Marketing Study Guide 1

True or False: A firm involved in international marketing should pay even more attention to segmenting than a firm that sells only in the United States

True

True or False: GDP income measures can give the impression that people in less-developed nations have more income than they really do. Pg.75

True

True or False: Gen X is smaller in numbers as compared to the boomers that came before Pg. 78

True

True or False: The definition of a product-market includes a product type while the definition of a generic market does not included a product type;

True

True or False: The internet is a powerful way to get information about competitors Pg. 64

True

True or False: The more heterogeneous a firm's target market becomes, the more likely the firm will see competition from an innovative segmenter Pg. 98

True

True or False: The seven step approach to market segmentation uses a S.W.O.T. analysis

True

Which of the following is the BEST example of management thinking during the "production era"?

"If we can produce it, customers will buy it."

Which of the following statements about market segmentation is NOT true -It starts by segmenting broad product markets. -It involves naming broad target-markets -A market grip with submarkets can be a visual aid to marketing segmentation -It segments broad product-markets in order to develop suitable marketing mixes

"It starts by segmenting broad product markets" it the statement about market segmentation that is NOT true

Which of the following observations is not true of monopolistic competition -A number of different firms offer marketing mixes that at least some customers see as different -Marketing managers try to differentiate very similar products by relying on other elements of the marketing mix -Each competitor tries to get a monopoly in its own target market -Most marketing managers in developed economies do not face monopolistic competition -Competition exists because some customers see various alternatives as substitutes

"Most marketing managers in developed economies do not face monopolistic competition" is the observation that is not true of monopolistic competition

The Pure Food and Drug Act...... -Was the first consumer protection law -Was passed by congress in 1906 -Shifted the focus from "let the buyer beware -Bans shipment of unsanitary products -All of these

*All of these -Was the first consumer protection law -Was passed by congress in 1906 -Shifted the focus from "let the buyer beware -Bans shipment of unsanitary products

a "market" consists of: -Customers who are willing to exchange something of value -a group of potential customers with similar needs -sellers offering ways of satisfying customer needs -All of these

-All of these

NAFTA: -Is a free-trade pact between the U.S., Canada, and Mexico. -IS a long-term proportion -Has already eliminated most trade barriers with Mexico -All of these are correct

-All of these are correct

Strategic planning is a top management job that includes planning only for marketing

-False While it is a top management jobs, it includes more than marketing, such as planning for production finance, human resources, and other areas. Pg. 33

Concerning Marketing Ethics

-Individuals develop moral standards based on their own values -Opinions about what is right or wrong vary from one society to another -The prevailing practice of most businesspeople is to be fair and honest -Marketing ethics has it's critics -All of the above concern marketing ethics. Pg. 25-26

The Clayton Act specifically aims at -tying contracts -price discrimination by manufacturers -exclusive dealing contacts limiting a buyers sources of supply -all of these are correct

-Tying contracts -Price discrimination by manufacturers -Exclusive dealing contacts limiting a buyers sources of supply

Target market dimensions should influence all the following strategy decisions except: -what product features and assortments will be offered -What prices should be set -where products will be available for purchase. -which types of advertising and promotion to be utilized -Which industry a firm should choose

-Which industry a firm should choose

Which of the following statements about "segmenting" and "combining" is true?

A combiner tries to meet the demand in several segments

A "marketing plan" is: Pg. 40

A marketing strategy - plus time-related details for carrying it out.

Which of the following would not be a strength for a local coffee shop? -A well organized brand -A patented coffee blend -Establishing relations with local businesses -Access to large amounts of capital form a long term relationship with a local bank -Counter staff that knows and understands customer preference Pg. 62

Access to large amounts of capital form a long term relationship with a local bank would not be a strength for a local coffee shop

The "marketing concept" says that a business firm should:

Aim all it's efforts at satisfying it's customers - at a profit

The Marketing management process is the process of: -Planning marketing activities -Implementing marketing plans -controlling marketing plans -All of these Pg. 32

All of these

Behavioral (rather than demographic) segmenting dimensions include: Type of problem-solving -kind of shopping -brand familiarity -benefits sought -all of these are behavioral dimensions

All of these are behavioral dimensions

Which of the following is a consumer market geographic dimension? -Sex -Age -Occupation -Education -All of these are examples of a consumer market demographic dimension

All of these are examples of a consumer market demographic dimension

Product is concerned with: -Branding -Packaging and warranty -Physical goods -services -all of these might be involved with Product pg. 37

All of these might be involved with product

True or False: A marketing mix consists of the uncontrollable variable which a company puts together to satisfy a target market.

False Pg. 34

When a customer orders a book at Amazon.com, the online retailer recommends related books that have been purchased by other customers who bought that book. Amazon is using a: Pg. 104

CRM

Which of the following is not a basic kind of market (competitive) situation? -Pure competition -Oligopoly -Capitalistic competition -Monopolistic competition -Monopoly Pg. 63

Capitalistic competition

In a firm's hierarchy of objectives, the top-level objectives that guide all other objectives are known as: -R&D objectives -Company objectives -Price objectives -Personal selling objectives -marketing objectives Pg. 61

Company objectives

A ______ is an organized table that compares the strengths and weaknesses of a company with those of it's competitive rivals Pg. 63

Competitor Matrix

When segmenting markets, why can't managers simply choose one or two demographic Characteristics around which to define their target market? -It puts marketers at risk of discrimination lawsuits -customer behavior is too complex to be explained in terms of just one or two demographics -demographic characteristics do not influence buying behaviors -market segmentation must be based on three or more dimensions to be valid

Customer behavior is too complex to be explained in terms of just one or two demographic characteristics

__________ refers to the total stream off purchases that a costumer could contribute to the company over the length of the relationship Pg. 43

Customer lifetime value

Allie Auto Repait keeps a record of customer oil changes and sends a reminder postcard to its customers when it's time for the next oil change. This is an example of a _________ system pg. 105

Customer relationship management (CMR)

True or False: Personal selling and advertising are both forms of sale promotion.

False Pg. 38

When identifying a company's market, managers need to avoid the mistake of -finding out what customers need -thinking of a market as a group of customers with similar needs who will exchange money for goods and services that meet those needs -trying to identify specific target markets within a general market -describing their markets sole in terms of the product they sell -thinking of the issues from the customers point of view

Describing their markets solely in terms of the products they sell

_________ segmenting dimensions are those which actually affect a person's purchase of a specific product type or brand in a product-market

Determining

The most risky and challenging opportunities usually involve -Market development -product development -diversification -market penetration -all of these are similar in terms of risk Pg. 50

Diversification

True or False: A mission statement sets out the strengths and weaknesses of a firm as well as the opportunities and threats that it faces.

False This would be a S.W.O.T., not a mission statement

Rising costs and inflation are part of the uncontrollable _________ environment Pg. 66

Economic

True or False: A market is a group of two or more sellers who offer substitute ways of satisfy ing customer needs Pg. 88

False

True or False: A personality trait like moodiness is a good example of an "operational" segmenting dimension Pg. 96

False

True or False: Changes in the cultural and social environment tend to come about quickly. Pg. 79

False

True or False: Competitive barriers are the conditions that make it possible for a firm to compete in a market Pg. 60?

False

True or False: Market segmentation applies only to consumer goods and services; it cannot be applied to business products

False

True or False: Market segmentation says that target marketers should develop on good marketing mix aimed at a fairly large market

False

True or False: The main difference between a "product-market" and a "generic market" is whether customers needs are similar or different

False

True or False: According to the text, Promotion is the most important of the "four P's"

False - Each of the four P's contributes to the whole. Pg. 39

True or False: Personal selling involves direct personal communication to get the sale, but personal attention is seldom required after the sale.

False - Sometimes personal attention is required after the sale, in the form of customer service. Pg. 38

True or False: A traget market consist of a group of consumers who are usually quite different.

False -A target market is a fairly homogenous (similar) group of customers to whom a company wishes to appeal. Pg.34

True or false: The terms mass marketing and mass marketers mean the same thing

False -Mass Marketing means trying to sell to everyone. Mass Marketers like Kraft and Walmart are aiming at defined target markets. Pg. 34

True or False: Mass marketing means focusing on some specific customers, as opposed to assuming that everyone is the same and will want whatever the firms offers.

False -Mass marketing vaguely aims at everyone with the same marketing strategy. It assumes that everyone is the same - and it considers everyone to be a potential customers. pg. 34

True or False: Marketing managers almost always find that opportunities in international markets are less profitable than in domestic markets. Pg. 51

False -There are good reasons to go to the trouble of looking elsewhere for opportunities.

True or False: The external market environment doesn't play a role in the marketing strategy planning process because it exists outside of the company. Pg. 47

False -Trends in the external market environment may make a potential opportunity more or less attractive. These complications can amen it difficult to zero i on the best target market and marketing mix.

True or False: The "marketing concept" means that a firm emphasizes attracting new customers above all other objectives

False Means that an organization aims all of it's efforts at satisfying its customers at a profit. -Customer Satisfaction -Total company effort -Profit

True or False: A marketing plan and a marketing strategy mean the same thing

False: -A marketing plan is a written statement of a marketing strategy and time related details for carrying out the strategy. Pg. 40

A ____________ market is a market with broadly similar needs and sellers offering various —— and often diverse —— ways of satisfying those needs -planned -target -central -generic -relevant

Generic

Gross Domestic Product (GDP)......

IS the total market value of goods and services in a year

Refers to putting marketing plans into operation: -Delivery -implementation -Operational planning -Strategy -Contol Pg. 41

Implementation

During the sales era

Increased competition made firms focus on winning customers

According to the text, segmenting: -is a disaggregating or "breaking down" process -assumes that each person should be treated as a separate target market -assumes that all customers can be clustered into profitable market segments -Is an aggregation process -uses scientific rules to decide how many submarkets exist

Is an aggregation process

The MOST USEFUL dimensions for segmenting markets are: -geographic and demographic dimensions -brand familiarity and consumption patterns -social class -benefits sought -It depends on what product-market one is segmenting Pg. 101

It depends on what product-market one is segmenting

Sales promotion.... -Lets the salesperson adapt the firms marketing mix to each potential customer -Tries to help the personal selling and mass selling people -is free -consists of both advertising and personal selling Pg. 38

Lets the sales person adapt the firms marketing mix to each potential customer.

___________ is the process of naming broad product markets and then segmenting these broad product-markets in order to select target markets and develop stable marketing mixes

Market segmentation

________ Refers to market situation where one firm completely controls a broad product-market Pg. 63

Monopoly

Interest rates....... -Often change with changes in the economy -affect consumer markets but not business customers -Usually decrease during periods of inflation -do not directly affect the total price borrowers must pay for loans Pg. 66

Often change with changes in the economy

Place is NOT concerned with -Who handles storing and transporting -When and where products are wanted -Kinds of intermediaries needed to reach customers. - Telling the target market what products are available- and where -Channels of distribution Pg. 37

Place is not concerned with telling the target market what products are available and where.

The Sherman Act sought to......... -Prevent monopolies or conspiracies in restraint of trade -establish the federal consumer protection agency -eliminate price difference among different competing suppliers -prevent fraud on the internet -restrict importing into the united states

Prevent monopolies or conspiracies in restraint of trade

Personal selling lets the salesperson adapt the firms marketing mix to a specific customer. This is an aspect of which marketing mix variable? Pg. 37

Promotion

Promotion is not concerned with?: -Creating billboard adds -designing new products -publicity -televison commercials -personal selling Pg. 37

Promotion is not concerned with designing new products.

________ segmenting dimensions help decide whether a person might be a potential customer --- but not which specific products or brands that person might buy

Qualifying

A marketing manager may ethically and actively seek information about current or potential competitors by...... Pg. 64

Searching a firms public website

In a generic market -sellers offer various, often diverse, ways of satisfying broadly similar needs -consumers are offered various close substitute ways of satisfying needs -everything is the same in a product market -consumers have very diverse needs -sellers produce unbranded products

Sellers offer various, often diverse, ways of satisfying broadly similar needs

When consumers not know where to buy a product or what it costs and the product's producer does not know where it's target market is located, this in an example of:

Separation of information

A S.W.O.T. analysis -seeks to improve strategy planning by "Scanning for Warnings, Omens, and Tips about competitors plans -is not necessary if competitors have already entered the market -defends against potential competitive threats by planning specific "safeguards, weapons, or tactics" -Should help a manager develop a strategy that leads to a competitive advantage -None of these apply to S.W.O.T. analysis Pg. 47

Should help a manager develop a strategy that leads to a competitive advantage

Target Marketing _________ Pg. 34

Specifies some particular group of customers

____________ is the managerial process of developing and maintaining a match between an organization's resources and it's market opportunities -Strategic (management) planning -Target marketing -Resource allocation -Marketing control Pg. 33

Strategic (management) planning

All of the following are example of quantitive components of screening criteria that are used to narrow down to marketing strategies EXCEPT -Market Share -Number of units sold -Strengths of the company -Annual projected sales dollars -projected profit

Strengths of the company

A __________ is a marketing mix that customers see as better than a competitors mix and cannot be quickly or easily copied -resource combination -sustainable competisse advantage -objective-centred approach -competitor analysis plan -competitor matrix pg. 63

Sustainable competitive advantage

Which of the following laws is primarily concerned with product warranties

The Magnuson-Moss Act

From a micro view, which of the following is the best example of marketing -North Korea unveils a new five-year production plan -China and the U.S. agree on a new trade agreement -The american red cross seeks blood donors -The internet makes it possible for firms to reach customers in other countries -none of these is a good example

The american red cross seeks blood donors

Which of the following statements about nationalism is NOT TRUE -Nationalism can be limiting in international markets -A "Buy American" policy reflects nationalistic attitudes in the United States -Nationalistic feeling always reduce sales -Nationalism emphasizes one country's interests before everything else

The statement about nationalism that is NOT TRUE is "Nationalistic feeling always reduce sales" -It doesn't ALWAYS reduce sales

All of the following are part of the direct market environment except: -Competitors -Customers -The company itself -The technological environment

The technological environment is not part of the direct market environment.

Which of the following statements regarding marketing strategies is false? -It is useful to think of the marketing strategy planning process as a narrow-down process -These strategies must meet the needs of the target customers, and a firm is likely to get a competitive advantage if it just meets needs in the same way as some other firm. -Developing successful marketing strategies doesn't need to be a hit or miss proposition -These strategies require decisions about the specific customers the firm will target customers the firm will target and the marketing mix the firm will develop to appeal to that market. -Most companies implement more than one marketing strategy and related marketing plan at the same time. Pg. 45

These strategies must meet the needs of the target customers, and a firm is likely to get a competitive advantage if it just meets needs in the same way as some other firm.

In the united states, the Consumer Product Safety Commission sets and enforces product safety standards Pg. 72

True

The simple trade era was a time when families traded or sold their "surplus" output to local distributors who resold these goods to other consumers or distant distributors.

True

True or False: "Homogenous within" means that the customers in a market segment should be as similar as possible with respect to their likely responses to marketing mix variables and their segmenting dimensions

True

True or False: A "substantial" market segment is one which is big enough to be profitable

True

True or False: When a sales person considers not only the sale they are making today, but all potential future sales to a customer, the salesperson recognizes a customers lifetime value. Pg. 43

True

True or False: A S.W.O.T. analysis is one way to zero in on a marketing strategy that is well suited to the firm Pg. 47

True - A S.W.O.T. analysis identifies and lists the firm's strengths, weaknesses, opportunities, and threats.

True or False: Advertising is any paid form of non personal presentation of ideas, goods, or services.

True - Advertising may appear in newspapers, on television, or over the internet, among other places. Pg. 38

True or False: A firm with a "competitive advantage" has a marketing mix that the target market sees as better than a competitors mix. Pg. 45

True -A competitive advantage page result from efforts in different areas of the firm - cost cutting in production, innovative R&D, more effective purchasing of needed components, or financing for a new distribution facility. Similarly, a strong sales force, a well-known brand name, or good dealers may give it a competitive advantage in pursuing an opportunity.

True or False: Customer lifetime value involves a financial analysis that considers all of a customer's purchases over their lifetime.

True -Customer lifetime value is the total stream of purchases that a customer could contribute to the company over the length of the relationship. Pg. 43

True or False: The mass marketing approach is more production oriented that marketing oriented.

True -Mass Marketing is the typical production oriented approach pg. 34

True or False: Target marketing aims a marketing mix at some specific target customers.

True -Target marketing aims a marketing mix at some specific target customers Pg. 34

True or False: Market penetration means trying to increase sales of a firm's present products in it's present markets-- probably through a more aggressive marketing mix. Pg. 49

True -The firm may try to strengthen its relationship with customers to increase their rate of use or repeat purchases, or try to attract competitors customer or current nonusers.

True or False: Product, Place, Promotion, and Price are the four main variables (decision areas) in a firms marketing mix.

True -The four P's are Product Place Promotion and Price. Pg.36

True or False: The Product area of the marketing mix may involve a service and/or a physical good which satisfies some customers needs.

True -The product area is concerned with with developing the right "product" for the target market. Pg. 36

True or False: A channel of distribution is any series of firms or individuals that participate in the flow of products from producer to final user or consumer

True Pg. 37

True or false: A marketing plan is a written statement of a marketing strategy and time related details for carrying out the strategy.

True Pg. 40

True or False: A "marketing program" blends all the firm's marketing plans into one big plan.

True Pg. 42

True

True or False: Clustering techniques try to find similar patterns within sets of data

Which of the following is NOT true of a product-market? -Competing suppliers offer close substitutes to satisfy needs -Very different types of products may compete for consumer dollars -Customers in a product-market have very similar needs Naming product-markets includes consideration of where the customers are -none of these alternatives are true

Very different types of products may compete for consumer dollars

Tomato

Which of the following is LEAST LIKELY to compete in the same generic market with the others? -Long-stem roses -a tomato -champagne -greeting card -telegram

Potato chips

Which of the following is LEAST likely to compete in the same generic market with the others? - garlic powder -pepper -Tabasco sauce -salt -potato chips

Which of the following is MOST LIKELY to be a determining dimension with respect to purchase of a particular brand of coffee: -Taste -Income -Age -Sex -None of these is likely to be a DETERMINING DIMENSION in this situation

Which of the following is MOST LIKELY to be a determining dimension with respect to purchase of a particular brand of coffee: Taste

"Positioning"

helps strategy planners see how customers view competitors offerings

Saying that a "good" product market segment should be substantial means -that the company does not have to worry about substantial competition for a long time -that people should have substantially different reactions to marketing mix variables -It should be large enough to be profitable -that people in different market segments should be as different as possible -None of these choices are true

it should be large enough to be profitable

Marketing segmentation: -Means the same thing as a marketing strategy-assumes that most submarkets can be satisfied by the same marketing mix -is the same thing as positioning -tries to identify homogeneous submarkets within a product-market -none of these choices regarding market segmentation os true

none of these choices regarding market segmentation is true

A target marketer who uses two different marketing mix strategies to make two separate appeals to office tablet computer users and hoe tablet computer users is applying -the broad market approach -the single target market approach -the multiple target approach -the combined target market approach -the generic market approach

the multiple target market approach

When major airlines target business travelers because they travel often and typically pay at least three times the price for a ticket as leisure travelers, these airline are segmenting the market primarily on: -Income -Education -Rate of use -Ethnicity -Age

these airline are segmenting the market primarily on: income