MARKETING EXAM 1

Ethical Relativism

states morality is relative to the norms of one's cultural. Whether the actions are right or wrong depends on moral norms. When in fact, the same action may be morally right in one society but morally wrong in another in another society.

ethical absolutism

states that moral commands are always true. Certain actions are right or wrong, regardless of context of the act. For example, stealing is always wrong.

The psychographic variable that includes numerous characteristics related to people's activities, interests, and opinion

lifestyle

Dog (BCG Matrix)

low market growth and low market share. For example, for apple it would iPod touch or iPod nanos

An organization's business goals should be derived from its

mission statement

LARC Salon is part of hair and personal care service industry. In what type of competitive enviroment operating in?

monopolistic competition

An expected level of performance against which actual performance can be compared is a

performance standard

The forces of the marketing environment include

political, legal and regulatory, sociocultural, technological, economic, and competitive.

the two basic types of sampling that marketing researchers use is

probability and nonprobability

Assuming that inflation is low, high buying power characterizes the ____ stage of the business cycle.

prosperity

Social Responsibility

relates to an organization's obligation to maximize its positive impact and minimize its negative impact on society. Something companies, organizations, or people choose to do and has a total effect of marketing.

Ethics Responsibility

relates to the an individual and or group decisions. There are judgements about what is right or wrong. This is something companies, organizations, or people must do.

Recission

rising unemployment rates and total budget buyers decline and consumer buying declines

Age, rate of product use, location, and gender are all examples of common

segmentation variables

core competency

something a company does well in

Any constituent who has a claim in some aspect of a company's products, operations, markets, industry, or outcomes is known as a(n)

stakeholder

code of conduct

standards by which to judge the reliability marketing research include code of conduct developed by the American Marketing Association to promote ethical research

Based on the work by the Boston Consulting Group, products with a dominant share of the market and good prospects for growth are

stars

Ethical Utilitarianism

states happiness of greatest number of people in society does the greatest good for the greatest many.

monopolistic competition

a market structure in which many companies sell products that are similar but not identical

SWOT analysis

a planning tool used to analyze an organization's strengths, weaknesses, opportunities, and threats

Recovery

a rise in business activity after a recession or depression high unemployment rates begin to decline and both willingness and ability to buy increases.

the atitude Adventure Academy is developing its marketing mix for the coming year. Its managers know that they must first select ____ which may be the most important decision they make in the planning process.

a target market

Strategic Planning Process

1. Mission Statement and Goals 2. Development of strategies is using resources and strategies to achieve objections to achieve overall goal. (action steps). 3. SWOT analysis internal and external evaluation of company or organization. 4. Functional area establishes own objections and strategies related to overall mission and goals of the company. eg marketing department etc. 5. Evaluation.

Monopoly

A market in which there are many buyers but only one seller. water utlities for example

pure competition

A market structure characterized by an extremely large number of sellers, none strong enough to significantly influence price or supply

Oligopoly

A market structure in which a few large firms dominate a market. hetergenous ups fedex and mail

Depression

A period of low economic activity and rising unemployment

detailed swot analysis

A swot analysis is an internal evaluation of a company. This helps better grow and develop a company. Strengths- what they company is doing well. This is internal and a core competency which is something the company does well and leads to an advantage. Weaknesses are things the company does not do well in in some areas and room for improvement. Opportunities are external and deal majority with the target market. The threats are affected by the industry including sister companies and competitors. In the end, the company's main objection is too limit as many threats and weaknesses as possible.

Mission Statement

An organization's business goals should be derived from its...

Customer cost is

Anything the buyer gives up to receive the benefit that provides monetary, nonmonetary, time, effort, risk.

EXperience Limited is a company which offers tours and vacations that include participation in an extreme sport, such as hang-gliding, bungee jumping, skydiving, and motocross. Adrian Moss, EXperience Limited's owner, has just finished developing the strategic plan, including marketing objective of growing his customer base by 15% during the coming year. He believes that the best way of reaching that objective is to promote to the college-aged student. In the past, the majority of his sales have been to males under the age of 29, participating in hang-gliding and bungee jumping at various tourist locations. He wants to expand his skydiving and motocross tours, but isn't sure whether or not the expansion will be profitable. He currently has a database containing all the customers who have gone on a hang-gliding or bungee jumping vacation with his company.The information in EXperience Limited's database could be best used to develop

CRM program

Total Budget Competitors

Compete for the limited financial resources of the same customers. For example, the total brand competitors for Diet Coke could be a newspaper, gum, and or chips.

. List the environmental forces.

Competitive Economic Political Legal and Regulatory Technological Socio-cultural

u believe one of the most effective ways to remind your staff about key marketing concepts and objectives is to give them desk plaques with simple phrases. You want to create a phrase that reminds them that their primary focus should be creating customer value. ​ Which of the following phrases best tells the story of what customer value is?

Customer Value = Customer Benefits - Customer Costs

Which of the following companies is the best example of a service marketer?

FedEx

Product Competitors

Firms that compete in the same product class but market products with different features, benefits, and prices. For example, having a Sober Life water versus a Pepsi

Brand competitors

Firms that market products with similar features and benefits to the same customers at similar prices. For example, Diet Coke versus Diet Pepsi.

The Consumer Financial Protection Bureau settled a claim with the Bank of America for deceiving customers and unfairly billing them for services such as credit monitoring and identity theft protection. Bank of America agreed to provide refunds to 2.9 million people and pay $45 million in fines for their illegal credit card practices. Their deceptive practices dated to 2000 where they had billed customers for products such as "Privacy Guard" or "Privacy Assist" without first obtaining authorization for the products. The $45 million in fines includes $25 million as a civil penalty that will be paid to the Office of the Comptroller of the Currency and $20 million to the Consumer Financial Protection Bureau. The Bureau also claims that Bank of America deceived about 1.4 million customers into making about $268 million in payments by, among other things, improperly telling them the first 30 days of coverage were free or the benefits were greater than existed. ​ Refer to Scenario 3.4. Which environmental force is Bank of America responding to by agreeing to pay fines and refunds to consumers?

Legal and regulatory

four competitive growth strategies

Market penetration- Increase sales in current markets with current products it has. Market development- Increase in sales of current products in new market. Like toothpaste for Arm Hammer as well as baking soda etc. Product development-new increase of sales by improving products or developing new products for their current market. A huge example of this is automotive industry like Ford, Toyota, etc. Diversification- This is developing new products for and to be sold in new markets. For example, Nike+ and Apple to track workouts.

Environmental Analysis

is the process of assessing and interpreting information gathered through scanning. It is applied by assessing the current markets.

Making modifications to packaging or brand names involves the _____ component of the marketing mix.

Product

____ competitors are those in the same product class but their products have different benefits features and prices.

Product

When Home Depot develops new carpet fibers that are highly stain-resistant and durable, it must educate consumers about the product's benefits. This calls for activity in which of the following marketing mix variables?

Promotion

Generic Competitors

Provide very different products that solve the same products and satisfying the same customer need. For example, tap water from home.

Product competitors

Refers to the competitors in a with a certain product area having similar products but different in terms of price, benefits, and certain features associated with the product. For example: Samsung tablet has its Kindle fire as its competitor product.

A recent meeting of the Council of Supply Chain Management Professionals featured an executive from Dell, which is known for its ability to customize computers to customers' needs as well as their ability to provide quality products at economical prices through their retail channel. The executive discussed the firm's capabilities regarding the ability to produce products that are "built-to-order" and noted that recent customer insight showed customers were less willing to wait 7 to 10 days to receive their computer even though it was built to their specifications. As a result of this customer trend, Dell began forging relationships with retailers such as Walmart to provide a limited number of computer models in the retailers' stores. In order to fulfill the orders to Walmart, Dell was required to make changes in its production and manufacturing such as holding more products in inventory and utilizing different modes of transportation. For example, Dell was able to shift from a focus on air transportation to over-the-road trucking, which enabled it to cut costs in some areas. As Dell shifted from a "build-to-order" manufacturer to a "make-to-stock" manufacturer, it also had to make investments in customer analytics to identify customer needs as well as collect insight regarding pricing. This customer insight was especially important to the retail partners like Walmart, which requires its vendors to justify product stock decisions and provide proof that retail inventory will sell at the projected price points. Dell's ability to modify its business model by forging relationships with retailers such as Walmart as well as customer insights has helped the company achieve its revenue and profitability goals. ​ Which environmental factor is exemplified by the customer trend that consumers were no longer willing to wait 7 to 10 days for a "build-to-order" computer and led Dell to modify its business model to become a "make-to-stock" manufacturer?

Sociocultural

Market Orientation

The Gap conducted marketing research to identify explanations for the sales declines their various retail stores (e.g., Gap, Banana Republic, and Old Navy) are experiencing across the United States. The research focused on understanding the shopping habits and desires of their target market—the Millennial generation. The results indicate that Millennials are more interested supporting organizations who stand for something—or support a cause or contribute to providing social justice. The information can assist The Gap in reorganizing their company, developing new products and communicating with their target audiences to be more effective. Based upon this information, which orientation best applies to The Gap?

market research

The activity of gathering information about consumers' needs and wants.

Marketing Mix is..

The center is the customer. The mix variables are product, price, distribution, promotion. The environment forces are economic, political, legal and regulatory, technological, socio-cultural, competitive.

Successful customer relationship is where..

The customers benefits outweigh the customer cost. Customer value= Customer benefits (OUTWEIGH) - Customer Cost

pyramid of corporate social responsibility

The first and most obvious is the economic responsibility to be profitable and have money coming in and out of your corporation. The second is the legal responsibility to obey the laws set forth by society. The third is the ethical responsibility. That is to do what is right even when business is not obligated to do so by law. The fourth is the philanthropic responsibility. it is best described by the resources contributed by corporations toward social, educational, etc. so you can be a good cooperate citizen.

Definition of Marketing

The process of creating, pricing, distributing, and promoting goods, services, and ideas. As well as, facilitate satisfying exchange relationships with customers.

Identify the two social responsibility issues and provide one example of each.

The two social responsibility issues are sustainability issues are programs designed to protect and preserve the nature or environment. An example of sustainability is reducing carbon footprint such as Coca-Cola's massive fleet of delivery trucks contributed 3.7 million metric tons of greenhouse gases to the world. They have made major changes to their supply chain practices including investing in new alternatively fueled trucks. Their initiatives are intended to create a 25% reduction in their carbon footprint by 2020. Consumerism issues are organized efforts by individuals, groups, and organization seeking to protect consumers rights. Rights such as safety, informed, choose, and be heard. An example of consumerism issues is when an cars air bag is defective and or other serious issues a car dealership or owners would send out a defective warning or letter to the consumers to protect their safety and to be informed.

Which of the following statements about marketing environment forces is correct?

They influence customers by affecting their lifestyles, standards of living, and preferences and needs for products.

Question Markets (BCG Matrix)

This is high market growth and low market share. An example would Apple Tv.

In marketing research, a sample is best described as

a limited number of units chosen to represent the characteristics of a total population

the marketing concept is

a management philosophy

One overlooked internal source of secondary marketing information discussed in the text is

accounting records

Xperience Limited is a company which offers tours and vacations that include participation in an extreme sport, such as hang-gliding, bungee jumping, skydiving, and motocross. Adrian Moss, EXperience Limited's owner, has just finished developing the strategic plan, including marketing objective of growing his customer base by 15% during the coming year. He believes that the best way of reaching that objective is to promote to the college-aged student. In the past, the majority of his sales have been to males under the age of 29, participating in hang-gliding and bungee jumping at various tourist locations. He wants to expand his skydiving and motocross tours, but isn't sure whether or not the expansion will be profitable. He currently has a database containing all the customers who have gone on a hang-gliding or bungee jumping vacation with his company.The fact that college enrollments have been increasing at a fast rate the past few years is anexample of _____ and creates a _______ for EXperience Limited.

an environmental factor; marketing opportunity

Customer benefits...

anything a buyer receives in an exchange based on perception and judgements of customer.

What is the final step in establishing an implementation timetable?

assigning responsibility for completing each activity.

Your marketing team has started the analysis of your company's marketing environment. Competition has been very intense in recent years in your industry, so you decide to place more emphasis on analyzing the competitive forces in your industry. You group your competitors into the four types that a firm normally faces. In general, which one of the four types of competitors do you think will be the most formidable for your company?

brand competitors

_______ competitors are the significant to marketers because buyers see the different products of these firms as direct substitutes for each other

brand competitors

Seller Company sells small refrigerators. It usually sells these refrigerators to hotels and offices. However, sometimes its customers choose to buy their refrigerators because they do not have a lot of room for a full-size refrigerator in their houses and apartments. Its primary market is the _____________ market, but it also sells to the _____________ market.

business; consumer

A target market

is a specific group of customers on whom an organization focuses its marketing efforts.

EXperience Limited is a company which offers tours and vacations that include participation in an extreme sport, such as hang-gliding, bungee jumping, skydiving, and motocross. Adrian Moss, EXperience Limited's owner, has just finished developing the strategic plan, including marketing objective of growing his customer base by 15% during the coming year. He believes that the best way of reaching that objective is to promote to the college-aged student. In the past, the majority of his sales have been to males under the age of 29, participating in hang-gliding and bungee jumping at various tourist locations. He wants to expand his skydiving and motocross tours, but isn't sure whether or not the expansion will be profitable. He currently has a database containing all the customers who have gone on a hang-gliding or bungee jumping vacation with his company.According to the BCG matrix, the hang-gliding and bungee jumping tours have been a ____for EXperience Limited, while the skydiving and motocross tours represent a_____________.

cash cow; question mark

you are shopping for a laptop, or tablet for notes and research. you belong a(n)

consumer market

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

In addition to the proliferation of new organic brands, many conventional marketers have introduced organic versions of their products, including Orville Redenbacher, Heinz, and even Walmart. These firms are responding to changes in

cultural values

The marketing mix is built around the

custom

Long-term relationships with profitable customers is the key objective of

customer relationship management

What is marketing's focus?

customers

Marketing objectives

is a statement of what is to be accomplished through marketing activities. For example, making a SMART goal.

Environmental scanning

is the process of collecting information about forces in the marketing environment. It is applied by doing a swot analysis.

specturm uses a segementation strategy for its cable tv packages based on market characteristics

demographic segmentation

After a firm has identified an appropriate targeting strategy, the next step in the target market selection process is

determining which segmentation variables to use

Marketing Environment is

dynamic and changing

The marketing environment is best described as being

dynamic and changing

Zappos collects information about a wide variety of competitive, economic, political, legal and regulatory, technological, and sociocultural forces that affect its marketing activities. This process is called

environmental scanning

CRM (Customer Relationship Management)

establishing long-term buyer seller relationships.

The 1990 food labeling and education act directly prohibits

exaggerated health claims on food packages

Star (BCG Matrix)

high market growth and market share for example apple iPhones and iPads.

companies that incorporate ethics and social responsibility into their strategic plans are likely to experience

improved marketing performance

Marketing Strategies

is a plan of action for identifying and analyzing a target market and developing a marketing mix to meet the needs of that market. For example, Facebook has an in-depth strategy that deals with promotion, engagement, events, insights, ads, etc.

Southwest Airlines has a history of being able to retain its employees due to the atmosphere and culture of the company. Employees have been known to dress up in costume on an airplane, engage in "games" with the passengers, and generally provide a fun atmosphere for traveling. While other airlines have low rates of customer satisfaction, Southwest tends to maintain a high rating with its customers. Recent gas price hikes have caused most airlines to charge for checked luggage and to fill every flight to its maximum, adding to the negative experience of airline travel. Southwest keeps its costs low through several methods, one being that they do not serve meals on flights, or provide pre-boarding passes. The typical flight is two hours or less and occurs between several selected cities rather than flying to practically anywhere in the country. Southwest is known for its low fares, its dependability, and its on-time flights.The fact that Southwest Airlines has a history of being able to retain its employees is a ___ inits SWOT analysis.

strength

John Deere's strong name recognition and solid customer demand for its farm and garden equipment are two elements of the firm's

strengths

Successful business organizations should take actions to convert internal weaknesses into ____ and external threats into ____.

strengths; opportunities

EXperience Limited is a company which offers tours and vacations that include participation in an extreme sport, such as hang-gliding, bungee jumping, skydiving, and motocross. Adrian Moss, EXperience Limited's owner, has just finished developing the strategic plan, including marketing objective of growing his customer base by 15% during the coming year. He believes that the best way of reaching that objective is to promote to the college-aged student. In the past, the majority of his sales have been to males under the age of 29, participating in hang-gliding and bungee jumping at various tourist locations. He wants to expand his skydiving and motocross tours, but isn't sure whether or not the expansion will be profitable. He currently has a database containing all the customers who have gone on a hang-gliding or bungee jumping vacation with his company.The college-aged student represents EXperience Limited's _____, and the tours its operatesrepresent the ______ element of the marketing mix. target market; product

target market; product

less randomness and more difficulty in obtaining a sample size are disadvantages of

telephone surveys

Consumerism is

the efforts of independent individuals, groups, and organizations to protect the rights of consumers.

Not true about business markets

the purchase is always made by more than one individual.

What is the purpose of Market Research

the purpose of market research is to inform organization about the wants and needs of the customer. This also allows for marketing opportunity and allows companies to make informed decisions and market research is always changing (Dynamic).

Cash Cows (BCG Matrix)

this is where a product or company has a large market share but little growth. For example, MacBook's, Apple iTunes, Apple iWatch

Southwest Airlines has a history of being able to retain its employees due to the atmosphere and culture of the company. Employees have been known to dress up in costume on an airplane, engage in "games" with the passengers, and generally provide a fun atmosphere for traveling. While other airlines have low rates of customer satisfaction, Southwest tends to maintain a high rating with its customers. Recent gas price hikes have caused most airlines to charge for checked luggage and to fill every flight to its maximum, adding to the negative experience of airline travel. Southwest keeps its costs low through several methods, one being that they do not serve meals on flights, or provide pre-boarding passes. The typical flight is two hours or less and occurs between several selected cities rather than flying to practically anywhere in the country. Southwest is known for its low fares, its dependability, and its on-time flights.In Southwest Airlines' SWOT analysis, the rising gas prices are a(n) ____, while the fact that other airlines are charging for all checked baggage may create a(n) ________,

threat; opportunity

The essence of marketing..

to develop satisfying exchanges from which both customers and marketers benefit

In today's marketing environment, competitors can take on many forms. For example, Coke Zero can be seen as a competitor to Stride Mint Chewing Gum. In this circumstance, these two products are described as ____ competitors.

total budget

Companies that compete for same limited financial resources of the same customers are known as

total budget competitors

prosperity

unemployment is low and total income is relatively high