Marketing Exam 1
Baby Boomers
-born between 1946-1964 -50-plus consumers
mission statement
-broad description of firms objectives -answers what type of business are we?
Production-oriented era
-build a good product & it'll sell itself -retailers were considered places to hold inventory until it was sold -concern with innovation not satisfying consumer needs
Gen X
-latchkey children -represent 41 million Americans -born between 1965-1976
Sales-oriented era
-lots of advertising & personal selling are the keys to success -aggressive selling & TV advertising -overproduction
Portfolio Analysis
-management allocates its resources to products with the greatest potential to be profitable -firms typically perform it at the SBU or product line level of the firm -management evaluates the firms various products & businesses
Gen Y
-millennials -cohort varies most in age
Value-based era
-more to marketing than just meeting needs & wants -consumers expect a fair return for the price they pay
marketing strategy
-outlines what a firm plans to do to appeal to potential customers -identifies firms target market, related marketing mix & bases upon firm plans to build sustainable competitive advantage
market share
-percentage of a market accounted for by a specific entity -defines a products strength in a particular market
Marketing-oriented era
-products were designed to focus on consumers needs -it was a buyers market -growing focus on meeting customers needs & wants
marketing plan
1. Business Mission & Objectives 2. Situation Analysis (SWOT) 3. Identify Opportunities (STP) 4. Implement Marketing Mix 5. Evaluate Performance Using Marketing Metrics
consumer decision process
1. Need Recognition 2. Information Search 3. Alternative Evaluation 4. Purchase 5. Postpurchase
B2B buying process
1. Need Recognition 2. Product Specification 3. RFP process 4. Proposal analysis & supplier selection 5. Order specification 6. Vendor/performance assessment
Which of the following laws was passed to prohibit monopolies and other activities that would restrain trade or competition, as well as make fair trade within a free market a national goal?
1890 Sherman Antitrust Act
Which ethnic group represents the fastest-growing minority population and tends to earn more, have more schooling, and be more likely to be professionally employed or own a business?
Asian Americans
After World War II, the birthrate in the United States rose sharply, resulting in a generational cohort known as
Baby Boomers
Your text describes the macroenvironmental factors that operate in the external environment by which acronym?
CDSTEP
In BCG portfolio analysis, products in low-growth markets that have received heavy investment and now have excess funds available to support other products are called
Cash Cows
The primary strength of Pepsi is the manufacture, distribution, and promotion of carbonated beverages. These describe which factor of a Pepsi consumers' immediate environment?
Company capabilities
Immediate environment
Company, competition, corporate partners
Which of the following entities is at the center of the marketing environment?
Consumers
Which of the following is the most likely result of inflation?
Consumers will switch to less expensive options for necessities
Ford Motor Company engages in partnerships with its suppliers, component part makers, unions, transport companies, and dealerships—collectively known as its
Corporate Partners
Broadly defined, _____ is (are) the shared meanings, beliefs, morals, values, and customs of a group of people.
Culture
Many catalog companies create special-run issues based on what customers have purchased in the past. For example, customers who frequently order bedding items like sheets and pillows receive a catalog with a larger section of bedding items than do customers who mostly order kitchen tools. This is an example of
Customer Relationship Management (CRM)
Red Mango rewards loyal customers with coupons that can be redeemed for free and discounted products, and they offer loyal customers special promotions. These activities are part of a(n) ______________ program.
Customer Relationship Management (CRM)
Both Red Mango and Pinkberry must communicate information about their products and services and then deliver them to their customers. In turn, their customers provide these companies with money and information. This represents the core marketing concept of _______.
Exchange
The first generation of "latchkey" children, known as _____, includes those born between 1965 and 1976.
Gen Xers
_____, also known as Millennials, constitutes more than 60 million members in the United States alone and were born between 1977 and 2000.
Gen Y
Which of the following groups of people are referred to as Digital Natives?
Gen Z
Advertising guidelines stating that companies cannot link unhealthy foods with cartoon and celebrity figures is geared toward which social trend?
Health & Wellness concerns
_______ consumers in the United States have increasing influences on mainstream U.S. culture and the buying power of this group is projected to reach $1.3 trillion in 2015.
Hispanic
Which of the following frameworks for analysis is comprised of a company's capabilities, competitors and corporate partners?
Immediate Environment
An important economic factor that refers to the persistent increase in the prices of goods and services is called
Inflation
The cost of borrowing money is measured by
Interest rates
Moving from television broadcast into e-commerce has allowed HSN to achieve _______ excellence.
Locational
Culture, demographics, social issues, technological advances, economic situations, and the political/regulatory environment are all factors that make up which of the following frameworks of analysis?
Macroenvironmental factors
When Spirit Airlines expands into additional cities, which growth strategy is it using?
Marketing development
Which of the sources of sustainable competitive advantage discussed in the text is Spirit Airlines most likely pursuing with its ultra-low cost carrier strategy?
Operational excellence
Effective promotion enhances a product or service's
Perceived value
Jeff is going to sell sporting apparel, which he has already purchased from manufacturers, and has signed a deal agreeing to the volume he will sell monthly. He has researched his competition, talked to some customers, and decided on prices he will charge. Jeff has also developed a plan for promoting his business. Based on this description, which element of the marketing mix does Jeff still need to work on?
Place
Macroenvironmental
Political/Legal, cultural, social, economic, technological
When Spirit Airlines identifies itself as an ultra-low cost carrier (ULCC), it is ______ itself compared to other airlines.
Positioning
Clearly, customers enjoy the frozen yogurt offered at both Pinkberry and Red Mango. They also seem to enjoy the service in the stores as well as the idea that frozen yogurt is healthy. These elements all represent delivering value through which of the four Ps?
Product
Which element of the marketing mix is most relevant to the activity "creating value"?
Product
3M involves its customers in the process of developing new products. In this way, it can benefit from current customers' insights and develop new products that will meet these customers' needs. 3M is pursuing a __________ growth strategy
Product development
By offering new products developed by well-known designers to its existing customers, HSN used which growth strategy?
Product development
Which of the following is not a demographic listed in your text that would typically be used to identify consumer markets?
Religion
Strategic Business Unit
SBU may have a different mission or objective from other divisions
STP
Segmentation, Targeting, & Postioning
SWOT
Strengths, Weaknesses, Opportunities, Threats
HSN focuses its marketing efforts on busy women older than 35 years old who own their homes. This customer group is HSN's ________.
Target Market
First-time Spirit Airlines customers sometimes don't understand its "bare fare" strategy, leading to unpleasant surprises when they check in at the airport. In terms of a SWOT analysis, this is an example of a(n)
Weakness
behavioral component
actions we undertake based one what we know/feel
sustainable competitive advantage
advantage over competition that is not easily copied & can be maintained over a long period of time
consensus buying center
all members of the team must reach a collective agreement
esteem needs
allow people to satisfy their inner desires
market growth rate
annual rate of growth of the specific market in which the product competes
financial risk
associated with monetary outlay, includes initial cost as well as costs of using item/service
compensatory decision rule
assumes that the consumer trades off one characteristic against another
In 2006, Walmart announced that it would begin selling organic food products. In doing so, Walmart was most likely trying to
attract a different market segment
value-oriented marketers measure the _____ that customers perceive against the cost of their offerings
benefits
The ___________ includes members of Hope Springs' upper management team, Brian (the purchasing manager), and members of the accounts payable department.
buying center
Price
captures value
Promotion
communicates value
When McDonald's opened its fast-food restaurants in European locations, it had to modify its product offering primarily due to differences in
country culture
Product
creates value
If the makers of the camp car focused on promoting the car's convenience in urban areas, they would be appealing to which of the following?
customers lifestyle
B2B marketing impacts
customers, partners, & employees
Place
delivers value
Hope Springs purchases many products from suppliers in the course of doing business, including empty water bottles. The number of bottles Hope Springs will need each month depends on the number of bottles purchased by customers. This is an example of __________.
derived demand
The news began airing coverage of accidents that occurred in Ford vehicles. This extensive coverage created fear for consumers, causing them to purchase fewer Ford vehicles. This is an example of ___________.
derived demand
Fast, convenient home delivery and a wider selection of movies, Netflix's competitive advantage over retail stores, represent ______ for many customers.
determinant attributes
Sharon is researching different weight-loss programs. She is evaluating each program's costs, ease of use, group support, and variety of choices. In the decision process, these four program differences that Sharon is evaluating are called ________.
determinant attributes
The Netflix distribution centers help to reduce postpurchase _______ by ensuring fast delivery and responsiveness
dissonance
SBU
division of firm tat can be managed & operated somewhat independently from other divisions
product excellence
effective branding & positioning, high perceived value
affective component
emotions about issue at hand
market penetration strategy
employs the existing marketing mix & focuses the firms efforts on increasing sales to current customers
how is market penetration achieved?
encouraging current customers to patronize the firm & the brand more often
Henrik is overweight and is considering a weight loss program. He feels it is an important and risky decision and is spending a lot of time and effort gathering information and evaluating the different plans. Henrik is involved in a process known as ________.
extended problem solving
What type of buying process do most customers engage in when shopping for a car?
extended problem solving
social influencing factors
family, culture, & referencing groups
social risk
fears consumers suffer when they worry others might not regard their purchases positively
operational excellence
focus on excellent supply chain management
The CEO of Netflix recognized lconsumers' ______need for a more cost-efficient movie rental system focusing on avoiding large late fees.
functional
_________ control the flow of information and/or access to the members of the buying center at Hope Springs.
gatekeepers
Consumers who have similar purchase behaviors because they have shared experiences and are in the same stage of life are known as a _____ cohort.
generational
The social trend of _____ is causing consumers to question whether or not firms are truly operating with consideration for the environment or simply changing marketing efforts in order to appear that they are.
greener consumers
Firms that disingenuously market products as environmentally friendly with the goal of gaining public approval and sales, rather than actually improving the environment, are guilty of
greenwashing
product line
group of products that consumers may us together or perceive as similar
Product Development Strategy
growth strategy that offers a new product/service to a firms current target market
locational excellence
high density of stores & closer proximity to customers
Stars (upper left)
high-growth markets & are high market share products
Question Marks (upper right)
high-growth markets but have relatively low market shares
institutions
hospitals, universities, & religious organizations
Suppose an individual with a large disposable income passes a camp car en route to work. Intrigued with the car's unique look, the individual visits a camp car dealership later that day and purchases one. Which type of problem solving best characterizes this individual's purchase decision?
impulse buying
product development strategy
incorporates a new product/service to a firms current target market
organizations that make up B2B
institutions, manufacturers, resellers, government
diversification strategy
introduces a new product/service to a new market segment
When a firm evaluates how other companies react to the firm's marketing activities, it is attempting to understand what aspect of the immediate environment?
its competitors
relational orientation
lifetime profitability is more important than money made during each transaction
Dogs (lower right)
low-growth markets & have relatively low market shares
Cash Cows (lower left)
low-growth markets but are high market share products
customer excellence
loyalty programs & supplier service
democratic buying center
majority rules on decision
who is in the supply chain?
manufacturers & retailers
resellers are
marketing intermediaries that resell manufactured products without significantly altering their form
If Brian were tasked with purchasing an additional 500 tablets for Hope Springs but he was asked to change the requirements for making the purchase, this would be called a(n) __________ situation.
modified rebuy
psychological influencing factors
motives, attitudes, perceptions, learning & lifestyle
autocratic buying center
one person makes decision alone
consultative buying center
one person makes decision based on input from others
what creates customer value?
operational, customer, product, & locational excellence
performance risk
perceived danger in a poorly performing product/service
functional needs
performance of a product/service
Many consumers question whether diet programs really work and result in weight loss. This represents _______ risk. The higher this risk, the more likely a consumer will extend his _____ when going through the decision process.
performance; search for information
user
person who consumes/uses the product/service
gatekeeper
person who controls information access
initiator
person who first suggests buying product/service
buyer
person who handles paperwork of actual purchase
decider
person who ultimately determines any part of or the entire buying decision
influencer
person whos views influence other members of buying center
cognitive component
person's belief system
psychological needs
personal gratification consumers associate with a product/service
One concern some potential car buyers might have about the camp car is that it might be cheaply made and thus might break down frequently. Which type of risk does this concern represent?
physiological risk
After the major tire recall, Ford regretted purchasing so many Firestone tires for its vehicles. This kind of buyer's remorse is also called _______________.
postpurchase dissonance
noncompensatory decision rule
product purchase decision made because it has an attribute, valued above any of its other attributes
Hope Springs needs tablet computers that are fast, include 24/7 tech support, and include a generous volume discount. These criteria would be collected during which stage of the B2B buying process?
product specification
One of the main causes for the tire's defect was the lack of a nylon overlay. Ford claims that it asked Firestone to produce the tires with a nylon overlay as well as include materials that would reduce tread separation. These are examples of ______________.
product specifications
After the Firestone recall, Ford recognized that it would need to work with a new tire supplier for its vehicles. Ford then began to develop new product specifications and request proposals from other tire manufacturers. What is the next step in the B2B buying process for Ford?
proposal analysis & supplier selection
habitual decision making
purchase decisions process in which customers engage in littler conscious effort
situational influencing factors
purchase situation, temporal state, & shopping situation
market development strategy employs existing product offering to
reach new market segments
organizational culture
reflects set of values, traditions, & customs that guide its employees behavior
value
reflects the relationship of benefits to costs
In New England, soft drink beverages are called soda while in many other parts of the country they are called pop. This is an example of the effects of
regional culture
method of building a relationship with customers based on the philosophy that buyers & sellers should develop a log-term relationship
relational orientation
relative market share is used to provide managers with a products
relative strength
psychological risks
risk associated with the way people will feel if the product/service doesn't convey the right image
physiological risk
safety risk, what might happen if a product doesn't perform as expected
Maslow's Hierarchy of needs
self-actualization, esteem, love, safety, & physiological
evaluative criteria
set of important attributes about a particular product
Xavier is analyzing potential market segments. He should carefully seek potential customers who have both an interest in his products and
the ability to buy them
In the immediate environment, what is the first factor that affects the consumer?
the company itself
marketing opportunity
unfilled needs
Both Pinkberry and Red Mango allow customers to "do-it-yourself." In other words, customers can create and customize their own unique combinations of flavors and toppings. In marketing, this is known as ______.
value co-creation