Marketing

Organizations focus their efforts on a group of customers called _______.

a target market

low market share in a market with low growth

cash cow

Which of the following marketing-mix variables has Walmart generally emphasized in its marketing activities?

price

Value can be expressed as _______.

Customer Value = Customer Benefits - Customer Costs

Margie noticed that sales of her company's newest electric bicycle product are much higher than anticipated. She wants to investigate why this has occurred. Margie first compares the sales to performance standards the company has set for the new product. She examined the firms' efforts, the costs incurred from marketing activities, industry sales as a whole, and competitor sales. After looking at all this data, she determined that the reason for the higher sales was two-fold. Industry sales averages were high, and after some investigation Margie noticed that there has been a major influx in consumers wanting to bike to work or for recreational purposes—much more than anticipated. The electric bicycle they released also had a unique design, and she believes this design—which is patented so rivals cannot replicate it—makes the bicycle more comfortable for bicyclists who bike long distance. Refer to Scenario 2.6. Margie believes this is the optimal time to seize upon this opportunity. Through the bike's patented design, her company has capabilities that fit the unique demands of this growing market. Margie wants to capitalize on this opportunity before these market trends have a chance to change. This period for Margie's firm is known as a _______.

strategic window

An advantage that the competition cannot copy is a ______.

sustainable competitive advantage

The Brandenburg family makes $7,000 per month. About $1,800 goes toward taxes and savings. They spend $5,200 on goods and services. Based upon the information in the text, about how much of their money goes toward marketing activities?

$2,600

____________ is the major focus of the marketing concept.

Customer satisfaction

How does a sustainable competitive advantage differ from a competitive advantage?

A sustainable competitive advantage is one that competitors cannot copy in the immediate future.

Which of the following statements is true about marketing?

All types of organizations need marketing.

Barry is in charge of implementing his unit's marketing strategy, and he is currently engaged in establishing a timetable for implementation activities. Which of the following is Barry's final step in establishing an implementation timetable?

Assigning responsibility for completing each activity to one or more employees, teams, or managers

Which of the following is not a component of the marketing plan?

Business analysis

Procter & Gamble's Tide laundry detergent has a predominant share of the detergent market in the United States. However, the detergent market has reached market saturation in the United States. With this information, what type of product is Tide based upon the Boston Consulting Group's market growth/market share matrix?

Cash cow

Which of the following is likely the most important decision a company makes during the strategic planning process?

Choosing a target market

Southwest is known for its culture of "luv" and its fun-loving approach. This is an example of which of the following?

Corporate identity

_______ is the broadest level of strategic planning.

Corporate strategy

________ income is the amount of money left after paying taxes.

Disposable

Paul owns a small retail store. His store sells local products from farmers and small food and beverage businesses in his store. He has a number of strategic partnerships with different players in the industry and believes his business has the ability to become highly successful. Those customers who have bought from him have become loyal customers and frequently visit the store. The problem is most people do not seem to realize the store exists. He decides to write a marketing plan that will outline the marketing activities he needs to take to spread awareness of his company and attract consumers to his business. Refer to Scenario 2.5. Paul is at the stage of his marketing plan where he needs to gather information about his firm's situation with respect to the market. A major part of this is his assessment of target markets. Which section is he about to write?

Environmental analysis

It is a year later. Neema's manager decided that the company would develop a salsa business. Neema has been in a flurry of activity since then. Not only did the company have to invest in a building and equipment, but she has had to develop marketing strategies for the new salsa business. The marketing strategies are now complete and ready to be put into action. Neema was placed in charge of marketing implementation. She has spent several months organizing the marketing unit, training employees, coordinating the marketing staff, developing a social media plan, and communicating the goals and objectives of the strategy. Refer to Scenario 2.4. What is next step Neema should take to implement the marketing strategy?

Establishing a timetable for implementation

Which of the following is not one of the steps in strategic performance evaluation?

Establishing a timetable for implementation

Margie noticed that sales of her company's newest electric bicycle product are much higher than anticipated. She wants to investigate why this has occurred. Margie first compares the sales to performance standards the company has set for the new product. She examined the firms' efforts, the costs incurred from marketing activities, industry sales as a whole, and competitor sales. After looking at all this data, she determined that the reason for the higher sales was two-fold. Industry sales averages were high, and after some investigation Margie noticed that there has been a major influx in consumers wanting to bike to work or for recreational purposes—much more than anticipated. The electric bicycle they released also had a unique design, and she believes this design—which is patented so rivals cannot replicate it—makes the bicycle more comfortable for bicyclists who bike long distance. Refer to Scenario 2.6. At what stage of the strategic planning process is Margie?

Evaluating marketing strategies

Which of the following provides an overview of the entire marketing plan so that readers can quickly identify the key issues and their roles in the planning and implementation process?

Executive summary

Conducting a SWOT analysis comes immediately before the establishment of corporate and business-unit strategies.

False

Marketers have complete control over marketing-mix variables.

False

Neema is working on a SWOT analysis of a local Mexican restaurant Tres Tortillas in Flagstaff. She writes down that the organization has high customer loyalty, resources for expansion, a large social media following, and strong management. She also writes that the market for salsa products is high and more people are eating out. On the other hand, one major complaint levied against the restaurant is that it is high priced and other casual-dining restaurants with less expensive menu offerings are locating to the city. Still, Neema believes the restaurant's talented and well-known chef provides it with an advantage that other restaurants do not have. Refer to Scenario 2.1. Which of the following characteristics of the Mexican restaurant represents an opportunity?

Greater demand for salsa products

_______ is a strategic process involving stakeholder assessment to create meaningful long-term relationships with customers while maintaining, supporting, and enhancing the natural environment.

Green marketing

Which of the following institutions would be most likely to market an idea as their main product?

Greenpeace

Strategic marketing management addresses which of the following questions? (Select two)

How will the company reach its goals? What is the organization's main activity at a specific time?

What is the first step for marketers in implementing the marketing concept?

Investing in an information system to discover customers' real needs

Which of the following statements describes a benefit that marketing offers?

It enhances consumer awareness.

Which of the following is a disadvantage of being a first mover in the market?

Large outlays associated with creating a new product

Which of the following is true of an exchange?

Marketing can occur even if an exchange does not take place.

When McDonald's decided to eliminate artificial flavorings and preservatives from its vanilla ice cream, it was most likely responding to which of the following?

Marketing environment forces

Which of the following statements about the marketing environment is false?

Marketing environment forces are uncontrollable, so marketers do not plan for them.

Which of the following sections of the marketing plan outlines how the company will achieve its marketing objectives?

Marketing implementation

Which reason regarding why marketing is important to our global economy supports the idea that marketing is performed by everyone in an organization?

Marketing is important to business and the economy.

Which reason regarding why marketing is important to our global economy supports the idea that, as a consumer, you will better understand the buying process?

Marketing knowledge enhances consumer awareness.

Which of the following types of competitive structure often exists because of the difficulty and expense of entering a market?

Oligopoly

_______ is the most flexible of the marketing-mix variables because it is the easiest and quickest component to change.

Price

Which of the following compete in the same product class but market products with different features, benefits, and prices?

Product competitors

Neema's manager believes that Tres Tortillas can gain an advantage over competing Mexican restaurants in the area by capitalizing on the higher demand for salsa. Her manager believes the firm's top-secret salsa recipe could be the key to expanding into another market niche. The manager has proposed developing a line of its salsas in 16-ounce jars to sell at its restaurant. This way its loyal customers could buy its salsa outright and serve it at home. Neema has been tasked with the determining the feasibility of this strategy. Refer to Scenario 2.2. What type of competitive growth strategy is Neema's manager discussing?

Product development

Jim manages a small factory that produces circuit boards. Jim operates from the belief that a good product creates demand. He focuses much of his energy on developing operational efficiencies and increasing output. The company's salesperson Darlene, however, views customer relationships and personal selling as being the highest priority. Between the two of them, the firm has become known for its quality products and excellent customer relationships. What type of orientation has Jim adopted?

Production

Margie noticed that sales of her company's newest electric bicycle product are much higher than anticipated. She wants to investigate why this has occurred. Margie first compares the sales to performance standards the company has set for the new product. She examined the firms' efforts, the costs incurred from marketing activities, industry sales as a whole, and competitor sales. After looking at all this data, she determined that the reason for the higher sales was two-fold. Industry sales averages were high, and after some investigation Margie noticed that there has been a major influx in consumers wanting to bike to work or for recreational purposes—much more than anticipated. The electric bicycle they released also had a unique design, and she believes this design—which is patented so rivals cannot replicate it—makes the bicycle more comfortable for bicyclists who bike long distance. Refer to Scenario 2.6. What method of analysis is Margie using?

Sales analysis

Shannon is driving in downtown Santa Fe. She is not very familiar with the area and is running late for her appointment. She heads to a nearby paid parking lot and is told that it costs $20 to park. Shannon is irritated by the price. Although there are likely other paid parking lots that are less expensive, Shannon pays the price to park there. Different cost considerations impacted Shannon's decision, but clearly one stood out over all the others. Which cost exerted the most influence over Shannon's decision to park in the $20 parking lot?

The non-monetary cost of time

Why might a marketer want to engage in marketing cost analysis?

To allocate the firm's marketing resources better in the future

When conducting a SWOT analysis, managers can identify opportunities and threats by _______.

analyzing the external marketing environment

Marketing cost analysis _______.

breaks down and classifies costs to determine which are associated with specific marketing efforts

Marty works at an organization with a clear chain of command. The major decisions are relegated to top managers. Marty and his co-workers have strict performance standards. Managers at his organization monitor the work of employees to make sure they are staying on track. This is an example of a ________________organization.

centralized

Broadly speaking, customer relationship management (CRM) allows marketers to _______.

collect information about customers and create marketing promotions and communications specific to groups of consumers

The American Marketing Association (AMA) defines marketing as the activity, set of institutions, and processes for creating, __________, __________________, and exchanging offerings that have ____________ for customers, clients, partners, and society at large.

communicating, delivering, value

A firm's ________ is other firms that market products which are similar to or can be substituted for its products.

competition

Neema continues to work on the marketing strategy for Tres Tortillas. Tres Tortillas was successful in selling 16-ounce jars of salsa in its restaurant. In fact, demand for the jars of salsa is so high that Neema believes Tres Tortillas should try to expand and start selling in stores and online. She believes Tres Tortillas salsa has the potential for enormous growth, perhaps even more so than the actual restaurant. Refer to Scenario 2.3. Neema's manager is skeptical. Such an investment would require a manufacturing facility, a larger marketing budget, and salespeople who would be able to get the salsa onto store shelves. However, Neema maintains that Tres Tortilla's secret salsa recipe provides it with a core competency. The market for salsa is also strong. She believes this provides Tres Tortillas with a chance to match its core competency to market opportunities, otherwise known as a(n) _______.

competitive advantage

The marketing environment includes _______, economic, political, legal and regulatory, technological, and _______ forces.

competitive; sociocultural

A _____________ is something a firm does extremely well while a ____________ exists when a firm matches a core competency to opportunities in the marketplace.

core competency, competitive advantage

A Subaru representative has a solid relationship with Phil, a satisfied customer. Phil loves Subaru and will not accept anything else. The representative determines that if Phil continues to do business with Subaru every time that he wants to purchase a new car, his total value to the company would be $350,000. This includes purchases made by customers who were referred to the firm by Phil. The Subaru representative has calculated Phil's _______.

customer lifetime value

The goal of marketing is to develop mutually beneficial exchanges between _______.

customers and marketers

Decision-making authority is delegated as far down the chain of command as possible in a _______.

decentralized organization

All of the following are forces in the marketing environment EXCEPT _______, and _______. (Select two)

demographic, ethnic

The first step of relationship marketing is to _______.

determine what customer needs and wants are and develop products to fit those needs

Strategy decisions for the promotion variable of the marketing mix would include ______.

determining the best way to persuade customers about product features and benefits

A _______ strategy increases sales by introducing new products into new markets.

diversification

Assessing and interpreting the information found in environmental scanning is called ________.

environmental analysis

Through a process called _______, marketers collect and evaluate information about the marketing environment.

environmental scanning

A company employing a _______ strategy would create a new product targeted to its current customers.

product development

Jameson manages a well-known cell phone company. This company has been voted as having the best cell phone service. Consumers appreciate the fact that they can call from almost anywhere in the world and the service still gets through. Jameson knows that the company's product far surpasses that of the competition. One thing has been bothering him, though. In order to put so many resources into ensuring the best service, Jameson has cut back on employees at the firm's customer call center. Recently, consumers have begun complaining about long wait times when they call in with a problem or concern. Although its cell phone service is still considered one of the best, customer satisfaction with the firm's customer service has plummeted. Jameson does not understand why consumers are getting so upset. He believes the exceptional cell phone service more than makes up for long waiting periods and other issues with its customer service. "After all," he says, "They can't have it all. If I invest more in customer service, that means less investment on ensuring the quality of our product offering." Jameson has asked you, a marketing consultant, to give him advice. He cannot understand how a cell phone company with the best product offering in the cell phone service industry could get such low satisfaction ratings simply because the customer service is not up to par. You suggest that Jameson has a narrowly defined view of the company's product offering. You tell Jameson that successful marketers should define their products as what they _____________

do to satisfy customers

high market share in market with high growth

dog

A marketing strategy is stating what is to be accomplished through marketing activities using clear language. It should be measurable.

false

Customers consciously calculate the value of a product in benefits and costs for most purchases.

false

The marketing implementation section of the marketing plan outlines how the company will achieve its objectives.

false

Valerie works at a pharmaceutical firm that develops medicines for rare diseases. The company develops a new medication for a disease that very few people have. In fact, less than 100 people are said to have this disease in the entire country. As a result, the drug will be priced high, but the firm will work closely with insurance companies to get the medicine to the right people without sacrificing much revenue. Her friend Rick, who is taking business classes, tells her that this is too small to be a target market. Is Rick's statement true?

false

The first step in establishing an implementation timetable is to ______________, followed directly by _____________________. .

identify the activities to be performed, determining the time required to complete each activity

The forces in the marketing environment _______.

influence each other

The ability of later market entrants to achieve long-term competitive advantages by not being the first to offer a certain product in the marketplace is called _______.

late-mover advantage

Apple is known for its innovation. It conducts in-depth marketing research to determine what customers want. Its electronic devices are constantly upgraded so customers can purchase the newest models. The company creates buzz around its product offerings by discussing the product months before it is launched. This anticipation builds up until the product is launched, resulting in wide-scale sales that often result in stores selling out of the newest product. Refer to Scenario 1.2. From the information provided about Apple and its marketing strategies, Apple most likely embraces a _______.

market orientation

Denise works as a direct seller for Rodan + Fields. She is determined to sell as many products to as many people as possible. Although she generally has a good relationship with customers, she has been known to be overly aggressive in trying to sell products. She often convinces consumers to purchase more expensive products even after they say they are not interested. As a result of Denise's high sales, she has become a top performer. Recently, however, Denise's sponsor has been informed of complaints that customers have levied against Denise accusing her of "badgering" them into buying products. The sponsor meets with Denise and tells her it is unacceptable to pressure consumers into purchasing items they do not want. Denise's sponsor tells her that it is important for her to determine her customer's needs and then find the product that best meets those needs, regardless of price. She recommends that Denise adopt the _______. In other words, Denise should move from a _______, where she is focused on using her aggressive direct selling talents to maximize profits, toward embracing the more customer-centric _______.

marketing concept; sales orientation; market orientation

A ______________ states what is to be accomplished through marketing activities.

marketing objective

A ______________ is a written document that specifies the marketing activities to be performed to implement and evaluate the organization's marketing strategies.

marketing plan

Google has written down the following: "to organize the world's information and make it universally accessible and useful." This is most likely a part of Google's _______.

mission statement

The strategic planning process begins with the firm's

mission statement, organizational goals

On your advice, Jameson decides to invest more in customer service training and hiring. Satisfaction increases, but not to the level Jameson thinks it should be. He conducts a marketing research study and found that while most consumers like the product, many would like to see additional services available. However, what type of service customers want tends to vary by customer. Jameson has come to believe that customers just do not know how to assess value correctly. Jameson appears to believe that determining value is a(n) _______ process, while in reality the process of assessing value is highly _______.

objective; subjective

In a SWOT analysis, the prospect of entering new markets and launching new products would be listed under _______.

opportunities

Paul owns a small retail store. His store sells local products from farmers and small food and beverage businesses in his store. He has a number of strategic partnerships with different players in the industry and believes his business has the ability to become highly successful. Those customers who have bought from him have become loyal customers and frequently visit the store. The problem is most people do not seem to realize the store exists. He decides to write a marketing plan that will outline the marketing activities he needs to take to spread awareness of his company and attract consumers to his business. Refer to Scenario 2.5. Paul would like his sales for next month to reach $30,000. This is an example of a _______.

performance standard

Apple is known for its innovation. It conducts in-depth marketing research to determine what customers want. Its electronic devices are constantly upgraded so customers can purchase the newest models. The company creates buzz around its product offerings by discussing the product months before it is launched. This anticipation builds up until the product is launched, resulting in wide-scale sales that often result in stores selling out of the newest product. Apple's emphasis on marketing research is used to enhance the ____________ variable of the marketing mix, while its skills at creating buzz for its newest product offering months before its release is an example of the ________________ variable.

product, promotion

In a _______ orientation, companies believe that a good product will sell itself.

production

The three marketing management philosophies are _______.

production, sales, and market orientations

Denise works as a direct seller for Rodan + Fields. She is determined to sell as many products to as many people as possible. Although she generally has a good relationship with customers, she has been known to be overly aggressive in trying to sell products. She often convinces consumers to purchase more expensive products even after they say they are not interested. As a result of Denise's high sales, she has become a top performer. Recently, however, Denise's sponsor has been informed of complaints that customers have levied against Denise accusing her of "badgering" them into buying products. The sponsor meets with Denise and tells her it is unacceptable to pressure consumers into purchasing items they do not want. This involves the ______________ variable of the marketing mix.

promotion

low market share in a market with a high growth

question mark

A(n) _____________ approach is when an organization accepts the environmental forces as uncontrollable, and a(n) __________ approach is when an organization tries to influence or shape the environmental forces.

reactive, proactive

_____________ deepens the buyer's trust in the company, and as the customer's confidence grows, this, in turn, increases the firm's understanding of the customer's needs.

relationship marketing

REI has a 100 percent satisfaction guarantee on its items. It allows customers to return products up to one year after purchase. This is an attempt by REI to reduce what type of cost?

risk

Jim manages a small factory that produces circuit boards. Jim operates from the belief that a good product creates demand. He focuses much of his energy on developing operational efficiencies and increasing output. The company's salesperson Darlene, however, views customer relationships and personal selling as being the highest priority. Between the two of them, the firm has become known for its quality products and excellent customer relationships. Recently, Darlene has found that they have begun to reach market saturation. She is having trouble finding new customers. One solution would be to increase the company's reach, perhaps by opening up locations in other areas. However, she knows this will be expensive. After noticing that many of their customers are planning on expanding and purchasing bigger facilities, Darlene feels that the best option is to increase the company's _______.

share of customer

high market share in a market with low growth

star

Through the process of _______________, a company establishes an organizational mission and formulates goals, a corporate strategy, marketing objectives, and a marketing strategy.

strategic planning

A marketing strategy is the selection of a ___________ and the creation of a ____________ that will satisfy the needs of target-market members.

target market, marketing mix

The strategic planning process begins with _______.

the establishment of the organization's mission and goals

Carefully specified objectives should have all of the following characteristics EXCEPT _______.

to have unspecified end dates

Strategic planning is usually conducted by _______.

top managers

An essential element of communicating with marketing employees is _______.

training

The degree of centralization falls under organizing the market unit—a major part of managing marketing implementation.

true

Elements of product strategy can include all of the following EXCEPT _______.

where the product is sold