Applied Marketing final questions

The first step in the business unit strategic planning process deals with which of the following

business mission

If you were the marketing manager of an organization that had chosen growth via current products sold to new markets, your organization would have chosen a ____________ strat.

market-development

In the Boston Consulting Group (BCG) model to analyze a firm's strategic business units, or SBUs, the vertical axis reflects the:

industry growth rate

_____ are SBUs with a low share of low-growth markets-they may generate enough cash to sustain themselves, but they do not hold the promise of ever becoming real winners for the firm.

dogs

Which of the following terms matches to the phrase "it is a single business or collection of related businesses that can be planned separately from the rest of the company"?

Strategic Business UNit

Market-penetration, product-development, and market-development strategies would all be examples of ________ strategies.

intensive growth

The acronym SWOT used in the term SWOT analysis stands for:

Strengths, weaknesses, opportunities, and threats

The ________ is the central instrument for directing and coordinating the marketing effort.

marketing plan

Assume McDonald's is engaging in a market development strategy. Which of the following actions best illustrates a market development strategy?

opening the first McDonalds China

Gillette continues to manufacture Liquid Paper correction fluid for use with typewriters even though most of the world uses word processors. It is a small market that has little growth, but Liquid Paper has the largest market share, and Gillette invests no promotional monies in maintaining the declining product. Liquid Paper is an example of a:

Cash Cow

________ is the study of how individuals, groups, and organizations select, buy, use, and dispose of goods, services, ideas, or experiences to satisfy their needs and wants.

Consumer Behavior

A person's ________ consist(s) of all the groups that have a direct (face-to-face) or indirect influence on his/her attitudes or behavior.

Reference Group

________ assumed that the psychological forces shaping people's behavior are largely from the subconscious, and that a person cannot fully understand his or her own motivations

Sigmund Freud

The fundamental determinant of a person's wants and behavior is the person's ________.

culture

________ is the tendency to interpret information in a way that will fit our preconceptions.

selective distortion

________ is a set of distinguishing human psychological traits that lead to relatively consistent and enduring responses to environmental stimuli.

personality

Which problem solving variation would normally be used to purchase such items as toothpaste, soda, or chewing gum?

routine problem solving

When a consumer makes the final decision on which brand to buy, he or she selects a brand from the ________ set.

choice

If a direct mail marketer wished to direct promotional efforts toward the family of ________, efforts need to be directed toward parents and siblings of the family members.

orientation

A person's consistent behaviors or responses to recurring situations is his or her:

personality

All marketing strategy is built on STP-segmentation, targeting, and ________.

positioning

Forrester Research estimates marketers in 1999 lost about $3 billion in potential sales because consumers were worried about privacy. Although there are several laws being considered that would protect consumers' rights to privacy, none has yet made been made into a law. This is one way _____ forces have not helped the growth of electronic commerce.

legal

Harley-Davidson divides its customers into seven lifestyle segments, from "cocky misfits," who are most likely to be arrogant troublemakers, to "laid-back camper types" committed to cycling and nature, to "classy capitalist" who have wealth and privilege. This form of segmentation is:

psychographic

Universal Concerts is planning on bringing a series of concerts to Canada next year. In order for its concerts to be a success it needs to know that Western Canadians like country music and that a country music event in Eastern Canada is much more likely to have empty seats. This consumer behavior requires Universal Concerts to segment its Canadian market according to:

geographic and psychographic characteristics.

The Scion by Toyota has a hip look and feel-and an industrial strength stereo-and is sold in chrome and black showrooms tucked inside Toyota dealerships. According to Toyota, to which of the following audiences is the Scion positioned?

generation Y

________ is the act of designing the company's offering and image to occupy a distinctive place in the mind of the target market.

positioning

Environmental scans have shown that the population of the United States is undergoing dramatic change. For example, the number of people in this country who are between the ages of 20 and 34 has declined since 1990. On the other hand, the number of people who are 65 years of age or older has increased. These changes in the U.S. population are examples of __________ changes to which marketers must respond.

demographic

In ________ marketing, the firm operates in several market segments and designs different products for each segment.

differentiated

Generation X is the label often given to:

persons born approximately between 1965 and 1976.

A ________ consists of a group of customers who share a similar set of needs and wants.

market segment

The ________ stage of the product is characterized as being one where there is period of rapid market acceptance and substantial profit improvement.

growth

The four stages of the product life cycle include all of the following EXCEPT ________.

learning

According to the illustrations describing the product life cycle, during which stage of the cycle is there a strong likelihood that negative profits will be the norm?

introduction

A product such as nylon (e.g., numerous uses-parachutes, hosiery, shirts, carpeting, et cetera) has been characterized as having a ________ pattern to its product lifecycle.

scalloped

Which of the following stages of the product life cycle (PLC) is characterized as being one where there are low sales, high cost per customer, negative profits, and few competitors?

introduction

________ do not normally survive (as a special category product life cycle) because they do not normally satisfy a strong need.

fads

According to the general bell-shaped curve used to illustrate the product life cycle, which of the following stages is generally seen when the sales curve is at its peak?

maturity

Which of the following product life-cycle stages would be appropriately described as being one where firms focus mainly on buyers from higher-income groups and prices tend to be high because costs are high?

introduction stage

At what stage of the Product Life Cycle would companies typically expect the most number of competitors?

maturity

__________ is(are) a cross-functional group charged with developing a specific product or business.

venture team

Which of the following pricing techniques is illegal in the United States?

price fixing

The most elementary pricing method is to add a standard ________ to the product's cost.

markup

Which of the following pricing techniques is both unethical and illegal?

Bait and switch pricing

Which of the following is NOT one of the conditions that must exist for price discrimination to work.

market-penetration

The demand for your product fell 66 percent when the price increased by 50 percent. This is an example of what type of demand?

elastic

In ________ the retailer charges higher prices on an everyday basis but then runs frequent promotions in which prices are temporarily lowered below the EDLP level.

high-low pricing

The quantity demanded of your firm's product increased only 5 percent when the price of each unit was reduced by 33 percent. This is an example of what type of demand?

inelastic

Research has shown that consumers tend to process prices in a "left-to-right" manner rather than by rounding. With this knowledge which of the following prices would seem to be a better psychological price?

99.99

Which of the following marketing techniques is considered to be illegal?

None of the above options are illegal

Each channel alternative needs to be evaluated against ________, control, and adaptive criteria.

economic

Retailers must make marketing decisions in the areas of product assortment and procurement, services and store atmosphere, price, communications, locations and ________.

target market

Companies deciding on the number of intermediaries to use at each channel level have three strategies available to them. They can use exclusive distribution, ________ distribution, and intensive distribution.

selective

Designing a marketing channel system involves analyzing customer needs, ________, identifying major channel alternatives, and evaluating major channel alternatives.

establishing channel objectives

A ________ channel consists of a manufacturer selling directly to the final customer.

zero-level

A ________ strategy involves the manufacturer using its sales force and trade promotion money to induce intermediaries to carry, promote, and sell the product to end users.

push

A ________ strategy involves the manufacturer using advertising and promotion to persuade consumers to ask intermediaries for the product, thus inducing the intermediaries to order it.

pull

Major retailer types include all of the following EXCEPT ________.

online store

One of the major current trends in retailing includes which of the following?

Competition between store-based and non-store based retailing.

Intermediaries who buy, take title to, and resell the merchandise are called ________.

merchants

Many companies set promotion expenditures at a specified percentage of sales (either current or anticipated) or of the sales price. This method of budgeting is called ________.

percentage-of-sales method

Messages delivered by attractive or popular sources can potentially achieve higher attention and recall. What is important is the spokesperson's credibility. Source credibility consists of trustworthiness, likeability, and ________.

expertise

An Anti-Smoking organization wants to run television ads that will urge smokers to quit by emphasizing the negative effects of smoking. Which of the following is an important guideline they should consider when using fear appeals?

Don't make the appeal so strong that consumers want to avoid the advertisement.

Which of the following best describes the push activities of promotion?

Off-invoice allowances to retailers

Creative strategies are how marketers translate their messages into a specific communication. Creative strategies can be broadly classified as involving either informational or ________ appeals.

transformational

Marketing communications are the means by which firms attempt to ________, persuade, and remind consumers about the product and brands that they sell.

inform

Which of the following is NOT one of the "M"s of advertising decision making?

marketing

A retailer wants to run an ad announcing that the new Harry Potter book will be available at the store next Saturday. An ad in Newspaper A will cost $500, and an ad in Newspaper B will cost $375. Newspaper A has a circulation of 10,000, and Newspaper B has a circulation of 8,000.

Newspaper B has the lower CPM

The four common methods that companies use to decide on a promotion budget includes the affordable method, the percentage-of-sales method, ________, and the objective-and-task method.

competitive-parity method

Sales promotions tools offer three distinctive benefits to marketers. Among these benefits are communication, invitation, and ________.

incentive

What is the means by which firms attempt to inform, persuade, and remind consumers, directly or indirectly, about the products and brands they sell?

- get people to be aware of the brands and products they sell
- represent the voice of the brand

marketing communications

what is the process of dividing a market into meaningful relatively similar identifiable segments or groups

market segmentation

what is market penetration

increase sales of current products in current markets

what is product development

creating a new product into a current market

What is a cash cow? (Boston Matrix)

- High market share, low market growth
- An established & profitable product that can support others

What is a star in the BCG matrix?

a company with a large share of a fast-growing market

high growth
market leaders
requires cash
large profit potential

what does it mean to Build an SBU

provide financial resource if SBU (Problem child) has potential to be a star

what does it mean to hold an SBU

preserve market share if SBU is a successful cash cow. Use cash flow for other SBUs

what does it mean to harvest an SBU

increase short term cash return appropriate for all SBUS except stars

what does it mean to divest an SBU

get rid of SBUs with low shares in low-growth markets

what are some limitations of portfolio matrix approaches

can be difficult, time-consuming and costly to implement

difficult to define SBUs and measure market share/growth

focus on current businesses, but not future planning

can lead to unwise expansion or diversification

What are fads?

Fads are fashions that come quickly into public view, are adopted with great zeal, peak early, and
decline very fast. Their acceptance cycle is short, and they tend to attract only a limited following
who are searching for excitement or want to distinguish themselves from others. Fads fail to survive because they don't normally satisfy a strong need. The marketing winners are those who recognize fads early and leverage them into products with staying power.
Page Ref: 311

Campbell Soups is a newly established company that specializes in preparing healthy but
tasty food for children under the age of 5. It is incurring huge productions costs, nonexistent
profits, and slow sales growth. The company is in the ________ phase of its life cycle

introduction

________ is a period of rapid market acceptance and substantial profit improvement.

growth

According to Peter Golder and Gerald Tellis, a(n) ________ is the first to develop a working
model of the product

product pioneer

A market-penetration strategy is one where a company searches for new customers in a group
that has never used a product before

False

A fashion is a basic and distinctive mode of expression appearing in a field of human
endeavor

FALSE

Fads are fashions that come quickly into public view, are adopted with great zeal, peak
early, and decline very fast

TRUE

The prime objective, during the introduction stage of a product life cycle, is to maximize
market share.

False

The product strategy during the maturity stage of the product life cycle should be to build
more intensive distribution

FALSE

What is fashion?

Fashion is one of the three special categories of product life cycles. A fashion is a currently accepted or popular style in a given field. Fashions pass through four stages: distinctiveness, emulation, mass fashion, and decline. The length of a fashion cycle is hard to
predict. One view is that fashions end because they represent a purchase compromise, and consumers soon start looking for the missing attributes. Another explanation is that too many
consumers adopt the fashion, thus turning others away. Still another is that the length of a particular fashion cycle depends on the extent to which the fashion meets a genuine need, is
consistent with other trends in the society, satisfies societal norms and values, and keeps within technological limits as it develops

What is the criticism of the product life-cycle concept

The product life-cycle theory has its share of critics, who claim life-cycle patterns are
too variable in shape and duration to be generalized, and that marketers can seldom tell what
stage their product is in. A product may appear mature when it has actually reached a plateau
prior to another upsurge. Critics also charge that, rather than an inevitable course, the product
life-cycle pattern is the self-fulfilling result of marketing strategies, and that skillful marketing
can in fact lead to continued growth

A ________ is anything that can be offered to a market to satisfy a want or need, including
physical goods, services, experiences, events, persons, places, properties, organizations,
information, and ideas.

product

A customer judges a product offering by three basic elements: product features and quality,
services mix and quality, and ________

price

When companies search for new ways to satisfy customers and distinguish their offering from
others, they look at the ________ product, which encompasses all the possible augmentations
and transformations of the product.

potential

The way the user performs the tasks of getting and using products and related services is the
user's total ________.

consumption system

The sellers of ________ goods carry a wide assortment to satisfy individual tastes and must
have well-trained salespeople to inform and advise customers

heterogeneous shopping

Marketers have traditionally classified products on the basis of three characteristics:
________, tangibility, and use

durability

Which of the following are tangible goods that normally survive many uses?

durable goods

Because ________ are purchased frequently, marketers should make them available in many
locations, charge only a small markup, and advertise heavily to induce trial and build preferenc

nondurable goods

What types of goods are purchased frequently, immediately, and with minimum effort by the
consumers

convenience good