question

"Discretionary income:"

answer

is a family's income AFTER paying taxes and paying for necessities.

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According to the text, the economic-buyer theory:

answer

is too simplistic to explain consumer behavior.

question

Regarding consumer motivation, the text states that:

answer

wants are learned needs.

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Carmela Sanchez is planning to buy a pair of running shoes. Recently, she has been noticing more Adidas advertising in magazines. This is an example of:

answer

selective exposure.

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When Taco Bell shows a large close-up of a chicken taco in a television ad, it is:

answer

using a cue to encourage a particular response to the hunger drive.

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Regarding the family life cycle, singles and younger couples without children:

answer

are more willing to try new products and brands.

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Reference-group influence would be WEAKEST for determining which particular ______________ a person buys.

answer

laundry soap

question

With respect to culture and consumer behavior, a.culture is the whole set of beliefs, attitudes, and ways of doing things of a reasonably homogeneous set of people. b.culture may exert many subtle influences on other aspects of consumer behavior. c.different cultural subgroups are likely to require different marketing mixes.

answer

All of these alternatives are correct.

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Consumers go through six steps when deciding to accept or reject a new idea. In this adoption process:

answer

the confirmation step follows the decision step.

question

In developing marketing mixes for consumers in international markets, marketing managers should:

answer

know about the specific social and intrapersonal variables.

question

Business and Organizational Buyers

answer

• Producers Acquires good or services that enter into production of goods or services that are sold, rented, or supplied to other buyers • Wholesalers and Retailers Acquires goods for resale • Governments • Nonprofit Organizations

question

Features of the Buyers

answer

• Fewer buyers • Larger buyers • Professional Buyers • Close supplier-buyer relationship • Centralized Purchasing • Buyers are much more focusing on economic factors (e.g., price, delivery, quality, technical services) • Buyers are less emotional than final consumers • Vendor Analysis • Reciprocity

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Derived demand

answer

the demand for business products derives from the demand for final consumer products.

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Fluctuating demand

answer

The demand for business goods and services tends to be more volatile than the demand for consumer goods and services ("accelerating effect").

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The Marketing Mix

answer

• Products or services are usually technical in nature and purchased on the basis of specifications - Quality usually receives high attention; quality certifications eg ISO 9000. • There is a predominance of raw and semi-finished goods purchased. • Heavy emphasis is placed on delivery time, technical assistance, and financing assistance. • Direct selling is the rule, and physical distribution (i.e., the use of sales representatives) is very important. • Advertising and other forms of promotion are technical in nature. • Price is often negotiated. • Trade and quantity discounts are common.

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Multiple Buying Influence

answer

means that several people share in making a purchase decision.

question

Basic Methods in Organizational Buying

answer

• Inspection Buying - Looks at every item - Usually for non-standardized products or those requiring examination. • Sampling Buying - Looks at only part of the purchase - For more standardized products. • Description Buying - Based on description (e.g., brand, grade, specification) - Services - Competitive bid. • Negotiated Contract Buying: allows for future changes.

question

Which of the following is the BEST example of a "generic market?"

answer

The senior citizen recreation market

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A basic difference between a "generic market" and a "product-market" is:

answer

how similar the competing sellers' products are.

question

Which of the following is NOT part of a product-market definition?

answer

information about which specific retailers will sell the product

question

The first step in market segmentation should be:

answer

defining some broad product-markets where you may be able to operate profitably.

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Saying that a "good" product-market segment should be substantial means:

answer

it should be large enough to be profitable.

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Electro Technologies, Inc. (ETI) has limited capital and wants to reduce the risk of competitors taking customers if it invests in a new product-market. Its broad product-market consists of three reasonably distinct submarkets. To identify a target market, ETI should probably focus on using the __________ approach.

answer

single target market

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Quality Ceramic, Inc. (QCI) defined five submarkets within its broad product-market. To obtain some economies of scale, QCI decided NOT to offer each of the submarkets a different marketing mix. Instead, it selected two submarkets whose needs are fairly similar, and is counting on promotion and minor product differences to make its one basic marketing mix appeal to both submarkets. QCI is using the:

answer

combined target market approach.

question

When segmenting broad product-markets, cost considerations tend:

answer

to lead to more aggregating.

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When major airlines target business travelers because they travel often and typically pay at least three times the price for a ticket as leisure travelers, these airlines are segmenting the market primarily on:

answer

rate of use.

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Which of the following statements about positioning is NOT true? Positioning techniques:

answer

position products on a graph based on price level and quantity demanded.

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Differentiation

answer

is to design a set of meaningful differences to distinguish the company's offering from competitors' offering. can happen in - Physical product - Services - Personnel - Distribution channel - Image

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Major Product Differentiators

answer

• Horizontal Differentiation - Features The characteristics that supplement the product's basic function - Style and design • Vertical Differentiation - Performance quality - Conformance quality The degree to which all the produced units are identical and meet the promised target specification - Durability - Reliability - Reparability

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Major Service Differentiators

answer

• Ordering ease • Delivery • Installation • Customer training • Customer consulting • Maintenance and repair Image Differentiation • Company image and brand image • Building image - Symbols: logo, person, color, sound/music ... - Atmosphere - Events and sponsorship - Use written and audiovisual media to convey a consistent image

question

A product position

answer

is the way a product is defined by consumers on important attributes relative to competing brands.

question

Positioning

answer

is the act of designing a firm's offering and image so that they occupy a meaningful and distinct competitive position in the target customers' minds.

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Multi-Dimensional Scaling (MDS)

answer

A class of methods for constructing perceptual maps for a set of objects by estimating the coordinates of these objects in a space of some specified number of dimensions. • Input - Data measuring the "similarities" or "distances" between pairs of objects; - Number of dimensions specified by researchers. •Output: positions of all the objects in a perceptual map. •Choose the best number of dimensions: statistical "fit."

question

Repositioning

answer

• Identify competitors • Determine how the competitors are perceived and evaluated, and their positions • Analyze potential customers (probably already done in the market segmentation analysis) - "Ideal points" • Select a position

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Consumer Behavior

answer

consists of the activities of consumers in obtaining, using, and disposing of goods and services, including the decision processes that precede and follow these actions. - Ultimate consumer - Purchasers of products for business use

question

Psychological Influences

answer

• Motivation • Perception • Learning • Attitude • Personality/lifestyle

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Motivation

answer

is a need pressing enough to cause a person to seek satisfaction.

question

Motivation: Freud's Theory

answer

- Motivations are subconscious; - They drive everything we do.

question

Motivation: Maslow's Theory

answer

- Needs are hierarchical from very basic to higher levels; - Reasonable attainment of each level is necessary before moving to a higher level.

question

Perception

answer

is the meaning that a person attributes to incoming stimuli received in the formats of taste, touch, smell, vision, and sound. • Selective processes - Selective exposure "There is too much noise!" - Selective perception (comprehension) Half empty versus half full cup; - Selective retention "That's what I remembered"

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Learning

answer

is the behavioral changes due to - Direct experience: behavioral learning - Thinking: cognitive learning • The learning process

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Attitude

answer

is a favorable or unfavorable predisposition towards an object - Has action implications - Shaped by beliefs and values

question

Belief

answer

is our opinion about an object - Based on personal experience, advertising, and discussion with other people - Do not necessarily involve liking or disliking

question

Values

answer

are deeply held attitude and belief - Resistant to external influence - May change over time

question

Personality

answer

affects how people see things

question

Social Influences

answer

• The Family • Social Class • Reference groups • Personal effects

question

Family life cycle

answer

Describes the distinctive stages that a typical family goes through, each stage bringing with it identifiable purchase behaviors. - Stages determined by the age, marital and employment status of the household head, and information about children; - Works better as a descriptive device, not as a predictive tool.

question

Reference group

answer

is the people to whom an individual looks when forming attitudes about an object.

question

Personal Effects

answer

Two personal effects are particularly important for marketing - Opinion leader (or trendsetter) • Features - More likely to purchase new products early; - More likely to serve as information sources. • Particularly useful in launching new products. - Word-of-mouth

question

Cognitive dissonance

answer

is the postpurchase anxiety caused by uncertainty about the rightness of the decision. • Resolving dissonance - Seek information supporting the decision; - Avoid information supporting alternatives; - If no enough support is found, then change his/her opinion and buy something else next time. • What do you, as a Marketing person, need to do to address this? • Warranties, Return Policies, Customer Feedback Some Interesting Behavioral Research • Mental Accounting

question

When setting objectives for the whole firm, TOP MANAGEMENT should:

answer

involve the marketing manager in the objective setting process.

question

Which of the following is NOT primarily an example of the influence of technology on the external market environment?

answer

The government passes a law that prohibits use of cell phones while driving a vehicle.

question

American legislative and economic thinking assumes that:

answer

competition among many small firms helps the economy.

question

The Wheeler-Lea Amendment specifically aims at:

answer

unfair or deceptive practices.

question

Which of the following is least likely a result of shifts in the cultural and social environment?

answer

A toy manufacturer recalls a playpen with a defective latch and Toys 'R' Us stores remove them from the shelf.

question

Gross domestic product (GDP):

answer

is affected by economic conditions and the productivity of workers in the country.

question

All of the following countries listed more than 75 percent of their populations as Internet users in 2009 EXCEPT:

answer

Algeria

question

The state with the largest percentage increase in population between 2000 and 2010 is:

answer

Nevada

question

Which of the following population groups is the most techno-savvy?

answer

Gen Y

question

According to the General Electric strategic planning grid, a business that is the strongest in its industry:

answer

is a good prospect, provided the industry has at least medium attractiveness.

question

STP marketing is...

answer

modern marketing

question

Segmentation

answer

an aggregating process that clusters people with similar needs into a "market segment." Major steps - Naming broad product-markets - Identify bases (factors or variables) for segmenting markets; - Develop relevant market segment profiles; - Segment the broad product-market - Choose the target segment(s).

question

Market segment

answer

is a (relatively) homogeneous group of customers who will respond to a marketing mix in a similar way.

question

Consumer Characteristics

answer

• Geographic - Country or a region within a country - Level of urbanization (urban, suburban, rural?) • Demographic Age, Sex, Income, Education, Family size, Family life cycle stage, Occupation, Nationality Social class. • Psychographic - Lifestyle - Attitudes about self, family, and society.

question

"Marketing strategy planning" means:

answer

finding attractive opportunities and developing profitable marketing strategies.

question

The difference between target marketing and mass marketing is that target marketing:

answer

focuses on specific customers, while mass marketing aims at an entire market.

question

"Place" is concerned with:

answer

all of these might be involved with Place.

question

When Herbal Essences offers "dollar-off coupons" to adult women to try to get them to try its shampoos and conditioners, this is an example of:

answer

sales promotion.

question

Ideally, a good marketing mix should:

answer

flow logically from all the relevant dimensions of a target market.

question

The text's discussion of Ford's marketing strategy highlights the fact that:

answer

creative strategy planning is needed for survival.

question

A S.W.O.T. analysis:

answer

identifies a firm's "strengths, weaknesses, opportunities, and threats."

question

When Colgate encourages its current customers to brush more often by taking their toothbrush and toothpaste to work with them, which market opportunity is Colgate pursuing?

answer

Market penetration

question

To improve its profits, Delta Tool Corp. has redesigned its entire line of rechargeable power drills--adding several new or improved features and three new models. Apparently, Delta Tool is pursuing a ______________ opportunity.

answer

product development

question

All of the following are reasons why international opportunities should be considered by managers, EXCEPT:

answer

favorable trends at home and unfavorable trends in other countries make international marketing particularly attractive.

question

The Marketing Environment: Internal

answer

• It is about the company Company mission, structure and culture, financial situation, technology, production, quality control programs, R&D (research and development), relationship with suppliers/agents/customers. • Objectives should set the course - Should be socially and economically useful - Should organize to innovate, implement strategies - Should sustain profitability - Helps to have a mission statement • It is about strength and weaknesses • It is usually controllable.

question

The Marketing Environment: External

answer

• It is about the macro-environment - Competition; - Macro-economy; - Technology; - Political and legal; - Social and cultural. • It is about opportunities and threats • It affects the company, as well as its suppliers and customers; • It is usually uncontrollable.

question

Trends of Competition

answer

• The emergence of fast, responsive "network corporations"; • Mergers reduce costs through economies of scale; • International competition from emerging countries.

question

The Economic Environment

answer

• Economic environment constantly changes • Interest rate, inflation rate, exchange rate • Global economy and trade • Tariffs and Quotas • Purchasing power and spending - Family income: no real increase since 1980; - Spending patterns (in % of total expenditure) • Food, clothing, and personal care declines; • Recreation expenditure increases.

question

The Technological Environment

answer

• Provides new product and market opportunities • Provides new processes to be more efficient • The Internet • Convergence: integrating technology with commercial activities • Challenges - Too "tech-oriented" to maintain the marketing concept; - Privacy issues.

question

The Political and Legal Environment

answer

• Political - Nationalism (e.g., "Buy American", buyBC); - Consumerism- rights and powers of consumers; - Regionalism and free trade- NAFTA, EU - Environmentalism. • Legal - Increasing emphasis on deregulation; - Protect competition: the Competition Act; - Consumer rights and protection.

question

Marketing Concept

answer

means that an organization as a whole should seek to make a profit by serving the needs of it customers.

question

MARKETING MANAGEMENT PROCESS

answer

the process of (1) planning marketing activities, (2) directing the implementation of the plans, and (3) controlling these plans.

question

STRATEGIC (MANAGEMENT) PLANNING

answer

the managerial process of developing and maintaining a match between an organization's resources and its market opportunities.

question

Marketing Strategy

answer

• Target Market - A group of customers to appeal. • Marketing Mix - Product; - Pricing; - Distribution (Place); - Promotion. • Note: customer is not part of the marketing mix!

question

Product Strategy

answer

• Are there different types of customers in the market? • What do these different segments want? • Which segment should we target? • How can we "position" our product toward this segment? • How broad of an assortment of products should we offer? • What are the appropriate quality levels?

question

Pricing Strategy

answer

• How price sensitive are potential customers? • What are our competitors charging for similar products? • What is the minimum price we need to charge to cover our variable costs of production and some of our fixed costs? • What price level would be consistent with the desired positioning for our products?

question

Distribution (Place) Strategy

answer

• What channel should we use to distribute our products? • What intensity should we deploy in the distribution of our products? • How many "middlemen" should there be between us and our final customers? Promotion Strategy • What should we communicate about our products to potential customers? - Eg: Attributes, Image, Technology etc • How should we communicate to our potential customers? - Eg: Personal Selling, Mass Selling, Sales Promotion • What specific media should we use to communicate? - Eg: Sleep Country USA

question

All of the following should be determined by the marketing department of a firm EXCEPT:

answer

actually making the product.

question

The fact that US car companies are located in the upper Midwest while their customers are located throughout the U.S. is an example of:

answer

spatial separation.

question

An economic system in which government officials determine production levels is known as:

answer

command

question

Which of the following is the BEST example of management thinking during the "production era"?

answer

"If we produce a good product, customers will find us and buy it."

question

Simple trade era (before Industrial Revolution)

answer

- Trade of "surplus" output; - Focus: Sell surplus

question

Sales era (1930s to 1950s)

answer

- Business success = sell, sell, sell...; - Focus: Beat Competition

question

Marketing department era (1950s)

answer

- Short-term marketing plan and limited integration; - Focus: Coordinate and Control

question

Marketing company era (since 1960s)

answer

- Implementation of the marketing concept. - Focus: Long run customer satisfaction

question

The owner of a company that produces electronic circuit boards sees many competitors with extra capacity and says "the only hope is that our sales manager, who makes all of our marketing decisions, will find a way to sell more boards." It seems that this company is run as if it were in the:

answer

sales era.

question

A firm with a marketing orientation is MOST likely to:

answer

advertise how a product meets customers' needs.

question

Which of the following statements about customer value is true?

answer

Customer value is the difference between the benefits a customer sees from a market offering and the costs of obtaining those benefits.

question

The term "micro-macro dilemma" means that:

answer

what is "good" for some producers and consumers may not be good for society as a whole.

question

A marketing manager made a speech in which he described his organization as having "really embraced the marketing concept over ten years ago." A critic in the audience argued that the manager didn't understand the "socially conscious" view of the marketing concept. Given the critic's argument, the marketing manager may work for:

answer

a motorcycle producer.

question

Which of the following criticisms focuses most directly on a macro view of marketing, rather than a micro view?

answer

Marketing exploits the poor and the uneducated.

question

Marketing

answer

is the process of planning and executing conception, pricing, promotion, and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational goals. - by AMA (American Marketing Association)

question

Marketing myopia

answer

Firms who concentrate their thinking on the physical product instead of customer needs are said to suffer from...

question

Micro-Marketing

answer

- The performance of activities that seek to accomplish an organization's objectives by anticipating customer or client needs and directing a flow of need satisfying goods and services from producer to customer or client. - @ the firm level

question

Macro-Marketing

answer

- A social process that directs an economy's flow of goods and services from producers to consumers in a way that effectively matches supply with demand and accomplishes the objectives of society - @ the society level

question

Customer Needs and Wants

answer

• Needs - A state of deprivation of some basic satisfaction; - e.g., safety, esteem, food, clothing. • Wants - Desires for specific satisfiers of needs; - e.g., hamburger and Coke for needs of food. • Focus on customer needs!

question

In Fact, Marketing Is ...

answer

•More than selling and advertising; •Begins with customer needs; •Customer satisfaction is number one! •Starts earlier than production, and lasts later than sales; •Marketing does not do it alone.

question

Other Concepts

answer

• Customer Value and Relationship - Value= Perceived benefits - costs of benefits - Retaining a customer is cheaper and the firm should work together to provide customer value before and after each purchase - Customer satisfaction is the way to loyalty • Non Profit Organization and Marketing - Compete for the same resources but for different goals - NOT FOR PROFIT • Social Responsibility and Ethics - Gas Guzzlers - Full Disclosure vs ambiguous information

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