Marketing 101 - CCU - SAUNDERS (MID TERM) - Quiz Q -

Under a ________ new product development approach, company departments work closely together in cross-functional groups, overlapping the steps in the product development process to save time and increase effectiveness.

team-based

________ is the stage where a product and its proposed marketing program are introduced into realistic market settings.

test marketing

Silkskin Cosmetics is advertising its newest line of eye makeup. Made from all-natural ingredients, the products are hypoallergenic. Silkskin is selling the products in specially designed tubes that make application easier. Which of the following is a core customer value for Silkskin's line of eye makeup?

the desire for having beautiful eyes

Which of the following concepts is based on a customer-centered philosophy?

the marketing concept

A brand's value proposition is the set of benefits or values it promises to deliver to consumers to satisfy their needs.

true

A small increase in consumer demand can cause a large increase in business demand.

true

In the marketing mix, product includes the goods and services the company offers to the target market, while promotion includes advertising.

true

BerryBerry is a fruit juice company that has traditionally sold three varieties of mixed-fruit juices: DazzleBerry, AquaBerry, and GloBerry. The company wants to add more products to its product line. Which of the following is an example of brand extension for BerryBerry?

The company introduces BerryBliss, a dried berry snack mix for kids. BerryBerry adds a new fruit juice flavor, TangyBerry.

________ is the systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization.

Marketing Research

_______ Marketing is perhaps the fastest-growing marketing platform

Mobile

Which of the following is part of the microenvironment of a firm's marketing environment?

The suppliers who work with the company

Which of the following is most likely a characteristic of the Millennial generation?

They are more likely to engage with brands using mobile or social media.

Which of the following is an advantage of primary data?

They are more relevant than secondary data.

____________refer to a form of product that consists of activities, benefits, or satisfactions offered for sale that are essentially intangible.

Services

_______refers to the portion of the customer's purchase that a company gets in its product categories

Share of customer

Which of the following statements is true in the context of the BCG growth-share matrix?

Stars often need heavy investment to finance their rapid growth in a market.

In which of the following circumstances is an organization likely to engage in full partnerships with key consumers?

When the market has few customers and high margins.

Which of the following companies is using a divesting strategy?

When the sales of its clothing division decline, Blackstone sells the division to a competitor

Howard Schultz, the founder of Starbucks, positioned his bistros as "a third place" between work and home where patrons could share and enjoy a cup of coffee with friends. This illustrates ________.

a core customer value

An abstract presentation of a product concept is likely to increase the reliability of the concept test.

false

Cupcake Gourmet, a high-end bakery in Manhattan, segments its customers according to those who frequent their store regularly, those who visit infrequently, and those who have never visited. This is an example of usage-rate segmentation.

false

Early mainstream adopters are opinion leaders in their communities and adopt new ideas early but carefully.

false

Neuromarketing techniques provide easy-to-interpret data that allow researchers to analyze consumer involvement with products.

false

Orienting and motivating customer-contact employees to work as a team to provide customer satisfaction is known as social marketing.

false

People use the same products and services as they progress through each life-cycle stage.

false

Products include only tangible objects.

false

The business analysis stage is the final step in the new product development process.

false

The full positioning of a brand is called the unique selling proposition.

false

When developing a new product, concept testing should ideally be followed by the business analysis stage.

false

Which of the following is a social factor that influences consumer buying behavior?

family

Monfax Corporation insures manufacturers, distributors, and consumers against the loss or damage of goods during transportation after a purchase or sale. In this case, Monfax is an example of a

financial intermediary

Which of the following is most likely categorized as a business market?

firms that buy goods and services for further processing

Which generational group is characterized as the most educated and the least materialistic?

gen x

The "Stop the Texts. Stop the Wrecks." campaign co-sponsored by the Ad Council and the National Highway Traffic Safety Administration is an example of a marketing offering for a(n)

idea

A category of ethnographic research used to observe consumers in a natural context in virtual and mobile spaces is referred to as ________.

netnography

Product mix width refers to the ________.

number of different product lines the company carries

Annie Carson, the owner of Annie's Dairy Bar, is considering opening a second location. She evaluates several potential sites by assessing traffic patterns, neighborhood conditions, and the locations of competitors. Annie is engaging in ________.

observational research

In a SWOT analysis, which of the following would be considered a weakness of a company?

obsolete technologies used by the company

Marketers are said to suffer from marketing myopia when they ignore underlying consumer needs and focus excessively

on consumer existing wants.

________ is a method of gathering primary data that involves asking people questions about their knowledge, attitudes, preferences, and buying behavior.

survey research

________ is defined as a business strategy where business buyers prefer to buy a complete solution to a problem from a single seller rather than buying and consolidating separate products and services from several suppliers.

systems selling

In which of the following cases is crowdsourcing used for new product development?

A company can create a forum where anyone can contribute.

Carla, a team leader in charge of customer relationship management, is planning strategies to improve the profitability of her firm's least profitable but loyal customers. She is also examining methods for "firing" customers in this group who cannot be made profitable. To which of the following customer relationship groups do these customers belong?

Barnacles

Vertigo is an electronics company. According to the BCG matrix, which of the following products of Vertigo would most likely classify as a question mark?

Blue - a cell phone that is designed for music lovers and has a very low market share in a market that is growing steadily

________ involves using an existing brand name for a new product category.

Brand extension

Which of the following is most likely true about business legislation?

Business laws that are enforced by government agencies have a major impact on a company's marketing performance.

Which of the following terms refers to a customer's evaluation of the difference between all the benefits and all the costs of a market offering relative to those of competing offers?

Customer-Perceived Value

The objective of ______ research is to gather preliminary information that will help define the problem and suggest hypotheses.

Exploratory

Which of the following is most likely a true statement about people's views about organizations?

Many people view work at an organization as a required chore

Under Armour increasing its advertising spending and offering an ever-increasing range of styles and colors in its original apparel line is an example of a _______ strategy

Market Penetration (Dumping money into an original line, and penetrating the market by going deeper in it.)______

A strategy for company growth that involves increasing sales to current market segments without changing the product is known as

Market penetration

The 4Ps model has been challenged because it omits or underemphasizes important activities such as services. It's also been criticized for taking a seller's, rather than a buyer's, viewpoint. The more recent 4As framework complements the traditional model and includes ________.

acceptability, affordability, accessibility and awareness

Delta, an American video game manufacturer, targets teens between the ages of 13 and 18, providing free game trials and applications. The firm's marketing approach exemplifies ________ segmentation.

age and life - cycle

________ are the most affluent and brand conscious demographic segment in the United States

asian americans

Which of the following generational groups account for a third of the U.S. population but half of all consumer spending?

baby bommer

Dividing buyers into groups based on their knowledge, attitudes, uses, or responses to a product is called ________ segmentation.

behavioral

________ involves enlisting or even creating opinion leaders to serve as brand ambassadors who spread the word about a company's products.

buzz marketing

Stew Leonard's has created what has been the "Disneyland of Dairy Stores," complete with costumed characters, scheduled entertainment, and a petting zoo. It's built 30 additions onto the original store, which now serves more than 300,000 customers each week. This legion of loyal shoppers is largely a result of the store's passionate approach to customer service. Instead of focusing on individual transactions, Stew and his staff are putting a priority on ________.

capturing customer lifetime value

Vernon Inc. would like to set the best price for a new product. The firm conducts an experimental study by selling the new product at two different prices in two different locations keeping other factors constant to see if a lower price results in better sales. This is most likely an example of ________ research.

casual

Hammond Corp. operates in the highly aggressive electronics market. The firm aims to obtain early warnings of opportunities and threats caused by the actions of other firms that are doing well in the industry. Which of the following sources would best serve Hammond's purpose?

competitive marketing intelligence

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

customer equity

The marketing manager of Appeal Inc. has noticed a sharp decrease in sales over the last two months. The manager decides to conduct marketing research to identify potential causes for the drop in sales. Which of the following should the manager do first?

define the problem and objectives

Harry's caters to the clothing needs of men, manufacturing two different lines of fashion based on the purchasing power of its customers. One product line caters to the needs of affluent, middle-aged men, and the other line targets younger, up-and-coming professionals. Harry's most likely segments the consumer market based on ________ variables.

demographic

A marketing firm has been assigned the task of watching trends in spending, personal income, savings, and interest rates. The marketing firm is most likely gathering information about consumers' ________.

economic situations

Devon is in the market for a new car. She is seriously considering either a Honda Civic or Toyota Corolla because they both have excellent quality and safety ratings and are comparable in price. Devon is in the _s-_______ stage of the buyer decision process.

evaluation of alternatives

A customer buys a can of Pepsi from a Walmart store. In this scenario, Walmart is a supplier in Pepsi's value delivery network.

false

Orienting and motivating customer-contact employees and supporting service people to work as a team to provide customer satisfaction is known as ________ marketing.

internal

The Dairy Bar, a national soft-service ice cream retailer, buys cones from Cones & More. Cones & More is an important resource for marketplace information. They're considered a(n) ________ source of new product ideas for the Dairy Bar.

internal

True Value Hardware relies on its ________ to coordinate and carry out activities that provide shoppers with the hardware and home improvement products they need at affordable prices along with top-notch customer service.

internal value chain

Sample size and location have little impact on costs for ________.

internet-based surveys

Companies like 3M, Google, and Sony have ________ that encourage employees to develop new ideas.

intrapreneurial programs

In which stage of the product life cycle will promotional expenditures be significantly high in an attempt to create consumer awareness of a product and its features?

introduction

_______ are tradition-bound, suspicious of changes, and adopt an innovation only when it has become something of a tradition itself.

lagging adopters

The town of Genter recently witnessed a devastating hurricane that crippled the town's infrastructure. Q-Mart, a retail chain that plans to open a new retail store in Genter, organizes a program to help the people of Genter. The program consists of providing free meals to those who lost their dwellings in the hurricane. What section of the marketing microenvironment is Q-Mart most likely trying to reach?

local publics

Although internal databases can be accessed more quickly and cheaply than other information sources, one of the challenges of internal databases is

maintaining the current database.

_______is the process of dividing a market into distinct groups of buyers who have different needs, characteristics, or behavior.

marget segmentation

Which of the following is the right order of the steps that companies generally follow in designing a customer-driven marketing strategy?

market segmentation, market targeting, differentiation, and positioning

Craft Inc.'s Krayons is a multi-color chalk material that was released in the market over a century ago. Since the release, the company has had remarkable sales and Krayons has remained unchanged. However, over the last few years, sales of Krayons have been stagnant. Competitors have begun marking prices down, and increasing their advertising and sales promotions. Craft's Krayons is most likely in the ________ stage of the product life cycle.

maturity

Members of which generational group are referred to as echo boomers?

millenial

A ________ is purposeful, specifying what an organization wants to accomplish in the larger environment.

mission statement

Argonaut Food Stores, a retail giant, hires better-skilled employees than its competitors by employing strategic recruitment practices. It also conducts highly specialized training programs for its employees. In this case, Argonaut has focused on gaining a strong competitive advantage through ________ differentiation.

people

________ is the process by which people select, organize, and interpret information to form a meaningful picture of the world.

perception

A doctor performing hip surgery on a patient illustrates how a service can be produced and consumed simultaneously. This is an example of which service characteristic?

perishability

Company and brand positioning should be summed up in a ________.

positioning statement

Eastline, a manufacturer of outdoor patio furniture, positions its products as superior in weatherproofing and durability. This is an example of ________ differentiation

product

When viewing the market from a buyer's point of view, "communication" corresponds to the ________ component of the marketing mix.

promotion

Which of the following is true about the introduction stage of a new product?

sales growth tends to be slow.

_______ means that consumers are likely to remember good points made about a brand they favor and forget the good points made about competing brands.

selective retention

Many leading business and marketing thinkers are now preaching the concept of "shared value" which recognizes that ________ needs, not just economic needs, define markets.

societal

Cosmetic retailer Lush knows that doing what's right benefits both customers and the company. Their premium beauty products are made by hand from the freshest possible natural ingredients. This is an example of the ________ concept.

societal marketing

Many companies have dropped formal strategic planning models like the BCG because they can be difficult, time consuming, and costly to implement

true

Marketing ROI measures the profits generated by investments in marketing activities.

true

Niche marketing offers smaller companies an opportunity to compete by focusing their limited resources on serving niches that may be unimportant to or overlooked by larger companies.

true

Not all companies that use income segmentation target the affluent.

true

Product, price, place, and promotion make up the elements of a firm's marketing mix.

true

The purchasing power of a population is part of the demographic environment of a company's macroenvironment.

true

When consumers react more favorably to a brand than to a generic or unbranded version of the same product, the brand is said to have positive brand equity.

true

A customer who is both loyal and profitable is referred to as a

true believer

________ are the form human needs take as they are shaped by culture and individual personality

wants

Consistency of a product mix refers to the ________.

ways in which the various product lines are related