MKT 600 Exam 2
strengths
'Accessible Builders Corp. specializes in designing homes that have wide hallways and walk-in showers that could accommodate the need to use a wheelchair or walker, and other amenities that allow couples to remain in their homes as they age. The company's strong value proposition has allowed it to maintain steady market share in a weak housing market. In the context of SWOT analysis, a discussion of this relative advantage would be included under
external threats
A SWOT analysis identifies problems with hurricanes, earthquakes, major snowfalls, and other natural phenomena under
exploratory research
A company has seen a decline in absolute level of sales for the last four consecutive months. The product manager asks the market research department to do a study to determine why sales have declined. The most appropriate research type would be
classical conditioning
A company wants to create an association between two stimuli: marketing information and purchase decisions. The company is relying on
cash discount
A countertop store will give customers a 10 percent discount if they pay their bills in full in 20 days; however, after 20 days they do not receive a discount. This is an example of a________.
retrenchment
A home contractor used to purchase many building lots and build spec homes (i.e., it gambled that the demand for new houses would be so high that they would sell easily). Since the real estate slowdown, it builds homes only when owners are under contract. In this case, the company is most likely pursuing a generic business strategy of
observational data
A manager wanted to learn how customers would react to some new product displays. To collect this information, she posted employees near the display and had them record how long customers looked at it, whether they picked up the item, and if they took the item with them. In this case, she is using________ for her market research.
behavioral data
A marketing manager decides to conduct descriptive research to gather information on what customers purchase, when they purchase, and how often they purchase certain products. For this purpose, the marketing manager would most likely use
secondary
A restaurant chain recently experienced a decline in hamburger sales after salmonella was discovered during a health inspection at one of the restaurants. The marketing manager was interested in how other restaurants had dealt with similar situations. Which type of data would be the most appropriate way to find answers related to this marketing problem?
establishing the research design
A soft drink company is conducting market research to determine if a new beverage will be successful. The company is in the process of determining the kind of research that needs to be done, the information needed, and the sampling plan—including the research participants. The company is in which stage of the market research process?
market development
A well-established North American delivery service wants to expand service into Central and South America. According to Igor Ansoff's Product-Market Matrix, this would be classified as a________ strategy.
penetration pricing
Abilene is the manager of a cafe and is responsible for deciding the price of dishes included on the cafe's menu. The chef of the cafe introduced a new dish, which was initially priced at $20 by Abilene, but she increased its price slowly over a period of 6 months. In this scenario, Abilene utilized a________ strategy.
usage patterns
Advertisements with messages like "Orange juice—It's not just for breakfast anymore!" or "Soup can be a delicious way to start a cold winter's day," are using segmentation by________.
durability
After Paul left the house with the burner on under a Farberware pan and it didn't cause a fire, he decided he would only buy that brand of cookware from then on. Paul was reacting to the________ of the product.
Can the segment be reached in order to deliver the value of the product, and subsequently can it be effectively and efficiently managed?
American credit card companies would like to offer their services to people in Angola. However, they are finding it difficult because of language barriers and infrastructure challenges. These issues are related to which question about market segmentation?
cultural
Americans tend to value hard work and achievement while Japanese citizens tend to value harmony and hierarchy. This shows a difference in________ factors.
selective awareness
Babette is exposed to around 2,500 messages daily. Since she cannot process, let alone retain, all those messages, she focuses on what is relevant and eliminates what is not. What psychological tool does she employ?
offering an effective and efficient methodology for categorizing products
Because LG has so many different product offerings in various types of electronics, management has found that it is helpful to use brands to keep track of products in each type. Thus, it has different brand names for its televisions, kitchen and laundry appliances, and computers. Which company brand role does this example illustrate?
extensive information search
Before Gaby bought a camera, she reviewed magazines, solicited opinions from friends and families, conducted online searches, and tested out different cameras in the store. This is an example of a(n)
price bundling
Comcast cable company wants Mickey to buy the full gamut of entertainment products, and the more he buys—digital television, premium channels, downloadable movies, local and long-distance phone service, cellular service, high-speed internet—the better the deal becomes compared to the total of the individual prices of each product. Comcast is using a________ strategy.
start-up firms to enter a market as a focus player
Concentrated target marketing is often used by________.
co-branding
Costco and Visa joined together to offer a Costco Visa card that allows users to get rebates on their purchases at Costco while expanding the reach of Visa to Costco members. This is an example of
star
Famous Foods, a major agricultural corporation, recently purchased DBM Organic Foods Co. DBM was established six years ago and has become a major supplier to restaurants in the northeastern United States. The organic herbs, vegetables, and fruit market is expected to have a double-digit growth rate over the next decade. Under the Boston Consulting Group (BCG) Growth-Share Matrix, DBM would most likely be classified as a
operant conditioning
Frito-Lay is using________ when offering free in-store samples of Doritos for the express purpose of getting people to try the product, enjoy the product, and finally purchase a bag of Doritos.
life stages
Graduating from college, getting married, and having a child all transform an individual's buying habits and are referred to as the
underpositioning
HerboLux, a company that sells herbal soaps, has failed to increase its sales, as consumers could not understand how soaps made by HerboLux were different or better than other herbal soaps available in the market. In this scenario, HerboLux is suffering from the positioning error of________.
doubtful positioning
In the context of positioning errors, when the claims made for the product or brand are not regarded as credible by consumers, it is called________.
line
International Delight coffee creamers frequently adds new flavors to its product offerings. This would be an example of a________ extension.
minimal information search
Jess notices the low-fuel light is on as he is driving home. Without any additional information, he stops at the local station on the way home to fill up. This is an example of a(n)
reference
Ji Hun's beliefs, attitudes, and behaviors are influenced by his friends. His friends can be identified as a(n)________ group.
value
Judith bought a new Coach purse for herself as a birthday present. She had never spent that much on a purse, but decided it was worth it because she would look so chic when she used it. This demonstrates how a customer's perception of________ can influence buying behavior.
brand assets
KFC is very protective of its "Seven Herbs and Spices" recipe, which, in the view of the company, gives it a significant competitive advantage over other restaurants, and will use any legal resource available to protect its patented formula. Which dimension of brand equity does this example illustrate?
dog
Lately the demand for building materials has dropped due to the slowdown in new housing construction. A lumber distributor is thinking of closing its fine wood division that sells mahogany and cherry lumber for building cabinets and other applications. Under the Boston Consulting Group Growth-Share Matrix, the fine wood division would most likely currently be classified as a
select media for use in promotion
Laurens is the marketing manager for sporting goods store, and he's preparing the company's promotional strategy for a new line of camping gear. He has developed the message for the promotion. What should he do next?
high-involvement learning
Laurie is an avid consumer of conservative news and never watches a program that conflicts with her beliefs. Susan watches both liberal and conservative outlets in order to know all the facts and opinions before forming her own. Compared to Laurie, Susan is engaged in
brand loyalty
Lawanda always prefers LaCroix flavored water. She does not waste her time considering other flavored water products, even when they are cheaper than LaCroix. Which benefit of brand equity for customers does this exemplify?
competitors being able to develop marketing strategies to counter a product launch.
Market testing of a new product can take a long time, and this can result in
price lining
Marriott has branded its entire family of accommodations based on different value propositions, supported by clearly delineated pricing strategies. Its offerings include Ritz-Carlton and JW Marriott for the most discriminating patron, Marriott and Renaissance at the next level of full service, and an array of differentially positioned brands such Courtyard and Residence Inn. This is an example where________ can occur at a level much broader in scope than individual products.
attention
Martina has developed a new product completely unlike anything else on the market. In which AIDA stage should she spend most of her investment in communication to potential customers?
competitor-based pricing
Mikio owns a driving range in a suburb of Chicago. He has taken notice of the three competitors who are located very close to his business. Mikio decides to look at the other driving ranges' pricing and then determine his best pricing strategy based on all of the information. In this scenario, Mikio is utilizing
develop the message
Mona is the marketing manager for chain of florist shops, and she's preparing the company's promotional strategy for Mother's Day. She has selected the promotion mix. What should she do next?
Explain how the product can fulfill that particular customer's needs and wants.
Nalini is a salesperson for appliances in a hardware and home goods store. She sees a customer testing the settings on a sophisticated model of washing machine. What should Nalini's next step be?
joint venture
Nickelodeon and Marriott were going to partner to create a kid-friendly chain of vacation-oriented hotels with Nickelodeon-themed water parks. Which approach to co-branding does this exemplify?
positioning
Once market segments have been defined and analyzed and target markets have been selected for development, the firm must turn its attention to creating, communicating, delivering, and exchanging offerings that have value to the target markets. This process is known as________.
online brand communities
P&G solicits meaningful interaction from customers on its website rather than at independent sites. P&G recognizes the value of
value pricing
Pascal wants to buy a new car that is of good quality and available at an affordable price. After exploring the available options, Pascal decides to purchase a car made by a popular car manufacturer, which has a high retail price but offers very low operating and maintenance costs. In this scenario, the pricing strategy employed by the car manufacturer is
a push strategy
Petros is the marketing manager for a pharmaceutical company. His team relies on a combination of personal selling and sales promotions directed toward pharmacies and medical facilities. This is an example of
human resources
Runa understands that the employees at her company have the potential to be strong ambassadors for their brand if they are properly armed and feel the pride of ownership in the brand. Whose help should she enlist to communicate the brand message to employees?
dividing the market into meaningful smaller markets based upon common characteristics
Segmenting markets means that a company is________.
convenience
Starbucks has placed stores every few blocks all over the city, which makes it difficult for the competition to get a foothold. Starbucks is focusing on________ leadership as a source of differentiation.
gender-bending
The fashion apparel and skin care industries are candidates for________ products that appeal to those who do not fit the traditional binary definitions of male and female.
must understand the basics of promotion
Vache is a marketing manager for a large soft drink company. As the marketing manager, he
The company will recoup their initial costs and realize a return on their investment
What happens when the product category grows and is successful?
shopping
When Dave and Bryon remodeled their kitchen, their contractor told them to pick out a refrigerator, dishwasher, and oven. These are examples of________ goods.
missing important market opportunities
When companies provide too few products in a product line, they run the risk of
conveying information about a product
When customers see the logo of Sanchez's restaurant, they think of food served quickly in a clean, family-friendly environment. Which customer brand role does this exemplify?
reposition the existing products targeting different customer segments
When products like cell phones are promoted as a safety device for working women and moms, this demonstrates that one way to find "new" markets is to
after completion of market research, situation analysis, and competitor analysis
When should goals and objectives set?
to be the leader in one's field
Which of the following is most likely to be considered a goal rather than an objective?
Secondary data will not fit the research problem exactly.
Which statement is true of secondary data?
a company fails to stop a bad product idea from moving into product development.
While screening and evaluating ideas, a go-to-market mistake happens when
earned
________ media refers to a customer or commercial entity choosing to act as a marketing communication channel for the organization at no cost.
desire
During the________ stage of the AIDA model, promotional messages are altered so that a customer feels they simply must have the product and can't live without it.
communication
Procter & Gamble wanted Crest Vivid White Toothpaste to stand out from competitor brand toothpastes on store shelves, so it created a stand-up package and used a graphics-heavy box. In the context of objectives of packaging, the company focuses on
everyday low pricing
The fundamental philosophy behind________ is to reduce investment in promotion and transfer part of the savings to lower price.
natural world
The marketing manager of Big Wheel Motors notices an increased demand for "green" cars that use less fossil fuel and emit fewer pollutants. Under which external information source for making marketing decisions will this information be included?
customer relationship management (CRM)
The marketing manager of Zenith Corp. is interested in ranking clients on the basis of their profitability, and accesses a database that tells him about the frequency and size of each client's order along with the actual costs per order. This database is part of the________ system.
brand awareness
The owners of ABC Medical Equipment have been developing the brand equity of their MRI and CAT scan equipment through promotions and social media. Now, on the mention of ABC's machines, radiologists and hospital purchasing agents usually say that they have heard of ABC's offerings and are interested in learning more about them. In this case, which dimension of brand equity has been achieved by ABC Medical Equipment?
adoption
The rate at which new products become accepted is known as the________ process.
geographic segmentation
The region, the density of the population, and the size of the population are various approaches to use in________.
marketing intelligence
The sales manager at a company wants to keep informed, so he collects, analyzes, and stores data from the macro environment on a continuous basis. This illustrates the concept of
descriptive
The sole proprietor of a company is interested in gaining a better understanding of his current customers in terms of certain demographic and lifestyle characteristics so he may better serve their needs. For this purpose, he should most appropriately conduct________ research.
enhanced
The________ product extends the core product to include additional features, designs, and innovations that exceed customer expectations.
growth
Three brothers manufacture trailers that are used by lawn service companies. The company was started in Arkansas by their father with one production site and four sales and service locations. Since the sons took over, they have expanded in the last 12 years to include 26 sales and service centers throughout the Southwest. In this case, the company is most likely using a generic business strategy based on
price
________ is a critical component that plays into a customer's assessment of the value afforded by a firm and its offerings.
brand association
Xander has been to Farm to Table Ice Cream Shops several times. Being a loyal customer, he has developed certain emotional and psychological connections with the brand. For instance, he links the brand with higher levels of product quality and feels good about eating it. Which dimension of brand equity does this example illustrate?
discounts
________ are direct, immediate reductions in price provided to purchasers.
product
________ can be defined as anything that delivers value to satisfy a need or want and includes physical merchandise, services, events, people, places, organizations, information, even ideas.
price-fixing
________ could result in overall higher prices for consumers since various competitors are all pricing the same to maximize their profits.
external
________ information sources include independent groups, personal associations, marketer-created information, and experiences.
