Exam 1
What are the marketing mix elements that make up a cohesive marketing program? ____ P's
4
A mother of two toddlers would primarily use an internal search during the purchase decision process when purchasing A) disposable diapers. B) a gift for her mother-in-law. C) a weekend getaway. D) an iPhone. E) a swing set.
A
A reference group that a person wishes to be a member of or wishes to be identified with is referred to as a(n) ________ group. A) aspiration B) assimilation C) integrated D) preference E) associative
A
A(n) ________ in the consumer purchase decision process occurs when consumers scan their memories for previous experiences with products or brands. A) internal search B) problem recognition C) antecedent state D) purchase task E) external search
A
An important social trend is the continued concern for health and well-being in the United States. This is most likely evidenced by A) the introduction of Lay's Kettle Cooked potato chips, which have 40 percent less fat than regular potato chips. B) the increased sales of Cigar Aficionado magazine. C) the introduction of tablet devices such as the iPad. D) the opening of more Starbucks coffee boutiques in supermarkets. E) the upsizing of menu items at fast-food restaurants.
A
In a marketing context, a market refers to A) people with both the desire and ability to buy a specific offering. B) an open space or covered building where vendors convene to sell their offerings. C) people with a similar want for a particular product or service. D) the free operation of supply and demand. E) the central location for all buying and selling of products and services
A
Market penetration refers to the marketing strategy of A) increasing sales of current products in current markets. B) selling new products to current markets. C) selling current products to new markets. D) selling the same brands in both current and new markets. E) selling new products to new markets.
A
The ________ for Facebook is "To give people the power to share and make the world more open and connected." A) mission statement B) code of ethics C) core benefit proposition D) sustainability doctrine E) corporate philosophy
A
The element of the marketing mix that describes a good, service, or idea to satisfy consumers' needs is known as A) a product. B) the place or distribution. C) a market segment. D) promotion. E) the price.
A
When Clorox uses the Good Housekeeping Seal for its Fresh Step cat litter, its strategy is to reduce a consumer's ________ and encourage purchases. A) perceived risk B) consumer angst C) consumer cynicism D) cognitive dissonance E) purchase anxiety
A
Whether an individual is considering a purchase for personal or household use, or an organization is buying for its own use or for resale, the individual or organization would be considered A) a prospective customer. B) an end user. C) a potential distributor. D) an informed buyer. E) a dual-purpose marketing decision maker
A
Which of the following is a demographic trends that has significant implications to global marketers? A) the large and growing markets in India and China B) the decreasing interest in entrepreneurship in developing countries C) the lack of savings of elderly populations in developed countries D) the tripling of the population of consumers under 40 years old E) the declining populations in Latin American countries
A
______ surveys are usually biased because those most likely to respond are those who have had especially positive or negative experiences with the product or brand. A) Mail B) Personal interview C) Fax D) Telephone E) Online
A
A board of directors of an organization A) represents the CEO. B) oversees the three levels of strategy. C) represents the corporate level. D) represents the functional level. E) represents the strategic business unit level.
B
A television advertisement shows several teenagers searching through the pantry for something to satisfy their hunger. The pantry offers the teenagers many alternatives —cereal, chips, cookies, and some Cool Mint Chocolate Clif Bars. The ad, which shows the teens happily selecting the Clif Bars, appeals to the consumers' ________ for sustenance to satisfy their hunger and attempts to shape their ________ for the advertised product. A) requirements; needs B) needs; wants C) wants; preferences D) needs; preferences E) demands; needs
B
All of the following are true about marketing except which? A) Marketing stresses the importance of delivering genuine benefits in the offerings of goods, services, and ideas sold to customers. B) Successful marketing usually results in one "winner" and one or more "losers." C) Marketing is a broader activity than personal selling. D) Marketing is a broader activity than advertising. E) When an organization engages in marketing, it should also create value for its partners and society
B
At the functional level, the marketing department A) develops the corporate culture. B) looks outward, in part by listening to customers. C) defines the overall strategic direction of the organization. D) solicits talent from all levels of the organization for strategic corporate planning sessions. E) promotes its goals to the organization's stakeholders
B
How would consumers who purchased a new and innovative Nike LeBron 15 basketball shoe for $185 try to reduce any cognitive dissonance they feel? A) Limit their information search to an internal one. B) Read ads for the new basketball shoe even after the purchase has been made. C) Minimize problem-solving involvement. D) Conceal the product purchase from others. E) If the shoe is comfortable and gives the requisite support, there will be no cognitive dissonance.
B
In the 20th century, managers of railroads let airlines, barges, pipelines, and trucks take business away from them because their strategies were developed only for the railroad business, rather than a broader definition of the ________ business. A) bulk cargo B) transportation C) transcontinental shipping D) passenger travel E) product delivery
B
Making recommendations, implementing those recommendations, and evaluating the results would take place during which step of the five-step marketing research approach? A) Develop the research plan. B) Take marketing actions. C) Collect relevant information. D) Define the problem. E) Develop findings.
B
Medication sensors have been developed that can dispense medicines by circulating within the arteries of the body and sensing when the medication is needed. This is an example of how ________ forces help improve or replace existing products and companies. A) regulatory B) technological C) marketing mix D) competitive E) ecological
B
Rhone-Poulenc is an international French company that produces and markets a variety of chemicals and pharmaceuticals. Due to the resources it makes available to its scientists and researchers, the company has a number of Nobel Prize winners working in its laboratories. This ability to employ some of the finest minds in the world is an example of a A) point of similarity. B) competency. C) human resource strategy. D) sustainable advantage. E) product development strategy.
B
Sensitivity to consumers' consumption or use experience, whether they are satisfied or dissatisfied, is extremely important in their A) information search. B) value perceptions. C) evaluative criteria selection. D) consideration set assessment. E) prepurchase behavior.
B
The element of the marketing mix demonstrated when an art gallery suggests a $2 donation at the door is A) place. B) price. C) promotion. D) philanthropy. E) product.
B
The personal, social, and economic significance of the purchase to the consumer, which is known as the level of ________, may cause him or her to skip or minimize one or more stages in the purchase decision process. A) aspiration ' B) involvement C) cognitive dissonance D) motivation E) situational influences
B
To serve both buyers and sellers, marketing seeks to discover and ________ the needs and wants of prospective customers. A) change B) satisfy C) create D) preserve E) manipulate
B
Which of the following people would most likely be the best target market for tickets to the home games of the Indianapolis Colts professional football team? A) all men who played on a varsity football team in high school B) all people in the Indianapolis and surrounding areas interested in football C) all people with an interest in professional football D) all people in the Midwest who have an interest in sports E) all people in Indiana who watch football on TV
B
Word of mouth refers to A) the individuals who exert direct or indirect social influence over others. B) the influencing of people during conversations. C) advertising or public service announcements that rely solely on auditory or voice messages to reach an organization's target market. D) casual or unconstrained conversation or reports about other people or offerings involving details that are not confirmed as being true. E) subjective, often negative, misconceptions that are passed from one person to another as the result of selective perception.
B
A consumer's purchases are often influenced by the views, opinions, or behaviors of others. Which of the following is an aspect of this personal influence? A) peer pressure B) parental guidance C) opinion leadership D) government regulation E) psychographics
C
A firm's ________ are timeless, capturing its heart and soul, and serve to inspire and motivate its stakeholders. A) corporate ethos B) corporate culture C) core values D) strategic goals E) offerings
C
A good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers' needs and is received in exchange for money or something else of value is known as A) an item. B) a utility. C) a product. D) a marketing program. E) a service.
C
A marketing plan refers to A) a technique that marketing managers use to quantify performance measures and growth targets to analyze their firm's strategic business units (SBUs) as though they were a collection of separate investments. B) a road map for the entire organization for a specified future period of time, such as one year or five years. C) a road map for the marketing activities of an organization for a specified future time period, such as one year or five years. D) the detailed day-to-day operational decisions essential to the overall success of marketing strategies. E) the long-term decisions made to implement the marketing program and the monitoring of those decisions.
C
A product A) consists of items that the consumer purchases frequently, conveniently, and with a minimum of shopping effort. B) is the cluster of benefits that an organization promises customers to satisfy their needs. C) is a good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfy consumers' needs and is received in exchange for money or something else of value. D) is the set of intangible activities or benefits that an organization provides to satisfy consumers' needs in exchange for money or something else of value. E) consists of the benefits or customer value received by its sellers
C
Based on the marketing program 3M developed for its Post-it Flag Highlighters and Post-it Flag Pens, one can conclude that A) the prices for 3M's Post-it Flag Highlighters and Post-it Flag Pens are set to maximize 3M's profits, not its distributors' profits. B) the market segments for Post-it Flag Highlighters and Post-it Flag Pens are identical. C) the promotion strategy is designed to increase awareness among potential users. D) the market segments for Post-it Flag Highlighters and Post-it Flag Pens are not realistic. E) the Post-it Flag Highlighters and Post-it Flag Pens are priced unreasonably for the target markets.
C
Effective marketing benefits society because it A) allows companies to charge whatever price they want, regardless of product quality. B) reduces competition, making the playing field more even. C) enhances competition, which improves the quality of products and services and lowers prices. D) improves the quality of products and services regardless of the cost. E) makes countries more competitive in world markets while simultaneously reducing competition in their home markets.
C
In the Maslow hierarchy of needs, the most basic needs are physiological, followed by safety, social, and personal. What category of needs is at the highest level? A) emotional needs B) religious needs C) self-actualization needs D) psychological needs E) intellectual needs
C
Marketers often discover consumer needs by A) implementing a marketing program. B) advertising to diverse groups of prospective buyers. C) conducting effective marketing research. D) copying the products and services of competitors. E) balancing the marketing mix elements—the four Ps of the marketing program.
C
One way a company can benefit from implementing a market penetration strategy would be to A) reduce promotion and distribution costs to improve production efficiencies for the product in reaching new markets. B) alter the product and sell it to a new market. C) sell more products at a lower price in new markets. D) sell the same amount of product at a higher price in the same market. E) find a new market and sell the product at a much higher price.
C
Procter & Gamble (P&G) is a consumer packaged goods company where innovation is a key competitive advantage. This allows the firm to develop products like Crest Whitestrips that consumers crave. P&G also uses its marketing expertise to develop unique product placements on television shows that highlight its brands. A SWOT analysis for P&G would indicate that innovation in product design and marketing is a(n) ________ for the firm. A) an opportunity B) a problem C) a strength D) a threat E) a weakness
C
Suppose you want a snack after taking this exam. Domino's is located across the street from your College of Business classroom. Unfortunately, you forgot your wallet in the haste of getting to class on time to take the test. Therefore, you have no means to pay for the pizza. Which of the following reasons explain why marketing fails to occur here between you and Domino's? A) There is only one party with unsatisfied needs. B) There is no way for the parties involved to communicate. C) The ability to satisfy a need is missing. D) No assessments of consumer wants and needs have been made. E) A desire to satisfy a need is missing.
C
The ________ concept means that an organization strives to satisfy consumer needs while achieving its goals A) sales B) customer relationship C) marketing D) societal benefit E) production
C
The owners of Old School Brand Authentic Antique Foods researched Civil War records to come up with recipes for the heritage products they market. An offer to be featured in an upcoming edition of Taste of Home magazine would be considered part of the ________ element of the marketing mix. A) price B) product C) promotion D) place E) production
C
Which of the following organizations engage in marketing? A) the Chicago Cubs B) the President of the United States C) Every organization or individual can engage in marketing to some extent. D) the City of Denver E) the San Francisco Opera
C
________ convert an organization's mission and business into long- and short-term performance targets. A) Strategies B) Plans C) Goals D) Visions E) Tactics
C
A common way of collecting questionnaire data to generate ideas that involves a single researcher asking questions of one respondent is referred to as a(n) A) face-to-face exchange. B) individual interview. C) focus consultation. D) interactional interview. E) panel.
D
A favorable attitude toward and consistent purchase of a single brand over time is referred to as A) consumer allegiance. B) attitudinal discrimination. C) stimulus generalization. D) brand loyalty. E) behavioral loyalty.
D
An Acura automobile ad is headlined by a quote from Henry David Thoreau, "Go in the Direction of Your Dreams." This ad is most likely to appeal to consumers' ________ needs in the Maslow hierarchy of needs. A) physiological B) social C) personal D) self-actualization E) psychological
D
An external search for product information is likely to occur when A) the risk of making a wrong purchase decision is low. B) the item is for personal use rather than for professional use. C) the item is frequently purchased. D) the cost of gathering information is low. E) review of past experience provides adequate information
D
More is a publication designed to appeal to women aged 40 and over. Demand for such magazines is an example of how changing ________ characteristics impact the marketing environment. A) cultural B) occupational C) behavioral D) demographic E) psychographic
D
The Electronic Signatures in Global and National Commerce Act makes digital signatures as valid as pen-and-ink signatures. This act created a demand for software and hardware that would collect, transmit, and receive digital signatures. This example indicates how ________ forces can work together in the marketing environment. A) technological and competitive B) social and economic C) regulatory and economic D) technological and regulatory E) social and competitive
D
The four Ps are commonly known as A) the marketing mix or uncontrollable forces. B) environmental factors, both controllable and uncontrollable. C) the environmental or uncontrollable forces. D) the marketing mix or controllable factors. E) the environmental or controllable factors.
D
The most recent estimate indicates that the population of the world today is about A) 8.2 billion. B) 6.3 billion. C) 9.5 billion. D) 7.4 billion. E) 5.7 billion.
D
The trade of things of value between buyer and seller so that each is better off after the trade is referred to as A) barter. B) marketing. C) financial remuneration. D) exchange. E) countertrade.
D
There are five stages in the consumer purchase decision process. The last stage is A) problem resolution. B) purchase decision. C) alternative evaluation. D) postpurchase behavior. E) information search.
D
Utility refers to A) the variable costs associated with the production of a single unit of a product within a product line. B) the number of alternative uses or benefits that can be provided by a single product or service. C) the fixed costs associated with the production of a single unit of a product within a product line. D) the benefits or customer value received by users of the product. E) the adaptability
D
Visa and MasterCard have recently been accused of violating antitrust laws by improperly fixing credit and debit card fees (known as swipe fees) paid by retailers to use their services, creating an anti-competitive environment. Legislation that prohibits price-fixing is an example of ________ forces that affect the marketing environment. A) ecological B) economic C) technological D) regulatory E) social
D
A want is ________ that is shaped by a person's knowledge, culture, and personality. A) a utility B) a demand C) a desire D) an option E) a need
E
A(n) ________ is a legal entity that consists of people who share a common mission. A) department B) market C) industry D) SBU E) organization
E
According to Figure 2-3a above, which of the following is the largest Website Traffic Source? A) Facebook B) Twitter C) Direct traffic D) YouTube E) Google
E
All of the following are examples of products or services that satisfy a consumer need except which? A) a jacket B) a student dormitory C) a pair of jeans D) an apple E) a sales tax
E
Demographic characteristics that describe a population include all of the following except which? A) age B) ethnicity C) income D) occupation E) zip code
E
Discovering consumer needs leads directly to A) purchases by customers. B) sales and manufacturing department outcomes. C) supplier and distributor outcomes. D) stakeholder rewards. E) concepts for new products
E
Fisher-Price watches young children play with its toys to determine if and how various products should be changed or improved. Fisher Price is collecting ________ data. A) on-site B) questionnaire C) focus group D) interview E) observational
E
In the Maslow hierarchy of needs, a health insurance policy would satisfy a ________ need. A) personal B) self-actualization C) physiological D) social E) safety
E
Netflix is a company that delivers DVD movies and television programming to consumers either by mail or streaming over the Internet. It faces many competitors, but continues to grow both in the US and abroad. Netflix now has around 47 million subscribers in the US out of 82 million worldwide. Part of what has driven success in recent years is its original content, with shows like Orange is the New Black and House of Cards, popular programming that cannot be seen elsewhere. Its original content provides Netflix's A) sales orientation. B) viable mission. C) tactical innovation. D) core benefit. E) competitive advantage.
E
People with both the desire and ability to buy a specific offering are referred to as A) a customer base. B) candidates. C) shoppers. D) qualified prospects. E) a market.
E
Satisfying consumer needs is accomplished by A) developing a distribution strategy. B) discovering consumer needs. C) identifying target markets. D) conducting marketing research. E) designing a marketing program.
E
Taco Bell sells Doritos Locos Tacos in the U.S., with shells made out of Nacho Cheese Doritos. At introduction, the chain sold 100 million tacos in the first 10 weeks alone, its most popular product launch of all time. Considering Figure 2-5 above, this is an example of a ________ strategy that would be found in quadrant ________. A) product-market expansion; D B) market penetration; A C) market development; C D) Diversification; D E) product development; B
E
Teach for America is an example of A) an entrepreneurial business firm. B) a subchapter S corporation. C) a 501(c)(3) for-profit organization. D) a public value agency. E) a nonprofit organization.
E
The U.S. Census Bureau publishes the ________, which is conducted every five years and contains detailed information on the number and sales of U.S. establishments that produce goods or resources. A) Annual Wholesale Trade Survey B) Survey of Business Owners C) North American Industry Classification System D) Annual Survey of Manufacturers E) Economic Census
E
The corporate level of an organization is the A) functional level. B) proxy for the board of directors. C) strategic business unit level. D) most independent level of the business. E) level of top management that directs overall strategy
E
Those who have flown on Singapore Air have experienced firsthand the great food that is served during the flight, the friendliness of the flight attendants, and the comfortable seating. Singapore Air creates customer value by providing its customers with A) the most convenient flight schedules. B) the best airport experience. C) the greatest sense of personal safety. D) the best price for the distance traveled. E) the best in-flight service.
E
Using smartphones, one can watch the news, shoot videos, browse the Internet, take pictures, and listen to music. Improved features are added with each smartphone introduced by Apple, Samsung, LG, and others. As a result, customers often want to replace their existing smartphones with new models or brands every two years when their contracts expire. This increase in demand is due mostly to changes in ________, an environmental force. A) the economy B) competition C) regulations D) social culture E) technology
E
Which of the following statements about marketing activities is most accurate? A) Marketing activities are the sole responsibility of the marketing department; other departments are involved only if there is an emergency (such as a product recall). B) Marketing is affected by society but rarely, if ever, affects society as a whole. ' C) Marketing is essentially developing the right product and convincing potential customers that they "need" it, not just "want" it. D) Environmental forces do not affect marketing activities as long as a firm closely monitors its environment through rigorous market research. E) The marketing department both shapes and is shaped by its relationship with internal and external groups.
E
Which of the following statements about marketing is most accurate? A) Marketing is nothing more than common sense. B) Marketing requires an innate sense of creativity; you either have it or you don't. C) Unless you take a marketing class, you will never truly know anything about marketing. D) You can call yourself a marketing expert only if you have sold something. E) You have significant marketing expertise since you make marketing-related decisions every day.
E
Maslow's Hierarchy of Needs: 4th level ____ needs Status, prestige, achievement
Personal
Psychologists point out that an individual's needs may be hierarchical; that is, once one set of needs is met, people seek to satisfy the next set of needs in the hierarchy. Name each of the five levels in Maslow's hierarchy of needs in order and give an example of each. Lowest level: ___ needs food water
Physiological
Identify and describe the three steps of the planning phase of the strategic marketing process: Step 1: ____ analsys
SWOT
Maslow's Hierarchy of Needs: 2nd level ____ needs well being and freedom
Safety
Maslow's Hierarchy of Needs: 3rd level ____ needs Love, friendship
Social
List the five environmental forces that have an impact on an organization as well as its suppliers and customers. Provide examples of factors that might be examined as part of environmental scanning for each of these forces social , technological, economic, competitive, and regulatory.
Social: Cultural changes Technological: New technologies Economic: Consumer income Competitive: Whatever your competitors are doing Regulatory: Following the rules
Identify and describe the four factors in a SWOT analysis and give examples for Ben & Jerry's Ice Cream that help identify the critical strategy-related factors that could impact the firm.
Strength: Well known brand name Weakness: Internal weakness, need for experienced managers Seasonal product? Opportunities: Growing demand for quality ice cream in overseas market Threats: Consumer concern with sugary and fatty desserts
4 P's: Promotion ____, personal selling, sales promotion, public relations, direct _____
advertising marketing
Explain the actions and considerations that relate to the five stages of the consumer purchase decision process: Stage 3: ___ evaluation Review objective and subjective attributes from consideration set
alternative
What is the definition of marketing according to the text? How does this differ from your previous notion of marketing before beginning this course? 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. The process of _____, _____, _____, and _____ offerings that have value for customers, clients, partners, and _____ at large
creating communicating delivering and exchanging society
Explain the difference between a market and a target market. Provide a specific example of each: A market is people with both the ____ and ____ to buy a specific offering Example: Tablet device market
desire ability
A campus service organization annually raises money through the sale of T-shirts. How could it use market segmentation to increase sales of the shirts? Be sure to include a definition of market segmentation in your answer. Market segmentation definition: the relatively ______ groups of prospective buyers that have common needs and will ______ ______ to a marketing action. Current students vs local residents Students go to bookstore, flyers in dorms. Locals go to mall, ad in local newspaper flyers at grocery story
homogeneous respond similarly
Why is the family life cycle important to marketing? Each phase brings _____ purchasing behaviors
identifiable
Explain the actions and considerations that relate to the five stages of the consumer purchase decision process: Stage 2: ____ search check internal and external sources
information
Identify and describe the three steps of the planning phase of the strategic marketing process: Step 2: ____-product focus and _____ setting determine which products will be directed toward which customer Includes segmentation
market goal
Explain the difference between a market and a target market. Provide a specific example of each: A target market is one or more specific groups of potential consumers toward which an organization directs its ______ _______ Example: College students who want tablet for textbooks
market program
Identify and describe the three steps of the planning phase of the strategic marketing process: Step 3: ____ program involves developing the program's marketing mix (4 P's) and its _____
marketing budget
4 P's: Product Features brand ____, ___, service, and warranty
name, packing
4 P's: Place _____, channels, coverage, _____, and stock level
outlets transportation
Explain the actions and considerations that relate to the five stages of the consumer purchase decision process: Stage 5: ___ evaluation evaluate the product or service in terms of expectations
postpurchase
4 P's: Price list ___, _____, allowances, credit terms, and payment period
price, discounts
Explain the actions and considerations that relate to the five stages of the consumer purchase decision process: Stage 1: ____ recognition Decide you need to buy a product or service
problem
Explain the actions and considerations that relate to the five stages of the consumer purchase decision process: Stage 4: ____ decision Make a decision after juding alternatives
purchase
Maslow's Hierarchy of Needs: 5th level ______ actualization needs Personal fulfillment
self
5 Major environmental forces
social, technological, economic, competitive, and regulatory
