MARKETING CHAPTER 2
Last year, Robert's Bike Shop spent $5,000 on advertising and acquired 50 new customers. What was the customer acquisition cost?
$100
True or false: An effective marketing strategy matches opportunities to the firm's resources and objectives.
True
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
Which of the following are examples of the Promotion element of the marketing mix?
Vail Ski Resort runs advertising in California newspapers. Nike creates a short video about its soccer cleats that it posts on YouTube.
An organization's ______ combines multiple marketing plans into a single, large plan.
marketing program
A company that engages in _______ marketing attempts to use the same marketing mix to generally appeal to everyone.
mass
_________ marketers, such as Target, aim at large, clearly defined markets.
mass
After college, John purchased a Toyota Tacoma for $23,000. He got married recently and is shopping for a more family-oriented vehicle. He is considering purchasing a $26,000 Toyota Camry. Over the course of his life, John will have many other opportunities to purchased Toyota vehicles, including a $34,000 Toyota 4Runner for weekend camping activities. John's customer lifetime value is at least
$83,000.
Order the steps of the marketing management process starting with the first step and ending with the last.
- Planning marketing activities - Guding the implements of marketing plans - Controlling marketing plans
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%
Which of the following are examples of products? (Check all that apply.)
A DVD movie A television A diet soft drink A car
Which of the following statements about the marketing strategy planning process are true? (Check all that apply.)
A marketing strategy begins with an evaluation of customers, competitors, and company. The marketing strategy process starts broadly and then narrows down.
Which of the following involves a seller using personal communication to help a customer fix an issue with a completed purchase?
Customer service
Which of the following is true concerning the importance of the Four Ps?
All are equally important.
Which of the following helps companies create marketing strategies that are difficult to replicate and have long-term profit potential?
Breakthrough opportunities
What are the specific steps in the marketing management process? (Check all that apply.)
Controlling marketing plans Directing implementation of marketing activities Planning marketing activities
Which of the following statements about customer service are correct? (Check all that apply.)
Customer service deals with resolving problems after the sale. Customer service is important for getting customers to buy again. Customer service is a form of promotion.
Choose the statements about differentiation that are true. (Check all that apply.)
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. True differentiation occurs when customers see the firm's offering as being better with regard to all four Ps.
Which of the following statements about the Four Ps is true?
Each of the Four Ps contributes to a whole marketing strategy.
What is the best way to describe a targeted market segment?
Homogeneous
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
Which one of the following is the most important factor in determining an appropriate marketing mix?
The needs of the target market
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 examples of a competitive advantage for a Mexican restaurant in a medium-sized town? (Check all that apply.)
It has lower prices and better advertising than its competitors. It has lower prices, a better location, and better customer service than other restaurants in town. It has a better location and lower prices than its competitor.
Which two of the following describe a marketing program? (Check all that apply.)
It implements several marketing strategies at once. It includes more than one marketing strategy.
Which two of the following are characteristics of mass marketing? (Check all that apply.)
It uses a single marketing mix to appeal to everyone. It is a production-oriented approach.
Which of the following could be sources of competitive advantage? (Check all that apply.)
Lower prices than competitors Agreements with the best retailers in the product category A well-trained and experienced sales force A well-known and highly respected brand name
Which two of the following are always true about opportunities? (Check all that apply.)
Managers should look for new opportunities. The best opportunities take advantage of a company's strengths.
Which of the following are true of market segmentation? (Check all that apply.)
Managers use segmentation to help them figure out which groups of customers to serve. A major reason for market segmentation is to help a manager truly understand customers.
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
What are the two parts of a marketing strategy? (Check all that apply.)
Marketing mix Target market
When a seller shares information about a product with large audience, she is doing what?
Mass selling
Which of the following involves a face-to-face conversation in which a seller delivers information about a product to a potential customer?
Personal selling
What are three components of the promotion element? (Check all that apply.)
Personal selling Mass selling Sales promotion
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
Healthy-O Cereals decides to sell its products through retail health food stores. This strategy decision is an example of which marketing mix area?
Place
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.
Denny's adds two new meals to its menus. This is an example of which marketing mix area?
Product
Which of the following are part of the "marketing mix"? (Check all that apply.)
Product Promotion
The marketing manager for Dunkin' Donuts paid for television and magazine advertising to announce improvements in its coffee. The advertising is an example of which variable in the marketing mix?
Promotion
Which of the following is focused on informing people about the features of the product?
Promotion
Which of the following statements about publicity are true? (Check all that apply.)
Publicity includes receiving product reviews in newspaper articles. Publicity includes placing content on the web for customers to find when searching the Internet. Publicity includes creating a video that a company hopes goes viral.
Which of the following statements about mass selling is true? (Check all that apply.)
Publicity is one form of mass selling. Mass selling can involve media that includes magazines and the Internet. Advertising is one form of mass selling.
Which of the following is true about sales promotion? (Check all that apply.)
Sales promotion tries to motivate customers to buy a product. Sales promotion can be directed at channel members. Point-of-purchase materials and catalogs are examples of sales promotion.
_____ management planning involves the creation of a plan to guide the actions of an entire company.
Strategic
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 type of marketing focuses the marketing mix on appealing to a particular group?
Target marketing
Which of the following are true with respect to target marketing? (Check all that apply.)
Target marketing can mean big profits and big markets. Target marketing fulfills the selected group's needs better than mass marketing.
Which of the following are true about the specific qualitative and quantitative screening criteria marketing managers develop? (Check all that apply.)
These criteria are useful in figuring out the markets in which a firm wants to compete. The firm's objectives and available resources help determine the appropriate criteria to use.
The people who make up a company's target market have which two qualities? (Check all that apply.)
They are similar. The company wants to appeal to them.
How does the customer fit in the 4Ps of a marketing mix?
They are the target of the marketing efforts.
A S.W.O.T. analysis helps a company figure out which four of the following? (Check all that apply.)
Weaknesses Threats Strengths Opportunities
A marketing plan is
a document that describes a marketing strategy and various steps and elements involved in carrying out the strategy.
The expense required for a company to obtain a new customer is called the
acquisition cost.
Nonpersonal communication of a product that is paid for by an identified sponsor is known as _________.
advertising
When sellers use paid, nonpersonal communication to engage in mass selling and identify themselves as the sponsors of that communication, they are using
advertising.
Target marketing classifies a marketing mix as
appealing to a selected group of people.
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
The series of organizations that help a product move through the steps necessary to get it from the producing company to the consumer are known as a
channel of distribution.
A(n) ___________ of _____________ is a chain of companies or individuals who help a product move through the various stages of the producer to consumer process.
channel; distribution
A marketing mix is made up of _______ variables that a company manipulates in order to satisfy a chosen group.
controllable
When a company is working to achieve market penetration, it is attempting to increase sales of its ______ products in its ______ markets.
current; present
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
The total profits that a single customer contributes to a firm over the length of the relationship is known as _________ __________ __________.
customer lifetime value
The number of purchases a person could make from a firm during the course of their relationship is called the
customer lifetime value.
First Bank of Canada has people who answer phone calls and help customers resolve any issues they have with the bank. This is an example of
customer service.
The term "mass marketer" is used to
describe large firms that aim at specific groups.
Specifying a target market and the corresponding marketing mix are the two elements that comprise the
development of a marketing strategy.
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 broad possibilities available in the market strategy planning process include market development, market penetration, product development, and
diversification.
What are a company's three potential paths for growth based on the customer equity approach? (Check all that apply.)
enhancing customer value acquiring new customers retaining current customers
A company's customer ___________ is what the company can expect to earn from its current and potential customers during a particular period.
equity
To identify and understand different subgroups in the target market, marketing managers rely on
market segmentation.
A ______ consists of variables a company controls and uses to attract and satisfy a particular target group.
marketing mix
A(n) __________ __________ is a written document that identifies a marketing strategy and spells out the various elements that are necessary for fulfilling that strategy.
marketing plan
Marketing plans are put into action during
implementation.
Customer value _______ when customers perceive more benefits or lower costs.
increases
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
The main reason why firms identify target markets is because it
makes it possible to better satisfy specific customers' needs.
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 successful marketing strategy pairs
opportunities with a company's resources and goals.
When Marcus meets with Lily and talks to her about the advantages of the service offered by his company, he is engaging in
personal selling.
Tasty Freeze sells its frozen yogurt through ice cream shops and grocery stores. The marketing mix variable being considered here is
place
Tom's Drug Store buys toothpaste for $1.00 and decides to mark it up to $1.50. This strategy decision falls into the _______ area of the marketing mix.
price
The "four Ps" of the marketing mix are
product, place, promotion, and price.
The unpaid, nonpersonal presentation of a product or service is referred to as
publicity.
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
Promotion activities that increase customer interest or inspire customers to purchase a product or service and that are not advertising, publicity, or personal selling, fall into the category of
sales promotion.
To encourage customers to try new Cinnamon Toasties cereal, the marketing manager made free samples and coupons available at grocery stores. These are examples of
sales promotion.
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
What managerial process involves cultivating and keeping a relationship that matches an organization's resources with its market opportunities?
strategic management planning
The marketing _______ should be evaluated against the company's objectives.
strategies
Managers should take advantage of opportunities and the best opportunities
take advantage of a company's strengths.
E-Trade uses a website to target specific investors who want a low-cost and convenient way to buy stocks online. This is an example of focusing on a specific ___________ market.
target
The customer represents the ________ market
target
As part of their marketing strategy, companies will identify a _______, a group of similar people whose interest the company wants to gain.
target market
Customer equity is
the amount of money a company can expect to earn from customers during a given time.
If a customer perceives a product to have more features and a higher quality, then the customer perceives the product to have more __________.
value