Marketing Fundamentals - Business 115. Test 1

Why are marketers interested in consumers' levels of disposable income?

It is a ready source of buying power.

What type of competitive structure exists when a firm produces a product that has no close substitutes?

Monopoly

If all the gas stations in a city collaborated to determine what gas prices should be charged, they would be violating the

Sherman Antitrust Act.

When PepsiCo takes the information collected through research and attempts to assess and interpret what it means for its soft-drink marketing efforts, PepsiCo is engaged in environmental

analysis.

A ____ is created when a company matches its core competency to opportunities it has discovered in the marketplace.

competitive advantage

All marketing mix decisions must have two characteristics: ____ and ____.

consistency; flexibility

A ____ is something that an organization does extremely well and may give a company an advantage over its competition.

core competency

The focal point of all marketing activities is

customers.

Consumers buying products online have dramatically affected the ____ variable of the marketing mix.

distribution

To monitor changes in the marketing environment effectively, marketers must engage in

environmental scanning and analysis.

The 1990 Nutritional Labeling and Education Act directly prohibits

exaggerated health claims on food packages

When using credit to make purchases, consumers are

increasing current buying power at the expense of future buying power.

Realizing that consumers have begun to seek vehicles that use less gasoline, Toyota heavily promotes its hybrid automobiles to capitalize on this ____ while the strategic window is open.

market opportunity

The percentage of a market which actually buys a specific product from a specific company is referred to as that product's

market share

Deciding to add gel insoles to its running shoes would be a change in the ____ element of the marketing mix for Nike.

product

Boca Burger's website features information about products, recipes, and nutritional values, but customers cannot actually purchase products from the website. This website is most likely used primarily as a ____ marketing tool.

promotional

The three basic forms that a product can take are

services, ideas, and goods.

Successful business organizations should take actions to convert internal weaknesses into ____ and external threats into ____.

strengths; opportunities

Kashi Heart to HeartTM cereal is aimed at people concerned about their heart health. These people represent the Kashi

target market.

Distribution, price, promotion, and product are all elements of

the marketing mix.