question

The primary challenge for 3M's inventor David Windorski was to design new products for college students. The first step in solving this challenge was to

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Identify any unmet needs of students when they studied 1

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Marketing affects

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all individuals, organizations, industries, and countries. Maketing affects anyone who benefits from purchasing a product or service. 1

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For Marketing to Occur, there must be what?

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1. two or more parties with unsatisfied needs 2. a desire and an ability to satisfy needs 3. a way for the parties to communicate 4. something to exchange 1

question

You need information about how computers interact to reshape the workplace. As you walk into the bookstore, you notice seveal copies of ComputerWorld Magazine. You pick up the magazine and like what you see. What is needed next in order for marketing to occur?

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You have to check you wallet to see if you have sufficient cash to purchase the magazine. You have desire to make the purchase, now you need to make sure you have the ability (funds) to make the purchase. 1

question

Which of the following groups would be the most likely target market for the Toyota Highlander fuel hybrid SUV?

answer

People who want to drive fuel-efficient SUVs are most likely the target market 1

question

After years of resistence, the People's Republic of China finally allowed Coke to import soft drinks into the country. The restriction was an example of which environmental force?

answer

Regulatory. Government regulation is generally considered to be one of the uncontrollable or environmental forces that include social, technological, economic, competitive, and regulatory forces. 1

question

During the ______ era in U.S. business history, the primary function of the Pillsbury Co was to mill quality flour.

answer

Production. 1

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Social responsibility refers to

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The belief that organizations are accountable to a larger society for their actions 1

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Organizational Buyers

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Entities such as manufacturers, retailers, and government agencies that buy goods and services for their own use or for resale. 1

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Utility

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The value to consumers that comes from the production or alteration of a good or service constitutes Utility. 1

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Form Utility

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The authenticity of the product adds an extra benefit to the original product making it more valuable to the consumer. 1

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The owners of Old School Brand Authentic Foods researched Civil War-era documents to come up with the recipes for old-fashioned products the company produces and markets. Their concern with the authenticity of their recipes reflects a concern with _______ utility.

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Form Utility 1

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Before Post-It Flag Highlighter could be introduced, there were several pre-launch issues that had to be addressed: technical, manufacturing, product, promotion, place (distribution), and ______

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Pricing issues 1

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Ethics

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The moral principles and values that govern the actions and decisions of an individual or group. 4

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Laws

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Society's values and standards that are enforceable in the courts 4

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Dictates what is Right and Just

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Socializing force of Culture Culture refers to the set of values, ideas, and attitudes that are learned and shared among members of a group. 4

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The Consumer Bill of Rights codified the ethics of exchange between buyers and sellers. It was outlined by _________ in ______.

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John F Kennedy 1962 In 1962 John F Kennedy sponsored the Consumer Bill of Rights, a law that codified the ethics of exchange between buyers and sellers, which included the rights to safety, to be informed, and to be heard drafted. 4

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The right to be informed means

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Marketers have an obligation to give consumers complete and accurate information about their products and services in terms of usage, safety, and privacy 4

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Social Responsibility

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Organizations are part of a larger society and are accountable to that society for their actions 4

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3 concepts of Social Responsibility

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Profit Responsibility Stakeholder Responsibility Societal Responsibility 4

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Profit Responsibility

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Simpliest Form of Social Responsibility: Maximize profits for the company's owners or stockholders 4

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Stakeholder Responsibility

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Focuses on the obligations an organization has to its customers, employees, suppliers, and distributors 4

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Key difference between Cause Marketing and outright Charitable Contributions

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Charitable Donations are contributed at the sole discretion of the firm; with cause marketing , the amount is directly affected by the consumers' purchases of the offering. 4

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Green Marketing

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includes marketing efforts to produce, promote, and reclaim environmentally sensitive products. Ex. Lowes discontinued the sale of wood products fromt he world's endangered forests 4

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Cause Marketing

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benefits companies as well as causes. Research indicates that 89% of consumers under 25 yrs will switch to a brand or retailer that supports a good cause. (provided the price and quality are equal) 4

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Howard Schultz, founder of Starbucks, wants the Starbucks experience to includs not only great coffee, but great people, first-rate music, a comfortable and upbeat meeting place, and

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sound advice on brewing excellent coffee at home. 4

question

Purpose of Marketing Segmentation

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To respond more effectively to the needs and wants of groups of potential buyers in order to increase its sales and profits 9

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Johnson's Baby Oil advertised as skin softner for babies and make up remover for women

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Single Product with Multiple Market Segments 9

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Synergy

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Increased customer value achieved through performing organizational functions more efficiently 9

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5 steps of segmenting and targeting markets

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1. Group potential buyers into segments 2. Group products ito be sold into categories 3. Develop a market-product grid and estimate size of markets 4. Select Target Market Areas 5. Take Marketing actions to reach target markets 9

question

5 Criteria for Forming Market Segments

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1. Potential for increased profit 2. Similarity of needs of potential buyers with a segment 3. Difference of needs of buyers among segments 4. Potential of a marketing action to reach a segment 5. Simplicity and cost of assigning potential buyers to segments 9

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Pychographic Segmentation

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includes lifestyle segmentation variables, which determines how consumers like to spend their time : See fig 9-3 9

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5 Criteria for Selecting a Target Segment

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1. Market Size 2. Expected Growth 3. Competitive Position 4. Cost of Reaching the Segment 5. Compatibility with the organization's objective and resources 9

question

Consumer markets break behavioral segmentation into variables based on ___________ or _____________.

answer

Product Features or Usage Rate 9

question

Organizational markets break demographic segmentation into variables based in part on __________ and __________.

answer

NAICS code and Number of Employees 9

question

Segmentation Bases for US Organizational Markets

answer

geographic, demographic, and behavioral segmenation bases 9

question

Demographic Segmentation

answer

NAICS code, NAICS sector, Number of Employees, Annual Sales 9

question

Magnavox sells its target markets many different types of TVs, from flat screens to combo TV/DVD. The larger sets can be outfitted with surround sound at a higher price. The smaller sets are much less expensive and allow the viewer to watch a DVD without extra equipment. Magnavox is using which type of segmentation variable in this example?

answer

Behavioral Segmentation 9

question

StubHub is

answer

an online ticket broker that allows sellers to sell tickets at fixed price, by auction, or by price that declines as the event gets closer. StubHub competes directly with Ticket Master and Craigslist. 13

question

Price, from a marketing viewpoint

answer

the money or other considerations (including other goods and services) exchanged for the ownership or use of a good or service 13

question

6 Steps in Setting Price

answer

1.Identify pricing objectives and constraints 2. estimate demand and revenue 3. determine cost, volume, and profit relationships 4. select an approximate price level 5. set list or quoted price 6. make special adjustments to the list or quoted price 13

question

Profit Equation

answer

Profit = Total Revenue - Total Cost 13

question

Price Equation

answer

Total Cost = List Price - Incentives+ Other Charges 13

question

Market Share

answer

the ratio of a firm's sales revenue or unit sales to those of the industty (competitors + the firm itself) 13

question

When General Mills divides the sales revenue of its breakfast cereals ina single year by the total breakfast ceral sales of the industry, it is caldulating its _________

answer

Market Share 13

question

A Pure Monopoly

answer

If market circumstances are: some leader-follower price competition some product differentiation the purpose of advertising is to inform but avoid price competition 13

question

Oligopoly

answer

Few seller in an oligopoly try to avoid price competition because it can lead to disastrous price wars in which all lose money 13

question

The vertical axis of a demand curve graph represents

answer

price per unit 13

question

Price Elasticity with elastic demand

answer

always greater than 1 13

question

Price Elastic

answer

Items requiring large cash outlays relative to a consumer's disposable income are price elastic 13

question

Price Elastic

answer

The more substitues a product has the more likely it is to be price elastic Seasonal demand for items (snowblowers) doesnot impact price elasticity of demand since it is the product not the time period with sold that is the key issue. 13

question

Marketing Channel

answer

Individuals and firms involved in the process of making a good or service availablefor use or consumption by consumers or industrial users 15

question

Transactional Function

answer

Intermediaries contacting potential customers, promoting products, and seeking orders. 15

question

Intermediaries make possible the flow from producers to buyers by performing 3 functions

answer

1. a Transactional fuction that involves buying, selling, and risk taking because they stock merchandise in anticipation of sales 2. a Logistical function that involves gathering, storing, and dispersing of products 3. a Facilitating function, which assists producers in making goods and services more attractive to buyers 15

question

Low Cost, Low unit value items

answer

Adding a wholesaler is most common for low-cost, low-unit value items that are frequently purchased by consumers such as candy, confectionery items, and magazines 15

question

Multichannel Marketing

answer

the blending of different communication and delivery channels that are mutually reinforcing in attracting, retaining, and building relationships with consumers who shop and buy in traditional intermediaries and online. 15

question

General Merchandise Wholesaler

answer

A wholesaler that carries a broad assortment of merchandise and performs all channel functions 15

question

Food broker

answer

a unique broker that acts in many ways like a manufacturer's agent. 15

question

Food Broker

answer

Represents buyers and sellers in the grocery industry. Food Brokers difer from conventional brokers because they act on behalf of Producers on a Permanent Basis and receive a commission for their services 15

question

Vertical Marketing Systems

answer

Most popular of 3 types is Contractual Systems 15

question

Channel Partnership

answer

consists of agreements and procedures among channel members for ordering and distributing a producer's products through the channel to the ultimate consumer. A central feature of channel partnerships is the collaborative use of information and communication technology to better serve customer's and reduce the time and cost of performing channel functions 15

question

Channel Partnership

answer

Levi Strauss has a ______________ with Modell's Sporting Goods that uses a POS scanning equipment and direct electronic linkage bt the two firms. Modell's can instantaneously inform Levi what styles and sizes of Jeans are needed, thus assuring that the correct selection is in stock 15

question

4 major considerations for satisfying buyer requirements when designing and distribution channels

answer

1. Information 2. Variety 3. Pre- or Post-Sales Services 4. Convenience 15

question

4 Forms of Influence

answer

1. Economic 2. Expertise 3. Identification with a prarticular channel member 4. the legitimate right of one channel member to direct the behavior of other members 15

question

3.4 Trillion

answer

Companies must spend money and invest in transporting raw materials and finished goods, material handling, warehousing, storage, and holding inventory, and managing the distribution process including the cost of information technology. Worldwide these activities and investments cost companies about _____ a year. 16

question

Customer service as it relates to the definition of logistics management implies

answer

A firm must drive down logistics cost as long as it can still satisfy customer requirements 16

question

Logistics deals with

answer

decisions needed to move a product from one source of raw materials to consumption, or the flow of products. Those decisions have to be made in a cost effective manner. A firm needs to drive down logistics costs as long as it can deliver expected customer service, which means satisfying customer requirements 16

question

Supply Chain Management

answer

The integration and organization of information and logistics across firms in a supply chain for the purpose of creating and delivering products and services that provide value to ultimate consumers 16

question

Responsive Supply Chains

answer

1. use more expensive transportation 2. achieve product variety and manufacturing efficiency by designing common platforms across several products and using common components 3. operate manufacturing facilities in many locations 4. invest in information technology to link with suppliers and customers 16

question

Extranet

answer

an Internet-based network that permits secure business-to-business communication between a manufacturer and its suppliers, distributors and sometimes other strategic partners 16

question

Extranet

answer

Fedex package shipping service is available on its________. In a single session, a company can enter all the information needed to prepare a shipper form, obtain a tracking number, print the form, and schedule a pick up. 16

question

Most critical "Customer-service components" likely for Honda JIT manufacturing when it purchases original-issue windshield wiper blades

answer

Dependability and on-time delivery - (the production schedule that depends on on-time delivery is the critical factor, late deliveries can shut down the production line) 16

question

4 key logistic functions in supply chain

answer

1. Transportation 2. Warehousing and Materials Handling 3. Order Processing 4. Inventory Management 16

question

Motor Carriers

answer

have a better record than rail carriers regarding lost and damaged goods 16

question

Motor Carriers: Advantages-Disadvantages

answer

Advantages: -Complete pick-up and delivery -Extensive routes -they are fairly fast Disadvantages: -Size and Weight restrictions -Higher Cost -Weather Sensitive 16

question

Distribution Center

answer

A warehouse that emphasizes the timely movement of goods 16

question

6 Justifications for Carrying Inventory

answer

1. Offering a buffer against variations in supply and demand 2. Providing better service for those customers who wich to be served on demand 3. Promoting production efficiencies 4. Providing a hedge against price increases by suppliers 5. Protecting the firm from contingencies such as strikes and shortages 6. Promoting purchasing and transportation discounts 16

question

Promotional Mix Consists of

answer

1. Advertising 2. Personal Selling 3. Sales Promotion 4. Direct Marketing 5. Public Relations 18

question

Communication

answer

The process of conveying a message to others 18

question

Personal Selling

answer

The 2-way flow of communication bt a buyer and seller designed to influence a person's or group's purchase decision 18

question

Public Relations

answer

A form of communication management that seeks to influence the feelings, opinions, or beliefs held by stakeholders about an organization and its products or services 18

question

Advertising Respectively

answer

is any paid form of nonpersonal communication about an organization, product, service, or idea by an identified sponsor 18

question

Integrated Marketing Communication (IMC)

answer

the concept of designing marketing communications programs that coordinates all promotional activities to provide a consistent message across all audiences 18

question

Source

answer

Message encoding is usually done by the source, in this case the company selling the product 18

question

Field of Experience

answer

For a message to be communicated effectively, the sender and receiver must have a mutually shared _____________ (similar understanding and knowledge they apply to the message. 18

question

Advertising Weaknesses

answer

1. High absolute cost 2. Difficulty in receiving good feedback 18

question

Publicity

answer

a nonpersonal, indirectly paid presentation of an organization, product, or service that can take the form of a news story, editorial, or product announcement, among others 18

question

Publicity

answer

When a news story covers a terrible disaster and viewers are asked to send donations to the ARC, the organization benefits from _______________ 18

question

Introduction Stage

answer

At which stage in the product life cycle would a company's promotional objective most likely be to increase the level of consumer awareness? 18

question

Maturity Stage: remind buyers of the marketer's and its brand's existence

answer

Cake mix is in the maturity stage of its product life cycle. A manufacturing selling cake mixes would most likely use advertising to 18

question

Push Strategy

answer

Like many consumer products manufacturers, Hallmark Cards provides its retailers with case discount allowances of 10% to induce them to carry its products. Hallmark is using the ____________ strategy 18

question

Push Strategy

answer

When a manufacturer directs the promotional mix to channel members to gain their cooperation in ordering and stocking the product. 18

question

Objective and Task

answer

The best approach to promotion budgeting is the __________ budgeting method. 18

question

3-D Advertising

answer

Unlike traditional advertising, 3-D advertising immerses consumers in an experience 19

question

Persuasive Advertising

answer

Another name for competitive advertising 19

question

3 Forms of Product Advertisements

answer

1. Pioneering (Informational) 2. Competitive (Persuasive) 3. Reminder 19

question

Advocacy Advertisement

answer

states the position of the company 19

question

Sex Appeals

answer

In advertising, Sex Appeals suggest to the audience that the product will increase the attractiveness of the user. 19

question

Reach

answer

Reach refers to the number of different people or households exposed to an advertisement 19

question

Share Point for TV

answer

% of tv sets tuned to a particular program 19

question

Disadvantage of TV as a advertising medium

answer

1. Short exposure time and perishable message 2. High cost to prepare and run ads 3. Difficulty in conveying complex information 19

question

Advantages of TV as an advertising meduim

answer

1. Reaches extremely large audiences 2. Uses picture, print, sound and motion for effect 3. Can target specific audiences 19

question

Newspaper as an advertising medium

answer

Naitonal advertising campaign rarely include this mediumexcept in conjunction with local distribution of their products. In these instances, both parties often share the advertising costs usinga cooperative advertising program 19

question

Click Fraud

answer

is a deceptive clicking of ads solely to increase the amount advertisers must pay. 19

question

3 commonly used Trade Promotions are:

answer

1. Allowances and Discounts 2. Cooperative Advertising 3. Training of Distributors Sales Forces 19

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