MKT 3301 Chapter 2

A company has ____ when the target market prefers the company's marketing mix over a competitor's mix strategic development customer equity a market opportunity a competitive advantage

a competitive advantage

Which of the following could be sources of competitive advantage? Check all that apply a well-trained and experience sales force lower prices than competitors a target market with a higher income a well-known and highly respected brand name agreements with the best retailers in the product category

a well-trained and experience sales force lower prices than competitors a well-known and highly respected brand name agreements with the best retailers in the product category

A company's customer ________ is what the company can expect to earn from its current and potential customers during a particular period

equity

Which of the following is an example of an operational decision rather than a strategy policy? "We will develop new products to appeal to a younger target market." "We will expand distribution to the east coast." "We will increase our advertising in big cities." "We will raise prices to maintain a prestigious reputation." "We will keep stores open for longer hours."

"We will keep stores open for longer hours."

After college, John purchased a Toyota Tacoma for $23,000. He got married recently and is shopping for a more family-oriented vehicle. His is considering purchasing a $26,000 Toyota Camry. Over the course of his life, John will have many other opportunities to purchased Toyota vehicles, including a $34,000 Toyota 4Runner for weekend camping activities. John's customer lifetime value is at least $830,000 $92,000 $166,000 $83,000

$83,000

Trina's Baker had 600 customers last year and this year, 400 of those customers still patronize the bakery. What is the retention rate at Trina's Bakery?

66% (400/600)

Which of the following illustrate breakthrough opportunities? Check all that apply. A drug company develops a patented drug that cures some types of cancer Someone opens a new coffee shop that also serves tea and cacao. A pizza restaurant offers a "peanut pizza" after realizing customers like this topping A national chain of bookstores begins selling watches A company signs all record labels to exclusive deals allowing music streaming

A drug company develops a patented drug that cures some types of cancer A company signs all record labels to exclusive deals allowing music streaming

Which of the following are true of market segmentation? Check all that apply. Market segmentation usually occurs after the firm develops a marketing mix. Segmentation organizes competitors into groups based on their similarities A major reason for market segmentation is to help a manager truly understand customers Managers use segmentation to help them figure out which groups of customers to serve

A major reason for market segmentation is to help a manager truly understand customers Managers use segmentation to help them figure out which groups of customers to serve

Which of the following statements about the marketing strategy planning process are true? Check all that apply. The marketing strategy process should start with a specific marketing strategy A marketing strategy begins with an evaluation of customers, competitors, and company A marketing strategy should begin with the identification of really different strategies The marketing strategy process starts broadly and then narrows down

A marketing strategy begins with an evaluation of customers, competitors, and company The marketing strategy process starts broadly and then narrows down

Which of the following statements about marketing strategy, marketing plan, and marketing program are true? Check all that apply. A marketing program includes multiple marketing strategies but just one marketing plan. A marketing strategy includes a marketing mix for one target market. A marketing plan blends all of a firm's marketing strategies into one big plan A marketing plan includes a marketing strategy and time-related details and control procedures A marketing strategy includes multiple marketing plans

A marketing strategy includes a marketing mix for one target market. A marketing plan includes a marketing strategy and time-related details and control procedures

Which of the following are examples of market penetration strategies that could be used by AW cellular phone company? Check all that apply AW adds new products like iPods and personal computers to appeal to its current customers AW moves from the Unites States to Canada AW offers discounts to customers of its main competitor AW sends promotions to new customers to encourage them to purchase more minutes

AW offers discounts to customers of its main competitor AW sends promotions to new customers to encourage them to purchase more minutes

What are the company's three potential paths for growth based on the customer equity approach?

Acquiring new customers Retaining current customers Enhancing the customer value by increasing purchases

Which of the following statements about mass selling is true? Check all that apply. Advertising is one form of mass selling Mass selling can involve media that includes magazines and the Internet Mass selling includes direct spoken communication between buyers and sellers Publicity is one form of mass selling Personal selling is one form of mass selling

Advertising is one form of mass selling Mass selling can involve media that includes magazines and the Internet Publicity is one form of mass selling

Which of the following statements about customer service are correct?

Customer service is important for getting customers to buy again. Customer service deals with resolving problems after the sale. Customer service is a form of promotion.

Which of the following are examples of Place decisions? Apple offers college students a discount on the iPhone. Best Buy opens a warehouse in California. Dell ships a computer to a customer via air freight. Sprint decides to sell phone service through Walmart stores. Sears opens new stores in South Dakota. McDonald's adds a new drink to its menu.

Dell ships a computer to a customer via air freight. Best Buy opens a warehouse in California. Sprint decides to sell phone service through Walmart stores. Sears opens new stores in South Dakota.

Which of the following statements about differentiation are

Differentiation means having a different marketing mix than those of rival firms Differentiation should result in a competitive advantage Differentiation follows an evaluation of competitors, customers, and the company

Which of the following statements about the Four Ps is true? Each of the four Ps contributes to a whole marketing strategy In practice, two or three of the four Ps are part of most firms' marketing mix When marketing strategy decisions are made, the price decision should come first For consumer products, the product decision is most important

Each of the four Ps contributes to a whole marketing strategy

Following the marketing strategy planning process, place the following activities in order with the first activity at the top. Evaluate customer needs. Choose a target market. Segment the market. Develop a marketing mix.

Evaluate customer needs. Segment the market. Choose a target market. Develop a marketing mix.

Why does the marketing strategy process start broad before narrowing?

It gives firms a chance to identify opportunities they might miss if the process starts too narrow

Which of the following are examples of a competitive advantage for a Mexican restaurant in a medium-sized town? Check all that apply Its menu, prices, and location are equal to two competitors It has lower prices and better advertising than its competitors It has lower prices, a better location, and better customer service than other restaurants in town It has a better location and lower prices than its competitors

It has lower prices and better advertising than its competitors It has lower prices, a better location, and better customer service than other restaurants in town It has a better location and lower prices than its competitors

Which of the following are true with respect to customer equity? Check all that apply. It changes a firm's emphasis to acquiring new customers It helps marketing managers make decisions that will increase future profits It helps companies make decisions that will affect long-term profits It has a short-term focus that typically lasts no longer than a quarter or year

It helps marketing managers make decisions that will increase future profits It helps companies make decisions that will affect long-term profits

Which two of the following describe a marketing program?

It includes more than one marketing strategy It implements several marketing strategies at once

Which of the following are true about personal selling? Check all that apply It takes place after a sale has been made It involves spoken communication It can occur over the telephone It can occur over e-mail

It involves spoken communication It can occur over the telephone

Which of the following are true about the marketing management process?

Marketing managers set guidelines for implementation The marketing management job is continuous. Marketing managers use feedback to guide changes to plans. Marketing managers specify expected results

What managerial process involves cultivating and keeping a relationship that matches an organization's resources with its market opportunities? Check all that apply Marketing managers specify expected results The marketing management job is continuous Marketing managers use feedback to guide changes to plans Marketing managers set guidelines for implementation The process ignores new opportunities

Marketing managers specify expected results The marketing management job is continuous Marketing managers use feedback to guide changes to plans Marketing managers set guidelines for implementation

__________ __________ is communicating with large numbers of customers at the same time

Mass selling

Which of the following statements about differentiation are true? Check all that apply Having more convenient locations than the competition is not a source of differentiation Having a better advertising campaign than the competition would not be a source of differentiation Offering a lower price than the competition--while being similar on the other three Ps--would be a source of differentiation Differentiation can only occur if one or more of the four Ps is done better than the competition True differentiation occurs only if customers see the firm's offering as being better with regard to all four Ps

Offering a lower price than the competition--while being similar on the other three Ps--would be a source of differentiation Differentiation can only occur if one or more of the four Ps is done better than the competition True differentiation occurs when customer see the firm's offering as being better with regard to all four Ps.

Which of the Four P's is focused on all the decisions needed to get the right product to the target market via retail stores or online stores?

Place

Order the steps of the marketing management process. Guiding the implementation of marketing plans. Controlling marketing plans. Planning marketing activities.

Planning marketing activities. Guiding the implementation of marketing plans. Controlling marketing plans.

Which of the following statements about a product are true?

Product can involve a physical good Product can involve a blend of physical good and service

The marketing manager for Dunkin' Donuts paid for television and magazine advertising to announce improvements in its coffee. The advertising is an example of which variable in the marketing mix?

Promotion

Which of the following statements about publicity are true

Publicity includes receiving products reviews in newspaper articles. Publicity includes placing content on the web for customers to find when searching the Internet. Publicity includes creating a video that a company hopes goes viral.

Which of the following are the result of advances in e-commerce, transportation, and communications? Check all that apply. International companies have been replaced by local firms. Small firms can operate internationally at little expense. Firms can more easily reach international customers. Most companies are now purely online.

Small firms can operate internationally at little expense. Firms can more easily reach international customers.

Which of the following are potential concerns about international opportunities? Check all that apply Competitors in other countries are usually the same as at home Some countries have instability because of political or social issues Cultural differences can create problems Laws can be different in other countries

Some countries have instability because of political or social issues Cultural differences can create problems Laws can be different in other countries

_____ management planning involves the creation of a plan to guide the actions of an entire company. Production Strategic Logistical Domestic

Strategic

Which of the following statements about marketing strategy are true? Check all that apply. Strategies include identifying both a target market and a marketing mix. Target markets should be ignored until after determining a marketing mix. Marketing mixes are designed before finding target markets to which the mixes appeal The needs of the target market should drive decisions on the marketing mix.

Strategies include identifying both a target market and a marketing mix. The needs of the target market should drive decisions on the marketing mix.

Which of the following are examples of a market penetration opportunity?

Taco bell adds a customer loyalty card to give deals to frequent customers. Diet Coke offers its stores special pricing for larger size packages.

________ ________ says that a marketing mix is tailored to fit some specific customers

Target marketing

Which of the following are true with respect to target marketing

Target marketing can mean big profits and big markets Target marketing fulfills the selected group's needs better than mass marketing

Which of the following are always true about opportunities? Check all that apply. New opportunities are more important than current opportunities The best opportunities take advantage of a company's strengths All profitable opportunities should be pursued Managers should look for new opportunities

The best opportunities take advantage of a company's strengths Managers should look for new opportunities

Which two of the following are always true about opportunities? Check all that apply.

The best opportunities take advantage of a company's strengths. Managers should look for new opportunities.

A marketing plan should include which of the following?

The company resources needed The predict sales results The marketing mix that will be used

Which of the following are true about the specific qualitative and quantitative screening criteria marketing managers develop? Check all that apply These criteria are most useful after the firm develops a marketing mix These criteria are useful in figuring out the markets in which a firm wants to compete The firm's objectives and available resources help determine the appropriate criteria to use Quantitative criteria are generally avoided by most firms

These criteria are useful in figuring out the markets in which a firm wants to compete The firm's objectives and available resources help determine the appropriate criteria to use

The people who make up a company's target market have which two qualities? Check all that apply. They lack the company's product. They are desirable to the company. The company wants to appeal to them. They are similar. They are located in a small geographic region

They are desirable to the company. The company wants to appeal to them. They are similar.

True or False: When customers make online purchases, a company has access to data that can be used for marketing analytics.

True

True or false: The marketing management process is continuous

True

Which of the following are examples of the Promotion element of the marketing mix? Vail Ski Resort runs advertising in California newspapers. Ralston Purina adds wholesalers to help it sell more in Guatemala. Starbucks adds a new coffee blend to its stores. Nike creates a short video about its soccer cleats that it posts on Youtube. Happy Home Owner hires and trains two new real estate agents.

Vail Ski Resort runs advertising in California newspapers. Nike creates a short video about its soccer cleats that it posts on Youtube.

The expense required for a company to obtain a new customer is called the ____.

acquisition cost

Which of the following are examples of operational decisions that the marketing manager in charge of Diet Coke could make? Check all that apply. expand the number of different package sizes add a new 14-oz can offer early summer price deals to convenience stores produce three videos for YouTube featuring Lady Gaga drinking Diet Coke promote the brand to college students

add a new 14-oz can offer early summer price deals to convenience stores produce three videos for YouTube featuring Lady Gaga drinking Diet Coke

Which of the following are true for firms considering international opportunities? Check all that apply. it is getting more difficult for small firms to compete internationally risks are usually lower in international markets selling internationally raises costs because of economies of scale advances in transportation make it cheaper to ship around the world trade barriers are being lowered

advances in transportation make it cheaper to ship around the world trade barriers are being lowered

Nonpersonal communication of a product that is paid for by an identified sponsor is known as __________

advertising

Target marketing classifies a marketing mix as appealing to a selected group of people a production-oriented approach to marketing targeting "everyone" with a similar marketing mix grouping all customers because they are basically the same.

appealing to a selected group of people

Match the marketing decision with the correct strategy decision area. branding transporting Internet advertising discounts placeproduct price product promotion

branding ~ product transporting ~ placeproduct Internet advertising ~ promotion discounts ~ price

Companies rely on __________ opportunities to develop marketing strategies that are difficult to replicate and have the potential to make the company a lot of money for a long time.

breakthrough

Which of the following helps companies create marketing strategies that are difficult to replicate and have long-term profit potential? breakthrough opportunities targeted advantages market development opportunities world-class options

breakthrough opportunities

First Bank of Canada has people who answer phone calls and help customers resolve any issues they have with the bank. This is an example of: a. personal marketing b. mass selling c. customer service d. direct advertising e. publicity

c. customer service

Target marketing can mean lots of customers and big profits does not apply to large markets meets the needs of heterogeneous groups of customers sacrifices sales volume for profits

can mean lots of customers and big profits

A _________ of ___________ is a chain of companies or individuals who help a product move through the various stages of the producer to consumer process

channel & distribution

When a company is working to achieve market penetration, it is attempting to increase sales its___ products in its ___ markets

current & present

Companies predict how many purchases a single customer might make from the company during the customer's life, a measurement called the _________ _________ __________.

customer lifetime value

The number of purchases a person could make from a firm during the course of their relationship is called the: stream of purchase value customer equity stream customer revenue value stream of profits customer lifetime value

customer lifetime value

Which of the following involves a seller using personal communication to help a customer fix an issue with a completed purchase?customer service publicity customer service personal selling sales promotion

customer service

___________ __________ is a personal communication between a seller and a customer who wants the seller to resolve a problem with a purchase

customer service

Which of the following is focused on informing people about the features of the product? a. price b. place c. people d. promotion

d. promotion

The term "mass marketer" is used to is a term that describes small businesses with big ambitions describes large firms that aim at specific groups means the same thing as mass marketing refers to firms that use the typical production-oriented approach

describes large firms that aim at specific groups

A company is attempting to achieve market ___________ when it works to increase sales by selling its current present products in new markets.

development

Specifying a target market and corresponding marketing mix are the two elements that comprise the: discovery of customer needs development of a marketing strategy discovery of an organizational match development of whole company marketing

development of a marketing strategy

The marketing manager reminded the team that they had to come up with something that would set them apart from their competitor. In other words, their marketing mix needed differentiation diversification market penetration market maturation

differentiation

When a company's marketing mix is somehow unique from the marketing mix of a rival, it is said to have _____________.

differentiation

When a marketing mix has an element that sets it apart from those of the competition, it is said to have: differentiation opportunity competition targeting

differentiation

What are the specific steps in the marketing management process? Click all that apply. directing implementation of marketing activities controlling marketing plans planning marketing activities conducting marketing research

directing implementation of marketing activities controlling marketing plans planning marketing activities

A producer of washing machines, dryers, and dishwashers decides to start offering accounting services to small businesses. This is an example of customer service product development market development diversification

diversification

Working in a new line of business, such as a new product of market, is known as _________

diversification

Which of the following are marketing planning activities? Check all that apply measuring results evaluating opportunities creating marketing strategies developing a marketing program setting objectives

evaluating opportunities creating marketing strategies developing a marketing program setting objectives

Garrett knows what the company plans to do for its marketing efforts and now needs to find a way to put those plans into operation. What phase of the marketing plan is Garrett working on?

implementation

Marketing plans are put into action during operational planning implementation action-orientation control

implementation

It is important for companies to remember that selecting a target market and developing a market mix are _____ activities and must be done _____.

interrelated & together

The main reason why firms identify target markets is because it makes the marketing manager's job easier focuses managers on small, manageable market segments makes it possible to better satisfy specific customers' needs is far less expensive than mass marketing

makes it possible to better satisfy specific customers' needs

A local restaurant specializing in breakfast and lunch decides to start offering its sandwiches in local school cafeterias. This is an example of: market development diversification market penetration product development

market development

J&J Ski rentals, small store that rents skis in Colorado, decides to open new ski rental shops in California. Tis is an example of

market development

A company that is working to increase customer purchases of its current products in its current market is trying to achieve ________ _________.

market penetration

Since most firms find attractive opportunities for their products fairly close to existing markets, what opportunity do marketing strategies typically pursue first?

market penetration

Which of the following is usually easiest for a firm to pursue? international diversification product development market penetration

market penetration

What are the four broad areas of opportunity a company can pursue in the marketing strategy planning process? Check all that apply.

market penetration diversification market development product development

Match the type of opportunity with the type of product and market. market penetration market development product development diversification new products and present markets new products and new markets present products and present markets present products and new markets

market penetration ~ present products and present markets market development ~ present products and new markets product development ~ new products and present markets diversification ~ new products and new markets

The plans implemented by a whole company should be product-oriented market-oriented examples of secondary marketing the same as a marketing plan

market-oriented

A ________________ ______________ consists of variables a company controls and uses to attract and satisfy a particular target group.

marketing mix

A ___________ ____________ is a written document that identifies a marketing strategy and spells out the various elements that are necessary for fulfilling that strategy

marketing plan

The marketing mix, the target mix, the company resources necessary, and the expected results are all detailed in a: publicity plan target market document company budget marketing plan

marketing plan

An organization's ________ combines multiple marketing plans into a single, large plan marketing program product placement plan promotional strategy marketing mix

marketing program

A company that engages in ________ marketing attempts to use the same marketing mix to generally appeal to everyone. potential target mass micro

mass

A short-run decision that will enable a company to execute elements of a marketing plan is a(n) _________ decision outcome tactical working operational control

operational

In order to implement the various parts of a marketing plan, a company will make ___ decisions, or short-run decisions, while sticking to the original basic strategy. production plan objective operational

operational

A successful marketing strategy pairs opportunities with a company's resources and goals company goals with employee strengths financial goals with company strengths the competition ideas and customer needs

opportunities with a company's resources and goals

Nike learns that many people in China are finding more time for leisure and are turning to sports to fill that leisure. For Nike, this is a(n) weakness threat opportunity strength

opportunity

What are three components of the promotion element?

personal Selling mass Selling sales Promotion

When Marcus meets Lily and talks to her about the advantages of the service offered by his company, he is engaging in _____. personal selling distribution sales promotion publicity

personal selling

The three basic jobs of marketing managers are: planning, implementation, and control promotion, price-setting, and product development marketing, producing, and servicing hiring, firing, and compensation

planning, implementation, and control

When targeted customers _____________, the company is said to have a competitive advantage. prefer a company's marketing mix over that of a competitor seek similar products from a competitor agree to attend a sale or other special in-store event offer positive reviews for a company's products

prefer a company's marketing mix over that of a competitor

Tom's drugstore buys toothpaste for $1.00 and decides to mark it up to $1.50. This strategy decision falls into the _____ area of the marketing mix.

price

Denny's adds two new meals to its menus. This is an example of which marketing mix area? product price promotion place

product

The ___________ area of the four Ps focuses on developing the right good or service for the selected market

product

Verizon Wireless adds a new service that allows a person to wirelessly send a song from one phone to another (like a text), which is an example of

product development

When a company offers a new product or an improved version of a current product in its present markets, it is engaged in product development market penetration diversification market development

product development

The "four Ps" of the marketing mix are

product, place, promotion, and price

The "four Ps" of the marketing mix are ___________, ___________, ___________, and ____________.

product, place, promotion, and price

Strategic management planning usually includes planning for Check all that apply production lawn care marketing finance human resources

production marketing finance human resources

Multiple marketing plans make up a marketing Check all that apply program strategy profit mix

program strategy

Which of the following are part of the "marketing mix"? Check all that apply target market promotion product customer

promotion product

Dry Pits underarm deodorant creates funny videos that it posts on YouTube. This is an example of

publicity

The nonpersonal, nonpaid communication of a product is known as __________

publicity

Promotion activities that increase customer interest or inspire customers to purchase a product or service and that are not advertising, publicity, or personal selling, fall into the category of ____________ ____________.

sales promotion

"Marketing-oriented managers," in contrast to "production-oriented" managers, see all customers as different see advertising as key to sales growth focus on mass markets use one marketing mix for "everyone"

see all customers as different

A marketing mix that is differentiated from that of the competition Check all that apply should also address customer needs that the competition is not addressing offers customers something that the competition does not simply meets customer needs in a way that is comparable with the competition will always win over customers

should also address customer needs that the competition is not addressing offers customers something that the competition does not

What managerial process involves cultivating and keeping a relationship that matches an organization's resources with its market opportunities? strategic management planning management marketing control production management planning advertising implementation

strategic management planning

What is the purpose of a S.W.O.T. analysis?

strengths weaknesses opportunities threats Picks out a firm's weak and strong points, as well as any potential opportunities and threats

"Target marketing" as compared to "mass marketing" tailors marketing mix for specific customers assumes all customers have specific needs focuses on profits in a specific demographic is limited to small markets

tailors marketing mix for specific customers

The marketing mix for ___ marketing focuses on a specified group, while the marketing mix for ___ marketing is used to generally target, appeal to everyone

target & mass

To better appeal to rural Chinese customers, HP developed a lower priced computer model with more basic features; it also built close relationships with stores in rural China, which included training of salespeople and advertising. In this case, the rural Chinese customers are the ___________. target market marketing mix variable group controlling interest

target market

Nordstrom's department store sends out emails that announce new styles to women who have previously bought shoes at Nordstrom. The women receiving the emails are one of Nordstrom's distribution channels target markets marketing programs marketing mixes

target markets

Which of the following are part of a marketing plan? Check all that apply the company resources needed the time-related details for carrying out a strategy a firm's marketing program the expected sales and profit results a marketing strategy

the company resources needed the time-related details for carrying out a strategy the expected sales and profit results a marketing strategy

The key parts of a marketing strategy are: Check all that apply an analysis of competitor insights the controllable variables the company puts together a control program that measures results a fairly similar group of customer the company wants to appeal to objectives the firm seeks to achieve

the controllable variables the company puts together a fairly similar group of customer the company wants to appeal to

High-end retailer Tiffany & Co. sees signs of an economic downturn. For Tiffany this represents a(n): threat opportunity weakness strength

threat

Which of the following are examples of Place decisions? Check all that apply. transporting goods making decisions about packaging recruiting intermediaries hiring salespeople choosing a channel or distribution

transporting goods recruiting intermediaries choosing a channel or distribution

A marketing mix is made up of _________ that a company manipulates in order to satisfy a chosen group. variables customers markets segments

variables

When a seller engages in personal selling, the seller uses __________ to tell a potential customer about a product or service written communication social media verbal communication promotional handouts

verbal communication

Lighting Supply Co.'s sales force is inexperienced and not well trained in the new LED lighting technology. For Lighting Supply, this is a(n)

weakness.

A S.W.O.T analysis helps a company figure out which of the following? Check all that apply weaknesses opportunities threats strengths goals budgets

weaknesses opportunities threats strengths