Marketing Unit 1

True/False: The marketing plan is broken down into various components—how the product or service will be conceived or designed, how much it should cost, where and how it will be promoted, and how it will get to the consumer.

True

Raquel is the new restaurant manager in a major hotel. When considering which changes would most likely increase the restaurant's value to customers, Raquel should provide her customers the menu items that they want and the quality service that they deserve, as well as,…

a. deliver a better dining experience than her competitors.

b. increase prices to increase revenue.

c. offset higher hotel rates with lower restaurant prices.

d. reduce customer expectations through reduced service.

e. minimize menu items but increase the price of popular entrees.

a. deliver a better dining experience than her competitors.

True/False: When Microsoft makes innovations compatible with its existing products, it is encouraging consumers to maintain long-term relationships with the company.

True

The goal of customer relationship management is to…

a. manage every customer relationship differently.

b. manage every customer relationship to maximize short-term profitability.

c. eliminate customers who are profitable, but not highly profitable.

d. identify and build loyalty among a firm's most valued customers.

e. generate relationships with competitors' customers.

d. identify and build loyalty among a firm's most valued customers.

Internet sites, physical stores, and kiosks are most closely associated with which element of the marketing mix?

a. place

b. price

c. product

d. promotion

e. proximity

a. place

True/False: Rizzo took her wedding dress to the cleaners, where she paid for it to be cleaned and sealed in a box for storage. This scenario represents a good, not a service.

False

Which element of the marketing mix is most relevant to the activity "capturing value"?

a. promotion

b. purchasing

c. product

d. price

e. place

d. price

Which statement reflects the philosophy of the market-oriented era?

a. A good product will sell itself.

b. The customer is king.

c. Firms should take advantage of a seller's market.

d. Advertising and personal selling should be emphasized in order to make the sale.

e. Firms should focus on value.

b. The customer is king.

The four Ps make up the marketing mix, which is the________Blank set of decisions or activities that the firm uses to respond to the wants of its target markets.

a. unpredictable

b. external

c. internal

d. controllable

e. global

d. controllable

In his role as a product developer at Comfy Shoes, Henry should determine the price of his products carefully based on the potential buyer's interest in his products and

a. a thorough knowledge of his brand messages.

b. the buyer's belief about the products' value.

c. his knowledge of competing products.

d. his ability to negotiate discounts.

e. the customer’s susceptibility to traditional marketing approaches.

b. the buyer's belief about the products' value.

As it pertains to the marketing plan, understanding the causes of performance, regardless of whether that performance exceeded, met, or fell below the firm's goals is important because it

a. enables firms to make appropriate adjustments.

b. allows managers to demonstrate their effectiveness.

c. offers insights into crafting an appropriate mission statement.

d. should always be followed by eliminating underperforming SBUs.

e. allows firms to better assess customer loyalty.

a. enables firms to make appropriate adjustments.

When Maya arrived in the middle of the night at the W Hotel, she was exhausted and her suit was wrinkled from her 10-hour plane trip. The night clerk found someone to dry clean Maya’s suit and have it ready for her morning presentation. She has been a loyal W Hotel customer ever since. W Hotels most demonstrated the macro strategy of_______Blank excellence.

a. customer

b. operational

c. product

d. promotional

e. global

a. customer

After conducting STP analysis for her custom auto parts store and developing strategies for each of the four Ps, Santina now has to make________Blank decisions.

a. competitive response

b. resource allocation

c. market growth

d. product line

e. mission statement

b. resource allocation

True/False: It is not always necessary to go through all the steps in the marketing planning process.

True

Mordechai pointed out to the board of directors that having the popular teen music group as the company’s celebrity endorser has boosted sales by 22% in the 12-18 age bracket. When using a SWOT analysis, the teen music group would be classified as a(n)

a. strength.

b. option.

c. opportunity.

d. weakness.

e. threat.

a. strength

In BCG portfolio analysis, products in low-growth markets that have received heavy investment and now have excess funds available to support other products are called

a. stars.

b. cash cows.

c. question marks.

d. dogs.

e. anchors.

b. cash cows

During which phase of the marketing planning process does a firm evaluate performance using marketing metrics?

a. planning phase

b. implementation phase

c. production phase

d. control phase

e. strategy phase

d. control phase

Suppose your university made a sizable investment in its career services—additional counselors, increased efforts to bring in recruiters, and other services aimed at helping students find jobs. In terms of implementing the marketing mix, the university is enhancing the

a. segmentation strategy.

b. place strategy.

c. place delivery.

d. promotion communication.

e. product value

e. product value

A food truck rewards customers with five points every time they purchase a meal. Once customers earn 25 points, they receive a free meal. What tactic is this business using to achieve customer excellence?

a. using a good physical location

b. relying on an effective price structure

c. creating customer loyalty

d. focusing on human resource management

e. developing an Internet presence

c. creating customer loyalty

he first objective in the evaluate performance phase of the marketing planning process is to

a. determine whether to raise or lower prices.

b. adjust advertising allocations.

c. find ways to cut costs.

d. review implementation programs and results using metrics.

e. consider changing the target market.

d. review implementation programs and results using metrics.

Beverly has been assigned the task of learning which age groups and which gender typically buy the company’s running shoes. What information should Beverly review to obtain the most accurate result?

a. generational cohorts

b. income levels

c. regional culture

d. ethnicity

e. demographics

e. demographics

Marketers wanting to use social media to reach consumers should understand that people in the________Blank group were born into a world that was already full of digital technologies such as the Internet and social networks.

a. Baby Boomers

b. Generation W

c. Generation X

d. Generation Y

e. Generation Z

e. Generation Z

Marketers in the United States are paying increasing attention to ethnic groups because

a. they represent a majority of the population in nonurban areas of the country.

b. approximately 80 percent of all population growth in the next 20 years is expected to come from minority groups.

c. they are more susceptible to marketing messages.

d. government subsidies assist marketers attempting to communicate value to these groups.

e. approximately 80 percent of all American population in the next 40 years is expected to come from minority groups.

b. approximately 80 percent of all population growth in the next 20 years is expected to come from minority groups.

The government has enacted laws that promote both fair trade and competition by prohibiting the formation of monopolies or alliances that would damage a competitive marketplace, fostering fair pricing practices for all suppliers and consumers. These actions are part of the________Blank environment of business.

a. communication

b. political/legal

c. demographic

d. social

e. technological

b. political/legal

True/False: Green marketing was more common in the United States when agricultural products were the largest source of income.

False

________Blank is the cost to the customers or the fee the bank charges those customers for borrowing money.

a. Interest

b. A service charge

c. Tax

d. Tariff

e. A dividend

a. Interest

The first "latchkey" children belong to which generational cohort?

a. Baby Boomers

b. Generation W

c. Generation X

d. Generation Y

e. Generation Z

c. Generation X

Nancy is considering using a radio commercial in the U.K. that was designed for her company’s U.S. markets. Which cultural aspect should she take into account when making this decision?

a. dress

b. symbols

c. demographics

d. language

e. social trends

d. language

In some lower socioeconomic U.S. communities, there are groups of people who don’t have access to fresh food options. They might shop at convenience stores where only packaged foods are available and there are no fresh fruits or vegetables. The nearest grocery store is many miles away and not accessible. These communities are referred to as

a. green markets.

b. rural areas.

c. half food districts.

d. food deserts.

e. black holes.

d. food deserts

Insight Guides, a line of travel books, provides travelers with background information about people's beliefs, values, and customs in various parts of the world. These books educate travelers about a country's

a. society.

b. politics.

c. demographics.

d. macroenvironment.

e. culture.

e. culture

True/False: Consumers involved in habitual decision making engage in little conscious decision making.

True

Which of these retailers is appealing to customers’ auditory senses?

a. Daman’s Carpet Shop has samples of its rugs on display for consumers to touch.

b. Tasty Warehouse has sample tasting stations throughout the store every weekend for customers to try new food items.

c. Marathon Way plays upbeat music in its shop that features songs many customers listen to when they participate in a race.

d. Bernadette’s Cocoa Shop uses a fan to spread the smell of chocolate throughout the store.

e. Sullivan Sporting Goods features a colorful display of golf shirts in its store window.

c. Marathon Way plays upbeat music in its shop that features songs many customers listen to when they participate in a race.

True/False: One benefit of having satisfied customers is that they may spread positive word of mouth.

True

True/ False: Determinant attributes are product or service features that are important to the seller and on which competing brands or stores are perceived to differ.

False

Before flying, Frank researches the types of planes the airline uses, scans the plane for defects as it taxis up to the terminal, and observes the pilot and crew as they come through the airport. He has no experience as a pilot or airplane mechanic. Frank probably has a misguided sense of his

a. postpurchase dissonance.

b. locus of control.

c. reference group identification.

d. attribute sets.

e. social risk.

b. locus of control.

True/False: Tanni wants a car that gets good gas mileage and will not break down. She wants to satisfy both functional and psychological needs.

False

A(n)________Blank is a need or want strong enough to cause a person to seek satisfaction.

a. locus of control

b. motive

c. attitude

d. perception

e. learning curve

b. motive

Suzanne flies regularly between Atlanta and Los Angeles. She almost always uses Delta Airlines and has lots of Delta Sky Miles credit (Delta's frequent-flyer program). Still, she uses an online fare comparison website each time to see if a competitor has a better price or a more convenient schedule. Suzanne uses________Blank to decide which airline to fly.

a. a compensatory decision rule

b. a noncompensatory decision rule

c. habitual decision making

d. social factors

e. temporal factors

a. a compensatory decision rule

True/False: Another name for physiological risk is health risk.

False

There is a saying "Never go to the grocery store hungry." This saying suggests that a consumer's________Blank state may adversely affect purchasing decisions.

a. shopping

b. social

c. theoretical

d. external

e. temporal

e. temporal

Green and Fresh is a healthy meal-preparation service operating in three states with food prep facilities in each state. Customers visit the Green and Fresh website to select their meals, which are then packaged for the freezer and express-shipped from the facilities in their state. At home, the customer can pull a meal out of the freezer and warm it in the oven or microwave. If the company wanted to expand into new areas of the United States, what segmentation method would probably be most useful in choosing new locations for its food prep facilities?

a. loyalty segmentation

b. benefit segmentation

c. psychographic segmentation

d. geodemographic segmentation

e. demographic segmentation

d. geodemographic segmentation

To develop psychographic segments, the marketer must understand consumers'

a. age, income, and education.

b. gender, race, and religion.

c. disposable personal income, benefit perceptions, and alternative egos.

d. self-values, self-concept, and lifestyles.

e. buying patterns and behaviors.

d. self-values, self-concept, and lifestyles.

Based on media habits, college students can be a less________Blank market segment because their media habits are quite diverse and firms might have to use a wide variety of media to attract this segment.

a. substantial

b. perceptive

c. identifiable

d. reachable

e. quantifiable

d. reachable

The perceptions of________Blank are being measured in a perceptual map.

a. competitors

b. strategic planners

c. suppliers

d. the current R&D team

e. consumers

e. consumers

When Yoga Joe first opened, the owner decided to target only events at resorts in its geographic region. Yoga Joe was using a(n)________Blank targeting strategy.

a. concentrated

b. micromarketing

c. benefit-driven

d. differentiated

e. undifferentiated

a. concentrated

What defines a value proposition?

a. the unique value that a product or service provides to customers

b. a special discount offer dropping the price

c. an advertisement that talks about value

d. a display of the position of products or brands in the consumer's mind

e. the one feature that will prompt a customer to buy the product

a. the unique value that a product or service provides to customers

In a classic example of segmentation strategy, years ago Intel began promoting its computer chips, previously a commodity item, under its brand name with the slogan, “Intel Inside.” In doing so, the company

a. differentiated its product.

b. streamlined its delivery process.

c. created a new class of micromarketing.

d. defined consumers' basic needs.

e. redefined mass customization.

a. differentiated its product.

Jeremiah was assigned to help create a positioning strategy based on the product attributes of his employer's products. He should consider

a. the features the engineers feel are most important.

b. the ways the sales representatives have been positioning the firm's products.

c. the characteristics that helped his firm win a statewide award for excellence in manufacturing.

d. what the target market would consider the most important features.

e. the safety record of the firm and its products.

d. what the target market would consider the most important features.

Dove’s marketing communications about its bar soap appeal almost exclusively to women. This is an example of________Blank segmentation.

a. geographic

b. psychographic

c. demographic

d. benefits

e. behavioral

c. demographic

________Blank segmentation is the most common basis of consumer market segmentation because these segments are easy to define and usually easy to reach.

a. Geographic

b. Psychographic

c. Behavioral

d. Benefits

e. Demographic

e. Demographic

What is the purpose of marketing?

Its fundamental purpose is creating, capturing, communicating, and delivering value by developing a variety of offerings, including goods, services, and ideas, to satisfy customer needs and building relationships

What are the 4 P’s and what do they allow marketers to do?

Product: the goods offered to satisfy customer needs

Price: what the customer pays in exchange for the product

Place: how and where the product is distributed and delivered to the customer

Promotion: how information about the product is communicated to the target audience

Give marketers a framework to control and align their strategy, positioning their offering effectively in the market to attract and retain target customers while achieving business goals.

What does value mean in marketing and how do customers think about it?

Value is the customer’s perception of benefits comapred to costs incurred to receive those benefits. Customer weigh all benefits (quality, convenience, status, emotional satisfaction, time saved) against all costs (money, time, effort, stress).

How do price and value relate to each other?

Price reflects value: price is the expression of value a company offers; a high value means the company can offer a higher price

Value determines price acceptability: if the price is higher than perceived value, customers won’t buy it.

What is a supply chain and how does it fit into the marketing mix?

Supply chain is the network of individuals, organizations, resources, activities, and technology involved in creating and moving a product — from raw material suppliers all the way to the final consumer.

The supply chain fits under place, ensuring the right product gets to the right place at the right time in the right condition, enabling a company to deliver on its promise of convenience and availability to the consumer.

What is promotion’s purpose in marketing?

Promotion informs, persuades, and reminds target audiences about a product, service, or brand. It builds awareness of product, educates on features, creates a brand identity, and persuades customers to take action.

What are the macro strategies in marketing?

These are overarching approaches that a firm uses to create customer value and build a sustainable competitive advantage.
Customer Excellence: Focusing on retaining loyal customers and delivering outstanding customer service

Operational Excellence: Maintaining efficient operations, excellent supply chain management, and strong relationships with suppliers to keep costs low and service dependable.

Product Excellence: Offering products with high perceived value, effective branding, and clear positioning.

Locational Excellence: Securing a strong physical or digital presence

How do the macro strategies help marketers make decisions about strategy?

Directing Resource Allocation: Help marketers decide where to invest capital, time, and talent.'

Guiding Positioning: Ensure marketing campaigns and product developments align with the company’s core strength.

Creating Synergy: Combining two or more macro strategies

Sustainable competitive advantage is an important part of marketing, but what does
it mean and what is it comprised of?

Sustainable competitive advantage is an asset, capability, or attribute that a firm possesses that competitors cannot easily copy or duplicate over an extended period. It is comprised of:

Uniqueness: features or service capabilities that set the brand apart.

Durability: The ability to withstand competitive pressures and industry shifts over time.

Difficulty to Replicate: Built on deep-rooted foundations like strong brand equity, proprietary technology, exclusive location rights, or deeply loyal customer relationships.

Know what a SWOT analysis is and how to do it.

A SWOT analysis evaluates a firm’s internal and external environments to guide strategic planning.

Strengths: Positive internal attributes and capabilities

Weaknesses: Negative internal limitations or lack of resources

Opportunities: Favorable external trends or market gaps

Threats: Unfavorable external factors that could cause trouble

How to perform: Gather data (performance reports and market research), list factors, develop strategies (strengths capitalize on opportunities, opportunities overcome weaknesses, strengths minimize threats, and minimize weaknesses and avoid threats)

Segmentation, Targeting, and Positioning (STP) are core parts of identifying a target
customer. Understand what they are and how the process works.

STP is step-by-step process used to identify and serve the right customers effectively:

Segmentation: dividing target market into smaller, distinct subsets of consumers with common needs or characteristics

Strategies: Geographic, Demographic, Psychographic, and Behavioral)

Targeting: evaluating the attractiveness of each market segment (size, growth potential, competition, alignment with firm goals) and selecting which to pursue.

Strategies: Undifferentiated, Differentiated, Concentrated, or Micro-marketing

Positioning: Defining marketing mix so target customers understand what the product stands for and why it is superior to competitors.

Who should be at the center of any marketing decisions?

The customer is always at the center of every marketing decision. Every decision revolves around customer needs, wants, behaviors, and values.

When analyzing the landscape, who are customers, the company, competitors, corporate partners, and the physical environment taking into consideration?

They make up the Immediate Environment.

Customers: analyze demographics, purchasing habits, needs, and feedback to ensure offerings align with consumer demand.

The Company: Firm’s internal capabilities, core competencies, financial resources, and culture, evaluating strengths in order to leverage them.

Competitors: analyze competitors’ strengths, weaknesses, product offerings, pricing, and market share to differentiate their brand.

Corporate Partners: Suppliers, distributors, logistics providers, and advertising agencies; work together to streamline the supply chain and deliver seamless customer experiences.

Physical Environment: Surrondings and resources that affect operations (climate, sustainability, energy use, and ecological impacts) and how they impact corporate strategy and brand perception.

What are the parts of the macroenvironment that marketers analyze to help
determine a strategy?

Macroenvironment consists of external, broader societal forces that a company cannot control but must monitor and adapt to. Use CDSTEP/PESTLE framework:

Culture: shared values, beliefs, morals, and customs of a group of people, analyzed to ensure marketing messages resonate appropriately.

Demographics: Quantifiable characteristics of human populations (age, gender, income level, education, ethnicity, and family structure), to identify growing market segments.

Social Trends: Shifting societal attitudes, consumer behaviors, and values over time (e.g. health and wellness, sustainability, and convenience).

Technological: Transform how products are created, communicated, distributed, and consumed.

Economic: Affect consumer purchasing power and spending habits (inflation rates, interest rates, exchange rates, employment levels, and consumer confidence.)

Political/Legal: Government regulations, trade policies, consumer protection laws, tax rules, and political stability that govern how businesses operate and limit or enable specific marketing practices.

What are the steps in the consumer decision making process (multiple questions)?

Are psychological and behavioral steps a customer goes through before, during, and after making a purchase. 5 steps:

Need Recognition: the customer recognizes an unsatisfied need, triggered by internal or external stimuli (advertisement)

Information Search: consumer searches memory with brands for options to satisfy it (internal) or gather info from friends, family, public sources, and commercial sources (external); more risk = more in-depth search

Alternative Evaluation: Compares features of options; evoked set is small group actual considers based on available choices

Purchase and Consumption: Consumer choose who to buy from, when to buy, and the method of payment; marketer ensures process is seamless and convenient

Postpurchase Behavior: consumer evaluates experience, customer satisfaction leads to brand loyalty and positive word-of-mouth, cognitive dissonance is doubt or regret after purchase, can be reduced through waranties, follow-ups, and customer support.

What factors impact the consumer decision making process?

Marketing Mix, Psychological Factors (motives impel action, perception is how an individual creates a meaningful picture of the world, learning, and attitudes and beliefs), Social Factors (family, reference groups, culture), Situational Factors (purchase situation is who it is for, Sensory/store atmosphere, temporal state is time constraints or time of day or consumer’s state of mind), Level of Involvement

What are the main types of segmentation? How would you use them? (multiple questions)

Demographic Segmentation: used to align basic product features, pricing tiers, and media placement

Geographic Segmentation: used to tailor product lines, inventory levels, or promotional messages to weather conditions, cultural regionalities, or local availability.

Psychographic Segmentation: craft emotional marketing messages, brand positioning, and content that resonate with how consumers see themselves or want to be perceived.

Behavioral Segmentation: used to design loyalty programs, targeted promotional emails, and usage-based product bundles to drive purchases at key moments.

What are the differences between undifferentiated, differentiated, and
concentrated marketing?

Undifferentiated: treating the entire market as a single group and offering one product with one marketing mix

Differentiated: targeting two or more distinct market segments and developing a unique marketing mix

Concentrated: Selecting one market segment and focusing all resources on that group.

What’s the first question you should ask before starting a marketing research study?

What problem or decision are we trying to solve, and will this research help us make a better decision?

What are the five steps in the marketing research process?

1. Define Objectives and Research Needs

2. Design the Research: decide on type of data needed and research method

3. Collect Data

4. Analyze Data and Develop Insights: convert data into useful information

5. Action Plan and Implementation

What are examples of primary and secondary data sources?

Secondary Data: Data collected prior to start of research project (for another purpose)

Primary Data: collected to address current research problem. Qualitative is observation, social media, and focus groups. Quantitative is surveys, panels, scanners, and experiments.