Marketing 3401 Test 1 (ch.1-4)
Chaz loves to play a Disney online pirate game in which he gets to create a pirate by choosing hair color, skin color, clothing, and physical features. Then he gets to choose from a variety of quests and can sail a ship, dig for treasure, fight skeleton pirates, or fight the British Navy. This game provides what element of value?
Co-Creation
A company adhering to the marketing concept will likely take which of the following steps if it learned that its customers were dissatisfied with its product?
Conduct research to determine if its customers' needs have changed.
Marketing is defined as producing, and selling products
False
Only a firm's salespeople need to be customer oriented
False
All of the following are basic marketing mix decisions EXCEPT
Sales
If a company uses a sales orientation, consumer complaints would most likely result in:
a modification of the sales production
One facet of marketing is that it is:
a philosophy that stresses customer satisfaction
A sales-oriented firm defines its business (or mission) in terms of:
goods and services
Redefining the business mission of a mattress manufacturer as "a good night's sleep" rather than stating the mission as "the manufacture of high quality mattresses" will:
help ensure the firm retains its focus on consumers
The Greek Squad is a tech support station located inside every Best Buy electronics retail store. Best Buy gives intensive training to the Greeks. The purpose of this training is to:
improve customer service
The American Marketing Association's definition of marketing:
includes creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.
A business is concerned with many day-to-day activities. Some of the most important of these activities are the planning and development of a product, its ability to communicate value, its pricing policy, and the distribution strategy. These activities are all a part of:
marketing
The concept of exchange is important to marketing because:
marketing activities help to create exchange
An organization with a(n) ____ believes that it exists not only to satisfy customer wants and needs and to meet organizational objectives but also to preserve or enhance individuals' and society's long term best interests
societal marketing orientation
A market-oriented firm defines its business in terms of:
the benefits its customers seek
A marketing researcher is conducting a focus group interview with working mothers to learn how Kraft can better meet their needs for convenience foods. What type of research does this represent?
Applied
Which type of research attempts to develop new or improved products?
Applied
Which demographic category represents the lowest percentage of the U.S. population, but has the highest average family income?
Asian Americans
Which of the following ethnic demographic categories are early adopters of new technology?
Asian Americans
Which type of research is also called pure research and attempts to expand the frontiers of knowledge but is not aimed at a specific, pragmatic problem?
Basic
John R. Harland Co. is best known for printing checks. Its financial solutions division develops software for mortgage companies, which is a growing industry. This division is currently not producing at the desired level of profitability, but Harland plans to turn the division into a success by acquiring other companies that develop similar software. To accomplish this, Harland will be engaging in a _____ strategy.
Building
Which of the following is an argument used to support corporate social responsibility (CSR)?
CSR can be profitable undertaking
A business unit that usually generates more than it needs to maintain its market share is called a(n)_____ in the portfolio matrix.
Cash Cow
Tide laundry detergent is the market leader, but overall industry growth is low in this market. Tide would be classified as a _____ in the portfolio matrix.
Cash cow
The _____ Act strengthened the Clayton Act to prevent corporate acquisitions that reduce competition.
Celler-Kefauver Antimerger
Minor League Baseball (MiLB) suffers from sluggish attendance. To attract more fans to MiLB games, owners oftern resort to gimmicks--free hot dog nights, events designed to get into the Guinness World Records, and celebrity visits. Since baseball fans are seldom asked what would make them want to attend more games, this suggests that most MiLB teams do not have a(n) ______ orientation
Community
______ provides the mechanisms for evaluating marketing results in light of the plan's objectives and for correcting actions that do not help the organization reach those objectives within the budget guidelines.
Control
Which level of ethical development moves from an egocentric viewpoint toward the expectations of society?
Conventional morality
After hearing his company criticized for its failure to respond to consumer needs, the CEO of a bank realized that his company needs to adhere to the marketing concept and implement a marketing oriented strategy. Which of the following actions would be the best approach to achieving this goal?
Creating cross-functional teams and instructing them to focus on creating greater customer value
A firm that wants to develop a deeper understanding of its customers may optimize profitability, revenue, and customer satisfaction by focusing on highly defined and precise customer groups. This is:
Customer Relationship Management
When customer expectations regarding product quality, service quality, and value-based price are met or exceeded, _____ is created.
Customer Satisfaction
Xerox emphasizes ____ by replacing at its own expense any dissatisfied customer's equipment within a period of three years after purchase.
Customer Satisfaction
_____ is defined as the relationship between benefits and the sacrifice necessary to obtain those benefits.
Customer Value
Merissa Champlain designs and sells clothes for young working women. Her marketing managers recently told her that she'll be in financial trouble unless she starts designing clothes suited to GenYers. Why is this?
Demographically, Gen Yers are an extremely large group of consumers.
Orange growers in Florida have lost millions of dollars due to hurricane. As a result, some growers have decided to bulldoze their orange groves and put in freshwater lakes for raising shrimp, a product that has a strong popularity and is more weather resistant. Former orange growers who are now raising shrimp are pursuing a _____ strategy.
Diversification
The company that manufactures Molson beer, which is typically consumed by males, launched an alcoholic lemonade beverage to attract more females. This launch of a new product to attract a new market for Molson's products is an illustrate of a ____ strategy.
Diversification
____ is the strategy of increasing sales by introducing new products into new markets.
Diversification
A problem facing the timber industry is the absence of any effective way to prove that rain forest timer has been legally harvested. In places like Indonesia, as much as 80% of timber available for sale is illegally cut. Companies like The Home Depot do not want to sell timber from illegally logged forests even though the demand is great for timber from rain forests. Which of the following conditions required for an exchange to occur is missing, when a company tries to sell illegally acquired logs to The Home Depot?
Each party believes it is appropriate to deal with the other party
At the most basic level, a firm must be profitable. What level of the pyramid of corporate social responsibility is this?
Economic
China's new 5 percent tax on disposable wooden chopsticks, reflecting concerns about deforestation, has been praised by environmentalists. The move is hitting hard at the Japanese, who consume 25 billion sets of wooden chopsticks annually. Almost all of the chopsticks used in Japan come from China. The price of wooden chopsticks in Japan has increased by almost 50%. The price increase influences which factor of the external environment of restaurant owners in Japan?
Economic
One of the favorite foods in Thailand is shark in fin soup. A San Francisco-based organization claimed the soup made by its leading producer contained mercury poison, yet the leading producer of shark fin soup wanted to continue selling the soup because it believes it has a responsibility to its investors to be profitable. In terms of the pyramid of corporate social responsibility, this indicates that the soup manufacturer was operating at a(n) ______ responsibility.
Economic
Recession, inflation, and consumers' incomes are the _____ factors of greatest concern to most marketers.
Economic
_____ is the primary determinant of a person's earning potential.
Education
_____ gives customers the feeling their concerns are being addressed and at the same time gives employees the feeling their expertise matters to management
Empowerment
_____ is defined as the collection and interpretation of information about forces, events, and relationships that may affect the organization.
Environmental scanning
At what level of the pyramid of corporate social responsibility will firms do what is right, just, and fair?
Ethical
_____ refers to the moral principles or values that generally govern the conduct of an individual or a group.
Ethics
Which of the following statements does not describe ethics?
Ethics occur naturally and can not be taught
Kellogg's is offering free DVDs to consumers who collect five official Collection certificates from the back panels of specially marked packages of Kellogg's cereals and then mail them with the official order form. Within 90 days, these consumers will receive the movie of their choice. A9n) _____ will occur when a movie fan mails in his or certificates for a movie.
Exchange
Which of the following occurs when people give up something in order to receive something they would rather have?
Exchange
______ show costs declining at a predictable rate as experience with a product increases.
Experience curves
A baby boomer's average life expectancy is at an all-time high of 79.2 years.
False
A firm's mission statement should answer the question, "What products do we produce best?"
False
A market penetration strategy entails the creation of new products for current customers
False
After Hal Li purchased and installed a wood-burning stove to heat his family home, the stove caught fire and damaged much of the house. He believes the stove had inadequate insertion. Li should voice his concerns to the Federal Trade Commission.
False
As marketers gain more experience in marketing a product, costs tend to decrease, which is an example of the maturity effect.
False
Because social responsibility has proven to have a limited return on investment, the number of business opting to act socially responsible is declining.
False
Berkshire Hathaway Inc., a large property insurance company, owns a large chain of jewelry stores and has recently purchased Russell Corporation, a manufacturer of sporting goods. Berkshire Hathaway uses a market penetration strategy.
False
Champion Lyte is a sugar-free sports drink designed to replenish electrolytes lost during activity or illness. Since the product was designed primarily for diabetics, healthcare professionals who treat diabetics are primary target market.
False
Customer value is the relationship between company profits and company costs.
False
In the early 1920s, Ford promised its customers any color vehicle they wanted as long as it was black. Ford's management assumed anyone buying a car would accept the color black, so it made products affordable by offering only one variety in large quantities. Ford is an example of a market-oriented firm.
False
Marketers can control the external environment in which their organizations operate.
False
Most people have not applied ethical standards in their everyday lives.
False
On average, african americans are nearly eight years older than all other American consumers.
False
Personnel in sales-oriented firms tend to be "outward looking," focusing on selling what the market wants.
False
Pew Research Center's 2012 American Values Survey found that political party affiliation is the least impactful fissure in American Society
False
Strategic planning is most effective when managers view it as an annual exercise.
False
Sustainability is the development and marketing of products designed to minimize negative effects on the physical environment or to improve the environment.
False
Sustainability refers to a business's concern for society's welfare.
False
The company's objective is to increase sales next year. This is an example of a well-stated objective.
False
The development of a target market strategy begins with a marketing audit.
False
The foundation for the pyramid of corporate social responsibility is philanthropic responsibility.
False
The four Ps of the marketing mix are product, planning, promotion, and price.
False
The manufacturer of Macho brand martial arts products was implementing a strategic plan when it sponsored a local karate tournament for teenagers.
False
The portfolio mix is a tool for allocating resources among products or strategic business units on the basis of relative market share and degree of innovation.
False
The practice of choosing goods and services that meet one's diverse needs and interests rather than conforming to a single, traditional lifestyle is known as aggregate lifestyles.
False
The way to achieve customer satisfaction and value is to offer the lowest price.
False
To be useful, marketing objectives should be realistic, measurable, time specific, and based on sales.
False
Today's business ethics are difficult to learn because they are different from those used outside the business world.
False
Typically the development of the marketing mix starts with determining the promotion for a product.
False
Unfortunately, most business people have not progressed beyond the self-centered and manipulative actions of pre conventional morality.
False
Unlike a production-orientated firm, a firm embracing a sales orientation focuses on customer wants and needs so it can develop the best product at the lowest cost that will require very little selling effort.
False
When the internet auction company on eBay opened a version of the company called eBay France for the French market, it was an example of market penetration.
False
When writing codes of ethics, businesses must ensure their codes deal with every possible situation.
False
While many green products have practical beliefs, none of them are readily apparent to consumers.
False
While most marketing organizations rely on various forms of promotion to succeed, sales-oriented organizations make the most effective use of their entire marketing mix.
False
The USPS argues that its express service is comparable to what is offered by FedEx and that its prices are much lower. Yet, FedEx dominates with more than a 45% share of the express-delivery
FedEx is perceived as offering greater customer value
Which of the following represents the largest group of consumers in the U.S.?
Gen Y
Consumers born between 196 and 1978 form a group called:
Generation X
Which ethnic group prefers products from their native country?
Hispanic Americans
A company that specializes in planning and organizing large family reunions has hired you to identify a target ethnic market.
Hispanics
____ is a measure of the decrease in the value of money, expressed as the percentage reduction in value since the previous year.
Inflation
InBev bought Anheuser-Busch. How will this affect InBev's marketing mix?
It will affect all of InBev's marketing mix elements, either directly or indirectly
At which level of the pyramid of corporate social responsibility must a business "play by the rules"?
Legal
Which of the following is NOT a type of competitive advantage?
Management Structure
At the Container Store, every employee is trained to serve customers. Full-time salespeople receive 240 hours of training. The container store works to hire people who are self-motivated and have a passion for customer service. The container store has a ___ orientation.
Market
At the Lands' End Web site, a customer can chat online with customer service representatives while shopping. This live help allows the customer to have questions answered before placing an order. This focus on meeting customer needs illustrates a(n) _____ orientation.
Market
Best Buy has become the nation's largest specialty retailer by focusing on the customer's needs and wants. This philosophy is at the heart of a(n) _____ orientation.
Market
When a homeowner visited The Home Depot to buy what he thought ne needed to fix a leaking toilet, he gathered up materials totaling almost $70. On his way to checkout, an employee asked him what he was trying to fix. After some discussion, the employee convinced the homeowner that a $5.99 replacement part would fix the problem better than they materials he thought he needed and with less trouble. This sort of discussion between employees and customers is commonplace at The Home Depot and indicates the retail store has a(n) ___ orientation.
Market
Which marketing management philosophy assumes that a sale does not depend on an aggressive sales force but rather on a customer's decision to purchase a product?
Market
Which marketing management philosophy focuses on the question, "What do customers want and need?"
Market
Yard Whimzees, a Statesbora, Georgia, sign business, began by making wooden signs for residential use to announce births, anniversaries, and couch. The company then turned to the business market by making signs for businesses. Creating signs for a new market is an implementation of a ______ strategy.
Market Development
Which of the following is a type of strategic alternative that tries to increase market share among existing customers?
Market Penetration
______ is a strategy of increasing market share for present products in existing markets.
Market Penetration
In order to expand its sales into the U.S. market, BRL, an Australia-based winemaker, agreed to a merger with a U.S.-based wine distribution company. According to Ansoff's strategic opportunity matrix, BRL would be implementing a ______ strategy.
Market development
In the past, PajamaGram marketed pajamas only to women. Now the company offers pajamas for me and children. This is an example of a _____ strategy.
Market development
LVMH, a maker of luxury goods, has expanded its products offerings into China, Russia, India, and the Middle East. This exemplifies a _____ strategy.
Market development
_____ is a strategy that attempts to attract new customers to existing products.
Market development
A(n) ______ describes and estimates the size and sales potential of market segments of interest to the firm and assesses key competitors in these market segments.
Market opportunity analysis
Kraft foods created a magazine full of recipes and coupons for customers as well as a Web site with product and recipe information. The goal was to get current customers to purchase more of Kraft's products. These activities are representative of a _____ strategy.
Market penetration
____ is a set of activities used to implement a management orientation that stresses customer satisfaction
Marketing
The ____ is the unique blend of product, place, promotion, and pricing strategies designed to produce mutually satisfying exchanges with a target market.
Marketing Mix
Le Feast is a catering company that has developed a marketing plan designed to make it the largest caterer in the country within the next two decades. Which of the following will be useful to the company to evaluate how successful its efforts have been at the end of the first decade?
Marketing audit
All of the following are good reasons to study marketing EXCEPT:
Marketing creates consumer needs
_____ occurs when a business is defined in terms of goods and services rather than in terms of the benefits customers seek.
Marketing myopia
A _____ is defined as a statement of what is to be accomplished through marketing activities.
Marketing objective
Which of the following statements about Generation Y is true?
Members are tech-savy and expect brands to be on social media
The majority of Hispanic Americans are of ____ descent.
Mexican
The _____ answers the question, "What business are we in, and where are we going?"
Mission statement
_____ are the rules people develop as a result of cultural values and norms.
Morals
Which of the following statements about American teenagers is correct?
Most would rather shop in a store than online
Which of the following statements about social media is true?
People ages 55 to 64 spend more than 11 hours on social media per month.
Golden Valley Microwave Foods,Inc. is the manufacturer of ACT II popcorn. In its early years, the company had trouble financing the development and marketing of products for the microwave, so it chose to participate in a financial arrangement in which it agreed that it would not sell ACT II popcorn in supermarkets or grocery stores. Which element of the marketing mix was most influenced by this arrangement?
Place
Making sure products are available when and where customers want them is the job of which element of the marketing mix?
Place strategies
_____ is the process of anticipating events and determining strategies to achieve organizational objectives.
Planning
The ______ is a tool for allocating resources among products or strategic business units on the basis of relative market share and market growth rate.
Portfolio matrix.
Barry collects antique watches and has decided to sell a few of them on eBay. Some of the watches he wants to sell are rare and valuable. What condition is necessary for an exchange to occur between Barry and a buyer?
Potential buyers must be able to see the watch and understand its qualities.
Which of the following factors will influence ethical decision making and judgments?
Potential magnitude of the consequences
Ethical development can be thought as having three levels. The most basic, childlike level is the _____ stage.
Preconventional morality
Which of the marketing mix elements is often the most flexible
Pricing
Before Heinz sold its 9-lives brand cat food unit, the company identified the product as having a low market share in a high-growth market. The portfolio matrix would classify 9-lives as a(n)
Problem child
Which of the following represents a business unit that shows rapid growth but poor profit margins?
Problem child
Lands' End guarantees its products for as long as you own them, The company would seem most concerned with which element of the marketing mix?
Product
Ocean Spray's development of Craisins sweetened dried cranberries to compete against raisins most directly affected the _______ element of the company's marketing mix.
Product
The marketing of new organic cotton tee-shirts for Life is good's existing customers would be an example of a _____ strategy.
Product Development
Clay Market began as a retailer of terra-cotta pots and garden figures imported from Turkey and Mexico, It has since added Turkish rugs and fabrics, leather-trimmed purses, and a line of women's clothes for its customers. These activities are indicative of a _____ strategy.
Product development
____ is a marketing strategy that creates new products for present markets.
Product development
A company that sets its goals and strategies based on what its current equipment can produce, what products engineering can design, and what the company itself can do best, has a(n) _____ orientation.
Production
A firm that adopts a(n) ____ orientation to marketing will fail to consider whether what the firm produces most efficiently also meets the needs of the marketplace.e
Production
A newspaper ad for a hospital that states, "We have the most modern delivery rooms and state-of-the art medical equipment," is an indication of which marketing management philosophy?
Production
Firms with a ___ orientation focus on the internal capabilities of the firm rather that on the desires and needs of the marketplace.
Production
Indonesian logging companies harvest the rain forests for timber and assume that a market exists for thei products. The typical Indonesian logging company has a(n) ___ orientation.
Production
Researchers at PPG Industries spent considerable time, effort, and money developing a bluish windshield that would let in filtered sunlight but block out the heat. Little market research was done, but the scientists were convinced this new product would be significantly better than existing windshields even though it was more expensive and of a different color that the current models on the market. This scenario suggests PPG most likely has a(n) ___ orientation.
Production
Toyota found that consumers wanted cars to last longer and be more environmentally friendly. GM, however, enjoyed being the top U.S. car producer and focused more on how many cars and trucks it could manufacture, not on what customers wanted from a vehicle. GM had more of a(n)______ orientation.
Production
Which marketing management philosophy focuses on the question, "What can we make or do best?"
Production
All of the following are characteristics of a good objective EXCEPT:
Profitable
SoBe nutritional beverages uses twin lizards on every bottle of its products and in all of its promotion efforts. It even has its own Team Lizard made up of skateboarders, mountain bike riders, and in-line skaters that it sponsors. The lizard is used to remind consumers of the product and its benefits. Which of the four Ps does this represent?
Promotion
_____ is the primary tool used by a sales-oriented organization to achieve its corporate goals.
Promotion
_____ is measured by comparing income to the relative cost of a set standard of goods and services in different geographic areas.
Purchasing power
_____ is a strategy that focuses on keeping and improving relationships with current customers.
Relationship marketing
A cold medicine manufacturer offers a promotion allowance to retailers for setting up displays featuring its products. Retailers are also offered promotional allowances on purchases of the products. Which legislation requires the manufacturer to make these promotion allowances available to all retailers on a proportionately equal basis?
Robinson-Patman Act
Colorado silversmith creates and markets silver and turquoise jewelry, which it sells to retailers in the western United States. The company's management believes its retail customers will stock more jewelry if its salespeople use aggressive marketing techniques, so the company provides strong incentives for salespeople and promotional allowances to resellers to get distribution for its jewelry. In other words, the company has a ______ orientation
Sales
Fujifilm computer products has improved the efficiency and productivity of its plant, which manufactures printing technology. For the new fiscal year, the company projects a production increase of 25%. It has instructed its sales force to aggressively distribute and promote its printers. The CEO is sure the market will absorb more product if the sales force is determined and assertive. Fujifilm appears to have a _____ orientation.
Sales
The ______ orientation assumes people will buy more if aggressive selling techniques are used.
Sales
Which marketing management philosophy focuses on the question, "How can we sell more aggressively?"
Sales
Which marketing orientation assumes people will buy more goods and services if aggressive marketing techniques are used?
Sales
Which marketing management philosophy is often adopted by organizations that sell unsought products such as life insurance, retirement plans, and preplanned funeral services?
Sales Orientation
Which of the following is the customers' evaluation of a good or service in terms of whether that good or service has met their needs and expectations?
Satisfaction
Zipcar is a car rental service found in many metropolitan areas. It targets people who take mass transit or carpool to work but who occasionally need a car to run errands, visit the doctor, or check on a sick child. Zipcar is one of a few companies currently providing cars that can be rented by the hour. Zipcar has created a(n) _______ advantage.
Service differentation competitive
A _____ is a study conducted by an organization to identify its internal strengths and weaknesses and also examine external opportunities and threats.
Situation analysis
In many African nations, people live on less than $5.00 per day. To grow here, Procter and Gamble (P&G) must persuade these people to purchase items they have lived without forever. As a result, P&G sells one-ounce packages of Ariel laundry soap for as little as 10 cents in this market. P&G responded to _____ factors when it developed these small packages.
Social
Quaker oats and other cereal manufacturers have developed what they cal "breakfast-with-one-hand" products--no mess breakfast bars and drinks that can be consumed while commuting. The popularity of on-the-go food is largely the result of changes in _____ factors.
Social
_____ factors are environmental factors that include our attitudes, values, and lifestyles.
Social
many people in the U.S. chose to drink light beer because they value thin and fit bodies. In Europe, light beers have had little success because flavor is valued more highly. For international beer manufacturers, this difference illustrates how _____ influence(s) marketing.
Social factors
Life is Good developed the "Good Krma" line of environmentally friendly 100% organic cotton apparel. The production of the Good Karma line is consistent with a _______ orientation.
Societal Marketing
Life is Good no longer encloses its apparel in individual poly bags when shipping to customers because the management feels it harms the environment. This is an example of a ______ orientation.
Societal Marketing
Which marketing management philosophy focuses on the question, "what do customers want and need, and how can we benefit society?"
Societal Marketing
Russell Athletic, which part of Berkshire Hathaway, Inc. Is a market leader in sports apparel, an industry that is growing rapidly. Russell Athletic is an example of a(n) _______ according to the portfolio matrix.
Star
Which of the following categories in the portfolio matrix is a market leader and growing fast?
Star
The SBU acronym refers to:
Strategic Business Units
Heinz has announced that they plan to grow the company through an accelerated push into emerging markets such as China, Indonesia, and India in the next 10 years. This is an example of:
Strategic Planning
____ is the managerial process of creating and maintaining a fit between the organization's objectives and resources and the evolving market opportunities.
Strategic Planning
Until spun off in 2007, Kraft was part of Altria Group Inc. Kraft had its own management team, mission statement, and target markets different from Altria. Kraft was a _______ of Altria.
Strategic business unit
Yildiz Holding of Turkey purchased Godiva Chocolates from Campbell's Soup Company. Campbell's sold one of its:
Strategic business units
What is the fundamental objective of most businesses?
Survival, profits, and growth
_____ is the idea that socially responsible companies will out perform their peers by focusing on the world's social problems and viewing them as opportunities to build profit and help the world at the same time.
Sustainability
Which of the following statements about the theory of sustainability is true?
Sustainability is the idea that socially responsible companies will out perform their peers when they focus on the world's problems as marketing opportunities.
An advantage that cannot be copied by the competition is called a(n) _____ competitive advantage.
Sustainable
Patents on prescription medications give pharmaceutical companies that own the patents a(n) ____ for 17 years until the patent expires.
Sustainable competitive advantage
A(n) _____ is a defined group that managers feel is most likely to buy a firm's product.
Target Market
Which of the following statements best describes the typical target market?
Target markets change over time as consumers drop in or out of the market, and as tastes change.
____ is the collaborative efforts of people to achieve common objectives.
Teamwork
In the future, electrical power may come from quantum nucleonics, a form of nuclear power that produces no residual radiation. The ability to use this form of power will require equipment adaptations, but it will solve the world's need for clean and efficient power. When quantum nucleonics is developed, it will be an example of how ____ factors can affect an organization.
Technological
Which of the following statements about marketing audits is true?
The main purpose of the marketing audit is to develop a full profile of a company's marketing effort.
Which of the following statements about the societal orientation is FALSE?
The majority of consumers support environmentally friendly companies and willingly paying more for these products.
What do self-sufficiency, upward mobility, work ethic, and conformity have in common?
These are three of the core values that influence lifestyles in the U.S.
3D Systems is a company that uses computers to generate new product prototypes. It has generated loyal business clients by providing the best customer support in the industry. The company also provides direct sales consultations that give its salespeople intimate knowledge about what exactly its customers want. This partnership between 3D Systems and its customers is relationship marketing.
True
A code of ethics can be an effective internal control on behavior, which is more desirable than external controls such as government regulation.
True
A competitive advantage is some unique aspect of a firm;s offering, or of the firm itself, that causes target customers to patronize the firm rather than its competition.
True
A diversification strategy entails increasing sales by introducing new products into new markets.
True
A local grocer recently began grouping its customers into specific groups based on what they bought and when they shopped. The grocer then began to schedule shipments of specific items based on these customer segments and to offer different promotions to different shopper groups. This is an example of CRM.
True
A marketing audit helps management allocate marketing resources efficiently.
True
A production cost analysis could be a part of a company's SWOT analysis.
True
According to the American Marketing Association, marketing is the activity, set of intuitions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.
True
An exchange cannot take place unless each party in the exchange has something that the other party values.
True
Companies use environmental management when they implement strategies that attempt to shape the external environment within which they operate.
True
Demography is the study of people's vital statistics such as age and location.
True
Developing a cost competitive advantage can enable a firm to deliver superior customer value.
True
Environmental scanning entails the collection and analysis of information about factors that may affect the organization as well as the identification of market opportunities and threats.
True
Environmental sustainability is an important component of the sustainability philosophy.
True
Ethical questions range from narrowly defined issues to broader philosophical, social questions.
True
Generation Y was the hardest hit by the great recession.
True
Increasingly well informed customers have shifted the power from manufacturers and retailers to consumers.
True
Marketers need a thorough understanding of the laws established by the federal government, state governments, and regulatory agencies.
True
Marketing is important to business, so marketing should be part of the job of everyone in the organization, not just those in marketing
True
Marketing strategy involves the activities of selecting and describing one or more target markets and developing and maintaining a marketing mix that will produce mutually satisfying exchanges with target markets.
True
Morals are rules people develop as a result of cultural values and norms.
True
Niche competitive advantages are quite common.
True
On average, just over $156 is spent on by every American teen each week.
True
Retailers who give their sales clerks the authority to handle customer complaints without having to get approval from a supervisor are using empowerment.
True
Salespeople who work for market-oriented organizations are generally perceived by their customers as problem solvers and important links to supply sources and new products.
True
Sara Lee Industries spent considerable money and time developing a crustless bread. Prior to the introduction, the company had not conducted market research among its customers, but it was confident that its science and technology department had produced a successful new product. Based on this example, Sara Lee is a good example of a production-oriented company.
True
Social change is perhaps the most difficult external variable for marketing managers to forecast, influence, or integrate into marketing plans.
True
The Home Depot's purchase of Hughes Supply Company allows it to better meet the needs of its current business customers. This is an example of product development.
True
The focus of a production-oriented firm is on what it can make or do best.
True
The greater the number of persons affected by a negative outcome, the more likely it is that marketers will recognize a problem as unethical.
True
The increase in social media usage has dramatically changed marketing strategies and how companies interact with target markets
True
The marketing concept states that the social and economic justification for an organization's existence is the satisfaction of customers' wants and needs while meeting organizational objectives.
True
The marketing plan is a written document that acts as a guidebook of marketing activities for the marketing manager.
True
The most critical element for successful strategic planning is top management's support and participation.
True
The societal marketing concept considers society's long-term best interests along with the satisfaction of customers' wants and needs.
True
The ultimate goal of most market-oriented firms is profitability that results from satisfying the wants and needs of its consumers
True
Top managers who behave ethically can influence others in an organization to behave ethically.
True
When a florist shop begins to sell burial caskets to its customers, it is engaged in product development.
True
Riot Media is a media and toy company that capitalizes on the "gross-out" humor enjoyed by boys ages 8-12. In other words, it targets:
Tweens
Which of the following is NOT a demographic characteristic of a population?
Values
Market penetration occurs whenL
Yoplait sends yogurt coupons to its existing customers
All of the following statements about the creation of a code of ethics are true EXCEPT:
a code guarantees ethical behavior among a firm's employees.
Everyone knows the brand name Kleenex. Kleenex is what many consumers think of when they think of tissues. This widely recognized brand name is a source of:
a product differentiation competitive advantage
A company that wants to implement a market orientation would need to:
a. do research on its customers, competitors, and markets b. determine how to deliver superior customer value c. establish and maintain mutually satisfying relationships with customers d. implement actions that provide value to customers.
As part of instituting an empowerment program, a marketing director should:
allow non-management employees to resolve problems on their own without prior approval from their immediate supervisors
The group of people in the United States who were born between 1946 and 1964 are known as:
baby boomers
Juan is a marketing professor researching consumer decision-making processes. Specifically, he is examining if including a picture in a print advertisement is more effective than not including a picture in influencing readers' attitude toward the advertisement and brand advertised. He is not researching any specific brand, but rather he is interested in testing Dual Coding theory that predicts that pictures will have a more positive impact on attitudes. Juan is conducting ____ research.
basic
The two types of research are:
basic and applied
All of the following are sources of a cost competitive advantage EXCEPT:
break-even analysis
Corporate social responsibility is defined as the:
business's concern for society's welfare
Like many other professional organizations and businesses, the American Marketing Association has developed a formal, written guideline to help its members make better ethical decisions. This document is called a:
code of ethics
Land O'Lakes makes a light butter with canola oil that has 60 percent less cholesterol and 50 percent less fat and calories than butter. This marketing gives the product a:
competitive advantage
The set of unique features of a company and its products that are perceived by the target market as significant and superior to the competition is known as a(n):
competitive advantage
A(n)_____ is the practice of choosing goods and services that meet one's diverse needs and interests rather than conforming to a single, traditional lifestyle.
component lifestyle
Lee Siracca owns two horses, brews his own beer, participates in the civic arts commission, enjoys talk radio, hikes on wilderness trails, and competes in rodeos. All of these diverse needs and interests influence his choices of the goods and services he buys. Lee has a:
component lifestyle
Lance is a 30-year old, single professional who enjoys hiking, college sports, and poetry. He lives with his girlfriend but does not have plans to get married in the near future. He leads a life much different from his father, who married right after high school, had children, and worked for the same company his entire career. More and more in the U.S. consumers like Lance are enjoying _____, piecing together a variety of interests, products, and services instead of conforming to traditional stereotypes.
component lifestyles
An international company that needs to develop a way to compare its actual marketing results with planned results must engage in:
control
Marketing plans should be written to do all of the following EXCEPT:
control the dements of the external marketing environment
A strategic business unit:
controls its business independent of other SBUs in the organization.
In the ______ stage of ethical development, loyalty and obedience to the organization or to society become paramount.
conventional morality
For every home built by Habitat for Humanity, Whirlpoos Corporation has given and continues to give free kitchen appliances to the deserving family. This donation of appliances is an example of how companies assume their:
corporate social responsibility
NSTAR Gas and Electric Company in Boston provides continuing financial support for an injury prevention program run by the Children's Hospital Boston. This funding is an example of:
corporate social responsibility
_____ is the concern of business for the long-range welfare of both the company and its relationships to the society within which it operates.
corporate social responsibility
Walmart realizes a ____ using its relationships with suppliers to give customers low prices and good customer service.
cost competitive advantage
The pyramid of corporate social responsibilities contains all of the following components EXCEPT:
cultural responsibilities
Ninety-Six percent of USAA home insurance policy holders report that USAA representatives meet their commitment in calling back customers quickly about claims. The most likely result of USAA's efforts is:
customer satisfaction
One of the reasons given for the decline of the passenger rail industry in the U.S. is that the industry defined its mission as trains and not as transportation sources. The railroad industry failed to:
define its mission in terms if the benefits its customers seek
A firm with a production orientation is most likely to survive if:
demand for the product it produces exceeds supply
The study of people's vital statistics, such as age, race and ethnicity, and location, is called:
demography
Zimmer-Centerpulse is the world's largest producer of replacement hips and knees for orthopedic surgery. They are particulary interested in marketing in the southwestern U.S., where a large aging population lives. Which are external environmental element most directly explains its continued growth?
demography
The typical starting point of ny firm's marketing mix is the:
development of the good or service to be sold.
Walker farms heard from many of its customers that they would like organic produce. As a result, Walker Farms became a certified organic farm. Walker realized that while not all consumers were willing to pay the higher prices for organic produce, his customers wanted the organic produce. Walker realized:
different customer groups have different needs and wants
After-tax income is referred to as:
disposable income
The higher your ____, the higher your purchasing power:
disposable income
For the first several years it was available, Apple's iPhone could only be purchased through AT&T cell phone distributors and the Apple retail store. This limitation on the _____ element of its marketing mix supported the product's competitive advantage
distribution
In the portfolio matrix, a business unit that has a low growth potential and a small market share is called a(n):
dog
All of the following are necessary for exchange to occur EXCEPT:
each party signs a contract before exchange occurs
The four components of the pyramid of corporate social responsibility are:
economic, legal, ethical, and philanthropic responsibility
Some market-oriented firms give employees expanded authority to solve customer problems on the spot. This is known as:
empowerment
The Michigan State Legislature tried to pass a bill requiring concert promoters and venue operators to print parental warnings on tickets and advertisements for concerts and shows by performers whose recordings had content advisory labels. Promoters and venue operators prevented the passage of this bill, arguing that it would require them to make value judgments for which they were ill equipped. The promoters and operators engaged in:
environmental management
When a company engages in _____, it is implementing strategies that attempt to shape the external environment within which it operates.
environmental management
Basic research attempts to develop new or improved products
false
Rising incomes mean a higher standard of living.
false
The competitive environment of a business encompasses the number of competitors the firm must face, the relative size of these competitors, regulatory agencies, and the degree of interdependence within the industry.
false
The sherman act of 1890 establishes protection for trademarks.
false
an economic recession increases demand for products and services
false
The marketing concept involves:
focusing on customers' wants and needs so that the organization can distinguish its product (or products) from competitors' products.
A company that has a market orientation and adheres to the marketing concept does NOT:
fuel sales growth through the application of aggressive sales techniques.
The movement to develop and market products designed to minimize negative effects on the physical environment or to improve the environment is known as:
green marketing
All of the following are functions served by objectives EXCEPT:
guaranteeing market performance
Kendta teaches high school science. She is also a wine expert, a PTA president, and an accomplished sculptor. Her other interests include scrapbooking, gourmet cooking, and nascar. Marketers would categorize Kendra as:
having a component lifestyle
One of the fastest growing tween markets is:
home de'cor
_____ is the process that turns a marketing plan into action assignments and ensures that these assignments are executed in a way that accomplishes the plan's objectives
implementation
All of the following are taken into account in a cost of living index EXCEPT:
income
The growth of social media use has resulted in:
increased exchange of information
Strategic plans require:
long-term resource commitment
Heinz is introducing 400 new products in the next 2 years. To know which markets to reach, Heinz should first perform a:
market opportunity analysis
A planning manager visiting a company's health and beauty aids division discovers the division has no effective method for allocating resources, nor for evaluating actual results against planned results. His suggestion to the division would likely be to prepare a:
marketing audit
By defining its business as "printing books" instead of "empowering imaginations," a children's book publishing company would more than likely experience:
marketing myopia
A written document that acts as a guidebook of marketing activities for the marketing manager is known as the
marketing plan
All of the following are categories used in the Boston Consulting Group's portfolio matrix EXCEPT:
meat eaters
All of the following are basic strategies resulting from a portfolio analysis EXCEPT:
milk
A statement of the firm's business based on a careful analysis of benefits sought by present and potential customers and an analysis of existing and anticipated environmental conditions is known as a(n):
mission statement
The external environment:
must be continually monitored by marketing managers
Yuengling is the oldest brewery in the U.S. It was founded in 1827 in a time when small breweries dotted this nation. For many years, the brewery only sold in a ten-state area on the Eastern Seaboard. For over 170 years, this strategy gave the brewery a:
niche competitive advantage
Jiffy Mixes does not do any type of traditional advertising or use fancy packaging in marketing its products. The company stores its own wheat and makes its own flour and little blue boxes. Jiffy is an example of a low-cost strategy based on:
no-frills goods and services
Marketers interested in offering customer value can:
offer organization-wide commitment to service and after-the-sale support
The fact that many people believe that businesses should focus on making a profit and leave social and environmental issues to nonprofit organization is...
one of the arguments against social responsibility
According to the text, the 45-year-old magazine, Essence Magazine, reaches _____ of all black females aged 18-49.
one third
Smucker's purchased Folgers Coffee in 2008. The option to buy Folgers represented a(n) ______ to smuckers
opportunity
At what level of the pyramid of corporate social responsibility will a company be a good corporate citizen?
philanthropic
All of the following are common reasons why companies fail to achieve a marketing objective EXCEPT:
plan not formalized
laws and regulations of various governments and their ongoing development and change are an example of ____ factors that are part of the external environment of all organizations.
political and legal
All of the following are elements of the marketing plan EXCEPT:
portfolio analysis
Ruthanne ross is a sales manager for Pampered Chef, a company that sells kitchen tools and other aids for cooking through party plans. She is very concerned about making sure her salespeople understand the importance of treating each customer fairly and developing long-term relationships with them. She asks that before a sale is made, the salesperson should make sure customers can afford the items and are not buying due to social pressures. Ross is most likely at the ____ stage of ethical development.
postconventional morality
the _____ stage of ethical development represents the morality of the mature adult.
postconventional morality
Hallie is a calculating, self-centered salesperson. She never engages in relationship marketing. She looks on any sales situation as a "win-lose" situation, and she believes any legal method she can use is justified when she wins. Hallie is most likely at the ___ stage.
preconventional morality
In general, Hispanic Americans:
prefer products from their native countries
Apple,Inc. is now offering the iPhone 4s for free on contract. This new strategy reflects a change in the ____
price
John R. Harland Company is best known for printing checks. Its Financial Solutions division develops software for mortgage companies and is currently producing much less than the desired level of profitability in a high-growth industry. According to the portfolio matrix, Harland would label its financial solution division as a(n):
problem child
Kraft introduced Philadelphia Readt-To-Eat Cheesecake Filling for those who do not have time to make cheesecake in the traditional manner. This is an example of a _____ strategy
product development
All of the following are strategic alternatives that match products with markets EXCEPT:
product penetration
All of the following are marketing management philosophies EXCEPT:
profitability orientation
TUFF SHED,Inc. is one of the leading suppliers of installed storage buildings and garages in the United States. TUFF SHED mandates that sales, management, and construction teams work together to anticipate and eliminate potential problems. They make sure customers get the right buildings for their needs, and they are all built well and in a timely manner. By using teamwork, TUFF SHED:
provides its customer with a high level of satisfaction.
Consider a small southern town where more than half the residents are African American and the rest are white. A successful marketing campaign for this community would include:
radio advertising
All of the following are factors influencing ethical decision making and judgments EXCEPT:
rate of prosecution
A period of economic activity characterized by negative growth, which reduces demand for goods and services, is called a(n):
recession
Kellogg's gives consumers the chance to receive a free DVD. Consumers who buy five boxes of specially marked cereal can cut out the coupons and mail in their completed official form to get a free DVD. Kellogg's is engaging in:
relationship marketing
One way to identify the orientation of a firm is to examine its primary goal. If a firm seeks to achieve profitability through sales volume, it would probably be:
sales-oriented
Market-oriented firms primarily focus their efforts upon:
satisfying the wants and needs of their customers
The marketing concept stresses that the social and economic justification for an organization's existence is the:
simultaneously meeting organization objectives
Consumer's concern for health issues affects the way food is marketed. For example, marketers must now list the number of grams of transfat on a product's nutrition label because it has recently come to light that this type of fat is harmful. Consumers' concern for health issues is a(n) _____ factor.
social
If you were to ask Americans what they most desire to make their lives easier, most will want more time. This feeling that there are not enough hours in a day is an example of a(n) ______ factor that has strongly influenced the marketing environment.
social
Which of the following is the most difficult for marketing managers to forecast, influence, on integrate into marketing plans?
social change
Shark fin soup is a favorite Thai food. When a San Fran-based organization claimed that the leading producer's soup contained mercury poison, its sales plummeted. The popularity of this soup in Thailand represents a(n)____ factor, while Thailand;s kax enforcement of environmental protection and consumer protection regulations are a(n) _____ factor.
social; political and legal
Most companies become sensitized to community issues after they've done enough damage to draw the locals anger. Dofasco, Inc., a highly successful steel company in Ontario, tries to get ahead of business and community issues by annually bringing together representatives from the local area and community-wide meeting indicates Dofasco has a ______ orientation
societal marketing
Chrysler has a financial unit that is responsible for vehicle leases to consumers. It has a distinct mission, control over its resources, and plans independent of the other divisions of Chrysler. This financial unit is an example of a(n):
strategic business unit
A popular technique for managing a large organization with different technologies and market is to divide it into:
strategic business units
Subgroups of a single business or collection of related businesses within a larger organization are referred to as:
strategic business units
Since gas prices have soared and consumers have cut back on their spending on new trucks and SUVs, Ford Motor Corp. is transforming several of its plants to create small cars. Ford has engaged in:
strategic planning
With hospitals nationwide facing budget cuts and slimmer profit margins, Delkalb County's Medical Center decided to cash in on one of the most consistently profitable services--delivering babies. It initiated a three-year project to build a $55 million state-of-the-art women's center with 18 labor and delivery suites. When the hospital decided to commit its resources to obstetrics, it was engaging in:
strategic planning
The SWOT acronym refers to a firm's analysis of its:
strengths, weaknesses, opportunities, and threats
One approach to developing a personal set of ethics is to:
stress the importance of rules
iTunes has a(n) ______, as they have exclusive agreements with some of the most sought after music corporations that other digital music stores do not have,
sustainable competitive advantage
Coloriffic recently began competing with Crayola coloring products. At the beginning of the school year, the ______
target market
The publisher of Ebony magazine has forged an alliance with Dan River, Inc. to create luxury bed and bath products for the newly developed Ebony Home brand. Ebony Home will use the publisher's long history and expertise to market to the African American market. The African American market is the _____ for the Ebony Home brand.
target market
In order to combat U.S. corporations use of illegal payments and bribes in international business dealings, Congress enacted:
the Foreign Corrupt Practices Act (FCPA)
Which of the following statements about a typical sales-oriented business is TRUE?
the company invests the majority of its resources in promoting its products and services
Marketing managers cannot control _____, but the can sometimes influence it.
the external environment
The sales and market orientations differ on all of the following characteristics EXCEPT:
the firm's performance
Which of the following events has had the greatest effect on opinion sharing?
the increased use of social networking by people and businesses
The focus of on organization's mission statement should be on:
the market it wishes to serve.
SAP, the world's largest business software company, has pledged to put the "customer at the center" of their universe. SAP has captured the idea of:
the marketing concept
All of the following are factors in the external environment affecting marketing EXCEPT:
the marketing mix
For an exchange to take place:
there must be at least two parties involved
If facebook were a country, it would be the world's ______ largest country.
third
A marketing audit is a(n):
thorough, systematic, periodic evaluation of the objectives, strategies, structure, and performance of the marketing organization.
Of the following, what is the most useful objective for Purina Cat food?
to increase sales of Purina brand cat food by 15% over 2010 sales of $300 million
By 2050, about one in three U.S. residents will be hispanic.
true
Inflation is a measure of the decrease in the value of money, expressed as the percentage reduction in value since the previous year.
true
Companies that rely on the marketing concept and that have implemented a market orientation strategy recognize that:
what the customer thinks he or she is buying is what is important