Chapter 1, 2, 3, 4 Marketing

Kroger is involved in identifying and analyzing a target market. The firm then develops a marketing mix to satisfy individuals in that market to gain long-term competitive advantages. Based on this example, Kroger is creating a

Marketing strategy

Which of the following actions is illegal?

Paying political officials not to enforce a particular law

Which of the following statements about social responsibility is correct?

Social responsibility refers to a company's obligation to maximize its positive impact and minimize its negative impact on society.

Successful business organizations should take actions to convert internal weaknesses into ____ and external threats into ____.

Strengths and opportunities

The focal point of all marketing activities

are customers

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

​The definition of marketing implies that ____ should receive benefits from exchange relationships.

both customers and businesses

The director of marketing for Duck Brand tells the rest of the management team, "When it comes to our duct tape unit, our strategy will be to use funds generated here to support our venture in the industrial bonding market." This strategy indicates that the duct tape unit falls into which one of the following classifications?

cash cow

According to the Boston Consulting Group, marketers may classify their products as all of the following except

cash pig

A ____ is created when a company matches its core competency to opportunities it has discovered in the marketplace.

competitive advantage

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

The reputation and well-known brand name of Mercedes-Benz automobiles represents a ____ for Mercedes-Benz.

core competency

At his new job, Kunal notices that everyone places high values on their families and each others' families, birthdays are always celebrated, and flexible schedules are permitted to facilitate family involvement as long as the work is still getting done. Everyone is very relaxed and friendly. Kunal has made several observations about the

corporate culture

After Staples gathers information related to its marketing environment, it attempts to define current environmental changes and predict future changes. This determines possible opportunities and threats facing the company. It illustrates the process that is called

environmental analysis

To monitor changes in the marketing environment effectively, marketers must engage in

environmental scanning and analysis

A competitive advantage is created when a company matches its core competency to the opportunities it has discovered in the market.

false

Stars are profitable products that usually generate more cash than is required to maintain share.

false

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

false

​Marketing efforts do not involve the design and development of products.

false

A target market

is a specific group of consumers who have similar wants and needs

​An organization's business goals should be derived from its

mission statement

What type of competitive structure exists when a firm produces a product that has no close substitutes?

monopoly

The four major competitive structures are

oligopolies, monopolies, monopolistic competition, and pure competition.

A business that contributes resources to the community to improve the quality of life is taking on a(n) ____ responsibility.

philanthropic

Deciding to add gel insoles to its running shoes would be a change in the ____ element of the marketing mix for Nike.

product

Although marketing theory supports the contrary, it is more probable that marketing budgets will be cut during periods of economic

recession

If Glad expresses concern that its plastic bags and storage products are having too great an impact on the pollution of groundwater under landfills, this concern is directly related to the firm's

social responsibility

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

Managers at the Tycho Manufacturing are engaged in a complex process of revising their organization's mission and goals and developing corporate strategy, marketing objectives, marketing strategy, and, eventually, a marketing plan. This process is called

strategic planning

​An analysis of ____ examines internal factors that give the organization certain advantages and disadvantages in meeting the needs of its target markets.

strengths and weaknesses

​Distribution, price, promotion, and product are all elements of

the marketing mix

​A market opportunity results from

the right combination of circumstances and timing that permits an organization to take action to reach a particular target market.

A sustainable competitive advantage is one that cannot be copied by a firm's competitors.

true

A target market is a specific group of customers on whom an organization focuses its marketing efforts.

true

Codes of conduct (ethics) are formalized rules and standards that describe what the company expects of its employees in terms of ethical behavior.

true

Corporate strategy determines the means for utilizing resources in the functional areas of business to reach the organization's goals.

true

Customers are the focal point of all marketing activities.

true

Environmental analysis helps managers identify potential threats and opportunities linked to environmental changes.

true

Monitoring the competitive environment guides marketers in developing competitive advantages.

true

Once trust is lost in marketing relationships, it can take a lifetime to rebuild.

true

People learn values and principles through socialization by family members, social groups, religion, and formal education.

true

Social responsibility is an organization's obligation to maximize its positive impact and minimize its negative impact on society.

true

The marketing concept stresses that a business organization can best achieve its goal by providing customer satisfaction through coordinated activities.

true

The marketing environment consists of external forces that directly or indirectly influence an organization's acquisition of inputs and generation of outputs.

true

The strength of one's buying power depends partially on the state of the economy.

true

Top management sets the ethical tone for the entire organization.

true

When assessing value, customers consider nonmonetary costs such as time and effort.

true

​A core competency is something a firm does extremely well-sometimes so well that it gives the company an advantage over its competition.

true

​Marketing objectives state what is to be accomplished through marketing activities.

true

​The analysis of strengths and weaknesses focuses on internal factors that give the organization certain advantages and disadvantages in meeting the needs of its target markets.

true