Principles of Marketing Exam 1

a company is conducting market research to determine the best areas in which to sell its product. It has developed the research plan. What is the next step of this company's research plan?

implement the plan

which of the following BEST describes the purpose of customer insights?

to create more value for customers

which of the following is the primary reason firms use competitive marketing intelligence?

to gain early insights into competitor moves and strategies, and to prepare quick responses

the role of a company's marketing intermediaries is to do which of the following?

help the company find, promote, sell, and distribute products

what are stars in the growth-share matrix?

high-growth, high-share businesses or products

in analyzing a company's current business portfolio, what is management's first step?

identify strategic business units

the major cultural values of a society are expressed by the people's views of _____.

themselves, others, organizations, society, nature, and the universe

What is the importance of selling and advertising in marketing?

they work in tandem with building customer relationships

why is good marketing management critical?

to ensure that the company serves as many customers as it can and as well as it can

why is it important for a company to collect both primary and secondary data when conducting marketing research?

to have a "full picture" of the subject of its study

which of the following scenarios BEST describes the societal marketing concept?

Edward's, Earthware attempts to make its pottery in a way that satisfies customers but is also environmentally friendly and sustainable over the long term.

Jill Parker owns​ 2,000 acres of ranchland in Iowa.​ Recently, a supply of natural gas was discovered on her property. Not knowing much about the marketing​ environment, she asks you what she should do. Which of the following is the BEST​ advice?

Jill should focus on the business market and license the natural gas rights

what is the main problem that sellers suffering from marketing myopia face?

they focus more on products than on the customer's underlying need

Sanchez Hispanic Foods and Seasonings has started to grow larger than the Sanchez family could ever have imagined. The company is having a hard time keeping track of all of the​ business' marketing activities. They know that they are going to need help to keep the business growing and are looking for solutions. Which of the following potential hires is likely the best decision for the Sanchez​ family?

Noah Lopez, a marketing specialist and expert who would be hired as the Sanchez family's new chief marketing officer

Ethel and Jan have just started a new company, Jantel, inc., and are having trouble deciding which marketing path to take to drive sales. Ethel believes they should follow a make-and-sell philosophy that focuses on improving their product, wheras Jan believes they should be more customer-oriented and find the right products for their customers. Which of the following BEST describes this situation?

Should Jantel, Inc., follow a product or marketing concept?

Using the BCG​ growth-share matrix as a​ guide, Masumura Technologies identified question marks in its business portfolio but is currently maintaining its market share. At a recent meeting with the​ company's senior management​ team, the CEO of Masumura and her team members decided to allocate all of the​ company's profits toward the growth and expansion of these question​ marks, in order to cause the question marks to become stars. What is likely to happen to this​ company?

The growth of the company will be unpredictable because there is no guarantee that a question mark will become a star.

Tina's Tunes is a music store that has been selling CDs for 20 years. Throughout the last six​ years, sales have continuously declined and profits have almost completely disappeared. The owner of​ Tina's Tunes believes resurgence is likely to happen soon and wants to continue business as usual. What is likely to happen to​ Tina's Tunes?

Tina's tunes is likely to fail because it is ignoring the technological environment

Scott Frost has been coming to Aldwin's Diner for 20 years and refuses to go anywhere else. Joseph, the owner, loves Scott's loyalty but admits he purchases only a cup of coffee at each visit. Scott would BEST be described as what?

a barnacle

A power tool company wants to give its customers access to​ internal, nonpublic information about how best to use its product in creative ways. What should the company create to provide customers with this​ information?

a company extranet

proactive businesses often take aggressive actions to affect consumers and the forces in their marketing environments. Which of the following does NOT depict a proactive company?

a local restaurant refusing to counter false allegations of salmonella

​Calvin's Cupcakes is attempting to gather information about its customers in order to improve its customer service. Which of the following is the BEST path for this company to start to develop an efficient​ MIS?

assess the information needs of the company

which of the following generational groups represents one of the most powerful forces shaping the marketing environment?

baby boomers

Vaughn's Video has suffered because more people are subscribing to online streaming sites such as Netflix, YouTube, iTunes, Amazon, and Hulu. Which of the folloring marketing trends has NOT affected Vaughn's Video? a. the changing economic environment b. rapid globalization c. not-for-profit marketing d. the digital age e. sustainable marketing

c. not-for-profit marketing

all of the following are aspects of sustainable marketing except which one? a. practice caring capitalism by being civic-minded and responsible b. help protect the natural environment c. observe environmental legislation as it is instituted d. seek ways to profit by serving the long-run interests of customers and communities e. deliver value in a socially and environmentally responsible way

c. observe environmental legislation as it is instituted

to exercise social responsibility, many companies are linking themselves to what type of marketing?

cause-related

Juanita owns a small​ hot-air balloon company in​ Albuquerque, New Mexico. She recently started a Facebook page for her​ company, and many of her customers are asking for​ store-sponsored hot-air balloon trips. They believe​ Juanita's expertise would make her the perfect guide. Juanita decides to host quarterly​ hot-air balloon trips and experiences a huge increase in sales and customer satisfaction. Which of the following is the BEST conclusion that can be drawn from​ Juanita's situation?

customer insights can provide valuable information to a small business

the group of factors that affect consumers' purchasing power and spending patterns is called the _____.

economic environment

a company's marketing information system (MIS) is valuable because it _____.

enables a company to use customer insights to improve relationships with customers

what is marketing analytics?

encompasses the technologies and processes that manage, measure, and analyze marketing data so you can make effective and efficient decisions about marketing activities

a company's value chain is only as strong as its weakest link. What should a company do to properly gauge the strength of its links and continually improve?

examine how well each group performs its work of adding customer value

which of the following describes the type of research used to help define the research problem and suggest hypotheses?

exploratory research

what is big data?

extremely large data sets that can be analyzed to reveal patterns and trends

you and seven other people relay your feelings and thoughts about a potential new product to a trained moderator. In exchange you receive a small payment. You are participating in a(n) _____.

focus group

Asher Airlines instituted a marketing program whose intent is to create a relationship with customers with seat upgrades and free miles for their continued patronage. What customer relationship tool is Asher Airlines using?

frequency marketing program

which generational group seamlessly blends online and offline worlds as they socialize and shop?

generation Z

an international company has appointed a CPO to ensure the privacy and confidentiality of the consumer data it collects. which of the following is the CPO MOST likely to do as a function of his or her job?

inform customers of the company's privacy policy

marketers obtained needed marketing information from which of the following?

internal data, marketing intelligence, and marketing research

a value chain consists of which of the following?

internal departments and other companies that carry out value-creating activities

of the following, which best reflects how the American population has changed over time?

it has become more diverse, better educated, and more mobile

which of the following is a valid concern when it comes to the four Ps concept?

it may omit or underemphasize certain important activities

after creating a company's mission and objectives, the executive team must then plan ___ by keeping in mind the best fit for its strengths, weaknesses, and opportunities in the environment.

its business portfolio

when consumers respond in a similar way to a given set of marketing efforts, they can be referred to as a ____.

market segment

_____ consists of the analysis tools, technologies, and processes by which marketers dig out meaningful patterns in big data to gain customer insights and gauge marketing performance

marketing analytics

a marketing dashboard is used to do which of the following?

monitor strategic marketing performance

how do market demands relate to needs and wants?

needs are satisfied by wants, and buying power converts wants into demand

which of the following BEST describes research relationships?

observation is best suited for exploratory research, surveys for descriptive research, and experiments for casual research

which of the following statements about big data is correct?

one result of big data is that marketing managers are often overloaded and overwhelmed with information

which of the following statements about online research is correct?

online surveys generally have higher response rates than those conducted by mail or phone

Which marketing philosophy holds that customers will favor products that offer the most in quality, performance, and innovative features?

product concept

which of the following would be good advice for someone conducting marketing research in a foreign country?

researching respondents in other parts of the world is more difficult than it is in the United States

which of the following information must a researcher evaluate to make certain it is relevant, accurate, and impartial?

secondary information

which of the following is NOT a step in the strategic planning process?

set up revenue and financial goals

which of the following is NOT part of an overall SWOT analysis evaluation of a company?

strategy it stands for strengths, weaknesses, opportunities, and threats

what is the purpose of the marketing mix as part of the overall marketing strategy?

to produce a response that influences a demand for the product from the customers the company is targeting

what is the ultimate aim of customer relationships management?

to produce high customer equity

Which of the following correctly describes customer​ purchases, sales force​ contacts, service and support​ calls, web and social media site​ visits, satisfaction​ surveys, credit and payment​ interactions, and market research​ studies?

touch points

to create value for customers, marketers must improve the performance of the ____, which includes partnering with suppliers, distributors, and customers.

value deliver network

the second purpose of government regulation is to ____.

protect consumers from unfair business practices

the third purpose of government is to _____.

protect the interests of society against unrestrained business practices

the purpose of business legislation is primarily based on _____.

protecting companies from each other

the ultimate goal of the marketing process is to do which of the following?

receive value from customers

to be successful, why should companies try to adopt a proactive stance on marketing?

a proactive stance allows company to take advantage of opportunities as they arise.

stars, cash cows, question marks, and dogs are the four types of strategic business units (SBUs) defined in which of the following?

growth-share matrix

why is marketing return on investment (ROI) so difficult to measure?

there is no consistent definition

the real value of marketing information rests in the _____.

customer insights it provides

______ is a group numbering 55 million or more consumers and sometimes is an overlooked "in-between" consumer group because it is both smaller and less materialistic than other groups and prizes experience, not acquisition.

generation X

which of the following identifies a change in the technological environment that could affect the success of a business?

a company develops a new battery that lasts twice as long as its predecessor

what constitutes a market information system (MIS)?

a system to generate and validate actionable customer and marketing insights

the act of obtaining a desired object from someone by offering something in return is known as which of the following?

an exchange

which of the following is enhancing how marketers learn about and interact with customers?

big data and marketing analysis

A wedding services company changes its marketing strategy to reflect the fact that more LGBTQ​ (lesbian/gay/bisexual/transgender/queer) marriages are taking place. The company is offering a broader range of ceremonies that cater to this market. Which of the following environments must this wedding company​ analyze?

cultural

which of the following is at the center of marketing strategy and programs?

customer engagement, value, and relationships

Bertram's beer structures its company in such a way as to encourage its most profitable older customers to remain loyal while also targeting a new generation of customers. What is Bertram's beer attempting to build?

customer equity

a local drama club wants to increase the membership and attendance at its performances. To do so, it hosts free shows, starts poetry-reading nights, and sends volunteers to the local high school. What is the drama club engaging in?

market exchange

Denim Blue Jean Corporation is a growing company located in Washington​ State, but it is beginning to develop a presence in the surrounding states as well. It sells only one product—blue jeans—but it has 12 different lines of jeans that cater to​ men, women,​ children, babies,​ toddlers, and teens. Which type of marketing department organization would BEST suit Denim Blue Jean​ Corporation?

market management organization

Beverly's Burgers came under fire recently when allegations were made that its veggie burgers were actually made with beef. To counter the​ claims, the restaurant called in a company to test not only its veggie​ burgers, but also the rest of its vegetarian options to prove they lacked meat. The results were displayed publicly on the​ restaurant's Facebook page. What BEST describes​ Beverly's Burgers' response to the​ allegations?

proactive

which of the following is not one of the four Ps of the marketing mix?

production the four Ps are promotion, product, price, place

which of the following is NOT one of the marketing management functions?

promoting the correct ones are planning, control, implementation, and analysis

how do the individual components of a SWOT analysis work together to determine the status of a company?

by ascertaining a company's strengths, relating them to opportunities, minimizing weaknesses, and identifying threats to growth and development

which of the following is NOT a step in the marketing research process?

comparing research findings to other studies the marketing research process contains implementing the research plan, defining the research problem, interpreting and reporting the findings, and developing the research plan

Nibbles Pet Food Corporation is in the process of developing its new market strategy. The marketing team has already established the​ company's niche product—​premium, organic dog and cat food—and contracted to sell it in several​ high-end pet stores. The team has also determined the optimum price to create value for customers and still make a profit. What does the marketing team need to do​ now?

create a promotion strategy to increase customer awareness

which of the following is NOT a primary goal of competitive marketing intelligence?

creating an understanding of the business-to-business environment

the goal of a marketing development growth strategy is to do which of the following?

identify and develop new markets for current products of a company's market

Julie's jump rope emporium is a new company. From a marketing standpoint, what is the FIRST thing julie's jump rope emporium needs to do?

determine who in the community wants or needs a jump rope

how does the new concept of marketing differ from the old concept of marketing? ("telling and selling")

the new concept focuses on customer needs

which types of companies would most benefit from conducting marketing research?

both large multinational firms like Disney and IBM and small local firms

when a company starts the strategic planning process at the corporate level, it begins by ____.

defining its overall purpose and mission

which of the following describes the current trend in businesses regarding relationships with customers?

hand-pick the most profitable customers and allow them more input

the demographic, economic, natural, technological, political, and cultural forces that affect a company's ability to serve its customers make up which of the following?

macroenvironment

Which of the following helps a company find the game plan for long-run survival and growth that makes the most sense given its specific situation, opportunities, objectives, and resources?

strategic planning

there have been dramatic changes in the political environment that affect marketing. Which of the following does NOT represent one of those changes?

strong emphasis on free trade and open borders

​Chicago's Best Pizzeria has been operating on the north side of Chicago for more than 30 years. Its target market includes young urban professionals who want​ new-style organic pizzas with exotic ingredients.​ However, in recent​ years, the population in the​ pizzeria's neighborhood has been​ shifting, and now fewer young urban professionals live there. The population has grown older and wants traditional​ pizza, not pizza with exotic ingredients. Which of the following identifies the​ pizzeria's BEST response to this​ situation?

target a new market with a different product

when a company chooses a group of customers to serve, it is engaging in which of the following?

target marketing

wonders such as smartphones, driverless cars and antibiotics can be attributed to which marketing environment?

technological

what is MOST likely to cause a variation in customer-perceived value?

the customer's opinion of what constitutes value

how has the internet MOST affected companies and customers?

the internet has allowed customers to take marketing content and share it

selling and advertising are part of a larger set of marketing tools that work together to satisfy customer needs and build customer relationships known as what?

the marketing mix

how does the microenvironment of a company differ from its macroenvironment?

the microenvironment deals with the company, suppliers, marketing intermediaries, customer markets, competitors, and publics

which of the following includes shortages of certain raw materials, higher pollution levels, and more government intervention?

the natural environment

a new hardware company is writing its mission statement. Which of the following is the BEST mission statement possible for a new company?

we will help customers build, invigorate, restore, refurbish, or completely redesign their homes or businesses.

Nguyen's Sporting Goods is having difficulty obtaining the credit it needs to expand. What should the company do in order to alleviate its financial situation?

work out a plan with its financial intermediaries