PRINCIPLES OF MARKETING Mid Term Exam - Amazon...
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1 UNIVERSITY OF TORONTO Faculty of Arts and Science & Rotman School of Management Signature: ______________________________________________________
Transcript of PRINCIPLES OF MARKETING Mid Term Exam - Amazon...
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UNIVERSITY OF TORONTO
Faculty of Arts and Science
&
Rotman School of Management
PRINCIPLES OF MARKETING
RSM250H1S, 2013
Professor Mengze Shi
Mid-Term Exam
Duration - 1 hour and 50 minutes / Questions - 36 / Total Points - 100
No Aids Allowed
_____________________________________________________________________________________________________
This is a closed book, closed notes exam. Point allocation is indicated in parentheses.
DO NOT TURN THIS PAGE OVER UNTIL INSTRUCTED.
GOOD LUCK!
Please fill in: Name (in full): _____________________________________________________________________
Student ID: _____________________________________________________________________
Signature: ______________________________________________________
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Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. (2 points each, 60 points in total)
1) Juana looked at her September issue of O magazine and did not see anything of interest. After her mother was diagnosed with bipolar disorder, she found the issue extremely interesting because it offered advice on how to help people who are suffering from this problem. The issue became quite interesting to Juana due to ________.
1) ________
A) unconscious motivations B) social factors C) selective attention D) the hierarchy of needs E) subliminal messaging
2) Tim Hortons might consider adding gas bars to complement its drive-through services. In that
case, the company would be pursuing a ________. 2) ________
A) diversification strategy B) product development strategy C) product adaptation strategy D) downsizing strategy E) market penetration strategy
3) ________ should be market oriented and defined in terms of ________. 3) ________
A) Strategic plans; company needs B) Mission statements; customers' needs C) Objectives; competitors' threats D) Long-range plans; company needs E) Annual plans; product needs
4) Kimball Gardens is a company that operates as two distinct businesses: one that sells lawn and
garden products and one that markets booklets. Each business is called a ________. 4) ________
A) Strategic business unit (SBU) B) BCG C) Separate entity D) star E) Business portfolio
5) Stephanie and Jamal attended a sales seminar. Both left the seminar with differing opinions
about what was important to implement in their sales job. They used the information in different ways, according to what each already believed was important. They have engaged in ________.
5) ________
A) selective distortion B) selective attitude C) selective retention D) selective attention E) perceptual defense
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6) Effective positioning begins with ________ the company's marketing offer in order to give consumers more perceived value.
6) ________
A) placing B) differentiating C) aligning D) promoting E) pricing
7) Your colleague is confused about using the marketing research process, as he knows that
something is wrong but is not sure of the specific causes to investigate. He seems to be having problems with ________, which is often the hardest step to take.
7) ________
A) selecting a research agency B) determining a research approach C) defining the problem and research objectives D) developing the research plan E) obtaining marketing intelligence
8) Information collected from online databases is an example of ________ data. 8) ________ A) experimental B) ethnographic C) primary D) secondary E) observational
9) Your assistant wants to use secondary data exclusively for the current research project. You advise him that the use of secondary data has some potential problems. Which of the following is NOT one of them?
9) ________
A) It is generally more expensive to obtain than primary data. B) It may not be current. C) It may not be relevant. D) It may not be impartial. E) It may not exist.
10) Your marketing department is attempting to improve strategic decision making, track competitors' actions, and provide early warning of opportunities and threats. To achieve this goal, which of the following would be the best for your department to use?
10) ______
A) marketing intelligence B) external databases only C) company reports only D) the Internet E) internal databases
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11) Juanita Petino operates a dress shop in a suburban mall. Her research budget is very small, so she utilizes low-cost or no-cost methods to gather research data. One method that works very well for her is to change the themes in her local newspaper and radio advertising and watch the result. Juanita is using ________ to gather data for marketing decisions.
11) ______
A) logic-directed research B) experiments C) guess work D) informal surveys E) secondary sources
12) The pharmaceuticals division of Omni Healthcare holds low market share in a high-growth
market. In order to increase market share, managers would be most likely to decide which of the following?
12) ______
A) implement a harvest strategy B) diversify the pharmaceutical division C) divest the SBU D) hold the pharmaceuticals division's share E) use money from a cash cow to promote the pharmaceuticals division
13) Which of the following is the set of benefits a company promises to deliver to the customer to
satisfy their needs? 13) ______
A) Good customer service B) Money back guarantee C) Low pricing D) An attribute E) A value proposition
14) What is the following an example of? "To busy, mobile professionals who need to always be in
the loop, BlackBerry is a wireless connectivity solution that gives you an easier, more reliable way to stay connected to data, people, and resources while on the go.".
14) ______
A) competitive advantageB) positioning statementC) service differentiationD) concentrated segmentationE) responsible target marketing
15) Cameron loves to know about and purchase the most up-to-date technological gadgets. Among
his friends, he is almost always the first to own the newest electronic product. Often the products that Cameron buys become adopted by large groups of consumers, but occasionally Cameron will purchase a product that is adopted by only a small portion of the population. To which of the following adopter groups does Cameron belong?
15) ______
A) early adopter B) laggards C) innovator D) late majority E) early majority
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16) Fifty five-year-old baby boomers share common needs in music and performers. When a music company decides to serve this group, the group is called a(n) ________.
16) ______
A) differentiated market B) well-defined market C) market segment D) target market E) undifferentiated market
17) Which positioning strategy offers consumers a "good deal" by offering equivalent-quality
products or services at a lower price? 17) _____
A) more-for-the-same B) less-for-much-less C) all-or-nothing D) more-for-less E) same-for-less
18) All of the following are accurate descriptions of modern marketing, EXCEPT which one? 18) ______
A) Selling and advertising are synonymous with marketing. B) Marketing involves satisfying customers' needs. C) Marketing is managing profitable customer relationships. D) Marketing is the creation of value for customers. E) Marketing is used by for-profit and not-for-profit organizations.
19) Which of the following is the most logical reason for Procter & Gamble offering products that
compete with one another on the same supermarket shelves? 19) _____
A) Retailers request it. B) Different people want different mixes of benefits from the products they buy. C) It creates healthy competition. D) Different people want a greater selection. E) Procter & Gamble has little competition.
20) Sanguine Services practices a marketing strategy where its limited resources are used to go after
a large share of two small niches. Sanguine practices which one of these strategies? 20) _____
A) concentrated B) geographically dispersed C) differentiated D) mass E) undifferentiated
21) When it first opened for business, Home Depot claimed to offer better products at lower prices.
This hard-to-sustain value proposition is called ________. 21) ______
A) more-for-less B) same-for-less C) more-for-the-same D) same-for-more E) more-for-more
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22) Jolene's firm markets preplanning services for morticians. She finds that most of her target market wants to avoid discussing their future funeral needs, and she must somehow first get their attention. Jolene's firm is most likely practicing the ________.
22) _____
A) Marketing concept B) Production concept C) Selling concept D) Relationship concept E) Product concept
23) At one time Miller Beer was known as the "champagne of bottled beer." Unfortunately, Miller drinkers did not drink much beer. To increase sales, Miller was repositioned to attract the members of the middle working class. This segmentation approach is ________.
23) ______
A) usage rate. B) psychological. C) behavioral. D) user status. E) benefit.
24) "Build a better mousetrap and the world will beat a path to your door" reflects the ________ concept.
24) ______
A) selling B) marketing C) product D) production E) target marketing
25) Jay Bee Promotions tailors its advertising and promotional services to the needs and preferences of individual customers. Which of the following terms does NOT apply to this type of marketing?
25) ______
A) customized B) markets-of-one C) concentrated D) mass customization E) one-to-one
26) Wal-Mart, the world's largest retailer, has successfully launched its stores in Mexico, Canada, the U.K., and Germany, and other nations. This is an example of how Wal-Mart is pursuing ________ as a growth strategy.
26) ______
A) Diversification B) Market penetration C) Product development D) Market development E) Product adaptation
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27) Mass marketers, such as Wal-Mart and Zellers, often ignore market segment differences and target the whole market with one offer. What is their approach to segmenting?
27) ______
A) Concentrated marketing B) Micromarketing C) Undifferentiated marketing D) Differentiated marketing E) Target marketing
28) Even though several options are available at any one time, there ________ to segment a market. 28) ______
A) is no single way B) is one single best way C) are limited ways D) is a most effective way E) are four ways
29) The markets you have chosen to serve in four western states can be effectively reached and
served. You would tell the marketing manager that these segments are ________. 29) ______
A) substantial B) actionable C) profitable D) accessible E) measurable
30) Your firm has decided to localize its products and services to meet local market demands. A
good approach to use would be ________ segmentation. 30) ______
A) image B) benefit C) geographic D) behavior E) End-use
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Part II: SHORT ANSWER. (5 points each, 20 points in total)
Write your answer in the open space.
31) Select an industry of your choice, and draw a perceptual map of the major competitors in this industry. Why is such perceptual map useful?
32)
What is marketing myopia? Name a company that has suffered from marketing myopia and briefly describe why this is an example for marketing myopia.
Asli Ersozoglu
I picked the industry of universities and drew a perceptual map based on two features; academic difficulty and whether the university provides a suburban or urban campus life. Perceptual map graphically represents the competitive positioning in a category and it matters because it derived from data of customer perceptions of existing products.They are really useful, because they are based on how consumers perceive the offerings in the industry. It shows what makes a product better than others and what factors determine that as perceived by consumers.
Asli Ersozoglu
Marketing myopia asks the question “what business are you really in?”. It argues that sustained growth depends on how broadly you define your business and how carefully you know and try to satisfy your customers. Railroad industry is an industry that suffered from the marketing myopia. Before, railroads were the only method of transportation. It went through the business cycle step by step. And after growth, it started to decline. Cars and planes started to be used more often. More people started to own their own vehicles. However, saturated market due to increased competition wasn’t the reason by the railroad industry started to decline. It is the defined term railroad industry that slowed down the growth. The need for transportation hasn’t decreased, in fact it was the opposite. Demand for transportation was increasing, but because the railroad industry thought they were specifically in the railroad industry, they started to decline. They focused more on selling their service and satisfying consumers’ needs. they behaved product oriented, rather than market-oriented. Only if they defined themselves as an important part of the transportation industry, they could have take advantage of the emerging opportunities.
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33) Use example(s) to illustrate the difference between “Production Orientation” and “Customer Orientation”. Briefly explain why a company may want to follow a “customer orientation” rather than a “Production Orientation”.
34) List Maslow’s hierarchy of needs. For each level of need, identify a brand that can fulfill the need.
Asli Ersozoglu
When a company is product oriented, they place the product in the core of their business. They focus more on how they can produce it more efficiently or what more features can we add. They operate under the assumption that the product would sell itself when it is produced at the highest quality that can be achieved. An example of a firm that is product oriented would be IKEA. IKEA always seeks to find a more efficient way of doing business. most of their focus goes to how can we cut costs even more. they believe they would maximise their sales if their furniture is good quality and cheaper than their competitors. A company that is market oriented on the other hand, is aware of what the market wants and needs and places its customers in the core of its marketing mix. It focuses more on determining what its consumers value and alters its products with every change that occurs in the market. this approach lets companies to charge at a price that doesn’t have to be just a little over COGS but higher (yet still lower than the perceived value). An example would be Starbucks. Starbucks changes its menu for every holiday attempting to satisfy people’s changes desires. Following a customer oriented approach has many benefits that customer orientation can’t provide. when a company places its operation based on data about what consumers want, it can be more responsive to the changing market demand. All the companies eventually would provide what consumers want but market oriented companies just would do that at a more timely manner and easier. this would mean increased profitability plus customer loyalty, which are essential for long term success.
Asli Ersozoglu
Physiological: Safety: Social: Esteem:Self-Actualization:
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Part III: ESSAY. (10 points each, 20 points in total)
Write your answer in the open space.
35) Companies often conduct marketing research to measure customer satisfaction. (a) Identify the stages in marketing research process for measuring customer satisfaction. (4 Points) (b) Describe the main activities in each stage. In describing the main activities, you may choose a company (e.g., Enterprise Rent a Car, Home Depot, iPhone, etc) to illustrate these activities. (6 Points)
Asli Ersozoglu
For this marketing research, we need primary data, because even thought it would take more time and be more costly, it would give us more relevant information that we desire to find. To conduct the research on customer satisfaction, we first need to determine what do consumers value about the framework of our product. To illustrate to measure satisfaction people get from IPhone, we need to know what they are looking for in a phone. To gather that information, we don’t need a large sample size or a quantitative type of data. Our options are individual depth interviews or focus groups, because we want descriptive data of consumer beliefs and insights. As a result, we would get a list of features.Knowing why do consumers value about those features would also help us add depth to our satisfaction survey at the end. We can gather that data by the laddering technique that would determine the benefits people get from those features and why they need those benefits. No statistical analysis is requires yet, nor a large sample. We want consumers to talk freely in these steps of our research because their opinions matter to us
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36)
Judy Chen has always loved working with animals. She has experience in pet grooming, boarding, and in-home pet sitting. She wants to open a full-service business utilizing her skills that is uniquely positioned in relation to the traditional pet grooming/boarding business that operates in her town. Customers that use these current pet services deliver their pets to the firms and later pick them up. Most are open between 9 a.m. and 6 p.m. Monday to Friday. Judy lives in a midsize city close to a major airport. Many high-tech industries are located in or near her city, so there are many men and women in managerial and IT positions, and travel is a regular part of their work. A lot of families have pets, so Judy thinks there is a market for pet-related services, despite the competition. Questions: (a) How should Judy segment the market for pet services? (3 Points) (b) What targeting strategies should Judy use to start her business? Why? (4 points) (c). How should Judy position her pet services business against her competition? Why? (3 points)
Asli Ersozoglu
in her towndeliver and pick it up done by the customermidsize city to a major airportmanagerial and IT positions who travel a lotmany people with petscompetition hoursmarket segmenting for pet servicesby benefitspet groomingboardingin home pet sittingby observable characteristics of consumershigh income families with kids who have bought a pet and want their pet to be groomed. this would be older adults who who like animals but also want their pet to be in their own control. They don’t want to be busy running around their pet but rather want their pet to behave. these people would possibly belong to a higher social class.People who would benefit from the boarding service would be people from any demographics who would care enough to bring an animal to pet services. they would most likely have more free time than a high statuses employee. Pet sitting; women and men working in managerial and IT positions and own a pet, who belong to a wider geographic location and travel for business often. They would have high income and belong to a higher social status. They would also have a higher education level and they would not have children. Judy has the skills to target each segment with a unique offer appealing to them. She could have enjoy a competitive advantage if she followed a differentiated target marketing, but we should also consider the fact that Judy is by herself. We are not given any information that she will receive any help from anyone. So, the only boundary she faces for following a differentiated target marketing strategy is her resources. So she should pick the most profitable segment and target just that segment, in other words serving to a niche market. Given other pet services are not providing the boarding service and Judy is living close to the airport, she should target the 3rd segment. She should position itself as convenient, and unique for offering the boarding service.To all individuals with a pet who have a high paying, high level job but have to travel often, Judy’s Pet services, the brand that offers pet services, is the most convenient and offers the best service of boarding, because it is close to the major airport, optimal for drop of and pick up, and workers full time offering a boarding service unlike the competition that only works few hours a day and 5 days a week.
