MKTG 3600 Midterm
Strategy refers to
an organization's long-term course of action designed to deliver a unique customer experience while achieving its goals
Advertising refers to
any paid form of nonpersonal communication about an organization, product, service, or idea by an identified sponsor.
A(n) __________ question is the simplest form of a fixed alternative question that allows only a yes or no response.
dichotomous
Which form of entry into a foreign market requires the greatest commitment?
direct investment
Which of the following is an inherent strength of direct marketing?
direct marketing can be adapted quickly to facilitate customer relationships
The money that remains after paying for taxes and necessities is referred to as __________.
discretionary income
SBUs with a low share of slow-growth markets that may generate enough cash to sustain themselves but do not hold the promise of ever becoming real winners for the organization are referred to as __________.
dogs
Competitive parity budgeting refers to
matching a competitor's absolute level of spending or the proportion per point of market share.
Reminding buyers of the product's existence is the promotional objective during which stage of the product life cycle?
maturity
Which of the following is an inherent weakness of personal selling?
messages may differ between salespeople
Based on the stages of the family life cycle, which of the following groups most likely has the largest amount of discretionary income?
middle-aged couples with children
A firm that views the world as consisting of unique parts and markets to each part differently is referred to as a(n)
multinational firm.
The estimated cost of economic espionage to firms in the United States is estimated to be
$250 billion per year.
New-product experts generally estimate that up to __________ percent of the more than 40,000 new consumable products introduced in the United States annually "don't succeed in the long run."
94
Which of the following statements about advertising is most accurate?
Advertising allows a firm to reach a mass market.
Overseeing strategic marketing efforts at the corporate level would most likely be the responsibility of the __________.
CMO
The 50 million people of the population born between 1965 and 1976, also called the baby bust, refers to __________.
Generation X
The country expected to have the largest population in 2050 is __________.
India
Scanning your memory for previous experiences with products or brands occurs during which stage of the consumer purchase decision process?
Information search
Which of the following statements about bribery is most accurate?
It is illegal for a U.S. corporation to bribe an official of a foreign government or political party to obtain or retain business in a foreign country.
Which of the following is the best example of a nondurable good?
Laundry detergent
A(n) __________ scale is one in which the respondent indicates the extent to which he or she agrees or disagrees with a statement.
Likert scale
Which of the following examples best demonstrates a company's appreciation of another country's values?
McDonald's restaurants in India serve a full line of products except for hamburgers made from beef.
Which of the following statements about relationship marketing is most accurate?
Relationship marketing occurs when there is a personal, ongoing relationship between an organization and its customers.
A filtering of exposure, comprehension, and retention is called __________.
Selective perception
The third step of the marketing research approach is to __________.
The five-step marketing research approach includes: Step 1 - define the problem; Step 2 - develop the research plan; Step 3 - collect relevant information; Step 4 - develop findings; and Step 5 - take marketing actions.
When foreign currencies can buy more U.S. dollars,
U.S. products are less expensive to foreign customers.
The break-even point (BEP) = [Fixed cost ÷ (Unit price − __________)].
Unit variable cost
Which of the following statements about using sex appeals in advertising is FALSE?
While sex appeals are remembered widely by viewers, they fail to draw initial attention.
A marketing research approach that uses a discussion leader to interview 6 to 10 past, present, or prospective customers simultaneously is referred to as
a focus group
Which of the following is an advantage of using magazines as an advertising medium?
a magazine ad has a long life
The VALS framework is an example of
a psychographic system
A field of experience refers to
a similar understanding and knowledge that the sender and receiver apply to the message so that it can be communicated effectively during the communication process.
Elastic demand exists when
a small percentage decrease in price produces a larger percentage increase in quantity demanded.
The promotional mix includes __________, personal selling, sales promotion, public relations, and direct marketing.
advertising
The generation of children born between 1946 and 1964 is referred to as
baby boomers
Figure 9-5 above represents the seven stages of the new-product development process. Stage 4 is the __________ stage.
business analysis
A technique that managers use to categorize strategic business units (SBUs) as question marks, stars, cash cows, or dogs is referred to as a(n)
business portfolio analysis.
Inseparability in services means consumers
cannot separate the service itself from the deliverer of the service.
SBUs with dominant shares of slow-growth markets that provide cash to cover the organization's overhead and to invest in other SBUs are referred to as __________.
cash cows
All of the following are examples of sales promotion tools EXCEPT:
catalogs
The feeling of postpurchase psychological tension or anxiety consumers may experience when faced with two or more highly attractive alternatives is referred to as
cognitive dissonance
Figure 9-5 above represents the seven stages of the new-product development process. Stage 7 is the __________ stage.
commercialization
When Cadillac uses advertising to promote specific features of its Escalade hybrid, it is using which type of product advertisement?
competitive
All of the following are examples of test markets EXCEPT:
concept test market
To be successful, odd-even pricing depends on
customers' perceptions of price.
The facts and figures related to the problem are referred to as __________.
data
Yield management is considered to be a __________ approach to pricing.
demand-oriented
The second step of the marketing research approach is to __________.
develop the research plan
In the Maslow hierarchy of needs, those needs involving personal fulfillment are called __________.
self-actualization
A sudden drop in the average consumer income would be an example of which environmental force?
economic
The clandestine collection of trade secrets or proprietary information about a company's competitors is referred to as
economic espionage.
Those in favor of protectionism argue that it
encourages the development of domestic industries.
Effective marketing benefits society because it
enhances competition, which improves the quality of products and services and lowers prices.
Target pricing refers to
estimating the price that ultimate consumers would be willing to pay for a product, then working backward through markups taken by retailers and wholesalers to determine what price to charge wholesalers.
In using a gap analysis, the two basic components of a customer's evaluation of a service are
expectations and experience.
In the communication process, noise refers to
extraneous factors that can work against effective communication by distorting a message or the feedback received during the communication process.
Life insurance companies like Prudential hope to get you to worry about how your loved ones will be provide for themselves once you have passed away. They paint a very gloomy picture of the possible consequences of not having life insurance, and they make a point of recommending that you act immediately because you never know when it is going to be too late. This is an example of a __________.
fear appeal
The EU has benefited firms in its member nations because
firms do not need to market their products and services on a nation-by-nation basis.
The average number of times a person in the target audience is exposed to an advertisement is referred to as __________.
frequency
All of the following are environmental forces that affect an organization EXCEPT:
geographical
Tariffs refer to
government taxes on products or services entering a country that primarily serve to raise prices on imports.
If taxes rise at a faster rate than incomes, consumers will
have less disposable income and try to economize.
The type of appeal used to imply either directly or subtly that the product is more fun or exciting than competitors' offerings is referred to as a(n) __________.
humorous appeal
The primary purpose of a sneak preview of a film prior to its release is to
identify necessary changes prior to final editing.
The goal of a SWOT analysis is to
identify the critical strategy-related factors that can impact the firm.
Services depend on the people who provide them. As a result, their quality varies with each person's capabilities and day-to-day job performance. This element of services is referred to as __________.
inconsistency
There are five stages in the consumer purchase decision process. The second stage is __________.
information search
In a marketing context, the acronym IMC refers to __________.
integrated marketing communications
A(n) __________ firm engages in trade and marketing in different countries as an extension of the marketing strategy in its home country.
international
In terms of the global marketplace, there are three primary types of companies: __________ firms, multinational firms, and transnational firms.
international
Generally, the U.S. population is becoming
larger, older, and more diverse
Once a company has decided to enter the global marketplace, it must select a means of market entry. Four general options exist: (1) exporting; (2) __________; (3) joint venture; and (4) direct investment.
licensing
The relatively homogenous groups of prospective buyers that have common needs and will respond similarly to a marketing action is referred to as a(n) __________.
market segment
The marketing manager's controllable factors - product, price, promotion, and place - that can be used to solve a marketing problem are referred to as (the) __________.
marketing mix
Two important disadvantages of secondary data are __________ and __________.
not up-to-date; not specific enough for the project
Because there are few sellers, price competition among firms is not desirable for them in which form of competition?
oligopoly
A set of values, ideas, attitudes, and norms of behavior that is learned and shared among the members of an organization is referred to as its __________.
organizational culture
The ratio of __________ to price is referred to as value.
perceived benefits
Which list below presents the Maslow hierarchy of needs in its correct order, beginning with the lowest level need and moving up to the highest level need?
physiological, safety, social, personal, and self-actualization
The three primary types of product advertisements are __________, competitive, and reminder.
pioneering
There are five stages in the consumer purchase decision process. The fifth stage is __________.
postpurchase behavior
Facts and figures that are newly collected for a project at hand are referred to as
primary data
The four Ps of the marketing mix are
product, price, promotion, and place.
All of the following are synonyms for price EXCEPT:
profit
The element of the marketing mix that describes a means of communication between the seller and buyer is known as
promotion
The argument for protectionism is that it
protects a nation's political security.
Consumers accompanied by children
purchase about 40 percent more than when shopping alone.
The percentage of households in a market that are tuned to a particular television show or radio station is referred to as __________.
rating
What marketing metric determines whether a TV program like American Idol remains on the Fox broadcast TV network?
rating
All of the following are sources for new product ideas EXCEPT:
regulators.
A proposed law in New Jersey would ban the use of tanning beds by anyone under the age of 18. This restriction would be an example of which environmental force?
regulatory
The marketing department of an organization is responsible for facilitating __________.
relationships, partnerships, and alliances with the organization's customers, shareholders, suppliers, and other organizations
An example of a marketer-dominated source of information consulted during an external search would include
salespeople
The process of selecting elements from a population, collecting data from them, and using it as representative of all those a researcher is interested in is referred to as
sampling
In marketing research, the term sampling refers to
selecting representative elements from a population and treating their answers as typical of all those in whom they are interested.
Interpreting information so that it is consistent with one's attitudes and beliefs is referred to as
selective comprehension
Prestige pricing refers to
setting a high price so that quality- or status-conscious consumers will be attracted to the product and buy it.
Penetration pricing refers to
setting a low initial price on a new product to appeal immediately to the mass market.
The demographic characteristics of the population and its culture are referred to as
social forces
The set of environmental forces that consists of the demographic characteristics of the population and its culture is referred to as
social forces
Three teenage girls spent an hour at a store trying on various outfits, looking at possible combinations, and asking each other, "How do you think this looks on me?" This situation is most closely related to which of the following situational influences?
social surroundings
Groupthink occurs in a meeting when
someone suspects that there is a problem with the new product concept but is afraid to speak up because everyone else is so enthusiastic about it.
Adding a fixed percentage to the cost of all items in a specific product class is referred to as
standard markup pricing.
The acronym SWOT, as in SWOT analysis, stands for __________.
strengths, weaknesses, opportunities, and threats
The fifth step of the marketing research approach is to __________.
take marketing actions
One or more specific groups of potential consumers toward which an organization directs its marketing program is referred to as a
target market
The North American Free Trade Agreement was designed to encourage free trade between
the United States, Canada, and Mexico.
The combined American Marketing Association's 2004 and 2007 definitions of marketing used in the textbook define marketing as
the activity for creating, communicating, delivering, and exchanging offerings that benefit its customers, the organization, its stakeholders, and society at large.
A customer value proposition is
the cluster of benefits that an organization promises customers to satisfy their needs.
With respect to advertising, CPM is defined as
the cost of reaching 1,000 individuals or households with the advertising message in a given medium.
Cognitive dissonance refers to
the feeling of postpurchase psychological tension or anxiety consumers may experience when faced with two or more highly attractive alternatives.
Five trends in the past decade have significantly influenced the landscape of global marketing. One of them is
the growing prevalence of economic espionage.
Market share refers to
the ratio of sales revenue of the firm to the total sales revenue of all firms in the industry, including the firm itself.
Triple-bottom line refers to
the recognition of the need for organizations to improve the state of people, the planet, and profit simultaneously if they are to achieve sustainable, long-term growth.
A global marketing strategy refers to
the strategy of transnational firms that employ the practice of standardizing marketing activities when there are cultural similarities and adapting them when cultures differ.
A marketing dashboard refers to
the visual computer display of the essential information related to achieving a marketing objective.
In 1962, President John F. Kennedy outlined a Consumer Bill of Rights that codified the ethics of exchange between buyers and sellers. These were the right: (1) __________; (2) to be informed; (3) to choose; and (4) to be heard.
to safety
Which of the following is a strategy for a market leader (rather than a market challenger) when marketing a low-involvement product?
use repetitive advertising messages that reinforce a consumer's knowledge or assure buyers they made the right choice
A __________ is a need that is shaped by a person's knowledge, culture, and personality.
want
Ideally, before a new product or service is developed, a firm should have a precise protocol, which is a statement that identifies: (1) a well-defined target market; (2) specific customers' needs, wants, and preferences; and (3) __________.
what the product or service will be and do to satisfy consumers