MKTG 3701 Final Exam

Margin Formula

(Sell Price-COGS)/Sell Price

Lifestyle Segmentation

A psychographic segmentation variable that divides people into groups based on their opinion and the interests and activities they pursue

BCG Matrix*

Describes the strengths and weaknesses of a market

Positioning*

How a firm creates a perception of its product to the public

Customer Value

Perceived benefits from a product

Which marketing mix element is typically the easiest to change?

Price

Marketing Mix

Product, place (distribution), price, promotion, participation

Sociocultural Factors

Social and cultural factors

Marketing objectives should be...*

Specific, measurable, and realistic

Sales Orientation

Use personal selling and advertising to sell products. Great depression era, after 1920's

Country of Origin Effects*

beliefs people have in one country about good produced in another country.

System 2 thinking*

cognitive, slow and controlled way of thinking

Strategic Planning*

defining a firm's objectives and developing a method for achieving those objectives

The bulk of a firm's promotion budget is allocated to a. advertising b. personal selling activities c. publicity d. public relations e. sales promotion activities

e

System 1 thinking*

emotional, leads to our gut instinct, automatic and nonconscious

Panel Data*

information gathered from a group of consumers over a period of time

New to the Market Products

never before seen products that create a new market

Diversification*

new products, new markets

Discount Store

offer brand-name products at lower prices. Walmart and target

Market Penetration*

selling existing products to existing market

B2C Marketing*

selling goods to end-users

Product Development*

New product to existing market

Contingency Planning*

Planning for failing or falling short

Indirect Competition

Products provide alternative solutions to the same market Ex: mcdonalsd v.s subway. coke v.s tea v.s energy drinks

Cost Formula

Sell Price(1-Margin)

Goal of Marketing

To get the right product at the right place at the right time at the right price.

Break even Analysis

Total fixed costs / (selling price per unit-variable cost per unit)

Competitive Advantage*

When customers perceive a product to have more value than another

A marketing practice whose goal is to generate traffic from search engines through both paid and unpaid efforts is called a. search marketing b. content marketing c. social media marketing d. digital marketing e. sentiment marketing

a

During what stage in the evolution of marketing did firms believe that quality products would sell themselves? a. production orientation b. sales orientation c. customer orientation d. marketing concept e. relationship marketing

a

In which step of the personal-selling process would you identify key decision makers, review account histories, and prepare a sales presentation? a. pre-approach b. presentation c. prospecting d. approach e. qualifying

a

Search engines create an index of all web content by using automated software programs called a. web crawlers b. web filters c. digital sensors d. wireframes e. web hosts

a

What two key words in the definition of advertising are crucial to understanding how advertising fits into the promotion mix? a. paid and nonpersonal b. paid and communication c. nonpaid and nonpersonal d. personal and communication e. nonpaid and personal

a

Which dimension of attitudes is made up of feelings or emotional reactions to the attitude object? a. affective component b. cognitive component c. behavioral component d. attentive component e. core component

a

You finally decided to purchase an e-reader and selected the Amazon Kindle. After returning home, you see an advertisement for the Barnes and Noble Nook and now are wondering if you made the right decision. This is an example of a. cognitive dissonance b. an internal information search c. postpurchase stress d. product indecisiveness e. problem recognition

a

Mission Statement*

a concise affirmation of the firm's long-term purpose

Aspirational Reference Group*

a group to which an individual wishes to belong

ABC Model*

affective, behavioral, and cognitive

Demographic Factors

age, gender, education, ethnicity. Used to identify target markets

Depth Interview*

asking an individual open-ended questions

A measure of how optimistic consumers are about the overall state of the economy and their own personal finances is referred to as a. purchasing power b. consumer confidence c. market confidence d. consumer expectations e. purchasing confidence

b

A trade sales promotion that typically involves paying retailers for financial losses associated with consumer sales promotions or reimbursing a retailer for an in-store or local expense to promote a specific product is known as a. a premium program b. an allowance c. a loyalty program d. a rebate e. a contest

b

According to your text, which step of the personal-selling process is the most important and most difficult? a. qualifying b. approach c. follow-up d. prospecting e. sales presentation

b

Factors like time and involvement that serve as an interface between consumers and their decision-making process are ______ influences. a. psychological b. situational c. individual d. cultural e. social

b

The adoption of the marketing concept at the level of the individual salesperson and the customer is referred to as a. seller-related knowledge b. customer-oriented selling c. social selling d. sales 2.0 e. adaptive selling

b

What does the criteria accessible mean regarding market segments? a. marketers should develop strategies that can attract a market to its product b/ marketers must be able to reach and serve the segment c. segments must be large enough for the firm to make a profit by serving them d. markets should be clearly identified with appropriate strategies developed for each e. the size and purchasing power of the segment should be clearly identified

b

What is the overall purpose of a marketing plan? a. to define the target market and promotion strategies to be used on that market b. to guide the analysis, implementation, and control of the firm's marketing strategy c. to determine whether or not a firm has enough capital to pursue its objectives d. to define the company's strengths and weaknesses

b

What two elements are combined on the BCG matrix to produce its four unique product categories? a. market size and product demand b. market growth and relative market share c. market growth and number of competitors d.relative market share and # of competitors

b

Which of the following is the correct definition of inflation? a. a decline in gdp for two or more consecutive quarters b. an increase in the general level of prices of products in an economy over a period of time c. the rise in the amount of goods and services that can be purchased for a specific amount of money d. a decline in consumer confidence about the overall state of the economy and their own personal finances e. the rise in the rate of unemployment due to a slowing economy

b

The generation of children born between 1946 and 1964 is retiring at a rate of 10,000 per day. What is the name of this demographic group?

baby boomers

A consumer searching for information will create a list of brands or products that he or she will evaluate as options for the solution of a particular problem. This list is referred to as a. consumer criteria b. the information set c. the evoked set d. evaluative criteria e. essential set

c

According to your text, ______ serve(s) as the critical link between the firm and the customer a. the product b. publicity c. salespeople d. advertising campaigns e. brand recognition

c

According to your text, one of the biggest sociocultural changes in the United States over the past half century has been a. the increased use of the internet for purchasing consumer products b. the decline of females as the primary purchasers of products c. the shift from one-income families to two-income and single-parent households d. the gradual increase of college grads in the workplace e. the immigration of hispanics into the country

c

According to your text, when selecting a target market, firms should consider three important factors: growth potential, level of competition, and a. economic conditions b. cultural factors c. strategic fit d. proximity to the market e. profitability timeframe

c

An individual (or group) capable of making the decision on a good or service a salesperson is selling is referred to as a a. qualifier b. client c. prospect d. lead e. customer

c

Marketing Concept/Orientation

1950's. Companies were producing similar products and had to compete. Company-wide effort to satisfy customer needs

Family Life Cycle*

6 stages a person may go through within their life. Ranges from unmarried to unmarried survivor

Marketing Strategy*

Actions the firm must take to achieve its objectives

What are the two most commonly used demographic variables used by marketers?

Age and gender

Attribute-Based v.s Affective v.s Attitude-Based Choice*

Consumer compares attributes of brands, how they think the product will make them feel, general attitudes and what you favor

Marketing

Creating, communicating, and delivering value

Marketing Research Process*

Define the problem, develop research plan, collect data, analyze data, present results & take action

Market Segmentation*

Dividing a market into smaller market segments

5 Components of Marketing Plan*

Executive summary, situation analysis, marketing strategy, financials, controls

Market Development*

Existing product, new market

Product Orientation

Focus on efficient processes to create quality products and reduce costs. Prior to 1920's

Economic Factors

GDP, income distribution, inflation, consumer confidence

Controls of a Marketing Plan*

How it'll monitor performance

Situation Analysis (SWOT Analysis)*

Includes swot analysis, market summary, competition analysis

Carson has opened up a new sports bar/restaurant in town. He has determined that his market segments are (1) students from the nearby college campus, (2) families with small children, and (3) young adult males. Carson now has to determine which of these segments will provide him with the best opportunity to maximize sales. The process of doing this is referred to as a. marketing b. repositioning c. targeting d. segmenting e. positioning

c

Daryl recently took a marketing job with a new firm. His first order of business is to find out how his new company performs relative to its competitors. Which of the following would Daryl use to do this? a. gross margin b. revenue analysis c. market share analysis d. profitability analysis e. return on marketing investment

c

The essence of _____ marketing is the belief that if businesses deliver valuable information to buyers, customers will reward them with their business and loyalty a. mobile b. social media c. content d. search e. digital

c

What type of media comes from publicity gained via a brand-controlled source such as a website, blog, or Facebook page? a. published media b. paid media c. owned media d. sponsored media e. earned media

c

Which of the following is a behavioral segmentation variable a. lifestyle b. family size c. usage rate d. population shifts e. customer convenience

c

Which of the following is the fastest growing demographic group in the United States? a. young adults b. college-age males c. seniors d. middle-aged women e. teenagers

c

Which of the following questions relates to the place element of the marketing mix? a. How do i want the public to view my product? b. Should i offer customers a discount? c. How much inventory should i have? d. Do i need to hire salespeople? e. How long has my product existed?

c

Specialty Discount Store

category killers. Dick's, home depot

Focus Groups*

conducted by a moderator and involve a small number of people.

A person's typical way of life as expressed by his or her activities, interests, and opinions is referred to as a. values b. culture c. motivation d. lifestyle e. personality

d

In the consumer decision-making process, searches for information fall into which two main categories? a. lengthy and brief b. extensive and limited c. wanted and unwanted d. internal and external e. meaningful and trivial

d

Monitoring developments outside of the firm's control with the goal of detecting and responding to threats and opportunities is called a. competitive analysis b. market assessment c. brand positioning d. environmental scanning e. dats mining

d

The activities a firm undertakes to create a certain perception of its product in the eyes of the target market is referred to as a. categorizing b. segmenting c. targeting d. positioning

d

The competitive analysis tool that creates a visual picture of where products are located in consumers' minds is called a a. positioning map b. conceptual map c. competitive map d. perceptual map

d

The tendency to interpret information in a way that fits our preconceptions is a process known as a. selective retention b. selective attention c. sensory marketing d. selective distortion

d

What era in the history of marketing best reflects the idea that a firm's long-term success must include a company-wide effort to satisfy customer needs? a. product orientation b. customer orientation c. sales orientation d. marketing concept

d

t has been Shelly's dream to open a bakery, and while she has experience in making all types of baked goods, she always gets rave reviews for her hand-decorated cupcakes. So, rather than open a bakery that offers a wide variety of baked goods, Shelly has decided to open a specialty cupcake shop to cater to that market only. This is an example of a. repositioning b. limited marketing c. mass marketing d. market segmentation

d

Habitual Decision Making*

decisions made out of habit without much thought. Grabbing a pack of gum at checkout

Extended Problem Solving*

decisions requiring considerable cognitive thought Ex: buying a new car or house

Environmental Scanning

detect and respond to threats outside of the firm's control

Disruptive Technology

displaces an established technology, or starts a new one. Smartphone vs cellphone

The amount of spending money available to households after paying taxes is called

disposable income

The single most effective approach for establishing and developing a personal relationship with the customer is through a sales promotion b. advertising c. publicity d. public relations e. personal selling

e

What type of business-to-business segmentation allows B2B marketers to segment based on purchasing patterns, supplier requirements, and technological orientation? a. behavioral b. psychographic c. lifestyle d. geographic e. demographic

e

Which approach to marketing was especially important during the Great Depression when consumers did not have much money and firms competed intensely for customer sales? a. customer orientation b. marketing concept c. relationship marketing d. production orientation e.sales orientation

e

Which marketing strategy would Krispy Kreme doughnuts be using if it decided to begin selling its doughnuts in Mexico for the first time a. diversification b. positioning c. market penetration d. product development e. market development

e

Which type of selling alters sales behavior during a customer interaction based on perceived information about the selling situation? a. social selling b. consultative selling c. customer advocacy selling d. team selling e. adaptive selling

e

______ is an important marketing activity as it allows salespeople to represent the firm to customers, gather information on customer likes and dislikes, and provide market feedback on competitors and trends in the macro-environment. a. sales promotion b. publicity c. advertising d. public relations e. personal selling

e

6 External Factors that Affect Marketing Environment

economic, demographic, political, legal, sociocultural, technoogical

Sales Forecasting*

estimates how much of a product will sell over a period of time

Currency Fluctuation

how the value of one country's currency changes in relation to the value of another currency

Sensory Marketing*

marketing that engages consumer's sense. 2/3 comes through eye

B2B Marketing*

marketing to firms that use goods to produce other goods and services

Quota Sampling*

nonprobability method where participants are chosen based on a set of criteria

Ethnographic Research*

observing consumers in their natural environment

Scanner Data*

obtained from scanner readings of UPC codes at checkout counters

Dissociative Reference Group*

people an individual does not want to be like

Marketing Information System*

people and technologies aimed at supplying an organization's marketing needs.

Opinion Leaders*

people whose opinions are sought by others

Maslow's Hierarchy of Needs*

physiological, safety, love/belonging, esteem, self-actualization

New Category Entries

products that are new to a company but not new to the marketplace

Direct Competition

products that perform the same function compete against one another Ex: mcdonalds v.s bk v.s wendys

Mystery Shoppers*

researchers posing as customers who gather observational data about a store

Causal Research*

tests hypotheses. involves manipulating independent variables to see how they affect a dependent variable

Big Data*

the exponential growth in the volume of information and the complex tools used to analyze the data

Membership Reference Group*

the group to which a consumer actually belongs

GDP

the total market value of all final goods and services produced annually in an economy

The three primary objectives of an advertising campaign are

to inform, to persuade, and to remind

Cognitive Dissonance*

when new information contradicts their beliefs or assumptions

Sell Price Formula

COGS/(1-Margin)

Product Line Extensions

add new functions, flavors, or other attributes to an already existing product line