MKTG303 Exam 1 Study Guide (chapters 1-8)

Marney bought a dress from a retail store. Which type of transaction was Marney participating in?

B2C

How might a technology company like Apple ensure that it behaves in a socially responsible way toward its customers?

By protecting the privacy of personal information collected on its website.

The BCG matrix considers two dimensions: ________ and ________

-market share -market growth rate

Which of the following factors, listed in a situation analysis for a major U.S. auto manufacturer, is the best example of a threat?

A New York law firm has filed a $10 million class action suit against the company on behalf of car owners whose gas tanks exploded.

Adrienne decides to add new sales representatives and increase advertising to increase sales in her existing market for her current line of security systems. Adrienne is pursuing a __________ growth strategy.

Market penetration

A friend of yours is starting a new business. She is confident that her product is superior to her competitors' and doesn't want to budget any money for marketing. You would recommend that she rethink her position on marketing for all of the following reasons except

Marketing isn't essential now, but it will be in a year or two when the product takes off.

The global athletic footwear market is expected to experience only very slow growth over the next several years. Nike is the market leader. According to Boston Consulting Group portfolio analysis, how should Nike treat its athletic shoe business?

Nike's athletic shoe business still requires some investment but is likely to produce excess resources that can be invested in other divisions of the company.

The Ethical Decision-Making Framework includes all of the following steps EXCEPT Select one: a. brainstorm and evaluate alternatives. b. identify issues. c. gather information and identify stakeholders. d. promote the firm's corporate social responsibility efforts. e. choose a course of action.

Promote the firm's corporate social responsibility efforts

Which of the following factors, listed in a situation analysis for a major U.S. auto manufacturer, is the best example of an opportunity?

Recent consumer studies have indicated that Chinese consumers prefer American cars.

Many marketing students initially overlook the importance of marketing channel management because

a lot of these activities are behind the scenes.

Over the last few months, Juan and his colleagues have analyzed the current business situation and identified target markets for his firm's personal care products. Finally, they developed the products, prices, distribution, and promotion that should appeal to each of those target markets. In doing so, Juan has also identified what he believes is an advantage his competitors cannot match. Juan and his colleagues have been developing

a marketing strategy

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

In the ethical decision-making metric, the question that asks "Would I want the person I admire most to see me doing this?" applies to the

admired observer test

Jenny, the delivery and sales representative for a beer distributor, is calling on a retailer and sees the shelves are almost empty. An unexpected sporting event held nearby resulted in a huge increase in sales. She calls her company's distribution manager and requests a special delivery for her customer. Jenny is providing the important marketing function of

alerting the logistics department when to ship products.

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.

To avoid having ethical situations become problematic for a firm, the short-term goals of each employee must

be aligned with the long-term goals of the firm.

Compared to the average company, firms with strong ethical climates tend to

be more socially responsible

Despite its vivid design, the website for Lolly's Bookstore did not seem to attract customers who lingered. In fact, most website visitors left the site before they made a purchase. Which measure does the owner need to address?

bounce rates

To become a more value-driven organization, Pokrah University is holding regular coffee-hour discussions with its students and surveying its graduates regarding students' educational needs and desires. By doing so, Pokrah University is becoming more value driven through

building relationships with customers.

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

by helping build connections between customers and firms

________ involves the process of defining the 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.

market positioning

The process of dividing the market into groups of customers with different needs, wants, or characteristics is called

market segmentation

The primary purpose of the __________ plan is to specify the marketing activities for a specific period of time.

marketing

Data about how, when, why, where, and what people buy refers to

marketing analytics

The sale of products that may damage the environment, the use of sweatshop labor, and the marketing of dangerous products are examples of A. internal, controllable marketing issues. B. issues that don't even need to be discussed in ethical firms. C.marketing issues but not ethical issues. D. marketing ethical issues. E. ethical issues but not marketing issues.

marketing ethical issues

YouTube is an example of which type of social media site?

media sharing

Marketers rely on the three types of social media: social networking sites, thought-sharing sites, and

media-sharing sites

When making decisions, managers often have to decide between doing what is beneficial for them (and possibly the firm) in the short run, and doing what is right and beneficial for the firm and for society in the long run. To address this conflict, a firm a. must evaluate its quarterly profit statement from an ethics standpoint. b. must state its long-term goals in general terms, so as to not interfere with managers' short-term goals. c. must always put society's needs ahead of the firm's needs. d. must align the short-term goals of each employee with the long-term, overriding goals of the firm. e. should adhere rigidly to legal standards in its industry.

must align the short-term goals of each employee with the long-term, overriding goals of the firm.

If a radio station holds an online contest in which you must log in to its website and submit personal details such as name, phone number, and e-mail in order to participate, the radio station is

offering an exchange

Because it was able to deliver merchandise overnight, in the required quantities and at a lower delivered cost than its competitors, Joe's Sports Shack was given exclusive rights to sell clothing with school logos for the school district. Joe's demonstrates ________ excellence.

operational

In a SWOT analysis, increasing gasoline prices would represent a potential __________ for manufacturers of electric cars.

opportunity

Of the various types of blogs, which one do marketers have the lowest level of control over?

personal blogs

E-books, in addition to being an alternative product form, provide __________ value creation since they can be downloaded via the Internet immediately when and where they are needed.

place

In recent years, cellular (mobile) service providers have worked hard to eliminate "dead zones," providing customers with service wherever they traveled. By working to make the network available in more locations, cellular service companies were focusing on __________ value creation.

place

___________ represents all the activities necessary to get the product to the right customer when that customer wants it.

place

Suppose that Nike wanted to use Facebook to increase awareness of a new line of tennis shoes. Which of the following methods would allow Nike to specifically target Facebook users who have mentioned tennis in their profiles?

placing a facebook ad

Marketers that include ethical policies and standards in the firm's mission or vision statements are introducing these concepts at which stage of the strategic marketing planning process?

planning phase

Which element of the marketing mix is most relevant to the activity "creating value"?

product

Singapore Airlines seeks to differentiate itself from competing airlines, in part through innovative design of its airplane seats and in-flight entertainment systems. Through continuous innovation in these areas, Singapore Airlines is pursuing a(n) __________ macro strategy.

product excellence

All of the following terms are generally associated with the definition of corporate social responsibility except

profit

All of the following terms are generally associated with the definition of corporate social responsibility except voluntary. stakeholders. social impact. environmental impact. profit.

profit

In delivering value, marketing firms attempt to find the most desirable balance between

providing benefits to customers and keeping costs down.

A product that is in a high-growth market but has a low market share would be classified as a ________ on the BCG matrix.

question mark

Conscious marketing encompasses all of the following overriding principles except

recognition of the company's bottom line

Which of the following strategies would a company be MOST likely to follow for a product classified as a dog in the BCGmatrix?

reducing financial support of the product

Rock-Bend Company is considering buying out a competing firm and closing most of the competitor's factories. The firm has identified the various stakeholders and their issues and gathered the available data. Everyone with an interest in the issue has engaged in brainstorming and evaluating alternatives. Management reviewed and refined the alternatives, and then chose a course of action. If the managers are not confident about the decision, they should

reexamine their alternatives

Near the end of the model year, the Move-Them-Out automobile dealership had an unusually high inventory level. The manager increased her advertising spending and gave extra incentives to its salespeople. Move-Them-Out operates as if it were in the _______ era.

sales

Near the end of the model year, the Move-Them-Out automobile dealership had an unusually high inventory level. The manager increased her advertising spending and gave extra incentives to its salespeople. Move-Them-Out operates as if it were in the __________ era.

sales-oriented

Suppose that Burger King wanted to evaluate social media content to find out how well its most recent advertising campaign was being received by consumers. This could be done using

sentiment analysis

In a process called _______, a customer visits a store to touch, feel, and even discuss a product's features with a sales associate, and then instantly compares the prices online to see whether a better deal is available.

showrooming

LinkedIn is an example of which type of social media site?

social networking

Marketing enriches society by

sponsoring charitable events.

In the BCG matrix, ________ are high share, high growth services or products. They need heavy investment to finance rapidgrowth

stars

When a pharmaceutical company develops a new medication, it typically applies for a patent in order to prevent competitors from developing copycat products for several years. Pharmaceutical companies apply for patents to establish

sustainable competitive advantage

Which of the following statements reflects the philosophy of the market-oriented era?

the customer is king

When a company that uses social media runs a contest online, it will measure its effectiveness in a variety of ways. One such measure is the conversion rate. The conversion rate for the contest promotion would be

the percentage of visitors to the page describing the contest who entered the contest.

Some discount stores put products in large bins and let consumers hunt and find bargains. The price these consumers pay includes

the value of their time and energy

When developing a social media campaign, what is unique about the copy and images to be used that is more critical with social media that other forms of IMC?

they need to be updated almost constantly

Trey sells consumer electronics. He knows his customers weigh the costs versus the benefits associated with the different options available. He decides which products to offer and what prices to charge based on the way his customers think. Trey operates as if he were in the __________ era.

value-based marketing

Manufacturers that use just-in-time manufacturing systems coordinate closely with suppliers to ensure that materials and supplies arrive just before they are needed in the manufacturing process. While just-in-time systems can offer major advantages in terms of inventory costs, they must be carefully managed. If a firm found that its just-in-time system was badly managed, leading to frequent manufacturing delays due to missing parts, this would represent a(n) __________ in a SWOT analysis.

weakness

The idea of value-based marketing requires firms to charge a price that

captures the value customers perceive that they are receiving.

In BCG portfolio analysis, products in low-growth markets that have received heavy investment and now have excess funds available to support other products are called

cash cows

In the BCG matrix, income from ________ can be used to help finance the company's question marks and stars

cash cows

________ are low growth, high share services or products in the BCG matrix

cash cows

Individuals achieve the _____________ effect when they check in, post a picture to Instagram, upload a video to YouTube, or share a link to an article they have liked on Facebook.

connected

When marketers work in controversial or polluting industries such as tobacco or fossil fuels, their central activities largely bar them from becoming

conscious marketers

Elena is the CEO of a small manufacturing firm. She is concerned with meeting the investment objectives of the firm's shareholders, and sees no value in corporate social responsibility. Elena's attitude is A. insupportable in the 21st century. B. consistent with the views of other critics of corporate social responsibility. C. typical of nearly all manufacturers. D. a reaction to regulatory directives of the U.S. government. E. unethical.

consistent with the views of other critics of corporate social responsibility

What type of analytics is used to understand what's popular and what's not on a firm's website, including page load times and site navigation?

content analytics

One important measure of social media's effectiveness is the percentage of site visitors who take the action the site owner hoped for—making a purchase, subscribing to a service, or donating money, for example. This measure is called the site's

conversion rate

Southwest Airlines operates a blog called Nuts About Southwest. A group of employees share the responsibility for posting items of potential interest to customers—for example, short videos about Southwest's travel destinations, articles (with photos) about special events, and news about airline promotions. Nuts About Southwest is an example of a

corporate blog

Amazon's latest attempt to shore up and enhance its competitive barriers by introducing a home service marketplace that may help it achieve a lasting, powerful advantage is an example of _______________ excellence.

customer

A local art gallery keeps information on its customers regarding their preferences for certain artists as well as the style of art that interests them. The gallery uses this information to inform the customers when new products arrive from their favorite artists and targets them with special promotions. In this way, the gallery is using _______ to build loyalty among its customers.

customer relationship management

Many catalog companies create special-run issues based on what customers have purchased in the past. For example, customers who frequently order bedding items like sheets and pillows receive a catalog with a larger section of bedding items than do customers who mostly order kitchen tools. This is an example of

customer relationship management

In mid-2010, Hewlett-Packard Company (HP) acquired Palm Computing Inc., a manufacturer of personal devices and smartphones. Before deciding to acquire the company, strategic planners at HP spent time thinking about how Palm and HP would "fit" together, and how the acquisition might change HP's core goals and objectives. The strategic planners were engaged in the ____________ step of the marketing planning process.

define the business mission

Ironically, while the leaders of Enron Corporation were manipulating the company's finances for their personal benefit, the company was a major donor to Houston area charities. Enron had unethical business practices, but was also Select one: a. falsifying the company's finances through charitable donations. b. practicing marketing ethics. c. creating a local ethical business climate. d. demonstrating corporate social responsibility. e. manipulating the public sentiment for its own benefit.

demonstrating corporate social responsibility

Sodexo is a corporation that manages school cafeterias, university dining halls, mess halls at military bases, concession stands at sports arenas, and other large-scale food service facilities. If Sodexo were to begin to sell individual frozen meals in supermarkets, it would be pursuing a __________ growth strategy.

diversification

CSR can be described as context-specific actions and policies, taking stakeholders' expectations into account, to achieve what is referred to as the triple bottom line. The triple bottom line includes ________ performance.

economic, social, and environmental

For marketers, media-sharing sites such as YouTube or Flickr are social media tools best used to

encourage customers to engage with the firm and experience its products.

During a SWOT analysis, a company should assess the opportunities and uncertainties of the marketplace due to changes in several factors, given the acronym CDSTEP. Which of the following is not one of these factors?

ethical

Craig sees that his company's quarterly sales and profits are significantly above projections and says, "That's great. Let's keep doing what we've been doing." Craig is ignoring the __________ step of the marketing planning process.

evaluate performance

How is the cost to companies and entrepreneurs using Google Analytics calculated?

free for everyone

What is the focus of a firm that develops a relational orientation with its customers?

gaining lifetime profitability from customer relationships

One measure of traffic from visitors on sites, the total requests for a page, is measured in units called

hits

Leah is the marketing manager for an electronics company. While on vacation in Ecuador, she visited electronics stores in the major malls in Quito, the capital city. Most of her company's products were available, except for smartphones. When she returned to work, she mentioned this observation to her international sales manager. Leah was providing the important marketing function of

identifying opportunities to expand.

Carla has been directed by her regional marketing manager to cut prices on seasonal items, place an ad in the local paper, and tell distributors to reduce deliveries for the next month. Which step of the strategic marketing planning process is Carla engaged in?

implement marketing mix and resources

A regional manager at GNC, a chain of retail stores selling nutritional supplements, is reviewing sales data after a recent in-store promotion. The data show success in some stores and limited response in others. To understand the differences between stores, the manager will probably next review the company's

implementation programs, to see if the promotion was handled consistently in the different stores.

The "Milk Life" advertising campaign, designed to increase awareness of the health benefits of milk, was intended to help market a(n)

industry

Which of the following is true with regard to mobile advertising?

it provides additional targeting context such as location, proximity of customer, and time.

It was during the market-oriented era that firms first discovered "marketing." In what timeframe did this occur?

just after WWII

Darren has developed a better type of medication vial for travelers. He is not sure how to develop a marketing program for his product, as there are a few similar ones on the market. What technique can Darren use to analyze data from his competitor's websites, particularly to learn how people search for similar products online?

keyword analysis

Companies can find out a lot about customers using sentiment analysis on sites like Facebook and Twitter, or put another way, by

listening

The elements of the social media engagement process are

listening, analyzing, and doing

Which of the following is least likely to provide a sustainable competitive advantage?

lowering prices

After a firm has identified the various stakeholders and their issues and gathered the available data, all parties relevant to the decision should engage in brainstorming and evaluation of alternatives. __________ then review and refine these alternatives, and choose a course of action. A. Managers B. The firm's lawyers C. Key customers D. Community leaders E. All stakeholders

managers

The marketing goal of getting the "right quantities to the right locations, at the right time" relates to

managing the supply chain

Abercrombie & Fitch, a clothing retailer, includes a "SHARE" link on the product pages of its website. This link encourages an Abercrombie customer to post a link (perhaps showing a new style of jeans) on Facebook or Twitter. Abercrombie & Fitch hopes that the customer's friends (who are probably very much like current customers) will click the link, visit the page, and make purchases. This is an example of a __________ growth strategy.

market penetration

Customer retention programs are based on what concept?

Customer relationships should be viewed from a lifetime value perspective rather than on a transaction-by-transaction basis.

The BCG growth-market matrix has four classifications: ________, ________, ________, and ________

Stars; cash cows; question marks; dogs