question

The best definition of marketing is a. promotion and selling b. producing and distributing products and services to customers c. finding customers and convincing them to buy your products d. none of the above

answer

d. none of the above

question

The two steps in marketing strategy are a. developing a product and promoting it to consumers b. identifying a target market and developing a marketing mix c. conducting marketing research and planning producing d. pricing a product and distributing it to customers

answer

b. identifying a target market and developing a marketing mix

question

Which of the following is an example of a rational buying motive? a. love b. fear c. economy d. self-image

answer

c. economy

question

True or false. Most new products introduced by companies are not totally new, but are improvements on existing products

answer

true

question

True or false. The first step in marketing research is to develop a data collection procedure

answer

False

question

The availability of a service must match the demand for that service at a specific time because it is a. heterogeneous b. perishable c. inseparable d. intangible

answer

b. perishable

question

Which of the following conditions will result in a lower rather than a higher price? a. a higher customer demand b. a large quantity of available products c. a product that has very few similar competing products d. all of the above

answer

b. a large quantity of available products

question

When businesses specialize in producing a specific type of product, a channel of distribution will be needed to adjust differences in a. timing b. location c. assortment d. quantity

answer

c. assortment

question

Which of the following is not a part of effective communication? a. the sender b. the receiver c. the advertisement d. information

answer

c. the advertisement

question

The most expensive but also most effective type of promotion is a. personal selling b. advertising c. publicity d. public relations

answer

a. personal selling

question

advertising

answer

any paid form of communication through mass media directed at identified consumers to provide information and influence their actions

question

effective communication

answer

The exchange of information so there is common understanding by all participants

question

target market

answer

a specific group of consumers that have similar wants and needs

question

consumer decision-making process

answer

the specific sequence of steps consumers follow to make a purchase

question

distribution

answer

The locations and methods used to make a product or service available to the target market

question

marketing mix

answer

The blending of four marketing elements-product, distribution, price, and promotion

question

services

answer

intangible activities that are consumed at the same time they are produced

question

marketing

answer

the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large

question

channel of distribution

answer

the route a product follows and the businesses involved in moving a product from the producer to the final consumer

question

marketing research

answer

finding solutions to problems through carefully designed studies involving consumers

question

marketing strategy

answer

a company's plan that identifies how it will use marketing to achieve its goals

question

buying motives

answer

the reasons consumers decide what products and services to purchase

question

merchandising

answer

a set of promotional activities designed to obtain sales in the retail setting

question

personal selling

answer

direct individualized communication with prospective customers to assess their needs and assist them in satisfying those needs with appropriate products and services

question

promotion

answer

any form of communication used to inform, persuade, or remind

question

price

answer

the money a customer must pay for a product or service

question

retailers

answer

the final business organization in an indirect channel of distribution for consumer products

question

developing business plans

answer

-most developed for 1 year and updated annually -always be prepared if money is needed -helps guide decision making

question

major components of business plans

answer

1. Description of the business -idea -major products/services -ownership structure -goals 2. Description of Competition -characteristics of industry -condition of economy -strengths/weaknesses of competitors 3. Customer Analysis -target market (age, race, live, income, #) -sales forecasts (use conservative #s) -look at competitor sales/revenue 4. Operations Plan -how will company be organized (chart) -describe major operations -analysis of resources needed -human resource plans 5. Marketing Plan -describe marketing activities -how much $ needed -schedule of activities 6. Financial Plans -start up costs (inventory, supplies, licenses) -short term finances (current expenses) -long term financing (land, building, equip)

question

marketing

answer

marketing is the activity, set of institutions and processes for: -creating -communicating -delivering -exchanging

question

Marketing mix elements (4 Ps)

answer

product price promotion place

question

products and services that have value for customers, clients, partners, and society

answer

includes: -public relations -sales promotion -ads -social media -distribution -$15 billion on marketing for kids -companies consider employees, stakeholders, and society

question

examples of marketing activities

answer

-reading about products/services online -exposure to various advertising and branding -speaking with sales people at various stores -business storing supplies and merchandise -payment methods (credit cards, paypal, online) -businesses researching and gathering info about customers (big data) -business to business transactions and activities

question

examples of organizations

answer

-advertising agencies (leo burnett) -marketing research firms -transportation companies -financial service companies (banks that allow businesses to accept credit cards) -wholesalers/retailers

question

production era

answer

-focus on internal capabilities of the company -efficient production and distribution (assembly line) -less competition

question

selling era

answer

-aggressive selling strategy is the focus -promotion and sales strategy is the priority

question

consumer era

answer

-marketing strategy focuses on consumer needs total equality management (TQM) -externally focused on customer wants + needs -provide customer value -products perform to customer's satisfaction -companies must earn customer trust -pricing matches product's value and is realistic -some companies involve customers in creating products and services (crowdsourcing) -doesn't mean its expensive (getting your money's worth)

question

the new era

answer

-consumer relationship management (CRM) -they use big data -improve business relationships through customer retention (keeping the customer, they will spread word) and customer acquisition (getting customers) -goal of CRM is to improve business relationships

question

short answers

answer

-How would you describe how marketing has evolved?

question

7 functions of marketing (packet)

answer

1. product/service management 2. distribution 3. selling 4. pricing 5. marketing research 6. financing 7. promotion

question

consumer behaviors

answer

-effective organizations analyze customers before -products are marketed or developed -marketers must know what drives purchases -there are many theories regarding what influences customers to make purchases -there is agreement among marketers regarding the evidence of a decision making process 1. recognize a need 2. gather info 3. select/evaluate alternatives 4. make a purchase decision 5. determine the effectiveness of the decision

question

buying motives

answer

Rational buying motives - purchases based on facts and logic Emotional Buying Motives - purchases based on feelings 1. make the viewer feel something (grab their attention) 2. involve your audience 3. give audience a reason to remember what you want them to 4. give audience an emotional reason to like you

question

11 advertising types

answer

1. altruism -E 2. anger -E 3. bandwagon -E 4. emulation -R 5. fear -E 6. friendship -E 7. humor -E 8. intelligence -R 9. pleasure -E 10. sex appeal -E 11. status -E

question

marketing research

answer

-process linking the producers, customers, and end users to the marketer through information 2 types: -quantitative (numbers, how many?) -qualitative (behavior, why?)

question

value

answer

-define marketing opportunities and problems -generate, refine, and evaluate marketing strategies -help monitoring marketing performance -improve understanding of marketing as a process/tool

question

why marketing research?

answer

1. who is your target market 2. what products are you selling - why would someone buy your product 3. who is your competition? - how big/old, strengths/weaknesses 4. who are your suppliers - buying/reselling, conditions of suppliers, where are they located

question

steps

answer

1. define the marketing problem 2. analyze the situation 3. develop a data collection procedure 4. gather and analyze information 5. propose a solution

question

secondary research

answer

-analyzing existing marketing information previously gathered for a different purpose

question

primary research

answer

-studies completed to gather new information to solve a current problem

question

types of research studies

answer

Surveys - questions designed carefully to gather info Observations - recording data regarding customer behavior Experiments - carefully controlled alternatives are compare to determine consumer preferences Focus Groups - group discussion about products/services to develop new ideas and problems or issues with products

question

marketing strategy

answer

-marketing activities often cost 50% or more of selling price, so planning is key -marketing helps increase customer satisfaction and improves profit

question

2 steps in marketing planning

answer

1. identify a target market -a specific group of consumers at which a company aims its products and services (avatar) -resist the temptation to be too general hoping to obtain more market share 2. create a marketing mix -blending of the 4 Ps

question

product/service planning

answer

-product is the most important marketing mix element Terms: -basic product -product features - additions + improvements -product options - choices of features -brand name - unique identification for company's products -packaging -guarantee/warranty

question

product planning procedures

answer

new product planning is expensive - procedures need to be in place

question

1. idea development

answer

-creative process - encouraged by companies -development comes from various sources like: -R+D employees (scientists) -salespeople -customers -problems

question

2. idea screening

answer

-encouraging many ideas, then picking the best -will the product be profitable?

question

3. strategy development

answer

-once a product idea appears viable -marketing strategy is developed -target market is determined -4 Ps are tested -alternative strategies are prepared + studied

question

4. production and finance planning

answer

-facilities identified/equipment planned -labor needs determined -costs are considered to determine profit potential`

question

5. limited production + test marketing

answer

-determines feasibility of production and marketing strategy before large investment -prototype or limited quantity may be created/tested

question

6. full-scale production and marketing

answer

-information is continued to be gathered -competition is closely monitored

question

product mix components

answer

1. product line 2. product assortment 3. packaging + labeling functions 4. brand development

question

1. product line

answer

-group of similar products w slight variations -variations are usually in quantity or quality -differences in quantity - easiest way to alter product line is through size -differences in quality - various levels of quality is common for products -adding features is most common

question

2. product assortment

answer

-complete set of all products a business offers to its market -one specific type of product (mattress store) -variety of products (costco)

question

3. packaging + labeling functions

answer

-contain and protect -communicated -enhance convenience -facilitate storage -environmental sensitivity -display product codes -protect against tampering

question

4. brand development

answer

- a name, symbol, word, or design that uniquely identifies a product, service of company -unique identification and image is the goal -name, logo, packaging design -colors, tagline, typeface -brand identity and brand image should match brand should be: -memorable -positive connotation -convey the "desired" image

question

great products and services (Guy Kawasaki)

answer

1. Deep - cover everything, won't disappoint 2. Intelligent 3. Completeness - not j a product, customer support 4. Elegant - simple to use 5. Emotive - make you feel passionate

question

price a product

answer

selling price = product cost + operating expenses + profit gross margin = selling price - product costs

question

why is pricing difficult in free enterprise system?

answer

-buyers will usually want to pay lowest price -sellers want to charge highest price possible

question

setting a basic price

answer

cost based pricing -consider costs and profit goals - markup as appropriate demand based pricing -research what customers are willing to pay for your product and set price accordingly competition based pricing -price products consistent with your competitors -costs and demand are irrelevant

question

price skimming vs. price penetration

answer

price skimming is when you initially price your product very high in hopes of maximizing products, but slowly lowering it over time. This is effective when your product has a unique advantage. Price penetration is selling your product at a low price in hopes of getting market shares and obtaining loyal customers. this also discourages competition

question

status quo pricing

answer

matching competitors' pricing or prices similar

question

True/false? All businesses must complete some marketing activities even if that is not their focus.

answer

true

question

True/false? A target market is a group of consumers that have similar wants and needs

answer

true

question

True/false? Effective marketing begins with a good product

answer

false

question

True/false? Finding solutions to problems through carefully designed studies involving consumers is called marketing research

answer

true

question

True/false? Product packaging is the least important part of product planning because consumers simply throw away the packaging before using the product

answer

false

question

True/false? The first step in new product planning is to develop a full marketing strategy

answer

false

question

True/false? Highly complex and technical products generally have higher prices than simple products

answer

true

question

True/false? A markup should be thought of as a pricing mistake because it reduces the amount of $ the business has to cover operating expenses and profits

answer

false

question

True/false? A farmer selling at a roadside stand tomatoes she grew in her own garden is an example of a direct channel of distribution

answer

true

question

True/false? Advertising is any form of communication used to inform, persuade, or remind

answer

false

question

This marketing function involves determining ways for customers to locate, obtain, and use of the product is a. financial analysis b. distribution c. pricing d. selling

answer

b. distribution

question

What is the first step in the consumer decision-making process a. gather info b. select alternatives c. evaluate alternatives d. recognize a need

answer

d. recognize a need

question

A small # of consumers expressing opinions about a new product or service in a group discussion is a a. target market b. focus group c. survey group d. experimental group

answer

b. focus group

question

The simplest form of a product is called the a. basic product b. brand name c. product feature d. option

answer

a. basic product

question

Services are a. Easier than products to examine to see if they will meet your needs b. consumed at the same time they are produced c. the same no matter who provides them d. easier than product to store

answer

b. consumed at the same time they are produced

question

A product will probably have a relatively high price a. if there are many companies supplying product b. if its supply is high c. if it has been on the market for a long time d. if it has many features and options

answer

d. if it has many features and options

question

Product costs + Operating expenses + profit = a. gross margin b. selling price c. markup d. markdown

answer

b. selling price

question

Businesses usually specialize in producing a specific type of product, while consumers want to purchase a variety of products. This illustrates differences in a. assortment b. quantity c. location d. timing

answer

a. assortment

question

Which of the following is an example of personalized promotion a. advertising b. publicity c. personal selling d. sales promotion

answer

c. personal selling

question

Non-paid promotion presented by the media rather than by a business is a. telemarketing b. advertising c. sales promotion d. publicity

answer

d. publicity

question

marketing function that deals with determining the best ways for customers to locate, obtain, and use a company's products and services

answer

distribution

question

consumers who buy products and services for their own use

answer

final consumers

question

marketing function that deals with designing and improving products and services

answer

product/service management

question

buying a birthday card for a family member is an example of...

answer

emotional buying motive

question

marketing function that involves communicating directly with potential customers to determine and satisfy their needs

answer

selling

question

marketing function that involves budgeting for marketing activities and providing financial assistance to customers so they can buy goods and services

answer

financial analysis

question

consumers who buy products for incorporation into other products

answer

business customers

question

buying an automobile because it gets the best gas mileage and has been rated a cost-efficient purchase by a leading consumer magazine

answer

rational buying motive

question

marketing function that deals with obtaining, managing, and using market information to improve business decision making

answer

marketing-information management

question

marketing function that involves communicating information about products and services to potential customers

answer

promotion

question

channels of distribution

answer

-route a product takes from producer to end user Businesses involved in the process: -wholesalers/retailers/specialized intermediaries

question

direct channel

answer

producer/manufacturer directly to end user

question

indirect channel

answer

one or more business between manufacturer/producer and end user

question

need for distribution channels

answer

Due to complex economic systems distribution channels vary based on: -differences in quantity -differences in assortment -differeneces in location -differences in timing

question

intensity of distribution

answer

how broadly your product will be distributed

question

3 strategies

answer

1. intensive distribution -all suitable outlets 2. selective distribution -limits outlets to fit marketing strategy 3. exclusive distribution -one outlet selling product per area

question

the role of promotion strategy

answer

-communication intended to persuade, inform, or remind selected target market -most visable "P" -used to maintain positive relationships, attract attention, and secure sales

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