MKTG 3310 Chapter 2 SmartBook
A company recently undertook a marketing campaign for its new gaming console. The company generated $200,000 in sales and has a gross margin of 50%. The firm spent $70,000 on the marketing campaign. What is the firm's return on marketing investment?
42.9% ((200,000 x 0.50) - 70,000) / 70,000 --> 30,000/70,000 = 0.429
Karen read an article in the newspaper that said Fresh Farms provided the safest, pesticide-free vegetables in the state. She decided that from now on, she would only buy Fresh Farms products. In this instance, when it comes to Karen as a customer, Fresh Farms is enjoying ___.
A competitive advantage
According to Tyler Cornwell, the first thing he thinks of when he thinks of companies with great personal brands is ___.
Authenticity (trustworthy and willing to help)
According to your text, which of the following conditions might cause a firm to adjust their strategic plan?
Changing customer needs and competitive threats
A good mission statement should be orientated around the ___.
Customer
What two important metrics do marketers use to evaluate profitability?
Customer acquisition and individual customer profitability
Competitors of McDonald's can be classified two ways. Restaurants like Wendy's and Burger King are it's ___ competitors, while Subway and Taco Bell would be its ____ competitors.
Direct, indirect
Jenna is a florist and needs to determine how to get 1,000 flowers to the three weddings she is responsible for this weekend. She is concerned with ___ strategy of the marketing plan.
Distribution
The ___ section of the marketing plan should outline all the different companies, people, and technologies that will be involved in the process of delivering the product to customers.
Distribution
While Coca-Cola originally only produced soda products, it now also owns Minute Maid orange juice and a variety of other companies. By seeking to attract new customers by offering products unrelated to soda, which type of marketing growth strategy does this exemplify?
Diversification
The purpose of a mission statement is to provide ____ with a shared sense of ambition, direction, and opportunity.
Employees
Rank the following international market entry strategies in order of risk and potential return by placing the strategy with the lowest risk/return first and the strategy with the highest risk/return last.
Exporting, licensing, franchising, joint venture, and direct ownership
Which of the following strategic options can a firm use for entering the international marketplace?
Exporting, licensing, franchising, joint venture, or direct ownership
It is common for companies to make which of the following mistakes when conducting a SWOT analysis?
Failing to separate internal issues from external issues
Readers of a marketing plan can see the detailed estimate of an organization's profitability in the ____ section.
Financials
While each company may develop a marketing plan in a different way, there are usually ___ basic steps in every marketing plan.
Five
When a firm accomplishes a successful marketing strategy, it can lead to ____.
Higher profits, stronger brands, larger market share
Which of the following should be included in the controls section of the marketing plan?
Implementation, organizational structure, contingency planning
Most companies fail to consider their ___ competitors when creating the competition section of the market summary.
Indirect
Identify the four basic categories of marketing growth strategies from the list below.
Market development, diversification, market penetration, product development
Martin wants to increase sales at his shoe store by giving his customers the opportunity to buy another pair of shoes for half-price for each pair of shoes they buy. This is an example of the marketing growth strategy known as ___ ___.
Market penetration
Proctor and Gamble offers its Gillette brand of deodorant for men and its Secret brand of deodorant for women. By taking the overall market and dividing it into smaller groups, Proctor and Gamble has engaged in ____.
Market segmentation
The process of market segmentation results in _____.
Market segments
The percentage of the total market sales captured by a brand, product, or firm is referred to as ___ ___.
Market share
Blair works in the marketing department for a large electronics firm. He is currently trying to determine how his firm is performing relative to the other electronics firms in the industry. Which of the following would Blair use to do this?
Market share analysis
As a component of the situation analysis, a ___ ___ focuses on the current state of the market to which the firm will sell its products.
Market summary
Which of the following subsections of a situation analysis?
Market summary, SWOT analysis, competition analysis
The practice of measuring, managing, and analyzing marketing performance is referred to as ____.
Marketing analytics
The specific actions a firm must take in order to accomplish its overall marketing objectives is laid out in its
Marketing strategy
A strategic plan addresses an organization's plan for which key functional areas?
Marketing, human resources, finance, and risk management
Trisha has been asked to complete a situation analysis for her company to help guide the firm toward making strategic decisions for the future. Which of the following will Trisha be able to provide from her situation analysis?
Marketplace trends, current competition, and market conditions
In the first week at work, Gerald was asked to make suggestions for how to best market the company's newest product. In order to do this, he wanted to understand the goals and values the company had established for itself. To learn this, Gerald would want to consult the firm's ___ ___.
Mission statement
___ are external factors that a firm may be able to capitalize on to meet or exceed its stated objectives.
Opportunities
Select from the following the goals of marketing analytics.
Optimize return on investment and maximize marketing effectiveness
When Budweiser uses the slogan "King of Beers" to promote its beer, the firm is trying to create a perception in the eyes of its target market that the Budweiser product is superior to its competitors. In doing so, Budweiser is ____ its product.
Positioning
Select the items that are part of a thorough market summary.
Potential sales through international expansion, an analysis of important marketplace trends, international growth opportunities
The ____ section of the marketing plan specifies how much money a customer must pay for a product.
Pricing
Which section of the marketing plan would include information on any warranties or guarantees that accompany what the company is selling?
Product
Karen's company started out ten years ago making only coffee products. In the past year, they have introduced a line of tea to sell to their existing customers. Which market strategy do these efforts demonstrate?
Product development
The measure of how much profit the firm generates as well as how much profit certain aspects of the firm, including regions, channels, and customer segments, contribute is referred to as ___.
Profitability analysis
A company relies on which element of the marketing mix when determining how it will communicate the value of its product?
Promotion
Quality marketing objectives have three basic characteristics. Making sure that your objectives are ___ helps to ensure that you do not provide unattainable goals and diminish the motivation of those working for you.
Realistic
To be most effective, market share data should be analyzed ____.
Relative to revenue and profitability
A firm has just completed a new marketing campaign and would like to measure how effective it was at increasing profits. Which of the following metrics would indicate if the money spent on the campaign contributed to profits?
Return on marketing investment
Revenue analysis pinpoints the specific sources of
Revenue
Which marketing analytics tools measures and evaluates revenue from specific products or regions?
Revenue analysis
In order to be useful, market share data needs to be analyzed along with
Revenue and profitability
Which of the following pieces of information are needed in order to calculate return on marketing investment?
Sales, marketing expenditures, and gross margin
A marketing strategy includes decisions about which of the following?
Segmentation, target markets, positioning, strategic directions, and the marketing mix
A market development strategy can be defined as ___.
Selling existing products to new customers
If Susan is asked to review the market summary, SWOT analysis, and competition information for her company, then Susan is in the process of completing a ___ ____.
Situation analysis
Which component of the marketing plan allows a company to understand information about their current business and then make strategic decisions about how to best move forward?
Situation analysis
Which of the following are the three characteristics of a quality marketing objective?
Specific, realistic, and measurable
The process of defining the objectives of a company and then developing a method to achieve those objectives is known as ___.
Strategic planning
The SWOT analysis is used, in part, to evaluate a firm's ____.
Strengths and weaknesses
Within the SWOT analysis, ___ are internal capabilities that help a company achieve its objectives, while ___ are internal limitations that may prevent the firm's ability to meet its objectives.
Strengths, weaknesses
The goal for firms is to achieve a ___ competitive advantage by developing products that outperform competitors over a long period of time.
Sustainable
A ___ ____ is the group of customers toward which an organization has decided to direct its marketing efforts.
Target market
The Boston Consulting Group matrix is a tool used to describe ____.
The current market
What is market segmentation?
The process of dividing a larger market into smaller groups based on meaningfully shared characteristics