Midterm- Marketing Mgnt Principles Che 1-8

All of the following are basic strategies resulting from a portfolio analysis:

-Divest -Harvest -Build -Hold

All of the following are categories used in the Boston Consulting Group's portfolio matrix:

-Stars -Cash Cow -Dogs -Problem Children

All of the following are functions served by objectives:

-clarifying executives' thinking -communicating philosophies and provide direction -motivating employees -forming the basis for performance evaluation

An organization that wants to implement a market orientation would need to _______.

-implement actions that provide value to customers -establish and maintain mutually satisfying relationships with customers -determine how to deliver superior customer value -do research on its customers, competitors, and markets

All of the following are characteristics of a good objective:

-realistic -profitable -time specific -consistent

All of the following are factors in the external environment affecting marketing:

-technology -political & legal factors the competition -economic conditions

All of the following are elements of the marketing plan:

-the organization's mission statement -the target market strategy -situation analysis -the marketing mix

All of the following are common reasons why companies fail to achieve a marketing objective:

-unrealistic marketing objectives -poor implementation -changes in the environment after the objective was specified and the strategy was implemented -inappropriate marketing strategies

Which of the following is an argument used to support corporate social responsibility (CSR)?

CSR can actually be a profitable strategy

A business unit that usually generates more than it needs to maintain its market share is called a(n) ____ in the BCG portfolio matrix.

Cash Cow

Tide laundry detergent is the market leader, but overall industry growth is low in this market. Tide would be classified as a in the BCG portfolio matrix.

Cash Cow

The set of unique features of a company and its products that are perceived by the target market as significant and superior to the competition is known as a(n) _____.

Competitive advantage

An international company that needs to develop a way to compare its actual marketing results with planned results must engage in ______.

Control

__ is the concern of business for the long-range welfare of both the company and its relationships to the society within which it operates.

Corporate Social Responsibility

An organization that wants to develop a deeper understanding of its customers may optimize profitability, revenue, and customer satisfaction by focusing on highly defined and precise customer groups. This is______.

Customer Relationship Management

_____ is defined as the relationship between benefits and the sacrifice necessary to obtain those benefits.

Customer Value

Orange growers in Florida have lost millions of dollars due to hurricanes. As a result, some growers have decided to bulldoze their orange groves and put in freshwater lakes for raising shrimp, a product that has a strong popularity and is more weather resistant. Former orange growers who are now raising shrimp are pursuing a strategy.

Diversification

One of the favorite foods in Thailand is shark fin soup. A San Francisco-based organization claimed the soup made by its leading producer contained mercury poison, yet the leading producer of shark fin soup wanted to continue selling the soup because it believes it has a responsibility to its investors to be profitable. In terms of the pyramid of corporate social responsibility, this indicates that the soup manufacturer was operating at a(n) _______ responsibility level.

Economic

is defined as the collection and interpretation of information about forces, events outside the organization, and relationships that may affect the organization.

Environmental scanning

Girls between the ages of 8 and 15 years are one of the growing markets for high-end shoe manufacturers. However, podiatrists say the trend is leading to many stylish young girls with grown-up foot problems. Shoe manufacturers who develop and market adult-styled shoes to this group are NOT operating at a(n) ___ responsibility level of the pyramid of corporate social responsibility

Ethical

Which of the following statements does NOT describe ethics?

Ethics occur naturally from a person's upbringing and are not significantly changed in adulthood

is the process of gauging the extent to which marketing objectives have been achieved during the specified time period.

Evaluation

Which of the following occurs when people give up something in order to receive something they would rather have?

Exchange

___ is the process that turns a Marketing Plan into action assignments and ensures that these assignments are executed in a way that accomplishes the plan's objectives.

Implementation

Japanese law prohibits the storage of more than 50 pounds of explosive at any single site in the nation. Every night, Universal Studios Japan hosts a fireworks display. The theme park recently came under government investigation when allegations were made that the park was detonating more than 50 pounds of explosives in its nightly fireworks displays. If the allegations are true, in terms of the pyramid of corporate social responsibility, then Universal Studios Japan is not operating at a(n) responsibility level.

Legal

Which of the following is NOT a type of competitive advantage?

Management structure

In the past, Pajama-Gram marketed pajamas only to women. Now the company offers pajamas for men and children and pets, too. This is an example of a ____ strategy

Market development

Yard Whimzees, a Statesboro, Georgia, sign business, began by making wooden signs for residential use to announce births, anniversaries, and such. The company then turned to the business market by making signs for businesses. Creating signs for a new market is an implementation of a strategy.

Market development

is a strategy that attempts to attract new customers to existing products.

Market development

is a strategy of increasing market share for present products in existing markets.

Market penetration

is the strategy of increasing sales by introducing new products into new markets.

Market penetration

A business is concerned with many day-to-day activities. Some of the most important of these activities are the planning and development of a product, its ability to communicate value, its pricing policy, and the distribution strategy. These activities are all a part of ________.

Marketing

A written document that acts as a guidebook of marketing activities for the marketing manager is known as the ______.

Marketing Plan

All of the following are good reasons to study marketing EXCEPT _______

Marketing creates consumer needs

By defining its business as "printing books" instead of "empowering imaginations," a children's book publishing company would more than likely experience _______.

Marketing myopia

occurs when a business is defined in terms of goods and services rather than in terms of the benefits customers seek.

Marketing myopia

A ___ is defined as a statement of what is to be accomplished through marketing activities.

Marketing objective

Smucker's purchased Folgers Coffee in 2008. The option to buy Folgers represented a(n) ____ to Smucker's.

Opportunity

Pacific Gas and Electric (PG&E) Company has donated almost $300,000 to 58 local governments and community- based organizations for local economic development projects. Recipients of these grants include the San Benito County Economic Development Corporation's Business Outreach Program, the San Jose Conservation Corps' Hennessy Place Affordable Single-Family Housing Project, and Mariposa County's Business Development Training Program. This sort of donation indicates PG&E was operating at a(n) responsibility level of the pyramid of corporate social responsibility.

Philanthropic

Making sure products are available when and where customers want them is the job of which element of the marketing mix?

Place strategies

is the process of anticipating events and determining strategies to achieve organizational objectives.

Planning

Which of the marketing mix elements is often the most flexible?

Pricing

Before Heinz sold its 9-Lives brand cat food unit, the company identified the product as having a low market share in a high-growth market. The portfolio matrix would classify 9-Lives as a(n) _____.

Problem Child

Which of the following represents a business unit that shows rapid growth but poor profit margins?

Problem Child

Lands' End guarantees its products for as long as you own them. The company seems most concerned with which element of the marketing mix?

Product

Kraft introduced Philadelphia Ready-To-Eat Cheesecake Filling for those who do not have time to make cheesecake in the traditional manner. This is an example of a strategy.

Product development

is a marketing strategy that creates new products for present markets.

Product development

_____ is the primary tool of the Marketing Mix used by a sales-oriented organization to achieve its corporate goals

Promotion

_____ is a strategy that focuses on keeping and improving relationships with current customers

Relationship marketing

Tub King is a small company that refinishes antique claw foot bathtubs and antique sinks, and provides training for bathtub refinishing. The company's management is currently conducting a formal study of its current strengths and weaknesses by looking at the company's profit and sales histories and searching for opportunities and threats by studying consumer trends. Tub King is conducting a(n) _____.

SWOT analysis

All of the following are basic marketing mix decisions EXCEPT______.

Sales

Which of the following is the customers' evaluation of a good or service in terms of whether that good or service has met their needs and expectations?

Satisfaction

Which marketing management philosophy focuses on the question, "What do customers want and need, and how can we benefit society?"

Societal

In the Boston Consulting Group matrix, which of the following categories in the portfolio matrix is a market leader and growing fast?

Star

Russell Athletic, which is part of Warren Buffett's Berkshire Hathaway, Inc., is a market leader in sports apparel, an industry that is growing rapidly. Based on the Boston Consulting Group portfolio matrix, Russell Athletic is an example of a(n) ____ .

Star

The management process of creating and maintaining a fit between the organization's objectives and resources and the evolving market opportunities is called ______.

Strategic Planning

__ is the idea that socially responsible companies will outperform their peers by focusing on the world's social problems and viewing them as opportunities to build profit and help the world at the same time.

Sustainability

Which of the following statements best describes the typical target market of an organization?

Target markets change over time as consumers drop in or out of the market, and as tastes change

_____ is the collaborative efforts of people to achieve common objectives.

Teamwork

Which of the following statements is NOT true regarding ethics and morality?

Today's business ethics are difficult to learn because they are different from those used outside the business world.

Everyone knows the brand name Kleenex. Kleenex is what many consumers think of when they think of tissues. This widely recognized brand name is a source of _______.

a product differentiation competitive advantage

Like many other professional organizations and businesses, the American Marketing Association has developed a formal, written guideline to help its members make better ethical decisions. This document is called a _____.

code of ethics

Land O'Lakes makes a light butter with canola oil that has 60 percent less cholesterol and 50 percent less fat and calories than butter. This formulation gives the product a(n) _____.

competitive advantage

Marketing plans should be written to do all of the following EXCEPT_____.

control the elements of the external marketing environment

Which level of ethical development moves from an egocentric viewpoint toward the expectations of society?

conventional morality

For every home built by Habitat for Humanity, Whirlpool Corporation has given and continues to give free kitchen appliances to the deserving family. This donation of appliances is an example of how companies demonstrate their _________.

corporate social responsibility

Walmart realizes a ___ using its relationships with suppliers to give customers low prices and good customer service.

cost competitive advantage

Organizations with a production orientation is most likely to survive if _____.

demand for the product it produces exceeds supply

For the first several years it was available, Apple's iPhone could only be purchased through AT&T cell phone distributors and the Apple retail store. This limitation on the element of its marketing mix supported the product's competitive advantage.

distribution

The four components of the pyramid of corporate social responsibility are ______.

economic, legal, ethical, and philanthropic responsibilities

Some market-oriented organizations give employees expanded authority to solve customer problems on the spot. This is known as ____.

empowerment

The marketing concept involves _______.

focusing on customers' wants and needs so that the organization can distinguish its product (or products) from competitors' products

A sales-oriented organization defines its mission in terms of ______.

goods and services

The movement to develop and market products designed to minimize negative effects on the physical environment or to improve the environment is known as _________.

green marketing

The American Marketing Association's definition of marketing ________.

includes creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large

Which marketing management philosophy focuses on the question, "What do customers want and need?"

market

The ____ is the unique combination of product, place, promotion, and pricing strategies designed to produce mutually satisfying exchanges with a target market.

marketing mix

A statement of the organization's business based on a careful analysis of benefits sought by present and potential customers and an analysis of existing and anticipated environmental conditions is known as a(n)_____.

mission statement

The external environment _______.

must be continually monitored by marketing managers.

Yuengling is the oldest brewery in the United States. It was founded in 1827 in a time when small breweries dotted the nation. For many years, the brewery only sold in a ten-state area on the Eastern Seaboard. For over 170 years, this strategy gave the company a _______.

niche competitive advantage

The ____ is a tool for allocating resources among products or strategic business units on the basis of relative market share and market growth rate.

portfolio matrix

Anne Ross is a sales manager for Pampered Chef, a company that sells kitchen tools and other aids for cooking through party plans. She is very concerned about making sure her salespeople understand the importance of treating each customer fairly and developing long-term relationships with them. She asks that before a sale is made, the salesperson should make sure customers can afford the items and are not buying due to social pressures. Ross is most likely at the _____ stage on Kohlberg's model of ethical development.

postconventional morality

At the _____ stage of moral/ethical development, people are less concerned about how others might see them and are more concerned about how they see and judge themselves over the long run.

postconventional morality

Ethical development has been explained by Lawrence Kohlberg as having three levels. The first, most basic, and childlike level is the ___ stage

preconventional morality

Hallie is a calculating, self-centered salesperson. She looks on any sales opportunity as a "win-lose" situation and believes any legal method she can use is justified when she wins. Hallie is most likely at the _____ stage of ethical development

preconventional morality

If a company uses a sales orientation, consumer complaints would most likely result in _____.

product reinvention

Organizations with a _____ orientation focus on the internal capabilities of the organization rather than on the desires and needs of the marketplace.

production

All of the following are marketing philosophies EXCEPT _____.

profitability orientation

The _____ orientation assumes people will buy more if aggressive selling techniques are developed and used.

sales

A ___ is a study conducted by an organization to identify its internal strengths and weaknesses and also examine external opportunities and threats.

situation analysis

factors are environmental factors that include our attitudes, values, and lifestyles.

social

Novartis Corporation created the Novartis Research Institute for Tropical Diseases in Singapore. The institute is unique because it is a not-for-profit organization that focuses on the discovery of new drugs for the treatment of neglected diseases, such as dengue fever and tuberculosis. Not only is this good business, it is also _________.

socially responsible

Subgroups of a single business or the collection of related businesses within a larger organization are referred to as ______.

strategic business units

What is/are the fundamental objective(s) of all organizations?

survival, profits, and growth

An advantage that cannot be copied by the competition is called a(n) ___ competitive advantage.

sustainable

A(n) _____ is a defined group that managers feel is most likely to buy a business' product.

target market

In order to combat U.S. corporations use of illegal payments and bribes in international business dealings, Congress enacted _____.

the Foreign Corrupt Practices Act (FCPA)

A market-oriented organization defines its business in terms of_______

the benefits its customers seek

A marketing audit is a(n) ______.

thorough, systematic, periodic evaluation of the objectives, strategies, structure, and performance of the marketing organization

Companies that rely on the marketing concept and that have implemented a market orientation strategy recognize that _______.

what the customer thinks he or she is buying is what is important