Marketing Chapter 2-4 Flashcards
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Questions and Answers

What type of market can the breakfast cereal market be described as?

monopolistic competition

The collapse of the U.S. housing market in 2008 was an example of a rapid change in the ______ environment.

economic

What is the first step in competitor analysis?

identify potential competitors

Susan is a first-time home buyer. She wants to keep her monthly mortgage payments as low as possible. Which of the following would work in her favor?

<p>A low interest rate</p> Signup and view all the answers

In competitive analysis, what are firms with similar products and marketing mix referred to as?

<p>competitive rivals</p> Signup and view all the answers

A major difference between the economic environment and the cultural and social environment is that the economic environment changes rapidly.

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

A marketing manager should research and seek information about competitors.

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

The use of scientific advancements to help convert resources into goods and services is also known as what?

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

Which three of the following are considered elements of the economic environment?

<p>Inflation rates</p> Signup and view all the answers

The pending impact of driverless cars will allow ______ to drive longer.

<p>older people</p> Signup and view all the answers

What is an example of a change in the economic environment that can affect a company's marketing strategy?

<p>The collapse of the U.S. housing market in 2008</p> Signup and view all the answers

Carrie speaks to a device in her kitchen, 'Alexa, what's the weather today?' The device is based on what technology?

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

Promotion is concerned with which of the following within the marketing mix? (Check all that apply)

<p>Number of Salespeople</p> Signup and view all the answers

Target marketing classifies a marketing mix as

<p>appealing to a selected group of people.</p> Signup and view all the answers

Which of the following are examples of 'product' strategy decisions? (Check all that apply)

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

The term 'mass marketer' is used to

<p>describe large firms that aim at specific groups.</p> Signup and view all the answers

A product needs to get to the customer when and where they need it. This is considered to represent the function of the 4 Ps

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

What is the best way to describe a targeted market segment?

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

What are three components of the promotion element? (Check all that apply)

<p>Mass Selling</p> Signup and view all the answers

Which of the following are part of the 'marketing mix'? (Check all that apply)

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

Which of the following are true about the price area of the marketing mix? (Check all that apply)

<p>Price includes an evaluation of delivery costs</p> Signup and view all the answers

Product is concerned with which of the following in the marketing mix? (Check all that apply)

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

If a customer perceives a product to have more features and a higher quality, then the customer perceives the product to have more

<p>value, benefit, or worth</p> Signup and view all the answers

Which of the following statements about a product are true? (Check all that apply)

<p>Product can involve a physical good</p> Signup and view all the answers

Which of the following is true concerning the importance of the Four Ps?

<p>All are equally important</p> Signup and view all the answers

Which of the Four P's is focused on all the decisions needed to get the right product to the target market via retail stores or online stores?

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

It is important for companies to remember that selecting a target market and developing a marketing mix are _____ activities and must be done _____.

<p>interrelated; together</p> Signup and view all the answers

Which of the following is focused on informing people about the features of the product?

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

Which one of the following is the most important factor in determining an appropriate marketing mix?

<p>the needs of the target market</p> Signup and view all the answers

A(n)____ ____ is a written document that identifies a marketing strategy and spells out the various elements that are necessary for fulfilling that strategy. (Enter one word in each blank.)

<p>marketing plan</p> Signup and view all the answers

To clear out some slow-selling pink sofas, Furniture Warehouse offered $100 discounts. The furniture store made this decision based on the _______ component of the marketing mix.

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

Customer value _______ when customers perceive more benefits or lower costs.

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

Which of the following statements about the Four Ps is true?

<p>Each of the Four Ps contributes to a whole marketing strategy</p> Signup and view all the answers

Marketing plans are put into action during

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

The marketing _______ should be evaluated against the company's objectives.

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

When customers make online purchases, a company has access to data that can be used for marketing analytics.

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

Which of the following statements about marketing strategy are true? (Check all that apply)

<p>The needs of the target market should drive decisions on the marketing mix.</p> Signup and view all the answers

Which two of the following describe a marketing program? (Check all that apply)

<p>It implements several marketing strategies at once.</p> Signup and view all the answers

A marketing plan is

<p>a document that describes a marketing strategy and various steps and elements involved in carrying out the strategy.</p> Signup and view all the answers

The number of purchases a person could make from a firm during the course of their relationship is called the

<p>Customer Lifetime Value</p> Signup and view all the answers

Garrett knows what the company plans to do for its marketing efforts and now needs to find a way to put those plans into operation. What phase of the marketing plan is Garrett working on?

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

When determining customer lifetime value, the ____ rate refers to the percentage of customers who stay with the company in comparison to the total number of customers.

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

The marketing department at Henri's company is taking the next two weeks to measure and analyze their current marketing performance. What is Henri's company engaging in?

<p>Marketing analytics</p> Signup and view all the answers

An organization's ______ combines multiple marketing plans into a single, large plan.

<p>marketing program</p> Signup and view all the answers

A company's customer is what the company can expect to earn from its current and potential customers during a particular period.

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

Companies predict how many purchases a single customer might make from the company over the length of the relationship with that consumer, a measurement called the

<p>customer lifetime value</p> Signup and view all the answers

Some firms find that it costs them less to retain a customer than trying to acquire a new one.

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

Trina's Bakery had 600 customers last year and this year, 400 of those customers still patronize the bakery. What is the retention rate at Trina's Bakery?

<p>66%</p> Signup and view all the answers

When customers make online purchases, a company has access to data that can be used for marketing analytics.

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

A successful marketing strategy pairs

<p>opportunities with a company's resources and goals.</p> Signup and view all the answers

Customer equity is

<p>the amount of money a company can expect to earn from customers during a given time.</p> Signup and view all the answers

What are a company's three potential paths for growth based on the customer equity approach? (Check all that apply)

<p>Retaining current customers</p> Signup and view all the answers

Which of the following helps companies create marketing strategies that are difficult to replicate and have long-term profit potential?

<p>Breakthrough opportunities</p> Signup and view all the answers

When targeted customers ______, the company is said to have a competitive advantage.

<p>prefer a company's marketing mix over that of a competitor</p> Signup and view all the answers

An effective marketing strategy matches opportunities to the firm's resources and objectives.

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

Marketing managers

<p>should seek attractive opportunities.</p> Signup and view all the answers

A company's customer is what the company can expect to earn from its current and potential customers during a particular period.

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

Which of the following statements about the marketing strategy planning process are true? (Check all that apply)

<p>A marketing strategy begins with an evaluation of customers, competitors, and company.</p> Signup and view all the answers

Companies rely on opportunities to develop marketing strategies that are difficult to replicate and have the potential to make the company a lot of money for a long time.

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

Developing a _______ can help a manager identify and define the markets in which the firm wants to compete.

<p>set of specific qualitative and quantitative criteria</p> Signup and view all the answers

A company has ______ when the target market prefers the company's marketing mix over a competitor's mix.

<p>a competitive advantage</p> Signup and view all the answers

What is the purpose of a S.W.O.T. analysis?

<p>Picks out a firm's weak and strong points, as well as any potential opportunities or threats the firm might face</p> Signup and view all the answers

Not everyone turns an opportunity into a successful strategy. You need to have a logical process to avoid marketing situations

<p>hit or miss</p> Signup and view all the answers

To identify and understand different subgroups in the target market, marketing managers rely on

<p>market segmentation</p> Signup and view all the answers

The marketing manager reminded the team that they had to come up with something that would set them apart from their competitor. In other words, their marketing mix needed

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

Why does the marketing strategy process start broad before narrowing?

<p>It gives firms a chance to identify opportunities they might miss if the process starts too narrow.</p> Signup and view all the answers

Which of the following are true about the specific qualitative and quantitative screening criteria marketing managers develop? (Check all that apply)

<p>These criteria are useful in figuring out the markets in which a firm wants to compete.</p> Signup and view all the answers

Customers can perceive differences based on

<p>only one important element of the marketing mix.</p> Signup and view all the answers

A S.W.O.T. analysis helps a company figure out which four of the following? (Check all that apply)

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

What are the four broad areas of opportunity a company can pursue in the marketing strategy planning process? (Check all that apply)

<p>Market penetration</p> Signup and view all the answers

Which of the following are true of market segmentation? (Check all that apply)

<p>Managers use segmentation to help them figure out which groups of customers to serve.</p> Signup and view all the answers

A company that is working to increase customer purchases of its current products in its current market is trying to achieve market

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

When a marketing mix has an element that sets it apart from those of the competition, it is said to have

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

Which of the following is a company engaged in when it attempts to increase sales of its current products by offering them in new markets?

<p>market development</p> Signup and view all the answers

Which of the following statements about the marketing strategy planning process are true? (Check all that apply)

<p>A marketing strategy begins with an evaluation of customers, competitors, and company.</p> Signup and view all the answers

A firm engaged in ______ is offering its current markets a new product or an improved version of a current product.

<p>product development</p> Signup and view all the answers

Choose the statements about differentiation that are true. (Check all that apply)

<p>True differentiation occurs when customers see the firm's offering as being better with regard to all four Ps.</p> Signup and view all the answers

When a company begins working in a brand new market or with new products, it is engaged in

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

The broad possibilities available in the market strategy planning process include market development, market penetration, product development, and

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

Since most firms find attractive opportunities for their products fairly close to existing markets, what opportunity do marketing strategies typically pursue first?

<p>Market penetration</p> Signup and view all the answers

When a company is working to achieve market penetration, it is attempting to increase sales of its _____ products in its _____ markets.

<p>current; present</p> Signup and view all the answers

A company is attempting to achieve market when it works to increase sales by selling its current products in new markets.

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

When a company offers a new product or an improved version of a current product in its present markets, it is engaged in

<p>product development.</p> Signup and view all the answers

Moving into a new line of business, such as a new product or market, is known as

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

Many companies find attractive opportunities close to markets they already know. They are focused on market

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

Customers and competitors are within the ______ market environment and must be considered during marketing strategy planning.

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

When marketing managers analyze similar businesses and their strategies, they are considering the ______ environment.

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

Which four of the following are basic market/competitive situations a company might face? (Check all that apply)

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

Which competitive market situation describes one organization having total control over a product-market?

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

In pure competition, where competitors offer similar products, over time, profit margins generally

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

An important requirement of the marketing strategy planning process is

<p>narrowing down the list of opportunities to those most likely to succeed</p> Signup and view all the answers

In ______ competition, several firms offer marketing mixes that at least some customers see as different. In this situation, marketing managers try to differentiate their offerings by adjusting other aspects of the marketing mix.

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

Which two of the following factors are part of the competitive environment for a fast food chain? (Check all that apply)

<p>The number of restaurants in the market</p> Signup and view all the answers

Which of the following activities are part of the basic approach to competitor analysis? (Check all that apply)

<p>Evaluate the strengths and weaknesses of your target market and marketing mix.</p> Signup and view all the answers

The four basic market situations include monopoly, pure competition, monopolistic competition, and

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

Marketing managers focus their competitive analysis on ______, firms that offer similar products and marketing mixes.

<p>competitive rivals</p> Signup and view all the answers

How common are monopoly situations in market-directed economies?

<p>Relatively rare</p> Signup and view all the answers

Aliza is the marketing manager at SinoSure Foods, an Asian food company. She has been going to stores to check out new products on the shelves by the SinoSure goods. She is actively seeking out information about current and potential

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

In pure competition, customers see the different available products as close substitutes. Many marketing managers compete by

<p>lowering prices and sacrificing profits</p> Signup and view all the answers

Macro-economic factors that influence consumer spending, including rates of inflation and economic growth, are part of the ______ environment.

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

Study Notes

Marketing Fundamentals

  • Promotion in the marketing mix involves salespeople and contests.
  • Target marketing focuses on appealing to specific groups.
  • Product strategy decisions include packaging, installation, branding, and instructions.

Market Classifications

  • Mass marketers target specific groups through broad marketing strategies.
  • Target markets are described as homogeneous segments, sharing similar characteristics.

Promotion Elements

  • Components of promotion include sales promotion, personal selling, and mass selling.
  • Promotion informs customers about product features.

Marketing Mix Insights

  • The marketing mix encompasses product and promotion.
  • Price entails evaluation of delivery costs, discount decisions, and customer reactions to price changes.
  • Product strategy encompasses branding, installation, and service.

Customer Value and Perception

  • Customer value increases with perceived benefits or lower costs.
  • A product can exist as a physical good or a blend of goods and services.

Marketing Plans and Strategies

  • A marketing plan details strategies for achieving marketing objectives.
  • Implementation involves actioning these marketing strategies and plans.
  • Retention rates indicate customer loyalty; for example, 66% at Trina's Bakery.

Competitive Analysis and Market Strategies

  • Four Ps of marketing are equally important and interrelated.
  • Competitive advantages arise when targeted customers prefer a company’s mix over competitors.
  • Market segmentation aids in identifying and understanding customer subgroups.

Growth Opportunities

  • A customer lifetime value represents potential earnings from a customer over their relationship with a company.
  • Customer equity is expected earnings from a customer base within a timeframe.
  • Paths for growth include acquiring new customers, enhancing value, and retaining current customers.

Differentiation and Product Strategies

  • Differentiation occurs when elements of the marketing mix set a company apart from competitors.
  • Companies evolve through opportunities such as market penetration and diversification.

Environmental Considerations

  • Direct market environments include customers and competitors impacting strategies.
  • Economic environments affect consumer spending and include factors like inflation and national income.

Competitor Analysis

  • Understanding the competitive environment requires identifying existing and potential rivals.
  • Competitive situations range from monopolistic competition to oligopoly and monopoly scenarios.

Economic Factors

  • Changes in economic conditions, such as the housing market collapse, can significantly influence marketing strategies.
  • Rapid changes characterize the economic environment, affecting long-term planning.

Technology and Modern Marketing

  • Advancements in technology facilitate resource conversion into goods and services.
  • Examples include AI applications like smart devices enhancing customer interaction.

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Test your knowledge on key concepts from Marketing Chapters 2 to 4 with these interactive flashcards. Topics include promotion strategies, target marketing, and product strategy decisions. Use this quiz to reinforce your understanding of the marketing mix.

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