Principles of Marketing
Which of the following is the correct definition of a product?
A product is anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need.
Which of the following statements regarding the business market is correct?
Many sets of business purchases are made for one set of consumer purchases
________ is the process of dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors and who might require separate marketing strategies or mixes.
Market segmentation
What do marketers use to analyze big data?
Marketing analytics
Which of the following are additional variables marketers use to segment business markets but not consumer markets?
Operating characteristics, purchasing approaches, situational factors, and personal characteristics
In which step of the buying decision process is the final order with the chosen supplier developed?
Order-routine specification
Which of the following represent market offerings?
Products, services, information, and experiences
Which of the following statements regarding the changing marketing landscape is correct?
The Great Recession caused consumers to rethink their buying priorities
What is the single most important demographic trend in the U.S. today?
The changing age structure of the population
Firms that develop strategies to change the environment - instead of assuming that strategic options are bounded by the current environment - are being _________.
proactive
During the introductory stage of the product lifecycle, __________.
sales are slow and profits are nonexistent
Many state colleges and universities charge one price for in-state students and a higher price for out-of-state students. Which price adjustment strategy are these schools using?
segmented pricing
What are the five marketing management functions used to manage the marketing process?
Analysis, planning, implementation, organization, and control
Forces in a company's macroenvironment that shape opportunities and pose threats to the company include what?
Demographic, economic, natural, technological, political/social, and cultural forces
What are the two keys to building lasting customer relationships?
Value and satisfaction
Which structural factor would make a market segment attractive to enter?
Very few actual or potential substitute products
Which of the following is included in a broad definition of marketing?
Creating customer value, building customer relationships, and engaging customers
What are the three general sources from which marketers can obtain information?
Internal data, marketing intelligence, and marketing research
Which of the following is an important trend in the natural environment of which marketers should be aware?
Shortages of raw materials
Products and technologies eventually become outdated, but basic market needs can last forever. For this reason, company mission statements should be
market-oriented
What are the four choices a company has for developing brands?
Line extensions, brand extensions, multibrands, and new brands
Which of the following correctly identifies the five core customer and marketplace concept?
Needs, wants, and demands; market offerings; value and satisfaction; exchanges and relationships; and markets
Printer companies often charge a fairly low price for their ink jet printers (relative to costs) and a high price for replacement cartridges. These companies are using a strategy of ________ pricing.
captive-product
Once management has decided on its product concept and marketing strategy, it can evaluate the business attractiveness of the proposal, which involves ___________.
conducting a business analysis
What are the two broad classifications of products?
Consumer products and industrial products
What are the four steps of the marketing research process in their correct sequence?
Define the problem and research objectives, develop the research plan, implement the research plan, interpret and report the findings
What is market segmentation?
Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors and who might require separate marketing strategies or mixes
What is the first step in the new product development process?
Generating new product ideas
What are the four major variables used to segment consumer markets?
Geographic, demographic, psychographic, and behavioral
What are the five product mix pricing situations?
Product line pricing, optional-product pricing, captive-product pricing, by-product pricing, and product bundle pricing
Which of the following correctly lists the actors in a company's microenvironment?
The company, suppliers, marketing intermediaries, customer markets, competitors, and publics
Why do companies use customer relationship management?
To capture and use customer data
Which of the following is a reason for business legislation?
To protect consumers from unfair business practices
The price ceiling, the maximum price a company can charge, is set by ________.
customer perceptions of the product's value
What are the three major pricing strategies used by marketers?
customer value-based pricing, cost-based pricing, and competition-based pricing
The buyer decision process starts with __________.
recognizing a need
According to the text, __________ are perhaps the most dramatic forces affecting today's marketing strategies.
technological forces
To design a winning marketing strategy, what are the two important questions a marketing manager must answer?
The two questions are the following: What customers will we serve? How can we serve these customers best?
What is a product position
The way a product is defined by consumers on important attributes
Which of the following is true regarding international marketing research?
Translating questionnaires from one language to another is not an easy task.
The first step of the marketing process is to
Understand the marketplace, which includes customer needs and wants
Which of the following is a potentially effective action a company could take in response to a competitor's price cut?
Increase both price and quality
Which of the following correctly defines the consumer market?
Individuals and households that buy goods and services for personal consumption
A company has set a low price on a new product it introduced. It wants to maximize its market share and attract a large number of buyers quickly. Which new product pricing strategy should the company use?
Market-penetration pricing
What are the four growth strategies identified by the product/market expansion grid?
Market penetration, market development, product development, and diversification
Which stage of the product life cycle normally lasts longer than the previous stages and poses strong challenges to marketing management?
Maturity
Which of the following statements is true regarding how price might play an important role in helping to accomplish company objectives.
Pricing can create excitement for a brand
Most standard portfolio analysis methods evaluate strategic business units (SBUs) on their performance in two important dimensions. What are these two dimensions?
The attractiveness of the SBU's market or industry and the strength of the SBU's position in that market or industry
Which of the following statements regarding socially responsible product decisions is correct?
The government may prevent companies from adding products through acquisitions if the effect threatens to lessen competition.
Which marketing management orientation holds that a firm should have a customer focus to achieve sales and profits?
The marketing concept
What determines whether the buyer is satisfied or dissatisfied with a purchase
The relationship between the consumer's expectations and the product perceived performance
To create successful new products, a company must ________.
understand its consumers, markets, and competitors, and develop products that deliver superior value
A _______ defines how a company will create differentiated value for targeted segments and what positions it wants to occupy in those segments.
value proposition
What are the variables in a company's marketing mix?
Product, price, place, and promotion
A company's external value delivery network consists of __________.
suppliers, distributors, and customers
A SWOT is a part of which marketing management function?
Analysis
What are the five stages of the consumer adoption process in the correct sequence?
Awareness, interest, evaluation, trial, and adoption
In which targeting strategy does a firm go after a large share of one or a few smaller segments?
Concentrated marketing
People's views of themselves, others, organizations, and nature are part of which macroenvironmental force?
Cultural forces
What are the four general characteristics that influence consumer purchases?
Cultural characteristics, social characteristics, personal characteristics, and psychological characteristics
Which of the following statements is true regarding initiating price cuts?
Cutting prices in an industry loaded with excess capacity might lead to price wars.
Which type of business buying situation offers marketers the greatest opportunity but also the greatest challenge?
A new task situation
What are the two ways a firm can obtain new products?
Acquisitions and new product development
Which of the following statements regarding the marketing of international products and services is correct?
Because markets and consumers around the world differ widely, companies must usually adapt their product offerings in different world markets.
What is big data?
Data contained in huge and complex data sets
What is the correct sequence of the steps in the strategic planning process?
Define the company mission, set company objectives and goals, design the business portfolio, and plan the market and other functional strategies
What are the three types of objectives a marketing research project might have?
Exploratory research, descriptive research, and causal research
Which of the following statements is true regarding the marketing of services?
For service providers, a solution to price competition is to develop a differentiated offer, delivery, and image
What are the eight steps in the business buying decision process in the correct sequence?
Problem recognition, general need description, product specification, supplier search, proposal solicitation, supplier selection, order-routine specification, and performance review
Which of the following correctly identifies the five important decisions marketers must make when developing individual products and services?
Product attributes, branding, packaging, labeling, and product support services
What are the five characteristics that are especially important in influencing an innovation's rate of adoption?
Relative advantage, complexity, compatibility, divisibility, and communicability
What advice would you give a firm about how to respond to the changing marketing environment?
Whenever possible, take a proactive approach to the environment
In addition to income levels, marketers need to pay attention to ______, which has created a tiered market.
income distribution levels
According to the text, two major public policy and ethical issues in marketing research are ________.
intrusions on consumer privacy and the misuse of research findings
The major product line decision involves the line's _______, or the number of items in the product line.
length
Evaluating each market segment's attractiveness and selecting one or more market segments to enter is called _______.
market targeting
When a company sets a high price as the initial price of a new product, it is pursuing a ________ new product pricing strategy.
market-penetration
The 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 comprise a ________.
marketing information system
Dynamic pricing is when companies continually adjust prices to meet the characteristics and needs of individual customers and situations. Where is this method especially prevalent today?
online buying
The four major brand strategy decisions involve brand _______.
positioning, name selection, sponsorship, and development
To deliver real value to marketers, marketing information must _______________.
provide useful customer insights
Services are characterized by four key aspects: ____________
services are intangible, inseparable, variable, and perishable
A company rarely gets 100% of a customer's purchases for a product category. The share it does get of the customer's purchasing in its product categories is called
share of customer
Digital marketing tools used in digital and social media marketing include
social media, mobile apps, and blogs
For strategic planning purposes, marketing provides a guiding philosophy that suggests the company's strategy should revolve around creating customer value and building profitable relationships with important consumer groups. This philosophy is called _______.
the marketing concept
Internal factors that affect pricing include ________.
the company's overall marketing strategy, objectives, marketing mix, and other organizational considerations.
