Marketing Final Exam
price elasticity of demand =
% change in quantity demanded / % change in price
Target Market Selection Process
1. Identify the appropriate targeting strategy 2. Determine which segmentation variables to use 3. Develop market segment profiles 4. Evaluate relevant market segments 5. Select specific target markets
The primary value that a marketer expects to receive from a customer in an exchange relationship is A) the price charged for the product. B) customer satisfaction. C) references to other potential customers. D) quality merchandise that meets expectations. E) few returns of the merchandise purchased.
A) the price charged for the product
Define the characteristics that distinguish e-marketing from traditional marketing.
Addressability -The ability of the marketer to identify customers before they make a purchase. Interactivity - The ability of customers to express their needs and wants directly to the firm in response to its marketing communications. Accessibility -The ability for marketers to obtain digital information. Connectivity -The ability for consumers to be connected with marketers along with other consumers. Control -The customer's ability to regulate the information they view as well as the rate and exposure to that information
Characteristics of Online Media include
Addressability, Interactivity, Accessibility, Connectivity, and Control
Define the characteristics that distinguish e marketing from traditional marketing.
Addressability-The ability of the marketer to identify customers before they make a purchase.Interactivity- The ability of customers to express their needs and wants directly to the rm in response to its marketing communications.AccessibilityThe ability for marketers to obtain digital information.ConnectivityThe ability for consumers to be connected with marketers along with other consumers.ControlThe customer's ability to regulate the information they view as well as the rate and exposure to that information
accessibility
Allows consumers to find information about competing products, prices, and reviews to become more informed about a firm and the relative value of its products.
The marketing Mix is built around the A) product. B) company C) customer. D) employee. E) retail outlet.
C) customer
Sonic communicates with its customers through ____, which is the most popular social networking site in the world.
Connectivity
The ability for consumers to be connected with marketers along with other consumers
Accessibility
The ability for marketers to obtain digital information
Interactivity
The ability of customers to express their needs and wants directly to the firm in response to its marketing communications
Addressability
The ability of the marketer to identify customers before they make a purchase
Control
The customer's ability to regulate the information they view as well as the rate and exposure to that information
Identify the four major categories of segmentation of variables for consumer products, and give three examples of each.
The four major categories of segmentation variables to be used for consumer markets include demographic, geographic, psychographic, and behavioristic variables. Three examples of demographic segmentation include: age, gender, and race. Three examples of geographic segmentation include: region, city size, country size. Three examples of psychographic segmentation include: personality attributes, motives, and lifestyles. Three examples of behavioristic segmentation include: volume usage, end use, and benefit expectations.
marketing research
The systematic design, collection, interpretation, and reporting of information to help marketers solve specific marketing problems or take advantage of marketing opportunities
What is meant by the term marketing concept, and what departments of a company does it affect?
The term marketing concept refers to the managerial philosophy stating that "an organization should try to provide products that satisfy customers' needs through a coordinated set of activities that also allows the organization to achieve its goals". The departments that are affected by this philosophy = production, finance, accounting, human resources, and marketing - they have to work together.
A company sometimes defines a total market as its target market.
True
Accessibility refers to a customer's ability to access information about products, such as colors, prices, and reviews.
True
One condition for effective segmentation is that at least one segment must have substantial profit potential.
True
Refer to Scenario 10.2. If the Morningside Church wants to provide its members with a venue to read what other people think about its ideas, worship style, and community services, and to share their own ideas, it could use ______. Those who would most likely want to simply read the opinions of others are _____, while those who would like to also share their own ideas, are ____.
a blog; spectators; creators
Strategic Business Unit (SBU)
a division, product line, or other profit center within the parent company.
To communicate with their employees, companies may use wikis and podcasts. a. True b. False
a) True
Generally speaking, individuals who are unemployed would not be considered a target market for lawn care services because Select one: a.they would not have the ability to purchase such products. b.they would not desire such products.c.they would not be willing to purchase such products. d.they would not be authorized to purchase such products. e.such markets are narrowly defined geographically.
a) they would not have the ability to purchase such products
The ability to obtain digital information is referred to as
accessibility
The ability of a marketer to identify customers before they make a purchase is called
addressability
E-marketing includes the use of mobile phones, but not digital outdoor marketing devices. a) True b) False
b) False
The product variable of the marketing mix can include all of the following except a) creation of brand names b) consumer perception of the product price c) development of product packaging d) warranty issues e) repair services.
b) consumer perception of product price
Mothers Against Drunk Driving (MADD) is a group that works to change attitudes and laws about driving under the influence of alcohol. MADD primarily markets a)goods b)ideas. c)services. d)political figures.
b) ideas
Which of the following refers to the strategic process of distributing, promoting, pricing products, and discovering the desires of customers using digital marketing. a) digital orientation b) digital media c) electronic marketing d) digital electronics e) electronic processing
c) electronic marketing
Scenario 6.1 Use the following to answer the questions. Lil' Angels Kids Spa offers various treatments designed to appeal to the younger customer. Treatment options include manicures, pedicures, facials, tea parties, and dress up photos. Parents can even purchase a birthday party package. Currently, Lil' Angels offers its services only to girls under the age of 14. Originally begun in Delaware, Lil' Angels is considering opening its spa/salons in other parts of the country and is planning to expand its offerings to girls aged 14 to 17. The company realizes that some changes may be needed. For example, management wants to find out if the older girls will be interested in their birthday party and tea party services. Refer to Scenario 6.1. What method should Lil' Angels use to forecast sales in new regions? Select one: a.Regression analysis b.Correlation method c.Market test d.Sales force survey e.Time series analysis
c) market test
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
Coca-Cola entices consumers to their website through contests and games, but they cannot force people to visit their website due to the ____ characteristic of online media.
control
Use the following to answer the questions. Regardless of their age, income, or gender, an increasing number of people are turning to the Internet to search for information, products, people, news, maps, entertainment, and whatever else you can think of. At the forefront of this massive search is Google; accompanying Google are social media sites such as Facebook, Twitter, and Pinterest. Google has developed methods for making information useful to all types of Internet users. Some users want to critique the information, some just want to read the information, and some want to be the information writers. Facebook, originally used as a social networking application, is now picked up by retailers, brands, celebrities, churches, political campaigns, and non-profit agencies. Twitter is a more real-time site and, as is Pinterest, a more personally-affiliated medium. Refer to Scenario 10.2. Google can give instructions on how to construct almost anything, from a house to a science experiment. As for online applications, you can learn anything from developing your own website to starring in a video. Google's "how to" features would most likely appeal to
creators
A market orientation requires the
e "organization wide generation of market intelligence pertaining to current and future customer needs, dissemination of the intelligence across departments, and organization wide responsiveness to it".
Scenario 6.1 Use the following to answer the questions. Lil' Angels Kids Spa offers various treatments designed to appeal to the younger customer. Treatment options include manicures, pedicures, facials, tea parties, and dress up photos. Parents can even purchase a birthday party package. Currently, Lil' Angels offers its services only to girls under the age of 14. Originally begun in Delaware, Lil' Angels is considering opening its spa/salons in other parts of the country and is planning to expand its offerings to girls aged 14 to 17. The company realizes that some changes may be needed. For example, management wants to find out if the older girls will be interested in their birthday party and tea party services. Refer to Scenario 6.1. Lil' Angels Kids Spa is currently using a(n)____ targeting strategy. Select one: a.differentiated b.exclusive c.undifferentiated d.selective e.concentrated
e) concentrated
A market orientation is an organization-wide effort that includes all of the following activities except
focusing on the marketing department only.
Population density and city size are ____ variables used for market segmentation.
geographic
Crisco is an all-vegetable shortening that helps cooks around the globe create better-tasting meals for their families. The company is part of Procter & Gamble and Crisco was developed in 1911. They released their first print advertisement in 1912 and focused on how Crisco could be used as a replacement to lard and butter. Crisco is still a dominant brand today, and many families have the familiar blue tub of Crisco in their pantry as well as a container of liquid vegetable oil to use when cooking. Crisco believes its market is _______, where individuals have similar needs for the product. It therefore utilizes a _________ targeting strategy as it can incorporate a single marketing mix and direct it at the entire market for its products.
homogeneous, undifferentiated
Demographic variables such as income and occupation, as well as how people spend their time and the importance of things in their surroundings, are all factors considered in ____ segmentation.
lifestyle
A group that has the willingness, ability, and authority to buy a product is a
market
Any group of people who, as individuals or as organizations, have needs for products in a product class and who have the ability, willingness, and authority to buy such products is a(n)
market
The total volume of a product, for all firms in an industry, that would be purchased by specific customer groups within a specified time period at a given level of industry-wide marketing activity, is the
market potential
Which of the following sales forecasting techniques would generally be most suitable for estimating sales of a new product?
market tests
The internet is sometimes referred to as a ______ medium because users determine which websites they are going to view; the marketer has only limited ability to control the content to which users are exposed, and in what sequence.
pull
Market segment profiles are used to describe _____________ members of a market segment, and to explain ______________members in separate market segments.
similarities among; differences between
Marketing is the process of
creating, distributing, promoting, and pricing products to facilitate satisfying exchange relationships with customers and to develop and maintain favorable relationships with stakeholders in a dynamic environment.
What is meant by the term marketing concept, and what departments of a company does it affect?
- A managerial philosophy that an organization should try to satisfy customers needs through a coordinated set of activities that also allows the organization to achieve its goals.- Departments affected = production, finance, accounting, human resources, and marketing - they all must work together.
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?
Behavioristic
____ strategy determines the means for utilizing resources in the functional areas of marketing, production, finance, research and development, and human resources to achieve the organization's goals.
Corporate
Consumers who act as ____ are becoming increasingly important to online marketers as a conduit for addressing consumers directly.
Creators
After a firm has identified an appropriate targeting strategy, the next step in the target market selection process is
Determine which segmentation variables to use
Making modifications to packaging or brand names involves the ____ component of the marketing mix A. price B. promotion C. market D. distribution E. product
E. Product
Intuition and expediency are primary characteristics of which of the following sales forecasting methods?
Executive judgment
An analysis of ____ examines internal factors that give the organization certain advantages and disadvantages in meeting the needs of its target markets.
strengths and weaknesses
Electronic marketing, or e-marketing, refers to
the strategic process of distributing, promoting, pricing products, and discovering the desires of customers using digital media and digital marketing.
Walmart sells numerous products, including packaged food, produce, automotive maintenance services, eyeglasses, clothing, and toys. Walmart advertises itself as a store where "we save people money so they can live better," focusing on its low prices as the customer's most important need. Walmart's advertising appears to use a(n) _____________ strategy to a market that is ____________ .
undifferentiated; homogeneous
The use of marketing research is
widespread throughout business and nonprofit organizations.