Marketing Exam 1

· Which of the following is needed to develop goals and objectives? o Implantation o Marketing plan o A SWOT analysis o Competitive intelligence o Mission statement

A SWOT analysis

· Expansion and growth, with new products and new markets, are the keys to Google's ___________ approach to marketing strategies. Google uses this approach because it possesses many different strengths that coincide with key market opportunities o Aggressive o Diversified o Defensive o Proactive

Aggressive

· With respect to conducting a situation analysis, which of the following is not one of the 4 important issues to keep in mind? o Data are not the same as information o Conducting a situational analysis is a challenging exercise o Analysis alone is not a solution o The benefits of analysis must outweigh the costs o All bits of data are relevant no matter how minor they may seem

All bits of data are relevant no matter how minor they may seem

· In the context of marketing planning why is it vital that the marketing plan be capable of selling itself to top management? o Because top managers are responsible for executing the marketing plan o Because top managers compensated on how well the market strategy works o Because top managers must be able to clearly communicate the strategy to external stakeholders o Because the managers must ensure that the marketing program is successful o Because top managers must decide whether the marketing plan is the best use for the organization's scarce resources

Because top managers must decide whether the marketing plan is the best use for the organization's scarce resources

· Marketing goals can be defined as: o Specifications by which performances will be assessed o Performance process control o Broad qualitative statements of desired accomplishments o Quantitative guidelines that help firms achieve desired results o Precise statements of desired accomplishments

Broad qualitative statements of desired accomplishments

· When a firm posses capabilities that allow it to serve customers' needs better than the competition, the firm is said to have a : o Marketing advantage o Relative advantage o Vale-based Advantage o Resource advantage o Competitive advantage

Competitive advantage

· If an organization does not understand its customers, what should it consider doing? o Determine a competitive advantage o Analyze the external environment o Choose another target market o Conduct primary research o Conduct secondary research

Conduct primary research

· In the marketing strategy for Amazon, the following statement appears: Our strategy is designed to increase the percentage of repeat customers from 80 percent to 85 percent in the next 12 months. This statement is an example of: o Qualitative objective o Quantitative goal o Discontinuous objective o Procedural objective o Continuous objective

Continuous objective

· The collection of strategic activities aimed at marketing an organization its issues, and its ideals to potential stakeholder is referred to as _______________ it typically involves marketing activist that re not directed to the end users of a firm's products o Societal relations o Stakeholders management o Corporate affairs o PR o External affairs

Corporate affairs

· What might be a problem with only taking the customer's perspective? o Customers do not see behind the scenes to understand the firm's characteristics o Information is more constructive than descriptive o Taking a customers perspective takes a lot of cost and recourses o Adopting a customers perspective doesn't usually translate into insightful information

Customers do not see behind the scenes to understand the firm's characteristics

· Which of the following is not one of the five conditions of exchange in marketing? o Must be at least 2 parties in the exchange o Each party must be capable of immediate delivery o Each party has something of value to offer the other party o Each party thinks its desirable to exchange the other party

Each party must be capable of immediate delivery

· Focusing on customers has not always been the hallmark of strategic planning. In fact, in the early 20th century, firms bended to focus strictly on ___________ rather than on developing relationships with customers o Efficiency and quality o Marketing research o New product development o Selling products to customers o Growth and corporate profit

Efficiency and quality

· Which of the following is part of the companies internal market? o Regulators o Investors o Employees o Suppliers o Customers

Employees

· In developing a marketing plan, the section on goals and objectives defines the parameters by which the firm will measure actual performance. In this respect, the goals and objectives section is tied closely to the ________ section of the marketing plan. o Situation analysis o SWOT analysis o Evaluation and Control o Marketing implementation o Executive summary

Evaluation and Control

· Motorola continuously established performance standards and assesses actual performance by comparing it with these standards. Afterwards, Motorola often takes corrective action to reduce any discrepancies. This is most likely outlined in the _______________ section of Motorola's marketing plan o Evaluation and control o Goals and objectives o Marketing implementation o SWOT analysis o Marketing strategy

Evaluation and control

· Environmental scanning refers to the overall prices of collecting and interpreting internal competitive and environmental information. o True o False

False

· Marketing goals should be specific statements stated to quantitative terms o True o False

False

· The SWOT analysis is derived from the marketing goals and objectives section. o True o False

False

· The four Ps of the marketing mix consist of products, positioning, pricing, and promotion o True o False

False

· The sheer volume of available information on the economy, population, and business activates is the major strength of most ______ data sources o Government o Book and periodical o Commercial o Internal o Primary

Government

· Which of the following cultural values is not typically associated with American consumers? o Less tolerance of smoking in public o Growing disconnect with government o Concern for the natural environment o Greater focus on long-term goals o Lower tolerance of waiting

Greater focus on long-term goals

· A customer's decision to purchase one product or group of products over another is primarily a function of: o How well that choice will fulfill that person's needs and satisfy his or her wants o The product's features relative to competing products o The convenience of acquiring the product or group of products o The availability of the product or group of products o The product's price

How well that choice will fulfill that person's needs and satisfy his or her wants

· In the 5W model of customer analysis, what is the primary emphasis on the why question o Identify the situational influences that affect the customers buying process o Assessing how customers consume and dispose of products o Assessing how purchases vary across different distribution outlets o Determine how the purchase and consumption of one product is related to other products o Identify the basic need satisfaction benefits provided by the firm's products

Identify the basic need satisfaction benefits provided by the firm's products

· What is the main purpose of the Sarbanes-Oxley Act of 2002? o Increase the accuracy and reliability of corporate disclosure of financial information o To ensure that CEOs adequately compensate for the risk they face in terms of corporate governance. o To limit the ability of the media to obtain confidential corporate information o To limit the ability of drug companies to engage in direct to consumer marketing

Increase the accuracy and reliability of corporate disclosure of financial information

· When a firm analyzes its objectives and performance, availability of resources, structural characteristics, and organizational culture, the firm is most likely examining its" o Mission Statement o Internal environment o External environment o Strategic environment o Competitive strategy

Internal environment

· One of the major difficulties of conducting business in today's economy concerns the unclear legal jurisdiction surrounding many business transactions. The issue is especially keen for marketers who do business in: o Peer-to-peer transactions o Business-to- business markets o Metamarkets o Domestic, interstate markets o International markets

International markets

· Why might an overly narrow mission statement be problematic? o It could cause the firm to miss out on new opportunities o It could make it difficult for a firm to select a target market o It makes it harder to develop measurable objectives o It could cause firms to pursue strategies where their strengths are limited o It makes it harder to identify the strengths of the firm

It could cause the firm to miss out on new opportunities

· Kodak focused on maintaining market dominance over Polaroid and Fuji but failed to consider Sony, Nikon, Canon, and smartphones. What mistake did Kodak make? o It refused to collaborate with its competitors o It identified the wrong brand competitors o It only focused on brand competitors o It was too obsessed with market dominance o It didn't engage in competitive analysis

It only focused on brand competitors

· In terms of setting goals and objectives, what is considered to be one of the major benefits gained from applying for the Malcolm Baldrige National Quality Award? o It helps the firm to set objectives that re difficult for competitors to copy o It promotes the development of discontinues objective o It promotes the development of goals that are consistent with the firm's mission o It allows the firm the freedom to pursue other strategic initiatives o It helps the firm to focus solely on customer requirements

It promotes the development of discontinues objective

· To successfully utilize SWOT analysis as a catalyst for strategic planning, the marking manager must focus on several important issues. Which of the following is not one of these issues? o Manager must find ways to transform key threats into strengths o Manager must strive to convert weakness into strengths o The manager must attempt to minimize the firm's limitations o The manager must find ways to connect the firm's strengths to its opportunities o The manager must look beyond the firm's current product offerings

Manager must find ways to transform key threats into strengths

· May firms, like the Altria Group, focus on diversification in their marketing strategies because they possess: o Many internal weaknesses and many external opportunities o Many internal strengths and many external threats o Many internal strengths and many external opportunities o Many internal strengths and few external opportunities o Many internal weaknesses and many external threats

Many internal strengths and many external threats

· Edmonds.com provides a collection of online services and information pertaining to the automotive market. Edmunds offers reviews, free pricing reports, discussion boards, and links to a variety of car manufactures dealers, insurance companies and finance companies. What role does Edmunds.com play in today's economy? o Metamarket o Electronic broker o Distributor o Market space o Metamediary

Metamediary

· In a marketing plan, the executive summary should be completed but concise overview of the entire marketing plan because: o The executive summary is the most important part of the plan o The executive summary does not provide any quantitative information o The executive summary is the least read part of the marketing plan o Most readers of a marketing plan are busy and value condensed information o The executive summary is the first part of the marketing plan to be written

Most readers of a marketing plan are busy and value condensed information

· Goals without objectives are essentially meaningless. What is the rational for such a statement o Objectives are necessary to provide qualitative benchmarks that are used to gauge performance o Progress is impossible to track without measurable performance targets o Goals are necessary to provide specific benchmarks that re used to gauge performances

Objectives are necessary to provide qualitative benchmarks that are used to gauge performance

· The key to coordination is to ensure that functional areas maintain: o Agreement on major marketing functions o Ample time for planning o Consensus at all organizational levels o Open lines of communication o The ability to envision future goals

Open lines of communication

· By focusing on efficiency of operations and processes, lower costs, and delivered good value. Southwest Airlines attempts to build competitive advantage based on o Strategic efficiency o Operational excellence o Customer intimacy o Process improvement o Production orientation

Operational excellence

· _____________ Typically occur within the competitive, customer, economic, political/legal, technology, and/or sociocultural environments of the firm. o Strength and weakness o Weakness and threats o Opportunities and weakness o Strength and opportunities o Opportunities and threats

Opportunities and threats

· What is perhaps the most important economic reality in the US over the last 50 years o Those with higher income are greater than those in the middle of lower class o Our economy is still suffering from the very high inflation rates of the 1970s o Real GDP has declined dramatically since the end of WWII o Our economy has shifter to become dominated by intangibles such as services

Our economy has shifter to become dominated by intangibles such as services

· Furniture Mart offers services such as financing and home delivery to its customers. What type of utility is furniture mart trying to increase? o Possession utility o Time utility o Place utility o Form utility o Psychological utility

Possession utility

· Microsoft is interested in customer's perceptions of Windows 8. Since the research goal is rather specific. Microsoft should conduct its own _______ research by asking customers to complete and online questionnaire. o Experimental o Secondary o Observation o Qualitative o Primary

Primary

· Many firms attempt to distinguish or differentiate their product offerings through the use of ____________ strategies. This involves establishing a mental image of the product offering relative to competition offerings in the minds of target buyers. o Comparative o Image marketing o Product positioning o Branding o Perceptual marketing

Product positioning

· All of the following are reasons for the general decline in customer satisfaction over the past 20 years except: o Today's customers are very price sensitive o Customers are much less brand loyal than in the past o Today's customers are exceptionally demoing o Product quality is much lower now than at any time in the past.

Product quality is much lower now than at any time in the past.

· Which of the following changes occurring in today's economy has NOT been caused by the growth of the Internet? o Increase in product selection o Shifting demand patterns o Audience and media fragmentation o Privacy and security concerns o Rising prices for most products

Rising prices for most products

· What type of planning deals with specific markets or market segments and the development of marketing programs that will fulfill the needs of customers in those markets? o Tactical planning o Local planning o Market planning o Lower-level planning o Strategic planning

Tactical planning

· In the airline industries, companies like American, Delta, and US Air have a difficult time competing because their industry has become commoditized. What does this mean for firms in the airline industry? o Airlines have been forced to develop partnerships to remain competitive o Airline customers have become increasingly demanding o Airline firms compete in a declining industry o There is very little differentiation among product offerings in the industry o The industry experiences very little change over time

There is very little differentiation among product offerings in the industry

· A product that provides the upmost convenience is said to offer exceptional: o Place and possession utility o Form and place utility o Form and time utility o Time and place utility o Time and possession utility

Time and place utility

· In a truly market-oriented organization, what is the role of the CEO? o To focus on selling addition products to consumers o To ensure that employees have everything they need to perform their jobs well o To protect the organization from competitive actions o To monitor the efficiency and capabilities of frontline employees o To hire customer-oriented executives

To ensure that employees have everything they need to perform their jobs well

· Competitive Advantages are critical because they set the tone of the entire marketing program. T or F

True

· The competitive situational analysis should start by identifying current and potential competitors o True o False

True

· The most pressing concerns for the success of a marketing plan is identify needed resources o True o False

True

· The term market space describes electronic marketplaces unbound by time of space? o True o False

True

· As a tool of blue Ocean strategy, the strategy canvas provides a way to visualize the firm's strategy relative to other firms in the industry. The central portion of the strategy canvas is the ____________ or the graphical representation of the firm's relative performance across its industry's factors o Value curve o Divergence curve o Strategic focus o Action diagram

Value curve

· In 2005, the American Marketing Association changed the definition of marketing that had stood for 20 years. The major changes in the definition included a shift from delivering the 4Ps (product, place, promotion) to delivering ___________ and a shift from creating exchanges to creating __________. o Satisfaction, customer relationships o Quality, transaction o Quality, value o Value, satisfaction o Value, customer relationship

Value, customer relationship

· A vision statement answers which of the following statements o What are our goals? o Which is our market position? o What do we want to become? o How can we serve our target markets? o What businesses are we in?

What do we want to become?

· Which of the following is one of the five basic questions that a good mission statement should answer? o What is our operating philosophy? o What is our market position? o Where have we been? o Who are our competitors? o What are our opportunities?

What is our operating philosophy?

· Regarding Blue Ocean Strategy, the 4-action framework is desired to challenge traditional assumptions about marketing strategy by asking 4 key questions. Which of the following is not one of these questions? o Which factors used throughout the industry should be copied? o Which factors should be raised well above the industry standard? o Which factors should be created that the industry has never offered? o Which factors should be reduced well below the industry standard?

Which factors used throughout the industry should be copied?

· When approving the marketing plan, which of the following questions will a top manger ask? o Will the proposed marketing plan achieve the desired marketing business unit, and corporate goals and objectives? o What are our responsibilities with respect to being a good steward of our human, financials, and environmental resources? o How will the marketing plan impact the company's reputation among stakeholders? o What are the types of controls we will use to measure the success of the proposed marketing plan? o How will this marketing plan serve to define the organization as a whole?

Will the proposed marketing plan achieve the desired marketing business unit, and corporate goals and objectives?

· In the competitive sports drink market, Gatorade pays close attention to the activates of PowerAde, a major __________ competitor that markets drink that are similar in feature and benefit. o Product o Generic o Total budget o Brand

brand

· In many buying situations, customers will buy one product because it complements another products. In these cases of __________ demand, the demand of one product depends on the demand of another products. o Linked o Dependent o Derived o Conjoined

derived

· A SWOT analysis is one of the most effective tools to analyze and organize environmental data and information o True o False

false

· A major Drawback to primary data gathering is its relevance to the specific problem at hand o True o False

false

· Another Word for Data is Information o True o False

false

· Firms specializing in operational excellence excel at basic research/rapid research interpretation as a core competency? o True o False

false

· Most of the time it is unrealistic to convert noncustomers into customers because they are already biased against the company or products o True o False

false

· As a form of _______________ competition, bicycles can solve the same basic need as automobiles with a very different products o Product o Total budget o Regular o Generic o Brand

generic

· What is an advantage of assigning responsibilities for achieving marketing objectives? o It gives the marketing manager more control o It aids in the goal setting process o It makes the process less complex o It eliminates organizational conflict o It limits problems of stealing credit

it eliminates organizational conflict

· Weaknesses that can not be converted into strength are called _________________ o Failures o Threats o Capabilities o Uncontrollable o Limitations

limitations

· Although Mass media Audiences are becoming increasingly fragmented, media fragmentation does have a major advantage. What is this advantage? o It now costs less to reach a mass audience o It is much easier to measure feedbacks from mass media audiences o Consumers are now highly susceptible to online advertising o It is now easier to reach small, highly targeted audience o Consumers are now much more receptive to television advertising

o It is now easier to reach small, highly targeted audience

· Which of the following statements about pricing decisions in the marketing program is TRUE? o Pricing is the most difficult element of the marketing mix to change o Price has a direct connection with customers demands o Price is one of two elements of the marketing mix that leads to revenue o Pricing is the least manipulated of the marketing mix o Customers will always equate higher prices with higher quality products

o Price has a direct connection with customers demands

· Which of the following outlines the organization's game plan for success? o Planning o Competitive intelligence o Strategy o Utility o Market scanning

o Strategy

· The term____ is used to describe the ability of a product to satisfy a customer's desires o Exchange o Strategy o Utility o Competitive intelligence o Market scanning

o Utility

· Strengths are typically based on the existence and nature of the ______________ possessed by the firm. Weakness stem from a lock of these important factors o Patents and capital o Relationships and resources o Customers and partnerships o Customers and resources o Products and customers

relationships and resources

· Many firms have shifted to balanced strategic planning because traditional planning and measurements approaches are not able to capture: o Real time customer satisfaction metrics o The value created by an organization's intangible assets o Real-time financial performance metrics o Either internal or external innovation o Key competitive information to drive marketing planning

the value created by an organization's intangible assets

· A firms strategic focus will change over time due to the dynamic nature of internal and external environment o True o False

true

· Comprehensiveness in the goal-setting process means that each functional area should be able to develop its own goals that relate to the organization's needs o True o False

true

· In the marketing strategy section of the marketing plan, the firm details how it will gain competitive advantage by doing something better than the competition o True False

true

· Situational analysis is only valuable to the extent that it improves the quality of the resulting marketing plan o True o False

true

· The use of a vending machine is an example of nonstore retailing o True o False

true

· While goals should be quantitative in nature, objectives are usually expressed in qualitative terms. o True o False

true

· Sears at one time lost sight of its mission and jumped into markets such as real estate and financial services that did not fit its strengths or core operations. This most likely occurred because Sears lacked a mission statement with the appropriate: o Profitability o Stability o Width o Focus o Strategic fit

width