marketing quiz 5

Jeremiah Industries has 27% of the current market share. However, Jeremiah's management believes they can expand the current $470 million market by 13% and increase their market share to 25%. How much will Jeremiah Industries generate in new revenue?

$132.78 million

Restaurant XXY is committed to changing its menu to provide healthier fare. However, the transition is increasing the costs per meal by 10% and sales have fallen off by 5%. Profit margin before the change was 11.1%. Sales revenue before the transition was $527 million and the meal costs were $129 million. Assume other costs remained a constant percentage of sales. How much did the firm spend on meal costs after the transition?

$134.93 million

Firm CCC entered into a contract manufacturing agreement with Country X to avoid a 9% tariff on imports. How much money will Firm CCC save with the agreement if it would normally import $45 million of product into Country X?

$4.1 million

Hi-Tech Product Firm X maintains a website where users can search the database for answers to their tech problems. The firm estimates that the website keeps it from having to hire and train another 11 service reps. The annual cost to hire and train one service rep, including their annual compensation, is $72,900. The website costs the firm about $249,000 a year to maintain. What is the annual savings to Hi-Tech Product Firm X of keeping this website active and current?

$552,900

Socially conscious clothing firm Patagonia's 2021 revenue was $220.6 million. How much of this revenue was generated during November and December if 60% of sales occur during the first 10 months of the year?

$88.24 million

FirmTotal Revenue (in millions)​Marketing Budget (in millions)Net Income (in millions)​% Market Share - this year% Market Share - last yearFirm YYQ$190​$19.5​$22.9​26%28%Comp. A$202​$25.2​$20.9​32%31%Comp. B$154​$17.6​$27.0​24%21% What percentage of revenue does Firm YYQ spend on marketing?

10.3%

FirmTotal Revenue (in millions)​Marketing Budget (in millions)Net Income (in millions)​% Market Share - this year% Market Share - last yearFirm YYQ$195​$18.3​$22.7​28%29%Comp. A$203​$25.5​$17.1​29%31%Comp. B$162​$18.4​$23.9​23%22% What is the highest profit margin among these three firms?

15%

FirmTotal Revenue (in millions)​Marketing Budget (in millions)Net Income (in millions)​% Market Share - this year% Market Share - last yearFirm YYQ$189​$18.1​$22.5​27%28%Comp. A$219​$29.2​$17.7​29%31%Comp. B$153​$17.6​$27.1​24%19% What was the percentage change in Comp. B's market share from the previous year?

26.32%

Mobile ad spending now accounts for ________ of all U.S. ad spending.

34%

Which of the following statements is true of viral marketing?

Because customers find and pass along the message, viral marketing can be very inexpensive.

To decrease direct marketing abuses, government agencies are investigating do-not-call lists, do-not-mail lists, do-not-track-online lists, and ________.

CAN-SPAM legislation

Which of the following is true about email marketing messages?

Email marketing messages are effective in reaching the desired target market and result in low costs.

________ ventures consist of one company joining forces with foreign investors to create a local business in which they share ownership and control.

Joint ownership

Which of the following statements is most likely true of market follower strategies?

Market followers must keep manufacturing costs and prices low or product quality and services high.

What is a disadvantage of a viral success?

Marketers have little control over where the message ends up.

Which of the following is a reason a consumer would follow a company's blog?

The blog offers fresh insights or new ideas about the company or products.

Which of the following is a disadvantage of using blogs as a marketing tool?

The blogosphere is cluttered and difficult to control.

Consumer advocates call for the following additional rights which do NOT include which one?

The right to charge different prices to different customers for the same item

Which of these nations is most likely to score highest on individualism using Hofstede's Six Dimensions of National Culture framework?

United States

Which of the following is most likely an advantage of viral marketing?

Viral marketing produces engagement and positive exposure for a brand.

________ serves as a guide to the future by showing how the company's products and services, processes, and policies must evolve and what new technologies must be developed to get there.

a sustainability vision

A company can manage its international marketing in all of the following ways EXCEPT ________.

advertising internationally

Location tracking apps on smartphones ________.

are increasingly viewed as an invasion of consumer privacy

Companies risk losing their home markets ________.

as they may find foreign competitors in their own backyards

A(n) ________ is designed to present brand content that engages consumers and creates a customer-brand community.

brand community website

Strategies that strongly position the company against competitors and give it the greatest possible competitive advantage are called ________.

competitive marketing strategies

Benchmarking is a powerful tool for increasing a company's ________.

competitiveness

A(n) ________ is the process of identifying, assessing, and selecting key competitors.

competitor analysis

For some companies, digital marketing serves as a(n) ________ for companies which sell purely digital products and typically deliver value to consumers entirely via online or mobile platforms.

complete business model

Jacob Engineering Group views and organizes its marketing activities from the viewpoint of its buyers. Management works hard to sense, serve, and satisfy the needs of its well-defined group of buyers. What does Jacob Engineering Group practice?

consumer-centric marketing

More than half of Gen Z consumers aged 18 to 23 years old will always research a company to ensure that it aligns with their position on social responsibility issues before making a purchase. This example shows that ________.

consumers choose eco-friendly products that align with their social values

In ________, text-based ads and links appear alongside search engine results on sites such as Google, Yahoo!, and Bing.

contextual advertising

Monica Carey is a conscientious marketing manager. Sometimes it is unclear what decisions to make when she and her staff are faced with moral dilemmas. To help them handle such situations, Monica and other managers should create broad guidelines that everyone in the organization must follow. Which of the following terms best describes these guidelines?

corporate marketing ethics policies

Xerox Corporation's Equipment Remanufacture and Parts Reuse Program converts end-of-life office equipment into new products and parts. This not only helps sustain the environment, but it is also highly profitable for the company. This practice is an example of a ________.

cradle-to-cradle practice

Critics charge the marketing system with creating ________ by constantly assaulting our senses with marketing and advertising messages.

cultural pollution

Today's marketers must embrace the concept of ________, which is integrating data from different sources-such as cookies, location tracking, website and mobile navigation, credit and loyalty card usage, consumer research, and others-to build a comprehensive picture of consumer omni-channel behavior.

data fusion

Which of the following major decisions should a company make immediately after it decides to operate internationally?

deciding which markets to enter

The existence of competitors results in several strategic benefits to include all EXCEPT ________.

decreasing total demand

________ products, such as bad-tasting and ineffective medicine, have neither immediate appeal nor long-run benefits.

deficient

To gain competitive advantage, a company should do all of the following EXCEPT ________.

deliver value at the same price as competitors and decrease market share

IBM's Global Asset Recovery Services business is designed to reuse and recycle parts from returned mainframe computers and other equipment. In a recent year, IBM processed more than 37 million pounds of end-of-life products and product waste worldwide, stripping down old equipment to recover chips and valuable metals. This is an example of ________.

design for environment (DFE)

Demographic characteristics, geographic characteristics, economic factors, sociocultural factors, and political and legal factors all help a company ________.

determine a market's potential

Which of these advances in technology is energizing global marketing?

digital commerce platforms

________ are detailed, nuanced, and tangible representations of prototypical consumers to be targeted by the digital campaign.

digital consumer personas

In addition to sending samples of sheet music to schools, Gary sends school music directors messages with links to sample digital clips of the compositions. What kind of marketing is this?

email marketing

________ is an organized movement of concerned citizens, businesses, and government agencies designed to protect and improve people's current and future living environment.

environmentalism

________ assert that the marketing system's goal should not be to maximize consumption, consumer choice, or consumer satisfaction but to maximize life quality.

environmentalists

After establishing a loyal customer base, Gary was convinced that a Treble Clef website could benefit a variety of customers. He began with a simple website that provided information about the store and the types of gifts and services available....The Treble Clef's first venture into digital marketing was ________.

establishing the website

Which of the following is a market leader strategy?

expanding market share

As digital marketing has grown, its costs have steadily fallen. t/f

false

Companies do not differ in how they approach the strategy-planning process. t/f

false

Digital marketing involves targeting broad segments of customers. t/f

false

Global marketing and global trade are synonymous. t/f

false

Tracking the consumer through the omni-channel decision process is an easy process given today's advanced technologies. t/f

false

Viral marketing allows marketers to send tailored messages to targeted customers who have chosen to receive them. t/f

false

An advantage of licensing to a company is that it ________, while the licensee gains production expertise or a well-known product without having to start from scratch.

gains entry to a foreign market at little risk

A ________ company is one that, by operating in more than one country, gains marketing, production, research and development, and financial advantages that are not available to purely domestic competitors.

global

A company should make several important decisions before deciding which markets to enter. These include all of the following EXCEPT ________.

how many different products it wants to offer

The two key economic factors reflecting a country's attractiveness as a market are its industrial development and its ________.

income distribution

Rather than challenging head on, a challenger can make a(n) ________ attack on the competitor's weaknesses or on gaps in the competitor's market coverage.

indirect

Joanna uses her smartphone to accomplish many tasks every day. She is also an avid shopper. Which online marketing tool will benefit Joanna the most to help her shop?

instant deals and digital coupons

Which of the following is generally regarded as the toughest issue of public policy and ethics confronting the direct marketing industry?

invasion of consumer privacy

Which of the following is a negative aspect of a competitor-centered company?

it becomes too reactive

Disney's Hong Kong Disneyland is run by Hong Kong International Theme Parks Ltd, of which the local government owns 53 percent and Disney owns 47 percent. This is an example of ________.

joint ownership

Critics have charged that the marketing system creates all of the following EXCEPT ________.

judgement of people based on who they are

In Japan, Budweiser beer flows from Kirin breweries, and Moringa Milk Company produces Sunkist fruit juice. These are examples of ________.

licensing

The American Marketing Association (AMA), an international association of marketing managers and scholars, developed a code of ethics that calls on marketers to adopt all of the following ethical norms EXCEPT ________.

lower standards to compete effectively

Mobile marketing is used to enrich the brand experience, stimulate immediate buying, or ________.

make shopping easier

Nintendo, producer of the Wii video game console, might define its competitors as other makers of physically interactive video games. But from a(n) ________ point of view, it would include all firms making physically interactive recreational products.

market

A runner-up firm that is fighting hard to increase its market share in an industry is a ________.

market challenger

Gant Hardware is a huge chain of hardware stores. GantHardware.com helps customers conduct product research and also lets them order directly online or redirects them to the nearest Gant retail store. Which of the following best describes GantHardware.com?

marketing website

Ronaldo uses WhatsApp to show his love of pugs. The cute little dogs are adorable, and he posts a new photo and a few words about his two pugs every day. What type of platform is Ronaldo using?

messaging platform

The ________ is an immersive digital environment, often using virtual- or augmented-reality technology, where virtual avatars representing real people work, play, learn, socialize, shop, and generally communicate with one another.

metaverse

Walmart, Costco, and Southwest Airlines serve customers who want reliable, good-quality products or services that are also reasonable and easily available. These companies are all known for pursuing a value discipline known as ________.

opperational excellence

Josh received an email stating that he had won a lottery of $500,000 from Lottors Corporation. The email asked Josh to send his bank account details and social security number to transfer cash directly to his account. Josh did not remember buying any lottery tickets, and so was apprehensive about providing his bank details without verification. Which of the following is illustrated from this scenario?

phishing

Which of the following is a type of identity theft that uses deceptive emails and fraudulent websites to fool consumers into revealing their personal data?

phishing

When Amazon entered India's market with the Amazon Echo it changed the Echo's virtual assistant Alexa's voice to be able to converse in Hinglish. Although many Indian's understand both English and Hindi, they feel more comfortable with an Alexa who sounds like them. This is an example of ________.

product adaptation

Apple has churned out one cutting-edge product after another. It all started with the sleek, affordable Apple Macintosh, the first personal computer ever to feature a graphic user interface and mouse. That was followed by an Apple-led revolution in which groundbreaking Apple products such as the iPod, iTunes, the iPhone, and the iPad all created whole new categories where none previously existed. Apple is an example of ________.

product leadership

McDonald's has committed to designing all packaging from renewable or certified resources and making recycling an option at all locations by 2025. This is an example of ________.

sustainability initiative

Which of the following is an example of an economic community?

the EU

Environmentalism is concerned with all of the following EXCEPT ________.

the growth of government spending

Amazon at first defined itself in product terms-as online bookstore competing against physical bookstores by offering a huge selection of books, conveniently available and at market-beating prices. Before long, however, Amazon adopted a broader view. It defined itself as "the Earth's most customer-centric company," where customers could find and discover anything they might want to buy online. This is an example of ________.

the market concept of competition

Consumer advocates call for additional consumer rights, including ________.

the right to be well informed about important product aspects

As a fifth and final step in the global marketing process, a company must set up a global marketing organization. t/f

true

As more developed markets stagnate and become increasingly competitive, many marketers are now targeting growth opportunities in emerging markets. t/f

true

Blogs can be used to appeal to specific special-interest groups, about almost any topic. t/f

true

Digital marketing gives small vendors a low-cost opportunity to market their products around the world. t/f

true

Given the nature of mass-communication channels, some Good Green Grocer ads are bound to reach people who have no interest in their products and are therefore bored or annoyed. t/f

true

Strategic moves-termed value innovation-create powerful leaps in value for both the firm and its buyers, creating all-new demand and rendering rivals obsolete. t/f

true

The Treble Clef's Facebook page and business website are both examples of digital marketing. t/f

true

The ad industry uses an advertising option icon that allows consumers to opt out of seeing a particular ad. t/f

true

The bottom line for Essential Beauty is that there are many approaches to developing effective competitive marketing strategies. t/f

true

The goal of a "blue ocean strategy" is to make competition irrelevant. t/f

true

Total digital advertising spending now makes up an estimated 58 percent of all U.S. advertising spending. t/f

true

While blogs are fundamentally a consumer-controlled medium, marketers can ________.

use insights from them to improve their marketing programs

Beyond greening activities do NOT include ________.

using non-recyclable packaging

Each ________ defines a specific way to build lasting customer relationships.

value discipline

Uptown-Clean Crew is a company that provides house-cleaning services in major urban and suburban areas. Marketers at Uptown-Clean Crew developed a short, humorous video promoting the company's services and posted it online. Soon the video was a rage as customers who saw the video found it hilarious and they passed it on to their friends and colleagues calling it the "Uptown comedy." Which form of marketing is illustrated from this scenario?

viral marketing

A market challenger must first define ________.

which competitors to challenge

The competitive intelligence system includes all of the following EXCEPT ________

withholding information from decision makers