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Intro to Marketing Midterm

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The purpose of market segmentation is to respond more effectively to the wants of group of potential buyers in order to…
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increase sales and profits
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Which of the following is an example of a single product with multiple market segments?
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Johnson’s Baby Oil is advertised as a skin softener for babies and as a makeup remover for women
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Synergy is the increased customer value achieved through
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Performing organizational functions more efficiently.
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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?
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Develop a market-product grid and estimate size of markets.
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Which of the following is a criterion used in forming market segments?
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There is the potential of marketing action to reach a particular segment.
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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?
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Psychographic
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On a traditional market-product grid, the horizontal axis represents ______ and the vertical axis represents ______.
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market segments; product groupings
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Which of the following is a criterion used for selecting a target market segment?
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expected growth
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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 ________.
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NAICS code; number of employees
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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?
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behavioral segmentation
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The process of defining a marketing problem and opportunity, systematically collecting and analyzing information, and recommending actions is referred to as
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marketing research
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When following the five-step marketing research approach, developing the research plan is the ____ step.
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2nd
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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…
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statistical inference
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The best way to find information that is specific to the problem being studied is to…
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collect primary data
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Queries, internal and external databases, and models are all key elements of…
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information technology
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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…
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sensitivity analysis
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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.
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database mining
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The last step in the marketing research approach is to…
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take marketing actions
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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…
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lost-horse forecasting
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Extending a pattern observed in past data into the future is referred to as…
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trend extrapolation
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The 5 steps to marketing research:
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Define the problem, develop research plan, collect relevant information, develop findings, take marketing actions
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Research that provides ideas about a relatively vague problem.
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exploratory research
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Research that tries to find the frequency the something occurs and the extent of a relationship between 2 factors.
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descriptive research
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Research that tries to determine the extent to which the change in one factor changes another one.
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causal research
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Restrictions placed on potential solutions to a problem.
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constraints
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Facts and figures that have already been recorded.
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Secondary data
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Facts and figures that are newly collected for a project.
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Primary data
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Advantages of secondary data…
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Saves time, low cost
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Disadvantages of secondary data…
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May be out of date, may not be specific enough
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Pose a customers and observe behaviors.
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Mystery shoppers
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Personal methods used to collect data:
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Mystery shoppers, videotaping
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Where the ocean of data is collected and stored.
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Data warehouse
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Advantages of primary data…
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more timely and specific to the problem being studied
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Disadvantages of primary data
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more costly and time consuming
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Aggregating prospective buyers into groups or segments, that (1) have common needs and (2) will respond similarly to a marketing action.
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Marketing segmentation
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When do firms decide to use marketing segmentation?
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When it expects that it will increase sales, profits, and return on investment
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The increased customer value achieved through performing organizational functions more efficiently.
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Organizational synergy
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Steps in segmenting and targeting markets
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group potential buyers into segments, group products sold into categories, develop a market-product grid and estimate size of markets, & select target markets
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Framework to relate the market segments of potential buyers to products offered or potential marketing actions by an organization.
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Market-product grid
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Criteria used in selecting the target segments:
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market size, expected growth, competitive position, cost of reaching the segment, compatibility with the organizations objectives and resources
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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…
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Identify any unmet needs of students when they studied.
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Who does marketing affect?
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All individuals, organizations, industries, and countries.
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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?
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You have to check your wallet to see if you have sufficient cash (or credit) to purchase the magazine.
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Which of the following groups would be the most likely target market for the Toyota Highlander fuel SUV?
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People who want to drive fuel-efficient SUVs.
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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?
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Regulatory
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During the _____ era in U.S. business history, the primary function of the Pillsbury Company was to mill quality flour.
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production
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Social responsibility refers to…
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the belief that organizations are accountable to a larger society for their actions.
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Entities such as manufacturers, retailers, and government agencies that buy goods and services for their own use or for resale are referred to as
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organizational buyers
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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.
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form
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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 _____.
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pricing issues
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Ben & Jerry’s is founded on and dedicated to a sustainable corporate concept of linked prosperity. Their mission statement consist of 3 interrelated parts:
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product, economic, and social
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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:
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profit
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The concept of sustainable development asks a country to meet present needs without…
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compromising the needs of future generations
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Medtronic is the world leader in producing and marketing heart pacemakers and other medical devices. All of the following are stakeholders of Medtronic EXCEPT:
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retailers
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Organizational strategies vary in at least 2 significant ways. These include by ___ and by ___
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level; offering
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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…
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market growth rate
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Market penetration refers to the marketing strategy of…
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increasing sales of current products in current markets
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Diversification refers to the marketing strategy of…
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developing new products and selling them in new markets
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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…
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market segmentation
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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…
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planning gap