Marketing ch 1-5

component lifestyles

the practice of choosing goods and services that meet one's diverse needs and interests rather than conforming to a single, traditional lifestyle

exchange rate

the price of one nation's currency in terms of another nation's currency

product/service differentiation competitive advantage

the provision of something that is unique and valuable to buyers beyond simply offering a lower price than that of the competition

customer value

the relationship between benefits and the sacrifice necessary to obtain those benefits

morals

the rules people develop as a result of cultural values and norms

dumping

the sale of an exported product at a price lower than that charged for the same or a like product in the "home" market of the exporter

Dominican Republic-Central America Free Trade Agreement (CAFTA-DR)

trade agreement instituted in 2005 that includes Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Nicagaura, and the United States.

capital intensive

using more capital than labor in the production process

A (strength/weakness/threat) is (internal/external) to the company and is a limitation that puts the company at a disadvantage.

weakness internal

joint venture

when a domestic firm buys part of a foreign company or joins with a foreign company to create a new entity

multidomestic strategy

when multinational firms enable individual subsidiaries to compete independently in domestic markets

Characteristics of SBU

·A distinct mission and a specific target market ·Control over its resources ·Its own competitors ·A single business or a collection of related businesses ·Plans independent of the other SBUs in the total organization.

recession

a period of economic activity characterized by negative growth, which reduces demand for goods and services

market orientation

a philosophy that assumes that a sale does not depend on an aggressive sales force but rather on a customer's decision to purchase a product; it is synonymous with the marketing concept ·Focusing on customer wants and needs so that the organization can distinguish its product(s) from competitors' offerings ·Integrating all the organization's activities, including production, to satisfy customer wants ·Achieving long-term goals for the organization by satisfying customer wants and needs legally and responsibly

production orientation

a philosophy that focuses on the internal capabilities of the firm rather than on the desires and needs of the marketplace

mission statement

a statement of the firm's business based on a careful analysis of benefits sought by present and potential customers and an analysis of existing and anticipated environmental condition

diversification

a strategy of increasing sales by introducing new products into new markets

relationship marketing

a strategy that focuses on keeping and improving relationships with current customers

SBU (strategic business unit)

a subgroup of a single business or collection of related businesses within the larger organization

floating exchange rate

a system in which prices of different currencies move up and down based on the demand for and the supply of each currency

marketing audit

a thorough, systematic, periodic evaluation of the objectives, strategies, structure, and performance of the marketing organization

Farmers who grow wheat and corn in Australia can export their grains to Japan. However, Japan has limits on the quantity of grain that can be imported into the country. Japan is using _____ to limit trade. a. quotas b. exchange controls c. trade agreements d. tariffs

a. quotas A quota is a limit on the amount of a specific product that can enter a country.

Market-oriented companies are (externally/internally) focused while sales-oriented companies are (externally/internally) focused.

1. externally 2. internally

A market-oriented company targets its products to (everyone/specific groups of people/ the average customer) while a sales-oriented company targets its products to (everyone/specific groups of people/ the average customer)

1. specific groups of people 2. everyone

Marketing is the activity, set of institutions, and processes for creating, 1 , 2 , and exchanging offerings that have 3 for customers, clients, partners, and society at large. 1 a) communicating b) selling c) advertising d) reviewing 2 a) delivering b) pricing c) producing 3 a) use b) value c) meaning

1: communicating 2: delivering 3:value

Corporate social responsibility (CSR)

A business's concern for the welfare of society.

World Trade Organization

A trade organization that replaced the old General Agreement on Tariffs and Trade

greenwashing

Adding a minimal number of green product attributes in order to promote it as green

A(n) _______ can help employees understand what their company considers acceptable behavior. a. code of ethics b. marketing plan c. morality map d. ethics audit

a. code of ethics

the ultimate goal of most market-oriented organizations is to

make a profit by creating customer value, providing customer satisfaction, and building long-term relationships with customers.

Baby boomers

people born between 1946 and 1964

Generation x

people born between 1965 and 1978

Millenials (Generation Y)

people born between 1979 and 1994

generation z

people born between 1995 and 2010

contract manufacturing

private label manufacturing by a foreign company

basic research

pure research that aims to confirm an existing theory or to learn more about a concept or phenomenon

global vision

recognizing and reacting to international marketing opportunities, using effective global marketing strategies, and being aware of threats from foreign competitors in all markets

applied research

research that attempts to develop new or improved products

inshoring

returning production jobs to the United States

american values

self-sufficiency, upward mobility, work ethic, equality, individualism, achievement orientation, helping others, the environment

exporting

selling domestically produced products to buyers in other countries

outsourcing

sending U.S. jobs abroad

countervailing duty

tax on imported goods and services designed to offset a subsidy or other financial assistance given to a foreign exporter by its government that enables the foreign exporter to sell it at an artificially low price in the global market place.

niche comparative advantage

the advantage achieved when a firm seeks to target and effectively serve a small segment of the market

Sales Orientation

the belief that people will buy more goods and services if aggressive sales techniques are used and that high sales result in high profits

cause-related marketing

the cooperative marketing efforts between a for-profit firm and a nonprofit organization

Marketing Opportunity Analysis (MOA)

the description and estimation of the size and sales potential of market segments that are of interest to the firm and the assessment of key competitors in these market segments

Green marketing

the development and marketing of products designed to minimize negative effects on the physical environment or to improve the environment

balance of payments

the difference between a country's total payments to other countries and its total receipts from other countries

societal marketing orientation

the idea that an organization exists not only to satisfy customer wants and needs and to meet organizational objectives but also to preserve or enhance individuals' and society's long-term best interests

sustainability

the idea that socially responsible companies will outperform their peers by focusing on the world's social problems and viewing them as opportunities to build profits and help the world at the same t

Stratgeic planning

the managerial process of creating and maintaining a fit between the organization's objectives and resources and the evolving market opportunities

strategic planning

the managerial process of creating and maintaining a fit between the organization's objectives and resources and the evolving market opportunities

Employees working long hours and enduring sweatshop conditions are a concern in ______. a. contract manufacturing b. joint ventures c. licensing d. exporting

a. contract manufacturing

marketing to african americans

-African Americans believe in strong cultural connections -They expect brands to support social causes, and there is a general expectation that brands reflect their values

Costs can be reduced in a variety of ways:

-Experience curves -Efficient labor -No-frills goods and services -Government subsidies -Product design -Reengineering -Production innovations -New methods of service delivery

factors tend to influence ethical decision making and judgments:

-Extent of ethical problems within the organization -Top management's actions on ethics -Potential magnitude of the consequences -Social consensus -Probability of a harmful outcome -Length of time between the decision and the onset of consequences -Number of people to be affected

Marketing to Hispanics

-Hispanics make up the largest group to use mobile devices for any type of transaction, from banking to watching movies. -Hispanics are heavy social media users -Hispanics are twice as likely as non-Hispanics to purchase the products that they share.

cash cow

-in the portfolio matrix, a business unit that generates more cash than it needs to maintain its market share -It is in a low-growth market, but the product has a dominant market share.

star

-in the portfolio matrix, a business unit that is a fast-growing market leader -have large profits but need lots of cash to finance rapid growth

problem child

-in the portfolio matrix, a business unit that shows rapid growth but poor profit margins -It has a low market share in a high-growth industry. Problem children need a great deal of cash

Marketing to Asian Americans

Asian American eating habits tend to be healthier than those of the rest of the population.

control

In an experiment, the standard that is used for comparison

marketing mix

Product, Price, Place, Promotion

reward services for a company is what type of advantage?

Product/Service Differentiation Competitive Advantage

Moral relativism

The belief that there are no absolute truths, and that morality changes with each new situation.

Mercosur

The largest latin american trade agreement; includes Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Paraguay, Peru, and Uruguay

Gross Domestic Product (GDP)

The sum total of the value of all the goods and services produced in a nation

Foreign Direct Investment

a business investment in a foreign country, either by establishing business operations or by acquiring business assets in that country

virtue

a character trait valued as being good

multinational corporation

a company that is heavily engaged in international trade, beyond exporting and importing

Purchasing power

a comparison of income versus the relative cost of a standard set of goods and services in different geographic areas

Food and Drug Administration (FDA)

a federal agency charged with enforcing regulations against selling and distributing adulterated, misbranded, or hazardous food and drug products

Federal Trade Commission (FTC)

a federal agency empowered to prevent persons or corporations from using unfair methods of competition in commerce

Consumer Product Safety Commission (CPSC)

a federal agency established to protect the health and safety of consumers in and around their homes

countertrade

a form of trade in which all or part of the payment for goods or services is in the form of other goods or services

Group of 20 (G-20)

a forum for international economic development that promotes discussion between industrial and emerging-market countries on key issues related to global economic stability

European Union (EU)

a free trade zone encompassing 28 European countries

Foreign Corrupt Practices Act (FCPA)

a law that prohibits U.S. corporations from making illegal payments to public officials of foreign governments to obtain business rights or to enhance their business dealings in those countries

market development

a marketing strategy that entails attracting new customers to existing products

product development

a marketing strategy that entails the creation of new products for present markets

market penetration

a marketing strategy that tries to increase market share among existing customers

inflation

a measure of the decrease in the value of money, expressed as the percentage reduction in value since the previous year

Uruguay Round

a trade agreement to dramatically lower trade barriers worldwide; created the World Trade Organization

marketing plan

a written document that acts as a guidebook of marketing activities for the marketing manager

he University of Phoenix was an early adopter of internet-based classes while their competitors-such as state universities like the University of Illinois-continued to offer traditional classroom instruction. Recently, the University of Illinois announced plans to discontinue campus-based courses for its master of business administration degree and will provide only web-based or online courses for the degree. In addition, the university is offering a wide range of blended courses and web-based courses for other degree options and general education courses. According to McKinsey and Company's four-stage model of innovation disruption, which stage does the University of Illinois action represent? a. Adapting to the New Normal b. Change Takes Hold c. The Inevitable Transformation d. Signals Amidst the Noise

a. Adapting to the New Normal stage four of the disruption is "Adapting to the New Normal." In this stage, the disruption has reached the point at which companies must accept the fact that the industry has fundamentally changed.

The three general strategies for selecting target markets include which of the following? (Select three) a. Appeal to the entire market with one marketing mix b. Concentrate on one segment with one marketing mix c. Appeal to the entire market with several marketing mixes d. Appeal to multiple market segments using multiple marketing mixes e. Concentrate on multiple market segments with one marketing mix

a. Appeal to the entire market with one marketing mix b. Concentrate on one segment with one marketing mix d. Appeal to multiple market segments using multiple marketing mixes

Small companies that are actively involved in sustainability and social responsibility may seek a _______ certification. a. B Corp b. United Nations Global Compact (UNGC) c. green marketing d. sustainable practices

a. B Corp A B Corp certification is issued by the nonprofit B Lab and is for small companies that are actively involved in sustainability and social responsibility.

Carmen recently did a Google search for recommendations on a fuel efficient, electric, or hybrid sedan, and she noticed that when she checked her Instagram and Pinterest updates, there were now pop-up advertisements for various brands of vehicles like those the Google search revealed. The information about Carmen that Google, Instagram, Pinterest, or her other social media accounts are utilizing to show her these advertisements is known as _______. a. Big Data b. privacy intrusion c. consumer mediated data d. information overload

a. Big Data Big Data includes the actions people take that create digital footprints, such as Google searches, Instagram, and Pinterest interactions.

For a market-oriented firm, the advantages of considering the benefits customers seek include which of the following? (Select three) a. Bolsters creativity and innovation by encouraging employees to come up with new ways to satisfy customers b. Creates efficiencies of scale by only offering one product or service for all customers c. Allows the company to create new products and to modify products due to changing customer needs d. The company remains focused on the customer rather than the products it produces

a. Bolsters creativity and innovation by encouraging employees to come up with new ways to satisfy customers c. Allows the company to create new products and to modify products due to changing customer needs d. The company remains focused on the customer rather than the products it produces

_______ is the cooperative marketing efforts between a for-profit firm and a nonprofit organization. a. Cause-related marketing b. Green marketing c. Social responsibility d. Sustainability

a. Cause-related marketing

Which of the following is NOT true about strategic business units (SBUs)? a. Each SBU shares its mission statement with the parent company. b. An SBU has its own competitors, separate from other SBUs. c. An SBU has control over its resources. d. Each SBU has plans and goals independent of other SBUs in the organization

a. Each SBU shares its mission statement with the parent company.

Deon is VP of marketing with a major beverage company and is reviewing the contracts of several film, media, and television personalities who work with the company. Recently, two of them were involved in controversial activities concerning their political beliefs and have been quite vocal regarding several social justice issues. Deon is considering canceling their contracts because it is difficult to establish that their personal views are not the views of his company. Which exchange criteria most directly relates to Deon's cancellation of these sponsorships? a. Each party believes it is appropriate or desirable to deal with the other party. b. Each party is free to accept or reject the exchange offer. c. Each party has something that might be of value to the other party. d. There must be at least two parties.

a. Each party believes it is appropriate or desirable to deal with the other party.

_______ regulates international trade among importing organizations by restricting access to foreign currencies, while _______ is a deal to stimulate trade. a. Exchange control; trade agreement b. Trade agreement; boycott c. Quota; market grouping d. Tariff; quota

a. Exchange control; trade agreement

Captiva designs and manufactures a line of swimsuits for active women pursuing surfing, sailing, and other water sports. The brand is becoming popular since it is designed by women and is perfect for active lifestyles. Captiva uses its website to fulfill orders from women around the world but has its offices in the United States. Which stage of global business best describes Captiva's operations? a. First stage b. Third stage c. Fourth stage d. Second stage

a. First stage In the first stage, companies operate in one country and sell into others.

Over the last 30 or so years, Toyota, a Japanese firm has made a considerable investment in the United States and has several manufacturing plants where it produces vehicles for the U.S. market. Its two plants in Kentucky make the Camry, Lexus ES 350, and Avalon. A plant in Texas produces its truck line— the Tundra and Tacoma. In total, Toyota annually produces more than 1.2 million vehicles in the United States. Which method of global marketing best describes Toyota's manufacturing operations in the United States? a. Foreign direct investment b. Contract manufacturing c. Licensing d. Franchising

a. Foreign direct investment Foreign direct investment occurs when a business in one country invests in a business interest in another country. This usually takes the form of active ownership of a foreign company or of overseas manufacturing or marketing facilities.

The American Medical Association and the American Bar Association discourage their members from using advertising to promote their businesses. Listings of services on a web page are acceptable. However, television, radio, or the use of other media to advertise services is frowned upon. What mode of social control does this represent? a. Formal groups b. Laws c. Media d. Active civil society

a. Formal groups

Which of the following are reasons for failing to achieve a marketing objective? (Select four) a. Inappropriate marketing strategies in the plan b. Unrealistic marketing objectives c. Insufficient budget to implement objectives d. Changes in the environment after the objective was specified e. Poor implementation

a. Inappropriate marketing strategies in the plan b. Unrealistic marketing objectives d. Changes in the environment after the objective was specified e. Poor implementation

Which of the following is true of an exchange? a. Marketing can occur even if an exchange does not take place. b. Money must be traded for the product or service being sold. c. If all the conditions exist, an exchange will take place. d. There must be more than two parties for an exchange to take place.

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

Which of the following is true of marketing? a. Marketing efforts are performed by many departments in an organization. b. Marketing has occurred only if a product is sold. c. Fostering long-term relationships with customers is not part of marketing. d. The goal of marketing is to advertise products.

a. Marketing efforts are performed by many departments in an organization.

_______ says that a person's individual environment shapes their moral obligations and beliefs. a. Moral relativism b. Rule utilitarianism c. Deontological theory d. Virtue ethics

a. Moral relativism Moral relativism says that a person's individual environment shapes their moral obligations and beliefs. These beliefs are often based on culture.

Which of the following are ways that a company choosing a cost competitive advantage can reduce costs? (Select three) a. Reverse engineering competitors' products b. Choosing a niche market for its products c. Utilizing technology to reduce production costs d. Outsourcing low-skill, labor-intensive tasks e. Focusing on a unique aspect of its product

a. Reverse engineering competitors' products c. Utilizing technology to reduce production costs d. Outsourcing low-skill, labor-intensive tasks

Patagonia emphasizes its commitment to the environment and sustainability in its products by offering high levels of transparency, so consumers know where every product is made and how materials are sourced. In addition, Patagonia encourages its consumers to return or donate unwanted products, hoping to inspire consumers to be concerned with conservation efforts. Which marketing management philosophy best applies to Patagonia? a. Societal marketing orientation b. Sales orientation c. Market orientation d. Production orientation

a. Societal marketing orientation

Coca-Cola has a variety of strategic business units (SBUs) in its beverage business. Zico is a line of coconut water that is available in several flavor options and package sizes. Due to its healthfulness and the advantage of having no added sugar, Zico products have a dominant share of the market and are expected to continue to grow. How would Zico be classified according to the Boston Consulting Group model? a. Star b. Dog c. Problem child d. Cash cow

a. Star Zico would be classified as a star because of its high growth and high market share.

Danika is working on a marketing plan for her hair salon, which she has operated for 10 years. She is experienced and knows her market and her customers well. Danika has written down the following statement: "Increase revenue from nail services to $25,000 in the next year." Which statement about marketing objectives is true of Danika's statement? a. The objective statement is realistic, measurable, and time specific, but does not include any benchmark comparison. b. The objective statement is realistic and time specific, but fails to include details regarding a benchmark or quantitative measurement. c. The objective statement is measurable and time specific, but fails to be realistic or include a benchmark comparison. d. The objective statement meets all guidelines, as it is realistic, measurable, time specific, and compares to a benchmark.

a. The objective statement is realistic, measurable, and time specific, but does not include any benchmark comparison. The objective statement is realistic, measurable, and time specific, but does not include any benchmark comparison.

Which of the following statements is true in regards to ethical decision-making? a. When the length of time between a decision and the onset of consequences is shorter, marketers will perceive the problem as unethical. b. Occurrences of ethical misconduct are increased when there is a strong ethical culture among coworkers. c. Marketers are more likely to view a problem as unethical when there are fewer people impacted by a negative outcome. d. Organizations that have a strong ethical culture are more likely to have employees who perform unethical acts.

a. When the length of time between a decision and the onset of consequences is shorter, marketers will perceive the problem as unethical. When the length of time between a decision and the onset of consequences is shorter, marketers will perceive the problem as unethical.

Direct foreign investment can occur through _______. a. acquisition of a foreign company or building an international division b. granting permission to a foreign company to use your trademark, patent, or process c. sharing the risks, costs, and management of the foreign operation with one or more partners d. assigning production of goods and services to a foreign company

a. acquisition of a foreign company or building an international division

A firm that conducts research attempting to develop new or improved products is conducting _______. a. applied research b. basic research c. disruptive innovation d. technology

a. applied research

Hoover manufactures vacuums and wanted to expand its manufacturing capabilities. Hoover contracted with an India-based firm and invested funds to provide technology and equipment in a new manufacturing plant in Mumbai. In exchange, Hoover received vacuums that were produced in India and could be sold worldwide. This practice is called _______. a. countertrade b. joint venture c. global partnering d. dumping

a. countertrade

Pranav works for a German company that provides components for automobiles. He is preparing for a trip to China to meet with car manufacturers and had a short session on business etiquette. One recommendation regarded the presentation of business cards. The recommendation stated that it's a much more formal process in China and that it was important to use two hands when presenting a card to another person. Pranav is learning about the importance of _____ in global business. a. culture b. economics c. regulations d. demographics

a. culture

Post is a manufacturer of many popular consumer cereal brands, from healthy and hearty varieties such as Bran Flakes to brands catering to those with a sweet tooth, like Oreo O's. Post's Shredded Wheat cereal has been a staple in many homes for decades but now has a low market share, and its prospects for market growth are also low. According to the Boston Consulting Group Model, Shredded Wheat would be classified as a _______. a. dog b. problem child c. star d. cash cow

a. dog

Companies producing solar panels for roof installations in residential or commercial application have benefited from government assistance in the form of grants to encourage owners to invest in solar technology. Unfortunately, one of the early entrants to solar roof panels went bankrupt and was unable to emerge from bankruptcy proceedings. According to the pyramid of corporate social responsibility, the company failed to meet its _______ responsibilities. a. economic b. philanthropic c. legal d. ethical

a. economic The economic responsibilities on the corporate social responsibility pyramid include being profitable, as profit is the foundation upon which all other responsibilities rest.

Buckle retail outlet stores are typically located in major and regional indoor shopping centers. Buckle's products appeal to customers who enjoy dressing in the latest denim and casual fashion. The sales associates are trained to deliver a high level of customer service, offering suggestions on sizing, selection, and putting outfits together. In addition, associates assist with after-sale service and are able to handle returns and provide money back or store credit if a customer does not have their sales receipt. Thus, sales associates are _______ to do what's necessary to assure customer satisfaction and loyalty, since they have authority to solve customer problems on the spot. a. empowered b. motivated c. licensed d. mandated

a. empowered Buckle has empowered employees by giving them authority to solve customer problems on the spot.

Many individuals and businesses use social media platforms such as Facebook, Instagram, and Pinterest to facilitate _______, which is the opportunity to satisfy a person's desire for a good or service through bartering, trade, or financial compensation. a. exchange b. minimalism c. customer satisfaction d. materialism

a. exchange

Methodist Hospital recently completed a five-year strategic plan. It has recently appointed ten managers from various departments to serve on a task force. These managers will oversee the _______ of the marketing plan by delegating assignments, identifying the timing of tasks, and allocating resources to various departments. a. implementation b. control c. post-audit process d. evaluation

a. implementation Implementation is the process that turns a marketing plan into action assignments and ensures that these assignments are executed in a way that accomplishes the plan's objectives

In the GE model, the appropriate action for areas of the matrix with high attractiveness is _______. a. invest/grow b. cautiously invest c. harvest/divest d. grow/harvest

a. invest/grow print model

A company that allows its individual subsidiaries to compete independently in domestic markets with unique or slightly varied products is using a _______. a. multidomestic strategy b. multi mix strategy c. marketing variation strategy d. global marketing standardization strategy

a. multidomestic strategy

Recent advertisements by McDonald's feature a young employee who graduates high school and is accepted to college. It also shows her receiving an educational grant from the company to support her education. Based on the pyramid of corporate social responsibility, McDonald's is fulfilling its _______ responsibilities. a. philanthropic b. economic c. ethical d. legal

a. philanthropic

Remote geographic locations such as the Bahamas must rely on imported goods since the country cannot produce everything it needs. However, the Bahamas is well known for its cigars and rum, which are exported around the world. The principle that captures this example of goods imported to the Bahamas and exported from the Bahamas is called the _______. a. principle of comparative advantage b. principle of global trade c. principle of global vision d. principle of absolute advantage

a. principle of comparative advantage The principle of comparative advantage states that each country should specialize in the products and services it can produce most readily and cheaply and trade those products and services for goods and services that foreign countries can produce most readily and cheaply.

A company that alters a basic product to fit in a local market is using a _______ strategy. a. product adaptation b. promotion adaptation c. straight extension d. product invention

a. product adaptation

The four marketing management philosophies are _______. a. production, sales, market, and societal marketing orientations b. production, price, market, and socially responsible orientations c. sales, distribution, market, and consumer-focused orientations d. sales, price, distribution, and societal marketing orientations

a. production, sales, market, and societal marketing orientations

Four Roses produces bourbon in Kentucky. It has a growing export business due to the global popularity of the beverage. Some countries, such as China, impose tariffs on bourbon produced in the United States to strengthen their own domestic brands. This strategy is known as _______. a. protectionism b. nativist c. relativism d. isolationism

a. protectionism Protectionism is the opposite of free trade in which nations protect their home industries from foreign competition by establishing artificial barriers such as tariffs and quotas.

Zion Pharma is the manufacturer of a prescription antibiotic and has been accused of using aggressive marketing tactics to increase sales. Zion Pharma has employed sales representatives who meet individually with a variety of physicians and pharmacists to encourage the prescribing of the brand, which is priced higher than similar medications. Based on this information, it is clear that Zion Pharma has embraced a _______ orientation as a marketing management philosophy. a. sales b. societal marketing c. production d. market

a. sales

Jeasen Senior Living provides assisted living communities across the United States. The company focuses on the importance of its residents' desires to maintain their independence and ability to care for themselves in a supportive environment. By recognizing individuals' desires to be independent, Jeasen Senior Living is responding to an important element of the external environment, known as _______factors. a. social b. competitive c. demographic d. technological

a. social Social factors include attitudes, values, and lifestyles.

A company chooses to use the same product in every foreign market that it serves and does not alter any promotional messaging. The company is using a _______ strategy. a. straight extension b. promotion adaptation c. product adaptation d. product invention

a. straight extension

Carefully specified objectives should have all of the following characteristics EXCEPT _______. a. to have unspecified end dates b. to provide motivation to employees c. to be consistent with the firm's mission statement d. to guide marketing strategies and tactics for the organization

a. to have unspecified end dates

The innovation matrix identifies three levels of change and innovation. They include _______, _______, and _______. (Select three) a. transformational innovation b. revolutionary innovation c. fundamental innovation d. adjacent innovation e. core innovation

a. transformational innovation d. adjacent innovation e. core innovation

Sustainable Competitive Advantage

an advantage that cannot be copied by the competition

buyer for export

an intermediary in the global market that assumes all ownership risks and sells globally for its own account

export agents

an intermediary who acts like a manufacturer's agent for the exporter; the export agent lives in the foreign market

Export broker

an intermediary who plays the traditional broker's role by bringing buyer and seller together

International Monetary Fund (IMF)

an international organization that acts as a lender of last resort, providing loans to troubled nations, and also works to promote trade through financial cooperation

social control

any means used to maintain behavioral norms and regulate conflict

Capital Finance provides investment consulting services to businesses. It has contracts with several companies around the globe, including companies in Thailand, Australia, and India. The Internet has enabled Capital Finance to serve customers around the globe. It is estimated that _____ percent of global trade is facilitated by digital technology. a. 20 b. 50 c. 75 d. 25

b. 50

Setting goals, planning, and measuring results are keys to getting things done. This describes which American value? a. Self-sufficiency b. Achievement orientation c. Individualism d. Work ethic

b. Achievement orientation

Which generational cohort accounts for the majority of prescription drug sales? a. Generation Z b. Baby Boomers c. Millennials (Generation Y) d. Generation X

b. Baby Boomers

Carlos is an account executive for a paint company. He typically meets with home builders and contractors to discuss wall finishes in their new or remodeled homes. One builder, Robbie, confidentially mentions that he has just received a contract from a developer to build five homes in a new subdivision. Carlos is surprised to hear this since another client of his, Alba, had expected to receive the contract. After meeting with Robbie, Carlos sends Alba a text message with the news about Robbie receiving the contract. Which of the following best explains this interchange between Carlos, Robbie, and Alba? a. Carlos has enhanced his relationship with both Robbie and Alba. b. Carlos has committed an ethical violation. c. Carlos has deceived Alba by providing information about Robbie's business. d. Carlos has committed an illegal act.

b. Carlos has committed an ethical violation. Carlos has committed an ethical violation. Ethics consist of unwritten rules developed to guide interactions with others, such as sharing resources or honoring contracts.

Cabi is a women's fashion clothing brand based in Los Angeles, California. Cabi's design team in Los Angeles creates its fashion line sixteen months to two years in advance. The design team selects fabrics and other details to create the clothes. Cabi then hires manufacturers in China to produce the items according to the specifications. Once completed, the garments are shipped to California on container ships that take up to two months in transit. It's a complex process but one that enables Cabi to control costs. Which method is Cabi using to engage in global marketing? a. Joint venture b. Contract manufacturing c. Licensing d. Franchising

b. Contract manufacturing Contract manufacturing is private-label manufacturing by a foreign company. The foreign company produces a certain volume of products to specification, with the domestic firm's brand name on the goods. The domestic company usually handles the marketing.

Gillette is best known for its line of products for men's shaving, such as razors, blades, and shaving foam. Gillette also has deodorant and body wash, but the company has noticed that Gillette body wash for men is in a low-growth market. Its market share is low as well. The company is considering how best to allocate resources across the company. Which strategy would you recommend Gillette implement for the body wash line? a. Promote b. Divest c. Hold d. Build

b. Divest Divest is correct since getting rid of SBUs with low shares of low-growth markets is often appropriate. Since the body wash is classified as a dog, divesting is the most appropriate strategy.

Latosha is a pricing analyst with Staples who enjoys participating in company-sponsored events that contribute to the community. Recently she participated in a one-day event with other employees from the corporate headquarters to pack food for the Meals on Wheels organization. Which of the following is a benefit to companies that participate in socially responsible programs? a. Increase in advertising expenditures b. Increase in employee satisfaction c. Increase in government regulations d. Increase in employee training costs

b. Increase in employee satisfaction There are many benefits to companies that pursue socially responsible programs, including an increase in employee satisfaction, which leads to improved customer service.

Paul owns a company specializing in fertilizer and pesticide application in agricultural production, and he typically uses his fleet of airplanes to spray the fields. Recently, his sprayer malfunctioned, and pesticide was dumped in a local reservoir that provides drinking water to residents. Paul notified the water company, which posted a boil order for residents. In addition, Paul was fined for polluting the water. What stakeholders were most affected by the malfunctioning equipment incident? a. Management b. Local community c. Suppliers d. Employees

b. Local community

Which of the following statements is an argument AGAINST corporate social responsibility? a. Being socially responsible can have a positive impact on the firm. b. Management that focus on being socially responsible are spending shareholders' money to further their own agendas. c. Societal problems are caused by organizations and should therefore be fixed by those organizations. d. If businesses do not act socially responsible, government will create new regulations and levy fines against them.

b. Management that focus on being socially responsible are spending shareholders' money to further their own agendas.

Simon is a sales representative with McKesson who works with independent and chain drug stores to provide branded and private label over-the-counter medications, as well as a host of other supplies. Simon can match his customers' requirements to his broad product mix, and he also provides insights about what's selling in the marketplace so that store managers can make decisions about the allocation of shelf space. The approach is working, and Simon has been able to achieve his sales goals while also earning high customer satisfaction scores from his customer accounts. Which marketing management philosophy best applies to McKesson? a. Sales orientation b. Market orientation c. Production orientation d. Societal marketing orientation

b. Market orientation

Which is true of the competitive market? (Select three) a. Marketers must consider only domestic markets when thinking about competitors. b. Marketers must consider the size of the competitors in their industry. c. Marketers must consider the degree of interdependence within the industry. d. Marketers must consider the number of competitors within their industry. e. Marketers cannot be concerned with competitors of substitute products.

b. Marketers must consider the size of the competitors in their industry. c. Marketers must consider the degree of interdependence within the industry. d. Marketers must consider the number of competitors within their industry.

Fernanda is a marketing professional who majored in marketing in college. She often feels like she's a demanding customer when she visits a restaurant, retail outlet, or other business, because she critiques the service she receives and hopes to be treated in such a way as to be satisfied and feel valued as a customer. Which of the following reasons to study marketing captures Fernanda's customer expectations? a. Marketing plays an important role in society. b. Marketing can be used in everyday life. c. Marketing offers outstanding career opportunities. d. Marketing is important to business.

b. Marketing can be used in everyday life.

Delivering products to customers at the right time, in the right place, and at the right price is illustrated by which of the following reasons to study marketing? a. Marketing offers excellent career opportunities. b. Marketing plays an important role in society. c. Marketing is important to businesses. d. Marketing impacts your everyday life.

b. Marketing plays an important role in society.

The World Trade Organization (WTO) aims to do which of the following? (Select three) a. Adopt a common currency b. Monitor national trade policies c. Mediate trade disputes d. Offer low-interest loans e. Serve as a forum for trade negotiations

b. Monitor national trade policies c. Mediate trade disputes e. Serve as a forum for trade negotiations

Caterpillar is a manufacturer of heavy equipment. The company imports steel parts such as buckets for end loaders from China. Once the products arrive from China, Caterpillar must remove rust from the items that developed during ocean transport. What area of the marketing mix best characterizes this issue related to the imported steel parts? a. Promotion b. Place c. Product d. Price

b. Place Place or distribution strategies are concerned with making products available when and where customers want them. A part of this is physical distribution, which involves all the business activities concerned with storing and transporting raw materials or finished products.

Boxfit for Everyone is a locally owned fitness facility featuring cross training classes incorporating boxing drills. They offer group classes twice daily at 7 a.m. and 6 p.m. since those are the preferred times for their instructors, who also work full-time in professional jobs. Based on this information, which marketing management philosophy best describes Boxfit for Everyone? a. Market orientation b. Production orientation c. Sales orientation d. Societal marketing orientation

b. Production orientation Boxfit for Everyone is displaying a production orientation, a philosophy focusing on the internal capabilities of the firm rather than on the desires and needs of the marketplace. Boxfit's group classes are scheduled based on the availability of its instructors rather than the needs of its customers.

Market-oriented companies create long-term relationships with customers by doing which of the following? a. Offering products that are high-priced b. Providing value to customers c. Concentrating marketing efforts to the marketing department d. Primarily using salespeople to inform customers about products

b. Providing value to customers

The _______ prohibits price discrimination in sales to wholesalers, retailers, or other producers. a. CAN-SPAM Act b. Robinson-Patman Act c. Wheeler-Lea Act d. Sherman Antitrust Act

b. Robinson-Patman Act

Which group of stakeholders in an organization expects good citizenship from the firm and benefits from the taxes paid by corporations and workers? a. Owners/stockholder b. The local community c. A supplier d. A customer

b. The local community The local community expects good citizenship from the firm and benefits from the taxes paid by corporations and workers.

Which of the following are influenced by social factors? (Select three) a. The consumer's age b. The products people buy c. Federal legislation d. The prices people are willing to pay e. If specific promotions are effective

b. The products people buy d. The prices people are willing to pay e. If specific promotions are effective

Which of the following strategies would be most appropriate for a market-oriented firm? a. Producing products that customers want and need while considering society's best interests in order to meet organizational objectives b. Understanding what products and services customers want and need and offering those in order to meet organizational objectives c. Hiring a sales force to aggressively sell the products the company produces in order to meet organizational objectives d. Producing a product that matches the firm's capabilities in order to meet organizational objectives

b. Understanding what products and services customers want and need and offering those in order to meet organizational objectives

Volkswagen is concerned about the effects of climate change and how the use of fossil fuels is contributing to these changes. As a result, VW has made a commitment to focus on electric vehicles and to produce 22 million such vehicles in the next 10 years. Which ethical theory best describes Volkswagen's decision to focus on electric vehicles? a. Moral relativism b. Utilitarianism c. Social compact d. Deontology

b. Utilitarianism Utilitarian principles support acting in a way that yields the greatest benefit to the most people. This is correct since producing electric vehicles will positively impact society

Pedro Rodriguez is the CEO of a major hospital. He believes in the importance of transparency, honesty, cultivating trust through collaboration, and that all members of the hospital must act in ways that demonstrate caring and compassion to patients. It is well known that medical errors occur in the hospital setting, but no laws require that patients be informed if an error has occurred. However, Pedro has established a hospital policy that all medical errors must be disclosed as soon as possible to patients and/or their families. Which ethical theory best describes the CEO's decision to disclose medical errors? a. Deontology b. Virtue ethics c. Moral relativism d. Social compact

b. Virtue ethics The CEO is following a virtuous or "good" trait by disclosing medical errors to patients.

Strategic marketing management addresses which of the following questions? (Select two) a. Who is the company's target market? b. What is the organization's main activity at a specific time? c. Where will the company sell its product to consumers? d. How will the company reach its goals? e. What promotional activities will the company utilize?

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

A disadvantage of a sales orientation is _______. a. that production expenses will rise as sales rise b. a lack of understanding customers' wants and needs c. the expense of hiring a sales force d. constantly assessing competitors' actions

b. a lack of understanding customers' wants and needs

A company considering culture when marketing a product in a foreign country would want to be sure that promotional messages _______, _______, and _______. (Select three) a. do not disrupt the balance of trade b. are translated correctly c. reflect the country's social values d. convey the intended meaning e. consider consumer income

b. are translated correctly c. reflect the country's social values d. convey the intended meaning

Khalid was recently hired as an intern in a marketing company. He was given a copy of the company's employee handbook, which identified the expectations for employees and the standards of proper or acceptable behavior, including the standard of dress, the amount of time given for breaks and lunch, guidelines for using company materials such as the copy machine, and the importance of being courteous and civil to all. The employee handbook provides guidance about the _______ of the company. a. social expectations b. behavioral norms c. social contract d. laws

b. behavioral norms

A production orientation is successful when _______. a. competition is high, and the company offers the highest quality product b. consumer wants and needs match what the company can best produce c. the company strives to produce environmentally friendly products d. consumers are easily swayed by advertisements and personal selling

b. consumer wants and needs match what the company can best produce

Apple recently announced that it was investing billions to build a new manufacturing facility near its headquarters in California to produce screens for computers, tablets, and smartphone devices. This investment is part of Apple's strategy to control all component parts of its products and to return production to the United States, a process called _______. a. repatriation b. inshoring c. localism d. outsourcing

b. inshoring Inshoring or reshoring is the act of returning production jobs to the United States.

A control device that marketing managers use is a _______. a. strategic planning dashboard b. marketing audit c. post-plan review d. periodic evaluation assessment

b. marketing audit

Successful relationship marketing strategies depend on all the following EXCEPT _______. a. teamwork b. offering high-quality products c. empowering employees d. training employees in customer service

b. offering high-quality products

In a SWOT analysis, the prospect of entering new markets and launching new products would be listed under _______. a. threats b. opportunities c. strengths d. weaknesses

b. opportunities

Pedro, owner of the BoxFitness club, is conducting a situation analysis. He recently read an article about how research has shown that individuals who have Parkinson's disease can benefit from an exercise regimen that involves boxing. The benefits of boxing for Parkinson's patients would be classified as a(n) _______. a. strength b. opportunity c. weakness d. threat

b. opportunity

ExxonMobil has many different divisions and departments in its global operations, including public relations, publicity, pricing, supply chain, sales, and research and development. These groups work to ensure that all stakeholders are receiving the desired value and benefits from their relationship with the company. This example demonstrates that ExxonMobil has embraced the facet of marketing concerned with _______. a. a management orientation b. organizational functions and processes c. a profit maximization orientation d. marketing as a philosophy Hide Feedback

b. organizational functions and processes Marketing has two facets, and this example demonstrates the facet related to organizational functions and a set of processes

Coca-Cola has a variety of strategic business units (SBUs) in its beverage business. Glaceau Vitamin Water is in a high-growth market due to customer trends away from carbonated beverages. However, Coca-Cola has a low market share of the bottled water segment. Thus, Glaceau Vitamin Water would be classified as a _______ according to the Boston Consulting Group model. a. cash cow b. problem child c. dog d. star

b. problem child

Dollar General operates midsized retail stores in rural towns. It has been expanding the variety of products available in its stores. Some locations now offer fresh produce and an increased assortment of fresh or frozen food items. Dollar General hopes the addition of new products will lead existing customers to purchase more items when they shop, which will in turn increase revenues for the chain. This is an example of the _______ strategic alternative according to Ansoff's matrix. a. market development b. product development c. diversification d. market penetration

b. product development This is an example of product development, which is increasing market share among existing customers through the development of new products.

Raymond Plumbing is a small, independently owned business providing plumbing services to residential and commercial customers. The company recently received B Corp certification. It also funds a scholarship at the local trade union for students to complete their educational requirements to become plumbers. Raymond Plumbing's commitment to education in its local community is an example of _______ sustainability. a. economic b. social c. financial d. environmental

b. social Social sustainability means developing processes and structures that not only meet the needs of the current community but benefit future generations as well

Harvesting is an appropriate strategy for all the following products or SBUs EXCEPT _______. a. problem children b. stars c. cash cows d. dogs

b. stars Companies that use a harvest strategy aim to reap profits from the product or SBU without concern for the long-run impact. This strategy is appropriate for problem children, cash cows, and dogs.

Marco is the owner of Salon Concepts, which offers nail, hair, and massage services. Marco wants to increase revenues and decides to offer new services to men, focusing on shaving, beard or mustache care, and barber services. Marco believes these new services will enable the salon to grow and maintain profitability over time. In launching grooming services for men, Marco has made a(n) _______ decision. a. developmental b. strategic c. tactical d. innovative

b. strategic

Darden Restaurants is well known for its famous restaurant brands, including Olive Garden, Seasons 52, Bahama Breeze, and LongHorn Steakhouse. Each of these restaurant operations maintains a distinct mission and target market, and they are run as independent businesses. Thus, they are considered _______. a. captive businesses b. strategic business units c. franchise operations d. wholly owned subsidiaries

b. strategic business units

Elements of product strategy can include all of the following EXCEPT _______. a. the physical good b. where the product is sold c. package design d. an intangible idea

b. where the product is sold

cost competitive advantage

being the low-cost competitor in an industry while maintaining satisfactory profit margins

Many customers appreciate the benefits of joining Amazon's Prime membership program that provides free shipping on many products. However, some products on Amazon's site are sold by companies outside the United States and are not eligible for Prime shipping since they are shipped directly by the exporter. Which of the following statements is true regarding Amazon and the suppliers who export their items? a. Amazon's customers must make payments in foreign currency. b. Amazon has little control over the items available in its marketplace. c. Amazon's marketplace has enabled many small firms to participate in global business. d. Amazon takes possession of foreign products and stocks them in U.S. distribution centers.

c. Amazon's marketplace has enabled many small firms to participate in global business. The Internet has enabled companies to participate in the global marketplace. Amazon's marketplace has facilitated this for many companies

_______ aims to expand knowledge, not to develop new or improved products. a. Disruptive innovation b. Applied research c. Basic research d. Technology

c. Basic research

A lighting company has developed a line of security lights that consumers can place at the entrances to their homes. Key features include motion sensing to automatically turn on the light, and notification via smartphone with video. The product is in a high-growth market as people are interested in safety, security, and monitoring their home from wherever they might be. However, the company has a low market share. What strategy would you recommend the company implement for the smart security light line? a. Divest b. Promote c. Build d. Hold

c. Build

A stop at the grocery store cereal aisle can be overwhelming, with seemingly hundreds of varieties of cereal available. Post has more than 20 brands of cereal in its consumer products division, such as Pebbles cereal, which has a high market share but is in a low-growth market, as consumers now favor more natural cereal products with less added sugar. How would Pebbles cereal be classified according to the Boston Consulting Group model? a. Dog b. Problem child c. Cash cow d. Star

c. Cash cow Pebbles would be classified as a cash cow since it has a dominant share of the market but is in a low-growth market.

_______ provides the mechanisms for evaluating marketing results in light of the plan's objectives and for correcting actions that do not help the organization reach those objectives within budget guidelines. a. Implementation b. Evaluation c. Control d. Planning

c. Control

Which ethical theory says that when people are faced with an ethical dilemma, they should focus on their duties or responsibilities? a. Casuist ethical theory b. Moral relativism c. Deontological theory d. Utilitarian ethical theory

c. Deontological theory

Aisha is an account representative with Southern Spirits, a distributor of wine, beer, and other alcoholic beverages. She has thousands of brands and varieties of products to offer retailers, restaurants, convenience stores, and other business buyers in her territory. However, some of her wines are in very limited supply. For example, the warehouse that serves her geographic territory may only get one or two cases of some wines. Thus, Aisha must decide how to best allocate these limited varieties. Aisha provides the most time and attention to her high-volume customers since their purchases contribute the most to her salary. As part of her service to the largest accounts, she has decided to give them first choice in purchasing the limited wines. Which ethical theory best characterizes Aisha's decision? a. Casuist b. Virtue ethics c. Deontology d. Utilitarianism

c. Deontology Deontological theory states that people should adhere to their obligations and duties when analyzing an ethical dilemma. Aisha's belief in obligation and duty is to serve her largest clients

Misty is an account manager for a marketing firm that provides creative services to business clients. Projects are typically billed on an hourly basis. Misty coordinates with creative team members, media schedulers, and researchers to address her clients' needs. At a previous firm, Misty believed that many employees over-billed their services and did not accurately bill for their time. However, she can now trust all employees to submit accurate time statements and has not heard of anyone violating this practice. Which factor influencing ethical decision making is demonstrated in this example? a. Probability of a harmful outcome b. Top management's actions on ethics c. Extent of ethical problems within the organization d. Number of people to be affected

c. Extent of ethical problems within the organization This is an example of the extent of ethical problems within an organization. The healthier the ethical environment of a company, the more likely it is that marketers will take a strong stand against questionable practices.

_______ means recognizing and reacting to international marketing opportunities, using effective global marketing strategies, and being aware of threats from foreign competitors in all markets. a. Absolute advantage b. Free trade c. Global vision d. Comparative advantage

c. Global vision

Miguel lives in Mexico and is studying at a university in Monterrey. He's interested in studying abroad and chooses a program in Angers, France that is approved by his university. He's interested in learning more about the city of Angers and locates a website sponsored by the local tourism board. Miguel doesn't read or speak French. Which of the following could most easily help Miguel use the tourism website? a. A friend who knows French b. A French language dictionary c. Language translation software d. An English language option directly on the website

c. Language translation software

Which reason to study marketing supports the idea that, as a consumer, you will better understand the buying process? a. Marketing is important to businesses. b. Marketing plays an important role in society. c. Marketing impacts your everyday life. d. Marketing offers excellent career opportunities.

c. Marketing impacts your everyday life.

_______ occurs when a company defines its business in terms of goods and services rather than in terms of the benefits customers seek. a. Planning b. Marketing orientation c. Marketing myopia d. Mission bias

c. Marketing myopia Marketing myopia occurs when a company defines its business in terms of goods and services rather than in terms of the benefits customers seek.

State Farm Insurance Company noticed a suspicious increase in claims due to flooding as a result of one Whirlpool washing machine model made. Apparently, the high-velocity spinning mode on this particular machine would begin too soon, resulting in a malfunction and an overflow of water. State Farm reported this information to Whirlpool, which immediately acted to notify its retailers and consumers by issuing a recall on the model to correct the problem. The voluntary recall served to prevent future accidents and damage to consumers' homes that State Farm estimated could be up to $6,000 per customer. Which factor influencing ethical decision making is demonstrated in this example? a. Top management's actions on ethics b. Extent of ethical problems within the organization c. Probability of a harmful outcome d. Social consensus

c. Probability of a harmful outcome

Many companies have been fined for violating regulations or laws such as those against insider trading. A company can encourage ethical behavior by offering a code of ethics as a guideline to help employees make better decisions. Which statement is true regarding the advantages of a company code of ethics? a. Discourages communication about what is right and wrong b. Increases firm profitability c. Provides an effective internal control of behavior d. Provides an effective external control of behavior

c. Provides an effective internal control of behavior One advantage of a company code of ethics is that it provides an effective internal control of behavior, which is more desirable than external controls.

Which of the following are factors that influence the economic environment? (Select three) a. Demographics b. Generational cohort c. Purchasing power d. Inflation e. Recession

c. Purchasing power d. Inflation e. Recession Factors that influence the economic environment include consumers' incomes, purchasing power, inflation, and recession.

Which of the following statements is true regarding effective strategic planning? a. Strategic planning is necessary every two years. b. Sound strategic planning is based on managers' assumptions about the firm and its competition. c. Strategic planning requires top management's support and participation. d. Strategic planning is not needed when the external environment is stable and unchanging.

c. Strategic planning requires top management's support and participation.

_______ is the idea that socially responsible companies will outperform their peers by focusing on the world's social, economic, and environmental problems. a. Green marketing b. B Corp certification c. Sustainability d. Recycling

c. Sustainability Sustainability is the idea that socially responsible companies will outperform their peers by focusing on the world's social, economic, and environmental problems.

Which legislation created the Consumer Financial Protection Bureau (CFPB) to oversee checking accounts, private student loans, mortgages, and other financial products? a. The Sherman Antitrust Act b. The Wheeler-Lea Act c. The Dodd-Frank Wall Street Reform and Consumer Protection Act d. Federal Trade Commission Act (FTC)

c. The Dodd-Frank Wall Street Reform and Consumer Protection Act

Cristóbal recently purchased a new Ford F150 pickup truck and is now trying to sell his used truck with 180,000 miles on the odometer on eBay. He has created a listing including photos, and he decides to use eBay's "Buy It Now" feature rather than an auction. The truck has been listed for several weeks, but so far no one has contacted him about it. Which condition of exchange most directly relates to Cristóbal's eBay listing for his truck? a. Each party has something that might be of value to the other party. b. Each party is free to accept or reject the exchange offer. c. There must be at least two parties. d. Each party believes it is appropriate or desirable to deal with the other party.

c. There must be at least two parties.

Global marketing must take into consideration the value of its country's currency in relation to the countries' currency where its products will be sold. Over the last several years, the U.S. dollar has been strong, meaning that it has a higher value than the currency in other countries. If the U.S. dollar is strong, which of the following is true? a. Exports will be less expensive for foreign buyers. b. Trade will be balanced. c. Trade deficits may grow. d. Trade deficits may decrease

c. Trade deficits may grow. A strong dollar swells the trade deficit, making imports less expensive and exports more expensive for foreign buyers.

The _______ offers low-interest loans, advice, and information to developing nations. a. World Trade Organization (WTO) b. European Union (EU) c. World Bank d. International Monetary Fund (IMF)

c. World Bank

When a country can produce and sell a product at a lower cost than any other country or when it is the only country that can provide a product, it is said to have ______. a. a comparative advantage b. an import economy c. an absolute advantage d. a global vision

c. an absolute advantage

A country's _______ is the difference between the value of a country's exports and the value of its imports over a given period. a. balance of payments b. trade surplus c. balance of trade d. trade deficit

c. balance of trade

In a global economy, products and services are exchanged around the world. Ford Motor Company has production plants in Mexico and purchases component parts from various suppliers around the world which are imported to Mexico to be used in production. Once the automobiles are completed, the finished cars are exported primarily to the United States and Canada. The difference between the value of exports of a country and the value of its imports over a given period is called _______. a. economic equilibrium b. balance of payments c. balance of trade d. global equilibrium

c. balance of trade The difference between the value of exports of a country and the value of its imports over a given period is called balance of trade.

Broadly speaking, customer relationship management (CRM) allows marketers to _______. a. identify several large groups of consumers to which they can send one broad message b. analyze customers' buying habits to predict future purchases c. collect information about customers and create marketing promotions and communications specific to groups of consumers d. identify customers who are the most resistant to purchasing and focus product modifications on feedback from those customers

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

A person who is practicing a conventional level of morality would _______. a. ask, "Who will benefit the most?" b. consider what is good in the long run c. consider the actions of others d. ask, "What is in it for me?

c. consider the actions of others

A form of trade in which all or part of the payment for goods or services is in the form of other goods and services is called _______. a. dumping b. a joint venture c. countertrade d. an exchange rate

c. countertrade

Following natural disasters such as hurricanes and tornadoes, the demand for building products such as drywall or gypsum panels and lumber increases. Sometimes, these events lead to higher prices for building products as demand exceeds supply. However, due to global exporting, the prices might decline. U.S. gypsum manufacturing companies complained that China-based Knauf Tianjin was _____ products and selling panels for lower prices than they charged in China. a. loading b. bartering c. dumping d. piling

c. dumping Dumping is the sale of an exported product at a price lower than that charged for the same or a like product in the "home" market of the exporter.

Companies that are ethically responsible have already met _______ responsibilities. a. philanthropic and economic b. economic and social c. economic and legal d. legal and philanthropic

c. economic and legal

France is widely known for producing great wines. One of the leading French wineries, Château du Beaune, has invested in a winery in India through a joint venture. The winemaker and various specialists in horticulture are working with the local team in India to ensure proper use of pesticides and conservation of natural resources such as rainwater. In addition, the joint venture has installed solar panels on the roofs of the company's buildings so it can produce its own electricity. As a B Corp, the India-based winery is demonstrating its commitment to _______ sustainability. a. social b. moral c. environmental d. economic

c. environmental

Through a process called _______, marketers collect and evaluate information about the marketing environment. a. perceptual mapping b. market analysis c. environmental scanning d. marketing research

c. environmental scanning Environmental scanning is a process in which marketers continually collect and evaluate environmental information.

Adidas manufactures sports apparel and shoes in various countries around the world. When Adidas is selecting manufacturers, the company has an extensive contract agreement stipulating a variety of policies regarding workers, such as pay, hours worked per day or week, working conditions, and worker safety. Adidas believes that it is important to ensure fair labor practices even if there are no regulations or laws governing these practices. Based on the pyramid of corporate social responsibility, Adidas is fulfilling its _______ responsibilities. a. philanthropic b. economic c. ethical d. legal

c. ethical

Rosario is a sales trainer with Canon Business Solutions, and she is working with new account executives to discuss the company's standards for creating mutually beneficial, win-win relationships with customers. She emphasizes that the goal is to identify consumers' needs and to match the right product or service to each customer. Thus, sales will occur when customers receive benefits from products or services that meet their individual needs. Further, Rosario tells the new sales associates that they should walk away from a sale if the product or service is not in the customer's best interests. Rosario is emphasizing the company's _______. a. social expectations b. contractual policies c. ethical principles d. laws

c. ethical principles

Energy bars are a popular snack or meal replacement for many consumers. The Clif Bar & Company has a variety of bars and emphasizes their natural ingredients and healthy snack options. The bars are available at most grocery stores, and they are sold individually or in a variety of packs of six bars to a box. The company has identified specific sales objectives for each variety of snack bar, and it is currently reviewing the sales data to gauge which varieties are meeting the sales targets. Thus, the Clif Bar & Company is engaged in the _______ process. a. implementation b. post audit c. evaluation d. control

c. evaluation

The _______ is the price of one country's currency in terms of another country's currency. a. gross national income (GNI) b. countertrade c. exchange rate d. balance of payments

c. exchange rate

Although _______ provides the least amount of return, many companies choose this method as a first step in international marketing because it is also low risk. a. contract manufacturing b. licensing c. exporting d. foreign direct investment

c. exporting

Canon is a Japanese firm specializing in imaging and optical products such as cameras, photocopiers, and printers. The company recognizes that consumers around the world have similar needs regarding the functions of cameras, photocopiers, and printers. Therefore, Canon can create and manufacture models that are sold around the world with few to no modifications. This is an example of _______. a. offshoring b. multidomestic marketing c. global marketing standardization d. streamlined exporting

c. global marketing standardization Global market standardization refers to the emergence of global markets for standardized consumer products rather than segmented foreign markets with different products.

A _______ is the description and estimation of the size and sales potential of market segments that are of interest to the firm and the assessment of key competitors in these market segments. a. target market strategy analysis (TMSA) b. marketing mix (four Ps) c. market opportunity analysis (MOA) d. market segment analysis (MSA)

c. market opportunity analysis (MOA)

Yeti is based in Austin, Texas. The company produces a variety of high-quality products such as coolers, beverage containers, chairs, bags, and branded apparel. It is a publicly traded company operating in the United States, Europe, Canada, Asia, and Australia and manufactures products in the United States, China, and Thailand. A brief look at Yeti's current job openings reveals professional positions in the United Kingdom, the Philippines, and Thailand. Assuming Yeti has office locations in these countries, it would be classified as a ______ firm. a. globalist b. multidomestic c. multinational d. diverse

c. multinational A multinational company is one that is heavily engaged in international trade beyond exporting and importing. It moves resources, goods, services, and skills across national boundaries without regard for the country in which its headquarters is located.

Rajan, who is the VP of Marketing for a technology firm, is working with the senior leadership team to revise the company's mission statement. He believes the current statement is too narrow since it emphasizes goods and services instead of the benefits customers might receive. In other words, the mission statement is _______. a. outdated b. consumer centric c. myopic d. niche-oriented

c. myopic The current mission statement is myopic, which means it is too narrow, defining the business in terms of goods and services rather than benefits customers seek.

A company that focuses on a unique aspect of its product is likely using a _______. a. sustainable competitive advantage b. cost competitive advantage c. product/service differentiation competitive advantage d. nice competitive advantage

c. product/service differentiation competitive advantage

Khalid is a professional photographer who is considering purchasing one of the new mirrorless cameras from FujiFilm. He frequently purchases equipment online from a New York firm, BH Photo. BH Photo's website allows customers to post product reviews. Khalid notices that many of the reviews for the FujiFilm model are negative. However, those who purchased the Sony models gave very positive reviews. Based on his research and owner feedback, Khalid decides to purchase a Sony camera. This example demonstrates the importance of _____ factors as part of the external marketing environment. a. political b. technological c. social d. demographic

c. social

Walgreens is based in Chicago, Illinois, and has developed a large customer base, especially in larger cities. It has strong relationships with its suppliers and an innovative supply chain, enabling it to reduce out-of-stock inventory, especially with fast-moving items that are purchased frequently. These capabilities have enabled Walgreens to maintain its market position and have a strong competitive position since they are not easily copied or duplicated by other firms. Walgreens enjoys a _______ competitive advantage. a. cost b. product/service differentiation c. sustainable d. niche

c. sustainable A sustainable competitive advantage is one that cannot be copied by the competition.

The trade agreement formally known as the North American Free Trade Agreement (NAFTA) is an agreement between _______. a. Mexico, Canada, and Greenland b. Canada, the United States, and Brazil c. the United States, Canada, and Mexico d. the United States, Mexico, and Cuba

c. the United States, Canada, and Mexico

Alliance Life Insurance promotes its term life insurance products through commissioned sales representatives, who use aggressive sales tactics to acquire new customers who make monthly premium payments. Alliance is driven to earn profits and instructs its sales representatives to sell, sell, sell, and it trains them that "Everyone needs life insurance." This highlights one of the key differences between sales-oriented firms and marketing-oriented firms, which is _______. a. the organization's external, market-oriented focus b. the organization's use of target marketing to sell its products to those with true needs c. the organization's primary goal to achieve profitability through sales volume d. the organization's mission to satisfy customers by providing products with many benefits to meet their needs

c. the organization's primary goal to achieve profitability through sales volume

Understanding that theatre-goers would be interested in furthering the "Broadway Experience" by redeeming points for events such as walking the red carpet suggests that Nederlander Organization a.divested its dogs and built up some dogs. b.developed new ideas through Ansoff's Opportunity Matrix. c.discovered marketing opportunities through environmental scanning. d.performed a marketing audit and implemented action items.

c.discovered marketing opportunities through environmental scanning.

portfolio matrix

classifies each SBU by its present or forecast growth and market share. a tool for allocating resources among products or strategic business units on the basis of relative market share and market growth rate

environmental scanning

collection and interpretation of information about forces, events, and relationships in the external environment that may affect the future of the organization or the implementation of the marketing plan

experience curves

curves that show costs declining at a predictable rate as experience with a product increases

customer satisfaction

customers' evaluation of a good or service in terms of whether it has met their needs and expectations

_______ uses previous examples of ethical dilemmas and applies those rules to a current ethical dilemma. a. Deontological theory b. Moral relativism c. Utilitarian ethical theory d. Casuist ethical theory

d. Casuist ethical theory Casuist ethical theory uses previous examples of ethical dilemmas and applies those rules to a current ethical dilemma. A problem with casuist ethical theory is that there may not be a previous example to reference.

Unity Point Hospitals, which is based in Iowa, recently announced plans to seek approval and merge with Sanford Health, which is based in South Dakota. If approved by the ______, an organization empowered to prevent corporations from using unfair methods of competition in commerce, the combined entity would rank among the top 15 not-for-profit health systems by revenue. It would have 76 hospitals across 26 states and nine countries and employ more than 83,000 staff and 2,600 physicians. a. Food and Drug Administration (FDA) b. Social Security Administration (SSA) c. Consumer Product Safety Commission (CPSC) d. Federal Trade Commission (FTC)

d. Federal Trade Commission (FTC) The Federal Trade Commission (FTC) is an organization empowered to prevent corporations from using unfair methods of competition in commerce. The FTC created the Bureau of Competition to review mergers and acquisitions and challenges those that could lead to higher prices, fewer choices, or less innovation.

Lihua is learning about global market standardization. She was explaining to a friend the types of products that could easily be standardized for sale around the world except for language differences. Which of the following products could most likely be standardized? a. Breakfast cereal b. Menu items at fast food chains c. Automobile d. Flash drive

d. Flash drive A flash drive is the best example of a product that could be standardized. Global marketing standardization presumes markets throughout the world are becoming more alike.

In March 2019, the European Union fined Google 1.5 billion euros for antitrust violations in the online advertising market, continuing the EU's efforts to rein in the world's biggest technology companies. The _______ law, passed by the European Union, regulates data collected by firms and requires firms to have a "data protection officer" and provide clear and available policies regarding their data collection practices. a. International Data Privacy Regulation (IDPR) b. Global Privacy Act (GPA) c. Privacy Enhancement Act (PEA) d. General Data Protection Regulation (GDPR)

d. General Data Protection Regulation (GDPR)

Which of the following is true of customer value? a. Good value cannot be determined by quality or price, just by the benefits the product provides to customers. b. Good value is signified by a high-quality, high-priced product. c. Good value is signified by a low-quality, low-priced product. d. Good value is signified by the quality a customer expects at the price they are willing to pay.

d. Good value is signified by the quality a customer expects at the price they are willing to pay.

BedJet manufactures and sells a heating and cooling system that can be attached to any bed, allowing those sleeping on the mattress to maintain a comfortable temperature, avoiding being too hot or too cold. The company developed its products based on insights from customers who were tired of night sweats or being too cold. BedJet products have been designed based on customer needs, such as its Dual Zone product that accommodates couples who may desire different sleeping temperatures. Which marketing management philosophy best describes BedJet? a. Production b. Sales c. Societal marketing d. Market

d. Market

Marketing activities enable consumers to become aware of products or services, and they hopefully provide the information necessary for each buyer to identify the one brand or model that will be most appropriate for them to purchase. Such marketing activities include promotion, advertising, and public relations, as well as supply chain activities to ensure products are available at retail outlets convenient to customers. Which of the following reasons to study marketing captures the various marketing activities described? a. Marketing is important to business. b. Marketing offers outstanding career opportunities. c. Marketing can be used in everyday life. d. Marketing plays an important role in society.

d. Marketing plays an important role in society.

The _______ is an international trade agreement among Canada, Mexico, and the United States designed to facilitate trade by removing tariffs and other trade barriers among the three nations. a. Consumer Product Safety Act b. Federal Food and Drug Act c. Federal Trade Commission Act (FTC) d. North American Free Trade Agreement (NAFTA)

d. North American Free Trade Agreement (NAFTA)

_______ is the most flexible of the four Ps because it is the easiest and quickest component to change. a. Place (distribution) b. Promotion c. Product d. Price

d. Price

Wahl Clipper Company has an innovation center where its engineers create and test new products. Wahl recently reviewed several options for packaging of its curling wand. Which aspect of the marketing mix is Wahl focusing on with its review of packaging options? a. Promotion b. Price c. Place d. Product

d. Product Product packaging is part of the product strategy.

Which of the following is NOT a requirement of effective strategic planning? a. Continual attention b. Creativity c. Management commitment d. Resource allocation

d. Resource allocation Effective strategic planning requires continual attention, creativity, and management commitment.

Beverage companies such as Pepsi and Coca-Cola have recently come under scrutiny for the amount of sugar in their products and how this contributes to the high numbers of people in the United States who are obese. As a response to this negative attention, and because of Coca-Cola's desire to promote good nutrition and well-being, the company has changed its packaging and now offers smaller bottles and cans. In addition, Coca-Cola is committed to zero-waste initiatives and is using plant-based products and recyclable materials in its packaging. Which marketing management philosophy best applies to Coca-Cola? a. Production b. Sales c. Marketing d. Societal marketing

d. Societal marketing

In _______ of global business development, companies set up foreign subsidiaries to hands sales in one country. a. Stage 4 b. Stage 3 c. Stage 1 d. Stage 2

d. Stage 2

The Environmental Protection Agency (EPA) has recently repealed some of the regulations that govern the oil industry, such as those regulating the proper disposal of wastewater. The president of Oklahoma-based Williams Oil is mandating even stricter guidelines than the EPA imposes. She believes that protecting the groundwater and ensuring clean drinking water for everyone is critically important. Which factor influencing ethical decision making is this company's president using? a. Social consensus b. Length of time between the decision and the onset of consequences c. Number of people affected d. Top management's actions

d. Top management's actions

Which ethical theory considers a person's character, not just their actions? a. Casuist ethical theory b. Moral relativism c. Deontological theory d. Virtue ethics

d. Virtue ethics Virtue ethics considers a person's character, not just their actions.

Free trade means _______. a. each country should specialize in the products it can produce the most efficiently b. giving people the products they need, regardless of their location in the world c. bartering for goods across borders rather than exchanging goods for money d. allowing people to buy and sell in other countries without restrictions

d. allowing people to buy and sell in other countries without restrictions

When conducting a SWOT analysis, managers can identify opportunities and threats by _______. a. looking internally at the company's current product and service offerings b. classifying limitations that place the company at a disadvantage c. analyzing the core capabilities of the firm d. analyzing the external marketing environment

d. analyzing the external marketing environment

Nick Morgan is a scientist with the National Oceanic and Atmospheric Administration (NOAA). He is stationed at the South Pole Observing Station in Antarctica. Nick and his colleagues collect various measurements such as carbon dioxide and solar radiation levels to enable scientists to track changes and determine trends. Nick says, "The data we collect is also used to improve climate models so we can try to see changes in the future." Nick's research would be classified as _______. a. applied b. philanthropic c. extraneous d. basic

d. basic basic research or pure research attempts to expand the frontiers of knowledge but is not aimed at a specific, pragmatic problem.

The most basic level of social responsibility requires that a company _______. a. be ethical b. be a good corporate citizen c. obey the law d. be profitable

d. be profitable Being profitable is a result of economic responsibilities, the first level of the pyramid of corporate social responsibility.

Chili's, the popular restaurant chain, supports St. Jude Children's Hospital annually by inviting its guests to color a pepper and make a $1 contribution to St. Jude. Chili's has partnered with St. Jude for almost two decades and recently committed to a multi-year pledge to raise $30 million to fund St. Jude's School Program, which ensures that children receiving medical care in the hospital can stay up-to-date with their school assignments. This is an example of _______ marketing. a. sustainability b. social c. green d. cause-related

d. cause-related Cause-related marketing is the cooperative efforts of a for-profit firm and a nonprofit organization for mutual benefit.

The Wegmans grocery store chain operates 90 stores across six states in the Northeast U.S. and continues to grow. Like many grocery stores, it is trying to respond to changes in the external environment and now offers Instacart, a service allowing customers to shop online and receive delivery within an hour depending on their location. Wegmans believes the added convenience and time-saving aspects of grocery delivery will lead to greater customer satisfaction, increased revenues, and profitability. Wegmans is responding to the _______factor of the external environment. a. social b. competitor c. economic d. consumer

d. consumer

Many businesses today offer loyalty programs to customers, because gaining customers for life is a goal that enables firms to be more profitable. The Marriott hotel chain's loyalty programs are popular since customers can accumulate points that can be redeemed for upgrades or free room stays. Marriott also encourages members to complete their profiles by indicating the size of bed they prefer (double or king), type of pillow (foam or feather), handicap accessible needs, or other preferences. The profile information enables each hotel to utilize this information and provide the right type of room amenities for each guest. The loyalty program is an example of _______. a. customer partnership b. empowerment c. teamwork d. customer relationship management

d. customer relationship management

Davis Mortuary provides funeral and burial services for several rural communities. The trends indicate Baby Boomers may prefer cremation, although some are using pre-planning services and purchasing statuary or other memorials for their gravesites. As part of its marketing strategy, this example demonstrates how Davis Mortuary must consider _______ factors as an important aspect of the external marketing environment. a. competitive b. legal c. social d. demographic

d. demographic

A _______ strategy increases sales by introducing new products into new markets, while a _______ strategy entails creating a new product targeted to its current customers. a. market development; diversification b. product development; market penetration c. market penetration; market development d. diversification; product development

d. diversification; product development

Matcha green tea has become a very popular beverage in recent years. Soar Organic produces some of the finest matcha green tea and works with sales agents and distributors in the United States, Canada, and Australia to aid with international financing, shipping, and supporting Soar Organic's export needs. The sales agents who reside in the countries to which Soar Organic is exporting are called _______. a. export brokers b. buyers for export c. global intermediaries d. export agents

d. export agents Export agents are foreign sales agents/distributors who live in the foreign country and perform the same functions as domestic manufacturers' agents, helping with international financing, shipping, and so on.

Heritage Glass in rural Tennessee expects 60 to 70 percent of its sales to come from regions outside of the United States including the Philippines, Europe, and South America. Heritage Glass has a _____ vision. a. protectionist b. strategic c. absolute d. global

d. global A global vision means recognizing and reacting to international marketing opportunities, using effective global marketing strategies, and being aware of threats from foreign competition in all markets.

Solumbra designs and manufacturers protective clothing which helps people reduce the risk of skin cancer from exposure to ultraviolet rays. Its hats, shirts, shorts, and pants are sold globally through its website as well as through retail accounts in specialty stores. Solumbra's product line is consistent across its global markets which provides efficiency in manufacturing. Minimal modifications are made to the information and language on the product tag. Solumbra is utilizing a(n) _____ strategy for product decisions. a. product adaptation b. multi-differentiated c. inshoring d. global marketing standardization

d. global marketing standardization Global marketing standardization means developing a single product for all markets and promoting it the same way all over the world

Key performance indicators _______. a. are considered weaknesses in the company's SWOT analysis b. are not required as the marketing plan is static and rarely updated c. guide the creation of the business mission statement d. help managers compare outcomes to stated objectives

d. help managers compare outcomes to stated objectives

An organization that chooses a _______ strategy attempts to maintain the product's market share in order to take advantage of the positive cash flow. a. harvest b. build c. divest d. hold

d. hold

Samantha and Bethany are purchasing their first home and reviewing the terms of a 15-year mortgage with their lender, Jim, at First Union Bank. Jim reviews the amount of the loan, the interest rate, the total amount of interest they will pay over the course of their loan, and the total amount of money that will be paid over time. Jim is required to provide this information, as it is federally mandated as part of the Truth in Lending Act that was passed in 1968 to protect consumers. Jim is doing what is _______ right by providing this information to Samantha and Bethany. a. voluntarily b. socially c. morally d. legally

d. legally

Caterpillar is a manufacturer of heavy machinery that is sold around the world. A growing business for this U.S.-based company are products that feature the company's name or logo. Branded merchandise is available in over 150 countries through agreements known as _____, in which, for a fee, Caterpillar allows other firms to use its name or logo on products such as hats, boots, apparel, and scale model replicas of its equipment. a. joint venture b. contract manufacturing c. franchising d. licensing

d. licensing Licensing is the legal process in which a licensor allows another firm to use its manufacturing processes, trademarks, patents, trade secrets, or other proprietary knowledge. The licensee, in turn, pays the licensor a royalty or fee agreed on by both parties.

Marketers making product decisions during a recession should _______. a. create premium products sold in exclusive locations b. introduce new versions of products with more features c. raise prices to match consumers' increased purchasing power d. lower prices and offer special deals to get consumers to buy

d. lower prices and offer special deals to get consumers to buy During a recession, marketers should consider lowering prices and increasing promotions that include special offers to stimulate demand.

Volkswagen has announced that it will develop a new line of energy-efficient vehicles that are powered by electricity. VW may offer a van that resembles its iconic Vanagon model from the 1970s and 1980s. The company is currently estimating the size and sales potential of key market segments, as well as identifying competitors who currently serve those segments. Volkswagen is performing a(n) _______. a. market capability analysis (MCA) b. market differentiation analysis (MDA) c. market segment analysis (MSA) d. market opportunity analysis (MOA)

d. market opportunity analysis (MOA)

Stefan was recently hired by a small business to provide strategic planning consulting. In the initial meeting, Stefan emphasized the importance of the _______, which is the foundation of any company's marketing plan. a. target market strategy b. situation analysis c. competitive analysis d. mission statement

d. mission statement The mission statement is the foundation of any marketing plan since it answers the question, "What business are we in?"

Intel is known for its high-quality computer chips and ability to innovate. Most major computer and tablet manufacturers prefer to include Intel chips and often add the brand's logo and statement "Intel inside" on the product packaging. It is likely that Intel benefits from a _______ competitive advantage. a. cost b. manufacturing c. niche d. product/service differentiation

d. product/service differentiation This is an example of product/service differentiation, since the firm provides something that is unique and valuable to buyers beyond simply offering a lower price than the competition

Many restaurants such as Chili's encourage diners to complete a quick evaluation of their dining experience and identify how well the restaurant met their needs. Chili's is concerned with the facet of marketing that seeks to _______. a. gain a loyal following of customers b. hire the best employees c. maintain profitability d. satisfy customers

d. satisfy customers

A market-oriented company _______. a. outsources all promotional and marketing efforts to an advertising company b. relies entirely on its marketing department for all the company's marketing efforts c. uses mainly promotional activities and a professional sales force to market its products d. sees marketing as a company-wide activity

d. sees marketing as a company-wide activity

According to Business Insider, Automatic Data Processing, Inc. (ADP) engages in the provision of business outsourcing solutions and specializes in cloud-based human capital management. ADP is a preferred vendor for payroll systems, and since it processes millions of checks for its customers, it is a respected source of information about unemployment rates through its monthly National Employment Report. ADP's development and study of employment trends was a(n) _______ decision affecting its long-run profitability and growth. a. executive b. innovative c. tactical d. strategic

d. strategic

ConAgra Foods is a global manufacturer of processed and packaged foods with revenues of $11 billion annually. It recently acquired Pinnacle Foods, which added iconic brands to its portfolio such as Birds Eye, Duncan Hines, Earth Balance, and Vlasic. Pinnacle Foods will continue to have control over its resources and distinct mission, and it will operate independently of ConAgra Foods. Pinnacle Foods is known as a(n) _______. a. captive business b. wholly owned subsidiary c. franchise operation d. strategic business unit

d. strategic business unit

A _______ is an advantage that cannot be copied by the competition in the near future. a. product/service differentiation competitive advantage b. niche competitive advantage c. cost competitive advantage d. sustainable competitive advantage

d. sustainable competitive advantage

Obesity in the United States has been described as an epidemic since a high proportion of citizens are 15 or more pounds overweight. A convenience store chain has decided to respond to this issue by reducing the size of the soda fountain drinks it sells in its stores. The company now only offers fountain drinks in 16- and 32-ounce sizes, eliminating its "super-sized" 50-ounce beverage option. This decision reflects _______. a. federal laws b. the beverage company's policy c. a policy of green marketing d. the convenience store chain's morals

d. the convenience store chain's morals

ethics

the moral principles or values that generally govern the conduct of an individual or a group

Huggies is a popular brand of diapers that offers a variety of sizes and styles to fit babies based on weight, gender, and activity, such as swim diapers. Huggies devotes significant resources to conduct market research to understand customer needs and to ensure that its diaper products meet the needs of the customer. Rather than make just one diaper formulation, the products are highly customized and appeal to each customer's unique situation. This highlights one of the key differences between sales-oriented firms and marketing-oriented firms, which is _______. a. the organization's mission to produce the highest volume of products in a cost-efficient manner b. the organization's primary goal to achieve profitability through sales volume c. the organization's internal, sales-oriented focus d. the organization's approach to marketing its products to specific customer segments rather than "everyone" or the average cus

d. the organization's approach to marketing its products to specific customer segments rather than "everyone" or the average customer

Strategic planning is usually conducted by _______. a. first-line managers b. employees c. middle managers d. top managers

d. top managers

Audience Rewards developed relationships with Nederlander Organization other theatre owners to create the loyalty program that spans most Broadway shows. In a SWOT, this is: a.A threat, because the Nederlander Organization is a major backer, but competes with the other theatres. b.An opportunity, because Audience Rewards can use these relationships to force other theatre companies to become part of the loyalty program. c.A weakness, because Audience rewards has to rely on these theatre companies to always get along and support the rewards company. d.A strength, because partnering with these theatre companies allows Audience Rewards to have a competitive advantage against other, smaller loyalty programs.

d.A strength, because partnering with these theatre companies allows Audience Rewards to have a competitive advantage against other, smaller loyalty programs.

marketing myopia

defining a business in terms of goods and services rather than in terms of the benefits customers seek

market planning

designing activities relating to marketing objectives and the changing marketing environment

stakeholder theory

ethical theory stating that social responsibility is paying attention to the interest of every affected stakeholder in every aspect of a firm's operation

casuist ethical theory

ethical theory that compares a current ethical dilemma with examples of similar ethical dilemmas and their outcomes

utilitarian ethical theory

ethical theory that is founded on the ability to predict the consequences of an action

deontological theory

ethical theory that states that people should adhere to their obligations and duties when analyzing an ethical dilemma

evaluation

gauging the extent to which the marketing objectives have been achieved during the specified time period

dog

has low growth potential and a small market share.

SWOT analysis

identifying internal strengths (S) and weaknesses (W) and also examining external opportunities (O) and threats (T)