Exam #1 Review

The __________ element of the marketing mix includes outlets, channels, coverage, transportation, and stock level. promotion place price product market

place

For which of the following items would extended problem solving MOST LIKELY be used? a. an automobile b. chewing gum c. a backpack d. cake mix e. designer jeans

a. an automobile

What is a unique strength relative to competitors, often based on quality, time, cost, or innovation referred to as? a. competitive advantage b. point of distinction c. sustainable advantage d. product differentiation e. competitive competency

a. competitive advantage

Environmental trends come from all of the following forces EXCEPT: a. geographical b. social c. economic d. competitive e. regulatory

a. geographical

The curving point on a profit potential and marketing risk curve can be appointed to a. joint venture b. franchising c. licensing d. exporting e. direct investment

a. joint venture

Selling virtually the same product in other countries works well for companies such as New Balance Athletic Shoes. This is an example of which type of global marketing strategy? a. product extension b. product adaptation c. product customization d. product invention e. product integration

a. product extension

In diversification analysis, product development refers to a. the marketing strategy of selling new products to current markets. b. developing new products and selling them in new markets. c. acquiring other companies to develop new products. d. selling current products to new markets. e. increasing sales of current product in current markets.

a. selling new products to current markets.

Converting socially responsible ideas into actions involves careful planning and monitoring of programs. Many companies develop, implement, and evaluate their social responsibility efforts by means of a(n) a. social audit. b. financial audit. c. action plan. d. research plan. e. tactical plan.

a. social audit

Which type of firm views the world as one market and emphasizes cultural similarities across countries rather than their differences? a. transnational b. multidomestic c. international d. multinational e. transcontinental

a. transnational

Which of the following statements is an example of place utility? a) A wireless smartphone company offers six-month financing, same as cash. b) ATM machines in thousands of locations. c) Cold cut packages that can be zipped closed for reuse. d) An iPhone with a large selection of new "apps." e) A service station that sells both regular gasoline and diesel fuel.

b) ATM machines in thousands of locations.

The uncontrollable forces in a marketing decision involving social, economic, technological, competitive, and regulatory forces are referred to as a) the four Ps b) environmental forces. c) utilities. d) the marketing mix. e) marketer factors.

b) environmental forces

The terms "goal" and "objective" are often used interchangeably. However, in both cases, which of the following statements would be most accurate? a. Goal-setting only applies to business firms; nonprofit organizations typically do not set goals because they don't earn a profit. b. Goals convert an organization's mission and business into long- and short-term performance targets. c. Goals and objectives are actually the detailed day-to-day activities necessary to implement a marketing program. d. A company's goals and objectives are often laudable (worthy) in intent, but unrealistic in practice because they are never accomplished during the specified time period. e. The terms goal and objective are NOT used interchangeably. Goals are philosophical while objectives are performance-based.

b. Goals convert an organization's mission and business into long- and short-term performance targets.

Strategy refers to a. a road map for the entire organization for a specified future period of time, such as one or five years. b. an organization's long-term course of action designed to deliver a unique customer experience while achieving its goals. c. a statement of the organization's function in society, often identifying its customers, markets, product, and technologies. d. an organization's corporate tactical or action plan. e. statements of an accomplishment of a task to be achieved by a certain time.

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

Four new technologies are expected to have impact on marketing. These are a. neuron technology, lithium batteries, cloud computing, and wireless power. Option 2 b. biotechnology, SmartGrids, natural user interfaces, and social networks. Option 1 c. nanotechnology, autobots, cloud computing, and wireless power. Option 5 d. crowdsourcing, genomics, QR codes, and CRT TVs. Option 3 e. books, video conferencing, solar cells, and quantum dots. Option 4

b. biotechnology, SmartGrids, natural user interfaces, and social networks.

The two central concerns of marketing are __________. a. increasing market share and making profits b. discovering and satisfying consumer needs c. practicing ethics and sustainability d. developing products and finding suppliers e. holding down costs while increasing profits

b. discovering and satisfying consumer needs

The clandestine collection of trade secrets or proprietary information about a company's competitors is referred to as __________. a. industrial surveillance b. economic espionage c. marketplace espionage d. patent infringement e. industrial espionage

b. economic espionage

More than half of all new businesses fail within __________ years of their launch. a. two b. five c. four d. ten e. three

b. five

Combinations of the marketing mix that reflect the unique attitudes, ancestry, communication preferences, and lifestyles of different races are referred to as __________ marketing programs. a. regional b. multicultural c. generational d. cross-cultural e. panethnic

b. multicultural

Consumer behavior refers to a. those behaviors that result from (1) repeated experience and (2) reasoning. b. the actions a person takes in purchasing and using products and services, including the mental and social processes that come before and after these actions. c. the mental and social processes that are innate in a person from birth. d. the five stages a buyer passes through in making choices about which product and service to buy. e. the aspects of a consumer's decision-making processes that cannot be measured.

b. the actions a person takes in purchasing and using products and services, including the mental and social processes that come before and after these actions.

Which of the following statements best defines consumer needs and wants? a) Needs and wants are exactly the same. b) Needs are far more influential than wants with respect to marketing decision making. c) Needs occur when a person feels deprived of basic necessities such as food, clothing, and shelter while wants are determined by a person's knowledge, culture, or personality. d) Wants affect marketing decisions primarily for planned purchases while needs affect marketing decisions primarily for impulse purchases. e) Wants occur when a person feels deprived of basic necessities such as food, clothing, and shelter while needs are determined by a person's knowledge, culture, or personality.

c) Needs occur when a person feels deprived of basic necessities such as food, clothing, and shelter while wants are determined by a person's knowledge, culture, or personality.

Which statement best describes the most significant difference between a business firm and a nonprofit organization? a. Business firms operate with larger budgets than nonprofits. b. Nonprofit organizations are concerned with social issues and business firms are not. c. Both serve customers, but business firms seek a profit while nonprofit organizations do not. d. Nonprofit organizations are publicly owned and business firms are privately owned. e. Nonprofit organizations do not carry on economic activities while business firms do.

c. Both serve customers, but business firms seek a profit while nonprofit organizations do not.

The American Marketing Association Statement of Ethics identifies six key ethical values. These include: honesty, responsibility, fairness, respect, openness, and __________. a. integrity b. diversity c. citizenship d. charity e. perseverance

c. citizenship

Copyrights, trademarks, and patents are a. public goods. b. limited to books, music, and software. c. intellectual property. d. rights granted to individuals or organizations by the WTO for a period of five years. e. subject to ISO 14000 requirements.

c. intellectual property

What does the Latin phrase caveat emptor mean? a. cash on delivery b. such is life c. let the buyer beware d. through or of itself e. question the ethics

c. let the buyer beware

By understanding its business, an organization can take steps to define its __________, a statement of the organization's functions in society that identifies its customers, markets, products, and technologies. a. core benefit proposition b. doctrine c. mission d. philosophy e. code of ethics

c. mission

The purpose of environmental scanning is to a. only interpret trends in the marketplace. b. only forecast trends in the marketplace. c. only identify and interpret trends in the marketplace. d. identify, interpret, and forecast trends in the marketplace. e. only identify trends in the marketplace.

c. only identify and interpret trends in the marketplace

Financial security is an example of a __________ need. a. social b. physiological c. safety d. personal e. self-actualization

c. safety

The set of environmental forces that consists of the demographic characteristics of the population and its values is referred to as a. cultural forces. b. market forces. c. social forces. d. consumer forces. e. economic forces.

c. social forces.

Factors influencing personal moral philosophy and ethical behavior include __________, business culture and industry practices, and corporate culture and expectations. a. national and regional legislation b. religious beliefs and practices c. societal culture and norms d. the universal concept of good vs. evil e. universal core values

c. societal culture and norms

The economy refers to a. the independent financial factors that are not affected by changes in government spending. Option 1 b. the production, distribution, and consumption of products, services, and ideas by households. Option 3 c. the income, expenditures, and resources that affect the cost of running a business and household. Option 4 d. the forces within a manufacturer's control that affect the demand and supply its offerings. Option 5 e. the purchase of the highest quality product for the lowest possible price. Option 2

c. the income, expenditures, and resources that affect the cost of running a business and household. Option 4

Regulation refers to a. society's values and standards that are enforceable in the courts. b. the moral principles and values that govern the actions and decisions of an individual or group. c. the restrictions that state and federal laws place on business with regard to the conduct of its activities. d. requirements concerning which customers a firm may serve or not serve. e. constraints placed on businesses for activities that are legal but unethical.

c. the restrictions that state and federal laws place on business with regard to the conduct of its activities.

Economic espionage is the clandestine collection of __________ or proprietary information about a company's competitors. a. marketing research b. annual reports c. trade secrets d. governmental audits e. competitive intelligence

c. trade secrets

In marketing, the idea of exchange refers to a) the negotiation phase between the manufacturer and the seller. b) the bartering of products and services for other products and services. c) the practice of swapping products and services for other products and services rather than for money. d) the trade of things of value between buyer and seller so that each is better off after the trade. e) the financial renumeration (monetary payment) for a product or service.

d) the trade of things of value between buyer and seller so that each is better off after the trade.

What does a code of ethics refer to? a. the state and local laws regarding ethical business behavior b. the dress codes, teamwork rules, and permissible sayings of its employees c. the fundamental, passionate, and enduring principles that guide an organization's conduct over time d. a formal statement of ethical principles and rules of conduct e. the set of values, ideas, and attitudes that is learned and shared among the members of an organization

d. a formal statement of ethical principles, and rules of conduct

Emily wants to purchase a new computer. She is unsure about what hardware and software she will need. As a result, she has begun asking for advice from friends and relatives. In addition, she has talked to several computer salespeople at Apple and Best Buy and has looked at some websites. Emily is engaging in a. a purchase task. b. an internal search. c. problem recognition. d. an external search. e. the creation of an antecedent state.

d. an external search

Ethical exchanges between sellers and buyers should result in a. the buyer forming a strategic alliance with the seller. b. the seller offering buyers its products and services at cost, especially during a period of recession. c. the buyer getting the product for the best price at the expense of the seller. d. both parties to the exchange being better off after a transaction. e. the seller making a profit at the expense of the buyer.

d. both parties to the exchange being better off after a transaction

You want to buy some dry breakfast cereal and are in the mood for unsweetened flakes. The store you go to has three cereals of this type: Post Toasties, Kellogg's Corn Flakes, and General Mills Wheaties. Although you are familiar with and like each of these cereals, you decide to choose Kellogg's Corn Flakes. Collectively, this group of cereal brands is called a(n) a. cognitive cluster. b. impulse set. c. evaluative set. d. consideration set. e. value group.

d. consideration set

Which groups does a firm exhibiting stakeholder responsibility primarily serve? a. owners and stockholders b. the general public, public interest groups, and environmental groups c. general public, owners, and stockholders d. consumers, employees, and suppliers e. federal, state, and local governments

d. consumers, employees, suppliers

To serve both buyers and sellers, marketing seeks to __________ and satisfy the needs and wants of prospective customers. a. change b. create c. manipulate d. discover e. weigh

d. discover

The economic argument for protectionism is that it preserves jobs, protects a nation's political security, discourages dependency on other countries, and a. lowers prices for domestic consumers. b. strengthens the economy by encouraging a balance of trade. c. creates a more loyal and hardworking domestic workforce. d. encourages the development of domestic industries. e. instills a sense of nationalism, which in turn protects economic stability.

d. encourages the development of domestic industries

There are five stages in the consumer purchase decision process. The second stage is __________. a. problem recognition b. purchase decision c. alternative evaluation d. information search e. postpurchase behavior

d. information search

Apple (iPad), Samsung (Galaxy Tab), Motorola (Xoom), and BlackBerry (PlayBook) control the vast majority of the tablet device market. These companies operate in what type of market? a. monopoly b. pure competition c. monopolistic competition d. oligopoly e. intensive

d. oligopoly

Marketers can reduce __________ by obtaining seals of approval for products, securing endorsements from influential people, providing trial usage of the product, or providing warranties and guarantees. a. purchase anxiety b. consumer cynicism c. cognitive dissonance d. perceived risk e. consumer angst

d. perceived risk

Antecedent states include a. the purpose of the purchase. b. other people present. c. the crowding in retail stores. d. the consumer's mood. e. the time of day.

d. the consumer's mood

Marketing refers to a. the production of products or services that will generate the highest return on investment. b. the activity involved in actually getting a product or service to ultimate consumers and organizational buyers. c. the activity for creating, communicating, delivering, and exchanging offerings that benefit its customers, the organization, its stakeholders, and society at large. d. the process of identifying target market segments for a product or service. e. the strategies used in the advertising and promotion of products and services.

d. the process of identifying target market segments for a product or service.

Which of the following statements about stakeholders is most accurate? a) The only way to be a stakeholder is to have a financial investment in an organization's product, service, or idea. b) Suppliers are the most important stakeholders because without them, products could never be produced. c) Employees can be stakeholders only if they own shares in their company. d) Ultimately, the only relevant stakeholder is the ultimate consumer. e) The organization, suppliers, shareholders, employees, and consumers are all stakeholders of an organization and all should benefit from the organization's marketing activities.

e) The organization, suppliers, shareholders, employees, and consumers are all stakeholders of an organization and all should benefit from the organization's marketing activities.

What is moral idealism? a. a personal moral philosophy that focuses on the greatest good for the greatest number by assessing the costs and benefits of the consequences of ethical behavior b. a societal moral philosophy based on the Golden Rule of the Judeo-Christian ethic found in the Bill of Rights of the U.S. Constitution c. a democratic consensus of moral principles and laws that govern the behavior of individuals based on legislation adopted at the federal, state, and local levels d. a formal statement of ethical principles and rules of conduct e. a personal moral philosophy that considers individual rights or duties as universal, regardless of the outcome

e. a personal moral philosophy that considers individual rights or duties as universal, regardless of the outcome

Suppose that after graduation you find a job that pays you an annual salary of $60,000. After paying taxes of $25,000, you have $35,000 left to pay for basic household expenses (food, shelter, clothing, and transportation), which totals $30,000 or $2,500 per month. After putting $3,000 in savings, you have $2,000 left for a two-week vacation during your first year of employment. This $2,000 amount is referred to as your a. disposable income. b. gross income. c. net income. d. earned income after taxes. e. discretionary income.

e. discretionary income

The reward to a business firm for the risk it undertakes in marketing its offerings is referred to as contribution margin. assets. shareholders' equity. goodwill. profit.

profit

What is the process of continually acquiring information on events occurring outside the organization, to identify and interpret potential trends called? a. organizational scanning b. a SWOT analysis c. external threat assessment d. trend analysis e. environmental scanning

e. environmental scanning

In a marketing context, a market refers to a. the free the operation of supply and demand. b. the central location for all buying and selling of products and services. c. people with a similar want for a particular product or service. d. an open space or covered building where vendors convene to sell their offerings. e. people with both the desire and ability to buy a specific offering.

e. people with both the desire and ability to buy a specific offering.

The strategic marketing process includes three phases: a. define your product, select your market, and implement your plan. b. opportunity analysis, market-product analysis, and financial analysis. c. situation analysis, market product focus and goal setting, and the marketing program. d. corporate-level strategy, business unit-level strategy, and functional-level strategy. e. planning, implementation, and evaluation.

e. planning, implementation, and evaluation

Five influences can have an impact on a consumer's purchase decision process, which are purchase task, social surroundings, physical surroundings, temporal effects, and antecedent states. These are referred to as a. evaluative criteria. b. marketing mix influences. c. sociocultural influences. d. psychological influences. e. situational influences.

e. situational influences

All of the following are names the BCG has given to describe the four quadrants in its growth-share matrix EXCEPT: hedgehogs. stars. cash cows. question marks. dogs.

hedgehogs

Protectionism refers to:

the practice of shielding one or more sectors of a country's economy from foreign competition through the use of tariffs or quotas.