MKTG 3600 Midterm Exam 1- ch 1-7

Because there are few sellers, price competition among firms is not desirable for them in which form of competition?

an oligopoly

Strategy refers to

an organization's long-term course of action designed to deliver a unique customer experience while achieving its goals.

A(n) __________ question is the simplest form of a fixed alternative question that allows only a yes or no response.

dichotomous

The money that remains after paying for taxes and necessities is referred to as __________.

discretionary income

SBUs with a low share of slow-growth markets that may generate enough cash to sustain themselves but do not hold the promise of ever becoming real winners for the organization are referred to as __________.

dogs

Based on the stages of the family life cycle, which of the following groups most likely has the largest amount of discretionary income?

middle-aged couples with children

A firm that views the world as consisting of unique parts and markets to each part differently is referred to as a(n)

multinational firm.

All of the following are market segmentation strategies EXCEPT:

multiple products, one segment.

The 80/20 rule suggests that

80 percent of a firm's sales are obtained from 20 percent of its customers

Overseeing strategic marketing efforts at the corporate level would most likely be the responsibility of the __________.

CMO

The country expected to have the largest population in 2050 is __________.

India

Which of the following examples best demonstrates a company's appreciation of another country's values?

McDonald's restaurants in India serve a full line of products except for hamburgers made from beef.

Which of the following statements about relationship marketing is most accurate?

Relationship marketing occurs when there is a personal, ongoing relationship between an organization and its customers.

When foreign currencies can buy more U.S. dollars,

U.S. products are less expensive to foreign customers.

A marketing research approach that uses a discussion leader to interview 6 to 10 past, present, or prospective customers simultaneously is referred to as

a focus group.

A market-product grid refers to

a framework used to relate the market segments of potential buyers to products offered or potential marketing actions by an organization.

The VALS framework is an example of

a psychographic system.

The generation of children born between 1946 and 1964 is referred to as

baby boomers.

tanks more than once a week with its Chase Visa fuel card. In this example, ExxonMobil is using which segmentation variable?

behavioral

A technique that managers use to categorize strategic business units (SBUs) as question marks, stars, cash cows, or dogs is referred to as a(n)

business portfolio analysis.

When Ann Taylor, a well-known retailer of sophisticated women's clothing, started losing sales to its own LOFT outlets that feature moderately priced casual clothes, Ann Taylor was dealing with the marketing phenomenon known as __________.

cannibalization

SBUs with dominant shares of slow-growth markets that provide cash to cover the organization's overhead and to invest in other SBUs are referred to as __________.

cash cows

The feeling of postpurchase psychological tension or anxiety consumers may experience when faced with two or more highly attractive alternatives is referred to as

cognitive dissonance.

When compared to a multiple products, multiple market segments strategy, a one product, multiple market segment strategy

creates greater savings in production costs.

The facts and figures related to the problem are referred to as __________.

data

The second step of the marketing research approach is to __________.

develop the research plan

A sudden drop in the average consumer income would be an example of which environmental force?

economic

The clandestine collection of trade secrets or proprietary information about a company's competitors is referred to as

economic espionage.

Effective marketing benefits society because it

enhances competition, which improves the quality of products and services and lowers prices.

The 50 million people of the population born between 1965 and 1976, also called the baby bust, refers to __________.

gen x

the first step in segmenting and targeting markets that links customer needs to marketing actions is to

group potential buyers into segments.

The primary purpose of a sneak preview of a film prior to its release is to

identify necessary changes prior to final editing.

The goal of a SWOT analysis is to

identify the critical strategy-related factors that can impact the firm.

In terms of the global marketplace, there are three primary types of companies: __________ firms, multinational firms, and transnational firms.

international

Generally, the U.S. population is becoming

larger, older, and more diverse.

Once a company has decided to enter the global marketplace, it must select a means of market entry. Four general options exist: (1) exporting; (2) __________; (3) joint venture; and (4) direct investment.

licensing

Two important disadvantages of secondary data are __________ and __________.

not up-to-date; not specific enough for the project

A set of values, ideas, attitudes, and norms of behavior that is learned and shared among the members of an organization is referred to as its __________.

organizational culture

In the Maslow hierarchy of needs, those needs involving personal fulfillment are called __________.

self-actualization

There are five stages in the consumer purchase decision process. The fifth stage is __________.

postpurchase behavior

Facts and figures that are newly collected for a project at hand are referred to as

primary data.

A marketing strategy that involves a firm using different marketing mix actions to help consumers perceive the product as being different and better than competing products is referred to as __________.

product differentiation

The four Ps of the marketing mix are

product, price, promotion, and place.

The element of the marketing mix that describes a means of communication between the seller and buyer is known as

promotion

The argument for protectionism is that it

protects a nation's political security.

Four general categories used to segment consumer markets are geographic segmentation, demographic segmentation, __________, and behavioral segmentation.

psychographic segmentation

Consumers accompanied by children

purchase about 40 percent more than when shopping alone.

What marketing metric determines whether a TV program like American Idol remains on the Fox broadcast TV network?

rating

A proposed law in New Jersey would ban the use of tanning beds by anyone under the age of 18. This restriction would be an example of which environmental force?

regulatory

The marketing department of an organization is responsible for facilitating __________.

relationships, partnerships, and alliances with the organization's customers, shareholders, suppliers, and other organizations

Market segmentation involves aggregating prospective buyers into groups that have common needs and will

respond similarly to a marketing action.

An example of a marketer-dominated source of information consulted during an external search would include

salespeople.

In marketing research, the term sampling refers to

selecting representative elements from a population and treating their answers as typical of all those in whom they are interested.

Interpreting information so that it is consistent with one's attitudes and beliefs is referred to as

selective comprehension.

The set of environmental forces that consists of the demographic characteristics of the population and its culture is referred to as

social forces.

Three teenage girls spent an hour at a store trying on various outfits, looking at possible combinations, and asking each other, "How do you think this looks on me?" This situation is most closely related to which of the following situational influences?

social surroundings

The acronym SWOT, as in SWOT analysis, stands for __________.

strengths, weaknesses, opportunities, and threats

The fifth step of the marketing research approach is to __________.

take marketing actions

One or more specific groups of potential consumers toward which an organization directs its marketing program is referred to as a

target market.

The North American Free Trade Agreement was designed to encourage free trade between

the United States, Canada, and Mexico.

The combined American Marketing Association's 2004 and 2007 definitions of marketing used in the textbook define marketing as

the activity for creating, communicating, delivering, and exchanging offerings that benefit its customers, the organization, its stakeholders, and society at large.

A customer value proposition is

the cluster of benefits that an organization promises customers to satisfy their needs.

Five trends in the past decade have significantly influenced the landscape of global marketing. One of them is

the growing prevalence of economic espionage.

Market share refers to

the ratio of sales revenue of the firm to the total sales revenue of all firms in the industry, including the firm itself.

A global marketing strategy refers to

the strategy of transnational firms that employ the practice of standardizing marketing activities when there are cultural similarities and adapting them when cultures differ.

A marketing dashboard refers to

the visual computer display of the essential information related to achieving a marketing objective.

In 1962, President John F. Kennedy outlined a Consumer Bill of Rights that codified the ethics of exchange between buyers and sellers. These were the right: (1) __________; (2) to be informed; (3) to choose; and (4) to be heard.

to safety

According to Professor Schill, the three most important words in marketing are:

unique. better. special.

Which of the following is a strategy for a market leader (rather than a market challenger) when marketing a low-involvement product?

use repetitive advertising messages that reinforce a consumer's knowledge or assure buyers they made the right choice

A __________ is a need that is shaped by a person's knowledge, culture, and personality.

want