CSUN MKT 304 Exam 1 (Ch. 1-5 Quiz Answers)
The marketing manager of Zenith Corp. is interested in ranking clients on the basis of their profitability, and accesses a database that tells him about the frequency and size of each client's order along with the actual costs per order. This database is part of the ________ system. -sales information -CRM -financial information -employee management -promotion management
CRM (customer relationship management)
NAFTA is a market zone that eliminates tariffs between the United States and ________.
Canada and Mexico
________ is the most common method for entering foreign markets. -direct foreign investment -licensing -franchising -exporting -joint ventures
Exporting
________ is one of the most widely used measures of economic growth.
GDP (Gross domestic product)
________ refers to approaches that drive the market toward fulfilling a whole new set of needs that customers did not realize was possible or feasible before. -green marketing -tactical marketing -market creation -market orientation -marketing mix
Market creation
________ is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large
Marketing
___________ encompasses a societal and professional standard of right and fair practices that are expected of marketing managers in their oversight of strategy formulation, implementation, and control. -Marketing ethics -Price Fixing -social responsibility -Accreditation -Personal selling
Marketing ethics
Which of the following action elements is NOT desired for successful Marketing (Big M)? -Ensuring that everyone in an organization understands the concept of customer orientation -Aligning all internal organizational processes and systems around the customer -Finding somebody at the top of the firm to consistently champion this Big M business philosophy -Remembering the fact that the marketing department is where Big M takes place -Create market-driving, not just market-driven, strategies
Remembering the fact that the marketing department is where Marketing (Big M) takes place
MERCOSUR is a regional market zone in ________.
South America
Today many retailers create apps that customers can download to their smartphones or tablets to be up-to-date on the company's offerings. In the context of situation analysis, which of the following macro-level external environmental factors does this exemplify? -economic factors -natural factors -technological factors -political, legal, and ethical factors -sociocultural/demographic factors
Technological factors
Mary's firm has delayed making a decision on acquiring a new product line because her marketing team members took more than three months to analyze the numbers. Which of the following tips for successful marketing planning experience did the firm fail to use? -Stay inflexible -utilize input, but dont become paralyzed by information and analysis -dont underestimate the implementation part of the plan -stay strategic, but also stay on top of the tactical -give yourself and your people room to fail and try again
Utilize input, but don't become paralyzed by information and analysis.
The marketing management team of Brand Z Toys is looking at the possibility of opening a new plant in one of several developing countries. Before they decide on which country they want to build in, they want to conduct some preliminary research including local population demographics and lifestyle characteristics. However, they have discovered that the governments in several of these countries do not have a department that collects these data and no independent research firm has measured any of these areas. This demonstrates which issue with secondary data in global markets? -extendibility -accessibility -dependability -compatibility -comparability
accessibility
When the text states that marketers need to create tools for ongoing, meaningful measurement of marketing productivity, it is referring to the need for -accountability -responsibility -subjectivity -visibility -identification
accountability
Goals and objectives should be set ________. -at the beginning of marketing planning -at the end of the situation analysis -after marketing strategies are fixed -after completion of market research, situation analysis, and competitor analysis -during SWOT analysis while identifying external opportunities and threats
after completion of market research, situation analysis, and competitor analysis
A misconception about marketing is that it is ____________
all about selling
Outdated cell phones used in Europe or Asia have been introduced into the Latin American markets that don't have more updated models. This is an example of ________. -forward extension -product adaptation -backward invention -product extension -hybrid products
backward invention
Mega-Big Corp. has a small strategic business unit (SBU) that produces a component vital to the manufacturers of automobiles and has been extremely profitable for 18 years. The SBU acts as a key source of income for the firm. In the context of the BCG matrix, Mega-Big Corp. is most likely considered a ________. -question mark -cash cow -dog -problem child -top gun
cash cow
A restaurant's marketing manager is interested in finding out if reducing the price of food items will lead to increased sales. For this purpose, the manager should conduct ________ research. -causal -exploratory -descriptive -secondary -longitudinal
causal
One part of a marketing plan should identify what to do if things go wrong. This section is called ________ planning.
contingency
Which of the following are often described in terms of a separate plan for a worst-case, best-case, and expected-case performance against the forecast? -action plans -operational plans -functional-level plans -contingency plans -strategic plans
contingency plans
Which of the following helps avoid scrambling to decide how to adjust marketing strategies when performance against a forecast is higher or lower than expected? -marketing metrics -product development strategies -core competencies -support activities -contingency plans
contingency plans
Well-established distributors in a marketing channel often have relationships with competitors. In the context of market channels, which of the following channel strategies corresponds to this issue? -capital -coverage -character -continuity -control
continuity
Most global marketers rely on local distribution networks in foreign markets. This is because it is very expensive to build a company's own distribution network in a foreign market. This issue can be identified in the channel strategy of ________. -change -coverage -character -continuity -control
control
The process of measuring marketing results and adjusting the marketing plan as needed is called marketing ________. -control -metrics -management -strategy -planning
control
People around the world prefer Swiss watches over watches manufactured in other countries. In the context of product issues, which of the following best describes the customer's perception?
country-of-origin effect
Steve wants to gift a box of chocolates to his best friend. He walks into a store and buys Belgian chocolates because his friend once mentioned that they are the best in the world. This is an example of how consumers respond to ________.
country-of-origin effect
In the context of market channels, the use of local distribution networks to reach target customers is identified in the ________ channel factor. -cost -coverage -character -continuity -control
coverage
Peter Drucker, the father of modern management, stated the only purpose of an organization is to
create a customer
The color red means different things in different parts of the world. For example, in China, a bride traditionally would wear red but not white. White is a symbol of death. This would be identified in the ________ section of a global market research report.
cultural, societal trends
Which of the following is an internal source of collecting information for making marketing decisions? -demographics -ethnic groups -technology transformations -economic conditions -customer orders
customer orders
Hannah's alterations business works around the needs of the customer by providing hours of operation that vary throughout the week, including some evening and weekend hours. It could be said that Hannah's business is ___________. -differentiated -customer-centric -market oriented -product oriented -socially responsible
customer-centric
The primary organizational patterns employed by organizations around the world are ________. -highly decentralized, decentralized, centralized -highly centralized, centralized, decentralized -regionalized, highly regionalized, and centralized -decentralized, centralized, regionized -regionalized, moderately decentralized, and centralized
decentralized, centralized, and regionized
The marketing manager for Ned's Bar and Grill notices that his typical customer is a male college student. In the context of external information sources, he is using ________ to define his market.
demographics
The Clean-O company makes a cleanser for the hospital and nursing home market that is guaranteed to kill 99 percent of Staphylococcus germs, a major concern for medical facilities. Unlike other companies, Clean-O is not interested in pursuing the consumer market. In this case, Clean-O has adopted a ________ orientation. -market -mass customization -differentiation -relationship -product
differentiation. Differentiation is what clearly distinguishes your products from those of competitors in the minds of customers.
A technology or high-end industrial product company is most likely to use a(n) ________ in foreign markets because customers expect the expertise of highly-trained, accessible personnel. -broker -export agent -distributor -direct sales force -freight forwarder
direct sales force
Lately the demand for building materials has dropped due to the slowdown in new housing construction. Woods Corp. is thinking of closing its fine wood division that produces mahogany and cherry lumber for building cabinets and other applications. Under the Boston Consulting Group Growth-Share Matrix, the fine wood division would most likely be classified as a ________. star cash cow dog problem child top gun
dog
Purpose marketing, or pro-social marketing, as practiced by well-known Tom's shoe company, ________ -is a least preferred marketing strategy -is a for-profit part of the business -focuses primarily on increasing productivity -engages consumers in a meaningful way -has no impact on customers who care about social issues
engages consumers in a meaningful way
Bryan gets reduced fees for his daughter's piano lessons by maintaining her teacher's website. Bryan is practicing the central tenet of marketing called ________. -value -exchange -growth -sustainability -power
exchange
The best place in a SWOT analysis to list the availability of credit for a firm seeking to expand through new construction of real estate is ________. -external opportunities -external threats -internal opportunities -internal strengths -internal weaknesses
external opportunities
The best place in a SWOT analysis for a wristwatch manufacturer to identify the presence of competitive substitute products is ________. -external opportunities -external threats -internal opportunities -internal strengths -internal weaknesses
external threats
The best place in a SWOT analysis to identify problems with hurricanes, earthquakes, major snowfalls, and other natural phenomena is ________.
external threats
Customer relationship management (CRM) is designed primarily to -assess the personality characteristics of target customers -identify profitable customers in new markets -position products to serve very specific customer groups -clearly distinguish a firm's products from those of competitors in the minds of customers -facilitate higher levels of customer satisfaction
facilitate higher levels of customer satisfaction
In the context of situation analysis, which of the following is a category for analysis in the internal environment? -political, legal, and ethical -technological -firm resources -threat of new entrants -sociocultural/demographic
firm resources
Coca-Cola introduced a new product called Diet Coke in Japan. Sales of this product were low in the initial stages because Japanese women associated the word diet with weakness; however, changing the name of the product from Diet Coke to Coke Light proved effective. Which of the following product issues affected the sales of Diet Coke in this scenario? -brand strategy -country-of-origin effect -quality -fitting the product to the culture -manufacturing
fitting the product to the culture
Utility created when a firm converts raw materials into finished products that are desired by the market is called ________ utility. -time -form -place -ownership -price
form
Claire and her mother are both in marketing positions. Claire's job is satisfying to her primarily because it gives her a flexible schedule and pays well so she can take vacations with her friends. Her mother chose a job that provides health benefits and structured work with regular hours. This demonstrates shifts in ___________ that can influence work life versus family life. -generational value and preferences -info power from marketer to customer -product glut and customer shortage -buying power from customer to marketer -competitive influences
generational value and preferences
Growth, stability, and retrenchment refer to a firm's position relating to its ________ strategy. -specific -generic -future -diversification -differentiation
generic
When local government relationships are critical to the success of international operations, the best organizational structure for a firm would be ________. -targeted organization -global product lines -geographic regions -hybrid or matrix -multinationals
geographic regions
An understanding of marketing beyond home markets develops over time as a company gets more international business experience. This process is referred to as the ________. -global acceptance curve -global learning continuum -international experience learning curve -global experience learning curve -international experience continuum
global experience learning curve
In the 1930s, companies and consumers began to realize that utilizing resources efficiently and effectively was good for society and beneficial to business. This grew into the ___________ movement. -direct investment -profitability -consumer-orientation -green -active citizen
green
In Wiersema's book, The New Market Leaders, he identifies six new market realities. Which of the following is included in the list? -competitors fade away -few secrets are open secrets -innovation is universal -info appreciates -hard times make easy growth
innovation is universal
Relationship-oriented firms tend to __________ -be driven by meeting a quarter's financial projections -keep and cultivate their profitable current customers who are highly satisfied with the firm's offerings -constantly invest in new customers that come with unknown return on investment -often lose great customers and scramble to replace the associated lost revenue -focus primarily on increasing sales through catchy and entertaining advertisements
keep and cultivate their profitable current customers who are highly satisfied with the firm's offerings
Microsoft's revolution of the information field and Disney's creation of the modern theme park industry are classic examples of
market creation
Time Express, a well-established North American delivery service, wants to expand service into Central and South America. According to Igor Ansoff's Product-Market Matrix, this is classified as the ________ strategy. -market diversification -product differentiation -market penetration -product development -market development
market development
Everything from brand image, to the message sales people and advertisements deliver, to customer service, to packaging and product features, to the chosen distribution channel exemplify -strategic marketing -relationship orientation -marketing (big m) -sales orientation -marketing (little m)
marketing (little m)
Sean attributes the success of his video game arcade to advertising on the most popular website for gamers. Recently, the website raised ad prices, so Sean has cut his advertising in half. He believes that positive word-of-mouth will be enough now that his game is well established. However, sales are slipping. Of the five primary activities in the value chain, this problem is most likely to occur in ________. -inbound logistics -operations -outbound logistics -marketing and sales -service
marketing and sales
Many countries restrict marketing to children more severely than in the United States. A firm considering direct foreign investment would report this finding under the heading of ________. -technology transfer -legal issues -transaction costs -marketing communication barriers -product differentiation
marketing communication barriers
The sales manager at a company wants to keep informed, so he collects, analyzes, and stores data from the macro environment on a continuous basis. This illustrates the concept of ________. -portfolio analysis -exploratory research -marketing intelligence -probability sampling -mechanical observation
marketing intelligence
To significantly enhance customer choices, Levi combines flexible manufacturing with flexible marketing. Customers may visit the Levi's clothing website or some company-owned stores and order a pair of jeans that will be made especially for them. Levi's has adopted a ________ orientation approach. -market -mass customization -differentiation -product -relationship
mass customization
Core Market Research is testing how customers react to a proposed advertising campaign for Go Fast Sports Cars. The researchers scan consumers' brains using an fMRI machine while the consumers view a series of advertisements so that they can monitor the blood flow in different areas of the brain. In this case, Core is using ________ for its market research. -in-depth interviews -mechanical devices -behavioral measures -structured surveys -focus groups
mechanical devices
A ________ articulates an organization's reason for existence and defines the unique purpose that sets it apart from competitors and identifies the scope of the company's operations, products, and markets.
mission statement
The marketing manager of Big Wheel Motors notices an increased demand for "green" cars that use less fossil fuel and emit fewer pollutants. Under which of the following external information sources for making marketing decisions will this information be included? -legal environment -technology transformations -natural world -competition -economic conditions
natural world
Delxen Inc., a multinational company, uses the same prices for all its products globally. This type of pricing is called ________.
one world price
The concept of engaging in a learning relationship with customers and directing the firm's resources to making each product or service as customized as possible is known as ________. -market orientation -pro-social marketing -differentiation orientation -one-to-one marketing -relationship orientation
one-to-one marketing
Jason went to an automobile dealership to buy a car, and he spent two hours talking to an employee about options. This element of marketing communications is called ________. -advertising -personal selling -promotion -public relations -direct marketing
personal selling
Starbucks has been successful in developing "ethically sourced" coffee that is socially responsible and environmentally safe. This demonstrates which element of TBL? -people -planet -product -profit -promotion
planet TBL: Triple Bottom Line measures company's degree of social responsibility, economic value, and environmental impact
John, the CEO of Tresnel Inc., learns that the government of one of his company's foreign markets has enacted a new law that limits the amount of profit it can make. He projects that this will result in future losses. If John researches the ________ environment, he can plan a strategy to deal with this situation.
political and legal
Phillippe needs to fire a manager of a French subsidiary of his company. He recently found that French law makes it difficult to terminate employees. This would be identified in the ________ section of a global market research report.
political, legal
Automobile manufacturers must comply with regulations set by the National Transportation and Safety Board. In the context of situation analysis, which of the following macro-level external environmental factors does this exemplify? -sociocultural/demographic -firm structure and systems -political, legal, and ethical -firm resources -threat of new entrants
political, legal, and ethical
Victor Inc., a producer of headphones used with cell phones and MP3 players, uses contract manufacturing overseas. The firm is concerned that tariffs may be increased. Under which component of situation analysis will an examination of this issue be found?
political, legal, and ethical factors
The marketing manager for Dream Weaver Textiles reads in a trade magazine that the Federal Trade Commission is in the process of revising content labeling requirements for textiles that claim to be natural. In the context of external forces affecting marketing decisions, this represents the ________.
political/legal environment
A medieval knight could not go to the armor maker and pick out a size 44 long suit of armor to protect him in battle. Nor could a person living in the middle ages go to the cobbler and get a pair of shoes in a few minutes. This period before the advent of marketing is known as the ________.
pre-industrial revolution
In the context of the marketing mix, ________ today is largely regarded in relationship to the concept of value -product -price -promotion -place -policy
price
Coca-Cola changes the taste of its soft drinks to meet local market preferences. This is an example of ________. -direct product extension -product adaptation -backward product invention -product invention -hybrid products
product adaptation
Inga, marketing manager at Sunshine, a professional preschool center, thinks the firm should start an after-school program for its current clients. This makes sense as she wants to extend the trusting relationship already established with parents and children. According to Igor Ansoff's Product-Market Matrix, this is an example of the ________ strategy. -market diversification -product differentiation -market penetration -product development -market development
product development
Bistrone corn canned soup was made expressly for the Japanese market by Coca-Cola Japan. This is an example of ________. -direct product extension -product adaptation -backward product adaptation -product invention -hybrid products
product invention
The 4Ps of marketing are
product, price, place, and promotion
The text discusses the triple bottom line metric, and outlines an approach to consider the impact of TBL in marketing management. This includes people, planet, and ________.
profit
Which of the following is NOT a facet of marketing? -research -advertising -brand development -public relations -recruiting
recruiting
A local landscaping company works hard to keep and cultivate profitable current customers instead of constantly investing in gaining new customers that come with unknown return on investment. This company has a ____________ orientation. -sales -differentiation -market -production -relationship
relationship
Which of the following is NOT one of the forces that drives countries to form regional market zones? -religious values -geographic proximity -economic -cultural similarities -political
religious values
Zenith Homebuilders used to purchase many building lots and erect spec homes (i.e., it gambled that the demand for new houses would be so high that they would sell easily). Since the real estate slowdown, it builds homes only when owners are under contract. In this case, the company is most likely pursuing a generic business strategy of ________. -retrenchment -stability -diversification -growth -differentiation
retrenchment
Which of the following is NOT a major category for analysis in the internal environment? -firm resources -firm leadership -firm culture -rivalry among existing firms -firm structure and systems
rivalry among existing firms
The stereotypical automobile dealership uses tactics like high pressure and bargaining to get customers to buy. This is an example of the ________ orientation. -production -sales -marketing -customer -relationship
sales
The marketing manager of a firm has hired a market research team. Together, the manager and the researchers decide that they need data from current customers and noncustomers who fit a specific demographic and lifestyle profile. In the context of research design activities, the selection of these individuals as targets for data collection represents the ________. -type of research -nature of data -nature of data collection -information content -sampling plan
sampling plan
The Girl Scouts introduced a cookie finder app in 2013. In the context of change drivers impacting the future of marketing, this reflects the ________. -shift to product glut and customer shortage -shift in power from marketer to customer -shift in generational values and preferences -shift to distinguishing Big M from Little M -shift to justifying the relevance and payback of the marketing investment
shift in generational values and preferences
Today customers have limitless access to facts about companies, products, competitors, other customers, and even detailed elements of marketing plans and strategies. In the context of change drivers impacting the future of marketing, this reflects the ________. -shift in information power from marketer to customer -shift to demanding return on marketing investment -shift in generational values and preferences -shift to distinguishing Big M from little m -shift to product glut and customer shortage
shift in information power from marketer to customer
Appropriate and effective marketing metrics must be designed to identify, track, evaluate, and provide key benchmarks for improvement. In the context of change drivers affecting the future of marketing, this reflects the ________. -shift to justifying the relevance and payback of the marketing investment -shift to product glut and customer shortage -shift to distinguishing Big M from Little M -shift in generational values and preferences -shift in information power from marketer to customer
shift to justifying the relevance and payback of the marketing investment
The core marketing concept characteristics of an organization-wide customer orientation and long-run profits are ____________ in nature
strategic
Marketing (Big M) is also known as ________ marketing.
strategic Marketing (Big M) serves as a core driver of business strategy. That is, an understanding of markets, competitors, and other external forces, coupled with attention to internal capabilities, allows a firm to successfully develop strategies for the future. This approach is often referred to as strategic marketing, which means a long-term, firm-level commitment to investing in marketing—supported at the highest organization level—for the purpose of enhancing organizational performance.
Herbie recently read that Crane Airways of Japan, Kestrel Airlines of Germany, Heron Air of Australia, and Egret Airways of India have code sharing partnership, which allows passengers to fly on any of the airlines, share frequent flyer miles, and give each other logistical support. Herbie had just learned in his Global Marketing class that this arrangement is known as a(n) ________. -franchising -strategic alliance -green field project -acquisition -licensing
strategic alliance
For successful Marketing (Big M), all internal organizational practices should be aligned around _______
the customer
Open Sesame is a chain of Thai restaurants located in the western United States. The marketing manager has discovered that there is a growing demand for Spanish food, and the appetite for Asian food is declining. In the context of SWOT analysis, this information would be included under ________. -strengths -threats -opportunities -strategies -weaknesses
threats
Which of the following is most likely to be considered a goal rather than an objective? -to improve customer satisfaction ratings to 95% -increase ROI by 20% -to be the leader in one's field -to reduce the cost of scrap material to less than 1% of total manufacturing cost -to get five new distributors
to be the leader in one's field
The value of the Japanese yen has fluctuated widely during the 2000s compared to the U.S. dollar. A firm considering direct foreign investment would report this finding under the heading of ________. -timing -legal issues -transaction costs -marketing communication barriers -product differentiation
transaction costs
Joelle bought a new Coach purse for herself as a birthday present. She had never spent that much on a purse, but decided it was worth it because it was so elegant. This demonstrates how a customer's perception of ________ can influence buying behavior. -exchange -utility -place -competition -value
value
Which of the following is NOT one of the five primary activities in the value chain? -inbound logistics -operations -outbound logistics -marketing and sales -technology procurement
technology procurement
Lin Wai's company, New Home Builders Corp., specializes in designing homes that have wide hallways and walk-in showers that could accommodate the need to use a wheelchair or walker, and other amenities that allow couples to remain in their homes as they age. The company's strong value proposition has allowed it to maintain steady market share in a weak housing market. In the context of SWOT analysis, a discussion of this relative advantage would be included under ________.
strengths
A SWOT analysis of a firm is least likely to ________. -reveal weaknesses -look at internal strengths -include external analysis -identify potential opportunities and threats -suggest solutions to problems
suggest solutions to problems
What can impact the competitive nature of an industry through the ability to raise prices or affect the quality of inbound goods and services? -suppliers -buyers -new entrants -substitute products -retailers
suppliers
