Marketing Class Chapters 1-13

Of the five steps to the strategic marketing planning process, which step usually comes first?

1) Define the business mission statement 2) SWOT (end of planning phase) 3) Marketing strategy (implementation phase) 4) evaluate using metrics (control phase)

Which of the following sequences correctly lists the least risky to the riskiest global entry strategy? A) exporting, strategic alliance, direct investment B) exporting, joint venture, franchising C) joint venture, strategic alliance, direct investment D) exporting, direct investment, joint venture E) franchising, joint venture, exporting

A) exporting, strategic alliance, direct investment

The Segmentation, Targeting and Positioning Process is not always linear, but the final stage is to A) identify and develop a positioning strategy. B) select a target market. C) describe the segments. D) establish the strategy or objectives. E) evaluate the segment attractiveness.

A) identify and develop a positioning strategy. The full sequence is to establish the strategy or objectives, describe the segments, evaluate segment attractiveness, select a target market and identify and develop a positioning strategy.

George heads the small bakery within a large-volume supercenter. However, the store manager thinks they should be offering decorated cakes in addition to coffeecakes, breads and pastries. Before any purchase orders are completed, George is asked if his bakery staff can handle the workload, and what equipment and supplies they may need to produce this new item. In this case, George is the ________ in the buying process. A) influencer B) initiator C) purchaser D) decider E) gatekeeper

A) infuencer

The global entry strategy of ________refers to collaborative relationships between independent firms, although it does not create an equity partnership. A) strategic alliance B) exporting C) franchising D) joint ventures E) direct investment

A) strategic allience

According to the American Marketing Association, the specific values to which marketers should aspire include honesty, responsibility, fairness, respect, openness and

citizenship

________ segmentation groups consumers according to easily measured, objective characteristics and is the most common means to define market segments. A) Behavioral B) Demographic C) Psychographic D) Benefits E) Geographic

B) Demographic

______ is the most widely used measure of market potential of an economy. A) GNI B) GDP C) PPP D) CPI E) MSR

B) GDP

When global marketers discusses a society's reliance on orderliness, consistency and structure, they are referring to Hofstede's cultural dimension of A) power distance. B) uncertainty avoidance. C) individualism. D) masculinity. E) time orientation.

B) Uncertainty avoidance

The major challenge in developing a global communication strategy is A) finding countries that speak the marketer's language so the communication will be clear. B) identifying the elements that need to be adapted to be effective in the global marketplace. C) making sure the firm's logo and brands are not copied by competitors. D) finding good translators who can translate current advertising into other languages precisely, with no changes. E) limiting the number of middlemen which are involved in the process.

B) identifying the elements that need to be adapted to be effective in the global marketplace.

Once a marketer has selected potential market segments for a product or service, he or she can evaluate each segment to determine if customers in the segment will react similarly and positively to the firm's offering. In doing so, the marketer is evaluating if the segment is A) substantial. B) responsive. C) profitable. D) reachable. E) identifiable. Feedback:

B) responsive

Marketers like Benetton which feature attractive and hip young people wearing its apparel want their ads to appeal to one's ________, suggesting to consumers "I'm like them, so I should buy their products." A) self-awareness B) self-concept C) loyalty D) life cycle E) insecurities

B) self concept

________ refers to the processes by which goods, services, capital, people, information, and ideas flow across national borders. A) International marketing B) The international marketing mix C) Globalization D) Transnational shipping E) Offshoring

C) Globalization

Paul bought a laptop computer for personal use—mainly gaming—and another one for use in his consulting business. How would you classify his purchases? A) Both were B2C purchases. B) Both were B2B purchases. C) The first was a B2C purchase, and the second was B2B. D) The first was a B2B purchase, and the second was B2C. E) The first was a C2C purchase, and the second was B2C.

C) The first was a B2C purchase, and the second was B2B.

Firms using a(n) _______ targeting strategy target several market segments with a DIFFERENT offering for each. A) one-to-one B) mass marketing C) differentiated D) undifferentiated E) micromarketing

C) differentiated

Eduardo is working on creating a marketing mix for his firm's business-to-business products, and he is looking at government action. He is concerned that some foreign governments may place limits on the quantity of his products that can be imported. What kind of government action is Eduardo worried about? A) tariffs B) exchange controls C) quotas D) trade agreements E) bond issuance

C) quotas

For which of the following buying situations is the buying decision most likely to be quite simple? A) a new buy B) a modified rebuy C) a straight rebuy D) either a new buy or a modified rebuy E) a buy that involves an RFP

C) straingt rebuy

_______ is the practice of marketing two brands together on the same package, promotion or store.

Co-branding

________ refer(s) to the actions of a firm to address a wide range of social, environmental and ethical interactions with its community. Though somewhat controversial, these actions are significant in that the company undertakes them voluntarily, and the firm realizes that these actions can be profitable, too.

Corporate social responsibility

Based on predicted growth rates, which of the following countries is expected to become the world's fifth largest economy within a few years? A) Russia B) India C) China D) Brazil E) Canada

D) Brazil

Once segmentation and targeting have been completed, the marketer turns to ________, often using a perceptual map to display graphically the customers' perceptions of the product and of competitors' products. A) validating B) displaying C) branding D) positioning E) repositioning

D) Positioning

Business-to-business marketing refers to selling goods or services to all of the following EXCEPT A) manufacturers. B) the federal government. C) institutions, like hospitals. D) consumers. E) retailers.

D) consumer NOTE: BUSINESS TO BUSINESS (B2B) BUSINESS TO CONSUMER (b2c)

When selecting a target market, a marketer should A) examine the competitors' annual reports to determine their objectives. B) be sure to comply with all federal and state targeting regulations. C) evaluate the attractiveness of each potential new customer. D) match the firm's competency with a market segment's attractiveness. E) make sure the product meets the safety standards of the target market.

D) match the firm's competency with a market segment's attractiveness.

For marketers, a value proposition is understood to be A) the firm benefits to be received from a product or service category. B) the customer needs in a particular product category. C) additional needs filled by products which are as yet unknown to consumers. D) the customer benefits to be received from a product or service. E) the overlap of the target segment and competitive offerings

D) the customer benefits to be received from a product or service.

Firms use economic analysis to help determine the relative attractiveness of various marketing opportunities. These analyses include all the following EXCEPT evaluating A) the general economic environment. B) market size. C) population growth rate. D) working capital. E) real income.

D) working capital

Which of the following would NOT be used in calculating the profitability of a segment? A) fixed costs B) segment size C) segment adoption percentage D) profit margin percentage E) variable costs

E) Variable cost

Best Years Travel targeted consumers living in New York City who were over 50 years of age. Best Years Travel was using ________ segmentation. A) benefit B) self-actualization C) psychographic D) loyalty E) geodemographic

E) Geodemographic segmentation uses both location (geography: New York City) and demographics (age: over 50) to segment target markets.

In comparison to the marketing mix for domestic firms, the global marketing mix A) excludes Place because the mix is global by definition. B) excludes Price because of the difference in currencies and exchange rates. C) excludes Promotion because of the cultural difference between the domestic and foreign markets. D) excludes Product because the product rarely needs to be adjusted for differences between countries. E) includes all of the Four Ps—Product, Price, Place and Promotion.

E) includes all of the Four Ps—Product, Price, Place and Promotion.

What is the best tactic to avoid personal ethical conflicts or entering into unethical situations with potentially dire consequences for one's firm?

Ethically align personal and corporate goals.

How should marketers introduce ethics into the decision making process?

Ethics can be first introduced during the planning stage by including ethical statements in the firm's mission or vision statements, and then must be included throughout the process.

When we discuss a firm's primary strengths and how these satisfy consumer needs, this is referring to ________ in the consumer's immediate environment.

company capabilities

Consumers' privacy concerns led to enactment of the

Federal Trade Commission's Do Not Call Registry. The Do Not Call Registry was created in response to consumers' concerns about intrusive telemarketing calls. The other items are pieces of legislation unrelated to privacy.

Compared to other groups, members of the __________ generational cohort are more likely to marry and buy homes later in life, are more cynical, are shopping savvy and are considered to be astute consumers.

Generation X

People who organize, operate and assume the risk of a new business venture are called

entrepreneurs.

When marketers execute pricing, promotion, place and product strategies, they are in the ________ phase of marketing planning.

Implementation

The marketing of services differs from product marketing because services are

Markering of services are intangible, inseparable, heterogeneous and perishable. Services are different from products in that they are intangible (cannot be touched, tasted, or seen), inseparable (produced and consumed at the same time), heterogeneous (subject to variation due to human factors), and perishable (cannot be produced in advance and stockpiled).

Which of the following is one of the four major growth strategies marketers typically pursue?

Market development The four major growth strategies available to marketers include market penetration, market development, diversification, and product development.

A document that analyzes the current marketing situation, opportunities and threats for the firm, marketing objectives in terms of the four Ps, action plans, and pro forma financial statements is known as

Marketing plan

The goal of ________ is to inform, persuade or remind potential buyers about a good or service to influence their opinions and elicit a response.

Promotion

________ are intangible customer benefits that are produced by people or machines, and cannot be separated from the producer.

Services Goods, services, and ideas can be marketed. Unlike goods, services are intangible customer benefits that are produced by people or machines and cannot be separated from the producer.

_______describes the steps that consumers go through before, during, and after making purchases.

The consumer decision process model 1. need recognition 2. information search 3. alternative evaluation 4. purchase 5. post purchase

Marketing firms become more value driven by focusing on four activities. Which of the following is NOT one of those activities?

They concentrate on making a profit above all else. Firms become value driven by focusing on four activities: sharing information about their customers and competitors, striving to balance their customers' benefits and costs, concentrating on building relationships with customers, and taking advantage of new technologies such as social and mobile media.

Which of the following firms is most likely to experience heterogeneity regarding its quality?

a fine dining restaurant A fine dining restaurant is very dependent upon the human element in creating its product and delivering its service.

What does the Ethical Decision-Making Metric (Exhibit 4.4) offer the marketer?

a framework for looking at multiple dimensions of an issue

Customers give up things they value—for example, money, information or time—to a firm in return for goods, services and ideas. This process is called

a marketing exchange.

Leslie is interested in purchasing a car, and visits Dale's Automotive, a local used-car lot. Dale locates what Leslie wants at a nearby dealership, but ultimately sells this car directly to Leslie. In this scenario, Dale's Automotive is

a reseller and a retailer. Resellers are marketing intermediaries that resell manufactured products without significantly altering their form. For example, wholesalers and distributors buy products from manufacturers and sell them to retailers, who sell them to the ultimate consumer.

Organizational culture reflects the values, traditions and customs that guide employee's behavior. In the context of the buying center, there are a number of recognized cultures of critical importance to B2B marketers. Which of the following is NOT one of these buying cultures? A) ethical B) autocratic C) democratic D) consensus E) consultative

a) Ethical

Which of the following includes the nonphysical aspects of a product, such as warranties and product support?

augmented product The associated services, also referred to as the augmented product, include the nonphysical aspects of the product, such as product warranties, financing, product support, and after-sale service.

If consumers think that the discount store with the lowest prices on food is going to have the lowest prices on all goods, the discount store has achieved a positive

brand association.

The value of a brand can be determined by looking at the set of assets and liabilities linked to a brand that add to or subtract from its value. The result of this calculation is

brand equity Brand equity is the set of assets and liabilities linked to a brand that add to or subtract from the value provided by the product or service. Brand Awareness measures how many consumers in a market are familiar with the brand. Brand loyalty occurs when consmer buys the same brand over many products Brand association is the mental link that consumer made between a brand and its key products attibutes brand extension is the use of the same brand name for new products being introduced

Kraft Macaroni and Cheese, a best-selling type of pasta and sauce mix, has introduced a new product, Kraft Macaroni and Cheese Topping, which is used on popcorn and other snack foods. This is an example of

brand extension. A brand extension refers to the use of the same brand name in a different product line. It is an increase in the product mix's breadth.

When one firm contracts with another to use a brand name, logo, symbol or character for a negotiated fee, this is known as

brand licensing.

Marketers would like to be in the consumer's ________ set for a purchase decision, but even more, they would like to be in the consumer's ________ set. A) global; preferred B) determinant; focused C) retrieval; evoked D) latent; active E) cognitive; behavioral

c) Retrieval, evoked A consumer's retrieval set is the group of brands or products a consumer can remember. A consumer's evoked set includes the brands or stores a consumer would consider when making a purchase decision.

The end of the B2B buying process does not end with the receipt of the purchased goods or services. Most companies will A) use reverse auctions to get rid of products they mistakenly purchased. B) evaluate organizational culture. C) assess performance of the selected vendor. D) return merchandise they did not use. E) attempt to renegotiate payment terms.

c) assess performance of the selected vendor.

Our likes and dislikes are reflected as our ________, which are learned and developed over time, but can also change abruptly. A) values B) perceptions C) attitudes D) heuristics E) beliefs

c) attitudes

Which of the following is NOT a step in the Ethical Decision-Making Framework? A) identify issues B) choose a course of action C) gather information and identify stakeholders D) brainstorm and evaluate alternatives E) consult appropriate regulatory officials

consult appropriate regulatory officials

The ________ is the center of all marketing efforts.

consumer

The zone of tolerance identifies

correlation between the price of a service and the satisfaction received from that service. =

__________ is the shared meanings, beliefs, morals, values, and customs of a group of people.

culture

The consumer decision process begins when

customers recognize that they have an unsatisfied need.

Marketers often use principles and theories from sociology and psychology to

decipher many consumer choices and develop basic strategies for dealing with their behavior.

Market research firms can provide information indicative of human population segments such as age, gender, race and income. This information can provide marketers with a "snapshot" of the typical consumer in a specific target market and are collectively referred to as

demographics.

With regard to service recovery, _____ fairness pertains to a customer's perception of the benefits he or she received compared with the costs.

distributive Distributive fairness pertains to a customer's perception of the benefits he or she received compared with the costs (inconvenience or loss).

Which type of buying center uses one person to make a decision, but solicits input from others before doing so? A) autocratic B) democratic C) consensus D) egalitarian E) consultative

e) consultative

Clayton is a customer service representative for a music supply store. When customers call the store to order products, Clayton is allowed to work directly with them to ensure they select the right product to meet their needs. Likewise, if the customers call back with issues regarding those products, Clayton is authorized to make decisions that will rectify the situation and satisfy the customer. This is an example of

empowering service providers.

According to your text, the most basic corporate social responsibility to employees is to

ensure a safe working environment. Your text asserts that the most basic corporate social responsibility to employees is to ensure a safe working environment, free of threats to their physical safety, health, or well-being.

Instead of having to choose between making a profit or doing good for society, companies can combine ________ and ________ to do both while building a solid corporate reputation.

ethics; corporate social responsibility social responsibility refers to the voluntary actions taken by a company to adress the ethical, social. and enviromental impacts of its business operations and the concerns of its stakeholdsers.

Susan is a marketing manager for a consumer products company. Before she can implement the marketing mix, she must begin identifying market segments that her company could pursue. In target marketing, Susan will

evaluate each potential segment's attractiveness.

Maslow's Hierarchy of Needs is a powerful tool for marketers to

explain different kinds of motives consumers have and use. People have several types of motives. One of the best known paradigms for explaining these motive types is Abraham Maslow's Hierarchy of Needs. Maslow categorized five groups of needs: physiological, safety, love, esteem and self-actualization.

The macroenvironment of a firm refers to _____ factors such as ________.

external; technological advances A firm's macroenvironment includes political/regulatory, cultural, demographic, economic, social, and technological factors

Customers seek benefits and will consider trade-offs among them, while also considering costs. In value-based marketing, the marketer must

find opportunities to meet as many needs as possible while also keeping costs down.

As a service industry, many hotels use satisfaction guarantees to overcome the problem of

inseparability. Services are inseparable, meaning they are produced and consumed at the same time. Consumers rarely have the opportunity to try the service before they purchase it. Satisfaction guarantees are one method of assuring customers they will receive good quality service.

What are the two basic brand ownership strategies?

manufacturer and retailer/store brands

The four Ps comprise the ________, which is the controllable set of activities that the firm uses to respond to the wants of its target markets.

marketing mix

The ________ specifies the marketing activities for a specific period of time

marketing plan The marketing plan is developed by firms to specify the marketing activities for a specific period of time. It also is broken down into various components—how the product or service will be conceived or designed, how much it should cost, where and how it will be promoted, and how it will get to the consumer.

Fredric has been assigned the task of assembling information to monitor whether the plans he implemented are achieving what they are supposed to. He will look at both performance and financial measures. Fredric will use a series of ________, which are measuring systems that quantify a trend, dynamic, or characteristic

metrics Metrics are used to explain why things happen and predict the future. They make it possible to compare efforts across regions, product lines, time and more. Effective metrics should be determined as part of the planning process, not an afterthought.

The B2B buying process is similar to the B2C process, though it differs in many ways. For example, the B2B equivalents of the Information Search and Alternative Evaluation steps of the B2C buying process are

more formal and structured. b2b BUYING PROCESS 1. need recognition 2. Product specification 3. request for proposol (RFP) 4. proposal analysis 5. order specificatin 6. vendor performance assessment using metrics

Peter could attend any of several universities. He has high grades and test scores and is a star athlete at his high school. He has been approached by recruiters from several schools, all of whom talk about opportunities in their athletic programs, the quality of their academics, and the potential for scholarships. Despite all this attention, Peter will only consider local universities because his girlfriend is still in high school. For his college choice, Peter is using a ________ rule. A) psychological risk B) compensatory decision C) noncompensatory decision D) decision heuristic E) reference group

noncompensatory decision regardless of the values of the other attributes.

For consumers, a functional need pertains to _____, while a psychological need is understood as _____.

performance of a product/service; associated personal gratification from a product/service

The final step of the consumer decision process is _______, which is of particular interest to marketers because it entails actual rather than potential customers.

postpurchase behavior

The ________ package is the one the consumer uses, while the ________ package is the wrapper or exterior carton that provides the UPC label.

primary; secondary

Although competitors can copy or match the goods and services a firm offers, the firm can still develop a sustainable competitive advantage through ________ if its products have high perceived value and effective branding or positioning.

product excellence

A firm's ______ represents the number of product lines offered, while its ______ equals the number of products within a product line.

product mix breadth; product line depth The product mix reflects the breadth and depth of the company's product lines. A firm's product mix breadth represents a count of the number of product lines offered by the firm. Product line depth, in contrast, equals the number of products within a product line.

Which of the following is a component of effective service recovery?

providing a fair solution Effective service recovery encompasses three components: (1) listening to the customers and involving them in the service recovery, (2) providing a fair solution, and (3) resolving the problem quickly.

Which of the following is NOT an important trend, as outlined in your text, that marketers must monitor in the macroenvironment? A) green marketing B) red/blue marketing in election years C) emphasis on thrift D) privacy concerns E) health and wellness concerns

red/blue marketing in election years

Consumer purchases may be affected by the social factor of ________ groups, which includes family, friends, coworkers or those we wish to emulate. a) demographic B) consumer C) cultural D) lifestyle E) reference

reference

Firms that focus on the lifetime profitability of their relationships with their customers as opposed to how much money they make in each transaction operate under a _______ orientation

relational

Which of the following is NOT one of the five dimensions used by consumers to determine overall service quality?

repeatability Consumers assess overall service quality based on assurance, reliability, empathy, responsiveness, and tangibles.

Firms can attempt to close a standards gap by

setting appropriate service standards and measuring service performance. The standards gap refers to the difference between the firm's perceptions of customers' expectations and the service standards it sets. Setting appropriate service standards and measuring service performance can reduce a standards gap.

they will spend a fair amount of time comparing alternatives, for most consumers, a laptop computer would be considered a(n)

shopping product Types of Products: Specialty Products: consumer shows strong prefference Shooping Products: consumers will spend a fair amount of time comparing alternatives Convenienve Products: consumer is not willing to spend any effort. Unsought Products: consumer do not think of buy it or dont know about them.

Employees, customers, the marketplace and society at large are all considered part of a firm's ________, and are affected by its level of corporate social responsibility.

stakeholders

Marketers must consider the political and regulatory environment, which may have a profound impact on competition, promotion, product safety and the operation of the marketplace. Key players in this environment include all of the following EXCEPT A) legislators. B) regulatory agencies. C) political parties. D) courts. E) stock exchanges.

stock exchanges.

A SWOT analysis is part of a firm's situation audit. SWOT is an acronym for

strengths, weaknesses, opportunities, and threats.

Firms with ________ tend to be more socially responsible.

strong ethical climates

The group of firms that make and deliver a given set of goods and services is known as the

supply chain.

Supply chain efficiency, a strong brand name, and customer satisfaction are likely to be sources of a

sustainable competitive advantage.

A good marketer can identify potential opportunities by paying close attention to customer needs and continuously monitoring

the business environment in which the company operates.

Chuck heard his unit described as a dog. He later found out that meant

the products in his unit are in a low-growth market with low market share and will be phased out. Starts are high growth and hight market share

Perhaps the easiest way to reduce the knowledge gap in the service delivery process is by

understanding customer expectations. Firms can close this gap by determining what customers really want by doing research using marketing metrics such as service quality and the "zone of tolerance."

Your firm has recently completed your response to an RFP from a large manufacturer. Your team's next step will be to

wait for the manufacturer to analyze the proposal.