Foundations of Marketing and Management Final

How does marketing MOST benefit consumers?
by responding to needs in an effort to satisfy those needs
T/F: Secondary marketing data, which has already been collected and processed, is usually more expensive to obtain than primary data
false
T/F: All companies have a code of ethics in place to curb unethical behavior within their organizations.
false
_______ is the process of surveying the market environment to assess external threats and opportunitie
environmental scanning
Once an organization has performed a complete situational analysis, including an evaluation of its internal strengths and weaknesses and the external opportunities and threats of the market environment, then it is ready to ________.
select its target market
When you have already determined that there is demand for the services of your potential business, your next step is to ________
conduct market research
The ideal marketing objective is ________.
time specific, realistic, and quantifiable
T/F: A marketing plan is best provided as an oral presentation so that employees can grasp concepts through visual aids and ask questions in a question-and-answer session.
false
T/F: Environmental influences are variables under the direct control of an organization.
false
When competition for customers became more intense during the sales era, businesses began to ________.
undertake aggressive sales tactics to “push” their product
T/F: Marketing research may suggest better ways and opportunities to provide services to customers.
true
Which of the following is an example of a situational factor that could affect a consumer’s buying decision?
the layout of a store
In a “seller’s market” ____
demand exceeds supply
T/F: The value of the U.S. dollar on the international market is an example of an environmental influence
true
The competitive advantages or core competencies that a company has at its disposal to meet a specified marketing objective are called its ________.
internal strengths
o a researcher collecting data, the New York Times is a ________.
secondary source of data
The final step in the marketing process is _______
maintaining good customer relationships
The fact that modern, sophisticated manufacturing innovations have enabled many firms to more easily customize their products and to offer them at dramatically reduced prices to satisfy the varying tastes of targeted customers represents the impact of the ________ on the marketing of products.
technological environment
T/F:
In business-to-business (B2B) market purchases, purchasing agents often weigh the benefits and the costs in a more systematic fashion than buyers in consumer markets; therefore, sellers don’t have to pitch their products at as sophisticated a level as is used in competitive consumer markets.
false
An advertising campaign that attempts to reposition its product is an example of _______
creating a new vision
A company that announces a manufacturer’s suggested retail price and then offers a discount off that price is using ________ pricing.
reference
T/F: Branding increases the risks involved in some purchases for which buyers are unable to determine quality objectively.
false
Salespeople bringing suggestions for a new fast food item to the headquarters of their food manufacturer is an example of ______
idea generation
A brand assigned to each product within a company’s product mix is a(n) ________ brand.
individual
Downloading a song from iTunes is an example of a(n) ________ service.
convenience
Charging different prices to different customers when these price differences are not a reflection of cost differences is called price ________
discrimination
The Fair Packaging and Labeling Act of 1966 requires companies to identify all of the following EXCEPT the ______
formula by which the product was manu
A new freelance writer who sets a price at a level to generate just enough revenues to pay expenses is using the pricing objective of ______
covering costs to survive
A manufacturer of yachts sets its prices high above its competitors. This is an example of the pricing objective of ________.
creating an image
The Crusher Corp. charges very low prices to drive its only competitor out of business. This is an example of ________ pricing.
predatory
A snack food bag is white with plain black letters spelling, “Corn Chips.” This is most likely an example of a ________ brand.
generic
A store that sets its prices at the same level as the store across the mall is using the pricing objective of ____
status quo pricing
A ________ prevents a brand from becoming generic and public property.
trademark
The two functions of labels are to ________.
inform and persuade
f a package prevents tampering with a product, which purpose of packaging is being performed?
to preserve and protect the product
Setting the right price _____
can help differentiate the product from the competition
Branding benefits ________.
both buyers and sellers
T/F: Once a product has gone through initial development and testing, and after a business analysis indicates there is financial merit to the idea, an initial design or prototype is developed.
true
5 Functions of the marketing dept
1. communicate societys wants and needs to the org
2. est the pricing strategy
3. promote product benefits
4. distribute products
5. est meaningful relationships with customers
strong demand and limited supply, good quality products that sold themselves; industrial revolution would describe what era of marketing?
the production era
production was greater than demand; greater competition and heavy advertising would describe what era of marketing?
the sales era
a buyers market, with lots of competition and production; develop products that meet customers needs, and a focus on products with the highest profit. Org commitment to delivery would describe what era of marketing?
the marketing era
challenged companies to work for the benefitts of consumers and society while making a profit would describe what era of marketing?
the societial marketing era
marketing, sales customer feedback, and support would describe what era of marketing?
the customer relationship era
what is the seller benefit of marketing?
profits
what is the society benefit of marketing?
resources are used more effeciently
what is the investor and employee benefit of marketing?
financial rewards, job security, and new job opportunities
what is the consumer benefits of marketing?
satisfaction of needs and creation of utility
form utility
raw materials used to make a useful product
-ex. a swimsuit
task utility
performs a service
ex. alterations
time utility
delivering a product when a customer needs it
-ex. swimsuits sold in summer
place utility
product made avaliable at a convenient place
-ex. dept store
ownership utility
store owner transfers ownership to the customer by selling it
target market
a specific group of potential customers on which market efforts are focused
marketing mix
combination of controllable elements of a product marketing plan designed to serve the target market
what are the four ps?
product
price
promotion
place
what are the four cs?
customer wants and needs
cost to satisfy
convenience to buy
communication
What are the 5 steps of the marketing process?
1. identify a need
2. conduct marketing research
3. identify target customers
4. implement the four ps and cs
5. nurture good customer relationships
environmental scanning
surveying the market environment to assess external threats and opportunities
target markets are determined by what 4 factors?
1. geographic
2. demographic
3. psychographic
4. behavioral
A business to business market is:
_______ customers
______ volume purchases
Geographically _______
few customers
large volume
geographically concentrated
business to consumer market is:
_____ customers
_________ volume purchases
Geographically _________-
many customers
small volume purchases
geographically dispersed
7 steps of new product development
1. idea generation
2. idea screening
3. product analysis
4. development and testing
5. product and marketing mix development
6. market testing
7. commercialization
total product offer
all the benefits associated with a product that affects a customer’s purchasing decision
core product
the primary benefit; satisfies a basic need or want
actual product
the tangible part of the product (touch, smell, etc)
-customers compare brands, quality, featres, styling, and packaging
augmented product
real or percieved benefits of the product
-customer service, delivery, warranty, etc
-provides a more satisfying experience
product line
a group of similar products marketed to one general market

ex. Honda offers automobiles

product mix
a combination of all product lines offered by a company

ex. Honda offers automobiles, plane motors, and power equipment

Something that is used often, consumed quickly, and has a relatively low price would be a ____ good.
convenience
something that is bought less frequently and customers compare products would be a ___ good.
shopping
something that is high end, price is not important, and there are no suitable substitutes would be a ___ good.
speciality
something that customers dont think or know about until they need it would be a ___ good.
unsought
a production good is
a factory, office, etc
a support good is
a computer, printer, etc
capital items
all physical items of a business
branding
a name, term, symbol, or design that distinguishes a company and its products from all others
brand extension
same name, different product
trademark
a legally protected brand
brand loyalty
a degree to which customers prefer a product
-recognition
-preference
-insistence
brand equity
overall value; strength in the market
-awareness
-association
manufacturers brand
a brand created by those who manufacture the product
ex. google, ben and jerrys
family brand
several products under the same name
-consumers trust, so likely to buy new products
ex. Bic: pens, lighters, razors
individual brand
brand assigned to each line within a company’s product mix
ex. saralee makes: ballpark, hillshire farm, ironkids, etc
private brand
brand created by a distributor
-the manufacturer is NOT identified on the product
ex. kenmore and craftsman
co brands
packaging two or more brands affiliated with a single product
generic brand
no brand at all
price skimming
charge a high price at first to recoup development costs; lower later
-high price encourages competition
penetration pricing
chares the lowest possibly price to quickly build market share
-may be difficult to increase price later
loss leader
priced below its costs; attract customers to the store in the hopes that they would buy something else
reference price
inflate price to lower later
-ex. ross
breakeven analysis
determine the producation level at which total revenue is just enough to cover costs
-no profit, no losses
average variable costs
variable costs divided by the production level
breakeven analysis = (formula)
total fixed costs / revenue per unit – average variable costs
promotion
all of the techniques marketers use to inform targeted customers of the benefits of a product and to persuade them to purchase the good, service, or idea
4 parts of the promotional mix
advertising
public relations
sales promotion
personal selling
integrated marketing communication
a strategy to deliver a clear, consistent, and unified message about the company and its products to customers and all contact points
public relations
the marketing function that establishes and maintains mutually beneficial relationships between an organization and its stakeholders
order getter
new customers and existing
ex telemarketer
order taker
repeat sales, sufficient quantities
order influencer
not direct sales, ex pharma reps
support personnel
assist current customers
6 steps of personal selling
1. prospect
2. approach
3. present
4. overcome objections
5. close
6. follow up
wholesale merchant sells primarily to
sell primarily to retailers
a speciality merchant sells primarily to
manufacturers and institutions (govt, etc)
cash and carry merchants
limited line of fast moving goods; no delivery
ex fish market
truck merchants
sell and dliver directly from their trucks; semi perishable items
drop shipper merchants
dont carry inventory or handle products; yo order, they find a manufacturer to ship directly to you
rack jobber merchants
non food itmes, like magazines
-the company still owns, bills only for the ones sold
manufacturer agents
indepdent contractors that sell products for more than one manufacturer, usually complementary
selling agents
sales dept for manufacturer; common with industrial machinery and equip
purchasing agents
long term relationships with buyers and make purchases for them
intensive distribution
selling convenience products, 7-11
selective distribution
selling shopping products
ex. best buy
exclusive distribution
selling speciality products ex. lexus
speciality retail store
a wide selection of products in one category (ex. gamestop)
factory outlet
owned and operated by a manufacturer, sells surplus, discount, or irregular goods
ex. nordstrom rack
logistics
managing the flow of materials, information, and processes from raw product stages to consumption
inbound logistics
raw materials from supplier to producer
materials handling/ operations control
managing movement of resources
outbound logistics
physical distribution
reverse logistics
bringing back defective products
third part logistics
outsourcing
T/F: Consumer sales promotions are becoming more common because they help segment markets and they are cost-effective.
true
EBay, which never owns the various items it sells, can be considered a(n) ________.
agent/broker
Marketing intermediaries are also referred to as ?
middlemen
What are four common PR tools?
-controlled messages
-semi controlled messages
-uncontrolled messages
-sponsorship of sports events
Members of the marketing team are MOST often involved with ________.
sales promotion, public relations, etc
Which transportation mode MOST often has the highest accessibility to markets?
trucks
a rebate would be an example of?
a sales promotion
T/F: Advertising is paid, impersonal mass communication from an identified sponsor to persuade or influence a targeted audience.
true
T/F:
One advantage publicity has over advertising is that it is more believable.
true
A wholesaler selling groceries to the grocery store is an exmaple of?
business to business selling
T/F: Advertising is especially important in the maturity stage of a business because it helps build mass brand awareness and brand association.
false
After a marketing objective is defined, what is the next step marketers should take?
determine the budget
________ determine what number of intermediaries will be required to achieve the greatest level of efficiency.
competitive markets
T/F: Wholesalers are independently owned businesses that do not take ownership (title) of the products they handle.
false
T/F: Intermediaries must cover the costs incurred at each link in the distribution channel and earn a profit to remain in business. This causes the consumer to pay higher prices for products.
true
T/F: Wholesalers sell only business-to-business products, while retailers sell primarily consumer products.
false
Target is an example of a ________.
discount store
Zenith has introduced a flat-screen television and is training salespeople in a limited number of stores where this new model will be sold. This is called ________ distribution.
selective
sponsorship of a sporting event would be an example of a ___________ message
semi controlled
What is most often the lowest cost transportation mode?
waterways
The many product lines at Procter & Gamble are an example of product mix ________.
width
what is an MRO product?
maintenance, repair, and operations
(ex. tools mechanic uses)
T/F: Marketing is an ongoing process of tweaking a business to satisfy customers in order to ensure quality, value, and repeat business.
true
T/F: Heavy public advertising is used to retain customers in order to stimulate future sales of similar or supplementary products?
false
The process of developing a unique marketing mix that best satisfies a target market is known as
positioning
A fast food manufacturer estimating a new food item’s production costs, sales volume, and profitability is an example of ________
product analysis
A bag of snack food says, “Walmart’s Corn Chips.” This is an example of a(n) ________ brand.
private
A theoretical model describing a product’s sales and profits over the course of its existence is known as the product ____
life cycle
The ________ serves as the sales department for the manufacturer.
selling agent
Annual reports are an example of a ________ message
controlled
L.L. Bean and Lands’ End are examples of businesses that sell products through catalogs and bypass intermediaries. This method of selling is called ________
direct marketing
Manufacturers’ agents are MOST LIKELY used in such lines as ________.
apparel, furniture, and electrical goods
______ is often the MOST expensive distribution cost.
transportation