Principles of Marketing Exam Review

What is a market segment?

A subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs

What is a stratified random sample?

In this probability sampling method, the population is divided into mutually exclusive groups (such as age groups), and random samples are drawn from each group

What is the macroenvironment?

Large societal forces which affect a company's ability to serve its customers.

What is demographic segmentation?

Life-cycle stage, occupation, education, religion, and generation are all forms of this type of segmentation

________________ consists of arranging for a market offering to occupy a clear distinctive place relative to competing products in minds of target consumers

Market Positioning

Judgment sample

The researcher uses his or her judgment to select population members who are good prospects for accurate information

What is customer equity?

The total combined customer lifetime values of all the company's current and potential customers.

What is customer lifetime value?

The value of the entire stream of purchases a customer makes for a company of over time?

What are consumer markets?

These markets consist of individuals and households that buy goods and services for personal use

Characteristics influencing Innovation adoption:

relative advantage compatibility complexity divisibility

Relative advantage

the degree to which the innovation appears superior to existing products

Compatibility

the degree to which the innovation fits the values and experiences of potential consumers

Divisibility

the degree to which the innovation may be tried on a limited basis

Communicability

the degree to which the results of using the innovation can be observed or described to others

What is behavioral segmentation?

Benefit, occasional, loyalty, user status, and usage-situation segmentation are all forms of this type of segmentation or segmentation base

What is derived demand?

Business demand that comes from the demand for consumer goods.

Which of the following needs in Maslow's hierarchy is generally satisfied first? A) physiological B) social C) esteem D) self-actualization E) safety

A) physiological

A practice called____________ allows marketers to use online data to target ads and offers to specific customers.

Behavioral Targeting

The simplest way to enter a foreign market

Direct investment

What is NAFTA?

Founded in 1994, this established a free trade zone among the United States, Mexico, and Canada.

What is a need?

States of felt deprivation. It can be physiological or psychological.

What is customer satisfaction?

The extent to which a product's perceived performance matches a buyer's expectations.

What is family?

The most important consumer buying organization in society.

What is marketing?

The process by which companies engage customers, build strong customer relationships, and create customer value in order to capture value from customers in return.

Quota sample

The researcher finds and interviews a prescribed number of people in each of several categories

Convenience sample:

The researcher selects the easiest population members from which to obtain information

What are marketing intermediaries?

This actor in the microenvironment refers to an entity that helps the company to promote, sell, and distribute its products to final buyers, and can include resellers and physical distribution firms.

What is a public?

This actor in the microenvironment refers to any group that has an actual or potential interest in or impact on an organization's ability to achieve its objectives.

What is divisibility?

This characteristics that influences an innovation's rate of adoption, refers to the degree to which the innovation may be tried on a limited basis.

What is behavioral targeting?

This micromarketing strategy refers to sending consumers personalized offers and promotional messages designed to reach the right consumers and deliver to them highly relevant messages at the right time.

What is direct investment?

This strategy to enter the global market, requires the most commitment and risk, and refers to entering a foreign market by developing foreign-based assembly or manufacturing facilities.

What is differentiated (segmented) marketing strategy?

This target marketing strategy commonly used by Marriott and Toyota involves targeting several segments at the same time, which separate product offers for each

What is an aspirational group?

This type of group is one which an individual wishes to belong to, and can be a social factor that influences consumer behavior.

What is secondary data?

This type of information used in research already exists and has been previously collected for another purpose.

What is an open-ended question?

This type of question within a survey allows a respondent to reply in their own words. This allows researcher to collect more information and more nuanced responses, but can also become more time consuming to analyze.

What is experimental?

This type of research method is commonly linked to causal research objectives.

What is a longitudinal survey?

This type of survey involves taking multiple measurements over time.

Complexity

degree to which the innovation is difficult to understand or use