Principles of Marketing Exam 1

Question 1

AMA definition of marketing

Answer 1

activity or set of institutions or processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners and society

Question 2

the marketing mix

Answer 2

product, price, place, and promotion strategies

Question 3

exchange

Answer 3

the process by which some transfer of value occurs between a buyer and seller

Question 4

types of competition

Answer 4

monopoly, oligopoly, monopolistic competition, perfect competition

Question 5

market

Answer 5

all the customers and potentials who share a common need that can be satisfied by a specific product, who have the resources to exchange for it, who are willing to make the exchange, and who have the authority to make the exchange

Question 6

marketplace

Answer 6

any location or medium used to conduct an exchange

Question 7

form utility

Answer 7

benefit marketing provides by transforming raw materials into finished products

Question 8

place utility

Answer 8

the benefit marketing provides by making products avaialble when and where the customers want them

Question 9

time utility

Answer 9

the benefit marketing provides by storing products until they are needed

Question 10

possession utility

Answer 10

the benefit marketing provides by allowing the consumer to own use and enjoy the product

Question 11

production era

Answer 11

consumers have to take whatever is available, marketing plays a relatively insignificant role

Question 12

sales ear

Answer 12

when product availability exceeds demand in a buyers market. Management views marketing as a sales function, or a way to move products out of warehouses so that inventories dont pile up. Businesses engage in the hard sell in which salespeople aggressively push their wares

Question 13

relationship era

Answer 13

firms have a customer orientation that satisfies customers needs and wants

Question 14

triple bottom line era

Answer 14

business emphasizes the need to maximize the three components of financial, social, and environmental bottom lines

Question 15

world trade

Answer 15

the flow of goods and services among different countries - the value of all the exports and imports of the worlds nations

Question 16

global levels of economic development

Answer 16

1. least developed country - economic base is often agricultural
2. developing countries - economy shifts emphasis from agriculture to industry
3. Developed countries - offer wide range of opportunities for international marketers

Question 17

Macroenvironment

Answer 17

overall structure of the industry

Question 18

types of competition

Answer 18

monopoly, oligopoly, monopolistic competition, perfect competition

Question 19

market entry strategies for going global

Answer 19

exporting, licensing agreement, franchising, strategic alliances, direct investment (firm expands internationally through ownership)

Question 20

straight extension

Answer 20

firm offers the same product in both domestic and foreign markets

Question 21

product adaptation

Answer 21

firm offers similar but modified product in foreign markets

Question 22

product invention

Answer 22

firm develops a new product for foreign markets

Question 23

backward invention

Answer 23

firm develops a less advanced product to serve the needs of people living in countries without electricity or other elements of a developed infrastructure

Question 24

ethics approaches

Answer 24

utilitarian approach, rights approach, fairness or justice approach, common good approach, virtue approach

Question 25

three levels of business planning

Answer 25

strategic, functional, and operational

Question 26

strategic planning

Answer 26

done by top level corporate management: 1. define the mission 2. evaluate the internal and external environment 3. set organizational or SBU objectives 4. establish the business portfolio 5. develop growth strategies

Question 27

functional planning

Answer 27

done by top functional level, management such as the firms chief marketing officer: 1. perform a situation analysis 2. set marketing objectives 3. develop marketing strategies 4. implement marketing strategies 5. monitor and control marketing strategies

Question 28

operational planning

Answer 28

done by supervisory managers: 1. develop action plans to implement the marketing plan 2. use marketing metrics to monitor how the plan is working

Question 29

portfolio analysis

Answer 29

assess the growth potential for a firms SBUs and product lines

Question 30

BCG Stars

Answer 30

high market growth rate, high relative market share

Question 31

BCG question marks

Answer 31

high market growth rate, low relative market share

Question 32

BCG cash cows

Answer 32

low market growth rate, high relative market share

Question 33

BCG dogs

Answer 33

low market growth rate, low relative market share

Question 34

market penetration strategy

Answer 34

seek to increase sales of existing products to existing markets

Question 35

product development strategy

Answer 35

create growth by selling new products in existing markets

Question 36

market development strategy

Answer 36

introduce existing products to a new market

Question 37

diversification strategy

Answer 37

emphasize both new products and new markets to achieve growth

Question 38

product strategies

Answer 38

design, packaging, branding, etc

Question 39

pricing strategies

Answer 39

determines how much firm charges for a product

Question 40

promotional strategies

Answer 40

how marketers communicate a products value proposition to the target market

Question 41

distribution strategies

Answer 41

outline when, how, and where the firm will make the product available to targeted customers

Question 42

Return on Marketing Investment (ROMI)

Answer 42

revenue generated by investment in a given marketing program divided by the cost of the program at a given level of risk

Question 43

internal company data

Answer 43

information generated within the company to produce reports on sales and marketing activities

Question 44

marketing intelligence

Answer 44

gathered via monitoring of everyday data sources, observations, discussions with sales reps

Question 45

marketing research

Answer 45

refers to the process of collecting, analyzing, and interpreting data about customers, rivals, and the business environment

Question 46

acquired databases

Answer 46

externally sourced databases can be sued to collect a variety of information (non-competing businesses, government databases)

Question 47

MDSS system

Answer 47

MIS data and marketing manager/decision maker using interactive software as the input to statistical and modeling software and the information needed for decision making is the output

Question 48

secondary research

Answer 48

internal sources and external sources

Question 49

internal sources

Answer 49

company reports, previous company research, salesperson feedback

Question 50

external sources

Answer 50

published research, trade organizations, syndicated research, government sources

Question 51

primary research

Answer 51

exploratory, descriptive, and causal research

Question 52

exploratory research

Answer 52

qualitative in nature, good for gaining better understanding of problem, customer interviews, focus groups, projective techniques, case studies, and enographies

Question 53

descriptive research

Answer 53

systematically investigate marketing problem, results expressed in quantitative terms, cross sectional, longitudinal

Question 54

causal research

Answer 54

attempts to identify cause and effect - independent and dependent variables, laboratory research, field studies

Question 55

raw data

Answer 55

raw unorganized facts

Question 56

primary data

Answer 56

refers to data collected by the firm to address a specific question

Question 57

market research process

Answer 57

1. define the research problem 2. determine the research design 3. choose the method to collect primary data 4. design the sample 5. collect the data 6. analyze and interpret the data 7. prepare the research report

Question 58

predictive technology

Answer 58

uses shopping patterns of large numbers of people to determine which products are likely to be purchased if others are

Question 59

bounce rate

Answer 59

measure of how many visitors come to a page on a website and leave without viewing any other pages

Question 60

probability sampling

Answer 60

simple random sampling, systematic random sampling, stratified random sampling

Question 61

non probability sampling

Answer 61

convenience sampling

Question 62

customer relationship management

Answer 62

systematic tracking of consumers preferences and behaviors over time in order to tailor individualized value propositions

Question 63

lifetime value

Answer 63

how much profit a firm will make on a customer

Question 64

big data

Answer 64

describes the exponential growth of structured and unstructured data

Question 65

Brand Association Map (BAM)

Answer 65

analyzes customer conversations on the internet and plots phrases used - the closer a word appears to the center of the map the stronger the correlation or association - the proximity of the words to each other indicates correlation

Question 66

click through rate

Answer 66

(click throughs / impressions) x 100

Question 67

conversion rate

Answer 67

of goal achievements / # of website visitors

Question 68

cost per order

Answer 68

advertising costs / orders