marketing 351 test 1
If Toby Roberts has an income of $30,000, pays $6,000 in rent, $1,200 in utilities, and $5,000 in taxes per year, his disposable income is
$25000
In today's market environment, you might pay $15 for a CD by your favorite musical artist. Approximately how much of that price goes to activities related to marketing (promotion, distribution, profit margins)?
$7.50
some purposes of a marketing plan?
1) Communicate internally with employees 2) Assign tasks and responsibilities for implementation 3) Specify the allocation of resources 4) Monitor the performance of a marketing strategy
Stratford Manufacturing is interested in total quality management and wants to learn more about its principles. Which elements will Stratford address in its investigation of TQM?
1) Improving customer satisfaction 2) Increasing employee participation 3) Strengthening supplier partnerships 4) Continuous product improvements
In managing customer relationships, the three primary ways profits can be obtained are by:
1) enhancing the profitability of existing customers 2) extending the duration of relationships with customers 3) obtaining new customers.
components of a marketing plan?
1) environmental analysis 2) marketing strategies 3) executive summary 4) marketing implementation
A marketing orientation is an organization-wide effort that includes all of the following activities:
1) researching customers' needs 2) generating marketing intelligence for use in the organization. 3) being responsive to customers' ever-changing wants and needs. 4) disseminating marketing intelligence across departments within the organization.
For most firms, the costs of marketing activities consume approximately what portion of the consumer's dollar?
1/2
Approximately what percentage of civilian workers in the United States performs marketing activities?
25-33%
Online sales account for about ____ percent of all retail sales in the U.S.
5
According to the text, the 80/20 rule suggests that
80 percent of profits come from 20 percent of customers.
The Internet has been used as a search engine to find information about a marketer's product or service by about ____ percent of adults in the U.S.
91
The Coca-Cola Company has recognized the significant increase in population diversity within the U.S. soft-drink market. Which one of the following best illustrates the companys integration of this knowledge into its marketing strategy?
Ads featuring Hispanic actors and Tejano music
Which of the following companies would probably be most interested in tracking discretionary income levels?
BMW
Which of the following would not be a customer cost considered in determination of product value?
Benefits received in the exchange for the products
Which of the following is not an example of the implementation of the marketing concept?
Burger King reduces the labor costs to produce its sausage-egg biscuits.
Which of the following agencies would most likely have jurisdiction over the problem with lead in the paint of childrens toys?
Consumer Product Safety Commission
Which of the following scenarios involves the distribution element of the marketing mix?
Deciding whether or not to have retail outlets in addition to a website
If the economy recovers in the future and enters the prosperity phase of the economic cycle, what actions should Specialty Motors take?
Develop more distribution outlets and increase promotion.
Identifying and analyzing a target market and developing a marketing mix to satisfy individuals in that market are essential elements of which of the following parts of strategic planning?
Developing a marketing strategy
Which of the following is an advantage that self-regulatory agencies such as the BBB and the NARB have over governmental laws and regulatory agencies?
Establishment and implementation are usually less expensive.
Which of the following companies is the best example of a service marketer?
FedEx
Which of the following best describes Nintendo's initial strategy when introducing the Wii?
Increase its sales of game consoles by broadening the appeal of gaming to all ages
Suppose that a customer has a complaint against Meyers Sporting Goods Stores. He files a complaint with the Better Business Bureau. What action could the BBB take against Meyers if the complaint was substantiated and Meyers did not change the offending practice?
Issue a warning to consumers through the local newspaper.
Why are marketers interested in consumers levels of disposable income?
It is a ready source of buying power.
Which of the following is a characteristic of a marketing objective?
It is consistent with both business-unit and corporate strategy.
Which is an example of the implementation of the marketing concept?
Jimmy Dean's Sausage introduces turkey sausage patties for a healthier alternative to pork.
A marketing manager decides what combination of variables is needed to satisfy customers' needs for a general type of product. What are the essential variables that the marketing manager combines?
Product, price, distribution, and promotion variables
The concept of "exchange" is fundamental to the definition of marketing. What is the best description of exchange?
Provision or transfer of goods, services, or ideas in return for something of value
Which of the following acts was enacted to prevent businesses from restraining trade and monopolizing markets?
Sherman Antitrust act
Which of the following statements best describes total quality management?
The coordination of efforts directed at improving customer satisfaction, increasing employee participation, forming and strengthening supplier partnerships, and facilitating continuous quality improvements
Which of the following best characterizes the forces of the marketing environment?
The forces change dramatically and quickly, and a change in one force is likely to affect the other forces.
Which of the following best describes the acceptance of the marketing concept by American organizations?
The marketing concept has yet to be fully accepted by all organizations.
Which of the following statements about marketing environment forces is not correct?
They fluctuate slowly and thereby create threats to a firm's marketing mix.
Which of the following firms would be most likely to have a monopoly for its competitive environment?
TimeWarner Cable tv
Which of the following would represent a brand competitor for Fords Escape Hybrid sport utility vehicle?
Toyota's Highlander Hybrid
Which of the following is the best example of utilizing technology to improve consumer relationships?
Waiters recording orders on handheld computers
Which one of the following statements by a company president best reflects the marketing concept?
We have organized our business to make certain that customers get what they want.
the marketing concept is __
a management philosophy
After determining that consumers had concerns about fat and carbohydrates, Sardino's Pizza began offering a low-fat, low-carb pizza product. The creation of this new product was the result of
a market opportunity
In response to the increase in demand for organic foods, Wegmans, Inc., a regional supermarket, recently created organic food departments within their large stores. The creation of these departments was a result of
a market opportunity
When Opryland Hotel wants to have at least 90 percent of its customers indicating they had a memorable and satisfying experience at the hotel, this is an example of
a marketing objective
The marketing concept is best defined as
a philosophy stating that an organization should try to satisfy customers' needs through a coordinated set of activities that allows the organization to achieve its goals.
High Gliding Air Academy is developing its marketing mix for the coming year. Its managers know that they must first select _________, which may be the most important decision they make in the planning process.
a target market
A strategic window is
a temporary period of optimum fit between the key requirements of a market and the particular capabilities of a firm competing in that market.
The marketing plan is
a written document detailing activities to be performed to implement and control marketing actions.
Which of the following is most likely to be an idea marketer?
abuse counselor
The marketing concept is a philosophy that states that an organization should try to satisfy customers' needs and also __
achieve the organization's goals.
The forces of the marketing environment primarily affect marketers in three ways: They influence customers by affecting their lifestyles and preferences for products; they determine whether or how a marketing manager can perform certain marketing activities; and they __
affect a marketing manager's decisions and actions by influencing buyers' reactions to the firm's marketing mix.
Customer relationship management is facilitated by gathering useful data from
all customer-contact points.
Which of the following is false with regard to customer lifetime value?
all customers have equal value to a firm
The marketing concept is a management philosophy that affects __
all efforts of the organization
marketing activities are used by __
all sizes of organizations including for-profit, nonprofit, and government agencies.
The fact that college enrollments have been increasing at a fast rate the past few years is an example of _____ and creates a _______ for EXperience Limited.
an environmental factor; marketing opportunity
The tobacco industry in the United States is dominated by three large companies. When any one of these companies changes its price on tobacco products, the other two companies quickly adjust their prices to match it. From these characteristics, the tobacco industry could best be described as
an oligopoly
When PepsiCo takes the information collected through research and attempts to assess and interpret what it means for its soft-drink marketing efforts, PepsiCo is engaged in environmental
analysis
Business decisions made in creating a marketing mix
are only as good as the organizations understanding of the needs of the target market.
Jason, a 17-year old high school student, wants to buy a pack of Marlboro Lights. He has the money to purchase them, but he is still not considered to be a market for the product due to his lack of _____ to buy.
authority
If Apple measured and evaluated the quality of its goods, services, and processes as compared with those of the best-performing companies in the computer industry, it would be employing
benchmarking
The term "______" describes measuring and evaluating a firms quality in products and processes against industry leaders.
benchmarking
A regular customer of Meyers Sporting Goods feels that some of its advertisements are deceptive. He responded to an ad for sale skateboards one hour after the store opened and found that none were left. Where should he file a complaint?
better business bureau
Jared Bledsoe hires a local landscape firm to plant trees and shrubs in his yard. The firm plants mostly dead plants but refuses to return Jared's money or replace the dead items. Jareds best course of action would be to contact the
better business bureau
By the turn of the twentieth century, the population of the United States had shifted to three large racial and ethnic groups. These groups are
blacks, whites, hispanics
The definition of marketing implies that ______ should receive benefits from exchange relationships.
both customers and businesses
For marketing implementation to be successful, the needs of _________ customers must be met.
both internal and external
Companies that market products with similar features, benefits, and prices to the same customer group are known as _________ competitors.
brand
Marketers primarily focus their environmental analysis on ____ competitors.
brand
___________ competitors are the most significant to marketers because buyers see the different products of these firms as direct substitutes for each other.
brand
The director of marketing for 3M tapes tells the rest of the management team, "When it comes to our transparent packaging tape unit, our strategy will be to use funds generated here to support our venture in the industrial bonding market." This strategy indicates that the packaging tape unit falls into which one of the following classifications?
cash cow
The Boston Consulting Group classifies products that have a dominant market share but low prospects for growth and that generate more cash than is required to maintain market share as
cash cows
At Mrs. Fills Cookie Co., top-level managers delegate very little authority to lower-level employees. Mrs. Fills is a(n) ___________ organization.
centralized
In a traditional organization, marketing decisions are likely to be
centralized at the top levels of the organization.
According to the textbook, a manager's duties in an environmental analysis include
checking information for accuracy, resolving inconsistencies, and assigning significance to the findings.
A __________ is created when a company matches its core competency to opportunities it has discovered in the marketplace.
competitive advantage
Microsofts marketing, technical skills, and continuing investment in improving its software systems give it a(n) ___________ because it makes computers easier to use.
competitive advantage
Southwests low fares, dependability, and its on-time flights represent its
competitive advantage
When marketers define their target market, they simultaneously establish a set of
competitors
All marketing mix decisions must have two characteristics: ___________ and ___________.
consistency; flexibility
Gucci Group, a marketer of high-fashion products, achieved a company turnaround by ensuring that its brand had the same image and proper display around the world. It also lowered prices on some items, like handbags, to be more competitive. This illustrates a company working to develop a marketing mix that is both _______ and _______.
consistent; flexible
The product variable of the marketing mix does not include:
consumer perception of the product price.
What is the most important factor in distinguishing disposable income from income?
consumer spending
__ is a diverse group of individuals and organizations attempting to protect the rights of consumers.
consumerism
A group of protesters carries signs encouraging people to boycott Joes Market, a small grocery store in an urban area. The protesters claim that Joes takes unfair advantage of elderly and minority consumers. This protest is part of what we see today as the
consumerism movement
Marketing managers can take each of the following corrective actions for reducing a discrepancy between established performance standards and actual performance except
coordinating a new step in performance analysis.
A __________ is something that an organization does extremely well and may give a company an advantage over its competition.
core competency
The reputation and well-known brand name of Rolex watches represents a ________ for Rolex.
core competency/market opportunity
___________ strategy determines the means for utilizing resources in the functional areas of marketing, production, finance, research and development, and human resources to achieve the organization's goals.
corporate
A firms unique symbols, personalities, and philosophies comprise its
corporate identity
Resource deployment and coordination of functional areas of business are determined by
corporate strategy
The public is becoming more aware of how marketers' activities affect the welfare of consumers and society. As a result, more firms are working to __
create a responsible approach to developing long-term relationships with customers and society.
A junior marketing executive at MegaGrain Cereals suggests increasing the package size and price of its best-selling brand without increasing the amount of cereal inside the box. Her superior warns that this might be a bad idea because MegaGrain's long-term survival, like most companies, depends on
creating and maintaining satisfying exchange relationships.
Marketing is the process of
creating, distributing, promoting, and pricing products to facilitate satisfying exchange relationships with customers and to develop and maintain favorable relationships with stakeholders in a dynamic environment.
The product variable of the marketing mix can include:
creation of brand names, development of product packaging, warranty issues, & repair services
Organizations that provide smoke-free environments or low-fat products are responding to changes in
cultural values
Electronic marketing has greatly improved the ability of marketers to target individual customers. As a result, many feel that marketings emphasis is shifting from share of market to share of
customer
the marketing mix is built all around the __
customer
Borders Books uses technology to help them identify specific customers, establish interactive dialogues with them to learn about their needs, and combine this information with their purchase histories to customize products to meet those needs. Borders Books is using the _____ approach.
customer relationship management
Long-term relationships with profitable customers is the key objective of
customer relationship management
Using information about customers to create marketing strategies that develop and sustain desirable long- term customer relationships is known as
customer relationship management
What focuses on using information about customers to create marketing strategies that develop and sustain desirable customer relationships?
customer relationship management
When managers at Logistics Pro are developing their strategic plan, they use a market orientation as a guide to ensure that ________ is an integral part of the process.
customer satisfaction
The focal point of all marketing activities is
customers
The Acme Corporation is expanding operations into countries outside the United States. To improve local managers responsiveness to local conditions, Acmes senior management has decided to delegate decision- making authority further down the chain of command. Acme is
decentralizing
Many health care companies are making adaptations to meet the needs of an aging population as the demand for medical services and products such as diabetes supplies increases. This change in marketing strategy is best explained by a change in
demographics
Consumer confidence is at a low during periods of
depression
The best approach for a company to take when monitoring its competitors is
developing a system for gathering ongoing information about competitors.
The income a consumer would use to purchase a Specialty Motors automobile is considered ___________ income.
discretionary
Heidi decided to spend some of her saved money on tickets to a Cold Play concert coming to town, and now she is planning on buying a new outfit for the concert. What type of resources is Heidi making decisions about?
discretionary income
Which category of income are marketers most interested in?
disposable income
Changing the hours of operation for a service business involves the _____ component of the marketing mix.
distribution
Consumers buying products online have dramatically affected the ___________ variable of the marketing mix.
distribution
Issues of inventory levels and storage costs are both concerns relating to the _____ variable of the marketing mix.
distribution
Key factors in determining the best organizational structure for a marketing unit are the
diversity of the firms products and the characteristics and needs of the people in the target market.
According to the Boston Consulting Group, marketers may classify their products as:
dogs, stars, question marks, cash cows
Which of the following attributes of a Toyota Scion would be most appropriate to emphasize in television commercials during an economic recession?
durability
The marketing environment is best described as being ___
dynamic and changing
______ is the degree to which an exchange helps achieve an organization's objectives.
effectiveness
______ refers to minimizing the resources an organization must spend to achieve a specific level of desired exchanges.
efficiency
Kate is upset because the bank did not credit her account with a deposit, which resulted in a returned check to Kates landlord. When she was told the branch manager was on vacation, Kate resigned herself to waiting two weeks to have the matter resolved. To her surprise, though, the receptionist apologized for the error and drafted a letter to Kates landlord while Kate waited. The bank was engaging in which type of decision- making strategy?
employee empowerment
A server in a fine restaurant has the authority to give a complimentary dessert to a dissatisfied customer when the customer complains about the meal or service. This is an example of
empowerment
___________ involves giving customer-contact employees the authority and responsibility to make marketing decisions without seeking the approval of a supervisor.
empowerment
Marketing knowledge and skills
enhance consumer awareness and help provide people with satisfying goods and services.
After Home Depot gathers information related to its marketing environment, it attempts to define current environmental changes and predict future changes. This determines possible opportunities and threats facing the company. It illustrates the process that is called
environmental analysis
Nabisco learned that health-conscious consumers preferred lower fat snack and lower-carbohydrate foods. At the same time, the firm saw sales of such products slumping and was careful not to launch any new varieties of these products for a while. Which of the following best describes Nabiscos action?
environmental analysis
Dell Computer collects information about a wide variety of competitive, economic, political, legal and regulatory, technological, and sociocultural forces that affect its marketing activities. This process is called
environmental scanning
XM Radio is concerned about how the increasing use of MP3 players will affect the future sales of its satellite radio service. The company decides to gather information about the changing trends in music access to prepare for this trend. XM Radios process is called
environmental scanning
To monitor changes in the marketing environment effectively, marketers must engage in
environmental scanning and analysis.
Collecting information from secondary sources such as business, government, trade, and general-interest publications plays an important role in
environmental scanning.
The first step in the marketing control process is to
establish performance standards
Strategic planning is the process of:
establishing an organizational mission and formulating goals, corporate strategy, marketing objectives, marketing strategy, and a marketing plan.
The marketing control process consists of
establishing performance standards, evaluating performance, and reducing the differences between desired and actual performance.
One way that Saturn evaluates its product and service level is by how well it ranks on the J. D. Power & Associates Sales Satisfaction Survey. In doing so, Saturn is
evaluating actual performance
The 1990 Nutritional Labeling and Education Act directly prohibits
exaggerated health claims on food packages.
Mark goes to a vending machine, deposits $1.00, and receives a Sprite. Which one of the following aspects of the definition of marketing is illustrated here?
exchange
A marketing plan usually begins with a(n)
executive summary
By offering credit and financing through its GMAC division, General Motors is trying to help consumers
expand current buying power at the expense of future buying power.
T/F: Strategic planning begins at the marketing level and proceeds through business-unit and corporate levels.
false
T/F: marketing consists primarily of selling and advertising
false
t/F: The broadest and simplest definition of marketing states that it is the development and efficient distribution of products for consumer segments.
false
t/f: A firms organizational goals should be derived from its opportunities.
false
t/f: A firms organizational mission should be derived from its goals.
false
t/f: A functional organization works effectively for large, decentralized companies.
false
t/f: A good example of a government regulatory group at the local level is the Better Business Bureau.
false
t/f: A marketing strategy is a written document that specifies the activities to be performed to implement and control a firms marketing activities.
false
t/f: A monopoly exists when a firm with many potential competitors attempts to develop a marketing strategy to differentiate its products.
false
t/f: A recession is characterized by extremely high unemployment, very low wages, minimal total disposable income, and lack of consumer confidence in the economy.
false
t/f: A strategic business unit is not self-supporting in terms of sales, markets, production, and other resources.
false
t/f: A strategic window results from the right combination of circumstances and timing, allowing a firm to take action to reach a particular target market.
false
t/f: A target market is always defined by demographics.
false
t/f: All marketers interpret laws and regulations conservatively and strictly to avoid violating a vague law.
false
t/f: All members of an industry are bound to follow trade association guidelines.
false
t/f: An individuals after-tax income is called his or her discretionary income, which is used for spending and/or saving.
false
t/f: Cash cows are market leaders that are growing fast, with substantial reported profits.
false
t/f: Changes in values have little effect on peoples needs for products.
false
t/f: Credit increases future buying power.
false
t/f: Customer benefits include time and effort.
false
t/f: Decreases in taxes lead to decreases in disposable income.
false
t/f: Disposable income is used to pay taxes, spend, and save.
false
t/f: During the marketing orientation, businesspeople realized that products, which by this time could be made relatively efficiently, would have to be promoted through much personal selling and advertising.
false
t/f: Empowerment refers to the measurement and evaluation of the quality of an organizations goods, services, or processes as compared with the best-performing companies in the industry.
false
t/f: Environmental analysis is the process of collecting information about forces in the marketing environment.
false
t/f: Firms always adopt and use new technology.
false
t/f: For an exchange situation to arise, only one condition must exist: two or more individuals, groups, or organizations must each possess something that they value and are willing to give up to receive the "something of value" held by the other individual, group, or organization.
false
t/f: For an exchange to occur, at least one of the parties must be willing to give up his or her "something of value."
false
t/f: If a person has buying power, he or she is influenced only by a products absolute price.
false
t/f: In general, when marketers focus on customers chosen for their lifetime value, they earn lower profits in future periods than when they focus on customers selected for other reasons.
false
t/f: In marketing, a product can be a good or a service but not an idea.
false
t/f: Internal management refers to the coordination of internal exchanges between the organization and its employees to achieve successful external exchanges between the organization and its customers.
false
t/f: Marketing planning consists of two major components: marketing objectives and a control process.
false
t/f: Marketing planning establishes an organizational mission and goals, corporate strategy, marketing objectives, marketing strategy, and a marketing plan.
false
t/f: Once a marketing mix has been created for a particular target market, it cannot be changed until a new strategic window opens.
false
t/f: Organizing marketing activities hinges on coordination of marketing activities, motivation of marketing personnel, and effective communication within the unit.
false
t/f: Personal computers and cellular phones are technology.
false
t/f: Political forces are beyond the control of marketers, and so they can only react to them.
false
t/f: Product competitors provide very different products that solve the same problem or satisfy the same basic customer need.
false
t/f: Pure competition is a common competitive environment.
false
t/f: Question marks exist at a cost disadvantage and exhibit few opportunities for growth at a reasonable cost.
false
t/f: Relationship marketing is short-term, mutually beneficial arrangements in which the buyer and seller focus on the creation of satisfying exchanges.
false
t/f: Self-regulatory guidelines generally are stricter than governmental regulatory programs.
false
t/f: Stars are profitable products that usually generate more cash than is required to maintain share.
false
t/f: The concept of customer lifetime value includes only the customers likelihood to engage in purchases.
false
t/f: The major forces that make up the consumerism movement are consumer organizations and business organizations.
false
t/f: The marketing control process does not monitor the activities of external sources of marketing assistance.
false
t/f: The primary way to reduce the discrepancy between planned and actual performance is to rewrite the performance standard.
false
t/f: The realized strategy is the one management decided upon during the planning phase and wants to implement.
false
t/f: Value = customer costs customer benefits.
false
Of all the federal regulatory units, the ____________ most heavily influences marketing activities.
federal trade commission (ftc)
In its advertisements, Johnsons Hair Care Products claims that its KLTR-14 gel will restore the hair of bald men. Members of the NARB believe the claim is unsupportable. What action can the NARB take?
file a complaint with the FTC
A competitive advantage exists when a
firm matches a core competency to opportunities it has discovered in the marketplace.
In a period of economic recovery, the best marketing strategy for FedEx would be characterized by which of the following features?
flexibility
Discretionary income is associated with all of the following except
food
Which of the following are the most frequently sentenced organizational crimes?
fraud and antitrust violations
Ford has centralized marketing operations with personnel who direct marketing research, distribution, sales, advertising, and so forth reporting directly to the top-level marketing executive. Fords marketing department is organized by
function
Due to limited resources, a consumer decided to serve Hawaiian Punch to a New Years Eve party crowd instead of Korbel champagne. As a result of this action, Korbel and Hawaiian Punch can be viewed as ___________ competitors.
generic
__________ competitors provide very different products that satisfy the same basic customer need.
generic
Which of the following is essentially an uncontrollable factor in developing a marketing mix?
government regulations
Initiatives intended to improve an organization's positive impact on society and the natural environment are called
green marketing
According to the Boston Consulting Group, question marks are characterized as products
having a small share of a growing market and requiring large amounts of cash to build market share.
Meredith knows that whether she decides to interact with her customers in person, on the telephone, online, or by fax, that ________ should ultimately drive the marketing strategy.
her customers
In the near future, what subculture will become the second largest group in the United States?
hispanics
Mothers Against Drunk Driving (MADD) is a group that works to change attitudes and laws about driving under the influence of alcohol. MADD primarily markets __
ideas
To formulate a marketing strategy, one must
identify and analyze a target market and develop a marketing mix to satisfy individuals in that market.
If McDonald's runs a promotion advertising Big Macs for $1.50, it must ensure that each of the company's restaurants has sufficient staff and product on hand to handle expected demand. This relates to which of the following marketing management activities?
implementation
_________ of marketing plans hinges on coordination of marketing activities, motivation of marketing personnel, and effective communication within the marketing unit.
implementation
The amount of money received through wages, rents, investments, pensions, and subsidies is called
income
A persons buying power is a function of
income, wealth, & credit
Taco Bell is introducing some of its products into supermarkets, vending machines, college campuses, and other locations to increase its product availability and convenience. One reason Taco Bell is doing so is to
increase customer value
When using credit to make purchases, consumers are
increasing current buying power at the expense of future buying power.
Customer relationship management (CRM) begins its focus on customers with
information
Customer relationship management focuses on using ___________ about customers to create marketing strategies.
information
In essence, all organizations have two types of strategy: ___________ is the strategy that the organization decides on during the planning phase, and ___________ is the strategy that actually takes place.
intended strategy; realized strategy
The employees of Zingermans Deli are its ______ customers.
internal
Starbucks provides training and support to its employees, including health care benefits. Through these ____________ efforts Starbucks is better able to deliver quality products and service to its customers.
internal marketing
A target market __
is a specific group of customers on whom a company focuses its marketing efforts.
If the Federal Trade Commission believes that Soljur Sporting Goods is acting in violation of the law, the first move for the FTC is to
issue a complaint stating that the business is in violation of the law.
A disadvantage of organizing a firms marketing unit by products is that
it can be expensive
Which of the following provides protection for and regulates brand names, brand marks, trade names, and trademarks?
lanham act
The time lag between the performance of marketing activities and their results
limits the marketing managers ability to measure the effectiveness of marketing activities.
A group that has the willingness, ability, and authority to buy a product is a
market
Realizing that consumers have begun to seek vehicles that use less gasoline, Toyota heavily promotes its hybrid automobiles to capitalize on this __________ while the strategic window is open.
market opportunity
The percentage of a market which actually buys a specific product from a specific company is referred to as that product's
market share
American Express implements a program of calling its current cardholders to find out what changes they would like to see in the services provided. The firm is exhibiting characteristics associated with which of the following orientations?
marketing
Which of the following is the most specific and detailed type of business strategy?
marketing
When Campbell's introduced a line of low-sodium soups in response to customer demand, it was following which one of the following philosophies?
marketing concept
_________ is the process of establishing performance standards, comparing actual performance with established standards, and reducing the difference between desired and actual performance.
marketing control
A change in the minimum drinking age in any given state illustrates a change in the ___________ for Miller Brewing.
marketing environment
A marketing manager for a small computer manufacturer is analyzing the potential effects of political, legal, sociocultural, and economic forces on the firm's operations. The marketing manager is examining the ___________ that influence(s) the firm's strategy.
marketing environment
The process of putting marketing strategies into action is called
marketing implementation
When the right combination of circumstances occurs at the right time to allow an organization to take action toward a target market, the firm is faced with a
marketing opportunity
CyberCycle Inc., is preparing a written document specifying the activities to be performed to implement and control its marketing activities. This document is called the
marketing plan
Hallaways Corps new shampoo, VS2, is faltering badly in the market. Hallaways marketing personnel are unsure who is responsible for various marketing tasks, when these tasks are to be completed, or what resources have been allocated. Hallaway Marketing Director Carolyn Willis said that the problem is that VS2 has the most poorly written ___________ she has ever seen.
marketing plan
Starbucks is presently involved in a process of assessing marketing opportunities and resources, determining marketing objectives, re-defining marketing strategies, and developing guidelines for implementation and control. Thus, Starbucks is involved in
marketing planning
Safeway Food Stores is involved in identifying and analyzing a target market. The firm then develops a marketing mix to satisfy individuals in that market to gain long-term competitive advantages. Based on this example, Safeway is creating a
marketing strategy
Organizing a marketing unit by regions works well for a company that
markets products throughout the nation
Marketing managers strive to develop a marketing mix that
matches the needs of the target market
An organization's business goals should be derived from its
mission statement
Customer costs include anything the buyer must give up in order to obtain the benefits the product provides. The most obvious customer cost is
monetary price
Scott, a buyer for a medium-sized company, is assessing the value of competing software products for use in his firm. Which of the following would not be a customer benefit considered in his determination of this product's value?
monetary price
J. Pitner Clothing is a medium-size specialty mens and womens clothing store in a market with many other specialty stores, department stores, and discounters. It has established a reputation for offering high-quality, fashionable merchandise with quality service. J. Pitners competitive environment would best be characterized as
monopolistic competition
When a firm has many potential competitors and tries to develop a marketing strategy to differentiate its products from the competitors products, a(n) _______ structure exists in the competitive environment.
monopolistic competition
Consumer protection legislation deals with all of the following legal concerns except
monopolistic practices
Mixed Concrete cannot be shipped farther than twenty-five miles because the concrete might harden in the truck. Citrus County Concrete Company is the only supplier of mixed concrete to customers within a thirty- mile radius. Citrus County Concrete is an example of which one of the following competitive structures?
monopoly
What type of competitive structure exists when a firm produces a product that has little to no close substitutes?
monopoly
What national self-regulatory organization screens ads?
national advertising review board
The Better Business Bureau is probably the best-known
nongovernmental regulatory group
Three primary methods of collecting information for environmental scanning are
observation, secondary sources, and marketing research.
When an organization attempts to control its marketing activities, it may find it difficult to
obtain the necessary info
The four major competitive structures are
oligopolies, monopolies, monopolistic competition, and pure competition.
The American automobile industry used to be dominated by "The Big Three," including General Motors, Ford, and Chrysler. However, as many more foreign competitors began influencing this market, the American companies had to modify and differentiate their products. The automobile industry moved from a(n) ______ structure to a(n) _______ structure.
oligopolistic; monopolistic competition
What type of competitive structure exists when just a few sellers control a large portion of the supply of a product?
oligopoly
Most marketers operate in a competitive environment of either
oligopoly or monopolistic competition.
Favorable conditions in the marketplace environment that could produce business rewards for the organization if acted upon properly are called
opportunities
If you were a marketing manager, under which type of organizational structure would you most likely be working if your firm were a large business with centralized marketing operations?
organization by function
Developing the internal structure of a firm's marketing unit relates to which of the following marketing management activities?
organizing
Maintaining the current culture of "fun" for Southwest Airlines employees is most likely a(n)
overall organizational objective.
An expected level of performance against which actual performance can be compared is a
performance standard
Morris Business Products Co. has established a monthly sales quota of $150,000. This is a(n)
performance standard
The Boston Consulting Group's matrix is based on the
philosophy that a products market growth rate and its market share are important determinants of its marketing strategy.
A systematic process of assessing opportunities and resources, determining marketing objectives, and developing a marketing strategy and plans for implementation and control describes which of the following marketing management activities?
planning
Marketing management is defined as a process of
planning, organizing, implementing, and controlling marketing activities.
Texas rice farmers wish to get their product into the Japanese market but are hindered by a complex maze of regulations imposed by the Japanese government. The farmers are most likely to attempt to influence which aspect of the marketing environment?
political
Textile companies historically face issues concerning the use of child labor in foreign countries and the various regulations created concerning this labor. The type of marketing environment forces executives for these companies are most likely to try to influence are ______ forces.
political
The forces of the marketing environment include
political, legal and regulatory, sociocultural, technological, economic, and competitive.
Procompetitive laws are those designed to
preserve competition
When Burger King offers 99-cent Whoppers to increase store traffic, it is altering which aspect of the marketing mix?
price
Marketers who attempt to influence and change the various environmental forces have a(n) _____ response to these forces.
proactive
Toyota has developed aluminum car bodies that are 100 percent recyclable and light enough to help conserve fuel. What kind of response is this to environmental forces?
proactive
Deciding to add gel insoles to its running shoes would be a change in the _____ element of the marketing mix for Nike.
product
Making modifications to packaging or brand names involves the _____ component of the marketing mix.
product
Procter & Gamble, like many firms in the consumer packaged-goods industry, is organized by
product
___________ competitors are those that compete in the same product class, but their products have different features, benefits, and prices.
product
Marketers often speak of the "controllable" variables in the practice of marketing. what are they?
product, price, distribution, promotion
When DataComp Corp., a producer of computer software, delayed the introduction of its new spreadsheet program to modify the package, its scheduled magazine advertisements announcing the new product needed to be revised. In this case, a change in the ___________ variable caused changes in the ___________ variable of the marketing mix.
product; promotion
As the Industrial Revolution came to the United States, most firms operated in a(n) __________ orientation.
production
A firm that markets diverse products would most likely base the organization of its marketing department on
products
The element of the marketing mix used to increase awareness of a product or company is __
promotion
When DuPont develops new carpet fibers that are highly stain-resistant and durable, it must educate consumers about the product's benefits. This calls for activity in which of the following marketing mix variables?
promotion
Boca Burger's website features information about products, recipes, and nutritional values, but customers cannot actually purchase products from the website. This website is most likely used primarily as a ______ marketing tool.
promotional
Assuming that inflation is low, high buying power characterizes the _____ stage of the business cycle.
prosperity
During which stage of the business cycle is unemployment low and total income relatively high?
prosperity
A marketing plan
provides a framework for implementing and controlling marketing activities.
If in an industry, none of the many sellers could influence the price of supply of its products, this industry would be characterized as
pure competition
In general, which of the following competitive structures is an organization least likely to operate?
pure competition
The two least common competitive structures at the opposite ends of the continuum are
pure competition & monopolies
The broad nature of technology as it moves through society is referred to as
reach
Although Matts company engages in environmental scanning and analysis, he feels more comfortable changing his policies and strategies to adapt to environmental forces rather than trying to influence these forces. Matt has a(n) _____ approach to marketing environmental forces.
reactive
Marketers who view political forces as being beyond their control are taking a ___________ response toward these forces.
reactive
Sayids employer is currently developing a new marketing strategy. The top managers have developed the marketing strategy and have given it to Sayid so that he can now develop an implementation plan. Sayids company will most likely end up with which type of strategy?
realized
The _________ strategy in an organization often does not live up to marketing planners expectations.
realized
Although marketing theory supports the contrary, it is more probable that marketing budgets will be cut during periods of economic
recession
Consumers begin to become more price and value conscious during periods of
recession
Total buying power declines during periods of economic
recession
Consumer confidence and willingness to spend begins to increase during periods of _____, and marketers must remain very flexible to make the necessary adjustments.
recovery
Socially responsible business practices have provided all of the following benefits except
reducing marketing costs.
Suppose a customer calls Anns office at Frito-Lay in Atlanta. The customer has a friend in Seattle who was just telling her about a new snack Frito-Lay has introduced that is selling rapidly. Anns office does not market this product, and at the present knows very little about it. Based on this information, this firm is most likely organized according to which of the following?
region
A firm that wants to put more senior management personnel into the field, to get closer to customers, and to enable the company to respond more quickly and efficiently to competitors would probably organize its marketing unit on the basis of
regions
Customer relationship management systems cannot be effective unless they are developed as
relationship building tools
Marketers use the term "___________" to describe establishing long-term, mutually satisfying buyer-seller relationships.
relationship marketing
Today, establishing long-term, mutually beneficial arrangements in which both the buyer and seller focus on value enhancement through the creation of more satisfying exchanges is known as
relationship marketing
International Office Supplies Wholesaler charges different prices to its various customers without any legal justification. This company is in violation of the
robinson-patman act
Price discrimination is prohibited by the ___________ Act.
robinson-patman act
From the 1920s to the 1950s, demand for manufactured goods decreased, leading to the _____ orientation.
sales
U.S. Electric, the maker of a highly innovative xenon light bulb, finds that it has excess inventory. The firm increases its advertising budget by 50 percent and doubles its sales staff. This company is operating as if it were in which of the following orientations?
sales
Marketing facilitates exchange relationships between buyers and sellers. What is marketing's intended outcome for this relationship?
satisfaction for both the buyer and seller
The marketing concept focuses on
satisfying customers' needs in a way that helps to achieve organizational objectives.
If M&M Mars Candies found a magazine article that provided key information on the television viewing habits of major candy consumer groups, this would be an example of information obtained through environmental
scanning
The Childrens Online Privacy Protection Act prohibits websites and Internet providers from
seeking personal information from children under the age of 13
In its advertisements for Bud Light beer, Anheuser-Busch has decided to include a statement saying "Know when to say when." This is an example of which one of the following types of regulatory forces affecting marketing efforts?
self-regulation
The Pharmaceutical Research and Manufacturers of America sets guidelines for its member firms to follow regarding the use of unethical practices. Thus, it is engaging in
self-regulation
marketing activities help __
sell an organization's products and generate financial resources for the firm.
Which of the following is not a purpose of the marketing plan?
serve as a contract with the customer
The application of mechanical and human efforts to either people or objects to provide intangible benefits to customers is known as a(n)
service
The three basic forms that a product can take are
services, goods, and ideas
If all the gas stations in a city collaborated to determine what gas prices should be charged, they would be violating the
sherman antitrust act
The strength of a persons "buying power" depends on economic conditions and
size of resources that can be traded in an exchange.
After news reports that pharmaceutical giant Merck was aware that its arthritis-fighting drug Vioxx may cause heart problems, the firms stock plummeted and hundreds of lawsuits were filed against the company. This demonstrates what can occur if firms ignore
social responsibility
Avon's Breast Cancer Awareness Crusade, which has raised nearly $400 million for community-based breast cancer education and early detection services, illustrates the positive consequences of
social responsibility
If Hefty Bags expresses concern that its products are having too great an impact on the pollution of ground water under landfills, this concern is directly related to the firms
social responsibility
People for the Ethical Treatment of Animals (PETA) have demonstrated against the sale of coats made of animal furs. PETAs efforts to change shoppers attitudes represent a __________ force for fur retailers.
sociocultural
The Texas Pitt Barbecuem Corporation has conducted a SWOT analysis of its competition, and sees a marketing opportunity for its new Texas Pit Barbecue restaurant. It has developed its marketing plan to include the type of products it will sell, the location for the restaurant, and the pricing it will use. Their plan includes a marketing objective to make a profit of 5% the first year of operation. So far, the owners of the restaurant have eliminated a key piece of the marketing plan, which is ______.
specifying how they will achieve their marketing objective
Based on the work by the Boston Consulting Group, products with a dominant share of the market and good prospects for growth are
stars
The FTC can issue a cease-and- desist order, which is an injunction to
stop doing whatever caused the complaint.
Kraft purchased the Duracell Battery Company and now operates this division as a separate profit center within the firm. In this example, Duracell is a(n) ___________ unit of Kraft.
strategic business
Within a business organization, a profit center that is self-supporting in terms of sales, markets, production, and other resources is known as a
strategic business unit
Managers at the Littlefield Corporation are engaged in a complex process of revising their organization's mission and goals and developing corporate strategy, marketing objectives, marketing strategy, and, eventually, a marketing plan. This process is called
strategic planning
John Deere's strong name recognition and solid customer demand for its farm and garden equipment are two elements of the firms
strengths
An analysis of ___________ examines internal factors that give the organization certain advantages and disadvantages in meeting the needs of its target markets.
strengths & weaknesses
Successful business organizations should take actions to convert internal weaknesses into ___________ and external threats into ___________.
strengths; opportunities
eDuring the Industrial Revolution demand for manufactured goods was
strong
A competitive advantage that cannot be readily copied by the competition is referred to as a(n) __________ advantage.
sustainable
Because of its highly efficient and low-cost distribution system, Walmart has a _________ advantage over Kmart.
sustainable competitive
Harley-Davidsons Harley Owners Group (HOG) helps to foster strong relationships between riders and their motorcycles, giving it a(n) _____ over other motorcycle manufacturers.
sustainable competitive advantage
Coca-Cola is aiming its Diet Coke Plus (with vitamins and minerals) at health-conscious customers. These health-conscious customers represent Coke's __
target market
Newsweek enhances its visibility to readers by making its magazine available on the Internet. Newsweek is capitalizing on which environmental force?
technological
__ is the application of knowledge and tools to solve problems and perform tasks more efficiently.
technology
When Cisco Systems attempts to anticipate the effect of new products and processes on its own innovations, other business organizations, and society in general, the firm is engaging in
technology assessment
___ is trying to foresee the effects of new products and processes on the firms operation and on society in general.
technology assessment
The strategic planning process begins with
the analysis of the marketing environment
Which of the following regulatory groups is a system of nongovernmental, independent, local regulatory agencies supported by local businesses?
the better business bureau
Health Care Systems, Inc. rolls out an innovative nurse-on-call information system available online. The product is not widely accepted because patients don't see the need for such a service. This situation represents a failure in which aspect of implementing the marketing concept?
the customer information system
The Jackson Hewitt company wants to adopt the marketing concept as a business philosophy. To be consistent with this decision, it should adopt which of the following philosophies?
the customer is always right
More than half of the research of technology created is paid for by
the federal gov't
Marketing managers at Consolidated Equipment Corporation are involved in establishing marketing performance standards, evaluating performance, and reducing the differences between actual and desired performance. These marketing managers are engaged in
the marketing control process
StarKist Tuna announced a dolphin-safe policy and stopped buying tuna from fishing vessels that net dolphins. This decision indicates a response to concerns about
the marketing environment
Distribution, price, promotion, and product are all elements of __
the marketing mix
The primary value that a marketer expects to receive from a customer in an exchange relationship is __
the price charged for the product.
A market opportunity results from
the right combination of circumstances and timing that permit an organization to take action to reach a particular target market.
For an exchange to occur, four conditions must exist: first, two or more individuals, groups, or organizations must participate, and each must possess "something of value" that the other desires; second, the exchange must provide a benefit or satisfaction to both parties; third, each must have confidence in the promise of the "something of value" held by the other; and fourth, ___
to build trust, parties to the exchange must meet expectations.
Companies that compete for the same limited financial resources of the same customers are known as _________ competitors.
total budget
In todays marketing environment, competitors can take on many forms. For example, Diet Coke can be seen as a competitor to Wrigleys Double Mint chewing gum. In this circumstance, these two products are described as ___________ competitors.
total budget
T/f: Strategic planning begins at the corporate level and proceeds through business-unit and marketing levels.
true
t/f: A competitive advantage is created when a company matches its core competency to the opportunities it has discovered in the market.
true
t/f: A family that organizes and advertises a garage sale is performing marketing activities.
true
t/f: A marketing orientation requires the organization-wide generation of market intelligence pertaining to current and future customer needs, dissemination of the intelligence across departments, and organization-wide responsiveness to it.
true
t/f: A marketing unit can be organized according to functions, products, regions, or customers.
true
t/f: A recent U.S. Supreme Court decision nullified federal laws that restricted political campaign fund contributions for corporate labor unions.
true
t/f: A sustainable competitive advantage is one that cannot be copied by a firms competitors.
true
t/f: Achievement of the firm's overall goals is part of the marketing concept.
true
t/f: Although numerous regulatory forces arise from governmental sources, nongovernmental regulatory forces may also affect marketing decisions.
true
t/f: An individual can have a high income and very little wealth.
true
t/f: At the most basic level, profits can be obtained through relationships by acquiring new customers, enhancing the profitability of existing customers, and extending the duration of customer relationships.
true
t/f: Basic and extended warranties can reduce risk, a major customer cost.
true
t/f: Because of overlapping areas of responsibilities of regulatory agencies, confusion and conflict regarding jurisdiction of marketing activities are common.
true
t/f: Corporate strategic planners focus on dimensions such as competition, diversification, differentiation, environmental focus, and interrelationships among SBUs.
true
t/f: Corporate strategy determines the means for utilizing resources in the functional areas of business to reach the organizations goals.
true
t/f: Customer relationship management is the use of information about customers to create marketing strategies that develop and sustain desirable customer relationships.
true
t/f: Customers are interested in a product's price because they are concerned about the value obtained in an exchange.
true
t/f: Economic forces determine the size and strength of demand for products.
true
t/f: Environmental analysis helps managers identify potential threats and opportunities linked to environmental changes.
true
t/f: For a given level of buying power, the larger the family, the greater the willingness to spend.
true
t/f: Implementation of marketing plans requires motivating marketing personnel, coordinating their activities, and integrating their activities both with those in other areas of the company and with the marketing efforts of personnel in external organizations.
true
t/f: In a traditional organization, marketing decisions are generally centralized at the top levels of the organization.
true
t/f: In marketing management, planning is a systematic process of assessing opportunities and resources, determining marketing objectives, and developing a marketing strategy and plans for implementation and control.
true
t/f: Internal marketing may involve market segmentation, product development, research, distribution, public relations, and sales promotion.
true
t/f: Marketing activities do not always result in exchanges.
true
t/f: Marketing management is the process of planning, organizing, implementing, and controlling marketing activities to facilitate and expedite exchanges effectively and efficiently.
true
t/f: Marketing objectives should be stated in such a way that the degree of accomplishment can be measured accurately.
true
t/f: Marketing planning and implementation are inextricably linked in successful businesses.
true
t/f: Marketing plans may be developed for strategic business units, product lines, individual products or brands, or specific markets.
true
t/f: Monitoring the competitive environment guides marketers in developing competitive advantages.
true
t/f: Numerous self-regulatory programs have been created to stop or stall the development of laws and government regulatory groups that would regulate marketing practices.
true
t/f: People have changed their values regarding the permanence of marriage, which in turn has led to an increased emphasis on people being happily married.
true
t/f: Performance standards are established as part of the marketing control process.
true
t/f: Political and legal forces in the marketing environment are highly interrelated.
true
t/f: Product organization is appropriate for a firm that produces and markets a diverse set of products.
true
t/f: Promotion can help sustain interest in established products that have long been available.
true
t/f: Self-regulatory programs guidelines generally are more realistic and operational.
true
t/f: Social responsibility refers to a companys obligation to maximize its positive impact and minimize its negative impact on society.
true
t/f: Target markets can be people who buy the product but do not necessarily use the product.
true
t/f: The Boston Consulting Group approach is based on a philosophy that a products market growth rate and its market share relative to competition should be helpful in determining its marketing strategy.
true
t/f: The Boston Consulting Groups model serves as a diagnostic tool to spotlight strategic business units that have an opportunity to grow rather than as a guide for making strategy prescriptions.
true
t/f: The amount of future income already committed to past credit agreements influences ones ability to use more credit.
true
t/f: The major source of cultural values is the family.
true
t/f: The marketing concept is a management philosophy, not a second definition of marketing.
true
t/f: The number of firms that control the supply of a product may affect the strength of competition.
true
t/f: The process people use to determine the value of a product is not highly scientific.
true
t/f: The strategic planning process begins with a detailed analysis of the organizations strengths and weaknesses and the identification of opportunities and threats within the marketing environment.
true
t/f: The strength of ones buying power depends partially on the state of the economy.
true
t/f: The three major components of sociocultural forces are demographic and diversity characteristics, cultural values, and consumerism.
true
t/f: The time lag between the performance of marketing activities and the effects of such activities limits a marketing managers ability to measure the effectiveness of marketing activities.
true
t/f: The total amount of disposable income is affected by the amount of taxes consumers pay.
true
t/f: There is no single approach to organizing a marketing unit that works well in all businesses.
true
t/f: To achieve their objectives, consumer advocates write letters to companies, lobby government agencies, broadcast public service announcements, and boycott companies whose actions they deem irresponsible.
true
t/f: Wealth is an accumulation of past income and natural and financial resources.
true
A marketing unit can be organized according to functions, products, regions, and
types of customers
An appliance manufacturer that sells to large retail stores, wholesalers, and institutions would probably organize its marketing unit on the basis of
types of customers
Which of the following industries is most commonly regulated by state regulatory agencies?
utility companies
________ is a customer's subjective assessment of benefits relative to costs in determining the worth of a product.
value
When Specialty Motors is operating during a recessionary period, its promotion efforts should stress
value & utility
The equation a buyer applies to assess a product's value is
value = customer benefits customer costs.
The textbook suggests that the best approach a firm can take in responding to marketing environmental forces is
variable
When a firm continues to violate what the Better Business Bureau believes to be good business practices, what is one of the main actions the bureau will take?
warn consumers of the unfair practices
The accumulation of past income, natural resources, and financial resources is known as
wealth
Although Shelbys income is comfortable, she hesitates to purchase a new car because she is concerned about how poor economic conditions may affect her company and in turn her future employment. Shelby lacks
willingness to spend
Which of the following terms refers to consumers' propensity to buy?
willingness to spend
