Introduction to Marketing Mid-Term Exam
Which of the following is most likely to be an idea marketer
Abuse Counselor
Competitive growth strategies are based on
Analyses of each product or business unit
What is a primary difference between business and consumer buyers?
Business buyers generally make larger orders than consumer buyers
In a traditional organization, marketing decisions are likely to be
Centralized at the top levels of the organization
________________ promote ethical behavior by reducing opportunities for unethical behavior; employees know what is expected of them and what kind of punishment follows if rules are violated.
Codes of Conduct
Which of the following is an example of benefit segmentation?
Colgate-Palmolive markets three types of toothpaste: toothpaste with fluoride to strengthen tooth enamel, toothpaste with whitening properties, and toothpaste for sensitive gums.
A ____ is created when a company matches its core competency to opportunities it has discovered in the marketplace.
Competitive Advantage
Which of the following issues is an ethical issue in marketing research?
Confidentiality issues in marketing research
Long-term relationships with profitable customers is the key objective of
Customer Relationship Management
Demand for business products is characterized as derived. From what is the demand derived?
Demand for consumer products
Consumer confidence is at alow during periods of
Depression
The strategic planning process begins with
Development of an organizational mission statment
Which category of income are marketers most insterested in?
Disposable Income
A marketing plan document usally begins with an(n)
Executive Summary
A physical product you can touch is a(n)
Good
Which of the following is often used to raise revenue for a country and/or to protect domestic products?
Import tariff
____________________ involves developing and performing marketing activities across national boundaries.
International marketing
What must the government do when it wants to buy a standard product?
It sends out a detailed description of the product to qualified bidders
Which one of the following statements about marketing information technology is true?
Marketing information systems typically include databases
Which of the following is true about marketing research?
Marketing research can help develop marketing mixes that match customer needs.
Which of the following is not an example of the implementation of the marketing concept?
McDonald's reduces the labor costs to produce its sausage-egg biscuits.
A marketing objective should be expressed in clear, simple terms; be _____________; specify a time frame for completion; and ensure the marketing objective is _____________ with both business-unit and corporate strategies.
Measurable; Consistent
An organization's business goals should be derived from its
Mission Statement
Favorable conditions in the marketplace environment that could produce business rewards for the organization if acted upon properly are called
Opportunities
A business that contributes resources to the community to improve the quality of life is taking on a(n) ____ responsibility.
Philanthropic
A firm wants to build a subsidiary in the Middle East. However, it is apprehensive because of protests in some Middle Eastern countries and the violence in Syria. It does not know if it should take the risk of expanding. Which type of barrier does this situation represent?
Political
Cognitive dissonance is most likely to occur during which part of the decision-making process?
Postpurchase evaluation
Which of the following can be effective in increasing mail survey response rates and developing panels of respondents who are interviewed regularly?
Premiums
Which of the following is not a component of a marketing plan?
Product
Which of the following can help sustain interest in a product that has been around for a long time?
Promotion
In which type of sampling design is the final choice of respondents left up to the interviewer?
Quota
The General Agreement on Tariffs and Trade was initially implemented to do which of the following?
Reduce worldwide tariffs and increase international trade
____________ is a useful sales forecasting method as long as a precise relationship between past sales figures and one or more variables can be established. Without these relationships, this method is useless in forecasting future sales.
Regression analysis
Which of the following is an example of consumer misbehavior?
Shoplifting
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
Which of the following statements is incorrect?
Strategic planning begins at the marketing level and proceeds through business-unit and corporate levels.
Which of the following is true about the marketing environment?
The effects of marketing environment forces can be difficult to predict.
Who is likely to win in a reverse auction?
The lowest bidder
Why would a company use the undifferentiated strategy?
The needs of individual consumers in the target market for a specific product are similar, so the organization can satisfy most customers with a single marketing mix.
What is one of the benefits of industry classification systems like NAICS?
They provide a consistent means of categorizing industries
The accumulation of past income, natural resources, and financial resources is known as
Wealth
____ buy products from manufacturers and then resell the products to other firms in the distribution system.
Wholesalers
Most business buying decisions are made by
a firm's buying center
In the past, personal selling has garnered a reputation as being too aggressive. You would like to test whether these perceptions have changed after the implementation of ethical principles for the personal selling industry. To start off your research, you would like to ask ten consumers in a group setting a set of questions about their views of personal selling. This is an example of
a focus group
If a marketing researcher is interested in observing group interaction during an informal, unstructured, and open-ended data collection process, he or she should use
a focus-group interview.
An informed guess or assumption about a certain problem or set of circumstances is known as
a hypothesis
A business partnership between a domestic firm and a foreign firm is known as
a joint venture
Micromarketing is
a market segmentation approach in which firms focus precise marketing efforts on very small geographic markets
The marketing plan is
a written document detailing activities to be performed to implement and control marketing actions.
Selective exposure refers to
admitting only certain inputs into consciousness
The gross domestic product is
an overall measure of a nation's economic standing.
The focal point of all marketing activites
are customers
Cognitive, affective, and behavioral are the three major components of
attitudes
The ____ is the difference in value between a nation's exports and its imports.
balance of trade
Marketers understand that the best marketing strategy in the world is doomed to fail if it is not properly implemented. With that in mind, an effective implementation strategy
begins with identifying the activities to be performed, and ends with assigning responsibility for each activity to one or more team members
Budweiser, Heineken, Sam Adams, Corona, Guinness, and Miller are examples of __________ competitors in the beverage industry.
brand
Marketers primarily focus their environmental analysis on ____ competitors.
brand
The role of an export agent is to
bring buyers and sellers from different countries together and collect a commission for arranging sales
The ability to purchase a product is a function of
buying power.
The practice of linking a firm's product marketing to a particular social cause on an ongoing or short-term basis is known as
cause-related marketing.
The four basic rights outlined in the consumer bill of rights include the right to safety, the right to be heard, the right to
choose, and the right to be informed.
When organizing perceptual inputs, people tend to mentally fill in missing elements in a pattern or statement. This principle is called
closure.
When markets are comprised of people with differing product needs, the marketing manager should use a(n) ____ strategy.
concentrated or differentiated targeting
Purposeful actions to take advantage of or harm others during a transaction is best described as
consumer fraud
In the process of conducting marketing research, marketers should allow for
continual evaluation of the data during the entire collection period
Which of the following describes the relationships among the three planning levels, from broadest to narrowest?
corporate strategy; business-unit strategy; marketing strategy
The public is becoming more aware of how marketers' activities affect the welfare of consumers and society. As a result, more firms are working to
create a responsible approach to developing long-term relationships with customers and society
Marketing is the process of
creating, distributing, promoting, and pricing products to facilitate satisfying exchange relationship with cutomers and to devvelop and maintain favorable relationships with stakeholders in a dynamic evironment
To fully appreciate what an effective marketing concept means to the firm, the marketer must first understand that _______________ is the major focus of the marketing concept. This in turn should enable the firm to _______________. Ultimately, this all leads to _________________.
customer satisfaction; earn long-term profits; increased shareholder value
The main focus of a marketing information system is on
data storage and retrieval
The feasibility and degree of globalization is determined by the
degree of similarity among the various environmental and market conditions
Segmentation variables are usually grouped into four categories:
demographic, geographic, psychographic, and behavioristic
The fact that business customers purchase products to be used directly or indirectly in the production of goods and services to satisfy customers' needs means that demand for business products is
derived
A survey question that requires a yes or no answer is called a
dichotomous question
The purpose of market segmentation is to
divide a total market to enable a marketer to develop a more precise marketing mix
After purchasing a product, postpurchase evaluation may result in cognitive dissonance. Cognitive dissonance is
doubts that occur because the buyer questions whether the decision to purchase the product was right
Brand name, product characteristics, packaging, and labeling are some of the ______________ marketing mix variables to standardize for international markets.
easiest
To monitor changes in the marketing environment effectively, marketers must engage in
environmental scanning and analysis.
A group of brands that a consumer views as alternatives for possible purchase is called an
evoked set
Quota sampling is most commonly used in
exploratory studies
The forces that other people exert on one's buying behavior are called social influences. These come from reference groups and opinion leaders, digital influences, social classes, culture and subcultures, roles, and
family
A marketer that targets customers based on marital status and the presence and age of children is using
family life cycle
The degree to which a firm is able to "think globally, act locally" affects the success of the firm's _________________ strategy as it goes international.
globalization
Marketing activities
help sell an organization's product and generate financial resources for the firm
The purchase of products from a foreign source is called
importing
Companies that incorporate ethics and social responsibility into their strategic plans are likely to experience
improved marketing performance.
Demand for business products is also known as ____ demand.
industrial
One of the guaranteed constants in the global business environment is
instability
In the consumer buying decision process, a buyer will search his or her memory for information about products that might solve the problem they have identified in the
internal searchA group of brands that a consumer views as alternatives for possible purchase is called an
Extended decision making is the type of consumer decision-making process that
is the most complex decision-making behavior, which comes into play when a purchase involves unfamiliar, expensive, or infrequently bought products
The psychographic variable that includes numerous characteristics related to people's activities, interests, and opinion is
lifestyle
When a firm's products sell in foreign countries with little or no effort to obtain foreign sales, the firm is engaging in
limited exporting
Although it may seem logical to target higher-income consumers, many marketers choose to target lower-income segments because
lower-income consumers represent a much larger population globally
Any group of people who, as individuals or as organizations, have needs for products in a product class and who have the ability, willingness, and authority to buy such products is a(n)
market
Businesses that strive to determine what customers need or want and then develop products to satisfy those needs and wants are operating in a(n) ____ orientation.
market
The total volume of a product, for all firms in an industry, that would be purchased by specific customer groups within a specified time period at a given level of industry-wide marketing activity, is the
market potential.
Individuals, groups, or organizations with one or more similar characteristics that cause them to have similar product needs are classified as
market segments
Advances in technology, along with falling political and economic barriers and the universal desire for a higher standard of living, have made
marketing across national borders commonplace
Strategic planning requires ________________ to facilitate the process of assessing opportunities or threats from competitors.
marketing research
A customer evaluates the quality of the products being considered to determine whether they
meet specifications
Most business purchases can be classified as belonging to one of three types:
modified rebuy, new-task, or straight rebuy
Firms that have operations or subsidiaries located in many countries are referred to as
multinational enterprises
Product specifications are best described as
necessary characteristics and level of quality
When a business is making its initial purchase of an item to be used to perform a new job, it is known as a ____ purchase.
new-task
In ____ sampling, there is no way to calculate the likelihood that a specific element of the population being studied will be chosen.
nonprobability
Three primary methods of collecting information for environmental scanning are
observation, secondary sources, and marketing research.
The practice of contracting with an organization to perform some or all business functions in a country other than the country in which the product will be sold is known as
offshore outsourcing
Institutional markets are
organizations that seek nonbusiness goals
Many suppliers and their customers invest time and resources to build and maintain mutually beneficial relationships which are often called
partnerships
The primary psychological influences on consumer behavior are
perception, motives, learning, attitudes, personality, and lifestyles
Participants in ____ frequently get to see pictures, products, advertising samples, and diagrams.
personal interview surveys
The results of many studies have been inconclusive regarding the association between buyer behavior and
personality
Marketers who attempt to influence and change the various environmental forces have a(n) ____ response to these forces.
proactive
The two basic types of sampling that marketing researchers use are
probability and nonprobability
The five major stages of the consumer buying decision process, in order, are
problem recognition, information search, evaluation of alternatives, purchase, and postpurchase evaluation
Business markets are typically divided into four categories. These categories are
producer, reseller, government, and institutional
The term dumping refers to the sale of
products sold in foreign countries at unfairly low prices.
The development of a person's self-concept is a function of
psychological and social factors
Marketers who view political forces as being beyond their control are taking a(n) ____ response toward these forces.
reactive
Marketing Ethics
refers to principles and standards that define acceptable conduct in marketing.
A forecasting method that predicts sales based on relationships between past sales and other variables is called
regression analysis
The most significant factor influencing a buyer's level of involvement is
risk
Product testing for reliability and quality helps to ensure a consumer's right to
safety
The objective of sampling in marketing research is to
select representative units from a total population.
Perception is a three-step process that involves
selecting, organizing, and interpreting information inputs
According to Maslow's hierarchy of needs, human beings have five levels of needs they are constantly seeking to satisfy. The need for love and affection is an example of one of humans' _________________ needs.
social
A consumer's buying decisions are affected in part by the people around him or her. Such people and the forces they exert on an individual buyer are called
social influences
An organization that decides to buy all of a certain part from the same company is using
sole sourcing
Sometimes business partnerships are formed between traditional rivals competing for market share in the same product class. These partnerships are known as
strategic alliances
Business customers today turn first to _____ to search for information and find sources for their product needs.
the Internet
Technology is
the application of knowledge and tools to solve problems and perform tasks more efficiently.
The group of people within a business who are involved in making business buying decisions is referred to as
the buying center
Franchising offers all the following benefits for franchisers except
the franchisee's revenue stream is fairly consistent because franchisers pay fixed fees and royalties
A company not involved in manufacturing that brings together buyers and sellers in different countries is usually referred to as a
trading compan
Purchasers who purchase products for personal or household use and not for business purposes are called the
ultimate consumers
During the search for products and evaluation of possible suppliers stage of the business buying decision process, marketers sometimes use ____ analysis to examine the quality, design, materials, and possibly item reduction in order to acquire the product in the most cost-effective way.
value
The equation a buyer applies to assess a product's value is
value = customer benefits - customer costs
The sales forecast differs from the company sales potential in that it focuses on
what actual sales will be at a certain level of company marketing effort
A trading company acts like a ______, taking on much of the responsibility of finding markets while facilitating all marketing aspects of a transaction.
wholesaler
The buildup approach measure of sales potential
starts with forecasts about demand for a specific product within a relatively small area.
Communicating with the marketing unit, motivating marketing personnel, and coordinating marketing activities are part of the _____________ component of strategic planning.
Marketing implementation
To find a target market, a firm can use one of these targeting strategies.
Undifferentiated strategy, the concentrated strategy, and the differentiated strategy
Which of the following is an example of a behavioristic segmentation variable?
Usage rate
From the company's perspective, there is a trade-off between increasing _______ for the customer and maximizing ________ from the transaction.
Value; Profit
Which one of the following statements by a company president best reflects the marketing concept?
We have organized our business to make certain that customers get what they want
Performance standards are derived from _____________ that were set while developing the marketing strategy.
Marketing Objectives
The process of putting marketing straregies into action is called
Marketing Implementation
Which of the following is essentially an uncomntrollable factor in developing an marketing mix
Government Regulations
Marketing planning and ______ are closely linked in successful companies
Implementation
Which of the following is a characteristic of a marketing obective?
It is consistent with both business-unit and corporate strategy
Which of the following is the least flexible survey method?
Mail surveys
When the right combination of circumstances occurs at the right time to allow an organization to take action toward a target market, the firm is faced with a
Market Opportunity
A market orientation is an organization-wide effort that includes all of the following activities except
focusing on the marketing department only
Marketing activities help to produce __________ without which a business cannot survive. The success of businesses tends to lead to job creation, a higher standard of living, and even money to go toward social causes. Therefore, marketing contributes to the ___________ of society.
profits; Well-being
In reporting marketing research findings, the researcher should
provide explanations in language that those who use the report to make decisions can understand.
According to marketing concept, an organization should try to
provide products that satisfy customers' needs and allow the organization to achieve its goals
Characteristics of individuals, groups, or organizations that are used for dividing a total market into smaller homogeneous groups are called ____ variables.
segmentation
Consumerism is
the efforts of independent individuals, groups, and organizations to protect the rights of consumers.
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
Marketing research is best defined as
the systematic design, collection, interpretation, and reporting of information to help marketers solve specific marketing problems or take advantage of market opportunities.