principles of marketing test 1
market development
identifying and developing new markets for its current products
Symbols such as the McDonald's golden arches, the colorful Google logo, the Nike swoosh, or Apple's "bite mark" logo provide strong company or brand recognition and are indicative of ________ differentiation
image
The ________ environment consists of laws, government agencies, and pressure groups that influence or limit various organizations and individuals in a given society
political
Rather than assuming that strategic options are bounded by the current environment, firms adopting a(n) ________ to the marketing environment develop strategies to change the environment
proactive stance
strategic planning
an organization's leaders define their vision for the future and identify their organizations goals and objectives
adoption process stages
awareness, interest, evaluation, trial, adoption
business buying process
problem recognition, general need description, product specification, supplier search, proposal solicitation, supplier selection, order-routine specification, performance review
Which of the following is NOT a step in the strategic planning process?
evaluating members of the company's value chain
Which of the following is the adoption process stage at which the consumer considers whether trying the new product makes sense?
evaluation
consumer buying process
need recognition, information search, evaluation of alternatives, purchase decision, post purchase behavior
________ refers to a business buying situation in which the buyer purchases a product orservice for the first time
new task
Differences between business markets and consumer markets include all of the following EXCEPT ________
people who make purchase decisions to satisfy needs
________ show(s) consumer perceptions of a company's brands versus competing products on important buying dimensions
perceptual positioning maps
Which of the following statements is true about creating customer loyalty and retention?
Losing a customer means losing the entire stream of purchases that the customer would makeover a lifetime of patronage
Which of the following is NOT an accurate descripti on of modern marketing?
Marketing emphasizes selling and advertising exclusively
niche marketing
a firm goes after a large share of one or few smaller segments or niches
The single most important demographic trend in the United States is the ________
changing age structure of the population
internal databases
collections of consumer and marketing information obtained from data sources within the company network
Individuals and households that buy or acquire goods and services for personal consumption make up the ________
consumer market
market segmentation
dividing a market into smaller segments with distinct needs, characteristics, or behaviors that might require separate marketing strategies or mixes
Which of the following is LEAST relevant when a firm evaluates different market segments?
core competencies of competitors
factors that influence consumer buyer behavior
cultural, social, personal, phycological
value proposition statement
declarativestatement that explains why a customer shouldpurchase your product or service
Marketing plays a key role in the company's strategic planning in all of these ways EXCEPT________
designing new products from scratch
________ consists of arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers
differentiation
When consumers are highly involved with an expensive, infrequent, or risky purchase but see little difference among brands, they most likely will exhibit ________
dissonance-reducing buying behavior
Market segmentation can be best described as the process of ________
dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate marketing programs
marketing plan
executive summary, current marketing situation (market description, product review, competitive review, channels and logistics), SWOT analysis, objectives and issues, marketing mix strategy, action program/implementation plan, evaluation & controls, supporting information
When marketers set low expectations for a market offering, they run the risk of ________
failing to attract enough customers
________ include banks, credit companies, insurance companies, and other businesses that help insure against the risks associated with the buying and selling of goods
financial intermediaries
survey research
gathering primary data by asking people questions about their knowledge, attitudes, preferences, and buying behavior
observational research
gathering primary data by observing relevant people, actions, and situations
experimental research
gathering primary data by selecting matched groups of subjects, giving them different treatments, controlling related factors, and checking for differences in group responses
Many companies today are localizing their products, advertising, promotion, and sales efforts to fit the needs of individual regions, cities, and neighborhoods. This is an example of________
geographic segmentation
strategic planning cycle
goals, desired outcomes, strategies, measures and markets, results (vision, mission, and purpose at the center of this)
value proposition
how it will create differentiated value for targeted segments and what positions it wants to occupy in those segments
The real value of marketing information lies in how it is used ________
in the customer insights it provides
primary data
information collected for the specific purpose at hand
secondary data
information that already exists somewhere, having been collected for another purpose
Which of the following is an advantage of using an internal database?
internal databases can be accessed more quickly and cheaply than other information sources
Which of the following is true with regard to a SWOT analysis?
it evaluates the company's overall strengths
market penetration
making more sales to current customers without changing its original products
According to the Boston Consulting Group approach, ________ provides a measure of market attractiveness
market growth rate
adoption process
mental process an individual goes through from first learning about an innovation to final regular use
The physical environment affecting marketing activities is referred to as the ________environment
natural
7 P's
product (what you're selling), promotion (building awareness for customers), price (value of the product), place (making it available), people (professionals that enable success), process (ways to ensure customer satisfaction), physical evidence (tangible clues to entice customers)
Marketers who use ________ often segment their markets by consumer lifestyles and base their marketing strategies on lifestyle appeals
psychographic segmentation
consumer driven marketing strategy
segmentation, targeting , differentiation, positioning
target segment
selecting the segment or segments to enter within the market
Maslow's hierarchy of needs
self actualization needs, esteem needs, social needs, safety needs, physiological needs
enthographic research
sending trained observers to watch and interact with consumers in their natural environments
While collecting sensitive customer data, market researchers should adhere to all of thefollowing guidelines EXCEPT ________
sharing information without the customer's authorization
Positioning maps
show consumer perceptions of marketers brands versus competing products on important buying dimensions
Government agencies design ________ to encourage energy conservation and discourage smoking, excessive drinking, and drug use
social marketing campaigns
BCG growth-share matrix
stars: high growth, high-share businesses or products requiring heavy investment to finance rapid growth ; cash cows: low-growth, high-share businesses that are establishes and successful ; question marks: low-share business units in high-growth markets requiring a lot of cash to hold their share ; dogs: low-growth, low-share businesses that generate enough cash to maintain themselves
diversification
starting up or buying businesses beyond its current products and markets
The key businesses of Kimberley and Price consist of a division that produces and sells breakfast cereals and another that manufactures gardening tools. Each of these businesses is called a ________
strategic business unit
SWOT
strengths, weaknesses, opportunities, threats
Each culture contains smaller ________, or groups of people with shared value systems based on common life experiences and situations
subcultures
competitive marketing intelligence
systematic collection and analysis of publicly available information about consumers, competitors, and developments in the marketing environment
individual marketing
tailoring products and marketing programs to suit the tastes of specific individuals
local marketing
tailoring products and marketing programs to suit the tastes of specific locations
Selecti ng which segments of a population to serve is called ________
target marketing
differentiated marketing
targets several different market segments and designs separate offers for each, goal is to achieve higher sales and stronger position
mass marketing
targets the whole market with one offer, focuses on common needs rather than what's different
selective distortion
tendency for people to interpret information ina way that will support what they already believe
The objective of causal research is to ________
test hypotheses about cause-and-effect relationships
micro-environment
the actors close to the company that affect its ability to serve its customers
new task
the buyer purchases a product or service for the first time
straight rebuy
the buyer routinely reorders something without modifications
modified rebuy
the buyer wants to modify product specifications, prices, terms, or suppliers
cognitive dissonance
the buyer's discomfort caused by post-purchase conflict
societal marketing
the company's marketing decisions should consider consumers' wants, the company's requirements, consumers' long-run interests, and society's long-run interests
macro-environment
the larger societal forces that affect the microenvironment
marketing
the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return
marketing research
the process of planning, collecting, and analyzing data relevant to a marketing decision
selective attention
the tendency for people to screen out most of theinformation to which they are exposed.
selective retention
the tendency to remember good points madeabout a brand they favor and forget good points made about competingbrands
product position
the way a product is defined by consumers on important attributes