MKT 4451 Exam 1 (Ch. 1-5)
3) ________ management is the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value. A) Marketing B) Knowledge C) Operations D) Strategic E) Distribution
A) Marketing
1) Which of the following statements about marketing is TRUE? A) It is of little importance when products are standardized. B) It can help create jobs in the economy by increasing demand for goods and services. C) It helps to build a loyal customer base but has no impact on a firm's intangible assets. D) It is not needed in an Internet-fueled environment. E) It is seldom used by nonprofit organizations.
B) It can help create jobs in the economy by increasing demand for goods and services.
26) "Enriching Women's Lives" is a three-word mantra that is used by Mary Kay. This is an example of which of the following characteristics of good mission statements? A) It is focused on a limited number of goals. B) It is short, memorable, and meaningful. C) It defines the major competitive spheres in which the company will operate. D) It takes a long-term view. E) It stresses the company's major policies and values.
B) It is short, memorable, and meaningful.
29) ________ reflects a customer's judgment of a product's performance in relation to his or her expectations. A) Brand equity B) Satisfaction C) Value D) Perception E) Brand image
B) Satisfaction
55) The digital revolution has placed a whole new set of capabilities in the hands of consumers and businesses. Describe the advantages that you as a consumer have today that your parents or grandparents didn't have.
-a substantial increase in buying power -a greater variety of available goods and services -a great amount of information about practically anything -greater ease in interacting and placing and receiving orders -an increased ability to compare products and services
21) Marketers are involved in marketing 10 types of entities. List and briefly characterize these entities.
-goods -services -events -experiences -persons -places -properties -organizations -information -ideas
20) Describe the characteristics a core competency should possess.
1. it is a source of competitive advantage 2. it has applications in a wide variety of markets 3. it is difficult for competitors to imitate
6) Angelo made the decision to outsource the software components of his consulting company so he could focus on the company's ________, which are sources of competitive advantage, make a contribution to perceived customer benefits, have application in a wide variety of markets, and are difficult to imitate. A) core competencies B) infrastructure C) market-sensing processes D) fulfillment management processes E) outbound logistics
A) core competencies
11) The responses marketers seek from prospects include all of the following EXCEPT ________. A) decampment B) attention C) a purchase D) a vote E) a donation
A) decampment
25) When companies measure the number of people who are willing and able to buy their products, they are measuring ________. A) demand B) price elasticity C) real needs D) standard of living E) disposable income
A) demand
50) The success of online purchasing resulted in ________ in the delivery of products and services by intervening in the traditional flow of goods through distribution channels. A) disintermediation B) diversification C) reduced competition D) deregulation E) privatization
A) disintermediation
3) James Frank has been put in charge of gathering marketing intelligence, disseminating it within his organization, and eventually directing action on the information. Mr. Frank's task is best described as part of the ________ process. A) market-sensing B) new-offering realization C) customer acquisition D) customer relationship management E) fulfillment management
A) market-sensing
36) Chipotle engages customers through Facebook, Twitter, and other social media via its grassroots "Food with Integrity" digital strategy, which puts the focus on what it sells and where it comes from. These are examples of ________ media. A) owned B) earned C) paid D) service E) marketing
A) owned
30) Once Starbucks established its presence in thousands of cities internationally, the company sought to increase the number of purchases by existing customers with a ________ strategy that led to new in-store merchandise, including compilation CDs, and high-speed wireless access. A) product-development B) market-penetration C) diversification D) market-development E) conglomerate
A) product-development
63) Which of the four new Ps encompasses the old four Ps as well as a range of other marketing activities that might not fit well into the old view of marketing? A) programs B) processes C) promotion D) people E) performance
A) programs
51) In response to threats from such companies as Amazon.com, established manufacturers and retailers became "brick-and-click" oriented by adding online services to their existing offerings. This is known as ________. A) reintermediation B) disintermediation C) retail transformation D) e-collaboration E) new-market synchronization
A) reintermediation
32) If a marketer uses warehouses, transportation companies, banks, and insurance companies to facilitate transactions with potential buyers, the marketer is using a ________ channel. A) service B) distribution C) communication D) relationship E) standardized
A) service
49) The Body Shop, Timberland, and Patagonia behave in environmentally responsible ways that differentiate them from competitors, build consumer preference, and achieve notable sales and profit gains. This is an example of ________. A) social responsibility B) technology C) globalization D) collaboration E) goodwill
A) social responsibility
28) Marketers identify which segments of buyers present the greatest opportunity. These segments are called ________ markets. A) target B) capital C) tertiary D) demographic E) developing
A) target
66) The production concept is one of the newest concepts in business.
FALSE
29) Which of the following is an example of growth by diversification? A) a company introducing its existing products in a new market B) a company introducing new product category in a new market C) a company increases its product line in an existing market D) a company introducing a new product category in an existing market E) a company integrates backward to cut costs
B) a company introducing new product category in a new market
31) A(n) ________ is when a company might seek new businesses to purchase that have no relationship to its current technology, products, or markets. A) concentric strategy B) conglomerate strategy C) horizontal strategy D) intensive growth strategy E) integrative strategy
B) conglomerate strategy
9) Activities involved in building deeper understanding of existing consumers and what the product offerings mean to them would be a part of the ________ process. A) customer acquisition B) customer relationship management C) customer prospecting D) customer integrating management E) customer equity
B) customer relationship management
35) When a business gets to know market segments intimately and pursues either cost leadership or differentiation within the target segment, it is employing a ________ strategy. A) defined B) focus C) value-added D) competitive advantage E) customer-focused
B) focus
59) Tracy's is a chain of hair dressing salons for women. They use television, magazines, radio, and newspapers to advertise their services. The owners ensure that all communication channels deliver a common message to prospective customers. In so doing, Tracy's is practicing ________ marketing. A) internal B) integrated C) socially responsible D) global E) relationship
B) integrated
33) When a firm aims to underprice competitors and win market share, it is using a(n) ________ strategy that requires relatively less marketing skills as compared to other strategies. A) product differentiation B) overall cost leadership C) focus D) domestic customer relationship E) price skimming
B) overall cost leadership
64) At the heart of any marketing program is the firm's ________, its tangible offering to the market. A) strategy B) product C) brand D) value E) people
B) product
5) What is the second phase of the value creation and delivery sequence? A) choosing the value B) providing the value C) communicating the value D) calculating the value E) calibrating the value
B) providing the value
12) The ________ lays out the target markets and the value proposition that will be offered, based on an analysis of the best market opportunities. A) organizational plan B) strategic marketing plan C) corporate tactical plan D) corporate mission E) customer-value statement
B) strategic marketing plan
27) Companies address needs by putting forth a ________, a set of benefits that they offer to customers to satisfy their needs. A) brand B) value proposition C) deal D) marketing plan E) demand
B) value proposition
27) The ________ sphere is the number of channel levels, from raw materials to final product and distribution, in which a company will participate. A) industry B) vertical C) product/application D) competence E) market segment
B) vertical
24) When Frank buys his own house, he would like to have a home theater system and a Jacuzzi. He plans to save enough money in the next three years so that he can fulfill his wish. Frank's desire for the home theater and the Jacuzzi is an example of a(n) ________. A) need B) want C) demand D) market E) prospect
B) want
61) Which of the following statements is most consistent with the integrated marketing approach? A) A good product will sell itself. B) If left alone, consumers are inclined to purchase only inexpensive products. C) All communication to consumers must deliver a consistent message irrespective of the medium. D) In order to succeed, the main focus should be on having an efficient production process in place. E) Online marketing is less important than traditional marketing efforts.
C) All communication to consumers must deliver a consistent message irrespective of the medium.
23) ________ are basic human requirements, while ________ are the ways in which those requirements are satisfied. A) Wants; needs B) Demands; wants C) Needs; wants D) Needs; demands E) Demands; needs
C) Needs; wants
28) What are hollow corporations? A) companies that market their products through franchisees B) companies that have liabilities exceeding their assets C) companies that outsource all production to suppliers D) companies that do not have any physical presence and only operate online E) companies that are horizontally integrated
C) companies that outsource all production to suppliers
25) In the cycle of complete strategic planning, taking corrective action is a part of ________. A) planning B) implementation C) controlling D) organizing E) analyzing
C) controlling
1) The task of any business is to ________. A) create customer needs B) differentiate in terms of cost of production C) deliver customer value at a profit D) reduce competition E) communicate similar value as provided by competitors
C) deliver customer value at a profit
46) In an attempt to create greater competition and growth opportunities, countries often ________. A) increase trade barriers B) protect industries C) deregulate industries D) encourage intermediation E) reduce privatization
C) deregulate industries
34) Unlike its competitors in the online air travel industry, Travelocity provides its customers with a greater variety of services such as cruise reservations, package tours, hotel bookings, and car rentals. This is an example of a(n) ________ strategy. A) overall cost leadership B) focus C) differentiation D) diversification E) promotional
C) differentiation
60) The ultimate outcome of relationship marketing is a unique company asset called the ________, consisting of the company and its supporting stakeholders. A) brand B) supply chain C) marketing network D) value proposition E) service channel
C) marketing network
8) People in emerging countries today are becoming increasingly health conscious and are seeking healthy food choices. As a result, demand for health foods is rising steadily, creating an opportunity for marketers to exploit this ________ market. A) demographic B) business C) need D) geographic E) service
C) need
9) Four key customer markets are the consumer, business, global, and ________ market. A) demographic B) physical C) nonprofit D) product E) exclusive
C) nonprofit
11) The key to utilizing organizational core competencies is to ________ that make up the essence of the business. A) force organizational departments to justify the budgetary components B) vertically integrate and own all intermediaries C) own and nurture the resources and competencies D) emphasize global promotions E) segment the workforces
C) own and nurture the resources and competencies
7) The ________ in the value chain cover the sequence of bringing materials into the business (inbound logistics), converting them into final products (operations), shipping out final products (outbound logistics), marketing them (marketing and sales), and servicing them (service). A) operations processes B) manufacturing processes C) primary activities D) secondary activities E) tertiary activities
C) primary activities
58) Managers of ________ businesses concentrate on achieving high manufacturing efficiency, low costs, and mass distribution. A) selling-oriented B) product-oriented C) production-oriented D) marketing-oriented E) consumer-oriented
C) production-oriented
33) The ________ is the channel from raw materials to components to final products that are carried to final buyers. A) communication channel B) distribution channel C) supply chain D) service chain E) marketing chain
C) supply chain
13) Juan Garcia plans the daily promotional releases about his company's products and services. He can be described as a(n) ________ planner. A) strategic B) selective C) tactical D) niche E) operational
C) tactical
67) The selling concept holds that consumers will favor those products that offer the most quality, performance, or innovative features.
FALSE
65) ________ activities include those the company undertakes to make the product accessible and available to target customers. A) Line extension B) Segmentation C) Marketing research D) Channel E) New-product development
D) Channel
34) The actual and potential rival offerings and substitutes that a buyer might consider are referred to as the ________. A) supply chain B) global market C) value proposition D) competition E) marketing environment
D) competition
6) Soccer's World Cup is promoted aggressively to both companies and fans. This is an example of marketing a(n) ________. A) idea B) place C) luxury item D) event E) service
D) event
4) When a customer places an order at BookBox.com, the company processes the customer's payment information, sends the order to the nearest warehouse, and ships the order via FedEx. This is best described as the ________ process. A) market-sensing B) customer acquisition C) customer relationship management D) fulfillment management E) new-offering realization
D) fulfillment management
8) Which of the following can be considered a primary activity in the value chain process? A) procurement B) human resource management C) technology development D) inbound logistics E) firm infrastructure
D) inbound logistics
36) To keep their strategic alliances thriving, corporations have begun to develop organizational structures to support them and have come to view the ability to form and manage strategic alliances as core skills. This is called ________. A) value managed partnership B) decentralized partnership C) centralized partnership D) partner relationship management E) intensive growth management
D) partner relationship management
7) The "Malaysia, Truly Asia" ad campaign that showcased Malaysia's beautiful landscape and its multicultural society in order to attract tourists is an example of ________ marketing. A) event B) property C) service D) place E) idea
D) place
26) A(n) ________ need is one that the consumer is reluctant or unwilling to explicitly verbalize. A) secondary B) unstated C) delight D) secret E) stated
D) secret
2) The value delivery process can be divided into three phases, out of which "choosing the value" implies ________, which is the essence of strategic marketing. A) segmentation, developing, and delivering B) targeting, positioning, and communicating C) targeting, positioning, and delivering D) segmentation, targeting, and positioning E) researching, developing, and delivering
D) segmentation, targeting, and positioning
5) Car rental firms, hair dressers, and management consultants provide ________. A) goods B) experiences C) events D) services E) information
D) services
30) The value of an offering is described as the ________. A) price consumers are charged for a product B) cost of manufacturing a product C) degree to which consumer demand for a product is positive D) sum of the tangible and intangible benefits and costs to customers E) intangible benefits gained from a product
D) sum of the tangible and intangible benefits and costs to customers
35) The ________ environment includes the actors involved in producing, distributing, and promoting an offering. The main actors are the company, suppliers, distributors, dealers, and the target customers. A) economic B) management C) strategic D) task E) tactical
D) task
48) The three central trends in Marketing 3.0 are collaborative marketing, globalization, and ________. A) cultural relevance B) horizontal marketing C) consumer well-being D) the rise of a creative society E) sustained technological development
D) the rise of a creative society
13) Which of the following is NOT a consumer touch point? A) store layouts B) package designs C) product functions D) shipping and logistics E) All of these are touch points.
E) All of these are touch points.
32) Which of the following terms can be defined as "the shared experiences, stories, beliefs, and norms that characterize an organization"? A) organizational dynamics B) a business mission C) an ethical/value statement D) customer relationships E) corporate culture
E) corporate culture
10) For marketers, the term market refers to which of the following? A) a set of touch points such as store layouts and package designs B) a physical place where buyers and sellers gather C) a collection of buyers and sellers who transact over a particular product D) consumers and not businesses E) customer groups
E) customer groups
31) When Volvo runs ads suggesting that its cars are the safest that money can buy, it is trying to ________. A) segment the market B) provide a service C) enter a new market D) develop brand loyalty E) position its product
E) position its product
4) As economies advance, a growing proportion of the economy's activities focuses on the production of ________. A) products B) events C) experiences D) luxury goods E) services
E) services
47) Which of the three transformative forces mentioned in the chapter is associated with the Boston Consulting Group believing brand marketers must enhance their "digital balance sheets"? A) demographics B) accountability C) social responsibility D) globalization E) technology
E) technology
62) Which of the following reflects the "people" component of the marketing mix? A) the creativity, discipline, and structure brought to marketing management B) the development of new products by the marketers C) the firm's consumer-directed activities D) the right set of processes to guide activities and programs within the firm E) the internal marketing of the firm
E) the internal marketing of the firm
12) In marketing cosmetics, laundry detergent, and products like Pringles to consumers, P&G manages ________ such as eye-catching package designs and innovative product functions. A) events B) prospects C) markets D) brands E) touch points
E) touch points
10) Another way to describe a supply chain, where companies partner with specific suppliers and distributors to ensure a smooth functioning of the system, is to call it a ________. A) teamwork group B) horizontal integration C) domestic power center D) value exploration E) value delivery network
E) value delivery network
15) Services constitute the bulk of most countries' production and marketing efforts.
FALSE
15) The traditional view of marketing works best in economies with many different types of people, each with individual wants, perceptions, preferences, and buying criteria.
FALSE
16) The customer relationship management process involves all the activities related to receiving and approving orders, shipping the goods on time, and collecting payment.
FALSE
17) Attracting tourists to Wisconsin is an example of marketing properties.
FALSE
18) "Friends Don't Let Friends Drive Drunk," is an example of marketing information to an interested audience.
FALSE
19) Selling through creative advertising is the most important element in business marketing.
FALSE
2) A marketer's only concern is how best to create demand for a new product produced by his/her company. Marketing has little value for society as a whole.
FALSE
37) Wants are basic human requirements, such as food and shelter.
FALSE
38) Good mission statements should be long and clear, should emphasize on a wide range of goals, and stress on the company's major policies and values.
FALSE
38) The customer value triad consists of a combination of quality, durability, and price.
FALSE
39) If a company sought to grow by starting new businesses that have no relation to its current technology, products, or markets, the company would be using a market penetration strategy.
FALSE
40) The task environment of a firm consists of demographic, economic, natural, and technological environments, as well as the political-legal system and the social-cultural arena.
FALSE
41) The desire to eat a Philly cheesesteak, whether or not you are in the position to buy one, is an example of a demand.
FALSE
52) The overabundance of information available on the Internet has made it more difficult for consumers to compare product features and prices.
FALSE
68) The selling concept holds that consumers will prefer products that are ethical, environmentally responsible, legal, and social in the context of marketing activities and programs.
FALSE
72) Building strong brands is the marketing task where the marketer is using a reliable marketing information system to monitor the marketing environment so s/he can assess market potential and forecast demand.
FALSE
14) A short definition of marketing is "meeting needs profitably."
TRUE
14) The traditional view of marketing is that the firm makes something and then sells it.
TRUE
16) Place marketers include economic development specialists, real estate agents, commercial banks, local business associations, and advertising and public relations agencies.
TRUE
17) A principle of the value chain is that every firm is a synthesis of activities performed to design, produce, market, deliver, and support its product.
TRUE
37) A strategy is a game plan for achieving what the business unit wants to achieve.
TRUE
39) Walmart and Target stores could be part of the distribution channel for a marketer of hair care products.
TRUE
40) "What will we do if it happens?" is a question that managers typically ask while conducting a scenario analysis.
TRUE
69) Relationship marketing aims to build mutually satisfying long-term relationships with key parties.
TRUE
70) Proponents of holistic marketing consider internal marketing to be as important as marketing to consumers.
TRUE
71) A firm's tangible offering to the market includes product quality, design, features, and packaging.
TRUE
75) Identify and define the traditional four Ps. Also identify the new four Ps and the reason for developing the new interpretation.
Traditional: 1. Product 2. Price 3. Promotion 4. Place New: 1. People 2. Processes 3. Program 4. Performance
53) The marketplace isn't what it used to be. List and briefly discuss the new behaviors, opportunities, and challenges that await the marketer in the 21st century.
changing technology- e-commerce; mobile internet, web penetration, sharing information is power globalization- international trade; multiculturalism social responsibility- need to consider ethical, environmental, legal, and social context of activities dramatically changed market place- new consumers and company capabilities
42) Consumers often have many needs that are not readily obvious. Just observing their behavior inside a retail store is not enough to get a true understanding of their "needs." List and briefly describe the five types of needs that most consumers have.
stated needs- the customer wants an expensive car real needs- the customer wants a whose operating cost, not initial cost, is low unstated needs- the customer expects good service from the the dealer delight needs- the customer would like the dealer to include an onboard navigation system secret needs- the customer wants to be seen by friends as a savvy customer
List and briefly describe the five core business processes.
the market sensing process the new offering realization process the customer acquisition process the customer relationship management proces the fulfilment management process
