Midterm

Question 1

Sales Orientation

Answer 1

Aggressive sales techniques and belief that high sales result in high profit

Question 2

Market Orientation

Answer 2

Satisfying customer needs and wants while meeting objectives

Question 3

5 Conditions for Exchange

Answer 3

• At least two parties
• Something of value
• Communication and delivery
• Freedom to accept of reject
• Desire to deal with other party

Question 4

Mission Statement

Answer 4

“What business are we in?”

Should focus on the market it wishes to serve

Question 5

What are the 4 layers of the Corporate Social Responsibility Pyramid from bottom to top?

Answer 5

• Economic (be profitable)
• Legal (obey the law)
• Ethical (do what is right)
• Philanthropic (be a good citizen)

Question 6

Define Morals

Answer 6

Morals are rules people develop as a result of cultural values and norms

Question 7

What are the six determinants of a civil society?

Answer 7

• Ethics
• Laws
• Formal and Informal Groups
• Self Regulation
• The Media
• Active Civil Society

Question 8

Define Code of Ethics

Answer 8

A guideline to help
marketing managers and other
employees make better decisions

Question 9

What is Environmental Scanning?

Answer 9

Environmental scanning entails the collection and analysis of information about factors that may affect the organization as well as the identification of market opportunities and threats

Question 10

Describe the typical target market

Answer 10

Target markets change over time as consumers drop in or out of the market, and as tastes change.

Question 11

List the five social factors apparent in the United States in the 21st century

Answer 11

• American Values
• Personality traits by region
• Growth of Component Lifestyles
• Changing Roles of Families and Working Women
• There is Never Enough Time

Question 12

What are the steps of the consumer decision-making process?

Answer 12

• Need recognition
• Information search
• Evaluation of alternatives
• Purchase
• Postpurchase behavior

Question 13

What are the three consumer buying decisions?

Answer 13

• Routine response behavior
• Limited decision making
• Extensive decision making

Question 14

List Maslow’s hierarchy of needs from bottom to top

Answer 14

• Physiological needs
• Safety needs
• Social needs
• Esteem needs
• Self-actualization

Question 15

Name and describe the five common segmentation bases used by marketers to segment consumer markets.

Answer 15

Geographic–by region, market size, market density, or climate

Demographic–such as age, gender, ethnic background, income, or family life-cycle stage

Psychographics–such as motives, lifestyles, or personality

Benefit–such as less filling or great taste

Usage rate–heavy, medium, or light

Question 16

What is benefit segmentation?

Answer 16

Benefit segmentation is a way of grouping potential customers into a specific market according to their needs and wants

Question 17

What are the 6 steps in the marketing research process?

Answer 17

• Identify the problem
• Plan design/Secondary data
• Collect primary data
• Analyze data
• Prepare/present report
• Follow up

Question 18

What is a product item?

Answer 18

A product item is a exact version of a product that is distinct among an organization’s other products

Question 19

What is a product line?

Answer 19

A product line would be a group of closely related product items

Question 20

What is a product mix?

Answer 20

A product mix is a group of all of the products that an organization sells

Question 21

What are the four categories of consumer products?

Answer 21

• Convenience
• Shopping
• Specialty
• Unsought

Question 22

List the seven steps of the new-product development process

Answer 22

• New-product strategy
• Idea generation
• Idea screening
• Business Analysis
• Development
• Test marketing
• Commercialization

Question 23

List the four stages of the product life cycle and discuss the typical characteristics for each stage.

Answer 23

Introductory Stage
Generally has high failure rates, little competition, and the product requires product modification.

Growth Stage
Sales grow at an increasing rate with many other competitors entering the market and the company having healthy profits.

Maturity Stage
The company would now have saturated the market and the sales are still increasing, but at a lower rate than before. This stage requires heavy promotion and service and repair to stay relevant.

Decline Stage
The company is seeing a decline in the sales and there are likely a lot of unsold items which leads to the company having to eliminate nonessential expenses in order to stay afloat.

Question 24

Arguments AGAINST Corporate Social Responsibility

Answer 24

Businesses should focus on making a profit and leave social and environmental concerns to nonprofits

Businesses don’t have the expertise to deal with social issues and doing so may interfere with the primary goals of their firms

The expense of social responsibility may damage the country in the global marketplace

Question 25

Arguments FOR Corporate Social Responsibility

Answer 25

It is the right thing to do Business should police itself to avoid government intervention Small companies can prosper and build shareholder value as they tackle social problems

Question 26

Define Cause Related Marketing

Answer 26

It is the cooperative efforts of a "for-profit" firm and a "non-profit" organization for mutual benefit

Question 27

Understand the external environment of marketing (factors a business cannot control)

Answer 27

- Understanding current customers. - Understanding what drives consumer decisions. - Identifying the most valuable customers and understanding their needs. - Understanding the competition.

Question 28

Define Global Marketing

Answer 28

Individuals and organizations using a global vision to effectively market goods and services across national boundaries Benefits: more competition, more economic freedom, higher productivity & living standards Fears: Americans have lost jobs(trade), offshore operations, outsourcing

Question 29

Describe One-to-One Marketing

Answer 29

Focuses on understanding customers as individuals instead of as part of a group. It is an individualized marketing method that utilizes customer information to build long-term, personalized, and profitable relationships with each customer. The goal is to reduce costs through customer retention and increase revenue through customer loyalty.