MKT Test #2
Digital media have created opportunities for companies to
target specific markets
Relying on executive judgment for forecasting may be adequate when
the executive has considerable experience and product demand is relatively stable.
One trend that has caused consumer-generated information to gain importance is
the increase of consumers using digital media to publicize their own product reviews.
Consumers are changing ____ and consumption behaviors to fit with emerging technologies and trends.
their information searches
When a business has a relatively small number of customers, a preferred method of forecasting is
A customer forecasting survey
You have just been promoted to vice president of marketing for your firm. Unlike your predecessor, you believe the firm can increase its sales in a market by focusing on more than one segment of the market. You recognize to do this means your firm will incur higher production costs. Based on this information, which of the following targeting strategies are you advocating?
A differentiated targeting strategy
Yvonne and Garret are looking at information about how their organization's products could fit potential customers' needs. This information deals with demographic characteristics, product benefits sought, lifestyles, geographic factors, brand preferences, and usage rates. They are most likely looking at
A market segment profile
Milton Bradley/Parker Brothers are producers of many board games, such as Monopoly, Battleship, Yahtzed, and Clue. The company has posted online cash rewards for consumer reviews of their games. In doing so, Milton Bradley/Parker Brothers is striving to utilize
Consumer-generated marketing
Zipcar is a group of individuals who share a car's services in order to save money and keep the environment green. Zipcar encourages its users to go to a blog and make comments or post ratings and reviews. These people would be called ____ with reference to the blog.
Critics
Lil' Angels Kids Spa offers various treatments designed to appeal to the younger customer. Treatment options include manicures, pedicures, facials, tea parties, and dress up photos. Parents can even purchase a birthday party package. Currently, Lil' Angels offers its services only to girls under the age of 14. Originally begun in Delaware, Lil' Angels is considering opening its spa/salons in other parts of the country and is planning to expand its offerings to girls aged 14 to 17. The company realizes that some changes may be needed. For example, management wants to find out if the older girls will be interested in their birthday party and tea party services. Refer to Scenario 6.1. Which of the following best describes Lil' Angels' current approach to the market?
It is segmenting the market according to demographic variables
Which of the following products is most likely to have its market segment based on age?
Legos
The total volume of a product, for all firms in an industry, that would be purchased by specific customer groups within a specified time period at a given level of industry-wide marketing activity, is the
Market potential
Which of the following variables would most likely be used to segment a business market?
The geographic location of the company
Which of the following statements about the undifferentiated targeting strategy is false?
The undifferentiated targeting strategy uses multiple distribution systems to best reach individuals in the target market.
A ____ is a type of software that creates an interface that enables users to add or edit the content of some types of websites.
Wiki
Regardless of their age, income, or gender, an increasing number of people are turning to the Internet to search for information, products, people, news, maps, entertainment, and whatever else you can think of. At the forefront of this massive search is Google; accompanying Google are social media sites such as Facebook, Twitter, and Pinterest. Google has developed methods for making information useful to all types of Internet users. Some users want to critique the information, some just want to read the information, and some want to be the information writers. Facebook, originally used as a social networking application, is now picked up by retailers, brands, celebrities, churches, political campaigns, and non-profit agencies. Twitter is a more real-time site and, as is Pinterest, a more personally-affiliated medium. Refer to Scenario 10.2. If the Morningside Church wants to provide its members with a venue to read what other people think about its ideas, worship style, and community services, and to share their own ideas, it could use ______. Those who would most likely want to simply read the opinions of others are _____, while those who would like to also share their own ideas, are ____.
a blog; spectators; creators
Use the following to answer the questions. The Walt Disney Company is a master at incorporating all the unique characteristics of digital media into their website. They know how to appeal to all types of consumers and utilize the full potential of digital media. The Disney website immediately catches your attention with sights and sounds that come alive. Not only can you catch a glimpse of an upcoming movie, but also connect with your favorite characters from movies past. The website offers age-appropriate games and activities, including the ability to create a fairy-tale cottage. The Disney Parks have their own links of course, along with Radio Disney, the Disney Store, family vacation packages, and an educator's corner. An adult or child can enjoy navigating through the electronic marketing of Disney. Refer to Scenario 10.1. The Disney website is missing ____, because the website does not offer the opportunity for customers to directly communicate with Disney employees. Customers cannot express their needs and wants directly to the company.
accessibility
Often, the Delphi technique is used in conjunction with an expert forecasting survey. The major objective is to
allow experts to work separately to reach a consensus as to their forecasts.
Telluride Ski resort in Telluride, Colorado is a world-class ski destination. Taylor is a newly-hired manager of digital media and electronic marketing for Telluride. Taylor remembers reading about a new trend in video marketing, using _________ to engage and create a community of customers.
amateur filmakers
Dion is a marketing communications consultant who specializes in the strategic use of social networking sites. Which of the following statements would most likely describe the companies that can use Dion's services?
any sized company
Redbox has established outlets in the simulated environment of Second Life. Your ____ is able to rent a movie from a Redbox.
avatar
Budweiser may choose to segment its market based on heavy, moderate, and light drinkers of its alcoholic beverages. This is an example of market segmentation based on
behavioristic variables
The manager at a local recreational vehicle store, Off-Road Rage, believes the next two years will be difficult because of an economic recession. Using this forecast, he determines the effect on the industry's market potential and then estimates how his company's potential sales will look based on this outlook. This manager is using a ____ approach to estimating sales potential.
breakdown
A targeting strategy in which an organization targets a single market segment using one marketing mix is called a(n) ____ strategy.
concentrated
The ProMark Company manufactures a pencil that is about five inches long and has no eraser. It sells the product primarily to golf courses and universities. What type of targeting strategy is the ProMark Company using?
concentrated
Tiffany's markets its exclusive jewelry and gifts to high-income individuals interested in high-quality products and a well-known brand name. It uses the same marketing mix to reach this market. Tiffany's uses a(n) ____ strategy.
concentrated targeting
____ refers to customers' ability to regulate the information they view and the rate and sequence of their exposure to that information.
control
TimeWarner Cable uses a segmentation strategy for its cable TV packages based on market characteristics such as age, gender, or income. Which of the following segmentation variables is TimeWarner using?
demographic
Segmentation variables are usually grouped into four categories:
demographic, geographic, psychographic, and behavioristic.
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
The Pillsbury company defines all individual consumers who are purchasers of flour as its target market. It also defines all businesses who purchase flour as its target market. What targeting strategy would be most appropriate in this case?
differentiated
Electronic media that function using digital codes are called
digital media
Which of the following refers to the strategic process of distributing, promoting, pricing products, and discovering the desires of customers usingdigital media and digital marketing.
electronic marketing
______________ can be ideas and creative materials, songs, movies, books, electronics that are developed to educate or entertain.
intellectual property
____ allows customers to express their needs and wants directly to a company in response to its marketing communications.
interactivity
Bethlehem Steel provides steel for a variety of uses to its various customers. Customers have different needs for the steel and thus Bethlehem has to prepare the raw steel differently depending on how customers will use it in their production processes. The primary business segmentation variable in this example is
product use
Toys-R-Us is almost finished building a new store and will soon be having a grand opening celebration. Management wants to build excitement and anticipation for the event. Which social networking site would Toys-R-Us use to post multiple updates each day on the store's progress?
To find a target market, a firm can use one of these targeting strategies.
undifferentiated strategy, the concentrated strategy, and the differentiated strategy.
Beats by Dr. Dre (Beats), is a leading audio brand founded in 2006 by Dr. Dre and Jimmy Iovine and was acquired by Apple Inc. in 2014. Beats has become a favorite brand among consumers who enjoy listening to music and somewhat of a status brand. The company markets a variety of products including headphones, earphones, speakers, and accessories. The product managers for the Beats product groups are involved in the sales forecast process for their products which is important to ensuring strong support for retailers and customers as well as to achieve sales objectives. The product managers hire experts create initial forecasts, submit them to the company for averaging, and have the results returned to them so they can make individual refined forecasts. The procedure is iterative and may be repeated several times until the experts who are working independently reach a consensus. The process typically results in a very reliable sales forecast. What type of sales forecasting method do the product managers of Beats use?
Delphi technique
Which of the following regulatory bodies is responsible for enacting legislation that regulates the information companies can gather online from consumers and about consumers?
Federal Trade Commission
Subaru is producing a new seven-passenger van with all-wheel drive. Which of the following would be the best variables for segmenting the market for this new model?
Geographic location and family life cycle
Marketers use a variety of characteristics to segment markets they are interested in pursuing. When segmenting consumer markets, demographic variables are normally used. All of the following are demographic characteristics used by marketers to segment markets except:
Hometown
Holiday World & Splashin' Safari is an amusement park located in Santa Claus, Indiana, which is located in southern Indiana and typically welcomes 10,000 to 20,000 visitors daily from nearby cities in Indiana, Kentucky, and Illinois. Holiday World is known for its wooden rollercoasters and historically has added one new thrill attraction each season. The company uses its Facebook page to alert followers to the new attraction and typically makes an announcement about the attraction toward the end of the season. During the fall and winter months when the amusement park is closed, the Facebook page may provide updates on the new attraction and provide links to purchase advance tickets or season passes from their website. Which element of the marketing mix is Holiday World using to generate interest and ticket sales for the park?
Promotion
Frito-Lay Snack Foods is currently conducting market segmentation studies. For several segments, they have completed competitive assessments and cost estimates. The next major step they must take is to
Select specific target markets
Use the following to answer the questions. Regardless of their age, income, or gender, an increasing number of people are turning to the Internet to search for information, products, people, news, maps, entertainment, and whatever else you can think of. At the forefront of this massive search is Google; accompanying Google are social media sites such as Facebook, Twitter, and Pinterest. Google has developed methods for making information useful to all types of Internet users. Some users want to critique the information, some just want to read the information, and some want to be the information writers. Facebook, originally used as a social networking application, is now picked up by retailers, brands, celebrities, churches, political campaigns, and non-profit agencies. Twitter is a more real-time site and, as is Pinterest, a more personally-affiliated medium. Refer to Scenario 10.2. Google can give instructions on how to construct almost anything, from a house to a science experiment. As for online applications, you can learn anything from developing your own website to starring in a video. Google's "how to" features would most likely appeal to
creators
The Internet makes it possible for the marketer to communicate with consumers more effectively and more consistently at a lower cost than previously possible. Moreover, the Internet has made it possible for marketers to reach new markets and to target existing markets more precisely. Digital media is the foundation of the marketer's new found power via the Internet. Digital media-based marketing is different than traditional marketing in a number of ways. More specifically, digital media-marketing differs from traditional marketing in which of the following ways?
interactivity
Kyle is a new marketing manager for Anthropologie. He believes that if Anthropologie wants to grow and connect with its customers that there is no better way than to use Facebook. What do most marketing strategists think about Facebook?
marketers should establish a Facebook page
Hobby Lobby encourages customers to visit their website and "like" their Facebook page. It also enlists customers to post feedback on their company, refer to articles of interest to other Hobby Lobby customers, and offer suggestions for future electronic communication. Hobby Lobby is using a positive marketing strategy for its Facebook page and company website because customer-generated content appears
more authentic than company-generated content
If a company segments its market on the basis of their reasons for purchasing a particular product, the primary segmentation variable in use is
motives
The undifferentiated targeting strategy for finding a target market will likely not be successful if
people within the market have heterogeneous needs.
____ are free online publicity that helps the company.
positive customer reviews
Ralph Lauren has retail stores in China where Spectators make up the majority of the online population. The Spectators are interested in reading about the latest fashions from the western culture but don't typically create and add their own content. Ralph Lauren wants to match its marketing efforts for its upcoming spring collection with the characteristics of the population. Which of the following should Ralph Lauren do?
post its own promotional messages on blogs and websites.
The Internet can be referred to as a ____ medium because users determine which websites they are going to view.
pull
Digital media such as blogs allow marketers to interact with prospective customers in
real time
Your marketing team is having a brainstorming session to finalize your target marketing strategy. To make sure all team members are on the same page, you make the following statement to keep the discussions focused: If we determine that the needs of the customers we are targeting are ______________, then we need to pursue a _______________ targeting strategy.
Homogeneous; Undifferentiated
JCPenney's website encourages visitors to register in order to maximize their use of the site. By gathering information about a consumer before a purchase is made, JCPenney is practicing
addressability
Using the breakdown approach to sales potential, estimates are made
by starting with general economic conditions.
Today's consumer is changing their information searches and consumption behaviors to fit with emerging technologies and trends. Epiphany Farms is an organic farm specializing in vegetable and meat products and also owns a farm-to-table restaurant. The restaurant is implementing _______ that functions using digital codes that's available via computers, cellular phones, smartphones, and other digital devices as part of its business activity.
digital media
Both you and your roommate are avid Internet and social media users. You both spend about 4 hours a day interacting with the Internet. Your roommate likes post on sites like Facebook throughout the day. In fact, she is a member of just about every social media site on the Web. Your interest is more geared towards regularly communicating with any and every one via Twitter. Which of the following statements is true regarding you and your roommate's use of the Internet?
According to the Social Technographics Profile, you are a "Conversationalist" and your roommate is a "Joiner".
People and organizations have needs and wants they seek to satisfy through the purchase of goods and services. These people and organizations represent a _____________ that marketers try to appeal to. Marketers will sometimes find it more advantageous to attempt to appeal to a subgroup of these people and organizations which is called a ________________. This subgrouping process is accomplished through the use of _______________ techniques
Market; Market segment; Market segmentation