MKTG 311: All sets combined

Political consultants have been using marketing research for decades to help their candidates understand

A. who makes up the voting public and how to reach them.

Over the past decade or so, marketers have begun to realize that it is best to structure a firm's customer orientation in terms of transactions rather than relationships.

False During the past couple of decades, marketers have begun to develop a relational orientation as they realize that they need to think about their customers in terms of relationships rather than transactions. In doing so, firms focus on the lifetime profitability of the relationship, not on how much money is made during each transaction.

When Glen is thirsty, he always buys a Coke. Like many consumers, Glen engages in considerable alternative evaluation when buying habitual products like his Coke.

False Habitual decision making involves little conscious effort—these are purchases that we make regularly and by habit, without even considering alternatives.

Marketing is an activity that only large firms with specialized departments can execute.

False Marketing activities can be performed by organizations of all sizes and also by individuals.

Maslow's Hierarchy of Needs is an interesting concept for psychology, but it has little relevance for marketing.

False Maslow's Hierarchy of Needs helps explain motives, which are needs or wants that are strong enough to cause someone to seek satisfaction. In many cases, satisfaction is tied to a purchase decision.

Most B2B buying situations can be categorized into three categories: new buys, structured rebuys, and automatic rebuys.

False Most B2B buying situations are categorized as either new buys, modified rebuys, or straight rebuys.

The RFP process is used by buyers to allow customer input into value creation.

False The RFP (request for proposals) process allows organizations to invite alternative vendors or suppliers to bid on supplying the organization's required needs.

An architect working for a large firm requests specific computer software to produce designs, drawings, and other technical information for his clients. The architect probably serves as a gatekeeper in the buying center.

False The architect will fill the user role; in addition, he or she is probably the initiator. The gatekeeper controls information or access, or both, to decision makers and influencers.

The four Ps of the marketing mix include product, promotion, planning, and place.

False The four Ps of the marketing mix are product, price, promotion, and place.

When a manufacturer sells truck and car parts to Toyota, this is an example of B2C marketing.

False This is an example of business-to-business (B2B) marketing. B2C marketing would involve selling cars or trucks to individual consumers.

Firms should not attempt to educate customers about products and services using social media, since customers are busy interacting with friends and will reject attempts to educate them.

False While customers may reject poorly targeted or poorly designed attempts to educate them, social media tools such as blogs, video-sharing sites, and HubSpot can be extremely effective in educating customers about the firm's offerings.

Quentin is in a group of 8 to 12 people and is being asked questions by a trained moderator. Quentin is part of an in-depth interview group.

False (focus group)

Warren is conducting a marketing research project. He is not sure what questions to ask or what types of consumers he should talk to. Therefore, Warren should begin by conducting quantitative research.

False (qualitative)

Donald is analyzing and interpreting data. In the process, he is converting data into information.

Information results from organizing, analyzing, and interpreting data and putting them into a form that is useful for decision makers.

__________ is the process by which ideas are transformed into new products and services that will help firms grow.

Innovation

Which of the following is a key hallmark of advertising?

It is a paid form of marketing communication.

Jackie works as a sales rep for a company that produces and sells steel used in building construction. Jackie is in __________ sales.

B2B Jackie sells materials used by other businesses; thus, she is in B2B sales.

Derek bought a pickup truck to transport his equipment to fishing tournaments. He also bought a trailer for his lawn maintenance business. His purchases were

B2C and B2B, respectively. The truck Derek purchased for fishing tournaments is for his personal use and was a business-to-consumer purchase. The trailer he bought for his business was a B2B purchase.

When deciding how to promote his new medical oncology center, Dr. Jones decided that he did not need to throw a large grand opening reception. Instead, he promoted the center to the internal medicine doctors in the area, who were the doctors most likely to refer patients to the center. Dr. Jones was engaged in a concentrated targeting strategy.

True A concentrated targeting strategy is one where the organization selects a single, primary target market and focuses all energies on it. In this case, the local internal medicine doctors make up a single target market.

Brenda wants a new car that will be dependable transportation and look good. She wants to satisfy both functional and psychological needs.

True A functional need relates to product performance—for example, dependable transportation. A psychological need relates to personal gratification—for example, having a car that looks good.

The greater the difference between a consumer's unsatisfied need and the desired state, the greater the need recognition will be.

True A greater discrepancy leads to a more urgent drive to satisfy the need.

Business-to-business marketing refers to the process of buying and selling goods or services to be used in the production of other goods and services for consumption by the buying organization and/or resale by wholesalers and retailers.

True B2B organizations market goods and services to other businesses but not to the ultimate consumer.

Coca-Cola launched Coke Zero to attract new customers in a segment it might not get with Diet Coke.

True Coke Zero was targeted at health-conscious men who might not want to be seen consuming a drink labeled "diet."

When the Toyota Prius first entered the marketplace, dealers kept waiting lists of people wanting one and the factories had to ramp up production and order more raw materials. This is an example of derived demand.

True Derived demand reflects the link between consumers' demand for a company's output and the company's purchase of necessary inputs to manufacture or assemble that particular output.

Direct investment offers the firm complete control over its operations in the foreign country.

True Direct investment requires a firm to maintain 100 percent ownership of its plants, operation facilities, and offices in a foreign country.

Strong supplier relations and efficient supply chains help firms such as Walmart achieve operational excellence.

True Efficiency in the supply chain is one of the primary features of an operational excellence strategy.

Firms become value driven, in part, by focusing on the competition.

True Firms become value driven by sharing information about their customers and competitors across their own organization and with other firms that help them get the product or service to the marketplace, such as manufacturers and transportation companies.

The final step of the business-to-business buying process is a formal vendor performance analysis.

True In this final step, the selected vendor's performance is evaluated in order to decide whether or not to give the vendor additional business in the future.

In value co-creation, the customer participates in the creation of a good or service, which provides additional value to the customer.

True In value co-creation, the firm and the customer work together to create the product or service. This process adds value because the product or service can be tailored to the customer's needs.

Positioning strategies generally focus either on how the product benefits the consumer or on how it is better than competitors' products.

True Positioning refers to communicating the unique value the product or service provides to its customers and how it is better than or different from competitive products.

When a good or service is promoted, the purpose of the promotion is to inform, persuade, or remind customers about the good or service.

True Promotions are generally designed to inform, persuade, or remind potential buyers about a product or service in order to influence their opinions and elicit a response.

Situational factors sometimes override psychological and social factors in the consumer decision process.

True Situational factors can lead to different decisions than the consumer would make otherwise. This is one reason why it is so difficult to predict how a consumer will behave in a specific instance.

Giant Food Stores in suburban Washington, DC, adjusts its ethnic food aisle offerings based on the ethnic groups living near each store. Giant Foods is using geodemographic segmentation.

True The segmentation approach described combines geography (the area where the store is located) with demographics (ethnic backgrounds of the residents) and so is an example of geodemographic segmentation.

Garage sales and online classified ads are examples of C2C marketing.

True These are C2C marketing scenarios, where consumers market to one another.

As manager of a local donut shop, Arnie greets his regular customers by name and often begins making their order when he sees them drive into the parking lot. Arnie knows habitual purchasers with strong store loyalty are great customers.

True These customers rarely even consider alternative brands or stores, and so are excellent customers.

Value is what you get for what you give.

True Value reflects the relationship between the benefits received and the costs.

Nordstrom, an upscale department store, has a well-known reputation for going the extra mile to serve its customers. This reputation for excellent customer service will most likely result in

a sustainable competitive advantage. This is a good example of a potential sustainable competitive advantage based on customer service (i.e., a customer excellence strategy).

Julia is considering a career in marketing. She is concerned about the image of marketers as fast-talking, high-pressure people who care only about making a sale. When reading about the core aspects of marketing, Julia is relieved to see that in marketing

all parties to an exchange should be satisfied. Marketing is about satisfying customer needs and wants. If all parties to the exchange are satisfied, that indicates that marketers are considering customers' needs as well as the company's welfare.

When Karen realized her dog had fleas, Karen was faced with

an unsatisfied need. Need recognition is the first step in the consumer buying process.

A product is __________ that can be offered through a voluntary marketing exchange.

anything of value to consumers

How does your text describe how social media firms help marketers connect with their customers?

by helping build connections between customers and firms Social media firms offer services or tools to help consumers and firms build connections. Through these connections, marketers and customers share information of all forms—from their thoughts about products or images, to uploaded pictures, music, and videos.

Business-to-business marketing involves buying and selling goods or services by all of the following except

consumers Business-to-business (B2B) marketing refers to the process of buying and selling goods or services to be used in the production of other goods and services for consumption by the buying organization and/or resale by wholesalers and retailers. When businesses sell to consumers, it is B2C marketing.

The centerpiece of the marketing environment analysis framework is

consumers. The consumer is the center of all marketing activities.

Which of the following is the definition of social media?

content distributed through online and mobile technologies to facilitate interpersonal interactions The incorrect definitions are all too narrow, covering only some aspects of social media. Social media refers to a broad range of content—video, photos, links, comments, information, music preferences, and so on—to facilitate interpersonal interactions.

The fundamental goal of marketers when creating goods, services, or combinations of both is to

create value. While some of the other answers are things that marketers and their firms have to consider, the fundamental purpose of marketing activities is to create value for consumers.

Marketing research includes all of the following except

creating data.

Marketers often use principles and theories from sociology and psychology to better understand consumers' actions and to

develop basic strategies for dealing with their behavior. Sociology and psychology have both contributed many theories to marketing knowledge. Marketers have used these theories to decipher many consumer choices and develop basic strategies for dealing with consumers' behavior.

The components of a global market assessment include all of the following except

ethnic analysis The four components of a global market assessment are economic analysis, sociocultural analysis, infrastructure and technological analysis, and an analysis of government actions or inactions.

It is not always necessary to go through the entire process for every evaluation. For instance, a firm could evaluate its performance in Step 5, and then go directly to Step 2 to conduct a situation audit without redefining its overall mission.

examine its operations and customer relations to identify significant things competitors cannot easily copy. A sustainable competitive advantage comes from doing things that add value and that are not easily imitated by competitors. The other options do not achieve this objective.

Globalization refers to the processes by which goods, services, capital, people, information, and

flow across national borders. Goods, services, capital, people, information, and ideas can all flow across national boundaries due to globalization.

Ryan knows that one of the goals of value-based marketing is to provide greater value to consumers than competitors offer. To accomplish this goal, Ryan's firm must look at everything it does

from a consumer's point of view. It is the consumer's perception of value that matters, and so the firm's plans must be considered from the consumer's point of view.

When mountain climbers purchase clothing for scaling Mount Everest, their purchases are primarily addressing __________ needs.

functional Mountain climbers need clothing that will allow them to handle the tough conditions on a Mount Everest climb. This is an example of a functional need.

In very simple words, advertising is really about

getting consumers' attention.

Every month, Dr. Combahee takes her staff to lunch and asks them to share patients' comments and concerns. Dr. Combahee uses the lunches as an informal marketing research effort intended primarily to

help her understand the needs of her customers.

Sally is in the new marketing department of a midsized lawn and garden company. She is working on the first marketing plan the firm has ever used. She has defined the mission and objectives, and she just finished a situation analysis for the firm. The next step is to

identify and evaluate opportunities by conducting segmentation, targeting, and positioning analysis. The third step of the strategic marketing planning process, following defining the mission and objectives and conducting a situation analysis, is the STP process.

Kelly is the head of marketing for a nonprofit agency that supports the arts. She just received the go-ahead from her board of directors to conduct the agency's first-ever advertising campaign. Her first step will be to

identify the target audience.

The __________ stage of the advertising campaign planning process can be described by the question, "Whom are we trying to talk to?"

identifying target audience

Whenever Valerie has a new massage therapy customer, she invites the person to be on her e-mail distribution list. In the process, in addition to exchanging her massage therapy service for payment, Valerie is gathering

information. In this case, Valerie's customer receives a massage, and she receives both payment and information (in the form of the customer's e-mail address) as part of the exchange process.

Brian is struggling with the choice of publishing his new book, How to Cook Polish Barbeque, as an e-book or a paperback. Brian is addressing which core marketing aspect?

making product decisions Since Brian is making decisions about the form his book will take, he is making product decisions. If he were deciding whether to sell it online, in bookstores, or both, it would be a "where and how" (place) decision.

Which of the following is a core aspect of marketing?

making product, place, promotion, and price decisions The four Ps are product, place, promotion, and price.

Because advertising is the most visible form of marketing,

many people think of marketing and advertising as synonymous.

Eric is a sales rep for an established building materials manufacturer. Business is good, but he is concerned that the company has spent little on new product development and has not created a new product in over five years. Without new products, Eric can market his current products only to his current customers or

market the same products to similar customers.

The sale of products that may damage the environment, the use of sweatshop labor, and the marketing of dangerous products are examples of

marketing ethical issues. These are examples of ethical issues of concern to marketers. Even in a firm with a strong ethical climate, some business opportunities that arise may raise ethical concerns and need to be considered in the context of the firm's ethical values.

Paul subscribes to an Internet service that alerts him whenever other firms in his industry are quoted in the media. Paul is using this type of marketing research primarily to

monitor his competitors.

Yvonne knows her firm must look at everything it does from a consumer's point of view. One major difficulty is that consumers' __________ change(s) over time.

needs, wants, and ability to purchase The firm must continually scan the environment, because consumers' wants and needs are not static.

For many years, Southwest Airlines distinguished itself as the low-cost airline. Now, many other low-cost competitors have entered the market. Similarly, Southwest was one of the first airlines to offer online ticketing. Now, all airlines have online ticketing. These examples suggest that

no single strategy is likely to be sufficient to build a sustainable competitive advantage. The example shows that competitors strive to copy good ideas. But that doesn't mean innovation is pointless—being the first to do something can still give you an advantage if you do it best, or if you innovate in ways that are difficult to imitate. What this example shows is that you cannot come up with a single idea, stay with it long term, and expect to sustain a competitive advantage. You must always look for new sources of advantage.

Generally, people buy one product or service instead of another because they

perceive it to be the better value for them. Value, the difference between what the customer gives and gets in an exchange, drives most consumer decision making

A __________ is a group of associated items that consumers tend to use together or think of as part of a group of similar products.

product line

For a major university, undergraduate studies, graduate studies, and professional programs would be __________ within the university's product mix.

product lines

Marketing involves all of the following except

production scheduling efforts by individuals and organizations. creating value. conducting exchanges. satisfying customer needs and wants. production scheduling Production scheduling is the responsibility of manufacturing; all other activities are part of marketing.

When a T-shirt manufacturer states, "We sell it only in black because that way we can buy plenty of black fabric and run our plant efficiently," its statement reflects the views that were popular in which era of the evolution of marketing?

production-oriented This question refers to the production-oriented era, when companies would just manufacture items without taking individuals' needs or wants into consideration.

Jami sells construction equipment. Whenever she calls on her building contractor customers, she asks if they are having any problems. In doing so, Jami is addressing which of the following core aspects of marketing?

satisfying customer needs and wants By asking about problems, Jami is asking what unmet needs the contractor might have. She hopes that her company may have products that will help meet these needs.

Many restaurants offer daily specials, appetizers, entrees, and desserts not listed on their standard menu. These daily specials primarily provide the new product benefit of

satisfying the changing needs of current and new customers.

Xavier is analyzing potential market segments. He should carefully seek potential customers who have both an interest in his products and

the ability to buy them. If Xavier selects customers with an interest in the kinds of products he offers and the ability to purchase, he can communicate the value his offerings provide and offer competitive comparisons as part of his marketing mix.

When referring to "exchange," marketers are focusing on

the trading of things of value. In terms of marketing, an exchange refers to each of the parties involved giving something and getting something in return.

One of the goals of value-based marketing is

to offer greater value than competitors offer. Value-based marketing has to do with offering the greatest possible value to consumers and offering a greater value than competitors offer.

The term social media refers exclusively to social networking sites like Facebook.

False

The terms external secondary data and syndicated data mean the same thing.

False

One of the benefits of marketing research is it reduces the uncertainty under which managers make decisions.

True

The _______ provides a detailed, multipronged "Statement of Ethics" that can serve as a foundation for marketers by emphasizing how marketers serve not only their organizations but also act as stewards of society.

American Marketing Association The American Marketing Association (AMA) provides a detailed, multipronged "Statement of Ethics" that can serve as a foundation for marketers, emphasizing that "As marketers...we not only serve our organizations but also act as stewards of society in creating, facilitating and executing the transactions that are part of the greater economy."

Customers are more likely to talk about service that exceeded their expectation than about service that did not meet their expectation.

False Consumers are more likely to complain to others about bad experiences than to share praise about good ones.

Business-to-business marketing refers to buying and selling goods or services to consumers.

False Business-to-business marketing refers to the process of buying and selling goods or services to be used in the production of other goods and services for consumption by the buying organization and/or resale by wholesalers and retailers.

The larger and more sophisticated the channel member, the more likely that it will use supply chain intermediaries.

FALSE

A survey of marketing officers reported that the most frequently observed type of unethical behavior was false or misleading advertising.

FALSE Although false/misleading ads were one category of often-observed unethical behavior, the most commonly reported behaviors were high-pressure, misleading, or deceptive sales tactics.

Consumer packaged-goods companies such as Procter & Gamble, PepsiCo, and Kraft typically seek an exclusive distribution strategy.

Fal

Though a picture may be worth a thousand words, the most important facet of encoding is not what is received but what is sent.

Fal

Briena is looking at the results of a syndicated study conducted two years ago. Briena is looking at primary data.

False

Data that have been collected prior to the start of the current research project are considered primary data.

False

Marketing research should be used only to produce favorable recommendations for senior management to consider.

False

Good marketing is not a random activity.

TRUE Good marketing requires thoughtful planning.

The marketing profession has been singled out as the root cause of a host of ethical problems in business.

TRUE Marketing ethical lapses have led to problems such as unethical advertising and the promotion of shoddy products.

To maximize potential, segments and target markets can and should be defined by more than just geography.

This is correct. Just as firms adjust their products and services to meet the needs of national target markets, they must alter their marketing mix to serve the needs of global markets.

In the communication process of marketing communications, the marketing department often functions in the role of transmitter.

Tru

Manufacturers might use selective distribution by allowing only a few selected retail customers in a territory to sell its products.

Tru

A major advantage of primary data collection is that it can be tailored to fit the pertinent research needs.

True

Before conducting marketing research, it is important to establish in advance exactly what problem needs to be solved.

True

For each target market, General Imaging Corporation, a manufacturer of imaging equipment, will engage in positioning by adjusting its marketing mix variables in order to give customers

a clear, distinctive, and desirable understanding of their products relative to competing products. Positioning is the process of defining marketing mix variables so that target customers have a clear, distinctive, desirable understanding of what the product does or represents in comparison with competing products.