Identifying Attractive Markets: Marketing
Corea Inc., a biopharmaceutical company, engages in the research, development, manufacture, and marketing of prescription medicines. A new drug developed by them has been awarded patent rights by the U.S. FDA. The patent grants them exclusive rights to manufacture and market the drug for 3 years. Which of the following statements will be true?
Corea Inc. will have a temporary monopoly in the market for this drug. RAT: A monopoly is a market structure in which a single seller dominates trade in a good or service for which buyers can find no close substitutes. Monopolies are rare today because government regulators carefully monitor monopolies. In addition, the deregulation movement has ended total monopoly protection for most public utilities (such as long-distance telephone companies, cell phone providers, and even electric utilities).
A grocery store gives customers a discount when they scan their frequent shopper's club card at each purchase. The computer tracks what people buy, how often, and the amount they tend to spend. This customer information data is stored in a huge database called a:
Data warehouse RAT: Data mining is the process of searching customer files to detect patterns, identifying relationships not obvious to marketers, and in a sense, answering questions never asked. Data mining is a way to sort through huge amounts of data stored in a data warehouse and make sense of it, find patterns, and use that intelligence to review effectiveness of strategies.
Kroger Grocery Store is an example of a reseller. Which of the following factors concerning reseller purchase decisions is false?
Resellers are not concerned with how much space the product takes up as long as it has a high price. RAT: The space required relative to potential profit is an import factor for resellers.
Justin is purchasing his third car in the past five years. He has been a car enthusiast ever since he was a little boy. He likes to spend his free time looking at car magazines, going to car shows, and watching NASCAR. Justin's interest in cars is referred to as
enduring involvement RAT: A major determinant of the type of problem-solving process employed depends on the customer's level of involvement, the degree of interest in a product and the importance the individual places on that product. Enduring involvement is the ongoing and long-term involvement with a product or product category.
Monitoring local newspapers and television news shows for general information relating to a firm's business would be an example of:
environmental scanning. RAT: Environmental scanning is the process of collecting information about the external marketing environment to identify and interpret potential trends. The goal is to analyze the information and decide whether these trends represent opportunities or threats to the company.
Compass is a United Kingdom-based catering company that has developed a marketing plan designed to make it the largest caterer in China within the next two decades. As part of its marketing _____, it has already begun serving meals on trains that run between Shanghai and Beijing.
implementation RAT: Implementation is the process that turns marketing plans into action assignments.
Shane spends most of his free time participating in extreme sports and traveling to exotic locations with a group of close friends who share his interests and opinions about most things. This is a description of Shane's
lifestyle RAT: Lifestyle, an individual's pattern of living expressed through activities, interests and opinions, strongly influences the buying decision process. Many marketers segment markets by lifestyle.
Earl is starting a new bank. Before their opening day Earl had a meeting with all employees. He discussed their mission, defined objectives for the bank for the coming years and shared who their target market is. He talked about their product offerings and where their future branches would be located. Earl is sharing the bank's:
marketing plan RAT: All the listed activities are part of the marketing planning activities.
A buyer for Macy's Department Stores orders handbags from a supplier because that supplier allows the buyer to maintain Macy's company policy of 30-day advance purchase notice. This is an example of ___________ influence on the business buying decision process.
organizational RAT: The four major factors are environmental (such as the competitive and economic environment), organizational (such as the business's mission and objectives), interpersonal (relationships among people in the business), and individual (the personal characteristics of people in the buying center). The supplier's organizational purchasing policies influenced the the buyer's decision.
When working as a summer intern for a local retail store, Jan Halverson was sent to the library to look up data on population forecasts for the city of San Antonio. The population information she found would be considered
secondary data RAT: Marketers can collect both primary and secondary data for use in research. Primary data is observed or collected directly from respondents, such as the information gathered from surveys and focus groups. Secondary data is information that had been gathered for other purposes and compiled.