Chapter 4--Overview

Question 1

What is a target market?

Answer 1

A group of people or organizations for which an organization designs, implements, and maintains a marketing mix intended to meet the need of that group

Question 2

What are the important factors marketers must understand about consumers?

Answer 2

1. how they buy
2. where they buy
3. what they buy
4. when they buy

Question 3

What does it mean to understand the external environment?

Answer 3

1. understand current customers
2. understand what drives consumer decisions
3. identify that most valuable customers and understand their needs
4. understand the competition

Question 4

Marketing managers are basically ___ rather than ___.

Answer 4

adapters rather than agents of change

Question 5

What are the factors within the external environment that are important to marketing managers?

Answer 5

social, demographic, economic, technological, political and legal, competitive

Question 6

What do social factors include?

Answer 6

attitudes, values, and lifestyles

Question 7

What are the values of American people?

Answer 7

1. self sufficiency
2. upward mobility
3. work ethic
4. conformity

Question 8

What are the characteristics of product quality that US consumers care about?

Answer 8

1. reliability
2. durability
3. easy maintenance
4. ease of use
5. a trusted brand name
6. low price

Question 9

What is a component lifestyle?

Answer 9

when people choose products and services that meet diverse needs and interests rather than conforming to traditional stereotypes

Question 10

How is social media helpful for marketers?

Answer 10

1. monitor what is being said about the brand
2. respond to both positive and negative buzz about a company or brand
3. introduce new products
4. amplify a promotional campaign by inviting consumers to join the conversation about a brand

Question 11

What is demography?

Answer 11

The study of people’s vital statistics, such as age, race, and ethnicity and location

Question 12

What type of consumers are minorities?

Answer 12

They embrace other cultures while continuing to patronize companies that understand their native cultural preferences

Question 13

What types of products do Hispanics prefer?

Answer 13

They prefer products from their native country.

Question 14

Read Section 4.4 for info on ethnic markets

Answer 14

READ

Question 15

What are the three most important economic areas of interest for marketers?

Answer 15

consumers’ incomes, inflation, recession

Question 16

What is the primary determinant of a person’s earning potential?

Answer 16

education

Question 17

What is purchasing power?

Answer 17

comparing income to the relative cost of a standard set of G&S in different geographic areas, AKA cost of living

Question 18

How do marketers deal with inflation?

Answer 18

They must realize that, regardless of what happens to the seller’s cost, the buyer is not going to pay more for a product than the subjective value he/she places on it

Question 19

What does technological success depend upon?

Answer 19

Innovation, and innovation requires imagination and risk taking

Question 20

What is the difference between basic and applied research?

Answer 20

Basic research (AKA pure research) attempts to expand the frontiers of knowledge, but does not solve a specific problem; applied research attempts to develop new or improved products

Question 21

What are ways that companies are trying to keep their innovation strong?

Answer 21

1. building scenarios
2. enlisting the web
3. talking to early adopters
4. using market research
5. creating an innovation environment
6. catering to entrepreneurs

Question 22

Why do businesses need government regulation?

Answer 22

to protect innovators of new technology, the interests of society in general, one business from another, and consumers

Question 23

What are the three federal agencies most directly involved in marketing affairs?

Answer 23

Consumer Product Safety Commission, FTC, FDA

Question 24

What is the purpose of the Consumer Product Safety Commission (CPSC)?

Answer 24

to protect the health and safety of consumers in and around their homes

Question 25

What does the FTC do?

Answer 25

It prevents persons or corporations from using unfair methods of competition in commerce.

Question 26

What does the competitive factors include?

Answer 26

number of competitors a firm may face, the relative size of the competitors, and the degree of interdependence within the industry