textbook notes

Question 1

what key term means trying to sell to “everyone”

Answer 1

mass marketing

Question 2

what key term means to aim at large but clearly defined target markets?

Answer 2

Mass marketers; like Kraft or Walmart, they aim at large but clearly defined target markets.

Question 3

the typical production-oriented approach-vaguely aims at “everyone” with the same marketing mix. It assumes that everyone is the same-and it considers everyone to be a potential customer.

Answer 3

mass marketing

Question 4

is not limited to small market segments-only to fairly homogeneous ones.

Answer 4

Target marketing

Question 5

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

Answer 5

customer lifetime value

Question 6

the total profits a single customer contributes to a firm over the length of the relationship.

Answer 6

customer lifetime value (CLV)

Question 7

three marketing metrics are needed to estimate customer lifetime value, these are

Answer 7

1. average profit margin, 2. retention rate, and 3. acquisition cost.

Question 8

refers to the percentage of customers retained as compared to the total number of customers.

Answer 8

the retention rate

Question 9

the expense required to acquire each new customer.

Answer 9

the acquisition cost

Question 10

what is the formula for acquisition cost?

Answer 10

the total advertising dollars spent divided by the number of new customers

Question 11

it uses a single marketing mix to appeal to everyone and it is a production-oriented approach, what term describes these characteristics?

Answer 11

mass marketing

Question 12

the total profits that a single customer contributes to a firm over the length of the relationship is known as

Answer 12

the CLV or customer lifetime value

Question 13

describe a large firm that aims at specific groups

Answer 13

a mass marketer

Question 14

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

Answer 14

Homogeneous

Question 15

the amount of money a company can expect to earn from a customer during a given time is

Answer 15

customer equity

Question 16

what is true with respect to target marketing?

Answer 16

target marketing can mean big profits and big markets and target marketing fulfills the selected group’s needs better than mass-marketing.

Question 17

What are a company’s three potential paths for growth based on the customer equity approach?

Answer 17

retaining current customers, enhancing customer value, and acquiring new customers.

Question 18

Companies rely on ____ ____ 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.

Answer 18

breakthrough

Question 19

with respect to customer equity

Answer 19

marketing managers make decisions that will increase future profits and companies make decisions that will affect long-term profits.

Question 20

in regards to a marketing strategy planning process

Answer 20

the marketing strategy process starts broadly and then narrows down, and a marketing strategy begins with an evaluation of customers, competitors, and company.

Question 21

a successful marketing strategy pairs

Answer 21

opportunities with a company’s resources and goals.

Question 22

developing a _____ ____ ___ __ __ __ __ can help a manager identify and define the markets in which the firm wants to compete

Answer 22

developing a set of specific qualitative and quantitative criteria

Question 23

examples of breakthrough opportunities for a candy company could be _____ and ____

Answer 23

a patented formula that customers love and competitors could not copy, and the opportunity to purchase a well-known and respected brand name.

Question 24

What are sources/examples of competitive advantage?

Answer 24

lower prices than competitors, a well-known and highly respected brand name, a well-trained and experienced sales force, and agreements with the best retailers in the product category.

Question 25

when a target market prefers the company’s marketing mix over the competitor’s mix, that is an example of what?

Answer 25

a competitive advantage

Question 26

What is a SWOT analysis?

Answer 26

A SWOT analysis picks out a firm’s weak and strong points, as well as any potential opportunities or threats the firm might face.

Question 27

Why does the marketing strategy process start broad before narrowing?

Answer 27

it gives firms a chance to identify opportunities they might miss if the process starts too narrow.

Question 28

What are somethings that are true about qualitative and quantitative screening criteria marketing mangers develop?

Answer 28

The firm’s objective and available resources help determine the appropriate criteria to use, and these criteria are useful in figuring out the markets in which a firm wants to compete.

Question 29

What is the key term that means to help companies create marketing strategies that are difficult to replicate and have long-term profit potential?

Answer 29

Breakthrough opportunities

Question 30

If a Mexican restaurant in a medium sized town had some competitive advantages, what might they be?

Answer 30

it has lower prices and better advertising than its competitors, a better location and better customer service also.

Question 31

A SWOT analysis is supposed to help a company figure out which four things?

Answer 31

Strengths, Weaknesses, threats, and opportunities.

Question 32

if a company wants to identify and understand different subgroups in a target market, marketing managers may rely on what key term?

Answer 32

market segmentation

Question 33

Which of the following could be examples of “breakthrough opportunities” for candy companies? 1. Marketing research on consumer preferences for chocolate versus vanilla, 2. the opportunity to purchase a well-known and respected brand name, 3. A new size of packaging for various candy bars, 4. A patented formula that customers love and competitors could not copy.

Answer 33

2. the opportunity to purchase a well-known and respected brand name, and 4. a patented formula that customers love and competitors could not copy.

Question 34

What is the purpose of a SWOT analysis again?

Answer 34

Picks out a firm’s weak and strong points, as well as any potential opportunities or threats the firm might face.

Question 35

Market segmentation helps managers do what?

Answer 35

decide to serve some segments-subgroups of customers- and not others.

Question 36

In regards to market segmentation, what is considered to be true about the key term?

Answer 36

Managers use segmentation to help them figure out which groups of customers to serve, and a major reason for market segmentation is to help managers truly understand the customers.

Question 37

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.

Answer 37

breakthrough opportunities, LESSSS GO!

Question 38

According to the text, Customers can perceive differences based on what?

Answer 38

only one important element of the marketing mix.

Question 39

What key term means that the marketing mix is distinct from what is available from a competitor?

Answer 39

Differentiation

Question 40

Statements about differentiation that are true …….

Answer 40

Offering a lower price than the competition-while being similar on the other three Ps-would be a source of differentiation. Also, Differentiation can only occur if one or more of the four Ps is done better than the competition. And finally, true differentiation occurs when customers see the firm’s offering as being better with regard to all four Ps.

Question 41

Hope Springs bottled water company is concerned about how the company’s business activities impact its employees and the world in which it operates, cares about the environment, but also wants to earn a profit. From the description in the video, it would appear that Hope Springs considers the __________Blank when it develops a marketing strategy.

Answer 41

triple bottom line: it measures an organization’s economic, social, and environmental outcomes-as a measure of long-term success.

Question 42

According to the concept of social responsibility, a company has a duty to

Answer 42

work in a way that is always good for society as a whole.

Question 43

_____ refers to a firm’s obligation to improve its positive effect on nicety and reduce its negative effects.

Answer 43

Corporate social responsibility

Question 44

a company should develop ______ to promote fair and honest dealings with all stakeholders inside and outside of the organization.

Answer 44

a code of ethics

Question 45

what measures an organization’s economic, social, and environmental outcomes-as a measure of long-term success?

Answer 45

a triple bottom line