Marketing Exam #1

False

True or False: The marketing mix is uncontrollable by employees within the organization, such as the marketing manager, since competitors and customers largely make strategic marketing decisions

Test Marketing

Adidas had decided to introduce a brand new $500 platinum sneak in a limited market consisting of only four cities. They plan to monitor the reaction of potential customers to the new product, promotions, and pricing strategies, in order to ensure a more effective nationwide rollout in the future. Adidas is going to use:

Tangible, Intangible

Both _____ goods and _____ services require marketing in order to be successful.

Segmentation

Dividing a diverse market into groups of customers who share similar traits or characteristics is the process known as:

Primary Data

Information collected for the first time for a marketing research study to solve a particular issue is called:

External

Outside individuals or groups serve as _____ influences that affect the way a consumer moves through the decision-making process.

Product Strategy

Planned obsolescence, poor quality and deceptive packaging raises issues of ethics in:

5 stages of consumer decision making

Problem Recognition, Information Search, Alternative Evaluation, Purchase Decision, Post-Purchase Evaluation

Evaluation of Alternatives

Roman has been known to say, "If you ever see me with anything other an iPhone in my hand, check my pulse. I must be dead." When Roman buys a new cell phone, he obviously skips the _____ stage of the consumer decision process.

Promotion

_____ is communication via advertising, public relations, sales promotions, direct marketing, online marketing, and/or professional selling that is used to inform, persuade, or remind the target market of the benefits and value of a product.

Product

tangible good or intangible service created to satisfy a need or want

Internal

A consumer's own attitude, experiences, knowledge, and self-image serve as _____ influences that affect the way a consumer moves through the decision-making process.

Concentrated/Niche Marketing

A firm may focus its efforts on profitability satisfying a single smaller target market instead of attempting to sell its products to several segments. This concept is known as:

Demographics

Age, Income, Gender, Generation, Marital Status, Family Size, Occupation, Education, Ethnicity, Religion

Observation

At the Fisher Price playlet, scientists allow children to play with a variety of toys in development while they watch their reactions through a one-way mirror. This helps the Fisher Price team determine the right features for their product, including shape, size, color, and more. This type of research uses:

Impulse

By placing candy and soda in vending machines at local schools, parks, and other public places, marketers hope to increase purchases for these _____ purchases.

Geographic

Country, Region, City, Urban/Rural, Climate

The Compass Test

Ethical tests include all of the following EXCEPT:

Exploratory, Descriptive, Diagnostic, Predictive

Functions of Marketing Research

Routine

Jennifer was a loyal customer of the Weight Watchers program for many years, and she still buys their frozen entrees in the grocery store in order to maintain her weight. She finds the meals to be quick and tasty and provides her with a calorie conscious and inexpensive solution for lunchtime while at work 5 days of the week. The Weight Watchers frozen meals have become a(n) _____ purchase for Jennifer.

Sustainability

Kohl's department stores utilize waste reduction, recycling programs, energy efficiency initiatives and solar and wind powered buildings in an effort to reduce the use of water and traditional energy across the organization. Kohl's is committed to protecting and conserving the environment by seeking innovative solutions that encourage long-term:

Marketing Mix

Marketing activities are customarily divided into four different strategies: product, price, place, and promotion. Select the term that best describes the four P's.

Managers can interpret the information and make decisions that will positively impact the company

Marketing research is designed to provide relevant information in a useful format so that:

They usually include 6 to 12 participants

One thing that is usually true of focus groups is that

Marketing Ethical Issues

Products that pollute the environment, companies that use child labor in the production of their products, and marketing products that are unhealthy, are all examples of:

Cognitive Dissonance

Sarah just bought a new high end luxury car for $90,000. When she drove the car off the lot, she experienced a high level of anxiety about whether she has made the right purchase decision. Sarah experienced:

Observation

Sephora is interested in improving its store layouts to allow for better flow during busy shopping periods. The researcher in charge of the study would like to examine shopper patterns to determine how frequently customers turn left when they walk into the store and which aisles are most popular. The best method to collect this data would be

Socially Responsible

TOMS is a shoe company that, since its inception, has given away one pair of shoes to someone in need for every pair purchased by a customer. They have expanded their philanthropy and now support programs designed to provide eye exams and glasses, clean drinking water, and safe birthing services to people in need in various parts of the world. Customers loyal to the TOMS brand believe the company is _____ through their participation in these charitable efforts.

Consumer Behavior

To better understand why consumers buy, how they shop, and their attitudes and motivations, marketers study the field of _____, where concepts from the field of psychology are applied to the marketing industry.

Profit

To calculate _____, a company must subtract expenses from revenue.

True

True or False: A high involvement decision commonly leads to greater cognitive dissonance.

True

True or False: Social media companies recognize the importance of demographic segmentation by using variables, such as age, to determine who their audience is.

True

True or False: The four strategies that are blended into the marketing mix to meet the needs and preferences of a specific target market are product, pricing, place, and promotion.

True

True or False: The growing need for marketers to practice segmentation and target marketing is a direct result of the growing consumer desire for products that are tailored to meet their needs

Return on Investment

_____ is calculated by dividing net profit by the amount of investment.

Promotion

communication via advertising, public relations, sales promotions, direct marketing, online marketing and/or professional selling that is used to inform, persuade, or remind the target market of the benefits and value of a product

Marketing Concept

the philosophy that firms should analyze the needs of their customers and then make decisions to satisfy those needs better than the competition

Being costly and time consuming

Quantitative research techniques have the disadvantage of:

Business-to-Business Exchanges

Robert is the marketing director for a real estate agency that specializes in a commercial real estate. Part of his job responsibilities include developing brochures and business cards for the agents, purchasing billboard space to promote he company's bran, and purchasing ad keywords in high profile search engines. All of these purchases that he makes on behalf of the real estate firm are examples of:

Psychographic

Study abroad programs at universities worldwide promote the fact that they offer a unique opportunity for college students who appreciate diversity, are adventurous in spirit and enjoy new experiences. These students have a different outlook on life, compared to most college students. Based on this information, which form of segmentation has proven to be most useful to them in better understanding their audience?

Exploratory research used to gain an understanding of underlying reasons, opinions, and motivations

What is meant by qualitative research?

Demographic

Chico's, an upscale women's clothing store, targets professional women, ages 40 and 60 years old with an average household income of $80,000 or more. This is a form of _____ segmentation.

Positioning

Creating a mental image of the product offering and its differentiating features in the minds of the target market

Observing

Ethnography, Customer Data Analysis, Social Listening

False

True or False: Marketing can be identified primarily as the activities of advertising and personal selling

False

True or False: Marketing concepts and techniques can only be applied in profit-oriented businesses.

False

True or False: Mass Marketing is a target marketing technique widely practiced by major manufacturers and retailers today

False

True or False: Profit should be the primary goal of a firm, regardless of ethical implications

Complementers

_____ are often situated in a retail store near the products with which they are typically sold.

Place

the distribution channel, or the route, through which goods move from the manufacturer to the final user; the ultimate location where the product is made available to the customer for purchase and/or consumption

All of the Above (Time, Money, Effort)

Customers may give up _____ in order to get (purchase) something they need or want.

Who the target market is and what their needs and wants may be

Daniel is the Marketing Director for a major consumer packaged goods company. After conducting marketing research, he has a few innovative ideas about. how his company can better utilize their promotional efforts to motivate customers to buy more product. He understands the importance of planning and wants to develop a marketing plan. IN order to create the right marketing mix strategies, Daniel should focus on:

Price

Jodi found the perfect location for her new jewelry boutique in a wealthy, downtown area of the city. She has signed exclusive agreements with several major distributors and has worked closely with an advertising firm to develop the right promotional activities to let potential customers know about the grand opening Based on this description, which aspect of the marketing mix does she still need to work on?

Consumer-to-Consumer Exchange

Leah is in the market for a vintage album by Nat King Cole and has decided to use Ebay to try and find this unique product. She is thrilled when she learns that a woman in Tucson, Arizona is actually selling her mint condition album and that no one has bid on it yet. After her winning bid on the auction, Leah pays the seller and anxiously awaits the album by mail next week. This transaction can best be defined as a:

Psychographics

Lifestyle, Personality, Activities, Interests, Opinions

Primary; Secondary

Marketers often race too quickly into research studies to collect _____ data because it is designed to address their specific questions, while _____ data may exist that can sufficiently address the marketer's questions at a much lower cost.

Open ended questions that allow for deep insights

Qualitative research is characterized by:

Questioning

Surveys, Interviews, Focus Groups

Marketing Research

Systematic and objective gathering marketing-related data to produce information that can be used in decision-making (Who are my best customers? Why is my growth slowing? What will customers want next? What message will prompt action? Which price point will sell the most? What will if we...?)

Promotion

Tanya is opening her own boutique store selling name brand footwear for women. She has signed exclusive agreements with several major luxury manufacturers. These manufacturers have given her a suggested retail price (MSRP) that her research with potential customers has confirmed is the right price point. She has signed a lease on the perfect location for her new boutique in a wealthy, downtown area of the city and has begun remodeling the store to fit the image of her brand. Based on this description, which element of the marketing mix does Tanya still need to work on?

Experimenting

Test Marketing, Lab or Field Experiments

A consumer recognizes an unsatisfied need

The consumer buying process begins when:

The Exchange Process

The essence of _____ is that two people/entities will each give something of value to the other so that both are satisfied with their transaction or relationship.

To determine the company's research goals

The first step in the marketing research process is always:

False

True or False: Consultative selling is only used in the purchase step of the decision-making process.

Behavioral

Usage Rate, Loyalty, Product Knowledge, Involvement, Purchase Occasion, Buying Stage

Price

What a customer gives in exchange for what they get; the quantity of payment or compensation given by one party to another in return for one unit of goods or services

Geographic

Home Depot begins running magazine advertisements for patio furniture during the winter months in states such as Florida, Texas, and Arizona, while they wait until late spring to begin advertising these same items in northern climates. Hone Depot likely practiced _____ segmentation to help them identify when to utilize media at the times when their customers are most apt to be considering outdoor living purchases.

Post-Purchase Evaluation

Once Wendy and David purchased their new home, the realtor who represented them stopped by with a basket of housewarming items. She commented on how lovely the house looked with the fresh paint on the walls and the finishing touches of decor and furnishings the couple had added. The realtor knew that the couple was in the _____ stage of the consumer decision making process and wanted them to feel good about their big decision.

A one-way frequency table/graph

The most common way to analyze the frequency of responses to any survey question on a questionnaire is by:

Behavioral segment

The product-related segment of the consumer market that is based on what people do is called the:

Members of a sample completing a questionnaire

The survey method of data collection for marketing research may include

True

True or False: One temptation that may draw marketers to unethical business practices is that the practices gain profit in the short term. Frequently, though, such practices sacrifice customers in the long run

False

True or False: Short term profitable decisions always lead to maximization of long term profits because long term profits are the sum of all short term profits

True

True or False: Utilizing external sources of information is most common when high involvement decision-making exists.

True

True or False: When General Electric retrieves customer purchasing profile data from its vast computer systems in order to plan a target marketing program, it is accessing secondary data

Positioning

_____ in the mind of the consumer is often difficult to establish and even more difficult to change.

Self Image

Although Heather lost 50 pounds last year and dropped 4 sizes from a size 16 to a size 8, she still routinely goes first to the women's plus size section of her favorite department store before realizing that these sizes no longer fit her figure. Heather doesn't feel any different and doesn't see a huge difference when she looks in the mirror, because her _____ has not yet changed.

The Golden Rule

As a brand new employee, John received a handbook during orientation to help him understand the corporate culture of the firm. The last line of the company's mission statement said "Do unto our customers as you would have them do unto you." The company is promoting the use of _____ to gauge ethical decision making in an employee's daily interaction with customers.

All of the Above (Geographic, Demographic, Psychographic)

Ashton Woods has begun building new townhome communities in order to appeal to smaller families who would like a beautiful upscale home, without the cost of maintaining a large yard. These households typically earn over $80,000 annually through professional employment, live in suburban areas, and have little extra time due to the demands of their careers. Whether single or married adults occupy the home, there is usually a presence of children in the home, so homeowners are seeking locations convenient to good, local schools. What type of segmentation does Ashton Woods practice?

True

True or False: Illegal actions are also considered unethical

False

True or False: A local car dealership had a reputation for knowingly selling "lemons" (automobiles with recurring mechanical problems), although they also recently donated $5000 to the Boys & Girls Club to buy equipment and uniforms for disadvantaged children who could not otherwise afford them. This dealership could be considered ethical

True

True or False: An internal search for information always occurs, even briefly, when making a buying decision.

A 2-liter of soda

For which of the following purchases is decision-making MOST likely to be low involvement?

Cultural Norms

Global firms encounter additional challenges when attempting to make ethical decisions, since _____ may vary by country or region

A differentiated strategy

Goya's strategy of appealing to the Hispanic market (both older and younger generations), as well as the mainstream U.S. population with a variety of products/product lines, can best be described as:

Behavioral

A large bank is promoting its credit card to existing bank customers who have had more than one account with the bank over the past 5 years. Direct mail and web based promotions will be used to entice customers to participate by communicating the perks of this program: no annual fee, a low introductory interest rate, and $500 cash back offer to open the credit card account. The bank used the principles of _____ segmentation to identify this audience.

Concentrated/Niche Marketing

Pizza Heaven is a small specialty pizza shop that just opened its doors in the downtown area this year. They serve only menu items that are organic, gluten free, and vegan. The idea targeting strategy for this type of business would be:

Assess the internal and external forces acting on a market, in order to discover and evaluate opportunities

Purpose of Situational Analysis (PEST[Political, Economic, Social, Technology Environment], SWOT, Porter's 5 Forces, 4P3C)

Positioning

The space or brand or product occupies in a consumer's mind, relative to competitors. This is a strategic guide to future marketing decisions

False

True or False: Behavioral segmentation focuses on separating groups of customers based on the ethical or unethical things they do.

True

True or False: It will be difficult, if not impossible, for a product to be successful if any of the elements of the marketing mix are overlooked or poorly planned.

False

True or False: The survey method of marketing research was developed in order to allow researchers to directly observe and measure individual behavior

True

True or False: There is often not one right answer to ethical dilemmas

Basic Definition of Marketing

Understanding a customer's needs and satisfying them better than any other competitor

Place

In the last decade, the _____ strategy has been significantly impacted by the ability for customers to order products via mobile apps, the Internet, and free-standing kiosks. These activities are most closely associated with which element of the marketing mix?

Positioning

When Sierra thinks about Chick-Fil-A, she immediately thinks about the high quality chicken sandwich that she last ate there, served hot and fresh by fast and friendly employees. Next, she recalls the clever cows that she is used to seeing on local billboards and in store to promote the brand. The _____ of the Chick-Fil-A brand is firmly established in her mind, based on how the brand communicates with her and ultimately provides a positive experience.

Extensive

When decisions are _____, consumers engage most (i.e. spend more time) in the consumer decision making process.

Believe both qualitative and quantitative research can be useful to gain detailed insight and then statistically confirm findings

When making important strategic decisions, managers:

A company looks at a previous taste-test conducted in a local supermarket

Which of the following is an example of secondary data?

All of the Above (What features should the product have? What message should be used to promote the product? What retailers should be used to sell the product to the customer? How much should the product cost?)

Which of the following questions must be addressed when making marketing decisions?

All of the Above (Deceptive sales tactics, Bait and switch advertising/promotions, Diversion, Targeting children with products that are not good for them)

Which of the following types of unethical behavior may be observed in marketing environments?

What their customers need

While geographic and demographic segmentation of retail customers is relatively simple and useful, these characteristics do not assist marketers in determining:

All of the Above (Misleading advertising messages, Products that are not healthy for consumers or the environment, Manipulative sales techniques, Deceptive claims the brand may make about the product benefits)

Within the marketing mix, which of the following unethical issues may be commonly encountered?

Public Disclosure

A large retailer of exotic teas has just imported a popular tea from Peru made from cocoa leaves. Although cocaine is produced from the cocoa plant, the alkaloid content of the leaf is so low that when brewed in tea, it does not produce the same effects as cocaine. Regardless, the marketing manager of the corporation is concerned that omitting this information could eventually hurt the image of the brand if the media begins talking about it and the public becomes aware that they secretly kept the information from them. The marketing manager is using the _____ test of ethical decision making.

Electricity/Utility service for your home

High involvement decisions include all of the following EXCEPT:

Target Marketing

Identifying markets with unfulfilled needs, segmenting the market, targeting specific segments, and positioning one's product or service are the four basic steps of:

Marketing is the only important business function within for-profit firms

Your parents ask why you are taking a class in marketing and why it is important for your future. All of the following are possible responses EXCEPT:

Corporate Social Responsibility

The Samsung Corporation made many contributions to education, including building libraries and donating books, while at the same time delaying the recall of the Samsung Galaxy smartphone that was exploding on planes (due to a faulty battery) and injuring customers. Although Samsungs executives behaved unethically, the company's philanthropic efforts towards improving education are an example of:

Place

Bill is planning on opening a clothing store selling apparel for men. He has signed exclusive agreements with several major luxury manufacturers. These manufacturers have given him a suggested retail price (MSRP) that his research with potential customers has confirmed is the right price point. He has met with a local graphic design firm who will be developing displays, signs and print ads to build awareness of his business. Based on this description, which element of the marketing mix does Bill still need to work on?

True

True or False: A well-designed internet-based marketing research project can cost less yet yield faster results than face-to-face (offline) research

The importance of sacrificing short-term profits for long-term credibility

In the early 1980s, 7 people in the Chicago area were poisoned by Tylenol capsules laced with cyanide. Although the company's investigation showed that the tainted capsules had not been tampered with at the factories where they were produced, Johnson&Johnson took immediate action through a massive recall and offered a $100,000 reward for information leading to the arrest of the person or people responsible. Industry experts believe that this led to the brand's ability to recover from the negative publicity surrounding the "Tylenol Murders." Johnson&Johnson's actions illustrate:

Primary Research

David manages an upscale Italian restaurant. He would like his customers' opinions on a variety of new menu options they are considering offering. He plans on reading the name and description of each dish, as it will appear on the menu, and allowing customers to taste each menu item so that they may provide detailed feedback to the chef and marketing team. David will most likely use _____ to gather this type of data.

Target market

The group of consumers most likely to purchase a particular product are called a

Need Recognition

After practicing baseball for the last 3 hours, Steven's stomach was grumbling with hunger. He decided to look for a fast food restaurant on his way home where he could stop for a meal. Steven had just completed the step of the consumer decision-making process known as:

Differentiated Marketing

Costs of production, inventory, and promotion generally increase when a firm practices the concept of:

Organizational Values

The morals and values that an organization holds to be most important is referred to as:

Increasing the return on investment for stockholders

The AMA's Code of Ethics offers sound advice to marketers on how to maneuver through difficult ethical dilemmas. Which of the following is NOT one of the ethical values or guidelines presented in this code of ethics?