Marketing Final

Lectures 6-12

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

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 makes up the subdivision of the fourth P? Also known as the promotional mix

Traditional Communications Mix which contains of:
- advertising
- sales promotion
- personal selling
- PR

what are some common communication platforms used to advertise?

print and broadcast ads
packaging inserts
motion pictures (product placement in movies and such)
brochures and booklets
posters
billboards
POP displays

what are some common communication platforms used for sales promotions ?

contests, games
premiums
sampling
trade shows
coupons rebates
entertainment
continuity programs

what are some common communication platforms used for personal selling ?

- the most powerful communication platform because it is the most effective to close a sale but is the most expensive (salary, commission, training costs)

- sales presentations
- sales meetings
- incentive programs
- fairs and trade shows

what are some common communication platforms used for PR?

- very important and the biggest advantage is that this is almost free or very inexpensive compared to other three from promotional mix
- has high credibility (opera mentions your product) because it is from the views of a third party

press kits
speeches
seminars
annual reports
charitable donations
publications
community relations

What are the steps in developing an effective communication

-identify target audience
- determine objectives
- design communications
- select channels (webpage, tv, online ads)
- establish budget
- decide on media mix
- manage IMC ( job of manager to handle all these tasks sequentially)

What factors are a part of creative strategy

- information appeal
----- problem solving ad or product demonstration ad

-transformational appeals
---- stir up emotions and motivate a purchase

- positive and negative appeals
---- fear, guilt, shame, love, humor

What are some characteristics to consider when picking a celebrity message source

expertise
trustworthiness
likeability

what are the four most common ways communications budgets are set

affordable - commonly used and leads to difficult long term planning
percentage of sales - set advertising budget as a percentage of historic or forecasted sales..problem is it assumes that sales is determining the ad budget
competitive parity - use competitor's budget as the benchmark
objective and task - most scientific and reliable... first decide objectives and then create tasks to work towards that and determine cost per task

What is a GRP

gross rating points
measure of the weight of the ad impressions you are buying

= reach * frequency

What is CPM

cost to reach a thousand people
helpful to determine efficiency (lower number)

EX: $100,000 cost for ad and 10 million readers

100000/10mill = cost to read one reader * 1000 = CPM for newsweek

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

advertising

What are the five M's of advertising

mission
money
message
media
measurement

What are three types of media scheduling patterns

continuity - basic scheduling where you spend certain amount of money for the entire year

flighting/bursting - ads in huge peaks at certain times of the year (halloween)

pulsing - hybrid of the previous two

what are four types of advertising objectives

informative - inform consumer
persuasive - creating liking for brand
reminder - stimulate repeat purchasing
reinforcement - support other forms of communication

what is a collection of incentive tools, mostly short term, designed to stimulate quicker or greater purchase of particular products or services by consumers of the trade?

sales promotion

What are categories of sales promotion tools

consumer directed - aimed at customers (pull strategy)
- samples, coupons, rebates, price offs, premiums

trade - directed (push strategy)
- allowances, free goods, sales contests, trade shows

What is a set of interdependent organizations involved in the process of making a product or service available for use or consumption?

marketing channels

What are the three types of channel members that make up the marketing channels

merchants agents facilitators

what are merchants

wholesellers and retailers who take title to and resell the merchandise

What are agents

do not take title to products, brokers, reps, sales agents who search for customers and may negotiate for goods on manufatcurer's behalf

just help transfer between ownership or title between producer or buyer

what are facilitators

any intermediate that facilitates transaction between seller and buyer
warehouses, transport company

What is the push strategy

a marketing strategy that uses aggressive personal selling and trade advertising to convince a wholesaler or a retailer to carry and sell particular merchandise

most effort is to incentive middlemen to push product down the chain into the customer cart

easier for small budget to use
most popular strategy

manufacturer -> wholesaler -> retailer -> customer

What is a pull strategy?

a marketing strategy that stimulates consumer demand to obtain product distribution

incentivize the customer through coupons and such so that customers goes to retailer and "pulls" the product

manufacturer

What are hybrid channels (channel integration)

use physical store and online selling

ability to order product online and pick up at store

ability to return an online ordered product to a nearby store

right to receive discounts based on total online and in store purchase

What are some functions that channel members perform

gather information
develop and disseminate persuasive communications
reach agreements on price and terms
acquire funds to finance inventories
assume risks
provide storage and movement
provide for buyer's payment of bills
oversee transfer of ownership (title)

what are five types of marketing channel flows

physical
title
payment - goes from customer to suppliers
information - flow goes both ways
promotion

time, place, possession gap is being bridged by these flows

what are the different types of levels in marketing channels

0-level -- direct marketing channels (door to door)
1- level -- involves retailer
2- level -- involves wholesaler and retailer
3 -level -- wholesaler, jobber, retailer

what are the steps in designing a marketing channel system

analyze customer needs
establish channel objectives
identify major channel alternatives
evaluate major channel alternatives

What are some factors to analyze customer needs

lot size
waiting/delivery time
spatial convenience
product variety
service backup