MKT 340 Midterm

What are the four Ps of marketing mix?

product, price, place, and promotion

Mary works for a small computer software company. Her boss is constantly improving the company's products but neglects customers, billing, and promoting the company. Her boss is probably stuck in the__________ era of marketing.

production-oriented

All of the following terms are generally associated with the definition of corporate social responsibility EXCEPT

profit

All of the following statements regarding marketing metrics are true EXCEPT

they cannot be used to project the future

Ford Motor Company may be thinking of announcing that it will severely cut back its automobile production. For parts companies supplying Ford its parts, this cut back in production represents a(n)

threat

What are the elements of an exchange relationship?

when a company provides goods, services, communication, and delivery; and the consumer provides money, loyalty, information, and trust in return

What is a market development strategy?

A growth strategy that focuses on new markets as the way to increase sales.

What is market testing?

A new product or product prototype is introduced to various consumer markets to get a measure of the product's market acceptance.

What are segment attractiveness factors?

Evaluating market segments based on the following factors: substantial, reachable, profitable, and identifiable.

What are early adopters?

In the diffusion of innovation model, the new product adopters that act as "opinion leaders" that look to innovators as they study a product before buying.

What are the 5 adopter types in the diffusion of innovation model?

Innovators, early adopters, early majority, late majority, laggards.

What is segmentation, targeting, and positioning?

The 3rd step in the market planning process which is used to identify opportunities.

What are early and late majority adopters?

Two adopters groups that represent most of the market (nearly 70%) and take much less risk and only buy products after the product is fully vetted on the market.

What are demographic market segments?

Upper income women, environmentally sensitive millennials, and socially responsible baby boomers that SBUs market too.

What is co-branding?

When HyVee partners with Starbucks to place coffee shops inside its stores.

What is a concentrated target marketing strategy?

When a product has one, clearly most attractive market segment, that can be reached with a single marketing strategy.

What is a differentiated target market strategy?

When a product has several distinct and attractive market segments that require a tailored marketing approach for each market.

What is undifferentiated target marketing strategy?

When a product provides the same benefit to potential customers regardless of segmentation variables and therefore the marketing approach can be the same for all potential customers.

What is oligopolistic competition?

When a small group of large companies dominate a market and create high price competition and high demand/price elasticity.

What is monopolistic competition?

When many companies are in a market providing differentiated products with less price competition.

What is pure competition?

When many firms are selling the same product (corn, gold, etc.) at the same price.

Which of the following factors, listed in a situation analysis for a major U.S. auto manufacturer, is the best example of a threat?

A New York law firm has filed a $10 million class action suit against the company on behalf of car owners whose gas tanks exploded.

What is a market penetration strategy?

A growth strategy that aims to capture more customers while not changing target markets or make modifications to products.

What is concept testing?

A product description is created and presented to a potential customer group or an internal company group; The purpose of this process is to gather opinions regarding the product before product development takes place.

What is a specialty product?

A product that has a very high price and has a highly selective and limited distribution system

What is an unsought product?

A product that has little consumer awareness of consumer knowledge and is most effectively sold using direct sales methods.

What is a shopping product?

A product that requires a considerable amount of comparative analysis by the consumer in their "information search" consumer decision making process.

What is a star?

An SBU with a high market share in a market that is growing very rapidly.

What is a question mark?

An SBU with a low market share in a rapidly growing market.

Retailers accumulate merchandise from producers in large amounts and sell to consumers in smaller amounts When they sell to consumers, it is considered ________ marketing.

B2C

What are private label brands?

Brands that are primarily managed by retailers.

Psychographics is the segmentation method that delves into how consumers

describe themselves.

What is market targeting?

Choosing the most attractive market segments to pursue with your marketing plan.

What is positioning?

Creating a clear understanding of a product in the mind of the customer which differentiates the product from its competition.

What are the 4 elements of a sustainable competitive advantage?

Customer excellence, operational excellence, product excellence, and locational excellence

What is internal secondary data?

Data that is collected by internal company systems for use by functions like finance or supply chain management; Marketing management often uses these data to address business and marketing issues.

What is primary data?

Data that is collected to address a specific marketing or business issue.

What is age, gender, income, and education?

Demographic market segmentation variables.

What is cost?

Differentiated market strategies have one clear drawback when compared to undifferentiated market strategies.

What is a substantial market segment?

For a market segment to be attractive it must be big enough to justify the marketing expense to develop an effective customer base.

What is a profitable market segment?

For a market segment to be attractive it must be capable of generating a profit for the business.

What is a reachable market segment?

For a market segment to be attractive it must have good communication and transportation infrastructure necessary to promote and distribute the product effectively.

What are product lines?

Groups of products that are similar.

What are innovators?

In the diffusion of innovation model, new product adopters that help a product gain acceptance in the market that are also risk takers and the first to buy a new product.

What is place in the marketing mix?

Internet sites, physical stores, kiosks and places SBUs do business

What are the stages of the product life cycle?

Introduction, growth, maturity, and decline

How might a technology company like Apple ensure that it behaves in a socially responsible way toward its customers?

It can protect the privacy of personal information collected on its website.

What is predatory pricing?

It is illegal for a company to set an exceptionally low price for a product or products with the intention of driving other companies in the market out of business.

What is conscious marketing?

Marketing concept involving marketing's greater purpose, stakeholders and their interdependence, corporate leadership creating corporate culture, and an understanding that company decisions are ethically based.

What is information search?

The degree of perceived risk makes this step in the consumer decision process longer.

What are SWOT opportunities?

The global fitness trend and environmental trend.

What is a product development strategy?

The growth strategy pursued when a hand-held device company adds a better camera, bigger screen, and screen touch navigation features to its new products.

What is segment attractiveness?

The measure used to evaluate each market segment to help determine which segments will be targeted.

What is market segmentation?

The process of dividing customers into groups with different needs, wants, and characteristics.

What is information search?

The second step in the consumer decision process following need identification.

What is a product's relative market share?

The total sales of an SBU as a percent of the overall market for its products or product line

What is a value proposition?

The unique attributes of a product or service that clearly differentiates the product from competition.

What is communication?

The value created by the promotion P of marketing.

What is benefit segmentation?

This segmentation method is used when electric car markets are organized based on car benefits such as positive environmental performance, low operating expense, and a renewable energy source for operation.

The consumer buying process begins when

a consumer recognizes an unsatisfied need

All of the following statements regarding corporate social social responsibility are true EXCEPT

a firm's responsibilities to society are not associated with the demands, expectations, requirements, and desires of various stakeholders.

What is a convenience product?

a product that has a low price and is highly available through a variety of retailers - where little decision making is required.

Segmentation, targeting, and positioning

are part of a firm's marketing strategy

When conducting a survey about choosing vacation destinations, Megan should __________________ in order to get reluctant respondents to provide honest information.

assure consumers that their individual responses will be kept confidential

Quantitative research offers a means to confirm ideas through

surveys or experiments

For corporate leaders, their firm's ability to __________ must be of paramount importance.

balance shareholder interests with the needs of society

Which of the following descriptions embodies conscious marketing principles?

both ethically and socially responsible

The idea of value-based marketing requires firms to charge a price that

captures the value customers perceive that they are receiving

The owner of A.C. Flora Ford Dealership wanted to know why consumers chose his company to purchase a car. He was fairly sure that most customers had one of three reasons - service, reputation, or location - but wanted to know which was revealed as the most frequent reason for purchasing. A.C. Flora will probably use a survey with _________________ questions to address his research problem.

close-ended

Though he has never owned a jaguar, Gerry thinks they are poorly made and have many mechanical problems. For Jaguar to sell Gerry a car, the company would need to change the ____________ component of Gerry's attitude.

cognitive

Marketers often employ a combination of segmentation methods, using ____________ to identify and target their customers, and ______________ to design products and messages to appeal to them.

demographics and geography; lifestyle or benefit segmentation

Introducing newly developed products or services to a market segment the company is not currently serving is called

diversification

According to one definition, CSR can be described as context-specific actions and policies, taking stakeholders' expectations into account, to achieve what is referred to as the triple bottom line. The triple bottom line includes ____________ performance.

economic, social, and environmental

Caren has identified four potential market segments for her Rent-A-Chef home meal catering service. The next step is to

evaluate the attractiveness of each segment

Consumers consider universal, retrieval, and evoked sets during which stage of the consumer decision process?

evaluation of alternatives

The Wall Street Journal provides a set of guidelines each year for purchasing laptop computer. The guidelines include recommendations for hard disk capacity, memory size, battery life, and several other attributes. The Wall Street Journal is providing consumers with

evaluative criteria

Postpurchase cognitive dissonance is especially likely for products that are

expensive, infrequently purchased, or associated with high levels of risk.

_________________ research is a type of quantitative research that manipulates variables to help determine cause and effect.

experimental

Sasha is a travel agent. Whenever she sells an expensive vacation package, she encourages the customer to buy travel insurance, which provides reimbursement in case of trip cancellation due to illness or another emergency. Sasha is trying to reduce her customers' ____________ risk.

financial

By producing motorcycles that do more than get riders to their destinations and back, Harley-Davidson is addressing consumers' __________ needs.

functional and psychological

What is the focus of a firm that develops a relational orientation with its customers?

gaining lifetime profitability from customer relationships

Randy wants to do an online survey of college professors about the factors that influence their textbook selection. He would like to use a structured survey but is not sure what responses to include for each question. Randy could use________________ to help him develop his survey.

in-depth interviews

To build relationships, firms focus on the ______________ of the relationship, not how much money is made during each transaction.

lifetime

Some universities offer online degree programs, competing with traditional colleges based on the convenience of taking online courses. These online programs are most likely pursuing which marco strategy?

locational excellence

Which of the following is a core aspect of marketing?

making product, place, promotion, and price decisions

Marketing traditionally has been divided into a set of four interrelated decisions and consequent actions known as the

marketing mix

Traditionally, marketing activities have been divided into product, price, place, and promotion. Select the term that best describes the four Ps.

marketing mix

A(n) _____________ is a need or want strong enough to cause a pelsonto seek satisfaction.

motive

Which of the following segementation methods is being used when M&M's offers special wedding-themed packaging for customized M&M's (imprinted with the names of the bride and groom)?

occasion segmentation

In a SWOT analysis, increasing gasoline prices would represent a potential ___________ for manufacturers of electric cars.

opportunity

Marketing channel management is related to which of the four P's?

place

If Hazel decides to sell the best ice cream on earth, and intends to establish a strong ethical climate in her organization, during which phase of the strategic marketing planning process should she introduce ethical considerations?

planning

A former advertising campaign for GEICO insurance used the slogan "so easy, even a caveman could do it" to emphasize the ease of buying insurance on GEICO's website. This campaign was part of GEICO's

positioning strategy

Rock-Bend Company is considering buying out a competing firm and closing most of the competitor's factories. The firm has identified the various stakeholders and their issues and gathered the available data. Everyone with an interest in the issue has engaged in brainstorming and evaluating alternatives. Management reviewed and refined the alternatives, and then chose a course of action. If the managers are not confident about the decision, they should

reexamine their alternatives

What is the decline stage of the product life cycle?

sales are declining along with profits, typical customers are laggards.

Beverage companies often use television commercials with images of young people laughing and enjoying themselves on a beach or in a club. These images are designed to appeal to consumers' _____________, suggesting "be like me"

self-concepts

To develop psychographic segments, the marketer must understand consumers'

self-values, self-concept, and lifestyles

What are the stakeholders affected by marketing activities?

society, customers, supply chain, and employees

Fiona is trying to determine whether the segments she is considering for her daycare center will be profitable. Which of the following will not specifically help her in this analysis?

the average number of school age children in families sending a child to the daycare center

What is neuromarketing?

the process of examining consumers' brain patterns to determine their responses to marketing communications, products, or services for the purpose of developing marketing tactics or strategies.