Chapter 2-4 LearnSmart

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Since most firms find attractive opportunities for their products fairly close to existing markets, what opportunity do marketing strategies typically pursue first?

Market penetration

The marketing department at Henri's company is taking the next two weeks to measure and analyze their current marketing performance. The company will use the results of this analysis to adjust any areas and improve their current effectiveness. What is Henri's company engaging in?

Marketing analytics

Which four of the following are basic market/competitive situations a company might face? (Check all that apply.)

Monopolistic competition Monopoly Oligopoly Pure competition

The market segmentation process consists of which of the following? (Check all that apply.)

Naming broad product markets Segmenting broad product markets into select target markets

Which of the following statements about marketing strategy are true? (Check all that apply.)

Strategies include identifying both a target market and a marketing mix. The needs of the target market should drive decisions on the marketing mix.

Which of the following statements about Generation Y are true

They are health conscious. They are relatively comfortable with technology.

Promotion is concerned with which of the following within the marketing mix? (Check all that apply.)

Number of Salespeople Contests

As a marketer, it is usually safer to try to satisfy the needs of a

small group of customers very well

Generation X is ______ in number than the baby boom generation

smaller

There are state and city laws regulating _____

starting up a business the setting of prices

The marketing _______ should be evaluated against the company's objectives

strategies

Which of the following are true about the price area of the marketing mix? (Check all that apply.)

-price includes an evaluation of delivery costs - price includes decisions about discounts - as part of price, marketing managers estimate how customers will react to changes in price

Trina's Bakery had 600 customers last year and this year, 400 of those customers still patronize the bakery. What is the retention rate at Trina's Bakery?

66%

A marketing plan is

A document that describes a marketing strategy and various steps and elements involved in carrying out the strategy

Susan is a first-time home buyer. She wants to keep her monthly mortgage payments as low as possible. Which of the following would work in her favor?

A low interest rate

Which of the following are true of market segmentation? (Check all that apply.)

A major reason for market segmentation is to help a manager truly understand customers. Managers use segmentation to help them figure out which groups of customers to serve.

Which of the following statements regarding marketing managers and potential competitors is true?

A marketing manager should research and seek information about competitors

Which of these statements regarding population trends is accurate?

About 80% of U.S. residents live in urban areas.

Carrie walks into her kitchen every morning and speaks to a device on her counter, "Alexa, what's the weather today?" The device she is interacting with is based on what technology?

Al

Which of the following is true concerning the importance of the Four Ps?

All are equally important

Product is concerned with which of the following in the marketing mix? (Check all that apply.)

Branding Installation Service

Which of the following helps companies create marketing strategies that are difficult to replicate and have long-term profit potential?

Breakthrough opportunities

Which of the following groups is responsible for establishing and enforcing safety standards in the United States?

Consumer Product Safety Commission

The number of purchases a person could make from a firm during the course of their relationship is called the

Customer Lifetime Value

Which of the following are qualities of "good" market segments? (Check all that apply.)

Customers within a market segment have similar characteristics and responses to marketing mix variables. The market segment is broad enough to be profitable for the firm. The dimensions used to define the marketing segment help identify potential customers and effective marketing mix variables. Customers in different market segments have significant differences in characteristics and responses to marketing mix variables.

Cultural differences that may complicate the segmenting process include which of the following?

Customs Race Religion

Which of the following are general categories of segmenting dimensions in consumer markets?

Demographic Behavioral Geographic

Which of the following might be revealed by clustering techniques?

Demographic characteristics Past buying behavior Attitudes toward the product

What are the four broad areas of opportunity a company can pursue in the marketing strategy planning process? (Check all that apply.)

Diversification Market penetration Product development Market development

Which of the following statements about the Four Ps is true?

Each of the Four Ps contributes to a whole marketing strategy

Which three of the following are considered elements of the economic environment?

Economic growth rates Inflation rates National income

True or false: Generic markets focus primarily on product type.

False

True or false: The determining dimension helps marketers to understand the "core benefits" required by consumers in a product-market.

False

The people born between 1965 to 1977 are referred to as

Generation X

The people born from 1978 to 1994, who are sometimes called Millennials, are referred to as

Generation Y

The people born after 1995 are referred to as

Generation Z

Which of the following groups are considered "digital natives"?

Generation Z

Jenna's company exports tea to various markets around the world. In the past six months, the company has focused on developing new flavors and was surprised to learn that a competitor gained market share by expanding into four new foreign countries. Which part of a product-market did Jenna's company fail to take into account?

Geographic area

Which of the following are marketing processes used by combiners?

Grouping similar customers across multiple submarkets into a single target market Developing a marketing mix that appeals fairly well to customers across multiple submarkets

What is the best way to describe a targeted market segment?

Homogeneous

Which of the following activities are part of the basic approach to competitor analysis?

Identify existing and potential competitors. Understand how your marketing mix compares to your competitors' offerings and strategy. Evaluate the strengths and weaknesses of your target market and marketing mix.

Garrett knows what the company plans to do for its marketing efforts and now needs to find a way to put those plans into operation. What phase of the marketing plan is Garrett working on

Implementation

Why does the marketing strategy process start broad before narrowing?

It gives firms a chance to identify opportunities they might miss if the process starts too narrow

Which of the following are true of a successful product-market? (Check all that apply.)

It helps focus and sharpen a firm's marketing strategy. It is defined as the scope of the market in which a firm will compete.

Which two of the following describe a marketing program? (Check all that apply.)

It includes more than one marketing strategy and implements several marketing strategies at once

Which two of the following statements about international markets are true?

It is often difficult to gain a full understanding of the market environment variables. It can be challenging to anticipate potential business risks.

What is the primary disadvantage of the production-oriented marketing approach?

It leads to missed opportunities by ignoring customers.

Which of these companies is being affected by literacy?

Kimball's Kroutons added pictures of ingredients to its packaging being sold in Ethiopia for consumers who could not read a list of ingredients.

Which of the following variables contribute to the cultural and social environment?

Language Religious beliefs Education level Clothing styles

Which of the following is not part of a complete product-market definition?

Organization type

People of what age range are considered senior citizens in the United States?

Over 65

Which of the following are examples of "product" strategy decisions? (Check all that apply.)

Packaging Installation Branding Instructions

What is the purpose of a S.W.O.T. analysis?

Picks out a firm's weak and strong points, as well as any potential opportunities or threats the firm might face

Which of the Four P's is focused on all the decisions needed to get the right product to the target market via retail stores or online stores?

Place

To clear out some slow-selling pink sofas, Furniture Warehouse offered $100 discounts. The furniture store made this decision based on the _______ component of the marketing mix.

Price

Which of the following are part of the "marketing mix"? (Check all that apply.)

Product Promotion

Which of the following statements about a product are true? (Check all that apply.)

Product can involve a physical good Product can involve a blend of physical good and service

Which of the following is not considered a possible segmenting dimension for consumer markets?

Production facilities

Which of the following is focused on informing people about the features of the product?

Promotion

What type of segmenting dimensions involves whether a customer can be considered part of a product-market?

Qualifying

How common are monopoly situations in market-directed economies?

Relatively rare

What are three components of the promotion element? (Check all that apply.)

Sales promotion Personal selling Mass selling

Which of the following steps is commonly added to the segmentation process by international firms?

Segment by country or region

Which of the following help marketers focus on a specific target market and provide superior value?

Segmentation CRM Cluster analysis

Which of the following are ethical issues that may arise when selecting segmenting dimensions?

Targeting the disadvantaged with expensive goods Marketing infant formula to less-developed countries Marketing unhealthy foods to kids

Which of the following is an example of change in the economic environment that can affect a company's marketing strategy?

The collapse of the U.S. housing market in 2008

Which of the following are true about the specific qualitative and quantitative screening criteria marketing managers develop? (Check all that apply.)

The firm's objectives and available resources help determine the appropriate criteria to use. These criteria are useful in figuring out the markets in which a firm wants to compete.

Select all that apply Which of the following statements about the marketing strategy planning process are true? (Check all that apply.) The marketing strategy process starts broadly and then narrows down. A marketing strategy begins with an evaluation of customers, competitors, and company. The marketing strategy process should start with a specific marketing strategy. A marketing strategy should begin with the identification of really different strategies.

The marketing strategy process starts broadly and then narrows down. A marketing strategy begins with an evaluation of customers, competitors, and company.

Which of the following statements about the marketing strategy planning process are true? (Check all that apply.)

The marketing strategy process starts broadly and then narrows down. A marketing strategy begins with an evaluation of customers, competitors, and company.

Which of the following factors do marketing managers consider when evaluating the industry attractiveness dimension of a product-market plan? (Check all that apply.)

The potential environmental impact of the plan Market size and rate of growth The types and amount of competition in the industry

Which of the following regions in the United States are currently experiencing the highest rates of population growth?

The southeast The west

Which two of the following factors are part of the competitive environment for a fast food chain?

The types of restaurants in the market The number of restaurants in the market

Which of the following do production-oriented managers do?

They miss opportunities by ignoring the market. They focus on the products they sell.

With regard to the target market, which of the following must marketing-oriented managers do?

They must focus on specific target markets.

A S.W.O.T. analysis helps a company figure out which four of the following? (Check all that apply.)

Threats Strengths Weaknesses Opportunities

Which of the following is the intended goal of focusing on a specific target market?

To offer superior value to the target market

True or false: Some firms find that it costs them less to retain a customer than trying to acquire a new one

True

True or false: When customers make online purchases, a company has access to data that can be used for marketing analytics

True

True or false: When customers make online purchases, a company has access to data that can be used for marketing analytics.

True

Choose the statements about differentiation that are true. (Check all that apply.)

True differentiation occurs when customers see the firm's offering as being better with regard to all four Ps. Differentiation can only occur if one or more of the four Ps is done better than the competition. Offering a lower price than the competition—while being similar on the other three Ps—would be a source of differentiation.

Under English and U.S. common law systems, a seller is required to do which three of these things?

Uphold contracts Tell the truth Stand behind the firm's product

The relevant market that a firm has for finding opportunities should be _____ the firm's present product-market

bigger than

Since broad product-markets can have many submarkets, target marketers have ______.

a choice among many possible target markets

A company has ______ when the target market prefers the company's marketing mix over a competitor's mix.

a competitive advantage

Management officials at Grace's Granola Corp. were found guilty of using low-cost artificial ingredients while claiming to use completely natural ingredients. This was considered a criminal offense. What type of legal action could a judge impose on these managers?

a jail sentence

What are a company's three potential paths for growth based on the customer equity approach? (Check all that apply.)

acquiring new customers enhancing customer value retaining current customers

Target marketing classifies a marketing mix as

appealing to a selected group of people.

To use technology in the best possible way, marketing managers must

begin with customer needs

To achieve effective market segmentation, markets should first disaggregate the needs of customers. This means the company should

break apart all possible needs into some generic markets

Companies rely on opportunities to develop marketing strategies that are difficult to replicate and have the potential to make the company a lot of money for a long time.

breakthrough

Terms such as generic market and product-market are examples of ______ market definitions that can be useful to firms searching for opportunities

broad

Greg told the management team that the ideal consumer for the product is a 27-36 year old working mother living in the Midwest. This fictional description of a customer is called a(n)

buyer persona

A major difference between the economic environment and the cultural and social environment is that the economic environment

changes rapidly

Margo's company plans to reposition the high-end trail bike it introduced last year. This will involve

changing customer perceptions

Trying to increase the size of their markets by putting two or more segments together is a typical practice performed by

combiners

Aliza is the marketing manager at SinoSure Foods, an Asian food company. She has been going to stores to check out new products on the shelves by the SinoSure goods. She is actively seeking out information about current and potential

competition

When marketing managers analyze similar businesses and their strategies, they are considering the ______ environment.

competitive

In competitive analysis, marketing managers attempt to identify those firms whose products and marketing mix are the most similar, these firms are known as

competitive rivals

Marketing managers focus their competitive analysis on ______, firms that offer similar products and marketing mixes

competitive rivals

The first step in competitor analysis is to identify potential

competitors

The ____ ____ ____ Act set up the Consumer Protection Commission.

consumer product safety

Businesses and individual managers are subject to both ___and ___ laws.

criminal and civil

In international marketing, ______ differences such as language and customs can complicate segmentation efforts.

cultural

The various ways in which people live, including their motivations and behaviors, are part of the ______ environment.

cultural and social

When a company is working to achieve market penetration, it is attempting to increase sales of its _____ products in its _____ markets.

current; present

A marketing manager attempting to segment a market using two demographic characteristics is likely to fail because

customer behavior cannot be explained using such narrow segmenting criteria

The CRM process relies on a ______ for information

customer database

Companies predict how many purchases a single customer might make from the company over the length of the relationship with that consumer, a measurement called the

customer lifetime value

A company typically bases a buyer persona on

customer research

When a company decides to reposition a product, it is doing so in response to

customers who do not view the product in the desired way

A regional population ______ typically creates stronger competition among firms in the area.

decline

In pure competition, where competitors offer similar products, over time, profit margins generally

decline

The term "mass marketer" is used to

describe large firms that aim at specific groups.

As noted in the text, when the Chicago South Loop Hotel offered free parking to encourage customers to choose its hotel over others, it was relying on a ______ dimension to attract customers

determining

A company is attempting to achieve market when it works to increase sales by selling its current products in new markets.

development

The marketing manager reminded the team that they had to come up with something that would set them apart from their competitor. In other words, their marketing mix needed

differentiation

When a marketing mix has an element that sets it apart from those of the competition, it is said to have

differentiation

The Chicago South Loop Hotel wants to address customers' concern about parking costs by offering free parking. This is an example of a determining

dimension

Customers and competitors are within the ______ market environment and must be considered during marketing strategy planning

direct

Moving into a new line of business, such as a new product or market, is known as

diversification

The broad possibilities available in the market strategy planning process include market development, market penetration, product development, and

diversification

When a company begins working in a brand new market or with new products, it is engaged in

diversification

Marketing plans are put into action during

implementation

Macro-economic factors that influence consumer spending, including rates of inflation and economic growth, are part of the ______ environment

economic

The ____ environment changes more rapidly than the cultural and social environment

economic

The collapse of the U.S. housing market in 2008 was an example of a rapid change in the ______ environment

economic

A company's customer is what the company can expect to earn from its current and potential customers during a particular period

equity

A company's customer is what the company can expect to earn from its current and potential customers during a particular period.

equity

Marketing unhealthy snack foods to kids is considered a(n) ______ issue that may arise during the segmenting process

ethical

True or false: It is usually safer for marketers to try to satisfy many customers fairly well

false

True or false: The United States makes up nearly 50% of the total world population

false

True or false: Within a broad product-market, there is only one way to develop market-oriented strategies.

false

Segmenters often ______ their marketing mixes for each target market.

fine-tune

The United States, Canada, and Mexico have an agreement in which there are no restrictions on imports and exports between the three countries. This is an example of

free trade

Infant formula and diapers provide _____ benefits and satisfy a customer need.

functional

A(n) ___ market consists of customers with broadly similar needs and many different options for satisfying them.

generic

What type of market is one in which potential customers have similar, but not identical, needs and are offered various and diverse ways to satisfy those needs?

generic

A market description that does not include any product-type terms is a(n)

generic market description

If a firm decides that it will offer its products in the North American market, it has defined the ______ of its marketing strategy

geographic area

The total value of all of the goods and services produced within a country in a given year is known as

gross domestic product

The legal environment of the United States assumes that competition between numerous small businesses ______ the economy

helps

A successful segmenter can develop a customer base that is willing to pay _____ prices because the company provides products that precisely match the needs of the market.

higher

Which of the following are potential benefits to using the segmenter approach?

higher profits reduced competition greater sales

Not everyone turns an opportunity into a successful strategy. You need to have a logical process to avoid or marketing situations

hit or miss

Customer value _______ when customers perceive more benefits or lower costs

increases

The ______ dimension of a strategic planning grid helps managers determine whether a product-market plan is a good idea

industry attractiveness

Industrial products are at the___ (sensitive or insensitive?) end of the continuum of environmental sensitivity, while consumer products that are targeted toward a specific cultural variable are at the ____(sensitive or insensitive?) end of the continuum of environmental sensitivity

insensitive sensitive

The ___ rate is the cost associated with borrowing money.

interest

It is important for companies to remember that selecting a target market and developing a marketing mix are _____ activities and must be done _____.

interrelated; together

In the United States, business that try to ______ competition are thought to act against the public interest.

limit

The degree of of a population can determine the way information is delivered

literacy

In Parul's condominium community, it is illegal to sell magazines door-to-door. This is an example of a _____ law.

local

In pure competition, customers see the different available products as close substitutes. Many marketing managers compete by

lowering prices and sacrificing profits

Artificial intelligence refers to

machines that operate like humans

A(n) _____ consists of potential customers with similar needs who are willing to exchange something of value with sellers in order to receive a good or service

market

Explicitly stating that a firm will market to business customers rather than unaffiliated consumers is an important aspect of a manager's ______ since this clearly establishes the markets in which the firm will compete

market definition

Explicitly stating that a firm will market to business customers rather than unaffiliated consumers is an important aspect of a manager's ______ since this clearly establishes the markets in which the firm will compete.

market definition

Which of the following is a company engaged in when it attempts to increase sales of its current products by offering them in new markets?

market development

A group of customers with shared characteristics who are expected to have a similar response to a marketing mix is known as a

market segment.

To identify and understand different subgroups in the target market, marketing managers rely on

market segmentation

A(n)____ ____ is a written document that identifies a marketing strategy and spells out the various elements that are necessary for fulfilling that strategy. (Enter one word in each blank.)

marketing plan

An organization's ______ combines multiple marketing plans into a single, large plan

marketing program

In ______ competition, several firms offer marketing mixes that at least some customers see as different. In this situation, marketing managers try to differentiate their offerings by adjusting other aspects of the marketing mix.

monopolistic

The market for breakfast cereals includes many brands and marketing mixes that some customers see as different despite their similarities in terms of ingredients and branding. The breakfast cereal market can be described as

monopolistic competition

Which competitive market situation describes one organization having total control over a product-market?

monopoly

When segmenting an international market, a company should focus on ____ dimensions than a domestic market

more

An important requirement of the marketing strategy planning process is

narrowing down the list of opportunities to those most likely to succeed

Gross domestic product is a widely used measure of

national income

China's resistance to foreign firms is an example of

nationalism

Protecting the interest of one's country before everything else, also known as ______, can strongly affect marketing efforts for multinational firms

nationalism

The pending impact of driverless cars will allow ______ to drive longer

older people

The four basic market situations include monopoly, pure competition, monopolistic competition, and

oligopoly

Customers can perceive differences based on

only one important element of the marketing mix.

A "good" market segment should be _____ in that the segmenting dimensions should be useful for identifying customers and deciding on marketing mix variables.

operational

A successful marketing strategy pairs

opportunities with a company's resources and goals.

A weakness of positioning analysis is that it can

overlook customer-related dimensions like needs and attitudes

A company that is working to increase customer purchases of its current products in its current market is trying to achieve market

penetration

Many companies find attractive opportunities close to markets they already know. They are focused on market

penetration

Fill in the blank question. A product needs to get to the customer when and where they need it. This is considered to represent the function of the 4 Ps

place

Regional economic groupings such as the North American Free Trade Agreement are likely to promote similar ______ environments among member countries.

political

A(n) statement provides an exact picture of the firm's product offerings, target market, and differentiation strategy

positioning

How customers think about brands in a market, also known as ______, affects how marketing managers adjust the marketing mix

positioning

In order to focus a marketing mix, marketing managers might describe the firm's target market, product offerings, and differentiation strategy in a ______ statement

positioning

The way in which customers think about brands in a market is called

positioning

When targeted customers ______, the company is said to have a competitive advantage.

prefer a company's marketing mix over that of a competitor

Positioning analysis is a ______-oriented approach

product

A firm engaged in ______ is offering its current markets a new product or an improved version of a current product

product development

When a company offers a new product or an improved version of a current product in its present markets, it is engaged in

product development.

Market segmentation requires that the marketing manager decide which ______ might be useful for marketing mix planning.

product-market dimensions

Some businesses avoid using new technology because they don't understand it, while other companies immediately use every new technology without assessing its value. Both of these approaches can steer a company into a ______ way of thinking

production-oriented

The most significant factor in determining whether to segment or combine markets is

profit

Ultimately, a firm should consider ______ to determine whether to segment or combine.

profits

In the U.S. marketplace, vigorous competition is expected to ______ careful consumers.

protect

Segmenting dimensions that help marketing managers decide whether to include a customer type in a product-market are called ______ dimensions

qualifying

The "core benefits" required by all consumers in a product-market are identified by the ______ dimensions

qualifying

The process of using a customer database to refine marketing efforts is known as customer _____ management

relationship

When determining customer lifetime value, the ____ rate refers to the percentage of customers who stay with the company in comparison to the total number of customers

retention

Fifty years ago, about two-thirds of the world's population lived in ___ areas

rural

After analyzing environmental trends and the firm's resources and objectives, marketing managers should develop ______ to narrow down the number of strategic choices

screening criteria

A market ______ is a group of customers with similar needs who will have a similar response to a marketing mix.

segment

Marketers that develop a different marketing mix for each homogeneous market segment are known as

segmenters

After a computer clusters groups of people together, marketers look for

segmenting dimensions that apply to everyone in the cluster

Business-to-business markets, with very large customers, can treat customer firms individually as " ____ of one."

segments

The single target market approach involves

selecting one homogeneous market segment as a target market

In the United States, people over the age of 65 (regardless of the year they were born) are called

senior citizens

The Johnson Family restaurant, which specializes in Cajun cooking, wants to open a restaurant in another state. According to the continuum of environmental sensitivity, this type of product is considered environmentally

sensitive

Developing a _______ can help a manager identify and define the markets in which the firm wants to compete.

set of specific qualitative and quantitative criteria

Marketing managers

should seek attractive opportunities

Selecting one homogeneous market segment as the firm's target market is called the ___ target market approach.

single

The use of scientific advancements to help convert resources into goods and services is also known as

technology

When an auto manufacturer applies scientific advancements to improve the gas mileage of its vehicles and increase sales, it is taking advantage of

technology

A marketer who is analyzing demographic trends might study

the age of the population

Customer equity is

the amount of money a company can expect to earn from customers during a given time.

Which one of the following is the most important factor in determining an appropriate marketing mix?

the needs of the target market

A highly-personalized marketing approach considers each customer to be

their own individual segment

An ideal product-market description should include ______ customer dimensions plus one product type description

three

True or false: An effective marketing strategy matches opportunities to the firm's resources and objectives.

true

True or false: It is more difficult to evaluate opportunities in international markets due to the wide range of environmental variables

true

True or false: The first step in effective market segmentation should be to name a broad product-market of interest to the firm.

true

True or false: The technology associated with driverless cars may allow older adults to live on their own and slow the demand for nursing home care

true

If a customer perceives a product to have more features and a higher quality, then the customer perceives the product to have more

value, benefit, or worth

The questions that a marketer should ask in order to identify customer similarities and differences include

who what why

Conrad's company wants to understand the reason customers are choosing their competitors products over their products. Which type of question does Conrad need to answer?

why


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