MKTG 301 Exam 1
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How does the new concept of marketing differ from the old concept of marketing?
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It focuses on the experience of the customer
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The act of obtaining a desired object from someone by offering something in return is know as?
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an exchange
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Which marketing philosophy holds that consumers will favor products that offer the most in quality, performance, and innovative features?
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product concept
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What is most likely to cause a variation in customer-perceived value?
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the customer's opinion of what constitutes
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The ultimate goal of the marketing process is to do which of the following?
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receive value from customers
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Julie's Jump Rope Emporium is a brand new company. From a marketing standpoint, What is the first thing the company needs to do?
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determine who in the community wants or needs a jump rope
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A local drama club wants to increase the membership and attendance at its performances. To do so, it hosts free shows, starts poetry reading nights and sends volunteers to the local high school. What is the drama club engaging in?
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market exchange
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Which of the following scenarios best describes the societal marketing concept?
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Edward's earthware attempts to make its pottery in a way that satisfies but is also environmentally friendly and sustainable over the long-term
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Bestram's Beer structures its company in such a way as to encourage its most profitable older customers to remain loyal while also targeting a new generation. What is the company attempting to build?
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customer equity
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What is the importance of selling and advertising in marketing?
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they work in tandem with developing good customer relations
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How do market demands relate to needs and wants?
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needs are satisfied by wants, and buying power converts wants into demand
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Why is good marketing management critical?
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to ensure that the company serves as many customers as it can and as well as it can
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Which of the following describes the current trend in businesses regarding relationships with customers?
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hand-pick the most profitable customers and allow them more input
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How has the Internet MOST affected companies and customers?
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the internet has allowed consumers to take marketing content and share it
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When a company engages in strategic planning, it must consider which of the following?
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how to take advantage of current business opportunities
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What is a business portfolio?
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a collection of businesses and products that make up a company
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A value chain consists of which of the following?
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The series of internal departments that carry out value creating activities
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The goal of marketing is to do which of the following?
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determine the best way to create value for customers and develop relationships with customers that profit the company
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A market dashboard is used to do which of the following?
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measure the return of investment for a marketing strategy
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A brand new hardware company is writing its mission statement. Which of the following is the best mission statement possible for the new company?
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We will help customers build, invigorate, restore, refurbish, or completely redesign their homes or businesses
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A company's best selling product was a portable CD player. However due to the ipods and MP3 players, sales have plummeted and are unlikely to rebound. Which is the best approach for the company to take?
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Liquidate the CD player division and use the funds to support new product
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A teacher tutoring company is known for awesome teaching and has done a good job that everyone knows that, but the company is losing customers. What should they do?
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examine its value delivery market
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A jean company is located in Washington and is starting to develop in surrounding states, but it only sells jeans. Which marketing organization would best suit them?
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market and customer organization
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How do company objectives and goals relate to the company mission statement?
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The goals and objectives outline the steps necessary to accomplish the company's mission statement
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The key to a company's success lies primarily in which of the following?
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The ability of the company to coordinate efforts effectively wthin the company and with other members of its supply chain to order and deliever products
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What is the purpose of the marketing mix, as a part of the overall marketing strategy?
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to elicit a response that influences a demand for the product from the customers that the company is targeting
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How do individual components of a SWOT analysis work together to determine the status of a company?
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by ascertaining a company's strengths, relating them to opportunities, minimizing weaknesses, and identifying threats to growth and development
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The role of a company's marketing intermediaries is to do which of the following?
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help the company find, promote, sell, and distribute products
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The group of economic factors that affect consumers' purchasing power and spending power is called which of the following?
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the economic environment
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Which is not a problem involving the natural environment that marketers need to consider?
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renewable resources
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The purpose of business legislation is primarily based on....
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protection
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The difference b/w a proactive and reactive stance to the marketing environment can best be described as which of the following
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passive versus active responses
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Cowboy Gear is having difficulty attaining the credit it needs to expand. Which of the following should the company do to alleviate financial struggle
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work out a plan with its financial intermediaries
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Which of the following best describes a duty that would fall under the EPA
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ensuring that pollution standards are met by a company
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Company is changing wedding services to gays, lesbians... Which environment must be carefully analyzed by the wedding company?
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cultural
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How does the microenvironment of a company differ from its microenvironment?
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The microenvironment deals with societal forces, and the microenvironment deals with creating value
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Overall, how has the American population changed over time?
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It has become more diverse, better educated and more mobile
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Which of the following identifies a change in the technological environment that could affect the success of a business?
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a company develops a new battery that lasts twice as long as it predecessor
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Which of the following is NOT a factor that makes it difficult for companies to adhere to legislation in the business environment?
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the shrinking number of laws currently in existence
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To be successful, why should companies try to adopt a proactive stance to marketing?
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a proactive stance allows a company to influence the market in its favor
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Which of the following best describes the purpose of the customer insights team?
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to gather and interpret info about customers and the market
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Which of the following is NOT likely to be used as an online database that can be accessed by a company to gain information about competitors?
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facebook
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Which of the following is NOT a step in the marketing research process
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comparing research findings to other studies
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What is CRM?
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a system of customer management
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All of the following can be considered problems with gather primary data for an international company except...
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unavailability of resources
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A company is attempting to gather info about its customers in order to improve its customer service. Which is the best place to start to develop an efficient MIS?
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assess the info needs of the company
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A company is conducting market research to find the best area to sell their product. They determined their questions and gathered their data. What is the next step for this company in their research plan?
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analyze the data and apply it to the marketing situation
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A power tool company wants to give its customers information about how best to use its product in creative ways. What should the company do to provide the customers with its info?
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a company extranet
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An international company has appointed a CPO in order to ensure that the privacy and confidentiality of the consumer data it collects. Which of the following is the CPO most likely to do as a function of his job?
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inform customers of the privacy of the company
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Having a good MIS is important because...
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it enables a company to use customer insights to improve relationships with customers
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Which of the following factors is most important to take into account when developing a good MIS?
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the usefulness of the information offered
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Why is it important for a company to collect both primary and secondary data when conducting marketing research?
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to have a full picture of the subject of their study
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What is the overarching goal of CRM?
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customer loyalty
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Which kind of company needs market research more?
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both large like proctor and gamble or small locals need market research
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What is Marketing?
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a social and managerial process involving managing profitable customer relationships. The company creates value for customers.
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Old way of making a sale?
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telling and selling
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New way of making a sale
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satisfying customer needs
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What is the Marketing Process?
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Understand customers and marketplace. Creating customer value. Capturing value and creating strong relationship.
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Market
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Set of all actual and potential buyers for a product or service
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Goal of Market Offering?
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To fullfil customer needs and wants
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Marketing Myopia
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the mistake of paying more attention to specific products than to benefits of those products. Losing sigh of underlying customer needs
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Brand Experience
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When customers immerse themselves in the experience other than the attributes of a product
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What is the problem with low customer expectations?
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It fails to lure customers
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What is the problem with high customer expectations?
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It can disappoint customers
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What is Market Management?
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Choosing target markets and building profitable relationships with these target markets
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Importance of Modern Marketing
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Each party in the system adds value for the next level suppliers -> company -> marketing intermediaries -> consumers
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Two questions for marketers
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What markets will you serve? How can you best serve these markets
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Customer-Managed Relationships
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Customers can reach the company and other customers
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The Selling Concept
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Only can sell when theres a large-scale selling promotion effort. Uses the make and sell model.
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The Marketing Concept
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Knowing the needs and wants of your target markets and delivering satisfaction better than your competitors do. Use the Sense and Response model
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Product Concept
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Quality, performance, and features in a product
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Production Concept
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Available and affordable products
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Societal marketing concept
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Customer's wants and long term interests, the company's requirements, and society's long-term interest
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Shared Value
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Recognizes societal needs not just economic needs
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The 4 P's of preparing an integrated marketing plan and program. (Market Mix)
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Price, Place, Promotion, Product
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Marketing Segmentation
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dividing the market into distinct groups of buyers who have different needs, characteristics, or behaviors
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Market Targeting
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Evaluating each market segment's attractiveness and selecting one or more markets to enter
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Positioning
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Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of the customer
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Marketing Analysis Steps
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Planning Implementation, Control.
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Customer Relationship Management (CRM)
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building and maintaining profitable customer relationships by delivering superior customer value and satisfaction
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Customer Value
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based on costs versus benefits
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Customer-perceived value
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Customer evaluation of the products benefits and costs compared to competitors
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Customer Satisfaction
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When a products perceived performance matches a customer's expectation
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Customer Delight
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Customers make repeated purchases and also become willing marketing partners
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4 components of customer satisfaction and relationships
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basic relationships, full partnership, frequency marketing programs, and club marketing programs
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Older customer compared to a acquiring a new customer
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It is 5 times cheaper to keep an old customer than acquire a new one
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Customer Equity
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the total combined customer lifetime values of all the company's customers, current and potential
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Strategic planning
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a fit between marketing opportunities and organizational goals and capabilities
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Mission Statement
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Statement of the organization's purpose identifies what the organization wants to accomplish in the larger environment
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Strategic business units (SBI's)
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Key businesses that make up the company
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What makes up the Growth-Share Matrix
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Stars, Cash Cows, Dogs, Question marks
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Stars
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high growth, high share. requires heavy investment to finacne fast growth
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Cash Cows
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Low growth, high share. established and successful. Needs less to investment, produces a lot of cash for the company.
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Question Marks
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high growth, low share. Requires a lot of cash to hold their share
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Dogs
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low growth, low share. may generate enough cash to stay afloat
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Market penetration
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company growth by increasing sales of current products to current market segmentation. No change in product
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Market Development
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growth by identifying and developing new market segments for current company products
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Product development
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growth by offering modified or new products to current market segments
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Diversification
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growth through starting or acquiring businesses outside the company's current products/markets
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SWOT Analysis
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Strength, Weaknesses, Opportunities, Threats
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Three steps of SWOT
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planning, implementing and controlling
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Executive summary
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brief summary of goals and recommendations
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Current Market situation
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describes target market and company's position
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Return on Investment (ROI)
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the net return for a marketing investment divided by the cost of the marketing investment
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Marketing Environment
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the "actors" and forces that affect marketing management's ability to build and maintain successful relationships with target customers
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Microenvironment
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Actors close to the company. all the departments like accounting and R&D.
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Marcoenvironment
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larger societal forces that affect that microenvironment, including demographic, economic, natural, technological, political, and cultural forces
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Generational marketing
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separating products and marketing programs by generation
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Economic environment
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economic factors that affect customer purchasing power and spending patterns; marketers must pay close attention to trends to trends and customer spending patterns
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Natural Environment
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natural resources that are needed as inputs by marketers or that are affected by marketing activities
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Political environment
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laws, government agencies, and pressure groups that influence and limit organizations and individuals in a society
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Cultural environment
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forces that affect society's basic values, perceptions, preferences, behaviors, the society we grow up influences our beliefs and values
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Marketing Information Systems (MIS)
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people and procedures dedicated to assessing information needs, developing the information and helping managers use the information to generate and validate customer market insights
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Market Research
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Systematic design, collection, analysis, and reporting of data relevant to specific marketing situations
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Qualitative Data
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Qualifies a problem
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Quantitative Data
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Quantifies an answer
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Focus Group Interviewing
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group interviewing involving 8 -12 people who gather for a few hours to talk about a product, service, or organization
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The Marketing Process involves
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Understanding the marketplace and customer needs and wants. Capturing value from customers and creating profit. Creating value for customers.
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The mistake of paying more attention to specific product than to the benefits of the product is..
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Market Myopia
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Marketing is defined as...
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Managing profitable customer relationships
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"Blank" buy again and tell others about their experiences
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satisfied customers
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This concept is also referred to as the "make and sell" philosophy and involves marketers trying to get customers to buy goods they would not otherwise think of buying
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selling concept
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This concept is also referred to as the "sense and respond" philosophy in which marketers are trying to find the right products for their customers
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Marketing Concept
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This concept refers to the idea that customers will favor the products that offer the most quality, performance, and features
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Product Concept
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The process of dividing a market into distinct groups of buyers who have different needs, characteristics or behaviors, and who might require separate products or marketing programs is called:
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Market Segmentation
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Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of a customer is called:
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Positioning
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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 (CRM)
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A customer's evaluation of the difference between all the benefits and all the costs of a marketing offer relative to competing offers is called
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Customer-perceived value
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Caring Capitalist
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A company that is founded entirely on a cause-related mission
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Steps of Market Research
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1. Define the problem and research objectives 2. develop the research plan for collecting the info 3. Implement the research plan, collecting and analyzing the data 4. Interpreting and reporting the findings
