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Marketing final

Terms in this set (85)

the American Marketing Association definition of marketing includes:
marketing is the exchange that takes place between sellers and buyers
marketing creates, communicates and delivers value
marketing satisfies customer needs and wants at a profit
the path to profitability starts with
executing clever advertising campaigns using digital media
for every pair of Toms shoes purchased, the company donates a pair of shoes to a child in need. which marketing philosophy does Toms use?
Societal
The decisions marketing managers make regarding the marketing budget and profitability revolve around the marketing mix which includes:
product, promotion, price, place
"How do I come up with a killer product idea?"
Ask, "What are the problems people are trying to solve?"
Skullcandy, a $300 million headphones and audio accessories business located in Park City, Utah, recognized a growing trend in the purchase and use of digital audio devices--MP3 players. The company created a unique line of headphones, earbuds, and docks to capitalize on this growing business. This is an example of which part of the SWOT analysis?
Opportunity
Malibu Boats, specialize in the production of recreational water sports boats, primarily for wake boarding and wake surfing. What type of income is used to purchase expensive boats and accessories offered by Malibu Boats?
Discretionary income
Malee is a marketing manager for a new line of Thai food. The company wants to launch this new line in Scandinavia--Denmark, Norway, Sweden, Finland, and Iceland. Malee knows that social forces affect consumers' attitudes, beliefs, lifestyle, and ultimately consumption behavior. Which social force has the most influence on Malee's new product line--affecting what people eat?
Culture
Axel, a research analyst for LEGO, has been gathering information about age, gender, and income for Southeast Asia, particularly Indonesia, Thailand, Singapore, Malaysia and Philippines. Axel is gathering _________ data:
Demographic
In the United States, people born during the same time period and who share similar life experiences are referred to as:
generational cohorts
in 2011, Unilver launched the Magnum ice cream brand in the United States and Canada. the launching decision was based on careful examination of the market attractiveness criteria. What are the criteria for evaluating the attractiveness of particular foreign markets?
customer needs
customer purchasing power
market size
market growth rate
market access
Coca-Cola soft drink produced in Mexico is believed to taste sweeter than Coca-Cola soft drink made in the United States. Ice cream flavored Pepsi is sold only in Russia. McDonald's offers red bean ice cream and green tea in China, but not int the United States. These are an example of:
customization
Brita GmbH, a German manufacturer of water filters, agreed to sell the right to manufacture and market products under the Brita name in the United States to The Clorox Company. To do this, Brita GmbH entered into a(n) _________ agreement with The Clorox Company.
licensing
Which global market entry strategy has the lowest risk and also the lowest return?
exporting
the overall attractiveness of a foreign market depends on the risks and rewards of conducting business in the country of interest. Demonstrations, strikes, civil strife, abrupt government changes, violence, and terrorism in a number of countries has caused some U.S. companies to avoid certain foreign markets because of what risk
political
marketers are expected to embrace the highest professional ethical norms and ethical values. Accordingly, the AMA stresses the following norms:
do no harm
foster trust in the marketing system
embrace ethical values
kirsten is under a lot of stress at home. she needs money to pay off several credit cards and medical bills. she is convinced that she will pay back any embezzled money quickly. according to the fraud triangle, which aspect is missing from this potentially unethical situation?
opportunity
Lying about product benefits is illegal. Government agencies protect consumers from firms making false statements. Further, the free market (or the invisible hand of consumer feedback) in today's digital and social media world may be the best protection of all. Which myth of unethical marketing do these actions counter?
marketing is deceptive, not truthful and honest
for marketers, the three components of sustainability are:
consumers' wants, the company's requirements, and society's long-term
To establish successful long-term brands and businesses, marketing managers must abide by ethical and socially responsible standards. This is particularly important in the current marketing environment because today's consumers:
demand transparency and honesty
structured data and unstructured data are two types of Big Data. Structured data come in defined, organized format that is readily accessible and relatively was to extract information. Conversely, unstructured data are available in an amorphous format, requiring some sort of treatment to make the data useable. Example(s) of unstructured data include:
written reviews — free form
text messages
YouTube videos
most marketing research projects center around two types of information—exploratory and conclusive. BLANK research enables managers to look for cause-and-effect relationships, such as the impact of sales promotion on product purchases. BLANK research helps marketing managers obtain overall impressions of the marketing priorities, formulates alternative ideas for moving forward
conclusive, exploratory
sampling error is the probability that differences in averages or percentages are due to the random chance of drawing a bad sample rather than some real differences. Market researchers can minimize sampling error by:
increasing the sample size
marketing research provides insights into consumer behavior—what consumers want, the hurdles that keep them from getting what they want, and what the organization can do to get consumers over these hurdles. the ultimate goal of marketing research is to:
make good marketing decisions
Marketing hypotheses are direct statements of beliefs that can be tested with statistics. For example, McDonald's marketing managers may hypothesize that offering all-day breakfast will increase overall sales and profitability. Hypothesis testing:
makes research more conclusive and gives organization more confidence when acting on research recommendations
Although marketing analytics are used to answer a variety of managerial questions, chief marketing officers claim the biggest applications for marketing analytics are:
customer acquisition and retention
for big data analytics, the process of cleaning, unifying, and preparing unstructured data for easy access and analysis is called
data wrangling (or data munging)
elise's brand management team, at raising cane's chicken fingers is seeking to identify data related to human behavior in order to identify consumer insights for the fast-food restaurant. What is a consumer insight?
the capacity to gain an accurate and deep intuitive understanding of a consumer
suppose your manager at Netflix provides you with a data set of survey responses from content platform users and asks you to identify market segments based on the data. Which analytical method is most useful for this research project—classifying content platform users into various segments based on how they respond to demographic and behavioral questions
cuter analysis
general mills produces more than 25 varieties of ready-to-eat breakfast cereals including cheerios, lucky charms, wheaties, and Cinnamon Toast Crunch. suppose a retail store offers to stock ten of General Mills cereal products in each store across the country. which marketing research technique would you recommend General Mills use to determine the optimal variety of cereals to stock in each store?
TURF analysis
A marketing insight is a deep understanding of consumer attitudes and beliefs that has power to shape consumer behavior. Marketing insights have limitations however because:
people often make different choices based on different situations
people are not all the same
upon graduation, Donovan decides to use part of his signing bonus to put a down payment on a new compact SUV. Donovan spends significant time and effort evaluating four different brands—Nissan Rogue, Jeep Compass, Ford Escape and Toyota RAV4. in his evaluation, he considers potential financial, social, and physical risks. For Donocan, purchasing a new compact SUV is what type of purchase decision?
High involvement
in the consumer behavior process, problem recognition is caused by:
a discrepancy between a person's current state and desired state
studies conducted by market research companies Yankelovich and Media Dynamics suggest that consumers are exposed to 2,500 to 5,000 advertising messages a day. Yet, they notice only 12-20. The process consumers use to notice and pay attention to stimuli that are immediately useful and screen out stimuli perceived as less useful is:
selective attention
in the buying center for B2B purchase decisions, participants assume one or more roles—buyer, influencer, decider, gatekeeper, and user. Which role controls the flow of information between the selling firm and the buying firm?
gatekeeper
Which basis for segmentation divides the market based on differences in core benefits customers seek and usage situations?
behavioral segmentation
Burton (snowboarding company) will launch the newest step on bindings on October 8,2021. "Ditch the straps and get right to riding with fresh colors and styles" Local retailers anticipate the launch of the newest step on bindings with great excitement because they believe the segment is large enough to deliver profits. Which characteristic of effective segmentation is illustrated with this example?
substantial
marketing managers use segmentation, targeting, and positioning to identify new opportunities. These are three distinct activities. Positioning is:
developing a unique selling proposition for the targeted groups
Perceptual maps show the judgments customers make regarding the performance of a brand's features and benefits. Gap analysis extends the perceptual maps method by asking customers to make judgments regarding:
the importance of a brand's features and benefits to the buying decision
why doesn't "me too" positioning work as a value positioning strategy?
the positioning approach does not give consumers a reason to change
to be successful, a product must have a competitive angle. a product's competitive angle defines the severity of the problem and the quality of the solution the product provides compared to the competition. a competitive angle:
is unique or different than current offerings in the market
makes a positive personal connections with consumers
lifts consumers over a hurdle (reduce pain or increase fun) that other competitors fail to do
Products travel through life cycles starting with introduction stage and finishing with maturity stage. In which stage of the product life cycle do marketing managers seek to build product awareness and consumer experience?
introduction
the most critical stage of the new product development process is the concept testing stage because:
this is the first time the idea is tested with potential customers
Net Promoter Score (NPS) enables businesses to measure progress of their brand. NPS is the difference between
the percentage of brand promoters and the percentage of brand detractors
in his book Brand Leadership, brand strategist David Aaker claims that brands should:
resonate with customers
differentiate from competitors
motivate employees
al services have a human element. By their very nature, humans can deliver inconsistent levels of service. Accordingly, service providers seek to deliver consistent quality from the first customer to the last across all business situations. Which unique characteristic of services is represented by this discription
variability
Amtrak in Denver faces the service challenge of perishability because the company cannot save seats from the 8:05 am train to SLC for the 7:10 pm train to Kansas City. What can Amtrak do to address this service challenge?
manage fluctuating demand or match supply with changing demand
Today, many firms focus on the customer journey where they map every customer and business touchpoint, within every channel, to create world-class customer experiences. An important point along the customer journey is the "moment of truth" where the "promise for results" is realized. Which part of the Services Marketing Triangle is illustrated by this?
interactive marketing activities
research on marketing services identifies five determinants of service quality— reliability, assurance, tangibles, empathy, and responsiveness. Assurance includes:
competence, courtesy, credibility, and security
research suggests that satisfied frontline employees lead to satisfied customers. Nurses represent the frontline in health care. The working situation for nurses may affect job satisfaction. indeed, a recent study of medicare reimbursements found a much higher job dissatisfaction and burnout among nurses who were
caring for patients in hospitals and nursing homes
to the buyer, price represents the money paid, or the economic sacrifice, to acquire the product. to the seller, price is the money received, or the revenue. Buyers have incentive to purchase and sellers have incentive to sell when the price is
above the sellers cost of good sold
below the buyers perceived value
which pricing strategy is used when marketers set a relatively high price to obtain the high margins at the expense of sales quantity
price skimming
unit contribution is:
unit price minus unit variable cost
break-even analysis provides a useful method for examining the relationship between price, cost, revenue, and profit and various levels of sales. at the break-even point:
total revenue equals total cost
there are no profits
there are no losses
reference price is an important concept in pricing strategy. BLANK is what consumers think they should pay for the product, given their past experience and the buying situation, and BLANK is what everyone else is paying for the product
internal reference price; external reference price
Marketing managers use elements of the promotion mix to communicate value to consumers by:
informing them about the benefits of the product
persuading them to try or continue using the product
reminding them of the product benefits
Frito-Lay, a Pepsi company, promotes its salty snacks—LAy's, Doritos, ruffles, Funyuns, Fritos, sun chips, Tostitos, Cheetos, and maui style potato chips—directly to final consumers to increase demand at retail. this is an example of
Pull strategy
Advertising seeks to achieve one or more objectives—cognitive, affective, and behavioral. The behavioral objective seeks to:
stimulate action
advertising effectiveness is measured by:
recall (remember the ad and the advertiser) and persuasion (remember the benefit)
which sales promotion method is best for products that are consumed faster when greater quantities are available?
price promotions
social media marketing may be more effective than traditional marketing communications channels because social media:
offers greater flexibility of content and duration
has credibility similar to word-of-mouth
can build awareness and interest at a much lower cost
what is the key driver in engaging and converting potential customers using social media
relevant content
each social network platform has unique strengths. which platform is best for product demonstrations and tutorials
YouTube
a sketch or composite picture of the ideal customer who buys or may buy from the firm's products is known as a(n)
buyer persona
when firms track and analyze their social media data, they find insights into
demographics and psychographics of buyers
best time to engage buyers in social media
most effective social network platforms for reach and impact
content that works best for a given audience
extensive, data-driven research that the primary determinants of B2B salesperson performance are:
role perceptions, skills, motivation, and aptitude
expectancy model of motivation includes expectancies, instrumentalities, and valence. The expectancies part of the model answers the questions
how many competitors in the category?
suppose you are a sales manager for Qualtrics. One of your salespeople is struggling with the presentation step of the sales process. As you coach this salesperson, you begin by explaining that the purpose of the "presentation" step of the sales process is to:
match the benefits of your product offering to the customers needs
today's salespeople face high informed customers and unprecedented pressure to sell more and sell faster. To boost performance, sales organizations rely on technology and sales tools. combined, these technologies and sales productivity tools are called
the sales technology stack
In order for a sales team to achieve the full potential, modern day sales organizations assign specialized roles to increase efficiency and production of their sales teams. For example, ________________________ are farmers, with the sole responsibility of increasing customer loyalty and retention through additional services so that customers continue to use and expand a firm's product and service offerings.
customer success or client development reps
the Hershey company is one of the largest chocolate manufacturers in the world. The company markets a number of chocolate packaged candies, such as Hershey's chocolate bar, almond joy, Reeses cups, and Kit Kat. These convenient products are generally good candidates for
intensive distribution
marketing channels enable companies to create value for their chosen customers through four utilities: time, place, form, and possession. marketers increase place utility for their customers by:
making the product available at a convenient location
IKEA consciously designs retail space to orchestrate various dimensions of the store—layout, color, sounds, and signage—to appeal to consumers emotions and encourage buying. this is called:
atmospherics
channel members can provide added-value activities for customers such as inventory management, promotion, payment terms, credit, delivery, installation, training, technical support, repair, consulting, and warranty. For example, IBM trains salespeople in the financial services sector to become experts in particular areas of finance. IBM's added value, in the form of consulting activities for finance customers is an example of
service benefits
Proctor and Gamble was the first company to focus attention on winning the first moment of truth—the first three to seven seconds it takes shoppers to make up their minds about considering, comparing, and/or selecting a product from the retailers shelves. To do this, P&G marketing managers focus on
in-store advertising and packaging
the popularity of the iPhone makes possible the success of iPhone apps, shields, and headphones. this is an example of finding new ideas by
riding a wave of interest
Entrepreneurs face a David and Goliath competitive landscape. To have a fighting chance, entrepreneurs need to:
embrace constraints and find a unique way to compete
Measuring the WOW Factor is a useful approach for testing new ideas. The Six Thinking Hats framework provides a useful process for drilling down on the WOW Factor because the results:
ideas for improving the new idea
startups must find ways to accelerate time-to-money. a bottom-up mindset:
focuses on making the most of what the company has
goes where the money is
quickly pivots the competitive angle in a way that makes competitors irrelevant
transforms a winning marketing tactic into a long-term successful business strategy
Everyone uses hangers. They have been around for more than 100 years. Joy Mangano thought about how many hangers people use and asked how she could make one better. Her solution is Huggable Hangers, a no-slip, color-coded, space-saving, velvet-flocked hangar. Joy found this idea by:
building on a core product
one of the first American companies to leverage the power of the Love Fest is Harley Davidson. A Love Fest enables Harley Davidson to:
create opportunities for best customers to "share the love" they have for the products and services
let their customers sell for them
some entrepreneurs are so focused on building a better product that they do not spend enough effort on
selling it
DuPont Stainmaster is an example of one of the best product demonstrations in recent history. Consumers walking into carpet stores were led by retailers to a kiosk where they could soak light-colored swatches of Stainmaster carpet in their favorite stains, then wash out the stain completely in seconds using a simple solution of soap and water. The Stainmaster in-store example spotlighted the following important elements of effective demonstrations that increase product adoption:
relative advantage
compatibility
complexity
trialability
obersvability
when the Harry Potter books were first released, many bookstores across the globe held midnight release parties. Fans of the series gathered together in costumers to celebrate the new books. which launching technique did Harry Potter books use?
marketing events
A popular cookware store hosts a cookie contest every November featuring their popular mixer. Targeted customers (home bakers and cookie lovers) share recipes and cooking tips. The popular mixer takes center stage in a beautiful, up-to-date kitchen. Prizes are awarded and all customers receive a sample Christmas cookie. This marketing event does all of the following EXCEPT:
connecting the event to a local cause
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