Principles of Marketing Exam 1

Which of the following are included in the four major growth strategies? - Market analysis - Market penetration - Market development - Product development

- Market analysis

Aging equipment that slows down production is an example of a(n) ______ for the firm. - weakness - threat - strength - opportunity

- weakness

What is STP?

Segmentation, Targeting, Positioning

Which are supply chain partners? (Select all that apply.) Federal regulators Wholesalers Transporters Retailers Competitors

Wholesalers Transporters Retailers

Modern marketers use __________ to focus how they approach their customers and market their products. - data analytics - customer-to-customer marketing - supply chains - human resources

data analytics

Approximately what percentage of marketers use social media? - 37% - 97% - 17% - 57%

- 97%

Which of the following are examples of strengths that could be identified in a SWOT analysis? (Select all that apply.) - An increase in taxation - A reliable network of spokespeople - Heavy reliance on a single product line - Strong brand recognition

- A reliable network of spokespeople - Strong brand recognition

A firm can begin to implement the marketing mix immediately after which step? - After it has completed a SWOT analysis - After it has finished segmentation, targeting, and positioning - After it has written its mission statement - After it has employed marketing metrics to evaluate performance

- After it has finished segmentation, targeting, and positioning

Which statement is true regarding SBUs? - SBUs develop as cash cows. - The erm SBU stands for "segmented business unit." - The term refers to parent companies. - An SBU may have a different mission or objective from other divisions.

- An SBU may have a different mission or objective from other divisions.

What factors that affect a sales manager's performance are outside the manager's control? (Select all that apply.) - An economic downturn - Poor implementation of a sales strategy - Inadequate sales force - Successful competition

- An economic downturn - Successful competition

Firms become value driven by focusing on which of the following activities? (Select all that apply.) - Establishing good hiring practices - Building relationships - Sharing information - Balancing customer benefits and costs

- Balancing customer benefits and costs - Building Relationships - Sharing information

A company that has successfully built a wall around its position in the market, making it hard for competitors outside the wall to enter the market and compete, is an example of a company that has established ______. - competitive advantage - operational excellence - product excellence - superior service

- Competitive Advantage

Which is an example of loyalty to a company in a consumer's daily life? - Getting a haircut from the one barber in town who has an opening in his schedule this afternoon. - Buying a Pepsi product from the campus vending machine because Pepsi is the only vendor allowed on campus. - Continuing to shop at Dunkin' Donuts even if Starbucks opens more convenient locations and offers slightly lower prices. - Ordering from Pizza Hut because there is a coupon in the mail offering a significant discount.

- Continuing to shop at Dunkin' Donuts even if Starbucks opens more convenient locations and offers slightly lower prices.

Which entity does NOT market to the other entity? - Businesses to customers - Wholesalers to retailers - Manufacturers to retailers - Customers to businesses

- Customers to businesses

Which of the following are steps in the STP process? (Select all that apply.) - Dividing the marketplace into subgroups - Determining which subgroups should be pursued - Countering negative aspects of the external environment - Positioning its products and services to meet the needs of the chosen targets

- Dividing the marketplace into subgroups - Determining which subgroups should be pursued - Positioning its products and services to meet the needs of the chosen targets

True or false: Businesses should avoid using social and mobile media technologies. - True - False

- False

True or false: Firms that use multiple strategies to build a sustainable competitive advantage have difficulty maintaining long-term success. - True - False

- False

True or false: The purpose of a marketing strategy is to maximize short-term profits. - True - False

- False, firms want a long term competitive advantage

During which step of the marketing plan do marketers make important decisions about how they will allocate their scarce resources to their various products and services? - Define the business mission - Identify and evaluate opportunities - Implement marketing mix - Evaluate performance

- Implement marketing mix

A portfolio analysis involves which of the following? (Select all that apply.) - Management evaluates the firm's various products and businesses. - Management develops the marketing mix for each SBU. - Management allocates its resources to products with the greatest potential to be profitable. - Management identifies and evaluates opportunities using STP.

- Management evaluates the firm's various products and businesses. - Management allocates its resources to products with the greatest potential to be profitable.

During the sales-oriented era, _________ - Firms believed a good product would sell itself - The consumer was king - Manufacturers focused on product innovation, not satisfying consumer needs - Manufacturers had the capacity to produce more than consumers were able to buy

- Manufacturers had the capacity to produce more than consumers were able to buy

When a company that makes protein bars for long-distance runners starts selling the same bars to busy parents as a quick breakfast, it is using which growth strategy? - Product development - Market development - Market penetration - Diversification

- Market development

What do "weaknesses" refer to in SWOT analysis? - Positive aspects of the external environment - Negative attributes internal to the firm - Positive attributes internal to the firm - Negative aspects of the external environment

- Negative attributes internal to the firm

Which company is most likely to be a value-driven firm? - One that has active and engaging social media channels - One that thinks primarily about its customers but not its community or society - One that brings goods to market when it is convenient for the firm - One that collects scant data about its customers

- One that has active and engaging social media channels

What is NOT an example of customer loyalty? - Only purchasing organic products - Only purchasing dresses at Anthropolgie - Only purchasing light fixtures at Home Depot - Only purchasing holiday decorations from World Market

- Only purchasing organic products

_________ is achieved through efficient operations, excellent supply chain management, and strong relationships with suppliers - Locational excellence - Product excellence - Operational excellence - Customer excellence

- Operational excellence

Step 2 of a marketing plan involves which of the following? - Evaluating opportunities - Performing a situation analysis using SWOT - Evaluating performance - Creating a mission statement

- Performing a situation analysis using SWOT

What are the three major phases of the marketing plan? (Select all that apply.) - Planning - Control - Implementation - Organization

- Planning - Control - Implementation

______, which includes services, constitutes the first of the four Ps. - Place - Pricing - Promotion - Product

- Product

A smartphone manufacturer makes a new smartwatch that pairs well with its existing phones. This is an example of which growth strategy? - Market penetration - Diversification - Market development - Product development

- Product development

Which of the following is one of the macro strategies for developing customer value through effective branding and positioning? - Communication excellence - Product excellence - Advertising excellence - Supply excellence

- Product excellence

Which of the following is one of the macro strategies for developing customer value through effective branding and positioning? - Product excellence - Supply excellence - Communication excellence - Advertising excellence

- Product excellence

Locational excellence is particularly important for which type of firm? - Manufacturers - Science research facility - Call centers - Retailers

- Retailers

With ______, the firm first divides the marketplace into subgroups, determines which of those subgroups it should pursue, and finally decides how it should best position its product or service. - STP - the marketing mix - SWOT - the four Ps

- STP

Some commonly used financial performance metrics include which of the following? (Select all that apply.) - Sales revenue - Profits - Mission statements - SWOT analysis

- Sales revenue - Profits

Ideally, successful American firms believe that marketers should focus on which of the following beyond financial profitability? (Select all that apply.) - Outsourcing as much labor as possible - Lobbying for corporate tax breaks - Social responsibility - Environmentally friendly options

- Social Responsibility - Environmentally friendly options

Firms achieve operational excellence through which of the following? (Select all that apply.) - Reducing focus on human resources - Strong relationships with suppliers - Good supply chain management - Efficient operations

- Strong relationships with suppliers - Good supply chain management - Efficient operations

The "T" in STP stands for:

- Targeting

Which events helped create a situation in which manufacturers produced more than customers could buy? (Select all that apply.) - The Great Depression - The Great Recession - World War I - World War II

- The Great Depression - World War II

What do "opportunities" represent in SWOT analysis? - The positive internal attributes of a firm - The negative aspects of the external environment - The positive aspects of the external environment - The negative attributes of a firm

- The positive aspects of the external environment

What does "strengths" refer to in SWOT analysis? - The negative aspects of the external environment - The negative attributes of a firm - The positive internal attributes of a firm - The positive aspects of the external environment

- The positive internal attributes of a firm

Which statement about strategic planning is true? - A strategy created without following the steps in order usually ends up failing or doing poorly. - The process can move back and forth between steps, depending on the situation. - The steps of the process must always be followed in order. - Skipping a step of the process is fine, but the steps should not be performed out of order.

- The process can move back and forth between steps, depending on the situation.

Which of the following are components of a SWOT analysis? (Select all that apply.) - Threats - Opportunities - Weaknesses - Sustainability

- Threats - Opportunities - Weaknesses

What are the main purposes of metrics during Step 5? (Select all that apply.) - To explain why things happened - To consider how best to position the firm - To predict what will happen - To understand the needs of a market segment

- To explain why things happened - To predict what will happen

What is the purpose of evaluating performance during Step 5? - To identify growth and effectiveness relative to the competitors - To identify and explain performance above and below expectations - To highlight employee successes - To identify potential layoffs or additional employees required

- To identify and explain performance above and below expectations

Why do firms use metrics in Step 5 of the marketing plan? (Select all that apply.) - To make it possible to compare results across regions, product lines, and time periods - To develop integrated marketing communications - To make appropriate adjustments to performance - To help stakeholders understand the firm's mission statement

- To make it possible to compare results across regions, product lines, and time periods - To make appropriate adjustments to performance

in which type of diversification does a firm enter into an entirely new business? - Competitive - Metric-driven - Related - Unrelated

- Unrelated

Which of the following is LEAST effective when building a sustainable competitive advantage? - Using six or more strategies - Using two or three strategies - Using four or five strategies - Using only a single strategy

- Using only a single strategy

In order to compete successfully, most firms today have to provide their customers with better____________ than their competitors

- Value

Which of the following is the primary question a mission statement should answer? - What type of business are we? - What are our short-term goals? - Where do we want to be in 5 years? - What specific tasks should we perform in the next year?

- What type of business are we?

What are reasons why strategic planning may not occur sequentially? (Select all that apply.) - When new logical alternatives arise - When the implementation plan cannot move forward because there are too few resources - When the economy has had six consecutive months of steady growth and projections indicate that the trend will continue - When a situation analysis necessitates that the mission statement be revised

- When new logical alternatives arise - When the implementation plan cannot move forward because there are too few resources - When a situation analysis necessitates that the mission statement be revised

A marketing plan includes all of the following EXCEPT ______. - projected income statements - a plan on how to pitch investors - marketing objectives and strategy - an analysis of the current marketing situation

- a plan on how to pitch investors

General Electric sells a broad array of products for both businesses and consumers, from jet engines to light bulbs. GE's kitchen appliances would be considered ______. - a product line - a product mix - a market segment - co-branded products

- a product line

Many businesspeople believe that marketing should focus on factors other than financial goals, such as ______. - return on investment - total sales - corporate citizenry - market share

- corporate citizenry

In the marketing mix, products and services are the elements that ______ value. - create - communicate - capture - deliver

- create

A market segment consists of ______ who respond similarly to a firm's marketing efforts. - competitors - advertisers - customers - resellers

- customers

In a value-based, marketing-oriented firm, marketers share information about _________ and competitors, and then integrate and distribute it across the firm's various departments. - customers - designers - prices - vendors

- customers

In Step 1 of the planning phase, a firm ______. - evaluates its marketing performance - implements the marketing mix - defines the mission and/or vision of the business - conducts a SWOT analysis

- defines the mission and/or vision of the business

A mission statement ______. - maximizes profits and dividends - details how a firm can avoid risks - defines the scope of activities a firm plans to undertake - enhances the value of a firm's products

- defines the scope of activities a firm plans to undertake

A ______ strategy introduces a new product or service to a new market segment, one that the firm has not yet targeted. - market penetration - product development - diversification - market development

- diversification

Step 5 in the marketing plan process is when a firm ______ the outcome of the strategy and implementation process. - builds - cancels - evaluates - sustains

- evaluates

Step 5 in the marketing plan process is when a firm ______ the outcome of the strategy and implementation process. - builds - evaluates - cancels - sustains

- evaluates

Step 5 of the marketing plan involves ______. - evaluating the results of the strategy and implementation program - defining the firm's mission and objectives - performing the STP process - implementing the marketing mix elements for customers

- evaluating the results of the strategy and implementation program

A competitive advantage based on location ______. - is unsustainable because location is unimportant - is unsustainable because customer service is more important - is sustainable when real estate is difficult or expensive to obtain - is sustainable when close to similar stores

- is sustainable when real estate is difficult or expensive to obtain

A sustainable competitive advantage ______. - should be avoided by firms that are not involved in environmental advocacy. - is when a firm does consistently better than its competitors and it is not easily copied - increases competition through price - is rarely if ever a firm's key goal or objective

- is when a firm does consistently better than its competitors and it is not easily copied

A strategy that employs existing products or services to reach new market segments is called ______. - product development - market development - market penetration - diversification

- market development

Firms consider pursuing various ______ as part of their overall growth strategies. - mission statements - market segments - metrics - portfolio analyses

- market segments

Wine connoisseurs, antique collectors, and video game enthusiasts are all examples of different ______. - SWOT analyses - mass markets - competitive advantages - market segments

- market segments

The macro strategies for developing customer value include each of the following EXCEPT ______. - locational excellence - product excellence - operational excellence - marketing excellence

- marketing excellence

A ______ is a written document that includes the current marketing situation, specified objectives and strategies, action programs, and projected income statements. - business plan - financial plan - marketing plan - strategic plan

- marketing plan

A ______ identifies a firm's target markets, a related marketing mix, and the bases upon which the firm plans to build a sustainable competitive advantage. - marketing strategy - marketing metric - mission statement - market statement

- marketing strategy

A metric is a ______ that quantifies a trend, dynamic, or characteristic. - promotional plan - product or service - measuring system - marketing plan

- measuring system

Revenues, sales, and profits are commonly used ______ to assess performance. - metrics - mission statements - segments - strategies

- metrics

Product excellence ______. - does not achieve competitive advantage - occurs by having products with high perceived value and effective branding and positioning - yields cost savings - is achieved through efficient operations and efficient production

- occurs by having products with high perceived value and effective branding and positioning

In a SWOT analysis, ______ pertain to positive aspects of the external environment. - strengths - opportunities - weaknesses - threats

- opportunities

A market ______ growth strategy focuses on increasing sales of the firm's current products to its current target markets. - development - acquisition - management - penetration

- penetration

A market ______ growth strategy focuses on increasing sales of the firm's current products to its current target markets. - penetration - acquisition - development - management

- penetration

In Stage 5, the purpose of a(n) ________ evaluation is to figure out problem areas.

- performance

Large corporations collect vast amounts of information about their customers' shopping habits, including how, when, why, where, and what they buy, and then use that information to __________. - update human resources policies - plan future products and services - determine net profitability - improve customer-to-customer marketing

- plan future products and services

The three major phases of the marketing plan are ______. - marketing strategy, macro strategies, and sustainable competitive advantage - planning, implementation, and control - human resource management, vendor relations, and competitive advantage - locational excellence, product excellence, and operational excellence

- planning, implementation, and control

In ______ analysis, management evaluates the firm's various products and businesses, and then allocates resources according to potential profit outlook. - operations - portfolio - growth options - contingency

- portfolio

Firms that achieve a sustainable competitive advantage through their merchandise and service offerings, and through effective branding and positioning, are doing so using ______ excellence. - locational - product - customer - operational

- product

The ______ strategy offers a new product or service to a firm's current target market. - product development - market development - market penetration - product expansion

- product development

A ______ is a group of products that consumers perceive as similar in some way. - portfolio unit - product line - product mix - marketing mix

- product line

In a(n) _________ diversification, the current target market and/or marketing mix shares something in common with the new opportunity.

- related

Multiple Choice Question A ______ is a division of the firm itself that can be managed and operated independently from other divisions. - target market - strategic business unit (SBU) - market segment - marketing department

- strategic business unit (SBU)

In a SWOT analysis, ______ refer to the positive internal attributes of the firm. - threats - opportunities - weaknesses - strengths

- strengths

Licensing of the brand, a reputation for quality, and a large number of retail stores are examples of potential ______. These refer to a firm's internal attributes as identified during a SWOT analysis. - weaknesses - opportunities - strengths - threats

- strengths

Step 1 of the marketing plan is focused on ______. - setting up the SWOT analysis - implementing the marketing mix - the business mission and objectives - evaluating performance

- the business mission and objectives

Value-oriented marketers engage in an ongoing process of balancing ______. - public perception of the corporate ethics and the firm's stewardship - supply chain demands and resource availability - the perceived benefit to customers and the price - the efficiency of production and the safety and health standards for employees and customers

- the perceived benefit to customers and the price

Value-oriented marketers measure the benefits that customers perceive against the____________ of their offerings

Cost

What are the four components of a SWOT analysis? (Select all that apply.) - Threats - Work - Organization - Opportunities - Technology - Strengths - Weaknesses

S.W.O.T -Strengths -Weaknesses -Opportunities -Threat

When a firm has moved beyond a production or selling orientation and attempts to discover and satisfy its customers' needs and wants, the firm is ______. - sales oriented - profit oriented - market oriented - price oriented

market oriented