Marketing 301 Exam 2 Practice and Review
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Questions and Answers

What does the mission statement do?

  • It's the organization's purpose and explains what it wants to accomplish in the larger environment (correct)
  • It explains the value proposition and positions the product
  • It sets company objectives and goals
  • It tells investors how much profit they should be making with a new product

    • (Best answer) Companies must set ________________

  • Boundaries and goals with competitors
  • Barriers of entry to limit competition
  • Objectives and goals (correct)
  • Prices and quality of their product

    • Business objectives include everything except

  • Build customer relationships
  • Setting wages (correct)
  • Investing in research
  • Improving profits

    • In regards to the last question, the one concept not mentioned in what a business objective includes is _______________

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    Marketing objectives include everything except

    <p>Making advertisements for the public</p> Signup and view all the answers

    Analyzing the current business portfolio includes identifying strategic business units, assessing the attractiveness of these SBUs, and deciding how much support each SBU deserves

    <p>True</p> Signup and view all the answers

    Product form competition involves

    <p>Products or services of the same product type</p> Signup and view all the answers

    Product class/category competition involves

    <p>Products that have similar features and provide the same basic function</p> Signup and view all the answers

    Need level competition involves

    <p>Products and services that the consumer views as fulfilling the same need</p> Signup and view all the answers

    Budget competition involves

    <p>Products and services that are purchased from the same general budget</p> Signup and view all the answers

    Competition is best defined primarily through _________________

    <p>A customer's perspective</p> Signup and view all the answers

    In some markets, whoever enters first gains ________________________

    <p>Significant advantages over those who arrive later</p> Signup and view all the answers

    All of these are steps of the market research process, except

    <p>Use existing data to produce a conclusion</p> Signup and view all the answers

    In regards to the previous question, what is a vital step to the marketing research process that was not included?

    <p>Interpreting and reporting the findings</p> Signup and view all the answers

    The primary data types include what (STFOE)

    <p>Surveys, test markets, focus groups, observation, experimentation</p> Signup and view all the answers

    Some secondary data types include (TBUMG)

    <p>Transaction data, browsing/clickstream data, user generated content, mobile, and government or 3rd party data</p> Signup and view all the answers

    Primary data must be ____________, and is most helpful for ______________.

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    Secondary data _____________. It is most helpful for ___________ and can be _______________ to the company.

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    These are all characteristics of social media data except for

    <p>Informative</p> Signup and view all the answers

    What are attributes of good market research? (Best answer)

    <p>Reliability, validity, and generalizability</p> Signup and view all the answers

    Probability sampling involves ________ _____________ who are drawn at ____________. Ideally they will have _______ ________ _______ in __________ compared to the population.

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    Non- Probability sampling involves __________ _____________ who are ______ _________ ___ ________ and may have ________ __________ __ ____________.

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    Convenience sampling and judgment sampling are two examples of probability sampling

    <p>False</p> Signup and view all the answers

    These are all characteristics of observation research except

    <p>Intervening and affecting people's behavior</p> Signup and view all the answers

    These are characteristics of interviews and focus groups (a method of primary data) except for

    <p>Usually structured</p> Signup and view all the answers

    Issues in survey design are list framing effects, order effects, double-barreled questions, and demand effects.

    <p>True</p> Signup and view all the answers

    Which answer best describes list framing?

    <p>Portraying a question in a positive or negative frame</p> Signup and view all the answers

    Which answer best describes the issue of order effects?

    <p>Answers tend to be influenced by previous questions</p> Signup and view all the answers

    Which answer best describes the cause of memory effects?

    <p>Asking the respondent to remember their behavioral frequency</p> Signup and view all the answers

    Which answer best describes social desirability effects?

    <p>Respondents are biased to answer in a way that is socially desirable/acceptable</p> Signup and view all the answers

    Demand effects occur when respondents feel ____________ to answer questions in a way they ______ _____ _________ wants to _________.

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    The most useful tool for generating surveys is NPS

    <p>True</p> Signup and view all the answers

    These are all definitions/descriptions of NPS, except

    <p>Asks respondents to produce a short answer</p> Signup and view all the answers

    These are all characteristics of experimentation except for

    <p>All of these are characteristics</p> Signup and view all the answers

    Mass marketing is appropriate when goods are a ________, consumers have (virtually) _____ _______ needs, and there is _______ ___ _____ competition

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    Targeted marketing is when you _________ ______ everyone, when needs are _______, and competitors can _______ serve _________ ________

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    These are the steps to targeted marketing, except for

    <p>Avoid separating the market into different groups with different needs</p> Signup and view all the answers

    STP (segmentation, targeting, and positioning) increases __________ for the firm and provides ___________ ________ for the customer

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    Segmentation is grouping customers who will respond differently to a marketing action. It involves finding subsets of consumers who have different needs and cannot be addressed as a group

    <p>False</p> Signup and view all the answers

    How can we divide the marketplace?

    <p>Demographic, psychographic, behavioral, and geographic</p> Signup and view all the answers

    Good segmentation separates prospective buyers into groups where ____________ is high and _________ are common. Segmenting variables are _______ and _______.

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    Failure to identify trends and update your targeting strategy can lead to oversegmentation

    <p>True</p> Signup and view all the answers

    These are all attributes of an ideal target segment, except for

    <p>Leaving out information from trends</p> Signup and view all the answers

    What are the three steps to choosing your target segment?

    <ol> <li>Customer value analysis</li> <li>Competitive benchmarking</li> <li>Evaluating fit of offerings</li> </ol> Signup and view all the answers

    Positioning is a strategy for envisioning what you want your ________ to look like in the _________ of consumers. Here you can consider your _________ _______ and define your ______ _________ ______.

    <p>offering, minds, competitive advantage(s), unique value proposition</p> Signup and view all the answers

    What are the two ways of establishing uniqueness? (best answer)

    <p>Vertical and horizontal differentiation</p> Signup and view all the answers

    Vertical differentiation is competing _______ with competitors based on what's a __________ or ________ offering.

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    Horizontal differentiation is finding a different _______ or _________ based on customers' different _______ and perspectives.

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    A key tool for positioning is perceptual maps

    <p>True</p> Signup and view all the answers

    What do perceptual maps do?

    <p>A and B are correct</p> Signup and view all the answers

    Positioning statements do all of these, except

    <p>Mentions price, place, promotion</p> Signup and view all the answers

    What should be included in the parentheses? (This is to help you remember how to set up a positioning statement):

    "For (______ + ), (our _______) is the () that (______ _______ ________)"

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    A product is anything that can be offered to a market for ________, ________, _________, or ________ that might satisfy a _____ or a ______.

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    Products involve goods only

    <p>False</p> Signup and view all the answers

    Which is NOT included in product line characteristics? (PLCs)

    <p>Product line consistency</p> Signup and view all the answers

    Product line length is how many ______________________.

    <p>Product line length is how many items it includes</p> Signup and view all the answers

    Product line range is how ________________________.

    <p>Product line range is how far the line stretches (top to bottom)</p> Signup and view all the answers

    Product line density is how _________________________. (in other words, how / they are to each other)

    <p>Product line density is how close together items in the product line are. (in other words, how similar/different they are to each other)</p> Signup and view all the answers

    What is a line extension?

    <p>Adding a new product to an existing line</p> Signup and view all the answers

    What is a brand extension?

    <p>Adding new product(s) outside existing line(s)</p> Signup and view all the answers

    Upward stretching (in brand extension) is focused on all of these, except for

    <p>Repositioning and finding a new target segment</p> Signup and view all the answers

    Promising brand extensions have four features or "fits." Promising brand extensions fit _________ capabilities, fit current , fit _______ occasion (), and fit brand ___________.

    <p>Promising brand extensions have four features or &quot;fits.&quot; Promising brand extensions fit firm capabilities, fit current customers, fit usage occasion (complementary), and fit brand associations.</p> Signup and view all the answers

    Match the four product mix dimensions (WLDC) to their definitions/purpose

    <p>Width = Number of product lines Length = Number of products in each line Depth = Number of versions offered of each product in each product line Consistency = How closely related the products are in their target segments and firm capabilities</p> Signup and view all the answers

    There are four steps of Strategic Portfolio Management. Match each step to the order that they are in this process.

    <p>First step = Add new product lines (brand extension) Second Step = Lengthen existing product lines (line extension) Third step = Add more versions of each product (increase depth) Fourth step = Trim/streamline portfolio (for consistency and efficiency)</p> Signup and view all the answers

    What are the stages of the Product Life Cycle?

    <p>Introduction, growth, maturity, decline</p> Signup and view all the answers

    Which stage of the product life cycle is when the product peaks?

    <p>Maturity</p> Signup and view all the answers

    Customers can be segmented based on when they adopt new products

    <p>True</p> Signup and view all the answers

    What are the five categories pertaining to when customers adopt new products?

    <p>Innovators, early adopters, early majority, late majority, laggards</p> Signup and view all the answers

    During the introduction stage of the product life cycle, sales are _______, profits are _______, typical consumers are _________, there are ______ ___ _____ competitors, and the advertising objective(s) are _________ and _______.

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    During the growth stage of the product life cycle, sales are _______, profits are _______, typical consumers are ______ _________ and _________ _______, there are ______ but _______ numbers of competitors and competitive products, and the advertising objectives are to __________ and __/.

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    During the maturity phrase of the product life cycle, sales are ______ ___ ______, profits are ________ ___ _______, typical consumers are ______ ________, there are _______ _________ of competitors and competitive products, and advertising objectives are ________ and _________.

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    In the decline phase of the product life cycle, sales are __________, profits are ___________, typical consumers are ___________, there are ______ __________ of competitors and competitive products, and the advertising objectives are ______ ________, if any.

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    A brand is a _______, ________, _______, ________, _______, or combination of these that identifies the maker or seller of a product.

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    Brand representations include

    <p>All of these are brand representations</p> Signup and view all the answers

    Brand associations should do everything except what

    <p>cater to competition's positioning</p> Signup and view all the answers

    Brand associations include quality, symbolism, and status

    <p>True</p> Signup and view all the answers

    Brand equity expresses consumer __________ of a product (______--____) due to brand name _____ and _____ other aspects of the product offering.

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    Match which characteristics/brands are associated with either Manufacturer Brands (aka National Brands) or Private-label Brands (aka Store Brands)

    <p>Manufacturer brands (aka national brands) = Apple (company) Manufacturer brands (aka national brands) = Levi's Private-label brands (aka store brands) = Amazon Basics and Great Value Private-label brands (aka store brands) = generic, often limitations of national brands</p> Signup and view all the answers

    What are three reasons why people pay for brands?

    <p>Informational value, symbolic value, performance value</p> Signup and view all the answers

    Information value includes...

    <p>Information value of a brand includes quality, reputation, and ethics.</p> Signup and view all the answers

    Symbolic value of a brand includes...

    <p>Symbolic value of a brand includes identity, self-expression, and history.</p> Signup and view all the answers

    Performance value of a brand includes consumers using _______ ___________ effort, and ___________ ________ is not required

    <p>Performance value of a brand includes consumers using less decision effort, and information search is not required.</p> Signup and view all the answers

    Brands are valuable to firms due to _______ premium, ________ to _______, _________ power, and more support from _________ and _________.

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    You assess brand strength by looking at brand equity, awareness, and specialty research firms.

    <p>True</p> Signup and view all the answers

    These are all rules for producing effective brand names, except for

    <p>Longer is better</p> Signup and view all the answers

    Co-branding contains many benefits, such as connecting you to a ________ _________, ________, and ___________. It draws on capabilities of ________ _______.

    <p>Co-branding contains many benefits such as connecting you to a partner's customers, reputation, and associations. It draws on capabilities of both firms.</p> Signup and view all the answers

    Co-branding requires (best answer)...

    <p>Trust, coordination, complex contracts</p> Signup and view all the answers

    What are multi-brands?

    <p>Competing brands in a category with the same owner</p> Signup and view all the answers

    What are sub brands?

    <p>A compromise between pure brand extension and an all new brand</p> Signup and view all the answers

    Match each example to whether they are a Multi-Brand or Sub-Brand example

    <p>Multi-Brand = Pepsico Sub-Brand = Uber Eats Multi-Brand = Nestle Sub-Brand = Mac Cosmetics</p> Signup and view all the answers

    If there is a general trend of decline for the current brand and its products, or if there is a need to adapt to new trends and promote a brand refresh then you should ________ a brand

    <p>Reposition</p> Signup and view all the answers

    Variable costs vary with ________ _________

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    Fixed costs are affected by production volume.

    <p>False</p> Signup and view all the answers

    Cost plus pricing involves calculating your total _________ ___ _______ and adding a ______ _______ (% or $ amount) to set your price. This is cost plus pricing or ______ pricing.

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    Cost plus pricing can be determined by the __________ point. This is _________ analysis.

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    Target return analysis is just like _________ analysis, but goes beyond making up for costs and aims for a ________ ______ of ______.

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    Value based pricing is when a company imagines the ______________________________ the product creates for the customer

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    Value based pricing contains a ___________ for potential price

    <p>Maximum (ceiling)</p> Signup and view all the answers

    To produce value based pricing, a company has to measure willingness to pay

    <p>True</p> Signup and view all the answers

    What is the formula for price elasticity of demand?

    <p>% change in quantity demanded / % change in price</p> Signup and view all the answers

    List the factors that affect price elasticity (remember the acronym- UIAPE)

    <p>Uniqueness and switching costs, importance and price, ability to stockpile, price quality inferences, ease of searching products/prices</p> Signup and view all the answers

    Price skimming involves setting a ________ ______ _____ and (possibly) _________ it over time.

    <p>Price skimming involves setting a high initial price and (possibly) lowering it over time.</p> Signup and view all the answers

    Penetration pricing involves setting a ______ ______ ______ and (possibly) ________ it over time.

    <p>Penetration pricing involves setting a low initial price and (possibly) raising it over time.</p> Signup and view all the answers

    These are all instances indicating that you should partake in price skimming, except for

    <p>High switching costs and customer lock in</p> Signup and view all the answers

    You should partake in price skimming because (BCF)

    <p>you get bigger profit margins at first, costs tend to be higher at first, and there are very few competitors at first</p> Signup and view all the answers

    These are all instances indicating that you should partake in penetration pricing, except for

    <p>Limited economies of scale</p> Signup and view all the answers

    You should partake in penetration pricing because you can (BCD)

    <p>you can build customer relationships, you can capture market share and economies of scale quickly, and you can discourage competitors</p> Signup and view all the answers

    Uniform pricing is charging the _________ to every customer, regardless of differences in willingness-to-pay, costs, or other factors.

    <p>same price</p> Signup and view all the answers

    Personalized pricing is charging ______________________

    <p>Charging a unique price for each customer</p> Signup and view all the answers

    Segmented pricing is charging ______________________________.

    <p>Different pricing for different groups or types of customers</p> Signup and view all the answers

    There is no issue with personalized pricing or segmented pricing. These approaches do not appear to be unfair.

    <p>False</p> Signup and view all the answers

    Location based pricing is charging __________ prices for ________ stores or locations

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    Time based pricing is charging ___________ prices for _________ days or times

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    Product versioning is charging ________ ______ for versions that different _________ _______ self-select.

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    Promotional pricing is offering _____ ______ based on ______ and _____ events, coupons, or rebates

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    Left digit bias is when people tend to pay more attention to the left digits of a price and subconsciously round up.

    <p>False</p> Signup and view all the answers

    Round numbers signal /. Non round numbers seem more _____ and potentially _________.

    <p>Round numbers signal prestige/luxury. Non round numbers seem more precise and potentially fair</p> Signup and view all the answers

    When other information is limited and unknown regarding a product's quality, price is still not used as an indicator of quality.

    <p>False</p> Signup and view all the answers

    Write out the formula for Customer Lifetime Value (CLV)

    <p>(Price per unit - Cost per unit) x Quantity purchased x Time</p> Signup and view all the answers

    Customer lifetime value has two positive side effects which are cross selling and promoting word of mouth. Cross selling is when you sell additional products to the same customer, and word of mouth is when customers talk about your product.

    <p>True</p> Signup and view all the answers

    Customer lifetime value is a metric that represents the total net profit a company can expect to generate from customer throughout their entire relationship. It measures how valuable the customer is to your company

    <p>True</p> Signup and view all the answers

    Integrating marketing communications (IMC) involves carefully ________ and ________ the company's many ___________ _____ to deliver a clear, ________, and _________ message about the organization and its products.

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    Match each step of developing effective marketing communication with the order in which they should appear

    <p>First Step = Identify the target audience Second Step = Determine the communication objectives Third Step = Design the message Fourth Step = Choose the media to send the message</p> Signup and view all the answers

    In the previous question, we did not cover the last step of developing effective marketing communication. What is the fifth and last step of this process?

    <p>Select the message source and collect feedback</p> Signup and view all the answers

    A rational appeal relates to the audience's ________ ________

    <p>A rational appeal relates to the audience's self interest</p> Signup and view all the answers

    An emotional appeal is an attempt to...

    <p>An emotional appeal is an attempt to stir up positive or negative emotions to motivate a purchase</p> Signup and view all the answers

    A moral appeal is directed to...

    <p>A moral appeal is directed to an audience's sense of what is right and proper</p> Signup and view all the answers

    Formula for PLV (prospective lifetime value)

    <p>CLV (customer lifetime value) - AC (average customer acquisition cost) = PLV (prospective lifetime value)</p> Signup and view all the answers

    Breakeven Analysis Formula

    <p>Q = (Fixed Costs) / (P - variable cost per unit)</p> Signup and view all the answers

    Target Analysis Formula

    <p>Q = (Fixed Costs + Target Return) / (P - Variable cost per unit)</p> Signup and view all the answers

    Value based pricing formula

    <p>E = (% change in quantity demanded) / (% change in price)</p> Signup and view all the answers

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