How can we help?

You can also find more resources in our Help Center.

Marketing Midterm

STUDY
PLAY
Marketers should look beyond the attributes of the products and services they sell to also
create brand experiences for customers.
Is it cheaper for a company to aquire new customers than to maintain relationships with current customers?
No, it is more expensive.
Consumer-generated marketing, wheteher invited by marketers or not, has become
a significant marketing force.
The customers evaluation of the perceived difference between all the benefits and all the costs of a marketing offer relative to those of competing offers is what?
customer-perceived value
The production concept and product concet are
orientations that can lead to marketing myopia
Are marketing offers limited to just physical products?
No
New communication technologies create ________________ as well as ________________ for marketers.
*challenges
*advantages
The societal marketing concept calls on marketers to balance what?
*consumer wants and desires
*company profits
*society's interests
Large scale marketing approaches that foster two-way customer relationships are made possible how?
by new communication technologies
The twofold goal of marketing is to attract new customers by
promising new superior value and to keep and grow current customers by delivering satisfaction.
What are the four P's that make up a companies marketing mix?
*Product
*Price
*Place
*Promotion
Human needs are:
states of felt deprivation
What is the difference between human needs and wants?
needs are not influenced by marketers
Both _________ and ___________ of products, services, and ideas practice marketing.
*buyers
*sellers
Who is in charge of classifing customers according to potential profitability and managing the relationship accordingly?
The company
What are the four classifications for customers potential profitability?
*strangers
*butterfiles
*true friends
*barnacles
If your customer is a stranger, what is the potential profit and projected loyalty?
low potential profitability and little projected loyality.
If your customer is a butterfly, what is the potential profit and projected loyalty?
potentially profilable but not loyal.
If your customer is a true friend, what is the potential profit and projected loyalty?
both potentially profitable and loyal.
If your customer is a barnale, what is the potential profit and projected loyalty?
Highly loyal but not very profitable
What is the fit for between the company's offerings and a "stranger's" needs?
no fit. don't invest in this customer
What is the fit for between the company's offerings and a "butterfly's" needs?
good fit, however, only lasts for a short time, then they're gone. Invest for the moment, but let them go.
What is the fit for between the company's offerings and a "true friends" needs?
strong fit. continuously invest.
What is the fit for between the company's offerings and a "barnacles" needs?
limited fit.
A stock market investor who trades shares often and in large amounts but who enjoys hunting out the best deals without building a regular relationship with any single brokerage company is an example of what type of customer?
Butterfly
A small bank customer who banks regularly but doesn't generate enough returns to cover the costs of maintaining their account, is what type of customer?
Barnacle
What is the most problematic customer?
Barnacle
Marketing management is the art and science of choosing what?
target markets and building profitable relationships with them.
The selling concept holds that consumers will not buy enough of the firm's products unless, what?
it undertakes a large-scale selling and promotion effort.
What is shaped by culture and individual personality?
Human wants
What are the two important questions underlying marketing strategies?
*who is our target market?
*what's our value proposition?
Marketing is
managing profitable customer relationships?
Is marketing synonymous with selling and advertising?
No
Human _______ are states of felt deprivation.
Needs
What is the basic part of the human makeup?
Needs
When back by buying power, wants become what?
Demands
_______ is the act of obtaining a desired object from someone by offerinig something in return.
Exchange
When marketers are so taken with their products that they focus only on the existing wants of the customers and lose sight of underlying customer needs, what is happening?
Marketing myopia
A modern marketing system includes what?
suppliers-->company-->marketing intermediaries-->consumers
suppliers-->competitors-->marketing intermediaries-->consumers
the consumers can go back into suppliers or company
Trying to reduce demand in short term is what?
demarketing
Why would marketers use demarketing?
Marketors have limited resources. Some markets are simply more profitable based on size and demand.
What is the starting point, focus, means, and ends of the selling concept?
*factory
*existing products
*selling and promoting
*profits through sales volume
What is the starting point, focus, means, and ends of the marketing concept?
*market
*customer needs
*integrated marketing
*profits through customer satisfaction
During customers-perceived value, costs _________ and benefits __________.
*decrease
*increase
Which customers are short term customers?
*butterflies
*strangers
Which customers are long term customers?
*true friends
*barnacles
What is the second layer of the marketing process?
*product
*price
*promotion
*place
What is the third level of the marketing process?
*marketing analysis
*marketing planning
*marketing implementation
*marketing control
What is the fourth level of the marketing process?
*suppliers
*marketing intermediaries
*publics
*competitors
What is the fifth level of the marketing process?
*Demographic-economic environment
*Technological-nature environment
*Social-culture environment
*Political-legal environment
What is a fit between marketing oportunities and organizational goals and capabilities?
Strategic planning
What are the four peices of the Boston Consulting Group Approach?
*Star
*Question mark
*Cash cow
*Dog
Which two pieces of the Boston Consulting Group Approach generate a high market growth rate?
*Star
*question mark
Which two pieces of the Boston Consulting Group Approach generate a low market growth rate?
*Cash cow
*Dog
Which two pieces of the Boston Consulting Group Approach generate a high relative market share?
*star
*cash cow
Which two pieces of the Boston Consulting Group Approach generate a low relative market share?
*question mark
*dog
What are the three pieces of a customer driven marketing strategy?
*Segmentation
*Targeting
*Positioning
Dividing a market is what?
market segmentation
Occupy a niche in consumer's mind vis-à-vis competition is what?
Positioning
Members of the _______________ help marketers build relationships with customers.
microenvironment
Age, gender, race, location, occupation, are all what?
Demography
Baby boomers are years?
1946-1964
Generation X are years?
1965-1976
Generation Y are years?
1977-2000
What is the basis for creating customer value relationships?
having a fresh understanding of customers from customer insights
What are the three ways of defining problems and research objectives?
*exploratory or qualitative
*descriptive or survey
*casual or expiraments
Define the problem and suggest research are qualities of what?
exploratory or qualitative
Describes things is what?
discriptive or survey
Cause and effect relationships are what?
Casual or expiraments
The objective of ____________ is to gather preliminary information that will help define the problem and suggest hypotheses.
exploratory research
The objective of __________ is to describe things, such as the market potential for a product or the demographics and attitudes of consumers who buy the product.
descriptive research
The objective of _________ is to test hypotheses about cause and effect relationships.
causal research
Information that already exists somewhere, having been collected for another purpose is what?
Secondary Data
Information collected for the specific purpose at hand
Primary Data
The central question for marketers is what?
How do consumers respond to various marketing efforts the company might use?
A motive is a need that is
sufficiently pressing to direct the person to seek satisfaction of the need
From bottom to top, what are the 5 levels of Maslow's Hierarchy of needs?
*Physiological needs
*Safety needs
*Socail needs
*Esteem needs
*Self-actualization needs
What are the 4 management functions?
*Analysis
*Planning
*Implementation
*Control
What are the 5 steps to the buyer decision process?
*need recognition
*information search
*evaluation of alternatives
*purchase decision
*postpurchase behavior
What is the Buyer Decision Process for New Products Stages in the adoption process?
*Awareness
*Interest
*Evaluation
*Trial
*Adoption
What are the 4 major segmentation variables?
*geographic
*demographic
*psychographic
*behavioral
f
...
Which of the following best describes the role of a product steward?
to protect consumers from harm and to protect the company from liability by identifying and solving potential product problems
Explain how the PLC applies differently to a product class than to a product form.
Product classes have longer life cycles, while product forms tend to have the standard PLC shape
Companies rarely solicit ideas from customers during the idea generation stage of product development (t/f)
False
Introducing a new product into the market is called___
commercialization
A detailed version of a new idea stated in meaningful customer terms is called a
product concept
Which of the following CANNOT be described using the PLC concept?
product image
the second part of the marketing strategy statement outlines the product's planning price, distribution, and ___ for the first year.
marketing budget
The team-based new-product development approach uses cross-functional teams that overlap the steps in the process to achieve which of the following goals?
save time and increase effectiveness
Although test marketing costs can be high, they are often small when compared with____.
the costs of a major mistake
Which of the following costs is most likely associated with the commercialization stage of new-product development?
building or renting a manufacturing facility
After concept testing, a firm would engage in which stage in developing and marketing a new product?
marketing strategy development
Bonneville Communications is concerned about test marketing its new device. Which of the following is NOT a disadvantage of test marketing that would likely concern Bonneville Communications?
People who are surveyed tend to tell less than the truth
New product development starts with____?
idea generation
Top management can install a(n)___ to direct the flow of new-product ideas to a central point where they can be collected, reviewed, and evaluated.
innovation management system
JoAnn Fabrics, Inc, has just created a new combination of colors and fabric types. The firm wants to be sure of the way consumers perceive its new product. The firm is concerned with the product____.
image
According to your text, which of the following is perhaps the most important external source of new-product ideas?
customers
In the concept testing stage of new-product development, a product concept in_____ form is presented to groups of target consumers/
physical or symbolic
Marketers can prolong the lives of many products in the maturity or decline stage of the PLC, sometimes even moving these products back into the growth stage. How can this happen?
Marketers can change any element of the marketing mix, change the number of uses or the number of users, or even change the frequency of the product use
using the PLC concept to develop marketing strategy can be difficult because strategy is both a ____ and a(n) ____ of the product's life cycle.
cause; result
The maturity stage of the PLC is characterized by a slowdown in sales growth. t/f
True
Some products that have entered the decline stage have been cycled back to the growth stage through____.
repositioning
Using the PLC concept to develop marketing strategy can be problematic because strategy is both a cause and a result of the products life cycle. T/F
TRUE
Using the R-W-W new-product screening framework, marketers first ask "Is It real?" Explain
The question "Is it real?" leads marketers to investigate whether there is a real need and desire for the new product, and whether customers will buy it. The question also leads marketers to determine if there is a clear product concept and if that product will satisfy the market
Wainwright Industries will build a new prototype riding lawnmower especially for women. In the product development stage, Joe Wainwright and his staff will incorporate the functional features and convey the ____.
intended psychological characteristics
What is the advantage of using a concrete and physical presentation of the product concept in the concept testing stage of new-product development?
A physical presentation of the concept instead of a symbolic presentation such as words or pictures, generally elicits more reliable feedback from consumers during the concept test
Which stage in the PLC normally last longer and poses strong challenges to the marketing managers?
maturity
Which of the following is a disadvantage of a team-based approach to new-product development?
Organizational confusion and tension can affect the process
When kraft focused on cost-cutting with its older and established brands, leaving them without much investment or modification, Kraft had decided to___ the older products.
harvest
Once managers of The Grecian Urn have decided on their product concept and marketing strategy, they can evaluation the business attractiveness of the proposal in the ___ stage of the new-product development process.
business analysis
Explain the importance of the role of timing in the commercialization stage.
Introduction timing is critical so that a product launch does not take attention away from existing successful products.
An attractive idea must be developed into a ____
product concept
Carrying a weak product during the decline stage of the PLC can be very costly to a firm, and not just in profit terms. Which one of these is NOT likely to be one of those costs?
few customers concern about company image
When sales of a product falter during the PLC, a company can take several approaches. The more common ones are to modify the marketing mix, modify the product, or modify the market T/F
TRUE
Profits rise during the growth stage of the PLC because promotion costs are spread over a large volume and unit manufacturing costs fall. T/F
TRUE
Under what circumstances might it be wise for a company to do little or not test marketing?
when the costs of developing and introducing the product are low
Sequential product development has the advantage of not only being a team-oriented approach, but also of being faster in bringing products to markets T/F
False
In order to get their new products to market more quickly, many companies are adopting a faster, team-oriented approach called____
team-based new-product development
General Electrics campaigning stating, "We bring good things to life" is an example of_____.
corporate image marketing
For a fee, some companies_____ names or symbols previously created by other manufacturers, name of well-known celebrities, and/or characters from popular movies and books, any of which can provide an instant and proven brand name.
license
To differentiate themselves, many companies go beyond offering products and services; they are also developing and delivering customers____.
experiences
______are consumers products and services with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort.
Specialty products
Product support service identify the product or brand, describe several things about the product, and promote the product through attractive graphics. T/F
False
How might a flower shop engage in line stretching?
A flower shop may offer single-stem, fresh-cut flowers that are sold individually, small arrangements, bouquets, or large ceremonial sprays; with line stretching, the flower ship will offer a wide array of products geared toward all types of flower buyers.
Product planners must design the actual product and also find ways to ____ it is order to create the bundle of benefits that will create the most customer value.
augment
A company can stretch its product either upward or downward, but not both directions. T/F
False
A_____ is defined as anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need.
product
A company might stretch its product line upward to add prestige to its current products. T/F
True
A key element in a company's relationship with consumers, a ____ represents consumers' perceptions and feelings about a product and its performance
brand
Which of the following is NOT a desirable quality for a brand name?
The name should be a long word to get attention
All of the following are methods for developing a differentiated service delivery EXCEPT which one?
developing symbols and branding
An alternative to product line stretching is_____, adding more items within the present range of the line.
product line filling
Services are characterized by four key characteristics.Name and describe these four characteristics.
The four service characteristics are intangibility, inseparability, variability, and perishability. Services are intangible: they cannot be seen, tasted, felt, heard, or smelled before they are bought. Services are inseparable: they are produced and consumed at the same time and cannot be separated from their providers, whether the providers are people or machines. Services are variable: their quality may vary greatly, depending on who provides them and when, where, and how they are provided. Services are perishable: they cannot be stored for later sale or use.
Sony offers consumers more than just camcorders; it provides consumers with a complete solution to their picture-taking problems. This offering is called an augmented product. T/F
True
________ are a form of product that consists of activities, benefits, or satisfactions offered for sale that are essentially intangible and do not result in the ownership of anything.
Services
Gina's Nail Salon is serious about pleasing its customers. Employees are trained to immediately and pleasantly respond to any customer complaints, and they are empowered to offer discounts and free add-ons to customers who believe they have received anything less than the best service. Gina's Nail Salon focuses on ________.
good service recovery
Co-branding is a form of product sponsorship that consists of activities, benefits, or satisfactions offered for sale that are essentially intangible and do not result in the ownership of anything.
T/F
FAlse
A hickory rocking chair, handmade by an Amish woodcarver in northern Indiana from locally grown wood, is an example of a(n) ________.
specialty product
The Ad Council of America has developed dozens of ________ marketing campaigns, including classics such as "Smokey the Bear," "Keep America Beautiful," and "Only You Can Prevent Forest Fires."
social
When a company lengthens its product line beyond its current range, it is ________.
product line stretching
Chicken of the Sea brand tuna sells more than the same size Kroger brand tuna, even though the Kroger tuna costs $0.15 less per can. Chicken of the Sea has high brand ________.
equity
One aspect of managing service differentiation is the company's service delivery. T/F
TRUE
Compare product mix width, length, consistency, and depth.
Product mix width refers to the number of different product lines the company carries; product length refers to the total number of products carried in a company's product lines. Consistency refers to how closely related the various product lines are in end use. Product depth refers to the number of versions offered of each product in the line.
A(n) ________ is a name, term, sign, symbol, design, or a combination of these, that identifies that maker or seller of a product or service.
brand
Which strategy involves weeding out weaker brands and focusing marketing dollars only on brands that can achieve the number-one or number-two market share positions in their categories?
megabrand
An apparel marketer is planning to launch an existing brand name into a new product category. Which brand development strategy is being implemented?
brand extension
How can service providers use a differentiated offer, delivery, and image to avoid competing solely on price?
A service offer can include innovative features that differentiate the company's offers from competitors. Service delivery can be differentiated by hiring and training more reliable customer-contact people, developing a superior physical environment in which the service is delivered, and designing a superior delivery process. Services can also be differentiated through symbols and branding, creating an image that sets a company's services apart from competitors.
Consider a massage. What service characteristics definitely define the massage as a service?
Intangibility, variability, inseparability, and perishability all define the massage as a service.
________ is an approach in which all the company's people are involved in constantly improving the products, services, and business processes.
Total quality management
The fundamental asset underlying brand equity is ________-the value of the customer relationships that the brand creates. A powerful brand is important, but what it really represents is a set of loyal consumers.
customer equity
In assessing which new features to add to a product, a company must weigh each feature's ________ to customers versus its ________ to the company.
value; cost
Products and services fall into two broad classifications based on the types of consumers that use them. Which of the following is one of these broad classes?
industrial products
Which group determines a product's position relative to competing products?
consumers
Explain how market variability impacts the choice of a target-marketing strategy.
If most buyers have the same tastes, buy the same amounts, and react the same way to marketing efforts, undifferentiated marketing may be appropriate, for example.
The majority of U.S.-based companies have developed the resources and the will to operate in multiple foreign countries. T/F
False
Because Cruise Ships International currently has limited financial and personnel resources, it should avoid concentrated or niche marketing until resources are again substantial. T/F
FALSE
User status segmentation involves finding the major advantages or features people look for in the product class, the kinds of people who look for each advantage or feature, and the major brands that deliver each advantage or feature. T/F
FALSE
Shampoo marketers rate buyers as light, medium, or heavy product users. This is ________ segmentation.
usage rate
When the size, purchasing power, and profiles of a market segment can be determined, it possesses the requirement of being ________.
measurable
Not every brand difference is worth establishing and promoting. A difference is worth promoting to the extent that it satisfies all of the criteria EXCEPT which one?
divisible
Which type of differentiation is used to gain competitive advantage through the way a firm designs its distribution coverage, expertise, and performance?
channel differentiation
Which type of statement first states the product's membership in a category and then shows its point-of-difference from other members of the category?
positioning statement
Which of the following is the narrowest strategy?`
local marketing
Marketers of automobiles, financial services, and travel are most likely to use which of the following types of segmentation?
income
Which type of segmentation centers on the use of the word when, such as when consumers get the idea to buy, when they actually make their purchase, or when they use the purchased item?
occasion
Superior Auto Sales, a chain of high-end used car dealerships, wants to sum up its company positioning and brand positioning in a formal way. Superior's management would use a ________.
positioning statement
What is one way in which a marketer can attract nonloyal consumers?
Marketers can attract nonloyal consumers by putting the brand on sale or by altering price.
Although more price-conscious than other segments,______ consumers tend to be strongly motivated by quality and selection. Brands are important. They enjoy shopping and are more fashion conscious than other ethnic groups.
African Americans
The term ___refers to qualitative research to probe consumers' hidden, subconscious motivations.
motivation research
What is one major assumption made by marketers who choose to use an undifferentiated marketing strategy?
Such marketers assume that all consumers share something in common, regardless of how different the consumers may be.
Explain the concept of positioning for competitive advantage.
A product's position is the way the product is defined by consumers on important attributes-the place the product occupies in consumers' minds relative to competing products. Positioning involves implanting the brand's unique benefits and differentiation in customers' minds. To carry out effective positioning, a company must identify a set of possible competitive advantages upon which to build a position, choose the right competitive advantages, and select an overall positioning strategy. The company must then effectively communicate and deliver the chosen position to the market.
A company or market offer can be differentiated along the lines of product, image, services, channels, or ________.
people
Which of the following is NOT a drawback of local marketing?
Supporting technologies are not cost-effective.
When competitors use differentiated or concentrated marketing, ________ marketing can be disastrous.
undifferentiated
You have just created the "perfect" ad. It communicates the full mix of benefits upon which the brand is differentiated and positioned. This full positioning of the brand is called ________.
its value proposition
When might be the best time for a marketer to use geographic segmentation?
Geographic segmentation may be especially profitable when consumers in different regions, states, counties, and so forth share distinct buying behaviors and product or service preferences.
After purchasing the product, the consumer will be satisfied or dissatisfied and will engage in postpurchase behavior. T/F
TRUE
________ describes changes in an individual's behavior arising from experience.
Learning
Each person's distinct personality influences his or her buying behavior. Personality is usually described in terms of traits. What are these traits, and how do they affect the way people purchase items? Give at least one example.
Personality is described in terms of traits such as self-confidence, dominance, sociability, autonomy, defensiveness, adaptability, and aggressiveness. Personality can be useful in analyzing behavior for certain products. Consumers are likely to choose brands with personalities that match their own. For example, someone with a sophisticated personality might be attracted to a more sophisticated product, such as a BMW, while someone with a more rugged personality might be attracted to a more rugged product, such as a Jeep.
Alternative evaluation is the process by which people select, organize, and interpret information to form a meaningful picture of the world. t/f
false
________ is a person's pattern of living as expressed in his or her psychographics, including his or her activities, interests, and opinions.
Lifestyle
Explain why selective distortion is somewhat controllable by a marketer.
Marketers can attempt to understand consumers' mindsets and how their mindsets will affect perceptions of advertisements.
Which of the following statements about buying centers is true?
The buying center may involve informal participants who are not obvious to sellers.
Maslow's theory is that human needs--including physiological, safety, social needs, esteem, and self-actualization needs--are arranged in a hierarchy and that an unsatisfied need motivates an individual to take action to satisfy it. T/F
TRUE
A(n) ________ is a person's relatively consistent evaluations, feelings, and tendencies toward an object or idea.
attitude
When comparing the lifestyles of all the consumer segments attracted to The Attic Trunk, what might each segment have in common with the other segments?
Each segment may share similar psychographics: activities, interests, and opinions (AIOs).
Which statement is true regarding social class in the United States?
Answer
Social classes show distinct product preferences in clothing and automobiles.
Members of the early majority are deliberate; although they rarely are leaders, they adopt new ideas before the average person. T/F
TRUE
Large business purchasers usually call for detailed product specifications, written purchase orders, careful supplier searches, and formal approval. These are all examples of how the business buying decision process is more ________ than the consumer buying decision process is.
formalized
Almost all major purchases result in cognitive dissonance, or discomfort caused by postpurchase conflict. T/F
TRUE
It is most accurate to say that marketers are always trying to spot ________ in order to discover new products that might be wanted.
Cultural shifts
A person's buying choices are influenced by four major psychological factors. Which is NOT one of these factors?
alternative evaluation
A customer's lifestyle can be measured using the AIO dimensions. What does AIO stand for?
Activities, Interests, Opinions
When a consumer learns about a new product for the first time and makes a decision to try it, the consumer is engaged in the alternative evaluation process. T/F
False
You call in a department manager to assist in a purchase of industrial equipment. You are considering a change in product specifications, terms, and possibly suppliers. This is most likely a ________ situation.
modified rebuy
One set of business purchases is made for each set of consumer purchases. T/F
False
Almost all major purchases result in ________, or discomfort caused by postpurchase conflict.
cognitive dissonance
Consumers learn about new products for the first time and make the decision to buy them during the ________.
adoption process
Many subcultures make up important market segments. Examples of four such important subculture groups include Hispanics, African Americans, Asian Americans, and mature consumers. Describe several characteristics that would interest marketers about each of these groups.
Hispanic consumers tend to buy more branded, higher-quality products-generics do not sell well to Hispanics. Perhaps more important, Hispanics are very brand loyal, and they favor companies who show special interest in them. African American consumers are more price-conscious than other segments; they are also strongly motivated by quality and selection. African Americans seem to enjoy shopping more than other ethnic groups and are also more fashion conscious. Asian American consumers are the most affluent U.S. demographic segment and are the second-fastest-growing population subculture, after Hispanics. Asian American consumers are very tech-savvy and are the most brand conscious of all the ethnic groups. Mature consumers are better off financially than are younger consumer groups. They are a strong market for travel, restaurants, entertainment, leisure goods and services, financial services, and healthcare services.
A marketing information system (MIS) consists of people and procedures to assess information needs, ________, and help decision makers analyze and use the information
develop the needed information
Interpretation of market research data should be the responsibility of the researchers, not the marketing managers. T/ F
FALSE
Give an example of a closed-end question.
Closed-end questions force respondents to answer from a limited number of options. Examples include: What is your gender? Do you prefer McDonald's to Burger King? Do you like spinach?
Which of the steps in the marketing research process has been left out of the following list: defining the problems and research objectives, implementing the research plan, and interpreting and reporting the findings?
developing the research plan
Which of the following statements regarding marketing intelligence is true?
Marketing intelligence is publicly available information.
Why is it important for the statement of the problem and the research objectives to guide the entire research process?
The specific nature of the problem and the research objectives determine which type of research, contact methods, sampling plans, and instruments should be used; without a focus of a specific problem and objectives, the marketing research process would not result in relevant data.
Because of the scarcity of good secondary data, international researchers often must collect their own primary data. An initial problem with this collection is developing good ________.
samples
Explain why exploratory research, descriptive research, or causal research would be most useful for determining whether shoppers in the Midwest are more sensitive to a price increase for laundry soap than shoppers on the East Coast are.
Causal research would be most important because it investigates cause-and-effect relationships; causal research would allow the researcher to test a hypothesis about price sensitivity and compare the differences in the two geographic regions.
Neuromarketing techniques provide easy-to-interpret data that allow researchers to analyze consumer involvement with products. T/F
FALSE
Your colleague is confused about using the marketing research process, as he knows that something is wrong but is not sure of the specific causes to investigate. He seems to be having problems with ________, which is often the hardest step to take.
defining the problem and research objectives
Marialba Hooper is conducting marketing research for a company that is investigating the possibility of entering multiple international markets. As Marialba plans her research in 30 different countries, upon which of the following is she LEAST likely to rely?
free secondary data
Marketing information from which type of database usually can be accessed more quickly and cheaply than other information sources?
internal
Focus group interviewing has become one of the major marketing research tools for getting insight into consumer thoughts and feelings. However, if the sample size is small, a researcher would be most concerned about which of the following?
generalizing from the results
ABC Interior Designs wants to collect research data through mechanical instruments. The three typical methods are video cameras, checkout scanners, and Internet surveys. T/F
FALSE
You want to find out whether Americans between 21 and 40 years of age tend to vote Democratic and whether Americans between 41 and 70 tend to vote Republican. You will most likely use a ________ to collect your data.
stratified random sample
Questionnaires are the most common research instrument T/F
TRUE
________ is the systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization.
Marketing research
Typically, customer information is buried deep in separate databases, plans, and records of many different company functions and departments. To overcome such problems, which of the following should you try?
customer relationship management
Ethnographic research ________.
is gathered where people live and work
An effective MIS assesses information needs, develops needed information, and distributes the information to help managers use it in decision making. T/f
TrUE
You want to determine whether no-smoking policies have affected employee morale in the United States in the past two decades. Are any secondary data likely available? Why?
Yes, there are likely to be several studies conducted from which the researcher could extract information because many companies have implemented no-smoking policies in the past 20 years.
What is a major drawback of probability sampling?
It can be time consuming
Causal research is used to ________.
test hypotheses about cause-and-effect relationships
Good sources of marketing intelligence information include competitors' annual reports, business publications, trade show exhibits, press releases, advertisements, and Web pages. T/F
TRUE
Patti Lovelace is making a presentation to the owners of her company. She is trying to convince them to conduct some current marketing research. Which of the following would she be LEAST likely to emphasize as a benefit or selling point of marketing research?
measuring the effectiveness of pricing and accounting
After a research instrument is selected, the next step in the marketing research process is ________.
implementing the research plan
Sales have dropped at XYZ Corporation. Give two specific pieces of information for which the company's marketing researcher might call.
The researcher will likely want to find out whether the number of competitors has increased and/or whether current competitors have changed their marketing strategies.
Ideally, a sample should be representative so that the researcher can make accurate estimates of the thoughts and behaviors of the larger population. T/F
TRUE
Briefly explain the following statement: "Too much information can be as harmful as too little."
Too much information may prohibit marketers from clearly applying the data/information to their objectives, while excess information may lead marketers to lose sight of their objectives.
What are the two main types of research instruments used to collect primary data?
questionnaires and mechanical devices
Survey research is least likely to be conducted through which of the following?
Observation
Malaya Ramirez is organizing marketing research in Central American countries for a large American corporation that is interested in expanding its market. The survey Malaya is using was written in English and then translated into Spanish for use by Spanish-speaking respondents. Which of the following is it most important for Malaya to do before administering this questionnaire to a sample of the market?
have the questionnaire translated back into English to check for accuracy
A marketing information system (MIS) consists of people and procedures to assess information needs, ________, and help decision makers analyze and use the information.
develop the needed information
What is the first step in the marketing research process?
defining the problem and research objectives
The real value of marketing research and information lies not in quantity but in the customer insights provided. T/F
TRUE
The objective of ________ research is to gather preliminary information that will help define the problem and suggest hypotheses.
exploratory
ABC Company has decided to use mail questionnaires to collect data. Management recognizes this method has all the following advantages EXCEPT which one?
has an average response rate
A researcher is collecting data in an airport. Why might a sample be most appropriate?
People in an airport are often in a hurry; not everyone will want to participate in providing data. Therefore, the researcher may be satisfied with collecting data from whoever is willing to provide it.
Experimental research is best suited for gathering ________ information.
casual
What are the two main types of research instruments used to collect primary data?
questionnaires and mechanical devices
Which form of data below can usually be obtained more quickly and at a lower cost than the others?
secondary
What source of marketing information provides those within the company ready access to research information, stored reports, shared work documents, contact information for employees and other stakeholders, and more?
an intranet
For a small business manager deciding where to relocate within the city, relevant research will LEAST likely include ________.
options for repackaging the company's products
Marialba Hooper is conducting marketing research for a company that is investigating the possibility of entering multiple international markets. As Marialba plans her research in 30 different countries, upon which of the following is she LEAST likely to rely?
free secondary data
The best approach for researchers to take to guard consumer privacy includes all of the following EXCEPT which one?
Sell the information only when it is financially worthwhile.
Too much marketing information can be as harmful as too little. T/F
TRUE
ABC Company has decided to use mail questionnaires to collect data. Management recognizes this method has all the following advantages EXCEPT which one?
has an average response rate
How would you design the sample to determine whether retired people drink more coffee at McDonald's during lunch than they do during dinner? Explain.
The sample must include respondents based on work status. From there, the researcher can select a random sample from among the retired respondents.
Information collected from online databases on the Internet is an example of ________ data.
secondary
When managers use small convenience samples such as asking customers what they think or inviting a small group out to lunch to get reactions, they are using ________.
informal surveys
You want to find out whether Americans between 21 and 40 years of age tend to vote Democratic and whether Americans between 41 and 70 tend to vote Republican. You will most likely use a ________ to collect your data.
stratified random sample
Focus groups use no interviewer to bias the answers, may produce more honest answers, and can be used to collect large amounts of data at a low cost per respondent. T/F
FALSE
Which method could a marketing researcher use to obtain information that people are unwilling or unable to provide?
observational research
Marketing researchers usually draw conclusions about large groups of consumers by studying a small ________ of the total consumer population.
sample
Which of the following contact methods is generally the least flexible?
mail questionnaires
It costs about the same to conduct individual personal interviews and telephone interviews. T/F
TRUE
When do marketers need marketing research?
Marketing research becomes important when marketing intelligence cannot provide the detailed information needed for a specific situation.
You have decided to run for a local political office. You want to hand-deliver campaign materials in person to the homes of voters. Explain how marketing intelligence plays a role in this scenario.
You must have a system for knowing where the voters live; merely knocking on every door would be inefficient. You need a list of registered voters and their addresses from which you can plan your visits.
Through which of these sources of information is a competitor least likely to reveal intelligence information?
internal marketing meetings
Despite the data glut that marketing managers receive, they frequently complain that they lack ________.
enough information of the right kind
You have decided to use only closed-end questions on your survey. Which of the following questions would NOT be found on your survey?
What do you like about your teacher?
Why is it difficult to obtain relevant and reliable secondary data when conducting international marketing research?
Unlike the United States, many countries have no or almost no research services; in addition, most international research services operate in only a handful of countries.
You want to find out whether Americans between 21 and 40 years of age tend to vote Democratic and whether Americans between 41 and 70 tend to vote Republican. You will most likely use a ________ to collect your data.
stratified random sample
Ideally, a sample should be representative so that the researcher can make accurate estimates of the thoughts and behaviors of the larger population. T/F
TRUE
A researcher who wants to calculate confidence limits for sampling error would use nonprobability samples. T/F
FALSE
Describe the basic marketing research process.
The marketing research process involves four steps: defining the problem and research objectives, developing the plan, implementing the plan, and interpreting and reporting the findings. Managers must know what is wrong in defining the problem. Research objectives may be reached through exploratory, descriptive, or causal research. Next, the information needed is identified and a plan for gathering and presenting is made. Then, secondary and primary data must be collected to compile and analyze. Finally, the important information must be presented to management for decision making.
The availability of which of the following is most problematic in international marketing research?
secondary data
Which of the following statements regarding marketing intelligence is true?
Marketing intelligence is publicly available information
Which form of data below can usually be obtained more quickly and at a lower cost than the others?
secondary
Secondary data consists of information ________.
that already exists somewhere but was collected for another purpose
Which of the following is NOT a disadvantage of telephone interviews?
Interviewers may explain or probe more deeply on some questions.
Patti Lovelace is making a presentation to the owners of her company. She is trying to convince them to conduct some current marketing research. Which of the following would she be LEAST likely to emphasize as a benefit or selling point of marketing research?
measuring the effectiveness of pricing and accounting
What are the two main types of research instruments used to collect primary data?
questionnaires and mechanical devices
Why is it important for a research plan to be presented as a written proposal?
A research plan typically involves many components such as objectives, information to be obtained, how results will be used, and costs; a written proposal decreases the likelihood of confusion over any one of these components. This is particularly important when several people are involved in a large or complex research project.
Which type of research would be best suited for identifying which demographic groups prefer diet soft drinks and why they have this preference?
descriptive research
What is the first step in the marketing research process?
defining the problem and research objectives
According to your text, what are two current major public policy and ethical issues in marketing research?
intrusions on consumer privacy and misuse of research findings
Compare and contrast closed-end questions and open-end questions for gathering data.
Closed-end questions, which include all possible answers, make it easier for respondents to choose among relevant answers. They are also easier for the researcher to interpret and tabulate. Open-end questions allow respondents to answer in their own words and as such do not limit their choices. Open-end questions are more difficult to interpret and tabulate, but they are particularly useful in exploratory research.
Marketing research is the systematic design, collection, analysis, and reporting of data directly relevant to a specific marketing situation facing an organization. T/F
TRUE
Which of the following is true of ethnographic research?
It provides fresher and better insight into customer behavior than traditional approaches do.
Explain why exploratory research, descriptive research, or causal research would be most useful for determining whether shoppers in the Midwest are more sensitive to a price increase for laundry soap than shoppers on the East Coast are.
Causal research would be most important because it investigates cause-and-effect relationships; causal research would allow the researcher to test a hypothesis about price sensitivity and compare the differences in the two geographic regions.
The best approach for researchers to take to guard consumer privacy includes all of the following EXCEPT which one?
Sell the information only when it is financially worthwhile.
Consumer organizations such as environmental and minority groups that may question a company's marketing decisions are referred to as local publics. T/F
FALSE
Trudie Jones works for a distribution channel firm that helps several electronics companies find customers or make sales to them. Trudie works for a reseller. T/F
TRUE
The macroenvironment consists of the factors close to the company that affect its ability to service its customers, such as suppliers, customer markets, competitors, and publics. T/F
FALSE
A company or association's ________ is designed to help guide responses to complex social responsibility issues.
code of ethics
Ernst Engel's laws generally have been supported by recent studies. He discovered that as family income rises, the percentage spent on ________ declines and the percentage spent on ________ remains about constant.
food;housing
Members of which type of market buy goods and services for further processing or for use in the production process?
business
How might geographic shifts in population impact marketers?
People in different regions buy differently. If tastes and preferences are taken with consumers as they disperse geographically at increasing rates, predicting specific consumption patterns in certain geographic areas may become difficult over time.
In the cultural environment, core values and beliefs and secondary values and beliefs differ in that core values and beliefs are more open to change. T/F
false
Jack Weiss recently won a $10 million lottery. Jack's life will change a great deal, particularly how he spends money. According to Engel's laws, Jack is LEAST likely to change the percentage of his income that he spends on which of the following?
housing
Diversity in America is increasing, and successful marketers are increasingly diversifying their marketing programs to appeal to different segments of the population. T/F
TRUE
An increasing number of American workers work out of their homes with technological conveniences such as PCs, high-speed Internet access, and fax machines. These workers are referred to as the ________ market.
SOHO
Recent shifts in where people live have led to shifts in where people work. T/F
TRUE
Marketers should be aware of laws, government agencies, and pressure groups that influence or limit various organizations and individuals in a given society. This is the ________ environment.
political
Explain the impact of the baby boomers, Generation X, and Millennials on today's marketing strategies.
The baby boomers earn more than half of all personal income. They are attracted to high-priced cars, health and fitness, and other luxuries. Generation Xers carry a more cautious outlook and are less materialistic than baby boomers. Millennials are children of the baby boomers. They are highly computer literate and are more responsive to two-way brand conversations than to traditional marketing approaches. The demands of these population groups set marketing trends.
Cause-related marketing is a slowing trend as companies have abused the practice, using it more to increase sales than to support worthwhile causes. T/F
FALSE
Marketing research firms, advertising agencies, media firms, and marketing consulting firms are all referred to as marketing services agencies. T/F
TRUE
Which of the following combinations of expenses use up most household income?
food, housing, transportation
When a company hires lobbyists to influence legislation affecting its industry, it is taking a reactive approach to the marketing environment. T/F
FALSE
Marketers must increasingly consider the needs of traditional households because this segment of the population is growing more rapidly than nontraditional households. T/F
FALSE
The recent rash of business scandals and increased concerns about the environment have created fresh interest in the issues of ________ and ________.
ethics; social responsibility
Which of the following statements about income distribution in the United States is NOT true?
In recent decades, the middle class has grown.
Which of the following demographic trends is likely the most responsible for the increasing number of people who telecommute?
the migration toward micropolitan and suburban areas
Briefly explain why Americans amassed record amounts of debt in the 1990s and why the free-spending trend has ended.
Americans purchased beyond their means because of high expectations for future economic growth based on a boom in the stock market and rapid increases in home values; those expectations were dashed by the recent economic recession.
ING, an international insurance and financial services company, is the primary sponsor of the annual New York City Marathon, which is attended by over one million fans and watched by approximately 300 million viewers worldwide. The ING logo and name appear throughout the race course. ING most likely sponsors the event in order to appeal to which type of public?
general
The demographic environment is of major interest to marketers because it involves people, and people make up markets. T/F
TRUE
Noora DeLange is helping her company develop a marketing program for a new product line. The program involves emphasizing experience over acquisition and uses a marketing pitch that is less overt than the company's previous programs. The marketing program is most likely designed to appeal to which of the following demographic groups?
Gen Xers
A society's basic values, perceptions, preferences, and behaviors are all part of its ________ environment.
cultural
The most important demographic trend in the United States is the ________.
changing age structure of the population
Which of the following is NOT an example of a public that is part of a company's marketing environment?
marketing department
A country with a(n) ________ economy has rich markets for many different kinds of goods.
industrial
Consumer organizations and environmental groups are examples of ________ publics.
citizen-action
LandPort Transportation and Omega Warehousing move and store the products your company sells. The two businesses are examples of ________.
physical distribution firms
Over the past 50 years, which of the following groups of workers has become smaller?
manufacturers
What are the major trends in today's natural environment? How do these trends affect companies?
The natural environment shows three major trends: shortages of certain raw materials, higher pollution levels, and more government intervention in natural resource management. Environmental concerns create marketing opportunities for alert companies. As concern about global warming and other environmental issues continues to grow, more and more consumers are demanding environmentally responsible products. Companies who heed these demands will benefit, as environmentally responsible actions are today linked with good business.
Value marketing is the strategy of offering consumers ________.`
reasonable quality at a fair price
Which demographic group is characterized by a total fluency and comfort with computer, digital, and Internet technology?
Millennials
Why have companies such as IBM and Levis targeted the lesbian, gay, bisexual and transgender community with specifically tailored marketing efforts?
The LGBT community has the potential to be a very profitable market for these companies and others; for example, the gay and lesbian market has the substantial buying power of $690 billion.
Which of the following American government agencies is charged with setting and enforcing pollution standards?
the Environmental Protection Agency (EPA)
Which of the following is the most commercially influential American demographic age group today?
baby boomers
At America Online, "we create customer connectivity, anytime, anywhere," is a product-oriented mission. t/f
FALSE
Mission statements should be realistic and general in nature. T/F
false
ABC Fortunes has just developed a formal statement of its purpose. This firm has put together a mission statement. T/F
TRUE
The first step in strategic planning is to ________.
define the company mission
_____________ calls for dividing the market into different geographical units such as nations, regions, states, counties, cities, or even neighborhoods.
Geographic segmentation
which factors are the most popular bases for segmetation?
Demographic
What are the 3 factors of Psychographic segmentation?
*Social class
*lifestyle
*personality
______________divides a market into segments based on consumer knowledge, attitudes, uses, or responses to a product.
Behavioral segmentation
what are the 5 factors in behavioral segmentation?
*occasions
*benefits sought
*user status
*usage rates
*loyality status
What are the five requirements of effective segmentation?
*measureable
*accessible
*sustainable
*Differentiable
*Actionable
_________is the use of commercial marketing concepts and tools in programs designed to influence individuals' behavior to improve their well-being and that of society.
Social marketing
_________consists of all the product lines and items that a particular seller offers for sale.
Product mix
What are the 4 areas of brand development?
*Line extention
*brand extention
*multibrands
*new brands
_________begins when the company finds and develops a new product idea. During ________, sales are zero and the company's investment costs mount.
Product development
________ is a period of slow sales growth as the product is introduced in the market. Profits are ___________in this stage because of the heavy expenses of product introduction.
*Introduction
*nonexistent
_______is a period of rapid market acceptance and increasing profits.
Growth
_______ is a period of slowdown in sales growth because the product has achieved acceptance by most potential buyers. Profits______ or _________ because of increased marketing outlays to defend the product against competition.
*Maturity
*level off
*decline
_________ is the period when sales fall off and profits drop.
Decline
Briefly explain why Americans amassed record amounts of debt in the 1990s and why the free-spending trend has ended.
Americans purchased beyond their means because of high expectations for future economic groth based on a boom in the stock market and rapid increase in home values; those expectation were dashed by the recent economic recession.
ING, an international insurance and financial service company, is the primary sponsor of the annual NYC MArathon, which is attended by over one million fans and watched by approximately 300 million viewers worldwide. The ING logo and name appear throughout the race course. ING most likely sponsors the event in order to appeal to which type of public?
general
The demographic environment is of major inter to marketers because it involves people, and people make up the markets. T/F
TRUE
Noora Delange is helping her company develop a marketing program for a new product line. The program involves emphasizing previous programs. The marketing program is most likely designed to appeal to which of the following demographic groups?
Gen Xers
A society's basic values, perceptions, preferences, and behaviors are all part of its___ environment.
cultural
The most important demographic trend in the US is the____
changing age structure of the population
Which of the following is NOT an example of a public that is part of a company's marketing environment?
marketing department
A country with a(n)____ economy has rich markets for many different kinds of goods.
industrial
Consumers organizations and environmental groups are examples of ___ publics.
citizen-action
LandPort Transportation and Omega Warehousing move and store the products your company sells. The two businesses are examples of_____.
physical distribution firms
Over the past 50 years, which of the following groups of workers has become smaller?
manufacturers
What are the major trends in today's natural environment? How do these trends affect companies?
The natural environment shows three major trends: shortage of certain raw materials, higher pollution levels, and more government intervention in natural resource management. Environmental concerns create marketing opportunities for alert companies. As concern about global warming and other environmental issues continues to grow, more and more consumers are demanding environmentally responsible products. Companies who heed these demands will benefit, as environmentally responsible actions are today linked with good business.
Value marketing is the strategy of offering consumers___.
reasonable quality at a fair price
Which demographic group is characterized by a total fluency and comfort with computers, digital, and Internet technology?
Millennials
Why have companies such as IBM and Levis targeted the lesbian, gay, bisexual, and transgender community with specifically tailored marketing efforts?
The LGBT community has the potential to be a very profitablt market for these companies and others; for example, the gay and lesbian market has the substantial buying power of $690 billion.
Which of the following AMerican government agencies is charged with setting and enforcing pollution standards?
The Environmental Protection Agency (EPA)
Which of the following most commercially influential American demographic age group today?
baby boomers
At American Online, "we creat customer connectivity, anytime, anywhere," is a product-oriented mission T/F
FALSE
Mission statements should be realistic and general in nature T/F
FALSE
ABC Fortunes has just developed a formal statement of its purpose. This firm has put together a mission statement. T/F
TRUE
The first step in strategic planning is to
define the company mission
Holiday Inn has divided the total customer market into smaller segments and selected the most promising segments. Deciding what position it wants to occupy in these segments is called targeting. T/F
FALSE
____ entails reducing the business portfolio by eliminating product that no longer fit the company's overall strategy.
Downsizing
Business portfolio planning involves two steps:____ and ____.
analyzing the current business portfolio; shaping the future business portfolio
Why are many marketers today using customer-centered measures of marketing ROI?
Companies are looking at marketing expenditures as investments in profitable customer relationships, with the goal of increasing individual customer lifetime values and overall customer equity.
Into what BCG quadrant does a high-share, high-growth SBU fall?
It falls into the "star" category.
Marketing planning is the task of selecting marketing strategies for each business, product, or brand in a company with the goal of helping the company attain its overall objectives. T/F
TRUE
Unlike strategic-planning efforts of the past, which were conducted primarily by senior managers, today's strategic planning is more_____.
decentralized
Multinationals like Honda Motor Co. and walmart stores have designed programs to work closely with their suppliers to help them reduce their costs and improve quality. This illustrates the importance of an efficient_______.
value-delivery network
Which of the following would NOT be a useful tool for determining marketing ROI?
SWOT analysis
_____ is the task of developing and maintaining an overall company strategy for long-run survival and growth.
Strategic planning
Which of the following does NOT accurately reflect a problem with the BCG matrix approach?
It focuses on future planning
The four marketing management functions are analysis, planning, implementation, and control. T/F
TRUE
Apples and Pineapple isolate the controls.
Peter Cramer is constantly involved in evaluating the results of marketing strategies and plans and taking corrective action to ensure that objectives are attained. Peter's current work is most accurately classified as__________.
marketing control
Jill Reno has researched new markets and has decided which segments to enter. Next she should decide what____ her company should occupy in those segments.
positon
The BCG growth-share matric classifies four types of SBUS. They are___,____,___ and ___.
stars;cash cows; question marks; dogs
According to the product/market expansion grid what strategy would a fast-food hamburger restaurant follow if it offered a salad bar option during lunch hours?
In this scenario, the restaurant would be following a product development strategy,
Mission statements should both fit the market environment and be motivating. T/F
TRUE
In the four P's of the marketing mix, promotion refers solely to advertising. T/F
FALSE
Ensuring that the company achieves the sales, profits, and other goals set out in its annual marketing plan is the purpose of _______.
operating controls
The collection of businesses and products that make up a company is called its____.
business portfolio
Monsanto operates in many businesses, including pharmaceuticals and food products. The company defines its ____ as creating "abundant food and a healthy environment."
mission
Which of the following is NOT a step in the marketing control process?
defining the mission
Into what quadrant of the product/market expansion grid would a "new and improved" product fall?
The "new and improved" product would fall into the product development quadrant.
When dealing with a _____, managers must decide whether to invest in it in an attempt to build it into a star or cash cow or whether to phase it out.
question mark
The four possible strategies that can be pursued for each SBU are building, holding, ____, and ___.
harvesting; divesting
____ involves looking at whether a company's basic strategies are well matched to its opportunities.
Strategic controls
Paul Pierce is busy working with other mangers evaluating the products and businesses making up their company. Paul is engaged in___.
portfolio analysis
A company should consider downsizing when products of an SBU no longer fits the company's overall strategy. T/F
True
Explain how a marketer of baking soda attempt to attract more than one market segment.
Some consumers buy baking soda as a baking ingredient and some consumers buy baking soda to use a deodorizer, for example. The marketer will focus on both distinct uses in the marketing mix, such as how the product is promoted.
Mission statements should be realistic and general in nature. T/F
False
Paul Pendergraff has identified a group of potential customers who seem to respond in a similar way to a series of magazine and radio advertisements for his company's product. Paul has identified a(n)_______.
market segment.
Revlon has clearly defined its "mission" of selling lifestyle and self-expression. In order for the firm to launch its strategic plan, the mission needs to be turned into detailed ________ that guide each level of the company.
supporting objectives
Give a situation in which the suggested strategy for a dog might NOT be to divest.
Consider a new technology that is being launched into a market. If managers of the dog are merely waiting to implement that new technology or to somehow incorporate it into the dog, moving the dog into a different BCG quadrant, divesting would not be practical.
In SWOT analysis, what is the difference between a weakness and a threat?
In SWOT analysis, weaknesses are internal factors that may interfere with a company's objectives, while threats are external factors that challenge the company.
One valid criticism of the four Ps concept is that services are not considered. T/F
FALSE
Delivering superior customer value and customer satisfaction are the two keys to building lasting customer relationships. T/F
TRUE
Shania works hard to foster an emotional relationship between her Internet customers and the beauty products and services that she and her staff sell. By promoting a company culture that values exceptional value and service, Shania aims to create ________ by going beyond the expected.
customer delight
All of the following are accurate descriptions of modern marketing today, EXCEPT which one?
Selling and advertising are synonymous with marketing.
Explain why a supermarket owner might consider customer lifetime value when a disgruntled customer leaves the store dissatisfied.
Customer lifetime value is the entire stream of purchases a customer would make over a lifetime. If a supermarket customer is dissatisfied and decides to shop for his or her weekly groceries elsewhere, the owner does not lose only the profit from one week's worth of groceries. Instead, the owner loses the possible profit of a week's worth of groceries for each and every week-up to a lifetime of weeks-the dissatisfied customer takes his or her business elsewhere.
Which customer question is answered by a company's value proposition?
"Why should I buy your brand rather than a competitor's?"
How is marketing being applied in the not-for-profit sector?
Firms in the not-for-profit sector may use marketing to enhance their images or to attract memberships and donors. Some organizations, such as government agencies, may design social marketing campaigns to encourage specific causes.
According to the simple five-step model of the marketing process, a company needs to ________ before designing a customer-driven marketing strategy.
understand the marketplace and customer needs and wants
Henry Ford's philosophy was to perfect the Model-T so that its cost could be reduced further for increased consumer affordability. This reflects the ________.
production concept
The societal marketing concept calls on marketers to balance consumer wants and desires, company profits, and society's interest. T/F
TRUE
How might a manufacturer of tents and camping equipment create brand experiences for consumers?
A manufacturer of camping equipment might produce tents, sleeping bags, cooking equipment, and other items that are integral to the camping experience. Then the manufacturer might market these products and related services, such as camping communities or an informational camping Web site, to satisfy the total camping needs of their customers.
A nineteenth-century street vendor in London sang, "Who will buy my fresh, red roses?" Did the vendor take an outside-in or inside-out perspective? Explain.
The vendor's approach was inside-out. The roses were picked and available, so they were an existing product. The vendor's job was then to attract willing buyers for this existing product rather than determine what his customers wanted and provide a product to satisfy that want.
A highly profitable, short-term customer is a ________.
butterfly
Which of the following best explains why consumers have greater power and control in today's marketplace?
Through new communication technologies, customers have more access to information and more methods of sharing their opinions with other customers.
When backed by buying power, wants become ________.
demands
Which of the following is a true statement about the economic crisis that began in 2008?
Disposable incomes decreased.