Marketing Test 1

Which of the following goals meets all the criteria of an effective market strategy objective?

"To increase sales from $1,000 to $2,000 on birthday flower arrangements in 3 months."

Without successful marketing, there is no need for a firm to expand its business or invest in capital expenditures. Which key functional area would be most affected by this lack of growth and investment?

Finance

Factors such as competition, societal change, economic uncertainty, and evolving customer demand are all part of a firm's...

Marketing Environment

A clothing manufacturer has decided to buy its cotton only from those growers that grow it organically. This is an example of...

Tactical Greening

All of the following are major criticisms of marketing except...

Tactical Greening

True or False... A company that decides to use recycled cardboard for its packaging needs is demonstrating sustainability.

True

True or False... A firm that explains how its product packaging is manufactured using less material and water is employing a sustainable marketing strategy known as quasi-strategic greening.

True

True or False... A marketing strategy is a set of actions taken to achieve organizational objectives.

True

Travis has an athletic shoe store and is currently preparing a market summary. To be most effective, the competition section of his market summary should...

identify both direct and indirect competitors.

A consumer need is something one has to have for survival, whereas a consumer want...

is something one would like to have but does not require it for survival.

When making decisions regarding the marketing mix element of place, what key considerations must a firm keep in mind?

location, distribution, and inventory management

Companies like Walmart and Target often locate near each other and close to other shopping options. Both companies know that by following this strategy, they are working toward achieving...

locational excellence.

Bloom's is a small boutique that sells artisan items—from jewelry to pottery to other handmade keepsakes. To create a sustainable competitive advantage, Bloom's hires all local staff, sells only locally made products, and provides free gallery space to local artists. As demonstration of its _____ excellence, Bloom's made the strategic decision to set up shop on Main Street, right in the heart of downtown.

locational.

This strategy focuses on selling existing goods and services to new customers.

market development

This type of growth strategy often involves encouraging current customers to buy more each time they patronize a store or to buy from the store on a more frequent basis.

market penetration

Marketing growth strategies include all of the following except...

market positioning.

The set of marketing actions taken to accomplish marketing objectives is known as a firm's...

marketing strategy.

Which of the following is the role of the promotion element in the marketing mix?

Communicating the value of a product to customers

"Seeing through a problem to the other side" refers to which step in the ethical decision-making framework?

Consider how the decision will affect the stakeholders.

True or False... For companies like Samsung, strategic planning is not necessary because the electronics market is somewhat stable and predictable.

False

True or False... Have you ever been to a new restaurant and found that its food, service, and prices were excellent? Is that restaurant still in business? If not, the restaurant likely failed to create value for its target market.

False

True or False... Millions of people throughout the world buy and enjoy Diet Coke every day. Coca-Cola's ability to deliver the physical product to countless customers globally demonstrates its ability to capture value through effective exchange of the product.

False

Which key characteristic of operational excellence focuses on ensuring that a firm has sufficient staffing, tools, and technology?

adequate resources

A firm implementing an environmental cost leadership strategy is most likely seeking to...

command a price premium for its products.

A firm will know it has achieved product excellence when its customers recognize that its products...

have high quality and add value.

Which of the following is an example of a marketer exhibiting the ethical value of citizenship?

A firm that makes prepackaged meals and sandwiches for offices donates meals and sandwiches to homeless shelters in its community.

Which of the following statements about a marketing manager's role within an organization is true?

A marketing manager is responsible for all the short- and long-term operational and strategic activities of a firm.

Every year the local community center hosts a street fair to raise money for Habitat for Humanity. Along with a cash donation, the local hardware supply stores donate construction supplies. This action illustrates...

Corporate Philanthropy

It's All about the Ice is an Italian ice truck that operates throughout the year—even in the winter. It is located right near the park's entrance in the center of town. Each Italian ice is made from fresh-squeezed fruit juices mixed with filtered water and then frozen. Oftentimes product goes fast, and when it does, It's All about the Ice is done for the day, leaving many waiting customers frustrated and disappointed. Which of the four elements of excellence could It's All about the Ice improve upon to sustain its competitive advantage?

Customer

Which of the following statements defines customer value?

Customer value refers to the perceived benefits, both monetary and nonmonetary, that customers receive from a product.

Cora is facing an ethical dilemma. When she signed up for the newsletter of her company's primary competitor, rather than receive a link to the newsletter, she received instead a link to the company's complete client list. What step in the ethical decision-making framework does this scenario illustrate?

Determine the facts in an unbiased manner.

Which of the following questions would a firm ask if it were using the ethical decision-making framework regarding its promotion?

Does the advertising message represent the product's benefits honestly?

The moral standards expected by society are known as...

Ethics

The advertising element of the promotional mix differs from the other elements in that advertising uses which of the following persuasive tools?

Internet, TV, radio, print, social media

Why should marketers distinguish between needs and wants?

It helps them provide products that fulfill customers' wants and satisfy their underlying needs.

Bouquets and Things has developed a new objective that states, "To increase sales by 5 percent in the next three months." What is wrong with this objective?

It lacks specificity.

Daphne used to work in the city where she would take public transportation to work. However, she just took a new job in the suburbs and now not only has to find a place to live, but also has to buy a car to get to and from her job. For Daphne, these things represent a...

Need

As an online subscription retailer, Fabletics sells most of its athletic wear online, which means that marketing decisions related to ________ are most important.

Place

When a firm is deciding the ethics of outsourcing jobs to other members of the supply chain, what element of the marketing mix is being affected?

Place

Which marketing mix element involves decisions regarding distribution and inventory management?

Place

The marketing mix, often known as the four Ps of marketing, represent areas that a firm can adjust to influence demand for its goods, services, or ideas. If a firm wanted to adjust the cost of a service by 2 percent to stay competitive, on which of the four Ps would it be focusing?

Price

Which of the following strategies is the primary way that firms capture value from customers?

Price

Which of the four Ps of the marketing mix is typically the easiest to change and therefore makes it a powerful tool for firms that are looking to quickly adjust their market share or revenues?

Price

Amazon is an online retailer that sells a combination of goods, services, or ideas; for example, it sells Kindle e-readers, which are a kind of good, as well as Amazon Prime video, which is a kind of service. The Kindle e-reader and Amazon Prime are which P of the marketing mix for Amazon?

Product

Which of the following accurately represents the 4 Ps of the marketing mix?

Product, Price, Place, and Promotion

The four Ps are product, price, place, and...

Promotion

Which of the following statements accurately summarize the importance of strategic planning in marketing?

Proper strategic planning improves the likelihood that marketers will select, adapt, and execute the right marketing actions to maximize success in both the short and long term.

During the rainy season, people look to buy raincoats and umbrellas. Raindrop, an apparels manufacturer, caters to this need. Which of the following actions would represent the conversion of this need into a want?

Raindrop introduces a line of see-through umbrellas that glow in the dark.

The process of thoughtfully defining a firm's objectives and developing a method for achieving those objectives is known as...

Strategic Planning

This improves the likelihood that marketers will select, adapt, and execute the right marketing actions to maximize both short- and long-term success for a firm.

Strategic Planning

_____ is the process of thoughtfully defining a firm's objectives and developing a method for achieving those objectives.

Strategic planning

Which statement about the marketing mix is true?

The primary way that marketers generate value is through decisions on product, price, place, and promotion. These elements are known as the four Ps of the marketing mix.

When a firm accepts constructive criticism from customers and other stakeholders, which AMA ethical value is the firm demonstrating?

Transparency

True or False... Elena is leaving work and wants to pick up dinner on her way home. She is debating between stopping at Two Boots Pizza to pick up a slice or stopping off at Subways to pick up a sandwich. In this example, Two Boots Pizza and Subway are considered indirect competitors.

True

True or False... If marketing is succeeding, all functional areas are able to operate effectively.

True

True or False... Janie thinks that Kleenex is the best brand of facial tissue on the market and refuses to buy any other brand. For Janie, Kleenex has established a competitive advantage over the competing products.

True

True or False... Marketers create value for customers when they develop products that allow consumers to satisfy their needs and wants through exchange relationships.

True

True or False... Marketers should adhere to the AMA Code of Ethics for every marketing approach.

True

True or False... Professionally speaking, the same marketing principles used in business settings can help you market yourself and help you to reach your professional goals.

True

True or False... The label on a bag of chips states that it has half the calories of its competitor; however, the bag itself contains half the number of chips as the competitor. This is an example of deceptive packaging.

True

True or False... When marketers successfully match products to consumers' needs and wants, consumers are more likely to purchase and use those products—and that is where value is created.

True

Which of the following is true of customer value?

Value is what customers receive from a product less what they give to obtain it.

Zbar, a mobile phone-manufacturing company, decides to pursue a market development strategy to further its business prospects. In this situation, which of the following actions falls in line with Zbar's latest strategic direction?

Zbar enters a price-sensitive market with its low-end phones.

An online retailer of handmade bags is considering a change to its return policy because customers are waiting too long to return items, which affects the retailer's ability to resell the returned items. In meetings, several associates cite research indicating that their young clientele cannot afford the shipping expenses. At which point in the ethical decision-making framework is the retailer?

considering how the decision will affect the stakeholders

A product possesses a competitive advantage when it enjoys a superior position over competing products because...

consumers believe it has more value than other products in its category.

CVS is the largest pharmacy retailer in the United States with more than 9,600 stores—to sustain its competitive advantage, it uses a strategy of locational excellence, which means it...

conveniently positions itself in high-traffic areas.

An organization's obligation to maximize its positive impact and minimize its negative impact on society is known as

corporate social responsibility.

If customers perceive that a product is meeting their needs and wants, they will buy the product, allowing the product to succeed. This success testifies to the firm's ability to...

create value for the customer.

Which of the following is one of the key characteristics of a product development strategy?

creating new goods and services for existing markets

How can marketers create customer excellence?

deliver value, satisfaction, and quality

A market penetration strategy...

emphasizes selling more of existing goods and services to existing customers.

One key goal of marketing is to...

focus on satisfying the needs of the customer.

According to the ethical decision-making framework, after Mia and her marketing team make a decision regarding its promotional material for their new meditation app, they must then monitor and assess the quality of their decision. This step differs from considering how the decision will affect stakeholders in that...

monitoring and assessing the quality of the decision occurs after feedback from stakeholders is gathered.

The Winter Spree is preparing for the upcoming holiday season by focusing on reviewing product ideas and seeking customer input. This strategy exemplifies which element of sustaining competitive advantage?

product excellence

The local diner hopes to increase its lunchtime business by 50 percent, even though it is already nearly 50 percent behind its goal for the quarter; this objective would be considered...

specific but unrealistic

Which of the following criteria characterize a quality marketing strategy objective?

specific, measurable, realistic

Patagonia, a California-based clothing company, uses solar panels to generate most of the electricity at its headquarters. In its advertising, it asks its customers to think twice before buying anything that might increase their carbon footprint. This is an example of how Patagonia is engaged in...

sustainable marketing.

Unlike ________ greening, which involves limited change within a single area of the organization, ________ greening involves more substantive changes in marketing actions.

tactical; quasi-strategic

Marketing is defined as...

the process of creating, communicating, and delivering value to customers and managing those relationships in ways that benefit the organization and its employees, customers, investors, and society as a whole.

A firm that uses a diversification growth strategy seeks to offer new products that are...

unrelated to the existing products produced by the organization.