Marketing Exam 1

Conscious marketing encompasses all of the following overriding principles except

recognition of the company's bottom line.

The first objective in the evaluate performance phase of the marketing planning process is to

review implementation programs and results using metrics.

________ entails a sense of purpose for the firm that is higher than simply making a profit by selling products and services.

Conscious marketing

Customer retention programs are based on what concept?

Customer relationships should be viewed from a lifetime value perspective rather than on a transaction-by-transaction basis.

How might a technology company like Apple ensure that it behaves in a socially responsible way toward its employees?

It can ensure that pay practices are fair at all levels of the company.

________ involves the process of defining the marketing mix variables so that target customers have a clear, distinctive, desirable understanding of what the product does or represents in comparison with competing products.

Market positioning

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, how should Nike treat its athletic shoe business?

Nike's athletic shoe business still requires some investment, but it is likely to produce excess resources that can be invested in other divisions of the company.

The XYZ firm is in Step 4 of its ethical decision-making process. Executives were asked to take the Publicity Test using an ethical-decision making metric. All scores were in the "No" column. What does this mean?

The situation is ethically troubling to the executives.

To avoid having ethical situations become problematic for a firm, the short-term goals of each employee must

be aligned with the long-term goals of the firm.

Compared to the average company, firms with strong ethical climates tend to

be more socially responsible.

Courses of action such as halting the market research project, making responses anonymous, and instituting training on the AMA Code of Ethics for all researchers would be identified during the ________ stage.

brainstorming

The idea of value-based marketing requires firms to charge a price that

captures the value customers perceive that they are receiving.

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

control

Every year, General Mills issues a report discussing how the firm has performed against its own standards of conscious marketing. This report is part of General Mills' ________ phase of its strategic marketing planning process.

control

Disney's My Magic system, which enables visitors to swipe their Magic Band wristbands to get on rides, make purchases, and open their hotel room door, is an example of ________ excellence.

customer

Fourteenth National Bank prides itself on offering better service than any of its competitors. If this is accurate, and if customers recognize and value Fourteenth National's superior service, the bank creates and delivers value throug

customer excellence.

Angie has gone to the same hair salon for the past ten years. She believes that her stylist, the salon owner, does a better job of cutting and styling her hair than anyone else could. Other salons have opened closer to Angie's home, some offering more plush facilities or lower prices, but she isn't tempted to switch. Angie's attitude toward the salon is an example of

customer loyalty.

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.

Marketing ethics is concerned with all of the following except

distinguishing between right and wrong actions in a business setting.

Many corporations are shifting from defined benefit to defined contribution retirement programs. When considering changes to retirement programs, the primary stakeholders are the

employees.

Which of the following is the third step in the marketing planning process?

identify and evaluate opportunities

Gary 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. The first thing Gary should do is to

identify issues that need to be addressed.

A regional manager at GNC, a chain of retail stores selling nutritional supplements, is reviewing sales data after a recent in-store promotion. The data show success in some stores and limited response in others. To understand the differences between stores, the manager will probably next review the company's

implementation programs, to see if the promotion was handled consistently in the different stores.

Quitman Enterprises sells its business language dictionary to college students throughout the United States. Joseph Quitman, the owner, wants to start selling the book to international students abroad. Quitman wants to pursue a ________ growth strategy.

market development

To determine how attractive a particular market is using the BCG portfolio analysis, ________ is(are) established as the vertical axis.

market growth rate

Andy decides to add new sales representatives and increase advertising to increase sales in her existing market for her current line of security systems. Andy is pursuing a ________ growth strategy.

market penetration

When making decisions, managers often have to decide between doing what is beneficial for themselves (and possibly the firm) in the short run, and doing what is right and beneficial for the firm and for society in the long run. To address this conflict, a firm

must align the short-term goals of each employee with the long-term, overriding goals of the firm.

Marketers that include ethical policies and standards in the firm's mission or vision statements are introducing these concepts at which stage of the strategic marketing planning process?

planning phase

What type of analysis does management use to evaluate the firm's various products and businesses and allocate resources according to which products are expected to be the most profitable for the firm in the future?

portfolio analysis

In 2007, Apple Computer introduced its new iPhone, adding a cellular telephone, a camera, and Internet access to its iPod. The company was pursuing a(n) ________ strategy.

product development

Mary Ann phoned her auto insurance agent to renew her policy. The agent told her about new types of insurance now available—to cover her apartment, or even the engagement ring she just got from her fiancé. The agent was pursuing a ________ growth strategy.

product development

Suppose your university made a sizable investment in its career services—additional counselors, increased efforts to bring in recruiters, and other services aimed at helping students find jobs. This investment would enhance the university's ________ in an attempt to create value for students and recent graduates.

product value

All of the following terms are generally associated with the definition of corporate social responsibility except

profit.

The ethical decision-making framework includes all of the following steps except

promote the firm's corporate social responsibility efforts.

Dwayne's company is facing a difficult ethical issue. The firm has identified the various stakeholders and their issues and gathered the available data. Everyone with an interest in the issue has engaged in brainstorming and evaluating alternatives. Management reviewed and refined the alternatives. It should now choose the course of action that

seems best after weighing the concerns of all stakeholders

Ford Motor Company may be thinking of announcing that it will severely cut back its automobile production. For parts companies supplying Ford its parts, this cut back in production represents a(n)

threat.

Subway is a large chain of franchise sandwich shops. Marcia owns three Subway stores in a large city. At the end of the year, she notes that sales rose from 2 to 5 percent over last year's sales at Stores 1 and 2, but fell 2 percent at Store 3. Based on this information, which of the following is the best course of action as to how Marcia should reward (or punish) her store managers?

She should seek more information about why the stores had different results before making a decision.

In the ethical decision-making metric, the question that asks "Would I want the person I admire most to see me doing this?" applies to the

admired observer test.

Alicia has been asked to approve a marketing campaign that, although it is 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, Alicia will

evaluate the alternative using a series of questions.

After defining the business mission, what should a firm do next to develop a marketing plan?

perform a situation analysis