idea of the rugged vehicle and possibilities of bringing it off road. Several of his friends also own Wranglers and he is excited at the prospect of joining them at the "Jeep Jamboree," a Jeep-sponsored gathering of Jeep owners. Faith, on the other hand, doesn't think a Jeep is practical and remembers her mother pointing one out when she was young and calling it "silly." Besides Carlos's friends, Faith doesn't know anyone else who owns a Jeep. Recently, however, Faith has seen Jeeps wherever she goes. 1. Carlos is excited about joining his friends at the Jeep Jamboree. Which level of the PSSP hierarchy of needs does this satisfy? A. physiological needs B. safety needs C. social needs D. personal needs E. marketing needs 2. Now that they are talking about buying a Jeep, Faith sees them wherever she goes. This is best described as A. personal needs. B. selective exposure. C. reinforcement. D. selective retention. E. psychographics. 3. Faith's mother thought Jeeps were "silly." This is best described as A. an attitude. B. a belief. C. dissonance. D. social pressure. E. reference. 4. Carlos became interested in buying a Jeep because some of his friends had them. His friends can best be described as A. opinion leaders. B. social influencers. C. a social class. D. a reference group. E. a culture.

1. C 2. B 3. B 4. D

The scenario below can be used to answer the 4 questions that follow. Reliable Manufacturing Company, a producer of electric widgets, is reevaluating its marketing approach. The marketing manager asked her sales manager which six-digit NAICS codes may have the need for electric widgets. As the result of their analysis, 12 industries were identified as potential target markets for the product. The marketing manager then conducted another survey of a sample of firms belonging to each industry to determine the market potential for each. 1. Which of the following describes the NAICS codes that the sales manager was reviewing? A. the terms of sale offered by different suppliers B. a code that groups firms by percentage of sales C. a number that identifies groups of firms in similar lines of business D. a written description of what the firm wants to buy E. a formal rating of suppliers on all relevant areas of performance 2. If the marketing manager is particularly interested in firms in the economic subsector of Electrical Manufacturing, Equipment, and Supplies, she should A. aggregate firms with the same first two digits. B. focus on third digit of the NAICS codes. C. use different data than the NAICS codes. D. make sure that all firms have the same NAICS code. E. conduct phone surveys of firms with similar NAICS codes. 3. Of the following options, which would be the best marketing strategy for Reliable? A. Focus on all of the industries that have the same first two NAICS digits. B. Select one industry as a target market and concentrate on satisfying its needs. C. Offer the same marketing mix to each of the 12 NAICS industries identified by the sales manager. D. Develop separate marketing mixes to each of the 12 NAICS industries identified by the sales manager. E. Develop a marketing strategy and then determine which industry best suits it. 4. After selecting its target market, how could Reliable go about identifying and reaching the firms that make up that target market? A. industrial trade directories B. market surveys within the target industry C. trade show attendance lists D. trade magazine advertising E. All of these answers are correct.

1. C 2. B 3. B 4. E

The scenario below can be used to answer the 4 questions that follow. BlackBerry phones were the top cell phones in their class for many years. In a time before touchscreens, Blackberry had small QWERTY keyboards that could be used to send texts and emails. As companies began making touchscreens available on mobile devices, Blackberry ignored the change and was soon left behind as sales of Apple and Android devices skyrocketed. 1. Based on this information, BlackBerrry's biggest failure was to notice change in the ________ environment. A. economic B. legal C. technological D. political E. international 2.As Apple and Android devices were coming to market, BlackBerry should have A. sought legal protection from the courts. B. foreseen that the economic environment can and does change rapidly. C. identified them as competitive rivals on the basis of a competitive analysis. D. invested money in expansion into foreign markets. E. lobbied for government regulation of the mobile device market. 3. If true, which of the following would be the best example of a failure to accurately monitor the cultural and social environment? A. BlackBerry failed to see how interest rates and inflation could affect its buying power. B. BlackBerry did not expand into international markets. C. BlackBerry failed to understand the ramifications of the Sherman Act. D. BlackBerry never saw Apple and Android as competitors. E. BlackBerry did not anticipate the rapid adoption of mobile phone technology for personal rather than business use. 4. To most effectively deal with changing trends in their marketing environments, firms should A. recognize that environmental constraints will eliminate successful strategy planning. B. pull out of all markets with challenging environments. C. engage in an ongoing program of environmental surveillance. D. search for environments that are competitor-free. E. seek out international markets.

1. C 2. C 3. E 4. C

The scenario below can be used to answer the 2 questions that follow. When Jada runs out of dish soap, she adds a couple of bottles from her Amazon shopping list to her checkout cart and it is delivered the next day. 1. Jada's dish soap purchase is best characterized as A. limited problem solving. B. an information search. C. a routinized response behavior. D. consumer dissonance. E. extensive problem solving. 2. The dish soap purchase would be considered A. product dissonance. B. extensive problem solving. C. limited problem solving. D. an impulse buy. E. a low-involvement purchase.

1. C 2. E

The scenario below can be used to answer the 3 questions that follow. The maker of body cameras markets its product to law-enforcement agencies nationwide. Answer the following questions about the different types of market possibilities that the camera maker can pursue. 1. In an effort to increase its sales, the firm hires additional salespeople to attend law-enforcement conferences and lowers the price for departments that buy the cameras in bulk. This is best described as A. market value. B. product development. C. market development. D. market penetration. E. diversification. 2. If the body camera maker wanted to diversify, it would A. venture into the hotel business. B. improve the image that its cameras capture. C. change its marketing strategy. D. start marketing to different customers, like service professionals. E. begin to sell its cameras in international markets. 3. The body camera company decided to increase its sales by including private security professionals in its marketing efforts. This is an example of A. market development. B. operational decision-making. C. market penetration. D. product development. E. diversification.

1. D 2. A 3. A

Why consumers buy what they buy?

1. economic needs -economic buyers seek the best uses of time and money 2.phycological/ physiological variables -needs motivate consumers 3. social influences -family life affects consumer needs -social class 4.culture/ethnicity 5. Purchase situations -takes into account the purpose, time available, and location where a purchase is made..

Good Market Segments

1. homogenous within 2. heterogenous between 3. operational- characteristic to identify segment 4. substantial- large enough to be profitable

3 kinds of buying processes

1. new task buying -occurs when a customer organization has a new need and wants a great deal of information. 2. straight rebuy -is a routine repurchase that may have been made many times before. 3. modified rebuy -is the in-between process where some of the buying situation is done—though not as much as in new-task buying. -This might be a buying decision that has not been done before, or the criteria used to make a purchase decision may have changed.

Marketing history

1. simple trade (before 1830s): families traded/sold their surplus 2.Production era (1830s-1920s): companies produce a few specific products; "If we make it, it will sell." 3. Sales era (1920-1950s): companies emphasize selling due to increased competition 4. Marketing Dept. era (1950s-today): marketing activities consolidated into one department 5. Marketing Company (current): short-run marketing planning AND long-range marketing plans; guided by the marketing concept

"Environmentally-friendly transportation methods" is best described as a ________ market. A. generic B. multiple target C. homogenous product D. single target E. combined

A

Which of the following is the best example of target marketing? A. Phoenix Information Systems sells sophisticated personal computers to engineers and scientists through the company's regional branches. B. Comcast offers 400 channels of programming to its customers. C. The big box retailer sells thousands of store-branded sprinklers to its customers during spring and summer. D. Alexandra opens a restaurant that serves many different styles of food; her slogan is "Food for everyone's taste." E. The dish soap company took out an ad in a widely-distributed magazine that advertised that it does more dishes with one wash.

A

Which of the following is the statement of a firm with a production orientation? A. We have one department in our firm that is solely responsible for marketing our products. B. We do not believe that profit should guide our decisions. C. Our focus is satisfying customers at a profit. D. The marketing concept guides all departments in our firm. E. We make products that meet our customers' specialized needs.

A

Which of the following statements about generic markets is accurate? A. In generic markets, product types that are quite different may compete with one another. B. A generic market is a market with very similar needs. C. In a generic market, sellers offer various close substitute ways of satisfying needs. D. The definition of a generic market must describe a specific product. E. All of these answers are correct.

A

Which type of market situation best describes the competition between Teague's Ace Hardware, Town & Country, and Home Improvement Depot? A. monopolistic competition B. monopoly C. oligopoly D. pure competition E. competitor free

A

Marketing Research Process

A five-step application of the scientific method that includes (1) defining the problem (2) analyzing the situation (3) getting problem-specific data (4) interpreting the data (5) solving the problem

Of the following, which best describes the purpose of marketing? A. to create customer satisfaction B. to make goods for sale C. to perform services for pay D. to sell goods E. to advertise goods for sale

A.

The soda company discovered that insignificant amounts of non-hazardous dust from its factory may have ended up in bottles that have already shipped. Which of the following best describes this scenario? A. It is a matter of situational ethics. B. It is a matter of illegal marketing. C. It is not considered an ethical dilemma. D. It is an example of the free rider problem. E. Its solution is most likely laid out in societal laws.

A.

Zyron is a profitable production-oriented corporation. Which of the following is most likely to be true? A. Zyron's industry is not very competitive. B. Zyron is extremely attuned to market demands. C. Zyron's innovation has stymied its competition. D. Zyron's marketing activities have successfully satisfied its customers. E. Zyron's success has allowed it to abandon the marketing concept.

A.

As a marketing manager for PSI, you are asked to develop a behavior change marketing strategy to combat the HIV epidemic. You have defined the problem as: "Data shows that 1 in 7 Kenyans are HIV positive." You conduct research on your computer, make phone calls, and search government data. This process is referred to as: A. a situation analysis. B. setting research objectives. C. a journey map. D. quantitative analysis. E. experimental methods.

A. A situation analysis is an informal study of what information is already available in the problem area. It can help define the problem and specify what, if any, additional information is needed.

A product-market is a market with ________ needs. A. broadly similar B. very similar C. identical D. diverse E. contradictory

B

Gathering individuals into homogeneous market segments on the basis of similar needs and characteristics is referred to as: A. positioning. B. segmentation. C. clustering. D. generic marketing. E. combining.

B

Positioning refers to: A. the dimensions that affect the customer's purchase of a specific product or brand. B. how customer think about proposed or present brands in a market. C. aggregating clusters of people with similar needs into a market segment. D. including a customer type in a product-market. E. fine-tuning the marketing effort with information from a detailed customer database.

B

Which of the following accurately characterizes the first step in market segmentation? A. Select a single target market. B. Name the broad product-market. C. Segment the broad target market. D. Define homogenous product-markets. E. Combine target markets.

B

Which of the following would be the best example of a positioning statement for the retailer Target? A. Target is the ideal place for young families to buy necessities at a savings. B. For young families, Target, of all the general retail merchandise stores, delivers convenience, service, and cost savings because at Target you can expect more and pay less. C. One optimal target market for Target is young families that need a place where they can procure all their needs from diapers to groceries. D. Target has many different target markets, but young families are one of its most important. E. Target seeks to lure young families from other general retail merchandise stores with its promise of "expect more and pay less."

B

Which of the following would be the most effective target market for Teague's Ace Hardware? A. builders and contractors B. consumers who want a convenient place to buy hardware and decorating items C. customers who know exactly what they want D. customers who buy in quantity and want bulk discounts E. tradespeople who are looking for bargain prices

B

A company would like to shift from a production orientation to a marketing orientation. Which of the following is good advice for the company? A. Make what is easiest to produce. B. Focus on customer satisfaction. C. Make the product and then focus on selling it. D. Keep sales efforts segregated within the firm. E. Emphasize the firm's output.

B.

Target marketing focuses on a group of customers with A. universal appeal. B. homogenous needs. C. diverse interests. D. basic advertising. E. customer equity.

B.

5 levels of Brand familiarity

Brand rejection: consumers know brand, but reject it. (ex: Ticketmaster) Brand nonrecognition: consumers do not recognize brand (ex: nails; erasers, roofing shingles) Brand recognition: consumers recognize brand, but no feelings towards it Brand preference: consumers recognize brand, have positive feelings towards it. (So if you can, you'd prefer to buy this brand. Will usually choose it. Ex: Jif peanut butter, #1 selling pb in USA) Brand insistence: consumers recognize brand, and are loyal to it. (ex: Apple)

The advertisement for 5-Hour Energy points out that compared to other energy drinks that it has less calories, less sugar, and does not leave its users with a bloated feeling. These could be described as: A. segmentation. B. relevant markets. C. competitive advantages. D. positioning. E. combining

C

When defining its market, firms should A. stick to the narrowest possible definition. B. define its market as broadly as possible. C. match opportunities with the firm's resources and objectives. D. concern itself with the generic market only. E. concern itself with the product market only.

C

Which of the following is the best example of a generic market? A. a subscription movie service B. membership at the local pool C. weekend entertainment for teenagers D. late-evening discounts for meals at local restaurants E. a visit to the local library

C

Which of the following statements about social responsibility in marketing is accurate? A. All customer needs must be satisfied. B. Consumer, company, and social interests must be balanced. C. Marketers need not be concerned with social responsibility if it cuts into profits. D. All marketers act in a socially responsible manner. E. Social responsibility is only about following regulations and laws.

C

Based on the following statements, which of the following firms best demonstrates a marketing orientation? A. The goal of a company that makes razors for men is to run at full capacity and to sell everything that they make. B. A company that makes computer accessories lobbies for tighter import quotas because they have seen a dip in sales that they attribute to competition from foreign products. C. Based on data that it will encourage customers to buy more, an online marketplace is engaging in an effort to better personalize customers' shopping experiences. D. A firm that makes toys calls a meeting with its intermediaries to find out why sales have dropped. E. The company's sales manager orders the salesforce to visit every customer once a year even though it is a costly practice and has not generated increased profits.

C.

To provide customers with need-satisfying goods, marketers must: A. produce a lot of product. B. make products that are cheap to produce. C. anticipate customer desires, needs, and expectations. D. explain why they think customers should like their product. E.spend a majority of their budget on advertising.

C.

Which of the following accurately characterizes a common ethical dilemma faced by marketing managers? A. whether or not to follow societal laws that cover marketing B. a situation where personal judgment conflicts with societal law C. a conflict of interest between serving the company and serving customers D. a desire to totally ignore social responsibility E. government laws that go against the marketer's own personal judgment

C.

Which of the following is NOT one of the basic types of marketing opportunities? A. market penetration B. product development C. implementation D. market development E. diversification

C.

You are now collecting data that is specific to the problem that you have identified. Which of the following is the least likely to be part of this step of the marketing research process? A. observation B. surveys C. a situation analysis D. qualitative questioning E. focus group

C. A situation analysis uses information that is already available. In Step 3 of the marketing research process, the researcher gathers his or her own primary data to learn what people think about some topic or how they behave under some conditions.

Which of the following is NOT a consumer product class? A. convenience B. shopping C. business D. specialty E. unsought

C. Consumer product classes are products meant for the final consumer and are divided into four groups: (1) convenience (2) shopping (3) specialty (4) unsought. NOTE: Business product classes are products meant for use in producing other products.

Customer lifetime value (CLV)

CLV = M*[R/(1-R)] -AC M = Profit Margin R = Retention Rate AC = Acquisition Cost (1-R) = Churn rate

Each of the following describes criteria for a "good" market segment EXCEPT that the segment is A. homogeneous within. B. heterogeneous between. C. substantial. D. similar with other segments. E. operational.

D

The definition of a generic market may include each of the following EXCEPT A. customer needs. B. customer types. C. geographic area. D. product type. E. user needs.

D

What is the purpose of a positioning statement? A. to combine two segments into one target market B. to define segment preferences C. to identify target markets D. to provide direction for marketing strategy E. to help gather information from customers

D

When it comes to the Home Improvement Depot, which of the following creates a competitive barrier for Teague's Ace Hardware and Town & Country? A. Its extensive in-store service. B. It carries hardware and decorating items. C. It has the most knowledgeable staff for contractors and builders. D. Its large volume purchases gives it a cost advantage. E. It can fine-tune preferences of local customers.

D

Which of the following should be the first step that a marketing-oriented firm takes when developing a marketing strategy? A. Select a target market based on the ability to offer a good marketing mix at a profit. B. Develop a marketing mix and then determine what the target market to sell the mix to. C. Understand that all customers have the same needs. D. Determine what marketing mix each possible target market may require. E. Pick one marketing mix for each target market.

D

Which of the following statements about consumer product classes is accurate? A. Consumer product classes are based on product characteristics. B. Consumer product classes are only those classes of products that can be purchased in a physical location. C. Consumer product classes are those products that are seen the same way by all target markets. D. Consumer product classes depend on how customers think of and buy products. E. Consumer product classes are only relevant for convenience products.

D Feedback: Consumer product classes are based on how consumers think about and shop for products, not about the characteristics of the products themselves.

Which of the following is NOT a class of business products? A. installations B. professional services C. raw materials D. convenience products E. component parts and materials

D Feedback: Convenience products are a consumer product class. The classes of business products are: (1) installations (2) accessories (3) raw materials (4) components (5) supplies (6) professional services.

The difference between target marketing and mass marketing is that mass marketing A. is used for high-end products. B. recognizes that different customers have diverse needs. C. tries to satisfy the needs of a particular group of customers. D. hopes to attract everyone with universal appeal. E. appeals to customers who have fairly similar needs.

D.

Which of the following would be the best possible target market for a 4-wheel drive Jeep Wrangler with off-roading capabilities? A. high-performance car enthusiasts B. a middle-class family C. young men with long commutes D. the adventurous, outdoorsy type E. the conservative, practical type

D.

4 Deadly Ds

Deny Deflect Delay Diminish

Business product classes are based on A. consumer shopping behavior. B. how the product is considered and how it will be shopped for. C. whether the final product is used by a business. D. how an item is treated for tax purposes. E. how buyers think about products and how they will be used.

E

Faced with competition from both Town & Country and Home Improvement Depot, which of the following actions should Teague's Ace Hardware take? A. Conduct a competitor analysis. B. Search for a competitive advantage. C. Differentiate themselves. D. Keep a close eye on its competitive rivals. E. All of these answers are correct.

E

If the broad-product market was "bicycle-riders product market," which of the following would be the least likely submarket? A. adventure enthusiasts B. exercisers C. commuters D. socializers E. luxury seekers

E

The positioning statement should describe all of the following EXCEPT: A. the target market. B. the product type. C. a key benefit or point of differentiation. D. reasons to believe. E. the generic market.

E

Which of the following is NOT a consideration when determining a company's relevant market? A. product type B. customer (user) needs C. customer type D. geographic area E. customer relationship management

E

Which of the following is least likely to be considered part of the product-market for the 5-hour Energy Drink? A. coffee B. tea C. soda D. Red Bull energy drink E. a low-carb lunch

E

Brands like Nike and Apple are successful because they have been able to: A. anticipate their customers' needs. B. direct need-satisfying goods to their customers. C. create customer satisfaction. D. make sure that the right goods are produced and available to customers. E. All of these answers are correct.

E.

In the areas of social responsibility and ethics, marketing managers' decisions are based on which of the following? A. personal judgment B. marketing laws C. company codes of ethics D. American Marketing Association's Code of Ethics E. All of these answers are correct.

E.

Zebs, a purveyor of fine olive oils, is developing its marketing strategy. Which of the following would be its most effective target market? A. women aged 25-40 B. people who shop in big-box stores C. suburban women D. Asian Americans in urban and suburban markets E. urban customers of specialty cooking stores

E.

Predictive Analytics

For a marketing manager, unknown future events include customers' future needs, the information useful to problem solving, and whether a customer is considering a switch to a competitor. -need awareness -information search -alternatives identification -post purchase

GDP

Gross Domestic Product- the total market value of all final goods and services produced annually in an economy

GNI

Gross national income (now used in preference to gross national product—GNP). The total value of goods and services produced within a country together with the balance of income and payments from or to other countries.

marketing definition

Marketing is the performance of activities that seek to accomplish an organization's objectives by anticipating customer needs and directing a flow of need-satisfying goods/services from producer to consumer.

PESTLE analysis

Political, Economic, Social/Cultural, Technological, Legal, Environmental

just-in-time delivery (JIT)

Providing a customer with inventory when it's needed may require that a supplier be able to provide just-in-time delivery—reliably getting products there just before the customer needs them.

Adoption process

Steps individuals go through on the way to accepting or rejecting a new idea. 1. Awareness—the potential customer comes to know about the product but lacks details. The consumer may not even know how it works or what it will do. 2. Interest—if the consumer becomes interested, he or she will gather general information and facts about the product. 3. Evaluation—a consumer begins to give the product a mental trial, applying it to his or her personal situation. 4. Trial—the consumer may buy the product to experiment with it in use. A product that is either too expensive to try or isn't available for trial may never be adopted. 5. Decision—the consumer decides on either adoption or rejection. A satisfactory evaluation and trial may lead to adoption of the product and regular use. According to psychological learning theory, reinforcement leads to adoption. 6. Confirmation—the adopter continues to rethink the decision and searches for support for the decision—that is, further reinforcement.

Business and organizational customers

Two types of customers: 1. end users (you and me when we buy goods and services) 2. Business and organizational customers: -producers of other goods/services -Intermediaries (like wholesalers/retailers) -Gov't -Nonprofits Why do we care? 1. The B2B market is HUGE...much bigger than the consumer market. 2. Providing value to B&O customers is dif. than providing value to end users

Target Market

a fairly homogeneous (similar) group of customers to whom a company wishes to appeal

Opinion leaders

a person who influences others. Opinion leaders aren't necessarily wealthier or better educated. can influence both what product categories a consumer considers and what brands he or she purchases.

inelastic demand

although the quantity demanded increases if the price is decreased, the quantity demanded will not "stretch" enough—that is, it is not elastic enough—to avoid a decrease in total revenue

Generic Market

customer needs + customer types + geographic area

Product Market

customer needs + customer types + geographic area + product type (good/service)

3 C's

customers: identify target market, and their needs company: know capabilities and what needs you can meet competition: see what current and future gaps/opportunities there might be in the market

marketing concept

firms aim all of its efforts at satisfying its customers at a profit

Market Segmentation

getting very specific, drilling down to specific customer needs 1. name broad product market ex. bicycles 2. segmenting ex. mountain vs road bikes, leisure vs adventure, etc..

SWOT analysis

identifies and lists the firm's strengths, weaknesses, opportunities, and threats.

Aspirational reference group

includes people an individual desires to be like—for example, performers or athletes.

Associative reference group

includes people who more realistically reflect an individual—perhaps friends, family members, or coworkers.

Marketing Opportunities

market penetration: means trying to increase sales of a firm's present products in its present markets—probably through a more aggressive marketing mix. market development: trying to increase sales by selling present products in new markets. product development: offering new or improved products for present markets. diversification: moving into totally different lines of business—perhaps entirely unfamiliar products, markets, or even levels in the production-marketing system.

Competitive market situations

monopoly ex. utility companies pure competition ex. crops oligopoly ex. at&t vs sprint vs tmobile monopolistic competition ex. subway vs McDonalds vs canes

Foreign Corrupt Practices Act (FCPA)

passed by the U.S. Congress in 1977, prohibits U.S. firms from paying bribes to foreign officials.

Reference group

refers to the people to whom an individual looks when forming attitudes about a particular topic. Such people may influence a purchase decision.

Law of diminishing demand

says that if the price of a product is raised, a smaller quantity will be demanded, and if the price of a product is lowered, a greater quantity will be demanded.

marketing strategy

specifies a target market and a related marketing mix. It is a big picture of what a firm will do in some market. Two interrelated parts are needed.

A Model of Organizational Buying

step 1: defining the problem -problem recognition -need description -product specification step 2: buying process -establish buying process -gather information -solicit bids -select supplier step 3: managing the buyer-seller relationship -structure the relationship -monitor supplier performance

elastic demand

that if prices are dropped, the quantity demanded will stretch (increase) enough to increase total revenue.

marketing mix

the controllable variables the company puts together to satisfy this target group. product, place, promotion, price

Product

the need-satisfying offering of a firm -can be a good or service or both

Competitive bid

the terms of sale offered by the supplier in response to the purchase specifications posted by a buyer.

Products are subject to Regulation

• What you can call it (Lanham Act , 1946) • [Also Lisbon Agreement of 1958 for items of geographic origin] • How you must label it (Fed. Fair Packaging and Labeling Act (1967)) • [Also Nutrition Labeling & Education Act of 1990] • Any warranties you offer (Magnuson-Moss Act, 1975) (Warranties must be clearly written and available for inspection before purchase.) • Where you claim it's from. (FTC Enforcement Policy Statement on U.S. Origin Claims) • What you claim it can do (FTC Act prohibits unfair or deceptive acts or practices). ex: "Companies must support their advertising claims with solid proof." (ftc.gov) • ***although substantiation is not required for "puffery", per Pfizer Inc, 91 FTC 23 (1972). Puffery is an obviously exaggerated claim that ordinary consumers do not take seriously. *** • How you advertise it. (prohibitions, required disclosures, etc.) • How long you can call it "new". (FTC gives a limit of 6 months.) • How safe it is. [(Consumer Product Safety Act (CPSC/Food and Drug Admin)]

Phases of PR crisis

•Something bad happens to, or by, the brand. •Notable for some reason: unexpected, defies trend/logic, etc. •Immediate response either missing or insufficient •Incident goes viral in traditional media as well as social media •Company attempts to address; often backfires •Greater public scrutiny •Major mea culpas, across all platforms. •Public may or may not forgive.