MKTG 301 Exam 1

How does the new concept of marketing differ from the old concept of marketing?
It focuses on the experience of the customer
The act of obtaining a desired object from someone by offering something in return is know as?
an exchange
Which marketing philosophy holds that consumers will favor products that offer the most in quality, performance, and innovative features?
product concept
What is most likely to cause a variation in customer-perceived value?
the customer’s opinion of what constitutes
The ultimate goal of the marketing process is to do which of the following?
receive value from customers
Julie’s Jump Rope Emporium is a brand new company. From a marketing standpoint, What is the first thing the company needs to do?
determine who in the community wants or needs a jump rope
A local drama club wants to increase the membership and attendance at its performances. To do so, it hosts free shows, starts poetry reading nights and sends volunteers to the local high school. What is the drama club engaging in?
market exchange
Which of the following scenarios best describes the societal marketing concept?
Edward’s earthware attempts to make its pottery in a way that satisfies but is also environmentally friendly and sustainable over the long-term
Bestram’s Beer structures its company in such a way as to encourage its most profitable older customers to remain loyal while also targeting a new generation. What is the company attempting to build?
customer equity
What is the importance of selling and advertising in marketing?
they work in tandem with developing good customer relations
How do market demands relate to needs and wants?
needs are satisfied by wants, and buying power converts wants into demand
Why is good marketing management critical?
to ensure that the company serves as many customers as it can and as well as it can
Which of the following describes the current trend in businesses regarding relationships with customers?
hand-pick the most profitable customers and allow them more input
How has the Internet MOST affected companies and customers?
the internet has allowed consumers to take marketing content and share it
When a company engages in strategic planning, it must consider which of the following?
how to take advantage of current business opportunities
What is a business portfolio?
a collection of businesses and products that make up a company
A value chain consists of which of the following?
The series of internal departments that carry out value creating activities
The goal of marketing is to do which of the following?
determine the best way to create value for customers and develop relationships with customers that profit the company
A market dashboard is used to do which of the following?
measure the return of investment for a marketing strategy
A brand new hardware company is writing its mission statement. Which of the following is the best mission statement possible for the new company?
We will help customers build, invigorate, restore, refurbish, or completely redesign their homes or businesses
A company’s best selling product was a portable CD player. However due to the ipods and MP3 players, sales have plummeted and are unlikely to rebound. Which is the best approach for the company to take?
Liquidate the CD player division and use the funds to support new product
A teacher tutoring company is known for awesome teaching and has done a good job that everyone knows that, but the company is losing customers. What should they do?
examine its value delivery market
A jean company is located in Washington and is starting to develop in surrounding states, but it only sells jeans. Which marketing organization would best suit them?
market and customer organization
How do company objectives and goals relate to the company mission statement?
The goals and objectives outline the steps necessary to accomplish the company’s mission statement
The key to a company’s success lies primarily in which of the following?
The ability of the company to coordinate efforts effectively wthin the company and with other members of its supply chain to order and deliever products
What is the purpose of the marketing mix, as a part of the overall marketing strategy?
to elicit a response that influences a demand for the product from the customers that the company is targeting
How do individual components of a SWOT analysis work together to determine the status of a company?
by ascertaining a company’s strengths, relating them to opportunities, minimizing weaknesses, and identifying threats to growth and development
The role of a company’s marketing intermediaries is to do which of the following?
help the company find, promote, sell, and distribute products
The group of economic factors that affect consumers’ purchasing power and spending power is called which of the following?
the economic environment
Which is not a problem involving the natural environment that marketers need to consider?
renewable resources
The purpose of business legislation is primarily based on….
protection
The difference b/w a proactive and reactive stance to the marketing environment can best be described as which of the following
passive versus active responses
Cowboy Gear is having difficulty attaining the credit it needs to expand. Which of the following should the company do to alleviate financial struggle
work out a plan with its financial intermediaries
Which of the following best describes a duty that would fall under the EPA
ensuring that pollution standards are met by a company
Company is changing wedding services to gays, lesbians… Which environment must be carefully analyzed by the wedding company?
cultural
How does the microenvironment of a company differ from its microenvironment?
The microenvironment deals with societal forces, and the microenvironment deals with creating value
Overall, how has the American population changed over time?
It has become more diverse, better educated and more mobile
Which of the following identifies a change in the technological environment that could affect the success of a business?
a company develops a new battery that lasts twice as long as it predecessor
Which of the following is NOT a factor that makes it difficult for companies to adhere to legislation in the business environment?
the shrinking number of laws currently in existence
To be successful, why should companies try to adopt a proactive stance to marketing?
a proactive stance allows a company to influence the market in its favor
Which of the following best describes the purpose of the customer insights team?
to gather and interpret info about customers and the market
Which of the following is NOT likely to be used as an online database that can be accessed by a company to gain information about competitors?
facebook
Which of the following is NOT a step in the marketing research process
comparing research findings to other studies
What is CRM?
a system of customer management
All of the following can be considered problems with gather primary data for an international company except…
unavailability of resources
A company is attempting to gather info about its customers in order to improve its customer service. Which is the best place to start to develop an efficient MIS?
assess the info needs of the company
A company is conducting market research to find the best area to sell their product. They determined their questions and gathered their data. What is the next step for this company in their research plan?
analyze the data and apply it to the marketing situation
A power tool company wants to give its customers information about how best to use its product in creative ways. What should the company do to provide the customers with its info?
a company extranet
An international company has appointed a CPO in order to ensure that the privacy and confidentiality of the consumer data it collects. Which of the following is the CPO most likely to do as a function of his job?
inform customers of the privacy of the company
Having a good MIS is important because…
it enables a company to use customer insights to improve relationships with customers
Which of the following factors is most important to take into account when developing a good MIS?
the usefulness of the information offered
Why is it important for a company to collect both primary and secondary data when conducting marketing research?
to have a full picture of the subject of their study
What is the overarching goal of CRM?
customer loyalty
Which kind of company needs market research more?
both large like proctor and gamble or small locals need market research
What is Marketing?
a social and managerial process involving managing profitable customer relationships. The company creates value for customers.
Old way of making a sale?
telling and selling
New way of making a sale
satisfying customer needs
What is the Marketing Process?
Understand customers and marketplace.
Creating customer value.
Capturing value and creating strong relationship.
Market
Set of all actual and potential buyers for a product or service
Goal of Market Offering?
To fullfil customer needs and wants
Marketing Myopia
the mistake of paying more attention to specific products than to benefits of those products. Losing sigh of underlying customer needs
Brand Experience
When customers immerse themselves in the experience other than the attributes of a product
What is the problem with low customer expectations?
It fails to lure customers
What is the problem with high customer expectations?
It can disappoint customers
What is Market Management?
Choosing target markets and building profitable relationships with these target markets
Importance of Modern Marketing
Each party in the system adds value for the next level

suppliers -> company -> marketing intermediaries -> consumers

Two questions for marketers
What markets will you serve? How can you best serve these markets
Customer-Managed Relationships
Customers can reach the company and other customers
The Selling Concept
Only can sell when theres a large-scale selling promotion effort. Uses the make and sell model.
The Marketing Concept
Knowing the needs and wants of your target markets and delivering satisfaction better than your competitors do. Use the Sense and Response model
Product Concept
Quality, performance, and features in a product
Production Concept
Available and affordable products
Societal marketing concept
Customer’s wants and long term interests, the company’s requirements, and society’s long-term interest
Shared Value
Recognizes societal needs not just economic needs
The 4 P’s of preparing an integrated marketing plan and program. (Market Mix)
Price, Place, Promotion, Product
Marketing Segmentation
dividing the market into distinct groups of buyers who have different needs, characteristics, or behaviors
Market Targeting
Evaluating each market segment’s attractiveness and selecting one or more markets to enter
Positioning
Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of the customer
Marketing Analysis Steps
Planning Implementation, Control.
Customer Relationship Management (CRM)
building and maintaining profitable customer relationships by delivering superior customer value and satisfaction
Customer Value
based on costs versus benefits
Customer-perceived value
Customer evaluation of the products benefits and costs compared to competitors
Customer Satisfaction
When a products perceived performance matches a customer’s expectation
Customer Delight
Customers make repeated purchases and also become willing marketing partners
4 components of customer satisfaction and relationships
basic relationships, full partnership, frequency marketing programs, and club marketing programs
Older customer compared to a acquiring a new customer
It is 5 times cheaper to keep an old customer than acquire a new one
Customer Equity
the total combined customer lifetime values of all the company’s customers, current and potential
Strategic planning
a fit between marketing opportunities and organizational goals and capabilities
Mission Statement
Statement of the organization’s purpose identifies what the organization wants to accomplish in the larger environment
Strategic business units (SBI’s)
Key businesses that make up the company
What makes up the Growth-Share Matrix
Stars, Cash Cows, Dogs, Question marks
Stars
high growth, high share. requires heavy investment to finacne fast growth
Cash Cows
Low growth, high share. established and successful. Needs less to investment, produces a lot of cash for the company.
Question Marks
high growth, low share. Requires a lot of cash to hold their share
Dogs
low growth, low share. may generate enough cash to stay afloat
Market penetration
company growth by increasing sales of current products to current market segmentation. No change in product
Market Development
growth by identifying and developing new market segments for current company products
Product development
growth by offering modified or new products to current market segments
Diversification
growth through starting or acquiring businesses outside the company’s current products/markets
SWOT Analysis
Strength, Weaknesses, Opportunities, Threats
Three steps of SWOT
planning, implementing and controlling
Executive summary
brief summary of goals and recommendations
Current Market situation
describes target market and company’s position
Return on Investment (ROI)
the net return for a marketing investment divided by the cost of the marketing investment
Marketing Environment
the “actors” and forces that affect marketing management’s ability to build and maintain successful relationships with target customers
Microenvironment
Actors close to the company. all the departments like accounting and R&D.
Marcoenvironment
larger societal forces that affect that microenvironment, including demographic, economic, natural, technological, political, and cultural forces
Generational marketing
separating products and marketing programs by generation
Economic environment
economic factors that affect customer purchasing power and spending patterns; marketers must pay close attention to trends to trends and customer spending patterns
Natural Environment
natural resources that are needed as inputs by marketers or that are affected by marketing activities
Political environment
laws, government agencies, and pressure groups that influence and limit organizations and individuals in a society
Cultural environment
forces that affect society’s basic values, perceptions, preferences, behaviors, the society we grow up influences our beliefs and values
Marketing Information Systems (MIS)
people and procedures dedicated to assessing information needs, developing the information and helping managers use the information to generate and validate customer market insights
Market Research
Systematic design, collection, analysis, and reporting of data relevant to specific marketing situations
Qualitative Data
Qualifies a problem
Quantitative Data
Quantifies an answer
Focus Group Interviewing
group interviewing involving 8 -12 people who gather for a few hours to talk about a product, service, or organization
The Marketing Process involves
Understanding the marketplace and customer needs and wants. Capturing value from customers and creating profit. Creating value for customers.
The mistake of paying more attention to specific product than to the benefits of the product is..
Market Myopia
Marketing is defined as…
Managing profitable customer relationships
“Blank” buy again and tell others about their experiences
satisfied customers
This concept is also referred to as the “make and sell” philosophy and involves marketers trying to get customers to buy goods they would not otherwise think of buying
selling concept
This concept is also referred to as the “sense and respond” philosophy in which marketers are trying to find the right products for their customers
Marketing Concept
This concept refers to the idea that customers will favor the products that offer the most quality, performance, and features
Product Concept
The process of dividing a market into distinct groups of buyers who have different needs, characteristics or behaviors, and who might require separate products or marketing programs is called:
Market Segmentation
Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of a customer is called:
Positioning
The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction is called
Customer relationship management (CRM)
A customer’s evaluation of the difference between all the benefits and all the costs of a marketing offer relative to competing offers is called
Customer-perceived value
Caring Capitalist
A company that is founded entirely on a cause-related mission
Steps of Market Research
1. Define the problem and research objectives
2. develop the research plan for collecting the info
3. Implement the research plan, collecting and analyzing the data
4. Interpreting and reporting the findings