Marketing Ch.6, Marketing Chapter 8, MKTG test 2 ch 6, MKTG ch 3, Marketing 351 Chapter 1, Marketing, MKTG Chapter 1, MKTG Chapter 5, MKT 230 - chp. 5

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Marketing Mix

4 activities- product, distribution (placement), promotion, pricing (4 P's)

Online sales account for about ____ percent of all retail sales in the U.S.

Marketing control process

1. Establishment of performance standards 2. Evaluation of actual performance relative to establish standards 3. corrective action if necessary

What is customer relationship management?

CPM is using info about customers to create marketing strategies that develop desirable customer relationships

Characteristics of individuals, groups, or organizations that are used for dividing a total market into smaller homogeneous groups are called ___________ variables. a) marketing b) classification c) segmentation d) stratification e) dividing

Promotion=?

Communication

Company sales forecasts are least likely to be based on a) executive judgment. b) customer surveys or sales force surveys. c) time series analysis. d) market tests. e) single-variable segmentation.

What are we concerned with?

Competitve forces

FORMULA WE NEED TO KNOW

Customer value = customer benefits - customer costs

Marketing focus?

Customers

Value

Customers subjective assessments of benefits relative to the cost in determining the worth of a product

A disadvantage of reciprocity is that it can lead to a) a price war. b) higher promotional costs. c) more competitive firms entering the industry. d) less-than-optimal purchases for the buyer. e) longer periods of negotiation.

A practice in which two businesses agree to buy from each other is a) a new task purchase. b) a straight rebuy. c) a modified rebuy. d) reciprocity. e) a straight purchase.

A survey question that requires a yes or no answer is called a a) qualifier. b) multiple-choice question. c) 50-50 question. d) dichotomous question. e) bimodal question.

Although telephone surveys can be conducted very quickly, a major limitation is a) the ability to gain rapport with respondents. b) the difficulty in asking probing questions. c) that few companies prefer this survey method. d) that only a small portion of the population likes to participate in telephone surveys. e) the expense compared to in-home interviews.

Analysis of business input-output data by the federal government allows the government to have a better understanding of the a) cash flows that exist among industries. b) raw materials and labor required to produce a given product. c) amount of reinvestment that different industries use. d) types of industries that purchase particular products. e) growth projections for a given industry.

Baskin Robbins is conducting research on possible new ice cream flavors and products. It is selecting at random 100 males and 100 females in order to collect data. This is an example of ______ sampling. a) nonprobability b) random c) quota d) stratified e) selective

Besides administering the questionnaire, Colin observed people who went kayaking and canoeing on the Chatsworth River, making notes about their appearance and behavior. The type of data he collected are ___________ data. a) indirect b) mechanical c) secondary d) primary e) direct

Cameras, counting machines, and scanners are used most often in a) surveys. b) secondary data gathering. c) field settings. d) observation. e) experimentation.

Christy Bridgman is considering the purchase of a new fax machine for her real estate office. She is considering a machine that doesn't have as many functions but is available at a considerably lower price than her current machine. She is engaged in ___________ analysis. a) vendor b) downsizing c) strategic d) value e) profit

Coca-Cola is aiming its Diet Coke Plus (with vitamins and minerals) at health-conscious customers. These health-conscious customers represent Coke's A) audience. B) sales alternative. C) business group. D) target market. E) focus group.

Computer software that aids marketing managers in decision making by helping them anticipate the effect of certain decisions is known as a a) database. b) marketing research system. c) marketing information system. d) marketing decision support system. e) single-source system.

Corporate executives often prefer marketing research findings to be put into a report a) full of statistical analysis with details on methods employed by the researchers. b) examining the ethical implications of implementing results from the research report. c) that exposes no deficiencies or limitations of the research process. d) that is clear, short, and simply expressed. e) expressing the views and beliefs of top management about the research problem.

Data that are observed or collected directly from respondents are called a) direct samples. b) secondary data. c) stratified data. d) primary data. e) firsthand information.

Given the type of business market in which Precision Brake is currently operating, which group would it be least likely to sell to? a) Producers b) Governments c) Retailers d) Consumers e) Institutions

If Procter & Gamble, the maker of Dawn dishwashing liquid, wants to know what percentage of customers examine product labels before making a product selection in the grocery store, it can best gain this information through a) focus groups. b) mail surveys. c) personal interviews. d) observation. e) mall intercepts.

If Weight Watchers is interested in collecting information about Americans' perceptions of dieting programs, and the company believes that significant regional differences may exist, the best type of sampling would be a) random. b) quota. c) population. d) stratified. e) nonquota.

In business markets, individuals or groups purchase products for one of three purposes. These purposes are a) resale, wholesale, and direct use. b) wholesale, direct use, and use in producing other products. c) resale, wholesale, and use in producing other products. d) resale, direct use in producing other products, and use in general daily operations. e) use in general daily operations, wholesale, and resale.

In which of the following sampling designs do all members of a population have an equal chance of being selected? a) Stratified b) Nonprobability c) Quota d) Random e) Judgment

Individual influencing factors refer to a) relationships among those in the firm's buying center. b) uncontrollable environmental forces. c) the power an individual controls in the buying center. d) personal characteristics of individuals in the buying center. e) activities of suppliers.

A marketing manager decides what combination of variables is needed to satisfy customers' needs for a general type of product. What are the essential variables that the marketing manager combines? A) Product, price, distribution, and promotion variables B) Marketing environment variables C) Product and promotion variables D) Product, price, and customer variables

A(n) ___________ is a collection of information arranged for easy access and retrieval. a) database b) marketing information system c) marketing decision support system d) online information service e) e-mail system

According to the text, ___________ interpretation focuses on what is typical or what deviates from the average. a) statistical b) descriptive c) exploratory d) secondary e) primary

Administrative assistants that control the flow of information to other people in the organization often play the _____ role in the buying center. a) gatekeeper b) user c) influencer d) buyer e) controller

All of the following describe the demand for business products except a) elastic. b) derived. c) joint. d) inelastic. e) fluctuating.

An item on the University Book Store's survey asks respondents to tell the store, in their own words, what they like least about textbook shopping. This item would be an example of a(n) ___________ question. a) open-ended b) dichotomous c) forced-sum-choice d) multiple-choice e) limited-choice

An offshoot of mail surveys, ______ have shortcomings because the people who participate in them generally have higher incomes and education levels than the general population. a) purchase diaries b) telephone surveys c) online surveys d) focus-group interviews e) immediate feedback forms

An overall plan for obtaining the information needed to address a research problem or issue is called the a) research design. b) problem recognition. c) hypothesis. d) data collection method. e) sampling procedure.

Kashi's testing of the Crunchy Wheat promotion is an example of a) the collection of secondary data. b) information feedback. c) an exploratory study. d) a descriptive study. e) defining and locating problems.

Marketing researchers typically favor ___________ because they are extremely flexible. a) mail surveys b) direct observation c) experiments d) personal interviews e) telephone surveys

Mike's Roadside Market buys produce from area farmers, marks the merchandise at a price that includes some profit, and then sells the fruit and vegetables to the people in and around Centerville. Mike's would be classified as part of a ___________ market. a) consumer b) producer c) government d) reseller e) wholesaler

Most businesses try to control the level of quality in the parts they buy from suppliers. Most firms develop standards for _____ in order to achieve their quality goals. a) how many different suppliers they use b) how many parts can fail c) controlling when shipments will arrive d) the percentage of defects allowed e) how long the parts should last

Pi Delta Mu sorority purchases food in bulk to feed its members living in the house. This means it is part of a(n) ___________ market. a) producer b) consumer c) reseller d) institutional e) government

Pointing out any deficiencies and the possible reasons for them should be done in the _______ step of the marketing research process. a) interpreting research findings b) collecting data c) defining the issue or problem d) reporting research findings e) designing the research project

Barry Gluckman of WP International, a major marketer of word-processing software, calls the secretary of Renee Dorchette, director of purchasing for MMK, Inc. He sets up an appointment to discuss an upcoming purchase of software. The secretary plays the role of ___________ in this purchase decision. a) gatekeeper b) buyer c) decider d) buying center captain e) order giver

Research designed to verify insights through an objective procedure to help marketers to choose between several alternatives is called a) primary. b) secondary. c) exploratory. d) conclusive. e) hypothetical.

Safeway Supermarkets recently placed an order with the Kahn Corporation. Safeway has ordered these same products before under the same terms of sale. What type of purchase does this situation represent? a) New-task b) Repetitive c) Institutional d) Straight rebuy e) Modified rebuy

Secondary data cannot be obtained from a) trade journals. b) the government. c) international sources. d) surveys. e) computerized literature retrieval databases.

Spam and privacy are both issues of concern related to a) personal interview surveys. b) telephone surveys. c) shopping mall intercept interviews. d) e-mail surveys. e) online experimentation.

Subscription services from firms such as ACNielsen provide marketing researchers with a good source of ___________ data. a) census b) statistical c) internal secondary d) external secondary e) primary

The Gap wants to target an older crowd in order to increase its market share so it surveys men and women from ages 40 to 60 about how often and for what type of activities they wear casual clothing. This is an example of a) reliability. b) exploratory research. c) probability sampling. d) descriptive research. e) experimental research.

Before administering the questionnaire, Colin discovered through talking to other sports rental businesses that, although retired males made up a small percentage of the area's population, they often rented kayaks and canoes. In light of this, Colin decided to include a minimum of 25 percent retired males in his sample. The final choice of respondents was left up to the interviewers. This sampling method is known as ___________ sampling. a) quota b) stratified c) random d) representative e) area

The definition of marketing implies that ______ should receive benefits from exchange relationships. A) only customers B) only businesses C) company management D) both customers and businesses E) only the most important customers

Emily Dawson and seven other people were paid to get together and discuss a new product idea proposed by Johnson & Johnson. Researchers observed the interaction of the group. This method is called a a) focus-group interview. b) group survey. c) personal interview survey. d) sampling team. e) mail survey.

In reporting marketing research findings, the researcher should a) provide explanations in language that those who use the report to make decisions can understand. b) write the report in an extremely technical and statistical style. c) fit the problem to a favored statistical technique. d) not acknowledge any limitations associated with the study. e) give management the answers it wants.

Information from the U.S. Census Bureau is commonly used as ____ by a variety of agencies and organizations. a) external secondary data b) sampling systems c) primary data d) internal secondary data e) hypotheses

Information provided by a single firm on household demographics, consumer purchases, television viewing behavior, and responses to promotions is called ___________ data. a) single-source b) census c) consumer demographic d) multi-point e) single-point

Johnson's Industrial Pest Control Service wants to meet its customers' expectations with regard to the quality of service it provides. How should Johnson's identify these expectations? a) Conduct market research. b) Use management judgment. c) Trace existing service levels. d) Stress quality service with employees. e) Train employees better.

The final step in the marketing research process is a) interpreting research findings. b) making sure the marketing research was conducted in an ethical manner. c) putting the results into a written document that is technical and written in formal language. d) reporting the research findings. e) deciding what the next research project should investigate.

The government decides to purchase a new fleet of fighter jets for the U.S. Air Force. What type of buying procedure is the government most likely to use? a) The government will request bids from all companies on its qualified bidder list. b) It will contact whatever company made the last jets and have them develop the new ones. c) Ads will be placed in the top five circulated U.S. newspapers for a company to produce the jets. d) The government will select a few firms and enter into negotiations with them until the contract is awarded. e) The contract will go to the first company that submits a reasonable bid for the desired jets.

Kelsey thinks she will be able to get the highest quality of responses concerning the product features most sought by consumers through personal interviews. She decides to conduct her interviews at _____ because this is the most common location for personal interviews. a) a shopping mall b) the respondent's home c) the interviewer's home d) the company's offices e) a city park

Many suppliers and their customers invest time and resources to build and maintain mutually beneficial relationships which are often called a) partnerships. b) co-ops. c) monopolies. d) reciprocity. e) alliances.

Marketing research is best defined as a) the systematic design, collection, interpretation, and reporting of information to help marketers solve specific marketing problems or take advantage of market opportunities. b) a framework for the day-to-day management and structuring of information gathered by marketers. c) a continuous gathering of data for an organization to make marketing decisions d) the collecting of data from secondary sources and internal documents. e) an intuitive process for making decisions based on personal knowledge and experience.

Marketing researchers at Essex Co. repeated a particular experiment several times and discovered that the results produced each time were nearly identical. This phenomenon would indicate that the results were a) reliable. b) valid. c) unusable. d) predictable. e) compatible.

Marriott wants to collect data about employee satisfaction within its organization. It decides to survey a sample of 50 employees by having a computer program automatically pick which employees will be in the sample. If every employee has an equal chance of being selected, Marriott is using a) random sampling. b) sampling populations. c) stratified sampling. d) nonprobability sampling. e) quota sampling.

Motorola buys silicone which is used in its chip-making process. Motorola produces microchips for use within a wide variety of products for other firms, such as Ford, GM and Samsung. Motorola is a buyer in a _____ market. a) producer b) government c) reseller d) construction e) institutional

Nelson Marketing Research is concerned about using surveys to conduct a marketing research project because a) response rates are declining. b) primary data are so much cheaper and easier to gather. c) survey data collection is highly inaccurate. d) survey data do not provide in-depth responses. e) the survey method has been replaced by the Internet.

Peter Demos, director of marketing at Holcomb, Inc., calls in Andrea Carter, the firm's marketing research director. Peter wants a study done to assess the company's image relative to a new competitor, Levitt Labs. He has a flexible time schedule, has very little money to devote to the research, and feels that a relatively low response rate will not be a major problem. Andrea will probably recommend using a ___________ survey. a) mail b) telephone c) random d) personal interview e) population

Product specifications are a) physical characteristics and level of quality. b) types of services that are provided with the product. c) financing available for the product. d) types of competitors offering similar products. e) product return policies.

Retailers like Target and Kmart are considered to be members of which business market? a) Reseller b) Customer c) Producer d) Institutional e) Services

Snappy Tools, Inc., purchases hammers, bolts, and other hardware items from a variety of manufacturers and sells them to hardware stores at a price that includes a profit for Snappy Tools, Inc. The company would be part of what type of business market? a) Reseller b) Producer c) Consumer d) Government e) Supply

Students from marketing research class collect data from three areas on campus. When they analyze their data the responses are very similar. The students can state they achieved which of the following? a) reliability b) causal relationships c) validity d) sampling e) measurability

SunnyD is aimed at mothers with children under age twelve. These mothers represent SunnyD's A) target market. B) consumer advocates. C) marketing strategy. D) marketing mix. E) marketing tactic.

The primary value that a marketer expects to receive from a customer in an exchange relationship is A) the price charged for the product. B) customer satisfaction. C) references to other potential customers. D) quality merchandise that meets expectations. E) few returns of the merchandise purchased.

The stages of the business buying decision process, in order, are a) recognizing the problem, establishing product specifications, searching for products and evaluating possible suppliers, selecting suppliers and products, and evaluating performance. b) recognizing the problem, searching for products and evaluating possible suppliers, selecting suppliers and products, establishing product specifications, and evaluating performance. c) recognizing the problem, selecting suppliers and products, evaluating performance, establishing product specifications, and searching for substitute products. d) establishing product specifications, recognizing the problem, searching for products, evaluating possible products and suppliers, selecting suppliers and products, and evaluating performance. e) establishing product specifications, searching for products, selecting suppliers and products, evaluating performance, recognizing the problem, and evaluating possible products and suppliers.

The real value of marketing research to the organization can best be measured by a) its immediate impact on profits. b) the amount of time spent. c) how much it costs. d) improvements in the ability to make decisions. e) the increase in sales volume or market share.

The student senate at your university has been asked to give input on the purchase of new computers for campus computer labs. In this instance, the student senate would be acting as a(n) ______. a) buyer. b) gatekeeper. c) user. d) influencer. e) decider.

The use of marketing research is a) limited strictly to large corporations. b) limited to for-profit businesses of all sizes. c) controlled by the federal government. d) widespread throughout business and nonprofit organizations. e) carefully monitored by each state's trade agencies.

There are many factors that would influence Samsung's business buying decisions. Which one of the following would not? a) Environmental b) Organizational c) Interpersonal d) Demographic e) Individual

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. a) straight rebuy b) reciprocal c) delayed d) new-task e) modified rebuy

When certain consumer products are in high demand, producers might buy extra materials and equipment and when demand subsides, producers will cut back on their material purchases. This describes _____ demand. a) joint b) inelastic c) consumer d) fluctuating e) derived

To maintain the control needed to obtain accurate information, marketers approach marketing research as a process. Which of the following steps of that process focuses on uncovering the nature and boundaries of the marketing situation to be studied? a) Locating and defining problems b) Designing the project c) Collecting data d) Interpreting findings e) Reporting findings

Wade is puzzled by the recent decrease in sales at one of the Auto Zone locations for which he is the regional manager. He knows the best way to approach this problem and obtain accurate information is to use a) the marketing research process. b) the opinions of store managers. c) company sales' data. d) hypothesis testing. e) stratified sampling of customers.

What are the four major categories of factors that influence business buying decisions? a) Environmental, organizational, interpersonal, and individual b) Environmental, organizational, psychological, and individual c) Environmental, psychological, individual, and technological d) Technological, organizational, environmental, and interpersonal e) Environmental, organizational, technological, and individual

When Precision Brake's sales team calls on tractor manufacturing companies, the first person they usually talk to is the receptionist. In this example, the receptionists would be considered to be ________, part of the buying center. a) gatekeepers b) influencers c) users d) buyers e) controllers

When researchers divide the population of interest in a study into groups and then arbitrarily choose participants from each group, they are using a) quota sampling. b) selective surveying. c) random sampling. d) stratified sampling. e) researcher samples.

When the requirements associated with a new-task purchase are changed the second or third time, this is called a ___________ purchase. a) modified rebuy b) continued new-task c) contractual d) straight rebuy e) negotiated rebuy

Which of the following is the least flexible survey method? a) Telephone surveys b) Focus-group interviews c) Personal interview surveys d) Mail surveys e) Observation

Which of the following products is most likely to be purchased on the basis of contract negotiation? a) Eggs b) Office supplies c) Used cars d) A custom-made bulldozer e) Wheat

Which of the following would be considered an institutional buyer? a) The University of Illinois b) The Environmental Protection Agency c) Apple Computers d) The United Way e) City of Greenville

A business advantage of the concentrated targeting strategy for any company is that it a) requires less market research and information. b) requires less intensive analysis of customers' characteristics and needs. c) allows a firm to utilize all of its production capacity. d) maintains the firm's flexibility in moving into other market segments. e) allows a firm to develop a special marketing mix for a single market segment.

Market Opportunity

A combo of circumstances and timing that permits an organization to reach a target market

A disadvantage of the concentrated targeting strategy is that a) the firm's financial condition is tied to a single and specialized marketing mix. b) large sales volumes cannot be generated. c) production costs may be higher than with other strategies. d) marketing personnel may become dissatisfied with the limited opportunities provided by this approach. e) marketing costs are often higher than for other strategies.

Which step in the marketing research process involves the use of data analysis and statistical techniques to help draw conclusions? a) Locating and defining problems or research issues b) Developing hypotheses c) Collecting data d) Interpreting research findings e) Reporting research findings

Which type of business market tends to have the most complex buying procedures? a) Reseller b) Institutional c) Retailer d) Government e) Producer

Strategic business unit (SBU)

A division, product line or other profit center within a parent company (a business within a business)

A forecasting method that predicts sales based on relationships between past sales and other variables is called a) regression analysis. b) customer forecasting surveys. c) the Delphi technique. d) random factor analysis. e) time series analysis.

Market

A group of individuals or organizations that have needs for products in a product class and have ability willingness and authority to purchase those products

A market in which a large proportion of customers have similar needs for a product is called a(n) _____ market. a) undifferentiated b) heterogeneous c) homogenous d) differentiated e) concentrated

A marketer that targets customers based on marital status and the presence and age of children is using a) behavioristic segmentation. b) lifestyle variables. c) psychographic variables. d) family life cycle. e) phase of life segmentation

Target Market?

A specific group of customers on whom an organization focuses on (Can be large or small groups)

Study of Marketing is what?

A spin off of economics

A targeting strategy in which an organization directs its marketing efforts at several segments is called a(n) ___________ targeting strategy. a) differentiated b) total market c) concentrated d) undifferentiated e) integrated

A targeting strategy in which an organization targets a single market segment using one marketing mix is called a(n) _____ strategy. a) selective b) focused c) differentiated d) concentrated e) undifferentiated

A Values attitude and lifestyle

A widely used system for classifying individuals on the basis of lifestyle is a) VALS. b) PRIZM. c) CMSA. d) LIFO. e) Prospect Zone.

After a firm has identified an appropriate targeting strategy, the next step in the target market selection process is a) determining the demographic variables of the target market. b) developing market segment profiles. c) determining which segmentation variables to use. d) selecting specific target markets. e) evaluating relevant market segments.

After an organization has determined which of the many segmentation variables it will use, the next step in the target market selection process is a) evaluating each of the relevant market segments. b) selecting the specific target markets. c) reviewing the appropriate marketing strategy. d) analyzing the interaction between segmentation variables. e) developing market segment profiles.

Age, rate of product use, location, and gender are all examples of common a) demographic variables. b) geographic characteristics. c) targeting strategies. d) psychographic variables. e) segmentation variables.

Alex Wren of Owens Corning Fiberglass talks to Terry Jones, a homebuilder, to find out how much fiberglass insulation he intends to use in building homes during the next year. Albert then multiplies that number by the total number of builders in the territory. He is using a ___________ approach to measure sales potential. a) multivariable b) use of product c) breakdown d) regression e) buildup

All of the following statements about product positioning are true except a) product positioning decisions are not only for new products. b) product positioning is the customer's absolute perception of a product's attributes. c) effective product positioning helps serve a specific market segment by creating an appropriate concept in the minds of customers in that market segment. d) product positioning is concerned with creating and maintaining a certain concept of the firm's product in customers' minds. e) when marketers position a product, they try to position it so that it seems to possess the characteristics the target market desires.

What has to happen in the Marketing Concept?

Allows organization to achieve goals and has to be win-win

SWOT ANALYSIS

An assessment of an organizations strengths and weaknesses (internal) opportunities and threats (external)

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) a) business market. b) market. c) undifferentiated market d) segmented market e) market variable

Customer benefits

Anything desired by the customer that is received in exchange

What is price?

Anything the customer has to give up

A buyer for Macy's Department Stores orders handbags from a supplier because that supplier allows the buyer to maintain Macy's company policy of 30-day advance purchase notice. This is an example of ___________ influence on the business buying decision process. a) environmental b) organizational c) interpersonal d) individual e) demographic

A framework for gathering and managing information from sources both inside and outside an organization is referred to as a) marketing research agencies. b) a marketing information system. c) the marketing mix. d) a marketing research system. e) a secondary data system.

A study that is valid and reliable a) is called a marketing research study. b) measures what it is supposed to measure and produces almost identical results every time. c) is expensive to implement and complete. d) measures subtle differences in the population being studied. e) is difficult to produce without expert researchers.

A target market A) involves a large number of customers B) is a specific group of customers on whom a company focuses its marketing efforts. C) already has several competitors vying for customers' business. D) is the same as a salesperson's prospective client list. E) is a customer group classified as people with similar demographic characteristics.

American Flooring sells all types of floor coverings to contractors and other businesses. It keeps a collection of information about all of its clients that can be easily accessed on the company's computer system. This collection of information is called a a) marketing information system. b) database. c) management information system. d) single-source data. e) marketing decision support system.

An accountant who purchases software for maintaining clients' books is an example of a buyer in a(n) ___________ market. a) consumer b) producer c) reseller d) government e) institutional

Assume that Verizon Wireless is interested in studying the pricing expectations of its customers. If the study calls for selecting at random 100 people from each of three age groupings, ___________ sampling is being used. a) random b) stratified c) quota d) area e) experimental

Because retailers have to be concerned with product selection, price, and space, they often evaluate products on the basis of a) their markup. b) sales per square foot of selling area. c) how many of the product they can fit in a certain amount of space. d) profit per dollar of selling price. e) the reliability of the supplier.

Colin went to the university library and collected everything he could find on the kayaking and canoeing sports industries. The type of data he collected are known as ___________ data. a) primary b) secondary c) descriptive d) exploratory e) mixed

Collin Roberts of Roberts Construction is planning to buy a piece of used earth-moving equipment. He would most likely base his purchase decision on ___________ of the alternative machines. a) descriptions b) inspections c) a sampling d) specifications e) reputations

Compared with consumer goods, marketers aiming at business customers a) do not need to select target markets. b) have an enormous amount of information available concerning potential customers. c) have more difficulty in determining where their customers are located. d) are restricted in the types of promotion they can use. e) have more difficulty in estimating customers' purchase potential

Decreasing sales, increasing expenses, or decreasing profits a) are to be expected during the marketing research process. b) are examples of symptoms that point to larger problems. c) usually have no effect on the marketing research process. d) are important considerations in designing the research project. e) should be carefully considered before collecting data.

Demand for a business product is _____ when two or more items are used in combination to produce a product. a) inelastic b) joint c) fluctuating d) derived e) partnered

Demand for a business product is ___________ if a price increase or decrease will not significantly affect that demand. a) elastic b) inelastic c) derived d) joint e) separate

Distribution, price, promotion, and product are all elements of A) marketing strategy. B) the marketing mix. C) a target market. D) a consumer good. E) a business strategy.

During the search for products and evaluating 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. a) cost b) value c) profit d) strategic e) SWOT

For demographic purposes, a mail survey sent out by the American Cancer Society asks each respondent to identify their race by choosing among a list of possibilities. This common type of question is called a(n) _____ question. a) dichotomous b) multiple-choice c) categorized d) open-ended e) optional respons

If Carrie wants to do some market research about the footwear industry that her company is a part of, but she has limited money and time, she would most likely collect a) sampling units. b) secondary data. c) quota data. d) primary data. e) survey data.

If Staples believes that most of its sales are to businesses rather than consumers and that women are more likely to be making purchasing decisions, this would be a(n) ______ that Staples could test through marketing research. a) description b) hypothesis c) explanation d) sample e) experiment

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) observation. b) a focus-group interview. c) an on-site computer interview. d) a shopping mall intercept interview. e) a telephone survey.

If you were to choose a sample with which to study the market for preschool toys in Illinois, the population would logically be defined as all a) children in Illinois. b) families in Illinois that have or are expecting preschool children. c) people in Illinois. d) preschools in Illinois. e) preschool children in Illinois.

In its purchase of desktop business computers, Albertson's asked that potential suppliers provide information only on units with 4.0 gigabytes of memory. As Albertson's management evaluates this purchase, it finds that 4.0 gigabytes are inadequate for many of the software programs used at Albertson's. In this instance, the firm would need to modify which aspect of the purchase process? a) Searching b) Specification development c) Alternative evaluation d) Selection e) Performance evaluation

In placing a tire order with Michelin, South Side Industrial Supply finds that the truck tires it is ordering have increased $37.50 in price since the last order. South Side proceeds with the order, confident that it can pass on the price increase to future customers. This is an example of business products having ___________ demand. a) derived b) inelastic c) joint d) fluctuating e) higher

In the process of conducting marketing research, marketers should allow for a) periodic review of data during the collection period. b) continual evaluation of the data during the entire collection period. c) no data review during collection; instead, they should wait for later interpretation of research findings. d) descriptive research to solve general problems. e) statistical analysis during the collection period.

Inelastic demand in business markets refers to a situation where a) demand for a given product fluctuates very little over time. b) price increases or decreases will not significantly change demand for a given product. c) demand for a given product fluctuates significantly over time. d) demand for one product depends heavily on the demand for another product. e) supply for a given product cannot keep pace with the demand for it.

Input-output analysis is most likely to yield what type of information? a) Number of employees that a firm has b) Industries that purchase the major portion of an industry's output c) Kinds of returns a firm is getting on its equipment investments d) Type of inventory turnover that is characteristic of a firm e) Kinds of variables that would be used to segment the target market

Jack Bateson knows his business has a problem because of an increasing number of consumer complaints received recently. He has decided how to make this problem a precise, researchable statement and should next move on to a) calculating reliability and validity. b) designing the research project. c) collecting data. d) interpreting research findings. e) taking corrective action.

Kroger Grocery Store is an example of a reseller. Which of the following factors concerning reseller purchase decisions is false? a) Resellers are concerned with the level of demand for the product. b) Resellers are not concerned with how much space the product takes up as long as it has a high price. c) Resellers want producers to be able to supply adequate quantities of the product. d) Resellers are concerned with the availability of technical and promotional assistance from the producer. e) Resellers are concerned with the markup percentage they can get on the product.

Marketers often begin the data collection phase of a research project by gathering secondary data. This type of information may come from both ___________ and ___________ sources. a) government; business b) internal; external c) primary; secondary d) formal; informal e) collected; distributed

One overlooked internal source of secondary marketing information discussed in the text is a) sales receipts. b) accounting records. c) interviews with salespeople. d) quality control data. e) consumer surveys.

Palmetto Regional Hospital has designed an upcoming research project for determining the best methods for improving patient care. The next step the organization must take in the marketing research process is a) interpreting research findings. b) collecting data. c) developing a testable hypothesis. d) sampling the population. e) reporting research findings.

Participants in _______ frequently get to see pictures, products, advertising samples, and diagrams. a) online surveys b) personal interview surveys c) mail surveys d) telephone surveys e) probability samples

Raython Hardware and Thames Industrial Supplier have worked closely for many years and have a mutually beneficial relationship in which Raython provides all of Thames's hardware needs in a timely manner. Raython and Thames's relationship could be best characterized as a(n) a) reciprocity agreement. b) partnership. c) intra-organizational group. d) alliance. e) tying arrangement.

St. Jude's Hospital decides to redo its kitchen with new flooring, cabinets, counters, and appliances. The hospital compiles a description of the project and then asks sellers to submit bids. After determining the most attractive bids, the hospital will then work with two or three companies to determine who will get the contract. This is an example of using ______ for a purchase decision. a) sampling b) negotiation c) inspection d) elimination e) description

Suppose that a retail store conducts a mail survey of its customers and finds that 50 percent of the customers believe store personnel are "courteous." Which benchmark or comparison would be most useful for interpreting this result? a) The annual dollars spent at the store by those customers who believe store personnel are courteous b) How the 50 percent figure compares with that for competitors c) The percentage of store personnel who have completed training in customer service and public relations d) How the 50 percent figure compares with industrial or wholesale institutions and stores e) The percentage of store personnel who feel they are courteous to customers

Suppose that when selecting the 5,000 homes to participate in scanner studies in one city, the research firm first divided the city's population into upper-, middle-, and lower-class families, then took a probability sample within each group. This would be a(n) _________ sample. a) random b) stratified c) area d) quota e) population

The major disadvantage of a mail survey versus a telephone or personal survey is a) having to offer premiums. b) the failure of respondents to return the questionnaire. c) the elimination of interview bias. d) the lack of open-ended questions. e) the cost.

The two basic types of sampling that marketing researchers use are a) random and nonrandom. b) probability and nonprobability. c) stratified and quota. d) even and odd. e) planned and spontaneous

There is some concern that marketing research has been used incorrectly by some firms. The major problem comes from ___________ because the researcher wants to obtain favorable results. a) using an inappropriate sample b) bias and distortion c) trying to be objective about views and opinions d) using in-house research departments e) employing large research firms, such as Gallup

What is the primary factor contributing to the increasing difficulty associated with gathering primary data through surveys? a) Most companies do not have any funding for survey research. b) Fewer people are willing to participate in surveys. c) Laws significantly limit firms' ability to conduct surveys. d) Unreliable methods of distributing surveys make them difficult to conduct. e) Very little useful information is ever gathered from survey results.

When Pepsi Max implemented a telephone survey to determine the effectiveness of a recent advertising campaign. One of the questions the interviewer asked was, "Have you ever heard of a cola with twice the caffeine of regular colas?" This is an example of which of the following kinds of questions? a) Open-ended b) Dichotomous c) Multiple-choice d) Imperative e) Declarative

When Precision Brake sells to the individual dealers, they would be considered which of the following business types? a) Producer b) Reseller c) Government d) Institutional e) Covert

When working as a summer intern for a local retail store, Jan Halverson was sent to the library to look up data on population forecasts for the city of San Antonio. The population information she found would be considered a) primary data. b) secondary data. c) information data from syndicated research services. d) secondhand data. e) a primary database.

Which method of business buying is necessary when products are highly homogeneous and examination of each item is not feasible? a) Negotiation b) Sampling c) Description d) Inspection e) Homogeneous selection

Which of the following basic survey methods is the least expensive method if there is an adequate response rate? a) Mail surveys b) Online surveys c) Telephone surveys d) Personal interview surveys e) Focus groups

Which of the following is a probability sampling technique used to reduce errors within random sampling? a) Quota b) Stratified c) Nonprobability d) Cluster e) Snowball

Which one of the following best characterizes a marketing information system (MIS)? a) An MIS is an orderly gathering of information that is not supplied through routine reporting systems such as sales reports and accounting data. b) An MIS provides a continuous flow of information about such things as distribution costs, prices, sales, and advertising expenses. c) An MIS is conducted on a special-project basis when needed. d) An MIS requires adjustments to its techniques to adapt to environmental circumstances and is in reality part of the accounting system. e) An MIS involves internal information collection about employees and customers

Which sampling design gives every member of the population an equal chance of appearing in the sample? a) Nonprobability b) Random c) Quota d) Stratified e) Poll

_________ is(are) a major threat to the sales success of jointly demanded products. a) Price changes b) Shortages c) Economic instability d) Inventory buildup e) Proliferation of brands

___________ analysis is a systematic evaluation of current and potential suppliers that focuses on many dimensions including price, product quality, delivery service, product dependability, and overall company reliability. a) Value b) Vendor c) Buying center d) Strategic e) Cost

Budweiser may choose to segment its market based on heavy, moderate, and light drinkers of its alcoholic beverages. This is an example of market segmentation based on a) behavioristic variables. b) benefits. c) lifestyles. d) psychographic variables. e) demographic variables.

A Pillsbury mill in Utah buys grain from growers in the western region. The purchasing agent for Pillsbury will most likely use which buying method? a) Description b) Inspection c) Sampling d) Negotiation e) Selection

A firm has conducted market research and found that customer satisfaction with its product is quite high. Nonetheless, repurchase behavior is very low. The research design evidently has a problem with a) secondary data. b) reliability. c) validity. d) reporting findings. e) generalizability.

A representative from Coca-Cola stops by at a local fast-food restaurant once a month to inquire how much soft drink syrup the store will need. The restaurant's orders are an example of which type of business purchase? a) New-task b) Modified rebuy c) Straight rebuy d) Bid e) Negotiated

A research method in which a number of people are exposed to an idea or concept and the interaction of the people is observed is called a(n) a) in-home interview. b) mail-group survey. c) focus-group interview. d) shopping mall intercept interview. e) chat room interview.

About what percentage of the annual U.S. gross domestic product is government spending? a) 2 percent b) 10 percent c) 20 percent d) 30 percent e) 50 percent

After deciding to order replacement parts for aging machinery, the buyer for a construction company examines catalogs and trade publications looking for these parts. The buyer is at which stage in the business buying decision process? a) Problem recognition b) Product specification c) Product-supplier search and evaluation d) Product-supplier selection e) Product-supplier post-evaluation

All of the following are important concerns of business customers except a) achieving a specific level of quality in the products offered to target markets. b) obtaining a level of quality that meets specifications. c) obtaining products that exceed specifications to ensure the best possible product performance. d) obtaining products for which the quality level is consistent. e) supporting customers with services they expect.

All the elements, individuals, or units of interest to researchers for a specific study are called the a) data set. b) sample. c) population. d) focus group. e) target market.

An informed guess or assumption about a certain problem or set of circumstances is known as a) a description of the situation. b) good research design. c) a hypothesis. d) a reliable guess. e) managerial intuition.

As it places its order for truck tires with Michelin, South Side Industrial Supply realizes that it must also place an order for valve stems and balancing weights for the truck tires. Such business products are characterized as having ____________ demand. a) derived b) inelastic c) joint d) fluctuating e) higher

Avon believes that sales of one of its lipstick lines have fallen due to the introduction of a new lipstick line, but it wants to make this tentative hypothesis more specific before proceeding. Avon should conduct a) experimental research. b) hypothesis testing. c) exploratory research. d) conclusive research. e) descriptive research.

Bart's Appliance Center owner Ron Bart feels that his organization has access to a great deal of information generated both inside and outside the firm, but much of this information is presently going to waste. Apparently, Bart needs to develop a a) marketing research focus. b) marketing knowledge bank. c) marketing information system. d) marketing strategy. e) data-gathering system.

Bob Denton of Denton Pest Control buys equipment from a supplier because that supplier hires him to spray the warehouse for insects periodically. This practice is known as a) cost-benefit analysis. b) cooperative selling. c) reciprocity. d) supplier agreement. e) modified rebuy purchase.

Business markets are typically divided into four categories. These categories are a) retailers, wholesalers, services, and nonprofit firms. b) producer, manufacturer, reseller, and government. c) producer, reseller, government, and institutional. d) manufacturer, wholesaler, retailer, and services. e) reseller, retailer, government, and institutional.

Carlos was given the task of conducting a research project for his firm and proceeds with the following steps: he asks questions to determine the research topic, conducts a telephone survey, writes a report describing the survey results, and gives that report to his boss. Which step of the marketing research process has Carlos omitted? a) Collecting data b) Defining and locating problems c) Interpreting research d) Designing the research project e) Reporting research findings

Churches, charitable organizations, and private colleges are considered _____ buyers. a) corporate b) government c) institutional d) producer e) nonprofit

Colin decided to apply some of the things he had learned in his MBA marketing research class to his business. The first thing he did was to a) develop a questionnaire. b) identify a sample frame. c) define the problem to be researched. d) conduct store exit interviews. e) collect secondary data.

Compared with the SIC system, the North American Industry Classification System (NAICS) will a) look at many industries at one time. b) be used throughout the world. c) contain the most up-to-date information for the NAFTA partners. d) provide less information about service industries. e) generate statistics that will not be useful in comparing countries.

Demand for business products is characterized as derived. From what is the demand derived? a) Industrial demand b) Modified demand c) Demand for consumer products d) Future product demand e) The business cycle

Goodyear is a manufacturer and marketer of tires for new passenger cars. In recent years, the company's business has declined because of the overall decrease in consumer demand for new cars. In this case, the demand for Goodyear's tire products is said to be _______since it depends on the demand for new cars. a) inelastic b) fluctuating c) derived d) elastic e) nonderived

Having recording biases and collecting only descriptive information are two of the primary drawbacks to a) statistical interpretation. b) mail surveys. c) observation. d) personal interviews. e) experimentation.

If Bloomingdale's wants to learn about consumers' attitudes toward on-line purchases and conducts a study to acquire this information, this study would collect ____________ data. a) causal b) experimental c) primary d) laboratory e) secondary

In a buying center, purchasing agents or purchasing managers are also known as a) gatekeepers. b) deciders. c) buyers. d) users. e) influencers.

In marketing research, a sample is best described as a) a small group that is a part of a larger group. b) all the elements, units, or individuals of interest to researchers for a specific study. c) a limited number of units chosen to represent the characteristics of a total population. d) a group that shares a common attribute within a population. e) a small portion of a product offered to customers to try a new product.

Individuals and business organizations that purchase products for the purpose of making a profit either by using the products to produce other products or by using them in their operations are classified as ___________ markets. a) consumer b) institutional c) producer d) government e) reseller

Inelastic demand simply means that a) buyers will not make a modified rebuy purchase. b) demand depends on how many items are purchased. c) a price increase or decrease will not significantly change the demand for an item. d) when price goes up, demand goes down. e) when supply is reduced, the price will increase.

Last year, Precision Brake's sales to the manufacturers of lawn tractors declined, partially due to the fact that more consumers were hiring small landscaping businesses to cut their grass. This decline in sales for Precision Brake is an example of a) Product scarcity b) Joint demand c) Derived demand d) Reciprocity demand e) Inelastic demand

Maggie has limited funds for collecting data about a new pricing strategy, but she needs data from a wide geographic area. Under these circumstances, Maggie should use a) telephone surveys. b) in-home interviews. c) mail surveys. d) shopping mall intercept interviews. e) focus-group interviews

Management at Readyfresh Dry Cleaners is concerned that it maintains a high level of service for its business accounts. How should the firm monitor the level of service these customers receive? a) Develop a code of service. b) Set service objectives. c) Formally survey customers. d) Specify service uniformity. e) Stress truthfulness with employees.

Marketing research is a process designed to gather information a) exclusively about a company's customers. b) from the company's database. c) not currently available to decision makers. d) about the needs and desires of employees. e) concerning the interpretation of the company's sales goals

Most business buying decisions are made by a) one person. b) a team of purchasing agents. c) a firm's buying center. d) inventory control personnel. e) the sales force.

Most business purchases can be classified as belonging to one of three types: a) delinquent, repetitive, or delivered. b) repetitive, new-task, or modified rebuy. c) modified rebuy, new-task, or straight rebuy. d) delinquent, new-task, or reciprocal. e) rebuy, reciprocal, or delayed.

Nathan, a marketing manager for Casual Express, a retail clothing store chain, wants to use observation methods to gather information about shopping behavior. Which of the following should Nathan know about observation methods of data collection? a) Observation uses secondary sources of data. b) Observation depends on mall interviews. c) Observation can tell Nirendra what is being done, but not why. d) Observation focuses on open-ended questions. e) Observation works best for telephone surveys.

Patricia Robertson is running for Congress from the Sixth District in her state. She is interested in knowing the intended choices of the voters. All the registered voters in her district would constitute the study's a) experiment. b) dependent variable. c) population. d) independent variable. e) sample.

Perry Supply's sales and sales force have continued to expand. Now, the firm plans to add a fleet of company cars as part of its sales compensation package. For Perry Supply, these vehicles would represent a ____________ purchase. a) modified rebuy b) straight rebuy c) new-task d) reevaluated e) repetitive

Primary data are best described as the a) first batch of data collected for a specific study. b) data that are necessary for a correct decision. c) data that are observed, recorded, or collected directly from subjects. d) data that are compiled for some purpose other than the study in question. e) data that are collected inside and outside the organization for some purpose other than the current investigation.

Research that is conducted to clarify the characteristics of certain phenomena to solve a particular problem is called ______ research. a) primary b) experimental c) descriptive d) secondary e) exploratory

Suppose that marketers at Lever Bros. are trying to determine whether the use of free samples of Snuggle fabric softener was the reason for a sales increase in a particular store. The type of research conducted to answer this question is a) exploratory. b) descriptive. c) experimental. d) informal. e) qualitative.

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 a) joint. b) economically stable. c) derived. d) inelastic. e) more fluctuating.

The main focus of a marketing information system is on a) the coordination of external information sources. b) classifying data into the proper information categories. c) data storage and retrieval. d) the accurate maintenance of inventory levels. e) gathering information on competitive activity.

The manager of MegaMarket is interested in asking consumers what they think about the store's new layout and expanded produce selection. If the manager would like to obtain a high response rate and have the study conducted as quickly as possible, which data collection method would you recommend? a) Mail survey b) Direct observation of consumers in the store c) Telephone survey d) Focus-group interview e) Shopping mall intercept interview

The marketing Mix is built around the A) product. B) company. C) customer. D) employee. E) retail outlet.

The objective of sampling in marketing research is to a) obtain responses from as many people as possible. b) control independent variables that might influence research results. c) select representative units from a total population. d) ensure that measures in the study are reliable. e) provide data that can be used to test the hypotheses being investigated.

The recently created Department of Homeland Defense is a member of the _____ market. a) regulatory b) reseller c) government d) producer e) institutional

The second stage in the business buying decision process is to a) search for products and suppliers. b) select the most appropriate product. c) develop product specifications. d) evaluate product and supplier performance. e) recognize the problem.

The three purposes for which individuals or groups can use products in order for it to be considered a business market are a) use in daily operations, end consumption, and resale. b) direct use in producing other products, company travel, and end consumption. c) resale, use in daily operations, and direct use in producing other products. d) governmental, institutional, and reseller purposes. e) making other products, selling to other businesses, making component parts.

What are the two ways governments make purchases? a) Cash or credit b) Contracting previous suppliers and bids c) Bids and negotiated contracts d) Lottery system and contract negotiations e) Request for new purchases and recurring orders

What type of business purchase is Samsung undertaking? a) Modified rebuy b) Straight rebuy c) New-task d) Straight purchase e) New rebuy

What was the first step of the buying decision process that Samsung went through when looking for the quasi-assembly pods? a) Searching for products and suppliers b) Selecting and ordering the most appropriate product c) Recognizing the problem or need d) Establishing product specifications e) Evaluating the product relative to specifications

When a business routinely purchases the same product with similar terms of sale, the purchase is called a a) new-task. b) repetitive purchase. c) straight rebuy. d) modified rebuy. e) standard order.

When a market researcher is using ethnographic techniques, he or she is engaging in a) mail surveys. b) personal interview surveys. c) observation. d) experimentation. e) focus groups.

When buying materials, the purchasing agent for Alco Pillow Manufacturing Company considers a variety of factors. Which one of the following is least likely to concern this buyer? a) Does the quality of the goods meet company specifications? b) Does the supplier consistently deliver on time? c) Does the supplier also sell to my competitors? d) Does the supplier offer the services required? e) Does the price meet company budget requirements?

When more information is needed about a problem and a tentative hypothesis needs to be made more specific, marketers usually conduct _________ research. a) descriptive b) experimental c) exploratory d) analytical statistical e) conclusive

Which method of business buying is most likely to be used when the products being purchased are standardized based on certain characteristics? a) Homogeneous selection b) Inspection c) Description d) Sampling e) Negotiation

Which of the following groups should Samsung not include in its buying center for the new equipment? a) Purchasing agents at Samsung b) Eventual users within Samsung c) Potential future Samsung customers d) Gatekeepers within Samsung e) Senior managers at Samsung

Which of the following is true with respect to buyers in business markets? a) Business buyers always act rationally when making purchases for their company. b) Business customers tend to be less informed about the products they purchase than consumer buyers. c) Business customers demand detailed information about a product's quality, features, or technical specifications. d) Business customers are no different than buyers in consumer markets. e) Business customers tend to buy products from their friends and contacts with business suppliers.

Which step in the marketing research process follows collecting data? a) Reporting research results b) Implementing organizational change c) Interpreting research findings d) Designing the research project e) Refining the research issue

Which of the following best describes Nintendo's initial strategy when introducing the Wii? A) Increase its sales of software to current gamers B) Increase its sales of game consoles to the under-25 market C) Increase its sales of game consoles by broadening the appeal of gaming to all ages

C) Increase its sales of game consoles by broadening the appeal of gaming to all ages

Time Warner Cable uses its sales reports broken down by geographic regions as part of its marketing research to determine which markets are most rapidly adopting high-speed Internet connections. In this example, Time Warner Cable is using Select one: a. internal secondary data. b. external primary data. c. internal sampling. d. external secondary data. e. internal primary data.

Internal secondary data

Intuition and expediency are primary characteristics of which of the following sales forecasting methods? a) Surveys b) Executive judgment c) Cycle analysis d) Market tests e) Industry indicators

What happens if a customer comes back more than once?

It is a 100% return

Marketing management

It is process of planning, organizing, implementing and controlling marketing activities to facilitate exchanges affecting and efficiently

Mission statement

Long term vision of what an organization wants to become

Many marketers are concerned about the number of potential customers within a certain area of land because of the different requirements to serve dissimilar areas. What is this segmentation variable called? a) Micromarketing b) Population c) Market density d) MSA e) PMSA

Mattel views the toy market as composed of four age groupings, each with different needs and desires. Each of these GROUPS are known as a) an undifferentiated market. b) heterogeneous. c) a market segment. d) a marketing mix. e) a concentrated market.

McDonald's uses a segmentation strategy for its sandwiches based on market characteristics such as age, gender, or income. Which of the following segmentation variables is McDonald's using? a) Demographic b) Geographic c) Psychographic d) Product-related e) Education

Most markets for products are made up of individuals or groups with diverse needs for products and are called ________ markets. a) undifferentiated b) concentrated c) homogenous d) differentiated e) heterogeneous

Often, the Delphi technique is used in conjunction with an expert forecasting survey. The major objective is to a) allow an opportunity to obtain diverse expert opinions. b) allow experts to work separately to reach a consensus as to their forecasts. c) reach an accurate sales forecast through the use of multiple sales forecasting techniques. d) determine if the expert forecasting survey is superior to regression analysis. e) assess the extent to which this year's sales forecast is more accurate than that of previous years.

Pepsi wants to know where its Sierra Mist soft drink fits in with other drinks in the mind of the consumer. Marketers question a sample of consumers about Sierra Mist and other drinks on two different dimensions. They will most likely put this information into a _____ to show Sierra Mist's position. a) perceptual map b) ideal cluster c) product position chart d) market graph e) product matrix

Marketing strategy

Plan of action for identifying and analyzing a target market in developing a marketing mix to meet the needs of that market. (Does not have to be in writing)

Population density and city size are _______ variables used for market segmentation. a) geographic b) demographic c) psychographic d) environmental e) geodemographic

Positioning a product to avoid competition may be best when the a) competing products are priced higher than or at least equal to the new product. b) company has an established reputation with the consumers of that particular market. c) market is characterized by consumers who are not sensitive to price or value. d) market is characterized by consumers who are price conscious and brand specific. e) product's performance characteristics are not significantly different from those of competing brands.

Whats Marketing?

Process of creating, distributing, promoting and pricing goods, services and ideas to facilitate satisfying relationships with customers in a dynamic environment.

Strategic planning

Process of establishing an organizational mission and formulating goals, corporate strategies, marketing objectives, marketing strategy and a marketing plan

Procter & Gamble markets Cheer detergent to young singles and couples and Tide detergent to families. Procter & Gamble is using a(n) ___________ targeting strategy for laundry detergents. a) multiuse b) differentiated c) stratified d) undifferentiated e) concentrated

Product positioning refers to a) the area in retail stores in which the manufacturer strives to position its products. b) product price but not to product image. c) product image but not to product price. d) the decisions and activities intended to create and maintain a certain concept of the firm's product in customers' minds. e) the length of time a product has survived in the market.

Segmentation variables are usually grouped into four categories: a) demographic, geographic, religion, and income. b) geopolitical, income, behavioristic, and psychographic. c) attitudes, lifestyles, behaviors, and gender. d) geographic, demographic, psychographic, and attitudes. e) demographic, geographic, psychographic, and behavioristic.

Several conditions must exist for market segmentation to be successful. These conditions include all of the following except a) the total market should be divided so that segments can be compared on sales potential, costs, and profits. b) customers' needs for the product must be homogeneous. c) the company must be able to reach the chosen segment with a particular marketing mix. d) segments must be identifiable and divisible. e) at least one segment must have enough profit potential to justify developing and maintaining a special marketing mix for that segment.

Systems such as PRIZM and Acorn provide companies with lifestyle and demographic information about neighborhoods throughout the United States. This information is used to aid a) behavioristic segmentation. b) geodemographic segmentation. c) market density analysis. d) demographic segmentation. e) geographic segmentation.

The ProMark Company manufactures and sells only one type of ballpoint pen at just one price. All its advertising is the same and is directed at the mass market. What type of targeting strategy is the ProMark Company using? a) Extensive b) Undifferentiated c) Concentrated d) Intensive e) Differentiated

The ability to purchase a product is a function of a) buying power. b) desire. c) willingness. d) authority. e) needs.

The amount of product a company expects to sell during a specific period at a specified level of marketing activity is called the a) company sales potential. b) revenue estimate. c) company sales prediction. d) market potential. e) sales forecast.

The buildup approach measure of sales potential a) starts with broad estimates of general economic activity. b) ends with an estimate of a single firm's sales of a specific product. c) starts with forecasts about demand for a specific product within a relatively small area. d) does not use sales estimates. e) is seldom employed by industrial firms.

The division of a market according to what benefits consumers want from the product is called ______ segmentation. a) behavioristic b) product usage c) benefit d) end-purpose e) advantage

The final step in the target market selection process is a) implementing the appropriate marketing mix for the target market. b) evaluating relative market segments. c) eliminating market segments that are cost prohibitive. d) selecting specific target markets. e) revising the final segmentation variables based on target selection.

The first step in the target market selection process is a) determining which segmentation variables to use. b) selecting specific target markets. c) identifying an appropriate targeting strategy. d) evaluating relevant market segments. e) developing market segment profiles.

The forecasting techniques that assume past sales patterns will continue into the future are all variations of a) regression analysis. b) random factor analysis. c) seasonal analysis. d) time series analysis. e) past sales forecasting surveys.

The maximum percentage of market potential that an individual firm can expect to obtain for a specific product is the a) sales forecast. b) market potential. c) company sales potential. d) company sales objective. e) market share goal.

Market Share

The percentage of a market that actually buys a specific product from a particular company

The primary advantage of a concentrated targeting strategy is a) it meets the needs of a wide range of consumers. b) it allows a firm to specialize to meet specific customer needs. c) it is more flexible than any other approach. d) it is the least risky targeting approach. e) its customers are the most willing to repurchase the same brands.

The process of dividing a total market into market groups because people within each group have relatively similar product needs is called a) segmentation. b) diversification. c) target marketing. d) concentration. e) customization.

The psychographic variable that includes numerous characteristics related to people's activities, interests, and opinion is a) motive. b) social class. c) personality. d) stage in family life cycle. e) lifestyle.

The purpose of market segmentation is to a) differentiate products. b) divide a total market to enable a marketer to develop a more precise marketing mix. c) reduce the overall cost of marketing activities. d) identify a single marketing mix that will be satisfactory for the general market. e) meet the needs of homogeneous markets.

The sales prediction technique based on the correlation between sales and other factors—such as population density, per capita income, or family size—is a) executive judgment. b) time series analysis. c) regression analysis. d) a market test. e) an expert survey.

The three most commonly used psychographic segmentation variables are a) personality, perception, and learning. b) personality, perception, and behavior. c) motives, attitudes, and lifestyles. d) attitudes, personality, and perception. e) personality, motives, and lifestyles.

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 a) competitor sales potential. b) sales objective. c) forecasted sales. d) company sales potential. e) market potential.

The undifferentiated targeting strategy for finding a target market will likely not be successful if a) product positioning is needed. b) the firm defines the total market as its target market. c) people within the market have heterogeneous needs. d) people within the market have homogeneous needs. e) the firm is capable of developing a single marketing mix that satisfies all people's needs.

Which of the following statements about the undifferentiated targeting strategy is false?

The undifferentiated targeting strategy uses multiple distribution systems to best reach individuals in the target market.

Core Competency

Thing that firm does well "strength" which SOMETIMES gives us an advantage over competition

Through marketing newsprint to newspaper publishers and glass manufacturers that use it in packing, International Paper segments its market based on a) customer size. b) psychographics. c) demographics. d) use of product. e) geographic location.

To find a target market, a firm can use the a) total market strategy and the undifferentiated strategy. b) product differentiation strategy and the customer differentiation strategy. c) demographic strategy and the psychographic strategy. d) socioeconomic strategy and the psychological strategy. e) undifferentiated strategy, the concentrated strategy, and the differentiated strategy.

Toyota has learned that some people want sports cars, while others want vans, trucks, sedans, and economy cars. In this instance, Toyota has found its markets to be a) heterogeneous. b) undifferentiated. c) concentrated. d) homogeneous. e) focused.

Using the breakdown approach to sales potential, estimates are made a) by referring to specific geographic factors. b) by establishing levels of marketing effort that will be required to achieve specific levels of sales. c) without reference to industry marketing efforts. d) without reference to general economic conditions. e) by starting with general economic conditions.

Variables such as geographic location, type of organization, customer size, and type of product usage are used to segment ___________ markets. a) consumer b) business c) government d) international e) most target

When a business has a relatively small number of customers, a preferred method of forecasting is a) regression analysis. b) trend analysis. c) the Delphi technique. d) a market test. e) a customer forecasting survey.

When a company has its sales forecasts prepared by management consultants, economists, or college professors, it is using a(n) a) expert forecasting survey. b) Delphi technique. c) random factor analysis. d) external judgment survey. e) market test.

When a firm designs a single marketing mix and directs it at an entire market for a particular product, the company is using a(n) _________ strategy. a) concentrated targeting b) differentiated c) heterogeneous market d) undifferentiated e) single mix

When a marketer is engaged in the target market selection process and has assessed relevant market segments by considering such factors as sales estimates, competition, and estimated costs, the marketer is ready for the next step, which is to a) identify the appropriate targeting strategy. b) determine which segmentation variables to use. c) develop market segment profiles. d) evaluate relevant market segments. e) select specific target markets.

When evaluating market segments, assessment of competitors is important because a) it is difficult to segment a market when it has multiple competitors. b) an absence of competitors usually creates difficulties in accurately measuring segment sales potential. c) sales estimates may cause a segment to appear to be lucrative, but there may be several competitors that together have a large share of that segment. d) a competitive analysis may lead to confusion as to who are the key competitors. e) competition is generally not a major problem as long as a marketer is aware of it.

When markets are comprised of people with differing product needs, the marketing manager should use a(n) ___________ strategy. a) concentrated or differentiated targeting b) market-intensive c) integrated d) product-oriented e) undifferentiated

When research indicated that Bluetooth's products were not reaching the correct target market, marketers of Bluetooth decided to change from demographic segmentation to psychographic segmentation. Which group of new segmentation variables will Bluetooth now be using? a) Geographic location of customers b) Age, sex, and socioeconomic characteristics c) Social class variables d) Personality characteristics, motives, and lifestyles e) Family life cycle, social class, and religion

When selecting specific target markets, a firm should a) revert to an undifferentiated approach if the market is deemed heterogeneous. b) choose the segments most in line with the firm's objectives and long-term growth. c) choose all segments that are determined to be profitable for the organization. d) choose the minimum number of segments necessary to achieve company sales potential. e) pick the segments with the best sales forecasts for the upcoming period of time.

When using personality characteristics as a market segmentation variable, marketers generally a) conduct personality assessments of their potential target market to determine which personality characteristics they possess. b) use research developed by clinical psychologists to determine which personality characteristics consumers using their products are most likely to have. c) use generic characteristics that all members of the population have. d) use a positively viewed characteristic they assume much of their target market has or would like to have. e) conduct a series of focus groups to determine both the positive and negative characteristics members of their target market are perceived to have.

Which of the following is an example of a behavioristic segmentation variable? a) Family size b) Climate c) Age d) Usage rate e) Personality characteristics

Which of the following is not a characteristic of a consumer market? a) it consists of purchasers who intend to consume or benefit from the purchased products b) they do not buy products for the main purpose of making a profit c) they are sometimes referred to as B2C markets d) their purchasing decisions are always made by only one individual e) each of us belongs to numerous markets of this type

Which of the following is not a requirement or characteristic of a market? a) The ability to purchase a product b) A large number of people or organizations c) The authority to buy a product d) The willingness to use buying power e) The need for a specific product in a specific product category

Which of the following is not one of the major categories of consumer market segmentation variables? a) Demographic characteristics b) Geographic variables c) Psychographic dimensions d) Situational variables e) Behavioristic characteristics

Which of the following is the biggest drawback to using psychographic variables? a) They are not strongly reflective of consumer behavior. b) They are difficult to measure. c) They give poor information about consumer needs. d) They do not reflect socioeconomic characteristics of consumers. e) The resulting segments are difficult to be reached.

Which of the following products is least likely to be segmented according to stages in the family life cycle? a) Single-family homes b) Ford automobiles c) European vacations d) Diet Coke e) General Electric appliances

Which of the following sales forecasting techniques would generally be most suitable for estimating sales of a new product? a) Executive judgment b) Customer surveys c) Time series analysis d) Market tests e) Regression methods

Which of the following statements about the undifferentiated targeting strategy is false? a) The undifferentiated targeting strategy should be used when the needs of individual customers are similar. b) The undifferentiated targeting strategy uses one promotional program aimed at everyone in the target market. c) The undifferentiated targeting strategy is good for use with staple items, such as sugar and salt. d) The undifferentiated targeting strategy uses multiple distribution systems to best reach individuals in the target market. e) The opposite of the undifferentiated targeting strategy is the differentiated targeting strategy.

Which of the following variables would most likely be used to segment a business market? a) An attitude of the company's CEO b) The geographic location of the company c) The lifestyle of the company's buying agent d) Net income generated by the company e) Common opinions of the company's employees

What 2 questions does the mission statement answer?

Who are our customers and what is our core competency?

Why would a company use the undifferentiated strategy? a) The needs of individual consumers are dissimilar, and distinctive marketing mixes are required to satisfy them. b) The undifferentiated strategy is the one strategy that provides maximum satisfaction to the whole market. c) 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. d) The undifferentiated strategy is expensive to implement but tends to produce the most sales. e) The undifferentiated strategy requires less time and fewer resources.

Marketing Plan

Written document

__________ describe the similarities among potential customers within a market segment and explain the differences among people in different market segments. a) Market segmentation variables b) Market segment profiles c) Segmentation grids d) Market differentiation indexes e) Market concentrations

Approximately what percentage of civilian workers in the United States performs marketing activities? a) 25 to 33 percent b) 81 to 92 percent c) 42 to 50 percent

Assuming that inflation is low, high buying power characterizes the _____ stage of the business cycle. a) prosperity b) depression c) recovery d) succession e) recession

Boca Burger's website features information about products, recipes, and nutritional values, but customers cannot actually purchase products from the website. This website is most likely used primarily as a ______ marketing tool. a) promotional b) distributional c) pricing d) targeting e) production

During which stage of the business cycle is unemployment low and total income relatively high? a) prosperity b) depression c) recovery d) succession e) recession

For most firms, the costs of marketing activities consume approximately what portion of the consumer's dollar? a) one-half b)one-fifth c) one-third

If all the gas stations in a city collaborated to determine what gas prices should be charged, they would be violating the a) Sherman Antitrust Act b) Clayton Act c) Federal Trade Commission Act d) Robinson-Patman e) Act Wheeler-Lea Act

Many health care companies are making adaptations to meet the needs of an aging population as the demand for medical services and products such as diabetes supplies increases. This change in marketing strategy is best explained by a change in a) demographics. b) cultural values. c) income levels. d) consumerism. e) subcultures.

Marketers primarily focus their environmental analysis on ____ competitors. a) Brand b) Generic c) Total budget d) Product e) Monopolistic

Marketers use the term "___________" to describe establishing long-term, mutually satisfying buyer-seller relationships. a) relationship marketing b) customer service c) marketing management d) exchange e) utility

Marketers who view political forces as being beyond their control are taking a ___________ response toward these forces. a) reactive b) aggressive c) proactive d) competitive e) liberal

Marketing activities are a) used by all sizes of organizations including for-profit, nonprofit, and government agencies. b) limited to use by larger for-profit and nonprofit organizations. c) implemented only to increase profits for the organization and to expand the scope of its customer base. d) used by all types and sizes of businesses but are not used by nonprofit organizations.

Procompetitive laws are those designed to a) preserve competition. b) protect the consumer. c) ensure product safety. d) reduce competition. e) limit business lobbying of government officials.

The Better Business Bureau is probably the best-known a) nongovernmental regulatory group. b) state-operated enforcement agency. c) national evaluator of advertisements. d) federal regulatory group. e) self-regulatory unit operating at the national level.

The amount of money received through wages, rents, investments, pensions, and subsidies is called a) income. b) wealth. c) discretionary income. d) prosperity. e) credit.

The forces of the marketing environment include a) political, legal and regulatory, sociocultural, technological, economic, and competitive. b) sociocultural, legal, regulatory, economic, and competitive. c) legal, regulatory, political, and sociocultural. d) competitive and noncompetitive forces that affect most lifestyles. e) fairly static components.

The forces of the marketing environment primarily affect marketers in three ways: They influence customers by affecting their lifestyles and preferences for products; they determine whether or how a marketing manager can perform certain marketing activities; and they a) affect a marketing manager's decisions and actions by influencing buyers' reactions to the firm's marketing mix. b) dictate that changes be made to the existing marketing mix despite any negative reactions from customers. c) make most new products obsolete very quickly so that research and development must continually develop new products.

The type of competitive structure that exists in the case where there are almost no substitutes for a product is a(n) a) Monopoly b) Oligopoly c) Monopolistic competition d) Pure competition e) noncompetition

To monitor changes in the marketing environment effectively, marketers must engage in a) environmental scanning and analysis. b) economic scanning c) self-regulatory analysis d) marketing research analysis e) information collecting

What type of competitive structure exists when a firm produces a product that has no close substitutes? a) Monopoly b) Oligopoly c) Monopolistic competition d) Pure competition e) Mixed competition

What type of competitive structure exists when just a few sellers control a large portion of the supply of a product? a) oligopoly b) monopoly c) pure competition d) mixed competition e) monopolistic competition

When Burger King offers 99-cent Whoppers to increase store traffic, it is altering which aspect of the marketing mix? a) Price b) Promotion c) Distribution d) Product e) Target market

Which of the following acts was enacted to prevent businesses from restraining trade and monopolizing markets? a) Sherman Antitrust Act b) Clayton Act c) Federal Trade Commission Act d) Robinson-Patman e) Act Wheeler-Lea Act

Which of the following agencies would most likely have jurisdiction over the problem with lead in the paint of children's toys? a) Consumer Product Safety Commission b) Children's Online Protection Act c) Food and Drug Administration d) Environmental Protection Agency e) National Advertising Review Board

Which of the following best describes the acceptance of the marketing concept by American organizations? a) The marketing concept has yet to be fully accepted by all organizations. b) All organizations fully utilize the marketing concept to run their businesses. c) Nearly half of all organizations are still in the sales orientation and have not implemented the marketing concept.

Which of the following firms would be most likely to have a monopoly for its competitive environment? a) TimeWarner Cable TV b) Mitchell Trucking c) Continental Airlines d) Rogers Plumbing e) Chemlawn Lawn Care

Which one of the following statements by a company president best reflects the marketing concept? a) We have organized our business to make certain that customers get what they want. b) We believe that the marketing department must organize to sell what we produce. c) We have organized an aggressive sales force in our company to promote our products.

___________ competitors are the most significant to marketers because buyers see the different products of these firms as direct substitutes for each other. a) Brand b) Generic c) Total budget d) Product e) Oligopolistic

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 Select one: a. a focus-group interview. b. observation. c. an on-site computer interview. d. a shopping mall intercept interview. e. a telephone survey.

a focus-group interview

In marketing research, a sample is best described as Select one: a. all the elements, units, or individuals of interest to researchers for a specific study. b. a group that shares a common attribute within a population. c. a small portion of a product offered to customers to try a new product. d. a small group that is a part of a larger group. e. a limited number of units chosen to represent the characteristics of a total population.

a limited number of units chosen to represent the characteristics of a total population

The marketing concept is

a management philosphy

marketing concept

a philosophy stating that an organization should try to satisfy customers' needs through a coordinated set of activities that allowed the organization to achieve its goals

good

a physical product that you can touch is a

target market

a specific group of customers on whom a company focuses its marketing efforts

2 categories of competition

Direct (take customers away) and Indirect (anything else)

A friend of yours starts his own business. He would like to expand his client base to include the government, but he believes his small business would be ignored. Based on your knowledge from the text, you tell him a) that he's absolutely right, the government doesn't deal with small businesses. b) although the government will deal with small businesses, he will never make a profit off a government contract. c) that any government, federal, state, or local would laugh at the size of his business. d) the government rarely considers new suppliers when making purchasing decisions. e) the government buys products from all sizes of business, but there is some red tape.

A representative product taken from a lot or batch, evaluated, and purchased refers to a) homogeneous selection. b) description. c) trust. d) negotiated inspection. e) sampling.

A valid study a) portrays the population being studied. b) results in a causal relationship between the independent and dependent variables. c) uses random sampling. d) verifies expected results. e) measures what it is supposed to.

AOL Time Warner uses its sales reports broken down by geographic regions as part of its marketing research to determine which markets are most rapidly adopting high-speed Internet connections. In this example, AOL Time Warner is using a) internal sampling. b) internal primary data. c) external secondary data. d) external primary data. e) internal secondary data.

All of the following are steps in the marketing research process except a) collecting data. b) interpreting research findings. c) designing the research project. d) reporting research findings. e) understanding your customer.

An online survey conducted before students could register for their fall semester classes asked, "Do you think online professor evaluation forms would be better than paper and pencil forms administered during class?" This is an example of a(n) ______ question. a) close-ended b) short answer c) multiple-choice d) open-ended e) dichotomous

An organization that decides to buy all of a certain part from the same company is using a) single-supplier purchasing. b) multiple sourcing. c) same vendor analysis. d) straight rebuy. e) sole sourcing.

Anderson Distribution Company has purchased 15 forklifts over the past two years. As it plans to place its next order for another five machines, management wonders if additional features may be needed in order to handle changes in the product lines it carries. For Anderson, these new forklifts represent a ___________ purchase. a) new-task b) repetitive c) straight rebuy d) repetitive order e) modified rebuy

Behavior Scan, a research company, provides information on household demographics, television viewing habits, and purchases tracked with Hotline cards. This is a) a marketing information system. b) a business software database. c) online information. d) U.S. Census data. e) single-source data.

Ben Davideau is assigned by his sales manager to come up with the names and addresses of twenty firms in his territory that have some potential for using sizable quantities of his firm's products. Wanting to be as efficient as possible, Ben looks in a) Sales & Marketing Management. b) an SIC listing. c) the Census of Business. d) the Census of Manufacturers. e) Standard & Poor's Register.

Colin developed a research design to aid his investigation. This design included a questionnaire that attempted to measure "outdoor activity preferences"; however, Colin's MBA professor said that the questionnaire measured not "outdoor activity preferences" but something else. The professor was questioning the research design's a) reliability. b) significance. c) truthfulness. d) corroboration. e) validity.

Compared to a mail survey, telephone surveys have a) lower response rates. b) a slower response time. c) invalid results. d) fewer expenses. e) higher response rates.

Demand for business products is also known as ______ demand. a) derived b) corporate c) business buying d) manufacturing e) industrial

If Georgia-Pacific seeks information about trends in housing starts around the country and uses U.S. Department of Commerce reports to get this information, it is using ___________ data. a) causal b) exploratory c) primary d) laboratory e) secondary

If Little Caesars wants to determine the impact of different coupon offers on pizza unit sales, it needs to conduct a) exploratory research. b) hypothesis development. c) survey research. d) stratified sampling. e) experimental research.

If the University Bookstore wanted to understand the textbook and school supplies needs on the campus of the University of Michigan, the population of study would be a) the faculty and staff of the University of Michigan. b) all college-aged adults in the state of Michigan. c) all the people who live in Ann Arbor and surrounding areas. d) undergraduate students at the University of Michigan. e) all students, faculty, supporters, and staff of the University of Michigan.

In what type of sampling does every element have a known chance of being selected for study? a) Quota b) Stratified c) Random d) Nonprobability e) Probability

In which type of sampling design is the final choice of respondents left up to the interviewer? a) Stratified b) Random c) Cluster d) Area e) Quota

Individuals and business organizations that buy finished goods and resell them to make a profit without changing the physical characteristics of the product are classified as ___________ markets. a) consumer b) institutional c) producer d) government e) reseller

Institutional markets are a) intermediaries who resell goods to make a profit. b) federal and state government units. c) state or local government units. d) consumers who buy products for their own use. e) organizations that seek nonbusiness goals.

Marketing information systems and marketing research have changed rapidly because customers and companies around the world have been linked by a) the computer. b) the super database. c) the Interactive network. d) electronic online services. e) evolving telecommunications.

Problem location and definition is the first step toward finding a solution to a marketing problem or launching a research study. The first sign of a problem a) involves an informed guess or assumption about a certain set of circumstances. b) is usually accompanied by a cost/benefit analysis. c) most often comes in the form of customer complaints. d) is often mentioned in secondary data reports, such as trade journals. e) is typically a departure from some normal function, such as a failure to attain objectives.

Quota sampling is most commonly used in a) descriptive research. b) population research. c) surveys. d) collecting primary data. e) exploratory studies.

Research that allows marketers to make causal inferences about relationships is called a) variable research. b) relationality. c) exploratory research. d) linkage research. e) experimental research.

The National Do-Not-Call list affects the ability of marketing researchers to use a) mail surveys. b) sampling. c) personal interview surveys. d) in-home interviews. e) telephone surveys.

The following are all guidelines for questionnaire construction that support ethical marketing research except to a) allow the interviewer to introduce him/herself by name. b) indicate that this is a marketing research project. c) explain that no sales will be involved. d) state the likely duration of the interview. e) keep the name of the research company confidential.

The group of people within a business who are involved in making business buying decisions is referred to as a) the new-task team. b) negotiators. c) purchasing agents. d) deciders. e) the buying center.

The state of Montana is preparing to buy a large quantity of frozen orange juice for use in a large school district. Citrus Sweet, Inc. is in the citrus juice business but has never sold to the government market. To have a chance at getting this order, Citrus Sweet's first step must be to get her firm to a) make a presentation appointment with the state. b) quote prices to the purchasing department. c) advertise in the capital city. d) negotiate with the state. e) secure a slot on the list of qualified bidders.

The third stage in the business buying decision process is to a) evaluate product specifications to solve the problem. b) evaluate products relative to specifications. c) select and order the most appropriate product. d) evaluate product and supplier performance. e) search for products and suppliers.

Volkswagen purchases upholstery for the interiors of its vehicles from various suppliers. This upholstery must have a set of characteristics that is expressed by Volkswagen. This set is called a) descriptions. b) product features. c) criterion. d) purchase requests. e) specifications.

What is a primary difference between business and consumer buyers? a) Consumer buyers require more product information than business buyers. b) Business purchases are made by one individual whereas families make consumer purchases together. c) Repeat sales are more common with consumer buyers than business buyers. d) Consumers primarily buy inexpensive items; businesses only buy expensive items. e) Business buyers generally make larger orders than consumer buyers.

When Hunter Ceiling Fans buys electrical wire for use in producing its ceiling fans, Hunter is part of what type of market for electrical wire? a) Resale b) Wholesale c) Customer d) Consumer e) Business

When marketing researchers consider sampling techniques, they are preparing to collect ___________ data. a) census b) statistical c) internal secondary d) external secondary e) primary

When marketing researchers try to manipulate an independent variable and measure the resulting changes in a dependent variable, they are engaging in a) surveys. b) secondary data gathering. c) interviews. d) observation. e) experimentation.

When the researchers compared the average sales of Crunchy Wheat for the group that saw the promotion with the average sales for the group that did not see the promotion, in which stage of the marketing research process were they? a) Defining and locating problems b) Reporting research findings c) Developing hypotheses d) Collecting data e) Interpreting research findings

Which of the following statements about business buying is false? a) Business marketers prefer not to sell to customers who place small orders. b) Business marketers must often sell their products in large quantities to make profits. c) Most business purchases are made by committee. d) Business purchases are usually made on the basis of contracts. e) Orders in business markets tend to be smaller than those placed in consumer markets.

Which of the following statements about conducting marketing research internationally is false? a) The marketing research process may need to be modified to allow for regional differences. b) A detailed search for and analysis of secondary data can help researchers gain a greater understanding of a particular marketing environment and pinpoint issues that must be taken into account in gathering primary research data. c) Primary data gathering may have a greater chance of success if the firm employs local researchers who better understand how to approach potential respondents and can do so in their own language. d) Specific differences among countries can have a profound influence in data gathering. e) Specific differences among countries have no affect on data gathering or the marketing research process.

Which of the following survey methods has the potential to offer quick response at a lower cost than traditional mail and telephone surveys? a) Total population surveys b) In-home (door-to-door) interviews c) Focus-group interviews d) Personal interview surveys e) Online surveys

_____ that are either accepted or rejected become the primary conclusions of a marketing research study. a) Descriptions b) Issues c) Primary data d) Samples e) Hypotheses

______ buy products from manufacturers and then resell the products to other firms in the distribution system. a) Retailers b) Producers c) Distributors d) Warehouses e) Wholesalers

End use, price sensitivity, and brand loyalty are all _____ variables that can be used in market segmentation. a) psychographic b) usage c) demographic d) geodemographic e) behavioristic

Difference between market and market shares

Focus on market shares and what piece of pie you have

What can be tangible or intangible?

Goods, services and ideas which are the product

If Little Caesars wants to determine the impact of different coupon offers on pizza unit sales, it needs to conduct Select one: a. exploratory research. b. hypothesis development. c. survey research. d. experimental research. e. stratified sampling.

Hypothesis development

If Jaguar focused all its marketing efforts for the new Jaguar XKR on professionals earning more than $250,000, it would be using a(n) ___________ strategy. a) homogeneous b) undifferentiated c) multisegmented d) concentrated e) stratified

If a company extends a line of products by introducing a new product to the market, and the firm does not distinctly position this product (i.e., separately from the other products in the line), the result could be a) poor product positioning. b) product deletion. c) product repositioning. d) cannibalization. e) new-product development.

If a company segments its market on the basis of their reasons for purchasing a particular product, the primary segmentation variable in use is a) lifestyle. b) motives. c) personality. d) benefit expectations. e) personality attributes.

In the context of marketing, cannibalization means a) one company eating up another company's market share. b) sales of a new product hurts sales of the company's existing products. c) a product is past its prime and should be deleted from the product mix. d) a company illegally uses copyrights and patents from another company. e) sales of a new product may exceed sales of an older, more established product.

Individuals, groups, or organizations with one or more similar characteristics that cause them to have similar product needs are classified as a) market segments. b) heterogeneous markets. c) concentrated markets. d) demographic segments. e) strategic segments.

market orientation

an organization-wide effort that includes researching customers' needs, generating marketing intelligence for use in the organization, being responsive to customers' ever-changing wants and needs, and disseminating marketing intelligence across departments within the organization

Decreasing sales, increasing expenses, or decreasing profits Select one: a. are important considerations in designing the research project. b. should be carefully considered before collecting data. c. usually have no effect on the marketing research process. d. are examples of symptoms that point to larger problems. e. are to be expected during the marketing research process.

are examples of symptoms that point to larger problems

When marketing research shows that a group of people does not desire a particular product, the people in that group

are not in the market for that product

A change in the minimum drinking age in any given state illustrates a change in the ___________ for Miller Brewing. a) marketing mix b) marketing environment c) marketing concept d) marketing task e) product concept

A marketing manager for a small computer manufacturer is analyzing the potential effects of political, legal, sociocultural, and economic forces on the firm's operations. The marketing manager is examining the ___________ that influence(s) the firm's strategy. a)operating situation b)marketing environment c)surroundings d)economic conditions e)trends

A marketing orientation is an organization-wide effort that includes all of the following activities except a) researching customers' needs. b) focusing on the marketing department only. c) generating marketing intelligence for use in the organization. d) being responsive to customers' ever-changing wants and needs. e) disseminating marketing intelligence across departments within the organization.

A physical product you can touch is a(n) a) service. b) good. c) idea.

Customer relationship management focuses on using ___________ about customers to create marketing strategies. a)internal communication b)information c)purchasing power insights d)marketing mix knowledge e)implementation knowledge

Due to limited resources, a consumer decided to serve Hawaiian Punch to a New Year's Eve party crowd instead of Korbel champagne. As a result of this action, Korbel and Hawaiian Punch can be viewed as ___________ competitors. a) Pure b) Generic c) Total budget d) Product e) Oligopolistic

Initiatives intended to improve an organization's positive impact on society and the natural environment are called a) environmental marketing b) green marketing c) socially-responsible marketing d) energy-conscious marketing

Long-term relationships with profitable customers is the key objective of a) personal selling. b) customer relationship management. c) production oriented firms. d) e-marketing. e) distribution channels.

Marketing knowledge and skills a) are not necessary for a nonprofit organization. b) enhance consumer awareness and help provide people with satisfying goods and services.

Most marketers operate in a competitive environment of either a) oligopoly or monopoly. b) oligopoly or monopolistic competition. c) oligopoly or pure competition. d) monopoly or pure competition. e) pure competition or monopolistic competition.

Mothers Against Drunk Driving (MADD) is a group that works to change attitudes and laws about driving under the influence of alcohol. MADD primarily markets a)goods. b)ideas. c)services. d)political figures.

Rob Donaldson runs a successful wholesale business that sells equipment to restaurants throughout the Midwest. He is considering purchasing his own fleet of trucks to deliver the equipment instead of relying on a shipper as he is currently doing. This most closely represents a decision about a) which market he should target. b) the best way to distribute his products. c) how to effectively promote his business.

Technology assessment is a) measuring how much technology has been incorporated into an organization. b) trying to foresee the effects of new products and processes on the firm's operation and on society in general. c) assessing how much technology one wants to incorporate into a company in the future. d) judging how a firm's products affect society. e) weighing the cost of new technology to determine whether a firm can afford to use it.

Technology is a) the application of scientific knowledge to build products that customers desire. b) the application of knowledge and tools to solve problems and perform tasks more efficiently. c) applied sciences. d) one of the weakest marketing environment forces. e) the result of research performed primarily by universities.

The FTC can issue a cease-and-desist order, which is an injunction to a) report to the FTC immediately. b) stop doing whatever caused the complaint. c) appear before the courts. d) pay for damages caused by negligence of the firm. e) close down the firm until further notice.

The marketing concept affects a) just the marketing department. b) all organizational activities. c) only marketing and finance.

The marketing concept is a management philosophy that affects a) only marketing activities. b) all efforts of the organization. c) mainly the efforts of sales personnel. d) mainly customer relations. e) only business organizations.

The marketing concept is best defined as a) a second definition of marketing. b) a philosophy stating that an organization should try to satisfy customers' needs through a coordinated set of activities that allows the organization to achieve its goals. c) the performance of business activities that direct the flow of goods and services from producer to customer or user. d) a philosophy stating that an organization should attempt to accomplish its goals with no regard for the needs of customers.

The product variable of the marketing mix can include all of the following except a) creation of brand names. b) consumer perception of the product price. c) development of product packaging. d) warranty issues. e) repair services.

The two least common competitive structures at the opposite ends of the continuum are a) monopolies and oligopolies. b) pure competition and monopolies. c) monopolistic competition and monopolies. d) pure competition and no competition. e) oligopolies and pure competition.

Today, establishing long-term, mutually beneficial arrangements in which both the buyer and seller focus on value enhancement through the creation of more satisfying exchanges is known as a) marketing synthesis. b) relationship marketing. c) a marketing orientation. d) the marketing concept. e)strategic marketing.

What national self-regulatory organization screens ads? a) Federal Advertising Review Division b) National Advertising Review Board c) Federal Communications Commission d) Consumer Federation of America

Which category of income are marketers most interested in? a) Wealth b) Disposable income c) Discretionary income d) Total income e) Extra income

Which of the following would represent a brand competitor for Ford's Escape Hybrid sport utility vehicle? a) Honda Pilot b) Toyota's Highlander Hybrid c) Honda Civic Hybrid d) Taxi ride

______ is the degree to which an exchange helps achieve an organization's objectives. a) Controlling b) Effectiveness c) Success rate

_________ is the process of establishing performance standards, comparing actual performance with established standards, and reducing the difference between desired and actual performance. a) Internal control analysis b) Marketing control c) Market flow regulation d) Environmental market analysis

_________ of marketing plans hinges on coordination of marketing activities, motivation of marketing personnel, and effective communication within the marketing unit. a) Marketing control b) Implementation c) Organizing d) Planning e) Strategic planning

__________ competitors provide very different products that satisfy the same basic customer need. a) Brand b) Generic c) Total budget d) Product e) Marketing

A person's buying power is a function of a) disposable income. b) past income, natural resources, and financial resources. c) wages, rents, and investments. d) income, wealth, and credit. e) discretionary income.

Consumerism is a a) diverse group of individuals and organizations opposed to foreign producers that sell products in the United States that are much cheaper than those produced by U.S. manufacturers. b) social movement that is trying to encourage consumer satisfaction. c) social movement that is reorganizing the Council of Better Business Bureaus. d) diverse group of individuals and organizations attempting to protect the rights of consumers. e) social movement that provides consumers with means for expressing satisfaction and expressing their gratitude to producers.

Customer relationship management (CRM) begins its focus on customers with a) communication. b) product. c) distribution. d) information. e) promotion.

During the Industrial Revolution demand for manufactured goods was a)weak. b) nonexistent. c) declining. d) strong.

From the 1920s to the 1950s, demand for manufactured goods decreased, leading to the ______ orientation. a)production b) marketing c) revolutionary d) sales e)reduction

Heidi decided to spend some of her saved money on tickets to a Cold Play concert coming to town, and now she is planning on buying a new outfit for the concert. What type of resources is Heidi making decisions about? a) Disposable income b) Wealth c) Buying power d) Discretionary income e) Savings income

In its advertisements for Bud Light beer, Anheuser-Busch has decided to include a statement saying "Know when to say when." This is an example of which one of the following types of regulatory forces affecting marketing efforts? a) Federal regulation b) State regulation c) City regulation d) Self-regulation e) Social regulation

In today's market environment, you might pay $15 for a CD by your favorite musical artist. Approximately how much of that price goes to activities related to marketing (promotion, distribution, profit margins)? a)$1.70 b) $3.40 c) $5.10 d) $7.50 e)$12.75

Jared Bledsoe hires a local landscape firm to plant trees and shrubs in his yard. The firm plants mostly dead plants but refuses to return Jared's money or replace the dead items. Jared's best course of action would be to contact the a) police. b) Federal Trade Commission. c) Sherman Commission. d) Better Business Bureau. e) federal district court.

Marketers often speak of the "controllable" variables in the practice of marketing. Which of the following is not considered one of the controlled variables? a) Product b) Price c) Distribution d) Competition e) Promotion

Marketing managers strive to develop a marketing mix that A) minimizes marketing costs. b) matches what competitors are offering. c) best matches the abilities of the firm. d) matches the needs of the target market. e) generates the highest level sales.

Of all the federal regulatory units, the ____________ most heavily influences marketing activities. a) Food and Drug Administration (FDA) b) Federal Communications Commission (FCC) c) Environmental Protection Agency (EPA) d) Federal Trade Commission (FTC) e) Federal Power Commission (FPC)

Organizations that provide smoke-free environments or low-fat products are responding to changes in a) technology. b) the legal environment. c) demographics. d) cultural values. e) political forces.

The 1990 Nutritional Labeling and Education Act directly prohibits a) exaggerated claims made by health and fitness products. b) putting the words "cholesterol-free" on any food package. c) putting nutritional information on most food products. d) exaggerated health claims on food packages. e) the use of any health claim on food packaging.

The Internet has been used as a search engine to find information about a marketer's product or service by about ____ percent of adults in the U.S. a) 65 b) 78 c) 82 d) 91 e) 99

The accumulation of past income, natural resources, and financial resources is known as a) income b) collected income c) credit d) wealth e) savings

The best approach for a company to take when monitoring its competitors is a) watching for increases and decreases in competitors' prices and match them. b) analyzing all information that is readily available about competitors. c) sending employees to competitors' offices and factories to observe their actions. d) developing a system for gathering ongoing information about competitors. e) reading important business publications such as The Wall Street Journal.

The concept of "exchange" is fundamental to the definition of marketing. What is the best description of exchange? a) Activities that are performed primarily by producers and manufacturers b) Development of products, distribution channels, promotional strategies, and pricing objectives to satisfy customer requirements c) Transfer of products in return for monetary considerations d) Provision or transfer of goods, services, or ideas in return for something of value

The four major competitive structures are a) monopolies, oligopolies, oligopolistic monopolies, and pure competition. b) pure competition, heavy competition, moderate competition, and light competition. c) brand, product, total budget, and generic. d) oligopolies, monopolies, monopolistic competition, and pure competition. e) monopolies, limited competition, oligopolistic competition, and pure competition.

The marketing environment is best described as being a) composed of controllable variables. b) composed of variables independent of one another. c) an indirect influence on the performance of marketing activities. d) dynamic and changing. e) slow, with infrequent fluctuations.

The three basic forms that a product can take are a) markets, products, and images. b) goods, ideas, and intangibles. c) brands, services, and tangibles. d)services, ideas, and goods. e)ideas, services, and things.

Three primary methods of collecting information for environmental scanning are a) marketing research, company records, and advance orders. b) secondary sources, company records, and observation. c) executive knowledge, media, and marketing research. d) observation, secondary sources, and marketing research. e) company database, executive knowledge, and research.

What is the most important factor in distinguishing disposable income from income? a) Taxes b) Housing c) Employment levels d) Consumer spending e) Saving

When DataComp Corp., a producer of computer software, delayed the introduction of its new spreadsheet program to modify the package, its scheduled magazine advertisements announcing the new product needed to be revised. In this case, a change in the ___________ variable caused changes in the ___________ variable of the marketing mix. a) distribution; promotion b) distribution; product c) product; price d) product; promotion e) promotion; price

Which of the following agencies regulates marketing activities the most? a) Food and Drug Administration b) Federal Communications Commission c) Environmental Protection Agency d) Federal Trade Commission e) Federal Power Commission

Which of the following is most likely to be an idea marketer? a) Car salesperson b) Airline pilot c) Attorney d) Abuse counselor

Which of the following is not a reason that marketers try to maintain good relations with elected political officials? a) Political officials can influence how much a government agency purchases and from whom. b) Political officials can play key roles in helping organizations secure foreign markets. c) Political officials well disposed toward particular firms or industries are less likely to create or enforce laws and regulations unfavorable to these firms. d) Political officials can accept direct corporate campaign contributions. e) Political officials who believe that companies in a particular industry are making honest efforts to control pollution are unlikely to create and enforce highly restrictive pollution control laws over that industry.

Which of the following provides protection for and regulates brand names, brand marks, trade names, and trademarks? a) Sherman Act b) Clayton Act c) Robinson-Patman Act d) Lanham Act e) Celler-Kefauver Act

Which of the following scenarios involves the distribution element of the marketing mix? a) Deciding whether or not a certain product should continue to be sold b) Determining whether an advertising message would be more effective on television or in magazines c) Choosing between a company jet or the airlines for executive travel d) Deciding whether or not to have retail outlets in addition to a website e) Developing a new warranty policy for an existing product

Which of the following statements about self-regulatory programs is false? a) Self-regulatory programs are usually less expensive than governmental regulatory programs. b) Self-regulatory programs' guidelines generally are more realistic and operational. c) Nongovernmental self-regulatory programs have neither the tools nor the authority to enforce guidelines. d) Self-regulatory guidelines generally are stricter than governmental regulatory programs. e) When a trade association sets up industry guidelines, some firms that are in the industry but not in the trade association do not follow the guidelines.

Which of the following would not be a customer cost considered in determination of product value? a) Product's purchase price b) Time spent purchasing the product c) Effort spent purchasing the product d) Benefits received in the exchange for the products

Why are marketers interested in consumers' levels of disposable income? a) It accurately predicts future buying power. b) It increases current buying power. c) It is what is left after taxes and savings to buy luxuries with. d) It is a ready source of buying power. e) It is essential for forecasting future business trends.

___________ competitors are those that compete in the same product class, but their products have different features, benefits, and prices. a) Brand b) Generic c) Total budget d) Product e) price

Marketing is the process of: A) promoting products through personal selling and advertising to develop and maintain favorable relationships with customers and stakeholders. B) creating, distributing, promoting, and pricing products to facilitate satisfying exchange relationships with customers and to develop and maintain favorable relationships with stakeholders in a dynamic environment. C) delivering a standard of living to a society. D) creating, distributing, promoting, and pricing goods, services, and ideas to facilitate the achievement of the firm's objectives. E) focusing on customers' needs.

b) creating, distributing, promoting, and pricing products to facilitate satisfying exchange relationships with customers and to develop and maintain favorable relationships with stakeholders in a dynamic environment.

The division of a market according to what benefits consumers want from the product is called ______ segmentation.

benefit

There is some concern that marketing research has been used incorrectly by some firms. The major problem comes from __________ because the researcher wants to obtain favorable results. Select one: a. trying to be objective about views and opinions b. using an inappropriate sample c. employing large research firms, such as Gallup d. bias and distortion e. using in-house research departments

bias and distortion

The manager at a local recreational vehicle store, Off-Road Rage, believes the next two years will be difficult because of an economic recession. Using this forecast, he determines the effect on the industry's market potential and then estimates how his company's potential sales will look based on this outlook. This manager is using a _________ approach to estimating sales potential.

breakdown

Alex Wren of Owens Corning Fiberglass talks to Terry Jones, a home builder, to find out how much fiberglass insulation he intends to use in building homes during the next year. Albert then multiplies that number by the total number of builders in the territory. He is using a ___________ approach to measure sales potential.

buildup

Variables such as geographic location, type of organization, customer size, and type of product usage are used to segment ___________ markets.

business

The ability to purchase a product is a function of

buying power

Using the breakdown approach to sales potential, estimates are made

by starting with general economic conditions

According to the marketing concept, an organization should try to a) consider short-run objectives and cash flow needs before developing new products. b) define its business as "making a product." c) provide products that satisfy customers' needs and allow the organization to achieve its goals.

By offering credit and financing through its GMAC division, General Motors is trying to help consumers a) expand future buying power at the expense of current buying power. b) expand disposable income at the expense of discretionary income. c) expand current buying power at the expense of future buying power. d) expand both disposable income and wealth. e)decrease both disposable and discretionary income.

Collecting information from secondary sources such as business, government, trade, and general-interest publications plays an important role in a) environmental analysis. b) competitive forces. c) environmental scanning. d) procompetitive legislation. e) self-regulatory forces.

Companies that compete for the same limited financial resources of the same customers are known as _________ competitors. a) Brand b) Generic c) Total budget d) Product e) Oligopolistic

Companies that market products with similar features, benefits, and prices to the same customer group are known as _________ competitors. a) generic b) product c) brand d) total budget e) monopolistic

Consumer confidence and willingness to spend begins to increase during periods of _____, and marketers must remain very flexible to make the necessary adjustments. a) recession. b) prosperity. c) recovery. d) growth. e) depression.

Consumer protection legislation deals with all of the following legal concerns except a) consumer safety. b) sale of hazardous products. c) monopolistic practices. d) information disclosure. e) health claims on food packages.

Customer costs include anything the buyer must give up in order to obtain the benefits the product provides. The most obvious customer cost is a) risk b) time c) monetary price d) effort

Deciding to add gel insoles to its running shoes would be a change in the _____ element of the marketing mix for Nike. a)price b) good c) product d) promotion e) distribution

Developing the internal structure of a firm's marketing unit relates to which of the following marketing management activities? a) Marketing control b) Implementation c) Organizing d) Planning e) Managing

Environmental scanning means ___________ information about the marketing environment, whereas environmental analysis is concerned with ___________ this information. a) assessing; collecting b) assessing; interpreting c) collecting; assessing d) interpreting; observing e) gathering; observing

If in an industry, none of the many sellers could influence the price of supply of its products, this industry would be characterized as a) oligopoly b) monopoly c) pure competition d) oligopolistic competition e) monopolistic competition

In general, which of the following competitive structures is an organization least likely to operate? a) oligopoly b) monopoly c) pure competition d) oligopolistic competition e) monopolistic competition

In today's marketing environment, competitors can take on many forms. For example, Diet Coke can be seen as a competitor to Wrigley's Double Mint chewing gum. In this circumstance, these two products are described as ___________ competitors. a) Pure b) Generic c) Total budget d) Product e) Monopolistic

International Office Supplies Wholesaler charges different prices to its various customers without any legal justification. This company is in violation of the a) Sherman Act b) Clayton Act c) Robinson-Patman Act d) Lanham Act e) Celler-Kefauver Act

Making modifications to packaging or brand names involves the _____ component of the marketing mix. a)price b) good c) product d) promotion e) distribution

Marketing management is defined as a process of a) providing products that satisfy customers' needs through a coordinated set of activities. b) facilitating satisfying exchanges between an organization and its customers. c) planning, organizing, implementing, and controlling marketing activities.

Price discrimination is prohibited by the ___________ Act. a) Sherman Act b) Clayton Act c) Robinson-Patman Act d) Lanham Act e) Celler-Kefauver Act

The American automobile industry used to be dominated by "The Big Three," including General Motors, Ford, and Chrysler. However, as many more foreign competitors began influencing this market, the American companies had to modify and differentiate their products. The automobile industry moved from a(n) ______ structure to a(n) _______ structure. a) monopolistic; oligopolistic b) oligopolistic; pure competition c) oligopolistic; monopolistic competition d) monopolistic competition; pure competition e) monopolistic; monopolistic competition

The Pharmaceutical Research and Manufacturers of America sets guidelines for its member firms to follow regarding the use of unethical practices. Thus, it is engaging in a) legislation. b) lobbying. c) self-regulation. d) environmental scanning. e) trade restraint.

The equation a buyer applies to assess a product's value is a) value = monetary price - customer benefits. b) value = customer costs - customer benefits. c) value = customer benefits - customer costs.

The marketing concept is a philosophy that states that an organization should try to satisfy customers' needs and also a) increase market share. b) increase sales. c) achieve the organization's goals. d) produce high-quality products. e) coordinate its activities to increase production.

When Cisco Systems attempts to anticipate the effect of new products and processes on its own innovations, other business organizations, and society in general, the firm is engaging in a) product differentiation. b) monopolistic competition. c) technology assessment. d) distinctive promotional methods. e) innovative marketing.

When marketers define their target market, they establish a set of a) technologies. b) monopolies. c) competitors. d) government regulations. e) sociocultural forces.

Which of the following are the most frequently sentenced organizational crimes? a) False advertising and price discrimination b) Price discrimination and fraud c) Fraud and antitrust violations d) Price fixing and antitrust violations e) Fraud and price fixing

Which of the following attributes of a Toyota Scion would be most appropriate to emphasize in television commercials during an economic recession? a) Stereo system b) Prestige c) Durability d) Leg room

Which of the following is essentially an uncontrollable factor in developing a marketing mix? a) Product adaptations b) Pricing strategies c) Government regulations d) Advertising campaigns e) Retail locations

Which of the following is not an example of the implementation of the marketing concept? a) jimmy deans b) mars candy c) burger king d) microsoft e) saab

Which of the following statements about marketing environment forces is not correct? A) They influence customers by affecting their lifestyles, standards of living, and preferences and needs for products. b) They may influence customers' reactions to a firm's marketing mix. c) They fluctuate slowly and thereby create threats to a firm's marketing mix. d) They can fluctuate quickly and dramatically.

______ refers to minimizing the resources an organization must spend to achieve a specific level of desired exchanges. a) Effectiveness b) Productivity c) Efficiency d) Objectivity e)Cost cutting

cannibalization

Corporate executives often prefer marketing research findings to be put into a report Select one: a. expressing the views and beliefs of top management about the research problem. b. examining the ethical implications of implementing results from the research report. c. that exposes no deficiencies or limitations of the research process. d. that is clear, short, and simply expressed. e. full of statistical analysis with details on methods employed by the researchers.

clear, short, and simply expressed

A targeting strategy in which an organization targets a single market segment using one marketing mix is called a(n) _____ strategy.

concentrated

If Jaguar focused all its marketing efforts for the new Jaguar XKR on professionals earning more than $250,000, it would be using a(n) ___________ strategy.

concentrated

When markets are comprised of people with differing product needs, the marketing manager should use a(n) ___________ strategy.

concentrated or differentiated

marketing

creating, distributing, promoting, and pricing products to facilitate satisfying exchange relationships with customers and to develop and maintain favorable relationships with stakeholders in a dynamic environment

product variable of the marketing mix

creation of brand names, development of product packaging, warranty issues, and repair services

monetary price

customer costs include anything the buyer must give up in order to obtain the benefits the product provides. the most obvious customer cost is risk, time, monetary price, effort, availability

Several conditions must exist for market segmentation to be successful. These conditions include all of the following except

customer needs must be homogeneous

information

customer relationship management (CRM) begins its focus on customers with

all organizational activities

the marketing concept affects (choose one) just the marketing department all organizational activities only marketing and finance only production and marketing few decisions in an organization

dynamic and changing

the marketing environment is best described as being

customer

the marketing mix is built around what?

achieve the organization's goals

the marking concept is a philosophy that states that an organization should try to satisfy customers' needs and also

implementation

the part of marketing plans that hinges on coordination of marketing activities, motivation of marketing personnel, and effective communication within the marketing unit

the price charged for the product

the primary value that a marketer expects to receive from a customer in an exchange relationship

marketing control

the process of establishing performance standards, competing actual performance with established standards, and reducing the difference between desired and actual performance

Which of these statements is not true about business markets?

the purchase is always made by more than one individual

services, ideas, and goods

the three basic forms that a product can take

Which of the following is not a characteristic of a consumer market?

their purchasing decisions are always made by only one individual

The forecasting method that utilizes a firm's historical sales data to find patterns in the firm's sales volume over time is

time series analysis

The forecasting techniques that assume past sales patterns will continue into the future are all variations of

time series analysis

Pillsbury defines all purchasers of flour as its target market. What targeting strategy would be most appropriate in this case?

undifferentiated

When a firm designs a single marketing mix and directs it at an entire market for a particular product, the company is using a(n) _________ strategy.

undifferentiated

To find a target market, a firm can use the

undifferentiated strategy, the concentrated strategy, and the differentiated strategy

Which of the following is an example of a behavioristic segmentation variable?

usage rate

Through marketing newsprint to newspaper publishers and glass manufacturers that use it in packing, International Paper segments its market based on

use of product

marketing activities

used by all sizes of organizations including for-profit, nonprofit, and government agencies

government regulations

which of the following is essential an uncontrollable factor in developing a marketing mix? product adaptations, pricing strategies, government regulations, advertising campaigns, retail locations

Marketing research is best defined as Select one: a. the collecting of data from secondary sources and internal documents. b. an intuitive process for making decisions based on personal knowledge and experience to take advantage of market opportunities. c. a framework for the day-to-day management and structuring of information gathered by marketers. d. the systematic design, collection, interpretation, and reporting of information to help marketers solve specific marketing problems or take advantage of market opportunities. e. a continuous gathering of data for an organization, the systematic design, collection, to make marketing decisions take advantage of market opportunities.

d. the systematic design, collection, interpretation, and reporting of information to help marketers solve specific marketing problems or take advantage of market opportunities.

Primary data are best described as the Select one: a. data that are necessary for a correct decision. b. data that are compiled for some other purpose other than the study in question. c. data that are collected inside and outside the organization for some purpose other than the current investigation. d. data that are observed, recorded, or collected directly from subjects. e. first batch of data collected for a specific study.

data that are observed, recorded, or collected directly from subjects.

product

deciding to add gel insoles to its running shoes would be a change in which of the following elements of the marking mix for nike? price, good, product, promotion, distribution

Occupation, family size, and family life cycle are all ______ variables for segmenting consumer markets.

demographic

Segmentation variables are usually grouped into four categories:

demographic, geographic, psychographic, and behavioristic.

After a firm has identified an appropriate targeting strategy, the next step in the target market selection process is

determining segmentation variables

A survey question that requires a yes or no answer is called a Select one: a. 50-50 question. b. dichotomous question. c. bimodal question. d. qualifies. e. multiple-choice question.

dichotomous question

Procter & Gamble markets Cheer detergent to young singles and couples and Tide detergent to families. Procter & Gamble is using a(n) ___________ targeting strategy for laundry detergents.

differentiated

Volkswagen markets its Routan to large families, its R32 race car to men, and its Jetta to young singles. What targeting approach is Volkswagen using?

differentiated

In order to be considered a market, people do not have to have

discretionary income to purchase the product

marketing mix

distribution, price, promotion, and product are all elements of this

The purpose of market segmentation is to

divide a total market to enable a marketer to develop a more precise marketing mix.

strong

during the industrial revolution demand for manufactured goods was

A systematic process of assessing opportunities and resources, determining marketing objectives, and developing a marketing strategy and plans for implementation and control describes which of the following marketing management activities? a)Strategic planning b) Marketing control c) Implementation d) Organizing e) Planning

Although marketing theory supports the contrary, it is more probable that marketing budgets will be cut during periods of economic a) prosperity b) uncertainty c) recovery d) expansion e) recession

As the Industrial Revolution came to the United States, most firms operated in a(n) ___________ orientation. a) marketing b) societal c) sales d) evolutionary e) production

Changing the hours of operation for a service business involves the _____ component of the marketing mix. a)price b) good c) product d) promotion e) distribution

Consumer confidence is at a low during periods of a) recession. b) prosperity. c) recovery. d) slowdown. e) depression.

Consumers begin to become more price and value conscious during periods of a) prosperity b) uncertainty c) recovery d) expansion e) recession

Consumers buying products online have dramatically affected the ___________ variable of the marketing mix. a)price b) good c) product d) promotion e) distribution

Discretionary income is associated with all of the following except a) automobiles. b) education. C) pets. d) furniture. e) food.

In managing customer relationships, the three primary ways profits can be obtained are by a) acquiring new customers, enhancing the profitability of new customers, and shortening the duration of relationships with existing customers. b) enhancing the profitability of existing customers, eliminating customers who provide smaller profits, and finding new customers. c) extending the length of relationships with customers, cutting organizational costs, and enhancing the profitability of new customers. d) eliminating long-term customers who have decreased purchases, finding new customers, and increasing sales to existing customers. e) enhancing the profitability of existing customers, extending the duration of relationships with customers, and obtaining new customers.

Issues of inventory levels and storage costs are both concerns relating to the _____ variable of the marketing mix. a)price b) good c) product d) promotion e) distribution

J. Pitner Clothing is a medium-size specialty men's and women's clothing store in a market with many other specialty stores, department stores, and discounters. It has established a reputation for offering high-quality, fashionable merchandise with quality service. J. Pitner's competitive environment would best be characterized as a) oligopoly b) monopoly c) pure competition d) oligopolistic competition e) monopolistic competition

Mark goes to a vending machine, deposits $1.00, and receives a Sprite. Which one of the following aspects of the definition of marketing is illustrated here? a) Production conception b) Satisfaction of organizational goals c) Distribution of ideas d) Product planning e) Exchange

Marketers who attempt to influence and change the various environmental forces have a(n) _____ response to these forces. a) reactive b) inactive c) variable d) positive e) proactive

Marketing activities a) are aimed at persuading customers through advertising. b) involve mainly distribution and promotion decisions. c) and selling activities are basically the same. d) are important only when a firm is developing new products or entering new markets. e) help sell an organization's products and generate financial resources for the firm.

Marketing facilitates exchange relationships between buyers and sellers. What is marketing's intended outcome for this relationship? a) Profits for the seller b) A good bargain on the product for the buyer c) Reducing the seller's inventory d) One party having to compromise in the exchange e) Satisfaction for both the buyer and seller

One way for corporations to attempt to influence the political environment is through a) special benefits to employees. b) direct contributions to candidates. c) contributions to elected officials. d) contributions to political action committees. e) organizing political action committees.

Texas rice farmers wish to get their product into the Japanese market but are hindered by a complex maze of regulations imposed by the Japanese government. The farmers are most likely to attempt to influence which aspect of the marketing environment? a) Sociocultural b) Technological c) Competitive d) Economic e) Political

The Church of the Latter Day Saints has used advertising for many years to market its a)goods. b)services. c)experiences. d)production. e)ideas.

The application of mechanical and human efforts to either people or objects to provide intangible benefits to customers is known as a(n) a)issue. b) experience. c)idea. d) good. e) service.

The element of the marketing mix used to increase awareness of a product or company is a)communication. b)product. c) price. d) distribution. e) promotion.

The marketing concept focuses on a) achieving the goals of top executives. b) creating maximum visibility for the firm. c) maximizing sales. d) maximizing market share. e) satisfying customers' needs in a way that helps to achieve organizational objectives.

The rapid adoption of the use of the Internet has resulted in rapid changes such as the increase of distance learning, changing social networks, and concerns such as copyright and privacy issues that the government is focusing on. These effects of technology are collectively known as a) reach. b) the self-sustaining nature. c) growth. d) technological advancement. e) dynamics.

The textbook suggests that the best approach a firm can take in responding to marketing environmental forces is a) reactive. b) proactive. c) inactive. d) active. e) variable.

Total buying power declines during periods of economic a) prosperity b) uncertainty c) recovery d) expansion e) recession

When DuPont develops new carpet fibers that are highly stain-resistant and durable, it must educate consumers about the product's benefits. This calls for activity in which of the following marketing mix variables? a)communication. b)product. c) price. d) distribution. e) promotion.

When a firm has many potential competitors and tries to develop a marketing strategy to differentiate its products from the competitors' products, a(n) _______ structure exists in the competitive environment. a) oligopoly b) monopoly c) pure competition d) oligopolistic competition e) monopolistic competition

When using credit to make purchases, consumers are a) decreasing current buying power and increasing future buying power. b) increasing their present discretionary income to extend purchasing power. c) putting themselves at significant risk of financial disaster. d) forgoing the accumulation of wealth to increase current income. e) increasing current buying power at the expense of future buying power.

Which of the following best characterizes the forces of the marketing environment? a)The forces are relatively stable over time and are interrelated with one another. b)There are few overlapping aspects of these forces; therefore, a change in one is unlikely to result in a change in another. c)The various forces ensure that the marketing environment will remain fairly certain in the future. d)These forces change dramatically over time, but a change in one force is unlikely to impact another force. e)The forces change dramatically and quickly, and a change in one force is likely to affect the other forces.

________ is a customer's subjective assessment of benefits relative to costs in determining the worth of a product. a) Marketing orientation b) Monetary price c) Product assessment d) Price assessment e) Value

relationship marketing

establishing long-term, mutually beneficial arrangements in which both the buyer and seller focus on value enhancement through the creation of more satisfying exchanges

A marketer that targets customers based on marital status and the presence and age of children is using

family life cycle

If Campbell were to offer single serving "Soup for One" packages to small household markets, it would be using segmentation based on

family life cycle

one half

for most firms, the costs of marketing activities consume approximately what portion of the consumer's dollar?

sales

from the 1920s to the 1950s, demand for manufactured goods decreased, leading to what orientation?

marketing unit

functions, products, regions, types of customers, or a combination of all four organizes what?

Cosmopolitan magazine, Secret deodorant, and Eve cigarettes are all products whose marketers have used segmentation based on

gender

Justin Franklin's company is interested in locating areas where the average income is high, the average age range is 25-35 years, and the lifestyles of the people involve extreme adventures and dangerous leisure activities. His company would most likely find possible markets through ______

geodemographic segmentation

Population density and city size are _______ variables used for market segmentation.

geographic

If PepsiCo and Coca-Cola use celebrities to challenge the taste of the other firm's cola, this is referred to as ___________ positioning.

head to head

marketing activities

help sell an organization's products and general financial resources for the firm

Most markets for products are made up of individuals or groups with diverse needs for products and are called ________ markets.

heterogeneous

Toyota has learned that some people want sports cars, while others want vans, trucks, sedans, and economy cars. In this instance, Toyota has found its markets to be

heterogeneous

Compared to a mail survey, telephone surveys have Select one: a. a slower response time, but less cost b. faster response time, but less cost c. fewer expenses overall d. lower response rates but higher validity e. higher response rates, but higher costs

higher response rates, but higher costs

A market in which a large proportion of customers have similar needs for a product is called a(n) _____ market.

homogeneous

Costco believes that most of its sales are to small businesses rather than consumers -- and that women are more likely to be making the purchasing decisions. This is an example of a(n) ___________ that Costco could test through marketing research. Select one: a. hypothesis b. conceptual error c. experimental question d. sampling error e. descriptive sample

hypothesis

The first step in the target market selection process is

identifying an appropriate target strategy

$1,000

if a family spends $2,000 a month on goods and services, how much of that $2,000 goes for marketing activities?

The real value of marketing research to the organization can best be measured by Select one: a. its immediate impact on profits. b. the amount of time spent. c. how much it costs. d. improvements in the ability to make decisions. e. the increase in sales volume or market share.

improvements in the ability to make decisions

green marketing

initiatives intended to improve an organization's positive impact on society and the natural environment

distribution

issues of inventory levels and storage costs are both concerns relating to which of the following variables of the marketing mix? distribution, product, exchange, price, promotion

Which of the following is not a requirement or characteristic of a market?

large number of people

The psychographic variable that includes numerous characteristics related to people's activities, interests, and opinion is

lifestyle

customer relationship management

long-term relationships with profitable customers is the key objective of what?

buying behavior

managing customer relationships requires identifying patterns of _________ and then using that information to focus on the most promising and profitable customers

Family life cycle is most typically based on

marital status and ages of children

market density

market potential

__________ describe the similarities among potential customers within a market segment and explain the differences among people in different market segments.

market segment profiles

Individuals, groups, or organizations with one or more similar characteristics that cause them to have similar product needs are classified as

market segments

The sales forecasting method that consists of making a product available to buyers in one or more locations and measuring purchase response is

market test

Which of the following sales forecasting techniques would generally be most suitable for estimating sales of a new product?

market tests

competition

marketers often speak of the "controllable" variables in the practice of marketing. which of the following is not considered one of the controlled variables? product, price, distribution, competition, promotion

satisfaction for both the buyer and seller

marketing facilitates exchange relationships between buyers and sellers. what is marketing's intended outcome for this relationship?

matches the needs of the target market

marketing managers strive to develop a marking mix that

A study that is valid and reliable Select one: a. is difficult to produce without expert researchers. b. is expensive to implement and complete. c. measures subtle differences in the population being studied and produces almost identical results in repeated trials. d. is called a marketing research study. e. measures what it is supposed to measure and produces almost identical results in repeated trials.

measures what is supposed to measure and produces almost identical results in repeated trials

Retail-site location analyses, unique product offerings, and special advertising campaigns are all examples of the use of

micromarketing

a market segmentation approach in which firms focus precise marketing efforts on very small geographic markets

micromarketing

For demographic purposes, a mail survey sent out by the American Cancer Society asks each respondent to identify their race by choosing among a list of possibilities. This common type of question is called a(n) ____________ question. Select one: a. open-ended b. categorized c. multiple choice d. dichotomous e. optional response

multiple choice

An item on the University Book Store's survey asks respondents to tell the store, in their own words, what they like least about textbook shopping. This item would be an example of a(n) __________ question. Select one: a. dichotomous b. multiple-choice c. force-sum-choice d. open-ended e. limited-choice

open-ended

The three most commonly used psychographic segmentation variables are

personality, motives, lifestyles

exchange

provision or transfer of goods, services, or ideas in return for something of value

Which sampling design gives every member of the population an equal chance of appearing in the sample? Select one: a. Quota b. Random c. Nonprobability d. Stratified e. Poll

random

A forecasting method that predicts sales based on relationships between past sales and other variables is called

regression analysis

Katy Ramirez is a marketer for a golf equipment manufacturer. When forecasting company sales, she finds a direct association between past sales and per capita income. Which sales forecasting technique is Katy using?

regression analysis

Guess? will be spending $22 million on marketing activities next year and expects to sell 30 million pairs of jeans. These 30 million pairs represent the company's

sales forecast

In the context of marketing, cannibalization means

sales of a new product hurts sales of the company's existing products

Characteristics of individuals, groups, or organizations that are used for dividing a total market into smaller homogeneous groups are called ___________ variables.

segmentation

Age, rate of product use, location, and gender are all examples of common

segmentation variables

The objective of sampling in marketing research is to Select one: a. provide data that can be used to test the hypotheses being investigated. b. control independent variables that might influence research results. c. ensure that measures in the study are reliable. d. select representative units from a total population. e. obtain responses from as many people as possible.

select representative units from a total population

The final step in the target market selection process is

selecting specific target markets

both customers and businesses

should receive benefits from exchange relationships according to the definition of marketing

service

the application of mechanical and human efforts to either people or objects to provide intangible benefits to customers

effectiveness

the degree to which an exchange helps achieve an organization's objectives

promotion

the element of the marketing mix used to increase awareness of a product or company

Customer cost

Anything customers give up in exchange for benefits

The 5,000 households that allowed their group purchases to be scanned are a a) focus group. b) quota. c) sample. d) target market. e) population.

Which one of the following countries will not be included in the data presented in the new industry classification system that is replacing the SIC? a) Mexico b) Canada c) United States d) Japan e) All but one NAFTA country

In ___________ sampling, there is no way to calculate the likelihood that a specific element of the population being studied will be chosen. a) population b) random c) stratified d) probability e) nonprobability

The focal point of all marketing activities is A) Products B) The marketing mix C) profits D) sales E) customers

E) customers

STAR

High growth market- dominate market share

Marketing Planning

Internal and defines the assignment of responsibilities and tasks and sets schedules for implementation

DOG

Low declining market-subordinate market share

CASH COW

Low growth-dominate market share

Mission

Main thing we run decisions through (COMPASS)

True or False

Marketing activities take place in a dynamic environment?

Micromarketing is a) a market segmentation approach in which firms focus precise marketing efforts on very small geographic markets. b) developing a very specific marketing mix that will effectively meet the needs of only a small segment of the market. c) marketing efforts that are tightly controlled by high-level executives in the organization. d) a way to segment the market to meet the needs of individuals with the same motives and personality attributes. e) creating advertising that is so specific to a certain type of individual that few people outside that micromarket will respond to the message.

Pillsbury defines all purchasers of flour as its target market. What targeting strategy would be most appropriate in this case? a) Concentrated b) Differentiated c) Wide appeal d) Undifferentiated e) Clustered

Environmental scanning

Process of COLLECTING and GATHERING INFORMATION

BCG Classification (Boston consultant group matrix)

STAR-CASH COW-DOG-QUESTION MARK

A widely used system for classifying individuals on the basis of lifestyle is

VALS

Environmental analysists

We ASSESS and INTERPRET the info from environmental scanning

Which of the following companies is the best example of a service marketer? a)fedex b) sony c)abercrombie

value

a customer's subjective assessment of benefits relative to costs in determining the worth of a product

End use, price sensitivity, and brand loyalty are all _____ variables that can be used in market segmentation.

behavioristic

The maximum percentage of market potential that an individual firm can expect to obtain for a specific product is the

company sales potential

marketing knowledge and skills

enhance consumer awareness and help provide people with satisfying goods and services

Adolescents are not considered part of the market for casinos because they

have little buying power

question mark

high growth market- low market share

Cameras, counting machines, and scanners are used most often in Select one: a. surveys. b. experimentation. c. observation. d. field settings. e. secondary data gathering.

observation

how they satisfy customers

organizations should define themselves not according to the products they produce but according to

efficiency

refers to minimizing the resources an organization must spend to achieve a specific level of desired exchanges

The forces of the marketing environment include

social cultural, competitive, economic, political, legal irregulation, technological

Product positioning refers to

the decisions and activities intended to create and maintain a certain concept of the firm's product in customers' minds.

value=customer benefits-customer costs

the equation a buyer applies to assess a product's value

customers

the focal point of all marketing activities

Which of the following is the biggest drawback to using psychographic variables?

they are hard to measur

Consumers that do not own dogs are not likely to be in the market for dog food because

they do not have a need for it

abuse counselor

which of the following is most likely to be an idea marketer? car salesperson, airline pilot, attorney, abuse counselor, orthodontist

Darren uses Microsoft Excel to determine how much the responses to his survey about household decision making for toilet paper vary. Darren is in the ______ step of the marketing research process. a) interpreting research findings b) reporting research findings c) collecting data d) designing the research project e) developing a hypothesis

Designing research procedures that produce reliable marketing data means that a) others using the same procedure will get almost identical data. b) the procedure must give results that support the hypothesis. c) the procedure must not give results that contradict other research studies. d) the procedure may give results that contradict other research studies. e) sampling must be done in a completely random manner

Retail-site location analyses, unique product offerings, and special advertising campaigns are all examples of the use of a) market density. b) demographic segmentation. c) behavioristic segmentation. d) environmental segmentation. e) micromarketing.

Marketing Concept

Satisfy customers, focus what your customers want, if they're satisfied it is all part of building the relationship

production

as the industrial revolution came to the united states, most firms operated in what orientation?

the forces of the marketing environment

political, legal and regulatory, sociocultural, technological, economic, and competitive the forces change dramatically and quickly, and a change in one force is likely to affect the other forces

All the elements, individuals, or units of interest to researchers for a specific study are called the Select one: a. sample. b. population. c. focus group. d. target market. e. data set.

population

Soft Shave is a shaving cream aimed primarily at women. The activities and decisions involved in developing and maintaining Soft Shave's product concept in buyers' minds are called

product positioning

all is true except

product positioning is the customer's absolute perception of a product's attributes

Positioning a product to avoid competition may be best when the

product's performance characteristics are not significantly different from those of competing brands.

Marketing Ch.6, Marketing Chapter 8, MKTG test 2 ch 6, MKTG ch 3, Marketing 351 Chapter 1, Marketing, MKTG Chapter 1, MKTG Chapter 5, MKT 230 - chp. 5

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