Marketing Test V2

When Johnson and Johnson removed all Tylenol from the shelves after some containers were tampered with, poisoning and killing seven people, the company A. sacrificed short-term profits for long-term credibility. B. was forced to do so following extensive consumer outcry. C. was ordered to do so by the Food and Drug Administration. D. felt that nothing could stop Tylenol from losing most of its customers. E. developed plans to sell the returned Tylenol bottles in less developed countries.

A

Deceptive advertising and promotion of inferior products are examples of __________ ethical issues. A. accounting B. marketing C. social D. finance E. economic

B

Brian is struggling with the choice of publishing his new book, How to Cook Polish Barbeque, as an e-book or a paperback. Brian is addressing which core marketing aspect? A. developing a promotional plan B. managing the exchange function of marketing C. making product decisions D. deciding where and how to sell the product E. pricing the product

C

Effective promotion enhances a product or service's A. supply chain management system. B. wholesaling capabilities. C. perceived value. D. design features. E. trialability.

C

During the __________ era, manufacturers and retailers recognized they needed to give their customers greater value than their competitors did. A. production-oriented B. sales-oriented C. market-oriented D. value-based marketing E. retailing-oriented

D

Janine was tired of her winter coat, so she sold it to her friend, Marissa. This is an example of ________ marketing. A. B2B B. B2C C. C2B D. C2C E. BBC

D

Effectively managing supply chains has a minimal effect on profitability.

False

The four Ps include product, promotion, planning, and place.

False

Introducing newly developed products or services to a market segment the company is not currently serving is called

diversification

Using the BCG portfolio analysis, a "dog" should be phased out unless:

it complements or boosts the sales of another product

Which of the following factors, listed in a situation analysis for a major U.S. auto manufacturer, is the best example of an opportunity?

Recent consumer studies have indicated that Chinese consumers prefer American cars

When discussing the marketing planning process, STP stands for

Segmentation, targeting, and positioning

Price should be based on the value that the customer perceives

true

In value-based marketing, promotion communicates the:

value proposition

Which of the following actions, if it actually happened, would be the most likely to support and enhance an operational excellence macro strategy?

3M Corporation, implementing new software to improve communication with its suppliers

Internet sites, physical stores, and kiosks are most closely associated with which element of the marketing mix? A. place B. price C. product D. promotion E. proximity

A

The primary purpose of the __________ plan is to specify the marketing activities for a specific time. A. marketing B. business C. strategic D. organizational E. resource

A

Whenever Valerie has a new massage therapy customer, she invites the person to be on her e-mail distribution list. In the process, in addition to exchanging her massage therapy service for payment, Valerie is gathering A. information. B. promotional capital. C. pricing data. D. value cocreation. E. feedback.

A

Auction sites like eBay have increased opportunities for __________ marketing. A. B2B B. C2C C. D2C D. C2D E. B2G

B

Elena is the CEO of a small manufacturing firm. She is concerned with meeting the investment objectives of the firm's shareholders, and sees no value in corporate social responsibility. Elena's attitude is A. insupportable in the 21st century. B. consistent with the views of other critics of corporate social responsibility. C. typical of nearly all manufacturers. D. a reaction to regulatory directives of the U.S. government. E. unethical.

B

Janice was disturbed to find that the real estate company she had just started working for did not have a(n) __________, the starting point for creating a strong ethical climate. A. ethical behavior seminar B. set of ethical values C. employment contract D. social responsibility program E. ethical activity bonus

B

Many catalog companies create special-run issues based on what customers have purchased in the past. For example, customers who frequently order bedding items like sheets and pillows receive a catalog with a larger section of bedding items than do customers who mostly order kitchen tools. This is an example of A. C2C marketing. B. customer relationship management. C. a transactional marketing orientation. D. supply chain management. E. typical production-oriented era marketing practices.

B

Marketing enriches society by A. focusing solely on maximizing profits. B. sponsoring charitable events. C. recognizing that the firm can do very little by itself, so it should stay focused on its own core competencies. D. facilitating the smooth flow of goods through the supply chain. E. coordinating marketing functions with other functional areas in the company.

B

Near the end of the model year, Move-Them-Out automobile dealership had an unusually high inventory level. The manager increased her advertising spending and gave extra incentives to its salespeople. Move-Them-Out operates as if it were in the __________ era. A. production-oriented B. sales-oriented C. market-oriented D. value-based marketing E. retailing-oriented

B

Supply chain management is also referred to as A. delivery management. B. marketing channel management. C. production management. D. retail management. E. value proposition management.

B

The chapter opening case on the fishing industry focused on what ethical dilemma? A. Fisheries are overcharging distributors for fish, which is being passed on to consumers. B. Fisheries and restaurants are substituting a less popular fish for a more popular one without the consumer's knowledge. C. Restaurants are selling more fish than ever in spite of overfishing. D. Restaurants are selling fish that are legally banned in the U.S. E. The U.S. fishing industry is selling more fish overseas in spite of increased U.S. demand.

B

The prevailing marketing strategy of the __________ era was to find customers for inventories that went unsold. A. production-oriented B. sales-oriented C. market-oriented D. value-based marketing E. retailing-oriented

B

Value-driven firms constantly measure the __________ that customers perceive, compared to the prices of their offerings. A. information B. benefits C. relationships D. rebates E. merchandise

B

Anupam's company manufactures industrial ladders. He is concerned that consumers who do not understand ladder safety will purchase these extra-tall ladders and injure themselves. During which phase of the strategic marketing planning process should this issue be addressed? A. control B. planning C. implementation D. design E. ethics

C

As use of the Internet took off, car manufacturers were tempted to sell directly to consumers, but decided instead to continue to sell through their existing dealer networks. The car manufacturers considered switching from __________ to __________ marketing. A. B2C; B2B B. B2C; C2C C. B2B; B2C D. B2B; C2C E. C2C; B2C

C

In delivering value, marketing firms attempt to find the most desirable balance between A. the need for value and the perception of value. B. explicit versus implicit value. C. providing benefits to customers and keeping costs down. D. the desire to satisfy customers and the need to keep customers from running the company. E. the need for product improvement and the need for advertising.

C

Many U.S. companies first discovered marketing during the __________ era. A. production-oriented B. sales-oriented C. market-oriented D. value-based marketing E. retailing-oriented

C

Marketing channel management is related to which of the four Ps? A. product B. price C. place D. promotion E. production

C

Marketing has traditionally been divided into a set of four interrelated decisions known as the marketing mix, or four Ps, including all of the following EXCEPT A. product B. place C. performance D. promotion E. price

C

Unlike other business functions like accounting or finance, people in marketing are often singled out as the root cause of ethical concerns because A. they are trained in the art of effective persuasive communication. B. they are not considered to be as quantitatively skilled as accounting and finance people. C. they interact directly with consumers. D. the problems that occurred at Enron, Tyco, and WorldCom were caused by marketers. E. doing a good job of marketing requires some degree of unethical behavior.

C

When looking at ethical issues associated with the strategic marketing planning process, questions A. should only be addressed during the evaluation stage. B. should never be asked; only managers should deliberate marketing ethical issues. C. vary at each stage of the process. D. are never asked during the implementation stage. E. always follow a standard format.

C

Which element of the marketing mix is most relevant to the activity "creating value"? A. promotion B. purchasing C. product D. price E. place

C

Four Winds Art Gallery recently began offering appraisals of customers' art collections, in addition to continuing to sell paintings. Four Winds is A. expanding from offering just services to also offering goods. B. implementing a market segmentation strategy. C. capturing value through multiple pricing strategies. D. expanding from offering just goods to also offering services. E. increasing customer value through inflated appraisal evaluations.

D

Serena studies her customer profiles, market research data, complaints, and other information, attempting to better understand what her customers want. Serena operates in the __________ era of marketing. A. production-oriented B. sales-oriented C. market-oriented D. value-based E. retailing-oriented

D

The evolution of marketing progressed along the following continuum: A. sales, marketing, value-based marketing, production. B. marketing, value-based marketing, production, sales. C. value-based marketing, production, sales, marketing. D. production, sales, marketing, value-based marketing. E. sales, value-based marketing, marketing, production.

D

The four Ps make up the marketing mix, which is the __________ set of activities that the firm uses to respond to the wants and needs of its target markets. A. unpredictable B. external C. internal D. controllable E. global

D

A group of firms that makes and delivers a given set of goods and services is known as a distribution channel.

False

A survey of marketing officers reported that the most frequently observed type of unethical behavior was false or misleading advertising.

False

Advertising executives are rated as having higher ethical standards than lawyers according to recent Gallup poll data.

False

Corporate social responsibility refers to the coordinated actions of government organizations to address the ethical, social, and environmental impacts of business operations.

False

When a manufacturer sells truck and car parts to Toyota, this is an example of B2C marketing.

False

A roofing company agreed to complete a job in one week and collected a 50 percent deposit, but never showed up to do the job. The same roofing company then donated $6,000 to a local children's hospital. The roofing company could be considered socially responsible.

True

The group of firms that makes and delivers a given set of goods and/or services is called a supply chain.

True

The power adapters Dell sells with its computers are built by small companies that specialize in power-related accessories. Dell and the power adapter manufacturers are engaging in B2B marketing.

True

Value is what you get for what you give.

True

One example of a customer loyalty program is

a "frequent diner" card at a restaurant, offering a free appetizer for every $100 in food purchases

Four companies dominate the cereal industry. These firms produce in large volumes, promote heavily, and control access to the supermarket shelves through "slotting allowances," which are payments to retailers in return for shelf space. Combined, these four firms have

a sustainable competitive advantage

Greta is the marketing director for the Pump-N-Slurp convenience store chain. She recently developed a marketing plan for the firm and presented it to company executives. Which of the following did Greta probably include in Pump-N-Slurp's marketing plan? A. Specific plans for each of the four Ps. B. Marketing objectives. C. Opportunities for the firm. D. Perceived weaknesses of the firm. E. All of these.

all of these

Many of today's college graduates will make their livings providing goods and services to "baby boomers," the large group of Americans born in the period after World War II. Baby boomers are a______________market segment

demographic

Duke's is a surfer-themed restaurant chain in Hawaii. Most of its customers are tourists. In a SWOT analysis for Duke's, the possibility that the recession might cut back on tourism in Hawaii would be considered a Weakness

false

Firms decide how to allocate resources to their various products and services during the STP step of the marketing planning process.

false

Isaac is looking for ways to offer new goods and services to his existing customers. He is pursuing a market development strategy.

false

Lamar owns four dry cleaning stores in the suburbs of Orlando, Florida. He recently updated his STP analysis, and has just finished adjusting his marketing mix based on the STP results. His next strategic marketing decision will likely involve

how to allocate resources among his four stores.

Value creation through Place decisions for a consumer product involves

making sure the product is available in the stores where customers will want to find it, and that it is

When pursuing a market development strategy, expanding into international markets is generally

more risky than expansion in domestic markets

When conducting a SWOT analysis, in what phase of the strategic marketing process is an organization presently engaged

planning

3M involves its customers in the process of developing new products. In this way, it can benefit from current customers' insights and develop new products that will meet these customers' needs. 3M is pursuing a ___________ growth strategy

product development

In 2007, Apple Computer Company introduced its new iPhone, adding a cellular telephone, a camera, and Internet access to its iPod. The company was pursuing a(n)__________strategy.

product development

When Nike, the prominent athletic shoe manufacturer, branched out from selling only athletic shoes to also offering athletic clothing and gym bags, what type of growth strategy did this represent?

product development

In most companies, marketing resource allocation decisions are made at the SBU or_________level

product line

As part of her company's SWOT analysis, Valerie is assessing the company's internal environment, including:

strengths and weaknesses

Taking steps to encourage customer loyalty is one way to

sustain an advantage over competitors

In the past, manufacturers' representatives did not have up-to-minute data about the products they were selling. Today, manufacturers' representatives are often provided online access to inventory data for the companies they represent. These online inventory systems allow companies to become more value-driven by A. sharing information across the organization. B. balancing customers' benefits and costs. C. evaluating strategic competitive partnerships. D. building relationships with government regulators of marketing institutions. E. keeping prices below those charged by competitors.

A

All of the following terms are generally associated with the definition of corporate social responsibility EXCEPT A. voluntary. B. stakeholders. C. social impact. D. environmental impact. E. profit.

E

When choosing marketing communication methods, the most effective and efficient option depends on: A. the customers. B. the value created. C. the message. D. all of these. E. none of these.

all of these

Most banks implement customer retention programs aimed at their best customers. They do this because they know that retaining customers usually results in:

increased long term profits

The strategic marketing planning process

is not always sequential

A competitive advantage based on location is often sustainable because

it is not easily duplicated.

Some universities offer online degree programs, competing with traditional colleges based on the convenience of taking online courses. These online programs are pursuing which macro strategy?

locational excellence

Which of the following is LEAST likely to provide a sustainable competitive advantage

lowering prices

Gerald's Tire Store sets itself apart from competitors by the extra attention it pays to providing fast, courteous service in a clean, professional looking environment. Gerald's has used this strategy for over 40 years, expanding to 15 outlets. Gerald's Tire Store has created a______________________to create and deliver value and to develop a sustainable competitive advantage.

macro, or overarching, strategy

A _________ growth strategy employs the existing market offering to each new market segments.

market development

H&R is a small, local heating and air conditioning business. The area military base is a potential source of growth, and H&R already installs and services the type of equipment the military would require, but it is difficult to get established as a certified government contractor. H&R is considering a________________growth strategy

market development

Quitman Enterprises sells its business language dictionary to college students throughout the United States. Joseph Quitman, the owner, wants to start selling the book to international students abroad. Quitman wants to pursue a_____________growth strategy

market development

To determine how attractive a particular market is in using the BCG portfolio analysis,________________is established as one axis

market growth rate

Abercrombie & Fitch, a hip clothing retailer, includes a "SHARE" link on the product pages of its website. This link encourages an Abercrombie customer to post a link (perhaps showing a new style of jeans) on Facebook or Twitter. Abercrombie & Fitch hopes that the customer's friends (who are probably very much like current customers) will click the link, visit the page, and make purchases. This is an example of a ___________ growth strategy

market penetration

Adrienne decides to add new sales representatives and increase advertising in her existing market for her current line of security systems. Adrienne is pursuing a_________growth strategy.

market penetration

Charges that firms are using sweatshop labor to produce their products are likely to occur during the __________ phase of the strategic marketing planning process. A. planning B. implementation C. control D. evolution E. marketing mix

B

__________ is communication by a marketer that informs, persuades, or reminds potential customers about a product. A. Pricing B. Promotion C. Placement D. A relational orientation E. Value co-creation

B

Google and other search engines allow marketers to bid to have their ads shown when consumers search on keywords related to the firm's products. These marketers are attempting to create value through_______.

promotion

A(n)__________ is the trade of things of value between the buyer and the seller so that each is better off as a result. A. exchange B. market segment C. promotional plan D. transactional orientation E. relational orientation

A

As owner of a retail franchise food store, Mary Gray purchases supplies based on specials advertised nationally throughout the franchise system. One Monday, she was surprised to find customers asking for specials she hadn't been informed of in advance. The franchise company failed to live up to the value-driven activity of A. sharing information across the organization. B. balancing customers' benefits and costs. C. evaluating strategic competitive partnerships. D. building relationships with customers. E. keeping prices below those charged by competitors.

A

At one point in the evolution of marketing, the United States entered a buyer's market and the customer became king. Which era is being described? A. market-oriented B. sales-oriented C. production-oriented D. value-based marketing E. economics-oriented

A

If a radio station holds an online contest in which you must log in to its website and submit personal details such as name, phone number, and email to participate, the radio station is A. offering an exchange. B. behaving unethically. C. hoping to receive feedback. D. implementing a CRM program. E. overstepping its role.

A

Jami sells construction equipment. Whenever she calls on her building contractor customers, she asks whether they are having any problems. In doing so, Jami is addressing which of the following core aspects of marketing? A. Satisfying customer needs and wants B. The exchange function of marketing C. Product, place, promotion, and price decisions D. Decisions about the setting in which marketing takes place E. Creating value

A

Many inventors struggle with the question, "I made it; now how do I get rid of it?" They have made the error of considering marketing as A. an afterthought. B. an integral part of a business plan. C. an accounting function. D. a profit center. E. important only for new products.

A

People who initiate, organize, operate, and assume the risk of a business venture are called A. entrepreneurs. B. leaders. C. managers. D. professionals. E. consultants.

A

The idea that a good product will sell itself is associated with the __________ era of marketing. A. production-oriented B. sales-oriented C. market-oriented D. value-based marketing E. retailing-oriented

A

During the __________ era, firms had excess capacity and used personal selling and advertising to generate customers. A. production-oriented B. sales-oriented C. market-oriented D. value-based marketing E. retailing-oriented

B

Which element of the marketing mix is most relevant to the activity "capturing value"? A. promotion B. purchasing C. product D. price E. place

D

A friend of yours comments, "I'm starting my own business. I have a perfect product that no one else can touch, but I have no use for marketing. That's just for the mega-corporations." Which of the following arguments would you NOT use in talking about marketing? A. Marketing helps new ventures organize, operate, and assess risk. B. Marketers help address unmet customer needs, regardless of the size of the firm. C. Marketing focuses on the product, but only as one element. Three other areas are Promotion, Price, and Place. D. Marketers are skilled at communicating the value of the product to potential customers. E. Marketing isn't essential now, but it will be in a year or two when the product takes off.

E

Marketing channel management is also known as A. endless chain marketing. B. a transactional orientation. C. wholesaling. D. product design. E. supply chain management.

E

The fundamental goal of marketers when creating goods, services, or combinations of both, is to A. defeat the competition. B. serve all consumers. C. operate according to government regulations. D. stimulate short-term sales. E. create value.

E

The text highlights one entrepreneur who was a billionaire by the age of 50. This person is Warren Buffet.

False

Each individual's ethical standards are a product of culture and upbringing.

True

1After performing an STP analysis, marketers implement_______________for each target market. A. pricing strategies B. promotion strategies C. place strategies D. product strategies E. all of these

all of these

In 2006, Walmart announced that it would begin selling organic food products. In doing so, Walmart was probably trying to

attract a different market segment

Understanding the causes of performance, regardless of whether that performance exceeded, met, or fell below the firm's goals:

enables firms to make appropriate adjustments.

For many years, because of the size of the U.S. economy, domestic companies ignored international markets, preferring instead to develop new product offerings for existing customers. These companies were pursuing a__________strategy.

product development

Many states create licensing requirements for a variety of professionals (such as lawyers and accountants) designed to restrict entry into their market by professionals from other states. This strategy limits____________growth strategies

product development

Marketers who design and offer new products and services to their existing customers are pursuing a ____________ growth strategy.

product development

Maryam called her auto insurance agent to renew her policy. The agent told her about new types of insurance that are now available--to cover her apartment, or even the engagement ring she just got from her fiancé. The agent was pursuing a ________________growth strategy.

product development

__________is a group of products that consumers may use together or perceive as similar in some way.

product line

Kathy reviews her division's quarterly results and sees that some units exceeded goals while others did not. Next, she will attempt to determine why performance of the different units varied, and whether the variation

was due to factors within or outside the firm's control

A relational orientation is based on the philosophy that buyers and sellers develop A. a complete understanding of each other's needs. B. a long-term relationship. C. a price-value comparison matrix. D. supply chain synergy. E. a marketing value transaction focus.

B

UPS, FedEx, DHL, and other shipping companies support other firms' __________ marketing goals. A. supply chain management B. value communication C. value capture D. retail management E. promotion

A

After hurricanes like Katrina, many small building contractors will flock to the damaged area, charging whatever customers will pay for temporary repairs to roofs and other parts of damaged homes. These contractors are engaged in a(n) __________ marketing orientation. A. transactional B. external C. relational D. internal E. value driven

A

Henry Ford's statement, "Customers can have any color they want so long as it's black," typified the __________ era of marketing. A. production-oriented B. sales-oriented C. market-oriented D. value-based marketing E. retailing-oriented

A

Jeff is going to sell sporting apparel, which he has already purchased from manufacturers, and has signed a deal agreeing to the volume he will sell monthly. He has researched his competition, talked to some customers, and decided on prices he will charge. Jeff has also developed a plan for promoting his business. Based on this description, which element of the marketing mix does Jeff still need to work on? A. place B. product C. price D. promotion E. planning

A

Jeff opened a sporting apparel store and signed a lease on the property. He also signed an agreement with the manufacturer on the amount of merchandise he will sell and the promotions he will conduct. Based on this description, which aspect of the marketing mix does he still need to work on? A. price B. place C. promotion D. product E. prototype

A

Julia is considering a career in marketing. She is concerned about the image of marketers as fast-talking, high-pressure people who only care about making a sale. When reading about the core aspects of marketing, Julia is relieved to see that in marketing A. all parties to an exchange should be satisfied. B. promotion is the most important consideration, followed by pricing decisions. C. decisions are made regarding how a product is designed. D. customers are not considered until the product is ready for sale. E. distribution is controlled by customers.

A

Marketers must determine the price of a product carefully, based on potential buyers' beliefs about A. its value. B. the environment. C. the cost to manufacture the product. D. the economic outlook. E. the product's new advertising campaign.

A

Marketing efforts designed to get the product or service to the right customer, when that customer wants it, are called A. supply chain management. B. a transactional orientation. C. wholesaling. D. value cocreation. E. endless chain marketing.

A

Melanie works for a small computer software company. Her boss is constantly improving its products but neglecting customers, billing, and promoting the company. Her boss is probably stuck in the __________ era of marketing. A. production-oriented B. sales-oriented C. market-oriented D. value-based marketing E. retailing-oriented

A

Retailers accumulate merchandise from producers in large amounts and sell to consumers in smaller amounts. Retailers function as A. market intermediaries. B. monopolists. C. regulators of consumer demand. D. wholesale specialists. E. intermediate promoters.

A

The activity, set of institutions, and process for creating, capturing, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large is called A. marketing. B. marketing research. C. market share analysis. D. market segmentation. E. market positioning.

A

The process of value __________, in which customers collaborate in product design, often provides additional value to the firm's customers. A. co-creation B. positioning C. delivery D. chain management E. based marketing

A

Traditionally, marketing activities have been divided into product, price, place, and promotion. Select the term that best describes the four Ps. A. marketing mix B. marketing channel C. marketing plan D. marketing era E. marketing implementation

A

When a T-shirt manufacturer states, "We only sell it in black because that way we can buy plenty of black fabric and run our plant efficiently," its statement reflects the views that were popular in which era of the evolution of marketing? A. production-oriented B. sales-oriented C. market-oriented D. value-based marketing E. economics-oriented

A

When an accounting firm provides an online training module showcasing real-life decision lapses and their negative effect on the company, it is trying to encourage what type of behavior from its employees? A. ethical B. strategic C. formal D. casual E. secretive

A

Which marketing activity is most directly served by the promotion element of the marketing mix? A. communicating value B. creating value C. capturing value D. delivering value E. producing value

A

Yolanda is the new restaurant manager in a major hotel. When considering changes in the restaurant that will increase value to customers, Yolanda will likely attempt to either provide the same quality at a lower cost or A. improve products and services at the same cost. B. increase prices to increase revenue. C. offset higher hotel rates with lower restaurant prices. D. reduce customer expectations through reduced service. E. lower the quality and the price.

A

Which of the following factors, listed in a situation analysis for a major auto manufacturer, is the best example of a threat?

A New York law firm has filed a $10 million class action suit against the company on behalf of car

During the market-oriented era, A. a good product would sell itself. B. the customer was king. C. marketing was more important than production. D. advertising and personal selling were emphasized to make the sale. E. firms focused on value.

B

Franco uses a database software system to remind him when his customers should be ready to reorder his industrial cleaning products. With this reminder system, Franco contacts his customers when they are most likely to be in the buying mode. Franco's system is part of A. C2C marketing. B. customer relationship management. C. a transactional marketing orientation. D. supply chain management. E. typical production era marketing practices.

B

Georgia, the outside sales rep for a major building supply company, reads a report stating that building permits are down dramatically in her sales territory. She had noticed that things were slowing down, but now she has data confirming her impression. Based on this information, one important function Georgia should provide is A. pushing her customers to buy products whether they need them or not. B. advising the production and purchasing departments to produce or order smaller quantities of products. C. assisting customers in product recall confirmations. D. avoiding contact with competing firms to maximize value-driven marketing. E. estimating profit per sale to determine whether the firm can survive the slowdown.

B

Jenny, the delivery and sales representative for a beer distributor, is calling on a retailer and sees the shelves are almost empty. An unexpected sporting event held nearby resulted in a huge increase in sales. She calls her company's distribution manager and requests a special delivery for her customer. Jenny is providing the important marketing function of A. advising production on how much product to make. B. alerting the logistics department when to ship products. C. advising the customer about new products and markets. D. identifying opportunities to expand. E. synthesizing and interpreting sales, accounting, and customer-profile data.

B

Many entrepreneurs are successful through marketing efforts designed to A. mimic existing products on the market. B. satisfy unfilled needs. C. raise social consciousness. D. gain monopoly power. E. push a new technology even if people aren't ready for it.

B

Marketing provides the critical function of __________ when companies expand globally. A. managing production efficiency B. understanding customers C. managing personnel D. forecasting economic growth E. evaluating government stability

B

Some discount stores put products in large bins and let consumers hunt and find bargains. The price these consumers pay includes A. only the actual price they pay at the register. B. the value of their time and energy. C. the excitement they experience in finding an item they desire. D. the savings to the store of not having to display the products neatly on shelves. E. the time the product was full price and didn't sell.

B

The basic difference between a good and a service is that a good A. provides intangible benefits. B. can be physically touched. C. is always less expensive than a corresponding service. D. generates greater interest among consumers. E. is more quickly forgotten by consumers.

B

The marketing goal of getting the right quantities to the right locations at the right time relates to A. communicating the value proposition. B. supply chain management. C. service marketing. D. capturing value. E. price and performance management.

B

Xavier is analyzing potential market segments. He should carefully seek potential customers who have both an interest in his products and A. a thorough knowledge of his brand messages. B. the ability to buy them. C. knowledge of competing products. D. the ability to negotiate discounts. E. are removed from traditional marketing alternatives.

B

Yesenia, the new university course scheduling manager, is struggling with adjustments to the fall schedule. She is trying to determine how to offer the classes students need at the times when students need them. Yesenia is struggling with the marketing function of A. communicating the value proposition. B. supply chain management. C. creating value. D. capturing value. E. value co-creation.

B

After the previous sales representative in his territory infuriated an important customer, Benjamin visited the customer once a month, never asking for business but hoping to rebuild trust through listening and expressing concern. Finally, after more than two years, the customer gave Benjamin an order. Benjamin was providing the important marketing function of A. advising production on how much product to make. B. alerting the logistics department when to ship products. C. engaging customers and developing long-term relationships. D. identifying opportunities to expand. E. synthesizing and interpreting sales, accounting, and customer-profile data.

C

During the __________ era, manufacturers and retailers began to focus on what consumers wanted and needed before they designed, made, or attempted to sell their products. A. production-oriented B. sales-oriented C. market-oriented D. value-based marketing E. retailing-oriented

C

Greenbelt Construction has been a successful small home-building firm for years. The owner pays subcontractors slightly more than the usual rate for different tasks, reducing the company's gross margin. Greenbelt rarely changes subcontractors, has relatively few complaints from home buyers, and is able to get quick responses from subcontractors when buyers do have problems. Greenbelt is engaged in A. a traditional transactional orientation. B. C2C value-driven marketing. C. effective supply chain management. D. value cocreation. E. a virtual monopoly.

C

Henriette offers financial counseling and management on a fee-only basis. She has found that different customers are willing to pay different rates for her services. This shows that her pricing decisions should depend primarily on A. choosing an average price that she will charge all her clients. B. changes in technology allowing consumers to manage their own affairs. C. how different customers perceive the value of her services. D. changes in the economy. E. how much her competitors charge for similar services.

C

Many firms with complex products have missionary salespeople who assist customers with problems and implementation programs. These salespeople rarely sell products but often become involved in and knowledgeable about specific customers' needs and wants. These salespeople focus on a(n) __________ orientation with their customers. A. transactional B. external C. relational D. internal E. divisional

C

Marketers involved in value-oriented marketing are constantly balancing A. promotional effectiveness with ethical advertising standards. B. the problem of price maximization with cost efficiency. C. customer benefits with costs of their offerings. D. the desire to achieve with the need for a stable source of supply. E. the goal of efficiency with the price charged by competitors.

C

Marketing was once an afterthought to A. accounting. B. economics. C. production. D. finance. E. none of these—marketing was never an afterthought.

C

Marney bought a dress from a retail store. Which core aspect of marketing was Marney most directly participating in? A. Marketing helps create value. B. Marketing is about satisfying customer wants and needs. C. Marketing involves an exchange. D. Marketing can be performed by both individuals and organizations. E. Marketing occurs in many settings.

C

One of the benefits of value-driven marketing is that attention to customer needs and wants will likely result in A. higher prices than the market leader charges. B. increased competition. C. long-term relationships. D. strong connections among competing firms in the marketplace. E. lower prices.

C

The Got Milk advertising campaign, designed to increase consumption of milk, was intended to help market a(n) A. individual. B. firm. C. industry. D. organization. E. specific product.

C

Customer retention programs are based on what concept?

Customer relationships should be viewed from a lifetime value perspective.

After major hurricanes like Katrina, many ethical home repair and building supply businesses continue to charge pre-hurricane prices to their customers, even though due to the huge increase in demand they could charge much more. These firms probably recognize that A. they can make more money from government contracts than from sales to customers. B. a transactional orientation is the key to long-term profitability. C. none of their competitors would be raising prices. D. lifetime profitability of relationships matters more than profits from a particular transaction. E. if they raised prices they would be in violation of Commerce Department regulations.

D

By promoting perfume based on youth, style, and sex appeal, Calvin Klein is attempting to A. influence social norms regarding sexuality. B. encourage consumers to participate in product redesign. C. stimulate supply chain management cooperation. D. increase the perceived value of its products. E. demonstrate social responsibility.

D

Even though they operate from out-of-the-way airports and offer few extra services, discount, no-frill airlines like Ryanair and EasyJet have been successful. Consumers obviously consider A. the schedules these airlines offer to be the most convenient in the industry. B. the long-term relationships established by these airlines to be a critical benefit. C. the prices to be slightly lower, but not low enough to have much influence. D. the benefit of lower prices to be greater than the cost of reduced services and less convenience. E. the major airlines to be worthless.

D

Leah is the marketing manager for an electronics company. While on vacation in Ecuador, she visited electronics stores in the major malls in Quito, the capital city. Most of her company's products were available, except for smart phones. When she returned to work, she mentioned this observation to her international sales manager. Leah was providing the important marketing function of A. advising production on how much product to make. B. alerting the logistics department when to ship products. C. engaging customers, developing long-term relationships. D. identifying opportunities to expand. E. synthesizing and interpreting sales, accounting, and customer-profile data.

D

Many universities provide physical or electronic bulletin boards to facilitate ride-sharing and exchange of used books among students. These bulletin boards increase __________ marketing. A. B2C B. C2B C. B2B D. C2C E. underground

D

The goal of customer relationship management is to A. manage every customer relationship differently. B. manage every customer relationship to maximum short-term profitability. C. eliminate customers who are profitable, but not highly profitable. D. identify and build loyalty among a firm's customers. E. generate relationships with all of a firm's customers.

D

The importance of supply chain management is often overlooked in the study of marketing because A. marketing has no responsibility for supply chain management. B. supply chain management doesn't add much value for customers. C. companies do not want customers to know anything about the supply chain. D. many of the activities take place behind the scenes. E. supply chain management is already transparent.

D

To become a more value-driven organization, Pokrah University is holding regular coffee-hour discussions with its students and surveying its graduates regarding students' educational needs and desires. Pokrah University is becoming more value driven through A. sharing information across the organization. B. balancing its customers' benefits and costs. C. evaluating strategic competitive partnerships. D. building relationships with customers. E. keeping the faculty members happy.

D

Trey sells consumer electronics. He knows his customers weigh the costs versus the benefits associated with the different options available. He decides which products to offer and what prices to charge based on the way his customers think. Trey operates as if he were in the __________ era. A. production-oriented B. sales-oriented C. market-oriented D. value-based marketing E. retailing-oriented

D

Which of the following is a core aspect of marketing? A. satisfying as many needs as possible B. creating a product that everyone will want to buy C. setting prices lower than all competitors D. making product, place, promotion, and price decisions E. increasing the company's profit

D

Christie has just started with a travel agency, and she has been offering clients and prospective clients a range of packaged tours. She is concerned, because the commissions she is earning on her sales are lower than she had hoped. Her colleague Peter, who has been with the agency for several years, is having a great deal of success by working closely with the clients, seeking their ideas, and building customized tour packages for each one based on their suggestions. Peter's approach is based on A. transaction-oriented marketing. B. premium pricing. C. his seniority at the firm. D. special incentives from tour operators. E. value co-creation.

E

In the broadest terms, the marketplace refers to A. wholesale and retail environments. B. brick-and-mortar stores and the Internet. C. the four Ps. D. channels that are accessible to a given customer. E. the world of trade.

E

Marketing involves all of the following EXCEPT A. conducting exchanges. B. satisfying customer needs and wants. C. creating value. D. efforts by individuals and organizations. E. production scheduling.

E

Value is A. the lowest cost option. B. represented by brand names. C. the highest priced alternative. D. everyday low prices. E. what you get for what you give.

E

When considering career choices in marketing, many students overlook supply chain management because A. it is considered too quantitative. B. marketing has no responsibility for supply chain management. C. companies generally outsource these activities, so there are rarely supply chain jobs available. D. it only takes place in large, urban areas. E. many of the activities take place behind the scenes.

E

When referring to exchange, marketers are focusing on A. the location where products and services are traded. B. the price charged, adjusted for currency exchange rates. C. location-based tactics for creating value. D. promotional offers designed to stimulate barter. E. the trading of things of value.

E

Which element of the marketing mix is most relevant to the activity "delivering value"? A. promotion B. purchasing C. product D. price E. place

E

Approximately half of U.S. companies now use social media tools for marketing purposes.

False

Entrepreneurial companies are unable to control their marketing mixes.

False

Marketing's fundamental purpose is to create value by developing a variety of offerings that will earn income for the company.

False

Over the past decade or so, marketers have begun to realize that it is best to structure a firm's customer orientation in terms of transactions rather than relationships.

False

T/F Marketing is an activity that only large firms with specialized departments can execute.

False

Which of the following is the third step in the strategic marketing planning process? A. Define the business mission. B. Identify and evaluate opportunities. C. None of these. D. Implement marketing mix and allocate resources. Situation analysis

Identify and evaluate opportunities.

The global athletic footwear market is expected to experience only very slow growth over the next several years. Nike is the market leader, with a market share of approximately 33 percent. According to Boston Consulting Group portfolio analysis, how should Nike treat its athletic shoe business?

Nike's athletic shoe business still requires some investment, but is likely to produce excess resources

Effective marketing doesn't just happen." It is:

Planned

Which of the following is the best way to build a sustainable competitive advantage using product excellence

Positioning the product using a clear, distinctive brand image.

Subway is a large chain of franchise sandwich shops. Marcia owns three Subway stores in a large city. At the end of the year, she notes that sales rose from two to five percent over last year's sales at Stores 1 and 2, but fell two percent at Store 3. Based on this information, how should Marcia reward (or punish) her store managers?

She should seek more information about why the stores had different results before making a decision

Buffalo Wild Wings suggests that its diners check in to its locations using their phones. This demonstrates the use of social media to market a product.

True

Firms become value-driven, in part by focusing on the competition.

True

Firms have come to realize that good corporate citizenship through socially responsible actions should be a priority because it will help their bottom line in the long run.

True

Foursquare is an example of a location-based social media application.

True

Garage sales and online classified ads are examples of C2C marketing.

True

Good marketing is NOT a random activity.

True

In value co-creation, the customer participates in the creation of a good or service, which provides additional value to the customer.

True

Margo likes her morning coffee, and she always stops at Starbucks because it is on her way to work. Margo is being influenced by the place element of the marketing mix.

True

Marketers might wish to sell their products to everyone, but it is not practical to do so.

True

The trade of things of value between the buyer and the seller so that each is better off as a result is known as an exchange.

True

Understanding a customer's needs and wants is fundamental to marketing success.

True

When a good or service is promoted, the purpose of the promotion is to inform, persuade, or remind customers.

True

Over the last few months, Juan and his colleagues have analyzed the current business situation, and then identified target markets for his firm's personal care products. Finally, they developed the products, prices, distribution and promotion that should appeal to each of those target markets. In doing so, Juan has also identified what he believes is an advantage his competitors cannot match. Juan and his colleagues have been developing

a marketing strategy

Zara is a women's clothing retailer headquartered in Spain, with stores located in many countries. Zara has developed a "quick response" system that allows store merchandise to be adjusted rapidly to fit changing customer preferences. Every aspect of Zara's operation is optimized for this system, making it difficult for competitors like The Gap to duplicate. Zara has established

a sustainable competitive advantaeg

When a pharmaceutical company develops a new medication, it typically applies for a patent in order to prevent competitors from developing copycat products for several years. Pharmaceutical companies apply for patents in order to establish

a sustainable competitive advantage

Starbucks has developed a number of metrics beyond purely financial metrics. Knowing the importance of perceptions and knowing the importance of developing ways to demonstrate its activity, Starbucks tries to find clear ways to: A. build brand equity. B. demonstrate its sense of corporate social responsibility. C. address concerns of opponents at local, regional, national and global levels. D. help consumers to feel better about their purchases. E. All of these.

all of these

Allen is in the marketing department of a mid-sized firm that develops and sells communications systems. He is proud of the Human Resources area in the company that provides the firm with excellent employees. Allen himself really enjoys his work, but he knows the work of HR helps create an advantage for the firm because: A. customers appreciate the kind of service that knowledgeable employees provide. B. employees play a major role in the success of the firm. C. it is easier to communicate with and inspire the customer if the employees believe in what the firm is doing. D. building customer loyalty depends on a committed workforce. E. All of these

all of these

Brad is reviewing the performance of his Subway sandwich store. As a franchisee, he has access to comparative data from other stores. Brad will likely look at data for other stores to help him to evaluate his performance. A. sales B. gross margin C. number of customers D. coupon redemption E. all of these

all of these

Marketers want their firms to develop efficient operations because this kind of efficiency: A. usually leads to lower prices or greater pricing flexibility. B. allows the firm to offer greater value to customers. C. makes it easier to get the products customers want to them when they want them. D. can lead to more attractive margins. E. All of these.

all of these

Portfolio analysis is a useful and powerful tool, but firms often need to take a more balanced approach because: A. measures are difficult to obtain and project. B. classifications can become self-fulfilling prophecies and strengths and weaknesses are distorted. C. substitute approaches can offer different insights. D. All of these. E. None of these.

all of these

The goal of a customer excellence strategy is to gain loyal customers. Customer loyalty can be developed through A. having a strong brand B. offering unique merchandise C. providing superior customer service D. all of these none of these

all of these

The idea of value-based marketing requires firms to charge a price that

captures the value customers perceive that they are receiving.

In BCG portfolio analysis, products in low-growth markets that have received heavy investment and now have excess funds available to support other products are called

cash cows

Marketers want their firms to develop excellent supply chain management and strong supplier relations so they can

create a sustainable competitive advantage

Fourteenth National Bank prides itself on offering better service than any of its competitors. If this is accurate, and if customers recognize and value Fourteenth National's superior service, the bank creates and delivers value through

customer excellence

Anita has gone to the same hair salon for the past ten years. She believes that her stylist, the salon owner, does a better job of cutting and styling her hair than anyone else could. Other salons have opened closer to Anita's home, some offering more plush facilities or lower prices, but she isn't tempted to switch. Anita's attitude toward the salon is an example of

customer loyalty

In mid-2010, Hewlett-Packard Company (HP) acquired Palm Computing, Inc., a manufacturer of personal devices and smart phones. Before deciding to acquire the company, strategic planners at HP spent time thinking about how Palm and HP would "fit" together, and how the acquisition might change HP's core goals and objectives. The strategic planners were engaged in the__________step of the strategic marketing planning process

define the business mission

A regional manager at GNC, a chain of retail stores selling nutritional supplements, is reviewing sales data after a recent in-store promotion. The data show success in some stores and limited response in others. The manager will probably next review the company's

implementation programs, to see if the promotion was handled consistently in the different stores

Sodexo is a corporation that manages school cafeterias, university dining halls, mess halls at military bases, concession stands at sports arenas, and other large-scale food service facilities. If Sodexo were to begin to sell individual frozen meals in supermarkets, it would be pursuing a_________growth strategy

diversification

Lionel is asked to conduct an STP analysis for his firm. The first step he should perform in this analysis is to

divide the marketplace into subgroups

1. Craig sees that his company's quarterly sales and profits are significantly above projections and says, "That's great. Let's keep doing what we've been doing." Craig is ignoring the____________step of the marketing planning process.

evaluate performance

When firms successfully implement poor strategies (perhaps due to good luck) or do a poor job of implementing good strategies, it can be difficult to

evaluate performance and make adjustments

Carla has been directed by her regional marketing manager to cut prices on seasonal items, submit an ad in the local paper, and tell distributors to reduce deliveries for the next month. Which step of the strategic marketing planning process is Carla engaged in?

implement marketing mix and resources

Most banks now have customer relationship software which, when a customer contacts the bank, tells the service representative what types of accounts, loans, and credit cards the customer currently has. Service representatives use this information to sell some of the other services the bank currently offers to these customers. This is a_________growth strategy

market penetration

For many years, Southwest Airlines distinguished itself as the low-cost airline. Now, many other low- cost competitors have entered the market. Similarly, Southwest was one of the first airlines to offer online ticketing. Now, all airlines have online ticketing. These examples suggest that

no single strategy is likely to be sufficient to build a sustainable competitive advantage

For U.S. businesses with strong export capabilities, expansion of U.S. trade agreements with other countries creates

opportunities

Samantha is charged with assessing her company's external environment as part of a SWOT analysis. Samantha will study her company's

opportunities and threats

In a SWOT analysis, increasing gasoline prices would represent a potential for manufacturers of electric cars

opportunity

After defining the business mission, what should a firm do next to develop a marketing plan?

perform a situation analysis

E-books, in addition to being an alternative product form, provide___________value creation since they can be downloaded via the Internet immediately when they are needed

place

In recent years, cellular (mobile) service providers have worked hard to eliminate "dead zones," providing customers with service wherever they traveled. By working to make the network available in more locations, cellular service companies were focusing on_________value creation.

place

Delta Airlines is among the companies experimenting with selling products and services on their Facebook pages. The idea is to make purchasing even easier for customers who may spend large portions of the day with Facebook active on their computers or mobile devices. There is no need even to navigate to Delta's website--users can book a trip in Delta's "Ticket Agent" application without ever leaving Facebook. Which element of the marketing mix does this represent?

place and blue delivery

Coca-Cola sells two different zero-calorie versions of Coke: Diet Coke and Coke Zero. It has chosen to attempt to appeal to men with Coke Zero. In addition to launching an ad campaign featuring men enjoying Coke Zero, Coca-Cola also designed a "masculine" looking can for Coke Zero, with bold red lettering on a black background. This specially-designed can is an example of:

positioning

LeBron James, Alex Rodriguez, and other athletes are paid huge sums of money by companies for celebrity endorsements. If, endorsements by these athletes create a clear understanding among consumers of the companies' products, they can help with the firm's___________strategy

positioning

___________involves the process of defining the marketing mix variables so that target customers have a clear, distinctive understanding of what a product does or represents in comparison with competing products.

positioning

A former advertising campaign for Geico Insurance used the slogan, "So easy, even a caveman could do it" to emphasize the ease of buying insurance on Geico's website. This campaign was part of Geico's

positioning strategy

Imagine that you are in a convenience store choosing your favorite "comfort" food instead of being in a classroom taking this test. You might notice the packaging, colors, labels, even the fonts used on labels. All of these efforts are part of the marketer's:

positioning strategy

Many small businesses whose competitors are national franchises advertise "we are locally owned" or "we have been here since 1951." This is part of these firms':

positioning strategy

Singapore Airlines seeks to differentiate itself from competing airlines, in part through innovative design of its airplane seats and in-flight entertainment systems. Through continuous innovation in these areas, Singapore Airlines is pursuing a_____________ macro strategy

product excellence

Suppose your university made a sizable investment in its career services--additional counselors, increased efforts to bring in recruiters, and other services aimed at helping students to find jobs. This investment would enhance the university's in an attempt to create value for students and recent graduates

product strategy

In order to effectively communicate value to target markets, marketers must first

understand their customers

After conducting STP analysis for her custom auto parts store and developing strategies for each of the four Ps, Monique now has to make______________decisions.

resource allocation

The first objective in the Evaluate Performance phase of the marketing planning process is to:

review implementation programs and results using metrics.

Which of the following is NOT one of the four major growth strategies marketers typically utilize? A. market penetration B. market development C. segment development D. diversification E. product development

segment development

Fernando was thrilled to find out that his company had just decided to invest a great deal of money in the product he was managing. He knows that even with its recent high rate of growth and the fact that it dominates its market, he would need more money to establish it firmly. Using the BCG portfolio analysis, his product would be classified as a(n):

star

Even when large discount retailers enter a market, a few small, local retailers survive and prosper. These small retailers have probably developed a(n)_____________that allows them to survive.

sustainable competitive advantage

The automobile manufacturing industry closely watches annual consumer satisfaction surveys. For years, Japanese car companies consistently had the highest levels of customer satisfaction, creating a___________for these companies

sustainable competitive advantage

For years, when considering new products, marketers at Celestial Seasonings asked themselves, "What would Stacy think?" Stacy was a fictional character representing 25-50 year old, educated, upper- income women who rarely watched television but did a lot of reading. "Stacy" represented Celestial's primary

target market segment

After identifying various market segments that her company could pursue, Lisa evaluated each segment's attractiveness based on size, income, and accessibility. Lisa was involved in

target marketing

When positioning products relative to competitors' offerings, firms typically are most successful when they focus on opportunities

that build on their strengths relative to those of their competitors

Heather has been assessing a number of her firm's products using the Boston Consulting Group approach to portfolio analysis. She has been trying to assess the strength in a particular market and is looking at the sales of

the product's relative market share.

In 2006, Ford Motor Company announced it would severely cut back automobile production. For parts companies supplying Ford Motor, this represented a(n):

threat

In its discussion of Nike and adidas, two major athletic shoe manufacturers, the text mentions that Nike has purchased Umbro, a sports brand that has appealed mainly to soccer (European football) enthusiasts in the past. This action suggests that Nike intends to compete head to head with adidas, which got its start designing soccer shoes. On a SWOT analysis for adidas, how should Nike's acquisition of Umbro be categorized?

threat

Manufacturers who use just-in-time manufacturing systems coordinate closely with suppliers in order to ensure that materials and supplies arrive just before they are needed in the manufacturing process. While just-in-time systems can offer major advantages in terms of inventory costs, they must be carefully managed. If a firm found that its just-in-time system was badly managed, leading to frequent manufacturing delays due to missing parts, this would represent a __________ in a SWOT analysis

weakness

A recent poll conducted by Time magazine found that 38 percent of U.S. consumers A. actively tried to purchase from companies they considered responsible. B. didn't care if a company acted responsibly. C. were concerned with social responsibility, but not the ethical behavior of a company. D. purchased from companies they perceived to be ethical or not ethical equally. E. had no idea if the companies they purchased from were responsible.

A

After a firm has identified the various stakeholders and their issues and gathered the available data, all parties relevant to the decision should engage in brainstorming and evaluation of alternatives. __________ then review and refine these alternatives, and choose a course of action. A. Managers B. The firm's lawyers C. Key customers D. Community leaders E. All stakeholders

A

For every consumer who purchases a pair of TOMS shoes for $55.00, the company promises that a needy child will receive a pair of shoes. TOMS shoes is actively engaging in A. corporate social responsibility. B. business ethics. C. marketing ethics. D. environmental marketing. E. overpricing its products.

A

Garrett has just purchased a beer distributorship. He wants to increase the visibility of his firm in local markets, but he knows there are a number of regulations and socially accepted practices associated with promoting alcoholic beverages. According to the Framework for Ethical Decision Making, the first thing Garrett should do is to A. identify issues that need to be addressed. B. promote the firm's corporate social responsibility efforts. C. gather information and identify stakeholders. D. brainstorm and evaluate alternatives. E. choose a course of action.

A

Hisaoki picks up the local newspaper and reads a stinging letter to the editor criticizing his beverage company for supporting a sporting event for handicapped children. The letter writer is critical of a banner displayed at the event, with the logos of alcoholic beverages and Hisaoki's company name. Hisaoki never considered that this problem might arise. In the Framework for Ethical Decision Making, Hisaoki's company failed to A. identify issues. B. promote the firm's corporate social responsibility efforts. C. analyze the needs of the industry. D. brainstorm and evaluate alternatives. E. choose a course of action.

A

How might a technology company like Apple ensure that it behaves in a socially responsible way toward its customers? A. By protecting the privacy of personal information collected on its website. B. By adhering to government-mandated safety standards in its stores. C. By ensuring that it pays its employees fairly. D. By ensuring that its packaging materials are recyclable. E. Social responsibility isn't relevant where customers are concerned; it has to do with serving society as a whole.

A

If Melissa decides to sell the best ice cream on earth, and intends to establish a strong ethical climate in her organization, during which phase of the strategic marketing planning process should she introduce ethical considerations? A. Planning B. Implementation C. Control D. Experience E. Ethics

A

In a recent Gallup survey, which of the following professions was rated lowest in ethical standards? A. car salespeople B. lawyers C. senators D. real estate agents E. medical doctors

A

The Henry Ford Health System (a health care provider) has set strict limits for pharmaceutical representatives, and will no longer allow doctors in its system to accept free lunches, gifts, or other perks from the pharmaceutical representatives. The Henry Ford Health System probably established this policy because A. it reduces the possibility that the Henry Ford Health System might make unethical purchasing decisions. B. it ensures that the Henry Ford Health System is both ethical and socially responsible. C. it increases the Henry Ford Health System's socially responsible behavior. D. it ensures that the Henry Ford Health System is socially responsible, but not necessarily ethical. E. it was trying to save money.

A

The Johnson and Johnson Credo acknowledges the company's responsibility to A. users of its products, its employees, the community, and its stockholders. B. its stockholders first, its managers, its employees, and its suppliers and vendors. C. domestic markets, other countries in the developed world, and finally countries in the developing world. D. users of its products, the researchers who develop the products, regulators, and its stockholders. E. doctors, nurses, insurance companies, and users of its products.

A

Denny is considering the question, "Did our actions have a negative impact on any stakeholder group?" Denny is addressing marketing ethical issues in the __________ phase of the strategic marketing planning process. A. planning B. control C. implementation D. brainstorming E. situation analysis

B

During the __________ phase of the strategic marketing planning process, marketers use systems to check whether each potential ethical issue raised in earlier phases was addressed. A. implementation B. control C. planning D. assessment E. social responsibility

B

Many corporations are shifting from defined benefit to defined contribution retirement programs. When considering changes to retirement programs, the primary stakeholders are the A. shareholders. B. employees. C. customers. D. marketing managers. E. competition.

B

Rock-Bend Company is considering buying out a competing firm and closing most of the competitor's factories. The firm has identified the various stakeholders and their issues and gathered the available data. Everyone with an interest in the issue has engaged in brainstorming and evaluation of alternatives. Management reviewed and refined the alternatives, and then chose a course of action. If the managers are not confident about the decision, they should A. lower their offering price for the competing firm. B. reexamine their alternatives. C. consult customers. D. trust their instincts and move forward. E. choose the least risky option.

B

The Ethical Decision-Making Framework includes all of the following steps EXCEPT A. identify issues. B. promote the firm's corporate social responsibility efforts. C. gather information and identify stakeholders. D. brainstorm and evaluate alternatives. E. choose a course of action.

B

When Bernie Ebbers, WorldCom's CEO, was convicted of financial crimes, WorldCom was forced to merge with MCI. One of the ramifications of this merger was the loss of WorldCom's sponsorship of the Sea Pines Heritage PGA golf tournament. The tournament funds the Heritage Foundation, a major community charity. This example illustrates A. the need to identify issues. B. that the impact of unethical actions can reach far beyond the corporation. C. that unethical firms cannot be socially responsible. D. the lack of information needed to make ethical decisions. E. the questionable advantage of social responsibility.

B

________ refers to the moral or ethical dilemmas that might arise in a business setting. A. Marketing ethics B. Business ethics C. Social irresponsibility D. Corporate responsibility E. Institutional ethics

B

Being socially responsible is generally considered A. a good thing to do only if a company is profitable. B. inappropriate for most firms in today's challenging markets. C. beyond the norms of corporate ethical behavior. D. a necessary part of every firm's strategy. E. the responsibility of corporate-sponsored foundations that can effectively concentrate a firm's good deeds.

C

Compared to the average company, firms with strong ethical climates tend to A. employ more business development consultants. B. offer more goods and services. C. be more socially responsible. D. invest more in sales training software. E. have higher turnover.

C

Every year, General Mills issues a report discussing how the firm has performed against its own standards of ethical conduct. This report is part of General Mills' __________ phase of its strategic marketing planning process. A. planning B. implementation C. control D. evolution E. marketing mix

C

How did Johnson and Johnson recently respond to new limits on acetaminophen dosages? A. It changed the dosages to significantly lower levels. B. It didn't do anything and waited to see if there would be a problem with its products. C. It reminded people not to take more than the recommended dosage. D. It pulled all Tylenol products off the shelf until it could be sure it wasn't causing problems for consumers. E. It changed its packaging to reflect the new standards.

C

How might a technology company like Apple ensure that it behaves in a socially responsible way toward its employees? A. By paying at least minimum wage when the law requires it. B. By adhering to government-mandated safety standards in the workplace. C. By ensuring that pay practices are fair at all levels of the company. D. By ensuring that its packaging materials are recyclable. E. Social responsibility isn't relevant where employees are concerned; they are paid for their work and that's enough.

C

Jacqueline was pleased to read a paraphrasing of the Golden Rule, "Do unto our customers as you would have them do unto you," as part of her new employer's mission statement. Next, Jacqueline expects to find in the firm's employee handbook A. a summary of recent Supreme Court business ethics cases. B. a statement that she needs to decide how the Golden Rule applies to her job on her own, without any influence from her employer. C. explicit rules governing all the firm's transactions. D. a list of employee concerns. E. a list of benefits offered to employees.

C

Multinational corporations are recognizing their responsibility to the people who make their products A. when public attention might embarrass the corporation. B. if the local government suggests that the company pay bribes to officials. C. even if they aren't their employees. D. unless another firm actually employs the workers. E. when it suits them financially.

C

Policing potential violations of human rights and child labor laws is an important component of A. planning. B. implementation. C. the mission statement. D. control. E. social responsibility.

C

The Harvest County School Board is concerned about deteriorating school facilities, combined with a shrinking budget. The board began by studying the issue, and then identified parents, children, teachers, staff, and taxpayers as groups who have a vested interest in the problem. The school board has listened to each group's concerns. In the Ethical Decision-Making Framework, its next action should be to A. identify issues of concern to lawmakers. B. assess impact of its actions beyond the classroom. C. engage in brainstorming and evaluate alternatives. D. choose a course of action.

C

When auditing expenses claimed by the university president, the auditors found extravagant spending on $1,000 per night hotels, banquets, and gourmet restaurants. The president was fired, alumni donations declined, and staff members—who were disturbed by the extravagance while staff salaries were frozen—quit their jobs. This example illustrates A. that universities are more corrupt than companies. B. that the extravagant spending should have been kept quiet to minimize damage to the university. C. that the impact of unethical actions can affect the organization in unanticipated ways. D. the need to identify issues. E. the lack of information needed to make ethical decisions.

C

STP refers to segmentation, testing, and promotion

False

A meat packing company discovers that six months ago it unknowingly distributed meat from a cloned cow. The firm is unaware of any specific risks to humans consuming the meat; however, some scientists have raised questions, and some consumers are afraid of possible future problems. The meat company has to decide whether to make this matter public. How should it begin the process of making an ethical decision? A. Brainstorm the available alternatives. B. Ask its managers to vote for or against public disclosure. C. Let the board of directors decide what to do. D. Identify the issues raised by the situation. E. Find out who purchased the meat, and offer them refunds in return for their silence.

D

After a firm has identified the various stakeholders and their issues and gathered available data related to an ethical decision-making situation, __________ should engage in brainstorming and evaluation of alternatives. A. the senior managers most involved B. key customers C. elected officials D. all parties relevant to the decision E. any individuals with competing interests

D

Alicia has been asked to approve a marketing campaign that, although it is not illegal, promotes food products to children. She is concerned that the food products are not particularly nutritious, although they are not as bad for children as some others sold by competitors. She reviews the tests in the Ethical Decision-Making Metric, and she decides her best course of action is to A. ignore the metric as unworkable, since the campaign might pass some of the tests and fail others. B. consider the profit potential first; then explore the vague tests in the metric. C. not worry about the children; their parents are likely to make the buying decision, and they should be able to decide for themselves. D. put the campaign on hold while she explores with the staff how they approached the ethical issues. E. consult the firm's code of ethics for guidance and leave personal ethical considerations out of the decision-making process.

D

How might Starbucks ensure that it behaves in a socially responsible way toward members of its supply chain? A. By paying its employees minimum wage as required by law. B. By using cups made from recycled paper. C. By offering healthy drinks and snacks in its stores. D. By purchasing coffee beans from suppliers who pay coffee growers a fair price. E. Social responsibility isn't relevant where channel partners are concerned; it has to do with serving society as a whole.

D

Ironically, while the leaders of Enron Corporation were manipulating the company's finances for their personal benefit, the company was a major donor to Houston area charities. Enron had unethical business practices, but was also A. practicing marketing ethics. B. falsifying the company's finances through charitable donations. C. creating a local ethical business climate. D. demonstrating corporate social responsibility. E. manipulating the public sentiment for its own benefit.

D

The sale of products that may damage the environment, the use of sweatshop labor, and the marketing of dangerous products are examples of A. internal, controllable marketing issues. B. issues that don't even need to be discussed in ethical firms. C. marketing issues but not ethical issues. D. marketing ethical issues. E. ethical issues but not marketing issues.

D

When making decisions, managers often have to decide between doing what is beneficial for them (and possibly the firm) in the short run, and doing what is right and beneficial for the firm and for society in the long run. To address this conflict, a firm A. must evaluate its quarterly profit statement from an ethics standpoint. B. must state its long-term goals in general terms, so as to not interfere with managers' short-term goals. C. must always put society's needs ahead of the firm's needs. D. must ensure that long-term goals of the firm are aligned with the short-term goals of each individual within the firm. E. should adhere rigidly to legal standards in its industry.

D

The "Implement Marketing Mix" step of the strategic marketing planning process is part of the control phase

False

Relative market share is an example of a marketing metric.

True

After a firm has identified the various stakeholders and their issues and gathered available data related to an ethical decision-making situation, all parties relevant to the decision should engage in A. legal discourse. B. a vote, with the majority deciding the best course of action. C. reidentification of issues. D. choosing a course of action. E. brainstorming and evaluation of alternatives.

E

Darwin's company is facing a difficult ethical issue. The firm has identified the various stakeholders and their issues and gathered the available data. Everyone with an interest in the issue has engaged in brainstorming and evaluation of alternatives. Management reviewed and refined the alternatives. It should now choose the course of action that A. maximizes profits. B. creates the least possible publicity. C. involves the fewest employees. D. minimizes costs. E. seems best after weighing the concerns of all stakeholders.

E

Many executives and corporate boards of directors do not perceive social responsibility as part of their mission or responsibility. These business leaders consider corporate social responsibility to be A. a basic requirement of any business. B. the equivalent of the AMA ethical value, "Do no harm." C. the key to operational effectiveness. D. a component of basic business ethics. E. beyond the norms of corporate ethical behavior.

E

New real estate disclosure regulations require sellers and their agents to tell prospective buyers about any existing problems. Previously, they were only expected to answer buyers' questions. The new regulation addressed the marketing ethical problem of A. high-pressure sales techniques. B. deceptive pricing tactics. C. misrepresentation of company data. D. misleading advertising. E. withholding information.

E

The Johnson and Johnson Credo A. was a response to the Tylenol incident. B. proved ineffective when the company needed to act in the Tylenol crisis, which was a clear lesson to other companies to update similar documents. C. was copied by all other pharmaceutical companies. D. offers an extremely detailed description of potential problems for the company. E. has guided the firm since it was written in the 1940s.

E

When Toyota owners began to report problems with sticking accelerator pedals and non-functioning brakes, Toyota at first ignored or rejected the claims. Eventually, the company evaluated the issue and did a recall. Which of the four steps of the Ethical Decision-Making Framework was Toyota performing when it recalled several of its 2007-2010 models? A. assess risk B. identify issues C. gather information and identify stakeholders D. brainstorm and evaluate alternatives E. choose a course of action

E

A mission statement describes the specific actions a firm will take to achieve its goals

False

BlendMate, a firm that manufactures high-end blenders, donates $10 per blender sold to a local food bank. This is a form of corporate social responsibility.

False

Brainstorming in the Ethical Decision-Making Framework occurs immediately following the identification of issues.

False

Ethos Water donates 2 percent of its profits to children in need of clean water. This action demonstrates that Ethos Water is a firm with a strong ethical climate.

False

If a U.S. clothing brand buys from overseas suppliers who manufacture clothing using child labor, this is the supplier's problem, and the U.S. company has no reason to be concerned.

False

Merck and Co., having learned from the Johnson and Johnson Tylenol incident, was quick to respond when the first reports of problems with Vioxx arose.

False

Pepsi has cooperated with America on the Move to improve many of its products and their labels, such as reducing the saturated fat in its Frito-Lay's Ruffles. This form of social responsibility most directly affects shareholders.

False

Ronald McDonald Houses are a form of environmental social responsibility.

False

The idea that corporate social responsibility is unnecessary because the goal of any corporation is simply to make a profit has been thoroughly discredited and is no longer supported by economists or business people.

False

The process of creating a strong ethical business climate begins with the front-line employees who interact directly with customers.

False

Tipco Computer Company decided to market its tablet computers to preschoolers, even though the tablets were better suited for much older children. This potentially unethical activity takes place during the control phase of the strategic marketing planning process.

False

An example in the text describes a campaign by Molson Brewery that involved a Facebook campaign targeted toward college students. It was criticized for encouraging underage drinking. This occurred during the implementation phase of the strategic marketing planning process.

True

Badger Hardware was planning to raise the pay of its managers but not its front-line employees. To determine the potential ethical issues, it should first identify the issues involved so that it can gather facts related to those issues.

True

Ethical issues are likely to arise at each stage of the strategic marketing planning process.

True

Firms with strong ethical climates tend to be more socially responsible.

True

Geraldo manages the electrical turbine engine division of General Electric Corporation. He makes most decisions independently, without consulting headquarters. Geraldo manages a strategic business unit.

True

It is not always necessary to go through all the steps in the marketing planning process.

True

Marketers are frequently singled out for criticism related to trust, in part because they interact directly with people.

True

Marketers can introduce ethics at the beginning of the planning phase of the strategic marketing planning process by including ethical statements in the firm's mission or vision statements.

True

Marketing has been singled out as the root cause of a host of ethical problems in business.

True

Once the marketing strategy is implemented, controls must be in place to be certain that the firm has actually done what it has set out to do.

True

Sandisk's MP3 player product line (called the Sansa) has a low relative market share. The MP3 player market is expected to decline over the next few years. In BCG portfolio analysis, the Sansa would be considered a dog

True

Short-term profit decisions can cause firms to lose customers in the long run.

True

Stakeholders typically include the firm's employees and retired employees, suppliers, the government, customer groups, stockholders, and members of the community in which the firm operates.

True

Strong supplier relations and efficient supply chains help firms such as Walmart to achieve operational excellence.

True

iTunes software is often credited for the success of the Apple iPod MP3 player, because it made the iPod easier to use than competing players, and was difficult for competitors to duplicate. This is an example of a sustainable competitive advantage

True

Nordstrom's, an upscale department store, has a well-known reputation for going the extra mile to serve its customers. This reputation for excellent customer service has probably resulted in

a sustainable competitive advatage

When Ramona, the keynote speaker at a major business leaders' conference, arrived in the middle of the night at the Ritz-Carlton, she was exhausted and her suit was wrinkled from her ten-hour plane trip. The night clerk found someone to dry clean Ramona's suit and have it ready for her morning presentation. She has been a loyal Ritz-Carlton customer ever since. In this example, Ritz-Carlton demonstrated the macro strategy of

customer excellence

Firms achieve____________through efficient procedures and excellent supply chain management.

operational excellence

Which of the following is NOT one of the four overarching strategies to create and deliver value and to develop sustainable competitive advantage?

planning excellence

If a firm wants to develop a sustainable competitive advantage, it should

examine its operations and customer relations to identify significant things competitors cannot easily copy

Firms are typically more successful when they focus on opportunities that build on their competitors' strengths

false

Product penetration is one of the four major growth strategies

false

The components of a SWOT analysis are Strengths, Weaknesses, Opportunities and Tactics

false

The marketing planning process always proceeds sequentially through the five steps.

false

To build a sustainable competitive advantage, companies should focus on a single strategy

false

Some banks have begun offering special accounts designed to attract junior high school students. These kids save in such small amounts that the accounts cost banks more to maintain than they are worth. But bankers know that consumers are creatures of habit and hope that the young people they serve now will become adult customers. These banks recognize

the lifetime value of customers