Marketing EXAM 1

name the 4 reasons given for the state of the perceived negative ethical business conduct

1. increased pressure on businesspeople to make decisions in a diversified value system 2. growing tendency for business decisions to be judged publicly 3. public's expectations of ethical business behavior has increased 4. ethical business conduct may have declined

Match the following Marketing Philosophy with the appropriate focus question 1. how can we sell more aggressively 2. what can we make or do best 3. need and how can we benefit society 4. what do customers want and need

1. sales orientation 2. product orientation 3. societal orientation 4. marketing orientation

Which of the following statements accurately distinguishes between laws and ethics?

Ethics deal with personal and moral principles whereas laws are society's values and are enforceable in the courts.

for every consumer who purchases a pair of TOMS shoes for $55, the company gives a pair this is an example of _______

CSR - corporate social responsibility

there are many external factors that affect the marketing environment. they include all of the following except which? a. the marketing mix b. technology c. political d social changes

a. the marketing mix

There are two facets of marketing. One of these facets is that it is:

an approach that focuses on customer satisfaction

the _______ statement answers the question, "what business are we in, and where are we going?"

business mission

the global athletic footwear market is expected to experience only very slow growth over the next several years. nike is the market leader. according to boston consulting group portfolio analysis, which quadrant would define nike's athletic footwear product line?

cash cow

BCG portfolio analysis, products in low-growth markets; excess funds to support other products

cash cows

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

component

when companies embrace ______ they appeal not only to their shareholders but also key stakeholders

conscious marketing

when companies embrace _________, they appeal not only to their shareholders but also to all of their key stakeholders

conscious marketing

the center of all marketing efforts is

consumers

During the __________ phase of the strategic marketing planning process, marketers utilize systems to check whether each potential ethical issue raised in earlier phases was addressed.

control

_______________ __________________ ____________________ voluntary actions taken by a company to address the ethical, social, and environmental impacts of its business operations and the concerns of its stakeholders.

corporate social responsibility

astute marketers know the increasing disparity of income between upper and lower income groups

creates opportunities to provide value to each group

A producer of replacement knee and hips directs a lot of their marketing efforts toward those living in aging populated areas, such as the southwestern parts of the U.S. Which of the following best explains its success in this strategy?

demography

Ironically, while the leaders of Enron Corporation were manipulating the company's finances for their personal benefit, the company was a major donor to Houston area charities. Enron had unethical business practices, but was also

demonstrating corporate social responsibility

A school board is concerned about deteriorating school facilities, combined with a shrinking budget. The board began by studying the issue, and then identified parents, children, teachers, staff, and taxpayers as groups who have a vested interest in the problem. The school board has listened to each group's concerns. In the ethical decision-making framework, its next action should be to

engage in brainstorming alternatives

Beth has been asked to approve a marketing campaign that, although not illegal, promotes food products to children. She is concerned that the food products are not particularly nutritious, although they are not as bad for children as some others sold by competitors. By using the ethical decision-making metric, Beth will

evaluate the alternative using a series of questions.

A contractor agreed to complete a job in one week and collected a 50 percent deposit, but never showed up to do the job. The same contractor then donated $10,000 to a local cancer research center. The contractor would be not be considered socially responsible. T/F

false

Ethos Water donates 2 percent of its profits to children in need of clean water. This action demonstrates that Ethos Water is a firm with a strong ethical climate. T/F

false

Tipco Computer Company decided to market its tablet computers to preschoolers, even though the tablets were better suited for much older children. This potentially unethical activity takes place during the control phase of the strategic marketing planning process. True/False

false

in the immediate environment, the competition has effect on consumers (t/f)

false

macroenvrionmental factors include the company, competition, and corporate partners (t/f)

false

sales-oriented firms sell to specific people; market-oriented sell to everybody

false

the company's objective is to increase sales next year. this is an example of a well-stated objective (t/f)

false

the components of a SWOT analysis are strengths, weaknesses, opportunities and tactics

false

to provide greater value than competitors, ryan's firm must look at everything it does

from a consumer's point of view

which of the following is true regarding modern gender roles

gender roles have been blurred in the past several years

Redefining the business mission of a mattress manufacturer as "a good night's sleep" rather than stating the mission as "the manufacture of highquality mattresses" will:

help ensure the firm retains its focus on consumers

Heineken picks up the local newspaper and reads a stinging letter to the editor criticizing his beverage company for supporting a sporting event for children with disabilities. The letter writer is critical of a banner displayed at the event, with the logos of alcoholic beverages and Heineken's company name. Heineken never considered that this problem might arise. In the framework for ethical decision making, Heineken's company failed to

identify issues

Avery has just purchased a beer distributorship. He wants to increase the visibility of his firm in local markets, but he knows there are a number of regulations and socially accepted practices associated with promoting alcoholic beverages. According to the framework for ethical decision making, the first thing Avery should do is to

identify issues that need to be addressed

measure of the decrease in the value of $, expressed as % reduction in value since previous year is the definition of ______

inflation

a competitive advantage based on location is often sustainable because

it is not easily duplicated

pure competition

large number of sellers, distribution is important

monopolistic competition

large number of sellers, pricing is important

monopolistic competition environment is

large number of sellers, pricing is important

After major hurricanes like Harvey, many ethical home repair and building supply businesses continue to charge pre-hurricane prices to their customers, even though due to the huge increase in demand they could charge much more. These firms probably recognize that

lifetime profitability of relationships matters more than profits from a particular transaction.

ty is trying to determine how to offer classes students need at the times when they need them

managing the supply chain

Barney's Bean Bags assumes that a sale does not depend on an aggressive sales force but rather on a customer's decision to purchase a product. This would be an example of which marketing management philosophy?

market

Many organizations use customer relationship software that allows the service representative to determine products that the customer is using. In doing so, the service representatives can offer promotions for said products. Which kind of growth strategy is being used in this scenario?

market penetration

organizations use CRM software allowing service reps to offer services to customers. what type of growth strategy is this

market penetration

retailers focus on what consumers wanted before attempting to sell products

market-oriented

the ethical decision-makign framework includes all of the following steps except

marketing ethical issues

an organization voluntary recalls a significant portion of its product because of fear that there is a small chance that one or more of their customers could be injured. this reflects which of the moral philosophies

moral idealism

For many years, southwest airlines distinguished itself as the low-cost airline. Now, many other low-cost competitors have entered the market. Similarly, Southwest was one of the first airlines to offer online ticketing. Now, all airlines have online ticketing. These examples suggest that

no single strategy is likely to be sufficient to build a sustainable competitive advantage

increasing gas prices would represent a potential _______ for manufacturers of electric cars

opportunity

Coca-Cola vending machines are found all over the world. The newest machines have an interactive screen that runs advertisements and allows users to obtain free photos of themselves and ringtones after they have bought a drink. The reason for the introduction of this new style of vending machine is to "allow the company to interact more directly with its customers." According to a SWOT analysis, the technology used by these machines is an example of a(n):

opportunity because it is part of Coca-Cola's external environment

value-oriented marketers constantly measure

perceived customer benefits against the costs of offerings

Which element of the marketing mix deals with supply chain management?

place

which element of the marketing mix is most relevant to the activity "delivering value"

place

ethical development can be thought as having three levels. the most mature level is the ________ stage

post conventional morality

which element of the marketing mix is most relevant to the activity "capturing value"

price

SA seeks to differentiate thru innovative design/amenities. SA is pursuing what type of macro strategy?

product excellence

Sandpiper Air seeks to differentiate itself from competing airlines, in part through innovative design and in-flight amenities available. Sandpiper Air is pursuing a(n) __________ macro strategy.

product excellence

in most companies, portfolio management is typically done at the SBU or ______ level of the firm

product line

lisa is using BCG sales of the product/overall market as well as the sales of competitors to find ________

product's relative market share

Apple manufactures and markets various hardware and software assuming that a market exists for their products. This is an example of a(n) _________________ orientation.

production

apple manufacturers and markets various products assuming that a market exits is ________ orientation

production orientation

___________________marketing is a strategy that focuses on keeping and improving relationships with customers.

relationship

At www.mystarbucksidea.com, customers are encouraged to share their ideas and thoughts about how Starbucks can better serve its customers. Starbucks customers told management that they wanted to be recognized for choosing Starbucks coffee. So Starbucks instituted the My Starbucks Reward program with money-saving benefits to their Starbuck cardholders. This program is practicing:

relationship marketing

after conducting STP analysis and developing strategies for each of the four P's, the organization now has to make _______ decisions

resource allocation

The ______ era, firms had excess capacity, used personal selling/advertising to generate customers

sales-oriented

Dwight sells office supplies. Whenever he calls on his customers, he asks if they are having any problems. In doing so, Dwight is addressing which of the following core aspects of marketing?

satisfying customer needs and wants

which of the following is not one of the 4 major growth strategies marketers typically utilize

segment development

when discussing the marketing planning process, STP stands for

segmentation, targeting and positioning

monopoly

single producer; marketing unimportant

when Walmart issued new standards for livestock products that were raised on good without antibiotics or artificial growth hormones, it considered multiple______ including the ranchers that supply the food, its customers, and animal welfare groups

stakeholders

Proctor and Gamble has hundreds of brands from razors to weight loss medication. each has a distinct mission, control over its resources, and plans independently of the other brands of P&G. each division would be an example of a

strategic business unit

an advantage that cannot be copied by the competition is called a _________ competitive advantage

sustainable

apple music has an ______ as they have exclusive agreements with some of the most sought after music corporations that other digital music stores do not have

sustainable competitive advantage

lisa is using the boston consulting group approach to portfolio analysis to assess the strength in a particular market and is looking at the sales of the product and the overall market as well as the sales of competitors. from his analysis, lisa should be able to determine:

the product's relative market share

when referring to "exchange" marketers are focusing on

the trading of things of value

if callahan auto decides to shut down their brake pad division, this would be a ______ for ford motor company, who uses these brake pads in their automobile production

threat

3 elements of consumer's immediate environment are company, competition and corporate partners

true

Ethical issues are likely to arise at each stage of the strategic marketing planning process. T/F

true

Marketers cannot control the external environment in which their organizations operate. (t/f)

true

Matt, who lives in Boston, refers to Pepsi as "soda," while Paul, who lives in Chicago, calls it "pop." This is an example of a regional culture difference. T/F

true

ethical issues are likely to arise at each stage of the strategic marketing planning process

true

short-term profit decisions can cause firms to lose customers in the long run

true

the members of generation z are also referred to as digital natives (t/f)

true

understanding a customer's needs and wants is fundamental to marketing success

true

a firm's microenvironment includes all of the following except a. competition b. culture c. demographics d. political/legal issues

a. competition

If a company uses a sales orientation, consumer complaints would most likely result in continuous market research. (t/F)

FALSE

If a firm embraces a sales-oriented philosophy, the organizations spends most of their resources on what the customer wants and needs. (t/f)

FALSE

an example of market penetration occurs when a supermarket adds a new store (t/f)

FALSE

the hukilau cafe is a popular restaurant for tourist in Hawaii. in a SWOT analysis for hukilau, the possibility that a recession might cut back on tourism in hawaii would be considered a weakness (t/f)

FALSE

Eclipse's MP3 player product line has a low relative market share. The MP3 player market is expected to decline over the next few years. In the Boston Consulting Group (BCG) portfolio analysis, the Eclipse MP3 player would be considered a dog. (t/f)

TRUE

Firms become value driven, in part, by sharing information about their customers and competitors across their own organization and other firms. (t/f)

TRUE

Organizations adopting a production orientation can be successful if certain conditions are present. One of these conditions is that demand for the organization's product exceeds supply for that product. (t/f)

TRUE

berkshire hathaway inc, a large property insurance company, owns a large chain of jewelry stores and has recently purchased Russell corporation, a manufacturer of sporting goods. Berkshire Hathaway uses a diversification strategy (t/f)

TRUE

viewing customers with a lifetime value perspective, rather than on a transaction-by-transaction basis, is key to modern customer retention programs (t/f)

TRUE

oligopoly

a few large competitors, promotion is important

which of the following actions, if it actually happened, would most likely support and enhance an operational excellence macro strategy? a. hy-vee lowering milk prices b. nike engaging with their customers to design their next product c. briggs and Stratton implementing new software to improve communications with its suppliers

c. briggs and Stratton implementing new software to improve communications with its suppliers

Which of the following suggests the reason different people have different ethical standards?

each individual is a product of his or her culture, upbringing and other influences

Recently a project team for Cosco, the world's largest children's products company, developed a high chair that could be used as an infant feeding seat, a youth chair, a play chair, a booster chair, and it could be reclined to make an infant bed. Its design could be made and sold for $49. Cosco rushed the chair into production to beat its competition before it was properly safety tested and when some children were injured as a result of this chair, Cosco denied culpability by saying that only a few consumers had had any trouble with the chair. These consumers had not read the instructions that came with the chair and had assembled it improperly. Cosco's actions exemplify which of the following philosophies?

utilitarianism

Customer___________ is defined as the relationship between benefits and the sacrifice necessary to obtain those benefits.

value

value is

what you get for what you give

a generational cohort is a group of people

who are of the same generation