MKTG 361 Exam 1

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Marketing Mix or 4 P’s:
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Product Price Place Promotion
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Core Aspects of Marketing:
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-Marketing helps create value -Marketing affects various stakeholders -Marketing can be performed by both individuals and organizations -Marketing is about satisfying customer needs and wants -Marketing entails an exchange -Marketing requires product, price, place, and promotion decisions
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The American Marketing Association states that:
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marketing is the activity, set of institutions, and processes for creating, capturing, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.
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The marketing plan is broken down into various components-
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how the product or service will be conceived or designed, how much it should cost, where and how it will be promoted, and how it will get to the customer.
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Which of the following is not a core aspect or marketing? a)Marketing requires product, price place and promotion decisions b)Marketing helps create value c)Marketing entails an exchange d)Marketing mush occur in a specific setting
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d)Marketing mush occur in a specific setting
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Of the 4 P’s, _____ is whatever the buyer gives up in exchange for product–for example, money, time, or energy.
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Price
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Importance of Marketing:
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-Can be entrepreneurial -Expands global presence -Pervasive across channel members -Enriches society
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For which of the following reasons is marketing considered important? -Marketing lowers the cost of developing a new product -Virtually every person and organization is involved in marketing -Advertising is loved by everyone -Marketing expands global presence
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-Virtually every person and organization is involved in marketing -Marketing expands global presence
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Typical Supply Chain Order:
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1. Supplier of raw materials 2. Manufacturer 3. Retailer selling finished goods
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Promotion:
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Communicating Value
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Place:
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Delivering Value
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Product:
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Creating Value
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Price:
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Capturing Value
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Ideas:
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include thoughts, opinions, and philosophies; intellectual concepts such as these can also be marketing. Groups promoting bicycle safety go to schools, give talks, and sponsor bike helmet poster contests for members of their primary market–children. Then their secondary target market segment, parents and siblings, gets involved through their interactions with the young contest participants.
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Services:
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intangible customer benefits that are produced by people or machines and cannot be separated from the producer
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______ is the component of the four P’s of marketing that is used by marketers to inform, persuade, and reminds potential buyers about a product or service to influence their opinions and produce a response.
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Promotion
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_______ is the part of the marketing mix that aims at creating value by providing features and benefits that meet consumers’ needs.
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Product
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Identify all of the areas where Marketing may have a positive impact: -enriches society -can be entrepreneurial -production afterthought -expand global presence
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-enriches society -can be entrepreneurial -expand global presence
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What were the primary characteristics of the market-oriented era? -Consumers had to purchase products of inferior quality -Products were designed to focus on consumers’ needs -It was a buyer’s market -It was a seller’s market -Consumers had a limited range of products from which to choose
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-Products were designed to focus on consumers’ needs -It was a buyer’s market
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In the marketing mix, value is communicated to the consumer by which elements of the 4Ps?
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Promotion
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A product can be broken down into services, ideas, and goods. What are goods?
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Items you can personally touch
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A _______ is any INTANGIBLE offering that involves a performance, or any effort by the provider, that cannot be physically possessed.
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service
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Nike and Reebok, primarily make athletic shoes, select the different ways these firms add value to their products: -by offering customer designs under its brand -copying designs from competitors -by enlisting popular celebrities to endorse their designs -manufacturing in China with cheap labor
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-by offering customer designs under its brand -by enlisting popular celebrities to endorse their designs
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Firms marketing directly to each other are participating in business-to-__________ marketing.
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business
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Nike allows customers to design their own sneakers, which improves the value customers see in the brand. This is an example of _________.
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value co-creation
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When consumers market products, it is known as ________ marketing.
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C2C
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A core aspect of marketing, borrowed from economics, includes a(n) ___________, which is a transaction in which things of value are traded by buyers and sellers.
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exchange
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Which of the following are related to marketing in the production-oriented era? -Retailers were considered places to hold inventory until it was sold -Manufacturers were concerned with product innovation, not with satisfying the needs of the individual -Personal selling was used to market products -There was an excess supply of product, and the consumer was the king
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-Retailers were considered places to hold inventory until it was sold -Manufacturers were concerned with product innovation, not with satisfying the needs of the individual
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Production-Oriented Era: Henry Ford, the founder of Ford Motor Company, once famously remarked,
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“Customers can have any color they want so long as it’s black.”
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Turn of the Century: 1920: 1950: 1990:
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Turn of the century-1920:Production 1920-1950: Sales 1950-1990: Marketing 1990: Value-based
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Which of the following are characteristics Marketers seek in potential customers: -selling the product to every customer -customers who have an interest in the products -customers who have an ability to buy the products or services
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-customers who have an interest in the products -customers who have an ability to buy the products or services
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Why is a strong supply chain important?
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It helps to get merchandise to customers when and where they want it
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Which of the following are members of the supply chain? -Manufacturers -Competitors -Retailers -Advertisers
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-Manufacturers -Retailers
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A ________ plan is a document developed by a company to specify its marketing activities and strategy for a specific period if time.
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marketing
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Marketing is about satisfying ________ and ________.
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needs; wants
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In a _______ orientation, lifetime profitability is more important than the amount of money made during each transaction.
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relational
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The process by which businesses sell to other firms, who then use the goods and services to make other products to sell, is known as business to ________ marketing.
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business
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Value
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reflects the relationship of benefits to costs, or what you get for what you give. In a marketing context, customers seek a fair return in goods and/or services for their hard-earned money and scarce time.
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Production-oriented era:
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Build a good product and it will sell itself
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Sales-oriented era:
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Lots of advertising and personal selling are the keys to success
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Market-oriented era:
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A growing focus on meeting customer needs and wants
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Value-based marketing era:
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There is more to marketing than jut meeting needs and wants; consumers also expect a fair return for the price they pay
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When Frito-Lay makes snacks, the company creates value, and essential parts of this created value are the product’s:
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-taste -brand identity
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Many businesspeople believe that marketing should focus on factors other than financial goals, such as:
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corporate citizenry
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When a toothpaste manufacturer divides the marketplace into smaller targets based on consumers’ ages and habits, this is an example of market ___________.
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segmentation
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Some benefits of staying at a luxury hotel might include: -superior business center -room service -quality -low price
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-superior business center -room service -quality
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Which of the following are examples of consumer costs? -Time -Packaging -Price -Advertising
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-Time -Price
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Getting cash from an ATM is considered a _________ transaction.
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service
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Business-to-business marketing can impact several aspects of business and society. Which of the following factors are affected?
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-Employees -Partners -Customers
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Value-oriented marketers measure the ______ that customers perceive against the cost of their offerings.
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benefit
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In order to compete successfully most firms today have to provide their customers with better ________ than their competitors.
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value
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Most marketers carefully seek customers who have interest in the product they are selling as well as a(n) __________ to buy the product.
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ability
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Value-based marketing firms implement their strategies according to what _______ value.
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customers
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What is the fundamental factor involved in buyer-seller relationships?
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Exchange
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A method of providing additional value to customers by allowing them the opportunity to act as collaborators is known as value ____________.
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cocreation
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Marketing is the activity, set of institutions, and processes that creates, captures, communicates, and ______ value.
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delivers
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________ is one of the elements of the four P’s that embodies all activities essential to get the product to the right customer when and where that customer wants it.
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Place/Placement
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Value-oriented marketers outperform their competition by: -satisfying needs -developing loyalty -paying higher salaries -charging the highest possible prices
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-satisfying needs -developing loyalty
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During the sales-oriented era, firms found an answer to overproduction by extensively employing:
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aggressive selling and TV advertising
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In what chronological sequence did marketing evolve beginning from oldest to most recent?
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1. Production-oriented era 2. Sales-oriented era 3. Marketing-oriented era 4.Value-based marketing era
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Firms become value driven by focusing on which of the following activities? -Balancing customer benefits and costs -Building relationships -Good hiring practices -Paying taxes -Sharing information
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-Balancing customer benefits and costs -Building relationships -Sharing information
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One challenge for companies is to provide products that meet customers’ needs and wants while providing greater value than their _____________.
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competitors
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In a marketing context, customers seek a fair return in goods and/or services for their hard-earned money and scarce time. They are seeking _________ which, reflects the relations of benefits to costs.
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value
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People who organize, operate, and assume the risks of a business venture such as idea creation, production, funding, and market development, are called ____________.
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entrepreneurs
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Which of the four Ps represents all activities necessary to get an offering to the right customer when the customer wants it?
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Place
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Which of the following are components of the price paid by the buyer? -Cultural Imperialism -Energy -Ethical Climate -Time -Money
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-Energy -Time -Money
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Firms achieve operational excellence through which of the following? -Excellent supply chain management -Efficient operations -Strong relationships with suppliers -Focusing on human resources as little as possible
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-Excellent supply chain management -Efficient operations -Strong relationships with suppliers
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In _______ analysis, management evaluates the firm’s various products and businesses, and then allocates resources according to potential profit outlook
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portfolio
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When a company focuses on having _________ excellence it may also focus on having good Internet presence.
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locational
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________ excellence is when a firm focuses on having high perceived value and effective branding and positioning
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Product
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Customer excellence:
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Focuses on retaining loyal customers and excellent customer service
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Operational excellence:
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Achieved through efficient operations and excellent supply chain and human resource management
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Product excellence:
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Having products with high perceived value and effective branding and positioning
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Locational excellence:
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Having a good physical location and Internet presence
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In the _____ step of the five-step marketing planning process, marketers evaluate the situation by assessing how various players, both in and outside the organization, affect the firm’s potential for success
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second
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Planning Phase
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Step 1: Business mission & objectives Step 2: Situation Analysis SWOTT
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Implementation Phase
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Step 3: Identify opportunities (Segmentation, Targeting, Positioning) Step 4: Product, Price, Place, Promotion
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Control Phase
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Step 5: Evaluate performance using marketing metrics
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Five-step marketing planning process:
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Step 1: Business mission and objectives Step 2: Situation Analysis SWOTT Step 3: Identify Opportunities Step 4: Product, Price, Place, Promotion Step 5: Evaluate performance using marketing metrics
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Which of the following are strategies for achieving operational excellence? -Effective branding and positioning -Efficient operations -Loyalty programs -Supply chain management -Excellent customer service
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-Efficient operations -Supply chain management
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A ________ competitive advantage is an advantage over the competition that is not easily copied and can be maintained over a long period of time.
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sustainable
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When conducting a SWOTT analysis, adverse economic conditions and intense competition are examples of potential ______ for firms.
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threats
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A firm can build sustainable competitive advantage:
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when it outperforms competition and through some business activities over a long period of time
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Place is the component of the four Ps responsible for _______ value.
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delivering
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Some commonly used financial performance metrics include:
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sales revenue and profits
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When a company such as Singapore Airlines positions itself as a leader in technology, innovation, quality and _______ service it ensures that its competition will have difficulty meeting its standards. These strategies have helped Singapore Airlines remain profitable even as other airlines struggle to survive.
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customer
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A company that has successfully built a wall around its position in the market, making it hard for competitors outside the wall to enter the market and compete, is an example of a company that has established:
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competitive advantage
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Market share:
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the percentage of a market accounted for by a specific entity, and is used to establish the product’s strength in a particular market
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A firm needs a marketing plan:
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to implement the marketing mix to clearly state its overall objectives to explain how overall objectives will be met
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_______ excellence is when a firm focuses on having high perceived value and effective branding and positioning.
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Product
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Mission statement:
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a broad description of a firm’s objectives and the scope of activities it plans to undertake
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The mission statement attempts to answer what two main questions?
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What type of business are we? What do we need to do to accomplish out goals and objectives?
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Marketers strive for efficient operations to provide their customers with all of the following EXCEPT: The merchandise they want A lower delivered cost than their competitors Low quality products The correct quantity
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Low quality Efficiency is aimed at cost savings and smooth, accurate operations, and ensuring good value to their customers
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Al marketers strive for efficient operations to get their customers the merchandise they want, when they want it, in the required quantities, and at lower delivered cost than their ________.
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competitors
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STP includes which of the following? Segmentation Strengths Pricing Positioning
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Segmentation Positioning
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Three major phases of the marketing plan?
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Planning Implementation Control
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_______ is the only marketing activity that actually brings in money.
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Pricing
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__________ consist of consumers who respond similarly to a firm’s marketing efforts.
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Market segments
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Which of the following are TRUE regarding price? It will not generate much volume if it is too high It may result in lower-than-necessary margins and profits if it is too low It should be based on the value that the customer perceives It should always be based on competitors’ price
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It will not generate much volume if it is too high It may result in lower-than-necessary margins and profits if it is too low It should be based on the value that the customer perceives
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What do “opportunities” represent in SWOTT analysis?
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The positive aspects of the external environment
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Examples of how firms use info from loyalty programs:
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Analyzing buying habits of customers Identifying customers in advance who might stop doing business with the company Tailor their offering to meet the needs of customers
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A marketing strategy:
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outlines what a firm plans to do to appeal to potential customers
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SBU:
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Strategic business unit
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Product line:
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a group of products that consumers may use together or perceive as similar in some way One line of product for Goodyear could be car, van, SUV, and light truck while another line could be high-performance tires or aviation tires.
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What is a strategic business unit?
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An SBU is a division of the firm itself that can be managed and operated somewhat independently from other divisions and may have a different mission or objectives. Ex: Goodyear is one of the largest tire firms in the world, selling its products on six continents in over 180 countries and with sales of approximately $21 billion. Its four SBUs are organized by geography: N American; Europe, Middle East, African; Latin American; and Asia Pacific.
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Which one of the following is true regarding SBUs? The term stands for “segmented business unit” The term refers to parent companies An SBU may have a different mission or objective from other divisions SBUs develop cash stars
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An SBU may have a different mission or objective from other divisions
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A ___________ competitive advantage is an advantage over the competition that is not easily copied and can be maintained over a long period of time
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sustainable
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Market positioning involves the process of defining the marketing mix variables so that target customers:
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clearly understand the product’s unique benefits in comparison with competing products
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In Step 1 of the planning phase, a firm:
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defines the mission and/or vision of the business
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A _______ is a written document that includes the current marketing situation, specified objectives and strategies, action programs, and projected income statements.
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marketing plan
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The macro strategies for developing customer value include each of the following EXCEPT: operational excellence product excellence marketing excellence locational excellence
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marketing excellence
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Firms achieve operational excellence through:
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efficient operations excellent supply chain management strong relationships with suppliers
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Market ________ is the process of dividing the market into groups of customers according to their needs, wants, or characteristics
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segmentation
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Product excellence:
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occurs by having products with high perceived value and effective branding and positioning
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A market development strategy employs the existing product offering to:
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reach new market segments
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A __________ strategy introduces a new product or service to a new market segment, one that currently the firm has not targeted.
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diversification
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Firms consider pursuing various _________ as part of their overall growth strategies
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market segments
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In _______ of the five-step marketing planning process, marketing managers identify and evaluate different opportunities by engaging in a process known as segmentation, targeting, and positioning.
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the third step
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Step 4 of the five-step marketing planning process:
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is the point at which a firm implements the four Ps
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Examples of strengths that might be identified in a SWOT analysis?
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Licensing of a brand Constantly innovating products A strong network of retailers
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Loyalty programs:
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give firms the opportunity to learn more about their customers
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After a firm has identified a group of market segments, it does all of the following EXCEPT: determining which segments to pursue using a process known as targeting evaluating each segment’s attractiveness re-assigning the segments
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re-assigning the segments
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A ________ identifies a firm’s target markets, a related marketing mix, and the bases upon which the firm plans to build a sustainable competitive advantage.
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marketing strategy
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A _____ _____ is a group of products that consumers perceive as similar in some way and that the firm regards as group.
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product line
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Once a marketer has earned a good service reputation, it can sustain this advantage for a long time because:
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a competitor is hard pressed to develop a comparable reputation
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A ______ is a measuring system that quantifies a trend, dynamic, or characteristic
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metric
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A market penetration strategy employs the existing marketing mix and focuses the firm’s efforts on:
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increasing sales to current customers
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Portfolio Analysis:
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Management evaluates the firm’s various products and businesses–its “portfolio”–and allocates resources according to which products are expected to be the most profitable for the firm in the future. Portfolio analysis is typically performed at the strategic business unit (SBU) or product line level of the firm, though managers also can use it to analyze brands or even individual items.
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In portfolio analysis: (select all that apply) -management evaluates the firm’s various products and businesses -management develops the marketing mix for each SBU -firms typically perform it at the SBU or product line level of the firm -management allocates its resources to products with the greets potential to be profitable
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management evaluates the firm’s various products and businesses -firms typically perform it at the SBU or product line level of the firm -management allocates its resources to products with the greets potential to be profitable
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Brand ______ means customers are reluctant to patronize competing firms
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loyalty
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Why do firms use metrics?
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To make it possible to compare results across regions, product lines, and time periods To project the future To explain why things happen
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Customers who continue to buy their coffee at Dunkin’ Donuts even after Starbucks opens more convenient locations and offers lower prices are probably _______ customers.
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loyal
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In portfolio analysis, the ________ measures how attractive a particular market is.
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market growth rate
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Market growth rate:
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annual rate of growth of the specific market in which the product competes
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Stars:
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(upper left quadrant) occur in high-growth markets and are high market share products. That is, stars often require a heavy resource investment in such things as promotions and new production facilities to fuel their rapid growth. As their market growth slows, stars will migrate from heavy users of resources to heavy generators of resources and become cash cows.
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Cash Cows:
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(lower left quadrant) are in low-growth marts but are high market share products. Because these products have already received heavy investments to develop their high market share, they have excess resources that can be spun off to those products that need it. For example, the firm may decide to use the excess resources generated by Brand C to fund products in the question mark quadrant
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Question Marks:
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(upper right quadrants) appear in high-growth markets but have relatively low market shares; thus, they are often the most managerially intensive products in that they require significant resources to maintain and potentially increase their market share. Managers must decide whether to infuse question marks with resources generated by the cash cows, so that they can become stars, or withdraw resources and eventually phase out the products. Brand A, for instance, is currently a question mark, but by infusing it with resources, the firm hopes to turn it into a star.
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Dogs:
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(lower right quadrant) are in low-growth markets and have relatively low market shares. Although they may generate enough resources to sustain themselves, dogs are destines for “stardom” and should be phased out unless they are needed to complement or boost the sales of another product for competitive purposes
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Firms can achieve operational efficiencies by developing which of the following? The most inconsistent distribution and info systems More uniquely segmented markets Superior market positioning Strong relationships with vendors
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Strong relationships with vendors
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At each level of an organization, the ________ should be held accountable only for the revenues, expenses, and profits they can control.
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business unit managers
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The _______ planning process can move back and forth between steps, depending on the situation.
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strategic
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Vendor relations help firms maintain or gain a competitive advantage by all of the following except: -obtaining special terms of purchase not available to competitors -gaining exclusive rights to sell merchandise in a particular region -hiring a vendor’s employees -receiving popular merchandise that might be in short supply
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hiring a vendor’s employees
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_________ evaluations are used to pinpoint problem areas
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Performance
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Value creation means that firms attempt to develop products or services that customers perceive as ________ enough to buy.
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valuable
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A Market Penetration Strategy, as one of the possible growth options, may be achieved by:
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encouraging current customers to patronize the firm and brand more often
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Market penetration strategy:
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employs the existing marketing mix and focuses the firm’s efforts on existing customers. Such a growth strategy might be achieved by attracting new consumers to the firm’s current target market or encouraging current customers to patronize the firm more often or buy more merchandise on each visit.
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Firms are starting to report corporate social responsibility metrics in an effort to:
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help customers feel better about their buying experience be proactive along socially responsible dimensions strengthen their relationships with both local and global suppliers
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A firm can begin to implement the marketing mix IMMEDIATELY after which step?
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it has finished segmentation, targeting, and positioning
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_________ marketing requires firms to charge a price that customers perceive to be a good value for the product
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value-based
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A market penetration strategy generally requires:
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greater marketing efforts, such as increased advertising and additional sales and promotions, or intensified distribution efforts in geographic areas in which the product or service already is sold
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A market _______ growth strategy focuses on increasing sales of the firm’s current products to its current target markets
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penetration
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_________ holds the primary responsibility of enhancing the value of the company’s products for its customers and other constituents
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Marketing
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A firm, particularly a small privately owned business, may set a variety of goals–for example, achieving positive social change, being the most innovative among the competitors, and avoiding high risk levels because:
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not all objectives are profit-driven
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Firms can obtain competitive advantage by:
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reinforcing the brand image through merchandise, service, and promotion
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The process of deciding which specific segment(s) to pursue is known as:
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targeting
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The ________ strategy offers a new product or service to a firm’s current target market
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product development
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Customer excellence is focused on:
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retaining loyal customers and offering excellent customer service
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A marketing plan includes all of the following except: a SWOT analysis a plan on how to pitch to your investors an analysis of the current marketing situation marketing objectives and strategy
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a plan on how to pitch to your investors *this would be part of your business plan
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In the ________ step of the five-step marketing planning process, marketers evaluate the situation by assessing how various players, both in and outside the organization, affect the firm’s potential for success.
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second
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Relative market share is used to provide managers with a product’s:
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relative strength
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Assessing relative levels of sales and profits can be used for all of the following reasons EXCEPT: -to test how sensitive profit is to price changes -to compare a firm’s growth relative to other companies -as an addition to assessing absolute levels of sales and profits -to determine exactly what competitors will do next
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-to determine exactly what competitors will do next
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A competitive advantage based on location:
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is sustainable when real estate is difficult or expensive to obtain
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A Market Penetration Strategy, as one of the possible growth options, may be achieved by which of the following?
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encouraging current customers to patronize the firm and brand more often
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Green marketing efforts and expansion outside the US are potential ________ for a firm
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opportunities
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A firm can begin to implement the marketing mix immediately after what step?
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after it has finished segmentation, targeting, and positioning (STP)
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STP works through each of the following steps except: -position its products and services to meet the needs of the chosen targets -determining which subgroups should be pursued -planning a marketing strategy -dividing the marketplace into subgroups
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planning a marketing strategy
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When a firm decides which segments to pursue, it must determine how it wants to be _______ within those segments
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positioned
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In a SWOT analysis, a firm’s heavy reliance on its joint venture partner when opening new stores may be a potential _________ for the firm
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weakness
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One key to long-term financial performance is to establish a:
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sustainable competitive advantage
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T/F: stakeholders, such as investors and potential investors, would not utilize a marketing plan
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False
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T/F: Possible opportunities for manufacturers include an untapped market, international expansion and growing interest in “green” products
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True
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Select all potential goals of location-based software and applications, as used by marketers: -not to provide customers with additional benefits or insights -educate customers about products they may wish to consider at some future time -offer efficient driving directions -bring a relevant offer to the customer when they are in the process of making a purchase decision
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-educate customers about products they may wish to consider at some future time -offer efficient driving directions -bring a relevant offer to the customer when they are in the process of making a purchase decision
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T/F: the only way to experience a product or service is to actually purchase it
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False
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The first step in the Social Media Engagement Process is known as the ___________ stage
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listen
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Social Media Engagement Process:
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Listen–>Analyze–>Do (LAD)
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Social Media Marketing Campaign:
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1. Identify strategy & goals 2. Target audience 3. Campaign: experiment & engage 4. Budget 5. Monitor & change
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_______ _______ refers to the content districted through social interactions
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social media
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4E framework
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EXCITE customers with relevant offers EDUCATE them about the offering Help them EXPERIENCE products, whether directly or indirectly Give then an opportunity to ENGAGE with their social work
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Identify the benefits Home Shopping Network marketers gained by sponsoring an official HSN channel on YouTube
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-opportunities to target customers who watched specific videos -opportunity for customers to re-view product videos after they are aired -comparisons of video views vs. hourly sales
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Several social media tools are useful in helping marketers to educate potential customers, including: -blogs -Youtube videos -radio ads -in-store displays
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-blogs -YouTube videos
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_________ is a well known social network with over 800 million active users; it allows individuals to connect with others, and gives marketers the ability to carefully target their audiences
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Facebook
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Example scenario where freemium apps are being used by the consumer and generate revenue for the developer:
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In a game of Candy Crush Saga you have lost and will not wait any amount of time to continue and buy lives at $0.99 and immediately continue
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Effective uses of corporate blogs include:
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-connecting and engaging with customers by discussing new products and promotions -educating customers about products and services -developing long term relationships by addressing positive and negative comments
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T/F: All social media tools fall into the category of media-sharing sites
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False Social media tools can also be social network sites or thought-sharing sites
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A ________ differs from a traditional blog in size–it supports short sentences, short videos, and individual images
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microblog
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In the 4Es framework for social media, when attempting to __________ the customer, a firm spends considerable time explaining the benefits and features of the product, and then encourages the customer to offer feedback
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engage
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________ _________ marketing entails educating and communicating product benefits to customers using their computers, tablets, or mobile devices
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social media
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Marketers find personal blogs useful, because they can:
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-track what is going on in the marketplace -get feedback without having to -compensate the blogger -respond to customer concerns and complaints
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Which of the following are reasons why mobile marketing is increasing in importance for marketers? -mobile phone usage is growing -increasingly more mobile apps related to marketing (such as price check apps) are available -relatively few smartphone owners use them to make purchases, so firms need to take steps to encourage them -consumers who use mobile marketing find out more information about products and the products potentially becomes more attractive
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-mobile phone usage is growing -increasingly more mobile apps related to marketing (such as price check apps) are available -consumers who use mobile marketing find out more information about products and the products potentially becomes more attractive
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Which of the following are elements of the 4E framework for effective use of social media by companies? Select as many that apply -Educate customers about offers -Give customers an opportunity to engage with their social network -Encourage customers to explore a wide variety of websites before making choices -Help customers to experience products, whether directly or indirectly -Excite customers with relevant offers
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-Educate customers about offers -Give customers an opportunity to engage with their social network -Help customers to experience products, whether directly or indirectly -Excite customers with relevant offers
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One of the app pricing models is known as __________ apps which charge the customer an upfront price to download the app
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paid apps
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Different kinds of social-media related offers used to excite customers:
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-Information on Groupon used to communicate promotions -Information on Facebook used to communicate deals -Mobile applications used to communicate personalized offers
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How much control do companies have over the content on corporate blogs?
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A high degree of control, since the company chooses the content posted
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When a customer is offering feedback–meaning the customer is taking action to _________ the company–this is an opportunity for the the firm to create a relationship which may result in a loyal commitment from the customer
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engage
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The _______ rate is the frequency with which site visitors leave the site almost as soon as they arrive–perhaps after viewing just one page
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bounce
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Click paths:
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shows how users proceed through information–not in-like how grocery stores try to track the way shoppers move through their sales.
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Conversion rates:
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a measure that indicates what percentage of visitors or potential customers act as the marketer hopes, whether by clicking, buying, or donating.
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Click paths and conversion rates can also reveal what users might have ________, but did not find, at their site
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wanted
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Which of the following is NOT used by marketers when they are relying on social media achieve certain objectives: -get more members -promote themselves and gain more friends -appeal to potential customers -appeal to customers who do not like the site
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appeal to customers who do not like the site
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Identify the 4 different types of pricing models used for apps:
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paid apps with in-app purchases paif apps ad-supported freemium
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Identify the info Facebook uses to target site users to receive particular ads:
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preferences profile info browsing history
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_________ is attempting to take market share from Facebook by attracting the gaming community, adding several online games to its lineup
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Google+
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A photo sharing website provides both companies and consumers an opportunity to participate in what?
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Opportunities to support a particular cause or charity Opportunities for people to share ideas through pictures Opportunities to learn about new places, people and things through pictures
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________ is the total requests for a page
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Hits
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______ measure the number of time a website page is seen by any site visitor
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page views
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Suppose that Taco Bell wants to learn more about how customers feel about new menu items. It collects and analyzes content from several social media sites to assess favorable vs. unfavorable comments and determine customers’ attitudes and preferences. Taco Bel is conducting:
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sentiment analysis
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The first step in planning and executing a social media marketing campaign is to identify:
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goals
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A process called ________ enables customers to scan a product in a store and instantly compare prices online to see whether a better deal is available
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showrooming
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Seven Primary Motivations for Mobile App Usage:
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Self expression: participating in hobbies and interests Discovery: seeking news and info Preparation: planning for upcoming activities Accomplishing: managing finances, health, and productivity Shopping: seeking a product or service “Me Time: seeking relaxation or entertainment (ex: watching a funny vid, reading a gossip website, playing solitaire, or even window shopping for fun) Socializing: interacting with other people
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In the final step of the process to plan and execute a social media marketing campaign, the firm:
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reviews the success of the campaign, making changes if necessary
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Most retail companies will attempt to achieve sustainable competitive advantage by including what features on their websites?
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interactive chat customer reviews in-depth product information
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Which of the following elements are considered traditional ways to market products and services? Television ads Mobile ads Newspaper ads Social networks
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Television ads Newspaper ads (newspaper is considered a traditional mass media element)
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__________ ___________ is a technique that analyzes consumer-generated content from a variety of social media sites, seeking to summarize customer attitudes and preferences
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sentiment analysis
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Which of the following fall into the category of media-sharing sites? Picasa Flicker YouTube Google
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Picasa Flicker YouTube
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If advertising (for ex, on Facebook) is included in a social media campaign, costs are usually based on:
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a set daily budget
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After establish strategy and goals for a social media marketing campaign, the second step is to:
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identify the target audience
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T/F: Both individuals and companies can post videos and sponsor their own YouTube channels
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true
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Understand the types of social media:
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Users of social media employ them to promote themselves or their products and services. They do so through three main categories: social networking sites (e.g., Facebook, LinkedIn), media-sharing sites (e.g., YouTube), and thought-sharing sites (e.g., blogs, Twitter)
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Recognize and use the three components of a social media strategy:
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Firms engage with customers through social and mobile media using a three-step process. First, they listen to the customer using techniques like sentiment analysis. Second, they analyze the data collected in the first step using metrics like bounce rate, click paths, and conversion rates. Finally, they use this information to develop tactics to engage their customers
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Descrive the 4E framework of social media marketing:
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The 4E framework recognizes that marketing must EXCITE the customers with relevant offers; EDUCATE them about the offering; help them EXPERIENCE products, whether directly or indirectly; and give them an opportunity to ENGAGE
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________ blogs are written by people who review and give recommendations on products and services and a re sometimes compensated for doing so
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Professional
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Suppose that your university wants to know how website visitors find the site. The university can use _________ to determine what types of searches people perform that lead them to the university’s site
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keyword analysis
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Consumers tend to least trust which of the following blogs? microblogs corporate professional personal
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corporate
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Which of the following are ethical values that are addressed by the American Marketing Association and subareas within the AMA code of ethics? Promotion Fairness Honesty Disrespect Pricing
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Fairness Honesty
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AMA specific values to which marketers should aspire:
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honesty, responsibility, fairness, respect, openness, and citizenship
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Business ethics refers to:
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moral dilemmas that might arise in a business setting
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An ex of corporate social responsibility is when a firm:
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lessens the negative impact it has on the environment
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In the early days of CSR, it was primarily _____ that were under consideration by government agencies
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products
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Ethical issues related to evaluating performance can arise during the _____ phase of the marketing plan
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control
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Issues that might arise in the process of ethical decision making about consumer research include:
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whether participants in a study are informed of the real purpose whether the collected data will be used to mislead or harm the public the data collection method used
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During the _______ phase of the marketing plan, marketers are identifying potential markets and must consider several ethical issues related to the product or service being delivered
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implementation
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Originally, CSR was predominantly just applied to _______ but now it has expanded in definition and application
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how the firm made its products
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By using the ethical decision-making framework, decision markers are more likely to:
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include the relevant ethical issues evaluate the alternatives choose a course of action that will help them to avoid serious ethical lapses
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Ethical Decision-Making Framework:
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Step 1: identify issues Step 2: gather info and identify stakeholders Step 3: brainstorm and evaluate alternative Step 4: choose a course of action
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The fourth step in ethical decision making is:
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choosing a course of action
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Firms need to have what in order to align personal and corporate goals?
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A system for rewarding and punishing behavior A strong ethical climate A code of ethics
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The ethical dilemma companies face is finding a way to balance:
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shareholder interests with the needs of society
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A firm’s attempt to apply sound, ethical must be a _______ and _______ process
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dynamic; continuous
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Stakeholders can include which of the following? One-off customers Members of the community Employees The government
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Members of the community Employees The government
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In brainstorming alternatives, a firm:
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considers alternative courses of action
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A firm creates a strong ethical climate within a marketing division by having a set of _______ that guides _______.
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values; decision making
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Firms can introduce ethics at the beginning of the planning process by:
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including ethical statements in the firm’s vision statement
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Ethics problems are likely to arise if a firm’s ______ goals do not line up with an employee’s _______ goals
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long-term; short-term
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Ethical issues arise continually as _______ emerge
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new technologies; new markets
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Today, companies are undertaking a wide range of CSR initiative, such as:
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supporting minority activities establishing charitable foundations supporting nonprofit groups
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CSR programs must be designed considering trends in issues of importance to customers. Trends receiving the most current attention include:
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respecting and protecting privacy ensuring healthiness of products
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Advertising practitioners fall between ______ and _____ in terms of general attitudes about the ethical standards of various professions
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congresspeople; lawyers
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Marketers have the opportunity to build _______ because they interact so regularly with people in all areas, not just the corporate world.
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public trust
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If one firm in an industry decides to develop CSR program, its competitors are often forced to:
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develop their own CSR programs
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During the planning phase, a firm can typically address ethical issues at the outset through all of the following except: vision statement credo financial results mission
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financial results
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The most basic form of CSR to employees is:
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to provide a safe working environment
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Top management must commit to _______ an ethical climate; employees must be dedicated to those ethical _______.
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establishing; values
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According to a recent survey, the vast majority of CEOs believe:
answer

that society expects companies to engage in CSR programs
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Inappropriate groups that are not intended to be targeted could be responsive to the firm’s efforts. However, firms _______ target these groups
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should not
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Firms know that many consumers give their business to firms they perceive as socially _______ by stakeholders in order to earn their business
answer

responsible
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Firms must perform the _______ phase from an ethical perspective, and systems must be in place to check whether each potentially ethical issue was successfully addressed
answer

control
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Culture:
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shared meanings, beliefs, morals, values, and customs of a group of people. Transmitted by words, literature, and institutions, culture is passed down from generation to generation and learned over time.
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Country culture:
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the visible nuances of a country’s culture, such as artifacts, behavior, dress, symbols, physical settings, ceremonies, language differences, colors and tastes, and food preferences are easy to spot. But the subtler aspects of country culture generally are ticker to identify and navigate.
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Macro environment:
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various impacts of culture, demographics, and social, technological, economic, and political/legal factors
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Immediate (micro) environment:
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Competition, corporate partners, and company
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Successful marketing firms focus on satisfying customer _____ that match their core competencies. Competencies are the measurable or observable knowledge, skills, abilities, and behaviors (KSABs) critical to successful job performance.
answer

needs
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You participate in many cultures:
answer

Your family has a cultural heritage, so perhaps your mealtime traditions including eating rugelach, a traditional Jewish pastry, or sharing corned beef & cabbage to celebrate your Irish ancestry on St. Patrick’s Day
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Two dimensions of culture that marketers must take into account as they develop their marketing strategies are:
answer

the culture of the country and that of a region within a country
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Regional Culture:
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the region in which people live in a particular country has its own regional culture that affects many aspects of people’s life, including they way they might refer to a particular product category like soft drinks. In the soft drinks market,
question

Demographics:
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indicate the characteristics of human populations and segments, especially those used to identify consumer markets. Typical demographics such as age (which includes generational cohorts), gender, race, and income are readily available from market research firms such as IRI.
question

Generational Cohorts:
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A group of people of the same generation–have similar purchase behaviors because they have shared experiences and are in the same stage of life.
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Members of Gen Z are also known as ______ because people in this group were born into a world that already was full of electronic gadgets and digital technologies such as the Internet and social networks
answer

Digital Natives
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Members of Gen Z are also called Millenials include more than 60 million people in the US alone, born between ____ and ____. As the children of the Baby Boomers, this group is the biggest cohort since the original post WW2 boom. It also varies the most in age, ranging from teenagers to adults who have their own family.
answer

1977; 2000
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Gen X
answer

-1965-1977 -Represent 41 million Americans -Vastly unlike their Baby Boomers parents -Xers are the first generation of latchkey children (those who grew up in homes in which both parents worked) -50% of them have divorced parents
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After WW2 the birthrate in the US rose sharply, resulting in a group known as the _________.
answer

Baby Boomers
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Baby Boomers:
answer

-78 million Americans -1946-1964
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Approximately ____ percent of all population growth in the next 20 years is expected to come from African Americans, Hispanic, and Asian communities.
answer

80
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Minorities now represent approximately _______ of the population; by 2050 they will represent 50 percent, and nearly 30 percent of the population will be Hispanic
answer

one-quarter
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The UN also estimates that approximately ________ people per year will emigrate from less developed nations to the US over the next 40 years
answer

1 million
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Many foreign-born Americans and recent immigrants rend to concentrate in a holdall of ______ areas, such as New York, Los Angeles, San Francisco, and Chicago
answer

metropolitan
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Hispanic buying power is projected to reach #1.3 trillion in 2015, a cumulative increased of around ___ percent compared with 2010.
answer

25
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Hispanics consumer behaviors differs little from that of other groups of Americans. For example:
answer

they use credit cards, are minimally influenced by advertising and product placements, exhibit greater sensitivity to in-store-promotions, and are likely to shop online and from catalogs
question

A key age demographic for many markets is:
answer

18-49 years
question

Social Trends:
answer

Health and wellness concerns Greener consumers Privacy concerns
question

Green marketing:
answer

involves a strategic effort by firms to supply customers with environmentally friendly merchandise *Many consumers, concerned about everything from the purity of air and water to the safety of beef and salmon, believe that each person can make a difference in the environment. For example, nearly half of US adults now recycle their soda bottles and newspapers, and European consumers are even more green. Germans are required by law to recycle bottles, and the European Union does not allow beef raise on artificial growth hormones to be imported.
question

Are consumers willing to pay higher prices for green products? Are firms really interested in improving the environment? Or are they disingenuously marketing products or services as environmentally friendly, with the goal of gaining public approval and sales rather than actually improving the environment? This type of exploitation is common enough that it even has produced a new term:
answer

greenwashing . Consumers need to question whether a firm is spending significantly more money and time advertising being green and operating with consideration for the environment than actually spending these resources on environmentally sound practices
question

Privacy concerns:
answer

More and more consumers worldwide sense a loss of privacy. At the same time that the Internet has created an explosion of accessibility to consumer info, improvements in computer storage facilities and the manipulation of info have led to more and better security and credit check services. Yet controversies still erupt, and some observers suggest hackers are just getting more effective. In 2013, for example, Target suffered a massive security breach that allowed hackers to steal credit and debit card info for 40 million customers, as well as personal info, including phone numbers and addresses, for another 70 million.
question

Placing “cookies” on a user’s computer:
answer

shows them where he or she starts, proceeds, and ends the online encounter as well as what he or she buys and doesn’t.
question

Technological advances:
answer

have accelerated during the past decade, improving the value of both products and services. Consumers have constant access to the Internet everywhere through services such as WiFi, Mobile hotspots, 4G, LTE. Smartphones using the iOS and Android systems allow for greater computing, data storage, and communication. Tablet computers, starting with the iPad, have extended mobile computing even further by offering a larger mobile interface in environments that traditionally have limited access. These examples of advanced technology make consumers increasingly dependent on the help they receive from the providers of technology. Thus Netflix suggests which movies we should watch, Pandora outlines the music we should listen to, and Amazon tells us what we should read.
question

Radio frequency identification device (RFID)
answer

enables it to track an item from the moment it was manufactured, through the distribution system, to the retail store, and into the hands of the final consumer
question

Some major factors that influence the state of an economy include:
answer

the rate of inflation, foreign currency exchange rates, and interest rates
question

Inflation:
answer

refers to the persistent increase in the prices of goods and services. Increasing prices cause the purchasing power of the dollar to decline; in other words, the dollar buys less than it used to.
question

Shifts in the three economic factors make marketing easier for some and harder for others For example, when inflation increases:
answer

consumers probably don’t buy less food, but they may shift their expenditures from expensive steaks to less expensive hamburgers. Grocery stores and inexpensive restaurants win, but expensive restaurants lose. Consumers also buy less discretionary merchandise, though off-price and discount retailers often gain ground at the expense of their full-price competitors
question

Political/Regulatory environment:
answer

comprises political parties, government organizations, and legislation and laws. Organizations must fully understand and comply with with any legislation regarding fair competition, consumer protection, or industry-specific regulation. Since the turn of the century, the government has enacted laws that promote both fair trade and competition by prohibiting the formation of monopolies or alliances hat would damage a competitive marketplace, fostering fair pricing practices for all suppliers and consumers.
question

1890 Sherman Antitrust Act:
answer

prohibits monopolies and other activities that would restrain trade or competition and makes fair trade within a free market a national goal
question

1914 Clayton Act:
answer

supports the Sherman Act by prohibiting the combination of two or more competing corporations through pooling ownership of stock and restricting pricing policies such as price discrimination, exclusive dealing, and tying clauses to different buyers
question

1936 Robison-Patman Act
answer

specifically outlaws price discrimination toward wholesales, retailers, or other producers and requires sellers to make ancillary services or allowances available to all buyers on proportionately equal terms
question

Regulations require marketers to abstain from false or misleading advertising practices that might mislead consumers, such as:
answer

claims that a medication can cure a disease when in fact it causes other health risks.
question

Manufacturers are required to refrain from using any harmful or hazardous materials (e.g., lead in toys) that place a consumer at:
answer

risk
question

Organizations must adhere to fair and reasonable business practices when they communicate with
answer

consumers Ex: they must employ reasonable debt collection methods and disclose any finance charges, and they are limited with regard to their telemarketing and email solicitation activities
question

Responding to pressures from the Federal Communications Commission:
answer

FCC; political and regulatory environment
question

The economic status of consumers:
answer

economic situation
question

Increasing access to faster broadband capabilities:
answer

technological advances
question

Greater social responsibility:
answer

social trends
question

Demographics:
answer

age, income, market size, education, gender and ethnicity
question

How do demographics affect the launching of a new product?
answer

A product may be targeted towards a specific age group or generational cohort A product may be for a specific gender
question

What are some components of a country’s culture?
answer

-what is most valued -food preferences -language differences
question

In the immediate environment, it is critical that marketers understand their firm’s ________ including their strengths, weaknesses, and likely reactions to the marketing activities that their own firm undertakes
answer

competitors
question

What are some characteristics of Gen Y?
answer

this cohort varies most in age, ranging from teenagers to adults who have their own family
question

__________ are characteristics of human populations such as gender, race, age, and income.
answer

Demographics
question

Sitting within the macro environment and related to elements of the competitive industry in which the firm operates is the _________ environment.
answer

immediate
question

Goals of value-based marketing:
answer

-provide value to consumers -recognize consumers’ needs and wants
question

What are some characteristics that describe Gen X?
answer

Born between 1965 and 1976 Represent 41 million Americans Latchkey children
question

When developing marketing plans, a firm should consider what about its customers?
answer

Likely reactions to the firm’s plans Weaknesses
question

The ________ environment comprises political parties, government organizations, and legislation and laws
answer

political
question

When tourists visit and shop in other countries because the value of the tourist’ home currency is stronger, this results from a favorable ________ rate
answer

exchange
question

What industry is most likely to suffer a downturn when interest rates rise?
answer

Housing market When borrowing for mortgage costs, more will cause a downturn in the housing market
question

Traits that best describe baby boomers:
answer

largest population of 50-plus consumers born between 1946-1964
question

Which macro-environmental factors DO NOT influence a firm, indirectly impacting consumers as a result? Technology Competition Demographics Culture
answer

Competition Competition is a factor in the immediate environment, not the macro environment
question

______ is when a company uses more resources advertising green projects versus actually spending these resources on environmentally sound practices
answer

Greenwashing
question

What generational cohort consists of people born between 1965 and 1976?
answer

Gen X
question

What are some distinct characteristics that may be causing the increase in wealthy families?
answer

Increase in dual-income households Higher overall level of education Maturing of the general population
question

Examples of government legislation designed to protect the consumer:
answer

Consumer Product Safety Act Nutrition Labeling and Education Act Children’s Television Act
question

Which of the following demographic factors can help predict consumer buying patterns? Income earned Social behavior Education attained Hobbies Technology usage
answer

Income earned Education attained
question

What is a factor that marketers should keep in mind about gender when promoting goods and services?
answer

Marketers should strive to transcend gender boundaries whenever possible
question

A successful firm focuses on matching its core _________ of its products and services to what consumers need and want
answer

competencies
question

Having a broad range in income creates marketing opportunities at the: low end of the market high end of the market market growth rate target market
answer

low and high end of the market
question

Which income group’s purchasing power is growing relative to others income groups?
answer

highest income group *the middle income group’s real purchasing power continues to decline
question

Which is the largest generational cohort since the Baby Boomers?
answer

Gen Y

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