MRKT 5000 Mid Term Study Guide – Flashcards
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is defined as a social and managerial process by which individuals and organizations obtain what they need and want through creating and exchanging value with others.
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Marketing
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The first step in the marketing process is ____
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understanding the marketplace and customer needs and wants
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are states of felt deprivation.
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Needs
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are human needs as shaped by individual personality and culture.
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Wants
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When backed by buying power, wants become ____
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demands
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Abel now has the buying power to purchase the computer that he wanted for the last six months. Abel's want has now become a(n)
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demand
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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 _
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production concept
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According to the product concept, a company should ____
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devote its energy to making continuous product improvements
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The selling concept holds that _
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consumers will not buy enough of the firm's products unless the firm undertakes a large-scale selling and promotion HIIRUW
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Which of the following reflects the marketing concept philosophy?
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We don't have a marketing department, we have a customer department.
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The concept holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do.
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marketing
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The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction is called
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customer relationship management
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Sally purchased the newly launched "Jolie" lotion. By attempting to find out if the lotion's perceived performance matches her expectations, Sally was measuring her level of customer ____
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satisfaction
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Which of the following is true of strategic planning in a firm?
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Strategic planning deals with adapting the firm to take advantage of opportunities in its changing environment.
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Which of the following is true of company mission statements?
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Mission statements should be defined in terms of satisfying customer needs.
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Which of the following best describes a company's business portfolio?
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the collection of businesses and products that make up the company
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Nathan is conducting a portfolio analysis for his company. Which of the following activities would this involve?
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evaluating the attractiveness of an SBU's market and the strength of its position in the market
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Which of the following criteria does the Boston Consulting Group approach use to provide a measure of market attractiveness?
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market growth rate
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Which of the following criteria does the Boston Consulting Group approach use to provide a measure of the company's strength in the market?
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relative market share
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In the BCG growth-share matrix, stars refer to ____
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products with a high market share in a market with a high growth rate
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In the BCG growth-share matrix, question marks refer to ____
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products with a low relative market share in a market with high growth prospects
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In the BCG matrix, refer to low-growth, high share businesses or products. They generate a lot of cash that the firm uses to pay its bills and support other SBUs that need investment.
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cash cows
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Omni Healthcare's analgesic drug Cetaprin has a 40% share in the analgesics market in Terrania. Its closest competitor, Febex, has a 25% share in the market, while three other drugs split the remainder. Which of the following would most indicate that Cetaprin would be classified as a cash cow according to the BCG matrix?
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The demand for analgesic drugs in the Terranian market is expected to remain stable.
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Omni Healthcare's analgesic drug Cetaprin has a 40% share in the analgesics market in Terrania. Its closest competitor, Febex, has a 25% share in the market, while three other drugs split the remainder. Which of the following would most indicate that Cetaprin would be classified as a star according to the BCG matrix?
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The Terranian market for healthcare products is expanding rapidly.
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When divesting a particular strategic business unit, a company (GE AND HOME APPLIANCES
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sells off or phases out the strategic business unit
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Which of the following is considered to be a part of the marketing microenvironment of a firm?
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the suppliers of the company
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Large societal forces like demographic, economic, natural, technological, political, and cultural forces that affect the microenvironment are considered to be part of the of an organization.
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macroenvironment
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Which of the following would be a component of a company's marketing microenvironment?
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a just-in-time inventory system followed by the company when making purchase decisions
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The dimension of citizen-action publics is most likely to include ____
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consumer organizations and environmental groups
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Dextora Technologies manufactures microprocessors and caters exclusively to companies that produce high-end computers. Which of the following types of markets does Dextora target in this scenario?
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business markets
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Which of the following is true of the baby boomer generation?
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They are the wealthiest generation in U.S. history.
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Secure is a financial services and insurance company that has grown substantially since the recession hit. Recently, Secure started a range of new insurance and savings plans for customers that target customers belonging to different sections of the American population. The Secure Future plan started by the company provides greatest benefits for consumers who want long-term savings so they can remain financially independent in the later years of their life. It provides insurance on their homes, covers all health expenses for them and their spouses, and also has tie-ups with travel and tour agencies to provide cheaper holiday options for people who were too busy to travel in their employment years. The marketing team of Secure has most likely targeted the Secure Future plan at the ____
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baby boomers
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Which of the following would be considered a factor of the company's marketing economic environment?
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Consumer spending patterns
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Which of the following is a characteristic of the Millennials with regard to mass marketing?
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They like to seek out product information and engage in two-way brand conversations.
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Which of the following is true of the U.S. age demographics?
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The Generation Xers are the most educated section of the population.
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Which of the following has resulted from the increased educational levels of the U.S. population?
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increased job growth for professional workers
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In a marketer's macroenvironment, the consists of laws, government agencies, and pressure groups that influence or limit various organizations and individuals in a given society.
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political environment
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The ____ of 1890 prohibits monopolies and activities that restrain trade or competition in interstate commerce.
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Sherman Antitrust Act
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Which of the following is true of the Clayton Act?
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It supplements the Sherman Act by prohibiting certain types of price discrimination, exclusive dealing, and tying clauses.
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The empowers the FTC to establish limits on quantity discounts, forbid some brokerage allowances, and prohibit promotional allowances except when made available on proportionately equal terms.
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Robinson-Patman Act
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Which of the following demonstrates the real value of a company's marketing research and information system?
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the quality of customer insights it provides
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A marketing infom1ation system begins with the step of
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assessing the information the company needs
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Which of the following is true with regard to a good MIS?
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It consists of people and procedures dedicated to the assessment and generation of customer insights.
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Haley Computers is one of the world's largest producers of computers. Being the market leader, the company spends a substantial amount of time and energy in innovating its computers and staying ahead of its competitors. In its efforts to do so, Haley Computers has appointed some key employees with the task of scanning online customer conversations on feedback pages of sites, social networking sites, and other online platforms. They communicate their findings to the marketing department so that they can make the right decisions and meet current consumer needs. These employees are likely to be _
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working as listening officers at Haley Computers for capturing consumer insights
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Which of the following is an example of a free online database that a company could access in order to develop marketing intelligence?
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U.S. Security and Exchange Commission's database
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is the systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization.
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Marketing research
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What is the first step in the marketing research process?
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defining the problem and research objectives
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The marketing manager at Appeal has constituted a cross-functional team to study the consumer trends in the cosmetic industry. The team has come up with two dominant trends: a preference for cruelty-free cosmetics and for organic cosmetics. To study these preferences further, the team has to convert them into operational concepts and break them down to smaller research questions. This cross-functional team is at the stage of ____ in the marketing research process.
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defining the problem and research objectives
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The objective of___research is to gather preliminary information that will help define the problem and suggest hypotheses.
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exploratory
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Coolers has come up with the product idea of a new soft-drink that will have the lowest calorie count among all the competing products in this range. Which of the following types of research should Coolers use to identify the demographic group that would be their target market for this product?
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descriptive research
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data consist of information collected for the specific purpose at hand.
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Primary
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Secondary data consists of information
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that already exists somewhere but was collected for another purpose
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Which of the following is the characteristic that distinguishes consumer buying from business buying?
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whether or not the products are bought for personal consumption
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refers to the practice of including ethnic themes within a company's mainstream marketing.
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Multicultural marketing
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Which statement is true regarding social class in the United States?
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Social classes show distinct product preferences in clothing and automobiles.
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The comprise the working poor whose living standard is just above poverty but they strive toward a higher class.
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upper lowers
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A shoe company uses ads featuring the members of a country music band knowing that the band's fans will see the members wearing the company's shoes and will want to wear the same shoes. In this case, the band is a(n for its fans.
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reference group
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are people within a reference group who, because of special skills, knowledge, personality, or other characteristics. exert influence on others.
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Opinion leaders
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What type of marketing refers to marketing that involves enlisting or even creating opinion leaders to serve as brand ambassadors who spread the word about a company's products?
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buzz marketing
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Facebook and Twitter are examples of ____
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social networks
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Which of the following Web sites is a message board?
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Craigslist
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Which of the following is a psychographic characteristic of a consumer?
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lifestyle
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A customer's lifestyle can be measured using the AIO dimensions. What does AIO stand for?
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Activities, Interests, Opinions
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Which of the following is an esteem need according to Maslow's hierarchy of needs?
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status
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Which of the following would fulfill a safety need according to Maslow's hierarchy of needs?
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a life insurance policy
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is the process of evaluating each market segment's attractiveness and selecting one or more segments to enter.
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Market segmentation
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Procter & Gamble selected the Millennials, a demographic that includes college students, as an untapped group of potential customers for their Febreze line of products. Which step of designing a customer-driven marketing strategy process are they executing?
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targeting
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consists of arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.
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Positioning
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Which of the following is the right order of the four steps to design a customer-driven marketing strategy?
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market segmentation, targeting, differentiation, and positioning
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Your firm has decided to localize its products and services to meet local market demands. A good approach to use would be segmentation.
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geographic
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Demographic variables are the most popular bases for segmenting customer groups because they ____
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are easier to measure
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When Burger King targets children, teens, adults, and seniors with different ads and media, it is practicing ____ segmentation.
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age and life-cycle
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Mass marketers, such as Target and Venture Stores, often ignore market segment differences and target the whole market with one offer. What is their approach to segmentation?
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undifferentiated marketing
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marketing tailors brands and promotions to the needs and wants of specific cities, neighborhoods, and even stores.
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Local
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A company or store gains a(n by differentiating its products and delivering more value.
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competitive advantage
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are a form of product that consists of activities, benefits, or satisfactions offered for sale that are essential! y intangible.
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Services
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Which of the following is a pure tangible good?
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shampoo
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Which of the following would be considered part of the augmented product rather than the actual product or core customer value?
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warranty
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____Products are consumer products and services that customers usually buy frequently, immediately, and with minimal comparison and buying effort.
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Convenience
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A laundry detergent is most likely to be an example of a(n product.
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convenience
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Which of the following is most likely to be an example of a convenience product?
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candy
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products are less frequently purchased consumer products and services that customers compare carefully on suitability, quality, price, and style.
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Shopping
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____ products are those products that are purchased for further processing or for use in conducting a business.
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Industrial
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The use of commercial marketing concepts and tools in programs designed to influence individuals' behavior to improve their well-being and that of their community is called marketing.
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social
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A(n is defined as a name, term, sign, symbol, or design, or a combination of these, that identifies the maker or seller of a product or service.
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brand
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Which of the following terms best describes the process of designing and producing the container or wrapper for a product?
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packaging
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Which of the following terms best describes a group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges?
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product line
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A company lengthening its product line by adding low-end products is an example of product line
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stretching
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What are the two ways in which a company can obtain new products?
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new-product development and acquisition
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Which of the following statements is true with regard to the new-product development process?
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The first stage in this process involves a systematic search for new-product ideas.
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New-product development starts with the step of____
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idea generation
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Through , broad communities of people (customers, employees, independent scientists and researchers, and even the public at large are invited into the new-product innovation process.
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crowdsourcing
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The R-W-W framework is used in the second step of the new-product development process which involves
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idea screening
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A is the way consumers perceive an actual or potential product.
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product image
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Immediately after concept testing, a firm would engage in the ____ stage.
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marketing strategy development
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A review of the sales, costs, and profit projections for a new product to find out whether they satisfy the company's objectives is called a ____
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business analysis
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Once the product or service passes the business analysis test, it moves into the ____ stage.
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product development
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In the stage of new-product development, products undergo rigorous tests to make sure that they perform safely and effectively or that consumers will find value in them.
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product development
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In which stage of the PLC will promotional expenditures be especially high in an attempt to create consumer awareness of the product and its features?
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introduction
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Some companies are now appointing ____ whose job is to protect consumers from harm and the company from liability by proactively ferreting out potential product problems.
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product stewards
