mkt 320f

Magazine advertisement: “Your well being is important to us. It’s our commitment to The Greater Good.” – What kind of orientation?
societal
Company website: “We realize it is a privilege for our products to be invited into our customers’ homes and we strive to exceed their expectations. State-of-the-art worldwide physical testing labs allow us to continually analyze the quality of our raw materials, construction methods, and finished products.” – What kind of orientation?
Product-oriented
Company profile: “Our products are sold in more than 35 markets around the world and our global independent sales force exceeds 2 million.” – What kind of orientation?
Sales-oriented
Mission statement: “Continuing the founder’s legacy of commitment to consumers, community and children, we provide high-quality products while conducting our business in a socially responsible and environmentally sustainable manner.”- What kind of orientation?
Societal
Company website: “Confidence isn’t just a word to us. Strengthening your confidence so you can achieve your goals is our first priority, and the reason millions of consultants have achieved success on their own terms.” What kind of orientation?
Sales-oriented
Which marketing management philosophy focuses on the question, “What do customers want and need?”
Market
A company that wants to implement a market orientation would need to:
implement actions that provide value to customers.
establish and maintain mutually satisfying relationships with customers.
determine how to deliver superior customer value.
do research on its customers, competitors, and markets.
_____ is defined as the relationship between benefits and the sacrifice necessary to obtain those benefits.
Customer value
_____ is a strategy that focuses on keeping and improving relationships with current customers.
Relationship marketing
A business is concerned with many day-to-day activities. Some of the most important of these activities are the planning and development of a product, its ability to communicate value, its pricing policy, and the distribution strategy. These activities are all a part of:
marketing.
Earl is starting a new bank. Before the opening day, Earl had a meeting with all employees. He discussed their mission, defined objectives for the bank for the coming years, and shared who their target market is. He talked about their product offerings and where their future branches would be located. Earl is sharing the bank’s:
marketing plan.
A firm that wants to develop a deeper understanding of its customers may optimize profitability, revenue, and customer satisfaction by focusing on highly defined and precise customer groups. This is _____:
customer relationship management.
A _____ is a study conducted by an organization to identify its internal strengths and weaknesses and also examine external opportunities and threats.
situation analysis
Coca-Cola vending machines are found all over the world. The newest machines have an interactive screen that runs advertisements and allows users to obtain free photos of themselves and ringtones after they have bought a drink. Critics of these new vending machines are concerned that entertaining technology is being used to market sugary products. In terms of a SWOT analysis, this concern would be an example of a(n):
threat.
Walmart realizes a _____ using its relationships with suppliers to give customers low prices and good customer service.
cost competitive advantage
Arizona Tea is marketed by Vultaggio & Sons. Vultaggio & Sons took a basic drink and put it into unusual bottles with elaborate designs. The wide-mouthed, long-necked bottles are now considered to be trendsetters in the new age beverage industry, and customers often buy the tea just for the bottle. The success of Arizona Tea is based on:
a product differentiation competitive advantage.
marketing
the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large
exchange
people giving up something in order to receive something else they would rather have
production orientation
a philosophy that focuses on the internal capabilities of the firm rather than on the desires and needs of the marketplace
sales orientation
the belief that people will buy more goods and services if aggressive sales techniques are used and that high sales result in high profits
marketing concept
the idea that the social and economic justification for an organization’s existence is the satisfaction of customer wants and needs while meeting organizational objectives
market orientation
a philosophy that assumes that a sale does not depend on an aggressive sales force but rather on a customer’s decision to purchase a product; it is synonymous with the marketing concept
societal marketing orientation
the idea that an organization exists not only to satisfy customer wants and needs and to meet organizational objectives but also to preserve or enhance individuals’ and society’s long-term best interests
customervalue
therelationshipbetweenbenefitsand the sacrifice necessary to obtain those benefits
customersatisfaction
customers’evaluationofa good or service in terms of whether it has met their needs and expectations
relationship marketing
a strategy that focuses on keeping and improving relationships with current customers
empowerment
delegation of authority to solve customers’ problems quickly—usually by the first person the customer notifies regarding a problem
teamwork c
collaborative efforts of people to accomplish common objectives
customer relationship management (CRM)
a company-wide business strategy designed to optimize profitability, revenue, and customer satisfaction by focusing on highly defined and precise customer groups
on-demand marketing
delivering relevant experiences, integrated across both physical and virtual environments, throughout the consumer’s decision and buying process
Shrinking middle class
Threat
Introducing new, lower-priced products to the market
Neither opportunity or threat
Customers moving to higher and lower-priced products
Both opportunity/threat
P&G has a lot of brands in the marketplace at different price points
Neither opportunity or threat
Competitors are starting to introduce lower-priced options into the market
Threat
Some customer segments are interested in spending more money on new products in the personal care category
opportunity
Marketers can control the external environment in which their organizations operate.
false
Marketers need a thorough understanding of the laws established by the federal government, state governments, and regulatory agencies.
true
Which of the following statements best describes the typical target market?
Target markets change over time as consumers drop in or out of the market, and as tastes change.
The external environment:
must be continually monitored by marketing managers.
Americans’ core value of upward mobility (i.e., success will come to anyone who works hard) has greatly influenced the way luxury goods are marketed. This phenomenon is an example of a(n) _____ factor.
social
The steps of the consumer decision-making process, in order, are:
need recognition, information search, evaluation of alternatives, purchase, postpurchase behavior
All of the following factors directly influence consumers’ level of involvement in the purchase process EXCEPT:
consumer’s age
social visibility of the purchased item
perceived risk of negative consequences as a result of the purchase
previous experience with the product
financial risk associated with the product
consumer’s age
Company X sells their products exclusively to companies in the Y market. In estimating demand from their business customers, Company X must understand that this demand is actually _____________, which means that the demand for industrial products and services is driven by demand for consumer products and services.
derived demand
consumer behavior
processes a consumer uses to make purchase decisions, as well as to use and dispose of purchased goods or services; also includes factors that influence purchase decisions and product use
value
a personal assessment of the net worth one obtains from making a purchase, or the enduring belief that a specific mode of conduct is personally or socially preferable to another mode of conduct
perceived value
the value a consumer expects to obtain from a purchase
utilitarian value
a value derived from a product or service that helps the consumer solve problems and accomplish tasks
hedonic value
a value that acts as an end in itself rather than as a means to an end
consumer decision-making process
a five-step process used by consumers when buying goods or services
need recognition
resultofanimbalancebetweenactual and desired states
want
recognition of an unfulfilled need and a product that will satisfy it
stimulus
any unit of input affecting one or more of the five senses: sight, smell, taste, touch, hearing
internal information search
the process of recalling past information stored in the memory
external information search
the process of seeking information in the outside environment
nonmarketing-controlled information source
a product information source that is not associated with advertising or promotion
marketing-controlledinformationsource
a product information source that originates with marketers promoting the product
evoked set (consideration set)
a group of brands resulting from an information search from which a buyer can choose
cognitivedissonance
innertensionthataconsumer experiences after recognizing an inconsistency between behavior and values or opinions
involvement
the amount of time and effort a buyer invests in the search, evaluation, and decision processes of consumer behavior
business marketing (industrial, business- to-business, B-to-B, or B2B marketing)
the marketing of goods and services to individuals and organizations for purposes other than personal consumption
business product (industrial product)
a product used to manufacture other goods or services, to facilitate an organization’s operations, or to resell to other customers
consumer product
a product bought to satisfy an individual’s personal wants or needs
Content marketing
a strategic marketing approach that focuses on creating and distributing content that is valuable, relevant and consistent.
strategic alliance (strategic partnership)
a cooperative agreement between business firms
relationship commitment
a firm’s belief that an ongoing relationship with another firm is so important that the relationship warrants maximum efforts at maintaining it indefinitely
trust
the condition that exists when one party has confidence in an exchange partner’s reliability and integrity
keiretsu
a network of interlocking corporate affiliates
original equipment manufacturers (OEMs)
individuals and organizations that buy business goods and incorporate them into the products they produce for eventual sale to other producers or to consumers
North American Industry Classification System (NAICS)
a detailed numbering system developed by the United States, Canada, and Mexico to classify North American business establishments by their main production processes
derived demand
the demand for business products
joint demand
the demand for two or more items used
together in a final product
multiplier effect (accelerator principle)
phenomenon in which a small increase or decrease in consumer demand can produce a much larger change in demand for the facilities and equipment needed to make the consumer product
business-to-business online exchange
an electronic trading floor that provides companies with integrated links to their customers and suppliers
reciprocity
apracticewherebybusiness purchasers choose to buy from their own customers
majorequipment(installations)
capital goods such as large or expensive machines, mainframe computers, blast furnaces, generators, airplanes, and buildings
accessory equipment
goods, such as portable tools and office equipment, that are less expensive and shorter-lived than major equipment
raw materials
unprocessed extractive or agricultural products, such as mineral ore, lumber, wheat, corn, fruits, vegetables, and fish
component parts
either finished items ready for assembly or products that need very little processing before becoming part of some other product
processed materials
products used directly in manufacturing other products
supplies
consumable items that do not become part of the final product
business services
expense items that do not become part of a final product
buying center
all those people in an organization who become involved in the purchase decision
new buy
a situation requiring the purchase of a product for the first time
modified rebuy
a situation in which the purchaser wants some change in the original good or service
straight rebuy
a situation in which the purchaser reorders the same goods or services without looking for new information or investigating other suppliers
target market
a group of people or organizations for which an organization designs, implements, and maintains a marketing mix intended to meet the need of that group, resulting in mutually satisfying exchanges
environmental management
when a company implements strategies that attempt to shape the external environment within which it operates
component lifestyles
the practice of choosing goods and services that meet one’s diverse needs and interests rather than conforming to a single, traditional lifestyle
demography
the study of people’s vital statistics, such as age, race and ethnicity, and location
Millennials
people born between 1979 and 1994
Generation X
people born between 1965 and 1978
baby boomers
people born between 1946 and 1964
purchasing power a
a comparison of income versus the relative cost of a standard set of goods and services in different geographic areas
inflation
a measure of the decrease in the value of money, expressed as the percentage reduction in value since the previous year
recession
a period of economic activity characterized by negative growth, which reduces demand for goods and services
basic research
pure research that aims to confirm an existing theory or to learn more about a concept or phenomenon
applied research
research that attempts to develop new or improved products
Consumer Product Safety Commission (CPSC)
a federal agency established to protect the health and safety of consumers in and around their hom
Food and Drug Administration (FDA)
a federal agency charged with enforcing regulations against selling and distributing adulterated, misbranded, or hazardous food and drug products
Federal Trade Commission (FTC)
a federal agency empowered to prevent persons or corporations from using unfair methods of competition in commerce
What are the twin pillars of marketing?
segmentation, differentiation
Why is targeting a specific group of customers usually more successful than trying to appeal to everyone?
It will satisfy the segment’s specific needs
A nationwide restaurant chain that varies its menu based on its location is an example of what kind of segmentation:
Geographic
Clear Channel owns hundreds of radio stations across the U.S. How do they decide what kind of music to play on a particular station?
Demographic
Procter & Gamble markets six different brands of laundry detergent, each targeting a different market segment. This is an example of concentrated targeting. T/F
false
Deciding who to target is the first step in market segmentation.
T/F
false
“One-size-fits-all” marketing is largely out of date.
T/F
true
There are a number of detergents marketed under the Tide brand, including detergents with and without fabric softener, with and without bleach, with various pleasing smells, and fragrance-free formulations. These detergents are an example of Tide’s:
product line.
Tortilla chips are most likely _____ products, since they are purchased with little shopping effort.
convenience
Nestlé’s quest is to make some of its existing products more nutritious and provide a health benefit. This is an example of which type of product modification?
Functional
A regional utility company needs to change consumers’ perceptions of its current service as being harmful to the environment. Which of the following strategies would best allow the company to accomplish this goal?
Repositioning
The first stage of the new-product development process is:
establishing the new-product strategy
During which stage of the process does the marketer lead the preliminary analysis and calculations for demand, cost, sales, and profitability?
Developing a business analysis
A manufacturer of office furnishings is finding it difficult to compete with cheaper imported merchandise. Which of the following is a potential source of new product ideas that would allow it to compete more effectively?
The company’s employees
Its foreign competitors
Customers who have requested its catalogs
R&D
All of these
all of these
In the adopter categories, the final 16 percent to adopt are similar to innovators in that they do not rely on the norms of the group but are independent because they are bound to tradition. They tend to have the lowest socioeconomic status, are suspicious of new products, and are alienated from a rapidly advancing society. They are called:
laggards.
All of the following are product characteristics influencing the rate of adoption EXCEPT:
compatibility.
distribution.
observability.
complexity.
relative advantage.
distribution
Which of the following is not one of the stages of the product lifecycle?
New product strategy stage
Profits typically reach their peak during the growth stage of the product life cycle.
T/F
true
Services tend to exhibit more search qualities than do tangible goods.
T/F
false
Which of the following is NOT one of the four unique elements to services?
Incoherency
Which of the following services would be most likely to exhibit strong credence qualities?
Tax return preparation
All of the following are benefits of supply (value) chain management EXCEPT:
key means of differentiation for a firm.
reduces supply chain costs.
improves customer service.
decreases cash flow.
increases flexibility of supply chain activities.
decreases cash flow
All of the following are logistics components of the supply chain EXCEPT:
inventory control.
production scheduling.
order processing.
warehousing and materials-handling.
trade promotions.
trade promotions
Which of the following is the inventory control system that manages the replenishment of raw materials, supplies, and components from the supplier to the manufacturer?
Materials requirement planning (MRP)
______ within the marketing channel can provide efficiencies and economies of scale as channel members take on tasks that best utilize their expertise or strategic relationships.
Specialization or Division of labor
The three basic functions channel intermediaries perform are:
transactional, logistical, and facilitating.
One configuration of a marketing channel entails producers selling to consumers without any intermediaries in the channel. This is called a(n)
direct channel.
________ is a form of distribution aimed at having a product available in every outlet where target customers might want to buy it.
Intensive
_____ use another manufacturer’s already established channel and are used most often when the creation of marketing channel relationships may be expensive and time-consuming.
Strategic channel alliances
______ is a clash of goals and/or methods that occurs between different levels in a marketing channel, most typically between the manufacturer and wholesaler or between the manufacturer and retailer.
Vertical conflict
market
people or organizations with needs or wants and the ability and willingness to b
market segment
a subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs
market segmentation
the process of dividing a market into meaningful, relatively similar, and identifiable segments or groups
segmentationbases(variables)
characteristicsof individuals, groups, or organizations
geographic segmentation
segmenting markets by region of a country or the world, market size, market density, or climate
demographic segmentation
segmenting markets by age, gender, income, ethnic background, and family life cycle
family life cycle (FLC)
a series of stages determined by a combination of age, marital status, and the presence or absence of children
psychographicsegmentation
segmenting markets on the basis of personality, motives, lifestyles, and geodemographics
geodemographicsegmentation
segmenting potential customers into neighborhood lifestyle categories
benefit segmentation
the process of grouping customers into market segments according to the benefits they seek from the product
usage-rate segmentation
dividing a market by the amount of product bought or consumed
80/20 principle
a principle holding that 20 percent of all customers generate 80 percent of the demand
satisficers
business customers who place an order with the first familiar supplier to satisfy product and delivery requirements
optimizers
business customers who consider numerous suppliers (both familiar and unfamiliar), solicit bids, and study all proposals carefully before selecting one
target market
a group of people or organizations for which an organization designs, implements, and maintains a marketing mix intended to meet the needs of that group, resulting in mutually satisfying exchanges
undifferentiated targeting strategy
a marketing approach that views the market as one big market with no individual segments and thus uses a single marketing mix
concentratedtargetingstrategy
a strategy used to select one segment of a market for targeting marketing efforts
niche
one segment of a market
multisegmenttargetingstrategy
a strategy that chooses two or more well-defined market segments and develops a distinct marketing mix for each
cannibalization
a situation that occurs when sales of a new product cut into sales of a firm’s existing products
positioning
developing a specific marketing mix to influence potential customers’ overall perception of a brand, product line, or organization in general
position
the place a product, brand, or group of products occupies in consumers’ minds relative to competing offerings
productdifferentiation
apositioning strategy that some firms use to distinguish their products from those of competitorw
perceptual mapping
a means of displaying or graphing, in two or more dimensions, the location of products, brands, or groups of products in customers’ minds
repositioning
changingconsumers’perceptions of a brand in relation to competing brands
brand
a name, term, symbol, design, or combination thereof that identifies a seller’s products and differentiates them from competitors’ products
brand name
that part of a brand that can be spoken, including letters, words, and numbers
brand mark
the elements of a brand that cannot be spoken
brand equity
the value of a company or brand name
global brand
a brand that obtains at least a one- third of its earnings from outside its home country, is recognizable outside its home base of customers, and has publicly available marketing and financial data
brand loyalty
consistent preference for one brand over all others
manufacturer’s brand
the brand name of a manufacturer
private brand
a brand name owned by a wholesaler or a retailer
captive brand
a brand manufactured by a third party for an exclusive retailer, without evidence of that retailer’s affiliation
individualbranding
usingdifferentbrand names for different products
familybranding
marketingseveraldifferent products under the same brand name
co-branding
placing two or more brand names on a product or its package
trademark
the exclusive right to use a brand or part of a brand
service mark
a trademark for a service
generic product name
identifies a product by
class or type and cannot be trademarked
The two major categories of communications are:
mass and interpersonal.
When Castrol Syntec, a premium motor oil, sought a new way to reach its young, car-passionate audience, the brand found its mark with video games. In its first-ever attempt at in-game advertising, Castrol Syntec found a way to show consumers (in a virtual world) the brand’s power and performance. In the communication process, the game served as a(n) _____ for transmitting the message.
channel
Innovyx is an email marketing service provider. It has a new ad campaign aimed at changing negative perceptions of email. The ads explain how much cheaper email advertising is than traditional advertising and what a high return on investment it can generate if used properly. Finally, the message ends by suggesting that companies wanting to promote their products give email a chance to show what it can do. This promotion has the task of:
persuading.
M&M’s famous slogan, “Melts in your mouth, not in your hand,” is an example of a(n):
unique selling proposition.
Which type of consumer sales promotion rewards loyal consumers for making multiple purchases of a particular good or service?
A frequent buyer program
Angela and Dominic own Cincy by the Slice pizzeria. They are interested in keeping track of the number of mentions their store receives on sites like Twitter and Facebook, but they are unsure of which steps to take next. Which of the following resources would best meet their needs?
A listening platform with key word report capabilities
Cutting costs is the best way to maximize profitability.
T/F
false
Willingness to pay is a way to measure demand elasticity.
T/F
true
Assume a firm sells 1M units of its product for $10 and has a 30% gross profit margin ($3). Cutting the price to $9.50 might stimulate unit sales by 10%. Will the assumed increase in sales volume offset the decrease in margin?
No, the increase in sales will not offset the decrease in margin.
Which of the following statements about yield management systems (YMS) is true?
YMS are complex pricing systems used to set equilibrium pricing points.
YMS are mathematically complex systems to make use of underutilized capacity and reduce the cost of perishability.
YMS eliminate the problem of simultaneous production and consumption from services.
The first use of YMS was in the U.S. car industry as it looked for ways to compete with imports.
YMS cannot be used by any other businesses but services.
YMS are mathematically complex systems to make use of underutilized capacity and reduce the cost of perishability.
Although many factors can influence price, the primary determinants are:
the demand for the good and the cost to the seller.
With value-based pricing:
the firm is both customer driven and competitor driven.
Imagine that you are planning a fund raising party for after the symphony, and you need a life-size grand piano cake. Or, you are a developer proposing a new shopping center to a group of investors, and you want to serve a cake shaped like an architectural rendition of the center. Is this impossible? No, you just need to contact Cecilia Villaveces Cakes. She actually built a life-size grand piano for a gala in Macon, Georgia. You can expect to pay anywhere from $75 to $10,000 for one of Cecilia’s artistic creations, depending on complexity of design and size. She uses only the best ingredients, and no two cakes are ever quite alike. Although many factors determine the prices charged by Cecilia Villaveces Cakes, the two primary determinants are:
the demand for the good and the cost to the seller.
To help understand why attendance at the team’s games was so poor, the Atlanta Falcons used marketing research to gather factual information. The organization used in-game surveys and end-of-season surveys of ticket holders. The gathering of factual statements is an example of marketing research in its _____ role.
descriptive
Through marketing research, the Boston Symphony Orchestra (BSO) learned it has an older market and is not attracting younger concertgoers. It next conducted marketing research to determine if a social media advertising and engagement campaign they were considering that would be targeted to the younger market would be successful. In its second use of research, BSO employed _____ marketing research.
predictive
The first step in the marketing research process is to:
identify and formulate the problem/opportunity to be studied.
Post Properties is a company that manages apartments in various communities. It is concerned with a glut of apartments in Atlanta, Orlando, and Dallas. Its market researcher begins by examining the rental markets in the Southeast, the history of apartment buildings, local economies, competitive rents, and ownership—all information that was on hand and did not require any new research to locate. The market researcher looked at:
secondary data.
_____ specifies the research questions to be answered, how and when the data will be gathered, and how the data will be analyzed.
The research design
The most popular method for gathering primary data is _____, in which a researcher interacts with people to obtain facts, opinions, and attitudes.
survey research
_____ research is the study of human behavior in its natural context, involving observation of behavior and physical setting.
Ethnographic
In a study whose purpose is to determine the market for a vitamin that is to be chewed like bubble gum, what is the first question to be answered before a sampling plan is selected?
What is the population or universe of interest?
An intelligence system that helps managers assess their competition and vendors in order to become more efficient and effective competitors is called:
competitive intelligence.
A carefully selected group of consumers who agree to participate in an ongoing online dialogue with a particular corporation is known as a(n):
web community.