marketing exam2

Business-to-business markets (e.g. a steel company selling steel to different manufacturers) may use different segmentation approaches than found in business-to-consumer markets.

True

Which of the following would most likely  be the least desirable segment to target.

A high growth segment that is in a category unfamiliar to the company.

Micromarketing refers to:

Tailoring products and marketing programs to suit the tastes of specific individuals and locations; includes local marketing and individual marketing.

demographic segmentation

single, married, divorced

geographic segmentation

zip code

benefits segmentation

tissue segmentation

Culture is ______.

The set of basic values, perceptions, wants, and behaviors learned by a member of society from family and institutions.

Perception is when ______.

People select, organize, and interpret, information to form a meaningful picture of the world.

Which purchase scenario is most likely indicative of a high involvement decision?

Selecting a new laptop after consulting online reviews, friends, and store experts.

What is the formula for calculating the contribution margin?

Price - Variable Cost

Deciding on which university and program to attend for a master's degree is a low involvement purchase because an undergraduate degree has already been completed. True or False?

false

What is a variable cost?

A cost that changes with the level of production

Which of the following would increase the break-even point, assuming all other factors remain constant?

An increase in fixed costs

A company has fixed costs of $10,000 and a contribution margin of $5 per unit. How many units must be sold to break even?

2,000 units

Which of the following best captures the marketing philosophy?

Let's serve the customer's wants with the right marketing mix.

when segmenting a marketing we should always start with demographic segmentation because it is best to describe a market

false

In marketing, we define product position (positioning) as:

The place the product occupies in consumers' minds relative to competing products.

The term niche marketing refers to:

A strategy in which a firm goes after a large share a small segment.

In marketing, the concept of problem recognition is ________? (Note: this concept will not appear on the midterm, but it is good learning)

The stage of the business buying process when someone in the company realizes a problem or need that can be met by acquiring a specific product or service.

A characteristic of a low-involvement purchase is a short search time.

true

Consumers use reference points to make judgements

anchoring theory

Consumers weigh losses more than gains

prospect theory

Do something nice for me, I'll do something nice for you

reciprocity theory

The equation: Total Fixed Cost (unit) / (Price (unit) – Variable Cost (unit)) calculates:

break even

In marketing, LTV stands for:

lifetime value

Which is/are part of the marketing mix?

product, price, place, promotion

Maggie has recently opened a new boutique, "Maggie's Designs", and is trying to understand her business metrics. She knows that each dress costs her $50 to produce (variable cost) and she sells each dress for $100. Maggie also has to pay $2000 monthly for her boutique rental (fixed cost). If Maggie wants to find out her break-even point (in number of units), how many dresses does she need to sell?

40 dresses

You have opened a boutique selling handmade jewelry. Your fixed costs, including store lease, utilities, and insurance, total $12,000 per month. The variable costs for materials and labor per piece of jewelry are $5. You sell each piece for $15. How many pieces of jewelry do you need to sell to break-even?

1200 pieces

You are the manager of a luxury pizza restaurant. Your variable costs, which include ingredients and staff wages, are $15 per pizza. Your fixed costs, such as rent, utilities, and management salaries, sum up to $60,000 per month. If each pizza is sold for $45, how many pizzas do you need to sell in a month to reach the break-even point?

2000 pizzas

You've started running a small coffee shop. In your monthly expenses, you have  $12000 per year for rent, $800 per year for utilities and $30,000 salary for management.   For each cup of coffee, you spend $1.5 on beans, milk, sugar, and barista labor. You sell each cup for $5. From the following options, which one is an example of a fixed cost and which one is a variable cost?

Fixed: Rent, Utilities, and Management; Variable: Cost of beans, milk, sugar, and barista labor

Which of the following is NOT a personal factor that can influence a consumer's purchase decision?

perception

A marketing strategist has implemented the scarcity theory in his strategy, hoping to influence consumer purchase decisions. What does the scarcity theory suggest about consumer behavior?

Consumers are more likely to buy a product if they believe it is unique and not easily available.

An international clothing brand is planning to launch a new line of products in the USA. They have an understanding of the USA consumer market, which has 350 million consumers purchasing approximately $14,000,000,000 goods and services. To maximize their sales, they need to understand the consumer buyer behavior. According to our in class sessions, which of the following processes is NOT part of the buyer decision process?

 

Product Distribution

As a product manager for "GreenGlide", a company that manufactures eco-friendly skateboards, you are in charge of identifying a suitable target market for their new product line. Which of the following factors is NOT crucial in evaluating the potential attractiveness of a target market segment?

Color preference of the target segment

You are the product manager for a company called "SportyBoost," which manufactures athletic shoes. Your task is to identify a promising segment to target for a new line of running shoes. Which of the following criteria should you consider when evaluating the attractiveness of different market segments?

Alignment with company strategy, Structural attractiveness, Segment size and growth

You are the marketing manager for a new brand of high-end, eco-friendly sneakers named "EcoSteps". Your shoes are made of recycled materials and are targeted towards environmentally conscious consumers who are willing to pay a premium for sustainable products. Which of the following would capture the positioning of EcoSteps?

"EcoSteps, the premium, sustainable sneaker for environmentally conscious consumers."

You are the marketing manager for a company called "FitFresh", that offers a unique meal delivery service focused on fresh, healthy, and personalized food options. As part of your marketing strategy, you want to use a positioning map to understand the perception of your offering versus competitors. Which of the following statements is the best explanation of how a positioning map could be useful in this context?

A positioning map would help FitFresh understand consumer perceptions of their offering versus competitors.

An e-commerce company reports the following customer data:

Average order value = $80

Average purchase frequency = 5 times per year

Average customer lifespan = 4 years

Average of 3 TikTok videos per year featuring the company’s products

According to our in-class sessions and our Armstrong and Kotler Marketing textbook, calculate the LTV of the customer. 

1600

Generally speaking, which of the following statements is true:

Different market segments require different marketing mixes.

Monster Energy claims that it can "Unleash the Beast" in its drinker. "Unleash the Beast" would be an example of differentiation by:

brand

A regional outdoor apparel company is evaluating two segments:

Segment A consists of 2 million casual buyers and is highly competitive with many national brands.

Segment B consists of 250,000 serious hikers, has moderate competition, and strongly values the company’s specialized, high-performance gear.

Which segment should the company most likely target?

Segment B, because it aligns better with the company's strengths and faces less direct competition