MG 354 Exam 1

Marketing information systems rely heavily on: a. information gathered by salespeople. b. customer surveys. c. teamwork between IT experts and marketing managers. d. direct observation of customers. e. marketing research departments.

teamwork between IT experts and marketing managers.

Which of the following is least likely a result of shifts in the cultural and social environment? a. Domino's Pizza finds that demand for pizza delivered at home has expanded as more consumers are willing to pay for more convenience. b. A toy manufacturer recalls a playpen with a defective latch and Toys 'R' Us stores remove them from the shelf. c. Haagen-Dazs introduces a nonfat yogurt that is also "low cal." d. Sony recruits more women graduates for sales management positions. e. BMW builds its new plant in South Carolina because of the willingness of "Sun Belt" workers to put in a "full day's work."

A toy manufacturer recalls a playpen with a defective latch and Toys 'R' Us stores remove them from the shelf.

The Pure Food and Drug Act: a. was the first consumer protection law. b. was passed by Congress in 1906. c. shifted the focus from "let the buyer beware." d. bans the shipment of unsanitary products. e. All of these are correct.

All of these are correct.

Which of the following is an example of the cultural and social environment? a. Growing acceptance of women in business. b. Growing popularity of exercise. c. Increased desire for satisfaction with life. d. All of these are examples of the cultural and social environment.

All of these are examples of the cultural and social environment.

A S.W.O.T. analysis includes: a. strengths. b. weaknesses. c. opportunities. d. threats. e. All of these are included in a S.W.O.T analysis.

All of these are included in a S.W.O.T analysis.

"Promotion" may include: a. personal selling to channel members. b. point-of-purchase materials. c. mail-order selling. d. advertising on the Internet. e. All of these may be included in Promotion.

All of these may be included in Promotion.

In the short run, a marketing manager usually cannot control: a. the competitive environment. b. the cultural environment. c. the legal environment. d. the economic environment. e. Any of these environments are uncontrollable in the short run.

Any of these environments are uncontrollable in the short run.

In the U.S., which population groups will fuel new opportunities in tourism, healthcare and financial services? a. Baby boomers and seniors b. Generation X and Generation Y c. Singles and newly divorced d. Generation Y and Generation Z e. Baby boomers and baby busters

Baby boomers and seniors

The current U.S. population is largest in which of the following states? a. California. b. Florida. c. Illinois. d. New York. e. Texas.

California.

Which of the following is an element of the direct market environment? a. Competitors b. Economic environment c. Demographic trends d. Technological environment e. Cultural environment

Competitors

The recent interest in physical fitness has forced producers of food, clothing, and other products to reconsider their marketing strategies. Which of the following does this trend illustrate? a. Economic and technological environments. b. Cultural and social environment. c. Existing business situation. d. Political and legal environment. e. Resources and objectives of the firm.

Cultural and social environment.

What is the purpose of the five-step marketing research process? a. Define and solve a problem. b. Design, implement, and control marketing plans and activities. c. Narrow down a broad generic market into useful target markets. d. Identify the main steps in the consumer decision process. e. Help marketers choose between consumer markets or B2B markets.

Define and solve a problem.

What is the likely advantage of using online focus groups in marketing research? a. People may not feel free to express their honest thoughts in groups. b. The results of the research can be measured objectively. c. Domination of the group by an aggressive individual is less likely to happen. d. The participants are always the representative of the broader target market. e. Conclusions of a session do not vary depending on who watches it.

Domination of the group by an aggressive individual is less likely to happen.

A manager shouldn't be criticized for making an unethical marketing decision unless the ethical breach was intentional. True or False

False

All marketing research projects are worthwhile because they gather new information-even if the research doesn't have action implications. True or False

False

As compared to larger competitors, smaller firms benefit from lower unit costs which they achieve with lower sales volumes. True or False

False

Good marketing objectives should be ambitious and almost impossible to achieve. True or False

False

Gross domestic product is the total dollar value of a country's exports during a one year period. True or False

False

In monopolistic competition, one firm completely controls a broad product-market. True or False

False

Many people think that it is unethical to spy on competitors to obtain their trade secrets, but it is perfectly legal. True or False

False

Marketing can be viewed as a social process, but not as a set of activities performed by organizations. True or False

False

Marketing discourages the development and spread of new ideas, goods, and services. True or False

False

Marketing only applies to profit organizations. True or False

False

Micro-marketing is a social process that directs an economy's flow of goods and services from producers to consumers in a way that effectively matches supply and demand and accomplishes society's objectives. True or False

False

Personal selling involves direct personal communication to get the sale, but personal attention is seldom required after the sale. True or False

False

Production, not marketing, should determine what products are to be made. True or False

False

Strategic planning is a top management job that includes planning only for marketing. True or False

False

The objectives of a firm should direct the operation of the marketing department, but aren't important to the rest of the business. True or False

False

Which of the following population groups is the most techno-savvy? a. Seniors b. Gen X c. Boomers d. Busters e. Gen Y

Gen Y

The North American Free Trade Agreement (NAFTA): a. Provides a plan to reshape the rules of trade among Germany, the United States, and Colombia. b. Has reshaped the rules of trade among the United States, Canada, and Mexico. c. Eliminates the need for companies to adjust strategies. d. Makes it more difficult to resolve trade disputes among the countries participating in NAFTA.

Has reshaped the rules of trade among the United States, Canada, and Mexico.

Which of the following statements about the legal environment in the United States is true? a. Individual managers are subject to criminal penalties. b. The Food and Drug Administration (FDA) has no right to seize any product even if it violates the regulations. c. Many laws try to limit competition among firms. d. Consumer protection laws were introduced in the United States after 1940. e. Businesses managers are not subject to civil laws.

Individual managers are subject to criminal penalties.

What is the likely goal of a situation analysis? a. It usually involves formal talks with informed people. b. It helps define the problem. c. It is an approach that focuses on being objective and orderly in testing ideas before accepting them. d. It helps marketing managers in dealing with familiar areas. e. It provides a controlled test of a hypothesis.

It helps define the problem.

Pick the correct statement about marketing research. a. It is an organized way of gathering and analyzing information marketing managers need. b. It involves a wide range of techniques including Internet search, customer surveys, and more. c. It is a department in most small companies. d. It is only needed by producers who have long channels of distribution. e. It is not considered an alternative to a marketing information system.

It involves a wide range of techniques including Internet search, customer surveys, and more.

What is a marketing model? a. It is a procedure that develops and analyzes new information about a market. b. It identifies a detailed breakdown of a company's sales records. c. It refers to a plan that specifies what information will be obtained and how. d. It is a statement of relationships among marketing variables. e. It supports a software that organizes incoming information into a data warehouse.

It is a statement of relationships among marketing variables.

What does the phrase "big data" refer to? a. It refers to the information collected by the top five firms in the marketing research industry. b. It refers to the data sets too large and complex to work with typical database management tools. c. It refers to the information received from market research studies but not internal sources. d. It refers to the marketing research data taken from Internet sources. e. It refers to the market information taken from the U.S. Census.

It refers to the data sets too large and complex to work with typical database management tools.

Which of the following statements about world population trends is true? a. In general, countries that have higher stages of development experience faster rates of growth than less-developed countries. b. The extent to which a country's population is clustered around urban areas does not vary much from country to country. c. People are moving from rural areas into urban areas. d. The trend toward urbanization has made companies less interested in international markets. e. The concentration of people in major cities often complicates Place and Promotion decisions.

People are moving from rural areas into urban areas.

Which of the following is NOT part of the five-step marketing research process discussed in the text? a. Writing the proposal b. Analyzing the situation c. Solving the problem d. Interpreting the data e. Defining the problem

Writing the proposal

The Magnuson-Moss Act of 1975 focuses on which of the four Ps? a. Price b. Place c. Promotion d. People e. Product

Product

The "four Ps" of a marketing mix are... a. Production, Personnel, Price, and Physical Distribution b. Promotion, Production, Price, and People c. Potential Customers, Product, Price, and Personal Selling d. Product, Price, Promotion, and Profit e. Product, Place, Promotion, and Price

Product, Place, Promotion, and Price

Which of the following statements is true about political environment? a. Consumers in the same country usually share differing political environments. b. The attitudes and reactions of people have no effect on the political environment. c. The political environment can affect local opportunities but not international opportunities. d. Social critics and governments can affect the political environment. e. Nationalistic feelings always increase sales drastically in international markets.

Social critics and governments can affect the political environment.

Target marketing, in contrast to mass marketing... a. Assumes all customers have the same needs. b. Assumes everyone is a potential customer. c. Focuses only on small market segments. d. Tailors a marketing mix to fit some specific group of customers. e. Makes it more likely that a firm will face direct competition.

Tailors a marketing mix to fit some specific group of customers.

Which of the following is an element of the external market environment? a. Technological environment b. Company objectives c. Competitor strategies d. Customer base e. Company resources

Technological environment

What is true about one-at-a-time marketing research procedures? a. They are beneficial, as they provide quick results. b. They are more effective than marketing information system. c. They cannot be combined with marketing information system. d. They are costly and take more time. e. They focus more on objective methods than subjective methods

They are costly and take more time.

Which of the following is true of Generation Z? a. It refers to the generation born immediately following the baby boom. b. People belonging to this generation are also called Millennials. c. This group tends to have optimistic, as opposed to realistic, views of the world. d. This group is a part of a more ethnically diverse United States than their parents. e. This group appears to be less accepting of different cultures, races, and religions.

This group is a part of a more ethnically diverse United States than their parents.

Which of the following trends creates difficult challenges for marketing managers? a. Market data can now be gathered from social media websites. b. Market data may be gathered from internal sources and external sources. c. IT managers have become an important part of the marketing research process. d. Data warehouses have become a central part of most marketing information systems. e. Today's businesses process 1,000 times as much data as they did in the year 2000.

Today's businesses process 1,000 times as much data as they did in the year 2000.

A marketing strategy specifies a target market and a related marketing mix. True or False

True

Enhancing customer value by increasing their purchases is a potential source of new revenue. True or False

True

If the risks of getting into international marketing are difficult to evaluate, it may be wise to start with exporting. True or False

True

In market-directed economies, unregulated monopolies are rare. True or False

True

Macro-marketing emphasizes how the whole marketing system works True or False

True

Managers are now applying new screening criteria, sustainability, that reinforces the importance of meeting present needs without compromising the ability of future generations to meet their own needs. True or False

True

Market penetration means trying to increase sales of a firm's present products in its present markets-probably through a more aggressive marketing mix. True or False

True

Technology affects marketing through new products and new processes. True or False

True

The American Marketing Association has adopted a statement of ethics that sets specific ethical standards for many aspects of the management job in marketing. True or False

True

The first step in a competitor analysis is to identify potential competitors. True or False

True

The function of marketing research is to develop and analyze new information to help marketing managers make better decisions. True or False

True

There are over 316 million people living in the United States. True or False

True

According to projections, the population of _____ is likely to grow by 9 percent between 2013 and 2025. a. Japan b. Russia c. United States d. China e. Egypt

United States

Which of the following can a firm do to be more sustainable? a. Produce light bulbs with raw materials that consume more energy b. Manufacture textiles using chrome and ammonium solutions c. Use ink-free recycled paperboard for making boxes d. Fly the national sales force to a meeting instead of using teleconferencing technology e. Replace electric delivery vehicles with gas-powered ones

Use ink-free recycled paperboard for making boxes

Which of the following could serve as a firm's mission statement? a. Green is good b. Promote all brands using viral videos c. We aim to boost annual sales by 15 percent d. Create three new product lines e. We exist to provide customers with the best shopping experience anywhere in cyberspace.

We exist to provide customers with the best shopping experience anywhere in cyberspace.

Marketing can be viewed as... 1. a set of activities performed by individual organizations 2. relevant to for-profit organizations only 3. just selling and advertising 4. beginning with the production process

a set of activities performed by individual organizations

Marketing managers should remember that there are many variables in the ____________ that affect strategy planning. a. economic and technological environments b. competitive environment c. cultural and social environment d. political and legal environments e. all of these environments have variables that affect strategy planning

all of these environments have variables that affect strategy planning

"Place" is concerned with: a. getting the product to its intended market. b. intermediaries located between producers and consumers. c. where, when, and by whom goods are offered for sale. d. when and where products are wanted. e. all of these might be involved with Place.

all of these might be involved with Place.

"Product" is concerned with: a. branding. b. packaging and warranty. c. physical goods. d. services. e. all of these might be involved with Product.

all of these might be involved with Product.

Advertising is: a. the designing and distribution of novelties, point-of-purchase materials, store signs, contests, catalogs, and circulars. b. direct communication between sellers and potential customers. c. any paid form of nonpersonal presentation of ideas, goods, or services by an identified sponsor. d. the main form of publicity. e. All of these are included in Advertising

any paid form of nonpersonal presentation of ideas, goods, or services by an identified sponsor.

Baby boomers were born: a. between 1978 and 1994 b. since 1994 c. between 1965 and 1997 d. between 1946 and 1964 e. before 1945

between 1946 and 1964

A "marketing program": a. blends all of a firm's marketing plans into one big plan. b. is a description of a firm's marketing mix. c. is a detailed plan of how to implement a strategy. d. is a marketing strategy plus the time-related details. e. None of these apply to a marketing program.

blends all of a firm's marketing plans into one big plan.

Which of the following activities is NOT part of marketing? a. advertising the grand opening of a new furniture store b. researching which furniture designs are popular with consumers c. determining how many pieces of furniture can be sold at different price points d. building a facility to make furniture e. selling furniture to customers in a furniture showroom

building a facility to make furniture

American economic and legislative thinking is based on the idea that ________. a. encouraging competition harms public interest b. competition among many small firms helps the economy c. attempts by business to limit competition aids large firms during recessions d. the economic environment provides a base for the technological environment e. changes in the legal environment lead to changes in the political environment

competition among many small firms helps the economy

American economic and legislative thinking is based on the idea that a. encouraging competition harms public interest. b. competition among many small firms helps the economy. c. attempts by business to limit competition aids large firms during recessions. d. the economic environment provides a base for the technological environment. e. laws should protect companies and not consumers.

competition among many small firms helps the economy.

To conduct a marketing research process, the first thing a marketing manager should do if one of his firm's products drops in sales volume is to... a. conduct a survey to see what is wrong b. define the problem c. set research priorities d. do a situation analysis e. interview representative customers

define the problem

Unlike a business firm, a non-profit organizations... 1. needs resources and support to survive and achieve its objectives 2. must take in as much money as it spends or it won't survive 3. does not measure "profit" in the same way 4. faces competition for customers 5. gets support directly from those who receive the benefits

does not measure "profit" in the same way

The scientific method in marketing research a. forces an orderly research process. b. is an informal approach to define problems. c. is not a valid decision-making approach. d. is based on hunches rather than evidence. e. makes guesses about what will happen in the future.

forces an orderly research process.

Generation Y refers to those born ________. a. from 1978-1994 b. since 1994 c. from 1965-1997 d. from 1945-1964 e. before 1945

from 1978-1994

A marketing manager planning to launch a successful new product should begin by... a. obtaining financing for the venture b. designing products that interest him or her c. identifying a product/ service customers need Correct d. choosing a business partner e. establishing a legal corporation

identifying a product/ service customers need

A "marketing plan": a. is just another term for "marketing strategy." b. consists of several "marketing programs." c. includes the time-related details for carrying out a marketing strategy. d. is a strategy without all the operational decisions. e. ignores implementation and control details

includes the time-related details for carrying out a marketing strategy.

When setting objectives for the whole firm, TOP MANAGEMENT should: a. involve the marketing manager in the objective setting process. b. set objectives that focus on the highest possible immediate profit potential. c. stick to general objectives-in order to maintain flexibility. d. set objectives beyond what can actually be achieved-so everyone will work harder. e. all of these are useful when setting objectives.

involve the marketing manager in the objective setting process.

Gross domestic product (GDP): a. is affected by economic conditions and the productivity of workers in the country. b. usually rises when there are bad economic conditions in an economy. c. is the amount of new capital invested in business in a year. d. is the total cost of producing all goods and services in a year. e. is the total market value of goods and services consumed in an economy in a year.

is affected by economic conditions and the productivity of workers in the country.

Gross national income (GNI): a. is affected by economic conditions and the productivity of workers in the country. b. usually rises when there are bad economic conditions in an economy. c. is the amount of new capital invested in business in a year. d. is the total cost of producing all goods and services in a year. e. is the total market value of goods and services consumed in an economy in a year.

is affected by economic conditions and the productivity of workers in the country.

"Price": a. is affected by the kind of competition in the target market. b. includes markups and discounts, but not allowances and freight charges. c. is not affected by customer reactions. d. is the most important part of a marketing mix.

is affected by the kind of competition in the target market.

The _____ environment sets the basic rules for how a business can operate in society. a. legal b. social c. economic d. technical e. cultural

legal

Procedures that develop and analyze new information to help marketing managers make decisions are called... a. strategy planning b. operational planning c. analytical research d. marketing research e. statistical techniques

marketing research

Nike claims in its Annual Report, "The reasons every Nike employee comes to work every day are to create great product, to lead the athletic industry in innovation, and to serve the athlete." This is Nike's ________. a. competitive analysis b. technology environment c. portfolio management d. objective analysis e. mission statement

mission statement

Marketing means... a. distribution. b. making good products c. more than selling and advertising d. promotion e. performing services

more than selling and advertising

According to the text, marketing means... a. much more than selling and advertising b. selling c. producing and selling d. advertising e. selling and advertising

much more than selling and advertising

A "Buy American" campaign is an example of ________. a. transnationalism b. nationalism c. environmentalism d. consumerism e. federalism

nationalism

The three basic tasks of ALL managers, according to the text, are: a. planning, staffing, and evaluating. b. marketing, production, and finance. c. execution, feedback, and control. d. hiring, training, and compensating. e. planning, implementation, and control.

planning, implementation, and control.

"Nationalism" is an issue in the ________ environment. a. competitive b. political c. economic d. cultural e. technological

political

Data which have already been collected in a previous study are called ________ data, while data that are generated by a phone survey this month of key customers are called ________ data. a. primary; secondary b. primary; intranet c. secondary; primary d. secondary; experimental e. intranet; sample

secondary; primary

Regarding population density in the world, a. high-population density occurs only in highly developed economies. b. some Western European and Asian urban areas are more crowded than U.S. urban areas. c. the United States is the only country with crowded urban areas. d. there is a worldwide movement back to rural areas. e. None of these is correct regarding population density in the world.

some Western European and Asian urban areas are more crowded than U.S. urban areas.

A marketing strategy... a. specifies a target market and a related marketing mix b. provides a focused but narrow picture of what a firm will do in some market c. is a market-oriented, whole-company plan d. includes two interrelated parts-product mix and product development e. includes the marketing mix, but does not specify customers

specifies a target market and a related marketing mix

Low consumer spending and a lack of adequate financing are conditions that arise mostly due to factors in: a. the competitive environment. b. the cultural and social environment. c. the technological environment. d. the political environment. e. the economic environment.

the economic environment.

The big advantage of qualitative research in marketing is: a. ease of interpretation. b. it provides a good basis for statistical analysis. c. the in-depth responses it provides d. the analysis can be handled on a personal computer. e. None of these is a good answer.

the in-depth responses it provides

The fact that many Americans want the convenience of driving gas-guzzling trucks and sport utility vehicles—which also contribute disproportionately to pollution and global warming—is an example of... 1. the micro-macro dilemma 2. discrepancies in customer value 3. marketing ethics 4. the responsibilities of the marketer 5. the marketing concept

the micro-macro dilemma

When selecting among possible product-market strategic plans, a. the total profit approach tends to support plans that will be profitable in the short term even if longer term profits would be higher with another plan. b. the total profit approach requires estimates of sales and total costs. c. the total profit approach compares plans that require the same investment. d. None of these statements is true.

the total profit approach requires estimates of sales and total costs.

When planning a marketing strategy, managers have control over: a. the political and legal environment. b. the cultural and social environment. c. the economic environment. d. their response to forces in the external market environment. e. consumers.

their response to forces in the external market environment.

Generation X refers to: a. those born from 1978-1994 b. those born since 1994 c. those born from 1965-1977 d. those born from 1945-1964 e. those born before 1945

those born from 1965-1977

Along with studying trends in the environment, a first step in looking for attractive opportunities is to: a. understand the resources and objectives of the firm. b. decide which product-markets the firm will enter. c. find new markets for present products. d. estimate product-market potentials. e. hire a marketing strategy planner.

understand the resources and objectives of the firm.

The Federal Trade Commission Act of 1914 is primarily concerned with ________. a. deceptive warranties b. price-fixing agreements c. conspiracies in restraint of trade d. mergers which might substantially lessen competition e. unfair methods of competition

unfair methods of competition

The term "micro-macro dilemma" means that... 1. most people are both producers and consumers 2. marketing people cannot agree on whether marketing should be viewed as activities or as a social process 3. macro-marketing is just a small part of a larger micro-marketing system 4. the micro view of marketing is concerned with the flow of goods and services from producers to consumers-while the macro view is not 5. what is "good" for some producers and consumers may not be good for society as a whole

what is "good" for some producers and consumers may not be good for society as a whole