marketing test one Chapter Two

According to the text, the 80/20 rule suggests that

80 percent of profits come from 20 percent of customers.

Which of the following is not a purpose of the marketing plan?

Serve as a contract with the customer

The Boston Consulting Group classifies products that have a dominant market share but low prospects for growth and that generate more cash than is required to maintain market share as

cash cows

At Mrs. Fill's Cookie Co., top-level managers delegate very little authority to lower-level employees. Mrs. Fill's is a(n) ___________ organization.

centralized

All marketing mix decisions must have two characteristics: ___________ and ___________.

consistency; flexibility

A group that has the willingness, ability, and authority to buy a product is a

market

Starbucks is presently involved in a process of assessing marketing opportunities and resources, determining marketing objectives, re-defining marketing strategies, and developing guidelines for implementation and control. Thus, Starbucks is involved in

marketing planning

Safeway Food Stores is involved in identifying and analyzing a target market. The firm then develops a marketing mix to satisfy individuals in that market to gain long-term competitive advantages. Based on this example, Safeway is creating a

marketing strategy

Which of the following is false with regard to customer lifetime value?

All customers have equal value to a firm.

Using information about customers to create marketing strategies that develop and sustain desirable long-term customer relationships is known as

Customer relationship management

Kate is upset because the bank did not credit her account with a deposit, which resulted in a returned check to Kate's landlord. When she was told the branch manager was on vacation, Kate resigned herself to waiting two weeks to have the matter resolved. To her surprise, though, the receptionist apologized for the error and drafted a letter to Kate's landlord while Kate waited. The bank was engaging in which type of decision-making strategy?

Employee empowerment

Which of the following is not a characteristic of a marketing objective?

It clearly identifies how marketing strategy will be implemented.

Which of the following statements about the marketing mix is incorrect?

Once a marketing mix has been created for a particular target market, it cannot be changed until a new strategic window opens.

If you were a marketing manager, under which type of organizational structure would you most likely be working if your firm were a large business with centralized marketing operations?

Organization by function

Stratford Manufacturing is interested in total quality management and wants to learn more about its principles. Which of the following elements will Stratford not address in its investigation of TQM?

Purchasing lowest-cost materials

Which of the following statements is incorrect?

Strategic planning begins at the marketing level and proceeds through business-unit and corporate levels.

Which of the following statements best describes total quality management?

The coordination of efforts directed at improving customer satisfaction, increasing employee participation, forming and strengthening supplier partnerships, and facilitating continuous quality improvements

According to the textbook, which of the following statements is most accurate?

There is no single approach to organizing a marketing unit that works well in all businesses.

EXperience Limited is a company which offers tours and vacations that include participation in an extreme sport, such as hang-gliding, bungee jumping, skydiving, and motocross. Adrian Moss, EXperience Limited's owner, has just finished developing the strategic plan, including marketing objective of growing his customer base by 15% during the coming year. He believes that the best way of reaching that objective is to promote to the college-aged student. In the past, the majority of his sales have been to males under the age of 29, participating in hang-gliding and bungee jumping at various tourist locations. He wants to expand his skydiving and motocross tours, but isn't sure whether or not the expansion will be profitable. He currently has a database containing all the customers who have gone on a hang-gliding or bungee jumping vacation with his company. The information in EXperience Limited's database could be best used to develop

a CRM program

According to the text, a market is defined as

a group of individuals and/or organizations that have needs for products in a product class and have the ability, willingness, and authority to purchase these products.

After determining that consumers had concerns about fat and carbohydrates, Sardino's Pizza began offering a low-fat, low-carb pizza product. The creation of this new product was the result of

a market opportunity

In response to the increase in demand for organic foods, Wegmans, Inc., a regional supermarket, recently created organic food departments within their large stores. The creation of these departments was a result of

a market opportunity

When Opryland Hotel wants to have at least 90 percent of its customers indicating they had a memorable and satisfying experience at the hotel, this is an example of

a marketing objective

High Gliding Air Academy is developing its marketing mix for the coming year. Its managers know that they must first select _________, which may be the most important decision they make in the planning process.

a target market

A strategic window is

a temporary period of optimum fit between the key requirements of a market and the particular capabilities of a firm competing in that market.

The marketing plan is

a written document detailing activities to be performed to implement and control marketing actions.

Customer relationship management is facilitated by gathering useful data from

all customer-contact points.

EXperience Limited is a company which offers tours and vacations that include participation in an extreme sport, such as hang-gliding, bungee jumping, skydiving, and motocross. Adrian Moss, EXperience Limited's owner, has just finished developing the strategic plan, including marketing objective of growing his customer base by 15% during the coming year. He believes that the best way of reaching that objective is to promote to the college-aged student. In the past, the majority of his sales have been to males under the age of 29, participating in hang-gliding and bungee jumping at various tourist locations. He wants to expand his skydiving and motocross tours, but isn't sure whether or not the expansion will be profitable. He currently has a database containing all the customers who have gone on a hang-gliding or bungee jumping vacation with his company. The fact that college enrollments have been increasing at a fast rate the past few years is an example of _____ and creates a _______ for EXperience Limited.

an environmental factor; marketing opportunity

The strategic planning process begins with

analysis of the marketing environment.

Business decisions made in creating a marketing mix

are only as good as the organization's understanding of the needs of the target market.

Jason, 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

If Apple measured and evaluated the quality of its goods, services, and processes as compared with those of the best-performing companies in the computer industry, it would be employing

benchmarking

The term "______" describes measuring and evaluating a firm's quality in products and processes against industry leaders.

benchmarking

For marketing implementation to be successful, the needs of _________ customers must be met.

both internal and external

According to the Boston Consulting Group, marketers may classify their products as all of the following except

cash contributors.

The director of marketing for 3M tapes tells the rest of the management team, "When it comes to our transparent packaging tape unit, our strategy will be to use funds generated here to support our venture in the industrial bonding market." This strategy indicates that the packaging tape unit falls into which one of the following classifications?

cash cow

EXperience Limited is a company which offers tours and vacations that include participation in an extreme sport, such as hang-gliding, bungee jumping, skydiving, and motocross. Adrian Moss, EXperience Limited's owner, has just finished developing the strategic plan, including marketing objective of growing his customer base by 15% during the coming year. He believes that the best way of reaching that objective is to promote to the college-aged student. In the past, the majority of his sales have been to males under the age of 29, participating in hang-gliding and bungee jumping at various tourist locations. He wants to expand his skydiving and motocross tours, but isn't sure whether or not the expansion will be profitable. He currently has a database containing all the customers who have gone on a hang-gliding or bungee jumping vacation with his company. According to the BCG matrix, the hang-gliding and bungee jumping tours have been a ____ for EXperience Limited, while the skydiving and motocross tours represent a_____________.

cash cow; question mark

In a traditional organization, marketing decisions are likely to be

centralized at the top levels of the organization.

A __________ is created when a company matches its core competency to opportunities it has discovered in the marketplace.

competitive advantage

Microsoft's marketing, technical skills, and continuing investment in improving its software systems give it a(n) ___________ because it makes computers easier to use.

competitive advantage

Southwest Airlines has a history of being able to retain its employees due to the atmosphere and culture of the company. Employees have been known to dress up in costume on an airplane, engage in "games" with the passengers, and generally provide a fun atmosphere for traveling. While other airlines have low rates of customer satisfaction, Southwest tends to maintain a high rating with its customers. Recent gas price hikes have caused most airlines to charge for checked luggage and to fill every flight to its maximum, adding to the negative experience of airline travel. Southwest keeps its costs low through several methods, one being that they do not serve meals on flights, or provide pre-boarding passes. The typical flight is two hours or less and occurs between several selected cities rather than flying to practically anywhere in the country. Southwest is known for its low fares, its dependability, and its on-time flights. Southwest's low fares, dependability, and its on-time flights represent its

competitive advantage

Gucci Group, 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

Marketing managers can take each of the following corrective actions for reducing a discrepancy between established performance standards and actual performance except

coordinating a new step in performance analysis.

A __________ is something that an organization does extremely well and may give a company an advantage over its competition.

core competency

___________ strategy determines the means for utilizing resources in the functional areas of marketing, production, finance, research and development, and human resources to achieve the organization's goals.

corporate

A firm's unique symbols, personalities, and philosophies comprise its

corporate identity

Resource deployment and coordination of functional areas of business are determined by

corporate strategy

Electronic marketing has greatly improved the ability of marketers to target individual customers. As a result, many feel that marketing's emphasis is shifting from share of market to share of

customer

Borders Books uses technology to help them identify specific customers, establish interactive dialogues with them to learn about their needs, and combine this information with their purchase histories to customize products to meet those needs. Borders Books is using the _____ approach.

customer relationship management

When managers at Logistics Pro are developing their strategic plan, they use a marketing orientation as a guide to ensure that ________ is an integral part of the process.

customer satisfaction

The Acme Corporation is expanding operations into countries outside the United States. To improve local managers' responsiveness to local conditions, Acme's senior management has decided to delegate decision-making authority further down the chain of command. Acme is

decentralized

Identifying and analyzing a target market and developing a marketing mix to satisfy individuals in that market are essential elements of which of the following parts of strategic planning?

developing a marketing strategy

Key factors in determining the best organizational structure for a marketing unit are the

diversity of the firm's products and the characteristics and needs of the people in the target market.

Products that have a relatively low market share and low prospects for growth are considered by the Boston Consulting Group to be

dogs

A server ein a fine restaurant has the authority to give a complimentary dessert to a dissatisfied customer when the customer complains about the meal or service. This is an example of

empowerment

___________ involves giving customer-contact employees the authority and responsibility to make marketing decisions without seeking the approval of a supervisor.

empowerment

The first step in the marketing control process is to

establish performance standards.

The marketing control process consists of

establishing performance standards, evaluating performance, and reducing the differences between desired and actual performance.

One way that Saturn evaluates its product and service level is by how well it ranks on the J. D. Power & Associates Sales Satisfaction Survey. In doing so, Saturn is

evaluating actual performance

A marketing plan usually begins with a(n)

executive summary

A competitive advantage exists when a

firm matches a core competency to opportunities it has discovered in the marketplace.

Ford has centralized marketing operations with personnel who direct marketing research, distribution, sales, advertising, and so forth reporting directly to the top-level marketing executive. Ford's marketing department is organized by

function

According to the Boston Consulting Group, question marks are characterized as products

having a small share of a growing market and requiring large amounts of cash to build market share.

Meredith knows that whether she decides to interact with her customers in person, on the telephone, online, or by fax, that ________ should ultimately drive the marketing strategy.

her customers

To formulate a marketing strategy, one must

identify and analyze a target market and develop a marketing mix to satisfy individuals in that market.

In essence, all organizations have two types of strategy: ___________ is the strategy that the organization decides on during the planning phase, and ___________ is the strategy that actually takes place.

intended strategy; realized strategy

The employees of Zingerman's Deli are its ______ customers.

internal

___________ refers to the coordination of internal exchanges between the organization and its employees to better achieve successful external exchanges between the organization and its customers.

internal marketing

A disadvantage of organizing a firm's marketing unit by products is that

it can be rather expensive.

The time lag between the performance of marketing activities and their results

limits the marketing manager's ability to measure the effectiveness of marketing activities.

Realizing that consumers have begun to seek vehicles that use less gasoline, Toyota heavily promotes its hybrid automobiles to capitalize on this __________ while the strategic window is open.

market opportunity

When the right combination of circumstances occurs at the right time to allow an organization to take action toward a target market, the firm is faced with a

market opportunity

Which of the following is the most specific and detailed type of business strategy?

marketing

The process of putting marketing strategies into action is called

marketing implementation.

CyberCycle Inc., is preparing a written document specifying the activities to be performed to implement and control its marketing activities. This document is called the

marketing plan

Hallaway's Corp.'s new shampoo, VS2, is faltering badly in the market. Hallaway's marketing personnel are unsure who is responsible for various marketing tasks, when these tasks are to be completed, or what resources have been allocated. Hallaway Marketing Director Carolyn Willis said that the problem is that VS2 has the most poorly written ___________ she has ever seen.

marketing plan

Organizing a marketing unit by regions works well for a company that

markets products throughout the nation.

A long-term view, or vision, of what an organization wants to become is called a

mission statement

The questions "Who are our customers?" and "What is our core competency?" are answered in the firm's

mission statement

When an organization attempts to control its marketing activities, it may find it difficult to

obtain the necessary information.

Favorable conditions in the marketplace environment that could produce business rewards for the organization if acted upon properly are called

opportunities

Southwest Airlines has a history of being able to retain its employees due to the atmosphere and culture of the company. Employees have been known to dress up in costume on an airplane, engage in "games" with the passengers, and generally provide a fun atmosphere for traveling. While other airlines have low rates of customer satisfaction, Southwest tends to maintain a high rating with its customers. Recent gas price hikes have caused most airlines to charge for checked luggage and to fill every flight to its maximum, adding to the negative experience of airline travel. Southwest keeps its costs low through several methods, one being that they do not serve meals on flights, or provide pre-boarding passes. The typical flight is two hours or less and occurs between several selected cities rather than flying to practically anywhere in the country. Southwest is known for its low fares, its dependability, and its on-time flights. Maintaining the current culture of "fun" for Southwest Airlines' employees is most likely a(n)

overall organizational objective.

An expected level of performance against which actual performance can be compared is a

performance standard

Morris Business Products Co. has established a monthly sales quota of $150,000. This is a (n)

performance standard

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.

Procter & Gamble, like many firms in the consumer packaged-goods industry, is organized by

product

Which of the following is not a component of a marketing plan?

product

A firm that markets diverse products would most likely base the organization of its marketing department on

products

A marketing plan

provides a framework for implementing and controlling marketing activities.

Sayid's employer is currently developing a new marketing strategy. The top managers have developed the marketing strategy and have given it to Sayid so that he can now develop an implementation plan. Sayid's company will most likely end up with which type of strategy?

realized

The _________ strategy in an organization often does not live up to marketing planners' expectations.

realized

Suppose a customer calls Ann's office at Frito-Lay in Atlanta. The customer has a friend in Seattle who was just telling her about a new snack Frito-Lay has introduced that is selling rapidly. Ann's office does not market this product, and at the present knows very little about it. Based on this information, this firm is most likely organized according to which of the following?

region

A firm that wants to put more senior management personnel into the field, to get closer to customers, and to enable the company to respond more quickly and efficiently to competitors would probably organize its marketing unit on the basis of

regions

Customer relationship management systems cannot be effective unless they are developed as

relationship-building tools.

The most important component of customer relationship management is

relationships with customers

The Texas Pitt Barbecuem Corporation has conducted a SWOT analysis of its competition, and sees a marketing opportunity for its new Texas Pit Barbecue restaurant. It has developed its marketing plan to include the type of products it will sell, the location for the restaurant, and the pricing it will use. Their plan includes a marketing objective to make a profit of 5% the first year of operation. So far, the owners of the restaurant have eliminated a key piece of the marketing plan, which is ______.

specifying how they will achieve their marketing objective

Based on the work by the Boston Consulting Group, products with a dominant share of the market and good prospects for growth are

stars

Kraft purchased the Duracell Battery Company and now operates this division as a separate profit center within the firm. In this example, Duracell is a(n) ___________ unit of Kraft.

strategic business

Within a business organization, a profit center that is self-supporting in terms of sales, markets, production, and other resources is known as a

strategic business unit

Managers at the Littlefield Corporation are engaged in a complex process of revising their organization's mission and goals and developing corporate strategy, marketing objectives, marketing strategy, and, eventually, a marketing plan. This process is called

strategic planning

Southwest Airlines has a history of being able to retain its employees due to the atmosphere and culture of the company. Employees have been known to dress up in costume on an airplane, engage in "games" with the passengers, and generally provide a fun atmosphere for traveling. While other airlines have low rates of customer satisfaction, Southwest tends to maintain a high rating with its customers. Recent gas price hikes have caused most airlines to charge for checked luggage and to fill every flight to its maximum, adding to the negative experience of airline travel. Southwest keeps its costs low through several methods, one being that they do not serve meals on flights, or provide pre-boarding passes. The typical flight is two hours or less and occurs between several selected cities rather than flying to practically anywhere in the country. Southwest is known for its low fares, its dependability, and its on-time flights. The fact that Southwest Airlines has a history of being able to retain its employees is a ___ in its SWOT analysis.

strength

An analysis of ___________ examines internal factors that give the organization certain advantages and disadvantages in meeting the needs of its target markets.

strengths and weaknesses

John Deere's strong name recognition and solid customer demand for its farm and garden equipment are two elements of the firm's

strengths.

Successful business organizations should take actions to convert internal weaknesses into ___________ and external threats into ___________.

strengths; opportunities

A competitive advantage that cannot be readily copied by the competition is referred to as a (n) __________ advantage

sustainable

Because of its highly efficient and low-cost distribution system, Wal-Mart has a _________ advantage over Kmart.

sustainable competitive

Harley-Davidson's Harley Owner's Group (HOG) helps to foster strong relationships between riders and their motorcycles, giving it a(n) _____ over other motorcycle manufacturers.

sustainable competitive advantage

EXperience Limited is a company which offers tours and vacations that include participation in an extreme sport, such as hang-gliding, bungee jumping, skydiving, and motocross. Adrian Moss, EXperience Limited's owner, has just finished developing the strategic plan, including marketing objective of growing his customer base by 15% during the coming year. He believes that the best way of reaching that objective is to promote to the college-aged student. In the past, the majority of his sales have been to males under the age of 29, participating in hang-gliding and bungee jumping at various tourist locations. He wants to expand his skydiving and motocross tours, but isn't sure whether or not the expansion will be profitable. He currently has a database containing all the customers who have gone on a hang-gliding or bungee jumping vacation with his company. The college-aged student represents EXperience Limited's _____, and the tours its operates represent the ______ element of the marketing mix.

target market; product

Marketing managers at Consolidated Equipment Corporation are involved in establishing marketing performance standards, evaluating performance, and reducing the differences between actual and desired performance. These marketing managers are engaged in

the marketing control process

A market opportunity results from

the right combination of circumstances and timing that permit an organization to take action to reach a particular target market.

Southwest Airlines has a history of being able to retain its employees due to the atmosphere and culture of the company. Employees have been known to dress up in costume on an airplane, engage in "games" with the passengers, and generally provide a fun atmosphere for traveling. While other airlines have low rates of customer satisfaction, Southwest tends to maintain a high rating with its customers. Recent gas price hikes have caused most airlines to charge for checked luggage and to fill every flight to its maximum, adding to the negative experience of airline travel. Southwest keeps its costs low through several methods, one being that they do not serve meals on flights, or provide pre-boarding passes. The typical flight is two hours or less and occurs between several selected cities rather than flying to practically anywhere in the country. Southwest is known for its low fares, its dependability, and its on-time flights. In Southwest Airlines' SWOT analysis, the rising gas prices are a(n) ____, while the fact that other airlines are charging for all checked baggage may create a(n) ________,

threat; opportunity

A marketing unit can be organized according to functions, products, regions, and

types of customers

An appliance manufacturer that sells to large retail stores, wholesalers, and institutions would probably organize its marketing unit on the basis of

types of customers