MKTG 321 Exam #1
Rory Vaden - Southwestern Consulting
"Take the Stairs" - Studies success for a living - Successful people do things they know they should be doing even when they don't feel like doing them.
If you would have invested $10,000 in Starbucks in the beginning, how much would it be worth today?
$5 Million
Demographic Segmentation
- Age - Gender - Family Size - Income - Occupation - Religion - Race - Nationality
Mr. Stallard - Sewell Automotive Companies
- Best known for customer service, started in 1911 - Great service = Everything you expect and then something that's personal to you
Examples of forecasting changes
- Domino's Anyware - Apple watch straps from Hermes
What are all of the forces outside of the 4 P's?
- Economic - Competitive - Political - Technological - Sociocultural - Legal and Regulatory (Also known as the Marketing Environment in the book)
Psychographic Segmentation
- Lifestyles - Activities - Interests - Opinions (Ex. Political)
What are the things cohorts have in common?
- Parenting - Technology - Economics
What are the 4 P's?
- Product - Price - Promotion - Place (Also called Marketing Mix in the book)
Cohort - people all growing up at the same time
- iGen or Gen Z (1996+) - Millennials or Gen Y (1977-1995) - Gen X (1965-1976) - Baby Boomers (1946-1964) - Traditionalists (Before-1945)
Five Steps of the Marketing Research Process
1. Locating and defining issues of problems 2. Designing the research project 3. Collecting data 4. Interpreting Research Findings 5. Reporting Research Findings
Steps of the Consumer Buying Decision Process
1. Problem Recognition 2. Information Search 3. Evaluation of Alternatives 4. Purchase 5. Post Purchase Evaluation
Cognitive Dissonance
A buyer's doubts shortly after a purchase about whether the decision was the right one
Market Opportunity
A combination of circumstances and timing that permits an organization to take action to reach a particular target market
Amazon's pricing, service, and continuing investment in improving its website with additional product offerings give it a(n) ____ over many other retailers.
A competitive advantage
Extended Decision Making
A consumer decision-making process employed when purchasing unfamiliar, expensive, or infrequently bought products
Routined Response Behavior
A consumer decision-making process used when buying frequently purchased, low-cost items that require very little search-and-decision effort
Limited Decision Making
A consumer decision-making process used when purchasing products occasionally or needing information about an unfamiliar brand in a familiar product category
Value
A customer's subjective assessment of benefits relative to costs in determining the worth of a product
Strategic Business Unit (SBU)
A division, product line, or other profit center within the parent company
Consumer Buying Decision Process
A five-stage purchase decision process that includes problem recognition, information search, evaluation of alternatives, purchase, and postpurchase evaluation
Time Series Analysis
A forecasting method that uses historical sales data to discover patterns in the firm's sales over time and generally involves trend, cycle, seasonal, and random factor analyses
Consideration Set
A group of brands within a product category that a buyer views as alternatives for possible purchase
Market
A group of individuals and/or organizations that have needs for products in a product class and have the ability, willingness, and authority to purchase those products
Subculture
A group of individuals whose characteristics, values, and behavioral patterns are similar within the group and different from those of people in the surrounding culture
Reference Group
A group that a person identifies with so strongly that he or she adopts the values, attitudes, and behavior of group members
Market Growth / Market Share Matrix
A helpful business tool, based on the philosophy that a product's market growth rate and its market share are important considerations in determining its market strategy
Customer Lifetime Value
A key measurement that forecasts a customer's lifetime economic contribution based on continued relationship marketing efforts
Which of the following is not a requirement or characteristic of a market?
A large number of people or organizations
Mission Statement
A long-term view, or vision, of what the organization wants to become
Marketing Concept
A managerial philosophy that an organization should try to satisfy a customers' needs through a coordinated set of activities that also allows the organization to achieve its goals
Homogeneous Market
A market in which a large proportion of customers have similar needs for a product
Heterogeneous Market
A market made up of individuals or organizations with diverse needs for products in a specific product class
In response to the increase in demand for organic foods, Wegmans, Inc., a regional supermarket, recently created organic food departments within their large stores. The creation of these departments was a result of..?
A market opportunity
Concentrated Targeting Strategy
A market segmentation strategy in which an organization targets a single market segment using one marketing mix
Attitude Scale
A means of measuring consumer attitudes by gauging the intensity of individuals' reactions to adjectives, phrases, or sentences about an object
Opinion Leader
A member of an informal group who provides information about a specific topic to other group members
Geodemographic Segmentation
A method of market segmentation that clusters people in zip code areas and smaller neighborhood units based on lifestyle and demographic information
Regression Analysis
A method of predicting sales based on finding a relationship between past sales and one or more independent variable, such as population or income
Self-Concept
A perception or view of oneself
Marketing Strategy
A plan of action for identifying and analyzing a target market and developing a marketing mix to meet the needs of that market
Delphi Technique
A procedure in which experts create initial forecasts, submit them to the company for averaging, and then refine the forecasts
Executive Judgement
A sales forecasting method based on the intuition of one or more executives
Personality
A set of internal traits and distinct behavioral tendencies that result in consistent patterns of behavior in certain situations
Which of the following statements regarding social class is true?
A social class is an open aggregate of people with similar social ranking.
Target Market
A specific group of customers on whom an organization focuses its marketing efforts
Marketing Objective
A statement of what is to be accomplished through marketing activities
Green Marketing
A strategic process involving stakeholder assessment to create meaningful long-term relationships with customers while maintaining, supporting, and enhancing the natural environment
Undifferentiated Targeting Strategy
A strategy in which an organization designs a single marketing mix and directs it at the entire market for a particular product
Differentiated Targeting Strategy
A strategy in which an organization targets two or more segments by developing a marketing mix for each segment
Corporate Strategy
A strategy that determines the means for utilizing resources in the various functional areas to reach the organization's goals
Decentralized Organization
A structure in which decision-making authority is delegated as far down the chain of command as possible
Centralized Organization
A structure in which top-level managers delegate little authority to lower levels
Sales Force Forecasting Survey
A survey of a firm's sales force regarding anticipated sales in their territories for a specified period
Customer Forecasting Survey
A survey of customers regarding the types and quantities of products they intend to buy during a specific period
Marketing Plan
A written document that specifies the activities to be performed to implement and control the organization's marketing strategies
Roles
Actions and activities that a person in a particular position is supposed to perform based on expectations of the individual and surrounding persons
Sustainable Competitive Advantage
An advantage that cannot be copied by the competition
Random Factor Analysis
An analysis attempting to attribute erratic sales variations to random, nonrecurrent events
Seasonal Analysis
An analysis of daily, weekly, or monthly sales figures to evaluate the degree to which seasonal factors influence sales
Cycle Analysis
An analysis of sales figures for a three- to five-year period to ascertain whether sales fluctuate in a consistent, periodic manner
Trend Analysis
An analysis that focuses on aggregate sales data over a period of many years to determine general trends in annual sales
Micromarketing
An approach to market segmentation in which organizations focus precise marketing efforts on very small geographic markets
Performance Standard
An expected level of performance against which actual performance can be compared
Selective Distortion
An individual's changing or twisting of information that is inconsistent with personal feelings or beliefs
Level of Involvement
An individual's degree of interest in a product and the importance of the product for that person
Attitude
An individual's enduring evaluation of feelings about and behavioral tendencies toward an object or idea
Lifestyle
An individual's pattern of living expressed through activities, interests, and opinions
Internal Search
An information search in which buyers search their memories for information about products that might solve their problem
External Search
An information search in which buyers seek information from sources other than their memories
Motive
An internal energizing force that directs a person's behavior toward satisfying needs or achieving goals
Social Class
An open group of individuals with similar social rank
Marketing Orientation
An organization wide commitment to researching and responding to customer needs
Impulse Buying
An unplanned buying behavior resulting from a powerful urge to buy something immediately
Marketing Cost Analysis
Analysis of costs to determine which are associated with specific marketing efforts
Sales Analysis
Analysis of sales figures to evaluate a firm's performance
SWOT Analysis
Assessment of an organization's strengths, weaknesses, opportunities, and threats
Having used both Secret and Sure deodorants, Annette feels that Secret is a good product and the one that best meets her needs. She has formed a(n) ____ about Secret.
Attitude
Based on the video, which of the following is a FALSE statement about Starbucks?
Because they service 40 million customers a week, they have to work hard as a company to prevent and manage Customer Misbehavior.
Consumer Misbehavior
Behavior that violates generally accepted norms of a particular society
If Ski Butternut decides to focus solely on the 1st time skier, it would be segmenting its consumer market using a _______________ variable.
Behavioristic
The video describes its employees as people who wear flip flops and come to work riding bikes, commuter rails and walking. This description was used to portray Recycline's ____________.
Brand Identity
Learning
Changes in an individual's thought processes and behavior caused by information and experience
Segmentation Variables
Characteristics of individuals, groups, or organizations used to divide a market into segments
Starbucks feels that its biggest market is ____________.
China
Marketers must understand a target group's culture if they hope to be construct an effective marketing mix for the target group. Culture is the accumulation of values, customs, beliefs and knowledge the target group possesses. Culture includes tangible items such as _____________. Additionally, culture includes intangible items such as ________________.
Clothing; Laws
Bolt Bus offers affordable fairs, extra legroom and power outlets to its customers. These features represent its Strengths or _______________________.
Competitive Advantages
Stakeholders
Constituents who have a "stake" or claim, in some aspect of a company's products, operations, markets, industry, and outcomes
Ski Butternut states that its primary target market is young families. Therefore, Ski Butternut is using ______________ variables to segment its consumer markets
Demographic
Identifying and analyzing a target market and developing a marketing mix to satisfy individuals in that market are essential elements of which of the following parts of strategic planning?
Developing a marketing strategy
Ski Butternut offers its customers terrain parks, mid-week packages, financial incentives, training and races. To reach out to its target market, it is using a/an _____________________.
Differentiated targeting strategy
Behavioral Segmentation
Divides the population based on behavior, usage, and decision patterns (Ex. Holidays)
Geographic Segmentation
Divides the population based on geography (Ex. Think Suburban v. Urban, North v. South, etc.)
Relationship Marketing
Establishing long-term mutually satisfying buyer-seller relationships
Strategic Performance Evaluation
Establishing performance standards, measuring actual performance, comparing actual performance with established standards, and modifying the marketing strategy, if needed
Beth Hines is buying furniture for her apartment for the first time. She is spending considerable time and effort comparing the products that different stores offer. Which type of decision-making process is she using?
Extended
Psychological Influences
Factors that in part determine people's general behavior, thus influencing their behavior as consumers
Based on the video, which of the following is a FALSE statement?
Howard Schultz came up with the name "Starbuck" by naming his company after a character in one if his favorite novels "Moby Dick".
Market Segment
Individuals, groups, or organizations sharing one or more similar characteristics that cause them to have similar product needs
Business Market
Individuals, organizations, or groups that purchase a specific kind of product for resale, direct use in producing other products, or use in general daily operations
Situational Influences
Influences that result from circumstances, time, and location that affect the consumer buying decision process
When Trevor realizes his liquor cabinet supply was devastated by last weekend's party, he first retrieves information from his memory about what types of liquor he and his friends like most and then asks the attractive clerk at the liquor store what she would recommend. Trevor started with a(n) ____ search and then progressed to a(n) ____ search.
Internal; External
Which of the following is a characteristic of a marketing objective?
It is consistent with both business-unit and corporate strategy.
Which one of the following is most likely to be a product for which both the purchasing decision and the brand decision are strongly influenced by reference groups?
Jeans
Which of the following is NOT a competitive advantage of BoltBus?
Locations/service to most major cities in the US
Market Test
Making a product available to buyers in one or more test areas and measuring purchases and consumer responses to marketing efforts
Ski Butternut uses surveys to identify what types of families visit the mountain. Ski Butternut knows that its typical family has two children under the age of 18 with 1-2 parents who ski with the children. This information is an example of a ______________.
Market segment profile
Which of the following is the most specific and detailed type of business strategy?
Marketing
Breakdown Approach
Measuring company sales potential based on a general economic forecast for a specific period and the market potential derived from it
Buildup Approach
Measuring company sales potential by estimating how much of a product a potential buyer in a specific geographic area will purchase in a given period, multiplying the estimate by the number of potential buyers, and adding the totals of all the geographic areas considered
Patronage Motives
Motives that influence where a person purchases products on a regular basis
Negative Spacing
No spaces between letters in a logo
Evaluative Criteria
Objective and subjective product characteristics that are important to a buyer
Based on the video, which of the following would NOT be a part of Bolt Bus' target market?
Older consumers who cannot drive
Which of the following statements about the marketing mix is *incorrect*?
Once a marketing mix has been created for a particular target market, it cannot be changed until a new strategic window opens.
Secondary Research
Other people have conducted the research
What determines your feelings towards a company when you see their logo?
Past experiences / Interactions
Melanie prefers to shop at Target for most of her household needs even though the same products and brands are available at Kmart. She prefers the service, location, and friendliness of the employees at Target. Melanie's reasons that influence her decision to shop at Target are called
Patronage Motives
Starbucks does not use the typical names for Small, Medium and Large sizes. Instead, it uses Italian names to influence people's attitudes of the product. This shows how Starbucks is capitalizing on __________ Influences in the Consumer Buying Decision Process to sell its coffee.
Psychological
Consumer Market
Purchasers and household members who intend to consume or benefit from the purchased products and do not buy products to make profits
Which of the following is a TRUE statement about Recycline?
Recycline views its employees as a reflection of its Brand Identity.
Selective Retention
Remembering information inputs that support personal feelings and beliefs and forgetting inputs that do not
Which of the following consumer decision-making processes will probably be used in purchasing toothpaste?
Routinized response behavior
Expert Forecasting Survey
Sales forecasts prepared by experts outside the firm, such as economists, management consultants, advertising executives, or college professors
Information Inputs
Sensations received through sight, taste, hearing, smell, and touch
Recycline is capitalizing on changes in the _________ Forces in the marketing environment to grow its business.
Sociocultural
BoltBus wants to have a _____________-type vibe.
Southwest Airlines
Which of the following buying situations is most consistent with routinized response behavior?
Stephanie buying bottled water
Market researchers for a local bakery determined that Jewish people consume 63 percent of the portion of bagels sold in New York City. This is an example of ____ influence on consumer buying decision processes.
Subcultural
Strategic Windows
Temporary periods of optimal fit between the key requirements of a market and the particular capabilities of a company competing in that market
First-Mover Advantage
The ability of an innovative company to achieve long-term competitive advantages by being the first to offer a certain product in the marketplace
Late-Mover Advantage
The ability of later market entrants to achieve long-term competitive advantages by not being the first to offer a certain product in a marketplace
Culture
The accumulation of values, knowledge, beliefs, customs, objects, and concepts that a society uses to cope with its environment and passes on to future generations
Sales Forecast
The amount of a product a company expects to sell during a specific period at a specified level of marketing activities
Buying Behavior
The decision processes and actions of people involved in buying and using products
Consumer Buying Behavior
The decision processes and purchasing activities of people who purchase products for personal or household use and not for business purposes
Benefit Segmentation
The division of a market according to benefits that consumers want from the product
Maslow's Hierarchy of Needs
The five levels of needs that humans seek to satisfy, from most to least important
Social Influences
The forces other people exert on one's buying behavior
Based on the video, which of the following is a TRUE statement about Recycine?
The founder of Recycline created his company based on changing Cultural Values he saw occurring in the business environment.
Company Sales Potential
The maximum percentage of market potential that an individual firm within an industry can expect to obtain for a specific product
Why would a company use the undifferentiated strategy?
The needs of individual consumers in the target market for a specific product are similar, so the organization can satisfy most customers with a single marketing mix.
Market Density
The number of potential customers within a unit of land area
Market Share
The percentage of a market that actually buys a specific product from a particular company
Selective Exposure
The process by which some inputs are selected to reach awareness and others are not
Marketing
The process of creating, distributing, promoting, and pricing goods, services, and ideas to facilitate satisfying exchange relationships with customers and to develop and maintain favorable relationships with stakeholders in a dynamic environment
Market Segmentation
The process of dividing a total market into groups with relatively similar product needs to design a marketing mix that matches those needs
Strategic Planning
The process of establishing an organizational mission and formulating goals, corporate strategy, marketing objectives, and marketing strategy
Strategic Marketing Management
The process of planning, implementing, and evaluating the performance of marketing activities and strategies, both effectively and efficiently
Marketing Implementation
The process of putting marketing strategies into action
Perception
The process of selecting, organizing, and interpreting information inputs to produce meaning
Consumer Socialization
The process through which a person acquires the knowledge and skills to function as a consumer
Exchanges
The provision or transfer of goods, services, or ideas in return for something of value
Customers
The purchasers of organizations' products; the focal point of all marketing activities
Competitive Advantage
The result of a company matching a core competency to opportunities it has discovered in the marketplace
In order for the marketer to achieve effective market segmentation, which of the following conditions must exist:
The segment must have enough profit potential to justify the development of a special marketing mix for the segment.
Market Potential
The total amount of a product that customers will purchase within a specified period at a specific level of industry-wide marketing activity
Core Competencies
Things a company does extremely well, which sometimes give it an advantage over its competition
Which of the following promotional tools is the most effective/most used form of promotion for Bolt Bus?
Customer Relationship Management (CRM)
Using information about customers to create marketing strategies that develop and sustain desirable customer relationships
Value
Value = Benefits Received - Burdens Endured (can be monetary or non-monetary)
Primary Research
You conduct the research yourself
Jason, a 17-year old high school student, wants to buy a pack of Marlboro Lights. He has the money to purchase them, but he is still not considered to be a market for the product due to his lack of ____ to buy.
authority
Alli segments its diet pills based on those who have morning cravings, those who tend to overeat near the end of the day, those who need all day long appetite suppression, and those who want appetite control and more energy. This is an example of market segmentation based on variables of
behavior
Budweiser may choose to segment its market based on heavy, moderate, and light drinkers of its alcoholic beverages. This is an example of market segmentation based on
behavioralistic variables
Crest toothpaste is available in several different versions, such as Crest Whitening, Crest Tartar Control, Crest Whitening with mouthwash, and Crest Total Effects. Given these different variations of the product, it appears that the marketers of Crest are segmenting the market by using ____ segmentation.
benefit
Emma is responsible for developing and implementing the marketing plan for a new type of walking shoe targeted toward older women. Her responsibility includes making sure that the production and deliveries to the retail stores are coordinated for this new product. In order for the marketing implementation to be successful, Emma should be sure the needs of ____ customers are met.
both the internal and external
Refer to Scenario 2.2. According to the BCG matrix, the hang-gliding and bungee jumping tours have been a ____ for EXperience Limited, while the skydiving and motorcross tours represent a ____.
cash cow; question mark
If Georgia-Pacific, a producer of home siding, decking, and other wood products, focused its marketing efforts to home construction companies only, it would be using a(n) ____ strategy. If it sold the same products to both construction companies and DIY retailers such as Home Depot, it would be using a(n) ____ strategy.
concentrated; differentiated
In shopping for a new laptop computer for her master's degree program, Jocelyn has narrowed the alternatives to four brands. She is considering Dell, Toshiba, Sony, and Hewlett-Packard. These four brands make up Jocelyn's
consideration set
All marketing mix decisions must have two characteristics: ____ and ____.
consistency; flexibility
Apple has made a success from anticipating what consumers would want in new technological advances, convenience, and ease of use. The introduction of the iPad was an example of a _____ for Apple, something that an organization does extremely well and may give a company an advantage over its competition.
core competency
Resource deployment and coordination of functional areas of business are determined by
corporate strategy
Kelly's Kids is a home-based business that sells high-quality children's clothing at premium prices using in-home parties. These in-home parties typically cater to families with small children and middle- to upper-middle-class income. Kelly's Kids is using ____ variables to segment its market.
demographic
Interior Designs Inc. sells expensive custom-made draperies, bedding, and accessories through sales representatives who are also interior designers. It also has another, slightly less expensive line that it sells through stores such as Nordstrom's and Saks Fifth Avenue. Interior Designs Inc. is most likely using a(n) ____ targeting strategy.
differentiated
Which of the following is how executives at Recycline describe the brand?
dirty, rough around the edges
The purpose of market segmentation is to
divide a total market to enable a marketer to develop a more precise marketing mix.
A competitive advantage exists when a
firm matches a core competency to opportunities it has discovered in the marketplace.
Justin Franklin's company is interested in locating areas where the average income is high, the average age range is 25-35 years, and the lifestyles of the people involve extreme adventures and dangerous leisure activities. His company would most likely find possible markets through
geodemographic segmentation.
According to the video, what did Ski Butternut do to evaluate consumer behavior this year?
launched a new website
Realizing an increase in both the number of consumers who are environmentally-conscious and the number of consumers who are seeking vehicles that use less gasoline, several car manufacturers have developed hybrid automobiles. This is an example of identifying and capitalizing on a ____ while the strategic window is open.
market opportunity
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
When evaluating market segments, assessment of competitors is important because
sales estimates may cause a segment to appear to be lucrative, but there may be several competitors that together have a large share of that segment.
The U.S. Army recruits soldiers based on the slogan, "Army Strong," implying that people can reach their full personal potential in the U.S. Army. This is an appeal to what need according to Maslow's hierarchy of needs?
self-actualization
The Texas Pitt Barbecue Corporation has conducted a SWOT analysis of its competition, and sees a marketing opportunity for its new Texas Pit Barbecue restaurant. It has developed its marketing plan to include the type of products it will sell, the location for the restaurant, and the pricing it will use. Their plan includes a marketing objective to make a profit of 5% the first year of operation. So far, the owners of the restaurant have eliminated a key piece of the marketing plan, which is ____.
specifying how they will achieve their marketing objective
Kraft purchased the Duracell Battery Company and now operates this division as a separate profit center within the firm. In this example, Duracell is a(n) ____ unit of Kraft.
strategic business
A market opportunity results from
the right combination of circumstances and timing that permits an organization to take action to reach a particular target market.
When using personality characteristics as a market segmentation variable, marketers generally
use a positively viewed characteristic they assume much of their target market has or would like to have.
Through marketing newsprint to newspaper publishers and glass manufacturers that use it in packing, International Paper segments its market based on
use of product
Your quarterly strategic planning meeting will be held next month. You will schedule all the brainstorming and discussion activities for the meeting in a sequence and structure consistent with the hierarchy of the traditional strategic planning process. Which of the following sequence of activities should you schedule in order to be most consistent with the hierarchy of the traditional strategic planning process?
1: Develop the company's mission and goals 2: Develop business unit strategies 3: Complete a SWOT analysis for the company 4: Develop functional area goals and objectives.
You are an analyst in the marketing department for a major grocery store chain, and you recently submitted a report to your boss regarding potential market segments the company should consider targeting. Your boss just sent the report back to you with the following questions: What are the strengths and weaknesses of the competitors who are also targeting these markets? Does any firm dominate the market currently? Can we create a compelling marketing mix to effectively compete for business in this market segment? Based on the questions being asked, it appears your boss is using which one of the following segment evaluation approaches?
Competitive assessment approach
Like marketing research, sales forecasting utilizes a wide array of tools and techniques to enhance the accuracy of the forecast. For example, ____________ combines and averages the outlooks of top executives from different functional areas in a firm or firms. ______________ weighs each year's sales data, giving greater weight to results from the most recent years.
Jury of executive opinion; Exponential smoothing
People and organizations have needs and wants they seek to satisfy through the purchase of goods and services. These people and organizations represent a _____________ that marketers try to appeal to. Marketers will sometimes find it more advantageous to attempt to appeal to a subgroup of these people and organizations which is called a ________________. This subgrouping process is accomplished through the use of _______________ techniques.
Market; Market segment; Market segmentation
Marketers understand that the best marketing strategy in the world is doomed to fail if it is not properly implemented. With that in mind, an effective implementation strategy
begins with identifying the activities to be performed, and ends with assigning responsibility for each activity to one or more team members.
