MKT 205 Ch 1-5,7 Example Problems

What are the steps of the marketing process?
1. Understand the Market Place
2. Design a Customer Driven Mkt Strategy
3. Construct an integrated Mkt program that delivers superior value
4. Build proper relationship and customer delight
5. Capture value from customers, create profit and customer equity
To capture value (money) from consumers, marketers must___
create value for the consumers
The key element of successful marketing today is to__
create value
What is Marketing?
The process of creating customer value
The basic concept underlying marketing is that of…
customer needs
Which core marketing concept is the key building block to develop and manage customer relationships?
Value and Satisfation
The actual and potential buyers in a market share which of the following characteristics?
They share a particular need and or want
___ is the act of obtaining a desired object from someone by offering something in return
Exchange
A brand’s ____ involves the set of benefits or values it promises to deliver to consumers
value proposition
The first step to a successful value-driven marketing strategy is to determine whom to serve with a market offering. To make this decision, marketers engage in which two activities?
Segmenting & Targeting
Companies that care about well-being of consumers, natural resources, viability of suppliers, and local community reflects ____
Societal Marketing Concept marketing philosophy
The ___ concept holds that consumers will favor products that are available and affordable
Production concept
Marketing Mix
Product, Price, Place, Promotion
There is little fit between the company’s market offerings and the needs of which customer group?
Strangers
FedEx offers its customers fast and reliable package delivery. When FedEx customers weigh those benefits against the monetary costs and other costs of using the services, they are acting on
customer-perceived value
Which of the following is an accurate statement about building customer relationships in the modern marketing era?
Building relationships through consumer-generated marketing is expensive and time consuming
The total combined lifetime value of a company’s current and potential customers is called
customer equity
Although a “customer-centered” firm seeks to deliver high customer satisfaction relative to its competitors it
does not attempt to maximize customer satisfaction
___ marketing is perhaps the fastest-growing digital marketing platform
Mobile
Social media campaigns provide exciting opportunities to___
extend customer engagement and get people talking about a brand
Which of the following statements regarding the changing marketing landscape is correct?
Digital technology has changed the way we live
Which of the following statements regarding the current economic environment is correct?
Consumer spending values now emphasize simpler living and more value for the dollar
A company’s mission statement should be focused on ____
Customers
Nike states that it wants to “bring inspiration and innovation to every athlete in the world” This is Nike’s
Market-oriented mission statement
Which of the following steps in the strategic planning process is done at the business unit level?
Planning marketing strategies
In the strategic planning process, the business portfolio is designed after____
setting company objectives and goals
The primary purpose of a strategic plan is to___
develop and maintain a strategic fit between a company’s goal and capabilities and its changing marketing opportunities
Within the growth-share matrix, “cash cows” are
Low Growth, high-share businesses or products
In 2005, Proctor and Gamble purchased Gillette, makers of shaving products, and added these to the existing P&G portfolio. Which growth strategy did P&G use in acquiring Gillette Stadium?
Diversification
According to BCG matrix___ are high share, high growth product. When the market growth slows, these products become___
Stars; cash cows
What are the two measures the BCG matrix uses to classify SBUs (strategic business units) and products in the portfolio
Relative market share and market growth rate
The major activity in strategic planning is the analyses of a business
portfolio
Which one of the following statements about marketing’s role in strategic planning is correct?
Marketing provides inputs to strategic planners
___ plans a key role in the company’s strategic planning
Marketing
Each department can be though of as a link in the company’s
value chain
Marketing can disrupt the internal value chain and cause conflicts to develop because it can potentially___
increase production cost, increase inventories, cause budget headaches, and disrupt production schedules
One way for companies to improve the performance of the ___ is by partnering with suppliers, distributors, and customers
value delivery network
___ refers to activities that communicate the merits of the product and persuade target customers to buy it
Promotion
The Dollar Store or Family Dollar profitably focus on buyers with modest means with their market offerings. This is an example of ___
Market targeting
What is one primary purpose of a product’s position
differentiation
___ is at the core of any marketing strategy
Customer value and relationships
___ involves evaluating each market segments attractiveness and selecting one or more segments to enter
Market targeting
Which of the following is a true statement regarding managing and measuring marketing ROI?
Marketers are increasingly using measures such as customers acquisition and retention, customer engagement, and customer equity as measures of ROI
Which of the following is not one of the five marketing management functions?
Implementation, control, customer services, analysis, planning
Customer Service
Assume the economy is in a recession. Mario’s custom jewelry is expensive and sales are down in a situation (SWOT) analysis, the state of the economy is a ____ and Mario’s pricing structure is a ___
Threat; weakness
The most common form of marketing organization is___
Functional organization
What are the main components of a marketing plan?
An executive summary, situation analysis, objectives, strategy, action programs, budgets, and controls
One challenge that marketers face regarding the macroenvironment is that
changes in this environment are often unforeseeable and uncontrollable
Which of the following correctly lists actors in a company’s microenvironment?
Competitors, marketing intermediaries, suppliers, and publics
The microenvironment consists of all of the following except____
publics, suppliers, competitors, companies, demographics
demographics
The most important actors in the company’s microenvironment are
customers
The macroenvironment consists of larger societal forces, which include
economic, political and cultural forces
According to the text, what is the single most important demographic trend in the United States today
The changing age structure of the population
Demography studies statistics include
age, race, gender, and occupation
The “echo boomers” is another name for
Millennials
Which of the following statements is correct regarding the current demographic environment?
The U.S. population is rapidly getting older
The ___ environment consists of economic factors that affect consumer purchasing power and spending patterns
economic
Shortages of certain raw materials is a major trend related to the ___ environment
natural
The___ environment is the most dramatic force shaping the destiny of the markets and marketing
technologica
One important new technology is ___, which can track products from point of production to their usage and disposal.
RFID
Which of the following is an important trend in the natural environment that marketers should be aware of?
Products that require scarce resources facing large cost increases
Which of the following is true of environmental sustainability?
Companies are learning that engaging in sustainable practices is good for business
The ___ environment consists of institutions and other forces that affect society’s basic values
Cultural
Business legislation has been enacted for a number of reasons which include all of the following except____

to make firms take responsibility for the social costs of their production or products

Protecting consumers from unfair business practices

Protecting interest of society

Developing a code of ethics

Protecting companies from each other

Developing a code of ethics
In the US, patriotism has increased in recent years. Marketers have responded with increased use of the “Made in America” appeal and patriotic themes. That reflects which aspect of culture?
People’s views towards society
One important reason that business legislation is enacted is to ___
protect consumers from unfair business practices
As a direct result of the explosion in the digital technology, one area that advocates and policy makers are taking action is ___
Invasion of privacy
A firm is concerned about how to prepare for changes in its marketing environment. What advice would you give the firm?
Whenever possible, take a proactive approach to the environment
A firm can be proactive by
pressing lawsuits to keep competitors in line
Companies who passively accept the marketing environment
View it as uncontrollable and do not attempt to change it
Being proactive toward the marketing means that
Company develops strategies to change the environment
Many companies view the marketing environment as a(n)___ element to which they must react and adapt.
Uncontrollable
Which of the following statements discussing big data is not true
Marketers can access and easily sift through data once its available
Which of the following about big data is correct?
One result of big data is that marketing managers are often overloaded and overwhelmed with inforamtion
What is the overall purpose of customer insight teams?
To develop customer insights from which the company can create more value for customers
To deliver real value to marketers, marketing information must___
provide useful customer insights
MIS interacts with information users in several ways which include all of the following except
Providing concise information
To develop needed information, marketing information systems utilize___
internal databases, marketing intelligence, and marketing research
___ is the systematic monitoring, collection, and analysis of publicly available information about consumers, competitors, and developments in the market place
Competitive marketing intelligence
Competitive marketing intelligence uses ___ data sources
publicly available
One advantage to using internal databases for information is that___
they can be accessed quickly and cheaply
MIS begins and ends with information users. Which of the following statements is not an advantage of MIS?
MIS may provide information to external partners, such as suppliers, resellers, or marketing services agencies
____ is the first step in the marketing research process
Defining the problem and research objectives
You and seven other people are talking with a trained moderator about your feelings and thoughts regarding a potential new product. For doing this, you receive a small payment. you are participating in a(n)
Focus group interview
The objectives of ___ research is to gather preliminary information that will help define the problem and suggest hypotheses
exploratory
A colleague needs to collect descriptive data about her customer’s attitudes. She has not done this type of research before. What research approach would you recommend to best suit this research project?
survey
Which of the following statements about online research is correct?
Online surveys generally have higher response rates than those conducted by mail or phone
The main purpose of CRM is to___
build stronger customer relationships
Companies can allow key customers and value-network members to access account, product, and other data through___
CRM
Any contact between a customer and a company is called a ___
extranets
Many companies manage detailed information about individual customers by using all of the following methods except___

customer touch points

Customer relationship management

Marketing analytics

Collecting and storing huge amounts of data

Big data analytics

Collecting and storing huge amounts of data
Companies set up ___, which allow key customers and value-networks members to access product, account, and other data anytime they need to
extranets
In response to concerns about intrusions of privacy, most large companies now appoint a ___ to safeguard the information of consumers who do business with the company
Chief Privacy Officer (CPO)
The marketing research industry is considering several options for responding to the intrusion and privacy issues, which includes all of the following except___
sharing information widely
Which one of the following statements about marketing research in small business and non profit organizations is correct?
Although the research methods used by small businesses and nonprofits are less complex and costly, they still must be conducted carefully
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
Which of the following would be good advice for someone that is conducting marketing research in a foreign country?
Reaching respondents in other parts of the world is more difficult than it is in the United States
Which of the following correctly defines the consumer market?
Individuals and households that buy goods and services for personal consumption
Forces and events in the buyer’s environment enter the buyer’s black box, where they are turned into a set of buyer responses. These buyer responses include___
brand choice, purchase location and timing, and brand engagement and relationship behavior
According to the model of buyer behavior, what are the two parts of a buyer’s black box?
The buyer’s characteristics and the buyer’s decision process
Compared to the mainstream buying public, Hispanic consumers tend to be deeply___ oriented, making this a special characteristic and behavior
family
According to the stimulus-response model of the buyer behavior, marketing and other stimuli enter the consumer’s ___ and produce certain responses
black box
Which of the following correctly identifies the personal factors that influence consumer buyer behavior?
Age and lifecycle stage, lifestyle, economic situation, occupation, and personality and self concept
Consumer motivation, perception and learning are related to the___ factors influencing consumer behavior
psychological
Some of the cultural factors that influence buyer behavior include___
subculture and social class
The statements, “I only buy the best” and “The Japanese make the best cars in the world” represent
attitudes
Consumer purchases are influenced strongly by certain characteristics which include all of the following except
Cognitive
Variety-seeking behavior would result from which of the following conditions
Low Involvement and significant differences between brands
What determines whether a buyer is satisfied or dissatisfied with a purchase?
Satisfaction is determined by the relationship between the consumer’s expectations and the products perceived performance
In the buyer decision process, after a consumer has recognized a need, he or she will next___
search for information
___ behavior occurs when consumers are highly involved with an expensive, infrequent, or risky purchase but see little difference among brands
Dissonance reducing buying
When consumers engage in ___ buying behavior, they go through a learning process, so it is most important that marketers understand information gathering and evaluation behavior
complex
Which adopter group is skeptical and adopts a new product only after a majority of people have tried it?
Late Mainstream
The first group marketers try to bring their new products to the attention to are potential
innovators
___ is the first stage in the new product adoption process
Awareness
In the product adoption process
There are five stages:
awareness, interest, evaluation, trial, adoption
Which of the following correctly identifies the first two adopter groups that adopt a new product?
Innovators Early adopters
What is positioning
Arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumersMa
Market___ evaluates each market segment’s attractiveness and selects one or more segments to serve
targeting
The step in designing a customer value-driven marketing strategy in which a company divides a market into distinct groups of buyers is known as market___
segmentation
Which of the following statements about segmentation is true?
Different segments might require different marketing strategies or mixes
What is the purpose of differentiation?
To create superior customer value
Which of the following statements regarding segmentation is correct
Consumer and business marketers use many similar variables, but business marketers use additional variables to segment their markets
Toothpastes claim they “whiten teeth, fight bad breath, and reduce plaque”. Which base of segmentation is being used in this example
Benefits sought
___ segmentation divides buyers into different segments based on lifestyle or personality characteristics
Psychographic
If men and women respond similarly to the same marketing mix, they do not constitute different segments. Gender would not be effective in the example because the segment is not___
differentiable
___ segmentation divides buyers into segments based on their knowledge, attitudes, uses, or responses to a product
Behavioral
Instead of going after a small share of a large market, a firm goes after a large share of a smaller niche segment. This type of marketing strategy is known as___
Concentrated marketing
On of my M&Ms web sites, users can place custom orders. They can choose their own colors, personalized messages on the candies, and even upload a photo to be placed on each candy. Which targeting strategy are they using?
Individual Marketing
One important consideration in using a differentiated targeting strategy___
It can increase costs
Using a(n) ___ marketing strategy, a firm might decide to ignore market segment differences
undifferentiated
A colleague wants to evaluate the attractiveness of a particular market segment. Which of the following would be good advice for your colleague
Carefully consider the degree of competition and ease of entry into the segment
What are perceptual positioning maps used for?
To show consumer perceptions of different brands on important buying dimensions
Amazon and GEICO set themselves apart with their smooth-functioning direct delivery strategy referred to as ___ differentiation
channel
The Westin Stamford Hotel in Singapore failed when it once advertised itself as the world’s tallest hotel. The difference was not worth establishing because it did not satisfy which of the following criteria
Important
The winning value proposition by discount stores such as Walmart and Best Buy can be categorized as ___
The same for less
Which value proposition is difficult to sustain in the long run?
More for less