Marketing Midterm Study Guide

A marketing plan

provides a framework for implementing and evaluating marketing activities.

Your competition is beating you on price in your most important product market. In response, you decide to launch a new ad campaign focusing your customers on the price attribute of your marketing mix. You need a catchy slogan that conveys the attractiveness of your product's pricing. ​ Which of the following slogans should you use to convey this message most effectively?

"Expect More. Pay Less"

According to your text, ____ are small technology-based firms operating in international markets almost immediately after their establishment and realizing as much as 70% of their sales outside the domestic home market.

"born globals"

A group of brands that a consumer views as alternatives for possible purchase is called a(n)

consideration set.

HealthCare Guardian Insurance rolls out an innovative nurse-on-call information system available online. The product is not widely accepted because patients don't see the need for such a service. This situation represents a failure in which aspect of implementing the marketing concept?

An information system to determine customer needs

What is a primary difference between business and consumer buyers?

Business buyers generally place larger orders than consumer buyers.

____ are formalized rules and standards that describe what a company expects of its employees in terms of ethical behavior.

Codes of conduct

The Walt Disney Company is a master at incorporating all the unique characteristics of digital media into its website. It knows how to appeal to all types of consumers and utilize the full potential of digital media.The Disney website immediately catches your attention with sights and sounds that come alive. Not only can you catch a glimpse of an upcoming movie, but it also connects you with your favorite characters from movies past. The website offers age-appropriate games and activities, including the ability to create a fairy-tale cottage. The Disney Parks have their own links, of course, along with Radio Disney, the Disney Store, family vacation packages, and an educator's corner. An adult or child can enjoy navigating through the electronic marketing of Disney. ​ Refer to Scenario 10.1. The Disney website offers users the ability to create a character or a comic. You have the option of allowing other people to view and comment on your new creation. Which characteristic of e-marketing is being utilized here?

Connectivity

One way in which marketers can demonstrate social responsibility is through programs in sustainability. Which of the following is notincluded as a goal of sustainability?

Focusing primarily on the external environment of the company

Which of the following is NOT at the generic competitor level for Honda Pilot sport utility vehicle (SUV)?

Ford Escape SUV

Chrysler is producing a new seven-passenger SUV with all-wheel drive. Which of the following would be the best variables for segmenting the market for this new model?

Geographic location and family life cycle

Which step in the marketing research process involves the use of data analysis and statistical techniques to help draw conclusions?

Interpreting research findings

Cummins, which manufactures automotive parts, has a Code of Business Conduct that centers around ten Statements of Ethical Principles that serve as the foundation for ethical conduct at Cummins. The code addresses numerous issues and is available in many languages. Employees must sign off on it every year. How does Cummins' Code of Business Conduct promote ethical behavior?

It reduces opportunities for unethical behavior by specifying what is expected of employees.

Which of the following alliances/agreements is the United States NOT a part of?

MERCOSUR

Many marketers are concerned about the number of potential customers within a certain area of land because of the different requirements to serve dissimilar areas. What is this segmentation variable called?

Market density

Wegmans recently placed an order with the Applegate Corporation for hotdogs. The typical weekly order is for 10 cases; however, since the upcoming weekend includes a holiday, this time Wegmans is ordering 100 cases of hotdogs. Wegmans orders this product on a regular basis. What type of purchase does this week's purchase represent?

Modified rebuy

Cognitive dissonance is most likely to occur during which part of the decision-making process?

Postpurchase evaluation

Raging Waters is a water park located in San Dimas, California, and typically welcomes 10,000 to 20,000 visitors daily from Los Angeles and nearby cities in Southern California. Raging Waters is known for its coaster-like slides and historically has added one new thrill attraction each season. The company uses its Facebook page to alert followers to the new attraction and typically makes an announcement about the attraction toward the end of the season. During the fall and winter months when the amusement park is closed, the Facebook page may provide updates on the new attraction and provide links to purchase advance tickets or season passes from their website. Which element of the marketing mix is Raging Waters using to generate interest and ticket sales for the park?

Promotion

Which of the following statements about reseller markets is false?

Resellers are not concerned with how much space the product takes up as long as it has a high price.

Which method of business buying is necessary when products are highly homogeneous and examination of each item is NOT feasible?

Sampling

Which of the following characteristics relates to the fact that technology acts as a catalyst to spur even faster development?

Self-sustaining

____ are more consumer-driven than traditional media.

Social media

Which of the following statements about social responsibility is correct?

Social responsibility refers to a company's obligation to maximize its positive impact and minimize its negative impact on society.

Marketers' ability to obtain digital information is referred to as

accessibility.

Routinized response behavior is what a consumer does when

buying frequently purchased, low-cost items that need little search effort.

The problem with using an undifferentiated strategy to market a "universal car" is that

car buyers have heterogeneous needs.

Nakia wants to buy a new couch, but there is only one place in her town that sells them, and she lives in an isolated area. Nakia most likely feels her consumer right to ____ has been violated.

choose

When selecting specific target markets, a firm should

choose the segments most in line with the firm's objectives and long-term growth.

Gucci, a marketer of high-fashion products, achieved a company turnaround by ensuring that its brand had the same image and proper display around the world. It also lowered prices on some items, like handbags, to be more competitive. This illustrates a company working to develop a marketing mix that is both ____ and ____.

consistent; flexible

You are shopping for a laptop or tablet to use for taking notes, research, and studying. In this case, you belong to a(n)

consumer market.

Lena is completing her senior year of college and is living in an apartment with three friends. Her family has a subscription to HBO Go, and Lisa is able to use the log-on ID and password while she's at college. Lena does not have cable TV or satellite TV as she typically streams shows or movies that are available online for free or through HBO Go. Several of Lena's friends don't have a subscription to Hulu, so Lena has given them her log-on ID and password so they can watch their shows. She doesn't mind sharing the HBO Go subscription with her friends—what could it hurt? She has heard that the entertainment industry and HBO Go are upset over people sharing their subscription to the streaming services in this way. Lena's sharing of her family's HBO Go subscription is an example of.

consumer misbehavior

When influencers fail to disclose a connection to a brand they promote, they may be charged with

deceptive advertising.

The feasibility and degree of globalization is determined by the

degree of similarity among the various environmental and market conditions.

The University of North Carolina and the University of Illinois at Urbana-Champaign both offer online MBA programs that are available to students around the world. This is an example of

globalization.

Strategic planning requires __________ to facilitate the process of assessing opportunities or threats from competitors.

marketing research

Claudia, a marketer at the local zoo, has been using digital media to promote new exhibits and events. Claudia finds that digital media is a good way to promote events when the zoo does not have a large promotional budget. At the moment, Claudia is working on a strategic process for developing a(n) _________________ for a sustainable seafood event the zoo is holding for its members, most of whom are very active on the zoo's Facebook page. She decides Facebook is the appropriate social media channel she wants to use to reach consumers. Claudia determines the appropriate pricing for the event as well as the best way to distribute and promote the event through its Facebook page. To promote the event more successfully, she is also going to look at past Facebook poll results, member postings, and responses to corporate messages to determine what its members would truly desire to get out of the event. Claudia plans to incorporate this into the digital promotion she will release for the upcoming event through Facebook.

electronic marketing strategy

Managers at BJ's Wholesale Club believe that most of its sales are to small businesses rather than consumers, and that women are more likely to be making the purchasing decisions. This is an example of a(n) ____ that BJ's could test through marketing research.

hypothesis

If Kyrgyzstan levied a duty on all goods purchased from the United States and other countries outside its borders that were brought into Kyrgyzstan, its businesses and citizens would be paying a(n)

import tariff.

When the Dutch company Shell purchases crude oil from Texas, it is engaging in

importing

Scott works at an auto dealer. His company pays the internet site AutoWurld.com to act as a neutral third party that provides access to an unlimited amount of vehicle listings and sales transactions. Melvin is in charge of monitoring this site to look for deals. His firm pays $395 a month for access. AutoWurld.com is an example of a(n)

independent B2B e-commerce site.

The forecasting method that utilizes a firm's historical sales data to find patterns in the firm's sales volume over time is

time series analysis.

Marketers call the internet a pull medium because

users determine which websites they are going to view.

____ competitors are those that compete in the same product class, but their products have different features, benefits, and prices.

Product

Which one of the following statements about codes of conduct (ethics) is false?

They must be detailed enough to take into account many possible situations.

Hannah, a working mother, has recognized the need for some sort of slow cooker so that she can spend less time preparing meals and more time with her family after work. She uses Google to research slow cookers online and learns that Consumer Reports ranks the Instant Pot the highest. Hanna's use of the Internet is

an external search.

Takeshi, a 17-year-old high school student, wants to buy a pack of Marlboro Lights. He has the money to purchase them, but he is still not considered to be a market for the product due to his lack of ____ to buy.

authority

Graff's markets its exclusive jewelry and gifts to high-income individuals interested in high-quality products and a well-known brand name. It uses the same marketing mix to reach this market. Graff's uses a(n) ____ strategy.

concentrated targeting

Apple has been successful by anticipating what consumers would want in new technological advances, convenience, and ease of use. The introduction of the iPad was an example of a _____ for Apple, something that an organization does extremely well and may give a company an advantage over its competition.

core competency

Southwest Airlines' planes are easily recognizable even when in the air due to their vibrant color scheme, striped tail, distinctive font, and striped heart. Southwest carries this color scheme and heart symbol throughout much of its communication—airport signs, print and television advertising, even its smartphone app. This use of color, font, and symbols to convey Southwest Airlines' personality is an example of a(n)

corporate identity.

Miriam got a new job that pays extremely well. This is good because two years ago she was forced to go into bankruptcy when she couldn't repay her debts. She would like to purchase a used car so she can drive to work. However, she knows it will be hard to get the bank to provide her with a car loan at favorable interest rates due to her recent bankruptcy. She has therefore saved her money diligently so she will have enough to pay for the car outright. In this case, Miriam lacks

credit

Creating long-term relationships with customers is a key component to surviving and thriving in today's competitive business landscape. One tactic many companies are deploying is the use of membership or loyalty programs where customers can accumulate points and receive discounts or free merchandise. For example, Best Western encourages customers to join their membership program and provide key contact information such as their e-mail, address, and phone number. Best Western offers benefits such as upgrades and free room nights based on the number of stays or points a customer has accumulated. This example demonstrates how Best Western is utilizing

customer relationship management.

One of the most important benefits of e-marketing is the ability of marketers and

customers to share information.

Bank of America is interested in helping people understand their money and how to build Better Money Habits™. It is working to connect customers, clients, employees, and communities to the tools, products, and education they need to help make their financial lives better. The Bank of America has partnered with Khan Academy to launch BetterMoneyHabits.com where free content is available to anyone via a self-paced learning experience to explain the complex concepts of financial matters. Refer to Scenario 3.4. The partnership between Bank of America and Khan Academy to provide financial literacy is an attempt by the company to

engage in self-regulatory actions.

The forces that affect foreign markets may differ dramatically from those affecting domestic markets. This makes a careful ____ a critical part of a successful international marketing strategy.

environmental analysis

LG Electronics sells several different product lines around the world through home appliance and electronics stores. LG appliances and electronics have been historically made in Korea, where the company is headquartered. Recently, LG has been investigating the possibility of buying land and building a production plant in Texas, in the United States. LG is now operating as a(an) ______; however, if the plant is built in Texas, it will be operating as a(an) ______.

exporter; multinational enterprise

Subscription services from firms such as IRI, which tracks consumer purchases, provide marketing researchers with a good source of ____ data.

external secondary

Product-related ethical issues arise when marketers

fail to disclose information to consumers about the risks associated with using a product.

A marketer that targets customers based on marital status and the presence and age of children is using

family life cycle.

Customer costs include anything the buyer must give up in order to obtain the benefits the product provides. The most obvious customer cost is

monetary price.

Amazon Prime has one of the highest customer loyalty ratings in the entertainment industry with a significant percentage of current video streaming subscribers continuing to renew their subscription with Amazon on a yearly or month-to-month basis. In addition, many customers have cancelled their cable or satellite subscriptions and rely almost exclusively on streaming services such as Amazon Prime and Netflix for their entertainment. Amazon Prime video streaming is available as part of Amazon's $99/year Amazon Prime suite of offerings that includes free 2-day shipping on many Amazon.com orders. Customers can also choose to pay by the month for $12.99/month. If a significant percentage of subscribers continue their service on an annual basis, Amazon is able to build a stable revenue stream based on repeat purchasers. A quick snapshot of one customer revealed that the customer had subscribed to Prime for five years and generated over $700 in revenue to Amazon. Which of the following marketing terms best captures the importance of customer loyalty and its impact on Amazon?

Customer lifetime value

Arjen Pradesh recently graduated from an East Coast university and has joined a small start-up based in New York City. One of his first assignments is to work collaboratively with other members of the marketing team to draft the marketing plan for the next fiscal year. Arjen is highly skilled in conducting secondary research and, as an alumnus of his university, he continues to have complimentary access to the university's library resources. He's now realizing how important data analysis is to firms and is glad he took a marketing research course. Arjen is utilizing the library resources to uncover information about a variety of external factors that could provide opportunities or threats and is exploring such factors as competitive, economic, political, legal, regulatory, technological, and sociocultural. Which section of the marketing plan would be most appropriate for the information that Ethan is obtaining through secondary market research?

Environmental analysis

Emily is buying furniture for her apartment for the first time. She is spending considerable time and effort comparing the products that different stores offer. Which type of decision-making process is she using?

Extended

H&M conducted marketing research to identify explanations for the sales declines its retail stores are experiencing across the United States. The research focused on understanding the shopping habits and desires of a key target market—the Millennial generation. The results indicate that Millennials are more interested in supporting organizations that stand for something—or support a cause or contribute to providing social justice. The information can assist H&M in reorganizing the company, developing new products and communicating with its target audiences to be more effective. Based on this information, which orientation best applies to H&M

Market orientation

Elizabeth is an account executive for a financial services firm that specializes in employee benefits services. She is meeting with the owner of a small business that has grown to the level where it needs to provide extended employee benefits. Elizabeth is happy to help the small business owner and is excited about the opportunity to gain another customer. The company owner has purchased other insurance services such as property and casualty for the business, but has never purchased a group insurance plan and anticipates that it will take a considerable amount of time in the purchase process since this represents a significant decision for the company and its employees. What type of business purchase does this represent?

New-task

Businesses follow a defined buying decision process in order to ensure the goods and services they purchase will meet their organization's needs. The process has multiple stages, and in one of the stages the business will evaluate each component of potential purchase. This includes evaluating the quality, design, materials and any other relevant aspect of the purchase. This evaluation takes place in which of the following stages of the business buying decision process?

Third stage - Search for potential products

The fact that consumers tend to trust other consumers over corporations and often rely on the recommendations of friends, family, and fellow consumers when making purchasing decisions has fostered the growth of sites like

Yelp

The strength of a person's "buying power" depends on economic conditions and

size of resources that can be traded in an exchange.

Honda Motor Company has received several awards for its designs, quality, and integration of technology in automobiles. Today's automotive consumers are increasingly interested in purchasing vehicles that are technology enabled and offer the driver or passenger the ability to access his or her wireless provider's network, use Bluetooth technology to place calls, play music, and utilize GPS technology on their vehicles' smart screen. Prior to offering these add-ons or features to their line of automobiles, Honda utilizes ______ research by assembling a small group of target market customers throughout the world to discuss their needs and how they might utilize new product enhancements. Managers from Honda are present to view the group discussions and observe the interactions among group members as well as the group's moderator.

focus group

AAs the new sales representative for Parkland Electronics, Angelique is responsible for calling on hospital management and selling electronic hospital equipment such as blood pressure cuffs, scales, and heart monitors. Angelique knows that she needs to be friendly with the administrative assistants in the management offices in order to make sure that Parkland's information brochures and new product diagrams actually get to the management staff. In this situation, Angelique is exhibiting her knowledge that administrative assistants are often ________ in the buying decision process.

gatekeepers

In the consumer buying decision process, a buyer will search his or her memory for information about products that might solve the problem they have identified in the

internal search.

Julia plans to buy a new swimsuit for her spring break cruise. She has not seen this year's styles and thus will do some comparison shopping before making a purchase decision. Julia is engaging in

limited decision making.

For demographic purposes, a mail survey sent out by the Nurse-Family Partnership asks each respondent to identify their race by choosing among a list of possibilities. This common type of question is called a(n) ____ question.

multiple-choice

Three primary methods of collecting information for environmental scanning are

observation, secondary sources, and marketing research.

Most marketers operate in a competitive environment of either

oligopoly or monopolistic competition.

Use the following to answer the questions. Moki Hunt recently purchased Swift Waters Adventures, a kayaking and canoeing rental business near the Salt River in Arizona. Swift Waters Adventures had been in operation for five years and was located in an ideal area. Even though the winters in the area can be cold, kayaking and canoeing activities are generally popular year-round. After two months of operation, it became clear why the previous owners had sold the business. While the business appeared to be ideally located, sales were extremely disappointing. ​ Refer to Scenario 5.2. Besides administering the questionnaire, Moki observed people who went kayaking and canoeing on the Salt River, making notes about their appearance and behavior. The type of data he collected is ____ data.

primary

Anh has been hired by a market research company to collect data about the drinking habits of 25- to 35-year-old urban professionals. Anh is to go to "happy hour" with a group of individuals and observe what type of alcoholic beverages they order, how often, and what brands. The data that Anh will obtain is ______ and she will use ______ in its collection.

primary; ethnographic techniques

In reporting marketing research findings, the researcher should

provide explanations in language that those who use the report to make decisions can understand.

Although Blue Diamond engages in environmental scanning and analysis, the company is more likely to change its products and marketing strategies to adapt to environmental forces rather than trying to influence these forces when it comes to its nutmilk products. Blue Diamond has a(n) ____ approach to marketing environmental forces.

reactive

As far as prices are concerned, environmentalists believe prices should

reflect the direct cost as well as the cost of air, water, and soil used.

A representative product taken from a lot or batch, evaluated, and purchased refers to

sampling.

Recent years have seen the introduction of Uber and Lyft, which enable customers to find a ride using an app on their smartphone. In many cities, the two services undercut traditional taxi fares, leading to phenomenal growth. Uber and Lyft are best described as the

sharing economy economic model.

Information provided by one firm on household demographics, consumer purchases, television viewing behavior, and responses to promotions is called ____ data.

single-source

Sysco has developed a website that allows employees to create a profile and connect with coworkers for the purpose of getting acquainted and building a work-related network. This is an example of a

social network.

Marketers of computer software, music, and books are particularly affected by cultural differences in

standards regarding intellectual property.

The buildup approach measure of sales potential

starts with forecasts about demand for a specific product within a relatively small area.

Sony's strong name recognition and solid customer demand for its televisions and game systems are two elements of the firm's

strengths

Market researchers for a local bakery determined that Jewish people consume 63% of the portion of bagels sold in New York City. This is an example of ____ influence on consumer buying decision processes.

subcultural

Many aspects of consumer buying decisions are affected by the individual's level of involvement. Level of involvement is

the importance and intensity of interest in a product in a particular situation.

You will give the keynote address at the annual meeting of the American Cereal Makers Association. You realize most of the attendees think marketing is just advertising. So, you decide to start your keynote address by defining what marketing is in order to set the proper context for your speech. ​ You define marketing as:

the process of creating, distributing, promoting, and pricing goods, services, and ideas to facilitate satisfying exchange relationships with customers.

In today's marketing environment, competitors can take on many forms. For example, a Starbucks latte can be seen as a competitor to an issue of The New York Times. In this circumstance, these two products are described as ____ competitors.

total budget

When a firm designs a single marketing mix and directs it at an entire market for a particular product, the company is using a(n) ____ strategy.

undifferentiated

During the search for products and evaluation of possible suppliers stage of the business buying decision process, marketers sometimes use ____ analysis to examine the quality, design, materials, and possibly item reduction in order to acquire the product in the most cost-effective way.

value

A trading company acts like a ______, taking on much of the responsibility of finding markets while facilitating all marketing aspects of a transaction.

wholesaler

The Federal Drug Administration (FDA) has established the following requirements relating to the ingredients labeling on food products: Labels must be placed on the product in a location most likely to be seen by the consumer. Labels must include quantity of and type of ingredients included in the food product. Labels must be printed in a specific font size ​ Regarding these requirements, which one of the following statements is correct?

​ This is an example of marketing ethics as determined by a government regulator.

​Which of the following is most likely to be an idea marketer?

​Abuse counselor

​________________ promote ethical behavior by reducing opportunities for unethical behavior; employees know what is expected of them and what kind of punishment follows if rules are violated.

​Codes of conduct

​The process of putting marketing strategies into action is called

​marketing implementation.

​An organization's business goals should be derived from its

​mission statement.

​The Boston Consulting Group's matrix is based on the

​philosophy that a product's market growth rate and its market share are important determinants of its marketing strategy.

According to the marketing concept, an organization should try to

​provide products that satisfy customers' needs and allow the organization to achieve its goals.