MKT600 - Chp Test

With respect to conducting a situation analysis, which of the following IS NOT one of the four important issues to keep in mind? *The benefits of analysis must outweigh the costs. *Conducting a situation analysis is a challenging exercise. *All bits of data are relevant no matter how minor they may seem. *Data are not the same as information. *Analysis alone is not a solution.

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

In the 5W model of customer analysis, what is the primary emphasis of the "What" question? *Identifying the situational influences that affect the customer buying process. *Identifying the basic need-satisfying benefits provided by the firm's products. *Assessing how purchases vary across different distribution outlets. *Determining the relevant characteristics that define markets. *Assessing how customers consume and dispose of products.

- Assessing how customers consume and dispose of products.

__________ is the curse of mature markets whereby products lack any real means of differentiation and customers see competing products as offering roughly the same benefits. *Specialization *Price devaluation *Maturation *Market homogeneity *Commoditization

- Commoditization

A marketer at General Mills in charge of international expansion wants to determine Kellogg's market share in Mexico. What type of marketing activity should she apply? ​*Tactical planning ​*Situation analysis ​*Environmental scanning *Competitive intelligence ​*Internal analysis

- Competitive intelligence

If an organization does not understand its customers, what should it consider doing? *​Analyze the external environment. ​*Conduct secondary research. *​Conduct primary research. ​*Choose another target market. ​*Determine a competitive advantage.

- Conduct primary research.

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

- Customers

Changing value propositions in today's economy—such as changes caused by the growth in e-commerce—have forced marketers to learn a tough lesson about customers. What is that lesson? *Customers will always seek the best quality regardless of price. *Customers will always seek the best value regardless of quality. *Customers will always turn to the most recognized brand. *Customers will turn to the most convenient, least expensive alternative in situations where they see goods and services as commodities. *Customers would rather perform service for themselves to save money.

- Customers will turn to the most convenient, least expensive alternative in situations where they see goods and services as commodities.

From the customer's perspective, which part of the marketing mix takes place largely behind the scenes? *​Distribution ​*Promotion ​*Market segmentations ​*Price ​*Product

- Distribution

__________ involves the analysis of economic, political, legal, technological, and cultural events and trends that may affect the future of the organization and its marketing efforts. *Environmental scanning *Marketing research *Tactical planning *External analysis *Competitive intelligence

- Environmental scanning

In developing a marketing plan, the section on goals and objectives defines the parameters by which the firm will measure actual performance. In this respect, the goals and objectives section is tied closely to the __________ section of the marketing plan. *situation analysis *evaluation and control *marketing implementation *SWOT analysis *executive summary

- Evaluation and Control

Which of the following is an example of collecting secondary information?​ *​Directly observing consumers in the store. *​Examining an annual report. ​*Conducting experiments to measure cause-and-effect. ​*Conducting focus groups. ​*Surveying the organization's customers.

- Examining an annual report.

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

- False

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

- False

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

- False

Goals are more specific than objectives. *False *True

- False

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

- False

Marketing strategy is inherently product-driven.​ *True *False

- False

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

- False

The SWOT analysis should always be analyzed quantitatively.​ *True *False

- False

In the 5W model of customer analysis, what is the primary emphasis of the "Why" question? *Assessing how purchases vary across different distribution outlets. *Determining how the purchase and consumption of one product is related to other products. *Assessing how customers consume and dispose of products. *Identifying the situational influences that affect the customer buying process

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

Which of the following IS NOT a purpose of a marketing plan? *It explains how marketing activities mesh with other functional areas. *It identifies resources needed to carry out the plan. *It describes specific actions that are to take place. *It specifies the expected outcomes of the plan. *It explains the present and future situations of the organization.

- It explains how marketing activities mesh with other functional areas.

Why is it important that marketing goals involve some degree of intangibility? *It makes goals more consistent with the objectives that follow. *It makes the goal more motivational and promotes continuous improvement *It makes it more difficult for competitors to determine the firm's marketing strategy. *It makes goals easier to achieve. *It promotes learning by forcing employees to ask questions about the strategy.

- It makes the goal more motivational and promotes continuous improvement

In terms of setting goals and objectives, what is considered to be one of the major benefits gained from applying for the Malcolm Baldrige National Quality Award? *It helps the firm to set objectives that are difficult for competitors to copy. *It promotes the development of goals that are consistent with the firm's mission. *It helps the firm to focus solely on customer requirements. *It allows the firm the freedom to pursue other strategic initiatives. *It promotes the development of discontinuous objectives.

- It promotes the development of discontinuous objectives.

All of the following are benefits of SWOT analysis EXCEPT: *Its structured nature ensures that data and information are correctly categorized. *It can reduce costs associated with strategic planning. *It is simple to use and requires no extensive training or skills. *It can synthesize and integrate diverse information. *It promotes collaboration and open information exchange.

- Its structured nature ensures that data and information are correctly categorized.

__________ firms are those that successfully generate, disseminate, and respond to market information. *Customer-oriented *Market-oriented *Competitive-oriented *Information-oriented *Satisfaction-oriented

- Market-oriented

Which of the following is needed to develop goals and objectives? *Implementation *A SWOT analysis *Mission statement *Competitive intelligence *Marketing plan

- Mission statement

__________ typically occur within the competitive, customer, economic, political/legal, technological, and/or sociocultural environments of the firm. *Strengths and opportunities *Opportunities and weaknesses *Opportunities and threats *Weaknesses and threats *Strengths and weaknesses

- Opportunities and threats

What is perhaps the most important economic reality in the United States over the last 50 years? *Real GDP has declined dramatically since the end of World War II. *Those with higher income are greater than those in the middle or lower-income classes. *Our economy has shifted to become dominated by intangibles such as services and information. *Our economy is still suffering from the very high inflation rates of the 1970s. *The middle class has been shrinking.

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

Which of the following statements about pricing decisions in the marketing program is TRUE? *Price is one of two elements of the marketing mix that leads to revenue. *Pricing is the most difficult element of the marketing mix to change. *Customers will always equate higher prices with higher quality products. *Price has a direct connection with customer demand. *Pricing is the least manipulated element of the marketing mix.

- Price has a direct connection with customer demand.

All of the following are reasons for the general decline in customer satisfaction over the past 20 years EXCEPT: *Customers are more cynical, have more information, and have more attitude than ever before. *Product quality is much lower now than at any time in the past. *Customers are much less brand loyal than in the past. *Today's customers are very price sensitive. *Today's customers are exceptionally demanding

- Product quality is much lower now than at any time in the past.

The growth of the Internet has changed the way that situation analysis is conducted in today's business environment. In terms of situation analysis, which of the following is the most drastic change caused by the Internet? *Data and information are now more relevant to the question at hand. *All competitors now have access to the same data and information. *There is now no such thing as secrecy in strategic planning. *The analyst is more likely to suffer from severe information overload. *Specific data and information take longer to find.

- The analyst is more likely to suffer from severe information overload.

To successfully utilize SWOT analysis as a catalyst for strategic planning, the marketing manager must focus on several important issues. Which of the following IS NOT one of these issues? *The manager must look beyond the firm's current product offerings. *The manager must find ways to transform key threats into strengths. *The manager must strive to convert weaknesses into strengths. *The manager must attempt to minimize the firm's limitations. *The manager must find ways to connect the firm's strengths to its opportunities.

- The manager must find ways to transform key threats into strengths.

What is the main purpose of the Sarbanes-Oxley Act of 2002? *To increase the accuracy and reliability of corporate disclosures of financial information. *To limit the ability of the media to obtain confidential corporate information. *To ensure that CEOs are adequately compensated for the risks they face in terms of corporate governance. *To amend NAFTA to be more favorable to U.S. interests. *To limit the ability of drug companies to engage in direct-to-consumer advertising.

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

A consumer wanted to purchase a new computer. However, she used the money to pay her rent instead. In this case, housing is what type of competitor? *Total budget competitor ​*Product competitor *​Market competitor ​*Brand competitor ​*Generic competitor

- Total budget competitor

A SWOT analysis assesses the fit between what a firm can and cannot do (strengths and weaknesses), and the environmental conditions working for and against the firm (opportunities and threats). ​ *False *True

- True

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

- True

A firm's strategic focus will change over time due to the dynamic nature of internal and external environments. ​ *False *True

- True

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

- True

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

- True

Comprehensiveness in the goal-setting process means that each functional area should be able to develop its own goals that relate to the organization's needs. *False *True

- True

In Mexico the government has levied a tax on sugary soft drinks. For Coca-Cola, this represents a threat. ​ *True *False

- True

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

- True

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

- True

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

- True

Rather than conducting just one SWOT analysis, marketers should conduct a series of analyses, each focusing on a specific product/market combination. *False *True

- True

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

- True

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

- True

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

- True

Which of the following is one of the five basic questions that a good mission statement should answer? *Where have we been? *What is our operating philosophy? *Who are our competitors? *What are our opportunities? *What is our market position?

- What is our operating philosophy?

With regard to Blue Ocean Strategy, the Four-Actions Framework is designed to challenge traditional assumptions about marketing strategy by asking four key questions. Which of the following IS NOT one of these questions? *Which factors should be reduced well below the industry's standard? *Which factors used throughout the industry should be copied? *Which factors should be created that the industry has never offered? *Which factors should be raised well above the industry's standard? *Which factors that the industry takes for granted should be eliminated?

- Which factors used throughout the industry should be copied?

​When approving the marketing plan, which of the following questions will a top manager ask? *Will the proposed marketing plan achieve the desired marketing, business unit, and corporate goals and objectives? *​How will this marketing plan impact the company's reputation among stakeholders? ​*What are our responsibilities with respect to being a good steward of our human, financial, and environmental resources? ​*How will this marketing plan serve to define the organization as a whole? ​*What are the types of controls we will use to measure the success of the proposed marketing plan?

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

In the traditional transactional marketing approach, the ultimate goal of marketing is to: *All of the above are goals of transactional marketing *acquire new customers and complete a large number of exchanges. *serve customers' needs and wants. *develop long-term customer relationships. *create value in the buyer-seller relationship.

- acquire new customers and complete a large number of exchanges.

Compared to primary data, secondary data have the main advantage of: *being dramatically lower in cost. *being up-to-date. *being both internally and externally focused. *having greater relevance to a specific issue. *being readily accessible in electronic format

- being dramatically lower in cost.

The marketing planning process typically requires the coordination of __________ at the top of the corporate hierarchy with more __________ at the bottom. ​ *large-scale activities; broad decisions ​*planning actions; broad-based decisions ​*implementation activities; narrowly defined decisions ​*broad-based decisions; narrowly defined actions ​*important decisions; complex decisions

- broad-based decisions; narrowly defined actions

When a firm possesses capabilities that allow it to serve customers' needs better than the competition, the firm is said to have a: *relative advantage. *marketing advantage. *value-based advantage. *resource advantage. *competitive advantage.

- competitive advantage.

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

- corporate affairs

In many buying situations, customers will buy one product because it complements another product. In these cases of __________ demand, the demand of one product depends on the demand of another product. *dependent *derived *conjoined *quasi- *linked

- derived

Focusing on customers has not always been the hallmark of strategic planning. In fact, in the early 20th century, firms tended to focus strictly on __________ rather than on developing relationships with customers. *selling products to customers *new product development *growth and corporate profits *marketing research *efficiency and quality

- efficiency and quality

As a form of __________ competition, bicycles can solve the same basic need as automobiles, albeit with a very different product. *generic *product *total budget *regular *brand

- generic

The sheer volume of available information on the economy, population, and business activities is the major strength of most __________ data sources. *internal *primary *commercial *government *book and periodical

- government

A customer's decision to purchase one product or group of products over another is primarily a function of: *the product's price. *the product's features relative to competing products. *the convenience of acquiring the product or group of products. *how well that choice will fulfill that person's needs and satisfy his or her wants. *the availability of the product or group of products.

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

What is an advantage of assigning responsibility for achieving marketing objectives? ​ *​It limits the problems of stealing credit. ​*It gives the marketing manager more control. ​*It aids in the goal-setting process. ​*It makes the processes less complex. ​*It eliminates organizational conflict.

- it eliminates organizational conflict

May firms, like the Altria Group, focus on diversification in their marketing strategies because they possess: *many internal weaknesses and many external opportunities. *many internal weaknesses and many external threats. *many internal strengths and many external threats. *many internal strengths and few external opportunities. *many internal strengths and many external opportunities.

- many internal strengths and many external threats.

Furniture Mart offers services such as financing and home delivery to its customers. What type of utility is Furniture Mart trying to increase? *possession utility *place utility *psychological utility *form utility *time utility

- possession utility

Microsoft's Windows platform dominates the market for personal computer operating systems. By continuously upgrading and stretching the technology underlying its Windows system, Microsoft is pursuing a strategy of: *product leadership. *technological leadership. *total quality management. *customer intimacy. *operational excellence.

- product leadership.

Sears at one time lost sight of its mission and jumped into markets such as real estate and financial services that did not fit its strengths or core operations. This most likely occurred because Sears lacked a mission statement with the appropriate: *stability. *focus. *profitability. *width. *strategic fit.

- profitability.

Strengths are typically based on the existence and nature of the __________ possessed by the firm. Weaknesses stem from a lack of these important factors. *customers and partnerships *patents and capital *customers and resources *products and customers *resources and relationships

- resources and relationships

Which of the following changes occurring in today's economy has NOT been caused by the growth of the Internet? *shifting demand patterns *privacy and security concerns *audience and media fragmentation *increase in product selection *rising prices for most products

- rising prices for most products

Whether at the corporate, business-unit, or functional level, the planning process always begins with an in-depth: *assessment of the organization's resources. *statement of goals and objectives. *statement of the organization's *competitive advantages. *strategy for achieving growth. *situation analysis.

- situation analysis

The overall concept or model that guides the firm as it weaves various marketing elements together into a coherent strategy is called its: *marketing strategy. *operational focus. *marketing thrust. *strategic posture. *strategic focus.

- strategic focus.

List the elements that make up a marketing program. *target market and marketing mix ​*market segment and market plan ​*marketing mix, price, and promotion ​*product and target market ​*price, promotion, place, and product

- target market and marketing mix

Firms possessing certain core competencies are more likely to create competitive advantages based on these competencies. However, before a competitive advantage can be translated into specific customer benefits, the firm's __________ must recognize that its competencies give it an advantage over the competition. *target markets *management *shareholders *strategic partners *employees

- target markets

Many firms have shifted to balanced strategic planning because traditional planning and measurement approaches are not able to capture: *either internal or external innovation. *real-time customer satisfaction metrics. *the value created by an organization's intangible assets. *key competitive information to drive marketing planning. *real-time financial performance metrics.

- the value created by an organization's intangible assets.

A product that provides the utmost in convenience is said to offer exceptional: *form and time utility. *time and possession utility. *form and place utility. *time and place utility. *place and possession utility.

- time and place utility

The term ______ is used to describe the ability of a product to satisfy a customer's desires.​ *​strategy *utility ​*exchange ​*competitive intelligence ​*market scanning

- utility

As a tool of Blue Ocean Strategy, the strategy canvas provides a way to visualize the firm's strategy relative to other firms in the industry. The central portion of the strategy canvas is the __________, or the graphic representation of the firm's relative performance across its industry's factors. *divergence curve *value curve *action diagram *strategic focus *strategy line

- value curve

In 2005, the American Marketing Association changed the definition of marketing that had stood for 20 years. The major changes in the definition included a shift from delivering the 4 Ps (product, price, place, promotion) to delivering __________ and a shift from creating exchanges to creating __________. *quality; value *satisfaction; customer relationships *quality; transactions *value; satisfaction *value; customer relationships

- value; customer relationships

Which of the following is NOT a part of evaluating the internal environment? *​A review of the organizational structure. ​*A review of current objectives, strategy, and performance. ​*A review of the organizational culture. *​A review of the competition. ​*A review of the current availability of organizational resources.

- ​A review of the competition.

Kodak focused on maintaining market dominance over Polaroid and Fuji but failed to consider Sony, Nikon, Canon, and even smartphones. What mistake did Kodak make? ​ ​*It only focused on brand competitors. *​It refused to collaborate with its competitors. ​*It was too obsessed with market dominance. ​*It idenfied the wrong brand competitors. ​*It didn't engage in competitive analysis.

- ​It only focused on brand competitors.