MRKT 239 Exam 1

Instead of addressing the question_______, many environmentalists and marketers believe the question should be ______.

"What should we do with our waste?", "How can we produce products without waste?"

After determining that consumers had concerns about certain ingredients that may cause health issues, Patrizzi's Pizza began offering a gluten-free pizza product. The creation of this new product was the result of what?

A market opportunity.

According to the text, marketing ethics refers to principles and standards that define what?

Acceptable conduct in marketing

All companies have a responsibility to ______ so they can provide a return on investment to their owners and investors, create jobs for the community, and contribute goods and services to the economy.

Be profitable

The practice of linking a firm's product marketing to a particular social cause on an ongoing or short-term basis is known as what?

Cause related marketing.

The marketing mix is built around the

Customer.

The focal point of all marketing activities

Customers.

Issues of inventory levels and storage costs are both concerns relating to the _____ variable of the marketing mix.

Distribution

Changing the hours of operations for a service business involves the ____________ component of the marketing mix.

Distribution.

The white hat corporation is committed to social responsibility. It is looking for a new shipping partner and has found LogiNext, one that seems to be perfect since it employs individuals with disabilities, contributes a portion of profit to the local school system, and allows its employees to work on flextime. White Hat is very interested in LogiNext's attention to social responsibility. However, its pricing is almost 12% higher than other shippers White Hat is considering. The fact that White Hat's decision has to balance the company's desire for social responsibility and investor's desires for profits is an example of a(n) _____________________ responsibility.

Economic.

What do environmentalists set as an objective for profitability?

Environmentalism should be made profitable and companies attempting to protect the environment should not have to compete with those harming it in the marketplace.

Analisa understands that even small businesses like her local catering business have certain responsibilities to society. She knows that she must abide by the laws that apply to her business and try to make a profit. What are the other obligations Analisa should know about?

Ethical and philanthropic.

T/F: A long-term view, or vision, of what the organization wants to become is called a mission proclamation.

False

T/F: A monopoly exists when a firm with many potential competitors attempts to develop a marketing strategy to differentiate its products.

False

T/F: An individual's after-tax income is called his or her discretionary income, which is used for spending and/or saving.

False

T/F: An individuals after-tax income is called his or her discretionary income, which is used for spending and/or saving.

False

T/F: An oligopoly exists when a firm offers a product that has no close substitutes, making the firm the sole source of supply.

False

T/F: Cash cows are market leaders that are growing fast, with substantial reported profits.

False

T/F: Centralized decision making may prove effective in firms that must respond quickly to fluctuations in customer demand.

False

T/F: Customer benefits include time and effort.

False

T/F: Decreases in taxes lead to decreases in disposable income.

False

T/F: Employees can easily determine what behavior is acceptable even in organizations that do not have ethics compliance programs and policies on conduct.

False

T/F: In marketing, a product can be a good or a service, but not an idea.

False

T/F: Marketing citizenship refers to an organization's obligation to maximize its positive impact and minimize its negative impact on society;

False

T/F: Marketing efforts do not involve the design and development of products.

False

T/F: Marketing strategies should be established before marketing objectives are decided.

False

T/F: Stars are profitable products that usually generate more cash than is required to maintain share.

False

T/F: The actual physical production of goods is a marketing activity.

False

T/F: The long-term health of the firm depends solely on having products that generate cash and provide acceptable reported profits.

False

T/F: The primary way to reduce the discrepancy between planned and actual performance is to rewrite the performance standard.

False

T/F: Training is an unnecessary element of communication with marketing employees.

False

The right to be informed means that consumers should be treated fairly when they complain to marketers about their products.

False

Which of the following agencies regulates marketing activities the most?

Federal Trade Commision

A market orientation is an organization-wide effort that includes all of the following activities except

Focusing just on the marketing department.

Which of the following is a characteristic of a marketing objective?

It is consistent with both business-unit and corporate strategy.

Who drafted the Consumer Bill of Rights?

John F. Kennedy

A group that has the willingness, ability, and authority to buy a product is a what?

Market

T-Mobile implemented a program of texting its customers to find out what changes they would like to see in the services provided. The firm is exhibiting characteristics associated with which of the following orientations?

Market

T-Mobile implements a program of texting its current customers to find out what changes they would like to see in the services provided. The firm is exhibiting characteristics associated with which of the following orientations?​

Market

To build long-term customer relationships, marketers are turning to

Marketing research and date analytics.

Which of the following is the most specific and detailed type of business strategy?

Marketing.

When a firm has many potential competitors and tries to develop a marketing strategy to differentiate its products from the competitors' products, a(n) ____ structure exists in the competitive environment.

Monopolistic competition.

Consumer protection legislation deals with all of the following legal concerns except what?

Monopolistic practices

For most firms, the costs of marketing activities consume approximately what portion of the consumer's dollar?

One-half

Favorable conditions in the marketplace that could produce business rewards for the organization if acted upon properly are called what?

Opportunities

McDonald's supports and funds Ronald McDonald houses for the families of terminally-ill children to stay in to be near their loved ones. McDonald's action demonstrates the fulfillment of ____ responsibility.

Philanthropic

___________ competitors are those that compete in the same product class, but their products have different features, benefits, and prices.

Product

During which stage of the business cycle is unemployment low and total income relatively high?

Prosperity.

In general, which of the following competitive structures is an organization least likely to operate?

Pure competition.

The three basics forms that a product can take are

Services, ideas, and goods.

Which of the following statements about social responsibility is correct?

Social responsibility refers to a company's obligation to maximize its positive impact and minimize its negative impact on society.

Sony's strong name recognition and solid customer demand for its televisions and game systems are two elements of the firm's what?

Strengths

Successful business organizations should take actions to convert internal weaknesses into ________ and external threats into ________.

Strengths; opportunities.

Ford Motor has frequently extolled its efforts to reduce greenhouse gas emissions from its manufacturing and its products as well as the increased fuel efficiency of its vehicles. This is an example of what?

Sustainability marketing.

Special K cereal is aimed at people concerned about their weight. These people represent the Special K

Target Market.

A marketing opportunity results from what?

The right combination of circumstances and timing that permits an organization to take action to reach a particular target market.

Coca-Cola has in recent years developed or acquired new non-cola products to appeal to changing consumer preferences for less sugar in their products. The most likely factor in this change is changes in

The sociocultural forces of the marketing environment.

Companies that compete for the same limited financial resources of the same customers are known as _______ competitors.

Total budget.

T/F: A common reason for channel stuffing is to conceal declining demand or inflate financial statement earnings.

True

T/F: A target market is a specific group of customers on whom an organization focuses its marketing efforts.

True

T/F: A target market is a specific group of individuals on whom an organization focuses it's marketing efforts.

True

T/F: An ethical issue is an identifiable problem, situation, or opportunity requiring an individual to choose from among several actions that must be evaluated as right or wrong.

True

T/F: Any time an activity causes managers or consumers to feel manipulated or cheated, a marketing ethics issue exists, regardless of the legality of that activity.

True

T/F: Corporate strategy determines the means for utilizing resources in the functional areas of the business to reach the organization's goals.

True

T/F: Financial controls will most likely be found in the performance evaluation section of the marketing plan.

True

T/F: Four dimensions of social responsibility are economic, legal, ethical, and philanthropic .

True

T/F: Many laws that directly influence marketing activities were enacted either to preserve a competitive atmosphere or to protect consumers.

True

T/F: People learn values and principles through socialization by family members, social groups, religion, and formal education.

True

T/F: Social responsibility refers to an organization's obligation to maximize its positive impact and minimize its negative impact on society;

True

T/F: Technology is the application of knowledge and tools to solve problems and perform tasks more efficiently.

True

T/F: The distribution variable in a marketing mix is directed toward making products available in the quantities desired to as many target market customers as possible and keeping the total inventory, transportation, and storage costs as low as possible.

True

T/F: The marketing environment consists of external forces that directly or indirectly influence an organization's acquisition of inputs and generation of outputs.

True

T/F: The number of firms that control the supply of a product may affect the strength of competition

True

T/F: The outcomes of a marketer's decisions and actions may be affected by the variables in the marketing environment.

True

T/F: The strength of one's buying power depends partially on the state of the economy.

True

According to the text, a market is defined as what?

a group of individuals and/or organizations that have needs for products in a product class and have the ability, willingness, and authority to purchase these products.

The marketing plan is what?

a written document detailing activities to be performed to implement and control marketing actions

Marketers primarily focus their environmental analysis on ______ competitors.

brand

Consumerism is a

diverse group of individuals and organizations attempting to protect the rights of consumers.

The first step in the strategic performance evaluation is to...

establish performance standards.

When using credit to make purchases, consumers are

increasing current buying power at the expense of future buying power.

The four major competitive structures are what?

oligopolies, monopolies, monopolistic competition, and pure competition.

Business decisions made in creating a marketing mix are...

only as good as the organization's understanding of the needs of the target market.

Today, establishing long-term, mutually beneficial arrangements in which both the buyer and seller focus on value enhancement through the creation of more satisfying exchanges is known as

relationship marketing

The marketing concept focuses on

satisfying customers' needs in a way that helps to achieve organizational objectives.

The strength of a person's "buying power" depends on economic conditions and

size of resources that can be traded in an exchange.

A strategic window is what?

temporary periods of optimum fit between the key requirements of a market and the particular capabilities of a company competing in that market

Consumerism is

the efforts of independent individuals, groups, and organizations to protect the rights of consumers

A market opportunity results from what?

the right combination of circumstances and timing that permit an organization to take action to reach a particular target market.