MGMT32400 - 2022 Fall exam 1

________ show(s) consumer perceptions of a company's brands versus competing products on important buying dimensions.

Perceptual positioning maps

________ consists of arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers

Positioning

________ occurs when a company lengthens its product line beyond its current range.

Product line stretching

________ 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

All of the following are disadvantages of test marketing EXCEPT that test marketing________. A) is typically expensive B) can be time consuming C) enables competitors to gain advantages D) encourages dishonesty among participants E) fails to guarantee product success in the market

D) encourages dishonesty among participants

________ involves actually distinguishing the firm's market offering to create superior customer value

Differentiation

________ is the practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations

Micromarketing

________ is the act of obtaining a desired object from someone by offering something in return.

Exchange

Marketers usually limit their segmentation analysis to only one major variable.

False

Unsought products are products that the customer usually buys frequently, immediately, and with a minimum of comparison and buying effort

False

________ segmentation has long been used in clothing, cosmetics, toiletries, and magazines

Gender

Which of the following is true with regard to brand equity?

High brand equity provides a company with many competitive advantages

Which of the following statements best explains why idea screening may be the most important step of new product development?

It saves the company money in product development costs by going ahead with only the product ideas that are likely to be profitable.

Which of the following is NOT an accurate description of modern marketing? A) Marketing is the creation of value for customers. B) Marketing involves managing profitable customer relationships. C) Marketing emphasizes selling and advertising exclusively. D) Marketing involves satisfying customers' needs. E) Marketing is building value-laden exchange relationships with customers.

Marketing emphasizes selling and advertising exclusively.

Which of the following is true with regard to products? A) The quality of products is far more difficult to measure than that of services. B) Products do not include experiences, organizations, persons, places, and ideas. C) Products are not meant for sale in the market. D) Products include services, events, persons, places, organizations, ideas, or a mixture of these. E) Products refer to only those activities that are essentially intangible

Products include services, events, persons, places, organizations, ideas, or a mixture of these

Why are customers often considered the most important sources of new product ideas?

The company can analyze customer questions and complaints to find new products that better solve consumer problems.

Which of the following is the reason a company may choose not to focus on the largest, fastest-growing segments?

The smaller segments may be more profitable to the firm

Which of the following is true of the Millennials? A) They are the children of baby boomers and were born between 1981 and 1996. B) They control an estimated 70 percent of the disposable income in the United States. C) They have reached their peak earning and spending years. D) They were the first to grow up in the Internet era. E) They are less immersed in technology than Gen Xers

They are the children of baby boomers and were born between 1981 and 1996.

In 1985, the Coca-cola Company made a classic marketing blunder with its deletion of its popular Coca-Cola product and introduction of what it called New CokeAnalysts now believe that most of the company's problems resulted from poor marketing research. As the public demanded their old Coke back the company relented and reintroduced Coca-Cola Classic (which has regained and surpassed its former position) while New Coke owns only 0.1 percent of the market Which of the following marketing research mistakes did Coca-Cola make ?

They defined their marketing research problem too narrowly

When using a niche marketing strategy, a firm goes after a large share of one or a few smaller segments.

True

Which of the following statements is true of the new product development process?

Under the business analysis stage, if the new product satisfies the company's objectives, the product then moves to the product development stage.

The best business portfolio is the one that ________

best fits the company's strengths and weaknesses to opportunities in the environment

Marketing mix planning begins with ________

building an offering that brings value to target customers

Customers can be classified into four relationship groups based on their profitability and projected loyalty. Which customer type is associated with high profitability and long-term loyalty?

butterflies

According to the five-step model of the marketing process, which of the following is the final step in creating value for customers?

capturing value from customers to create profit and customer equity

Fifty percent of the market is in the hands of Company A, 30 percent is in the hands ofCompany B, 15 percent is in the hands of Company C, and the remaining 5 percent is in the hands of Company D. Based on these hypothetical numbers, Company B is the market________

challenger

Companies know they cannot appeal to all buyers in the marketplace, or at least not in the same way. Reasons for this include all of the following EXCEPT _______ A) buyers are too numerous B) companies vary widely in their abilities to serve different market segments C) buyers are varied in their needs and buying practices D) companies need more information to offer the right products to the right customers E) buyers are widely scattered

companies need more information to offer the right products to the right customers

Gaining ________ requires delivering more value and satisfaction to target consumers than competitors do.

competitive advantage

Kodak's film business didn't lose out to direct competitor Fuji film; it lost out to Sony, Canon, and other digital camera makers, along with a host of digital image developers and online image sharing services. This is an example of ________

competitor myopia

What are the two dimensions of product quality?

consistency and level

Elisandra, a marketing manager at a regional chain restaurant, has decided to organize a contest calling for customers to create commercials for the restaurant. Winning entries will be posted on the organization's home page. Elisandra's plan is an example of ________.

consumer-generated marketing

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

core customer value

Due to dropping sales, a company that manufactures soaps begins to sell them to restaurants and hotels to extend their product's life. The soap manufacturer is in the________ stage of PLC.

decline

GamaPix makes point-and-shoot cameras and handy cams 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? A) mass marketing B) differentiated marketing C) individual marketing D) local marketing E) direct marketing

differentiated marketing

A good brand name should most likely be ________.

distinctive

Double Drill Inc. segments its foreign markets by per capita income. This firm segments the international markets based on ________

economic factors

Which of the following is NOT one of the major variables used in segmenting consumer markets? A) demographic B) behavioral C) ethical D) geographic E) psychographic

ethical

Many companies today are localizing their products, advertising, promotion, and sales efforts to fit the needs of individual regions, cities, and neighborhoods. This is an example of ________

geographic segmentation

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

Service companies can differentiate their service delivery by ________.

having more able and reliable customer-contact people

New product development starts with ________.

idea generation

From a(n) ________ point of view, Pepsi might see its competition as Coca-Cola, DrPepper, 7UP, and the makers of other soft drink brands. From a(n) ________ point of view, however, the customer really wants "thirst quenching."

industry; market

Using ________ segmentation, marketers form segments of consumers who have similar needs and buying behaviors even though they are located in different countries

intermarket

A product's ________ identifies the product or brand, describes several things about the product, and promotes the brand.

label

Companies use secondary data, personal experience, and word of mouth to________

learn about their competitors' strengths and weaknesses

The major product line decision involves product ________, the number of items in the product line.

line length

According to the Boston Consulting Group approach, ________ provides a measure of market attractiveness.

market growth rate

Ron and Gail plan to lower Fun-Spot's prices in an effort to encourage customers to stay longer, visit more often, and spend more money during each visit. What type of strategy are Ron and Gail planning?

market penetration

Dividing the market into various groups of customers that a company may serve is called ________

market segmentation

Apple's iPod has been called "one of the greatest consumer electronics hits of all time." iPods have been sold in huge numbers, and Apple captures a large share of the music player market. This success has attracted many large, resourceful competitors.The iPod is in the ________ stage of the product life cycle.

maturity

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

maturity

Dan has been directed to study the forces close to a company that affect its ability to serve its customers, such as the company, suppliers, marketing intermediaries, customer markets, competitors, and publics. In this instance, Dan has been directed to study the ________ of the company.

microenvironment

When a product is in the maturity stage, the company should most likely consider________.

modifying the product, market, or marketing mix

Which of the following is a significant challenge presented by the product life cycle?

new product development

Product improvements, product modifications, and original products can all be classified as ________.

new products

Malcolm Sanders, a graduate student from Boston, makes customized snowboards for local snowboarding enthusiasts. The demand for snowboards peaks during the winter months, a busy time for Malcolm. He advertises more aggressively and sells most of his snowboards around this time. Which market segmentation approach doesMalcolm most likely use?

occasion segmentation

Service ________ means that services cannot be stored for later sale or use.

perishability

Product attributes include all of the following EXCEPT ________. A) style B) design C) price D) features E) quality

price

In the marketing mix, design, packaging, services, and variety can be categorized under________

product

Consumer products refer to ________.

products and services bought by final consumers for personal consumption

The boom in online, mobile, and social media has created a new set of social and ethical issues for companies. Their greatest concern involves ________

protecting the privacy of knowing and unknowing customers

The pharmaceuticals division of Omni Healthcare holds low market share in a high-growth market. According to the BCG matrix, the pharmaceuticals division of Omni can be classified as a ________

question mark

Rachel works for a furniture company in Ireland. She is responsible for buying and selling goods at a profit to small retailers. Rachel most likely operates in a ________ market

reseller

Which figures does the company use to analyze the new product's financial attractiveness?

sales and costs

A company selling child-care products ran a television ad depicting women as being primarily responsible for childcare. Many women viewers considered this regressive, alleging that the ad failed to recognize the much more diversified role of women in today's world. This is an example of ________

stereotyping

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

substantial

Which of the following is an external source for ideas?

suppliers

Product planners need to consider products and services on three levels. At the second level, product planners must ________.

turn the core benefit into an actual product

Marketing is defined as a social and managerial process by which individuals and organizations obtain what they need and want through_________

value creation and exchange

The innovation management system approach yields two favorable outcomes: it helps create an innovation-oriented company culture, and it ________.

yields a larger number of new product ideas