Principles of Marketing Chapter 2 Quiz

What is one way to analyze costs when conducting marketing cost analysis?

Compare a company's costs with industry averages

​A strategic business unit is not self-supporting in terms of sales, markets, production, and other resources.

False

​Cash cows are market leaders that are growing fast, with substantial reported profits.

False

Honda executives have set an objective for the firm's new HR-V to boost Honda's market share by 10%. What is the main problem with this objective?

It does not specify a time period.

Which of the following is a characteristic of a marketing objective?

It is consistent with both business-unit and corporate strategy.

Which of the following is true about the development of a marketing plan?

It should be unique to the organization for which it was created.

Marketing strategies should be established before marketing objectives are decided.

True

​Each of the marketing mix elements must work together with the others.

True

​Marketing objectives should be stated in such a way that the degree of accomplishment can be measured accurately.

True

The Forever 21 chain of retail stores has a reputation as one of the "coolest" brands according to Piper Jaffray. Their stores feature the latest trends, must-have styles, and the hottest deals for shoppers. The retail stores are typically found in shopping malls across the country and are comfortable places to shop—featuring interesting displays, pop music, and bright lights. Forever 21's selection of denim is the most popular product appealing to both genders and has helped them achieve double-digit growth. Which of the following would most likely be the "best" target market for Forever 21?

Men and women aged 18 to 24

Cameron Dunphee runs the marketing department of a large electronics firm. This firm operates in an extremely competitive business environment. Cameron wants to ensure that he is involved in all the daily decisions and that there is a clear chain of communication between himself and his marketing employees. He believes that his extensive marketing experience makes him the best person for making all the major marketing decisions. Cameron believes all employees should act together as a cohesive unit and know their roles. Under Cameron Dunphee, the marketing department most likely has a _______________ structure

centralized

Mama Maggie's Bakery is a family-owned business with more than $1 million in annual revenues and six locations. At Miss Maiden's, decisions are sometimes slow in coming and top-level managers delegate very little authority to lower-level employees. Mama Maggie's is a(n) ____ organization. Correct!

centralized

Apple has been successful by anticipating what consumers would want in new technological advances, convenience, and ease of use. The introduction of the iPad was an example of a _____ for Apple, something that an organization does extremely well and may give a company an advantage over its competition.

core competency

Southwest Airlines' planes are easily recognizable even when in the air due to their vibrant color scheme, striped tail, distinctive font, and striped heart. Southwest carries this color scheme and heart symbol throughout much of its communication—airport signs, print and television advertising, even its smartphone app. This use of color, font, and symbols to convey Southwest Airlines' personality is an example of a(n)

corporate identity.

The foundation on which a company can develop its marketing mix is

identification and analysis of a target market.

The ability of later market entrants to achieve long-term competitive advantages by not being the first to offer a certain product in a marketplace is called

late-mover advantage.

Jo's Coffee Shop wants to increase customer satisfaction. Currently, only 75% of customers indicate they are satisfied with the services offered. In the next six months, it plans on implementing a number of changes to improve its services. Jo's Coffee plans to implement a survey at the end of the six-month period to determine whether customer satisfaction has improved. Jo's wants 90% of its customers to indicate they are satisfied with its service. This is an example of a ________________.

marketing objective

Pantene's new shampoo, AO1, is faltering badly in the market. Pantene's marketing personnel are unsure who is responsible for various marketing tasks, when these tasks are to be completed, or what resources have been allocated. Suave Marketing Director Mei Lee said that the problem is that AO1 has the most poorly written ____ she has ever seen.

marketing plan

​Favorable conditions in the marketplace environment that could produce business rewards for the organization if acted upon properly are called

opportunities.

​Business decisions made in creating a marketing mix

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