mkt 320f – Flashcard

question

Magazine advertisement: “Your well being is important to us. It’s our commitment to The Greater Good.” – What kind of orientation?
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societal
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Company website: “We realize it is a privilege for our products to be invited into our customers’ homes and we strive to exceed their expectations. State-of-the-art worldwide physical testing labs allow us to continually analyze the quality of our raw materials, construction methods, and finished products.” – What kind of orientation?
answer

Product-oriented
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Company profile: “Our products are sold in more than 35 markets around the world and our global independent sales force exceeds 2 million.” – What kind of orientation?
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Sales-oriented
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Mission statement: “Continuing the founder’s legacy of commitment to consumers, community and children, we provide high-quality products while conducting our business in a socially responsible and environmentally sustainable manner.”- What kind of orientation?
answer

Societal
question

Company website: “Confidence isn’t just a word to us. Strengthening your confidence so you can achieve your goals is our first priority, and the reason millions of consultants have achieved success on their own terms.” What kind of orientation?
answer

Sales-oriented
question

Which marketing management philosophy focuses on the question, “What do customers want and need?”
answer

Market
question

A company that wants to implement a market orientation would need to:
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implement actions that provide value to customers. establish and maintain mutually satisfying relationships with customers. determine how to deliver superior customer value. do research on its customers, competitors, and markets.
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_____ is defined as the relationship between benefits and the sacrifice necessary to obtain those benefits.
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Customer value
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_____ is a strategy that focuses on keeping and improving relationships with current customers.
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Relationship marketing
question

A business is concerned with many day-to-day activities. Some of the most important of these activities are the planning and development of a product, its ability to communicate value, its pricing policy, and the distribution strategy. These activities are all a part of:
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marketing.
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Earl is starting a new bank. Before the opening day, Earl had a meeting with all employees. He discussed their mission, defined objectives for the bank for the coming years, and shared who their target market is. He talked about their product offerings and where their future branches would be located. Earl is sharing the bank’s:
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marketing plan.
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A firm that wants to develop a deeper understanding of its customers may optimize profitability, revenue, and customer satisfaction by focusing on highly defined and precise customer groups. This is _____:
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customer relationship management.
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A _____ is a study conducted by an organization to identify its internal strengths and weaknesses and also examine external opportunities and threats.
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situation analysis
question

Coca-Cola vending machines are found all over the world. The newest machines have an interactive screen that runs advertisements and allows users to obtain free photos of themselves and ringtones after they have bought a drink. Critics of these new vending machines are concerned that entertaining technology is being used to market sugary products. In terms of a SWOT analysis, this concern would be an example of a(n):
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threat.
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Walmart realizes a _____ using its relationships with suppliers to give customers low prices and good customer service.
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cost competitive advantage
question

Arizona Tea is marketed by Vultaggio & Sons. Vultaggio & Sons took a basic drink and put it into unusual bottles with elaborate designs. The wide-mouthed, long-necked bottles are now considered to be trendsetters in the new age beverage industry, and customers often buy the tea just for the bottle. The success of Arizona Tea is based on:
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a product differentiation competitive advantage.
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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
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exchange
answer

people giving up something in order to receive something else they would rather have
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production orientation
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a philosophy that focuses on the internal capabilities of the firm rather than on the desires and needs of the marketplace
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sales orientation
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the belief that people will buy more goods and services if aggressive sales techniques are used and that high sales result in high profits
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marketing concept
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the idea that the social and economic justification for an organization’s existence is the satisfaction of customer wants and needs while meeting organizational objectives
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market orientation
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a philosophy that assumes that a sale does not depend on an aggressive sales force but rather on a customer’s decision to purchase a product; it is synonymous with the marketing concept
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societal marketing orientation
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the idea that an organization exists not only to satisfy customer wants and needs and to meet organizational objectives but also to preserve or enhance individuals’ and society’s long-term best interests
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customervalue
answer

therelationshipbetweenbenefitsand the sacrifice necessary to obtain those benefits
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customersatisfaction
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customers’evaluationofa good or service in terms of whether it has met their needs and expectations
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relationship marketing
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a strategy that focuses on keeping and improving relationships with current customers
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empowerment
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delegation of authority to solve customers’ problems quickly—usually by the first person the customer notifies regarding a problem
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teamwork c
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collaborative efforts of people to accomplish common objectives
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customer relationship management (CRM)
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a company-wide business strategy designed to optimize profitability, revenue, and customer satisfaction by focusing on highly defined and precise customer groups
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on-demand marketing
answer

delivering relevant experiences, integrated across both physical and virtual environments, throughout the consumer’s decision and buying process
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Shrinking middle class
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Threat
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Introducing new, lower-priced products to the market
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Neither opportunity or threat
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Customers moving to higher and lower-priced products
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Both opportunity/threat
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P&G has a lot of brands in the marketplace at different price points
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Neither opportunity or threat
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Competitors are starting to introduce lower-priced options into the market
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Threat
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Some customer segments are interested in spending more money on new products in the personal care category
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opportunity
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Marketers can control the external environment in which their organizations operate.
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false
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Marketers need a thorough understanding of the laws established by the federal government, state governments, and regulatory agencies.
answer

true
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Which of the following statements best describes the typical target market?
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Target markets change over time as consumers drop in or out of the market, and as tastes change.
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The external environment:
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must be continually monitored by marketing managers.
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Americans’ core value of upward mobility (i.e., success will come to anyone who works hard) has greatly influenced the way luxury goods are marketed. This phenomenon is an example of a(n) _____ factor.
answer

social
question

The steps of the consumer decision-making process, in order, are:
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need recognition, information search, evaluation of alternatives, purchase, postpurchase behavior
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All of the following factors directly influence consumers’ level of involvement in the purchase process EXCEPT: consumer’s age social visibility of the purchased item perceived risk of negative consequences as a result of the purchase previous experience with the product financial risk associated with the product
answer

consumer’s age
question

Company X sells their products exclusively to companies in the Y market. In estimating demand from their business customers, Company X must understand that this demand is actually _____________, which means that the demand for industrial products and services is driven by demand for consumer products and services.
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derived demand
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consumer behavior
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processes a consumer uses to make purchase decisions, as well as to use and dispose of purchased goods or services; also includes factors that influence purchase decisions and product use
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value
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a personal assessment of the net worth one obtains from making a purchase, or the enduring belief that a specific mode of conduct is personally or socially preferable to another mode of conduct
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perceived value
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the value a consumer expects to obtain from a purchase
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utilitarian value
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a value derived from a product or service that helps the consumer solve problems and accomplish tasks
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hedonic value
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a value that acts as an end in itself rather than as a means to an end
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consumer decision-making process
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a five-step process used by consumers when buying goods or services
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need recognition
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resultofanimbalancebetweenactual and desired states
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want
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recognition of an unfulfilled need and a product that will satisfy it
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stimulus
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any unit of input affecting one or more of the five senses: sight, smell, taste, touch, hearing
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internal information search
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the process of recalling past information stored in the memory
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external information search
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the process of seeking information in the outside environment
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nonmarketing-controlled information source
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a product information source that is not associated with advertising or promotion
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marketing-controlledinformationsource
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a product information source that originates with marketers promoting the product
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evoked set (consideration set)
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a group of brands resulting from an information search from which a buyer can choose
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cognitivedissonance
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innertensionthataconsumer experiences after recognizing an inconsistency between behavior and values or opinions
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involvement
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the amount of time and effort a buyer invests in the search, evaluation, and decision processes of consumer behavior
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business marketing (industrial, business- to-business, B-to-B, or B2B marketing)
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the marketing of goods and services to individuals and organizations for purposes other than personal consumption
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business product (industrial product)
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a product used to manufacture other goods or services, to facilitate an organization’s operations, or to resell to other customers
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consumer product
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a product bought to satisfy an individual’s personal wants or needs
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Content marketing
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a strategic marketing approach that focuses on creating and distributing content that is valuable, relevant and consistent.
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strategic alliance (strategic partnership)
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a cooperative agreement between business firms
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relationship commitment
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a firm’s belief that an ongoing relationship with another firm is so important that the relationship warrants maximum efforts at maintaining it indefinitely
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trust
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the condition that exists when one party has confidence in an exchange partner’s reliability and integrity
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keiretsu
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a network of interlocking corporate affiliates
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original equipment manufacturers (OEMs)
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individuals and organizations that buy business goods and incorporate them into the products they produce for eventual sale to other producers or to consumers
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North American Industry Classification System (NAICS)
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a detailed numbering system developed by the United States, Canada, and Mexico to classify North American business establishments by their main production processes
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derived demand
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the demand for business products
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joint demand
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the demand for two or more items used together in a final product
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multiplier effect (accelerator principle)
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phenomenon in which a small increase or decrease in consumer demand can produce a much larger change in demand for the facilities and equipment needed to make the consumer product
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business-to-business online exchange
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an electronic trading floor that provides companies with integrated links to their customers and suppliers
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reciprocity
answer

apracticewherebybusiness purchasers choose to buy from their own customers
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majorequipment(installations)
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capital goods such as large or expensive machines, mainframe computers, blast furnaces, generators, airplanes, and buildings
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accessory equipment
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goods, such as portable tools and office equipment, that are less expensive and shorter-lived than major equipment
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raw materials
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unprocessed extractive or agricultural products, such as mineral ore, lumber, wheat, corn, fruits, vegetables, and fish
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component parts
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either finished items ready for assembly or products that need very little processing before becoming part of some other product
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processed materials
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products used directly in manufacturing other products
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supplies
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consumable items that do not become part of the final product
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business services
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expense items that do not become part of a final product
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buying center
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all those people in an organization who become involved in the purchase decision
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new buy
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a situation requiring the purchase of a product for the first time
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modified rebuy
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a situation in which the purchaser wants some change in the original good or service
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straight rebuy
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a situation in which the purchaser reorders the same goods or services without looking for new information or investigating other suppliers
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target market
answer

a group of people or organizations for which an organization designs, implements, and maintains a marketing mix intended to meet the need of that group, resulting in mutually satisfying exchanges
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environmental management
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when a company implements strategies that attempt to shape the external environment within which it operates
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component lifestyles
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the practice of choosing goods and services that meet one’s diverse needs and interests rather than conforming to a single, traditional lifestyle
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demography
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the study of people’s vital statistics, such as age, race and ethnicity, and location
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Millennials
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people born between 1979 and 1994
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Generation X
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people born between 1965 and 1978
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baby boomers
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people born between 1946 and 1964
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purchasing power a
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a comparison of income versus the relative cost of a standard set of goods and services in different geographic areas
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inflation
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a measure of the decrease in the value of money, expressed as the percentage reduction in value since the previous year
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recession
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a period of economic activity characterized by negative growth, which reduces demand for goods and services
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basic research
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pure research that aims to confirm an existing theory or to learn more about a concept or phenomenon
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applied research
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research that attempts to develop new or improved products
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Consumer Product Safety Commission (CPSC)
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a federal agency established to protect the health and safety of consumers in and around their hom
question

Food and Drug Administration (FDA)
answer

a federal agency charged with enforcing regulations against selling and distributing adulterated, misbranded, or hazardous food and drug products
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Federal Trade Commission (FTC)
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a federal agency empowered to prevent persons or corporations from using unfair methods of competition in commerce
question

What are the twin pillars of marketing?
answer

segmentation, differentiation
question

Why is targeting a specific group of customers usually more successful than trying to appeal to everyone?
answer

It will satisfy the segment’s specific needs
question

A nationwide restaurant chain that varies its menu based on its location is an example of what kind of segmentation:
answer

Geographic
question

Clear Channel owns hundreds of radio stations across the U.S. How do they decide what kind of music to play on a particular station?
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Demographic
question

Procter & Gamble markets six different brands of laundry detergent, each targeting a different market segment. This is an example of concentrated targeting. T/F
answer

false
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Deciding who to target is the first step in market segmentation. T/F
answer

false
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“One-size-fits-all” marketing is largely out of date. T/F
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true
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There are a number of detergents marketed under the Tide brand, including detergents with and without fabric softener, with and without bleach, with various pleasing smells, and fragrance-free formulations. These detergents are an example of Tide’s:
answer

product line.
question

Tortilla chips are most likely _____ products, since they are purchased with little shopping effort.
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convenience
question

NestlĂ©’s quest is to make some of its existing products more nutritious and provide a health benefit. This is an example of which type of product modification?
answer

Functional
question

A regional utility company needs to change consumers’ perceptions of its current service as being harmful to the environment. Which of the following strategies would best allow the company to accomplish this goal?
answer

Repositioning
question

The first stage of the new-product development process is:
answer

establishing the new-product strategy
question

During which stage of the process does the marketer lead the preliminary analysis and calculations for demand, cost, sales, and profitability?
answer

Developing a business analysis
question

A manufacturer of office furnishings is finding it difficult to compete with cheaper imported merchandise. Which of the following is a potential source of new product ideas that would allow it to compete more effectively? The company’s employees Its foreign competitors Customers who have requested its catalogs R&D All of these
answer

all of these
question

In the adopter categories, the final 16 percent to adopt are similar to innovators in that they do not rely on the norms of the group but are independent because they are bound to tradition. They tend to have the lowest socioeconomic status, are suspicious of new products, and are alienated from a rapidly advancing society. They are called:
answer

laggards.
question

All of the following are product characteristics influencing the rate of adoption EXCEPT: compatibility. distribution. observability. complexity. relative advantage.
answer

distribution
question

Which of the following is not one of the stages of the product lifecycle?
answer

New product strategy stage
question

Profits typically reach their peak during the growth stage of the product life cycle. T/F
answer

true
question

Services tend to exhibit more search qualities than do tangible goods. T/F
answer

false
question

Which of the following is NOT one of the four unique elements to services?
answer

Incoherency
question

Which of the following services would be most likely to exhibit strong credence qualities?
answer

Tax return preparation
question

All of the following are benefits of supply (value) chain management EXCEPT: key means of differentiation for a firm. reduces supply chain costs. improves customer service. decreases cash flow. increases flexibility of supply chain activities.
answer

decreases cash flow
question

All of the following are logistics components of the supply chain EXCEPT: inventory control. production scheduling. order processing. warehousing and materials-handling. trade promotions.
answer

trade promotions
question

Which of the following is the inventory control system that manages the replenishment of raw materials, supplies, and components from the supplier to the manufacturer?
answer

Materials requirement planning (MRP)
question

______ within the marketing channel can provide efficiencies and economies of scale as channel members take on tasks that best utilize their expertise or strategic relationships.
answer

Specialization or Division of labor
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The three basic functions channel intermediaries perform are:
answer

transactional, logistical, and facilitating.
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One configuration of a marketing channel entails producers selling to consumers without any intermediaries in the channel. This is called a(n)
answer

direct channel.
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________ is a form of distribution aimed at having a product available in every outlet where target customers might want to buy it.
answer

Intensive
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_____ use another manufacturer’s already established channel and are used most often when the creation of marketing channel relationships may be expensive and time-consuming.
answer

Strategic channel alliances
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______ is a clash of goals and/or methods that occurs between different levels in a marketing channel, most typically between the manufacturer and wholesaler or between the manufacturer and retailer.
answer

Vertical conflict
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market
answer

people or organizations with needs or wants and the ability and willingness to b
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market segment
answer

a subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs
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market segmentation
answer

the process of dividing a market into meaningful, relatively similar, and identifiable segments or groups
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segmentationbases(variables)
answer

characteristicsof individuals, groups, or organizations
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geographic segmentation
answer

segmenting markets by region of a country or the world, market size, market density, or climate
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demographic segmentation
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segmenting markets by age, gender, income, ethnic background, and family life cycle
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family life cycle (FLC)
answer

a series of stages determined by a combination of age, marital status, and the presence or absence of children
question

psychographicsegmentation
answer

segmenting markets on the basis of personality, motives, lifestyles, and geodemographics
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geodemographicsegmentation
answer

segmenting potential customers into neighborhood lifestyle categories
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benefit segmentation
answer

the process of grouping customers into market segments according to the benefits they seek from the product
question

usage-rate segmentation
answer

dividing a market by the amount of product bought or consumed
question

80/20 principle
answer

a principle holding that 20 percent of all customers generate 80 percent of the demand
question

satisficers
answer

business customers who place an order with the first familiar supplier to satisfy product and delivery requirements
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optimizers
answer

business customers who consider numerous suppliers (both familiar and unfamiliar), solicit bids, and study all proposals carefully before selecting one
question

target market
answer

a group of people or organizations for which an organization designs, implements, and maintains a marketing mix intended to meet the needs of that group, resulting in mutually satisfying exchanges
question

undifferentiated targeting strategy
answer

a marketing approach that views the market as one big market with no individual segments and thus uses a single marketing mix
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concentratedtargetingstrategy
answer

a strategy used to select one segment of a market for targeting marketing efforts
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niche
answer

one segment of a market
question

multisegmenttargetingstrategy
answer

a strategy that chooses two or more well-defined market segments and develops a distinct marketing mix for each
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cannibalization
answer

a situation that occurs when sales of a new product cut into sales of a firm’s existing products
question

positioning
answer

developing a specific marketing mix to influence potential customers’ overall perception of a brand, product line, or organization in general
question

position
answer

the place a product, brand, or group of products occupies in consumers’ minds relative to competing offerings
question

productdifferentiation
answer

apositioning strategy that some firms use to distinguish their products from those of competitorw
question

perceptual mapping
answer

a means of displaying or graphing, in two or more dimensions, the location of products, brands, or groups of products in customers’ minds
question

repositioning
answer

changingconsumers’perceptions of a brand in relation to competing brands
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brand
answer

a name, term, symbol, design, or combination thereof that identifies a seller’s products and differentiates them from competitors’ products
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brand name
answer

that part of a brand that can be spoken, including letters, words, and numbers
question

brand mark
answer

the elements of a brand that cannot be spoken
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brand equity
answer

the value of a company or brand name
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global brand
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a brand that obtains at least a one- third of its earnings from outside its home country, is recognizable outside its home base of customers, and has publicly available marketing and financial data
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brand loyalty
answer

consistent preference for one brand over all others
question

manufacturer’s brand
answer

the brand name of a manufacturer
question

private brand
answer

a brand name owned by a wholesaler or a retailer
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captive brand
answer

a brand manufactured by a third party for an exclusive retailer, without evidence of that retailer’s affiliation
question

individualbranding
answer

usingdifferentbrand names for different products
question

familybranding
answer

marketingseveraldifferent products under the same brand name
question

co-branding
answer

placing two or more brand names on a product or its package
question

trademark
answer

the exclusive right to use a brand or part of a brand
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service mark
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a trademark for a service
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generic product name
answer

identifies a product by class or type and cannot be trademarked
question

The two major categories of communications are:
answer

mass and interpersonal.
question

When Castrol Syntec, a premium motor oil, sought a new way to reach its young, car-passionate audience, the brand found its mark with video games. In its first-ever attempt at in-game advertising, Castrol Syntec found a way to show consumers (in a virtual world) the brand’s power and performance. In the communication process, the game served as a(n) _____ for transmitting the message.
answer

channel
question

Innovyx is an email marketing service provider. It has a new ad campaign aimed at changing negative perceptions of email. The ads explain how much cheaper email advertising is than traditional advertising and what a high return on investment it can generate if used properly. Finally, the message ends by suggesting that companies wanting to promote their products give email a chance to show what it can do. This promotion has the task of:
answer

persuading.
question

M&M’s famous slogan, “Melts in your mouth, not in your hand,” is an example of a(n):
answer

unique selling proposition.
question

Which type of consumer sales promotion rewards loyal consumers for making multiple purchases of a particular good or service?
answer

A frequent buyer program
question

Angela and Dominic own Cincy by the Slice pizzeria. They are interested in keeping track of the number of mentions their store receives on sites like Twitter and Facebook, but they are unsure of which steps to take next. Which of the following resources would best meet their needs?
answer

A listening platform with key word report capabilities
question

Cutting costs is the best way to maximize profitability. T/F
answer

false
question

Willingness to pay is a way to measure demand elasticity. T/F
answer

true
question

Assume a firm sells 1M units of its product for $10 and has a 30% gross profit margin ($3). Cutting the price to $9.50 might stimulate unit sales by 10%. Will the assumed increase in sales volume offset the decrease in margin?
answer

No, the increase in sales will not offset the decrease in margin.
question

Which of the following statements about yield management systems (YMS) is true? YMS are complex pricing systems used to set equilibrium pricing points. YMS are mathematically complex systems to make use of underutilized capacity and reduce the cost of perishability. YMS eliminate the problem of simultaneous production and consumption from services. The first use of YMS was in the U.S. car industry as it looked for ways to compete with imports. YMS cannot be used by any other businesses but services.
answer

YMS are mathematically complex systems to make use of underutilized capacity and reduce the cost of perishability.
question

Although many factors can influence price, the primary determinants are:
answer

the demand for the good and the cost to the seller.
question

With value-based pricing:
answer

the firm is both customer driven and competitor driven.
question

Imagine that you are planning a fund raising party for after the symphony, and you need a life-size grand piano cake. Or, you are a developer proposing a new shopping center to a group of investors, and you want to serve a cake shaped like an architectural rendition of the center. Is this impossible? No, you just need to contact Cecilia Villaveces Cakes. She actually built a life-size grand piano for a gala in Macon, Georgia. You can expect to pay anywhere from $75 to $10,000 for one of Cecilia’s artistic creations, depending on complexity of design and size. She uses only the best ingredients, and no two cakes are ever quite alike. Although many factors determine the prices charged by Cecilia Villaveces Cakes, the two primary determinants are:
answer

the demand for the good and the cost to the seller.
question

To help understand why attendance at the team’s games was so poor, the Atlanta Falcons used marketing research to gather factual information. The organization used in-game surveys and end-of-season surveys of ticket holders. The gathering of factual statements is an example of marketing research in its _____ role.
answer

descriptive
question

Through marketing research, the Boston Symphony Orchestra (BSO) learned it has an older market and is not attracting younger concertgoers. It next conducted marketing research to determine if a social media advertising and engagement campaign they were considering that would be targeted to the younger market would be successful. In its second use of research, BSO employed _____ marketing research.
answer

predictive
question

The first step in the marketing research process is to:
answer

identify and formulate the problem/opportunity to be studied.
question

Post Properties is a company that manages apartments in various communities. It is concerned with a glut of apartments in Atlanta, Orlando, and Dallas. Its market researcher begins by examining the rental markets in the Southeast, the history of apartment buildings, local economies, competitive rents, and ownership—all information that was on hand and did not require any new research to locate. The market researcher looked at:
answer

secondary data.
question

_____ specifies the research questions to be answered, how and when the data will be gathered, and how the data will be analyzed.
answer

The research design
question

The most popular method for gathering primary data is _____, in which a researcher interacts with people to obtain facts, opinions, and attitudes.
answer

survey research
question

_____ research is the study of human behavior in its natural context, involving observation of behavior and physical setting.
answer

Ethnographic
question

In a study whose purpose is to determine the market for a vitamin that is to be chewed like bubble gum, what is the first question to be answered before a sampling plan is selected?
answer

What is the population or universe of interest?
question

An intelligence system that helps managers assess their competition and vendors in order to become more efficient and effective competitors is called:
answer

competitive intelligence.
question

A carefully selected group of consumers who agree to participate in an ongoing online dialogue with a particular corporation is known as a(n):
answer

web community.

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