Marketing Principles Chapter 1-5 Exam

Public Policy and Ethics

Customer privacy, misuse of research findings

A mission statement is a document embodying an organization's short-term goals.

False

The major activity in strategic planning is product innovation.

False

To succeed in today's competitive marketplace, companies must be product-centered.

False

With current technology systems, marketers find it simple to access and sift through the data that is gathered.

False

________ include banks, credit companies, insurance companies, and other businesses that help insure against the risks associated with the buying and selling of goods.

Financial intermediaries

Microenvironment: Competitors

Firms must gain strategic advantage by positioning their offerings strongly against competitors' offerings in the minds of consumers.

Microenvironment: Marketing Intermediaries

Firms that help the company to promote, sell, and distribute its goods to final buyers. - resellers - physical distribution firms - marketing services agencies - financial intermediaries

Political-Social and Cultural Environment

Legislation regulating business is intended to protect: - companies from each other - consumers from unfair business practices - the interests of society against unrestrained business behavior -cause related marketing

(2) Contact Methods: Primary Data Collection

Mail - mail questionnaires Telephone - telephone interviews Personal Interviewing - individual - group - focus group Online - mobile surveys - online focus groups - consumer tracking - experiments - brand communities

Rapid Globalization

Managers around the world are taking both local and global views of the company's: - Industry - Competitors - Opportunities

A(n) ________ is the set of actual and potential buyers of a product or service.

Market

Phoenix, a popular coffee shop chain in North America, recently opened 400 stores to cater to its rapidly increasing number of patrons. This exemplifies ________.

Market Population

Omega Inc. makes lightweight sunglasses with 100-percent UV protection for people who love to hunt, hike, and ride bikes. The company's long-term plans include the development of lenses that, in addition to protecting users from UV rays, would help reduce lens spotting through effective water-sheeting methods. This new feature would be valuable to people who fish. Given the rising popularity of recreational fishing in the United States, Omega products clearly have a huge market potential. In terms of a SWOT analysis, Omega has recognized a market ________.

Opportunity

Four P's

Product, Price, Place, Promotion

Microenvironment: Suppliers

Provide the resources to produce goods and services Treat as partners to provide customer value

(1) Research Approach: Netnography

Qualitative social media research

The key businesses of Kimberley and Price consist 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

Sparex Inc. is a manufacturer of metal bolts that are used by Tesla to manufacture automobiles. In this instance, Sparex acts as a ________.

Supplier

(1) Need Recognition

The first stage of the buyer decision process, in which the consumer recognizes a problem

Customer Relationships

The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction

A market is the set of actual and potential buyers of a product or service.

True

As baby boomers reach their peak earning and spending years, they become lucrative markets for financial services, travel, and entertainment.

True

In class we discussed a concept called "Triple P" which refers to People, Planet, and Profits.

True

Information collected from Internet search engines is an example of secondary data.

True

Katrina Mendoza is a senior manager in a manufacturing firm that hires lobbyists to influence legislation that affects the manufacturing industry. Katrina's firm is taking a proactive stance toward the marketing environment.

True

The contact method of online surveys is one of the most cost-effective of consumer research.

True

The demographic environment is of major interest to marketers because it involves people, and people make up markets.

True

Big Data

a broad term for datasets so large or complex that traditional data processing applications are inadequate.

Integrated Marketing

a comprehensive plan that communicates and delivers intended value

Psychological Factors: Beliefs

a descriptive thought that a person holds about something based on: - knowledge - opinion -faith

market Segment

a group of consumers who respond in a similar way to a given set of marketing efforts

Psychological Factors: Motive

a need that is sufficiently pressing to direct the person to seek satisfaction

Personal Factors: Lifestyle

a person's pattern of living as expressed in his or her psychographics

Attitude

a person's relatively evaluations, feelings, and tendencies toward an object or idea

Marketing Mix

a set of tools known as the 4 P's

Missions Statement

a short, specific written statement of the reason a business exists and what it wants to achieve

Cognitive Dissonance

buyer discomfort caused by post purchase conflict

Cultural Environment

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

Microenvironment

consists of the actors close to the company that affect its ability to serve its customers, the company, suppliers, marketing intermediaries, customer markets, competitors, and publics

Macroenvironment

consists of the larger societal forces that affect the microenvironment—demographic, economic, natural, technological, political, and cultural forces.

Kao Corp., a deodorant manufacturer, invited teenage girls to make an ad that would encourage other girls to buy the product. This program is an example of ________.

consumer-generated marketing

Juanita Petino, a nutritionist, decided to test the effects of two breakfast cereals, Kinglo and Loopy, on different consumer groups. For the purpose of her study, she divided 20 volunteers into two groups and asked the members of one group to have Kinglo cereal and the members of the other group to have Loopy cereal for breakfast. She decided to compare the responses of the volunteers after a week to gain deeper insights into consumer attitude. In this instance, Juanita is using

experimental research

(1) Research Approach: Survey

gathering primary data by asking people questions about their knowledge, attitudes, preferences, and buying behavior

(1) Research Approach: Experimental

gathering primary data by selecting matched groups of subjects, giving them different treatments, controlling related factors, and checking for differences in group responses

The term big data refers to the ________ generated by today's sophisticated information generation, collection, storage, and analysis technologies.

huge and complex data sets

The real value of marketing information lies in how it is used

in the customer insights that it provides

A(n) ________ consists of people and procedures dedicated to assessing information needs, developing the needed information, and helping decision makers use the information to generate and validate actionable customer and market insights.

marketing information system

Personal Factors: Economic

situations include trends in spending, personal income, savings, interest rates

Cultural Factors: Social Class

society's relatively permanent and ordered divisions who members share similar values, interests, and behaviors

(2) Information Search

the stage of the buyer decision process in which the consumer is motivated to search for more information. Sources: - personal - commercial - public - experimental

(3) Evaluation of Alternatives

the stage of the buyer decision process in which the consumer uses information to evaluate alternative brands in the choice set

Customer Journey

the sum of the ongoing experiences consumers have with a brand that affect their buying behavior, engagement, and brand advocacy over time

Designing the Business Portfolio

- Analyzing the portfolio - SBU (strategic business units)

Microenvironment: Customers

- Consumer markets - Business markets - Reseller markets - Government markets - International markets

Marketers Obtain Information from:

- Internal Data - Marketing Intelligence - Research

Setting Company Objectives/Goals

- Long term planning - Annual planning - Strategic plans

Written Proposal

- Management Problems - Research Objectives - Info needed - How the results will help management decisions - Budget

Partnering to Build Customer Relationships

- Partnering w other company departments - Partnering w others in the marketing system

Primary Data Collection

- Research approaches - Contact methods, sampling plan - Research instruments

The Demographic Environment

- baby boomers (Jim) - generation X (mom) - millennials (Aimee) - generation z (me) - generation alpha (AJ)

(3) Implementing the Research Plan

- collecting the info - processing the info - analyzing the info

(4) Interpreting & Reporting Findings

- interpret findings - draw conclusions - report to management

Social Factors: Groups and Social Networks

- reference groups - opinion leaders - word of mouth - celeb influencers - online social network

Strategic Planning Steps

1. Defining the Company's Mission 2. Setting Company Objectives/Goals 3. Designing the Business Portfolio

The Marketing Process

1. Understand the marketplace and customer needs and wants 2. Design a customer-driven marketing strategy 3. Construct an integrated marketing program that delivers superior value 4. Build profitable relationships and create customer delight 5. Capture value from customers to create profits and customer equity

Which of the following companies has a market-oriented business definition?

A cosmetic company, whose business definition is: "We sell hope and self-esteem."

Positioning

Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target markets

Needs

Basic requirements for human survival

Price & Malone Corp., a company based in Houston, caters to a market of individuals and households that buy goods and services for personal consumption. Price & Malone caters to a ________ market.

Consumer

Sustainable Marketing

Corporate ethics and social responsibility have become important for every business.

Environmental Sustainability

Developing strategies and practices that create a world economy that the planet can support indefinitely

A company sent a trained observer to watch and interact with consumers in their natural environments in order to gain deeper insights on consumer needs. This is an example of survey research.

False

Customer brand advocacy can occur with either satisfied or dissatisfied customers.

False

Market offerings are limited to physical products.

False

P&G "Tide Loads of Hope" program provides mobile laundromats and loads of clean laundry to families in disaster-stricken areas. This is an example of environmental marketing.

False

Cultural Factors: Subcultures

Groups of people within a culture with shared value systems based on common life experiences and situations (latinos)

Generational Marketing

Important in segmenting people by lifestyle or life stage instead of age

Microenvironment: The company

In designing marketing plans, marketing management takes other company groups into account. - Top management - Finance - HR - Purchasing - Operations - Accounting

Demographic Trends

Include changing age and family structures, geographic population shifts, educational characteristics, and population diversity

Demographic Environment

Involves people, and people make up markets

The Marketing Concept

Market, Customer Needs, Integrated Marketing, Profits through customer satisfaction

The Selling Concept

Market, Existing Products, Selling & Promoting, Profits through sales

Doris has been directed to study the forces close to a company that affect its ability to serve its customers, such as the company, suppliers, marketing intermediaries, customer markets, competitors, and publics. In this instance, Doris has been directed to study the ________ of the company.

Microenvironment

Technological Environment

Most dramatic force in changing the marketplace. New products, opportunities. Concern for the safety of new products.

Cultural Factors: Culture

Set of basic values, perceptions, wants, and behaviors learned by an individual from family and other important institutions (health/fitness culture)

Natural Environment

The physical environment and the natural resources that are needed as inputs by marketers or that are affected by marketing activities

(5)Post-purchase behavior

The stage of the buyer decision process in which consumers take further action after purchase, based on their satisfaction or dissatisfaction

Demography

The study of human populations: size, density, location, age, gender, race, occupation, and other statistics

Personal Factors: Age & life Stage

affects tastes in food, clothes, furnitures, ad recreation

Personal Factors: Occupation

affects the goods and services bought by consumers

Microenvironment: Publics

any group that has an actual or potential interest in or impact on an organization's ability to achieve its objectives. - Financial Publics - Media Publics - Government Publics - Local Publics - General Publics

At Gina's retail stores, the posted policy reads, "Without our customers, we don't exist." Gina and her staff aim to delight each customer, and they are quick to offer discounts or extra services whenever a customer is anything less than satisfied. Gina and her staff strive to make every customer a repeat customer. It is most accurate to say that instead of focusing on each individual transaction, Gina and her staff put a priority on ________.

capturing customer lifetime value

According to the five-step model of the marketing process, which of the following is the final step in creating value for customers?

capturing value from customers to create profit and customer equity

Psychological Factors: Learning

changes in an individual's behavior arising from experience though: - drives - stimulus - cues - responses - reinforcement

Internal Databases

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

Social Factors: Role and Status

defined by a person's position in a group (sorority president)

Which of the following is the first step in strategic planning?

defining the organizational mission

Which of the following is the first step in the marketing research process?

defining the problem and objectives of the study

Pat, a category manager of energy drinks at Walmart, is currently using electronic scan data of consumer purchases from the company's stores to arrive at crucial marketing decisions. In this instance, Pat is using

internal databases

(1) Research Approach: Observation

involves gathering primary data by observing relevant people, actions, and situations

(1) Research Approach: Ethnographic

involves sending trained observers to watch and interact with consumers in their "natural environments"

Sam has been directed to study the demographic, economic, political, and cultural forces that affect an organization. In this instance, Sam has been directed to study the ________ of the organization.

macroenvironment

Consumer Markets

made up of all the individuals and households that buy or acquire goods and services for personal consumption

Differentiation

making a product different from other similar products

Customer Relationship Management (CRM)

managing detailed information about individual customers and carefully managing customer touch points to maximize customer loyalty

A church targeting different demographic groups to increase attendance is an example of ________.

not-for-profit marketing

Marketing Information System (MIS)

people and procedures dedicated to assessing information needs, developing the needed information, and helping decision makers to use the information to generate and validate actionable customer and market insights

Frontier is an ice cream shop chain based in Kenosha, Wisconsin. It recently introduced a new flavor called "Fabulous Flight", which became immensely popular. This exemplifies ________.

product development

Companies can succeed against their competitors by all of the following EXCEPT

providing the same product as the competition

Psychological Factors: Motivation research

refers to qualitative research designed to probe consumers' hidden, subconscious motivations

Some fast-food restaurants offer tasty and convenient food at affordable prices, but in doing so they contribute to a national obesity epidemic and environmental problems. These fast-food restaurants overlook the ________ philosophy.

societal marketing concept

Market Offerings

some combination of products, services, information, or experiences offered to a market to satisfy a need or want

Cathy's Clothes is a small yet successful retail chain that sells women's clothing and accessories with a focus on buyers who have relatively modest means. For this specific purpose, the firm has rolled out several marketing initiatives aimed at women of a specific demographic. This is an example of ________.

target marketing

Exchange

the act of obtaining a desired object from someone by offering something in return

AMA Marketing Definition

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

Marketing Environment

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

Marketing Management

the art and science of choosing target markets and building profitable relationships with them

(4) Purchase Decision

the buyer's decision about which brand to purchase

Consumer Buyer Behavior

the buying behavior of final consumers - individuals and households that buy goods and services for personal consumption

Demand

the desire to own something and the ability to pay for it

Marketing Segmentation

the division of a market into distinct groups of buyers who have different needs, characteristics, or behaviors and who might require separate products or marketing mixes

Marketing Strategy

the marketing logic by which the company hopes to create customer value and achieve profitable customer relationships

Adoption Process

the mental process through which an individual passes from first hearing about an innovation to final adoption - awareness - interest - evaluation - trial - adoption

Social Factors: Family

the most important consumer-buying organization in society

Share of Customer

the portion of the customer's purchasing that a company gets in its product categories

What is marketing?

the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return

Psychological Factors: Perception

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

Strategic Planning

the process of developing and maintaining a strategic fit between the organization's goals and capabilities and its changing marketing opportunities

A market

the set of actual and potential buyers. Consumers market when they - search for products - interact w companies to get info - make purchases

Marketing Intelligence

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

Marketing Research

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

Psychological Factors: Selective distortion

the tendency for people to interpret info in a way that will support what they already believe

Psychological Factors: Selective attention

the tendency for people to screen out most of the information to which they are exposed

Psychological Factors: Selective Retention

the tendency to remember good points about a brand they favor and forget good points made about competing brand

Customer Equity

the total combined customer lifetime values of all of the company's customers

Personal Factors: Personality

the unique psychological characteristics that distinguish a person or group

Customer Lifetime Value (CLV)

the value of the entire stream of purchases a customer makes over a lifetime of patronage

Wants

things that add comfort and pleasure to your life

Not-For-Profit Marketing

this marketing can help organizations attract membership, funds, and support.