MKT 230 EXAM 1
If a family spends $2,000 a month on goods and services, how much of that $2,000 goes for marketing activities?
$1,000
By the turn of the twentieth century, the population of the United States had shifted to three large racial and ethnic groups. These groups are
African-Americans, Hispanics, and Caucasians
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.
BE PROFITABLE
Marketers primarily focus their environmental analysis on __________________ competitors.
BRAND
Which of the following employees is most responsible for setting the ethical tone for the entire marketing organization?
CEO
Which of the following firms would be most likely to have a monopoly for its competitive environment?
Charter Cable TV
Which category of income are marketers most interested in?
DISPOSABLE INCOME
Consumers buying products online have dramatically affected the ____________ variable of the marketing mix.
DISTRIBUTION
In Europe, companies can voluntarily apply for a designation to indicate that their product is less harmful to the environment than competing products. This label is known as the
Eco-label
Of all the federal regulatory units, the _____________________ most heavily influences marketing activities.
FEDERAL TRADE COMMISSION (FTC)
Discretionary income is associated with all of the following except
FOOD
Which of the following is not at the generic competitor level for Ford's Expedition sport utility vehicle?
Ford's Escape SUV
A physical product you can touch is a(a)
GOOD
Which of the following is essentially an uncontrollable factor in developing a marketing mix?
Government regulations
The Church of the Latter Day Saints has used advertising for many years, airing a commercial TV spot that shows parents actively playing games with their children. The Church is using marketing to promote its
IDEAS
Who drafted the Consumer Bill of Rights?
JFK
A change in the minimum drinking age in any given state illustrates a change in the _____________ for Miller Brewing.
MARKETING ENVIRONMENT
What type of competitive structure exists when a firm produces a product that has no close substitutes?
MONOPOLY
When Campbell's introduced a line of low-sodium soups in response to customer demand, it was following which one of the following philosophies?
Marketing concept
Scott, a buyer for a medium-sized company, is assessing the value of competing software products for use in his firm. Which of the following would not be a customer benefit considered in his determination of this product's value?
Monetary price
As a firm fulfills its basic economic responsibilities, it must simultaneously
OBEY LAWS & REGULATIONS
McDonald's supports and funds Ronald McDonald houses for the families of terminally-ill children to stay in to be near their loved ones. McDonald's action demonstrates the fulfillment of _______ responsibility.
PHILANTHROPIC
The element of the marketing mix used to increase awareness of a product or company is
PROMOTION
Assuming that inflation is low, high buying power characterizes the ____________ stage of the business cycle.
PROSPERITY
Which of the following actions is illegal?
Paying political officials not to enforce a particular law
What are some of the common price-related ethical issues?
Predatory pricing and price fixing
Although marketing theory supports the contrary, it is more probable that marketing budgets will be cut during periods of economic
RECESSION
Consumer confidence and willingness to spend begins to increase during periods of ________________________ , and marketers must remain very flexible to make the necessary adjustments.
RECOVERY
From the 1920s to the 1050s, demand for manufactured goods decreased, leading to the ___________ orientation.
SALES
Any constituent who has a claim in some aspect of a company's products, operations, markets, industry, or outcomes is known as a(n)
STAKEHOLDER
Based on the work by the Boston Consulting Group, products with a dominant share of the market and good prospects for growth are
STARS
Which of the following is not a purpose of the marketing plan?
Serve as a contract with the customer
A commercial for the drink SunnyD explains how nutritious it is in comparison to other, more "sugary" drinks. While children under 12 are the most likely consumers of SunnyD, the commercial is aimed at mothers. These mothers represent SunnyD's
TARGET MARKET
Which of the following best characterizes the forces of the marketing environment?
The forces change dramatically and quickly, and a change in one force is likely to affect the other forces.
If a marketing researcher is interested in observing group interaction during an informal, unstructured, and open-ended data collection process, he or she should use
a focus-group interview
According to the text, a market is defined as
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
In marketing research, a sample is best described as
a limited number of units chosen to represent the characteristics of a total population
After determining that consumers had concerns about fat and carbohydrates, Sardino's Pizza began offering a low-fat, low-carb pizza product. The creation of this new product was the result of
a market opportunity
Micromarketing is
a market segmentation approach in which firms focus precise marketing efforts on very small geographic markets.
When Disney World wants to have at least 90 percent of its customers indicating they had a memorable and satisfying experience at the park hotels, this is an example of
a marketing objective
The marketing concept is best defined as
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.
High Gliding Air Academy is developing its marketing mix for the coming year. Its managers know that they must first select ______ which may be the most important decision they make in the planning process.
a target market
A strategic window is
a temporary period of optimum fit between the key requirements of a market and the particular capabilities of a firm competing in that market.
Often, the Delphi technique is used in conjunction with an expert forecasting survey. The major objective is to
allow experts to work separately to reach a consensus as to their forecasts
A marketing ethics issue likely exists when
an individual or organization must choose from among several actions that must be evaluated as right or wrong
Decreasing sales, increasing expenses, or decreasing profits
are examples of symptoms that point to larger problems.
Marketing knowledge and skills
are valuable personal and professional assets.
There is some concern that marketing research has been used incorrectly by some firms. The major problem comes from __________ because the researcher wants to obtain favorable results.
bias and distortion
The manager at a local recreational vehicle store, Off-Road Rage, believes the next two years will be difficult because of an economic recession. Using this forecast, he determines the effect on the industry's market potential and then estimates how his company's potential sales will look based on this outlook. This manager is using a ______________ approach to estimating sales potential.
breakdown
Variables such as geographic location, type of organization, customer size, and type of product usage are used to segment __________________ markets.
business
The ability to purchase a product is a function of
buying power
The practice of linking a firm's product marketing to a particular social cause on an ongoing or short-term basis is known as
cause-related marketing
Codes of conduct are also frequently known as
codes of ethics
The maximum percentage of market potential that an individual firm can expect to obtain for a specific product is the
company sale potential
Tiffany's markets its exclusive jewelry and gifts to high-income individuals interested in high-quality products and a well-known brand name. It uses the same marketing mix to reach this market. Tiffany's uses a(n) _________ strategy.
concentrated targeting
Gucci Group, a marketer of high-fashion products, achieved a company turnaround by ensuring that its brand had the same image and proper display around the world. It also lowered prices on some items, like handbags, to be more competitive. This illustrates a company working to develop a marketing mix that is both ___________ and ___________ .
consistent; flexible
The reputation and well-known brand name of Rolex watches represents a ___________ for Rolex.
core competency
A set of values, beliefs, goals, norms, and rituals shared by members of an organization is called
corporate culture
The Classic Hotel Group has begun to offer entire floors of rooms in its hotels that are smoke-free, adults-only, and pet-friendly. The Classic Hotel Group is responding to changes in
cultural values
When managers at Go Pro are developing their strategic plan, they use a market orientation as a guide to ensure that ________ is an integral part of the process.
customer satisfaction
Primary data are best described as the
data that are observed, recorded, or collected directly from subjects
The Kingtel Corporation is expanding operations into countries outside the United States. To improve local managers' responsiveness to local conditions, Kingtel's senior management has decided to delegate decision-making authority further down the chain of command. Kingtel is
decentralizing
Segmentation variables are usually grouped into four categories:
demographic, geographic, psychographic, and behavioristic
A survey question that requires a yes or no answer is called a
dichotomous question
Proctor & Gamble markets Cheer detergent to young singles and couples and Tide detergent to families. Procter & Gamble is using a(n) __________ targeting strategy for laundry detergents.
differentiated
At times, large retailers such as Walmart may be accused of coercion in dealing with intermediaries because of the amount of power and control these large companies have over many of their suppliers. This is most potentially a _____________ related ethical issue.
distribution
The purpose of market segmentation is to
divide a total market to enable a marketer to develop a more precise marketing mix
In managing customer relationships, the three primary ways profits can be obtained are by
enhancing the profitability of existing customers, extending the duration of relationships with customers, and obtaining new customers.
A marketing plan document usually begins with a(n)
executive summary
A competitive advantage exists when a
firm matches a core competency to opportunities it has discovered in the marketplace
Systems such as PRIZM and Acorn provide companies with lifestyle and demographic information about neighborhoods throughout the United States. This information is used to aid
geodemographic segmentation
Compared to a mail survey, telephone surveys have
higher response rates, but higher costs
Costco believes that most of its sales are to small businesses rather than consumers -- and that women are more likely to be making the purchasing decisions. This is an example of a(n) ___________ that Costco could test through marketing research.
hypothesis
If Little Caesars wants to determine the impact of different coupon offers on pizza unit sales, it needs to conduct
hypothesis development
To formulate a marketing strategy, one must
identify and analyze a target market and develop a marketing mix to satisfy individuals in that market
Companies that incorporate ethics and social responsibility into their strategic plans are likely to experience
improved marketing performance
The real value of marketing research to the organization can best be measured by
improvements in the ability to make decisions
A person's buying power is a function of
income, wealth, and credit
Starbucks provides training and support to its employees, including health care benefits. Through these ___________ efforts Starbucks is better able to deliver quality products and service3 to its customers.
internal marketing
Time Warner Cable uses its sales reports broken down by geographic regions as part of its marketing research to determine which markets are most rapidly adopting high-speed Internet connections. In this example, Time Warner Cable is using
internal secondary data
A target market
is a specific group of customers on whom an organization focuses its marketing efforts.
Family life cycle is most typically based on
marital status and age of children
When the right combination of circumstances occurs at the right time to allow an organization to take action toward a target market, the firm is faced with a
market opportunity
General Electric calculates that the total number of light bulbs sold to consumers in the next year by all light bulb producers is 1 billion, given anticipated marketing efforts by the firms involved. This figure represents the industry's
market potential
The percentage of a market which actually buys a specific product from a specific company is referred to as that product's
market share
The Sara Lee Company is attempting to forecast sales for a new ice cream cake. To come up with an accurate forecast, Sara Lee places the product in Atlanta supermarkets for a period of four months. In this instance, Sara Lee is using which forecasting method?
market test
CyberCycle Inc., is preparing a written document specifying the activities to be performed to implement and control its marketing activities. This document is called the
marketing plan
A study that is valid and reliable
measures what it is supposed to measure and produces almost identical results in repeated trials
If a company segments its market on the basis of their reasons for purchasing a particular product, the primary segmentation variable in use is
motives
For demographic purposes, a mail survey sent out by the American Cancer Society asks each respondent to identify their race by choosing among a list of possibilities. This common type of question is called a(n) ____________ question.
multiple choice
The Better Business Bureau is probably best known
nongovernmental regulatory group
Cameras, counting machines, and scanners are used most often in
observation
Three primary methods of collecting information for environmental scanning are
observation, secondary sources, and marketing research.
The four major competitive structures are
oligopolies, monopolies, monopolistic competition, and pure competition
An item on the University Book Store's survey asks respondents to tell the store, in their own words, what they like least about textbook shopping. This item would be an example of a(n) __________ question.
open-ended
An expected level of performance against which actual performance can be compared is a
performance standard.
All the elements, individuals, or units of interest to researchers for a specific study are called the
population
Procompetitive laws are those designed to
preserve competition
Which sampling design gives every member of the population an equal chance of appearing in the sample?
random
While Silk Soymilk engages in environmental scanning and analysis, the company is more likely to change its products and marketing strategies to adapt to environmental forces rather than trying to influence these forces. Silk Soymilk has a(n) _______ approach to marketing environmental forces.
reactive
Socially responsible business practices have provided all of the following benefits except
reducing marketing costs
Marketing ethics
refers to principles and standards that define acceptable conduct in marketing
Age, rate of product use, location, and gender are all examples of common
segmentation variables
The objective of sampling in marketing research is to
select representative units from a total population
The three basic forms that a product can take are
services, ideas, and goods.
Honeybees are disappearing at an alarming rate and since they pollinate about a third of all foods we eat, it is an important concern. That's why Haagen-Dazs launched a microsite to increase the awareness of the issue. In addition, it launched a "Twitcause" campaign on Twitter, raising $7,000 in 2 days. This example illistrates the positive consequences of
social responsibility
The FTC can issue a cease-and-desist order, which is an injunction to
stop doing whatever caused the complaint.
Kraft purchased the Duracell Battery Company and now operates this division as a separate profit center within the firm. In this example, Duracell is a(n) _____________ unit of Kraft.
strategic business
StarKist Tuna has frequently extolled its dolphin-safe methods of catching tuna. This is an example of
sustainability marketing
Corporate executives often prefer marketing research findings to be put into a report
that is clear, short, and simply expressed.
Rob Donaldson runs a successful wholesale business that sells equipment to restaurants throughout the Midwest. He is considering purchasing his own fleet of trucks to deliver the equipment instead of relying on a shipper as he is currently doing. This most closely represents a decision about
the best way to distribute his products.
Consumerism is
the efforts of independent individuals, groups, and organizations to protect the rights of consumers.
Relying on executive judgment for forecasting may be adequate when
the executive has considerable experience and product demand is relatively stable
The primary value that a marketer expects to receive from a customer in an exchange relationship is
the price charged for the product.
Marketing research is best defined as
the systematic design, collection, interpretation, and reporting of information to help marketers solve specific marketing problems or take advantage of market opportunities.
Dell segments its business markets into small business, corporate, government agencies, K-12 schools, and higher education institutions. The primary segmentation variable used in this example is
type of organization
To find a target market, a firm can use one of these targeting strategies.
undifferentiated strategy, the concentrated strategy, and the differentiated strategy
Walmart sells numerous products, including packaged food, produce, automotive maintenance services, eyeglasses, clothing, and toys. Walmart advertises itself as a store where "we save people money so they can live better," focusing on its low prices as the customer's most important need. Walmart's advertising appears to use a(n) _____________ strategy to a market that is ____________ .
undifferentiated; homogeneous
In response to organizational pressure to perform, Barry used a deceptive sales tactic to obtain a major sales contract. He was surprised that he wasn't punished for his behavior and even received a substantial bonus for securing the contract. Given the same opportunity in the future, Barry will most likely
use similar sales tactic again
The equation a buyer applies to assess a product's value is
value = customer benefits - customer costs.
