Customer Satisfaction is the extent to which a firm fulfills a consumer’s?
needs, desires and expectations
When a firm produces a large quantity of product the cost of pro ducting each individual unit usually goes down. What is the term for this phenomenon?
economies of scale
Marketing is the study of
Which is true in a market-driven economy
Consumers decide what is to be produced and by whom through their dollar “votes”
Which is true of a from with a marketing orientation
it tries to determine customers’ need before developing product
Which industry is most likely to have a sales orientation?
Which of the following statements about customer value is true?
customer value is difference between the benefits a customer sees from a market offering and the costs of obtaining those benefits
Relationship marketing values
repeat purchases above one time transactions
complete acceptance of the “marketing concept” would require which of the following
making sure that all departments focus their efforts on satisfying customer needs
which of the following organizations would have been most likely to adopt the marketing concept first?? What is the marketing concept?
a producer of health and beauty aids
making what is desired or wanted” rather than “selling what we make.” The market orientation is characterized by the following:
coordinated marketing effort
Which of the following sets correctly identifies the “four P’s” of a marketing mix?
Product Place promotion and price
Which is true of the “price element in the marketing mix?
Price is affected by the kind of competition in the target market
An appropriate marketing mix should be determined primarily by
the needs of a target marget
In contrast to “mass marketing” which of the following statements is true of target marketing?
None of the above statements
As americans have become more health conscious, energy bars have become a substitute competitor to candy bars. What kind of trend led to increased preference for energy bars?
Which best defines a marketing plan
a written statement of a marketing strategy plus the time related details for carrying it out
a baby food company has decided to launch a line of organic products that will be advertised with the slogan only the Freshest and the best for your baby. What stage of strategic planning does this slogan reflect?
determining product position
If a children’s show company has target markets for infant boys, toddler boys infant girls and toddler girls how many different marketing mixes should the company have?
Which od the following statements is true
customer equity is expected profitability of a firm’s current and prospective clients over some period of time
An Australian win producer facing declining sales at home, set up a new channel of distribution to sell win in the United States. This seems to be an effort of which of the following?
Briefly describe the three marketing orientations. Which orientation is prevalent today?
Product orientation: A focus on the efficient production of company products without the use of customer information. This orientation was the norm until the early 1900s and is best when demand exceeds supply.
Sales orientation: The communication is predominantly one-way to the customer and the main emphasis is to just “sell the product.” This orientation emphasizes promotion.
Market orientation: Prior to the selling process, information about the market is collected in order to determine what the customer needs and the best way to satisfy those needs. This is the most prevalent philosophy found in the business world today.
What is the marketing concept, and what characterizes a market orientation?
the marketing concept entails discovering and identifying the customers’ unmet needs, and then satisfying them. The market orientation is based on this concept and is characterized by customer focus, a coordinated marketing effort, and long-term success. A customer focus involves a consistent and continuous effort to find out what customers need or want. A coordinated marketing effort means that information about the customer or marketplace is shared throughout the organization. Firms whose actions are customer-driven are better able to adapt to a dynamic marketplace, and they perform better in the long run.
Describe the importance of relationship marketing.
The most important aspect of relationship marketing is the fact that people buy from people and companies they like and trust. As a result, building relationships with customers is extremely important in order to ensure continued sales as well as to attract new markets and customers.
Define marketing mix.
The marketing mix is the blend of marketing decisions used to satisfy customer needs. They are known as the four Ps of marketing: product, place, price, and promotion.
List and briefly describe the external environmental forces that influence strategic planning.
Demographics: the characteristics of the population
Economic trends: how business cycles play an important role in determining strategy
Competitors: knowing competitors’ positions and strategies
Sociocultural trends: used to identify the emergence of substitutes
Political: reflected in laws and policies that regulate business and competition
Technological and scientific advances: must be monitored and analyzed
What are the five steps in strategic planning?
Conduct a situation analysis. This involves analyzing current marketing programs to see what changes need to be made.
Develop marketing objectives. These must be specific, measurable, attainable, and consistent with larger strategic goals and the findings from the situation analysis.
Determine positioning. This is based on the differential advantage or unique selling proposition.
Select target markets. This requires an assessment of potential demand from potential consumer segments.
Design a strategic marketing mix.
Hugh Leastmoon has an annual income of $75,000 a year. He pays $25,000 in taxes, and spends another $15,000 on his home, car, food, and other “necessities.” Last year, he decided to really enjoy his annual vacation, so he spent $5,000 to go skiing in Austria. What was Hugh’s discretionary income last year?
On his way to a GM dealership to pick up a new truck he has purchased, Luke Bigfist hears a Ford ad that says that Ford trucks have more power than Chevy trucks. Luke thought that the ad said that the Chevys had more power. What is illustrated here?
What is the order of steps in the learning process
drive, cue, response, reinforcement
which of the following is not a social influence in consumer buying?
Lori Morro just bought a cellular telephone for her car after spending several weeks considering all the possibilities. She likes the new phone, but is still wondering if another brand at a slightly higher price would have been better. This is an example of which of the following?
Denis Marlowe has noticed several television commercials for LookYourBest, a new brand of shampoo. While washing his hair, he thinks about what would happen if he replaced his current shampoo with LookYourBest. What stage in the adoption process has Denis reached?
Erin, a socially conscious college student, decides that any coffee she buys must be fair trade and organically grown. At what stage of the consumer buying process does Erin arrive at this conclusion?
Which action will most likely result in a high level of customer satisfaction?
attracting the customer to buy without exaggerating what he or she should expect
which factor is most likely to affect the amount of time a consumer spends in the buying process
level of involvement
A consumer buys an apple of average quality from a fruit stand. Assuming each apple tastes the same, which fruit stand sign would most likely result in the highest level of customer satisfaction?
Get your rotten apples here
List and briefly describe the stages of the consumer buying process
The start of the buying process begins with the recognition that there is a need or want that requires satisfaction.
Need recognition comes as a result of some form of stimuli, whether it is an element of the marketing mix, a primary or secondary need, or another external stimulus, such as seeing something you want.
The consumer will engage in some search of information about alternatives that may satisfy the need.
An information search can occur internally or externally. An internal search is the process of recalling information stored in the memory. An external information search seeks information in the outside environment, such as from advertising, other marketing elements, or a salesperson.
Once the consumers have settled on a set of alternatives, they engage in an evaluation of which is best suited to their needs. What determines the alternative selected is an attribute or set of attributes that the individual uses to judge the alternatives.
The purchase decision stage of the consumer buying process includes whether to buy a product as well as where and how to buy it.
Cognitive dissonance, or a feeling of anxiety or regret following a purchase decision, is a key factor in this final process. Whether a consumer experiences this phenomenon depends on his or her level of satisfaction versus his or her expectations. This is known as expectancy gap theory. The imperative and difficulty for marketers is to deliver on performance through quality products and consistent services and to attract customers without exaggerating what they should expect.
Describe the three types of decision making and provide an example of each.
Routine decision making—for low-priced, everyday items like chewing gum, soft drinks, or magazines.
Limited decision making—for moderately-priced items like small appliances, or clothing.
Extensive decision making—for high-priced purchases like a house, automobile, or university education. In general, the more expensive an item is to the consumer, the more involved the consumer will be: more time will be spent searching for information, evaluating the alternatives, and evaluating the performance of the product.
According to the textbook, there are three types of influences that play a role in buying decisions. What are these influences, and what are some examples of each?
Social influences—Some examples of social influences are culture, subcultures, class, reference groups, and families/households.
Psychological influences—Some examples of psychological influences are those identified in Maslow’s hierarchy of needs (physiological needs, safety, belonging and love, esteem, and self-actualization) and also perception, learning, personality, and attitudes.
Situational influences—Some examples of situational influences are time, surroundings, purchase terms, and consumer moods and motives.
Which of the following should be the first step in market segmentation
defining some broad product markets where you may be able to operate profitably
Which of the following is the criterion for a good product market segment to be considered substantial
The product market segment should be large enough to be profitable
When should market segmentation be practiced?
always when marketing products or services
Which of the following three methods would be a segmented use to develop market oriented strategies in a broad product market
single target market approach and multiple target market approach
Behavioral segmenting dimensions (rather than demographic) include which of the following?
Which of the following is true of segmenting international markets, as contrasted with segmenting domestic markets?
It may be more difficult because critical data may now be available or dependable
Which of the following statements is true about the clustering techniques that can be used in segmenting
A. Computers are often used in clustering approaches today, largely replacing intuition and judgment formerly relied upon.
B. Clustering could examine such dimensions as demographic characteristics, attitudes toward a product, and past buying behavior.
C. Clustering tries to find similar patterns within sets of data.
D. Results from clustering sometimes suggest new or better marketing strategies.
E. All of the above are true.
What category for colas is superordinate?
Dove moisturizer promises to moisturize skin 45 percent more effectively than OLAy. What does dove plan to accomplish with this claim?
create a competitive position
Generally, how many benefits should be used in a broadcast advertisement
Melissa has started a wedding coordination business and wants to market her services in town. She feels everyone could use her services, so she decides to market her service the same to everyone. Is this a good idea? Why or why not?
No, this is definitely not a good idea for Melissa. Although she may feel that everyone can use a wedding coordinator, it is never a good idea to market a product or service to everyone in the same way. The bottom line is you always segment your market. Thinking about how different groups of consumers may respond takes little effort and often leads to more effective and efficient marketing spending.
Briefly describe the steps in market segmentation outlined in the book.
Identify the current and potential wants that exist within a market.
Carefully examine the market to determine the specific needs being satisfied by current offerings, the needs current offerings fail to adequately satisfy, and the needs that may not yet be recognized. This may involve interviewing and/or observing consumers or firms to determine their behavior, levels of satisfaction, and frustrations.
Identify characteristics that distinguish among the segments.
Focus on what consumers who share a particular want have in common to distinguish them from other segments in the market that have different wants.
Determine the size of the segments and how well they are being satisfied.
Estimate how much demand each segment represents and the strength of the competition. This will help identify which segments are worth pursuing.
List and describe the types of segmenting as described in the book.
Geographic segmentation—subdividing markets into segments based on location (regions, counties, cities). This is done because consumers’ wants and product or service usage are often related to one or more subcategory.
Demographic segmentation—subdividing markets into segments based on age, gender, family life-cycle stage, income, and education. Segments are based on these characteristics because they are often strongly related to demand and are relatively easy to measure.
Psychographic segmentation—examining attributes related to how a person thinks, feels, and behaves. Frequently included in a psychographic segmentation are personality dimensions, life-style characteristics (activities, hobbies, opinions, etc.), and consumer values.
Behavioral segmentation—segmenting based on product or service-related behaviors, particularly the benefits that a consumer desires to obtain, and their usage rate.
Marketing research is concerned with developing and analyzing new information to help marketing managers to do a better job in which of the following?
A. implementing marketing strategies
B. planning marketing strategies
C. making operational decisions
D. controlling marketing strategies
E. all of the above
Which of the following is true regarding marketing research and marketing information systems?
marketing research develops and analyzes new information about a market in single-project instances whereas marketing information systems gate, access and analyze market information on a continual basis
Which of the following not one of the five steps in the marketing research process?
write a research propsal
What should a marking researcher do during a situation analysis
study what information is already available
Which of the following statements best characterizes primary data as opposed to secondary data
it is date collected specifically to solve a current problem
What is the advantage of qualitative research as composed to quantitative research?
it provides in depth responses
Why should secondary data be used rather than primary data, whenever possible, to satisfy marketing research objectives?
I. Using data already collected is usually more cost-effective than collecting it yourself.
II. Secondary data is more credible because it is often available from multiple sources.
III. Secondary data is more credible because its collection is usually independent of the firm in question.
Which of the following is true concerning focus group interviews used in marketing research
Research conclusions will vary because all those who watch the interview from their own impressions of what happened in the group discussion
A marketing researcher wants to do a survey to probe in-depth consumer attitudes about their experiences with the company’s products. He is least likely to get what he wants by using which of the following?
Which of the following best exemplifies “stratified sampling” versus random or geographic sampling?
A bank segments its current customers into age groups and then randomly surveys 1,000 customers within each of those age-defined groups in order to find out which of its services each demographic finds the most useful.
Briefly describe both primary and secondary data and list three possible sources of each.
Primary data are new data gathered specifically for the project at hand. Collection of primary data should begin only once secondary data sources have been exhausted. Methods of acquiring primary data include observation, surveys, interviews, and experiments.
Secondary data are available data already gathered for some other purpose that is applicable to the project at hand. Typically, secondary data can be gathered much faster and at far less expense than primary data. Some excellent sources of secondary data are internal firm records, various federal government agencies, firm Web sites, private research firms, universities, business publications, and libraries.
Briefly describe at least three ethical issues in marketing research as discussed in the textbook.
Privacy in data collection—This issue includes the question of at what point data collection becomes an invasion of privacy. Anonymity should be maintained whenever possible.
Privacy in data use—In the routine process of doing business, firms often gather a lot of information about their customers or clients. This information contains material that must be kept confidential in order to assure privacy is maintained.
Intrusiveness—A major problem for marketers is that gathering information can be annoying and inconvenient for the respondent. Therefore, companies must determine at what point requesting information becomes intrusive.
Deceptive implementation—Falsely representing oneself to obtain information can be considered unethical. In most cases these deceptions are harmless, but they should be avoided.
False representation—Attempting to earn or raise money under the guise of research is, unfortunately, fairly common and negatively affects those who legitimately try to gain respondents’ cooperation.
What is Sales Orientation?
To sell what is already made or is being made. New day orientation
efficient production of their products with no input from customers. Product will sell itself