Principles of Marketing Exam 1
Which of the following characterizes the relationship between marketing and exchange? A buyer and seller trade things of value, leaving each better off than before. A buyer and seller work together to neither increase nor decrease net satisfaction. A seller determines the best way to maximize his profit while minimizing buyer value. A buyer maneuvers a seller into providing maximum value for the lowest price.
A buyer and seller trade things of value, leaving each better off than before.
A firm can begin to implement the marketing mix immediately after ____________
After it has finished segmentation, targeting, and positioning
What are components of culture? Economic situation Beliefs Morals Customs of a group of people
Beliefs, Morals, Customs of a group of people
Price
Capturing value
Promotion
Communicating value
Which of these factors is NOT a macro-environmental factor that directly influences a firm?
Competition
At the center of all analyses of the marketing environment is the ___________ and his or her specific behavior and attitudes.
Consumer
Which of the following is an example of loyalty to a company in a consumer's daily life?
Continuing to shop at Dunkin' Donuts even if Starbucks opens more convenient locations and offers slightly lower prices.
If a car company collaborated with a sheet metal supplier, the car company would be the supplier's ______.
Corporate partner
Product
Creating Value
_________ is defined as the shared meanings, beliefs, morals, values, and customs of a group of people.
Culture
Which entity does NOT market to the other entity?
Customers to businesses
Marketing is the activity, set of institutions, and processes that create, capture, communicate, and ______ value.
Deliver
Place
Delivering value
When was the consumer "king"?
During the market-oriented era
A core aspect of marketing, borrowed from economics, includes an __________, which is a transaction in which things of value are traded by buyers and sellers.
Exchange
Which company would likely NOT lose too much money if marketing was discontinued?
True or false: Customers generally prefer talking to a salesperson when they need information over searching on the Internet.
False
True or false: Firms that use multiple strategies to build a sustainable competitive advantage have difficulty maintaining long-term success.
False
True or false: The purpose of a marketing strategy is to maximize short-term profits.
False
What is the name for a group of individuals who are of the same generation?
Generational cohort
Firms achieve operational excellence through which of the following? (Select all that apply.) Strong relationships with suppliers Efficient operations Good supply chain management Reducing focus on human resources
Good supply chain management Strong relationships with suppliers Efficient operations
Which events helped create a situation in which manufacturers produced more than customers could buy? (Select all that apply.)
Great Depression World War II
If a car manufacturer wanted to segment its marketplace it would ______. (Select all that apply.) divide consumers into groups based on their incomes. identify customer needs for different types of cars (such as sports cars, SUVs, and family sedans). offer the same car model to all consumers in the marketplace.
Identify customer needs for different types of cars (such as sports cars, SUVs, and family sedans). Divide consumers into groups based on their incomes.
During which step of the marketing plan do marketers make important decisions about how they will allocate their scarce resources to their various products and services?
Implement marketing mix
______ refers to an increase in the prices of goods and services and a decline in purchasing power.
Inflation
Which of the following are considered aspects of the physical environment? (Select all that apply.) Living organisms Land Competitors Water
Living organisms, Land, Water
Which word best describes the social, political, economic, and technological factors with which marketers interact?
Macro-environment
In portfolio analysis, ______. (Check all that apply.) Management develops the marketing mix for each SBU Firms typically perform the task for the entire company as a unit Management allocates its resources to products with the greatest potential to be profitable Management evaluates the firm's various products and businesses
Management allocates its resources to products with the greatest potential to be profitable Management evaluates the firm's various products and businesses
When a firm has moved beyond a production or selling orientation and attempts to discover and satisfy its customers' needs and wants, the firm is ______.
Market Oriented
Which of the following is NOT one of the four major growth strategies? Market analysis Market development Market penetration Product development
Market analysis
A strategy that employs existing products or services to reach new market segments is called ______.
Market development
A ______ is a written document that includes the current marketing situation, specified objectives and strategies, action programs, and projected income statements.
Marketing Plan
What is NOT an example of customer loyalty? Only purchasing dresses at Anthropolgie Only purchasing light fixtures at Home Depot Only purchasing organic products Only purchasing holiday decorations from World Market
Only purchasing organic products
What are current trends in food marketing? (Select all that apply.) Producing processed food as cheaply as possible Opening grocery stores in food deserts Emphasizing the importance of red meat, especially beef Reducing food waste
Opening grocery stores in food deserts, Reducing food waste
______ is achieved through efficient operations, excellent supply chain, and human resource management. (Select all that apply.)
Operational Excellence
The ______ environment is comprised of political parties, government organizations, and legislation and laws.
Political/legal
Which of the following are associated with marketing, as defined by the American Marketing Association? (Check all that apply.) processes used to create value for clients institutions that implement technologies for increased production efficiency institutions that facilitate the exchange of offerings that have value for customers organizations that develop industry partnerships for international outsourcing activities that communicate offerings that have value for society at large
Processes used to create value for clients Institutions that facilitate the exchange of offerings that have value for customers Activities that communicate offerings that have value for society at large
Firms that achieve a sustainable competitive advantage through their merchandise and service offerings, and effective branding and positioning, are doing so using ______ excellence.
Product
4 P's (Marketing Mix)
Product, Price, Place, Promotion
What were the primary characteristics of the market-oriented era that followed World War II? (Check all that apply.)
Products were designed to focus on consumers' needs It was a buyers' market
Locational excellence is particularly important for which type of firm? Manufacturers Science Research Facility Retailers Call Centers
Retailers
Which of the following are related to marketing in the production-oriented era? (Check all that apply.)
Retailers were considered places to hold inventory until it was sold. Manufacturers were concerned with product innovation, not with satisfying the needs of the individual.
Marketers can use an analysis of the external and internal environments such as ______.
SWOT
When a toothpaste manufacturer divides the marketplace into smaller targets based on consumers' ages and habits, this is an example of market ______.
Segmentation
STP includes which of the following? Segmentation Pricing Positioning Strengths
Segmentation and pricing
What are the four components of a SWOT analysis?
Strength, weaknesses, opportunities, threats
What are the immediate environmental factors that impact consumers? (Select all that apply.) The competitors The company Corporate partners The country culture
The competitors, the company, corporate partners
What would happen to the global economy if all marketing ceased?
The global economy would plummet
There is increasing concern that ______ will be depleted through actions like deforestation.
The physical environment
Which of the following statements about strategic planning is true? Creating a strategy without following the steps in order usually ends up failing or doing poorly. Skipping a step of the process is fine, but the steps should not be performed out of order. The process can move back and forth between steps, depending on the situation. The steps of the process must always be followed in order.
The process can move back and forth between steps, depending on the situation.
When developing marketing plans, what should a firm consider about their competition?
Their reaction
What must marketers understand about their competition? (Select all that apply.) Their strengths Their political affiliation Their likely response to marketing activities Their weaknesses
Their strengths, Their likely response to marketing activities, Their weaknesses
What tasks are firms increasingly using artificial intelligence (AI) to complete? (Select all that apply.) Translations Speech recognition Decision making Psychological counseling
Translations, speech recognition, decision making
In which type of diversification does a firm enter into an entirely new business?
Unrelated
Which of the following is LEAST effective when building a sustainable competitive advantage?
Using only a single strategy
In order to compete successfully, most firms today, operating in the market orientation phase of marketing, have to provide their customers with better _____________ -based marketing than their competitors.
Value
Which of the following is the primary question a mission statement should answer?
What type of business are we?
What are reasons why strategic planning may NOT occur sequentially? (Select all that apply.) When a situation analysis necessitates that the mission statement be revised When the implementation plan cannot move forward because there are too few resources When new strategic opportunities arise When the economy has had six consecutive months of steady growth and projections indicate that the trend will continue
When a situation analysis necessitates that the mission statement be revised When the implementation plan cannot move forward because there are too few resources When new strategic opportunities arise
What are supply chain partners? (Select all that apply.) Competitors Wholesalers Transporters Federal regulators Retailers
Wholesalers Retailers Transporters
A marketing plan includes all of the following EXCEPT ______. marketing objectives and strategy a SWOT analysis a plan on how to pitch investors an analysis of the current marketing situation
a plan on how to pitch investors
The process by which businesses sell to consumers is known as ________ marketing
business-to-consumer (B2C)
The most important immediate environmental factors that impact consumers are the ______.
company, competitors, and corporate partners
Fast Bean sells coffee to Fred to brew and drink at home. This is an example of business-to-______ marketing.
consumer
In all marketing efforts, the ______ is at the center.
consumer
A school may collaborate with a publishing company such as McGraw-Hill to ensure that the school receives enough books for each enrolled student. The publishing company is considered the school's ______ partner.
corporate
An example of inflation would be when increasing prices cause the purchasing power of the dollar to ______.
decline
A mission statement ______.
defines the scope of activities a firm plans to undertake
A(n) food ________ refers to an area or neighborhood where there is limited to no access to healthy, affordable, fresh food options.
desert
A company must be able to focus on its ______ competencies as an opportunity to deliver new products to its customers.
existing
A market penetration strategy employs the existing marketing mix and focuses the firm's efforts on ______.
increasing sales to current customers
A competitive advantage based on location ______.
is sustainable when real estate is difficult or expensive to obtain
During the sales-oriented era, ______.
manufacturers had the capacity to produce more than consumers were able to buy
A strategy that employs the existing marketing mix and focuses the firm's efforts on increasing sales to current customers is called ______.
market penetration
Firms consider pursuing various ______ as part of their overall growth strategies.
market segments
The product development strategy incorporates a ______ product or service to a firm's ______ target market.
new; current
Product excellence ______. does not achieve competitive advantage occurs by having products with high perceived value and effective branding and positioning yields cost savings is achieved through efficient operations and efficient production
occurs by having products with high perceived value and effective branding and positioning
A marketing strategy ______. is a step-by-step blueprint for all functions of a firm, identifying specific actions to take outlines what a firm plans to do to appeal to potential customers outlines what a firm plans to do to dissuade certain segments of the population to purchase the product. is the same thing as locational excellence
outlines what a firm plans to do to appeal to potential customers
In ______ analysis, management evaluates the firm's various products and businesses, and then allocates resources according to potential profit outlook.
portfolio
The ______ strategy offers a new product or service to a firm's current target market.
product development
Manufacturers in the production-oriented marketing era at the turn of the 20th century were concerned with efficient ______, not with satisfying needs of consumers.
production
A market development strategy uses an existing product offering to ______. reach new market segments sell more product to current buyers offer new products to the existing market diversify
reach new market segments
In a __________ diversification, the current target market and/or marketing mix shares something in common with the new opportunity.
related
STP stands for segmentation, _________, and positioning
targeting
