KU MKTG 305 Final Exam

__________ consists of marketing to organizations that acquire goods and services in the production of other goods and services that are then sold or supplied to others.

Business-to-business

________ stores are small, self-service retailers that aim to capture sales from people who are willing to pay higher prices in exchange for the ease of purchase these retailers offer.

Convenience stores

Compared with other generational groups, Baby Boomers have the greatest familiarity with and most use for digital communication, social media, and other forms of technology.

False

Donations made to nonprofit organizations are not usually affected by economic recessions.

False

The belief by residents of a country that it is inappropriate or immoral to purchase foreign-made goods and services is referred to as consumer bias.

False

_________ are intangible and represent formulated thoughts or opinions, whereas ________ are intangible products that cannot be touched, weighed, or measured.

Ideas; services

The retail professional responsible for purchasing wholesale merchandise for retailers to sell in store or online is the ________.

buyer

How can purchasing help improve product design and time-to-market for new products?

by involving appropriate suppliers early in the product design process

The superior position a product enjoys over competing products if consumers believe it has more value than other products in its category is referred to as a

competitive advantage.

The five stages most consumers go through when engaged in extended problem solving is called the

consumer decision-making process.

The customers love Marco's handmade dog collars. What does Marco do to transform this product item into a product line?

creates more dog collars of varying patterns and colors

The fact that you see a McDonald's on practically every highway exit sign listing restaurant choices would indicate that McDonald's is most likely geographically segmenting based on

customer convenience.

Lead scoring is an approach used to numerically rate a company's best

customers

The description of human populations based on characteristics such as age, gender, ethnicity, and education level is referred to as

demographics

Which of the following is not one of the three phases of the strategic marketing process?

determination phase

In a retail setting, a visual merchandiser has the responsibility for

developing layout plans and displays in order to grab shoppers' attention.

In a supply chain, the flow of products travels _________ through distribution channels such as wholesalers, distributors, and retailers. (upstream/downstream)

downstream

What type of adopter is typically well respected by their peers and sought by marketers because they tend to be opinion leaders who are willing to talk to other people about their experiences with their purchases?

early adopter

Marco ultimately decides to expand his product mix by offering rain booties made from the same upcycled leather and fabric as his dog collars and sweaters. This strategy is known as

expansion of product mix breadth.

In a SWOT analysis, threats are a(n) __________ consideration. (internal/external)

external

During the decline stage, the firm will likely put forth a lot of effort to change a good's appearance or functionality in order to generate interest for the product.

false

In periods of inflation, the purchasing power of money increases.

false

It is not necessary for a retailer to work on building and maintaining a positive store image—it usually happens on its own.

false

Perhaps the most famous online retailer in the world today, Amazon.com is guided by two principles: always putting the customer first and

forgoing short-term financial gains to reinvest profits into its technology

Nonprofit organizations rely primarily on three sources of funding: special events, individual donations, and _______.

grants

In what stage of the new-product development process would organizations use social media to evaluate potential new products?

idea screening

In terms of creating a seamless shopping experience for omnichannel consumers, what has arguably made one of the most transformational impacts within retail in recent years?

in-store pickup technology

When examining the strengths of the Coffee Collective within a SWOT analysis, you would need to evaluate the ________ and ________ factors of the organization.

internal; favorable

Marketers must realize that the consumer is unlikely to engage in any of the subsequent steps of the buying process if the consumer

is not aware of a problem or does not recognize a need.

Older and less educated than other types of adopters, ________ tend to be tied to tradition, and are not easily motivated by promotional strategies.

laggards

If a company wants to utilize data analytics in order to identify those traits that make a prospective customer more likely to purchase, it would use an application known as ________ ________ to numerically rate its best prospective customers.

lead scoring

A ________-involvement purchase is one that is frequently purchased and inexpensive, requires little forethought, and carries limited risk.

low

All along the supply chain, distribution channels add value to the product by

making the product available to ship, taking customer orders and shipping the product to the next step in the supply chain.

It has been Tara's dream to open a bakery, and while she has experience in making all types of baked goods, she always gets rave reviews for her hand-decorated cakes. So, rather than open a bakery that offers a wide variety of baked goods, Tara has decided to open a specialty cake shop to cater to that market only. This is an example of

market segmentation

Before Martha could begin planning her business's strategic plan, she needed to determine her company's long-term purpose, or its

mission statement

A targeting strategy that involves pursuing a large share of a small market segment is referred to as

niche marketing.

Marco sees how well his dog collars and dog sweaters are selling, so he decides to expand his product mix. He considers doing this by expanding his product line depth, which means

offering dog collars and sweaters in different sizes and for different breeds.

Clive is considering opening a late-night pizza parlor on the local college campus. His SWOT analysis reveals that students want more late-night options for dining. This represents a(n) __________ in the SWOT analysis.

opportunity

The distribution activities associated with logistics relate to the __________ aspect of the 4 Ps of the marketing mix.

place

Cost ________ pricing is one of the most commonly used pricing tactics, largely because it is easy, but it is not very effective at maximizing profits.

plus

A major pharmacy retail chain opened a brand new location down the street from Peterson's drug store and has drastically reduced prices on many of the same products that Peterson's sells, forcing the store to go out of business. After Peterson's closed its store, the pharmacy retail chain began raising its prices to more normal levels. This is an example of

predatory pricing.

Maggie works for the Chicago White Sox in the ticket sales department. Her company currently uses a database to store information on individual customers' past purchase. She is presently working with this data to build a projection of White Sox ticket sales for the upcoming season. Maggie is currently using what type of statistical analysis?

predictive modeling.

Marco's dog collars are such a success that he decides to add a new product line of dog sweaters, thus creating a

product mix.

Which element(s) of the four Ps of the marketing mix is/are affected by logistics?

product, price, place, and promotion

After the economic recession, the boating industry suffered from a decline in sales. However, recent sales forecasts indicate that the upcoming season will produce a strong demand for boats and boating equipment. Based on this, Lynn has decided to ramp up production this winter of both his bass fishing boats and speed boats, keep them in storage until the boating sales season officially resumes, and hope that customers will buy them. This is an example of a ________ strategy.

push

According to the BCG matrix, products that are typically new to the market and require significant marketing investment in promotion, product management, and distribution are classified as

question marks

A quality marketing objective should have three basic characteristics. It should be specific, measurable, and ___________.

realistic

At the core of all modern selling strategies is ________ selling.

relationship

When designing a research study, what two things do marketing researchers hope their measures achieve?

reliability and validity

Data obtained from UPC codes at check-out counters is what type of data?

scanner data

Which level of service offers retailers improved efficiency, while also allowing for enhanced customer convenience?

self-service

There are six types of major external factors that influence the marketing environment of a firm. They are sociocultural, demographic, technological, economic, legal, and ________.

sociocultural

What factor of the targeting process is at work when a marketer ensures that the target market is appropriate for what the organization is and wants to be as defined in its mission statement?

strategic fit

According to your text, when selecting a target market, firms should consider three important factors: growth potential, level of competition, and

strategic fit.

Martha used a SWOT analysis to assess her own internal business plan. Her store would cater to students who could also use the location to study and socialize. This unique aspect of her shop represents which element of the SWOT analysis?

strength

The group of customers toward which an organization has decided to direct its marketing efforts is known as the __________ market.

target

Gloria wants to perform a situation analysis of her business to help her make strategic decisions for the future. While the situation analysis will help Gloria identify many things, it won't address which area?

the firm's financial projections

Consumers will be more price sensitive when

the price they have to pay is more than they anticipated.

As defined in your text, a product refers to

the specific combination of goods, services, or ideas that a firm offers to its target market.

A survey could be used to gather data from a large population about which promotions consumers have seen and their reactions to those promotions. Group starts

true

Behavioral segmentation is often the most difficult of the four segmentation bases to use.

true

Nora thinks that Pantene is the best brand of shampoo on the market and refuses to buy any other brand. For Nora, Pantene has established a competitive advantage over the competing products.

true

The design of sales territories needs to match the workload and opportunity in each territory to the abilities of the corresponding salesperson or team.

true

Compare the following product offerings. Which is an example of indirect competition?

wendy's and taco bell

In the Market Research Lecture, Professor Benditt created a matrix showing how different types of market research can be categorized between Quantitative/Qualitative, and Primary/Secondary. In the space below, identify ONE STRENGTH and one WEAKNESS for the types of research data marketers gain through each of the following quandrants. Use the number system in the matrix for your response.

1. Cheap, Statistically Significant, Targeted 2. Time Consuming, High Involvment 3. Targeted, Get to "Why" 4. Expensive, Time Consuming, Not Statistically Significant 5. Cheap, Fast, Good data integrity 6. Broad, Non-specific, May not line up with marketing target market 7. Cheap, Fast 8. Low(er) information integrity, Broad, Non-specific, Source data can be skewed/subjective

According to the video lecture and animated graphic, name at least TWO factors that led to Subway overtaking McDonald's in the "Fast Food" wars?

1. Cost of Capital - it was far less expensive to purchase a Subway franchise (about $200,000) vs. a McDonald's franchise (up to $2 Million per store) 2. Consumers preferences for healthy fast food options / America obesity epidemic 3. "Anywhere and Everywhere" Distribution Strategy - allowing franchisees to open restaurants in non-traditional locations like bus stops, airports, and malls

Social Media Strategies for Segmentation: 1. Facebook post targeting... 2. LinkedIn post to all new... 3. Snapchat filter for local... 4. Facebook message targeted... 5. Instagram post of new... 6. Having a brand ambassador... 7. Tweeting out product... 8. Using Facebook to contact...

1. Demographic 2. Demographic 3. Geographic 4. Geographic 5. Psychographic 6. Psychographic 7. Behavioral 8. Behavioral

Understanding different sales jobs 1. The outside sales rep... 2. The goal of the CSM... 3. Inside Sales Rep receive... 4. A primary responsibility... 5. The primary role of the Pharma... 6. The sales engineer is... 7. The sales analyst is... 8. They key account manager...

1. New business salesperson 2. new business salesperson 3. order-takers 4. order-takers 5. missionary salespeople 6. sales management and support 7. sales management and support 8. other

Categories of new Products: 1. New beverage that can be made from concentrate for international consumers in a way that has never been done 2. Selling suntan lotion that has the scent of your favorite cola 3. New 10-calorie version of the company's cola product that is targeted to male consumers 4.Smartphone app that can scan any beverage and show you the exact nutritional components in detail 5. Selling a more caffeinated version of your traditional cola targeted at younger consumers 6. Diet soda product using a new type of artificial sweetener 7. Candles that make your home smell like your favorite cola 8. A 5-ounce package of your popular cola product that is better for the environment

1. New-to-the-market products 2. new category entries 3. product line extensions 4. new-to-the market products 5. product line extensions 6. revamped products 7. new category entries 8. revamped products

In the pricing lecture, Professor Benditt reviews factors that affect price elasticity in great depth. Identify THREE factors that affect price elasticity, and provide ONE product example for each factor.

1. Size of expenditure (example: gum vs car) 2. Shared Costs (example: group gift) 3. Swithing Costs (example: cable contract) 4. Percieved Risk (example: run out of toilet paper) 5. Importance of End Benefit (example: migraine medication) 6. Price:Quality Perceptions (example: organic chicken) 7. Reference Prices (example: discount paper towels/cleaning supplies pricing) 8. Percieved Fairness (example: ticket scalper) 9. Price Framing (example: Bed Bath & Beyond coupons)

1. Wendy's opens 29 new company-owned stores in Canada to test a new Frosty flavor. 2. Laske farms sells oranges and peaches grown in Florida to stores in Mexico. 3. Starbucks partners with a Russian coffee company to open a new chain of coffee shops in Moscow. 4. KFC shares recipes and distribution information for five new KFC restaurants owned by local Saudi Arabian investors. 5. Memphis Grizzlies gives a logo and artwork to a Japanese company to sell Grizzlies' shirts locally. 6. Wal-Mart builds seven company-owned stores in China. 7. NBC and Univision start a Latin American television network. 8. GM builds cars in the United States and sells them to European buyers. 9. Subway provides a business owner in Vietnam the knowledge and information to run a Subway for a fee. 10. Taylor Gas Stations allows an owner-operator in Chile the right to use its name and provides support as to how to best run the business.

1. direct ownership 2. exporting 3. joint venture 4. licensing 5. licensing 6. direct ownership 7. joint venture 8. exporting 9. franchising 10. franchising

1. Bobby and Pam consult with friends and family about the safety of different neighborhoods. 2. Bobby and Pam discuss how happy they are with the new four-bedroom house and its location. 3. Bobby and Pam weigh paying more to get a smaller house in the city or paying less to get a bigger house in the suburbs. 4. Bobby and Pam need more room in their house since they are expecting their second child. 5. Bobby and Pam sign the papers to buy a new four-bedroom home in the suburbs.

1. information search 2. postpurchase evaluation 3. evaluating alternatives 4. problem recognition 5. making the purchase

1. Post office closings 2. JPM has superior information technology infrastructure 3. Increasing demand for international packages 4. JPM has an excellent workforce and human resource department. 5. Potential global economic recession 6. JPM has increasing labor costs 7. JPM has less fuel-efficient planes 8. Increasing fuel costs due to turmoil in the Middle East

1. opportunities 2. strengths 3. opportunities 4. strengths 5. threats 6. weaknesses 7. weaknesses 8. threats

Understanding difference between retailer types: 1. Full-Line and Specialty Discount Stores 2. Low and Mid-Tier Department Stores 3. Off-Price retailers 4. specialty stores 5. other

1. walmart, target, best buy, bed bath & beyond 2. JCPenney, Kohl's 3. TJ Maxx 4. Kay Jewelers, H&M 5. Costco, dollar general, sheetz, kroger

Currently, females account for what percentage of all consumer purchases in the United States?

85%

What U.S. corporation was criticized when it created an in-store ad for some European stores that showed a Hindu goddess atop a ham sandwich with the caption, a snack that is sacred?

Burger King

An expensive boutique hotel in your city offers valet parking, an extensive wine list, a Culinary Institute of America-trained chef and hotel rooms starting at $400 (average hotel rate in your city is $145) per night. A salesperson from a local marketing firm that offers a coupon (discount) book filled with two-for-one dinner deals from many local businesses has contacted the manager of this hotel to see if she is interested in being promoted through this coupon book. Should the manager purchase space in this book?

Positioning involves the various activities that the business undertakes to create a perception of the product or service in the consumer's mind. Companies position the product based on their target markets. The luxury hotel is attempting to position itself as high-end with a high price, extra services like valet parking, and an upscale restaurant. Using a promotion such as a coupon does not fit into the position that the hotel would like to create. All the factors of the marketing mix must be coordinated to effectively position a product.

________ can be broken down into two basic types: probability and nonprobability.

Sampling

You are starting a business and as part of your business plan you need to develop a break-even analysis. Your fixed costs (overhead) associated with your store are $1,000,000 annually, and your selling price per item is $2,500. If you have a labor cost of $500 per unit, marketing costs of $250 per unit, and other variable costs of $500 per unit, what is your break-even point of sales?

The break-even point is the sales volume needed to achieve a profit of zero. The formula for the break-even point is fixed costs divided by the unit contribution margin (selling price per unit − variable costs per unit). Taking $1,000,000 and dividing by $1,250 ($2,500 sales price − $1,250 variable costs) gives you a break-even sales number of 800 units.

You just saw an advertisement in the newspaper for a very inexpensive big screen television on sale at a local department store. The ad implies the TV has all the features that a customer would want in that type of TV. You get to the department store and the television that is on display that matches the price does not look like the TV in the ad, nor does it have the functions that you would expect in a big screen TV. The salesperson tells you that you should look at the model staged next to the model on sale, which has all the features you are looking for, but is $200 more. What do you think the pricing strategy is that this company used in this instance?

This is an example of deceptive pricing. The company has advertised a low price to entice customers into the store, and then when the customers see that the product does not meet their needs and/or wants, salespeople try to get the customer to buy a higher priced product. The consumer can complain to the Federal Trade Commission (FTC) about this deceptive pricing.

Marketing strategy becomes more accountable when organizations base decisions on analytics.

True

Firms that market the same product to multiple regions with different preferences may need to tweak the product to ensure that it meets a need unique to each segment. This represents what type of targeting strategy?

a differentiated marketing strategy

Import/export transactions between the United States, Mexico, and Canada have been made easier by the

absence of tariffs.