Marketing Test 1

Home Depot & Lowe's both cater to the home improvement segment, meaning both stores are in secondary competition indirect competition primary competition direct competition

Direct Competition

When a big name retailer decides to open a manufacturing plant overseas, this is an example of licensing. direct ownership. contract manufacturing. a joint venture. exporting.

Direct Ownership

An increase in the general level of prices of products over a period of time. Inflation Deflation Price gouging Price gains

Inflation

Which has the lowest risk of those listed? licensing joint venture franchising direct ownership

Licensing

Process of coordinating the flow of goods, information, services among members of supply chain. Marketing placement Logistics Supply lines Just in time

Logistics

?

Low market share %, and High market growth

dog

Low market share %, low Growth

Global Marketing Risk

Low risk/Low return Exporting Licensing Franchising Joint Venture Direct Ownership High Risk/High Return

The Four Basic Categories of Marketing Growth Strategies

Market Penetration, Product Development, Market Development, And Diversification

Tools/Techniques for marketing Strategy

Market segmentation and segments Target markets Positioning

The practice of measuring, managing, and analyzing marketing performance is referred to as diversification marketing analytics positioning market segmentation

Marketing Analytics

Part of marketing plan that lists the actions a firm must take to accomplish marketing objectives. Marketing strategy Product development Market development Diversification

Marketing Strategy

A marketer that uses social media sites to engage potential customers is most likely targeting? Millennials Generation X Generation Z Generation Q

Millenials

In marketing, states of felt deprivation are referred to as opportunities wants needs desires

Needs

Which marketing mix element is typically the easiest to change? Place Price Promotion Product

Price

Product Orientation Time Period

Prior to 1920's

Of the external factors, which represents the most challenges and opportunities for marketers? political sociocultural demographic technological

Technological

Demographic Factors

•Age •Baby boomers Generation X Generation Y/Millennials Generation Z •Gender •Education/Income •Ethnicity

•Political factors

•Governmental policy affects how marketers position products

Economic factors

•Gross domestic product (GDP) •Recession •Income Distribution •Inflation •Purchasing power •Consumer confidence

marketing analytics

•Measuring, managing, and analyzing market performance •Analytics used when selling products, services, or ideas •Managers have more pressure to be data-driven

External Environment

•Opportunities International market expansion Requests for menu or service expansions Public interest in ethical and sustainable business practices •Threats Weak economy cuts dining-out budgets Increasing production costs Health consciousness of U.S. population

•Sociocultural factors

•Shift from single-income to two-income families

Internal considerations

•Strengths Strong brand recognition Long-term profitability and franchise system Breakfast reputation •Weaknesses Difficulty finding and retaining quality employees Perception of unhealthy food Longer wait times

Legal Factors

•To ensure businesses compete fairly •To ensure businesses don't take advantage of consumers

Marketing strategy

•a set of actions taken to accomplish organizational objectives. •Quality marketing objectives •Specific •Measurable •Realistic

Strategic Plan

◦An organization's plans for key functional areas ◦Shaped by an organization's mission Marketing Plan, Human Resource plan, Risk Management Plan, and Financial Plan.

Three Key Components of Marketing:

◦Creating value: Perceived benefits known as customer value (price) ◦Communicating value (promotion) ◦Delivering value (place) Supply chain Logistics

Profitability analysis

◦Customer acquisition- how much firm spent to get new customer ◦Customer profitability- Profit firm makes from customer over period of time

Strategic Planning

◦Defining a firm's objectives ◦Developing a method for achieving those objectives

Mission Statement

◦Describes a firm's markets and goods or services (products) ◦Provides a shared sense of purpose, direction and opportunity ◦It should: ◦Be focused on a limited number of goals ◦Be customer-oriented and focused on satisfying basic customer needs and wants ◦Capture a shared purpose and provide motivation for the employees of the firm

Marketing Plan

◦Executive summary ◦Situation analysis ◦Market summary ◦SWOT analysis ◦Competition analysis ◦Marketing strategy

Which of the following products would most likely be considered a dog? e-reader iPod laptop compact disk

Compact Disk

In a overall best hybrid survey, the Ford Fusion Hybrid was one of the best cars, representing product control competitive advantage a core benefit a marketing tactic

Competitive Advantage

A good mission statement should be oriented around the customer company financial plan marketing plan

Customer

The focus of the marketing concept era was on production technology customers competition

Customer

Which of the following would NOT be considered a member of a supply chain? customers retailers manufacturers wholesalers

Customer

Benefits, monetary or non-monetary, you receive from a product compared with acquisition cost. Customer satisfaction Competitor satisfaction Competitor value Customer value

Customer Value

Daphne used to work in the city where she would take public transportation to work. However, she just took a new job in the suburbs and now not only has to find a place to live, but also has to buy a car to get to and from her job. For Daphne, these things represent 1.a need. 2.a dilemma. 3.a want. 4.a desire. 5.a craving.

1. A need

When the makers of V8 vegetable juice noticed that sales of its original product were stabilizing, they decided to offer a new product, one that offered a full serving of vegetables and a full serving of fruit. They called the product V8 V-Fusion and they marketed it to their original V8 customers in hopes of increasing sales. This is an example of what kind of marketing strategy? 1.product development 2.diversification 3.market penetration 4.positioning 5.market development

1. product development

Compare the following statements and select the one that reflects your text's assertion as to why educated consumers are prime targets for marketing strategies. 1.Educated consumers are more willing to spend money than uneducated consumers. 2.Educated consumers are more likely to earn significantly more money throughout the course of their lifetime. 3.Educated consumers typically have less free time and therefore spend money on products that save them time and make their lives easier. 4.Educated consumers typically have more access to various forms of media and therefore are easier to target as a consumer group. 5.Educated consumers know that in order to keep the economy moving, people must spend money.

2. Educated consumers are more likely to earn significantly more money throughout the course of their lifetime.

Karlee needed to pick up some toothpaste from the store. She was surprised to find that the store was out of her usual brand, Crest. Rather than go to another store, she decided to buy a tube of Colgate instead. In this example, Colgate represents 1.an unsought good. 2.a substitute product. 3.lateral competition. 4.indirect competition. 5.a disposable product.

2. a substitute product.

Compare each of the following to determine which one accurately describes a joint venture. 1.a contractual arrangement in which a fee is paid to have the right to open a business using the parent company's business name and to receive marketing and operational support 2.an arrangement where a domestic firm partners with a foreign company to create a new entity, thus allowing the domestic firm to enter the foreign company's market 3.a legal process in which one firm pays to use or distribute another firm's resources, including products, trademarks, patents, intellectual property, or other proprietary knowledge 4.a contractual arrangement where a foreign firm agrees to manufacture products for a domestic firm 5.an arrangement in which a domestic firm actively manages a foreign company or overseas facilities

2. an arrangement where a domestic firm partners with a foreign company to create a new entity, thus allowing the domestic firm to enter the foreign company's market

Consider the following findings from a recent SWOT analysis performed by Sasha's flower shop. Which of the following represents a threat? 1.Sasha has a hard time finding good employees after the summer staff goes back to school. 2.Sasha has a good business relationship with local catering companies. 3.The summer drought has produced fewer flowers. 4.Sasha has to spend a lot of time training her employees on how to care for the flowers and plants. 5.A new funeral home just opened up in town.

3 .The summer drought has produced fewer flowers.

On a personal level, as you begin looking for a job after you graduate, it will be critical for you to know how to 1.forecast value. 2.explain value. 3.communicate value. 4.market value. 5.deliver value.

3. communicate value.

Compare the following statements regarding relationship marketing to determine which is most accurate? 1.Relationship marketing is best described as the use of personal selling to persuade consumers to buy products. 2.Relationship marketing has waned as a viable strategy with the advent of the Internet. 3.Relationship marketing is most successful when firms focus on attracting, maintaining, and enhancing customer relationships. 4.Very few companies in today's marketplace are engaged in relationship marketing. 5.Relationship marketing focuses on satisfying the needs of all the company stakeholders.

3.Relationship marketing is most successful when firms focus on attracting, maintaining, and enhancing customer relationships.

Read the following statements regarding strategic planning to determine which is NOT accurate. 1.Strategic planning can be used on a personal level to help accomplish goals. 2.The strategic plan is shaped by the organization's mission. 3.Strategic planning is a one-time process completed when a firm outlines its objectives. 4.Strategic planning can greatly increase the likelihood of success. 5.Strategic planning helps ensure marketers will select the right marketing mix strategies.

3.Strategic planning is a one-time process completed when a firm outlines its objectives.

Marketing is defined as the process of ______________________________________ to customers and managing those relationships in ways that benefit the organization and its employees, customers, investors, and society as a whole. 1.building, driving, and delivering products 2.creating, driving, and managing value 3.creating, communicating, and delivering value 4.building, communicating, and managing ideas 5.developing, communicating, and delivering ideas

3.creating, communicating, and delivering value

Daniel is looking to buy a hybrid vehicle because he is noticing that the price of gasoline continues to rise compared to years past. The rise in the price of gasoline is most likely a result of 1.deflation. 2.a recession. 3.a rise in GDP. 4.inflation. 5.an increase in purchasing power.

4. Inflation

An advertisement shows a group of boys playing soccer on a hot day. When they take a break, the boys 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 _____, and Gatorade represents a _____. 1.craving; preference 2.want; need 3.craving; need 4.need; want 5.want; preference

4. Need; Want

Compare the following statements to determine which one accurately depicts how income is distributed across the U.S. population. 1.Over the past several decades, there has been a robust shift in the lowest wage earners moving upward to the middle class. 2.The top wage earners of the U.S. population are earning only a small percentage of the country's adjusted gross income. 3.Income for the middle class in the United States has consistently grown faster than any other wage-earning bracket. 4.Over the past several decades, income for the highest wage earners grew at a much quicker pace than for households in the bottom wage-earning bracket. 5.Over the past several decades, there has been little shift in any of the wage-earning brackets of the U.S. population.

4.Over the past several decades, income for the highest wage earners grew at a much quicker pace than for households in the bottom wage-earning bracket.

Gavin wants to perform a situation analysis of his business to help him make strategic decisions for the future. The situation analysis will tell Gavin all of the following except: 1.current competitive forces. 2.market conditions. 3.the firm's strengths. 4.financial projections. 5.the things the firm does poorly.

4.financial projections.

Which marketing strategy was especially important during the Great Depression when consumers did not have much money and firms competed intensely for their dollars? 1.relationship marketing 2.production orientation 3.customer orientation 4.marketing concept 5.sales orientation

5. Sales Orientation

Technology Factors

Advancement in technology

Why is franchising an attractive method of entering a foreign market? 1.because there are very few risks involved in franchising 2.because the franchisor has no liability if the business fails 3.because the franchisee has no liability if the business fails 4.because the franchisor does not have to put up any capital to get the business off the ground 5.because the franchisee assumes the majority of the capital costs and human resource issues

5. because the franchisee assumes the majority of the capital costs and human resource issues

According to the BCG Matrix, what defines a cash cow? 1.products that have a small market share in an industry with high growth rates 2.products that have a small market share in an industry with steady growth rates 3.products that have a small market share in an industry with low growth rates 4.products that have a large market share in an industry with high growth rates 5.products that have a large market share in an industry with low growth rates

5. products that have a large market share in an industry with low growth rates

According to your text, what is the secret of great marketing when it comes to creating value? 1.convincing customers that they need a product even if they do not 2.saturating the market with all forms of advertising promotions 3.consistently creating new products for the marketplace 4.figuring out how to charge the highest price for a product that customers are willing to pay 5.understanding the marketplace demands before competitors do

5. understanding the marketplace demands before competitors do

Which marketing strategy would Krispy Kreme doughnuts be using if it decided to begin selling its doughnuts in Mexico for the first time? 1.market penetration 2.diversification 3.positioning 4.product development 5.market development

5.market development

The generation born from 1946 to 1964 ______ is retiring at a rate of 10,000 per day. Millennials Generation X Generation Y Baby Boomers

Baby Boomers

Which of the following is not one of the ethical norms spelled out in the AMA's Code of Ethics? citizenship honesty fairness balance

Balance

Which of the following products does not satisfy a consumer need? groceries a winter coat a house cable television

Cable TV

Having an efficient supply chain is directly related to which element of value? marketing value creating value communicating value delivering value

Delivering Value

Age, gender, ethnicity, and education level are all _______ characteristics. economic technological demographic diabolic

Demographic

A sudden drop in consumer income is an example of which environmental external force? legal socioeconomic technological economic

Economic

The six external factors are sociocultural, demographic, technologic, political, legal and ____ customers competition economic generational

Economic

Monitoring issues outside a firm's control to detect and respond to threats and opportunities. competitive analysis data mining brand positioning environmental scanning

Environmental Scanning

When a buyer and seller trade things of value with each party being better off. Purchase Acquisition Exchange Agreement

Exchange

The key component of a marketing plan that summaries the plan's main points is called the ____. Introduction Overview Strategic plan Executive summary

Executive Summary

Selling domestically produced products to foreign markets is called countertrade franchising licensing exporting

Exporting

The consumer protection agency for the United States is the Bureau of Consumer Financial Protection. Consumer Protection Commission. Federal Communications Commission. Federal Trade Commission.

Federal Trade Commision

Which of the following is the accurate cause of a recession? GDP declines for two or more consecutive quarters. Inflation rises for two or more consecutive quarters. Inflation and unemployment both rise consecutively. The CPI falls below the average yearly standard.

GDP declines for two or more consecutive quarters.

Compare the following product offerings. Which is the best example of direct competition? Coca-cola Classic and Arizona Iced Tea Burger King and Subway Google and Yahoo Microsoft and Best Buy

Google and Yahoo

Sales Orientation Time Period

Great Depression-End of WWII

Cashcow

High Market Share %, Low market growth

Stars

High market share %, and High market Growth

The marketing plan is of no value unless the company is successful at ________ the plan. Executing Honoring Scheduling Implementing

Implementing

When did firms believe that quality products would sell themselves? relationship marketing sales orientation production orientation customer orientation

Product Orientation

In the book, any discussion of the marketing mix typically begins with which of the four Ps? place product promotion price

Product, Price, Place, Promotion

Which forecast estimates how many products the company expects to sell during a set time period? product forecast break-even analysis sales forecast expense forecast

Sales Forecast

Which of the following is the fastest growing demographic group in the United States? young adults teenagers seniors college-age males

Seniors

Defining a firm's objectives and developing a method for achieving those objectives. Marketing planning Strategic planning Business planning Organizational planning

Strategic Planning

Netflix would be a _______ for cable television. Inferior product Indirect competitor Substitute Replacement

Substitute

Situation Analysis=Direct/Indirect Competitors

When completing a situation analysis, it's just as important for a firm like McDonald's to analyze indirect competitors, such as Panera Bread, as it is to analyze direct competitors, such as Burger King.

The owners of Have It Your Way Hot Dogs have decided to place an advertisement in the local minor league baseball team's program booklet. Which element of the marketing mix does this represent? a.Price b.Promotion c.Purpose d.Product e.Place

b. Promotion

Compare the following statements to determine which one is accurate regarding marketing analytics. a.Marketing analytics has not proven to be helpful in the allocation of resources. b.The pressure to be more data driven has played a large role in the growing use of marketing analytics. c.Marketing analytics is useful for analyzing the performance of products, but not for analyzing the performance of services or ideas. d.Budgets related to marketing analytics are expected to decline in the coming years. e.The advent of the Internet has reduced the need for marketers to engage in marketing analytics.

b. The pressure to be more data driven has played a large role in the growing use of marketing analytics.

What two important metrics do marketers use to evaluate profitability? gross margin and marketing expenditures new lines of business and customer profitability customer acquisition and customer profitability customer acquisition and continuing sales of established

customer acquisition and customer profitability

market penetration

existing product, existing market

market development

existing product, new market

Marketing Concept Era

expansion beginning in 1950, customer orientation, Relationship Marketing

What is the premise behind the marketing concept? focus on satisfying customer needs an interest in streamlining production processes focus on keeping company stakeholders satisfied a company-wide focus on increasing profits

focus on satisfying customer needs

Which marketing strategy is being employed by a firm seeking to expand in foreign markets? market penetration positioning diversification market development

market development

Once the situation analysis is complete, marketers focus on defining their mission statement marketing strategy competition SWOT analysis

marketing strategy

Marketing analytics

measuring, managing, and analyzing marketing performance. ◦Return on Marketing Investment (ROMI) ◦Revenue analysis ◦Market share analysis

Product Development

new product, existing market

Diversification

new product, new market

Indirect competition occurs when a company introduces a new product to its product line. products provide alternate solutions to the same market. products are marketed to a new consumer segment. consumers purchase products that they did not intend to buy.

products provide alternate solutions to the same market.

A good mission statement should contain as many goals as possible provide motivation for employees in the firm ask the question What is our product? be company oriented

provide motivation for employees in the firm

Measure of a firm's effectiveness in using resources allocated to marketing effort is called gross expenditures market share analysis gross margin return on marketing investment

return on marketing investment

SWOT Analysis

strengths, weaknesses, opportunities, threats

The external considerations in a SWOT analysis are: threats and opportunities threats and weaknesses strengths and weaknesses strengths and opportunities

threats and opportunities