Marketing Test 1
True or False: A marketer can use regression analysis techniques to predict the sales of new products
false
True or False: The information yielded by market segment profiles usually is not very useful later in the marketing process.
false
A marketer that targets customers based on marital status and the presence and age of children is using
family life cycle
When using credit to make purchases, consumers are
increasing current buying power at the expense of future buying power
You believe one of the most effective ways to remind your staff about key marketing concepts and objectives is to give them desk plaques with simple phrases. You want to create a phrase that reminds them that their primary focus should be creating customer value. Which of the following phrases best tells the story of what customer value is?
"Customer Value= Customer Benefits - Customer Costs
If Julio Ruiz has an income of $30,000, pays $6,000 in rent, $1,200 in utilities, and $5,000 in taxes per year, his disposable income is
$25,000
Your company is accepting proposals from a variety of consulting firms to assist in determining how the rapid changes in technology will impact your firm's future operations and profitability. Which one of the following consulting firm proposals should you accept?
Accept Firm D's proposal to complete a technology assessment
Jason, a 17-year old high school student, wants to buy a pack of Marlboro Lights. He has the money to purchase them, but he is still not considered to be a market for the product due to his lack of ____ to buy
Authority
Because of a variety of cultural, geographic, regulatory and social issues, international marketing can pose unique challenges for the marketer. Many of these challenges can be mitigated by an effective international-oriented marketing research effort. International marketing research can help a company____________________.
Avoid product formulation errors
Jared Bledsoe hired Green Gardens, a local landscape firm to plant trees and shrubs in his front yard. The landscape is beautiful when the company is done; however, in just a few days many of the plants begin to die. When Jared complained to the manager of Green Gardens, the manager says that Jared must have done something to them that caused the plants to die, such as overwatering them. Green Gardens doesn't have any money-back guarantees. Jared is angry that he can't get a refund or replacement. At this time, Jared's best course of action would be to contact the
Better Business Bureau
The director of marketing for 3M tapes tells the rest of the management team, "When it comes to our transparent packaging tape unit, our strategy will be to use funds generated here to support our venture in the industrial bonding market." This strategy indicates that the packaging tape unit falls into which one of the following classifications?
Cash Cow
Which step in the marketing research process involves the use of data analysis and statistical techniques to help draw conclusions?
Interpreting research findings
You are an analyst in the marketing department for a major grocery store chain, and you recently submitted a report to your boss regarding potential market segments the company should consider targeting. Your boss just sent the report back to you with the following questions: What are the strengths and weaknesses of the competitors who are also targeting these markets? Does any firm dominate the market currently? Can we create a compelling marketing mix to effectively compete for business in this market segment? Based on the questions being asked, it appears your boss is using which one of the following segment evaluation approaches?
Competitive assessment approach
Tiffany's markets its exclusive jewelry and gifts to high-income individuals interested in high-quality products and a well-known brand name. It uses the same marketing mix to reach this market. Tiffany's uses a(n) ____ strategy
Concentrated Targeting
Your company is in the final stages of deciding whether to launch a new product that you have been testing for the last six months. While the CEO of your company is very optimistic about the potential for the product, he is a skeptic by nature. He has asked you to conduct one last round of market research that will give him greater confidence in the product's prospects. Which of the following types of marketing research should you conduct to satisfy the CEO's concerns?
Conclusive research
The product variable of the marketing mix can include all of the following except: Warranty Issues Consumer perception of the product price Repair services Creation of brand names Development of product packaging
Consumer perception of the product price
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
Database
The following passage is an often-expressed critique of one of the two types of decision-making structures: Another disadvantage of this structure is that the organization may become fragmented. Business units may lose their sense of team spirit and cooperation. Some business units may put their own interests ahead of those of the company as a whole. Innovative ideas that once spread through the company quickly may now remain within individual business units. Which one of the following decision-making structures is this critique referring to?
Decentralized organizational structure
Use the following to answer the questions. Paws and Claws Hotel is a full-service pet salon and boarding kennel. Paws and Claws has an interactive website where customers can directly book a grooming appointment, obedience class, or overnight accommodations for their dog or cat. Paws and Claws has several unexpected services, such as a 600-square foot swimming pool, complete with slide and dog-friendly graduated steps to help them exit the pool. Customers can also drop their dog or cat off each morning for pet day care. Paws and Claws has a pick-up and delivery service, webcams in every kennel so that pet families can view their pets while away, and pet "furniture" so that the cats and dogs can lie on sofas just like at home. Paws and Claws is also open 24 hours a day, 365 days each year so that customers can pick up their pet at any time. The cost for an overnight stay at Paws and Claws averages $50, compared to competing kennels at about $30. The day care costs are $25 for either a dog or cat. The majority of Paws and Claws' competitors don't offer the day care service, and require an two-day minimum for overnight stays. Informal discussions with customers led to the addition of pet day care and 24-hour hours of operation. Previously, Paws and Claws was more interested in competing based on its prices. Refer to Scenario 1.2. The fact that Paws and Claws is open 24 hours each day is part of the _______ marketing mix variable while the swimming pool is part of the _______ variable.
Distribution; Product
Use the following to answer the questions. Greensprings Cemetery in upstate New York, offers a full-service funeral and burial that is non-toxic to the environment. All materials used in the burial are natural and will decompose with no negative impact. Greensprings' service is relatively new in the United States, but services of this type are common in Great Britain. A typical burial in Greensprings' cemetery includes a casket made from bamboo, wicker, paper, or other natural material. There are no headstones of stone or concrete that will detract from the landscape, but trees and plants as "markers" are allowed. The cost for a burial at Greensprings is approximately $3,000, compared to about $6,000 at most traditional cemeteries. Although business was slow at first, Greensprings is now experiencing an increase in the number of burials, due to referrals and a newly-developed website. The owners of Greensprings were previously in the cemetery business, and are active conservationist and wanted to make their business more sustainable. After conducting research and finding that there were natural burial sites in Great Britain, they wanted to provide an alternative to other environmentally-conscious Americans like themselves. Refer to Scenario 1.1. The customers of Greensprings Cemeteries are most likely choosing the Greensprings business because of its _______, which is evidence of a ______.
Enviornmental Consciousness; Market orientation
Collecting information from secondary sources such as business, government, trade, and general-interest publications plays an important role in
Enviornmental Scanning
True or False: In general, when marketers focus on customers chosen for their lifetime value, they earn lower profits in future periods than when they focus on customers selected for other reasons.
False
True or False: Price is seldom used as a competitive tool
False
True or false: A market segment profile provides customers with an understanding of how a business can use its capabilities.
False
True or false: A recession is characterized by extremely high unemployment, very low wages, minimal total disposable income, and lack of consumer confidence in the economy.
False
True or false: All members of an industry are bound to follow trade association guidelines.
False
True or false: Marketing planning establishes an organizational mission and goals, corporate strategy, marketing objectives, and a marketing strategy.
False
True or false: The marketing mix consists of three major variables: product, price, and distribution.
False
true or false: In quota sampling, all elements in a population have an equal chance of appearing in the sample.
False
Meyers' Sporting Goods, a national chain, has been doing business with Soljur Sports, a manufacturer of skateboards, for several years. Recently, it came to the attention of Meyers' financial director that the average cost per Soljur Sports skateboard had substantially increased over that of the previous year. The financial director asked the marketing department if they knew what the Soljur skateboards cost at competing sporting goods stores, to see if they too were likely hit with a higher cost. The marketing department found that the Soljur skateboards were priced at $15 less in the competing store than at Meyers. The financial director found that Soljur Sports was selling a similar number of skateboards to one of Meyers' competitors for $10 less per skateboard. The attorney for Meyers' Sporting Goods immediately filed a complaint with the Federal Trade Commission. Refer to Scenario 3.1. A regular customer of Meyers Sporting Goods feels that some of its advertisements are deceptive. He responded to an ad for sale skateboards one hour after the store opened and found that none were left. Where should he file a complaint?
Federal Advertising Commission
Megan knows that whether she decides to interact with her customers in person, by phone, online, Facebook, Twitter, or by fax, that ____ should ultimately drive the marketing strategy.
Her customers
Marketing professionals understand the challenges and implications of marketing in an inter-connected, global economy. While the discipline is primarily focused on building mutually-beneficial customer relationships for the firm, it has many other positive influences on the global economy that many in the general public are not aware of. For example, marketing creates a successful economy and leads to a _______________ for people all over the world. Additionally, ______________ can promote the welfare of customers and the firm's stakeholders.
Higher standard of living; socially responsible marketing
Peter, the director of marketing at Holcomb, Inc., calls in Andrea, 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
After determining that consumers had concerns about fat and carbohydrates, Sardino's Pizza began offering a low-fat, low-carb pizza product. The creation of this new product was the result of
Market opportunity
Which of the following is the most specific and detailed type of business strategy?
Marketing
Which of the following survey methods has the potential to offer quick response at a lower cost than traditional mail and telephone surveys?
Online surveys
Carmen has been hired by a market research company to collect data about the drinking habits of 25 to 35-year old urban professionals. Carmen is to go to "happy hour" with a group of individuals and observe what type of alcoholic beverages they order, how often, and what brands. The data that Carmen will obtain is ______ and she will use ______ in its collection.
Primary: ethnographic
Toyota has developed aluminum car bodies that are 100 percent recyclable and light enough to help conserve fuel. What kind of response is this to environmental forces?
Proactive
Making modifications to packaging or brand names involves the ____ component of the marketing mix.
Product
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?
Product, price, distribution, and promotion variables
The element of the marketing mix used to increase awareness of a product or company is
Promotion
Which sampling design gives every member of the population an equal chance of appearing in the sample?
Random
Katy Ramirez is a marketer for a company that produces in-ground swimming pools. 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
From the 1920s to the 1950s, demand for manufactured goods decreased, leading to the ____ orientation.
Sales
Kristen is the new marketing manager for the footwear division of her company and is currently planning next season's product lines. She needs to gain access to data about recent purchasing patterns in the industry, but has a limited budget and time. Which type of data would be the best choice for Kristen to use in this situation?
Secondary data
The three basic forms that a product can take are
Services, Ideas, and Goods
Which of the following acts was enacted to prevent businesses from restraining trade and monopolizing markets?
Sherman Antitrust Act
Your marketing team is currently working through the target market selection process to identify which customers your firm will target with a new technology product being developed. You are currently in the process step where you must consider the target market characteristics, the product attributes, and the firm's objectives and resources. Which of the five steps in the target market selection process are you currently working on?
Step #1: Identify the appropriate targeting strategy
While shopping at the mall over the weekend, you noticed a group of young women asking shoppers if they could spare five minutes to answer some questions about their shopping experience at the mall. Given your marketing experience, you immediately recognize that these young women were conducting a marketing research project. Which step in the five-step marketing research process were they in?
Step 3: collecting data
Kraft purchased the Duracell Battery Company and now operates this division as a separate profit center within the firm. In this example, Duracell is a(n) ____ unit of Kraft.
Strategic Business
Successful business organizations should take actions to convert internal weaknesses into ____ and external threats into ____.
Strengths; opportunities
Secondary data cannot be obtained from
Surveys
A commercial for the drink SunnyD explains how nutritious it is in comparison to other, more "sugary" drinks. While children under 12 are the most likely consumers of SunnyD, the commercial is aimed at mothers. These mothers represent SunnyD's
Target Market
True or False: Achievement of the firm's overall goals is part of the marketing concept.
True
True or False: The outcomes of a marketer's decisions and actions may be affected by the variables in the marketing environment.
True
True or False: The strength of one's buying power depends partially on the state of the economy.
True
True or false: A company sales forecast is the amount of a product that a company expects to sell during a specific time period at a specified level of marketing activities.
True
True or false: A research technique is said to be reliable if it produces almost identical results in successive repeated trials.
True
True or false: An on-site computer interview is a variation of the shopping mall intercept interview.
True
True or false: Market segment profiles help determine the most desirable segment or segments in relation to the firm's strengths, weaknesses, objectives, and resources
True
True or false: One problem with using psychographic variables for segmentation purposes is that they are difficult to measure accurately.
True
True or false:When properly implemented, a good marketing strategy enables a company to achieve its business-unit and corporate objectives.
True
true or False: Customers are the focal point of all marketing activities.
True
true or false: An individual can have a high income and very little wealth
True
true or false: Many laws that directly influence marketing activities were enacted either to preserve a competitive atmosphere or to protect consumers.
True
true or false: Marketing research can be used to test a hypothesis
True
Shelby's new job with the federal government provides a comfortable income and a fairly stable income. She would like to buy a new car now that she has a job; however, Shelby hesitates to purchase a new car because she is concerned about how poor economic conditions may affect her position in the future. Shelby lacks
Willingness to spend
A framework for gathering and managing information from sources both inside and outside an organization is referred to as
a marketing information system
Your company is holding its annual five-year strategic planning conference. The purpose of the conference is to solidify the go-forward tactics and strategies to enable the company to compete effectively in its industry. You are managing this conference and the various breakout sessions that will take place. Consistent with the sequence of the traditional strategic planning process, the first breakout session should be
a session where the firm's mission and goals are established or revised
The marketing plan is
a written document detailing activities to be performed to implement and control marketing actions
Which of the following best characterizes the forces of the marketing environment? a. The forces change dramatically and quickly, and a change in one force is likely to affect the other forces. b. The forces are relatively stable over time and are interrelated with one another. c. These forces change dramatically over time, but a change in one force is unlikely to impact another force. d. There are few overlapping aspects of these forces; therefore, a change in one is unlikely to result in a change in another. e. The various forces ensure that the marketing environment will remain fairly certain in the future
a. The forces change dramatically and quickly, and a change in one force is likely to affect the other forces
Several conditions must exist for market segmentation to be successful. These conditions include all of the following except a. customers' needs for the product must be homogeneous. b. segments must be identifiable and divisible. c. the total market should be divided so that segments can be compared on sales potential, costs, and profits. d. at least one segment must have enough profit potential to justify developing and maintaining a special marketing mix for that segment. e. the company must be able to reach the chosen segment with a particular marketing mix.
a. customer's needs for the product must be homogeneous
A business advantage of the concentrated targeting strategy for any company is that it
allows a firm to develop a special marketing mix for a single market segment
The tobacco industry in the United States is dominated by three large companies. When any one of these companies changes its price on tobacco products, the other two companies quickly adjust their prices to match it. From these characteristics, the tobacco industry could best be described as
an oligopoly
Business decisions made in creating a marketing mix
are only as good as the organization's understanding of the needs of the target market
Which of the following is not a component of a marketing plan? a. Executive summary b. Marketing strategies c. Product d. Marketing implementation e. Environmental analysis
c. Product
Which of these statements is not true about business markets? a. the purchase may be made to use in production of another product b. the purchase may be made to use in general daily operations c. the purchase is always made by more than one individual d. the purchase may be made to resell the item e. they can also be referred to as organizational markets
c. the purchase is always made by more than one individual
The maximum percentage of market potential that an individual firm can expect to obtain for a specific product is the
company sales potential
Apple has made a success from anticipating what consumers would want in new technological advances, convenience, and ease of use. The introduction of the iPad was an example of a _____ for Apple, something that an organization does extremely well and may give a company an advantage over its competition. Apple has made a success from anticipating what consumers would want in new technological advances, convenience, and ease of use. The introduction of the iPad was an example of a _____ for Apple, something that an organization does extremely well and may give a company an advantage over its competition.
core competency
The Classic Hotel Group has begun to offer entire floors of rooms in its hotels that are smoke-free, adults-only, and pet-friendly. The Classic Hotel Group is responding to changes in
cultural values
GE Transportation produces locomotive engines for sale in countries around the world. After looking at the total market for locomotive engines, the company found that various rail lines wanted different types of engines. Major rail lines in the U.S. and South America wanted engines to haul heavy freight. Rail lines in Sweden and Germany were interested in a cleaner, greener locomotive engine. Rail lines operated by several Eastern European countries wanted locomotive engines for running short distances between cities in their own country. GE Transportation is currently manufacturing its GE 4400 for heavy freight, its Hybrid Eco-Engine, and its Dash 9, suited for shortline transport. Refer to Scenario 6.2. If a GE Transportation researcher analyzes monthly sales data for a four-year time frame, looking for periodic fluctuations, the researcher is doing a ____ analysis.
cycle
Your competition is beating you on price in your most important product market. In response, you decide to launch a new ad campaign focusing your customers on the price attribute of your marketing mix. You need a catchy slogan that conveys the attractiveness of your product's pricing. Which of the following slogans should you use to convey this message most effectively? a. "Growing and Protecting Your Wealth" b. "There Is No Substitute" c. "Always On Time.....Or You Don't Pay A Dime" d. "Expect More. Pay Less" e. "Every Day You Get Our Best"
d. "Expect more. Pay Less"
Colin Jackson recently purchased Blue Waters Adventures, a kayak and canoeing rental business near the Chatsworth River in Arizona. Blue Waters Adventures had been in operation for five years and was located in an ideal area. Even though the winters in the area can be cold, kayaking and canoeing activities are generally popular year-round. After two months of operation, it became clear why the previous owners had sold the business. While the business appeared to be ideally located, sales were extremely disappointing. Refer to Scenario 5.2. Colin decided to apply some of the things he had learned in his marketing research class to his business. The first thing he should do is to ___________ which will help him ______
define the problem to be researched; determine his data needs
A survey question that requires a yes or no answer is called a
dichotomous Question
GE Transportation produces locomotive engines for sale in countries around the world. After looking at the total market for locomotive engines, the company found that various rail lines wanted different types of engines. Major rail lines in the U.S. and South America wanted engines to haul heavy freight. Rail lines in Sweden and Germany were interested in a cleaner, greener locomotive engine. Rail lines operated by several Eastern European countries wanted locomotive engines for running short distances between cities in their own country. GE Transportation is currently manufacturing its GE 4400 for heavy freight, its Hybrid Eco-Engine, and its Dash 9, suited for shortline transport. Refer to Scenario 6.2. GE Transportation is most likely using a(an) ______ targeting strategy, segmenting by ________ variables.
diifferentiated; benefit expectations
The purpose of market segmentation is to
divide a total market to enable a marketer to develop a more precise marketing mix
SiriusXM Radio is concerned about how the increasing use of smart phones will affect the future sales of its satellite radio service. The company decides to gather information about the changing trends in music access and delivery to prepare for this trend. Sirius XM's process is called
enviornmental scanning
The first step in the strategic performance evaluation is to
establish performance standards
One way that Honda evaluates its product and service level is by how well it ranks on the J. D. Power & Associates Sales Satisfaction Survey. In doing so, Honda is
evaluating actual performance
The 1990 Nutrition Labeling and Education Act directly prohibits
exaggerated health claims on food packages
Jack has just joined a law firm as its purchasing agent for all supplies, equipment, and service contracts. In his previous position at another company, Jack could make decisions for any purchase up to $1 million; however, at the new law firm, he can only make decisions for purchases less than $500,000. Recently, Jack has been working with a sales representative from a computer software firm about a contract for new program to process the firm's billing statements. Jack signs the contract, even though it is for $950,000. In this case, Jack ___ part of the market for the software because _____.
is not; he does not have the authority to purchase
Safeway Foods Corporation is involved in identifying and analyzing a target market. The firm then develops a marketing mix to satisfy individuals in that market to gain long-term competitive advantages. Based on this example, Safeway is creating a
marketing Strategy
When Disney World wants to have at least 90 percent of its customers indicating they had a memorable and satisfying experience at the park hotels, this is an example of
marketing objective
Mika is the marketing research manager for a company that sells skis and other sporting equipment. His company currently has a profitable brand and a good share of the traditional ski market, but would like to enter the "extreme" category of winter sports. Mika needs to obtain information about consumer attitudes of the company's current products as well as attitudes of potential customers in the "extreme" consumer market. He does not have constraints on time, but he does have a modest budget for research. Mika should probably use _____ to obtain the data about the company's current products, and _____ to obtain information about the extreme consumers' attitudes.
online surveys; focus groups
Marketing researchers at Nike decided to test several new designs and colors of shoes with its young, urban target market. The shoe colors used in the experiment were bright yellow, light blue, bright green, red, and black. Nike repeated the particular experiment several times in different large cities and discovered that the results produced each time were nearly identical. The participants preferred the green, red, and black. However, when the shoes were produced, the sales were higher for the plain white version, the black, and red. The sales of the bright green were very low. Nike couldn't understand why the test results were consistent, but the results didn't match with the actual sales. This phenomenon would indicate that the test results were _____ but not _____.
reliable; valid
The most important reason that a firm might use a sales force forecasting survey to determine its sales forecast is
the sales staff is closer to the actual customers on a regular basis than anyone else in the organization
True or False: Promotion can help sustain interest in established products that have long been available.
true
True or False: The number of firms that control the supply of a product may affect the strength of competition.
true
True or false: Each of the marketing mix elements must work together with the others
true
True or false: For a given level of buying power, the larger the family, the greater the willingness to spend.
true