MAR 3023 EXAM 2 QUESTIONS AND
ANSWERS ALL CORRECT
Global Market Entry - Answer- 1. Importing and Exporting
2. Trading Companies
3. Licensing and Franchising
4. Contract Manufacturing
5. Joint Ventures/Strategic Alliances
6. Direct Ownership/Foreign Direct Investment
Targeting Strategies - Answer- 1. Undifferentiated - entire market is target market with
only one marketing mix, one approach for all (theoretical), homogenous market.
2. Differentiated - two or more segments; more than one marketing mix, different
approach for each.
3. Concentrated - single market segment; one marketing mix (dating sites), well-defined
market with one approach for the particular market.
Segmentation Bases - Answer- Demographic, Geographic, Psychographics, and
Behavioristic.
Demographics - Answer- Describe the characteristics of a population. Gender, age,
ethnicity, education, and religion.
Geographic - Answer- Region, city size, and urban/rural.
Psychographics - Answer- Personality, motives, lifestyles.
Behavioristic - Answer- Usage/volume, benefits, loyalty, and price sensitivity.
Use-Related Segmentation - Answer- Usage Rate: Heavy, Medium, Light, Non-users.
Awareness Status: Unaware, aware, interested, and enthusiastic.
Brand Loyalty: None, some, and strong.
VALS - Answer- The Value and Lifestyles Survey brings all the information together.
Helps classify customers based on psychological characteristics that are correlated with
purchasing behavior and related to key demographics.
, Gray Marketing - Answer- Legal importation of genuine products into a country by other
than authorized intermediaries. Buy the product at a low price in one country, import it
into another, and sell it at a higher price.
Gray Marketing occurs - Answer- when 1) there is a large difference in the pricing of the
same product between two countries, often the result of company strategy and 2) there
are exchange rate differences of products priced in two different currencies.
Marketing Research - Answer- The process of designing, gathering, analyzing, and
reporting information that may be used to solve a marketing problem.
Marketing Research Examples - Answer- Product Development, Pricing Studies,
Customer Satisfaction Assessments, Distribution Analysis, Promotion Effectiveness
Studies.
Marketing Research Originated From - Answer- The Total Quality Movement (TQM) in
the 1980's where marketing research became customer oriented.
Research is performed to - Answer- Find customer reaction to the product, compare the
product with competitors products, and to find problems with the product.
Marketing Research is important - Answer- Gives managers answers to questions.
If customer defection is decreased by 5%, you can increase profits by 25-100%.
One unhappy customer can tell 9-12 others.
It's five times as costly to attract new customers as it is to retain old ones.
On average US firms lose half of their customers every 5 years.
Cluster Analysis - Answer- A statistical analysis technique that identifies customer
segments. Measures things like price sensitivity, importance of quality, and on time
delivery. Identifies segments of customers that have similar characteristics. Resulting
data plots segments against their core competencies and target the groups with the
highest probability off purchasing their products.
Applied Research - Answer- Research designed to solve a specific problem, usually for
a specific company.
Basic Research - Answer- Research designed to extend knowledge of marketing
phenomena, generally published in journals.
Marketing Research Process - Answer- 1. Problem definition
2. Research design
3. Sampling
4. Data gathering
5. Data Analysis
6. Report Preperation
ANSWERS ALL CORRECT
Global Market Entry - Answer- 1. Importing and Exporting
2. Trading Companies
3. Licensing and Franchising
4. Contract Manufacturing
5. Joint Ventures/Strategic Alliances
6. Direct Ownership/Foreign Direct Investment
Targeting Strategies - Answer- 1. Undifferentiated - entire market is target market with
only one marketing mix, one approach for all (theoretical), homogenous market.
2. Differentiated - two or more segments; more than one marketing mix, different
approach for each.
3. Concentrated - single market segment; one marketing mix (dating sites), well-defined
market with one approach for the particular market.
Segmentation Bases - Answer- Demographic, Geographic, Psychographics, and
Behavioristic.
Demographics - Answer- Describe the characteristics of a population. Gender, age,
ethnicity, education, and religion.
Geographic - Answer- Region, city size, and urban/rural.
Psychographics - Answer- Personality, motives, lifestyles.
Behavioristic - Answer- Usage/volume, benefits, loyalty, and price sensitivity.
Use-Related Segmentation - Answer- Usage Rate: Heavy, Medium, Light, Non-users.
Awareness Status: Unaware, aware, interested, and enthusiastic.
Brand Loyalty: None, some, and strong.
VALS - Answer- The Value and Lifestyles Survey brings all the information together.
Helps classify customers based on psychological characteristics that are correlated with
purchasing behavior and related to key demographics.
, Gray Marketing - Answer- Legal importation of genuine products into a country by other
than authorized intermediaries. Buy the product at a low price in one country, import it
into another, and sell it at a higher price.
Gray Marketing occurs - Answer- when 1) there is a large difference in the pricing of the
same product between two countries, often the result of company strategy and 2) there
are exchange rate differences of products priced in two different currencies.
Marketing Research - Answer- The process of designing, gathering, analyzing, and
reporting information that may be used to solve a marketing problem.
Marketing Research Examples - Answer- Product Development, Pricing Studies,
Customer Satisfaction Assessments, Distribution Analysis, Promotion Effectiveness
Studies.
Marketing Research Originated From - Answer- The Total Quality Movement (TQM) in
the 1980's where marketing research became customer oriented.
Research is performed to - Answer- Find customer reaction to the product, compare the
product with competitors products, and to find problems with the product.
Marketing Research is important - Answer- Gives managers answers to questions.
If customer defection is decreased by 5%, you can increase profits by 25-100%.
One unhappy customer can tell 9-12 others.
It's five times as costly to attract new customers as it is to retain old ones.
On average US firms lose half of their customers every 5 years.
Cluster Analysis - Answer- A statistical analysis technique that identifies customer
segments. Measures things like price sensitivity, importance of quality, and on time
delivery. Identifies segments of customers that have similar characteristics. Resulting
data plots segments against their core competencies and target the groups with the
highest probability off purchasing their products.
Applied Research - Answer- Research designed to solve a specific problem, usually for
a specific company.
Basic Research - Answer- Research designed to extend knowledge of marketing
phenomena, generally published in journals.
Marketing Research Process - Answer- 1. Problem definition
2. Research design
3. Sampling
4. Data gathering
5. Data Analysis
6. Report Preperation
