Marketing Strategies Mid-term Exam

Total budget competitor

A consumer wanted to purchase a new computer. However, she used the money to pay her rent instead. In this case, housing is what type of competitor?

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

A customer's decision to purchase one product or group of products over another is primarily a function of:

False

A change in international, federal, state, or local laws and regulations is an example of a political trend. a. True b. False

True

A church sermon preached to a congregation is an example of a product. a. True b. False

Metamarket

A cluster of closely related goods and services that center around a specific consumption activity is referred to as a:

False

Focus groups can be used to determine cause-and-effect relationships.​ a. True b. False

Market-oriented

__________ firms are those that successfully generate, disseminate, and respond to market information.

Environmental scanning

__________ involves the analysis of economic, political, legal, technological, and cultural events and trends that may

Commoditization

__________ is the curse of mature markets whereby products lack any real means of differentiation and customers see competing products as offering roughly the same benefits.

target market and marketing mix

List the elements that make up a marketing program.

True

A SWOT analysis is one of the most effective tools to analyze and organize environmental data and information. ​ a. True b. False

False

A major drawback to primary data gathering is its relevance to the specific problem at hand. ​ a. True b. False

Competitive intelligence

A marketer at General Mills in charge of international expansion wants to determine Kellogg's market share in Mexico. What type of marketing activity should she apply?

False

A marketer for Whole Foods compares sales during a certain time period to performance standards in the marketing plan. This process is known as marketing implementation. ​ a. True b. False

time and place utility

A product that provides the utmost in convenience is said to offer exceptional:

What do we want to become?

A vision statement answers which of the following statements?A vision statement answers which of the following statements?

Customers are more cynical, have more information, and have more attitude than ever before.

All of the following are reasons for the general decline in customer satisfaction over the past 20 years EXCEPT:

corporate strategy

All organizations need a __________, the central scheme for utilizing and integrating resources in the areas of production, finance, research and development, human resources, and marketing to carry out the organization's mission and achieve desired goals and objectives

True

All ​functional plans have at least two target markets. a. True b. False

internal data are often in a form that is not readily accessible

Although internal data sources have a number of advantages, one of their biggest problems is:

It is now easier to reach small, highly targeted audiences

Although mass media audiences are becoming increasingly fragmented, media fragmentation does have a major advantage. What is this advantage?

customers

Among the fundamental changes to marketing and business practice in today's economy is the dramatic increase in the availability of information. This increase in information has created a shift in the balance of power in the supply chain. Who now holds most of the power in today's economy?

False

Another word for data is information.​ a. True b. False

generic

As a form of __________ competition, bicycles can solve the same basic need as automobiles, albeit with a very different product.

minority population growth

Between now and 2050, __________ will account for a full 90 percent of the growth in the total U.S. population.

Customers will always seek the best value regardless of quality

Changing value propositions in today's economy—such as changes caused by the growth in e-commerce—have forced marketers to learn a tough lesson about customers. What is that lesson?

being dramatically lower in cost

Compared to primary data, secondary data have the main advantage of:

True

Competitive advantages are critical because they set the tone of the entire marketing program. a. True b. False

metamediary

Edmunds.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 manufacturers, dealers, insurance companies, and finance companies. What role does Edmunds.com play in today's economy?

False

Environmental scanning refers to the overall process of collecting and interpreting internal, competitive, and environmental information. ​ a. True b. False

efficiency and quality

Focusing on customers has not always been the hallmark of strategic planning. In fact, in the early 20th century, firms tended to focus strictly on __________ rather than on developing relationships with customers.

Distribution

From the customer's perspective, which part of the marketing mix takes place largely behind the scenes?

False

Goals are more specific than objectives. a. True b. False

Conduct primary research

If an organization does not understand its customers, what should it consider doing?

value; customer relationships

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 4 Ps (product, price, place, promotion) to delivering __________ and a shift from creating exchanges to creating __________.

most readers of a marketing plan are busy and value condensed information.

In a marketing plan, the executive summary should be a complete but concise overview of the entire marketing plan because:

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

In a truly market-oriented organization, what is the role of the CEO?

evaluation and control

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.

derived

In many buying situations, customers will buy one product because it complements another product. In these cases of __________ demand, the demand of one product depends on the demand of another product.

Assessing how customers consume and dispose of products

In the 5W model of customer analysis, what is the primary emphasis of the "What" question?

Identifying the basic need-satisfying benefits provided by the firm's products

In the 5W model of customer analysis, what is the primary emphasis of the "Why" question?

There is very little differentiation among product offerings in the industry

In the airline industry, 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?

brand

In the competitive sports drink market, Gatorade pays very close attention to the activities of Powerade, a major __________ competitor that markets drinks that are similar in features and benefits.

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

In the context of marketing planning, why is it vital that the marketing plan be capable of selling itself to top management?

True

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

acquire new customers and complete a large number of exchanges

In the traditional transactional marketing approach, the ultimate goal of marketing is to:

relationships; competition

In today's business environment, firms that truly focus on customers instill a corporate culture that places customers and other stakeholders at the top of the organizational hierarchy. When this occurs, the firm shifts its focus from transactions to __________, and from __________ to collaboration.

False

Information is often easier to collect than data.​ a. True b. False

organizational structure

Issues such as marketing's position and authority in a firm's hierarchy, the customer orientation of the firm, and the emphasis on short- or long-term planning are examples of which component of the internal environment?

product positioning

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 competing offerings in the minds of target buyers.

the value created by an organization's intangible assets.

Many firms have shifted to balanced strategic planning because traditional planning and measurement approaches are not able to capture:

True

Market segmentation divides the market into homogenous groups or segments.​ a. True b. False

False

Marketing goals should be specific statements stated in quantitative terms.​ a. True b. False

False

Marketing strategy is inherently product-driven.​ a. True b. False

primary

Microsoft is interested in customers' perceptions of Windows 8, its new PC operating system. Since the research goal is rather specific, Microsoft should conduct its own __________ research by asking customers to complete an online questionnaire.

True

More consumers are expressing an interest in sustainable behaviors. This represents an opportunity for Tesla's Model X. a. True b. False

False

Most of the time, it is unrealistic to convert noncustomers into customers because they are already biased against the company or product.​ a. True b. False

evaluation and control

Motorola continuously establishes performance standards and assesses actual performance by comparing it with these standards. Afterwards, Motorola often takes corrective action to reduce any discrepancies. This process is most likely outlined in the __________ section of Motorola's marketing plan.

international markets

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:

goal or objective

Profit would be an example of a(n) __________.

width

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:

True

Situation analysis ​summarizes pertinent information about the internal environment, external environment, and customer environment. a. True b. False

True

Situational analysis is only valuable to the extent that it improves the quality of the resulting marketing plan. ​ a. True b. False

True

The "how" of marketing planning is known as marketing implementation. ​ a. True b. False

vision and strategy perspective

The Balanced Performance Scorecard cautions business leaders to look at strategy and performance through four interrelated perspectives. Which of the following IS NOT one of these perspectives?

False

The Internet has shifted more power to the marketer.​ a. True b. False

False

The SWOT analysis is derived from the marketing goals and objectives section. ​ a. True b. False

corporate affairs

The collection of strategic activities aimed at marketing an organization, its issues, and its ideals to potential stakeholders is referred to as __________. It typically involves marketing activities that are not directed to the end users of a firm's products.

True

The competitive analysis should start by identifying current and potential competitors.​ a. True b. False

True

The executive summary is the first part of the marketing plan. ​ a. True b. False

False

The four Ps of the marketing mix consist of product, positioning, pricing, and promotion.​ a. True b. False

The analyst is more likely to suffer from severe information overload

The growth of the Internet has changed the way that situation analysis is conducted in today's business environment. In terms of situation analysis, which of the following is the most drastic change caused by the Internet?

open lines of communication

The key to coordination is to ensure that functional areas maintain:

broad-based decisions; narrowly defined actions

The marketing planning process typically requires the coordination of __________ at the top of the corporate hierarchy with more __________ at the bottom. ​

True

The most pressing concern for the success of a marketing plan is identifying needed resources. ​ a. True b. False

Government

The sheer volume of available information on the economy, population, and business activities is the major strength of most __________ data sources.

Utility

The term ______ is used to describe the ability of a product to satisfy a customer's desires.​

Ture

The term marketspace describes electronic marketplaces unbound by time or space.​ a. True b. False

True

The use of a vending machine is an example of nonstore retailing.​ a. True b. False

Our economy has shifted to become dominated by intangibles such as services and information

What is perhaps the most important economic reality in the United States over the last 50 years?

To increase the accuracy and reliability of corporate disclosures of financial information

What is the main purpose of the Sarbanes-Oxley Act of 2002?

tactical planning

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?

internal environment

When a firm analyzes its objectives and performance, availability of resources, structural characteristics, and organizational culture, the firm is most likely examining its:

competitive advantage

When a firm possesses capabilities that allow it to serve customers' needs better than the competition, the firm is said to have a:

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

When approving the marketing plan, which of the following questions will a top manager ask?

situation analysis

Whether at the corporate, business-unit, or functional level, the planning process always begins with an in-depth:

It explains how marketing activities mesh with other functional areas.

Which of the following IS NOT a purpose of a marketing plan?

Each party must be capable of immediate delivery

Which of the following IS NOT one of the five conditions of exchange in marketing?

A collection of numbers or facts that have the potential to provide information

Which of the following best describes the definition of data?​

Rising prices for most products

Which of the following changes occurring in today's economy has NOT been caused by the growth of the Internet?

greater focus on long-term goals

Which of the following cultural values is not typically associated with American consumers?

the use of radio frequency identification (RFID) to control inventory and logistics

Which of the following examples best describes an advance in backstage technology?

A review of the competition

Which of the following is NOT a part of evaluating the internal environment?

Examining an annual report

Which of the following is an example of collecting secondary information?​

Mission statement

Which of the following is needed to develop goals and objectives?

What is our operating philosophy?

Which of the following is one of the five basic questions that a good mission statement should answer?

employees

Which of the following is part of a company's internal market? ​

strategy

Which of the following outlines the organization's game plan for success?​

Price has a direct connection with customer demand

Which of the following statements about pricing decisions in the marketing program is TRUE?

Noncustomers do not know that the firm's product exists

Which of the following statements describes a reason why noncustomers do not purchase a firm's products?

possession utility

Which of the following type of planning focuses on specific markets or market segments and the development of marketing programs that will fulfill the needs of customers in those markets​?

tactical planning

Which of the following type of planning focuses on specific markets or market segments and the development of marketing programs that will fulfill the needs of customers in those markets​?

It could cause the firm to miss out on new opportunities.

Why might an overly narrow mission statement be problematic?

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

With respect to conducting a situation analysis, which of the following IS NOT one of the four important issues to keep in mind?

The outline should have some connection to other functional area plans

With respect to developing a marketing plan, what does it mean for a marketing plan outline to be consistent?