Marketing 210 Exam 1

what are some examples of behavioral segmentation?

(HOW?) loyalty to products, buying what on certain occasions, usage rate of products,

How do you calculate a basic customer lifetime value?

(How often you shop and buy the item)X(How much money spend each time)X(How long you will be a customer)

What are some examples of Demographic Segmentation?

(WHAT?) Gender, Income level, age, occupation, marital status.

what are some examples of geographic segmentation?

(WHERE?) geographic locations change the way people feel about advertising and products. geographically based cultures, languages, and mannerisms.

What are some examples of Pyschographic Segmentation?

(WHO?) lifestyle, social class, anything that affects the persons pattern of living.

what are the levels of the product?

1st level: what is the customer really buying? what is the core benefit the company wants to provide the customer. 2nd level: company needs to create a product that satisfies level 1. 3rd level: company now has a product, needs to provide service and ad ons for that product.

59. ________ involves the use of a successful brand name for new or modified products in a new category.

A brand extension

58. Which of the following is an advantage offered by co-branding?

Co-branding allows a company to expand its existing brand into a category it might otherwise have difficulty entering alone.

what are generic strategies for marketing

Cost leadership:Must be good at driving down costs and passing along those cost savings Market Focus: - Must be good at understanding the needs of a specific market and serving them best differentiation: Must be good at creating, highlighting and branding product differences despite close competitors

Why is Customer Loyalty important?

Customer loyalty is important because if your customers are loyal, they will not only use your product more often, but they are more likely to tell other people about your product as well.

what are the key variable types used to segment a consumer market?

Geographic, demographic, psychographic, behavioral

47. Which of the following questions is most important for product designers to consider while developing a product?

How would customers use and benefit from the product?

what are the 4 key characteristics of services that affect their marketing?

Intangibility- services cannot be seen, tasted, heard, or smelled before purchase. Inseparability- services cannot be separated from their providers. variability- quality of services depends on who provides them and when where and how. Perishability- services cannot be stored for later sale or use.

What are some potential relationship building tools?

Loyalty programs, anything that puts the customer in a place where he or she believes the company values him or her specifically.

what is the definition of the Marketing Concept?

Marketing concept: People buy things that fulfill a variety of their specific value needs - from price to features to convenience to service to brand associations and more. These values change over time both for individuals and for society. Companies must know what particular group is their target market, they must have a customer focus, and they must "sense and respond" to that target market.

What is marketing about?

Marketing is The outward facing function of a company. Who is the customer? What value (products, services, etc.) do we provide them? How do we want them to think about us?

what are the 5 criteria for a good segmentation method?

Measurable, Accessible, Substantial, differentiable, actionable.

what do mission statements do?

Mission statements state the organizations purpose.

What is the definition of a Demand

Needs develop into wants, which then develop into demands when they are backed by buying power.

42. Which of the following is true with regard to the same for less value proposition?

Offering the same for less can be a powerful value proposition because everyone likes a good deal.

what are the stages of the product life cycle?

Product development, introduction, growth, maturity, decline.

what are the 4 P's of marketing

Product, promotion, price, place. Product- has to have variety, quality, design, service Promotion-advertising, personal selling, public relations price- list prices, discounts, payment period, credit terms place-channels, coverage, inventory, transportation

What are the 5 common marketing orientations (Philosophies) upon which competitive advantages are built.

Production concept Product concept selling concept marketing concept societal concept

What are customer Managed relationships

Relationships that involve the customer, such as using online social networks

what is ROI- Return on Investment

Return On Investment- how much return are you going to get on your investment in advertising.

what is the definition of Customer Satisfaction

Satisfaction is the difference between the expectations you had for the product and the benefits you actually received.

How do you increase customer equity?

Stronger awareness with positive beliefs and perceptions Stronger demand, e.g. growth in the market in general A target market group that has greater CLV (more time to purchase, more regular purchases, more purchasing power)

what are the differences between TAM (total available market), SAM (served available market), and Target market.

TAM is the entire market category for your product. SAM is the people your company would be able to serve based on company limitations. target market is what companies with limited resources use to extremely focus their efforts effectively.

what is Targeting?

Targeting is deciding what segments you want to serve and in what markets.

what is the idea behind the "Share" of the customer?

The % of the purchases of your product made from an individual customer in your product market.

why is the Customer Perceived value important?

The CPV is important because it allows marketers to focus on specific classes of people and pinpoint what they believe to be important and use that information to build a better product and better customer relationships.

What is CRM as an information systems tool?

The CRM tool could be a software site, or any program that allows you to gain and keep new potential customers. Spot Devices uses "Salesforce"

What are the components of swot analysis?

The components of the Swot analysis chart are: Strengths: internal capabilities that help a company reach objectives. weaknesses: internal limitations that interfere with company objectives opportunities:external factors that the current and emerging company may be able to exploit to its advantage. threats: external factors that challenge a companies performance.

what is customer equity?

The customer equity is the customer lifetime value, for all current and potential customers shopping at the business combined.

What is the definition of a need

The customer is in a state of deprivation- Physical: food clothing warmth safety Social: belonging and gaining affection individual: knowledge and self expression.

What is a Big M Marketing policy?

Using the same table and policy to create an image of a product, but using it across a range of different products or services.

What are personal customer relationships

You have TRUST, or connection with, someone who provides a service.

What is a Brand customer relationship?

You're buying a particular experience, quality or style that you know you'll get with the brand. You TRUST it to deliver.

what are different types of customer relationships?

a customer relationship revolves around business interactions mixed with TRUST. there are 5 types

40. Which of the following states the product's membership in a category and then shows its point of difference from other members of the category?

a positioning statement

what can be thought of as products in marketing?

actual products, people, places, organizations, and ideas.

what is a unique selling proposition

as a company, you need to identify a single attribute or benefit you are absolutely NUMBER 1.

The definition of marketing as a process of building relationships and capturing value is.

basically understanding what your product will provide the customer as well as how it will get to them and how to get them to re-purchase your product.

48. A ________ is a name, term, sign, symbol, design, or a combination of these, that identifies the maker or seller of a product or service.

brand

55. ________ is the differential effect that knowing the brand name has on customer response to the product and its marketing.

brand equity

What is the definition of Segmenting the market?

breaking up the total market into different categories in order to better adapt your products and marketing strategies to fit different people.

44. Marketing mix planning begins with ________.

building an offering that brings value to target customers

14. The major activity in strategic planning is ________, whereby management evaluates the products and businesses that make up the company.

business portfolio analysis

Definition of a Marketing Landscape

changes in economic conditions as well as the characteristics of the market where the business is located or selling their products.

34. Sanguine Services is a small company that uses a marketing strategy in which its limited resources are employed to target a large share of two small market segments. Sanguine most likely uses which of the following marketing strategies?

concentrated marketing

what are some ways products are grouped

convenience products, shopping products, special purchase products, unsought products.

45. Product planners need to consider products and services on three levels. Each level adds more customer value. The most basic level is the ________, which addresses the question, "What is the buyer really buying?"

core customer value

9. Which of the following refers to the total combined customer lifetime value of all of the company's current and potential customers?

customer equity

what is the customer lifetime value?

customer lifetime value is how much a customer is worth to a company.

12. Sally recently purchased Brand X lotion. In comparing her perception of how the lotion made her skin feel and look to her expectations about Brand X lotion, Sally was measuring her level of ________.

customer satisfaction

13. The extent to which a product's perceived performance exceeds a buyer's expectations is called _______ .

customer satisfaction

11. FedEx offers its customers fast and reliable package delivery. When FedEx customers weigh these benefits against the monetary cost of using FedEx along with any other costs of using the service, they are acting upon ________.

customer-perceived value

7. ________ is determined by a customer's evaluation of the benefits and costs of a market offering relative to those of competing offers.

customer-perceived value

what sort of value can product packaging add?

customers buy product also based on what they see. first impressions are important.

what is brand equity?

customers having a good view of a companies product or service based on a brand name itself, and not the product or service.

3. When backed by buying power, wants become ________.

demands

25. Delta Motorworks markets its cars based on the age, gender, and income of its customers. Which of the following types of market segmentation is evident here?

demographic segmentation

36. GamaPix makes point-and-shoot cameras and handycams for amateur photographers and hobbyists. It also has a separate line of cameras dedicated to professional photographers. Additionally, it designs separate offers for each segment. Which of the following marketing strategies does GamaPix most likely use in this instance?

differentiated marketing

17. Amor, a successful brand of women's clothing, recently introduced a line of fitness equipment. This is an example of ________.

diversification

20. Market segmentation can be best described as the process of ________.

dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate products or marketing programs

23. An American airline company started a grocery chain in Australia. This is an example of product development.

false

60. Service inseparability means that the quality of services depends on who provides them, as well as when, where, and how they are provided.

false

what are the basic steps to create a positioning statement?

find what your company is good it, and create ways to ensure that is the image of your company in the minds of current and potential customers.

37. Which of the following stages of the PLC is characterized with the same level or slightly higher level of promotional expenditures in an attempt to respond to increasing competition?

growth

what are basic value propositions

how much benefit does your product or service provide compared to competitors?

What is differentiation?

in order to keep your company relevant, you need to adjust your product and marketing scheme every once in awhile. you can change: Products Services channel (Direct sales) people image

32. A segment is less attractive if ________.

it already contains many strong and aggressive competitors

what does a positioning map convey?

it shows what products you provide are in the spectrum of price and quality/functionality.

50. Titan Inc., an automobile manufacturer based in Utah, recently added two new models to its existing line of sedans in order to increase profits and satisfy dealers. This is an example of ________.

line filling

5. A(n) ________ is the set of actual and potential buyers of a product or service.

market

4. A ________ is some combination of products, services, information, or experiences provided to consumers to satisfy a need or want.

market offering

16. Phoenix, a popular coffee shop chain in North America, recently opened 400 stores to cater to its rapidly increasing number of patrons. This exemplifies ________.

market penetration

21. Teenagers are expected to respond in a similar way to a set of marketing efforts. In other words, this group represents a ________.

market segment

10. An organic farmer has identified three distinct groups that might be interested in his products: vegetarians, health-conscious individuals, and people identified as trendsetters who try out new products in the market before others. These three groups are examples of ________.

market segments

24. When marketers at Fair & Leigh Inc. selected the Millennials, a demographic group that includes college students, as an untapped group of potential customers for their new line of products, they were engaging in ________.

market targeting

19. The marketing management philosophy that holds, that achieving organizational goals depends on determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than do competitors, is called.

marketing concept

6. The set of marketing tools a firm uses to implement its marketing strategy is called the

marketing mix

43. Which stage in the PLC normally lasts longest and poses strong challenges to marketing managers?

maturity

28. When the size, purchasing power, and profiles of a market segment can be calculated, the market is ________.

measurable

15. Orion Inc. operates in many industries, including pharmaceuticals and food products. The company's goal is to create "abundant and affordable food for all and a healthy environment." This represents Orion's ________.

mission statement

39. When it first opened stores across the United States, Bateman's, an office supply chain store, had the best product selection, the best service, and the lowest prices compared to other office supply chain stores. As a result, Bateman's captured a significant chunk of the market in the short run. Which of the following positioning strategies did Bateman's most likely use?

more for less

what is Undifferentiated targeting?

not using targeting segmentation to collect results from the whole entire market.

what is Concentrated or niche targeting

one company goes for a big share of a small portion of the market.

what is differentiated targeting? (Segmented marketing)

one company targeting several versions of the same market by providing different products that are all related.

definition of a market

people or organizations with needs or wants and the ability and willingness to buy

38. ________ shows consumer perceptions of a company's brands versus competing products on important buying dimensions.

perceptual positioning maps

54. Alex Smith rents storage space to college students who go home for the summer but do not want to haul all of their property home and back. The business is profitable during the summer months, but when the storage space is unoccupied in the off-season, Alex loses money. Which of the following characteristics of service is most likely the source of Alex's problem?

perishability

57. An increasing number of retailers and wholesalers have created their own ________, also called store brands.

private brands

56. Which of the following is the lowest level on which marketers can position their brands in target customers' minds?

product attributes

18. Sunny Brews is a coffeehouse chain based in Boston. It recently introduced Eva, a mild roast, which became immensely popular. This exemplifies ________.

product development

41. Chronos Inc. designs and markets different brands of cycling watches. Each brand has a single unique feature: the Chronos Cosmos has a heart rate monitor, the Chronos Acumen is designed for older cyclists who prefer a large display, and the Chronos Aegis has a GPS function. Which of the following is evident here?

product differentiation

49. ________ involves adding more items within the present range of a product line.

product line filling

51. Proton Corp. is an automobile manufacturer known for producing efficient, durable, and low-priced cars. Recently, the company launched a new range of luxury cars to broaden its market appeal and to add prestige to its existing line of cars. This is an example of ________.

product line stretching

1. Which of the following marketing management orientations focuses primarily on improving efficiencies along the supply chain?

production concept

35. Texas Instruments, one of the first producers of handheld calculators, put a great deal of effort into expanding production of calculators to drive down the cost and thus expand the market. This is most indicative of the __________ concept:

production concept

31. Different soft drinks target different personalities. This is an example of ________ segmentation.

psychographic

26. Marketers who use ________ often segment their markets by consumer lifestyles and base their marketing strategies on lifestyle appeals.

psychographic segmentation

27. An American cola-manufacturing company that primarily targets rebellious and adventurous people most likely uses ________ segmentation.

psychographic segmentation

what are the two different perspectives of quality?

quality can mean either quality level: how good is it? or Quality consistency: is the product or service the same consistently?

22. ________ measures the profits or other company value generated by investments in marketing activities.

return on marketing investment

53. The customers of Parry's Hair Salon have noticed that the quality of a haircut depends on who provides it as well as when, where, and how the service is provided. Which of the following characteristics of service is evident in this instance?

service variability

8. The portion of the customer's purchasing that a company gets in its product categories is known as ________.

share of customer

46. Erica wants to replace her old washing machine with a new one. In order to get the maximum value for her money, she plans to spend substantial time and effort in gathering information and making product comparisons before making the actual purchase. In this instance, Erica is planning to buy a ________ product.

shopping

29. A market segment that is large or profitable enough to serve is ________.

substantial

30. Once the marketer has developed the appropriate segmentation bases for analyzing the overall market potential, the next step, _________, is critical because it assists in focusing the firm's limited resources on providing value to a select group of customers.

targeting

What is Customer Perceived value?

the CPV is the Perceived benefits divided by the costs.

What is the product market expansion grid

the cross grid between markets and products existing products new products existing markets new markets

what is the definition of a want

the customer has needs that are then formed and shaped by culture and individual personality.

What is the Market offering concept?

the market offering is the marketing of not only the specific product, but everything that comes with it. such as if you buy a five dollar beer at a bar, you also get the atmosphere of the bar +Friends at the bar.

what is positioning?

the place a product lies in the mind of consumers and potential consumers.

what is a value chain?

the process by which products are moved through the business cycle. including topics like: Inbound logistics and operations.

What is a CRM as a Process?

the process by which you build a loyal customer. Starts with grabbing attention, gaining acquisition, converting them to only your product, ensuring they stay with your company, and keeping said customer.

What is the definition of a market?

the set of actual or potential buyers of a product or service who share a particular want or need.

33. ________ refers to a market-coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer.

undifferentiated marketing

What is a small M Marketing policy?

using tools to create an image about the product or service you sell, as well creating value for the customer.

2. ________ are human needs that are shaped by culture and individual personality.

wants

what is co branding?

when two companies work together to better market a product or service.

52. A reputed cosmetic company in New York City added new product lines in order to increase its business. In other words, it ________.

widened its product mix

What is an Exchange customer relationship?

you get the product or service you pay for and occasionally buy the same product from habit.

what are some criteria you would use to evaluate market segments to select which to target.

you want to access your company for its ability to satisfy the market. as well as study the amount and type of competitors your company will face in that market.