MKTG 3600 Midterm

Strategy refers to

an organization's long-term course of action designed to deliver a unique customer experience while achieving its goals

Advertising refers to

any paid form of nonpersonal communication about an organization, product, service, or idea by an identified sponsor.

A(n) __________ question is the simplest form of a fixed alternative question that allows only a yes or no response.

dichotomous

Which form of entry into a foreign market requires the greatest commitment?

direct investment

Which of the following is an inherent strength of direct marketing?

direct marketing can be adapted quickly to facilitate customer relationships

The money that remains after paying for taxes and necessities is referred to as __________.

discretionary income

SBUs with a low share of slow-growth markets that may generate enough cash to sustain themselves but do not hold the promise of ever becoming real winners for the organization are referred to as __________.

dogs

Competitive parity budgeting refers to

matching a competitor's absolute level of spending or the proportion per point of market share.

Reminding buyers of the product's existence is the promotional objective during which stage of the product life cycle?

maturity

Which of the following is an inherent weakness of personal selling?

messages may differ between salespeople

Based on the stages of the family life cycle, which of the following groups most likely has the largest amount of discretionary income?

middle-aged couples with children

A firm that views the world as consisting of unique parts and markets to each part differently is referred to as a(n)

multinational firm.

The estimated cost of economic espionage to firms in the United States is estimated to be

$250 billion per year.

New-product experts generally estimate that up to __________ percent of the more than 40,000 new consumable products introduced in the United States annually "don't succeed in the long run."

94

Which of the following statements about advertising is most accurate?

Advertising allows a firm to reach a mass market.

Overseeing strategic marketing efforts at the corporate level would most likely be the responsibility of the __________.

CMO

The 50 million people of the population born between 1965 and 1976, also called the baby bust, refers to __________.

Generation X

The country expected to have the largest population in 2050 is __________.

India

Scanning your memory for previous experiences with products or brands occurs during which stage of the consumer purchase decision process?

Information search

Which of the following statements about bribery is most accurate?

It is illegal for a U.S. corporation to bribe an official of a foreign government or political party to obtain or retain business in a foreign country.

Which of the following is the best example of a nondurable good?

Laundry detergent

A(n) __________ scale is one in which the respondent indicates the extent to which he or she agrees or disagrees with a statement.

Likert scale

Which of the following examples best demonstrates a company's appreciation of another country's values?

McDonald's restaurants in India serve a full line of products except for hamburgers made from beef.

Which of the following statements about relationship marketing is most accurate?

Relationship marketing occurs when there is a personal, ongoing relationship between an organization and its customers.

A filtering of exposure, comprehension, and retention is called __________.

Selective perception

The third step of the marketing research approach is to __________.

The five-step marketing research approach includes: Step 1 - define the problem; Step 2 - develop the research plan; Step 3 - collect relevant information; Step 4 - develop findings; and Step 5 - take marketing actions.

When foreign currencies can buy more U.S. dollars,

U.S. products are less expensive to foreign customers.

The break-even point (BEP) = [Fixed cost ÷ (Unit price − __________)].

Unit variable cost

Which of the following statements about using sex appeals in advertising is FALSE?

While sex appeals are remembered widely by viewers, they fail to draw initial attention.

A marketing research approach that uses a discussion leader to interview 6 to 10 past, present, or prospective customers simultaneously is referred to as

a focus group

Which of the following is an advantage of using magazines as an advertising medium?

a magazine ad has a long life

The VALS framework is an example of

a psychographic system

A field of experience refers to

a similar understanding and knowledge that the sender and receiver apply to the message so that it can be communicated effectively during the communication process.

Elastic demand exists when

a small percentage decrease in price produces a larger percentage increase in quantity demanded.

The promotional mix includes __________, personal selling, sales promotion, public relations, and direct marketing.

advertising

The generation of children born between 1946 and 1964 is referred to as

baby boomers

Figure 9-5 above represents the seven stages of the new-product development process. Stage 4 is the __________ stage.

business analysis

A technique that managers use to categorize strategic business units (SBUs) as question marks, stars, cash cows, or dogs is referred to as a(n)

business portfolio analysis.

Inseparability in services means consumers

cannot separate the service itself from the deliverer of the service.

SBUs with dominant shares of slow-growth markets that provide cash to cover the organization's overhead and to invest in other SBUs are referred to as __________.

cash cows

All of the following are examples of sales promotion tools EXCEPT:

catalogs

The feeling of postpurchase psychological tension or anxiety consumers may experience when faced with two or more highly attractive alternatives is referred to as

cognitive dissonance

Figure 9-5 above represents the seven stages of the new-product development process. Stage 7 is the __________ stage.

commercialization

When Cadillac uses advertising to promote specific features of its Escalade hybrid, it is using which type of product advertisement?

competitive

All of the following are examples of test markets EXCEPT:

concept test market

To be successful, odd-even pricing depends on

customers' perceptions of price.

The facts and figures related to the problem are referred to as __________.

data

Yield management is considered to be a __________ approach to pricing.

demand-oriented

The second step of the marketing research approach is to __________.

develop the research plan

In the Maslow hierarchy of needs, those needs involving personal fulfillment are called __________.

self-actualization

A sudden drop in the average consumer income would be an example of which environmental force?

economic

The clandestine collection of trade secrets or proprietary information about a company's competitors is referred to as

economic espionage.

Those in favor of protectionism argue that it

encourages the development of domestic industries.

Effective marketing benefits society because it

enhances competition, which improves the quality of products and services and lowers prices.

Target pricing refers to

estimating the price that ultimate consumers would be willing to pay for a product, then working backward through markups taken by retailers and wholesalers to determine what price to charge wholesalers.

In using a gap analysis, the two basic components of a customer's evaluation of a service are

expectations and experience.

In the communication process, noise refers to

extraneous factors that can work against effective communication by distorting a message or the feedback received during the communication process.

Life insurance companies like Prudential hope to get you to worry about how your loved ones will be provide for themselves once you have passed away. They paint a very gloomy picture of the possible consequences of not having life insurance, and they make a point of recommending that you act immediately because you never know when it is going to be too late. This is an example of a __________.

fear appeal

The EU has benefited firms in its member nations because

firms do not need to market their products and services on a nation-by-nation basis.

The average number of times a person in the target audience is exposed to an advertisement is referred to as __________.

frequency

All of the following are environmental forces that affect an organization EXCEPT:

geographical

Tariffs refer to

government taxes on products or services entering a country that primarily serve to raise prices on imports.

If taxes rise at a faster rate than incomes, consumers will

have less disposable income and try to economize.

The type of appeal used to imply either directly or subtly that the product is more fun or exciting than competitors' offerings is referred to as a(n) __________.

humorous appeal

The primary purpose of a sneak preview of a film prior to its release is to

identify necessary changes prior to final editing.

The goal of a SWOT analysis is to

identify the critical strategy-related factors that can impact the firm.

Services depend on the people who provide them. As a result, their quality varies with each person's capabilities and day-to-day job performance. This element of services is referred to as __________.

inconsistency

There are five stages in the consumer purchase decision process. The second stage is __________.

information search

In a marketing context, the acronym IMC refers to __________.

integrated marketing communications

A(n) __________ firm engages in trade and marketing in different countries as an extension of the marketing strategy in its home country.

international

In terms of the global marketplace, there are three primary types of companies: __________ firms, multinational firms, and transnational firms.

international

Generally, the U.S. population is becoming

larger, older, and more diverse

Once a company has decided to enter the global marketplace, it must select a means of market entry. Four general options exist: (1) exporting; (2) __________; (3) joint venture; and (4) direct investment.

licensing

The relatively homogenous groups of prospective buyers that have common needs and will respond similarly to a marketing action is referred to as a(n) __________.

market segment

The marketing manager's controllable factors - product, price, promotion, and place - that can be used to solve a marketing problem are referred to as (the) __________.

marketing mix

Two important disadvantages of secondary data are __________ and __________.

not up-to-date; not specific enough for the project

Because there are few sellers, price competition among firms is not desirable for them in which form of competition?

oligopoly

A set of values, ideas, attitudes, and norms of behavior that is learned and shared among the members of an organization is referred to as its __________.

organizational culture

The ratio of __________ to price is referred to as value.

perceived benefits

Which list below presents the Maslow hierarchy of needs in its correct order, beginning with the lowest level need and moving up to the highest level need?

physiological, safety, social, personal, and self-actualization

The three primary types of product advertisements are __________, competitive, and reminder.

pioneering

There are five stages in the consumer purchase decision process. The fifth stage is __________.

postpurchase behavior

Facts and figures that are newly collected for a project at hand are referred to as

primary data

The four Ps of the marketing mix are

product, price, promotion, and place.

All of the following are synonyms for price EXCEPT:

profit

The element of the marketing mix that describes a means of communication between the seller and buyer is known as

promotion

The argument for protectionism is that it

protects a nation's political security.

Consumers accompanied by children

purchase about 40 percent more than when shopping alone.

The percentage of households in a market that are tuned to a particular television show or radio station is referred to as __________.

rating

What marketing metric determines whether a TV program like American Idol remains on the Fox broadcast TV network?

rating

All of the following are sources for new product ideas EXCEPT:

regulators.

A proposed law in New Jersey would ban the use of tanning beds by anyone under the age of 18. This restriction would be an example of which environmental force?

regulatory

The marketing department of an organization is responsible for facilitating __________.

relationships, partnerships, and alliances with the organization's customers, shareholders, suppliers, and other organizations

An example of a marketer-dominated source of information consulted during an external search would include

salespeople

The process of selecting elements from a population, collecting data from them, and using it as representative of all those a researcher is interested in is referred to as

sampling

In marketing research, the term sampling refers to

selecting representative elements from a population and treating their answers as typical of all those in whom they are interested.

Interpreting information so that it is consistent with one's attitudes and beliefs is referred to as

selective comprehension

Prestige pricing refers to

setting a high price so that quality- or status-conscious consumers will be attracted to the product and buy it.

Penetration pricing refers to

setting a low initial price on a new product to appeal immediately to the mass market.

The demographic characteristics of the population and its culture are referred to as

social forces

The set of environmental forces that consists of the demographic characteristics of the population and its culture is referred to as

social forces

Three teenage girls spent an hour at a store trying on various outfits, looking at possible combinations, and asking each other, "How do you think this looks on me?" This situation is most closely related to which of the following situational influences?

social surroundings

Groupthink occurs in a meeting when

someone suspects that there is a problem with the new product concept but is afraid to speak up because everyone else is so enthusiastic about it.

Adding a fixed percentage to the cost of all items in a specific product class is referred to as

standard markup pricing.

The acronym SWOT, as in SWOT analysis, stands for __________.

strengths, weaknesses, opportunities, and threats

The fifth step of the marketing research approach is to __________.

take marketing actions

One or more specific groups of potential consumers toward which an organization directs its marketing program is referred to as a

target market

The North American Free Trade Agreement was designed to encourage free trade between

the United States, Canada, and Mexico.

The combined American Marketing Association's 2004 and 2007 definitions of marketing used in the textbook define marketing as

the activity for creating, communicating, delivering, and exchanging offerings that benefit its customers, the organization, its stakeholders, and society at large.

A customer value proposition is

the cluster of benefits that an organization promises customers to satisfy their needs.

With respect to advertising, CPM is defined as

the cost of reaching 1,000 individuals or households with the advertising message in a given medium.

Cognitive dissonance refers to

the feeling of postpurchase psychological tension or anxiety consumers may experience when faced with two or more highly attractive alternatives.

Five trends in the past decade have significantly influenced the landscape of global marketing. One of them is

the growing prevalence of economic espionage.

Market share refers to

the ratio of sales revenue of the firm to the total sales revenue of all firms in the industry, including the firm itself.

Triple-bottom line refers to

the recognition of the need for organizations to improve the state of people, the planet, and profit simultaneously if they are to achieve sustainable, long-term growth.

A global marketing strategy refers to

the strategy of transnational firms that employ the practice of standardizing marketing activities when there are cultural similarities and adapting them when cultures differ.

A marketing dashboard refers to

the visual computer display of the essential information related to achieving a marketing objective.

In 1962, President John F. Kennedy outlined a Consumer Bill of Rights that codified the ethics of exchange between buyers and sellers. These were the right: (1) __________; (2) to be informed; (3) to choose; and (4) to be heard.

to safety

Which of the following is a strategy for a market leader (rather than a market challenger) when marketing a low-involvement product?

use repetitive advertising messages that reinforce a consumer's knowledge or assure buyers they made the right choice

A __________ is a need that is shaped by a person's knowledge, culture, and personality.

want

Ideally, before a new product or service is developed, a firm should have a precise protocol, which is a statement that identifies: (1) a well-defined target market; (2) specific customers' needs, wants, and preferences; and (3) __________.

what the product or service will be and do to satisfy consumers