Principles of Marketing Final Exam Review

In marketing terms, what is a person looking to satisfy if he or she feels deprived of basic necessities such as food, clothing, shelter, transportation, or safety?

A need

The activity of buyers and sellers trading things of value so that each is better off as a result is referred to as

An exchange

Which of the following is the correct definition of inflation?

An increase in the general level of prices of products in an economy over a period of time

The generation of children born between 1946 and 1964 is retiring at a rate of 10,000 per day. What is the name of this demographic group?

Baby boomers

The name, term, symbol, design, or any combination of these that identifies and differentiates a firm's products is known as its

Brand

Direct competition is also known as

Brand competition

Which of the following does not satisfy a consumer need?

Cable television

Which of the following is not one of the five major strategic options for entering the international workplace?

Capital investment

What 1972 environmental regulation was designed to reduce industrial pollution in US waters?

Clean Water Act

Which of the following products would most likely be considered a dog?

Compact disk

The superior position a product enjoys over competing products if consumers believe it has more value than other products in its category is referred to as a

Competitive advantage

According to the text, what two facets of nonprofit organizations makes branding more critical for them as compared to for-profit organizations?

Complex goals and complex audiences

A measure of how optimistic consumers are about the overall state of the economy and their own personal finances is referred to as

Consumer confidence

Which of the following is not considered to be a demographic characteristic?

Consumer confidence

After listening to customer requests for travel routes to the Northwest, Southwest Airlines has added cross-country routes to both Seattle and Portland. By providing its customers with benefits that meet their needs, Southwest is providing

Customer value

The perceived benefits, both monetary and nonmonetary, that customers receive from a product compared with the cost associated with obtaining it is referred to as

Customer value

Which of the following would NOT be considered a member of the supply chain?

Customers

A situation in which products that perform the same function compete against one another is referred to as

Direct competition

Which method of entering a foreign market carries with it the most risk?

Direct ownership

The amount of spending money available to households after paying taxes is called

Disposable income

The five key components of the marketing plan are

Executive summary, situation analysis, marketing strategy, financials, and controls

Typically the least risky option for entering international markets is

Exporting

Which of the following is the accurate cause of a recession?

GDP declines for two or more consecutive quarters

What term is used to describe the increasingly interconnected nature of the world economy?

Globalization

What was the purpose of the Wheeler-Lea Act (1938)?

It made deceptive and misleading advertising illegal

Which of the following is not a requirement necessary to constitute a perfect order?

It must include return packaging material in case the product is damaged

Failure to adhere to the _____ dimension of CSR led to the demise of Enron, Arthur Anderson, and WorldCom.

Legal

Which marketing strategy would Krispy Kreme doughnuts be using if it decided to begin selling its doughnuts in Mexico for the first time?

Market development

The marketing strategy that emphasizes selling more of existing goods and services to existing customers is called

Market penetration

When marketers evaluate whether a marketing campaign was successful by using metrics to measure performance, they are engaged in

Marketing analytics

The combination of activities that represent everything a firm can do to influence demand for its good, service, or idea is referred to as the marketing

Mix

An advertisement shows a group of boys playing soccer on a hot day. When they take a break, the boys run to a cooler to find something to quench their thirst. Inside the cooler are water bottles, cans of soda, fruit juices, and Gatorade. Immediately, the boys fight over the Gatorade showing that it is clearly the best choice. In this ad, liquid refreshment represents a _____, and Gatorade represents a _____.

Need; want

How often should firms undertake the task of strategic planning>

On a continual basis as conditions change

Compare the following statements to determine which one accurately depicts how income is distributed across the U.S. population.

Over the past several decades, income for the highest wage earners grew at a much quicker pace than for households in the bottom wage-earning bracket

Wants are the form that human needs take and are shaped by

Personality, culture, and buying situation

What external marketing factor is at work when political action committees raise money to help elect individuals to promote a particular issue related to their industries?

Political

According to your text, any discussion of the marketing mix typically begins with which of the four Ps?

Product

Which of the following accurately represents the 4 Ps of the marketing mix?

Product, price, place, and promotion

Which era in the history of marketing began in the early years of the United States and lasted until the mid-1920s when the growth in production outpaced consumer demand?

Production orientation

Indirect competition occurs when

Products provide alternate solutions to the same market

All of the following are elements contained in the 4 Ps of the marketing mix except:

Profit

A new ice cream shop in town allows customers to create their own sundaes using various flavors of ice cream and toppings. The store owners have decided to have a contest for the most unique customer creation. They are asking customers to create a sundae, take a picture of their creation and post it on their Facebook page as well as on Instagram so people can vote for their favorite. The winning creation will be featured on the shop's menu. This use of social media relates to which element of the marketing mix?

Promotion

Which element of the marketing mix details how the organization will communicate the value of its product?

Promotion

Products that are typically new to the market and require significant marketing investment in promotion, product management, and distribution are classified as

Question Marks

Which era in the history of marketing continued until the end of World War II?

Sales orientation

The three basic characteristics of a quality marketing objective is that it be

Specific, measurable, and realistic

The process of thoughtfully defining a firm's objectives and developing a method for achieving those objectives is called

Strategic planning

Read the following statement regarding strategic planning to determine which is not accurate

Strategic planning is a one-time process completed when a firm outlines its objectives

According to your text, of all the external factors that affect the marketing environment, which one represents the most significant challenges, as well as the most significant opportunities, for marketing professionals?

Technological

Which regulation was passed to eliminate monopolies and guarantee competition?

The Sherman Antitrust Act (1890)

What document provides a one- to two-page summary of the marketing plan's main points?

The executive summary

What part of the financial section of a marketing plan provides readers of the plan a bottom-line estimate of the organization's profitability?

The financial projections

What primary strategic planning tool is used for directing and coordinating the marketing effort and helps to guide the firm's marketing strategy?

The marketing plan

What aspect of product development should firms try to achieve when developing a successful brand?

The product should provide value to the customers that will be using it.

What is the overall purpose of a marketing plan?

To guide the analysis, implementation, and control of the firm's marketing strategy

Which company most likely has a philosophy that elevates customer service to the highest level?

a company that institutes a no-hassle, no time-limit return policy

Marketers who focus on communicating to stakeholders the company's attempts to adopt environmentally friendly practices, will most likely use which of the environmental marketing strategy?

beyond compliance leadership

Fenton has a food truck in which he sells mainly burgers and fries. He decided to expand his product line to begin serving grilled chicken sandwiches as well. Fenton is noticing that his existing customers now order the chicken over the burgers, and his sales have not increased, in fact, they have decreased slightly. This is most likely due to

cannibalization

A strategy in which two or more companies issue a single product in an effort to capitalize on the equity of each company's brand is called

co-branding

When building a successful brand, it is important that all of the marketing decisions, promotions, and employees reinforce the brand by providing a _____ experience in the minds of consumers

consistent

the act of organizations voluntarily donating some of their profits or resources to charitable causes

corporate philanthropy

A critical element to performance measurement metrics is

customer input

The total amount a customer will spend from acquisition through the end of a relationship with a brand is referred to as?

customer lifetime value

Which measure of customer service effectiveness focuses on trends in repeat buying from current customers?

customer loyalty

The process by which companies get new customers, keep the customers they already have, and grow the business by increasing their share of customers' purchases is referred to as

customer relationship management

According to your text, an effective nonprofit brand should be all of the following except

detailed and thought-provoking

Young and Rubicam, a global advertising agency, developed the BrandAsset Valuator, which suggests that brand equity is based on which of the following four dimensions?

differentiation, relevance, esteem, and knowledge

According to your text, _____ is a central tenet of social media as it relates to CSR initiatives?

engaging in the community to build a profitable organization

The laws designed to protect the natural environment against undue harm by individuals and organizations are referred to as

environmental regulations

Among consumers who write product reviews online, a majority do so to

give recognition for a job well done

over 40% of US shoppers say that they purchase private label brands for at least 1/2 of which product category?

groceries

Which of the following is helpful in facilitating a bran's expansion into new markets?

having a high level of brand equity

According to your text, the ultimate goal of delivering superior customer service is to

increase brand loyalty

What could be the potential downside of continually offering discounts as a type of promotional strategy?

it could potentially devalue the brand and its relationship with its customers

What metric measures the percentage of the total number of items on the order that the firm shipped on time?

item fill rate

The customer relationship management process is described in your text as being

iterative

Which two dimensions form the foundation of CSR in that they are required of a firm?

legal and economic

A firm that uses data to compare the costs of retaining customers and the costs of acquiring new customers with the goal of determining how much money each type of customer requires is using

lifetime value analysis

The process of developing an organization's corporate social responsibility program begins when a firm incorporates a focus on fulfilling the economic, legal, ethical and philanthropic dimensions into its

marketing strategy

Placing an order for a product on a company's web page is a ____ method for direct consumer interaction

mechanical

Which performance metric measures how many shipments are delivered per the requested delivery date?

on-time delivery

The type of customer communication that provides the customer with information concerning the completeness of the order, when it will ship from the firm, and when it will arrive to the customer is called

order status communication

All of the activities of designing and producing the container for a product are referred to as

packaging

The brand image that bears your name and that must be managed 24 hours a day, 7 days a week, 365 days a year, is referred to as you

personal brand

Of the global challenges and opportunities to implementing sustainability efforts highlighted in your test, which can limit the availability of or increase the prices on sustainable goods for consumers?

political barriers

Products developed by a retailer and sold only by that specific retailer are known as

private label brands

The advent of social media as a communication tool for marketers has made companies

proactive in their communication approach

Tiffany is well-known as a luxury brand of jewelry. The iconic Tiffany blue box, along with its blue jewelry bag, has been used for over 100 years. By communicating class and sophistication, Tiffany's packaging is an example of how packaging

promotes a brand's image

Brand revitalization is also referred to as

rebranding

A local hair salon is analyzing its customer data to determine the last time each customer visited the salon, if he or she purchased a hair care product, and how much money the customer spends on the salon's services and products. In essence, it is trying to determine its customers' profit potential so it can target them for marketing efforts. What data analysis tool is the salon using?

recency-frequency-monetary analysis

The degree to which customers can identify the brand under a variety of circumstances is referred to as brand

recognition

Which of the following is the best source of information about in-person customer interactions and is particularly helpful in gathering specific customer information such as contact information and purchase references?

sales personnel

Web-based technologies that enable a company to build and manage social media solutions and services are referred to as

social media platforms

Which environmental marketing strategy entails re-shaping the industry through the creation of differential value for consumers and through making contributions to society in the form of both reduced costs and reduced environmental impact?

sustainable value innovation strategy

A clothing manufacturer has decided to buy its cotton only from those growers that grow it organically. This is an example of

tactical greening

Ethics can be defined as

the moral standards expected by a society

The performance measurement known as line fill rate measures

the percentage of item stocking types on the order shipped on time and complete

The concept of sustainable marketing refers to

the process of creating, communicating, and delivering value to customers in a way that incorporates the concept of sustainability

The last step of the customer relationship management process is to

utilize analysis to build customer relationships

The eco-branding strategy tends to succeed in industreis

where significant barriers to imitation exist