marketing exam #1

what are the marketing core concepts

-customer needs, wants, and demands -market offerings -customer value and satisfaction -exchanges and relationships -markets and market segmentation -value proposition

business vs consumer markets

-fewer business customers available -business purchases are typically larger -business customers are often geographically concentrated -buying process more complex and formalized

how does the marketing process work?

-understand the marketplace and customer needs & wants -design a customer-driven marketing strategy -construct an integrated marketing program -build profitable relationships & create customer delight -capture value from customers to create profits and customer equity

marketing information system process

assessing information needs, internal databases, marketing intelligence, marketing research, analyzing and using information

internal databases

collections of customer and market information obtained from data sources within the company network

the _____ environment consists of institutions and other forces that affect a society's basic values, perceptions, preferences, and behaviors

cultural

influences on consumer behavior

cultural, social, personal, psychological

cultural influences

culture, subculture, social class

capturing customer value

customer lifetime value: customer loyalty and retention, share of customers customer equity

building profitable relationships

customer relationship management (CRM): customer-perceived value, customer satisfaction engaging customers: digital & social media, consumer- generated content

what is an example of an open-ended question?

how is voting going to help the nation?

​Soon-Yi Park's chain of travel agencies has identified the​ lesbian, gay,​ bisexual, and transgender community as a growing market that spends an increasing percentage of its income on travel. Which of the following would be the LEAST effective component of a marketing plan for​ Soon-Yi to take advantage of this​ opportunity?

implement a mass marketing campaign

phoenix, a popular coffee shop chain, recently opened 400 stores to cater to its rapidly increasing number of patrons. this exemplifies ____

market penetration

teenagers are expected to respond in a similar way to a set of marketing efforts. in other words, this group represents a ____

market segment

arrow is "a different kind of company, manufacturing a different kind of a car": the RoadPro is "like nothing else". statements such as these reflect a firms

positioning

gina parker owns an ad agency in baton rouge. she regularly purchases cleaning supplies for her custodial staff, using the same vendor and ordering relatively consistent amounts of the same products on each purchase. this is an example of _____

a straight rebuy situation

personal influences

age & life cycle, occupation, economic situation, lifestyle, personality

stages in the adoption process

awareness, interest, evaluation, trial, adoption

harley-davidson promotes its motorcycles with images of independence, freedom, and power. harley-davidson has created a ______

brand personality

types of buying organizations

businesses, institutions (lower budgets, captive patrons), governments (US government is larger buyer of goods and services, contracts typically to lowest bidder, domestic vs foreign suppliers)

buyers 'black box' consumer behavior

buyer characteristics, buyer decision process

inelastic demand

change in price has little effect on amount demanded

primary data

data from research conducted for the specific purpose at hand

secondary data

data that have been collected for some purpose other than the problem at hand, can come from internal and external sources

positioning strategy

define competitive advantage, value proposition, positioning statement

the marketing research process

define, develop, implement, interpret & report (-define the research problem and objectives -develop the research plan for collecting information -implement the research plan - collect and analyze the data -interpret and report the findings)

what is the first step in strategic planning?

defining the organizational mission

derived demand

demand for B2b products is caused by demand for consumer products

joint demand

demand occurs for two or more goods used together to create a product

The marketing team of 7 Star​ Inc., a company manufacturing​ smartphones, is currently studying the​ size, density,​ location, age, and occupation of its target market. Which of the following environments is being studied in this​ scenario?

demographic enviornment

macroenviornment

demographics, economic environment, natural environment, technological environment, political and legal environment, cultural environment

Beth Williams works for a marketing research company in Chicago. Her current research involves finding the market potential for a​ client's new line of sports apparel. Given her​ objective, which of the following types of research is the most suitable for​ Beth?

descriptive research

positioning for market segmentation

developing a clear, distinctive, and desirable place for the product offering in the minds of target consumers in comparison to competitors defines the product/firm/brands place relative to: needs of the target market, consumer perceptions, beliefs & attitudes, competitive offerings

the changing marketing landscape

digital and social media marketing, not-for-profit marketing, globalization, sustainable marketing

when consumers are highly involved with an expensive, infrequent, or risky purchase but see little differences among brands, they most likely will exhibit

dissonance-reducing buying behavior

segmentation

divide prospective buyers into groups that have common needs, characteristics, or behavior. respond similarly to marketing actions

influence on buyers the business customer

environmental, organizational, interpersonal, individual

a company sent a trained observer to watch & interact with consumers in their natural environments in order to gain deeper insights on consumer needs. this is an example of ____

ethnographic research

targeting for market segmentation

evaluation each segments attractiveness, select the segment(s) to serve -evaluate market segments -develop segment profiles -select target market segments

_____ consists of inviting 6 to 10 people to meet with a trained moderator to talk about a product, service, or organization

focus group interviewing

bases of segmentation

geography, demographics (age, gender, family life cycle, income), psychographics, behavior (occasions, benefits sought, user status, usage rate, loyalty status)

social influences

groups & social networks, family, roles & status

company-wide strategic planning

guides the organization, defines the business in terms of satisfying customer needs. should be realistic, specific, a good fit with the market environment, based on companies competencies, motivating

secondary data consists of _____

information that already exists somewhere, having been collected for another purpose

Cameron loves to own and be​ up-to-date on the latest technological gadgets available in the market. Among his​ friends, he is always the first to own the latest electronic gadgets. He loves trying out new products before others. Cameron most likely belongs to the​ ________ adopter group.

innovator

as time of adoption of innovation increases, % share of all adopters increases. what are the 5 categories

innovators (lowest), early adopters, early mainstream, late mainstream, lagging adopters

joe kerry, owner of a small bakery, wants to obtain marketing insights to improve his business. joe has a limited budget and would like to gather free secondary data. what is the best option?

internet search engines

The latest trend in the United States involves rediscovering the benefits of​ home-cooked food and the use of organic ingredients. People are choosing to spend hours in the kitchen using only the freshest ingredients to cook healthy and nutritious meals. This change in​ ________ is one of the reasons for the increasing demand for organic ingredients.

lifestyle

sam has been directed to study the demographic, economic, political, & cultural forces that affect an organization. in this instance, sam has been directed to study the ___ of the organization

macroeviornment

primary data collection, contact methods

mail, telephone, and personal interviews. online marketing research. online tracking

The market researchers at HoneyCamp Foods gather daily sales data and sort it by product line and region. With the help of sophisticated tools and​ techniques, they develop the data needed by marketing managers to evaluate the market share of the​ company's different products and also to gain valuable market insights. This mix of people and procedures at HoneyCamp Foods that generate actionable marketing insights represents​ a(n) ________

marketing information system

consumer behavior: marketing & other stimuli

marketing stimuli: product, price, place, promotion other: economic, technical, social, cultural

necessary conditions for good segments:

measurable, substantial, accessible, differentiable, actionable

psychological influences

motivation, perception, learning, beliefs & attitudes

buying decision process of consumer behavior

need recognition, information search, evaluation of alternatives, purchase decisions, post-purchase behavior

new-task buying

new purchase that requires greater decision-making

primary data collection research approaches

observation & ethnographic, survey, experimental

marketing managers and other information users

obtaining customer and market insights from marketing information

some determinants of social class

occupation, education, types of housing, location of housing

Melissa Thomas leads the marketing research division at Tronics​ Inc., a manufacturing company based in Alabama. To improve future sales of the​ company's products, she has decided to collect customer opinions and feedback on the current products offered by her company. For this​ purpose, Melissa is looking for a highly flexible contact method that can be used to gather large amounts of data within the least possible time. In this​ instance, which contact method is most likely to hold the highest appeal for​ Melissa?

online surveys

opportunities & threats of external managing markets

opportunities: external factors that the company may be able to exploit to its advantage threats: current and emerging external factors that may challenge the companys performance

James has decided to buy a new vehicle. His brother John has recently purchased a new truck and recommends the same model to James. James finally decides to buy the same truck. Which of the following sources of information has most likely influenced​ James' purchase​ decision?

personal sources

maslow's hierarchy of needs from bottom to top

physiological, safety, social, esteem, self-actualization

a successful CRM program is expected to help a company achieve:

pin-point high-value customers & cross-sell products, provide higher levels of customer service, create offers tailored to meet specific customer requirements, develop deeper customer relationships.

A particular automobile company works to keep its customers happy after each​ sale, aiming to delight each one of them in order to increase their customer lifetime value. Which of the following steps of the buyer decision process does the company​ exemplify?

post-purchase behavior

buyer responses in consumer behavior

preferences: attitudes, perceptions, beliefs purchase choices: brand, product, time, dealer, amount brand relationships

modified rebuy business buying

previously made purchases with some changes and some decision-making

primary data collection sampling plans

probability sampling: simple random, stratified random, cluster non-probability sampling: convenience, judgement, quota

Ross Stuart is a purchasing manager in a​ Texas-based manufacturing company. He sources most of the raw materials needed by his company from Kramer Corp.​ However, Ross is unhappy with​ Kramer's prices.​ Additionally, he thinks that the quality of the raw materials supplied by Kramer is substandard. Which of the following stages in the business buying process is​ Ross' company currently​ in?

problem recognition

business buying process

problem recognition, general needs description, product specification, supplier search, proposal solicitation, supplier selection, order-routine specification, performance review

the marketing mix (4 P's)

product, promotion, place, price

components to define competitive advantage

product, service, channel, people, & image differentiation

marketing management orientations

production, product, selling, marketing, & societal marketing concepts

marketing intelligence

systematic monitoring, collection, and analysis of publicly available information about consumers, competitors, and developments in the marketing enviornment

descriptive research

purpose: describe market characteristics characteristics: marked by prior formulation of specific hypotheses, preplanned & structured methods: surveys, observation, online, phone, interview

casual research

purpose: determine the cause/effect relationships characteristics: manipulating of interdependent variables, control of other mediating variables methods: experiments, lab, test marketing

exploratory research

purpose: discover ideas & insights characteristics: flexible, versatile, often the front end of total research design methods: expert surveys, focus groups, in-depth interviews, observation

primary data collection research instruments

questionnaires, mechanical instruments

which of the following refers to a non-probability sample in which the researcher finds and interviews a prescribed number of people in each of several categories?

quota sample

a shoe manufacturing company uses ads featuring the members of a country music band with the hope that the band's fans will see them wearing the companys shoes and hence purchase the same brand of shoes. the shoe company believes that the band portrays the image of a _____ to the bands fans

reference group

product characteristics that influence adoption

relative advantage, compatibility, complexity, divisibility, communicability, other factors like cost & social acceptability

straight rebuy business buying

routine purchases with little decision-making

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

selective retention

positioning map

shows consumer perceptions of brands compared to competition, uses important buying dimensions

segment considerations:

size & growth, structural attractiveness, company objectives & resources

fluctuating demand

small changes in consumer demand create large changes in B2B demand

steps to company-wide strategic planning

step 1: define the mission step 2: set company objectives and goals step 3: design the business portfolio step 4: plan marketing and other functional strategies

the key businesses of "kimberley and price" consists of a division that produces and sells breakfast cereals and another that manufactures gardening tools. each of these businesses is called a ______

strategic business unit

strengths & weaknesses of internal managing markets

strengths: internal capabilities that may help a company reach its objectives weaknesses: internal limitations that may interfere with a companys ability to achieve its objectives

hispanic americans tend to be deeply family oriented and make shopping a family affair. older consumers are brand loyal, while younger hispanics have shown increasing price sensitivity and willingness to choose store brands. hispanic americans make up a _____

subculture

marketing enviornment

target markets, marketing channels, competitors, publics, macroenviornmental forces

what is marketing?

the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large

what is the marketing environment?

the actors and forces outside marketing that affect marketing managements ability to build and maintain successful relationships with target customers

microenviornment

the company, suppliers, intermediaries, competitors, publics, customers

marketing research

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

many firms today use RFID technology to ______

track products through various points in the distribution channel

levels of targeting strategies

undifferentiated, differentiated, concentrated (niche), micromarketing (local marketing & individual marketing)

the buying center the business customer

user, influence, buyer, decider, gatekeeper

carrie tends to purchase various brands of bath soap. she has never been loyal to a specific brand; instead she does a lot of brand switching. carrie exhibits _____

variety-seeking buying behavior

situational factors of consumer behavior

when, where, & why consumers buy. conditions under which consumers buy