Company Examples for Midterm BUSN 2003
Starbucks provides training and support to its employees, including health care benefits. Through these ____ efforts Starbucks is better able to deliver quality products and service to its customers.
internal marketing
Spectrum uses a segmentation strategy for its cable TV packages based on market characteristics such as age, gender, or income. Which of the following segmentation variables is Spectrum using?
Demographic
ZYX Company has been a member of the Better Business Bureau for five years. In the past year, ZYX Company has had a number of customer complaints that it has not addressed. In response, what can the BBB do?
Expel ZYX Company from its local bureau
Crate and Barrel uses ____ to market themselves visually by displaying snapshots of company events, staff, and products.
Kellogg's is introducing a new Eggo bran waffle for toasters. Television commercials will be a key element in communicating the benefits associated with this product. Based on that decision, Kellogg's is expecting consumers to engage in what form of decision making?
Limited decision making
The American Eagle chain of retail stores has a reputation as one of the "coolest" brands according to Teen Research Unlimited. Their stores feature quality merchandise, the latest trends, must-have styles, and the hottest deals for its shoppers. The retail stores are typically found in shopping malls across the country and are comfortable places to shop—featuring interesting displays, pop music, and bright lights. American Eagle's selection of denim is the most popular product appealing to both genders and has helped them achieve double-digit growth. Which of the following would most likely be the "best" target market for American Eagle?
Man and women aged 16 to 22
Toys-R-Us is almost finished building a new store and will soon be having a grand opening celebration. Management wants to build excitement and anticipation for the event. Which social networking site would Toys-R-Us use to post multiple updates each day on the store's progress?
The Altitude Adventure Academy is developing its marketing mix for the coming year. Its managers know that they must first select ____ which may be the most important decision they make in the planning process.
a target market
Telluride Ski Resort in Telluride, Colorado, is a world-class ski destination. Taylor is a newly-hired manager of digital media and electronic marketing for Telluride. Taylor remembers reading about a new trend in video marketing, using _________ to engage and create a community of customers.
amateur filmmakers
When Coca-Cola takes the information collected through research and attempts to assess and interpret what it means for its soft-drink marketing efforts, Coca-Cola is engaged in environmental
analysis
Lowes has an iPhone icon that allows users to match colors in photographs with the store's selection of carpets. This is an example of a(n)
application (app)
Comcast offers different types of cable packages. Its digital economy has over 45 channels. Its digital preferred package offers over 220 channels. Its XFINITY TV 200 Latino offers over 150 channels, including more than 50 Spanish channels. What type of segmentation variable is Comcast likely using when developing its different packages?
behaviorisitic
American Express is an international financial services company that provides credit cards that are typically associated with individuals who travel on business and utilize their cards for purchases at restaurants, travel services (e.g., transportation, hotel), or other purchases. American Express makes extensive use of purchase information to aid in management and marketing decisions as well as in their marketing efforts to enhance the number of businesses that accept payment by the American Express Card. American Express leverages their information about consumers by analyzing the charging history of credit card members, website traffic, and information gleaned through the use of "cookies" and monitoring of social media, such as Twitter, Facebook, Instagram, and Pinterest. American Express believes data provides significant insights for their company. What type of information does American Express utilize?
big data
Budweiser, Heineken, Sam Adams, Corona, Guinness, and Miller are examples of __________ competitors in the beverage industry.
brand
According to the Boston Consulting Group, marketers may classify their products as all of the following except
cash contributors
Trident's regular toothpaste is highly popular but is unlikely to experience much more market growth. As a result, Trident is examining other forms of toothpaste with high potential for growth. However, because its regular toothpaste remains so profitable, it can use these profits to invest in newer toothpastes. Trident's regular toothpaste is an example of a
cash cow
The director of marketing for 3M tapes tells the rest of the management team, "When it comes to our transparent packaging tape unit, our strategy will be to use funds generated here to support our venture in the industrial bonding market." This strategy indicates that the packaging tape unit falls into which one of the following classifications?
cash cow
For the Christmas season, a major toy retailer decided to donate to Angel Tree, an organization that provides gifts to the families of those who are incarcerated. The retailer claimed that it would donate 10% of the proceeds of all toys sold in the month of December to the Angel Tree organization. This is an example of
cause-related marketing
Adobe markets software such as Photoshop and Lightroom through a subscription service and maintains an extensive website where customers can post reviews, offer tips and suggestions, and ask technical questions. Adobe appreciates the opportunity to create a forum where users of the software can interact with each other, as well as the company. This example relates to the ______ characteristic of online media.
connectivity
Milton Bradley/Parker Brothers are producers of many board games, such as Monopoly, Battleship, Yahtzee, and Clue. The company has posted online cash rewards for consumer reviews of their games. In doing so, Milton Bradley/Parker Brothers is striving to utilize
consumer-generated marketing
The reputation and well-known brand name of Rolex watches represents a ____ for Rolex.
core competency
Sprint encourages customers to post reviews on its company website or Facebook page in the hopes of increasing the company's
credibility
Kelly's Kids is a home-based business that sells high-quality children's clothing at premium prices using in-home parties. These in-home parties typically cater to families with small children and middle- to upper-middle-class income. Kelly's Kids is using ____ variables to segment its market.
demographic
Cadbury wants to know why sales of its new dark chocolate product is soaring in one country but not in another. After extensive research, Cadbury believes the answer lies in demographic and cultural differences among the populations. It conducts in-depth research that asks consumers in each country about their ages, occupations, eating habits, as well as how often they purchase its chocolate bars. It uses statistical analysis and predictive tools to come up with strong conclusions. Although Cadbury is fairly certain about its research, it realizes that it is still limited in providing evidence to definitively link demographic and cultural differences to being the cause of why sales differ so significantly among the two countries. Cadbury has most likely conducted _________________ research.
descriptive
Home Aura sells expensive custom-made draperies, bedding, and accessories through sales representatives who are also interior designers. It also has another, slightly less expensive line that it sells through stores such as Nordstrom's and Saks Fifth Avenue. Home Aura is most likely using a(n) ____ targeting strategy.
differentiated
Procter & Gamble markets Cheer detergent to young singles and couples and Tide detergent to families. Procter & Gamble is using a(n) ____ targeting strategy for laundry detergents.
differentiated
Miss Moo produces a line of milk products that are lactose-free. The milk comes in pint, quart, and half-gallon cartons, as well as 18-ounce glass bottles. Miss Moo sells its pint cartons to school systems, its quart and half-gallon cartons to grocery stores, and its glass bottles to vending machine operators. Miss Moo appears to use a(n) _____ strategy in marketing its product to a target market that is likely to be _______.
differentiated; homogeneous
Hasbro views the toy market as composed of four age groupings, each with different needs and desires. Hasbro is using a(n) ____ targeting strategy for its groups, which are known as _____.
differentiated; market segments
Google introduced Google Home, a smart speaker/home automation device. For Google, Google Home represents a strategy of
diversification
Kraft purchased the Duracell Battery Company and now operates this division as a separate profit center within the firm. In this example, Duracell is a(n) ____ unit of Kraft.
strategic business
SiriusXM Radio is concerned about how the increasing use of smartphones will affect the future sales of its satellite radio service. The company decides to gather information about the changing trends in music access and delivery to prepare for this trend. SiriusXM's process is called
environmental scanning
Subscription services from firms such as Nielsen provide marketing researchers with a good source of ____ data.
external secondary
If Campbell were to offer single-serving "Soup for One" packages to household markets, it would be using segmentation based on
family life cycle
Nielsen Marketing Research is concerned about using surveys to conduct a marketing research project because
fewer people are willing to participate
In many cases, companies that enter a market after innovative products have been introduced can achieve long-term competitive advantages by continuing to develop a better mousetrap. For example, VisiCalc was the first company to introduce a desktop spreadsheet program, but Lotus Notes cornered a large market share when it introduced the 1-2-3 program. Today, however, Microsoft's Excel is the dominant spreadsheet software program and has continued to endure due to the popularity of the Microsoft Office Suite of products. VisiCalc possessed a ___________ advantage while Microsoft enjoyed a ___________ advantage.
first-mover; late-mover
Sam's Club believes that most of its sales are to small businesses rather than consumers, and that women are more likely to be making the purchasing decisions. This is an example of a(n) ____ that Sam's Club could test through marketing research.
hypothesis
Suave's new shampoo, HI7, is faltering badly in the market. Suave's marketing personnel are unsure who is responsible for various marketing tasks, when these tasks are to be completed, or what resources have been allocated. Suave Marketing Director Maria Castanza said that the problem is that HI7 has the most poorly written ____ she has ever seen.
marketing plan
Apple is known for product innovation and the creation of products that meet needs consumers didn't realize they had, such as using an iPad to easily access the Internet, read books, and play games. In order to develop and deliver products to consumers that are high in value and successful, the firm implements a variety of ________ activities in order to stay abreast of consumer trends and preferences, and to determine the potential for success of new products.
marketing research
The International Company needs information about trends in housing starts and remodeling around the country. Since it will be difficult to collect _______ from the numerous locations, it decides to use _____ data from the U.S. Department of Commerce reports to get this information.
primary; secondary
Barry Steel provides steel for a variety of uses to its various customers. Customers have different needs for the steel, and thus Barry has to prepare the raw steel differently depending on how customers will use it in their production processes. The primary business segmentation variable in this example is
product use
While Almond Breeze engages in environmental scanning and analysis, the company is more likely to change its products and marketing strategies to adapt to environmental forces rather than trying to influence these forces. Almond Breeze has a(n) ____ approach to marketing environmental forces.
reactive
Costco has developed a website that allows employees to create a profile and connect with coworkers for the purpose of getting acquainted and building a work-related network. This is an example of a
social network
Managers at the Hightop Corporation are engaged in a complex process of revising their organization's mission and goals and developing corporate strategy, marketing objectives, marketing strategy, and, eventually, a marketing plan. This process is called
strategic planning
John Deere's strong name recognition and solid customer demand for its farm and garden equipment are two elements of the firm's
strengths
Because of its highly efficient and low-cost distribution system, Walmart has a ____ advantage over Kmart.
sustainable competitive
Sherwin-Williams Company provides paint and supplies to businesses and individuals through its network of company-owned retail outlets. Sherwin-Williams employs outside sales representatives who make personal calls with prospects and customers in order to gain insight about their needs and persuade them to utilize Sherwin-Williams for their painting projects. Typically, a Sherwin-Williams sales representative will focus his or her efforts on specific customers such as hospital facility managers, apartment complex managers, painting contractors, or education institution facility managers. Sherwin-Williams is utilizing the ______ variable for segmenting business markets.
type of organization
If Morton Salt saw all table salt customers as pretty much alike and thus offered only one marketing mix, it would be using the ____ strategy.
undifferentiated
The Guitar Center is a music superstore selling instruments, sound equipment, lighting, as well as DJ, band, and orchestra products. The Guitar Center plans to continue its growth across the country by opening 15 to 20 new stores each year. The Guitar Center has recognized that it has several market segments, including professional musicians, DJ businesses, and consumers who purchase instruments for school band and orchestra. The company has developed a detailed description of these various customer segments. These detailed descriptions include information such as demographic characteristics—age, income, and education level—as well as an individual's preferences regarding what brands of instruments they purchase, how frequently they visit the store to make a purchase, how much time they spend in the store, and the percent of time they select The Guitar Center to make a purchase. What step in the target market selection process has The Guitar Center completed by describing their target market customers?
Step 3: Develop Market Segment Profiles
Seller Company sells small refrigerators. It usually sells these refrigerators to hotels and offices. However, sometimes its customers choose to buy their refrigerators because they do not have a lot of room for a full-size refrigerator in their houses and apartments. Its primary market is the _____________ market, but it also sells to the _____________ market.
business; consumer
North Hills General Hospital has designed an upcoming research project for determining the best methods for improving patient care. The next step the organization must take in the marketing research process is
collecting data
The Turmeric Tea Co has become highly efficient in developing and manufacturing new turmeric tea products for the market. It far surpasses its competitors in these areas. Recently, major medical journals have started describing how turmeric tea can be highly advantageous for consumer health. This is likely to give the Turmeric Tea Co a ______________ because it is able to match its skills with opportunities in the marketplace.
competitive advantage
Tiffany's markets its exclusive jewelry and gifts to high-income individuals interested in high-quality products and a well-known brand name. It uses the same marketing mix to reach this market. Tiffany's uses a(n) ____ strategy.concentrated targeting
concentrated targeting
Rolls-Royce targets a very exclusive high-income market. Toyota, on the other hand, targets economy markets (Yaris), the environmentally-conscious market (Prius), and the higher-income market (Lexus). Rolls-Royce has adopted a ___________ targeting strategy. Toyota has adopted a ______________ targeting strategy.
concentrated;differentiated
Instacart is a service similar to Uber in that it uses an app and promotes the sharing economy concept. Consumers can use the app to contact independent contractors, who will travel to grocery stores and pick up groceries. They will then travel to the consumers' homes to deliver the groceries. Groceries are often marked up to account for the delivery, and customers often pay the drivers tips. However, they receive the benefit of not having to worry about grocery shopping. This service capitalizes on which variable of the e-marketing mix?
distribution
Acme Corporation saw an opportunity in the electric car industry. The company had studied major electric car brands such as the Chevrolet Volt and the Nissan Leaf. It believed it could avoid many of the challenges these companies had encountered with a new technology that would reduce costs. Acme also knew from watching competitors that it would have to work hard to convince skeptics that the electric car was a viable and dependable method to get around. By avoiding these mistakes and using its technology, Acme quickly gained market share once it began launching its vehicles. What type of advantage did Acme have?
late-mover advantage
King Mechanic is a very profitable automobile repair shop. The company is well known for its great service and involvement in the community, but it fails to properly dispose of its used oil as outlined in environmental regulations. King Mechanic is failing in its ____ responsibilities.
legal
Global marketers such as PepsiCo have embraced technology that enables them to form better relationships and communicate with customers. One of the benefits of e-marketing that Pepsi enjoys is that
marketers and customers can share information
Archer Appliances owner Chris Archer feels that his organization has access to a great deal of information generated both inside and outside the firm, but much of this information is presently going to waste. Apparently, Chris needs to develop a
marketing information system
Jonathon's Coffee Shop wants to increase customer satisfaction. Currently, only 75% of customers indicate they are satisfied with the services offered. In the next six months, it plans on implementing a number of changes to improve its services. Jonathon's Coffee plans to implement a survey at the end of the six-month period to determine whether customer satisfaction has improved. Jonathon's wants 90% of its customers to indicate they are satisfied with its service. This is an example of a ________________.
marketing objective
K. Winter Clothing is a medium-size specialty men's and women's clothing store in a market with many other specialty stores, department stores, and discounters. It has established a reputation for offering high-quality, fashionable merchandise with quality service. K. Winter's competitive environment would best be characterized as
monopolistic competition
If Procter & Gamble, the maker of Dawn dishwashing liquid, wants to know what percentage of customers examine product labels before making a product selection in the grocery store, it can best gain this information through
observation
An item on the Campus Bookstore's survey asks respondents to tell the store, in their own words, what they like least about textbook shopping. This item would be an example of a(n) ____ question.
open-ended
The Transportation Division of the GE Corporation is located in a small city that has limited economic growth at this time. Due to the condition of the local school system, GE contributed $2 million to repair and revive it, stating that GE believed in education for the community. This action would imply that GE is in which level of the pyramid of social responsibility?
philanthropic
The Boston Consulting Group's matrix is based on the
philosophy that a product's market growth rate and its market share are important determinants of its marketing strategy
Holiday World & Splashin' Safari is an amusement park located in Santa Claus, Indiana, which is located in southern Indiana and typically welcomes 10,000 to 20,000 visitors daily from nearby cities in Indiana, Kentucky, and Illinois. Holiday World is known for its wooden rollercoasters and historically has added one new thrill attraction each season. The company uses its Facebook page to alert followers to the new attraction and typically makes an announcement about the attraction toward the end of the season. During the fall and winter months when the amusement park is closed, the Facebook page may provide updates on the new attraction and provide links to purchase advance tickets or season passes from their website. Which element of the marketing mix is Holiday World using to generate interest and ticket sales for the park?
promotion
Johnson & Johnson learns about consumer needs by understanding the environment in which a product is used and the different applications of the product. The company uses ____ as a research tool to gain this information.
social networking
People for the Ethical Treatment of Animals (PETA) has demonstrated against the sale of coats made of animal furs. PETA's efforts to change shoppers' attitudes represent a ____ force for fur retailers.
sociocultural
Based on the work by the Boston Consulting Group, products with a dominant share of the market and good prospects for growth are
stars
State Farm Insurance Company is the largest insurance company in the United States and is consistently recognized for its efforts to "build safer, stronger, and better communities." It has received numerous awards including Corporate Responsibility Index, Corporation of the Year, Outstanding Corporate Partner, and Top 100 Employers. Recently, State Farm received a President's Volunteer Service Award from Junior Achievement for providing more than 5,000 volunteer hours to the organization. The State Farm-Junior Achievement program helps students by partnering with organizations to reduce high school dropout rates and increase the number of students receiving high school diplomas. Research has shown that students who graduate from high school will be more successful and productive citizens. In order to be successful, State Farm must be able to recruit and hire talented employees who have met minimum expectations for educational achievement. Through its partnership with Junior Achievement, State Farm Insurance Company has adopted a __________ approach to social responsibility.
strategic philanthropy