Principles of Marketing Unit 1 Test Review – Flashcards

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________ divides individuals into groups according to the way they spend their time, the importance of items in their surroundings, their beliefs, and socioeconomic characteristics.
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Lifestyle segmentation
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The purpose of marketing segmentation is to:
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Enable the marketer to tailor marketing mixes to meet the needs of one or more specific groups.
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When a firm uses a concentrated targeting strategy, it can:
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Offer a highly specialized marketing mix.
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A series of stages determine by a combination of age, marital status, and the presence or absence of children is known as the:
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Family life cycle
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To be useful, a segmentation scheme must produce segments that meet four basic criteria. The criteria are:
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Substantiality, identifyability, and measurability, accessibility, and responsiveness.
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__________ is a method that clusters potential customers into neighborhood lifestyle categories and is a combination of geographic, demographic, and lifestyle segmentation.
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Geodemographic segmentation.
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__________ segmentation is based on personality, motives, and lifestyle.
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Psychographic.
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A(n) ___________ is group of people or organizations for whom an organization designs, implements, and maintains a marketing mix intended to meet the needs of that group, resulting in mutually satisfying exchanges.
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Target market
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A ___________ is a group of people or organizations that has wants and needs that can be satisfied by particular product categories, has the ability to purchase these products, and is willing to exchange resources for the products.
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Market
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Market segmentation can assist marketers to do all of the following EXCEPT:
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Identify which variable base should be used for segmenting.
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An organization with a(n) ________ believes that it exists not only to satisfy customer wants and needs and to meet organizational objectives but also to preserve or enhance individuals' and society's long-term best interests.
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Societal marketing orientation.
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The marketing concept involves:
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Focusing on customers' wants and needs so that the organization can distinguish its product (or products) from competitors' products.
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As part of instituting an empowerment program, a marketing director should:
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Allow non-management employees to resolve problems on their own without prior approval from their immediate supervisors.
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The concept of exchange is important to marketing because:
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Marketing activities help to create exchange.
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Marketers interested in offering customer value can: a. offer products that perform b. give the buyer facts c. offer organization-wide commitment in service and after-sales support. d. avoid unrealistic pricing e. do all of these
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Do all of these
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Which marketing orientation assumes people will buy more goods and services if aggressive marketing techniques are used?
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Sales
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When customer expectations regarding product quality, service quality, and value-based price are met or exceeded, __________ is created.
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Customer satisfaction
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___________ is a strategy that focuses on keeping and improving relationships with current customers.
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Relationship marketing.
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What percentage of the civilian workforce in the United States performs marketing activities?
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Between 25 and 33 percent.
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Most successful relationship marketing strategies depend on: a. customer-oriented personnel b. effective training programs c. employees with authority to make decisions and solve problems d. teamwork e. all of these
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All of these
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The set of unique features of a company and it products that are perceived by the target market as significant and superior to the competition is known as a(an):
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Competitive advantage
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__________ is a strategy of increasing market share in existing markets.
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Market penetration
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The SWOT acronym refers to a firms analysis of its:
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Strengths, weaknesses, opportunities, and threats.
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___________ is the managerial process of creating and maintaining a fit between the organization's objectives and the changing marketing environment.
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Strategic planning
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The ___________ answers the question, "What business are we in?"
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Mission statement
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__________ occurs when a business is defined in terms of goods and services rather than by the benefits customers seek from it.
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Marketing myopia.
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__________ is a strategy that attempts to attract new customers to existing products.
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Market development
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A ___________ is a study conducted by an organization to identify its internal strengths and weaknesses and also examine external opportunities and threats.
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Situation analysis.
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___________ is defined as the collection and interpretation of information about forces, events, and relationships in the external environment that may affect the future of the organization or the implementation of the marketing plan.
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Environmental scanning.
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All of the following are elements of the marketing plan EXCEPT:
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Portfolio analysis.
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A(n) ________ is a defined group that managers feel is most likely to buy a firm's product.
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Target market
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Marketing managers cannot control __________, but they can sometimes influence it.
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The external environment
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__________ factors are environmental factors that include our attitudes, values, and lifestyles.
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Social
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A(n) _________ is the practice of choosing goods and services that meet one's diverse needs and interests rather than conforming to traditional stereotypes.
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Component lifestyle
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The study of people's vital statistics, such as age, race and ethnicity, and location, is called:
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Demography
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Which of the following statements characterizes the growing ethnic markets in the United States today? a. Marketers are modifying products to appeal to different ethnicities. b. The United States is becoming a multicultural society. c. The United States is moving away from being a society dominated by whites and rooted in Western culture. d. The percentage of whites in the United States' population will decline relative to other minority groups. e. All of the statements characterize the demographic transition in the United States today.
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All of the statements characterize the demographic transition in the United States today.
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Recession, inflation, and consumers' incomes that influence the marketing environment are called ________
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Economic
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___________ is the primary determinant of a person's earning potential.
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Education
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Laws and regulations of various governments and their ongoing development and change are an example of _________ factors that are part of the external environment of all organizations.
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Political and legal
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The number of firms a company must face, the relative size of these firms, and the degree of interdependence within the industry are all part of its _________ environment.
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Competitive
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Marketing
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The activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.
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Exchange
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People giving up something in order to receive something else they would rather have.
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Production Orientation
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A philosophy that focuses on the internal capabilities of the firm rather than on the desires and needs of the marketplace.
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Sales Orientation
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The belief that people will buy more goods and services if aggressive sales techniques are used and that high sales result in high profits.
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Marketing Concept
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The idea that the social and economic justification for an organization's existence is the satisfaction of customer wants and needs while meeting organizational objectives.
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Market Orientation
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A philosophy that assumes that a sale does not depend on an aggressive sales force but rather on a customer's decision to purchase a product; it is synonymous with the marketing concept.
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Societal Marketing Orientation
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The idea that an organization exists not only to satisfy customer wants and needs and to meet organizational objectives but also to preserve or enhance individuals' and society's long-term best interests.
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Customer Value
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The relationship between benefits and the sacrifice necessary to obtain those benefits.
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Customer Satisfaction
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Customers' evaluation of a good or service in terms of whether is has met their needs and expectations.
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Relationship Marketing
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A strategy that focuses on keeping and improving relationships with current customers.
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Empowerment
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Delegation of authority to solve customers' problems quickly - usually by the first person the customer notifies regarding a problem.
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Teamwork
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Collaborative efforts of people to accomplish common objectives.
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Customer Relationship Management (CRM)
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A company-wide business strategy designed to optimize profitability, revenue, and customer satisfaction by focusing on highly defined and precise customer groups.
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On-Demand Marketing
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Delivering relevant experiences, integrated across both physical and virtual environments, throughout the consumer's decision and buying process.
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Strategic Planning
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The managerial process of creating and maintaining a fit between the organization's objectives and resources and the evolving market opportunities.
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Strategic Business Unit (SBU)
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A subgroup of a single business or collection of related businesses within the larger organization.
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Market Penetration
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A marketing strategy that tries to increase market share among existing customers.
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Market Development
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A marketing strategy that entails attracting new customers to existing products.
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Product Development
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A marketing strategy that entails the creation of new products for present markets.
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Diversification
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A strategy of increasing sales by introducing new products into new markets.
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Portfolio Matrix
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A tool for allocating resources among products or strategic business units on the basis of relative market share ad market growth rate.
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Star
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In the portfolio matrix, a business unit that is a fast-growing market leader
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Cash Cow
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In the portfolio matrix, a business unit that generates more cash than it needs to maintain its market share.
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Problem Child (question mark)
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In the portfolio matrix, a business that shows rapid growth but poor profit margins
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Dog
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In the portfolio matrix, a business unit that has low growth potential and a small market share.
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Planning
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The process of anticipating future events and determining strategies to achieve organizational objectives in the future.
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Marketing Planning
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Designing activities relating to marketing objectives and the changing marketing environment.
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Marketing Plan
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A written document that acts as a guidebook of marketing activities for the marketing manager.
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Mission Statement
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A statement of the firm's business based on a careful analysis of benefits sought by present and potential customers and an analysis of existing and anticipated environmental conditions.
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Marketing Myopia
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Defining a business in terms of goods and services rather than in terms of the benefits customer seek.
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SWOT Analysis
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Identifying internal strengths (S) and weaknesses (W) and also examining external opportunities (O) and threats (T).
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Environmental Scanning
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Collection and interpretation of information about forces, events, and relationships in the external environment that may affect the future of the organization or the implementation of the marketing plan.
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Competitive Advantage
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A set of unique features of a company and its products that are perceived by the target market as significant and superior to those of the competition.
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Cost Competitive Advantage
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Being the low-cost competitor in an industry while maintaining satisfactory profit margins.
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Experience Curves
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Curves that shows costs declining at a predictable rate as experience with a product increases.
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Product/service Differentiation Competitive Advantage
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The provision of something that is unique and valuable to buyers beyond simply offering a lower price than that of the competition.
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Niche Competitive Advantage
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The advantage achieved when a firm seeks to target and effectively serve a small segment of the market.
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Sustainable Competitive Advantage
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An advantage that cannot be copied by the competition.
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Marketing Objective
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A statement of what is to be accomplished through marketing activities.
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Marketing Strategy
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The activities of selecting and describing one or more target markets and developing and maintaining a marketing mix that will produce mutually satisfying exchanges with target markets.
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Marketing Opportunity Analysis (MOA)
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The description and estimation of the size and sale potential of market segments that are of interest to the firm and the assessment of key competitors in these market segments.
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Marketing Mix (Four Ps)
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A unique blend of product, place (distribution), promotion, and pricing strategies designed to produce mutually satisfying exchanges with a target market.
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Implementation
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The process that turns a marketing plan into action assignments and ensures that these assignments are executed in a way that accomplishes the plan's objectives.
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Evaluation
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Gauging the extent to which the marketing objectives have been achieved during the specified time period.
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Control
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Provides the mechanisms for evaluating marketing results in light of the plan's objectives and for correcting actions that do not help the organizations reach those objectives within budget guidelines.
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Marketing Audit
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A thorough, systematic, periodic evaluation of the objectives, strategies, structure, and performance of the marketing organization.
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Target Market
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A group of people or organizations for which an organization designs, implements, and maintains a marketing mix intended to meet the need of that group, resulting in mutually satisfying exchanges.
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Environmental Management
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When a company implements strategies that attempt to shape the external environment within which it operates
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Component Lifestyles
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The practice of choosing goods and services that meet one's diverse needs and interests rather than conforming to a single, traditional lifestyle.
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Demography
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The study of people's vital statistics, such as age, race, and ethnicity, and location.
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Millennials
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People born between 1979 and 1994
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Generation X
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People born between 1965 and 1978
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Baby Boomers
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People born between 1946 and 1964
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Purchasing Power
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A comparison of income versus the relative cost of a standard set of goods and services in different geographic areas.
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Inflation
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A measure of the decrease in the value of money, expressed as the percentage reduction in value since the previous year.
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Recession
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A period of economic activity characterized by negative growth, which reduces demand for goods and services.
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Basic Research
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Pure research that aims to confirm an existing theory or to learn more about a concept or phenomenon.
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Applied Research
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Research that attempts to develop new or improved products.
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Consumer Product Safety Commission (CPSC)
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A federal agency established to protect the health and safety of consumers in and around their homes.
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Food and Drug Administration (FDA)
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A federal agency charged with enforcing regulations against selling and distributing adulterated, misbranded, or hazardous food and drug products.
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Federal Trade Commission (FTC)
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A federal agency empowered to prevent persons or corporations from using unfair methods of competition in commerce.
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Market
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People or organizations with needs or wants and the ability and willingness to buy.
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Market Segment
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A subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs.
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Market Segmentation
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The process of dividing a market into meaningful, relatively similar, and identifiable segments or groups.
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Segmentation Bases (Variables)
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Characteristics of individuals, groups, or organizations.
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Geographic Segmentation
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Segmenting markets by region of a country or the world, market size, market density, or climate.
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Demographic Segmentation
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Segmenting markets by age, gender, income, ethnic background, and family life cycle.
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Psychographic Segmentation
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Segmenting markets on the basis of personality, motives, lifestyles, and geodemographics.
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Geodemographic Segmentation
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Segmenting potential customers into neighborhood lifestyle categories.
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Benefit Segmentation
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The process of grouping customers into market segments according to the benefits they seek form the product.
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Usage-Rate Segmentation
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Dividing a market by the amount of product bought or consumed.
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80/20 Principle
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A principle holding that 20 percent of all customers generate 80 percent of the demand.
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Satisfiers
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Business customers who place an order with the first familiar supplier to satisfy product and delivery requirements.
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Optimizers
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Business customers who consider numerous suppliers (both familiar and unfamiliar), solicit bids, and study all proposals carefully before selecting one.
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Undifferentiated Targeting Strategy
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A marketing approach that views the market as one big market with no individual segments and thus uses a single marketing mix.
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Concentrated Targeting Strategy
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A strategy used to select one segment of a market for targeting marketing efforts.
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Niche
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One segment of a market.
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Multisegment Targeting Strategy
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A strategy that chooses two or more well-defined market segments and developed a distinct marketing mix for each.
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Cannibalization
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A situation that occurs when sales of a new product cut into sales of a firm's existing products.
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Positioning
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Developing a specific marketing mix to influence potential customers' overall perception of a brand, product line, or organization in general.
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Position
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The place a product, brand, or group of products occupies in consumers' minds relative to competing offerings.
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Product Differentiation
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A positioning strategy that some firms use to distinguish their products from those of competitors.
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Perceptual Mapping
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A means of displaying or graphing, in two or more dimensions, the location of products, brands, or groups of products in customers' minds.
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Repositioning
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Changing consumers' perceptions of a brand in relation to competing brands.
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