M450 Mid Term Exam

Anne, a beautician by profession, owns a salon in the small town of Franklin, New Jersey. Every weekend, she makes it a point to visit the other salons in Franklin to find out about the beauty services they offer to customers. Anne is attempting to conduct marketing research by

Checking out rivals

Value Central has a partnership of high trust and commitment with certain suppliers and gives them access to its sophisticated and detailed daily, individual store-based sales data. In exchange, those suppliers are responsible for managing Value Central's inventory of their products. This relationship is best described as ________.

Collaborative

Kotler and Casoline suggested eight factors that marketers must keep in mind in order to deal with risk and uncertainty. Which of the following statements are they most likely to agree with when the environment is uncertain?

Companies should push aggressively for the market share of their competitors.

Marketers who target consumers on the basis of their ________ believe that they can influence purchase behavior by appealing to people's inner selves.

Core values

Cable TV operators and cellular carriers suffer from high levels of ________, or customer defections.

Customer churn

________ is the difference between the prospective customer's evaluation of all benefits and all costs of an offering and the perceived alternatives.

Customer-perceived value

The responses marketers seek from prospects include all of the following EXCEPT

Decampment

Which of the following is most consistent with the integrated marketing approach?

All communication to consumers must deliver a consistent message irrespective of the medium.

________ are a person's enduring favorable or unfavorable evaluations, emotional feelings, and action tendencies toward some object or idea.

Attitudes

A consumer tells another consumer, "Every time I eat at Big Bill's Steakhouse, I get poor service." Whether this is true or not, it is the consumer's perception. This is an example of consumers basing future predictions on the quickness and ease with which a particular example of an outcome comes to mind. This scenario would be an illustration of the ________ heuristic.

Availability

Soccer's World Cup is promoted aggressively to both companies and fans. This is an example of marketing a(n) ________.

Event

In buying alliances, participants offer to trade goods or services.

False

The demand for business goods is ultimately derived from the demand for raw materials.

False

________ is based on the development, design, and implementation of marketing programs, processes, and activities that recognize their breadth and interdependencies.

Holistic marketing

Industry boundaries are blurring rapidly as companies identify new opportunities at the intersection of two or more industries. This is called ________.

Industry convergence

Small sellers to a buying center should first concentrate their marketing efforts on reaching

Influencers

As the manager of an organization that is attempting to build a marketing information system (MIS), you have been informed that an MIS is built upon three fundamental information sources. The sources are ________, marketing intelligence activities, and marketing research.

Internal company records

Which aspect of holistic marketing motivates employees and ensures that everyone in the organization embraces appropriate marketing principles, especially senior management?

Internal marketing

Which of the following statements about marketing is true?

It can help create jobs in the economy by increasing demand for goods and services.

Which of the following best represents the chief advantage of pursuing a strategy of multiple segment specialization?

It diversifies the firm's risk.

Each of the following is true about the Internet's impact on the way business is conducted today, EXCEPT one. Identify the exception.

It has facilitated mass marketing but not the sale of customized products.

Which of the following statements about marketing is TRUE?

It helps to build a loyal customer base but has no impact on a firm's intangible assets.

In which of the following is a person performing the role of an influencer?

Liam heads the Tech team at LKG and provides information for evaluating the possible alternatives.

The aim of customer relationship management is to produce high customer ________.

Loyalty

James Frank has been put in charge of gathering marketing intelligence, disseminating it within his organization, and eventually directing action on the information. Mr. Frank's task is best described as part of the ________ process.

Market-sensing

________ management is the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value.

Marketing

________ provide diagnostic information about how and why we observe certain effects in the marketplace, and what that means to marketers.

Marketing insights

In a ________ purchasing situation, the buyer wants to make some change to existing product specifications, prices, delivery requirements, or other terms

Modified rebuy

________ are basic human requirements, while ________ are the ways in which those requirements are satisfied.

Needs; wants

Jack has shopped at VeggiesNmore. He was happy with the experience and thought that this could be an alternative to GreenFoods. However, he is also eager to try out other stores in the neighborhood. He is in the ________ stage of the marketing funnel as far as shopping at VeggiesNmore is concerned.

Nonrejecter

The ________ begins with sales representatives and dealers sending orders to the firms and is followed by the sales department preparing invoices, and finally generating shipping and billing documents.

Order-to-payment cycle

The heart of the internal records system is the ________ because customers favor firms that can promise timely delivery.

Order-to-payment cycle

When a firm aims to underprice competitors and win market share, it is using a(n) ________ strategy that requires relatively less marketing skills as compared to other strategies.

Overall cost leadership

Chipotle engages customers through Facebook, Twitter, and other social media via its grassroots "Food with Integrity" digital strategy, which puts the focus on what it sells and where it comes from. These are examples of ________ media.

Owned

________ goods constitute the bulk of most countries' production and marketing efforts.

Physical

The approach to cost reduction that studies whether components can be redesigned or standardized or made by cheaper methods of production without adversely impacting product performance is termed as ________.

Product value analysis (PVA)

A ________ is a person, household, or company that over time yields a revenue stream that exceeds by an acceptable amount the company's cost stream of attracting, selling, and servicing that customer.

Profitable customer

When a marketer tries to alter consumers' beliefs about her company's brand to get the consumers to rethink a purchase decision, she is using ________.

Psychological repositioning

_______ marketing aims to build mutually satisfying long-term collaboration with key constituents, such as customers, employees, suppliers, distributors, and other marketing partners, in order to earn and retain their business.

Relationship

What are the four broad components of holistic marketing?

Relationship, integrated, internal, and performance marketing

________ reflects a customer's judgment of a product's performance in relation to his or her expectations.

Satisfaction

A(n) ________ need is one that the consumer is reluctant or unwilling to explicitly verbalize.

Secret

As economies advance, a growing proportion of the economy's activities focuses on the production of ________.

Services

All of the following are benefits of following the ________ approach to target market selection: a strong knowledge of the segment's needs, a strong market presence, operating economies through specializing in production, distribution, and promotion.

Single-segment concentration

Which of the following is an example of a functional hub?

SupplyLink.com offers manufacturers from different industries information on ensuring workplace safety.

Which of the following types of marketing research firms gathers consumer and trade information and then sells it for a fee (e.g., Nielsen Company)?

Syndicated-service research firms

A customer touch point for Abacus Airlines would be an item such as ________.

The reservation desk

Which of the following is TRUE for activity-based costing (ABC)?

The tools of ABC can be used to conduct customer profitability analysis

Which of the following is TRUE for business marketers?

They deal with fewer and larger buyers than consumer marketers.

In marketing cosmetics, laundry detergent, and products like Pringles to consumers, P&G manages ________ such as eye-catching package designs and innovative product functions.

Touch points

"What will we do if it happens?" is a question that managers typically ask while conducting a scenario analysis.

True

An environmental threat is a challenge posed by an unfavorable trend or development that, in the absence of defensive marketing action, would lead to lower sales or profit.

True

Firms that can develop substitute materials for finite nonrenewable resources have an excellent opportunity.

True

Sigmund Freud assumed that the psychological forces shaping people's behavior are largely unconscious, and that people cannot fully understand their motivations.

True

Walmart and Target stores could be part of the distribution channel for a marketer of hair care products.

True

If you were an upper-level marketing executive of a large seller of trucks, which of the following strategies would be most appropriate in reaching buying center targets?

Use multilevel in-depth selling.

The marketing concept holds that ________.

a firm should find the right products for its customers, and not the right customers for its products

What are customer touch points?

all direct or indirect interactions between the customer and the company

Joanna owns a chain of fast-food joints. As the chain became more and more successful, she decided to contribute a share of her profits each year to support cancer research. This is an example of ________.

cause-related marketing

The actual and potential rival offerings and substitutes that a buyer might consider are referred to as the ________.

competition

Which of the following terms can be defined as "the shared experiences, stories, beliefs, and norms that characterize an organization"?

corporate culture

When companies measure the number of people who are willing and able to buy their products, they are measuring ________.

demand

In an attempt to create greater competition and growth opportunities, countries often ________.

deregulate industries

The success of online purchasing resulted in ________ in the delivery of products and services by intervening in the traditional flow of goods through distribution channels.

disintermediation

When eBay and Amazon.com cut out the majority of middlemen that normally would participate in the exchange process, it is an example of ________.

disintermediation

The Soccer World Cup is promoted aggressively to both companies and fans. This is an example of marketing a(n) ________.

event

In Walt Disney's Magic Kingdom, customers can visit a fairy kingdom, a pirate ship, or even a haunted house. Disney is marketing a(n) ________.

experience

Disintermediation via the Internet has resulted in ________.

greater consumer buying power

Rising promotion costs and shrinking profit margins are the result of ________.

heightened competition

Companies are recognizing that much of their market value comes from ________, particularly their brands, customer base, employees, distributor and supplier relations, and intellectual capital.

intangible assets

Marketers at Johnny Inc. believe in putting their customers ahead of everything else. Their products are carefully designed to meet customer requirements and the entire focus is on achieving customer satisfaction. Johnny Inc. follows the ________ concept in doing business.

marketing

The ultimate outcome of relationship marketing is a unique company asset called the ________, consisting of the company and its supporting stakeholders.

marketing network

Incorporating the holistic view of marketing, the four Ps of the marketing mix can be updated to ________.

people, processes, programs, and performance

Financial accountability and social responsibility marketing are elements of ________.

performance marketing

The "Malaysia, Truly Asia" ad campaign that showcased Malaysia's beautiful landscape and its multicultural society in order to attract tourists is an example of ________ marketing.

place

When Volvo runs ads suggesting that its cars are the safest that money can buy, it is trying to ________.

position its product

The ________ concept holds that consumers will favor offerings with the best quality, performance, or innovative features.

product

Webmax Inc. produced and marketed cameras. After considerable research and development, they developed a new digital camera that had an array of new features. Webmax was so sure about the new offering that they even reduced their marketing budget. What sort of orientation does Webmax have toward the marketplace?

product orientation

McCarthy classified marketing activities into the four Ps of the marketing mix. These four Ps stand for ________.

product, price, promotion, and place

As a major steel manufacturer, SteelMakers Inc. focuses on having the most efficient manufacturing processes in place. The company believes that its competitive edge lies in its ability to offer the best prices. They also maintain an excellent distribution network that ensures wide availability of their products. SteelMakers has a ________.

production orientation

Which of the four new Ps encompasses the old four Ps as well as a range of other marketing activities that might not fit well into the old view of marketing?

programs

In response to threats from such companies as AOL, Amazon.com, Yahoo!, eBay, E*TRADE, and dozens of others, established manufacturers and retailers became "brick-and-click" oriented by adding online services to their existing offerings. This process is known as ________.

reintermediation

A profitable customer yields a ________.

revenue stream that exceeds the company's cost stream

A(n) ________ need is one that the consumer is reluctant or unwilling to explicitly verbalize.

secret

The value delivery process can be divided into three phases, out of which "choosing the value" implies ________, which is the essence of strategic marketing.

segmentation, targeting, and positioning

Rick Johnson trains his company's sales force to go after the consumer. He repeatedly asks his team to bear in mind the essential fact that it is the sales team's responsibility to rouse the consumer's interest and make him feel that he needs the product. A true salesman is one who can convert an indifferent consumer walking into the store into a new customer. Johnson believes in the ________ concept.

selling

The ________ concept holds that consumers and businesses, if left alone, will ordinarily not buy enough of the organization's products.

selling

If a marketer uses warehouses, transportation companies, banks, and insurance companies to facilitate transactions with potential buyers, the marketer is using a ________.

service channel

Car rental firms, hair dressers, and management consultants provide ________.

services

The ________ holds that the organization's task is to determine the needs, wants, and interests of target markets and to deliver the desired satisfactions more effectively and efficiently than competitors in a way that preserves or enhances the consumer's and the society's well-being.

social responsibility marketing concept

A(n) ________ need is a need that the consumer explicitly verbalizes.

stated

The ________ is the channel stretching from raw materials to components to final products that are carried to final buyers.

supply chain

During market segmentation analysis, the marketer identifies which segments present the greatest opportunity. These segments are called ________.

target markets

The ________ includes the actors involved in producing, distributing, and promoting an offering. The main actors are the company, suppliers, distributors, dealers, and the target customers.

task environment

Which of the following reflects the "people" component of the marketing mix?

the internal marketing of the firm

Which of the following holds that consumers prefer products that are widely available and inexpensive?

the production concept

The value of an offering is described as ________.

the sum of the tangible and intangible benefits and costs to customers

Which of the following categories of goods and services is most likely to require an aggressive use of the selling concept?

unsought goods

Companies address needs by putting forth a ________, a set of benefits that they offer to customers to satisfy their needs.

value proposition

When Frank buys his own house, he would like to have a home theater system and a jacuzzi. He plans to save enough money in the next three years so that he can fulfill his wish. Frank's desire for the home theater and the jacuzzi is an example of a(n) ________.

want