Marketing Basics: Understanding Concepts, Strategy, and Customer Behavior, Exams of Marketing

Download Marketing Basics: Understanding Concepts, Strategy, and Customer Behavior and more Exams Marketing in PDF only on Docsity! BYU Marketing 201 [Swenson] Midterm 1 Exam Questions with Verified Solutions. Marketing - Correct answer the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large Marketing Strategy - Correct answer a cohesive marketing mix of product, place, price, and promotion, designed for a specific target market. Marketing strategy answers the question, "How do we orchestrate the marketing mix to deliver value to a particular market segment?" Three important components of marketing - Correct answer 1) Marketing is the exchange that takes place between sellers and buyers. 2) Marketing creates, communicates, and delivers value to facilitate exchanges. 3) By delivering value, marketing satisfies customer needs and wants at a profit (marketing concept) Marketing Concept - Correct answer by delivering value, marketing satisfies customer needs and wants at a profit. Markets - Correct answer the aggregate of individuals and organizations that have (1) needs and wants and (2) the ability, willingness, and authority to purchase products and services that satisfy their needs and wants. Business Market (business-to-business market) - Correct answer individuals within organizations and companies purchasing products and services for use or consumption within their organization or for resale. Consumer Market (business-to-consumer market) - Correct answer Individuals buying products and services for personal consumption or use Strategic Triangle - Correct answer Customer, Company, Competition (customer is the central point) Corporate Strategy - Correct answer what businesses should we be in? (Marketing firm considers types of business to include in its portfolio) Strategic Business Unit (SBU) - Correct answer how do we compete effectively in a given business? BCG Growth Model - Correct answer stars, cash cows, question marks, dogs P a g e 1 | 12 Stars - Correct answer high growth, high market share Cash Cows - Correct answer low growth markets that generate more cash than they need (high market share) Question Marks - Correct answer high growth, low market share Dogs - Correct answer low growth, low market share Marketing Mix - Correct answer Product, Price, Place, Promotion Product - Correct answer a bundle of attributes in which each attribute and combination of attributes creates value for customers Place - Correct answer where products are purchased Price - Correct answer the amount of money made for a product Promotion - Correct answer refers to many different marketing activities, such as advertising, public relations, sales promotions, trade promotions, personal selling, and digital marketing. Brand Champions - Correct answer Customers who love the firm's products and then advocate or champion the products to others. Market Penetration - Correct answer selling more of the existing products in existing markets Product Development - Correct answer introducing new products to existing markets Market Development - Correct answer introducing existing products to new markets Diversification - Correct answer introducing new products into new markets Marketing Plan - Correct answer a marketing strategy with a budget and a timeline Customer Lifetime Value (CLV) - Correct answer determines the economic value a customer brings over the lifetime with the business. 3 Ways marketers can boost sales per customer - Correct answer (1) persuading customers to buy more of their products (2) Generating add-on sales (complementary products and services), And (3) partnering with other firms to create add-on sales opportunities. Customer Acquisition - Correct answer how can we acquire (and keep) customers P a g e 2 | 12 What are the four risks of global market expansion? - Correct answer Competitive, economic, legal and political Competitive Risk - Correct answer competitors' responses to the new product's entry into the local market. Economic Risk - Correct answer considers the potential mismanagement of a country's economy as exhibited in inflation and government debt Legal Risk - Correct answer inadequate protection of contracts and intellectual property. Political Risk - Correct answer demonstrations, strikes, civil strife, abrupt government changes, violence, or terrorism that influences business performance. Market Entry Strategies - Correct answer exporting, licensing, joint venture, foreign direct investment Exporting - Correct answer shipping goods produced in the home country to a distributor or retailer in the foreign market Licensing - Correct answer a firm in one country (the licensor) agrees to allow a firm in another country (the licensee) to use its manufacturing, processing, and trademark, know how, patent or some other skill or value. Joint Ventures - Correct answer two or more businesses agree to create a new business, jointly owned by the participating companies. Foreign Direct Investment - Correct answer Companies decide to make direct investments in building up wholly owned operations in other countries. Standardization - Correct answer the firm uses the same marketing mix in the foreign market as it does in its domestic market What are some advantages of standardization? - Correct answer cost reductions, savings in product and promotion (lower production and advertising costs) What are some disadvantages of standardization? - Correct answer Standardized products might not fit the needs of the local market Customization - Correct answer adapting or modifying the marketing mix to suit the local market Local - Correct answer Go global, act local P a g e 5 | 12 Ethics - Correct answer the principles of right and wrong that guide an individual in making decisions What are AMA's three ethical norms? - Correct answer 1) do no harm 2) Foster trust in the marketing system 3) Embrace ethical values What are the four myths of unethical marketing? - Correct answer 1) marketers push products customers don't want to buy 2) Customers are no match for the power of marketing 3) Marketing is deceptive and not truthful or honest 4) Marketers believe in planned obsolesce (purposefully making sure a product becomes obsolete over time) The Fraud Triangle - Correct answer Opportunity, Motivation (Pressure), Rationalization Opportunity - Correct answer condition or situation that allows fraud to occur Motivation (Pressure) - Correct answer pressure or need felt by person who commits fraud Rationalization - Correct answer the process of reconciling or justifying fraudulent behavior What is the framework for ethics? - Correct answer Personal ethical understanding, applications of ethics to business situations, Ethical courage, and ethical leadership. Social Responsibility - Correct answer businesses and organizations are part of a larger society and that they are accountable to that society for their actions. Sustainability - Correct answer the creation of alternatives to the depletion of natural resources Green Marketing - Correct answer when companies engage in the production and promotion of environmentally safe products. What are the five steps of the marketing research process? - Correct answer 1) define problem 2) Design research project 3) Collect data 4) Analyze data 5) Take action Exploratory Research - Correct answer general; identify problems and opportunities, small groups (ex: personal interviews or focus groups) P a g e 6 | 12 Conclusive Research - Correct answer specific; confirm impressions and insights, large and objective sample (ex: surveys) Syndicated Data - Correct answer data collected for specific industries Secondary Data - Correct answer Data previously collected for any purpose other than the one at hand Primary Data - Correct answer information collected for the specific purpose at hand Data Wrangling - Correct answer the process of unifying, cleaning, and preparing unorganized or scattered data for analysis Data Exploration - Correct answer Discovery through numerical summaries and visualizations Data Modeling - Correct answer - Transform the data to extract insights - Build a model to represent the phenomenon of interest Deployment and Socialization - Correct answer communicate the results to the users, tell your story with data Null Hypothesis - Correct answer states that "the differences we observe are due only to random error." Random Error - Correct answer error that comes about from taking a sample from the population rather than getting data from every member of the population. Chance of random error decreases when sample size increases. Nominal Scale - Correct answer classifies data into distinct categories Ordinal Scale - Correct answer uses numbers ordered into an increasing size like finishers in a foot race (1 is better than 2, 2 is better than 3) Interval Scale - Correct answer assumes an equal distance between numbers. Ratio Scale - Correct answer have equal intervals and equal ratios. Screener Questions - Correct answer basic information and a set of short questions that will either qualify or disqualify the person from participating in the study. Sampling Error - Correct answer the probability that differences in averages or percentages are due to the random chance of drawing a bad sample rather than some real difference. Validity - Correct answer the extent to which measurement is free from systematic error. P a g e 7 | 12 Consumer Behavior - Correct answer the process a consumer uses to make purchasing decisions, as well as to use and dispose of products. Marketing Insight - Correct answer a deep understanding of consumer attitudes and beliefs that have the power to shape consumer behavior. Person Variability - Correct answer tastes and preferences vary across people. Situation Variability - Correct answer People make choices depending on the situation General Stimuli - Correct answer the economy, political environment, technological changes, natural surroundings, social context, and culture. Marketing Stimuli - Correct answer competing marketing mixes consisting of various products, prices, places, and promotions. Routine Problem Solving - Correct answer is typically the case for low-priced, frequently purchased products such as table salt, a soft drink, or snack. Extensive Problem Solving - Correct answer expensive, high risk purchases that consumers research before buying What are the stages of consumer behavior? - Correct answer Problem recognition, information search, and evaluation of alternatives, purchase, and post-purchase evaluation Zero Moment of Truth - Correct answer a customer's information search First Moment of Truth - Correct answer when customers compare and select a product at the point of purchase Elimination by Aspects - Correct answer alternatives that are missing an important aspect or attribute are eliminated from purchase consideration. Compensatory Rule - Correct answer the poor performance of an alternative in regards to one aspect or attribute can be compensated for by superior performance on another aspect or attribute. Lexicographic Rule - Correct answer a customer lists all product attributes by order of importance, and the product that performs best on the most important attribute is selected. Second Moment of Truth - Correct answer the moment the consumer uses the product and feels satisfaction or dissatisfaction P a g e 10 | 12 What factors influence consumer behavior? - Correct answer cultural, social, individual, and psychological Subculture - Correct answer share elements of the overall culture and add unique elements of their own Social Class - Correct answer a cultural stratification process based on wealth, income, education, and occupation. Reference Groups - Correct answer a group that an individual uses as a standard to evaluate their purchase decisions. (Friends, colleagues, classmates, etc.). Opinion Leaders - Correct answer professionals or celebrities that set the standard of the "best" brand Selective Attention - Correct answer screen out less useful information Selective Distortion - Correct answer remember or distort information to support their feelings and beliefs (echo chamber) Selective Retention - Correct answer tend to remember good and bad points Subliminal Advertising - Correct answer potentially hidden messages in advertising to influence consumers' perceptions and responses. (This topic has little relevance for marketers) Learning Experiences - Correct answer Experiences that result in satisfying and delightful consequences have a higher probability of being repeated than those that result in dissatisfaction. What are the five components of the buying center? - Correct answer Influencers, gatekeepers, buyer, decider, and user Influencer - Correct answer affect the outcome decision with their opinions (child) Gatekeeper - Correct answer control the flow of information (secretary) Buyer - Correct answer purchaser (dad) Decider - Correct answer has the final decision to buy (mom) User - Correct answer Ones who use the product or service (kids) Straight Rebuy - Correct answer routine ordering of products and services that are purchased over and over again. P a g e 11 | 12 Modified Rebuy - Correct answer a business buying situation in which the buyer wants to modify product specifications, prices, terms, or suppliers New Task Purchase - Correct answer a first time purchase decision P a g e 12 | 12