Marketing Exam 3
Marketing Intelligence: The systematic collection and analysis of publicly available information about competitors and trends in the marketing environment. What is not a goal of marketing intelligence?
To reports suspicious activities to the government
How does traditional marketing research differ from online listening? (Real Marketing 4.1- Listening Online: Sophisticated Web Research or Just a Little Bit Creepy?)
Traditional marketing research provides more logical consumer responses to structured and intrusive research questions, whereas online listening provides the passion and spontaneity of unsolicited consumer opinions.
Companies set prices by selecting a general pricing approach that includes one or more of three sets of factors. The cost-based approach means _____.
cost-plus pricing, break-even analysis, and target profit pricing
Common _____ objectives include survival, current profit maximization, market share leadership, and product quality leadership?
pricing
Responding to a competitor's price cut with your own price cut can possibly result in what two situations?
1) Price wars 2) Cheapen the image of your product 3) Erode profits
What are the four pricing clues the researchers outlined?
1) Sales signs - Placing a "Sale" sign beside a price (without varying the price) can increase demand by more than 50% Why do people fall for this? The signs are accurate most of the time. And, people wise up quickly if sale signs are improperly used. 2) Prices ending in 9. Prices ending in 9 signals a bargin. Example: Raising a price from $39 from $34 for a dress in a clothing store increased sales by 33%. Raising the price from $34 to $44 yielded no difference in demand. 3) Signpost Pricing (Loss-leader Pricing). Gauge a store overall pricing by prices of product they do know accurately, such as, a 12-pack of Coke. Example: Best Buy prices newly released DVD below wholesale prices to increase the store traffic, and therefore, customers buy other higher-margin items 4) Pricing-Matching Guarantees. Meet or beat the competitor's price. Customers perceive that overall pricing is lower. Manufactures introduce brand variants (so that exact product cannot be found at a different store.) Can be a warning to competitors - you cut your price and we will to, which actually leads to higher prices.
Where can marketers obtain needed information?
All the answers are correct
Name the three research objectives, the three research approaches, and match the research approach to the objective.
Correct Exploratory Objective = Observation Descriptive Objective = Survey Causal Objective = Experiment
In evaluating the results of primary or secondary research, which question is not one of the four you would ask?
Is it costly?
In evaluating the strengths and weaknesses of research contact methods, which method is rated the lowest in response rate?
When Yamaha Motorcycles provide consumers with choices of saddlebags, handle bars, and seats for its bikes, Yamaha is engaged in ________.
Optional pricing
_________ is a set of buyers sharing common needs and characteristics that the company decides to serve.
Target market
Sanguine Services practices a marketing strategy where its limited resources are used to go after a large share of two small niche segments. Sanguine practices which one of these strategies?
concentrated
A product's position is based on important attributes as perceived by ________.
consumers
The New Age Art Gallery has three admission prices for students, adults, and seniors. All three groups are entitled to the same services. This form of pricing is called _____.
customer-segmented pricing
Which of the following is often the hardest step in the marketing research process to take?
defining the problem and research objectives
What method of segmentation is most popular and is closely related to needs, wants, and usage rates?
demographic
Dodger Stadium in LA charges different prices for seats in different areas of the ballpark, even though the stadium's costs are the same. What is this form of pricing called?
location
Marketing information has no value until it is used to ________.
make better marketing decisions
Dividing a market into distinct groups with distinct needs, characteristics, or behavior who might require separate products or marketing mixes is __________________.
market segmentation
Companies bringing out new products face the challenge of setting prices for the first time. In addition to market-penetration pricing, what is the other alternative?
market-skimming pricing
In class, we developed the following statement, "To (target segment and need) our (brand) is (concept) that (point-of-difference)". What is this statement called?
positioning statement
According to Kotler, the marketing mix element that produces revenue is ____; ____ is one of the most flexible elements of the marketing mix.
price;price
In Lima, Peru, 20 stores selling the same quality and brand of wheat products are located on one street. An individual seller cannot charge more than the going price without the risk of losing business to the other stores that are still selling the product at its uniform price. Promotions, product development, and market research is of little use to this product. This is an example of what type of market?
pure competition
Caterpillar charges 20 to 30 percent more than competitors for its heavy construction equipment based on superior product and service quality. This is an example of _____.
value added and differentation