Principles of Marketing Unit 1 Test Review

question

________ divides individuals into groups according to the way they spend their time, the importance of items in their surroundings, their beliefs, and socioeconomic characteristics.
answer

Lifestyle segmentation
question

The purpose of marketing segmentation is to:
answer

Enable the marketer to tailor marketing mixes to meet the needs of one or more specific groups.
question

When a firm uses a concentrated targeting strategy, it can:
answer

Offer a highly specialized marketing mix.
question

A series of stages determine by a combination of age, marital status, and the presence or absence of children is known as the:
answer

Family life cycle
question

To be useful, a segmentation scheme must produce segments that meet four basic criteria. The criteria are:
answer

Substantiality, identifyability, and measurability, accessibility, and responsiveness.
question

__________ is a method that clusters potential customers into neighborhood lifestyle categories and is a combination of geographic, demographic, and lifestyle segmentation.
answer

Geodemographic segmentation.
question

__________ segmentation is based on personality, motives, and lifestyle.
answer

Psychographic.
question

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.
answer

Target market
question

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.
answer

Market
question

Market segmentation can assist marketers to do all of the following EXCEPT:
answer

Identify which variable base should be used for segmenting.
question

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.
answer

Societal marketing orientation.
question

The marketing concept involves:
answer

Focusing on customers’ wants and needs so that the organization can distinguish its product (or products) from competitors’ products.
question

As part of instituting an empowerment program, a marketing director should:
answer

Allow non-management employees to resolve problems on their own without prior approval from their immediate supervisors.
question

The concept of exchange is important to marketing because:
answer

Marketing activities help to create exchange.
question

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
answer

Do all of these
question

Which marketing orientation assumes people will buy more goods and services if aggressive marketing techniques are used?
answer

Sales
question

When customer expectations regarding product quality, service quality, and value-based price are met or exceeded, __________ is created.
answer

Customer satisfaction
question

___________ is a strategy that focuses on keeping and improving relationships with current customers.
answer

Relationship marketing.
question

What percentage of the civilian workforce in the United States performs marketing activities?
answer

Between 25 and 33 percent.
question

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
answer

All of these
question

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):
answer

Competitive advantage
question

__________ is a strategy of increasing market share in existing markets.
answer

Market penetration
question

The SWOT acronym refers to a firms analysis of its:
answer

Strengths, weaknesses, opportunities, and threats.
question

___________ is the managerial process of creating and maintaining a fit between the organization’s objectives and the changing marketing environment.
answer

Strategic planning
question

The ___________ answers the question, “What business are we in?”
answer

Mission statement
question

__________ occurs when a business is defined in terms of goods and services rather than by the benefits customers seek from it.
answer

Marketing myopia.
question

__________ is a strategy that attempts to attract new customers to existing products.
answer

Market development
question

A ___________ is a study conducted by an organization to identify its internal strengths and weaknesses and also examine external opportunities and threats.
answer

Situation analysis.
question

___________ 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.
answer

Environmental scanning.
question

All of the following are elements of the marketing plan EXCEPT:
answer

Portfolio analysis.
question

A(n) ________ is a defined group that managers feel is most likely to buy a firm’s product.
answer

Target market
question

Marketing managers cannot control __________, but they can sometimes influence it.
answer

The external environment
question

__________ factors are environmental factors that include our attitudes, values, and lifestyles.
answer

Social
question

A(n) _________ is the practice of choosing goods and services that meet one’s diverse needs and interests rather than conforming to traditional stereotypes.
answer

Component lifestyle
question

The study of people’s vital statistics, such as age, race and ethnicity, and location, is called:
answer

Demography
question

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.
answer

All of the statements characterize the demographic transition in the United States today.
question

Recession, inflation, and consumers’ incomes that influence the marketing environment are called ________
answer

Economic
question

___________ is the primary determinant of a person’s earning potential.
answer

Education
question

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.
answer

Political and legal
question

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.
answer

Competitive
question

Marketing
answer

The activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.
question

Exchange
answer

People giving up something in order to receive something else they would rather have.
question

Production Orientation
answer

A philosophy that focuses on the internal capabilities of the firm rather than on the desires and needs of the marketplace.
question

Sales Orientation
answer

The belief that people will buy more goods and services if aggressive sales techniques are used and that high sales result in high profits.
question

Marketing Concept
answer

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.
question

Market Orientation
answer

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.
question

Societal Marketing Orientation
answer

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.
question

Customer Value
answer

The relationship between benefits and the sacrifice necessary to obtain those benefits.
question

Customer Satisfaction
answer

Customers’ evaluation of a good or service in terms of whether is has met their needs and expectations.
question

Relationship Marketing
answer

A strategy that focuses on keeping and improving relationships with current customers.
question

Empowerment
answer

Delegation of authority to solve customers’ problems quickly – usually by the first person the customer notifies regarding a problem.
question

Teamwork
answer

Collaborative efforts of people to accomplish common objectives.
question

Customer Relationship Management (CRM)
answer

A company-wide business strategy designed to optimize profitability, revenue, and customer satisfaction by focusing on highly defined and precise customer groups.
question

On-Demand Marketing
answer

Delivering relevant experiences, integrated across both physical and virtual environments, throughout the consumer’s decision and buying process.
question

Strategic Planning
answer

The managerial process of creating and maintaining a fit between the organization’s objectives and resources and the evolving market opportunities.
question

Strategic Business Unit (SBU)
answer

A subgroup of a single business or collection of related businesses within the larger organization.
question

Market Penetration
answer

A marketing strategy that tries to increase market share among existing customers.
question

Market Development
answer

A marketing strategy that entails attracting new customers to existing products.
question

Product Development
answer

A marketing strategy that entails the creation of new products for present markets.
question

Diversification
answer

A strategy of increasing sales by introducing new products into new markets.
question

Portfolio Matrix
answer

A tool for allocating resources among products or strategic business units on the basis of relative market share ad market growth rate.
question

Star
answer

In the portfolio matrix, a business unit that is a fast-growing market leader
question

Cash Cow
answer

In the portfolio matrix, a business unit that generates more cash than it needs to maintain its market share.
question

Problem Child (question mark)
answer

In the portfolio matrix, a business that shows rapid growth but poor profit margins
question

Dog
answer

In the portfolio matrix, a business unit that has low growth potential and a small market share.
question

Planning
answer

The process of anticipating future events and determining strategies to achieve organizational objectives in the future.
question

Marketing Planning
answer

Designing activities relating to marketing objectives and the changing marketing environment.
question

Marketing Plan
answer

A written document that acts as a guidebook of marketing activities for the marketing manager.
question

Mission Statement
answer

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.
question

Marketing Myopia
answer

Defining a business in terms of goods and services rather than in terms of the benefits customer seek.
question

SWOT Analysis
answer

Identifying internal strengths (S) and weaknesses (W) and also examining external opportunities (O) and threats (T).
question

Environmental Scanning
answer

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.
question

Competitive Advantage
answer

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.
question

Cost Competitive Advantage
answer

Being the low-cost competitor in an industry while maintaining satisfactory profit margins.
question

Experience Curves
answer

Curves that shows costs declining at a predictable rate as experience with a product increases.
question

Product/service Differentiation Competitive Advantage
answer

The provision of something that is unique and valuable to buyers beyond simply offering a lower price than that of the competition.
question

Niche Competitive Advantage
answer

The advantage achieved when a firm seeks to target and effectively serve a small segment of the market.
question

Sustainable Competitive Advantage
answer

An advantage that cannot be copied by the competition.
question

Marketing Objective
answer

A statement of what is to be accomplished through marketing activities.
question

Marketing Strategy
answer

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.
question

Marketing Opportunity Analysis (MOA)
answer

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.
question

Marketing Mix (Four Ps)
answer

A unique blend of product, place (distribution), promotion, and pricing strategies designed to produce mutually satisfying exchanges with a target market.
question

Implementation
answer

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.
question

Evaluation
answer

Gauging the extent to which the marketing objectives have been achieved during the specified time period.
question

Control
answer

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.
question

Marketing Audit
answer

A thorough, systematic, periodic evaluation of the objectives, strategies, structure, and performance of the marketing organization.
question

Target Market
answer

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

Environmental Management
answer

When a company implements strategies that attempt to shape the external environment within which it operates
question

Component Lifestyles
answer

The practice of choosing goods and services that meet one’s diverse needs and interests rather than conforming to a single, traditional lifestyle.
question

Demography
answer

The study of people’s vital statistics, such as age, race, and ethnicity, and location.
question

Millennials
answer

People born between 1979 and 1994
question

Generation X
answer

People born between 1965 and 1978
question

Baby Boomers
answer

People born between 1946 and 1964
question

Purchasing Power
answer

A comparison of income versus the relative cost of a standard set of goods and services in different geographic areas.
question

Inflation
answer

A measure of the decrease in the value of money, expressed as the percentage reduction in value since the previous year.
question

Recession
answer

A period of economic activity characterized by negative growth, which reduces demand for goods and services.
question

Basic Research
answer

Pure research that aims to confirm an existing theory or to learn more about a concept or phenomenon.
question

Applied Research
answer

Research that attempts to develop new or improved products.
question

Consumer Product Safety Commission (CPSC)
answer

A federal agency established to protect the health and safety of consumers in and around their homes.
question

Food and Drug Administration (FDA)
answer

A federal agency charged with enforcing regulations against selling and distributing adulterated, misbranded, or hazardous food and drug products.
question

Federal Trade Commission (FTC)
answer

A federal agency empowered to prevent persons or corporations from using unfair methods of competition in commerce.
question

Market
answer

People or organizations with needs or wants and the ability and willingness to buy.
question

Market Segment
answer

A subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs.
question

Market Segmentation
answer

The process of dividing a market into meaningful, relatively similar, and identifiable segments or groups.
question

Segmentation Bases (Variables)
answer

Characteristics of individuals, groups, or organizations.
question

Geographic Segmentation
answer

Segmenting markets by region of a country or the world, market size, market density, or climate.
question

Demographic Segmentation
answer

Segmenting markets by age, gender, income, ethnic background, and family life cycle.
question

Psychographic Segmentation
answer

Segmenting markets on the basis of personality, motives, lifestyles, and geodemographics.
question

Geodemographic Segmentation
answer

Segmenting potential customers into neighborhood lifestyle categories.
question

Benefit Segmentation
answer

The process of grouping customers into market segments according to the benefits they seek form the product.
question

Usage-Rate Segmentation
answer

Dividing a market by the amount of product bought or consumed.
question

80/20 Principle
answer

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

Satisfiers
answer

Business customers who place an order with the first familiar supplier to satisfy product and delivery requirements.
question

Optimizers
answer

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

Undifferentiated Targeting Strategy
answer

A marketing approach that views the market as one big market with no individual segments and thus uses a single marketing mix.
question

Concentrated Targeting Strategy
answer

A strategy used to select one segment of a market for targeting marketing efforts.
question

Niche
answer

One segment of a market.
question

Multisegment Targeting Strategy
answer

A strategy that chooses two or more well-defined market segments and developed a distinct marketing mix for each.
question

Cannibalization
answer

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

Positioning
answer

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

Position
answer

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

Product Differentiation
answer

A positioning strategy that some firms use to distinguish their products from those of competitors.
question

Perceptual Mapping
answer

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

Repositioning
answer

Changing consumers’ perceptions of a brand in relation to competing brands.

Get instant access to
all materials

Become a Member