Marketing Management Test 1 (CH 1)

The drugstore chain CVS uses loyalty-card data to better understand what consumers purchase, the frequency of store visits, and other buying preferences, which is associated with which technology-enhanced company capability?

Companies can collect fuller and richer information about markets, customers, prospects, and competitors.

Showrooming is associated with which of the following new consumer capabilities?

Consumers can use the Internet as a powerful information and purchasing aid.

By 2025, annual consumption in emerging markets will total $30 trillion and contribute more than ________ percent of global GDP growth.

70

Which of the following is NOT a consumer touch point?

A) store layouts B) package designs C) product functions D) shipping and logistics E) All of these are touch points. Answer: E

Which of the following is most consistent with the integrated marketing approach?

All communication to consumers must deliver a consistent message irrespective of the medium.

Which of the following is true of business markets?

Business buyers purchase goods to make or resell a product to others at a profit.

"Friends Don't Let Friends Drive Drunk," is an example of marketing information to an interested audience.

FALSE

A marketer's only concern is how best to create demand for a new product produced by his/her company. Improving product design is not his/her responsibility.

FALSE

Advertising is the most important element in business marketing.

FALSE

Companies selling their goods to nonprofit organizations often charge a premium over their normal prices because these organizations are largely indifferent to price.

FALSE

Digital technology is fueling massive reintermediation, like when Apple, Sony, and Samsung released a stream of entertainment devices from smart phones to LED TVs and tablets.

FALSE

Properties are tangible rights of ownership to either real property (real estate) or financial property (stocks and bonds).

FALSE

Regulation of industries has created greater competition and growth opportunities because the playing field has been leveled.

FALSE

The customer value triad consists of a combination of quality, durability, and price.

FALSE

The desire to eat a Philly cheesesteak, whether or not you are in the position to buy one, is an example of a demand.

FALSE

The overabundance of information available on the Internet has made it more difficult for consumers to compare product features and prices.

FALSE

The selling concept holds that consumers will favor those products that offer the most quality, performance, or innovative features.

FALSE

The task environment of a firm consists of demographic, economic, natural, and technological environments, as well as the political-legal system and the social-cultural arena.

FALSE

Unwholesome demand occurs when consumers' purchases vary on a seasonal, monthly, weekly, daily, or even hourly basis.

FALSE

Wants are basic human requirements, such as food and shelter.

FALSE

Services constitute the bulk of most countries' production and marketing efforts.

FALSE, physical goods

________ marketing is based on the development, design, and implementation of marketing programs, processes, and activities that recognize their breadth and interdependencies.

Holistic

Which of the following statements about marketing is true?

It can help create jobs in the economy by increasing demand for goods and services.

Each of the following is true about the Internet's impact on the way business is conducted today, EXCEPT one. Identify the exception.

It has facilitated mass marketing but not the sale of customized products.

Identify the correct statement about marketing management.

It occurs when at least one party to a potential exchange thinks about the means of achieving desired responses from other parties.

________ management is the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value.

Marketing

________ are basic human requirements, while ________ are the ways in which those requirements are satisfied.

Needs; wants

________ goods constitute the bulk of most countries' production and marketing efforts.

Physical

________ marketing aims to build mutually satisfying long-term collaboration with key constituents, such as customers, employees, suppliers, distributors, and other marketing partners, in order to earn and retain their business.

Relationship

________ reflects a customer's judgment of a product's performance in relation to his or her expectations.

Satisfaction

A distribution channel includes distributors, wholesalers, retailers, and agents that display, sell, or deliver a physical product or service to a buyer or user.

TRUE

A short definition of marketing is "meeting needs profitably."

TRUE

Contrary to popular belief, marketers do not create needs.

TRUE

Demands are wants for specific products backed by an ability to pay.

TRUE

In the statement, "Volvo develops its cars for buyers to whom safety is a major concern, positioning the vehicles as the safest a customer can buy," buyers to whom safety is a major concern is the target market.

TRUE

Industry boundaries are blurring at an incredible rate as companies are recognizing that new opportunities lie at the intersection of two or more industries.

TRUE

Place marketers include economic development specialists, real estate agents, commercial banks, local business associations, and advertising and public relations agencies.

TRUE

The proliferation of targeted media and communication channels has allowed marketers to become much more aware of their target consumers' preferences and to customize both products and messages for individual consumers.

TRUE

When consumers share a strong need that cannot be satisfied by an existing product, they are exhibiting latent demand.

TRUE

Which of the following is NOT true regarding impressions?

They provide insight into the results of viewing the communication.

The marketing concept holds that ________.

a firm should find the right products for its customers, and not the right customers for its products

Design is at the root of ________.

acceptability

Which of the following is NOT one of the 4 As customers most value?

affability

The actual and potential rival offerings and substitutes that a buyer might consider are referred to as the ________.

competition

P&G sells cosmetics, laundry detergent, and products like Pringles to the ________ market by establishing strong brand images, developing superior products, ensuring their availability, and backing them with engaging communications and reliable performance.

consumer

The responses marketers seek from prospects include all of the following EXCEPT ________.

decampment

When companies measure the number of people who are willing and able to buy their products, they are measuring ________.

demand

In an attempt to create greater competition and growth opportunities, countries often ________.

deregulate industries

The success of online purchasing resulted in ________ in the delivery of products and services by intervening in the traditional flow of goods through distribution channels.

disintermediation

When eBay and Amazon.com cut out the majority of middlemen that normally would participate in the exchange process, it is an example of ________.

disintermediation

Soccer's World Cup is promoted aggressively to both companies and fans. This is an example of marketing a(n) ________.

event

In Walt Disney's Magic Kingdom, customers can visit a fairy kingdom, a pirate ship, or even a haunted house. Disney is marketing a(n) ________.

experience

Companies are recognizing that much of their market value comes from ________, particularly their brands, customer base, employees, distributor and supplier relations, and intellectual capital.

intangible assets

Tracy's is a chain of hair dressing salons for women. They use television, magazines, radio, and newspapers to advertise their services. The owners ensure that all communication channels deliver a common message to prospective customers. Tracy's believes in ________ marketing.

integrated

Which aspect of holistic marketing motivates employees and ensures that everyone in the organization embraces appropriate marketing principles, especially senior management?

internal marketing

Sales of woolen clothing usually increase during the winter season and decline thereafter. This is an example of ________ demand.

irregular

When consumers share a strong need that cannot be satisfied by an existing product, it is called ________ demand.

latent

Marketers at Johnny Inc. believe in putting their customers ahead of everything else. Their products are carefully designed to meet customer requirements and the entire focus is on achieving customer satisfaction. Johnny Inc. follows the ________ concept in doing business.

marketing

A social definition of marketing says ________.

marketing is the process by which individuals and groups obtain what they need and want through creating, offering, and freely exchanging products and services of value with others

The ultimate outcome of relationship marketing is a unique company asset called the ________, consisting of the company and its supporting stakeholders.

marketing network

People in emerging countries today are becoming increasingly health conscious and are seeking healthy food choices. As a result, demand for health foods is rising steadily, creating an opportunity for marketers to exploit this ________ market.

need

In the case of ________ demand, consumers dislike the product and may even pay a price to avoid it.

negative

Julia is worried about the rising pollution levels in her city. She doesn't mind paying extra for goods and services that use sustainable processes to help control pollution. This is an example of ________ for pollution.

negative demand

Organizations catering to the ________ market need to price their offerings carefully because these markets usually have limited purchasing power.

nonprofit

When demand is ________, it implies that more customers would like to buy the product than can be satisfied.

overfull

Janet is very upset that she can't get tickets to the Rolling Stones concert because they are sold out. Which of the following demand states applies to Janet's situation?

overfull demand

Chipotle engages customers through Facebook, Twitter, and other social media via its grassroots "Food with Integrity" digital strategy, which puts the focus on what it sells and where it comes from. These are examples of ________ media.

owned

Financial accountability and social responsibility marketing are elements of ________ marketing.

performance

The "Malaysia, Truly Asia" ad campaign that showcased Malaysia's beautiful landscape and its multicultural society in order to attract tourists is an example of ________ marketing.

place

When Volvo runs ads suggesting that its cars are the safest that money can buy, it is trying to ________.

position its product

The ________ concept holds that consumers will favor offerings with the best quality, performance, or innovative features.

product

Webmax Inc. produced and marketed cameras. After considerable research and development, they developed a new digital camera that had an array of new features. Webmax was so sure about the new offering that they even reduced their marketing budget. What sort of orientation does Webmax have toward the marketplace?

product orientation

As a major steel manufacturer, SteelMakers Inc. focuses on having the most efficient manufacturing processes in place. The company believes that its competitive edge lies in its ability to offer the best prices. They also maintain an excellent distribution network that ensures wide availability of their products. SteelMakers has a ________ orientation.

production

Managers of ________ businesses concentrate on achieving high manufacturing efficiency, low costs, and mass distribution.

production-oriented

Which of the new four Ps encompasses the old four Ps as well as a range of other marketing activities that might not fit well into the old view of marketing?

programs

In response to threats from such companies as Amazon.com, E*TRADE, and dozens of others, established manufacturers and retailers became "brick-and-click" oriented by adding online services to their existing offerings. This is known as ________.

reintermediation

What are the four broad components of holistic marketing?

relationship, integrated, internal, and performance marketing

A(n) ________ need is one that the consumer is reluctant or unwilling to explicitly verbalize.

secret

The identification and profiling of distinct groups of buyers who might prefer or require varying product and service mixes is known as ________.

segmentation

Rick Johnson trains his company's sales force to target the consumer. He repeatedly asks his team to bear in mind the fact that it is the sales team's responsibility to rouse the consumer's interest and make the consumer feel that he or she needs the product. A true salesman is one who can convert an indifferent consumer walking into the store into a new customer. Johnson believes in the ________ concept.

selling

The ________ concept holds that consumers and businesses, if left alone, will ordinarily not buy enough of the organization's products.

selling

If a marketer uses warehouses, transportation companies, banks, and insurance companies to facilitate transactions with potential buyers, the marketer is using a ________ channel.

service

As economies advance, a growing proportion of the economy's activities focuses on the production of ________.

services

Car rental firms, hair dressers, and management consultants provide ________.

services

Holistic marketing incorporates ________ marketing, an understanding of broader concerns in the ethical, environmental, legal, and social context of marketing activities.

social responsibility

The Body Shop, Timberland, and Patagonia incorporate ________ as a way to differentiate themselves from competitors, build consumer preference, and achieve notable sales and profit gains.

social responsibility

A(n) ________ need is a need that the consumer explicitly verbalizes.

stated

The value of an offering is described as the ________.

sum of the tangible and intangible benefits and costs to customers

The ________ is the channel from raw materials to components to final products that are carried to final buyers.

supply chain

During market segmentation analysis, the marketer identifies which segments present the greatest opportunity. These segments are called ________ markets.

target

The ________ environment includes the actors involved in producing, distributing, and promoting an offering. The main actors are the company, suppliers, distributors, dealers, and the target customers.

task

Which of the three transformative forces mentioned in the chapter is associated with the number of mobile phones in India recently exceeding 500 million and Boston Consulting Group believing brand marketers must enhance their "digital balance sheets"?

technology

Which of the following reflects the "people" component of the marketing mix?

the internal marketing of the firm

Identify the concept that emerged in the mid-1950s as a customer-centered, sense-and-respond philosophy.

the marketing concept

Which of the following holds that consumers prefer products that are widely available and inexpensive?

the production concept

The three central trends in Marketing 3.0 are collaborative marketing, globalization, and ________.

the rise of a creative society

Which of the following categories of goods and services is most likely to require an aggressive use of the selling concept?

unsought goods

Jorge drinks two liters of soda each day. He is aware of the negative impacts of sugary drinks on his health and the potential for the empty bottles to add to pollution. His demand state is best characterized as ________ demand.

unwholesome

Companies address needs by putting forth a ________, a set of benefits that they offer to customers to satisfy their needs.

value proposition

When Frank buys his own house, he would like to have a home theater system and a jacuzzi. He plans to save enough money in the next three years so that he can fulfill his wish. Frank's desire for the home theater and the jacuzzi is an example of a(n) ________.

want