Chapter 2 Market Management
After college, John purchased a Toyota Tacoma for $23,000. He got married recently and is shopping for a more family-oriented vehicle. He 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
$83,000
Which of the following are examples of products?
-A car -A DVD movie -A television -A diet soft drink
Which of the following could be sources of competitive advantage?
-Agreements with the best retailers in the product category -A well-trained and experienced sales force -A well-known and highly respected brand name -Lower prices than competitors
Which of the following statements about customer service are correct?
-Customer service is a form of promotion. -Customer service is important for getting customers to buy again. -Customer service deals with resolving problems after the sale.
Choose the statements about differentiation that are true.
-Differentiation can only occur if one or more of the four Ps is done better than the competition. -True differentiation occurs when 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.
What are the four broad areas of opportunity a company can pursue in the marketing strategy planning process?
-Diversification -Market penetration -Product development -Market development
Which of the following are examples of a competitive advantage for a Mexican restaurant in a medium-sized town? (Check all that apply.)
-It has lower prices and better advertising than its competitors. -It has a better location and lower prices than its competitor. -It has lower prices, a better location, and better customer service than other restaurants in town.
Which of the following are true with respect to customer equity?
-It helps marketing managers make decisions that will increase future profits. -It helps companies make decisions that will affect long-term profits.
Which of the following are true of market segmentation?
-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.
What are the two parts of a marketing strategy?
-Marketing mix -Target market
Which of the following statements about mass selling is true?
-Mass selling can involve media that includes magazines and the Internet. -Advertising is one form of mass selling. -Publicity is one form of mass selling.
Which of the following are examples of the Promotion element of the marketing mix?
-Nike creates a short video about its soccer cleats that it posts on YouTube. -Vail Ski Resort runs advertising in California newspapers.
What are three components of the promotion element?
-Personal selling -Mass selling -Sales promotion
Which of the following are part of the "marketing mix"?
-Promotion -Product
Which of the following statements about publicity are true?
-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. -Publicity includes creating a video that a company hope goes viral.
Which of the following are examples of "place" decisions within the marketing mix?
-Sprint decides to sell phone service through Walmart stores. -Sears opens new stores in South Dakota. -Best Buy opens a warehouse in California.
The people who make up a company's target market have which two qualities?
-The company wants to appeal to them. -They are similar.
Which of the following statements about the marketing strategy planning process are true?
-The marketing strategy process starts broadly and then narrows down. -A marketing strategy begins with an evaluation of customers, competitors, and company.
Which of the following are true about the specific qualitative and quantitative screening criteria marketing managers develop
-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.
Which of the following statements about differentiation are true?
-differentiation should result in a competitive advantage -differentiation means having a different marketing mix than those of rival firms -differentiation follows an evaluation of competitors, customers, and the company
The difference between target marketing and mass marketing is that mass marketing:
-is typical of a production-oriented approach. -assumes that all customers are basically similar.
In order to create a marketing mix that is differentiated from that of the competition, a company:
-offers customers something that the competition does not. -should also address customer needs that the competition is not addressing.
The "four Ps" of the marketing mix are
-product -place -promotion -price.
What are a company's three potential paths for growth based on the customer equity approach?
-retaining current customers -enhancing customer value -acquiring new customers
When conducting a SWOT analysis, Martha would need to identify strategies that take advantage of the Coffee Collective's ______________ while avoiding _______________
-strengths and opportunities; weaknesses and threats
Order the steps of the marketing management process starting with the first step and ending with the last.
1) Planning Marketing Activities 2) Guiding the implementation of marketing plans 3) Controlling marketing plans
What are the specific steps in the marketing management process?
1. Planning marketing activities 2. Controlling marketing plans 3. Directing implementation of marketing activities
Which of the following is true concerning the importance of the Four Ps?
All are equally important.
Which of the following helps companies create marketing strategies that are difficult to replicate and have long-term profit potential?
Breakthrough opportunities
A(n) __________________is a chain of companies or individuals who help a product move through the various stages of production from producers to final users or consumers.
Channel of Distribution
Which of the following involves a seller using personal communication to help a customer fix an issue with a completed purchase?
Customer service
Which of the following statements about the Four Ps is true?
Each of the Four Ps contributes to a whole marketing strategy.
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
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.
The marketing department at Henri's company is taking the next two weeks to measure and analyze their current marketing performance. The company will use the results of this analysis to adjust any areas and improve their current effectiveness. What is Henri's company engaging in?
Marketing analytics
___________ marketers, such as Target, aim at large, clearly defined markets.
Mass
Which of the following statements about mass marketing is true?
Mass marketing assumes that everyone is basically the same.
When a seller shares information about a product with large audience, she is doing what?
Mass selling
Which of the following involves a face-to-face conversation in which a seller delivers information about a product to a potential customer?
Personal selling
Healthy-O Cereals decides to sell its products through retail health food stores. This strategy decision is an example of which marketing mix area?
Place
Which of the following are the 3 phases of the strategic marketing process?
Planning Implementation Control
To clear out some slow-selling pink sofas, Furniture Warehouse offered $100 discounts. The furniture store made this decision based on the _______ component of the marketing mix.
Price
Denny's adds two new meals to its menus. This is an example of which marketing mix area?
Product
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 is focused on informing people about the features of the product?
Promotion
_____ management planning involves the creation of a plan to guide the actions of an entire company. Multiple choice question.
Strategic
Which of the following statements is true of the marketing management process?
The marketing management process is the process of planning marketing activities, directing the implementation of the plans, and controlling these plans.
How does the customer fit in the 4Ps of a marketing mix?
They are the target of the marketing efforts.
True or false: Some firms find that it costs them less to retain a customer than trying to acquire a new one.
True
True or false: When customers make online purchases, a company has access to data that can be used for marketing analytics.
True
A marketing plan is
a document that describes a marketing strategy and various steps and elements involved in carrying out the strategy.
Nonpersonal communication of a product that is paid for by an identified sponsor is known as
advertising
When sellers use paid, nonpersonal communication to engage in mass selling and identify themselves as the sponsors of that communication, they are using
advertising.
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
The series of organizations that help a product move through the steps necessary to get it from the producing company to the consumer are known as a
channel of distribution.
When Martha needs to compare the results of the marketing program for the Coffee Collective and then implement changes based upon what she finds, she is in the _____________ phase of the strategic marketing process.
control
A marketing mix is made up of _______ variables that a company manipulates in order to satisfy a chosen group. Multiple choice question. uncontrollable
controllable
When a company is working to achieve market penetration, it is attempting to increase sales of its _____ products in its _____ markets.
current; present
Companies predict how many purchases a single customer might make from the company over the length of the relationship with that consumer, 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
customer lifetime value
The total profits that a single customer contributes to a firm over the length of the relationship is known as
customer lifetime value
The term "mass marketer" is used to
describe large firms that aim at specific groups.
A company is attempting to achieve market ______________ when it works to increase sales by selling its current products in new markets.
development
A company is attempting to achieve market _____________ when it works to increase sales by selling its current products in new markets.
development
Specifying a target market and the corresponding marketing mix are the two elements that comprise the
development of a marketing strategy.
Moving into a new line of business, such as a new product or market, is known as
diversification.
The broad possibilities available in the market strategy planning process include market development, market penetration, product development, and
diversification.
When a company begins working in a brand new market or with new products, it is engaged in
diversification.
A company's customer_____________ is what the company can expect to earn from its current and potential customers during a particular period.
equity
Marketing plans are put into action during
implementation.
Customer value _______ when customers perceive more benefits or lower costs.
increases
The customer equity approach helps companies
make decisions that will affect their long-term profits.
Which of the following is a company engaged in when it attempts to increase sales of its current products by offering them in new markets?
market development
To identify and understand different subgroups in the target market, marketing managers rely on
market segmentation.
A ______ consists of variables a company controls and uses to attract and satisfy a particular target group.
marketing mix
The Coffee Collective will need to detail the day-to-day operational decisions that are needed to execute the marketing planning phase. These actions are often organized into the 4 Ps, also called the
marketing mix
The variables that a company puts together in an attempt to satisfy a particular set of customers that it wants to appeal to is called a
marketing mix.
A(n) ________________is a written document that identifies a marketing strategy and spells out the various elements that are necessary for fulfilling that strategy.
marketing plan
A _____ specifies a target market and a related marketing mix.
marketing strategy
Customers can perceive differences based on
only one important element of the marketing mix.
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)
opportunity.
A company that is working to increase customer purchases of its current products in its current market is trying to achieve market
penetration.
When Marcus meets with Lily and talks to her about the advantages of the service offered by his company, he is engaging in
personal selling.
Tom's Drug Store 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
A firm engaged in ______ is offering its current markets a new product or an improved version of a current product.
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.
The unpaid, nonpersonal presentation of a product or service is referred to 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.
To encourage customers to try new Cinnamon Toasties cereal, the marketing manager made free samples and coupons available at grocery stores. These are examples of
sales promotion.
Developing a _______ can help a manager identify and define the markets in which the firm wants to compete.
set of specific qualitative and quantitative criteria
What managerial process involves cultivating and keeping a relationship that matches an organization's resources with its market opportunities?
strategic management planning
Tide detergent has been around for more than 50 years and has a reputation for quality. Having a well-known brand name is a(n)
strength
Compared to mass marketing, target marketing is more likely to
tailor the marketing mix for specific customers.
The customer represents the _______________ market.
target
As part of their marketing strategy, companies will identify a _______, a group of similar people whose interest the company wants to gain.
target market
Martha categorizes prospective buyers into groups that have common needs and will respond similarly to a marketing action, she then determines the group she will focus on. This group represents Martha's ______________.
target market
Customer equity is
the amount of money a company can expect to earn from customers during a given time.
High-end retailer Tiffany & Co. sees signs of an economic downturn. For Tiffany this represents a(n)
threat
If a customer perceives a product to have more features and a higher quality, then the customer perceives the product to have more
value
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.
