What are the advantages and disadvantages of guerrilla marketing?

A: low cost, attracts attention, less competitors.

D: limited exposure, may offend if too outrageous.

What are advantages and disadvantages of public relations?

A: positive attitude towards company, increase credibility

D: may not allow accurate measurement of impact on sales, much effort directed towards non-market-oriented goals.

What are the advantages and disadvantages of Direct marketing?

A: immediate response, wide audience with targeted advertising, customized message, measurabel results.

D: image problem, sometimes seen as annoying, high cost per reader, relies on mailing list accuracy.

What are the advantages and disadvantages of Sales promotion?

A: Immediate consumer response, attracts attention and creates awareness, easy measurement of results, short-term sales increases

D: Non-personal, difficult to differentiate from competitors

What are the advantages and disadvantages of advertising?

A: relatively cheap per exposure, strict control over message, can be mass audience or specific segment.

D: Doesn't permit accurate measurement of results, usually doesn't close a sale.

What are the advantages and disadvantages of personal selling?

A: Permits measurment of effectiveness, immediate response, tailored message to customer

D: expensive per contact, relies soley on salespersons' ability

When would it be appropriate to use professional selling in the promotional strategy?

salespeople can create customer value

-by being close to the customer, salespeople can identify creative solutions to customer problems

-by easing the customer buying process

-by salespeople who follow through after the sale

customer value creation is made possible by relationship selling

What activities are included in the practice of personal selling?

sales activities occurring before and after the sale itself, consisting of six stages:

(1) prospecting

(2) preapproach

(3) approach

(4) presentation

(5) close

(6) follow up

What factors must be considered when formulating the optimal promotional mix?

Answer: Nature of the Product, Nature of the Market, Available Funds, Stage in Product Life Cyle, Price,

Describe the six elements of the promotional mix:

a) personal selling

A process of helping and persuading one or more prospects to purchase a good or service or to act on any idea through the use of an oral presentation.

b) advertising

Presentation and promotion of ideas, goods, or services by an identified sponsor.

c) sales promotion

Media and non-media marketing communication are employed for a pre-determined, limited time to increase consumer demand, stimulate market demand or improve product availability.

d) direct marketing

is a channel-agnostic form of advertising that allows businesses and nonprofits to communicate straight to the customer.

e) guerilla marketing

innovative, unconventional, and low-cost marketing techniques aimed at obtaining maximum exposure for a product.

Paid intimate stimulation of supply for a product, service, or business unit by planting significant news about it or a favorable presentation of it in the media.

f) public relations

Public relations (PR) is the practice of managing the flow of information between an individual or an organization and the public.

How can you determine whether a company is using integrated marketing communication?

Answer: Everyone is using the same sales message in a variety of marketing communications

What is integrated marketing communication (IMC)?

Answer: IMC is the application of consistent brand messaging across both traditional and non-traditional marketing channels and using different promotional[disambiguation needed] methods to reinforce each other.

As defined by the American Association of Advertising Agencies, integrated marketing communications " ... recognizes the value of a comprehensive plan that evaluates the strategic roles of a variety of communication disciplines advertising, public relations, personal selling, and sales promotion and combines them to provide clarity, consistency, and maximum communication impact."

Describe the five objectives of promotion:

a) provide information

Some promotion is designed to assist customers in the search stage of the purchasing process. In some cases, such as when a product is so novel it creates a new category of product and has few competitors, the information is simply intended to explain what the product is and may not mention any competitors. In other situations, where the product competes in an existing market, informational promotion may be used to help with a product positioning strategy. As we discuss in the Targeting Markets tutorial, marketers may use promotional means, including direct comparisons with competitor's products, in an effort to get customers to mentally distinguish the marketer's product from those of competitors.

b) increase demand

The right promotion can drive customers to make a purchase. In the case of products that a customer has not previously purchased or has not purchased in a long time, the promotional efforts may be directed at getting the customer to try the product. This is often seen on the Internet where software companies allow for free demonstrations or even free downloadable trials of their products. For products with an established customer-base, promotion can encourage customers to increase their purchasing by providing a reason to purchase products sooner or purchase in greater quantities than they normally do. For example, a pre-holiday newspaper advertisement may remind customers to stock up for the holiday by purchasing more than they typically purchase during non-holiday periods.

c) differentiate a product

New products and new companies are often unknown to a market, which means initial promotional efforts must focus on establishing an identity. In this situation the marketer must focus promotion to: 1) effectively reach customers, and 2) tell the market who they are and what they have to offer.

d) accentuate value

Moving a customer from awareness of a product to making a purchase can present a significant challenge. As we saw with our discussion of consumer and business buying behavior, customers must first recognize they have a need before they actively start to consider a purchase. The focus on creating messages that convince customers that a need exists has been the hallmark of marketing for a long time with promotional appeals targeted at basic human characteristics such as emotions, fears, sex, and humor.

e) stabilize sales

Once a purchase is made, a marketer can use promotion to help build a strong relationship that can lead to the purchaser becoming a loyal customer. For instance, many retail stores now ask for a customer's email address so that follow-up emails containing additional product information or even an incentive to purchase other products from the retailer can be sent in order to strengthen the customer-marketer relationship.

What are some of the issues a firm must address when considering off shoring?

Answer: loss of control to product quality and safety; loss of control of technology; social responsibility; environmental sustainability; time it takes to ship to the us

Why do companies employ off shoring?

Answer: process can be performed more efficiently and more cost-effectively.

What is off shoring?

Answer: Some firms will outsource production to companies abroad.

What is the difference between direct selling, channels using intermediaries, dual distribution, and reverse (logistics) channels?

Answer: Direct selling is where there is direct sales contact with the final user. Channels using Marketing Intermediaries is when several different channels are used to deliver the product. Many times they are more efficient, less expensive, and less time-consuming than direct channels. Dual Distribution is the movement of products through more than one channel to deliver the product. Reverse Channels are designed to provide a way to return the product to the producer..

What is the difference between the three categories of distribution intensity? Intensive distribution, Selective distribution and Exclusive.

a) Intensive distribution

A marketing strategy under which a company sells through as many outlets as possible, so that the consumers encounter the product virtually everywhere they go: supermarkets, drug stores, gas stations, and the like. Soft drinks are generally made available through intensive distribution.

b) Selective distribution

Selective distribution is a useful tool at the disposal of the supplier since it can refuse to sell to those dealers that do not comply with the set criteria. This system is therefore interesting since it allows the supplier of products to organise its distribution according to its wishes and strategy.

c) Exclusive

agreement, a manufacturer appoints a preferred distributor to have the sole rights to sell its products in a defined territory. The manufacturer looks for the increased product demand created by a motivated, aggressive seller of its products.

Describe each of the elements of the six components of physical distribution. Customer service (Organisational Structure), Transportation, Inventory control, Order processing, Communications, Protective packaging and materials handling.

a) Customer service (Organisational Structure)

The person in charge of the physical distribution should co-ordinate all Activities into an effective system to provide the desired customer service in the most efficient manner. Examples of organizational consideration are: (i) How can the five elements of physical distribution best be coordinated so that a team effort results? How can compartmentalization thinking be avoided? (ii) If a central head is established to direct all physical distribution activities, to whom should he report—The Head of the Marketing or The Chief Executive Officer?

b) Transportation

It is an essential element of physical distribution. It involves integrating the advantages of each transportation method by adopting containers and physical handling producers to permit transfers among different types of carriers.

For example, to place containers in railway flat cars and then load the containers on motor vehicles is called "piggy back" and if the containers are off loaded to water carriers, it is called "flash back." Exchange of containers between air and truck carriers are referred to as "Air truck" or "birdy back".

The marketing manager has to decide to (i) what mode or combination of modes of transportation (rail, truck, pipeline, water ways or air) should be used to transport products to warehouses and from there to customers? (ii) Should the transportation cost be reduced and the desired levels of customer service still maintained.

c) Inventory control

Inventory refers to the stock of products a firm has on hand and ready for sale to customers. Inventories are kept to meet market demands promptly. Inventory is the link interconnecting the customer's orders and the company's production activity.

Infact the entire physical distribution management rotates around the inventory management. Inventory management is the heart of the game of physical distribution.

Marketing managers undertake an inventory planning to develop adequate assortments of products for the target market and also try to control the costs involved in obtaining and maintaining inventory.

Marketing managers generally take three decisions while conducting inventory management, viz, (i) how can the track be kept, on a day-to- day basis of location, amount and the condition of the inventory? (ii) How can inventory information best be channelled to production managers or buyers for resale to help them schedule their activities? (iii) What inventory information can other departments in the organisation use to help them perform their functions efficiently?

d) Protective packaging and materials handling

It involves moving products in and out of a stock. It consists of routine tasks that can be performed through mechanisation and standardisation. Efficiency is increased through use of electronic data processing to control conveyor systems, order picking and other traffic flaws.

The modern mechanised handling services and protective packaging have improved the level of customer service and at the same time lowered physical distribution costs. Material handling and packaging services have also speeded up the order processing and movement of consignments.

e) Order processing

Order-processing and inventory control are related to each other. Order processing is considered as the key to customer service and satisfaction. It includes receiving, recording, filling, and assembling of products for dispatch. The amount of time required from the dates of receipt of an order up to the date of dispatch of goods must be reasonable and as short as possible.

It comprises in undertaking the processes that are needed to make certain orders processed quickly, accurately, and efficiently. The marketing manager has to decide about these along with such issues as what is the most efficient way to bill customers; how cans the paper work may be minimized? And how can the physical function of assembling orders more efficiently?

f) Communications

It is a process of passing information and understanding from one person to another. This includes the information system which should link producers, intermediaries, and customers. Computers, memory systems, display equipment and other communication technology facilitate the flow of information among other members in the channel.

A manager to be successful must develop an effective system of communication. So that he may issue instructions, receive the reactions of the subordinates, and guide and motivate them.

What is a supply chain?

Answer: Entire network of entities, directly or indirectly interlinked and interdependent in serving the same consumer or customer. It comprises of vendors that supply raw material, producers who convert the material into products, warehouses that store, distribution centers that deliver to the retailers, and retailers who bring the product to the ultimate user. Supply chains underlie value-chains because, without them, no producer has the ability to give customers what they want, when and where they want, at the price they want.

What are the causes of horizontal and vertical channel conflict?

Horizontal Conflicts

A horizontal conflict refers to a disagreement among two or more channel members at the same level. For example, suppose a toy manufacturer has deals with two wholesalers, each contracted to sell products to retailers in different regions. If one wholesaler decides to branch its operations into the other wholesaler's region, a conflict will result. If the toy manufacturer doesn't help solve the problem, its business dealings with both the wholesalers -- and the downstream retailers, as well -- might be in jeopardy.

Vertical Conflicts

Vertical conflicts involve a disagreement between two channel members on consecutive levels. For example, if the toy manufacturer discovers its products are arriving at retail stores later than scheduled, a conflict might develop between the manufacturer and the wholesaler responsible for shipping to retailers. At the same time, the retail stores might be in conflict with the wholesaler due to its inability to ship products on time.

What is the difference between vertical and horizontal conflicts?

Answer: Horizontal and vertical marketing conflicts involve disagreements among businesses in a marketing channel. A marketing channel is how a product moves from its manufacturer to the consumer. Channels have different stages, or levels. Typically, the first level of a channel is a factory. The second level is the wholesaler who buys a large number of products to sell to retail stores, which occupy the third and final level. When members of a channel disagree about methods or goals, conflicts ensue.

What is a marketing channel?

Answer: Channel marketing is primarily a strategy employed by large firms that offer many products across a wide sales territory.

What is the difference between differentiated and undifferentiated marketing?

Answer: The undifferentiated marketing strategy focuses on an entire target market rather than a segment of it. This strategy employs a single marketing mix -- one product, one price, one placement and a single promotional effort -- to reach the maximum number of consumers in that target market.

A differentiated marketing strategy targets different market segments with specific marketing mixes designed especially to meet those segments' needs. Each mix includes a product, price, placement and promotional program customized specifically for a particular segment. For example, a company that manufactures vitamin supplements might identify gender-based market segments. It could produce one multivitamin formula for women and another for men. It could further differentiate by segmenting the gender groups by life stage and creating different marketing mixes around each one. Differentiated marketing is best suited for markets with readily identifiable segments, each with distinctive needs.

Why do companies position products?

Answer: Product positioning is the process marketers use to determine how to best communicate their products' attributes to their target customers based on customer needs, competitive pressures, available communication channels and carefully crafted key messages. Effective product positioning ensures that marketing messages resonate with target consumers and compel them to take action.

How can a firm use a positioning map to help them develop marketing strategy?

Answer: As the maps are based on the perception of the buyer they are sometimes called perceptual maps. Positioning maps show where existing products and services are positioned in the market so that the firm can decide where they would like to place (position) their product. Firms have two options they can either position their product so that it fills a gap in the market or if they would like to compete against their competitors they can position it where existing products have placed their product.

Explain each of these approaches/strategies to positioning:
product class.

Answer: This positioning strategy tends to take a leadership position in the overall market. Statements with the general message of "we are the best in our field" are common.

Explain each of these approaches/strategies to positioning:
product user

Answer: This positioning approach highlights the user (the ideal or representative target consumer) and suggests that the product is the ideal solution for that type of person and may even contribute to their social self-identity.

Explain each of these approaches/strategies to positioning:
application

Answer: With this approach, the product/brand is positioned in terms of how it is used in the market by consumers, indicating that the product is the best solution for that particular task/use.

Explain each of these approaches/strategies to positioning:
competitors

Answer: With this approach the firm would directly compare (or sometimes just imply), a comparison against certain well-known competitors (but not generally not the whole product class as above).

Explain each of these approaches/strategies to positioning:
price/quality

Answer: Some firms will position products based on relative high quality, or based on the claim that they represent significant value.

Explain each of these approaches/strategies to positioning:
attributes

Answer: A product attribute is a specific feature or benefit of the product. Positioning in this way focuses on one or two of the product's best features/benefits, relative to the competitive offerings.

Explain each of these criteria for market segments: What is market positioning?

Answer: An effort to influence consumer perception of a brand or product relative to the perception of competing brands or products. Its objective is to occupy a clear, unique, and advantageous position in the consumer's mind.

Explain each of these criteria for market segments: Good profit potential

Answer: Relevant: The size and profit potential of a market segment have to be large enough to economically justify separate marketing activities for this segment.

Explain each of these criteria for market segments: Able to serve the segment.

Answer: Accessible: The segment has to be accessible and serviceable for the organization. That means, for instance, that there are target-group specific advertising media, as magazines or websites the target audience likes to use.

Explain each of these criteria for market segments: Match with marketing capabilities.

Distinguishable: The market segments have to be that diverse that they show different reactions to different marketing mixes.

marketing capabilities-do you have the capability to get to the market

Explain each of these criteria for market segments: Measurable purchasing power and size.

Measurable: It has to be possible to determine the values of the variables used for segmentation with justifiable efforts. This is important especially for demographic and geographic variables. For an organization with direct sales (without intermediaries), the own customer database could deliver valuable information on buying behavior (frequency, volume, product groups, mode of payment etc).

How would you describe product-related (behavioral) segmentation? Name and explain three variables to segment customers?

Dividing people and organization into groups according to how they behave with or act towards products.

Organic, diabetic, allergies

What is demographic segmentation? Name and explain at least 5 different ways to demographically segment customers?

Answer: Segmenting buyers by tangible, personal characteristics such as their ages, incomes, ethnicity, family sizes and so forth.

What is the difference between market segments and target markets?

Market Segmentation The process of breaking down all consumers into groups of potential buyers with similar characteristics.

Targeted Marketing Choosing select groups of people to sell to.

What is the Robinson-Patman Act? How does it affect pricing strategies?

is a United States federal law that prohibits anticompetitive practices by producers, specifically price discrimination.

The Robinson-Patman Act is an amendment to the 1914 Clayton Antitrust Act and is supposed to prevent "unfair" competition.

Price discrimination is illegal if it's done on the basis of race, religion, nationality, or gender, or if it is in violation of antitrust or price-fixing laws.

What are the differences between the three global pricing strategies?

Standard worldwide price is possible if foreign marketing costs are low and do not affect overall costs; Dual pricing establishes separate domestic and export price strategies; Market-differentiated pricing allows companies to price products according to marketplace conditions.

EXAMPLES

Skimming - IPOD; Penetration - Emachines computers; Competitive - cell phone sales

What are examples of internal factors that affect pricing decisions?

1. Cost:

While fixing the prices of a product, the firm should consider the cost involved in producing the product. This cost includes both the variable and fixed costs. Thus, while fixing the prices, the firm must be able to recover both the variable and fixed costs.

2. The predetermined objectives:

While fixing the prices of the product, the marketer should consider the objectives of the firm. For instance, if the objective of a firm is to increase return on investment, then it may charge a higher price, and if the objective is to capture a large market share, then it may charge a lower price.

3. Image of the firm:

The price of the product may also be determined on the basis of the image of the firm in the market. For instance, HUL and Procter & Gamble can demand a higher price for their brands, as they enjoy goodwill in the market.

4. Product life cycle:

The stage at which the product is in its product life cycle also affects its price. For instance, during the introductory stage the firm may charge lower price to attract the customers, and during the growth stage, a firm may increase the price.

5. Credit period offered:

The pricing of the product is also affected by the credit period offered by the company. Longer the credit period, higher may be the price, and shorter the credit period, lower may be the price of the product.

6. Promotional activity:

The promotional activity undertaken by the firm also determines the price. If the firm incurs heavy advertising and sales promotion costs, then the pricing of the product shall be kept high in order to recover the cost.

What is allowed under the fair trade laws?

Fair-trade laws protect businesses and governments from companies or countries attempting to dump goods into a marketplace at low prices or with unfair subsidies. Initially, fair trade was primarily a domestic issue; after World War II, fair-trade laws developed into a key tenet of international trade relations.

The U.S. and other governments provide financial assistance, or subsidies, to companies to aid in the production, manufacture, or exportation of goods. Subsidies run the gamut from cash payments to companies to loans granted at below market rates to stimulate sales in other countries. When governments determine that an unfair subsidy has been granted, they can offset the subsidy through higher import duties, thus keeping competition open between foreign and domestic companies.

What are fair trade laws?

Answer: was a statute in any of various states of the United States that permitted manufacturers the right to specify the minimum retail price of a commodity, a practice known as "price maintenance". Such laws first appeared in 1931 during the Great Depression in the state of California.

Such laws first appeared in 1931 during the Great Depression in the state of California. They were ostensibly intended to protect small businesses to some degree from competition from very large chain stores during a time when small businesses were suffering. Many people objected to this on the grounds that if the manufacturers could set the price, consumers would have to pay more even at large discount stores. The complexity of the market also made the enforcement of these laws almost impractical. As the chain stores became more popular, and bargain prices more common, there was a widespread repeal of the laws in many jurisdictions. By 1975, the laws had been repealed completely.

What is bundle pricing and why would it be used?

Answer: In a bundle pricing, companies sell a package or set of goods or services for a lower price than they would charge if the customer bought all of them separately. Common examples include option packages on new cars, value meals at restaurants and cable TV channel plans. Pursuing a bundle pricing strategy allows you to increase your profit by giving customers a discount.

What are the differences among the following pricing strategies: Skimming, Penetration, and Competitive?

a. Skimming

Small business owners price their goods and services using strategies that fit their target markets' budgets. Price skimming is a type of strategy that businesses use when they are first to enter the market with a product or service. With price skimming, when a product is released, it's offered at high price and then lowered later in the product's life cycle or when competition begins to enter the market.

b. Penetration

Penetration pricing is the practice of setting an initial price much lower than the eventual standard price. "A penetration strategy is the price war; this strategy goes for the deepest price cuts driving at every moment to have your price be the lowest on the market," reports Joern Meissner, of Meissner Research Group, a Lecturer in Management Science at the Lancaster University Management School. Customers who are looking for the best bargain will switch their loyalty to you if you can entice them with the lowest prices. This strategy works best during a product's growth phase, since the product already has a positive reputation.

Penetration pricing can bring new customers into your store, increasing market share and building customer loyalty. However, when implemented incorrectly, it may cause you to lose money and may increase competition rather than decrease it. To price products most effectively, consider your cost/profit objectives, customers, the product's life cycle and your competition.

Use penetration pricing only if you need an exceptionally low price to drawn attention from customers or to scare away competitors. You will have the most success when the given product is mass-produced since the cost per unit is usually lower. Your business must be able to absorb any loss incurred when you slash prices, so make sure you have enough reserve funds to keep the business afloat.

c. Competitive

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What is 'Competitive Pricing'

Competitive pricing is setting the price of a product or service based on what the competition is charging. Competitive pricing is used more often by businesses selling similar products, since services can vary from business to business while the attributes of a product remain similar. This type of pricing strategy is generally used once a price for a product or service has reached a level of equilibrium, which often occurs when a product has been on the market for a long time and there are many substitutes for the product.

How would you describe the relationship between price and quality?

Answer: For most products the relationship between price and quality was weak. Hypotheses were developed and tested to explain the variation of price-quality correlations across products. Further, price-quality correlations were found to be lower when the inflation rate was relatively high. It was concluded that, in general, price appears to be a poor market signal of quality.

What are the different types of pricing objectives?

Survival

Prices are flexible. A company can lower them in order to increase sales enough to keep the business going. The company uses a survival-based price objective when it's willing to accept short-term losses for the sake of long-term viability.

Profit

Price has both direct and indirect effects on profit. The direct effect relates to whether the price covers the cost of producing the product. Price affects profit indirectly by influencing how many units sell. The number of products sold also influences profit through economies of scale -- the relative benefit of selling more units. The primary profit-based objective of pricing is to maximize price for long-term profitability.

Sales

Sales-oriented pricing objectives seek to boost volume or market share. A volume increase is measured against a company's own sales across specific time periods. A company's market share measures its sales against the sales of other companies in the industry. Volume and market share are independent of each other, as a change in one doesn't necessarily spur a change in the other.

Status Quo

A status quo price objective is a tactical goal that encourages competition on factors other than price. It focuses on maintaining market share, for example, but not increasing it, or matching a competitor's price rather than beating it. Status quo pricing can have a stabilizing effect on demand for a company's products.

Name a company that is a second-mover?

Answer: Google pad, Samsung

Name a company that is a first mover?

Answer: Apple I Pad

What are the advantages and disadvantages of being a second mover?

The downside of being a second mover is that you spend a lot of time trying to catch

up with the innovators in terms of sales and revenue.

It's more challenging to capture market share

when the first mover has established a loyal customer base.

How would you describe second-mover strategy?

Answer: 

The second mover follows the lead of the innovator, enhance the unique advantage

of being able to learn from the mistakes and successes of the first mover, typically,

at a much lower cost than that of the first mover.

What are the advantages and disadvantages of being a first mover?

They lead the market by introducing new products and services.

Well, these often results and strong brand recognition, customer loyalty,

and dominate market share, it also cost a lot to be the leader.

And this often leads to diminished profit over the long-term even when revenues are high.

How would you describe first-mover strategy?

Answer: An innovative organization leads its industry in new developments. Innovators use a corporate level approach, which has some decided benefits, primarily developing long-term relationships that can lead to being a market winner.

What are the two elements of every marketing strategy?

Answer: Target market and marketing mix.

What is the purpose of a marketing plan?

Some companies craft a separate document covering marketing strategies that includes a more in-depth analysis of their marketing goals and objectives. It includes an analysis of the size of the market segment and the potential growth rate of the total market. It identifies the strengths and weaknesses of competitors and demonstrates how the company intends to set itself apart from competitors. The marketing plan also provides a detailed description of the products and services, including how the products and services benefit their customers.

What is the difference between a business plan and a marketing plan?

The business plan provides a wide overview of the business, which includes information on staff, operations, location, marketing and financial aspects, as well as clearly outlined missions and goals

The marketing plan details actions that achieve the company's missions and goals. This plan identifies the business risqué; price points, target markets and competition. It explains how the business generates customers through advertisements, trade show participation and new referrals.

What is the difference between strategic and tactical planning?

Answer: strategy involves planning a company's next move, and tactics involve physically carrying out the plan.

Why is interactive marketing an important tool for marketers?

Answer: is a one to one marketing process that reacts and changes based on the actions of individual customers and prospects. This ability to react to the actions of customers and prospects means that trigger based marketing is dramatically more effective than normal direct marketing.

What are some examples of products that would fall into those categories?

Answer: 

Low- groceries

High- car, house

What is the difference between high-involvement and low-involvement purchase decisions?

Low-involvement purchases are made with no planning or previous thought. These buying decisions are called impulse buying.

High-involvement decisions carry a higher risk to buyers if they fail, are complex, and/or have high price tags. A car, a house, and an insurance policy are examples. These items are not purchased often but are relevant and important to the buyer. Buyers don't engage in routine response behavior when purchasing high-involvement products. Instead, consumers engage in what's called extended problem solving, where they spend a lot of time comparing different aspects such as the features of the products, prices, and warranties.

What is the difference between: routinized response behavior, limited problem solving, and extended problem solving?

a) routinized response behavior

A type of purchasing scenario whereby the purchaser of a product or a service has past experience with purchasing it and automatically makes the decision to purchase again. Brand recognition plays a large part in routine response behavior. Can also be referred to as habitual response behavior.

b) limited problem solving, and

The consumer has a clear vision of its expectations and decision criteria. He already had an experience with the product and knows it. However, he is still undecided about the brand or a particular model to choose and which one will best meet his needs. The level of consumer involvement is moderate and information seeking is more limited. He will compare available products and especially want to determine which brand is best for him. The purchasing process will be shorter. This is the kind of behavior found for occasional purchases such as clothing, video games and cosmetics.

c) extended problem solving?

It is when the consumer discovers a new product category or wants to buy a product he does not know well and / or is particularly expensive and / or which present a significant risk regarding his economical or psychological point of view. His lack of "experience" in the matter leads to his lack of decision criteria to make his choice. He has no preference for a brand or a specific product. The level of consumer involvement is high. He will invest a lot of time looking for information and benchmarks to make his choice. The level of uncertainty and confusion about the choice of product can be high. The purchase process is usually quite long. This is the case, for example, for buying a car or a new computer.

What are the steps (in order) of the consumer decision-making process?

1. Problem Recognition

2. Information Search Process

3. Evaluating Alternatives

4. Selection Stage/ Purchase Decision

5. Evaluation of Decision

6. Post-Purchase Evaluation

Name and explain the personal influences that affect consumer buying behavior?

Within a reference group that influence the consumer buying behavior, several roles have been identified:

1. The initiator: the person who suggests buying a product or service

2. The influencer: the person whose point of view or advice will influence the buying decision. It may be a person outside the group (singer, athlete, actor, etc..) but on which group members rely on.

3. The decision-maker: the person who will choose which product to buy. In general, it's the consumer but in some cases it may be another person. For example, the "leader" of a soccer supporters' group (membership group) that will define, for the whole group, which supporter's scarf buy and bear during the next game.

4. The buyer: the person who will buy the product. Generally, this will be the final consumer.

Name and explain at the social influences that affect consumer buying behavior?

Social classes are defined as groups more or less homogenous and ranked against each other according to a form of social hierarchy. Even if it's very large groups, we usually find similar values​​, lifestyles, interests and behaviors in individuals belonging to the same social class.

We often assume three general categories among social classes : lower class, middle class and upper class.

People from different social classes tend to have different desires and consumption patterns. Disparities resulting from the difference in their purchasing power, but not only. According to some researchers, behavior and buying habits would also be a way of identification and belonging to its social class.

Name and explain the cultural influences that affect consumer buying behavior?

Culture is crucial when it comes to understanding the needs and behaviors of an individual.

an individual will be influenced by his family, his friends, his cultural environment or society that will "teach" him values, preferences as well as common behaviors to their own culture.

For a brand, it is important to understand and take into account the cultural factors inherent to each market or to each situation in order to adapt its product and its marketing strategy. As these will play a role in the perception, habits, behavior or expectations of consumers.

Describe and give examples of these three primary research methods:

a) observation

observational method (sometimes referred to as field observation) human behavior is closely observed. There are two main categories of the observational method — naturalistic observation and laboratory observation.

b) surveys

In survey method research, participants answer questions administered through interviews or questionnaires. After participants answer the questions, researchers describe the responses given. In order for the survey to be both reliable and valid it is important that the questions are constructed properly. Questions should be written so they are clear and easy to comprehend.

c) controlled experiments.

Case study research involves an in-depth study of an individual or group of indviduals. Case studies often lead to testable hypotheses and allow us to study rare phenomena. Case studies should not be used to determine cause and effect, and they have limited use for making accurate predictions.

What is primary research?

Answer: is defined as factual, firsthand accounts of the study written by a person who was part of the study. The methods vary on how researchers run an experiment or study, but it typically follows the scientific method. One way you can think of primary research is that it is typically original research.

Where can secondary research sources be found?

Answer: For instance, secondary research often takes the form of the results from two or more primary research articles and explains what the two separate findings are telling us. Or, the author may have a specific topic to write about and will find many pieces of primary research and use them as information in their next article or textbook chapter.

What is secondary research?

Answer: is defined as an analysis and interpretation of primary research. The method of writing secondary research is to collect primary research that is relevant to a writing topic and interpret what the primary research found.

Explain how the Internet impacts each element of Porter's Five Forces model?

Rivalry between companies - blurs difference between

Bargaining power of buyer - shifts greater power to end customer

Potential new entrants - reduces barrier o entry

Threat of substitute - creates new substitution threats

Bargaining power of supplier - increases bargaining power of supplier

What is the difference between direct and indirect competition?

Answer: Direct is companies that sell same product. Indirect is companies that sell products that can be substituted for each other

What is environmental scanning?

Answer: process of collecting information about external marketing environment to identify and interpret potential threats. What is going to affect the company?

Why do government and non-profit organizations contribute to the technological environment?

research & development from private companies and the government have all led to new innovations. Govt - airbags, internet, microwaves

13. Name and explain the factors that are part of the competitive environment

*marketers competing with directly competing products

*marketers competing with companies selling product that can be substituted for their own

*all companies competing for consumer's purchasing power

In the Political-Legal environment, what are the differences between the three governmental regulation acts that occurred in the Antimonopoly Period?

1-Sherman Antitrust Act. Definition. A federal anti-monopoly and anti-trust statute, passed in 1890

2-The Clayton Act (1914) strengthens the Sherman Act by restricting practices like price discrimination, tying up contracts, interlocking boards of directors. It also amended the Celler-Kefauver Antimerger Act to prohibit major asset purchases that would decrease competition in an industry.

3-Federal Trade Commission Act prohibits unfair methods of competition and established the Federal Trade Commission, which is an administrative agency that investigates business practices and enforces the FTC Act

What factors are parts of the political-Legal environment?

Answer: Laws and the interpretations that require firms to operate under competitive conditions and to protect consumer rights

What are examples of innovations in the Technological Environment changing the market landscape?

Answer: QR codes being added to marketing material. Smartphone users can scan and go directly to site to view products offered

What is an example of a new technology making an older technology obsolete?

Answer: 

email- hand written letters are almost obsolete

kindles/ereaders - decreasing sales of books

Name and explain the technological factors.

Answer: discoveries in science, inventions & innovations - all lead to new/different/improved products

Name and explain the factors of the social-cultural environment that influences marketing decisions? Give examples.

Answer: 

social trends - attitudes towards new product/topics

demographic characteristics - age, income, marital status, education & occupation

Culture - beliefs & values people hold

Which economic factors affect consumer buying power?

Answer: unemployment, income, inflation/deflation, stages of business cycle

In the Competitive Environment, what are the differences between a monopoly and an oligopoly?

Answer: monopoly just 1 company in market. very high entry barriers or completely blocked. price maker. oligopoly has very few companies, significant entry barriers, companies depend on each other to set price

Name and explain the factors that are part of the economic environment?

Answer: prosperity (consumer spending is brisk), recession (consumer focus is basic, necessary products) depression (consumer spending is at its lowest) and recovery (consumer spending is restrained)

Why is competition important to maintain in an industry?

Answer: Without competition there would be no industry. Having competition forces companies to think outside of the box and be more innovative

What different levels of planning can organizations utilize?

Answer: Corporate (execs & high level) Business (strategic business unit level) Functional (various depts in organization)

When would it be appropriate for a firm to employ each of the strategies?

Answer: Portakabin focuses on its core activities. These are the activities that it has the most experience of and has a reputation for producing. For Portakabin this is factory manufactured buildings as this is what its reputation has been built around. To increase sales Portakabin decided that product development was the best marketing strategy to use. This strategy would allow Portakabin to provide more choices for its customers in order to meet their needs more closely. This strategy allowed Portakabin to improve its products with a medium level of risk.

Describe each strategy of the Ansoff Matrix:

Answer: product diversification.

This involves moving new products into new markets at the same time. It is the most risky strategy. The more an organisation moves away from what it has done in the past the more uncertainties are created. However, if existing activities are threatened, diversification helps to spread risk.

Describe each strategy of the Ansoff Matrix:

Answer: product development

Product development - This involves developing new products for existing markets. Product development involves thinking about how new products can meet customer needs more closely and outperform the products of competitors.

Describe each strategy of the Ansoff Matrix:

Answer: market development

Market development - This strategy entails finding new markets for existing products. Market research and further segmentation of markets helps to identify new groups of customers.

Describe each strategy of the Ansoff Matrix:

Answer: market penetration

Market penetration - This involves increasing market share within existing market segments. This can be achieved by selling more products/services to established customers or by finding new customers within existing markets.

What are examples of products in each of the product life cycle stages?

3D Televisions: 3D may have been around for a few decades, but only after considerable investment from broadcasters and technology companies are 3D TVs available for the home, providing a good example of a product that is in the Introduction Stage.

Blue Ray Players: With advanced technology delivering the very best viewing experience, Blue Ray equipment is currently enjoying the steady increase in sales that's typical of the Growth Stage.

DVD Players: Introduced a number of years ago, manufacturers that make DVDs, and the equipment needed to play them, have established a strong market share. However, they still have to deal with the challenges from other technologies that are characteristic of the Maturity Stage.

Video Recorders: While it is still possible to purchase VCRs this is a product that is definitely in the Decline Stage, as it's become easier and cheaper for consumers to switch to the other, more modern formats.

What is the difference between each of the four stages of the product life cycle?

Introduction Stage - This stage of the cycle could be the most expensive for a company launching a new product. The size of the market for the product is small, which means sales are low, although they will be increasing. On the other hand, the cost of things like research and development, consumer testing, and the marketing needed to launch the product can be very high, especially if it's a competitive sector.

Growth Stage - The growth stage is typically characterized by a strong growth in sales and profits, and because the company can start to benefit from economies of scale in production, the profit margins, as well as the overall amount of profit, will increase. This makes it possible for businesses to invest more money in the promotional activity to maximize the potential of this growth stage.

Maturity Stage - During the maturity stage, the product is established and the aim for the manufacturer is now to maintain the market share they have built up. This is probably the most competitive time for most products and businesses need to invest wisely in any marketing they undertake. They also need to consider any product modifications or improvements to the production process which might give them a competitive advantage.

Decline Stage - Eventually, the market for a product will start to shrink, and this is what's known as the decline stage. This shrinkage could be due to the market becoming saturated (i.e. all the customers who will buy the product have already purchased it), or because the consumers are switching to a different type of product. While this decline may be inevitable, it may still be possible for companies to make some profit by switching to less-expensive production methods and cheaper markets.

What steps can an organization take to ensure ethical conduct and behavior at work?

Answer: Create ethics programs, train ee's, and create standards and moral conducts ee's need to follow

What ethical issues can arise regarding the product area of the marketing mix?

Answer: Companies can lead consumers to thinking the product has more than it actually does as in consumer packaging.

How do companies use total quality management as part of product strategy?

Answer: The effort to create and market high-quality goods and services, with constant monitoring and improvement of the product.

What is the purpose of the ISO system?

ISO management system standards provide a model to follow when setting up and operating a management system. Like all our standards, they are the result of international, expert consensus and therefore offer the benefit of global management experience and good practice.

These standards can be applied to any organisation, large or small, whatever the product or service and regardless of the sector of activity.

The benefits of an effective management system include:

more efficient use of resources

improved risk management, and

increased customer satisfaction as services and products consistently deliver what they promise.

Audits

Audits are a vital part of the management system approach as they enable the company or organization to check how far their achievements meet their objectives and show conformity to the standard.

What is total quality management (TQM)?

Answer: describes a management approach to long-term success through customer satisfaction. In a TQM effort, all members of an organization participate in improving processes, products, services, and the culture in which they work.

What characteristics are associated with each of these categories:

Answer: specialty products

is a product that certain consumers will actively seek to purchase because of unique characteristics or loyalty to a specific brand. Consumers who seek specialty products know what they want and will spend the time and effort to get it. They typically will not easily accept substitute products.

What characteristics are associated with each of these categories:

shopping products

is a type of product that requires consumer research and comparison of brands. Homogeneous and heterogeneous are the two specific types of shopping products. Homogeneous products are perceived by consumers as very similar in nature and the final purchase is usually determined on the lowest price.

What characteristics are associated with each of these categories:

convenience products

A consumer item that is widely-available, purchased frequently and with minimal effort. Because a convenience good can be found readily, it does not require the consumer to go through an intensive decision-making process. Examples of convenience goods include newspapers and candy.

Name and explain the four categories in the consumer product classification system?

1. Convenience products:

The key to success for convenience products are a strong brand (product mix) and intensive distribution (place mix). This fundamental platform can then be enhanced through in-store sales promotions (promotional and place mix) and leveraged through product line extensions (product mix).

Therefore, the key marketing mix factors for convenience products are:

Place - intensive distribution with good in-store position

Product - a strong recognizable brand

2. Shopping products:

The key marketing mix elements for shopping products include selective distribution (place mix) and various trade promotions targeting the distribution channels, that is, retailers and wholesalers (which is both the promotional mix and the place mix).

Therefore, the key marketing mix factors for shopping products are:

Place - selective distribution into the appropriate retailers

Promotion - trade promotions targeting the channel partners

3. Specialty products

Specialty products rely on a high quality or a unique product that consumers will deliberately seek out (product mix). The selection of a few appropriate retailers - known as exclusive distribution (place mix) - to perform partnerships with is the other key aspects of the marketing mix.

Therefore, the key marketing mix factors for specialty products are:

Product - high quality or unique products

Place - exclusive distribution partnerships with appropriate retailers

4. Unsought products

As suggested by the name, these are products not sought out by consumers on a proactive basis. To generate sales or to penetrate the market with unsought products, usually aggressive marketing is required, often in the form of direct marketing and personal selling (promotional mix).

To support these promotional methods, often a direct channel needs to be utilized, as these products will not generate significant retailer support (place mix).

Therefore, the key marketing mix factors for unsought products are:

Promotion - more aggressive promotional techniques

Place - direct or shortened distribution channels

What is product cannibalization?

The negative impact of a company's new product on the sales performance of its existing related products. Market cannibalization refers to a situation where a new product "eats" up the sales and demand of an existing product. This can negatively affect both the sales volume and market share of the existing product. Market cannibalization occurs when a new product intrudes on the existing market for the older product, rather than expanding the company's market base. Rather than appealing to a new segment of the market and increasing market share, the new product appeals to the company's current market, resulting in reduced sales and market share for the existing product.

Market cannibalization occurred, for example, when Apple introduced the more feature-rich iPhone and iPods that ate up sales for its lower-end iPods, including the nano, shuffle and classic series.

What are examples of each of the 4 product life extension strategies?

The main stages of the product life cycle are:

1. Introduction - researching, developing and then launching the product

2. Growth - when sales are increasing at their fastest rate

3. Maturity - sales are near their highest, but the rate of growth is slowing down, e.g. new competitors in market or saturation

4. Decline - final stage of the cycle, when sales begin to fall

This can be illustrated by looking at the sales during the time period of the product. A branded good can enjoy continuous growth, such as Microsoft, because the product is being constantly improved and advertised, and maintains a strong brand loyalty.

Extension strategies extend the life of the product before it goes into decline. Again businesses use marketing techniques to improve sales. Examples of the techniques are:

Advertising - try to gain a new audience or remind the current audience

Price reduction - more attractive to customers

Adding value - add new features to the current product, e.g. video messaging on mobile phones

Explore new markets - try selling abroad

New packaging - brightening up old packaging, or subtle changes such as putting crisps in foil packets or Seventies music compilations.

What is the difference between the 4 different product life extension strategies?

1. New Look: Changing a product's appearance or even just its packaging can be enough to rejuvenate sales.

=Soft drinks manufacturers have begun selling their products in 7.5-ounce cans and 1-liter plastic bottles as well as the traditional 12-ounce and 2-liter varieties.

2. New Pricing:Reducing the price of a product is the classic "supply and demand" response to declining sales. But when handled strategically, price reductions can accomplish more than postponing a product's inevitable demise. A lower price, especially for luxury items, can entice new customers to indulge in a brand name without the need to justify a high price. A good way to accomplish this is by offering a "basic" version of the product. Before computer laser printers became affordable to nearly everyone, manufacturers could sell slower black-and-white versions of their signature models. BMW is one car maker that has employed this strategy, giving buyers a lower sticker price in exchange for the chance to own a Beemer.

3. New Uses: Adding new features and finding new uses for technology can spark demand and exert a profound effect on a product's life cycle. Arm & Hammer's marketing department is a master of this tactic, devising dozens of uses for the company's baking soda. In fact, more baking soda is used as bath salt, toothpaste, cleanser and odor neutralizer than for cookies and pie crusts. Mobile phones are continually adding functionality, from cameras to texting, to GPS and the apps that become available every week.

4. New Markets: Introducing a product to a new market - whether a different location, demographic or other targeted market segment - can bring in new customers and perhaps even initiate a new growth phase. The beauty of this strategy is that it often requires little development. In fact, customers often devise the new uses. Cereal manufacturers pitch their products to dieters as late-night or mid-day snacks, for example. Perhaps it's only a matter of time before Pedialyte's makers take a lesson from college students and begin marketing their product as a hangover remedy. A common move into a new market involves making professional-grade products available to the general public. Notable examples include cookware and video-editing software.

How can companies differentiate their product from competing products?

Answer: Product differentiation is a marketing strategy whereby businesses attempt to make their product unique to stand out from competitors. Businesses do this to gain an edge in industries where multiple competitors produce similar products. There are other methods businesses can employ to gain that edge, like pursuing a low-cost strategy and advertising, but while those are legitimate marketing strategies, they are different from product differentiation. Product differentiation means that some feature, physical attribute, or substantive difference exists between a product and all other alternatives.

What is the difference between a product line and the product mix?

A product line is a group of products within the product mix that are closely related, either because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges.

The complete range of products present within a company is known as the product mix. In any multi brand organizations, there are numerous products present. None of the organizations wants to take the risk of being present in the market with a single product. If the company has only a single product, than the demand of the product will be too great or the company does not have the resources to expand the number of products it has.

if the business market is any example, than all the top companies have multiple products. Coca cola, Apple, Microsoft, Nestle, Hindustan unilever, Pharmaceutical companies, so on and so forth. These companies need to have a wide product portfolio to be present in the market and to have a sustainable business model. The combination of products that they have in their product portfolio can be the product mix.

What is the difference between marketing a good and a service?

Answer: A product is tangible - any item you can physically touch, has packaging and usually a shelf life. But defining services is more difficult. They may not be the same for every customer every time they are bought.

Which of the following comes closest to the preferred approach?

Answer: Objective and Task

We expect to see financial losses (negative profits) during which stage of the product life cycle?

a. introduction

b. growth

c. maturity

d. decline

Answer: D. Decline

Which of the following does not belong to the group?

a. Selective Exposure

b. Selective Distortion

c. Selective Retention

d. Selective Visualization

Answer: d. selective visualization

Beds, computers, refrigerators, lawn furniture _____ would be considered.

a. Convenience Goods

b. Shopping Goods

c. Specialty Goods

d. Impulse goods

Answer: b. shopping goods

During the first half of the 20th century competition increased and focus shifted to selling products to buyers; marketers were able to learn that many products did not meet consumers needs; businesses viewed sales and selling as the main means of increasing profits: Describes the

a. Production Era

b. Sales Era

c. Marketing Era

Answer: b. sales era

If there is any magic in marketing, it is the way we (the consumer) assist the advertiser through our

a. selective exposure to media.

b. selective distortion of the message.

c. selective retention of information.

Answer: a. selective exposure to media.

Your instructor describes _____ as active and _____ as passive.

a. targeting; segmenting

b. segmenting; targeting

Answer: a. targeting; segmenting

Where do we expect to see sales begin to decline in the Product Life Cycle?

a. Growth

b. Maturity

c. Decline

d. Introduction

e. any of the above

Answer: b. maturity

Monopolistic competition __ best exemplified by organizations or products like ___.

a. the NJ Motor Vehicle Division

b. "Halo" and "Grand Theft Auto" video games

c. companies making generic drugs

d. farmers' markets

Answer: b. "Halo" and "Grand Theft Auto" video games

Which of the following might be best described as a "convenience sample?"

a. a random sample

b. a stratified sample

c. a quota sample

d. all of the above

Answer: c. a quota sample

According to your instructor, segmentation is the act of directing a marketing program to a particular subset of the market.

a. true

b. false

Answer: b. false

We are likely to see the greatest interviewer bias in which of the following?

a. telephone survey

b. on-line survey

c. mail survey

d. personal interview survey

e. we need to be wary of such bias, but no one approach has greater potential for such a bias than any other

Answer: d. personal interview survey

In the Boston Consulting Group's Portfolio Matrix we label high growth but lesser market share offerings

a. Cash Cows

b. Stars

c. Question Marks/Problem Children

d. Dogs

Answer: c. question marks/problem children

A trade-mark can offer protection for up to 45 years. At that point it enters public domain.

a. true.

b. false.

Answer: b. false

Which of the following does not belong with rest of the terms?

a. opinion leaders

b. early adopters

c. innovators

d. laggards

e. late majority

f. early majority

Answer: a. opinion leaders

For many years the Disney Company produced a number of films in England. They did this because

a. They preferred the facilities at Pinewood Studios over the other sites.

b. They wanted to take advantage of a number of the more classically trained English actors.

c. The market had developed an interest in English stories such as Kidnapped, Treasure Island and Rob Roy during the years following WWII.

d. Movie production was a way to take earned profits from England without taking hard currency.

e. Disney was moving away from animation.

Answer: d. Movie production was a way to take earned profits from England without taking hard currency.

Laureate Imports Company was established in 1979 as a subsidiary of The Coca-Cola Trading Company.

Its original mission was to generate counter-trade benefits for The Coca-Cola Company in several European Countries where Coca-Cola was expanding business. Laureate imported wines to the United States Market and portions of the hard currency generated were used in the host countries to buy ingredients to further the soft drink business there.

In 1991, Coca-Cola sold Laureate Imports Company to a major wine supplier.

a. True

b. false

a. true

A representative product taken from a lot or batch, evaluated, and purchased refers to

a. homogeneous selection.

b. description.

c. trust.

d. negotiated inspection.

e. sampling.

Answer: e. sampling

_______ consists of many competitors able to differentiate their offers in whole or part (for example, restaurants).

a. pure competition

b. oligopoly

c .monopsony

d. monopoly

e. monopolistic competition

Answer: e. monopolistic competition

After purchasing a new Toyota Camry, Bob sees a Honda Accord pass him on the street. He begins to question whether he made the right purchasing decision. Bob is experiencing

a. problem recognition.

b. alternative evaluation.

c. cognitive dissonance.

d. framing.

e. internal search.

Answer: c. cognitive dissonance

Your friend owns a company that manufactures cardboard packing boxes. This person says that there are many competitors with extra capacity, and that the "only hope is that our sales manager, who makes all of our marketing decisions, will find a way to push boxes." It seems that your friend's company is run as if it were in the:

a. simple trade era.

b. production era.

c. sales era.

d. marketing era.

Answer: c. sales era

Which of the following statements about implementing an ethics and legal compliance program is false?

a. It requires open communication.

b. It requires consistent enforcement of standards from the code of conduct.

c. It rarely needs to be revised.

d. It requires taking reasonable steps in response to violations of standards.

e. It helps create a buffer zone on issues that could trigger serious legal complications for the company.

Answer: c. it rarely needs to be revised

The more a person is exposed to unethical activity in the organizational environment, the more likely it is that he or she will behave unethically.

a. true b. false

Answer: a. true

Which of the following products is most likely to be purchased on the basis of contract negotiation?

a. Eggs

b. Office Supplies

c. A custom-made bulldozer

d. Wheat

Answer: c. a custom made bulldozer

The unification of Europe permits virtually free trade among the member nations of the European Union.

a. True

b. False

Answer: a. true

The student senate at your university has been asked to give input on the purchase of new computers for campus computer labs. In this instance, the student senate would be acting as a(n. ______.

a. buyer.

b. gatekeeper.

c. user.

d. influencer.

e. decider.

Answer: d. influencer

Suppose marketers at Procter & Gamble are trying to determine whether the use of cents-off coupons for detergent was the reason for a sales increase in a particular store. The type of study conducted to answer this question would be

a. descriptive.

b. exploratory.

c. causal.

d. hypothetical.

Answer: c. causal

Which comes first in the Marketing Plan?

a. assessment of the capabilities of the organization under consideration

b. the marketing strategy

c. the promotional media to be used

d. package design

e. the distribution goals

Answer: a. assessment of the capabilities of the organization under consideration

Assume you manufacture and sell a product which traditionally has been targeted at a male market. Your boss feels a need to move into new markets. In particular, your boss suggests that you think about feminizing the product and introducing it to the female market. Your boss asks you to report back at the end of the week with a recommendation as to what the first steps would be in such an endeavor. What are you going to tell your boss?

a. hire a color coordinator to find feminine hues for your product.

b. develop a questionnaire.

c. segment your market.

d. get a focus group.

e. do time series analysis.

Answer: d. get a focus group

Our environmental scanning and analysis could result in information needed in our _______ analysis.

a. APEX.

b. customer

c. accounting

d. personnel

e. SWOT

Answer: e. SWOT

Question Marks and Stars are described as moving through the Growth stage of the life cycle.

a. True 

b.False

Answer: a. true

A depth interview is MOST likely to be used to

a. influence a buyer's perceptions of a product.

b. alter a buyer's attitudes toward a product.

c. identify selected personality traits.

d. increase a buyer's product knowledge.

e. discover a buyer's motives.

Answer: e. discover a buyer's motives.

If Auto Zone runs an ad asking customers to check their windshield wiper blades for wear, the firm is attempting to stimulate which of the following?

a. Framing

b. Evoked set formation

c. Problem recognition

d. Information search

e. Evaluation of alternatives

Answer: c. problem recognition

Which of the following runs the risk of being illegal?

a. franchising

b. licensing

c. strategic alliance

d. reciprocity

e. differentiated targeting

Answer: d. reciprocity

A reliable study

a. helps make a tentative hypothesis more specific.

b. measures what it is supposed to measure.

c. produces almost identical results in successive repeated trials.

d. produces different results in successive repeated trials.

e. defines problems.

Answer: c. produces almost identical results in successive repeated trials.

An alternative to direct investment that requires a licensee to pay commissions or royalties on sales or supplies used in manufacturing

a. wholesaling

b. franchising

c. offshoring

d. licensing

e. strategic alliance

Answer: D. Licensing

An alliance that promotes trade and economic integration among member nations in Southeast Asia

a. EU

b. APEC

c. ASEAN

d. MERCOSUR

e. NAFTA

Answer: c. asean

The Bases for Segmenting discussed by your author include all of the following except

a. Age

b. Life Style

c. Usage Rate

d. Gender

e. Product Differentiation

Answer: e. Product Differentiation

Should you have only limited resources but believe you have an offering attractive enough to compete effectively against a major competitor, you would be likely to pursue a ____________ strategy at first.

a. concentrated

b. differentiated

c. high segmentation

d. undifferentiated

Answer: a. concentrated

The benefit in "benefit segmentation" refers to

a. the benefit the manager gets from recognizing distinct segments.

b. the benefit the customer is seeking in a product.

c. an acronym for the best, the newest, and the finest targeting known.

d. customers who are out of work with limited income.

Answer: b. the benefit the customer is seeking in a product.

Which is NOT a stage in the family life cycle:

a. the empty nest.

b. the rigid personality.

c. the survivor, retired.

d. the full nest I.

e. All are include in the categorization.

Answer: b. the rigid personality.

Which is more closely tied to purchasing behavior?

a. self-concept

b. personality

Answer: a. self concept

Which of the following is likely NOT a reference group for people in this room?

a. the Hell's Angels

b. undergraduate Rutgers students

c. graduates of Rutgers University

d. zoo keepers

Answer: d. zoo keepers

Which of the following represents the sequencing of needs as described in Maslow's hierarchy?

a. Safety; Self-actualization; Self-esteem; Social; Physiological.

b. Safety; Self-actualization; Social; Physiological; Self-esteem.

c. Physiological; Safety; Social; Self-actualization; Self-esteem.

d. Physiological; Safety; Self-actualization; Self-esteem; Social.

e. Physiological; Safety; Social; Self-esteem; Self-actualization.

f. the hierarchy varies person by person and so any of the above would be an appropriate answer.

g. none of the above does a good job of giving the appropriate sequence.

Answer: e. Physiological; Safety; Social; Self-esteem; Self-actualization.

When we talk about needs as described by Maslow's hierarchy, we suggest that

a. people fully satiate their needs at one level before moving on to another level.

b. people only partly satiate their needs at one level before they begin addressing subsequent needs.

Answer: b. people only partly satiate their needs at one level before they begin addressing subsequent needs.

Which if any of the following are not part of Maslow's hierarchy of needs?

a. Social needs

b. Cultural needs

c. Psychological needs

d. Safety needs

e. More than one are not part of Maslow's Hierarchy.

Answer: b. cultural needs

The U.S Army has tried to recruit people based on the slogan, " Be all that you can be in the Army", implying that people can reach their full potential in the U.S. Army. This is an appeal to which need in Maslow's hierarchy?

a. Safety

b. Esteem

c. Self - actualization

d. Physiological

Answer: c. Self - actualization

A market-oriented company with the proper concept of exchange understands a market to be:

a. a group of buyers and sellers negotiating an exchange.

b. a geographic location.

c. the combination of producers, wholesalers, and retailers involved in creating a transfer.

d. all potential customers with a particular need willing and able to engage in exchange to meet the need.

Answer: d. all potential customers with a particular need willing and able to engage in exchange to meet the need.

In the adoption process, the last group of people to adopt a product are referred to as

a. innovators.

b. early adopters.

c. dogs.

d. recalcitrant.

e. lethargic.

f. laggards.

g. delayers.

h. decliners.

Answer: f. laggards

Which of the following best states the marketing concept?

a. the customer is always right

b. make the very best product and people will buy it

c. keep costs low and the firm will be profitable

d. do everything to satisfy customers at a profit

Answer: d. do everything to satisfy customers at a profit

We would describe stores like Costco, Sam's Warehouse, and BJs as having

a. product width

b. product depth

c. both product width and depth

Answer: a. product width

Can you hold more than one role at a time?

a. as we satisfy one role we begin to turn our attention to the next level: we can hold more than one

b. it is unusual to hold more than one however there are exceptions to this, especially when the organism is under stress

c. pretty much everyone has multiple roles in their lives

d. contracts usually prohibit holding more than one role

e. one role is all that we generally need

Answer: c. pretty much everyone has multiple roles in their lives

VALS offers us

a. demographic insights into our market

b. psychographic insights into our market

Answer: b. psychographic insights into our market

Concept testing is usually done in communities which are well-defined as to distribution and communication outlets rather than being contiguous with other communities.

a. True

b. False

Answer: B. False

A _______ is a person who brings forward information to another or who withholds information.

a. withholder

b. distancer

c. influencer

d. shepherd

e. gatekeeper

Answer: e. gatekeeper

In marketing, research quota sampling is where:

a. The company instructs the market research agency as to the number of people to survey

b. An exact number of people must be randomly interviewed at an exact time

c. Random individuals are targeted

d. Respondents are placed in groupings such as age, social class and gender

Answer: d. Respondents are placed in groupings such as age, social class and gender

The __________ is the amount of market demand which corresponds to the industry market expenditure which occurs.

a. Market potential

b. Market forecast

c. Sales quota

d. Sales budget

Answer: B. Market Forecast

"Vals" gets its name from

a. a Californian subcultural group of young adults

b. a test of one's value system

c. a values, attitudes and lifestyle typology

d. a consumer warehouse retailer

Answer: c. a values, attitudes and lifestyle typology

Actualizers, Achievers, Strugglers, Strivers are all found in

a. Maslow's hierarchy

b. The needs section of the lexicon

c. The family life cycle

d. Social class

e. VALS

Answer: e. vals

Which of the following consists of enduring favorable or unfavorable evaluations, feelings, and action tendencies toward some object or idea?

a. belief

b. factoid

c. perception

d. attitude

Answer: d. attitude

We would be more likely to appeal to social norms with which of the following?

a. gun control

b. chewing gum

c. New York Times subscription

d. Taco Bell

e. SPECTRE the new James Bond movie

Answer: a. gun control

Do we expect someone to segment or target first?

a. segment

b. target

c. the answer is situational; we could justify either given varying circumstances.

Answer: a. segment

Which of the following is characterized as offering future, direction without a specific time horizon?

a. mission statement.

b. objective statement.

c. positioning statement

Answer: a. mission statement

As a general notion, price discrimination is unethical and to be avoided.

a. True

b. False

Answer: a. true

Dallas-based Dean Foods is one of the leading food and beverage companies in the United States. Its __________ includes soy products, coffee creamers, dips and dressing, pickles, sauce, ice cream, yogurt, sour cream and cottage cheese. Its fresh milk and cream __________ includes regular and flavored milks, lactose-free milk, buttermilk, and half and half.

a. product tangibility; product unit

b. product mix; product unit

c. product line; product mix

d. product unit; product tangibility

e. product mix; product line

Answer: e. product mix; product line

When a market is highly price-sensitive, production costs fall with increased accumulated production experience, and you would like to discourage possible competition, you would rely on

a. penetration pricing

b. skimming pricing

Answer: a. penetration pricing

Which of the following lists forms of competitive advertising?

a. Pioneer, comparative, reminder

b. Reminder, repetitive, reinforcement

c. Comparative, reminder, reinforcement

d. Institutional, product, comparative

e. Product, pioneer, reminder

Answer: c. Comparative, reminder, reinforcement

Because of a service's ____, standardization and quality are difficult to control.

a. intangibility

b. inseparability

c. homogeneity

d. heterogeneity

e. perishability

Answer: D. Heterogeneity

Rapid skimming strategy means

a. Charging high price and spending high on promotion

b. Charging low price

c. Charging high price and low promotion

d. All the above

Answer: a. Charging high price and spending high on promotion

When a convenience store manager raised the price of fountain drinks by 10 percent, she found that the store sold only half as many fountain drinks. The manager's observation indicates that the demand for fountain drinks is highly

a. resilient

b. derived

c. exponential

d. elastic

e. inelastic

Answer: e. inelastic