Principles of Marketing Exam #1

Under Armour's recent expansion into the digital personal health and fitness tracking market through acquisitions of three fitness app companies is a ________ strategy.

diversification

Which of the following is an example of a media public?

television station

Which of the following best describes a company's business portfolio?

the collection of businesses and products that make up the company

Which of the following products would the electronics company CypressSound classify as a cash cow in its BCG matrix?

Apple-- An Ipad that has a high market share in a market that is not expected to grow significantly

BlueBear is a shoe manufacturer based in the United States. Which of the following indicates that the company is following a market development strategy?

BlueBear introduces its shoes in the Indian and Southeast Asian markets.

The Walt Disney Resort doesn't just offer amusement park rides, it uses famed Disney magic to create carefully orchestrated ________.

experiences

Traxx is a newly emerging shoe manufacturing company. After extensive market research, Traxx divides its market into professional athletes, "hobbyists" or amateur players, and people who wear shoes as part of their casual attire. Each category has its own needs, traits, and marketing goals. In this scenario, Traxx has engaged in market ________.

segmentation

Both market penetration strategies and market development strategies primarily involve ________.

selling the company's current products

Dollar General profitably appeals to families with more modest means. The retailer's approach is most likely referred to as ________.

target marketing

Which of the following transforms marketing strategies into real values for consumers?

the four P's of marketing

Which of the following concepts is based on a customer-centered philosophy?

the marketing concept

Which of the following is part of the microenvironment of a firm's marketing environment?

the suppliers who work with the company

Cosmetics firm SatinSilk is revamping its mission statement and advertising strategy. The CEO stresses that the new mission statement should be market-oriented rather than product-oriented. Which of the following mission statements will best suit the company?

to give customers the complexion they dream about by providing products suited to their needs

__________ is the study of human populations in terms of size, density, location, age, gender, race, occupation, and other statistics.

Demography

______________ is the act of obtaining a desired object from someone by offering something in return.

Exchange

Which of the following is true of marketing ROI?

Marketing ROI measures the profits generated by investments in marketing activities.

________ are defined as states of felt deprivation.

Needs

Omni Healthcare's analgesic drug Cetaprin has a 40% share in the analgesics market in the country of Terrania. Its closest competitor, Febex, has a 25% share in the market, while four other analgesic brands split the remainder. Which statement indicates that Cetaprin is a cash cow according to the BCG matrix?

The demand for analgesic drugs in the Terrania market is expected to maintain a low-growth, high-share status.

Which of the following is most likely a characteristic of millennial generation?

They are more likely to engage with brands using mobile or social media.

Which of the following is most likely a characteristic of Generation Xers?

They were the first group to grow up in the Internet era.

Which of the following companies is using a divesting strategy?

When sales of its clothing division decline, Blackstone sells the division to a competitor.

Marketers are said to suffer from marketing myopia when they ignore underlying consumer needs and focus excessively on ________.

consumers' existing wants

The ABC Company manufactures microprocessors and caters exclusively to private manufacturer's that produce high-end computers. Which type of market does ABC direct target.

business market

The final step in the marketing process is ________.

capturing value from customers

According to the text, _______ are the most important actors in a company's microenvironment.

customers

Abel now has the buying power to purchase the computer that he wanted to buy six months ago. Abel's want has most likely become a(n) ________.

demand

The two dimensions the BCG approach uses to evaluate and manage SBUs are __________.

market growth rate and relative market share

Customer needs and wants are fulfilled through __________.

market offerings

Dividing a market into several sections of customers is known as ________.

marketing segmentation

Fargo Inc. is a carbonated beverage manufacturer that has many manufacturing plants around the world. It is planning to shift from using thermal power to wind power for its manufacturing plants in the Netherlands to decrease dependency on nonrenewable sources of energy. This scenario depicts Fargo's concern for its ________ environment.

natural

Both product development strategies and diversification strategies involve ________.

developing a new product

Changes in variables, such as income, cost of living, interest rates, and savings and borrowing patterns most likely reflect changes in the ________ environment of a company.

economic

To market the cause of suicide prevention, rapper Logic worked with the National Suicide Prevention Lifeline to create a video embedded with his song "1-800-273-8255," the NSPL phone number. This is an example of a marketing offering for a(n) ____________.

idea

Which of the following represents a change in the technological environment of a marketing firm?

increased use of RFID systems to track products

A strategy for company growth that involves increasing sales to current market segments without changing the PC is known as __________.

market penetration

EcoBean, a chain of cafes, has introduced a Special Shopper Card that allows customers to pay in advance for coffee and snacks. This effort by EcoBean management is most likely an example of ________.

market penetration

Ferrari sells only 2,200 of its very high-performance cars in North America each year at very high prices. The company is appealing to a specific ________.

market segment

The __________ concept holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do.

marketing

A marketing intermediary would most likely help a firm by _______.

moving the firm's goods from production points to distribution centers

Ford Motor Company issuing a recall that requires customers to schedule appointments with car dealerships to repair faulty igniters would have the greatest impact on the _________ component of its marketing mix.

place

Governments most likely enact business legislation to ________.

prevent unfair competition in the market

The __________ concept holds that consumers will favor goods and services that offer the most quality, performance, and innovative features.

product

Which component of the marketing mix refers to the goods-and-services combination a company offers to its target market?

product

PC manufacturer, Lenovo, focuses on low labor costs and mass distribution to ensure the continuous availability of its products at reasonable prices. Lenovo most likely follows the ________.

production concept

The boom in online, mobile, and social media has created a new set of social and ethical issues for companies. Their greatest concern involves ________.

protecting the privacy of knowing and unknowing customers

CVS Pharmacy changed its name to CVS Health, reshaping and broadening its lines of products and services to align more appropriately with its revamped "better health" mission. For example, it stopped selling tobacco products altogether. How would this be classified in a SWOT analysis?

strength

The responsibility for setting a company's mission, objectives, broad strategies, and policies primary lies with its __________.

top management

According to the five-step model of the marketing process, the first step in marketing is

understanding the marketplace and customer needs and wants.