Principles of Marketing Mid-Term

Which of the following has the primary function of helping a company target and promote its products to the right markets?

Marketing services agencies

Marketing the same product to a huge customer base without any customization is referred to as ________.

Mass marketing

Harmon, a nationwide department store, uses checkout scanners to record shoppers' purchases. Which term best describes Harmon's checkout scanners?

Mechanical instrument

The practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations is referred to as ________.

Micromarketing

Which of the following is a geographic shift that has been observed in the United States in recent times?

More Americans moving to micropolitan areas

Which of the following strategies is most likely to be followed by firms that position themselves as caterers of the best products at economical prices?

More for less

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

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

Gold Class Electricals, a consumer-electronics firm, targets market segments based on factors such as country, age, social class, usage rate, and benefits sought. The company divides its markets based on ________.

Multiple segmentation bases

When viewing the market from a buyer's point of view, "communication" corresponds to the ________ component of the marketing mix.

Promotion

At one time, Miller Beer was known as the "champagne of bottled beer." It was targeted at an elite class of customers. Later, to increase sales, Miller was repositioned to attract members of the working, middle-class. What is this segmentation method called?

Psychographic

In the final step of a marketing process, a company reaps the rewards of its strong customer relationships by capturing value from customers.

True

Many companies have started to target the LGBT market segment which has significant buying power.

True

Marketing ROI is the net return from a marketing investment divided by the costs of the marketing investment.

True

Marketing is managing profitable customer relationships.

True

Marketing research is the systematic design, collection, analysis, and reporting of data directly relevant to a specific marketing situation facing an organization.

True

Marketing researchers can conduct their own searches of secondary data sources by using commercial online databases.

True

Product, price, place, and promotion make up the elements of a firm's marketing mix.

True

Social class is not determined by a single factor, such as income, but is measured as a combination of occupation, income, education, wealth, and other variables.

True

The business buying process tends to be longer and more formalized than the consumer buying process.

True

The larger the gap between expectations and performance of a product, the greater a consumer's dissatisfaction.

True

The single most important demographic trend in the United States is the changing age structure of the population.

True

Total quality management is an approach in which all of the company's people are involved in constantly improving the quality of products, services, and business processes.

True

Unsought products are consumer products that the consumer either does not know about or knows about but does not normally consider buying.

True

When a company chooses a target marketing strategy for a product, its choices are most likely influenced by the product's life-cycle stage.

True

While designing a customer-driven marketing strategy, marketers are likely to divide the market into smaller segments.

True

By offering product and marketing variations to segments and developing a stronger position within several segments, companies hope to create more total sales through segmented marketing than ________ marketing across all segments.

Undifferentiated

Which of the following is most likely a true statement about diversity in the United States?

Various ethnic groups mix together but also retain their cultural differences.

A successful niche marketing strategy relies on a firm's ________.

knowledge of customer needs

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

the four Ps of marketing

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

understanding the marketplace and customer needs and wants

A laundry detergent that consumers purchase frequently, with minimum comparisons, is an example of a(n) ________ product.

Convenience

Which of the following is most likely true about people's beliefs and values?

Core beliefs and values have a high degree of persistence.

A company adding new features to a product will most likely compare each feature's value to customers with its ________.

Cost to the company

________ refers to the practice of including ethnic themes within a company's mainstream marketing.

Cross-cultural marketing

________ is the total combined customer lifetime values of all the company's current and potential customers.

Customer equity

Cylog, a leading provider of personal computer systems, began manufacturing tablet devices after predicting a future consumer need for portability. Which of the following was most likely implemented by Cylog?

Customer-driving marketing

________ are tools that give marketers the detailed measures they need to assess and adjust their strategies.

Dashboards

The marketing manager of Appeal Inc. has noticed a sharp decrease in sales over the last two months. The manager decides to conduct marketing research to identify potential causes for the drop in sales. Which of the following should the manager do first?

Define the problem and objectives

A company's mission statement should most likely be ________.

Defined in terms of satisfying basic customer needs

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

Which of the following is true of business markets?

Business demand is derived demand as it ultimately derives from the demand for consumer goods.

Dextora Technologies manufactures microprocessors and caters exclusively to private manufacturers that produce high-end computers. Which type of market does Dextora directly target?

Business market

Reseller markets consist of ________.

Firms that buy goods and services to sell at a profit

Which of the following is an example of consumer-generated marketing?

Fun & Run, a local amusement park, promotes its services by allowing consumers to upload videos and write reviews about the park.

The societal marketing concept holds that ________.

A company's marketing decisions should focus on creating economic value in a way that also creates value for the surrounding environment

Which of the following changes most likely forced marketers to shift to value marketing after the Great Recession of 2008/2009?

A decrease in customer spending in all product categories

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

A just-in-time inventory system used by the company when making purchase decisions

Which of the following is most likely a true statement about services?

A service is intangible before it is purchased.

________ refers to a channel stretching from raw materials to components to final products that are carried to final buyers.

A supply chain

Which of the following best describes product positioning?

Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers

Carla, a team leader in charge of customer relationship management, is planning strategies to improve the profitability of her firm's least profitable but loyal customers. She is also examining methods for "firing" customers in this group who cannot be made profitable. To which of the following customer relationship groups do these customers belong?

Barnacles

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 South-East Asian markets.

A ________ is defined as a name, term, sign, symbol, or design, or a combination of these, that identifies the maker or seller of a product or service.

Brand

A firm has a huge amount of individual customer data saved in different databases. Which of the following can be used to integrate, analyze, and apply the available information effectively?

CRM systems

At Ken's Boutique, the policy statement posted in the reception states: "Without our customers, we don't exist." Ken and his staff aim to delight each customer and they are quick to offer discounts or extra services whenever a customer is anything less than satisfied. Instead of focusing on individual transactions, Ken and his staff are putting a priority on ________.

Capturing customer lifetime value

Vernon Inc. would like to set the best price for a new product. The firm conducts an experimental study by selling the new product at two different prices in two different locations keeping other factors constant to see if a lower price results in better sales. This is most likely an example of ________ research.

Causal

Ursa Martin, a book publisher, has decided to work with Hope in Children, a charity foundation that helps feed and educate children in poor countries. Ursa Martin has decided that a percentage of revenue from every book it sells will go to the charity. The books are marketed by conveying this message to customers. Which of the following marketing techniques describes Ursa Martin's association with Hope in Children?

Cause-related marketing

________ occurs when two established brand names of different companies are used on the same product.

Co-branding

________ is the degree to which an innovation fits the values and experiences of potential consumers.

Compatibility

A brand difference is said to be preemptive if ________.

Competitors cannot easily copy the difference

Zista, a boutique that caters to the clothing needs of women, manufactures two different lines of fashion wear based on the purchasing power of its customers. One product line caters to the needs of affluent, middle-aged women, and the other line targets younger professionals and homemakers. Zista most likely segments the consumer market based on ________ variables.

Demographic

Port Orleans Shipping markets different services to the tourism, defense, and trade segments. The firm designs separate offers for each segment based on their needs. This approach is called ________ marketing.

Differentiated

________ refers to reducing the business portfolio by abandoning products that no longer fit the company's overall strategy.

Downsizing

A company that sells personal care products sends a trained observer to watch potential buyers in their natural environments. This is an example of ________ research.

Ethnographic

The objective of ________ research is to gather preliminary information that will help define the problem and suggest hypotheses.

Exploratory

"At CL Online, we create customer connectivity, anytime, anywhere" is a product-oriented mission statement.

False

A customer buys a can of Pepsi from a Walmart store. In this scenario, Walmart is a supplier in Pepsi's value delivery network.

False

A researcher who wants to calculate confidence limits for sampling error would use nonprobability samples.

False

Advertisements are internal stimuli that influence consumer needs.

False

An SBU can be a company division or a product line within a division, but not a single product or brand.

False

Cause-related marketing techniques are typically unprofitable for businesses, which is why it is a rarely used form of corporate giving.

False

Effective marketing managers take a reactive rather than a proactive approach to the marketing environment.

False

In a SWOT analysis, strengths and weaknesses refer to a firm's external environment, while opportunities and threats refer to the internal environment.

False

In markets with few customers and high margins, sellers should try to develop basic relationships rather than full partnerships.

False

Marketers typically limit their market segmentation analysis to a single variable in order to simplify the process.

False

Neuromarketing techniques provide easy-to-interpret data that allow researchers to analyze consumer involvement with products.

False

Orienting and motivating customer-contact employees to work as a team to provide customer satisfaction is known as social marketing.

False

Service variability means that the quality of services does not depend on who provides them.

False

Since less than ten percent of smartphone owners use their phones for shopping-related activities, mobile marketing is a slow growing digital marketing platform.

False

The most common form of marketing organization is the product management organization.

False

When a company's market offering consists of a pure tangible good, related services are typically included for an additional charge.

False

When sellers pay less attention to the specific products they offer and more attention to the benefits and experiences produced by these products, they suffer from marketing myopia.

False

Which of the following is a social factor that influences consumer buying behavior?

Family

Monfax Corporation insures manufacturers, distributors, and consumers against the loss or damage of goods during transportation after a purchase or sale. In this case, Monfax is an example of a ________.

Financial intermediary

When marketers want to promote their products and services through word-of-mouth marketing programs, they typically begin by ________.

Generating person-to-person brand conversations

Which generational group is most likely less materialistic when compared with other groups?

Generation X

Compared with undifferentiated marketing, differentiated marketing is more likely to lead to ________.

Higher costs of doing business

________ are small groups of consumers who interact directly and informally with product designers without a moderator.

Immersion groups

The process that turns marketing plans into marketing actions to accomplish strategic marketing objectives is called marketing ________.

Implementation

Which of the following contact methods is flexible, allows for explanation of difficult questions, and lends itself to demonstrating products?

Individual interviews

A firm uses a small convenience sample to gather data on customer reactions. It invites a small group of customers for lunch and asks them to share what they think about the products they have purchased from the firm. This is an example of ________.

Informal surveys

Becca wants to buy a new coat. She asks her friends to recommend a store and/or a style of coat. She looks for sale advertisements for coats in newspapers and also visits nearby stores to check if she can find something in her budget. In this case, Becca is most likely in the ________ stage of the buyer decision process.

Information search

Producers of popular beverages often partner with global music channels to target consumers through a variety of promotional events and advertisements. This approach to marketing is referred to as ________ segmentation.

Intermarket

Diane Chambers, the marketing manager of FarmFresh, collects data from her monthly records of sales, costs, and cash flow. In this case, Diane is making use of ________ databases.

Internal

Which link in the service chain emphasizes superior employee selection and training?

Internal service quality

Government regulations are intended to protect consumers, companies, and societal interests.

True

A market segment is less attractive when ________.

It contains powerful suppliers who can control prices

Which of the following is true of strategic planning in a firm?

It deals with adapting the firm to take advantage of changing marketing opportunities.

Which of the following is true of survey research?

It is the most widely used method for gathering primary data.

________ are tradition-bound, suspicious of changes, and adopt an innovation only when it has become something of a tradition itself.

Lagging adopters

Which of the following statements is true of international marketing research?

Language translation in international marketing research typically increases costs and raises the risk of errors.

Which of the following is an example of an unsought product?

Life insurance

Which of the following is a personal factor that influences a consumer's buying behavior?

Life-cycle stage

Haley Computers Inc. has appointed a few employees to sift through customer conversations on online forums and social networking sites regarding products purchased from Haley. These employees are likely to be working as ________.

Listening officers

The town of Genter recently witnessed a devastating hurricane that crippled the town's infrastructure. Q-Mart, a retail chain that plans to open a new retail store in Genter, organizes a program to help the people of Genter. The program consists of providing free meals to those who lost their dwellings in the hurricane. What section of the marketing microenvironment is Q-Mart most likely trying to reach?

Local publics

Which of the following is a primary characteristic of strategic control rather than operating control?

Looking at whether the company's basic plans and action goals are well matched to its opportunities

Demographic, economic, natural, technological, political, and cultural forces form the ________ of an organization.

Macroenvironment

Kathy Jenkins is planning to conduct research on consumers' personal care routines. Since the questions are likely to be personal and sensitive, Kathy wants to select a contact method that will encourage respondents to answer honestly. Which of

Mail questionnaires

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

Market penetration

A strategy for company growth through starting up or acquiring businesses outside the company's current products and markets is called ________.

Market penetration

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

Market segmentation

Which of the following is the right order of the steps that companies generally follow in designing a customer-driven marketing strategy?

Market segmentation, market targeting, differentiation, and positioning

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

Which of the following is the first stage of the buyer decision process?

Need recognition

Which of the following methods should a marketing researcher use to obtain information that people are unwilling or unable to provide?

Observational research

In a SWOT analysis, which of the following would be considered a weakness of a company?

Obsolete technologies used by the company

Which of the following is true of question formats in questionnaires?

Open-end questions are useful in exploratory research to find out what people think.

Which of the following terms best describes the process of designing and producing a container or wrapper for a product?

Packaging

Argonaut Food Stores, a retail giant, hires better-skilled employees than its competitors by employing strategic recruitment practices. It also conducts highly specialized training programs for its employees. In this case, Argonaut has focused on gaining a strong competitive advantage through ________ differentiation.

People

The most effective sources of information about a product tend to be ________ sources.

Personal

Zeal is a popular automobile brand, and its positioning statement reads as follows: "For upscale American families who require large vehicles, Zeal is the automobile of choice." Which of the following mandatory elements is missing from the positioning statement?

Point of difference

A product mix is also known as a product ________.

Portfolio

Which of the following includes the target segment of a product, the category to which the product belongs, and the product's point of difference from other members in the category?

Positioning statement

The ultimate aim of customer relationship management is to ________.

Produce high customer equity

Mike's, a chain of department stores, regularly purchases plastic bags from a certain supplier. The store decides to switch to less expensive bags made of biodegradable plastic. The change will promote an environmentally-friendly image for the department store and cut costs. This approach to cost reduction most likely occurred in the ________ stage of the business buying process.

Product specification

Jeff is in the process of buying a new car. He carefully analyzes the features that he wants in a car, and perceives significant differences in price, quality, and features among three of his favorite models. He rates the models on each factor and ranks them in the order of his preference. To which of the following stages of the buyer decision process will Jeff most likely proceed next?

Purchase decision

Which of the following is the means by which companies post purchase requests online and invite suppliers to bid for their business?

Reverse auctions

Sally purchased a newly introduced moisturizing lotion. By attempting to find out if the lotion's perceived performance matched her expectations, Sally was measuring her level of customer ________.

Satisfaction

People tend to interpret new information in a way that will support what they already believe. This is called ________.

Selective distortion

________ means that consumers are likely to remember good points made about a brand they favor and forget the good points made about competing brands.

Selective retention

Which of the following is a pure tangible good?

Shampoo

A refrigerator is an example of a(n) ________ product.

Shopping

The use of traditional business marketing concepts and tools to create behaviors that will create individual and societal well-being is called ________ marketing.

Social

________ products are consumer products and services with unique characteristics or brand identifications for which a significant group of buyers is willing to make more effort than usual to purchase.

Specialty

Which of the following statements is true in the context of the BCG growth-share matrix?

Stars often need heavy investment to finance their rapid growth in a market.

A company regularly purchases cleaning supplies from a vendor and orders relatively consistent amounts of the same products on each purchase from the same vendor. This is an example of a(n) ________.

Straight rebuy

When a market segment is large or profitable enough to serve, it is termed ________.

Substantial

Which category of industrial products includes repair and maintenance?

Supplies and services

________ is defined as a business strategy where business buyers prefer to buy a complete solution to a problem from a single seller rather than buying separate products and services from several suppliers.

Systems selling

GT Grand, a manufacturer of ultra-luxury cars, supplies customized vehicles based on the specific demands of customers in affluent market segments. The company's approach is most likely refereed to as _________.

Target marketing

Customer evangelists are those who ________.

Tell others about their good experiences with a brand or product

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

The collection of businesses and products that make up the company

Ideally, a sample should be representative so that a researcher can make accurate estimates of the thoughts and behaviors of the larger population.

True

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 Terranian market is expected to remain stable.

Which of the following is a difference between the marketing concept and the selling concept?

The marketing concept focuses on customer needs, whereas the selling concept focuses on existing products.

Alice is shopping for a new car, and she has narrowed her decision to a Honda Accord and a Toyota Camry. Both sedans have similar features and prices, but Alice decides to purchase the Honda based on her intuition. Which of the following situations would most likely cause Alice to experience postpurchase dissonance?

The price of the Toyota Camry falls due to an increase in demand.

Which of the following concepts holds that consumers will favor products that are available and highly affordable?

The production concept

Which of the following demonstrates the real value of a company's marketing research and information system?

The quality of customer insights it provides

Which of the following best describes the value chain of a company?

The series of departments that design, produce, market, deliver, and support the company's products

Which of the following is an advantage of primary data?

They are more relevant than secondary data.

Which of the following is most likely a true statement about baby boomers?

They are the wealthiest generation in U.S. history.

Which of the following is most likely true about companies that take a proactive stance toward the marketing environment?

They develop strategies to change the marketing environment.

Which of the following is true of product positioning?

To simplify the buying process, consumers are likely to position products in their minds.

A bank that helps a company finance transactions is both a financial intermediary and a financial public.

True

A brand is a name, term, sign, symbol, or design, or a combination of these, that identifies the maker or seller of a product or service.

True

A business marketer normally deals with far fewer buyers than a consumer marketer does.

True

A company can offer greater customer value by either charging lower prices than competitors or offering more benefits to justify higher prices.

True

A more-for-more market offering not only offers higher quality but also gives prestige to a buyer.

True

A product is defined as anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need.

True

A role consists of the activities people are expected to perform according to the people around them.

True

A tool for identifying growth opportunities is the product/market expansion grid.

True

An augmented product is a product that is built around the core benefit and actual product by offering additional consumer services and benefits.

True

An effective MIS assesses information needs, develops needed information, and distributes the information to help managers with decision making.

True

Business and consumer marketers use many of the same variables to segment their markets.

True

Business-to-business e-procurement lowers purchasing costs and reduces the time between order and delivery.

True

CRM analysts develop data warehouses and use sophisticated data mining techniques to unearth patterns in customer data.

True

Consumers are generally willing to make a special purchase effort to buy specialty products.

True

Customer-perceived value is defined as a customer's evaluation of the perceived difference between all the benefits and all the costs of a market offering relative to those of competing offers.

True

For market segments to be beneficial for companies, they must be measurable.

True

Furniture is an example of a shopping product.

True

Which of the following companies is using a divesting strategy?

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

Specialty products are consumer products and services that customers generally buy ________.

Without making comparisons

Kelstone Developers is planning to build a new shopping mall that would require the partial acquisition of a nearby public park. Walking Green, an environmental group, challenges the plan citing environmental destruction. In response to the demands of Walking Green, Kelstone Developers promises to build a huge park-like walkway around the mall. Walking Green is an example of a(n) ________ in this scenario.

citizen-action public

The overall process of dealing with all aspects of acquiring, keeping, and growing customers is referred to as ________.

customer relationship management

With a market development strategy, a company aims to improve sales by ________.

introducing its product in a new market without making any changes to the product