MKTG 2301- Ch.1-5

Customer Relationship Management

A company-wide business strategy designed to optimize profitability, revenue, and customer satisfaction by focusing on highly defined and precise customer groups.

Harlose Inc. is a company that manufactures apparel for men and women. The company focuses on creating customer value. In this case, Harlose Inc. can: a) produce unrealistically expensive but high-quality products for its customers. b) engage in aggressive advertising to enhance its sales and profits. c) inhibit co-creation as it might compromise product quality. d) customize its products according to customers' requirements.

D) customize its products according to customers' requirements.

True or False? A person who follows the deontological theory will produce very inconsistent decisions because they will be based on the individual's choices.

False

True or false: The utilitarian theory is a belief in time-and-place ethics, that is, ethical truths depend on the individuals and groups holding them:

False

___________ is the largest Latin American trade agreement, and it includes Argentina, Bolivia, Brazil, Chile, Columbia, Ecuador, Paraguay, Peru, Uruguay, and Venezuela.

Mercosur

The _____ is the idea that an organization exists not only to satisfy customer wants and needs but also to preserve individuals' long-term best interests.

Societal Marketing Orientation

__________ is charged with enforcing regulations against selling and distributing adulterated, misbranded, or hazardous food and drug products.

The Food and Drug Administration

__________ was founded in 1945, one year after the creation of the World Bank, to promote trade through financial cooperation and eliminate trade barriers in the process.

The International Monetary Fund (IMF)

Production Orientation

a philosophy that focuses on the internal capabilities of a firm rather than on the desires and needs of the marketplace.

Which of the following statements is true of the pyramid of corporate social responsibility? a) It has four components that are distinct but together constitute the whole. b) It states that governments have more social responsibility than nongovernment organizations. c) It portrays philanthropic performance as the foundation for the other three responsibilities. d) It states that even if companies do not make profits, other responsibilities have to be fulfilled.

a) It has four components that are distinct but together constitute the whole.

Which of the following best defines an organization's code of ethics? a) It is a guideline to help marketing managers and other employees make better decisions. b) It is a set of conditions under which confidential information may be shared among employees of an organization. c) It is a legal covenant in which employees agree not to start a similar profession against the employer. d) It is the code of professional responsibility enforced by the government to regulate professional behavior.

a) It is a guideline to help marketing managers and other employees make better decisions.

_____ delivers relevant experiences throughout a consumer's decision and buying process that are integrated across both physical and virtual environments. a) On Demand Marketing b) Societal Marketing c) Product Marketing d) Premium Marketing

a) On Demand Marketing

Which of the following statements is an argument against corporate social responsibility? a) Some analysts believe that a business should focus on making a profit and not environmental issues. b) Corporate social responsibility has shown a decrease in the number of its supporters. c) Corporate social responsibility produces an indirect profit and sometimes no profit at all. d) Recent research has found that being socially responsible leads to negative impact on the firm.

a) Some analysts believe that a business should focus on making a profit and not environmental issues.

African Americans in the United States: a) are more likely to patronize convenience, drug stores, and dollar stores than other groups. b) acculturate into mainstream America forgetting their cultural heritage. c) comprise the largest percentage of population among different minority groups in the U.S. d) are inclined to spend less on groceries and hair care products as compared to other cohorts.

a) are more likely to patronize convenience, drug stores, and dollar stores than other groups.

A difference between social media marketing and traditional methods of promotion is that social media marketing: a) can humanize brands that are advertised. b) is limited to pushing a message to a mass audience. c) happens as an asynchronous communication. d) reaches a few targeted people.

a) can humanize brands that are advertised

According to Ansoff's strategic opportunity matrix, a product development strategy entails: a) introducing new products to new markets. b) creating new products for present markets. c) attracting present customers to existing products. d) attracting new customers to existing products.

a) introducing new products to new markets

n the context of the marketing mix, _____ is often the most flexible of the four Ps—the quickest element to change. a) price b) place c) promotion d) product

a) price

Which of the following statements is a difference between a production orientation and a sales orientation? a) A production orientation endorses marketing as a means of selling things and collecting money, while a sales orientation endorses marketing as a means of fulfilling a firm's short-term goals. b) A production orientation focuses on the internal capabilities of a firm, while a sales orientation focusses on increasing a firm's profits by using aggressive advertisements. c) A production orientation displays a lack of understanding of the marketplace, while a sales orientation has a good understanding of the needs and wants of the marketplace. d) A production orientation focuses on using aggressive techniques to gain customers, while a sales orientation focuses on a firm's resources to build a better product.

b) A production orientation focuses on the internal capabilities of a firm, while a sales orientation focusses on increasing a firm's profits by using aggressive advertisements.

In order to stimulate innovation, Harlose Inc. allows its researchers to devote 2-3 hours of their normal work schedule to pursue their own ideas and projects. Which of the following approaches is the company using in this case to stimulate innovation? a) Using Web enlisting b) Catering to entrepreneurs c) Allowing self-dealing d) Using basic research

b) Catering to entrepeneurs

Which of the following is true of African Americans in the United States? a) They are not conscious of brands and stores and do not show any inclination to brand loyalty. b) Higher academic achievement has translated into increases in household income. c) The purchasing power of African Americans is declining due to a low population growth. d) Fifty-three percent of their total population is over the age of 50, making them more family oriented.

b) Higher academic achievement has translated into increases in household income.

Which of the following is true of niche competitive advantage? a) It involves reorganizing functional departments such as sales, engineering, and production into cross-disciplinary teams. b) It provides support to market segments that have good growth potential but are not crucial to the success of major competitors. c) It allows management to forecast costs and set prices based on anticipated costs as opposed to current costs. d)It offers something that is unique and valuable to buyers beyond simply offering a lower price than that the one offered by the competition.

b) It provides support to market segments that have good growth potential but are not crucial to the success of major competitors.

Which of the following statements is true of strategic business units (SBUs)? a) They are devoid of distinct missions. b) They require their own strategies and funding. c) They do not have control over their own resources. d) They lack specific target markets.

b) They require their own strategies and funding.

Identify a true statement about sales-oriented firms. a) They recognize that different customer groups want different features or benefits. b) They target their products at "everybody" or the "average customer." c) They target their products to specific groups of people. d) They recognize the role of employee training in customer service and relationship building.

b) They target their products at "everybody" or the average customer.

The _____ states that the social and economic justification for an organization's existence is the satisfaction of customer wants and needs while meeting organizational objectives. a) production orientation philosophy b) marketing concept c) sales concept d) promotion orientation philosophy

b) marketing concept

Unlike Hispanic Gen Xers, Hispanic Millennials tend to be: a) uninfluenced by their cultural heritage and familial roots. b) more open-minded about relationships than their parents. c) more concerned about themselves than their families. d) lax about pursuing rewarding careers and business ventures.

b) more open-minded about relationships than their parents.

Mike is a manager at a leading sporting goods manufacturing company. He graduated during the Great Recession. He likes to spend time with his family and is tech-savvy. In the context of population groups, it is evident that Mike is most likely a _____. a) baby boomer b) tween c) Gen Yer d) Gen Xer

c) Gen Yer

_____ is the development and marketing of products designed to minimize negative effects on the physical environment or to improve the environment. a) Affinity marketing b) Competitive marketing c) Green marketing d) Relationship marketing

c) Green marketing

Which of the following is true of an organization's code of ethics? a) It is an effective external control of behavior. b) It is unwritten and is developed by employees through their personal experiences. c) It helps employees identify what their firm recognizes as acceptable business practices. d) It excludes employees from the process of its formulation.

c) It helps employees identify what their firm recognizes as acceptable business practices.

In the context of ethical theories, which of the following statements is true of act utilitarianism? a) It lays emphasis on adhering to personal feelings while performing an act. b) It is accurate in predicting the future outcomes of an act. c) It involves performing acts that benefit the most people, regardless of societal constraints. d) It states that people should adhere to their obligations and duties when analyzing an ethical dilemma.

c) It involves performing acts that benefit the most people, regardless of societal constraints.

Which of the following statements is true in the context of product strategies? a) Products should not be tangible goods. b) Product strategies should only have one product element. c) Products should offer customer value. d) Product strategies should not include brand name.

c) Products should offer customer value.

_____ is perhaps the most difficult external variable for marketing managers to forecast, influence, or integrate into marketing plans. a) Human resource b) Demography c) Social change d) Machinery

c) Social change

Which of the following statements is true of ethical decision making and judgments? a) Marketing professionals who perceive fewer ethical problems do not disapprove of questionable practices that benefit their firm. b) When top managers develop a strong ethical culture, unethical behavior is reported less frequently. c) The greater the harm done to victims, the more likely that marketing professionals will recognize a problem as unethical. d) The lesser the likelihood that an action will result in a harmful outcome, the more likely that marketers will recognize a problem as unethical.

c) The greater the harm done to victims, the more likely that marketing professionals will recognize a problem as unethical.

In the context of modes of social control, which of the following statements is true of civil societies? a) They address the lowest common denominator of socially acceptable behavior. b) They have codes that prescribe acceptable and desired behaviors of their members. c) They can help mold individual and corporate behavior. d) They refrain from giving inputs to a private firm's management.

c) They can help mold individual and corporate behavior.

Locder Foods is a fast food chain that has a larger market share compared to all its competitors. It is well known for providing efficient and quick service to its customers while ensuring variety and freshness in the food it provides. No other fast food brand has been able to match these qualities of Locder Foods. In this case, Locder Foods: a) has adopted diversification to maintain its market shares. b) caters only to a niche segment of the market. c) has created a sustainable competitive advantage. d) is a high-cost competitor in the industry.

c) has created a sustainable competitive advantage.

Jacob visits an auto repair shop. Due to the decrease in the value of money, he learns that a spark plug would cost him fifteen percent more than what he had paid for last year. In this case, Jacob has to pay more as a result of _____. a) recession b) technological advancement c) inflation d) technological lockout

c) inflation

Which of the following statements is a difference between act utilitarianism and rule utilitarianism? a) Act utilitarianism is a belief in time-and-place ethics, while rule utilitarianism is relative to the truth of a moral judgment. b) Act utilitarianism is a character trait that is valued as being good, while rule utilitarianism is a current ethical dilemma. c) Act utilitarianism takes into account the law and is concerned with fairness, while rule utilitarianism adheres exactly to the definition of utilitarianism. d) Act utilitarianism seeks to benefit the most people regardless of laws, while rule utilitarianism seeks to benefit the most people but through the most just means possible.

d) Act utilitarianism seeks to benefit the most people regardless of laws, while rule utilitarianism seeks to benefit the most people but through the most just means possible.

Which of the following statements is true of a SWOT analysis? a) It outlines the major goals and the mission statement of a business. b) It adds to a firm's marketing myopia. c) It concentrates on maintaining the quality standards of a firm's products and services. d) It focuses on organizational resources when examining internal strengths and weaknesses.

d) It focuses on organizational resources when examining internal strengths and weaknesses.

In the context of the external environment of a business, which of the following statements is true of social media? a) They are similar to network television where a message is pushed out to a mass audience. b) They are not used by people between the ages of 55 and 64. c) They reduce the buying behavior of consumers. d) They allow consumers to respond to brands and events in real time.

d) They allow consumers to respond to brands and events in real time.

In the context of on-demand marketing, which of the following statements is true of sales-oriented businesses? a) They recognize that different customer groups want different features or benefits. b) They place high premium on developing a long-term relationship with the customer. c) They make a profit by creating customer value and providing customer satisfaction. d) They try to convince potential customers to buy, even if the customer and product are mismatched.

d) They try to convince potential customers to buy, even if the customer and product are mismatched.

Implementing a marketing plan: a) provides the mechanisms for evaluating marketing results in light of the plan's objectives. b) entails gauging the extent to which marketing objectives have been achieved during the specified time period. c) is the starting point of the marketing mix strategy to identify target markets. d) requires delegating authority and responsibility, determining a time frame for completing tasks, and allocating resources.

d) requires delegating authority and responsibility, determining a time frame for completing tasks, and allocating resources.

Marketers are more likely to recognize a problem as unethical when: a) there are more ethical problems within their organization. b) it is less likely to result in a damaging outcome. c) it affects a small number of people. d) there is greater consensus that the action is harmful.

d) there is greater consensus that the action is harmful.

Asian Americans are sometimes called a marketer's dream because: a) they tend to be more open-minded about relationships than their parents. b) they are more likely to patronize convenience, drug stores, and dollar stores. c) they tend to spend more on groceries and hair care products than on technology. d) they are younger, better educated, and have higher incomes than average.

d) they are younger, better educated, and have higher incomes than average.

A company is doomed to failure in a foreign country if it ___________.

does not understand the foreign country's culture

Powell Motors, an automobile manufacturing company, spent considerable time, effort, and money in developing a fiber-reinforced dashboard for its cars without researching customer needs. Because of the new feature, the cars manufactured by Powell Motors are priced higher than other companies' cars belonging to the same segment. The company has introduced its cars in the market with the hope that customers would like this type of dashboard and would buy them despite the high price. In this scenario, Powell Motors has adopted a _____.

production orientation.

TrinkCan, a soda manufacturing company, discovered that the packaging material of its products is not eco-friendly. After learning this, the company started using eco-friendly packaging material and made a few modifications to the packaging process in order to leave behind lesser toxic materials than the earlier process. In this scenario, TrinkCan has adopted a _____.

societal marketing orientation.

Cost Competitive Advantage

to be an inexpensive competitor in an industry while maintaining satisfactory profit margins.