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How can marketing be defined?

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...

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What are the components of an effective marketing philosophy?

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...

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What does a consumer orientation imply about the business

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...

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A firms marketing philosophy determines:

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How it's marketing activities are developed.

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The firms marketing philosophy's, used to achieve business goals, are reflected in what plan?

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Marketing plan

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What are the three different marketing perspectives that permeate small businesses are:

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production oriented, sales oriented and consumer oriented philosophies

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Production-Oriented philosophy emphasizes:

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the product as the single most important part of the business

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Production-Oriented philosophy

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The firm concentrates resources in developing the product or service in the most efficient manner, even the promotion, distribution or other marketing activities are slighted.

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Sales oriented philosophy

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deemphasizes production efficiencies and customer preferences in favor of focus on sales

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Consumer Oriented Philosophy

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The firm believes that everything, including production and sales, centers around the consumer and his or her needs. The results: all marketing efforts begin and end with the consumer.

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Marketing concept is:

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A two staged process that underlies all marketing efforts: identifying customer needs and satisfying those needs

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It is strongly recommended that all new businesses start with:

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A consumer orientation as this philosophy is most consistent with long-term success

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What are the three reasons that some small firms failed to adopt a consumer orientation?

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First, the state of competition. Secondly, an entrepreneur may have strong production skills but weak in marketing ability. Third, some entrepreneur's are too focused on the present, expecting the firms marketing efforts to reap immediate dividends and consequently favor a sales oriented philosophy.

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A firm is ready to develop a marketing strategy to support its goal when..

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once the small firm makes a commitment to a customer orientation.

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Market Analysis

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...

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A small business market analysis consists of all but ONE of the following processes: a. market segmentation b. developing the marketing mix c. sales forecasting d. market research

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b. developing the marketing mix

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The combination of product, pricing, promotion, and distribution activities make up: a. the marketing mix. b. a market analysis. c. secondary data. d. a buildup process.

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a. the marketing mix

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Which one of the following items is not addressed in the creation of the marketing strategy section of the plan? a. advertising themes b. break-even computations for alternative prices c. product packaging d. customer profile

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d. customer profile- A description of potential customers in a target market

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Which of the following is NOT a function of marketing research? a. gathering information b. selling information c. reporting information d. interpreting information

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b. selling information

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The marketing research process begins with: a. compiling secondary data. b. collecting primary data. c. correctly identifying and defining the informational need. d. reporting analysis results.

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c. correctly identifying and defining the informational need.

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Which of the following is NOT a method typically used to collect primary data? a. observational methods b. telephone surveys c. searching the university library d. experimentation

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c. searching the university library

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Observational methods for collecting primary data include all the following BUT: a. counting customers. b. visiting retail outlets. c. attending trade shows. d. telephone surveys.

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d. telephone surveys.

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Which of the following is a good suggestion for designing a questionnaire? a. Ask long, personal questions. b. Ask any potentially sensitive questions near the beginning of the questionnaire. c. Assign order to the questions to reduce bias. d. Select discussion questions that use the vocabulary of statistics.

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b. Ask any potentially sensitive questions near the beginning of the questionnaire.

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Often the wisest market segmentation strategy for a small business is: a. the unsegmented strategy. b. the multisegmentation strategy. c. the marketing mix strategy. d. the single-segmentation strategy.

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d. the single-segmentation strategy

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Which of the following methods of sales forecasting is also called a chain-ratio method? a. the breakdown process b. the buildup process c. the starting point d. direct forecasting

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a. the breakdown process

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It is best that entrepreneurs view small business marketing as simply selling. True False

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False

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A core product or service plus all its important extras comprise a "bundle of satisfaction." True False

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True

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A firm subscribing to a consumer-oriented philosophy of marketing believes that achieving sales goals is the firm's highest priority. True False

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False

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14. A discussion of competitors' strengths and weaknesses is outside the scope of the formal marketing plan. True False

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False

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Market research is the gathering, processing, reporting, and interpreting of market information. True False

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True

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Information that has already been gathered and compiled is known as primary data. True False

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False

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Specific characteristics that distinguish market segments according to the benefits sought by customers are known as segmentation variables. True False

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False

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Demographic variables refer to characteristics that describe customers and their purchasing power. True False

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True

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Mass marketing firms largely employ the multi-segment strategy. True False

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False

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The sales forecast defines how much of a product or service can be sold within a market in a defined time period. True False

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True

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Indirect forecasting relies on the correlation between two or more variables to project sales. True False

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True

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This strategy forms the most detailed section on the marketing plan and, in many respects, is subject to the closest scrutiny from potential investors.

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Marketing Strategy

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At one time, firms scattered their marketing efforts (a "shotgun" approach) to reach consumers. Today, a firm is more likely to use: a. a "bazooka" approach, where special effects are used to "explode" into the buyer's consciousness. b. a "knife" approach, where the firm tries to "cut" to the most important product advantage. c. a "rifle" approach, where the firm focuses on the buyers who have greater interest in the values that the firm creates best. d. a "pistol" approach, where the firm realizes that it has multiple chances to gain consumer interest.

answer

c. a "rifle" approach, where the firm focuses on the buyers who have greater interest in the values that the firm creates best.

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________________ is the process of dividing a market into smaller groups of buyers with distinct needs, characteristics, or behaviors who might require separate products or marketing mixes. a. Mass marketing b. Market segmentation c. Target marketing d. Market positioning

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b. Market segmentation

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__________________ is the process of evaluating each market segment's attractiveness and selecting one or more segments to enter. a. Mass marketing b. Market segmentation c. Market targeting d. Market positioning

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c. Market targeting

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Setting the competitive positioning for the product and creating a detailed marketing mix is called: a. mass marketing. b. target marketing. c. market segmentation. d. marketing positioning.

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d. marketing positioning.

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During which step of the marketing segmentation, targeting, and positioning process does the firm "develop a marketing mix for each segment?" a. market segmentation b. market targeting c. market positioning d. The firm does not go through the "development" during any of the above steps.

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c. market positioning

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During one of the steps in the marketing segmentation, targeting, and positioning process, the marketer develops measures of segment attractiveness. This procedure belongs in the category of: a. market segmentation. b. market targeting. c. market massing. d. market positioning.

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b. market targeting.

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When companies divide large, heterogeneous markets into smaller segments that can be reached more efficiently with products and services that match their unique needs, they are conducting a ___________________ process. a. marketing aggregation b. marketing positioning c. marketing target d. marketing segmentation

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d. marketing segmentation

question

Market segmentation can be carried out at several different levels. Which of the following WOULD NOT BE among these levels? a. micromarketing b. segment marketing c. competition marketing d. niche marketing

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c. competition marketing

question

Another word for complete segmentation is: a. macromarketing. b. micromarketing. c. niche marketing. d. mass marketing.

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b. micromarketing.

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For most of the 20th century, firms practiced which of the following forms of marketing? a. mass marketing b. micromarketing c. niche marketing d. segment marketing

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a. mass marketing

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Which of the following marketers epitomized the mass marketing strategy? a. Henry Ford b. Bill Gates c. F.W. Woolworth d. Thomas A. Edison

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a. Henry Ford

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Which of the following statements is closest to the traditional argument for mass marketing? a. Find a need and fill it. b. The largest potential market can lead to the lowest costs, which translates into either lower prices or higher margins. c. The rifle approach rarely hits what it is aiming at. d. The consumer is king. Long live the king.

answer

b. The largest potential market can lead to the lowest costs, which translates into either lower prices or higher margins.

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Isolating broad segments that make up a market and adapting the marketing to match the needs of one or more segments is called _________________. a. niche marketing b. mass marketing c. segment marketing d. micromarketing

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c. segment marketing

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When General Motors designs specific models for different income and age groups, it is practicing which of the following marketing formats? a. micromarketing b. macromarketing c. mass marketing d. segment marketing

answer

d. segment marketing

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Segment marketing offers several benefits over mass marketing. All of the following would be among those benefits EXCEPT: a. the company can market more efficiently and target its programs toward only those consumers that it can serve best. b. the company can fine-tune its programs to meet the needs of carefully defined segments. c. the company can reduce costs because of the ability to sell to customers one-on-one. d. the company may face fewer competitors if fewer competitors are focusing on the company's chosen market segment.

answer

c. the company can reduce costs because of the ability to sell to customers one-on-one.

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A company is practicing ________________ if it focuses on subsegments with distinctive traits that may seek a special combination of benefits. a. micromarketing b. niche marketing c. mass marketing d. segment marketing

answer

b. niche marketing

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As an example of _______________, a company could build sport utility vehicles and direct marketing efforts towards the luxury SUV market (as does Lexus). a. micromarketing b. niche marketing c. mass marketing d. segment marketing

answer

b. niche marketing

question

American Express offers not only its traditional green cards but also gold cards, corporate cards, and even a black card, called the Centurian, with a $1,000 annual fee aimed at a small group of "superpremium customers." Which of the following marketing efforts is American Express following with their credit card policies? a. macromarketing b. segment marketing c. niche marketing d. self-marketing

answer

c. niche marketing

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_________________ is the practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations. a. Niche marketing b. Micromarketing c. Segment marketing d. Mass marketing

answer

b. Micromarketing

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Micromarketing includes: a. segment marketing and niche marketing. b. mass marketing and demographic marketing. c. local marketing and individual marketing. d. individual marketing and self-marketing.

answer

c. local marketing and individual marketing.

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______________ involves tailoring brands and promotions to the needs and wants of specific small groups such as cities, neighborhoods, and even specific stores. a. Niche marketing b. Local marketing c. Detail marketing d. Individual marketing

answer

b. Local marketing

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All of the following are considered to be drawbacks of local marketing EXCEPT: a. it can drive up manufacturing and marketing costs by reducing economies of scale. b. it can create logistical problems when the company tries to meet varied requirements. c. it can attract unwanted competition. d. it can dilute the brand's overall image.

answer

c. it can attract unwanted competition.

question

________________ is tailoring products and marketing programs to the needs and preferences of individual customers. a. Niche marketing b. Local marketing c. Self-marketing marketing d. Individual marketing

answer

d. Individual marketing

question

Individual marketing is known by a variety of names. All of the following would appropriately be called individual marketing EXCEPT: a. mono-marketing. b. one-to-one marketing. c. customized marketing. d. markets-of-one marketing.

answer

a. mono-marketing.

question

______________ is the process through which firms interact one-to-one with masses of customers to create customer-unique value by designing products and services tailor-made to individual needs. a. Mass marketing b. Detail marketing c. Mass globalization d. Mass customization

answer

d. Mass customization

question

Define market segmentation, market targeting, and market positioning. Demonstrate through the steps of a model how these concepts fit together to aid the decision maker in his or her attempt to use market segmentation in the marketing process.

answer

Market segmentation is the process of dividing a market into distinct groups of buyers with different needs, characteristics, or behavior who might require separate products or marketing mixes. Market targeting involves evaluating each segment's attractiveness and deciding which segment(s) to enter. Market positioning is arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers. The marketer formulates a competitive position for a product and a detailed marketing mix

question

Identify the differences between the mass marketing, segment marketing, niche marketing, and micromarketing strategies.

answer

For most of this century, businesses practiced mass marketing. They mass produced, mass distributed, and mass promoted the same product in almost the same ways to all consumers. The argument for this approach was that mass marketing creates the largest potential market, which leads to lower costs, which in turn can translate into either lower prices or higher margins. This approach has given way to segment marketing, where marketers isolate broad segments that make up a market and adapt the marketing to match the needs of one or more segments. The benefits of this approach are that the company can market more effectively and efficiently by creating programs that are directed only toward those consumers that can be most effectively served. In niche marketing, there is a focus on subsegments or niches with distinctive traits that may seek a special combination of benefits. Niche marketers presumably understand their niches' needs so well that their customers willingly pay a price premium. The newest form of segmentation is called micromarketing, where the marketer tailors products and marketing programs to suit the tastes of specific individuals and locations. This can take the form of either local or individual marketing.

question

List and briefly discuss the major bases for segmenting consumer markets. Demonstrate how these major bases would compare to the bases used in segmenting business markets (what are the differences and similarities?).

answer

The major bases for segmenting consumer markets are (1) geographic, (2) demographic, (3) psychographic, and (4) behavioral. Examples within these categories might be:geographic (country, region, density, or climate), demographic (age, gender, family size, income, occupation, or race), psychographic (social class, lifestyle, or personality), or behavioral (occasions, benefits, user status, usage rate, loyalty, readiness stage, or attitude toward the object). These bases are contrasted to the major bases for segmenting business markets, which include (1) demographics, (2) operating variables, (3) purchasing approaches, (4) situational factors, and (5) personal characteristics. Examples within these categories might be demographics (industry, company size, or location), operating variables (technology, user/nonuser status, or customer capabilities), purchasing approaches (purchasing function organization, power structure, nature of existing relationships, or purchasing policies), situational factors (urgency, specific application, or size of order), and personal characteristics (buyer-seller similarity, attitudes toward risk, or loyalty). Notice that similarities exist between some of the demographic and personal characteristics (behavioral) categories.

question

What factors might a company need to consider when choosing a market-coverage strategy? Explain and justify your choices.

answer

The text suggests the following factors: a). company resources b). product variability c). the product's life cycle d). market variability e). competitor's marketing strategies

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