MARK 201 Exam 1 Study Guide - Multiple Choice Questions

The marketspace is defined as ______. - an electronic exchange environment with computer technologies and digitized offerings. - an Internet-based network used within the boundaries of an organization - the alternative firms that could provide a product to satisfy a specific market's needs - electronic communication used in the inventory, exchange, advertisement, distribution, or payment of products

- an electronic exchange environment with computer technologies and digitized offerings.

Select three components of the competitive environment. technology advancements bargaining power of buyers and suppliers existing rivalries substitution possibilities

- bargaining power of buyers and suppliers - existing rivalries - substitution possibilities

Match each marketing era to the correct description of the marketing focus during that period : 1. Production era 2. Sales era 3. Marketing concept era 4. Customer-relationship era a. Buyers accept virtually any goods because of the relative scarcity of goods. b. Manufacturing can produce a surplus of goods and must find new buyers. c. Organizations focus on identifying customer needs and using this to create value. d. Firms seek continuously to satisfy the high expectations of those they serve.

1. (A)Production era : Buyers accept virtually any goods because of the relative scarcity of goods. 2. (B)Sales era : Manufacturing can produce a surplus of goods and must find new buyers. 3. (C)Marketing concept era : Organizations focus on identifying customer needs and using this to create value. 4. (D)Customer-relationship era : Firms seek continuously to satisfy the high expectations of those they serve.

Select the two items that are part of the definition of a product. a. A product may be a good, a service, or an idea. b. A product can only be exchanged for money. c. A product must be something tangible. d. A product's attributes satisfy consumer's needs.

1. (a) A product may be a good, a service, or an idea. 2. (d) product's attributes satisfy consumer's needs.

Which two items are part of the implementation phase of the strategic marketing process? a. comparing results with plans b. designing the marketing organization c. developing a SWOT analysis d. obtaining resources

1. B (designing the marketing organization) 2. D (obtaining resources)

Which two of the following are the broad categories that should be considered when analyzing the economic component in an environmental scan? a. Exchange rates b. Consumer income c. Macroeconomic conditions d. Political environment

1. Consumer income 2. Macroeconomic conditions

Place the following levels of organization in order. (Note: the highest level should be the top item on your list and the lowest level should be on the bottom.) Corporate Level Functional level Strategic business unit level

1. Corporate Level 2. Strategic business unit level 3. Functional level

What are the three key elements of a visionary organization? a. set a direction b. formulate strategies c. motivate employees d. evaluate performance e. specify a foundation

1. set a direction 2. formulate strategies 3. specify a foundation

A marketing plan is a road map for marketing actions for ______. a. a future time period b. executive personnel in all disciplines c. the redirection of corporate strategy d. a maximization of unit sales

A FUTURE TIME PERIOD

Match the components of competition to the correct example Barriers to Entry Power of buyers Power of suppliers Existing rivalries - Potential competitors find it difficult to recreate the wide distribution that Western Union has for its money transfer services - It is easy and inexpensive for customers to switch to a different grocery store - There is only a single producer for a vital component in a cell phone - Airlines offer discounts for making reservations early or charge penalties for canceling reservations

Barriers to Entry - Potential competitors find it difficult to recreate the wide distribution that Western Union has for its money transfer services. Power of buyers - It is easy and inexpensive for customers to switch to a different grocery store. Power of suppliers - There is only a single producer for a vital component in a cell phone. Existing rivalries - Airlines offer discounts for making reservations early or charge penalties for canceling reservations.

To do a thorough environmental scan, a marketer must consider both current and potential ______ in designing a marketing strategy. products promotions competitors tactics

COMPETITORS

______ is a movement to increase the influence, power, and rights of consumers in dealing with institutions. The Consumer Product Safety Commission The Consumer Protocol Consumer behavior Consumerism

CONSUMERISM

Identifying which three items allow an organization to determine where it is at the present time, as it begins to set a strategic direction? - Competencies - Culture - Competitors - Customers

Competencies Competitors Customers

Which component of an environmental scan pertains to the income, expenditures, and resources affecting the cost of running a business or household? competitive industry finance economy

ECONOMY

True or false: The purpose of a marketing strategy is to maximize short-term profits

FALSE Reason: A marketing strategy is an organization's long-term course of action designed to deliver a unique customer experience while achieving its goals.

What three questions would a visionary organization seek to answer? a. How long will it take? b. Why should it do it? c. How will it do it? d. What will it do? e. Why does it exist?

How will it do it? What will it do? Why does it exist?

Obtaining resources and defining tasks and deadlines are part of which phase in the strategic marketing process? - differentiation - implementation - evaluation - planning

IMPLEMENTATION Reason: The planning phase is typically complete before resources are sought and tasks are defined, both done during implementation.

Culture incorporates the set of values, ideas, and attitudes that are ______ and shared among the members of a group. written learned in-born flexible

LEARNED

The activity for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large is called ...

MARKETING

A ______ is a visual display of the essential information related to achieving a marketing objective. marketing metric marketing dashboard marketing mix positioning statement

Marketing Dashboard

The Sherman Act focuses on which component of the marketing mix? promotion place price product

PRICE

Match the following forms of competition with the correct definitions. Pure competition : Monopolistic competition : Oligopoly : Monopoly : - Many sellers offering similar products in a marketplace in which they have little control of marketing elements. - Many sellers offering substitutable products within a price range. - A few companies control the majority of industry sales. - A single seller of a product exists.

Pure competition- Many sellers offering similar products in a marketplace in which they have little control of marketing elements. Monopolistic competition- Many sellers offering substitutable products within a price range. Oligopoly- A few companies control the majority of industry sales. Monopoly- A single seller of a product exists.

Match the form of competition with its correct example : Pure competition Monopolistic competition Oligopoly Monopoly Wheat, grains, and rice Coffee, tea, soft drinks Cell phone carriers Water, electricity, natural gas

Pure competition- Wheat, grains, and rice Monopolistic competition- Coffee, tea, soft drinks Oligopoly- Cell phone carriers Monopoly- Water, electricity, natural gas

An environmental scan will include __________ forces impacting a business by way of state and federal laws that may restrict its activities. (one word)

REGULATORY

The majority of the competitive landscape in this country is made up of ______. small businesses U.S. multinational corporations nonprofit organizations foreign-owned firms

SMALL BUSINESSES

Many organizations and their consumers are embracing a growing interest in diversity, equity, and inclusion in the marketplace. This trend relates to which environmental force? regulatory technological social economic

SOCIAL

Select those items that are among the five sources of environmental trends? (Select all that apply) Social Distribution Labor Regulatory Economic

Social Regulatory Economic

Match each type of environmental force with a common consideration associated with it : Social Economic Technological Competitive Regulatory cultural changes consumer income electronic business technologies forms of competition laws affecting marketing mix actions

Social --> cultural changes Economic --> consumer income Technological --> electronic business technologies Competitive --> forms of competition Regulatory --> laws affecting marketing mix actions

Which environmental force is most likely to result in replacement of existing products or companies? technology competitive economic regulatory

TECHNOLOGY

Business portfolio analysis and diversification analysis help an organization to answer what important strategic question? - Where can we find new products? - Where do competitors operate? - What product characteristics indicate success? - Where do we want to go for growth?

Where do we want to go for growth? Reason : Business portfolio analysis is used to set a GROWTH strategy for the future by assessing current products

Select the four principles that underlie the strategic marketing process. a. Customers are different. b. Competitors are different. c. Organizations are different. d. Customers change. e. Competitors change and react. f. Organizational resources are limited.

a. Customers are different. d. Customers change. e. Competitors change and react. f. Organizational resources are limited.

How does having knowledge of marketing and its many applications help an individual? (Select all that apply) a. It can help the individual in career planning. b. It can help the individual be a more informed citizen. c. It can help the individual understand world events. d. It can make the individual a better consumer.

a. It can help the individual in career planning. b. It can help the individual be a more informed citizen. d. It can make the individual a better consumer.

Which of the following concepts is of the least critical importance to an organization's marketing program? a. Organizational structure b. Customer relationships c. Customer value d. Relationship marketing

a. Organizational structure

Which statement about regulation as an environmental force is true? a. Regulation often places restrictions on the activities of businesses. b. Regulation has failed to protect consumers' safety. c. It typically results in eliminating competition. d. Regulation exists to protect consumers, but not companies.

a. Regulation often places restrictions on the activities of businesses.

Which statement supports the idea that good marketing is not an easy task? a. Thousands of new products fail in the marketplace each year. b. The number of new products that enter the marketplace each year is relatively small. c. The promotion of new products is being handled by the developers of the product and not the marketing team.

a. Thousands of new products fail in the marketplace each year.

When marketers shift their focus from single transactions to creating ongoing relationships through high-engagement, experiential, customer journeys it is an example of a ______. a. competitive force b. business force c. outsourcing force d. technological force

a. competitive force

The primary interest of marketers when focusing on a target market is ______. a. concentrating on the needs of some potential consumer b. selling the product to every customer c. utilizing every promotional tool available to promote a product d. focusing on wealthy buyers

a. concentrating on the needs of some potential consumer

What social force incorporates the set of values, ideas, and attitudes that are learned and shared among the members of a group? a. culture b. psychographics c. value consciousness d. perception

a. culture

The process of identifying prospective buyers, understanding them intimately, and developing favorable long-term favorable perceptions of the organization is called ______. a. customer relationship management b. the societal marketing concept c. marketing utility d. a marketing program

a. customer relationship management

Listening to your customers in order to develop a better product is an example of ______. a. effective marketing research b. market capitalization c. effective distribution d. promotion and public relations

a. effective marketing research

Diversification analysis and business portfolio analysis help managers develop ______ strategies and make resource allocation decisions. a. growth b. efficiency c. innovation d. measurement

a. growth

Organizational purpose serves as the basis for an organization's ______. (Select all that apply) a. mission b. hierarchy c. core values d. culture

a. mission c. core values d. culture

Inflation may harm marketers when ______. a. prices rise faster than consumer incomes b. the cost of producing goods plummets c. prices decrease to the benefit of their competitors d. the low prices are only available to consumers for a short time

a. prices rise faster than consumer incomes

Marketing typically impacts which of the following groups in society? (Select all that apply) a. shareholders b. suppliers c. regulatory agencies d. customers

a. shareholders b. suppliers d. customers

(Select all that apply) According to the AMA definition of marketing, who benefits from marketing activities? a. society at large b. government regulators c. customers d. partners

a. society at large (Reason) : Society can benefit from the outcomes of marketing, and is included in the definition of marketing, along with those that benefit more directly c. customers d. partners

What are the three levels of strategy in organizations? a. strategic business unit level b. operational level c. corporate level d. staff level e. functional level

a. strategic business unit level c. corporate level e. functional level

Select the items that characterize organizations. (Select all that apply) a. strives to create value for its customers b. main goal is to earn a profit c. develops goods, services, or ideas d. consists of people who share a common mission

a. strives to create value for its customers c. develops goods, services, or ideas d. consists of people who share a common mission

A ______ market is one or more specific groups of potential consumers toward which an organization directs its marketing program. a. target b. promotional c. test d. reliable

a. target

Select the three steps that make up the planning phase of the strategic marketing process. a. the marketing program b. activity implementation c. situation analysis d. market-product focus e. evaluation

a. the marketing program c. situation analysis d. market-product focus

What is the most fundamental goal of marketing? a. to satisfy consumer needs and wants b. to achieve sustainability c. to advertise d. to develop innovative products

a. to satisfy consumer needs and wants

The societal marketing concept combines which two of the following principles? a. Marketers should limit distribution of their products to societies whose values mirror their own. b. Organizations should satisfy the needs of consumers. c. Marketers must maintain focus on maximizing profits for shareholders. d. Organizations should serve customers in a way that provides for society's well-being.

b. Organizations should satisfy the needs of consumers. d. Organizations should serve customers in a way that provides for society's well-being.

Select the four factors required for marketing to occur. a. A universal form of payment b. Something for the parties to exchange c. Two or more parties with unsatisfied needs d. A desire for the parties to have their needs satisfied e. A desire to turn a need into a want f. A way for the parties to communicate

b. Something for the parties to exchange c. Two or more parties with unsatisfied needs d. A desire for the parties to have their needs satisfied f. A way for the parties to communicate

Studying marketing should help you to ______. a. identify all potential marketing failures before they occur b. be a more informed citizen when interacting with businesses c. understand the principles of financial leverage d. care more deeply about environmental causes

b. be a more informed citizen when interacting with businesses

The Sherman Antitrust Act and the Clayton Act were passed to encourage ______. a. economic stability b. competition c. consumer safety d. intellectual property

b. competition

Which environmental force refers to the alternative firms that could provide a product to satisfy a specific market's needs? a. rivalry b. competition c. regulatory d. consumerism

b. competition

Technology is causing a change in the customer assessment of value because its cost is plummeting, resulting in ______. a. less free hardware or software offered to consumers, despite contracts b. consumers focusing instead on quality, service, and relationships with the retailer c. consumers feeling cheated when new versions of technology products are available too soon d. recessionary cycles becoming more frequent and dramatic

b. consumers focusing instead on quality, service, and relationships with the retailer

The unique combination of benefits received by targeted buyers at a specific price is known as ______. a. the service agreement b. customer value c. the marketing relationship d. product satisfaction

b. customer value

Concepts like value and relationship marketing are important in designing an organization's marketing program because such a program is what connects the organization to its ______. a. investors b. customers c. shareholders d. preferred suppliers and distributors

b. customers

A marketing program is a plan that ______. a. defines the unique features and benefits of all of an organization's product offerings b. integrates the marketing mix to provide a good, service, or idea to prospective buyers c. identifies one or more specific groups of potential consumers toward which an organization directs its efforts d. links the organization to its individual customers and other stakeholders for their mutual long-term benefit

b. integrates the marketing mix to provide a good, service, or idea to prospective buyers

Environmental scanning is necessary for an organization to ______. a. advance its technological research and development b. interpret trends that may be a source of opportunity c. realize its social responsibility goals d. identify the needs of its "green" suppliers and customers

b. interpret trends that may be a source of opportunity

A marketing program integrates the ______ to provide a good, service, or idea to prospective buyers. a. target market b. marketing mix c. environmental forces d. customer value proposition

b. marketing mix

A(n) ______ is a legal entity that consists of people who share a common mission. a. institution b. organization c. team d. industry

b. organization

The business orientations typical of organizations have evolved over time; in the early years of the United States, a ______ orientation that focused on creation of any type of good was common, while today firms often have a ______ orientation in which they seek to satisfy the high expectations of customers. a. production; sales b. production; market c. sales; concept d. sales; production

b. production; market

Goods, services, and ideas can all be considered ______ in the right circumstances, when consumers exchange something of value for them to satisfy their needs. a. tangible b. products c. intangible d. commodities

b. products

Firms develop products and services with the understanding that their ultimate goal is to ______ their customers' needs. a. create b. satisfy c. accept d. identify

b. satisfy

Which environmental force refers to inventions or innovations from applied science or engineering research? a. regulatory b. technology c. economic d. competitive

b. technology

What are the newest forms of technological changes that are occurring now? (Select all that apply) a. RFID tagging b. blockchain c. artificial intelligence d. wearable technology

blockchain, artificial intelligence, wearable technology

(Choose two)What are the goals for a firm that implements an effective CRM(customer-relationship marketing) program? a. The firm's marketing department will no longer be needed. b. The firm will be able to eliminate its competition. c. Customers will become brand advocates for the firm. d. Customers will willingly choose that firm's products.

c. Customers will become brand advocates for the firm. d. Customers will willingly choose that firm's products.

Which of the following statements about marketing is TRUE? a. Because marketing is complicated most firms avoid using it. b. Marketing is generally successful as long as you fund it, and most new products succeed. c. Marketing isn't always easy; thousands of new products fail each year. d. Marketing is fairly foolproof if you know and apply traditional formulas.

c. Marketing isn't always easy; thousands of new products fail each year.

A marketing ______ is a road map for the marketing actions of an organization for a specific future time period. a. objective b. mix c. plan d. program

c. PLAN

Using technology for the development of new products creates ______ for customers. a. superior service b. competition c. value d. inflation

c. VALUE

The planning gap is an example of ______. a. skipping the planning process and proceeding directly to implementation b. a reason that the planning process cannot be completed c. a comparison of projected sales for current plans and a new sales goal d. a resource that has not fully been exploited

c. a comparison of projected sales for current plans and a new sales goal

A strategy can be defined as ______. a. a summary of a firm's competition that helps it position itself in the marketplace b. an outline of a firm's competitive advantage c. an organization's long-term course of action allowing it to achieve its goals d. a day-to-day blueprint for an organization

c. an organization's long-term course of action allowing it to achieve its goals

Customer value is the unique combination of benefits received by targeted buyers a. on a single buying occasion. b. as an average of several or ongoing buying occasions. c. at a specific price. d. regardless of price.

c. at a specific price

An example of ______, is the elimination of passwords based on facial or fingerprint recognition. a. wearable technology b. blockchain c. authentication technology d. automation

c. authentication technology

The clear, broad, underlying industry category or market sector of an organization's offering defines its ______. a. objectives b. shareholders c. business d. culture

c. business

The demographic characteristics of a population and its ______ comprise the social forces in the environment. a. political system b. education system c. culture d. legal system

c. culture

A marketing ______ allows a manager to glance at a graph or table and make an informed decision whether to take action regarding organizational objectives. a. plan b. strategy c. dashboard d. segment

c. dashboard Reason: A dashboard allows for the quick use of a metric by displaying visual information

When marketers ______, they take into account the fact that customers are different, customers change, competitors change and react, and organizational resources are limited. a. conduct a SWOT analysis b. develop a competitive advantage c. enter into the strategic marketing process d. create a firm's mission statement

c. enter into the strategic marketing process

The ______ is the difference between the projection of the path to reach a new sales revenue goal and the projection of the path of a plan already in place. a. marketing plan b. strategic alignment c. planning gap d. deviation effect

c. planning gap

Environmental forces that shape the nature of an organization's actions include social, economic, technological, competitive, and _____ forces. a. ethical b. relationship c. regulatory d. managerial

c. regulatory

Demographic characteristics and the culture of a population are the basis for ______ forces. a. economic b. competitive c. social d. regulatory

c. social

Planning, implementation, and evaluation are considered parts of the ______. a. marketing mix b. SWOT analysis c. strategic marketing process d. portfolio analysis

c. strategic marketing process

An information- and communication-based electronic exchange environment occupied by computer technologies and digitized offerings is called ______. a. an intranet b. an extranet c. the marketspace d. electronic commerce

c. the marketspace

Identifying one's competencies, customers, and competitors helps an organization answer what important question in setting a strategic direction? a. What is our biggest business opportunity? b. Where do we want to go? c. How should we change? d. Where are we now?

d. Where are we now?

Which of the following factors is not required for marketing to occur? a. two or more parties with unsatisfied needs b. a way for the parties to communicate c. something to exchange d. a retail location e. the desire and ability to satisfy these needs

d. a retail location

An example of ______, is the elimination of passwords based on facial or fingerprint recognition. a. wearable technology b. automation c. blockchain d. authentication technology

d. authentication technology

Gross, disposable, and discretionary are three components related to ______. a. gross domestic product b. inflation c. consumer spending d. consumer income

d. consumer income

Even when a product is well-suited for its intended targets, it won't be sold if ______. a. the economy is ignored b. inflation has dropped c. discretionary income has increased d. consumers don't have the necessary income

d. consumers don't have the necessary income

In a(n) ______ economy, the cost to produce and buy products escalates as prices increase. a. stagnant b. booming c. reactionary d. inflationary

d. inflationary

To help define its business, an organization can start by ______. a. determining what types of objectives are challenging yet attainable b. determining how employees share and learn information c. expressing the fundamental and enduring principles that guide its conduct over time d. looking at the set of organizations that sell similar offerings

d. looking at the set of organizations that sell similar offerings

To better understand the needs of prospective customers, marketers use ______. a. corporate entrepreneurship b. customer loyalty c. executive leadership d. marketing research

d. marketing research

A clear expression of a firm's ______ will detail why an organization exists, what problems it wishes to solve, and who it wants to be to every person it touches through its work. a. organizational culture b. core values c. target markets d. organizational purpose

d. organizational purpose

In the United States, the majority of new jobs are generated by ______ businesses. a. nonprofit b. large c. foreign d. small

d. small

The view that an organization should discover and satisfy the needs of its consumers in a way that also provides for society's well-being is called ______. a. social entrepreneurship b. altruism c. socialism d. the societal marketing concept

d. the societal marketing concept

Ethnicity and age are ________ characteristics.

demographic

The process of continually acquiring information on events occurring outside the organization to identify and interpret potential trends is called ______. - environmental scanning - multicultural marketing - demographic shifts - movement analysis

environmental scanning

Select the characteristics that are categorized as demographics. (Select all that apply) ethnicity age lifestyle geography income

ethnicity age income

Step 1 of the planning phase in the strategic marketing process involves ______. setting goals evaluating performance creating a mission statement performing a situation analysis using SWOT

performing a situation analysis using SWOT SECOND step is "setting goals" bc FIRST you must identify the current context for marketing decisions.

An organization uses ______ to allocate its marketing mix resources to reach its target markets. market segmentation the strategic marketing process a business portfolio analysis a marketing dashboard

the strategic marketing process