Chapter 2 questions

Which of the following helps companies create marketing strategies that are difficult to replicate and have long-term profit potential? a. breakthrough opportunities b. targeted advantages c. market development opportunities d. world-class options

a. breakthrough opportunities

First Bank of Canada has people who answer phone calls and help customers resolve any issues they have with the bank. This is an example of: a. personal marketing b. mass selling c. customer service d. direct advertising e. publicity

c. customer service

The number of purchases a person could make from a firm during the course of their relationship is called the: a. stream of purchase value b. customer equity stream c. customer revenue value d. stream of profits e. customer lifetime value

e. customer lifetime value

A company that is working to increase customer purchases of its current products in its current market is trying to achieve ________ _________.

market penetration

A ________________ ______________ consists of variables a company controls and uses to attract and satisfy a particular target group.

marketing mix

True or false: The marketing management process is continuous

true

"Marketing-oriented managers," in contrast to "production-oriented" managers, a. see all customers as different b. see advertising as key to sales growth c. focus on mass markets d. use one marketing mix for "everyone"

a. see all customers as different

Denny's adds two new meals to its menus. This is an example of which marketing mix area? a. product b. price c. promotion d. place

a. product

Strategic management planning usually includes planning for Check all that apply a. production b. lawn care c. marketing d. finance e. human resources

a. production c. marketing d. finance e. human resources

Multiple marketing plans make up a marketing Check all that apply a. program b. strategy c. profit d. mix

a. program b. strategy

Following the marketing strategy planning process, place the following activities in order with the first activity at the top. Evaluate customer needs. Choose a target market. Segment the market. Develop a marketing mix.

1. Evaluate customer needs. 2. Segment the market. 3. Choose a target market. 4. Develop a marketing mix.

Order the steps of the marketing management process. Guiding the implementation of marketing plans. Controlling marketing plans. Planning marketing activities.

1. Planning marketing activities. 2. Guiding the implementation of marketing plans. 3. Controlling marketing plans.

Match the marketing decision with the correct strategy decision area. 1. branding 2. transporting 3. Internet advertising 4. discounts a. place b. price c. product d. promotion

1. branding: c 2. transporting: a 3. Internet advertising: d 4. discounts: b

Match the type of opportunity with the type of product and market. 1. market penetration 2. market development 3. product development 4. diversification a. new products and present markets b. new products and new markets c. present products and present markets d. present products and new markets

1. market penetration: c 2. market development: d 3. product development: a 4. diversification: b

__________ __________ is communicating with large numbers of customers at the same time

Mass selling

Which of the following are the result of advances in e-commerce, transportation, and communications? Check all that apply. International companies have been replaced by local firms. Small firms can operate internationally at little expense. Firms can more easily reach international customers. Most companies are now purely online.

Small firms can operate internationally at little expense. Firms can more easily reach international customers.

________ ________ says that a marketing mix is tailored to fit some specific customers

Target marketing

Which of the following illustrate breakthrough opportunities? Check all that apply. a. A drug company develops a patented drug that cures some types of cancer b. Someone opens a new coffee shop that also serves tea and cacao. c. A pizza restaurant offers a "peanut pizza" after realizing customers like this topping d. A national chain of bookstores begins selling watches e. A company signs all record labels to exclusive deals allowing music streaming

a. A drug company develops a patented drug that cures some types of cancer e. A company signs all record labels to exclusive deals allowing music streaming

Which of the following statements about mass selling is true? Check all that apply. a. Advertising is one form of mass selling b. Mass selling can involve media that includes magazines and the Internet c. Mass selling includes direct spoken communication between buyers and sellers d. Publicity is one form of mass selling e. Personal selling is one form of mass selling

a. Advertising is one form of mass selling b. Mass selling can involve media that includes magazines and the Internet d. Publicity is one form of mass selling

Which of the following statements about the Four Ps is true? a. Each of the four Ps contributes to a whole marketing strategy b. In practice, two or three of the four Ps are part of most firms' marketing mix c. When marketing strategy decisions are made, the price decision should come first d. For consumer products, the product decision is most important

a. Each of the four Ps contributes to a whole marketing strategy

Which of the following are examples of a competitive advantage for a Mexican restaurant in a medium-sized town? Check all that apply a. It has lower prices but smaller portions than competitors b. Its menu, prices, and location are equal to two competitors c. It has lower prices and better advertising than its competitors d. It has higher prices, a better location, and better customer service than other restaurants in town e. it has a better location and lower prices than its competitor

a. It has lower prices but smaller portions than competitors c. It has lower prices and better advertising than its competitors d. It has higher prices, a better location, and better customer service than other restaurants in town e. it has a better location and lower prices than its competitor

What managerial process involves cultivating and keeping a relationship that matches an organization's resources with its market opportunities? Check all that apply a. Marketing managers specify expected results b. The marketing management job is continuous c. Marketing managers use feedback to guide changes to plans d. Marketing managers set guidelines for implementation e. The process ignores new opportunities

a. Marketing managers specify expected results b. The marketing management job is continuous c. Marketing managers use feedback to guide changes to plans d. Marketing managers set guidelines for implementation

Which of the following statements about marketing strategy are true? Check all that apply. a. Strategies include identifying both a target market and a marketing mix. b. Target markets should be ignored until after determining a marketing mix. c. Marketing mixes are designed before finding target markets to which the mixes appeal d. The needs of the target market should drive decisions on the marketing mix.

a. Strategies include identifying both a target market and a marketing mix. d. The needs of the target market should drive decisions on the marketing mix.

Which of the following could be sources of competitive advantage? Check all that apply a. a well-trained and experience sales force b. lower prices than competitors c. a target market with a higher income d. a well-known and highly respected brand name e. agreements with the best retailers in the product category

a. a well-trained and experience sales force b. lower prices than competitors d. a well-known and highly respected brand name e. agreements with the best retailers in the product category

Target marketing a. can mean lots of customers and big profits b. does not apply to large markets c. meets the needs of heterogeneous groups of customers d. sacrifices sales volume for profits

a. can mean lots of customers and big profits

When a marketing mix has an element that sets it apart from those of the competition, it is said to have: a. differentiation b. opportunity c. competition d. targeting

a. differentiation

What are the specific steps in the marketing management process? Click all that apply. a. directing implementation of marketing activities b. controlling marketing plans c. planning marketing activities d. conducting marketing research

a. directing implementation of marketing activities b. controlling marketing plans c. planning marketing activities

A local restaurant specializing in breakfast and lunch decides to start offering its sandwiches in local school cafeterias. This is an example of: a. market development b. diversification c. market penetration d. product development

a. market development

To better appeal to rural Chinese customers, HP developed a ___________ that included a lower priced computer model with more basic features; it also built close relationships with stores in rural China, which included training of salespeople and advertising. In this case, the rural Chinese customers are the ___________. a. marketing mix; target market b. branding shift; controlling interest c. opportunity plan; variable group d. marketing code; interested parties

a. marketing mix; target market

An organization's ________ combines multiple marketing plans into a single, large plan a. marketing program b. product placement plan c. promotional strategy d. marketing mix

a. marketing program

A successful marketing strategy pairs a. opportunities with a company's resources and goals b. company goals with employee strengths c. financial goals with company strengths d. the competition ideas and customer needs

a. opportunities with a company's resources and goals

The three basic jobs of marketing managers are: a. planning, implementation, and control b. promotion, price-setting, and product development c. marketing, producing, and servicing d. hiring, firing, and compensation

a. planning, implementation, and control

When targeted customers _____________, the company is said to have a competitive advantage. a. prefer a company's marketing mix over that of a competitor b. seek similar products from a competitor c. agree to attend a sale or other special in-store event d. offer positive reviews for a company's products

a. prefer a company's marketing mix over that of a competitor

A marketing mix that is differentiated from that of the competition Check all that apply a. should also address customer needs that the competition is not addressing b. offers customers something that the competition does not c. simply meets customer needs in a way that is comparable with the competition d. will always win over customers

a. should also address customer needs that the competition is not addressing b. offers customers something that the competition does not

What managerial process involves cultivating and keeping a relationship that matches an organization's resources with its market opportunities? a. strategic management planning b. management marketing control c. production management planning d. advertising implementation

a. strategic management planning

"Target marketing" as compared to "mass marketing" a. tailors marketing mix for specific customers b. assumes all customers have specific needs c. focuses on profits in a specific demographic d. is limited to small markets

a. tailors marketing mix for specific customers

Which of the following are part of a marketing plan? Check all that apply a. the company resources needed b. the time-related details for carrying out a strategy c. a firm's marketing program d. the expected sales and profit results e. a marketing strategy

a. the company resources needed b. the time-related details for carrying out a strategy d. the expected sales and profit results e. a marketing strategy

Which of the following are examples of Place decisions? Check all that apply. a. transporting goods b. making decisions about packaging c. recruiting intermediaries d. hiring salespeople e. choosing a channel or distribution

a. transporting goods c. recruiting intermediaries e. choosing a channel or distribution

A marketing mix is made up of _________ that a company manipulates in order to satisfy a chosen group. a. variables b. customers c. markets d. segments

a. variables

A S.W.O.T analysis helps a company figure out which of the following? Check all that apply a. weaknesses b. opportunities c. threats d. strengths e. goals f. budgets

a. weaknesses b. opportunities c. threats d. strengths

Nonpersonal communication of a product that is paid for by an identified sponsor is known as __________

advertising

Which of the following statements about the marketing strategy planning process are true? Check all that apply. a. The marketing strategy process should start with a specific marketing strategy b. A marketing strategy begins with an evaluation of customers, competitors, and company c. A marketing strategy should begin with the identification of really different strategies d. The marketing strategy process starts broadly and then narrows down

b. A marketing strategy begins with an evaluation of customers, competitors, and company d. The marketing strategy process starts broadly and then narrows down

Which of the following statements about marketing strategy, marketing plan, and marketing program are true? Check all that apply. a. A marketing program includes multiple marketing strategies but just one marketing plan. b. A marketing strategy includes a marketing mix for one target market. c. A marketing plan blends all of a firm's marketing strategies into one big plan d. A marketing plan includes a marketing strategy and time-related details and control procedures e. A marketing strategy includes multiple marketing plans

b. A marketing strategy includes a marketing mix for one target market. d. A marketing plan includes a marketing strategy and time-related details and control procedures

Which of the following are examples of Place decisions? a. Apple offers college students a discount on the iPhone. b. Dell ships a computer to a customer via air freight. c. Sprint decides to sell phone service through Walmart stores. d. Sears opens new stores in South Dakota. e. McDonald's adds a new drink to its menu.

b. Dell ships a computer to a customer via air freight. c. Sprint decides to sell phone service through Walmart stores. d. Sears opens new stores in South Dakota.

Which of the following are true with respect to customer equity? Check all that apply. a. It changes a firm's emphasis to acquiring new customers b. It helps marketing managers make decisions that will increase future profits c. It helps companies make decisions that will affect long-term profits d. It has a short-term focus that typically lasts no longer than a quarter or year

b. It helps marketing managers make decisions that will increase future profits c. It helps companies make decisions that will affect long-term profits

Which of the following are true about personal selling? Check all that apply a. It takes place after a sale has been made b. It involves spoken communication c. It can occur over the telephone d. It can occur over e-mail

b. It involves spoken communication c. It can occur over the telephone

Which of the following are potential concerns about international opportunities? Check all that apply a. Competitors in other countries are usually the same as at home b. Some countries have instability because of political or social issues c. Cultural differences can create problems d. Laws can be different in other countries

b. Some countries have instability because of political or social issues c. Cultural differences can create problems d. Laws can be different in other countries

Which of the following are always true about opportunities? Check all that apply. a. New opportunities are more important than current opportunities b. The best opportunities take advantage of a company's strengths c. All profitable opportunities should be pursued d. Managers should look for new opportunities

b. The best opportunities take advantage of a company's strengths d. Managers should look for new opportunities

Which of the following are true about the specific qualitative and quantitative screening criteria marketing managers develop? Check all that apply a. These criteria are most useful after the firm develops a marketing mix b. These criteria are useful in figuring out the markets in which a firm wants to compete c. The firm's objectives and available resources help determine the appropriate criteria to use d. Quantitative criteria are generally avoided by most firms

b. These criteria are useful in figuring out the markets in which a firm wants to compete c. The firm's objectives and available resources help determine the appropriate criteria to use

The people who make up a company's target market have which two qualities? Check all that apply. a. They lack the company's product. b. They are desirable to the company. c. They are similar. d. They are located in a small geographic region

b. They are desirable to the company. c. They are similar.

Which of the following are examples of operational decisions that the marketing manager in charge of Diet Coke could make? Check all that apply. a. expand the number of different package sizes b. add a new 14-oz can c. offer early summer price deals to convenience stores d. produce three videos for YouTube featuring Lady Gaga drinking Diet Coke e. promote the brand to college students

b. add a new 14-oz can c. offer early summer price deals to convenience stores d. produce three videos for YouTube featuring Lady Gaga drinking Diet Coke

The term "mass marketer" a. is a term that describes small businesses with big ambitions b. describes large firms that aim at specific groups c. means the same thing as mass marketing d. refers to firms that use the typical production-oriented approach

b. describes large firms that aim at specific groups

Specifying a target market and corresponding marketing mix are the two elements that comprise the: a. discovery of customer needs b. development of a marketing strategy c. discovery of an organizational match d. development of whole company marketing

b. development of a marketing strategy

Which of the following are marketing planning activities? Check all that apply a. measuring results b. evaluating opportunities c. creating marketing strategies d. developing a marketing program e. setting objectives

b. evaluating opportunities c. creating marketing strategies d. developing a marketing program e. setting objectives

Marketing plans are put into action during a. operational planning b. implementation c. action-orientation d. control

b. implementation

The plans implemented by a whole company should be a. product-oriented b. market-oriented c. examples of secondary marketing d. the same as a marketing plan

b. market-oriented

Which of the following are part of the "marketing mix"? Check all that apply a. target market b. promotion c. product d. customer

b. promotion c. product

Nordstrom's department store sends out emails that announce new styles to women who have previously bought shoes at Nordstrom. The women receiving the emails are one of Nordstrom's a. distribution channels b. target markets c. marketing programs d. marketing mixes

b. target markets

The key parts of a marketing strategy are: Check all that apply a. an analysis of competitor insights b. the controllable variables the company puts together c. a control program that measures results d. a fairly similar group of customer the company wants to appeal to e. objectives the firm seeks to achieve

b. the controllable variables the company puts together d. a fairly similar group of customer the company wants to appeal to

Companies use __________ opportunities to develop marketing strategies that are difficult to replicate and have the potential to make the company a lot of money for a long time

breakthrough

Which of the following are true of market segmentation? Check all that apply. a. Market segmentation usually occurs after the firm develops a marketing mix. b. Segmentation organizes competitors into groups based on their similarities c. A major reason for market segmentation is to help a manager truly understand customers d. Managers use segmentation to help them figure out which groups of customers to serve

c. A major reason for market segmentation is to help a manager truly understand customers d. Managers use segmentation to help them figure out which groups of customers to serve

Which of the following are examples of market penetration strategies that could be used by AW cellular phone company? Check all that apply a. AW adds new products like iPods and personal computers to appeal to its current customers b. AW moves from the Unites States to Canada c. AW offers discounts to customers of its main competitor d. AW sends promotions to new customers to encourage them to purchase more minutes

c. AW offers discounts to customers of its main competitor d. AW sends promotions to new customers to encourage them to purchase more minutes

Which of the following statements about differentiation are true? Check all that apply a. Having more convenient locations than the competition is not a source of differentiation b. Having a better advertising campaign than the competition would not be a source of differentiation c. Offering a lower price than the competition--while being similar on the other three Ps--would be a source of differentiation d. Differentiation can only occur if one or more of the four Ps is done better than the competition e. True differentiation occurs only if customers see the firm's offering as being better with regard to all four Ps

c. Offering a lower price than the competition--while being similar on the other three Ps--would be a source of differentiation d. Differentiation can only occur if one or more of the four Ps is done better than the competition

The main reason why firms identify target markets is because it a. makes the marketing manager's job easier b. focuses managers on small, manageable market segments c. makes it possible to better satisfy specific customers' needs d. is far less expensive than mass marketing

c. makes it possible to better satisfy specific customers' needs

A company that engages in ________ marketing attempts to use the same marketing mix to generally appeal to everyone. a. potential b. target c. mass d. micro

c. mass

Nike learns that many people in China are finding more time for leisure and are turning to sports to fill that leisure. For Nike, this is a(n) a. weakness b. threat c. opportunity d. strength

c. opportunity

When a seller engages in personal selling, the seller uses __________ to tell a potential customer about a product or service a. written communication b. social media c. verbal communication d. promotional handouts

c. verbal communication

A _________ of ___________ is a chain of companies or individuals who help a product move through the various stages of the producer to consumer process

channel of distribution

A company's ________ ________ is what the company can expect to earn from its current and potential customers during a particular period

customer equity

Companies predict how many purchases a single customer might make from the company during the customer's life, a measurement called the _________ _________ __________.

customer lifetime value

___________ __________ is a personal communication between a seller and a customer who wants the seller to resolve a problem with a purchase

customer service

After college, John purchased a Toyota Tacoma for $23,000. He got married recently and is shopping for a more family-oriented vehicle. His is considering purchasing a $26,000 Toyota Camry. Over the course of his life, John will have many other opportunities to purchased Toyota vehicles, including a $34,000 Toyota 4Runner for weekend camping activities. John's customer lifetime value is at least a. $830,000 b. $92,000 c. $166,000 d. $83,000

d. $83,000

Which of the following are true for firms considering international opportunities? Check all that apply. a. it is getting more difficult for small firms to compete internationally b. risks are usually lower in international markets c. selling internationally raises costs because of economies of scale d. advances in transportation make it cheaper to ship around the world e. trade barriers are being lowered

d. advances in transportation make it cheaper to ship around the world e. trade barriers are being lowered

A producer of washing machines, dryers, and dishwashers decides to start offering accounting services to small businesses. This is an example of a. customer service b. product development c. market development d. diversification

d. diversification

Which of the following is usually easiest for a firm to pursue? a. international b. diversification c. product development d. market penetration

d. market penetration

The marketing mix, the target mix, the company resources necessary, and the expected results are all detailed in a: a. publicity plan b. target market document c. company budget d. marketing plan

d. marketing plan

A short-run decision that will enable a company to execute elements of a marketing plan is a(n) _________ decision a. outcome b. tactical c. working d. operational e. control

d. operational

Which of the following is focused on informing people about the features of the product? a. price b. place c. people d. promotion

d. promotion

A company is attempting to achieve market ___________ when it works to increase sales by selling its current present products in new markets.

development

When a company's marketing mix is somehow unique from the marketing mix of a rival, it is said to have _____________.

differentiation

Working in a new line of business, such as a new product of market, is known as _________

diversification

Which of the following is an example of an operational decision rather than a strategy policy? a. "We will develop new products to appeal to a younger target market." b. "We will expand distribution to the east coast." c. "We will increase our advertising in big cities." d. "We will raise prices to maintain a prestigious reputation." e. "We will keep stores open for longer hours."

e. "We will keep stores open for longer hours."

A ___________ ____________ is a written document that identifies a marketing strategy and spells out the various elements that are necessary for fulfilling that strategy

marketing plan

The ___________ area of the four Ps focuses on developing the right good or service for the selected market

product

The "four Ps" of the marketing mix are ___________, ___________, ___________, and ____________.

product, place, promotion, and price

The nonpersonal, nonpaid communication of a product is known as __________

publicity

Promotion activities that increase customer interest or inspire customers to purchase a product or service and that are not advertising, publicity, or personal selling, fall into the category of ____________ ____________.

sales promotion

High-end retailer Tiffany & Co. sees signs of an economic downturn. For Tiffany this represents a(n): a. threat b. opportunity c. weakness d. strength

threat