Marketing Exam 1

T/F pure competition is a common competitive environment

False

T/F Credit increases current buying power at the expense of future buying power

True

Which of the following is the most specific and detailed type of business strategy? a. business-unit b. marketing c. corporate d. customer service e. tactical

b. marketing

The strength of a person's "buying power" depends on economic conditions and a. level of income b. size of resources that can be traded in an exchange c. how much a consumer will buy d. a consumer's consumption pattern e. levels of median wealth

b. size of resources that can be traded in an exchange

T/F A strong code of conduct that is carefully thought out and detailed will not require many revisions in the history of the firm

False

T/F An individual's after-tax income is called his or her discretionary income, which is used for spending and/or saving

False

T/F An oligopoly exists when a firm offers a product that has no close substitutes, making the firm the sole source of supply

False

T/F Centralized decision-making may prove effective in firms that must respond quickly to fluctuations in customer demand

False

T/F Disposable income is used to pay taxes, spend, and save

False

T/F Employees can easily determine what behavior is acceptable even in organizations that do not have ethics compliance programs and policies on conduct

False

T/F Stars are profitable products that usually generate more cash than is required to maintain

False

T/F The long-term health of the firm depend solely on having products that generate cash and provide acceptable reported profits

False

T/F The right to be informed means that consumers should be treated fairly when they complain to marketers about their products

False

T/F There are four conditions that must be met before an exchange can take place. Once these conditions are met, an exchange will always take place

False

T/F a monopoly exists when a firm with many potential competitors attempts to develop a marketing strategy to differentiate its products

False

T/F companies that truly adopt the marketing concept develop an organizational culture that is based on a centralized set of beliefs that places the organization's needs at the center of decisions about strategy and operations

False

T/F marketing citizenship refers to an organization's obligation to maximize its positive impact and minimize its negative impact on society

False

T/F marketing strategies should be established before marketing objectives are decided

False

T/F the marketing environment is a set of static, unchanging surroundings

False

T/F the primary way to reduce the discrepancy between planned and actual performance is to rewrite the performance standard

False

T/F Marketing managers can classify a firms products into four basic types: stars, cash cows, dogs, and question marks

True

T/F Technology affects the types of products offered to consumers

True

T/F The marketing environment consists of external forces that directly or indirectly influence an organization's acquisition of inputs and generation of outputs

True

T/F Under President Kennedy's consumer bill of rights, consumers must have access and opportunity to review all relevant information about a product before buying it

True

T/F a core competency is something a firm does extremely well-sometimes so well that it gives the company an advantage over its competition

True

T/F an organization's goals focus on the end results the organization seeks

True

T/F financial controls information will most likely be found in the performance evaluation section of the marketing plan

True

T/F people learn values and principles through socialization by family members, social groups, religion, and formal education

True

T/F social responsibility is an organization's obligation to maximize its positive impact and minimize its negative impact on society

True

T/F the impact of environmental forces on value can be extensive as market changes can easily influence how stakeholders perceive certain products

True

After several children became ill while playing with toys imported from outside the United States, medical researchers found several illegal chemicals, including lead in the paint. These toys were sold primarily through websites on the Internet. Which of the following agencies would most likely have jurisdiction over the problem with lead in the paint of children's toys? a. Consumer Product Safety Commission b. Children's Online Protection Act c. Food and Drug Administration d. Environmental Protection Agency e. National Advertising Review Board

a. Consumer Product Safety Commission

The process of putting marketing strategies into action is called a. Marketing implementation b. Marketing control c. Marketing action d. Marketing auditing e. The marketing action plan

a. Marketing implementation

And organization's business goals should be derived from its a. Mission statement b. Strategic plan c. Strategic business plan d. Marketing plan e. Marketing strategy

a. Mission statement

The adoption of a strategic focus for fulfilling the economic, legal, ethical, and philanthropic social responsibilities expected by stakeholder is called a. marketing citizenship b. social responsibility c. stakeholders d. cause-related marketing e. strategic philanthropy

a. marketing citizenship

The Better Business Bureau is probably the best-known a. nongovernmental regulatory group b. state-operated enforcement agency c. national evaluator of advertisements d. federal regulatory group e. self-regulatory unit operating at the national level

a. nongovernmental regulatory group

Actions that promote human health and welfare address the ____ dimension of the pyramid of social responsibility a. philanthropic b. legal c. ethical d. economic e. social

a. philanthropic

United Airlines introduced a new "basic economy" seat category to better compete with discount airlines like Southwest and Spirit. Which of the following aspects of the marketing mix is United likely altering? a. price b. promotion c. distribution d. product e. target market

a. price

Sony's strong name recognition and solid customer demand for its televisions and game systems are two elements of the firm's a. strengths b. opportunities c. weaknesses d. threats e. strategies

a. strengths

A market opportunity results from a. the right combination of circumstances and timing that permits an organization to take action to reach a particular target market b. monitoring the firm's capabilities c. an increase in market share and profits d. an assessment of environmental forces e. technological determinism

a. the right combination of circumstances and timing that permits an organization to take action to reach a particular target market

Marketing activities are a. used by all sizes of organizations including for-profit, nonprofit, and government agencies b. limited to use by larger for-profit and nonprofit organizations c. implemented only to increase profits for the organization and to expand the scope of its customer base d. used by all types and sizes of businesses but are not used by nonprofit organizations e. used by small businesses and small nonprofit organizations the most

a. used by all sizes of organizations including for-profit, nonprofit, and government agencies

According to the Boston consulting group, marketers may classify their products as all of the following except a. Dog b. Cash pig c. Question mark d. Starts e. Cash cow

b. Cash pig

The marketing concept is best defined as a. a second definition of marketing b. a philosophy stating that an organization should try to satisfy customers' needs through a coordinated set of activities that allows the organization to achieve its goals c. the performance of business activities that direct the flow of goods and services form producer to customer or user d. a philosophy stating that an organization should attempt to accomplish its goals with no regard for the needs of customer e. the inclusion of marketing activities in the activities of an organization

b. a philosophy stating that an organization should try to satisfy customers' needs through a coordinated set of activities that allows the organization to achieve its goals

All companies have a responsibility to ____ so they can provide a return on investment to their owners and investors, create jobs for the community, and contribute goods and services to the economy a. offer the lowest price b. be profitable c. obey their customers d. provide the largest selection possible e. pay employees more than minimum wage

b. be profitable

A target market a. involves a large number of customers b. is a specific group of customers on whom an organization focuses its marketing efforts c. already has several competitors vying for customers' business d. is the same as a salesperson's prospective client list e. is a customer group classified as people with similar demographic characteristics

b. is a specific group of customers on whom an organization focuses its marketing efforts

The two least common competitive structures are a. monopolies and oligopolies b. pure competition and monopolies c. monopolistic competition and monopolies d. pure competition and no competition e. oligopolies and pure competition

b. pure competition and monopolies

Today, establishing long-term, mutually beneficial arrangements in which both the buyer and seller focus on value enhancement through the creation of more satisfying exchanges is known as a. marketing synthesis b. relationship marketing c. a marketing orientation d. the marketing concept e. strategic marketing

b. relationship marketing

Companies that compete for the same limited financial resources of the same customers are known as _____ competitors a. oligopolic b. total budget c. generic d. product e. brand

b. total budget

The marketing plan is a. a plan of all aspects of an organization's business strategy b. written about the same for each SBU c. a written document detailing activities to be performed to implement and control marketing actions d. designed to specify not only marketing, but all other functional areas of business activities as well e. updated only periodically

c. a written document detailing activities to be performed to implement and control marketing actions

Business decisions made in creating a marketing mix a. are made before a target market is identified b. are unchangeable once they are agreed upon by management c. are only as good as the organization's understanding of the needs of the target market d. usually take place when a strategic window is open e. must always be consistent with the firm's opportunities

c. are only as good as the organization's understanding of the needs of the target market

Consumer protection legislation deals with all of the following legal concerns except a. consumer safety b. sale a hazardous products c. monopolistic practices d. information disclosure e. health claims on food packages

c. monopolistic practices

Socially responsible business practice have provided all of the following benefits except a. creating goodwill toward the organization b. attracting employees c. reducing marketing costs d. generating publicity for the firm e. positively impacting local communities

c. reducing marketing costs

Special K cereal is aimed at people concerned about their weight. These people represent the Special K a. marketing mix b. marketing strategy c. target market d. marketing tactic e. consumer advocates

c. target market

According to the text, a market is defined as a. A place to buy products b. The buyers of the products that a company develops, promotes, prices, and distribute c. The specific group of customers on whom an organization focuses its marketing efforts d. A group of individuals and or organizations that have needs for products in a product class and have the ability, willingness, and authority to purchase those products e. The percentage of a group of customers that actually buys a specific product from a specific company

d. A group of individuals and or organizations that have needs for products in a product class and have the ability, willingness, and authority to purchase those products

After determining that customers had concerns about certain ingredients that may cause health issues, Patrizzi's Pizza begin offering a gluten-free pizza product. The creation of this new product was the result of a. A competitive advantage b. A well defined mission statement c. Good strategic planning d. A market opportunity e. Opportunistic behavior

d. A market opportunity

What do environmentalists set as an objective for profitability? a. Companies should surpass the strictest environmental standards even if it negatively affects profitability b. Companies will never be profitable if they comply with environmental standards, so taxpayers must subsidize all production c. Profitability should not be a concern when addressing issues of environmental importance d. Environmentalist should be made profitable, and companies attempting to protect the environment should not have to compete with those harming it in the marketplace e. Companies will be more profitable if they work hard to protect the environment because consumers will reward their efforts through loyalty

d. Environmentalist should be made profitable, and companies attempting to protect the environment should not have to compete with those harming it in the marketplace

According to the text, marketing ethics refers to principles and standards that define a. improper behavior in marketing b. acceptable conduct in society c. improper behavior in business d. acceptable conduct in marketing e. acceptable conduct in general

d. acceptable conduct in marketing

The practice of linking a firm's product marketing to a particular social cause on an ongoing or short-term basis is known as a. economic responsibility b. social responsibility c. ethical marketing d. cause-related marketing e. corporate benevolence

d. cause-related marketing

Consumerism is a a. diverse group of individuals and organizations opposed to foreign producers that sell products in the United States that are much cheaper than those produced by U.S. manufacturers b. social movement that is trying to encourage consumer satisfaction c. social movement that is reorganizing the Council of Better Business Bureaus d. diverse group of individuals and organizations attempting to protect the rights of consumers e. social movement that provides consumers with means for expressing satisfaction and expressing their gratitude to producers

d. diverse group of individuals and organizations attempting to protect the rights of consumers

The four major competitive structures are a. monopolies, oligopolies, oligopolistic monopolies, and pure competition b. pure competition, heavy competition, moderate competition, and light competition c. brand, product, total budget, and generic d. oligopolies, monopolies, monopolistic competition, and pure competition e. monopolies, limited competition, oligopolistic competition, and pure competition

d. oligopolies, monopolies, monopolistic competition, and pure competition

_______ competitors are those that compete in the same product class, but their products have different feature, benefits, and prices a. service b. generic c. brand d. product e. price

d. product

The most basic principles of marketing ethics are ______ to encourage marketers to conform to society's expectations for conduct a. philanthropic responsibilities b. economic responsibilities c. universally accepted behaviors d. written as laws and regulations e. included in the marketing code of ethics

d. written as laws and regulations

Favorable conditions in the marketplace environment that could produce business rewards for the organization is acted upon properly are called a. Strength b. Market strategy c. Market niche d. Threats e. Opportunities

e. Opportunities

The focal point of all marketing activities a. are products b. is the marketing mix c. are profits d. are sales e. are customers

e. are customers

Eva organized a boycott of a local restaurant because of the owner's obvious prejudicial treatment of Latinos. Eva's action would most likely be called a. lobbying b. a public service announcement c. the right to be informed d. a social demonstration e. consumerism

e. consumerism

Analisa understands that even small businesses like her local catering business have certain responsibilities to society. She knows that she must abide by the laws that apply to your business and try to make a profit. What are the other obligations and Analisa should know about? a. ethical and moral b. economic and ethical c. philanthropic and legal d. environmental and ethical e. ethical and philanthropic

e. ethical and philanthropic

When using credit to make purchases, consumers are a. decreasing current buying power and increasing future buying power b. increasing their present discretionary income to extend purchasing power c. putting themselves at significant risk of financial disaster d. forgoing the accumulation of wealth to increase current income e. increasing current buying power at the expense of future buying power

e. increasing current buying power at the expense of future buying power

When a firm has many potential competitors and tries to develop a marketing strategy to differentiate its products from the competitors' products, a(n) _____ structure exists in the competitive environment a. oligopoly b. monopoly c. pure competition d. oligopolistic competition e. monopolistic competition

e. monopolistic competition

In general, which of the following competitive structures is an organization least likely to operate a. monopoly b. monopolistic competition c. oligopoly d. perfect competition e. pure competition

e. pure competition

Successful business organizations should take actions to convert internal weaknesses into ______ and external threats into ______ a. opportunities; core competencies b. core competencies; strengths c. opportunities; strengths d. strengths; core competencies e. strengths; opportunities

e. strengths; opportunities