Marketing 3401 Test 1 (ch.1-4)

Chaz loves to play a Disney online pirate game in which he gets to create a pirate by choosing hair color, skin color, clothing, and physical features. Then he gets to choose from a variety of quests and can sail a ship, dig for treasure, fight skeleton pirates, or fight the British Navy. This game provides what element of value?

Co-Creation

A company adhering to the marketing concept will likely take which of the following steps if it learned that its customers were dissatisfied with its product?

Conduct research to determine if its customers' needs have changed.

Marketing is defined as producing, and selling products

False

Only a firm's salespeople need to be customer oriented

False

All of the following are basic marketing mix decisions EXCEPT

Sales

If a company uses a sales orientation, consumer complaints would most likely result in:

a modification of the sales production

One facet of marketing is that it is:

a philosophy that stresses customer satisfaction

A sales-oriented firm defines its business (or mission) in terms of:

goods and services

Redefining the business mission of a mattress manufacturer as "a good night's sleep" rather than stating the mission as "the manufacture of high quality mattresses" will:

help ensure the firm retains its focus on consumers

The Greek Squad is a tech support station located inside every Best Buy electronics retail store. Best Buy gives intensive training to the Greeks. The purpose of this training is to:

improve customer service

The American Marketing Association's definition of marketing:

includes creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

A business is concerned with many day-to-day activities. Some of the most important of these activities are the planning and development of a product, its ability to communicate value, its pricing policy, and the distribution strategy. These activities are all a part of:

marketing

The concept of exchange is important to marketing because:

marketing activities help to create exchange

An organization with a(n) ____ believes that it exists not only to satisfy customer wants and needs and to meet organizational objectives but also to preserve or enhance individuals' and society's long term best interests

societal marketing orientation

A market-oriented firm defines its business in terms of:

the benefits its customers seek

A marketing researcher is conducting a focus group interview with working mothers to learn how Kraft can better meet their needs for convenience foods. What type of research does this represent?

Applied

Which type of research attempts to develop new or improved products?

Applied

Which demographic category represents the lowest percentage of the U.S. population, but has the highest average family income?

Asian Americans

Which of the following ethnic demographic categories are early adopters of new technology?

Asian Americans

Which type of research is also called pure research and attempts to expand the frontiers of knowledge but is not aimed at a specific, pragmatic problem?

Basic

John R. Harland Co. is best known for printing checks. Its financial solutions division develops software for mortgage companies, which is a growing industry. This division is currently not producing at the desired level of profitability, but Harland plans to turn the division into a success by acquiring other companies that develop similar software. To accomplish this, Harland will be engaging in a _____ strategy.

Building

Which of the following is an argument used to support corporate social responsibility (CSR)?

CSR can be profitable undertaking

A business unit that usually generates more than it needs to maintain its market share is called a(n)_____ in the portfolio matrix.

Cash Cow

Tide laundry detergent is the market leader, but overall industry growth is low in this market. Tide would be classified as a _____ in the portfolio matrix.

Cash cow

The _____ Act strengthened the Clayton Act to prevent corporate acquisitions that reduce competition.

Celler-Kefauver Antimerger

Minor League Baseball (MiLB) suffers from sluggish attendance. To attract more fans to MiLB games, owners oftern resort to gimmicks--free hot dog nights, events designed to get into the Guinness World Records, and celebrity visits. Since baseball fans are seldom asked what would make them want to attend more games, this suggests that most MiLB teams do not have a(n) ______ orientation

Community

______ provides the mechanisms for evaluating marketing results in light of the plan's objectives and for correcting actions that do not help the organization reach those objectives within the budget guidelines.

Control

Which level of ethical development moves from an egocentric viewpoint toward the expectations of society?

Conventional morality

After hearing his company criticized for its failure to respond to consumer needs, the CEO of a bank realized that his company needs to adhere to the marketing concept and implement a marketing oriented strategy. Which of the following actions would be the best approach to achieving this goal?

Creating cross-functional teams and instructing them to focus on creating greater customer value

A firm that wants to develop a deeper understanding of its customers may optimize profitability, revenue, and customer satisfaction by focusing on highly defined and precise customer groups. This is:

Customer Relationship Management

When customer expectations regarding product quality, service quality, and value-based price are met or exceeded, _____ is created.

Customer Satisfaction

Xerox emphasizes ____ by replacing at its own expense any dissatisfied customer's equipment within a period of three years after purchase.

Customer Satisfaction

_____ is defined as the relationship between benefits and the sacrifice necessary to obtain those benefits.

Customer Value

Merissa Champlain designs and sells clothes for young working women. Her marketing managers recently told her that she'll be in financial trouble unless she starts designing clothes suited to GenYers. Why is this?

Demographically, Gen Yers are an extremely large group of consumers.

Orange growers in Florida have lost millions of dollars due to hurricane. As a result, some growers have decided to bulldoze their orange groves and put in freshwater lakes for raising shrimp, a product that has a strong popularity and is more weather resistant. Former orange growers who are now raising shrimp are pursuing a _____ strategy.

Diversification

The company that manufactures Molson beer, which is typically consumed by males, launched an alcoholic lemonade beverage to attract more females. This launch of a new product to attract a new market for Molson's products is an illustrate of a ____ strategy.

Diversification

____ is the strategy of increasing sales by introducing new products into new markets.

Diversification

A problem facing the timber industry is the absence of any effective way to prove that rain forest timer has been legally harvested. In places like Indonesia, as much as 80% of timber available for sale is illegally cut. Companies like The Home Depot do not want to sell timber from illegally logged forests even though the demand is great for timber from rain forests. Which of the following conditions required for an exchange to occur is missing, when a company tries to sell illegally acquired logs to The Home Depot?

Each party believes it is appropriate to deal with the other party

At the most basic level, a firm must be profitable. What level of the pyramid of corporate social responsibility is this?

Economic

China's new 5 percent tax on disposable wooden chopsticks, reflecting concerns about deforestation, has been praised by environmentalists. The move is hitting hard at the Japanese, who consume 25 billion sets of wooden chopsticks annually. Almost all of the chopsticks used in Japan come from China. The price of wooden chopsticks in Japan has increased by almost 50%. The price increase influences which factor of the external environment of restaurant owners in Japan?

Economic

One of the favorite foods in Thailand is shark in fin soup. A San Francisco-based organization claimed the soup made by its leading producer contained mercury poison, yet the leading producer of shark fin soup wanted to continue selling the soup because it believes it has a responsibility to its investors to be profitable. In terms of the pyramid of corporate social responsibility, this indicates that the soup manufacturer was operating at a(n) ______ responsibility.

Economic

Recession, inflation, and consumers' incomes are the _____ factors of greatest concern to most marketers.

Economic

_____ is the primary determinant of a person's earning potential.

Education

_____ gives customers the feeling their concerns are being addressed and at the same time gives employees the feeling their expertise matters to management

Empowerment

_____ is defined as the collection and interpretation of information about forces, events, and relationships that may affect the organization.

Environmental scanning

At what level of the pyramid of corporate social responsibility will firms do what is right, just, and fair?

Ethical

_____ refers to the moral principles or values that generally govern the conduct of an individual or a group.

Ethics

Which of the following statements does not describe ethics?

Ethics occur naturally and can not be taught

Kellogg's is offering free DVDs to consumers who collect five official Collection certificates from the back panels of specially marked packages of Kellogg's cereals and then mail them with the official order form. Within 90 days, these consumers will receive the movie of their choice. A9n) _____ will occur when a movie fan mails in his or certificates for a movie.

Exchange

Which of the following occurs when people give up something in order to receive something they would rather have?

Exchange

______ show costs declining at a predictable rate as experience with a product increases.

Experience curves

A baby boomer's average life expectancy is at an all-time high of 79.2 years.

False

A firm's mission statement should answer the question, "What products do we produce best?"

False

A market penetration strategy entails the creation of new products for current customers

False

After Hal Li purchased and installed a wood-burning stove to heat his family home, the stove caught fire and damaged much of the house. He believes the stove had inadequate insertion. Li should voice his concerns to the Federal Trade Commission.

False

As marketers gain more experience in marketing a product, costs tend to decrease, which is an example of the maturity effect.

False

Because social responsibility has proven to have a limited return on investment, the number of business opting to act socially responsible is declining.

False

Berkshire Hathaway Inc., a large property insurance company, owns a large chain of jewelry stores and has recently purchased Russell Corporation, a manufacturer of sporting goods. Berkshire Hathaway uses a market penetration strategy.

False

Champion Lyte is a sugar-free sports drink designed to replenish electrolytes lost during activity or illness. Since the product was designed primarily for diabetics, healthcare professionals who treat diabetics are primary target market.

False

Customer value is the relationship between company profits and company costs.

False

In the early 1920s, Ford promised its customers any color vehicle they wanted as long as it was black. Ford's management assumed anyone buying a car would accept the color black, so it made products affordable by offering only one variety in large quantities. Ford is an example of a market-oriented firm.

False

Marketers can control the external environment in which their organizations operate.

False

Most people have not applied ethical standards in their everyday lives.

False

On average, african americans are nearly eight years older than all other American consumers.

False

Personnel in sales-oriented firms tend to be "outward looking," focusing on selling what the market wants.

False

Pew Research Center's 2012 American Values Survey found that political party affiliation is the least impactful fissure in American Society

False

Strategic planning is most effective when managers view it as an annual exercise.

False

Sustainability is the development and marketing of products designed to minimize negative effects on the physical environment or to improve the environment.

False

Sustainability refers to a business's concern for society's welfare.

False

The company's objective is to increase sales next year. This is an example of a well-stated objective.

False

The development of a target market strategy begins with a marketing audit.

False

The foundation for the pyramid of corporate social responsibility is philanthropic responsibility.

False

The four Ps of the marketing mix are product, planning, promotion, and price.

False

The manufacturer of Macho brand martial arts products was implementing a strategic plan when it sponsored a local karate tournament for teenagers.

False

The portfolio mix is a tool for allocating resources among products or strategic business units on the basis of relative market share and degree of innovation.

False

The practice of choosing goods and services that meet one's diverse needs and interests rather than conforming to a single, traditional lifestyle is known as aggregate lifestyles.

False

The way to achieve customer satisfaction and value is to offer the lowest price.

False

To be useful, marketing objectives should be realistic, measurable, time specific, and based on sales.

False

Today's business ethics are difficult to learn because they are different from those used outside the business world.

False

Typically the development of the marketing mix starts with determining the promotion for a product.

False

Unfortunately, most business people have not progressed beyond the self-centered and manipulative actions of pre conventional morality.

False

Unlike a production-orientated firm, a firm embracing a sales orientation focuses on customer wants and needs so it can develop the best product at the lowest cost that will require very little selling effort.

False

When the internet auction company on eBay opened a version of the company called eBay France for the French market, it was an example of market penetration.

False

When writing codes of ethics, businesses must ensure their codes deal with every possible situation.

False

While many green products have practical beliefs, none of them are readily apparent to consumers.

False

While most marketing organizations rely on various forms of promotion to succeed, sales-oriented organizations make the most effective use of their entire marketing mix.

False

The USPS argues that its express service is comparable to what is offered by FedEx and that its prices are much lower. Yet, FedEx dominates with more than a 45% share of the express-delivery

FedEx is perceived as offering greater customer value

Which of the following represents the largest group of consumers in the U.S.?

Gen Y

Consumers born between 196 and 1978 form a group called:

Generation X

Which ethnic group prefers products from their native country?

Hispanic Americans

A company that specializes in planning and organizing large family reunions has hired you to identify a target ethnic market.

Hispanics

____ is a measure of the decrease in the value of money, expressed as the percentage reduction in value since the previous year.

Inflation

InBev bought Anheuser-Busch. How will this affect InBev's marketing mix?

It will affect all of InBev's marketing mix elements, either directly or indirectly

At which level of the pyramid of corporate social responsibility must a business "play by the rules"?

Legal

Which of the following is NOT a type of competitive advantage?

Management Structure

At the Container Store, every employee is trained to serve customers. Full-time salespeople receive 240 hours of training. The container store works to hire people who are self-motivated and have a passion for customer service. The container store has a ___ orientation.

Market

At the Lands' End Web site, a customer can chat online with customer service representatives while shopping. This live help allows the customer to have questions answered before placing an order. This focus on meeting customer needs illustrates a(n) _____ orientation.

Market

Best Buy has become the nation's largest specialty retailer by focusing on the customer's needs and wants. This philosophy is at the heart of a(n) _____ orientation.

Market

When a homeowner visited The Home Depot to buy what he thought ne needed to fix a leaking toilet, he gathered up materials totaling almost $70. On his way to checkout, an employee asked him what he was trying to fix. After some discussion, the employee convinced the homeowner that a $5.99 replacement part would fix the problem better than they materials he thought he needed and with less trouble. This sort of discussion between employees and customers is commonplace at The Home Depot and indicates the retail store has a(n) ___ orientation.

Market

Which marketing management philosophy assumes that a sale does not depend on an aggressive sales force but rather on a customer's decision to purchase a product?

Market

Which marketing management philosophy focuses on the question, "What do customers want and need?"

Market

Yard Whimzees, a Statesbora, Georgia, sign business, began by making wooden signs for residential use to announce births, anniversaries, and couch. The company then turned to the business market by making signs for businesses. Creating signs for a new market is an implementation of a ______ strategy.

Market Development

Which of the following is a type of strategic alternative that tries to increase market share among existing customers?

Market Penetration

______ is a strategy of increasing market share for present products in existing markets.

Market Penetration

In order to expand its sales into the U.S. market, BRL, an Australia-based winemaker, agreed to a merger with a U.S.-based wine distribution company. According to Ansoff's strategic opportunity matrix, BRL would be implementing a ______ strategy.

Market development

In the past, PajamaGram marketed pajamas only to women. Now the company offers pajamas for me and children. This is an example of a _____ strategy.

Market development

LVMH, a maker of luxury goods, has expanded its products offerings into China, Russia, India, and the Middle East. This exemplifies a _____ strategy.

Market development

_____ is a strategy that attempts to attract new customers to existing products.

Market development

A(n) ______ describes and estimates the size and sales potential of market segments of interest to the firm and assesses key competitors in these market segments.

Market opportunity analysis

Kraft foods created a magazine full of recipes and coupons for customers as well as a Web site with product and recipe information. The goal was to get current customers to purchase more of Kraft's products. These activities are representative of a _____ strategy.

Market penetration

____ is a set of activities used to implement a management orientation that stresses customer satisfaction

Marketing

The ____ is the unique blend of product, place, promotion, and pricing strategies designed to produce mutually satisfying exchanges with a target market.

Marketing Mix

Le Feast is a catering company that has developed a marketing plan designed to make it the largest caterer in the country within the next two decades. Which of the following will be useful to the company to evaluate how successful its efforts have been at the end of the first decade?

Marketing audit

All of the following are good reasons to study marketing EXCEPT:

Marketing creates consumer needs

_____ occurs when a business is defined in terms of goods and services rather than in terms of the benefits customers seek.

Marketing myopia

A _____ is defined as a statement of what is to be accomplished through marketing activities.

Marketing objective

Which of the following statements about Generation Y is true?

Members are tech-savy and expect brands to be on social media

The majority of Hispanic Americans are of ____ descent.

Mexican

The _____ answers the question, "What business are we in, and where are we going?"

Mission statement

_____ are the rules people develop as a result of cultural values and norms.

Morals

Which of the following statements about American teenagers is correct?

Most would rather shop in a store than online

Which of the following statements about social media is true?

People ages 55 to 64 spend more than 11 hours on social media per month.

Golden Valley Microwave Foods,Inc. is the manufacturer of ACT II popcorn. In its early years, the company had trouble financing the development and marketing of products for the microwave, so it chose to participate in a financial arrangement in which it agreed that it would not sell ACT II popcorn in supermarkets or grocery stores. Which element of the marketing mix was most influenced by this arrangement?

Place

Making sure products are available when and where customers want them is the job of which element of the marketing mix?

Place strategies

_____ is the process of anticipating events and determining strategies to achieve organizational objectives.

Planning

The ______ is a tool for allocating resources among products or strategic business units on the basis of relative market share and market growth rate.

Portfolio matrix.

Barry collects antique watches and has decided to sell a few of them on eBay. Some of the watches he wants to sell are rare and valuable. What condition is necessary for an exchange to occur between Barry and a buyer?

Potential buyers must be able to see the watch and understand its qualities.

Which of the following factors will influence ethical decision making and judgments?

Potential magnitude of the consequences

Ethical development can be thought as having three levels. The most basic, childlike level is the _____ stage.

Preconventional morality

Which of the marketing mix elements is often the most flexible

Pricing

Before Heinz sold its 9-lives brand cat food unit, the company identified the product as having a low market share in a high-growth market. The portfolio matrix would classify 9-lives as a(n)

Problem child

Which of the following represents a business unit that shows rapid growth but poor profit margins?

Problem child

Lands' End guarantees its products for as long as you own them, The company would seem most concerned with which element of the marketing mix?

Product

Ocean Spray's development of Craisins sweetened dried cranberries to compete against raisins most directly affected the _______ element of the company's marketing mix.

Product

The marketing of new organic cotton tee-shirts for Life is good's existing customers would be an example of a _____ strategy.

Product Development

Clay Market began as a retailer of terra-cotta pots and garden figures imported from Turkey and Mexico, It has since added Turkish rugs and fabrics, leather-trimmed purses, and a line of women's clothes for its customers. These activities are indicative of a _____ strategy.

Product development

____ is a marketing strategy that creates new products for present markets.

Product development

A company that sets its goals and strategies based on what its current equipment can produce, what products engineering can design, and what the company itself can do best, has a(n) _____ orientation.

Production

A firm that adopts a(n) ____ orientation to marketing will fail to consider whether what the firm produces most efficiently also meets the needs of the marketplace.e

Production

A newspaper ad for a hospital that states, "We have the most modern delivery rooms and state-of-the art medical equipment," is an indication of which marketing management philosophy?

Production

Firms with a ___ orientation focus on the internal capabilities of the firm rather that on the desires and needs of the marketplace.

Production

Indonesian logging companies harvest the rain forests for timber and assume that a market exists for thei products. The typical Indonesian logging company has a(n) ___ orientation.

Production

Researchers at PPG Industries spent considerable time, effort, and money developing a bluish windshield that would let in filtered sunlight but block out the heat. Little market research was done, but the scientists were convinced this new product would be significantly better than existing windshields even though it was more expensive and of a different color that the current models on the market. This scenario suggests PPG most likely has a(n) ___ orientation.

Production

Toyota found that consumers wanted cars to last longer and be more environmentally friendly. GM, however, enjoyed being the top U.S. car producer and focused more on how many cars and trucks it could manufacture, not on what customers wanted from a vehicle. GM had more of a(n)______ orientation.

Production

Which marketing management philosophy focuses on the question, "What can we make or do best?"

Production

All of the following are characteristics of a good objective EXCEPT:

Profitable

SoBe nutritional beverages uses twin lizards on every bottle of its products and in all of its promotion efforts. It even has its own Team Lizard made up of skateboarders, mountain bike riders, and in-line skaters that it sponsors. The lizard is used to remind consumers of the product and its benefits. Which of the four Ps does this represent?

Promotion

_____ is the primary tool used by a sales-oriented organization to achieve its corporate goals.

Promotion

_____ is measured by comparing income to the relative cost of a set standard of goods and services in different geographic areas.

Purchasing power

_____ is a strategy that focuses on keeping and improving relationships with current customers.

Relationship marketing

A cold medicine manufacturer offers a promotion allowance to retailers for setting up displays featuring its products. Retailers are also offered promotional allowances on purchases of the products. Which legislation requires the manufacturer to make these promotion allowances available to all retailers on a proportionately equal basis?

Robinson-Patman Act

Colorado silversmith creates and markets silver and turquoise jewelry, which it sells to retailers in the western United States. The company's management believes its retail customers will stock more jewelry if its salespeople use aggressive marketing techniques, so the company provides strong incentives for salespeople and promotional allowances to resellers to get distribution for its jewelry. In other words, the company has a ______ orientation

Sales

Fujifilm computer products has improved the efficiency and productivity of its plant, which manufactures printing technology. For the new fiscal year, the company projects a production increase of 25%. It has instructed its sales force to aggressively distribute and promote its printers. The CEO is sure the market will absorb more product if the sales force is determined and assertive. Fujifilm appears to have a _____ orientation.

Sales

The ______ orientation assumes people will buy more if aggressive selling techniques are used.

Sales

Which marketing management philosophy focuses on the question, "How can we sell more aggressively?"

Sales

Which marketing orientation assumes people will buy more goods and services if aggressive marketing techniques are used?

Sales

Which marketing management philosophy is often adopted by organizations that sell unsought products such as life insurance, retirement plans, and preplanned funeral services?

Sales Orientation

Which of the following is the customers' evaluation of a good or service in terms of whether that good or service has met their needs and expectations?

Satisfaction

Zipcar is a car rental service found in many metropolitan areas. It targets people who take mass transit or carpool to work but who occasionally need a car to run errands, visit the doctor, or check on a sick child. Zipcar is one of a few companies currently providing cars that can be rented by the hour. Zipcar has created a(n) _______ advantage.

Service differentation competitive

A _____ is a study conducted by an organization to identify its internal strengths and weaknesses and also examine external opportunities and threats.

Situation analysis

In many African nations, people live on less than $5.00 per day. To grow here, Procter and Gamble (P&G) must persuade these people to purchase items they have lived without forever. As a result, P&G sells one-ounce packages of Ariel laundry soap for as little as 10 cents in this market. P&G responded to _____ factors when it developed these small packages.

Social

Quaker oats and other cereal manufacturers have developed what they cal "breakfast-with-one-hand" products--no mess breakfast bars and drinks that can be consumed while commuting. The popularity of on-the-go food is largely the result of changes in _____ factors.

Social

_____ factors are environmental factors that include our attitudes, values, and lifestyles.

Social

many people in the U.S. chose to drink light beer because they value thin and fit bodies. In Europe, light beers have had little success because flavor is valued more highly. For international beer manufacturers, this difference illustrates how _____ influence(s) marketing.

Social factors

Life is Good developed the "Good Krma" line of environmentally friendly 100% organic cotton apparel. The production of the Good Karma line is consistent with a _______ orientation.

Societal Marketing

Life is Good no longer encloses its apparel in individual poly bags when shipping to customers because the management feels it harms the environment. This is an example of a ______ orientation.

Societal Marketing

Which marketing management philosophy focuses on the question, "what do customers want and need, and how can we benefit society?"

Societal Marketing

Russell Athletic, which part of Berkshire Hathaway, Inc. Is a market leader in sports apparel, an industry that is growing rapidly. Russell Athletic is an example of a(n) _______ according to the portfolio matrix.

Star

Which of the following categories in the portfolio matrix is a market leader and growing fast?

Star

The SBU acronym refers to:

Strategic Business Units

Heinz has announced that they plan to grow the company through an accelerated push into emerging markets such as China, Indonesia, and India in the next 10 years. This is an example of:

Strategic Planning

____ is the managerial process of creating and maintaining a fit between the organization's objectives and resources and the evolving market opportunities.

Strategic Planning

Until spun off in 2007, Kraft was part of Altria Group Inc. Kraft had its own management team, mission statement, and target markets different from Altria. Kraft was a _______ of Altria.

Strategic business unit

Yildiz Holding of Turkey purchased Godiva Chocolates from Campbell's Soup Company. Campbell's sold one of its:

Strategic business units

What is the fundamental objective of most businesses?

Survival, profits, and growth

_____ is the idea that socially responsible companies will out perform their peers by focusing on the world's social problems and viewing them as opportunities to build profit and help the world at the same time.

Sustainability

Which of the following statements about the theory of sustainability is true?

Sustainability is the idea that socially responsible companies will out perform their peers when they focus on the world's problems as marketing opportunities.

An advantage that cannot be copied by the competition is called a(n) _____ competitive advantage.

Sustainable

Patents on prescription medications give pharmaceutical companies that own the patents a(n) ____ for 17 years until the patent expires.

Sustainable competitive advantage

A(n) _____ is a defined group that managers feel is most likely to buy a firm's product.

Target Market

Which of the following statements best describes the typical target market?

Target markets change over time as consumers drop in or out of the market, and as tastes change.

____ is the collaborative efforts of people to achieve common objectives.

Teamwork

In the future, electrical power may come from quantum nucleonics, a form of nuclear power that produces no residual radiation. The ability to use this form of power will require equipment adaptations, but it will solve the world's need for clean and efficient power. When quantum nucleonics is developed, it will be an example of how ____ factors can affect an organization.

Technological

Which of the following statements about marketing audits is true?

The main purpose of the marketing audit is to develop a full profile of a company's marketing effort.

Which of the following statements about the societal orientation is FALSE?

The majority of consumers support environmentally friendly companies and willingly paying more for these products.

What do self-sufficiency, upward mobility, work ethic, and conformity have in common?

These are three of the core values that influence lifestyles in the U.S.

3D Systems is a company that uses computers to generate new product prototypes. It has generated loyal business clients by providing the best customer support in the industry. The company also provides direct sales consultations that give its salespeople intimate knowledge about what exactly its customers want. This partnership between 3D Systems and its customers is relationship marketing.

True

A code of ethics can be an effective internal control on behavior, which is more desirable than external controls such as government regulation.

True

A competitive advantage is some unique aspect of a firm;s offering, or of the firm itself, that causes target customers to patronize the firm rather than its competition.

True

A diversification strategy entails increasing sales by introducing new products into new markets.

True

A local grocer recently began grouping its customers into specific groups based on what they bought and when they shopped. The grocer then began to schedule shipments of specific items based on these customer segments and to offer different promotions to different shopper groups. This is an example of CRM.

True

A marketing audit helps management allocate marketing resources efficiently.

True

A production cost analysis could be a part of a company's SWOT analysis.

True

According to the American Marketing Association, marketing is the activity, set of intuitions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

True

An exchange cannot take place unless each party in the exchange has something that the other party values.

True

Companies use environmental management when they implement strategies that attempt to shape the external environment within which they operate.

True

Demography is the study of people's vital statistics such as age and location.

True

Developing a cost competitive advantage can enable a firm to deliver superior customer value.

True

Environmental scanning entails the collection and analysis of information about factors that may affect the organization as well as the identification of market opportunities and threats.

True

Environmental sustainability is an important component of the sustainability philosophy.

True

Ethical questions range from narrowly defined issues to broader philosophical, social questions.

True

Generation Y was the hardest hit by the great recession.

True

Increasingly well informed customers have shifted the power from manufacturers and retailers to consumers.

True

Marketers need a thorough understanding of the laws established by the federal government, state governments, and regulatory agencies.

True

Marketing is important to business, so marketing should be part of the job of everyone in the organization, not just those in marketing

True

Marketing strategy involves the activities of selecting and describing one or more target markets and developing and maintaining a marketing mix that will produce mutually satisfying exchanges with target markets.

True

Morals are rules people develop as a result of cultural values and norms.

True

Niche competitive advantages are quite common.

True

On average, just over $156 is spent on by every American teen each week.

True

Retailers who give their sales clerks the authority to handle customer complaints without having to get approval from a supervisor are using empowerment.

True

Salespeople who work for market-oriented organizations are generally perceived by their customers as problem solvers and important links to supply sources and new products.

True

Sara Lee Industries spent considerable money and time developing a crustless bread. Prior to the introduction, the company had not conducted market research among its customers, but it was confident that its science and technology department had produced a successful new product. Based on this example, Sara Lee is a good example of a production-oriented company.

True

Social change is perhaps the most difficult external variable for marketing managers to forecast, influence, or integrate into marketing plans.

True

The Home Depot's purchase of Hughes Supply Company allows it to better meet the needs of its current business customers. This is an example of product development.

True

The focus of a production-oriented firm is on what it can make or do best.

True

The greater the number of persons affected by a negative outcome, the more likely it is that marketers will recognize a problem as unethical.

True

The increase in social media usage has dramatically changed marketing strategies and how companies interact with target markets

True

The marketing concept states that the social and economic justification for an organization's existence is the satisfaction of customers' wants and needs while meeting organizational objectives.

True

The marketing plan is a written document that acts as a guidebook of marketing activities for the marketing manager.

True

The most critical element for successful strategic planning is top management's support and participation.

True

The societal marketing concept considers society's long-term best interests along with the satisfaction of customers' wants and needs.

True

The ultimate goal of most market-oriented firms is profitability that results from satisfying the wants and needs of its consumers

True

Top managers who behave ethically can influence others in an organization to behave ethically.

True

When a florist shop begins to sell burial caskets to its customers, it is engaged in product development.

True

Riot Media is a media and toy company that capitalizes on the "gross-out" humor enjoyed by boys ages 8-12. In other words, it targets:

Tweens

Which of the following is NOT a demographic characteristic of a population?

Values

Market penetration occurs whenL

Yoplait sends yogurt coupons to its existing customers

All of the following statements about the creation of a code of ethics are true EXCEPT:

a code guarantees ethical behavior among a firm's employees.

Everyone knows the brand name Kleenex. Kleenex is what many consumers think of when they think of tissues. This widely recognized brand name is a source of:

a product differentiation competitive advantage

A company that wants to implement a market orientation would need to:

a. do research on its customers, competitors, and markets b. determine how to deliver superior customer value c. establish and maintain mutually satisfying relationships with customers d. implement actions that provide value to customers.

As part of instituting an empowerment program, a marketing director should:

allow non-management employees to resolve problems on their own without prior approval from their immediate supervisors

The group of people in the United States who were born between 1946 and 1964 are known as:

baby boomers

Juan is a marketing professor researching consumer decision-making processes. Specifically, he is examining if including a picture in a print advertisement is more effective than not including a picture in influencing readers' attitude toward the advertisement and brand advertised. He is not researching any specific brand, but rather he is interested in testing Dual Coding theory that predicts that pictures will have a more positive impact on attitudes. Juan is conducting ____ research.

basic

The two types of research are:

basic and applied

All of the following are sources of a cost competitive advantage EXCEPT:

break-even analysis

Corporate social responsibility is defined as the:

business's concern for society's welfare

Like many other professional organizations and businesses, the American Marketing Association has developed a formal, written guideline to help its members make better ethical decisions. This document is called a:

code of ethics

Land O'Lakes makes a light butter with canola oil that has 60 percent less cholesterol and 50 percent less fat and calories than butter. This marketing gives the product a:

competitive advantage

The set of unique features of a company and its products that are perceived by the target market as significant and superior to the competition is known as a(n):

competitive advantage

A(n)_____ is the practice of choosing goods and services that meet one's diverse needs and interests rather than conforming to a single, traditional lifestyle.

component lifestyle

Lee Siracca owns two horses, brews his own beer, participates in the civic arts commission, enjoys talk radio, hikes on wilderness trails, and competes in rodeos. All of these diverse needs and interests influence his choices of the goods and services he buys. Lee has a:

component lifestyle

Lance is a 30-year old, single professional who enjoys hiking, college sports, and poetry. He lives with his girlfriend but does not have plans to get married in the near future. He leads a life much different from his father, who married right after high school, had children, and worked for the same company his entire career. More and more in the U.S. consumers like Lance are enjoying _____, piecing together a variety of interests, products, and services instead of conforming to traditional stereotypes.

component lifestyles

An international company that needs to develop a way to compare its actual marketing results with planned results must engage in:

control

Marketing plans should be written to do all of the following EXCEPT:

control the dements of the external marketing environment

A strategic business unit:

controls its business independent of other SBUs in the organization.

In the ______ stage of ethical development, loyalty and obedience to the organization or to society become paramount.

conventional morality

For every home built by Habitat for Humanity, Whirlpoos Corporation has given and continues to give free kitchen appliances to the deserving family. This donation of appliances is an example of how companies assume their:

corporate social responsibility

NSTAR Gas and Electric Company in Boston provides continuing financial support for an injury prevention program run by the Children's Hospital Boston. This funding is an example of:

corporate social responsibility

_____ is the concern of business for the long-range welfare of both the company and its relationships to the society within which it operates.

corporate social responsibility

Walmart realizes a ____ using its relationships with suppliers to give customers low prices and good customer service.

cost competitive advantage

The pyramid of corporate social responsibilities contains all of the following components EXCEPT:

cultural responsibilities

Ninety-Six percent of USAA home insurance policy holders report that USAA representatives meet their commitment in calling back customers quickly about claims. The most likely result of USAA's efforts is:

customer satisfaction

One of the reasons given for the decline of the passenger rail industry in the U.S. is that the industry defined its mission as trains and not as transportation sources. The railroad industry failed to:

define its mission in terms if the benefits its customers seek

A firm with a production orientation is most likely to survive if:

demand for the product it produces exceeds supply

The study of people's vital statistics, such as age, race and ethnicity, and location, is called:

demography

Zimmer-Centerpulse is the world's largest producer of replacement hips and knees for orthopedic surgery. They are particulary interested in marketing in the southwestern U.S., where a large aging population lives. Which are external environmental element most directly explains its continued growth?

demography

The typical starting point of ny firm's marketing mix is the:

development of the good or service to be sold.

Walker farms heard from many of its customers that they would like organic produce. As a result, Walker Farms became a certified organic farm. Walker realized that while not all consumers were willing to pay the higher prices for organic produce, his customers wanted the organic produce. Walker realized:

different customer groups have different needs and wants

After-tax income is referred to as:

disposable income

The higher your ____, the higher your purchasing power:

disposable income

For the first several years it was available, Apple's iPhone could only be purchased through AT&T cell phone distributors and the Apple retail store. This limitation on the _____ element of its marketing mix supported the product's competitive advantage

distribution

In the portfolio matrix, a business unit that has a low growth potential and a small market share is called a(n):

dog

All of the following are necessary for exchange to occur EXCEPT:

each party signs a contract before exchange occurs

The four components of the pyramid of corporate social responsibility are:

economic, legal, ethical, and philanthropic responsibility

Some market-oriented firms give employees expanded authority to solve customer problems on the spot. This is known as:

empowerment

The Michigan State Legislature tried to pass a bill requiring concert promoters and venue operators to print parental warnings on tickets and advertisements for concerts and shows by performers whose recordings had content advisory labels. Promoters and venue operators prevented the passage of this bill, arguing that it would require them to make value judgments for which they were ill equipped. The promoters and operators engaged in:

environmental management

When a company engages in _____, it is implementing strategies that attempt to shape the external environment within which it operates.

environmental management

Basic research attempts to develop new or improved products

false

Rising incomes mean a higher standard of living.

false

The competitive environment of a business encompasses the number of competitors the firm must face, the relative size of these competitors, regulatory agencies, and the degree of interdependence within the industry.

false

The sherman act of 1890 establishes protection for trademarks.

false

an economic recession increases demand for products and services

false

The marketing concept involves:

focusing on customers' wants and needs so that the organization can distinguish its product (or products) from competitors' products.

A company that has a market orientation and adheres to the marketing concept does NOT:

fuel sales growth through the application of aggressive sales techniques.

The movement to develop and market products designed to minimize negative effects on the physical environment or to improve the environment is known as:

green marketing

All of the following are functions served by objectives EXCEPT:

guaranteeing market performance

Kendta teaches high school science. She is also a wine expert, a PTA president, and an accomplished sculptor. Her other interests include scrapbooking, gourmet cooking, and nascar. Marketers would categorize Kendra as:

having a component lifestyle

One of the fastest growing tween markets is:

home de'cor

_____ is the process that turns a marketing plan into action assignments and ensures that these assignments are executed in a way that accomplishes the plan's objectives

implementation

All of the following are taken into account in a cost of living index EXCEPT:

income

The growth of social media use has resulted in:

increased exchange of information

Strategic plans require:

long-term resource commitment

Heinz is introducing 400 new products in the next 2 years. To know which markets to reach, Heinz should first perform a:

market opportunity analysis

A planning manager visiting a company's health and beauty aids division discovers the division has no effective method for allocating resources, nor for evaluating actual results against planned results. His suggestion to the division would likely be to prepare a:

marketing audit

By defining its business as "printing books" instead of "empowering imaginations," a children's book publishing company would more than likely experience:

marketing myopia

A written document that acts as a guidebook of marketing activities for the marketing manager is known as the

marketing plan

All of the following are categories used in the Boston Consulting Group's portfolio matrix EXCEPT:

meat eaters

All of the following are basic strategies resulting from a portfolio analysis EXCEPT:

milk

A statement of the firm's business based on a careful analysis of benefits sought by present and potential customers and an analysis of existing and anticipated environmental conditions is known as a(n):

mission statement

The external environment:

must be continually monitored by marketing managers

Yuengling is the oldest brewery in the U.S. It was founded in 1827 in a time when small breweries dotted this nation. For many years, the brewery only sold in a ten-state area on the Eastern Seaboard. For over 170 years, this strategy gave the brewery a:

niche competitive advantage

Jiffy Mixes does not do any type of traditional advertising or use fancy packaging in marketing its products. The company stores its own wheat and makes its own flour and little blue boxes. Jiffy is an example of a low-cost strategy based on:

no-frills goods and services

Marketers interested in offering customer value can:

offer organization-wide commitment to service and after-the-sale support

The fact that many people believe that businesses should focus on making a profit and leave social and environmental issues to nonprofit organization is...

one of the arguments against social responsibility

According to the text, the 45-year-old magazine, Essence Magazine, reaches _____ of all black females aged 18-49.

one third

Smucker's purchased Folgers Coffee in 2008. The option to buy Folgers represented a(n) ______ to smuckers

opportunity

At what level of the pyramid of corporate social responsibility will a company be a good corporate citizen?

philanthropic

All of the following are common reasons why companies fail to achieve a marketing objective EXCEPT:

plan not formalized

laws and regulations of various governments and their ongoing development and change are an example of ____ factors that are part of the external environment of all organizations.

political and legal

All of the following are elements of the marketing plan EXCEPT:

portfolio analysis

Ruthanne ross is a sales manager for Pampered Chef, a company that sells kitchen tools and other aids for cooking through party plans. She is very concerned about making sure her salespeople understand the importance of treating each customer fairly and developing long-term relationships with them. She asks that before a sale is made, the salesperson should make sure customers can afford the items and are not buying due to social pressures. Ross is most likely at the ____ stage of ethical development.

postconventional morality

the _____ stage of ethical development represents the morality of the mature adult.

postconventional morality

Hallie is a calculating, self-centered salesperson. She never engages in relationship marketing. She looks on any sales situation as a "win-lose" situation, and she believes any legal method she can use is justified when she wins. Hallie is most likely at the ___ stage.

preconventional morality

In general, Hispanic Americans:

prefer products from their native countries

Apple,Inc. is now offering the iPhone 4s for free on contract. This new strategy reflects a change in the ____

price

John R. Harland Company is best known for printing checks. Its Financial Solutions division develops software for mortgage companies and is currently producing much less than the desired level of profitability in a high-growth industry. According to the portfolio matrix, Harland would label its financial solution division as a(n):

problem child

Kraft introduced Philadelphia Readt-To-Eat Cheesecake Filling for those who do not have time to make cheesecake in the traditional manner. This is an example of a _____ strategy

product development

All of the following are strategic alternatives that match products with markets EXCEPT:

product penetration

All of the following are marketing management philosophies EXCEPT:

profitability orientation

TUFF SHED,Inc. is one of the leading suppliers of installed storage buildings and garages in the United States. TUFF SHED mandates that sales, management, and construction teams work together to anticipate and eliminate potential problems. They make sure customers get the right buildings for their needs, and they are all built well and in a timely manner. By using teamwork, TUFF SHED:

provides its customer with a high level of satisfaction.

Consider a small southern town where more than half the residents are African American and the rest are white. A successful marketing campaign for this community would include:

radio advertising

All of the following are factors influencing ethical decision making and judgments EXCEPT:

rate of prosecution

A period of economic activity characterized by negative growth, which reduces demand for goods and services, is called a(n):

recession

Kellogg's gives consumers the chance to receive a free DVD. Consumers who buy five boxes of specially marked cereal can cut out the coupons and mail in their completed official form to get a free DVD. Kellogg's is engaging in:

relationship marketing

One way to identify the orientation of a firm is to examine its primary goal. If a firm seeks to achieve profitability through sales volume, it would probably be:

sales-oriented

Market-oriented firms primarily focus their efforts upon:

satisfying the wants and needs of their customers

The marketing concept stresses that the social and economic justification for an organization's existence is the:

simultaneously meeting organization objectives

Consumer's concern for health issues affects the way food is marketed. For example, marketers must now list the number of grams of transfat on a product's nutrition label because it has recently come to light that this type of fat is harmful. Consumers' concern for health issues is a(n) _____ factor.

social

If you were to ask Americans what they most desire to make their lives easier, most will want more time. This feeling that there are not enough hours in a day is an example of a(n) ______ factor that has strongly influenced the marketing environment.

social

Which of the following is the most difficult for marketing managers to forecast, influence, on integrate into marketing plans?

social change

Shark fin soup is a favorite Thai food. When a San Fran-based organization claimed that the leading producer's soup contained mercury poison, its sales plummeted. The popularity of this soup in Thailand represents a(n)____ factor, while Thailand;s kax enforcement of environmental protection and consumer protection regulations are a(n) _____ factor.

social; political and legal

Most companies become sensitized to community issues after they've done enough damage to draw the locals anger. Dofasco, Inc., a highly successful steel company in Ontario, tries to get ahead of business and community issues by annually bringing together representatives from the local area and community-wide meeting indicates Dofasco has a ______ orientation

societal marketing

Chrysler has a financial unit that is responsible for vehicle leases to consumers. It has a distinct mission, control over its resources, and plans independent of the other divisions of Chrysler. This financial unit is an example of a(n):

strategic business unit

A popular technique for managing a large organization with different technologies and market is to divide it into:

strategic business units

Subgroups of a single business or collection of related businesses within a larger organization are referred to as:

strategic business units

Since gas prices have soared and consumers have cut back on their spending on new trucks and SUVs, Ford Motor Corp. is transforming several of its plants to create small cars. Ford has engaged in:

strategic planning

With hospitals nationwide facing budget cuts and slimmer profit margins, Delkalb County's Medical Center decided to cash in on one of the most consistently profitable services--delivering babies. It initiated a three-year project to build a $55 million state-of-the-art women's center with 18 labor and delivery suites. When the hospital decided to commit its resources to obstetrics, it was engaging in:

strategic planning

The SWOT acronym refers to a firm's analysis of its:

strengths, weaknesses, opportunities, and threats

One approach to developing a personal set of ethics is to:

stress the importance of rules

iTunes has a(n) ______, as they have exclusive agreements with some of the most sought after music corporations that other digital music stores do not have,

sustainable competitive advantage

Coloriffic recently began competing with Crayola coloring products. At the beginning of the school year, the ______

target market

The publisher of Ebony magazine has forged an alliance with Dan River, Inc. to create luxury bed and bath products for the newly developed Ebony Home brand. Ebony Home will use the publisher's long history and expertise to market to the African American market. The African American market is the _____ for the Ebony Home brand.

target market

In order to combat U.S. corporations use of illegal payments and bribes in international business dealings, Congress enacted:

the Foreign Corrupt Practices Act (FCPA)

Which of the following statements about a typical sales-oriented business is TRUE?

the company invests the majority of its resources in promoting its products and services

Marketing managers cannot control _____, but the can sometimes influence it.

the external environment

The sales and market orientations differ on all of the following characteristics EXCEPT:

the firm's performance

Which of the following events has had the greatest effect on opinion sharing?

the increased use of social networking by people and businesses

The focus of on organization's mission statement should be on:

the market it wishes to serve.

SAP, the world's largest business software company, has pledged to put the "customer at the center" of their universe. SAP has captured the idea of:

the marketing concept

All of the following are factors in the external environment affecting marketing EXCEPT:

the marketing mix

For an exchange to take place:

there must be at least two parties involved

If facebook were a country, it would be the world's ______ largest country.

third

A marketing audit is a(n):

thorough, systematic, periodic evaluation of the objectives, strategies, structure, and performance of the marketing organization.

Of the following, what is the most useful objective for Purina Cat food?

to increase sales of Purina brand cat food by 15% over 2010 sales of $300 million

By 2050, about one in three U.S. residents will be hispanic.

true

Inflation is a measure of the decrease in the value of money, expressed as the percentage reduction in value since the previous year.

true

Companies that rely on the marketing concept and that have implemented a market orientation strategy recognize that:

what the customer thinks he or she is buying is what is important