Principles of Marketing

Which is the correct association between the AMA's definition of marketing and the corresponding element of the marketing mix?

creating offerings > Product

Delivering what is promised, when it was promised, and the way it was promised are key drivers of _____.

customer satisfaction

All of the people and organizations that buy, resell, and promote a product "downstream" as it makes it to the end user is referred to as the _____.

distribution channel

A _____ strategy involves offering products that are unrelated to other existing products produced by the organization .

diversification

A fashion design house purchased a music company. This is an example of a _____ strategy.

diversification

Price elasticity is calculated by

dividing the change in quantity demanded by the percentage change in price.

Which of the following examples best illustrates the marketing concept?

A catering firm decides to expand its hours of operations to better serve working mothers.

_____ loyalty refers to a customer habitually purchasing a product, while ____ loyalty refers to the degree to which a customer prefers or likes a brand.

Behavioral; attitudinal

_____ not only tests whether the offering works as advertised, but it also tests the offering's delivery mechanisms, service processes, and other aspects of marketing the product.

Beta testing

_____ are groups of people within organizations who make purchasing decisions .

Buying centers

_____ occurs when a firm's new offering eats into the sales of one of its older offerings.

Cannibalization

_____ can have a positive PR impact by strengthening the affinity people have for a company that engages in it.

Cause-related marketing

_____ involves a selling strategy in which a salesperson uses special expertise to create a somewhat customized solution to a buyer's problem.

Consultative selling

_____ seeks to measure or describe phenomenon so as to answer the questions who, what, where, when and how.

Descriptive research

_____ occurs when a small change in demand by consumers has a big effect through the chain of businesses that supply all of the goods and services that produce it.

Fluctuating demand

_____ combines the lifestyle traits of consumers and their personality styles with an analysis of their attitudes, activities, and values to determine groups of consumers with similar characteristics .

Psychographics

_____ are typically thought of as commodities, so price and availability are very important in relation to the competition.

Raw materials offerings

_____ are a great tool for situations that require adaptation, customer education, and other value-adding activities.

Salespeople

_____ refers to demand for a specific brand while ____ refers to demand for a product category.

Selective demand; primary demand

An active influencer is defined as someone who

is willing to tell others about a product in addition to the fact that others listen to him.

Customers who are good at generating new product ideas or applications of products are called _____.

lead users

The business market is characterized as having

longer decision cycles.

The ____ is a document that is designed to communicate the marketing strategy for an offering.

market plan

Selling the same product to all consumers is known as _____.

mass marketing

Most consumer products are in the _____ stage of their life cycle.

maturity

The stage in the product life cycle when the market is saturated with competitors is known as the _____ stage.

maturity

A company that implements programs to encourage customer loyalty is utilizing what type of pricing objective?

maximizing profits

The firm's _____ states the purpose of the organization and why it exists.

mission statement

The _____ process helps an organization allocate its resources under different conditions to accomplish its objectives, deliver value, and be competitive in a market-driven economy.

strategic planning

The _____ section of the marketing plan offers the opportunity to create a compelling argument as to what you intend to do and why others should invest in the strategy.

strategy

Lucy lists the positive factors associated with her company, such as sales growth, world class distribution, and industry recognition for product quality. She is listing the company's _____.

strengths

Which element is included in the bundle that is the company's offering to the customer?

tangible elements

The marketing plan should constantly answer the question

"Why should I invest in this plan?", "How will the company aid shareholders?"

_____ refers to the possibility that the company will fail to earn the appropriate return on the money and effort it puts into the new product.

Investment risk

_____ reward a person for frequent purchases.

Loyalty programs

Promotional activities that are implemented to generate short-term excitement are _____.

The correct answer is: sales promotions

The personal value equation of the customer is reflected in the formula:

Value = Benefits received − [Price + Hassle]

A brand is _____.

a name, picture, design, or symbol used by a seller to differentiate their offerings

A unique selling proposition is

a specific benefit consumers will remember.

Marketing information systems involve all of the following EXCEPT

a system for collecting test market information.

A buyer who needs a significant amount of trust with the seller is looking for a(n) _____.

affiliative selling relationship

An example of a primary data resource is:

an in-depth interview.

Data is combined with statistical techniques by

analytics software.

The characteristics of a qualified prospect include someone who has the

budget, authority, need for, and time to purchase a product.

Good public relations efforts

can help a firm create rapport with its customers.

The advantage of market research is that it

can help make a good decision.

When the Elliott Corporation decides to exhibit its products in an industry trade show,it is performing which marketing activity

communicating offerings

Cutting middlemen out of the channel is known as

disintermediation.

Market trends can be uncovered internally utilizing

data mining techniques.

Marketers who start with the price demanded by consumers and then create offerings to meet the price are utilizing which pricing strategy?

demand backward pricing

What step in one-to-one marketing involves determining who your best customers are in terms of what they spend and will spend in the future?

differentiate among your customers

Choosing select groups of people to sell to is called _____.

differentiated marketing

The most risky global entry strategy is known as _____.

direct foreign investment

Telemarketing is an example of

direct marketing.

Price is the _____ marketing variable to change and the _____ to copy.

easiest; easiest

Threats include

external negative conditions of the macroenvironment.

City size and population density are utilized in relation to which type of segmentation strategy?

geographic segmentation

The stage in the product life cycle when a successful product first becomes profitable is known as the _____ stage.

growth

Neuroticism refers to

how prone you are to negative mental states.

In the idea screening stage, companies evaluate new offerings by determining

if the product fits with the image and corporate strategy., the product's specifications.

Purchasing a product with no planning or forethought is called _____.

impulse buying

Stealing product strategy information from a competitor is known as

industrial espionage.

Forming close, personal relationships with customers and giving them exactly what they want is known as _____.

one-to-one marketing

If a firm can find a company that can add more value to a function than it can itself, it will often _____ the task to that company.

outsource

Marketers are concerned about _____ because they must ensure that you interpret the message as intended.

perceptual distortion

A _____ is a two-dimensional graph that visually shows where a product stands relative to competitors.

perceptual map

Firms offering more technical or expensive products often utilize _____.

personal selling

An individual's disposition as other people see it is known as _____.

personality

By utilizing sales promotions, companies hope to

persuade customers to take action quickly.

A scan of the _____ should include any new government regulations as well as legislation.

political climate

Warranties and guarantees can be utilized to

postpurchase dissonance.

A group of related offerings is known as a _____.

product line

Offerings are _____.

products and services designed to deliver value to customers

Which of the following is NOT part of the marketing mix, also known as the "four Ps"?

profit

Which element of the marketing mix would include advertising and sales?

promotion

The different types of marketing communications an organization uses comprise its _____.

promotional mix

Cold calling is associated with a(n)

prospector.

The purpose of a value proposition is to

provide the firm with a reason why buyers prefer their product or service offering., provide the buyer with a reason why the product or service is superior to competing offers., provide the buyer with a price point for purchase., provide the firm with a moral code of ethics., provide the seller with a price point for purchase.

This segmentation category answers the question, "How do my customers live their lives?"

psychographic

A company who promotes its products and services to the final consumer are utilizing a _____.

pull strategy

A(n) _____ involves promoting a product to final consumers.

pull strategy

How might a marketer increase a consumer's personal value equation?

reduce the hassle and increase the benefits associated with the exchange

Marketing plans aid CMOs in

setting their organization's marketing expectations.

Consumers often care about brand names when they are deciding on _____.

shopping offerings

A(n) _____ is utilized to get back the money invested in creating a new product offering.

skimming pricing strategy

A value proposition

states the specific benefits a product or service offering provides to a buyer.

The group of customers toward which an organization directs its marketing efforts is known as the _____.

target market

A product-dominant approach to marketing is based on the belief that

the best way to capture market share is to create and manufacture better products at lower prices.

Characteristics of secondary research include

the data is collected for another purpose.

What is the correct order of strategic development for today's marketing organizations?

the mission statement, the corporate strategy, and the marketing plan

If a company has multiple planning levels,

the plans must be consistent and all must help achieve the overall goals of the corporation.

Family life cycle refers to

the stages families go through over time and how it affects people's buying behavior.

Customers are more likely to tell others about negative experiences with companies than positive ones because

there is more drama involved in unmet expectations.

Michael Porter's five forces model includes all of the following EXCEPT:

threat of supplier penetration development.

Mobile marketing

utilizes cell phones and forms of transportation.

Price is a signal of _____.

value

The feature specifications process begins with a strong understanding of

what consumers want and need.

A business that purchases product in large quantities from producers and then sells it to another entity is known as a _____.

wholesaler