Assignment 1

Principles of Marketing

This is an individual assignment. Answer and turn in the odd questions only (1, 3, 5,…). The
even questions (2, 4, 6,…) will help you to get prepared for the midterm exam.

Chapter 1

1-1-Marketing refers to the activity for CREATING, communicating, DELIVERING and exchanging offerings
that benefit its customers, the ORGANIZATION, its STAKEHOLDERS and SOCIETY at large.

3-1-The Terrafugia Transition is a 19-foot, two-seater road-drivable, light-sport aircraft with an

anticipated price of $279,000. What are some examples of prospective customers for this flying car?

 HIGH INCOME PEOPLE, OLDER GENERATION, RETIRED, AND THOSE WHO ENJOY TRAVELLING

5-1-The American Red Cross created a series of advertisements to encourage people to donate blood.
After viewing an ad, Amanda went to the local Red Cross office and donated a pint of her blood.
Amanda returned home feeling happy that she had performed a good deed. Did an exchange occur in a
marketing sense? If yes, what was exchanged?

 YES, BECAUSE IN THE AD IT SHOWS HOW ONE PERSON CAN MAKE AN IMPACT TO OTHER
PEOPLE AND THIS MAKES THEM FEEL PROUD.

7-1-What are 5 environmental forces that affect an organization?

 REGULATORY
 ECONOMIC
 COMPETITIVE
 TECHNOLOGICAL
 SOCIAL

9-1-Marketing discovers consumer needs by SHOWING CLIENT’S NECESSITY

11-1-People with both the DESIRE and ABILITY to buy a specific offering are referred to as market

13-1-Kraft produces Lunchables, a prepackaged meal usually consisting of several crackers, small slices
of meat, and small slices of cheese. Other items in the product line contain small bottles of Chiquita
Strawberry Banana Fruit smoothie, Capri-Sun juice, or Kool-Aid. The box is bright yellow and the
quantity of food contained within it is small. What do you think is the target market for Kraft
Lunchables?

 CHILDREN
15-1-Which element of the marketing mix is demonstrated when Mars, Inc. has a sale on M&MS® brand
candies?

 PRODUCT

17-1-The element of the marketing mix that describes a means of communication between the seller
and buyer is known as PROMOTION

19-1-The ability to buy a soda from a vending machine demonstrates which element of the marketing
mix?

 PLACE

Chapter 2

1-2- STRATEGY refers to an organization’s long-term course of action designed to deliver a unique
customer experience while achieving its goals.

3-2 STRATEGIC BUSINESS UNIT refers to a subsidiary, division, or unit of an organization that markets a
set of related offerings to a clearly defined group of customers.

5-2-According to Mark Zuckerberg, founder and CEO of Facebook, “We have a saying: ‘Move fast and
break things.’ The idea is that if you never break anything, you’re probably not moving fast enough.”
Moving fast to build more things and learn faster is one of Facebook’s CORE VALUES

7-2-In the Boston Consulting Group (BCG) model for analysis of a firm’s strategic business units, or SBUs,
the vertical axis reflects MARKET GROWTH RATE and horizontal axis reflects RELATIVE MARKET SHARE

9-2- Fill the blanks in the following figure.(BCG):

BC High Relative MARKET SHARE

G Low
Diversification Product
Low Market Growth Rate High

Name: Stars Name: QUESTION

Analysis
Earning: HIGH Earning: Low Current New
Cash Flow: HIGH Cash Flow: Strategy: Strategy:
Current

Strategy: INVEST Strategy: Invest? Sell? MARKET PRODUCT

PENETRATION DEVELOPMENT
Market

Name: CASH COW Name: DOG

Strategy: Strategy:
Earning: HIGH Earning: LOW
New

MARKET Diversification
Cash Flow: High Cash Flow: LOW DEVELOPMENT
Strategy: Strategy: Divest
IMPROVEMENT

11-2-SBUs with a low share of high-growth markets that may require large cash injections of cash just
to maintain market share are referred to as CASH COW
13-2-Several years ago, the Honda Motor Company unveiled the hybrid version of the Honda Civic.
While the hybrid vehicles are very fuel efficient, they are also very expensive to purchase. Hybrid
vehicles sales have increased over 570 percent with a compound annual growth rate of 88.6%. Sales of
the Civic eventually surpassed those of the Toyota Prius, making it the number one hybrid car in the U.S.
For years, Honda has experienced tremendous success with their Accords—in fact, these Honda cars are
the top-selling automobiles in the U.S. Where would the Honda Civic (hybrid version) and the Honda
Accord fall in the BCG business portfolio analysis matrix? STAR: CIVIC, CASH COW: ACCORD

15-2-The acronym “SWOT” in the term “SWOT analysis” stands for STRENGTH WEAKNESSES
OPPORTUNITY THREATS

Chapter 3

1-3- What are 5 environmental forces?

 REGULATORY
 ECONOMIC
 COMPETITIVE
 TECHNOLOGICAL
 SOCIAL

3-3- MySpace.com is a social network that is targeted primarily to people under the age of 25 years old.
In 2005, when MySpace was the leading social network, News Corp, owner of The Wall Street Journal
and Fox News, bought the firm for $580 million. Since then, its membership has declined precipitously
due to changing consumer preferences. As a result, News Corp. sold MySpace to a group of investors
for a paltry $38 million in mid-2011. This is an example of how SOCIAL forces impact the marketing
environment.

5-3- Age, Income, Occupation and Ethnicity are called DEMOGRAPHICS characteristics of the population

7-3- Which generation? Baby boomers? X? Y? Millennium?

a)Born between 1946 and 1964 BABY BOOMER

b)They are currently retiring or nearing retirement age. BABY BOOMER
c)The wealthiest generation in U.S. history BABY BOOMER
d)Some consumer packaged goods firms have reformulated their products to address concerns about
salt, sugar, and saturated fat. They are probably targeting BABY BOOMER
e)50 million people Born between 1965 and 1976 GENERATION X
f)Described as self-reliant, supportive of racial diversity, and better educated than previous generations
GENERATION X
g)Is becoming the largest cohort in terms of business travel GENERATION X
h)Born between 1977 and 1994 GENERATION Y
i)Exerts influence on music, sports, computers, video games GENERATION Y
j)Is interested in distinctive, memorable, and personal experiences GENERATION Y
k)Feels passionate about the environment and is optimism about the future GENERATION Y
l)Younger members of Generation Y born since 1994 MILLENNIALS

9-3-Oil prices have an impact on transportation costs for many types of products. Should oil prices
change, the price consumers pay for products often is adjusted accordingly. Changing oil prices would
be an example of a(n) ECONOMIC force.

11-3- A time of declining economic activity when businesses decrease production, unemployment rises,
and many consumers have less money to spend is referred to as RECESSION

13-3-Cloud computing, such as Apple’s iCloud, enables businesses and consumers to share one’s data or
use a firm’s software application like Microsoft Office directly from that firm’s or a third party’s server
over the Internet or wirelessly rather than having that data file or program reside on a personal
computer. This is an example of a change in the TECHNOLOGICAL marketing environment

Chapter 4

1-4-Law versus Ethics. Society’s values and standards that are enforceable in the courts are referred to
as LAWS However, moral principles and values that govern the actions and decisions of an individual or
group are referred to as ETHICS

3-4- Procter & Gamble supports disadvantaged youth and provided relief after disasters strike when its
customers purchase selected company products. A Toyota dealership in British Columbia, Canada,
donated $50 to the Make-A-Wish Foundation of Canada for each Toyota purchased during a particular
month. Both of these are examples of CAUSE marketing.

Chapter 5

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers
the question.

1-5) Independent agencies provide ratings of many products. A typical report on smartphones
includes brands such as Apple, HTC, LG, Motorola, and Samsung. These brands are referred to
as the ________ when consumers use these smartphone ratings to evaluate the products. 1)
_______

A) value propositions

B) points of difference
C) core benefits

D) evaluative criteria

E) consideration set

3-5) In the VALS framework, two segments stand apart based on their abundance or lack of
psychological, physical, and material 3) _______

A) rewards.

B) ideals.

C) achievement.

D) self-expression.

E) resources.

5-5) Enduring characteristics within a person or in his or her relationship with others are
referred to as 5) _______

A) a core value.

B) an ideal self.

C) a self-concept.

D) a persona.

E) a key trait.

7-5) An example of a public source of information consulted during an external search would
include 7)
A) Consumer Reports magazine.

B) a salesperson at the Apple Store.

C) your brother-in-law.

D) People magazine advertising.

E) a point of purchase display at Target.

Chapter 8

1-8- In setting research objectives, marketers have to be clear on the purpose of research they are about
to do that leads to marketing actions. The three main types of marketing research include
EXPLORATORY research, DESCRIPTIVE research, and CAUSAL research.

3-8- The process of selecting representative elements from a population is referred to as SAMPLING .
Drawing conclusions about a population from a sample taken from that population is referred to as
STATISTICAL INFERENCE.

5-8- Several market research companies pay households and businesses to record all their purchases
using a paper or electronic diary, which allows for an economical way to collect consistent data over
time. These data are referred to as SYNDICATED PANEL DATA.

7-8- What is a focus group? What is it good for?

 MARKETING RESEARCH APPROACH THAT USES A DISCUSSION LEADER TO INTERVIEW 6 TO 10

PAST, PRESENT, OR PROSPECTIVE CUSTOMERS

9-8- What type of scale is the following? “Indicate your degree of agreement with the following
statement: Marketing is an interesting subject” by checking one of the responses below.

LIKERT

( ) Strongly Agree ( ) Agree ( ) Disagree ( ) Strongly Disagree

11-8- Circle correct one.

a) GI Designs, a copper furniture manufacturer, increased the price on its copper tabletops by 20
percent for three months to see what the effect would be on its sales. In this three-month experiment,
the change in sales is the (dependent/independent?) variable and price is the
(dependent/independent?) variable.

b) When Procter & Gamble acquired the Old Spice brand, it decided to reposition the brand by using
different television and print advertising to see whether sales would increase. The level of sales is
(dependent/independent?) variable and the new advertising message is the (dependent/independent?)
variable in this experiment.

Chapter 9

1-9-Aggregating prospective buyers into groups that have common needs and will respond similarly to
a marketing action is referred to as MARKET SEGMENTATION

3-9-What is mass customization? Give an example.

 CUSTOMIZING NEEDS AT YOUR OWN TASTE; CARS OR CLOTHING

5-9- Fill out the following table.

Basis of Segmentation Segmentation Variables Breakdowns

1-REGION NORTHEAST, MIDWEST, SOUTH, NORTH
Geographic
2-CITY SIZE 1,200,000
1-GENDER MALE/FEMALE
2-AGE 12-15,18-35
Demographic
3-BIRTH ERA GEN Z, Y, BABY BOOMER
4-INCOME UNDER $15,000 $15,000-$24,999
1-PERSONALITY EXTROVERT, AGGRESSIVE
Psychographic
2-NEEDS PRICE, HEALTH
1-USAGE RATE LIGHT USER, HEAVY USER
2-USER STATUES USER, NON-USER
Behavioral
3-AWARENESS AWARE, UNAWARE, REJECTION
4-RETAIL STORE TYPE OUTLET, MASS , CONVENIENCE