Intro to Marketing Midterm – Flashcards
Unlock all answers in this set
Unlock answersquestion
The purpose of market segmentation is to respond more effectively to the wants of group of potential buyers in order to...
answer
increase sales and profits
question
Which of the following is an example of a single product with multiple market segments?
answer
Johnson's Baby Oil is advertised as a skin softener for babies and as a makeup remover for women
question
Synergy is the increased customer value achieved through
answer
Performing organizational functions more efficiently.
question
There are 5 steps involved in segmenting and targeting a market. What should a marketer do once he or she has grouped products to be sold into categories?
answer
Develop a market-product grid and estimate size of markets.
question
Which of the following is a criterion used in forming market segments?
answer
There is the potential of marketing action to reach a particular segment.
question
People who live active outdoor lives are part of the target market for REI, a retail outdoor outfitter. This suggests that REI would most likely segment the market based on which type of consumer segmentation basis?
answer
Psychographic
question
On a traditional market-product grid, the horizontal axis represents ______ and the vertical axis represents ______.
answer
market segments; product groupings
question
Which of the following is a criterion used for selecting a target market segment?
answer
expected growth
question
Consumer markets break behavioral segmentation into variables based on product features or usage rate. Organizational markets break demographic segmentation into variables based in part on ______ and ________.
answer
NAICS code; number of employees
question
Magnavox sells its target markets many different types of TVs from flat screens to a 20" combination TV/DVDs. The larger sets can be outfitted with surround sound at a higher price than the smaller sets. The smaller sets are much less expensive and allow the viewer to watch a DVD without extra equipment. Magnavox is used which type of segmentation variable in this example?
answer
behavioral segmentation
question
The process of defining a marketing problem and opportunity, systematically collecting and analyzing information, and recommending actions is referred to as
answer
marketing research
question
When following the five-step marketing research approach, developing the research plan is the ____ step.
answer
2nd
question
A company is interested in producing self-stick decorative posters. It draws a sample of high school students who currently have one or more standard posters on their walls in order to make generalizations about what all students want in their posters. This is an example of...
answer
statistical inference
question
The best way to find information that is specific to the problem being studied is to...
answer
collect primary data
question
Queries, internal and external databases, and models are all key elements of...
answer
information technology
question
The marketing manager at Popular Electronics must determine a price for a new model of portable DVD player. He will use the company's information system to determine how the manufacturer's suggested retail price might affect total sales revenues. This type of analysis is called...
answer
sensitivity analysis
question
Through the use of _____, a catalog retailer might determine from its database that customers who purchase silver frames would also have a high probability of buying vintage hat pins. As a result, its sales representatives were instructed to offer a special price on hat pins when a customer places an order for a silver frame.
answer
database mining
question
The last step in the marketing research approach is to...
answer
take marketing actions
question
A forecasting method that starts with the last known value of the item being forecast, lists the factors that could affect the forecast, assesses whether they have a positive or negative impact, and makes the final forecast is referred to as...
answer
lost-horse forecasting
question
Extending a pattern observed in past data into the future is referred to as...
answer
trend extrapolation
question
The 5 steps to marketing research:
answer
Define the problem, develop research plan, collect relevant information, develop findings, take marketing actions
question
Research that provides ideas about a relatively vague problem.
answer
exploratory research
question
Research that tries to find the frequency the something occurs and the extent of a relationship between 2 factors.
answer
descriptive research
question
Research that tries to determine the extent to which the change in one factor changes another one.
answer
causal research
question
Restrictions placed on potential solutions to a problem.
answer
constraints
question
Facts and figures that have already been recorded.
answer
Secondary data
question
Facts and figures that are newly collected for a project.
answer
Primary data
question
Advantages of secondary data...
answer
Saves time, low cost
question
Disadvantages of secondary data...
answer
May be out of date, may not be specific enough
question
Pose a customers and observe behaviors.
answer
Mystery shoppers
question
Personal methods used to collect data:
answer
Mystery shoppers, videotaping
question
Where the ocean of data is collected and stored.
answer
Data warehouse
question
Advantages of primary data...
answer
more timely and specific to the problem being studied
question
Disadvantages of primary data
answer
more costly and time consuming
question
Aggregating prospective buyers into groups or segments, that (1) have common needs and (2) will respond similarly to a marketing action.
answer
Marketing segmentation
question
When do firms decide to use marketing segmentation?
answer
When it expects that it will increase sales, profits, and return on investment
question
The increased customer value achieved through performing organizational functions more efficiently.
answer
Organizational synergy
question
Steps in segmenting and targeting markets
answer
group potential buyers into segments, group products sold into categories, develop a market-product grid and estimate size of markets, & select target markets
question
Framework to relate the market segments of potential buyers to products offered or potential marketing actions by an organization.
answer
Market-product grid
question
Criteria used in selecting the target segments:
answer
market size, expected growth, competitive position, cost of reaching the segment, compatibility with the organizations objectives and resources
question
The primary challenge for 3M/s inventor David Windorski was to design new products for college students. The first step in solving this challenge was to...
answer
Identify any unmet needs of students when they studied.
question
Who does marketing affect?
answer
All individuals, organizations, industries, and countries.
question
You need information about how computers and telecommunications interact to reshape the workplace. As you walk into a Borders bookstore, you notice several copies of ComputerWorld magazine and like what you see. What is needed next in order for marketing to occur?
answer
You have to check your wallet to see if you have sufficient cash (or credit) to purchase the magazine.
question
Which of the following groups would be the most likely target market for the Toyota Highlander fuel SUV?
answer
People who want to drive fuel-efficient SUVs.
question
After years of resistance, the People's Republic of China finally allowed Coca-Cola to import soft drinks into the country. This restriction was an example of which environmental force?
answer
Regulatory
question
During the _____ era in U.S. business history, the primary function of the Pillsbury Company was to mill quality flour.
answer
production
question
Social responsibility refers to...
answer
the belief that organizations are accountable to a larger society for their actions.
question
Entities such as manufacturers, retailers, and government agencies that buy goods and services for their own use or for resale are referred to as
answer
organizational buyers
question
The owners of Old School Brand Authentic Antique Foods researched Civil War-era documents to come up with recipes for the old-fashioned products the company produces and markets. Their concern with the authenticity of their recipes reflects a concern with ______ utility.
answer
form
question
Before the Post-It Flag Highlighter could be introduced, there were several pre-launch issues that had to be addressed: technical, manufacturing, product, promotion, place (distribution), and _____.
answer
pricing issues
question
Ben & Jerry's is founded on and dedicated to a sustainable corporate concept of linked prosperity. Their mission statement consist of 3 interrelated parts:
answer
product, economic, and social
question
The money left over after a business firm's total expenses are subtracted from its total revenues and its the reward for the risk it undertakes in marketing its offerings in referred to as:
answer
profit
question
The concept of sustainable development asks a country to meet present needs without...
answer
compromising the needs of future generations
question
Medtronic is the world leader in producing and marketing heart pacemakers and other medical devices. All of the following are stakeholders of Medtronic EXCEPT:
answer
retailers
question
Organizational strategies vary in at least 2 significant ways. These include by ___ and by ___
answer
level; offering
question
In the Boston Consulting Group (BCG) business portfolio analysis model that assesses a firm's strategic business units (SBUs), the vertical axis of this growth-share matrix reflects the...
answer
market growth rate
question
Market penetration refers to the marketing strategy of...
answer
increasing sales of current products in current markets
question
Diversification refers to the marketing strategy of...
answer
developing new products and selling them in new markets
question
A toothbrush manufacturer sells several lines of toothbrushes. One line is for small children, another line is for people with gum problems, and still another is for people who wear dentures. These different products are targeting toward different groups based on decisions resulting from the process of...
answer
market segmentation
question
At one point in time, Kodak had a very flat level of sales revenue. The CEO did not like the no-growth results and instead forecasted an increase in sales revenue based on new plans and actions. The difference between the existing flat level of sales revenue and the increased level is known as the...
answer
planning gap
