Principals of Marketing Chapters 1-4

In most marketing research projects, what type of research is conducted first? - exploratory - descriptive - remedial - causal - corrective

- exploratory

Exploratory Research

- Gathers preliminary info - Helps to define problems and suggest hypothesis - Kids play with toys in a lab for a study and the company takes notes on what toys they play with

Market Targeting

- Going after burger lovers or chicken lovers etc

Product Concept

- Idea that consumers will favor products that offer the most quality, performance, and features; organization should devote its energy to making continuous product improvements

What is Traditional Marketing?

- Making a sale - Abundance products in the nearby shopping centers - Television, magazine, and direct-mail ads

In a SWOT analysis, ________ refer to unfavorable external factors or trends that may present challenges to performance. - threats - weaknesses - strengths - opportunities - strategies

- Threats

Customer Equity

- Total combined customer lifetime values of all of the company's customers

A market is a segment of potential consumers who share a common need or want. - True - False

- True

The marketing concept is a customer-centered, sense-and-respond philosophy. - True - False

- True

The most common research instrument, whether administered in person, by phone, by e-mail, or online, is the ________. - telephone interview - questionnaire - focus group - mechanical device - personal interview

- Questionnaire

________ are distribution channel firms that help a company find customers or make sales to them. - Producers - Resellers - Logistics firms - Credit companies - Suppliers

- Resellers

What is Contemporary Marketing?

- Satisfying customer needs - Imaginative Web Sites and mobile phone apps, blogs, online videos, and social media - Reach costumers directly, personally, and interactively

Each population member has a known chance of being included when a probability sampling procedure is used. - True - False

- True

According to the BCG matrix, products or businesses with a high market share in a high-growth market are classified as ________. - dogs - cash cows - heroes - stars - question marks

- stars

The ________ environment is perhaps the most dramatic force shaping the destiny of individuals and offering exciting opportunities for marketers. - technological - cultural - demographic - social - political

- technological

Experimental research is best suited for gathering ________ information. - ethnographic - descriptive - exploratory - interactive - causal

- Casual

A consumer advocacy group challenges a firm's decision to build a new warehouse in a small community. The advocacy group is an example of a ________ public. - local - financial - government - media - citizen-action

- Citizen-action

________ markets consist of individuals and households that buy goods and services for personal use. - Wholesaler - Retailer - Business - Consumer - Government

- Consumer

________ is the total combined customer lifetime values of all the company's current and potential customers. - Share of customer - Value proposition - Customer equity - Market share - Customer-perceived value

- Customer equity

________ is the act of obtaining a desired object from someone by offering something in return. - Targeting - Segmentation - Differentiation - Exchange - Positioning

- Exchange

Customer equity is a measure of the past value of a company's customer base. - True - False

- False

In the marketing mix, product refers to activities that communicate the merits of a product and persuade target customers to buy it. - True - False

- False

Internal databases usually are more expensive to use than other market information sources. - True - False

- False

Market offerings are limited to physical products. - True - False

- False

________ is the art and science of choosing target markets and building profitable relationships with them. - Differentiation - Positioning - Value engineering - Marketing management - Segmentation

- Marketing management

A ________ is purposeful, specifying what an organization wants to accomplish in the larger environment. - mission statement - market portfolio - marketing objective - strategic plan - marketing strategy

- Mission statement

JetBlue's promise to put "You Above All" by "bringing humanity back to travel" is their - value proposition - segmentation strategy - market offering - selling concept - production concept

- Value proposition

________ are the form human needs take as they are shaped by culture and individual personality. - Services - Wants - Benefits - Risks - Necessities

- Wants

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 ________ marketing. - cause-related - environmental - charitable - social - ethical

- cause-related

Changes in variables, such as income, cost of living, interest rates, and savings and borrowing patterns most likely reflect changes in the ________ environment of a company. - political - demographic - economic - cultural - natural

- economic

Which of the following represents a change in the technological environment of a marketing firm? - increased use of RFID systems to track products - increased use of cause-related marketing - increased need to comply with environmental regulations - increased use of value marketing techniques and promotions - increased need to engage in mass marketing over market segmentation

- increased use of RFID systems to track products

Demographic, economic, natural, technological, political, and cultural forces form the ________ of an organization. - internal environment - microenvironment - marketing intermediary network - supply chain - macroenvironment

- macroenvironment

Marketing Return on Investment

Net return from a marketing investment divided by the costs of marketing investment

Marketing Myopia

Paying more attention to the specific products than to the benefits and experiences produced

________ are defined as states of felt deprivation. - Needs - Exchanges - Ideas - Demands - Values

- Needs

According to the text, ________ are the most important actors in a company's microenvironment. - resellers - suppliers - stockholders - employees - customers

- customers

Which of the following best describes the value chain of a company? - the series of departments that design, produce, market, deliver, and support the company's products - touchpoints at which a company or brand interacts with its consumers - the collection of businesses and products that make up the company - a network made up of the company, its suppliers, and its distributors working together to deliver customer value - profits earned by the cash cows and stars in the company's business portfolio

- the series of departments that design, produce, market, deliver, and support the company's products

Marketing Management

Choosing target markets and building profitable relationships

Marketing

- Engaging customers and managing profitable customer relationships

Marketing Mix

- The set of tactical marketing tools-product, price, place, and promotion- that the firm blends to produce the response it wants in the target market - Product - Price - Place - Promotion

A brand's value proposition is the set of benefits or values it promises to deliver to consumers to satisfy their needs. - True - False

- True

Product, price, place, and promotion make up the elements of a firm's marketing mix. - True - False

- True

Walmart's microenvironment includes suppliers. - True - False

- True

Descriptive Research

- Used to better describe market potential for a product or the demographics and attitudes of consumers - Paper and pencil surveys to gain customer insights

Casual Research

- Used to test hypothesis about cause-and-effect relationships - using sales to asses the impact of different packaging designs (the cause)

Customer Lifetime Value

- Value of the entire stream of purchases that the customer would make over a lifetime of patronage

Market Segment

- A group of consumers who respond in a similar way to a given set of marketing efforts (Burger lovers or chicken lovers)

Positioning

- Arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers

What are the goals of Marketing?

- Attract new customers by promising superior value - Keep and grow current customers by delivering satisfaction

Market Penetration

- Company growth by increasing sales of current products to current market segments without changing the product (Existing market, Existing product

The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction is referred to as ________. - societal marketing - enterprise resource planning - partner relationship management - customer relationship management - perceived-value management

- Customer relationship management

Abel now has the buying power to purchase the computer that he wanted to buy six months ago. Abel's want has most likely become a ________. - need - value - demand - market offering - desire

- Demand

The objective of ________ research is to gather preliminary information that will help define the problem and suggest hypotheses. - corrective - descriptive - experimental - causal - exploratory

- Exploratory

Marketing intermediaries supply resources needed by a company to produce its goods and services. - True - False

- False

Secondary data consist of information collected for the specific purpose at hand. - True - False

- False

The information collected for an internal database is typically complete and in the proper form. - True - False

- False

Monfax Corporation insures manufacturers, distributors, and consumers against the loss or damage of goods during transportation after a purchase or sale. In this case, Monfax is an example of a ________. - marketing service agency - retailer - wholesaler - physical distribution firm - financial intermediary

- Financial intermediary

________ is the final step in the marketing research process. - Developing the research plan - Engaging in secondary research - Interpreting and reporting the findings - Determining a research approach - Collecting and analyzing the data

- Interpreting and reporting the findings

Dividing a market into several sections of customers is known as ________. - undifferentiated marketing - market positioning - value engineering - mass customization - market segmentation

- Market segmentation

Which of the following has the primary function of helping a company target and promote its products to the right markets? - Service providers - Credit companies - Resale marketers - Marketing services agencies - Physical distribution firms

- Marketing services agencies

In a SWOT analysis, ________ refer to favorable factors or trends in the external environment that a company may be able to exploit to its advantage. - strategies - opportunities - threats - controls - strengths

- Opportunities

In a marketer's macroenvironment, the ________ environment consists of laws, government agencies, and pressure groups that influence or limit various organizations and individuals in a given society. - internal - technological - political - cultural - natural

- Political

________ data consist of information collected for the specific purpose at hand. - Archival - Derived - Primary - Historical - Secondary

- Primary

According to the BCG matrix, products or businesses with a low share of market in a high-growth industry are considered ________. - dogs - stars - question marks - cash cows - black holes

- Question marks

Information collected from commercial online databases or through Internet search engines are examples of ________ data. - first-hand - primary - ethnographic - secondary - experimental

- Secondary

________ is a method of gathering primary data that involves asking people questions about their knowledge, attitudes, preferences, and buying behavior. - Experimental research - Causal research - Observational research - Archival research - Survey research

- Survey research

Although internal databases can be accessed more quickly and cheaply than other information sources, one of the challenges of internal databases is ________. - decision making about data collection software - the inability to access - putting the customer at the center of all decisions - the lack of sophisticated equipment and technologies - maintaining the current database

- maintaining the current database

A firm's decision to identify and develop new markets for existing products is a ________ strategy. - market development - market differentiation - diversification - product development - market penetration

- market development

The two dimensions the BCG approach uses to evaluate and manage SBUs are ________. - market growth rate and market penetration - relative market share and product development - market growth rate and relative market share - market growth rate and market development - relative market share and market penetration

- market growth rate and relative market share

A strategy for company growth that involves increasing sales to current market segments without changing the product is known as ________. - product development - market development - market differentiation - market penetration - diversification

- market penetration

EcoBean, a chain of cafes, has introduced a Special Shopper Card that allows customers to pay in advance for coffee and snacks. This effort by EcoBean management is most likely an example of ________. - market penetration - diversification - market development - product development - product adaptation

- market penetration

Under Armour increasing its advertising spending and offering an ever-increasing range of styles and colors in its original apparel line is an example of a ________ strategy. - product diversification - product development - market development - market penetration - business harvesting

- market penetration

A marketing intermediary would most likely help a firm by ________. - providing technical expertise on the production and design of goods - competing directly with the firm in a certain product category - supplying the raw materials needed for manufacturing the firm's products - moving the firm's goods from production points to distribution centers - negotiating with labor unions regarding wages, hours, and benefits

- moving the firm's goods from production points to distribution centers

In a marketer's macroenvironment, the ________ environment consists of laws, government agencies, and pressure groups that influence or limit various organizations and individuals in a given society. - technological - internal - political - cultural - natural

- political

Both market penetration strategies and market development strategies primarily involve ________. - modifying the company's product line - developing a new product - selling a company's current products - leaving the current market - selling in new as well as existing markets

- selling a companies current products

Which of the following is most likely a financial public? - stockholder - community organization - minority group - newspaper - corporate attorney

- stockholder

Causal research is used to ________. - generate hypotheses about the causes of a marketing problem - collect information on the demographics of customers - test hypotheses about cause-and-effect relationships - collect information on the attitudes of consumers - gather preliminary data to define problems and their underlying causes

- test hypotheses about cause-and-effect relationships

Which of the following best describes a company's business portfolio? - the company's strengths in terms of technology, people, and products - the list of all the marketing activities in which the company invests - the target segments of the company's various businesses - the collection of businesses and products that make up the company - the company's products or services in a particular market

- the collection of businesses and products that make up the company

Which of the following sources constitutes the internal database of a company? - conversations on social media - commercial online databases - the Web - reports sold by market research firms - the company's sales records

- the company's sales records

Which of the following concepts is based on a customer-centered philosophy? - the product concept - the marketing concept - the production concept - the selling concept - the distribution concept

- the marketing concept