MARK 3336 EXAM 1

Which of the following is a market-oriented mission statement? A) "We empower customers to achieve their dreams." B) "We sell jumbo burgers." C) "We are an online library." D) "We are a low-cost airline." E) "We make porcelain figurines."

"We empower customers to achieve their dreams."

Which of the following is NOT a market-oriented business definition? A) "We empower customers to realize their dreams." B) "We make high-quality consumer food products." C) "We sell success and status." D) "We create the Hilton experience." E) "We bring innovation to every home."

"We make high-quality consumer food products."

Which of the following is NOT an example of product-oriented mission statements? A) "We are an online library." B) "We run theme parks." C) "We sell athletic shoes." D) "We sell memorable experiences." E) "We rent hotel rooms."

"We sell memorable experiences."

Which of the following customer questions is answered by a company's value proposition? A) "Why should I buy your brand rather than a competitor's?" B) "What is your company's estimated customer equity?" C) "What are the costs involved in the production of your brand?" D) "What is the budget allocated by your company for research and development?" E) "What is the financial stability of your company?"

"Why should I buy your brand rather than a competitor's?"

________ is the process of developing and maintaining a crucial fit between the organization's goals and capabilities and its changing marketing opportunities. A) Benchmarking B) SWOT analysis C) Market segmentation D) Strategic planning E) Diversification

Strategic planning

________ are human needs that are shaped by culture and individual personality. A) Necessities B) Wants C) Demands D) Values E) Exchanges

Wants

During portfolio analysis, a company ________ after identifying the key businesses that make up the company. A) formulates a short-term marketing plan B) assesses the attractiveness of its various SBUs C) assesses its strengths and weaknesses D) performs a SWOT analysis E) assesses the effectiveness of its various channel intermediaries

assesses the attractiveness of its various SBUs

According to the five-step model of the marketing process, which of the following is the final step in creating value for customers? A) designing a customer-driven marketing strategy B) understanding the marketplace and customer needs C) constructing an integrated marketing program that delivers superior value D) building profitable relationships and creating customer delight E) capturing value from customers to create profit and customer equity

building profitable relationships and creating customer delight

The collection of businesses and products that make up a company is called its ________. A) strategic business unit B) supply chain C) strategic plan D) business portfolio E) internal value chain

business portfolio

The major activity in strategic planning is ________, whereby management evaluates the products and businesses that make up the company. A) SWOT analysis B) benchmarking C) business portfolio analysis D) breakeven analysis E) prospecting

business portfolio analysis

In the context of customer relationship groups, a potentially profitable and short-term customer is referred to as a ________. A) true friend B) butterfly C) stranger D) barnacle E) market maven

butterfly

When customers don't know what they want or don't even know what's possible, the most effective marketing strategy is ________ marketing. A) customer-driven B) customer-driving C) societal D) ambush E) affinity

customer-driving

The marketing world is most likely embracing ________ because consumers wield greater power nowadays with a wealth of platforms for airing and sharing their brand views with other consumers. A) partner relationship management B) supply chain management C) customer-managed relationships D) market segmentation E) consumer ethnocentrism

customer-managed relationships

FedEx offers its customers fast and reliable package delivery. When FedEx customers weigh these benefits against the monetary cost of using FedEx along with any other costs of using the service, they are acting upon ________. A) brand loyalty B) customer equity C) customer-perceived value D) customer lifetime value E) a societal marketing campaign

customer-perceived value

Which of the following is NOT a step in the strategic planning process? A) defining the company mission B) setting company objectives and goals C) designing the business portfolio D) planning marketing and other functional strategies E) evaluating members of the company's value chain

evaluating members of the company's value chain

A(n) ________ is the set of actual and potential buyers of a product. A) market B) control group C) subsidiary D) focus group E) audience

market

Consumer research, product development, communication, distribution, pricing, and service are all core ________ activities. A) positioning B) marketing C) outsourcing D) production E) logistics

marketing

The art and science of choosing target markets and building profitable relationships with them is called ________. A) marketing management B) positioning C) marketing mix D) market offering E) differentiation

marketing

Greater consumer control means that companies can no longer rely on ________. A) promoting brand-consumer interaction B) marketing by intrusion C) creating market offerings and messages that involve consumers D) developing marketing concepts with an outside-in perspective E) marketing by attraction

marketing by intrusion

The set of marketing tools a firm uses to implement its marketing strategy is called the ________. A) promotion mix B) product mix C) marketing mix D) market offering E) marketing effort

marketing mix

Which of the following terms refers to sellers being preoccupied with their own products and losing sight of underlying consumer needs? A) vendor lock-in B) social loafing C) value proposition D) marketing myopia E) conspicuous consumption

marketing myopia

Mission statements should be ________. A) meaningful and specific yet motivating B) technology oriented C) written solely for public relations purposes D) focused on increasing sales or profits E) strictly product oriented

meaningful and specific yet motivating

A ________ documents an organization's purpose—what it wants to accomplish in the larger environment. A) vision statement B) mission statement C) business portfolio D) value proposition E) product strategy

mission statement

A church targeting different demographic groups to increase attendance is an example of ________. A) affinity marketing B) not-for-profit marketing C) societal marketing D) evangelism marketing E) affiliate marketing

not-for-profit marketing

The marketing concept that starts with a well-defined market, focuses on customer needs, and integrates all the marketing activities that affect customers takes a(n) ________. A) outside-in perspective B) product-centered make-and-sell philosophy C) inside-out perspective D) consumer-generated marketing approach E) telling-and-selling approach

outside-in perspective

It is most accurate to say that when customers purchase products they act on ________ as they judge values and costs. A) objective value B) perceived value C) customer lifetime value D) company image E) society's interests

perceived value

Which of the following statements is true about the recession that began in 2008? A) The economic crisis caused a short-term change in consumers' spending habits. B) The average home value increased after the stock market plunge. C) Decreasing energy prices provided consumers with unexpected savings. D) Consumers brought spending more in line with their incomes. E) Consumers quickly regained confidence in the economy.

Consumers brought spending more in line with their incomes.

________ is one of the best ways to increase share of customer. A) Targeting new customers B) Using bait and switch C) Cross-selling D) Divesting E) Partnership marketing

Cross-selling

________ is determined by a customer's evaluation of the benefits and costs of a market offering relative to those of competing offers. A) Customer-perceived value B) Customer lifetime value C) Share of customer D) Customer-managed relationship E) Brand value proposition

Customer-perceived value

Which of the following is a characteristic of customer-driven marketing? A) Companies understand customer needs even better than customers themselves do. B) Customers are unaware of their needs. C) Products are created that meet both existing and latent needs, now and in the future. D) Customers know what they want. E) Customers don't know what is possible.

Customers know what they want.

________ is the act of obtaining a desired object from someone by offering something in return. A) Valuation B) Exchange C) Market offering D) Confiscation E) Donation

Exchange

Which of the following is true with regard to strategic planning? A) At the corporate level, the company starts the strategic planning process by determining what portfolio of businesses and products is best for the company. B) A strategic plan deals with a company's short-term goals. C) Finding the game plan for long-run survival and growth is the focus of strategic planning. D) The strategic plan is a statement of an organization's purpose. E) Strategic planning involves identifying segments of consumers with identical preferences.

Finding the game plan for long-run survival and growth is the focus of strategic planning.

Which of the following statements is true of the selling concept? A) It requires minimum promotion efforts. B) It creates long-term, profitable customer relationships. C) It takes an outside-in perspective. D) It is typically practiced with unsought goods. E) It follows the customer-centered sense-and-respond philosophy.

It is typically practiced with unsought goods.

Which of the following statements is true of the production concept? A) It considers customer focus and value to be the paths to sales and profits. B) It follows the customer-centered sense-and-respond philosophy. C) It takes an outside-in perspective. D) It calls for sustainable marketing. E) It leads to companies focusing too narrowly on their own operations.

It leads to companies focusing too narrowly on their own operations.

Which of the following statements is true about creating customer loyalty and retention? A) Losing a customer means losing the entire stream of purchases that the customer would make over a lifetime of patronage. B) Customer delight creates a rational preference and not an emotional relationship with the brand. C) The aim of customer relationship management is to focus solely on customer delight. D) Losing a customer hardly makes a difference to a company's sales. E) The aim of customer relationship management is to focus solely on customer satisfaction.

Losing a customer means losing the entire stream of purchases that the customer would make over a lifetime of patronage.

Apart from retaining good customers, most marketers want to constantly increase their "share of customer." What does this mean in marketing terms? A) Marketers want to increase their market share. B) Marketers want to increase the share they get of the customer's purchasing in their product categories. C) Marketers want to diversify their operations and customize their products to cater to the entire market. D) Marketers want to continuously increase their customers' levels of satisfaction. E) Marketers want to turn satisfied customers into delighted customers.

Marketers want to increase the share they get of the customer's purchasing in their product categories.

________ is defined as a social and managerial process by which individuals and organizations obtain what they need and want through value creation and exchange. A) Research B) Innovation C) Manufacturing D) Marketing E) Production

Marketing

Which of the following is NOT an accurate description of modern marketing? A) Marketing is the creation of value for customers. B) Marketing involves managing profitable customer relationships. C) Marketing emphasizes selling and advertising exclusively. D) Marketing involves satisfying customers' needs. E) Marketing is building value-laden exchange relationships with customers.

Marketing emphasizes selling and advertising exclusively.

Which of the following is the most likely result of a marketing strategy that attempts to serve all potential customers? A) All customers will be delighted. B) Customer-perceived value will increase. C) All customers will directly turn into customer evangelists. D) Not all customers will be satisfied. E) Customers will not show interest in any other company's products.

Not all customers will be satisfied.

________ refers to socially and environmentally responsible marketing that meets the needs of consumers and businesses while also preserving or enhancing the ability of future generations to meet their needs. A) Ambush marketing B) Evangelism marketing C) Sustainable marketing D) Database marketing E) Affinity marketing

Sustainable marketing

Which of the following statements about the Internet is most accurate? A) Companies are relying less on the Internet to build relationships with customers and marketing partners. B) After the dot-com meltdown of 2000, fewer consumers are using the Internet to buy products and services. C) The Internet makes it easy for consumers to view, respond to, and create marketing content. D) Consumer e-commerce looks promising, but business-to-business e-commerce is declining. E) The digital shift means that marketers can always control conversations about their brands.

The Internet makes it easy for consumers to view, respond to, and create marketing content.

A gym equipment manufacturer encourages customers to become members of the firm's Web site. Membership provides customers with exercise tips as well as discounts on gym equipment and workout apparel. This is an example of ________. A) a frequency marketing program B) a basic customer relationship C) a club marketing program D) the selling concept E) consumer-generated marketing

a club marketing program

A room upgrade offered by a hotel to a guest who often stays in the hotel is an example of ________. A) a frequency marketing program B) a basic relationship C) a club marketing program D) partner relationship management E) sustainable marketing

a frequency marketing program

A financial services firm has several loyal customers who conduct business with them exclusively. However, the company has noticed that this customer group is the least profitable for the company, and in some cases, it increases their losses when engaging in business with this group. Which of the following customer groups is being referred to in this scenario? A) butterflies B) true friends C) strangers D) barnacles E) cash cows

barnacles

Hank is an assistant marketing director for a firm in a market with many low-margin customers. What type of relationship with these customers would be the most profitable for him? A) full partnerships B) basic relationships C) causal relationships D) club marketing programs E) inverse relationships

basic relationships

Mission statements should ________ and be defined in terms of ________. A) be technology oriented; meeting the self-actualization needs of customers B) be product oriented; satisfying the esteem needs of customers C) embody the company's short-term plans; current opportunities D) be market oriented; satisfying basic customer needs E) address sales and profits; the net return on investments

be market oriented; satisfying basic customer needs

At Gina's retail stores, the posted policy reads, "Without our customers, we don't exist." Gina and her staff aim to delight each customer, and they are quick to offer discounts or extra services whenever a customer is anything less than satisfied. Gina and her staff strive to make every customer a repeat customer. It is most accurate to say that instead of focusing on each individual transaction, Gina and her staff put a priority on ________. A) managing partner relationships B) selling new products C) attracting "butterflies" D) converting "barnacles" to "strangers" E) capturing customer lifetime value

capturing customer lifetime value

The final step in the marketing process is ________. A) capturing value from customers B) creating customer delight C) creating customer lifetime value D) understanding the marketplace E) designing a customer-driven marketing strategy

capturing value from customers

Which of the following statements reflects the marketing concept? A) focusing on making continuous product improvements B) undertaking a large-scale selling and promotion effort C) emphasizing an inside-out perspective D) considering customer focus and value as the paths to sales and profits E) focusing on a product-centered make-and-sell philosophy

considering customer focus and value as the paths to sales and profits

The societal marketing concept seeks to establish a balance between ________. A) customer lifetime value and customer equity B) an inside-out perspective and an outside-in perspective C) consumer short-run wants and consumer long-run welfare D) marketing mixes and market offerings E) customer-driven marketing and customer-driving marketing

consumer short-run wants and consumer long-run welfare

Elisandra, a marketing manager at a regional chain restaurant, has decided to organize a contest calling for customers to create commercials for the restaurant. Winning entries will be posted on the organization's home page. Elisandra's plan is an example of ________. A) consumer-generated marketing B) partner relationship management C) customer lifetime value D) community development around a brand E) customer divestment

consumer-generated marketing

Kao Corp., a deodorant-manufacturer, invited teenage girls to make an ad that would encourage other girls to buy the product. This program is an example of ________. A) societal marketing B) the production concept C) the selling concept D) partner relationship management E) consumer-generated marketing

consumer-generated marketing

Which of the following refers to the total combined customer lifetime value of all of the company's current and potential customers? A) share of customer B) marketing mix C) customer equity D) target market E) customer-perceived value

customer equity

Which of the following terms refer to customers who make repeat purchases and tell others about their positive experiences with a product or service? A) barnacles B) customer evangelists C) butterflies D) surrogate customers E) market mavens

customer evangelists

The primary key to delivering customer satisfaction is to match product performance with ________. A) the competitor products' performance B) competitive prices C) aggressive advertising D) limited customer services E) customer expectations

customer expectations

"Losing a customer once means losing the entire stream of possible purchases that the customer would make over an extended period of patronage." The above statement specifically indicates loss in terms of ________. A) customer-perceived value B) marketing offerings C) partner relationship management D) customer lifetime value E) value proposition

customer lifetime value

Building and maintaining profitable customer relationships by delivering superior customer value and satisfaction is called ________. A) customer lifetime value B) customer-perceived value C) customer relationship management D) partner relationship management E) customer equity

customer relationship management

Which of the following marketing strategies should marketing managers focus on to manage detailed information about individual customers and carefully manage customer touchpoints to maximize customer loyalty? A) customer divestment B) customer-managed relationships C) the societal marketing concept D) partner relationship management E) customer relationship management

customer relationship management

Sally recently purchased Brand X lotion. In comparing her perception of how the lotion made her skin feel and look to her expectations about Brand X lotion, Sally was measuring her level of ________. A) share of customer B) customer satisfaction C) customer equity D) customer-perceived value E) customer lifetime value

customer satisfaction

An organization that understands and anticipates customer needs even better than customers themselves do and creates products and services to meet current and future needs is said to practice ________ marketing. A) customer-driven B) customer-driving C) affinity D) societal E) ambush

customer-driving

Which of the following is the first step in strategic planning? A) setting short-term goals B) developing the business portfolio C) defining the organizational mission D) formulating the key marketing strategies E) identifying the organization's weaknesses and the threats it faces

defining the organizational mission

Greg Williams now has the buying power to purchase the desktop computer that he has wanted for the last six months. Greg's want now has become a(n) ________. A) need B) necessity C) demand D) exchange E) transaction

demand

When backed by buying power, wants become ________. A) social needs B) demands C) physical needs D) self-esteem needs E) exchanges

demands

Which of the following is the first step of business portfolio planning? A) shaping the future portfolio by developing strategies for growth and downsizing B) determining which businesses should receive more, less, or no investment C) identifying internal strengths and weaknesses D) identifying future opportunities E) determining short-term goals

determining which businesses should receive more, less, or no investment

When marketers set low expectations for a market offering, they run the risk of ________. A) disappointing loyal customers B) having to use an outside-in rather than an inside-out perspective C) failing to attract enough customers D) failing to understand their customers' needs E) incorrectly identifying a target market

failing to attract enough customers

Which of the following is the aim of the product concept? A) improve the marketing of a firm's best products B) market only those products with high customer appeal C) focus on the target market and make products that meet those customers' demands D) focus on making continuous product improvements E) ensure that product promotion has the highest priority

focus on making continuous product improvements

In which of the following situations has a company most actively embraced customer-managed relationships? A) American Airlines awards frequent flyer points to returning customers. B) Paige Premium Denim jeans provide a superior quality and a perfect fit. C) iRobot invites enthusiastic Roomba owners to develop and share their own uses for the company's robotic vacuum cleaner. D) Best Buy distinguishes between its best customers and its less profitable customers, stocking merchandise to appeal to each group. E) Toyota develops a marketing presence on social networks and other online communities.

iRobot invites enthusiastic Roomba owners to develop and share their own uses for the company's robotic vacuum cleaner.

A firm that uses the selling concept takes a(n) ________ approach. A) outside-in B) niche marketing C) inside-out D) societal marketing E) customer-driven

inside-out

Which of the following strategies would a company most likely use to increase customer satisfaction? A) decreasing the variety of offered services B) divesting C) lowering prices D) "firing" unprofitable customers E) limiting customer experiences with a brand

lowering prices

According to management guru Peter Drucker, "The aim of marketing is to ________." A) maximize profits of the company B) emphasize customer wants and not customer needs C) make selling unnecessary D) fulfill unrealistic customer expectations E) sell products

make selling unnecessary

A ________ is some combination of products, services, information, or experiences provided to consumers to satisfy a need or want. A) market offering B) value proposition C) brand positioning D) market segment E) market mix

market offering

An organic farmer has identified three distinct groups that might be interested in his products: vegetarians, health-conscious individuals, and people identified as trendsetters who try out new products in the market before others. These three groups are examples of ________. A) marketing mixes B) market segments C) value propositions D) market offerings E) marketing intermediaries

market segments

Railroads were once operated based on the thinking that users wanted trains that would offer the most in quality, performance, and innovative features. The railroad managing companies overlooked the fact that there could be other modes of transportation. This reflects the ________ concept. A) product B) production C) selling D) marketing E) societal marketing

product

The ________ concept is aligned with the philosophy of continuous product improvement and the belief that customers will choose products that offer the most in quality, performance, and innovative features. A) product B) production C) societal marketing D) marketing E) selling

product

Which of the following marketing management concepts is most likely to lead to marketing myopia? A) customer-driven marketing concept B) customer-driving marketing concept C) societal marketing concept D) marketing concept E) product concept

product concept

Henry Ford's philosophy was to perfect the Model-T so that its cost could be reduced further for increased consumer affordability. This reflects the ________ concept. A) product B) production C) selling D) marketing E) societal marketing

production

Which of the following marketing management orientations focuses primarily on improving efficiencies along the supply chain? A) production concept B) product concept C) selling concept D) marketing concept E) societal marketing concept

production concept

Companies that define their missions in terms of product or technology are considered myopic primarily because ________. A) products and technologies result in low returns on investment B) consumer preferences with regard to products and technologies are difficult to predict C) consumer preferences for different product categories vary from time to time D) products and technologies eventually become outdated E) most consumers are not comfortable using sophisticated technologies during the buying process

products and technologies eventually become outdated

As part of the rapid globalization of today's economy, companies are selling more domestically produced goods in international markets and ________. A) taking a local view of their industry B) purchasing more supplies abroad C) reducing competition within their industry D) downplaying concerns for social responsibility E) competing solely in traditional marketplaces

purchasing more supplies abroad

Jolene's firm markets preplanning services for a mortician. She finds that most of her target market avoids discussing future funeral needs. She convinces people to invest in the firm's services through her large-scale promotional efforts. Jolene's firm most likely practices the ________. A) production concept B) marketing concept C) selling concept D) product concept E) societal marketing concept

selling concept

Keith, a clothing store owner, offers product suggestions to customers based on their current purchases. Which of the following is Keith targeting to increase? A) shared value B) share of customer C) social responsibility D) customer-generated marketing E) customer loyalty

share of customer

The portion of the customer's purchasing that a company gets in its product categories is known as ________. A) customer-perceived value B) share of customer C) customer insight D) consumption function E) induced consumption

share of customer

Your state's department of education has budgeted a significant amount of money for a radio, print, television, and online advertising campaign emphasizing the long-term benefits, both educationally and professionally, of reading every day. This is an example of a(n) ________ campaign. A) ambush marketing B) social marketing C) inbound marketing D) consumer-generated marketing E) affiliate marketing

social marketing

Government agencies design ________ to encourage energy conservation and discourage smoking, excessive drinking, and drug use. A) club marketing programs B) social marketing campaigns C) consumer-generated marketing campaigns D) ambush marketing campaigns E) frequency marketing programs

social marketing campaigns

Iceco Inc., an ice-cream manufacturing company, encourages all stakeholders, including the top management and employees at all levels in their stores, to consider individual and community welfare in their day-to-day decisions. This action undertaken by Iceco reflects ________. A) environmentalism B) social responsibility C) the selling concept D) partner relationship management E) marketing myopia

social responsibility

Some fast-food restaurants offer tasty and convenient food at affordable prices, but in doing so they contribute to a national obesity epidemic and environmental problems. These fast-food restaurants overlook the ________ philosophy. A) marketing concept B) product concept C) production concept D) societal marketing concept E) selling concept

societal marketing concept

A mission statement serves as a ________. A) statement of the organization's net profits B) plan for short-term sustainability C) statement of the organization's purpose D) statement of the organization's current liabilities E) repatriation plan for the organization's highly-skilled employees

statement of the organization's purpose

Most standard portfolio analysis methods evaluate SBUs on the ________. A) potential for niche or global marketing B) degree of product differentiation C) strength of the market or industry position D) accessibility to rural markets E) number of successful business acquisitions

strength of the market or industry position

Through ________, companies today are strengthening their connections with all partners, from providers of raw materials and components to those involved in the delivery of final goods and services. A) supply chain management B) direct marketing C) customer relationship marketing D) customized marketing E) inventory management

supply chain management

Cathy's Clothes is a small yet successful retail chain that sells women's clothing and accessories with a focus on buyers who have relatively modest means. For this specific purpose, the firm has rolled out several marketing initiatives aimed at women of a specific demographic. This is an example of ________. A) ambush marketing B) social marketing C) societal marketing D) target marketing E) cause marketing

target marketing

Selecting which segments of a population to serve is called ________. A) market segmentation B) positioning C) customization D) target marketing E) differentiation

target marketing

Which of the following best describes a strategic business unit (SBU)? A) the internal value chain of a company B) the supply chain of a company C) the key businesses that make up a company D) the key channel intermediaries of a service company E) the key competitors of a company

the key businesses that make up a company

Which of the following follows a customer-centered "sense-and-respond" philosophy rather than a product-centered "make-and-sell" philosophy? A) market segmentation B) the production concept C) the marketing concept D) the inside-out perspective E) marketing myopia

the marketing concept

Which of the following marketing orientations holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do? A) the product concept B) the production concept C) the selling concept D) the marketing concept E) the societal marketing concept

the marketing concept

Which of the following marketing orientations calls for aggressive promotional efforts and focuses on creating transactions rather than long-term customer relationships? A) the marketing concept B) the production concept C) the product concept D) the selling concept E) the societal marketing concept

the selling concept

Customers can be classified into four relationship groups based on their profitability and projected loyalty. Which customer type is associated with high profitability and long-term loyalty? A) barnacles B) strangers C) butterflies D) true friends E) cash cows

true friends

According to the five-step model of the marketing process, a company should ________ before designing a customer-driven marketing strategy. A) determine how to deliver superior value to customers B) build profitable relationships with customers C) use customer relationship management to create full partnerships with key customers D) understand the marketplace and customer needs and wants E) construct an integrated marketing program

understand the marketplace and customer needs and wants

Following the change in consumer values and consumption patterns after the Great Recession, marketers have changed their marketing strategies to emphasize the ________ of their products. A) image B) value C) durability D) safety E) uniqueness

value

Which of the following refers to a set of benefits that a company promises to deliver to customers to satisfy their needs? A) customer lock-in B) a cartel C) marketing mix D) value proposition E) market segmentation

value proposition

The selling concept is typically practiced ________. A) to balance consumers' wants, company's requirements, and the society's long-run interests B) with products that offer the most in terms of quality, performance, and innovative features C) when the company focuses on building long-term customer relationships D) with goods that buyers normally do not think of buying E) by customer-driven companies

with goods that buyers normally do not think of buying