BUS 221 Exam 1

Your competition is beating you on price in your most important product market. In response, you decide to launch a new ad campaign focusing your customers on the price attribute of your marketing mix. You need a catchy slogan that conveys the attractiveness of your product's pricing.

"Expect More. Pay Less"

In today's market environment, you might pay $16 for a vinyl LP record by your favorite musical artist. Approximately how much of that price goes to activities related to marketing (promotion, distribution, profit margins)?

$8.00

Your quarterly strategic planning meeting will be held next month. You will schedule all the brainstorming and discussion activities for the meeting in a sequence and structure consistent with the structure of the traditional strategic planning process.

1: Develop the company's mission and goals; 2: Develop business unit strategies; 3: Complete a SWOT analysis for the company; 4: Develop functional area goals and objectives.

Which of the following is most likely to be an idea marketer?

Abuse counselor

What is the final step in establishing an implementation timetable?

Assigning responsibility for completing each activity

Amazon Prime has one of the highest customer loyalty ratings in the entertainment industry with a significant percentage of current video streaming subscribers continuing to renew their subscription with Amazon on a yearly or month-to-month basis. In addition, many customers have cancelled their cable or satellite subscriptions and rely almost exclusively on streaming services such as Amazon Prime and Netflix for their entertainment. Amazon Prime video streaming is available as part of Amazon's $99/year Amazon Prime suite of offerings that includes free 2-day shipping on many Amazon.com orders. Customers can also choose to pay by the month for $12.99/month. If a significant percentage of subscribers continue their service on an annual basis, Amazon is able to build a stable revenue stream based on repeat purchasers. A quick snapshot of one customer revealed that the customer had subscribed to Prime for five years and generated over $700 in revenue to Amazon. Which of the following marketing terms best captures the importance of customer loyalty and its impact on Amazon?

Customer lifetime value

Valeria Suarez is responsible for the traditional media marketing activities for her company and currently utilizes billboards, radio advertising, newspaper advertising, and cable TV advertising to communicate with customers, reinforce customer relationships, and drive revenues and profitability. Valeria's company has invested in a proprietary technology scheduling program that allows her to plan the various media investments, messages, and timing over the year to match the various media content to specific marketing objectives, according to the days or months of the year that are most appropriate for the company. Therefore, the proprietary scheduling program assists Valeria's with which of the following marketing implementation activities?

Establishing a timetable for implementation

Which of the following is the least uncontrollable factor in developing a marketing mix?

Government regulations

Which of the following is NOT one of the steps of evaluating marketing strategies?

Identifying target markets

Which of the following is a strategy of increasing sales of current products in new markets?

Market development

Herbal Organics used actor and former NFL player Sweet Dave Brown to act as its spokesperson as the "Herbal Organics Man." It filmed humorous videos of the actor that went viral online. Herbal Organics saw sales of its deodorants increase substantially from the previous year. What type of competitive growth strategy did Herbal Organics use?

Market penetration

Target's tagline "Expect More, Pay Less" emphasizes which marketing mix variable?

Pricing

A marketing manager decides what combination of variables is needed to satisfy customers' needs for a general type of product. What are the essential variables that the marketing manager combines?

Product, price, distribution, and promotion variables

Using the data regarding number of bowls sold and the average order amount generated, what kind of analysis can the owners of the restaurant perform to assist them in understanding their business opportunities?

Sales analysis

Which of the factors from the master list of environmental factors will you include in your subsection?

Trade policy; Tax policy; Environmental regulations

____ is a customer's subjective assessment of benefits relative to costs in determining the worth of a product.

Value

The marketing plan is

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

The marketing concept is a philosophy that states that an organization should try to satisfy customers' needs and also

achieve the organization's goals.

Competitive growth strategies are based on

analyses of each product or business unit.

Marketing knowledge and skills

are valuable personal and professional assets.

Before marketers can develop an appropriate marketing mix, they must

collect in-depth, up-to-date information about customer needs.

The Buddhas Brew Kombucha has become highly efficient in developing and manufacturing new kombucha products for the market. It far surpasses its competitors in these areas. Recently, major medical journals have started describing how kombucha can be highly advantageous for consumer health. This is likely to give Buddhas Brew Kombucha a ______________ because it is able to match its skills with opportunities in the marketplace.

competitive advantage

Gucci, a marketer of high-fashion products, achieved a company turnaround by ensuring that its brand had the same image and proper display around the world. It also lowered prices on some items, like handbags, to be more competitive. This illustrates a company working to develop a marketing mix that is both ____ and ____.

consistent; flexible

Changing the hours of operation for a service business involves the ______ component of the marketing mix.

distribution

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

distribution

One way that Kia evaluates its product and service level is by how well it ranks on the J. D. Power & Associates Sales Satisfaction Survey. In doing so, Kia is

evaluating actual performance.

In many cases, companies that enter a market after innovative products have been introduced can achieve long-term competitive advantages by continuing to develop a better mousetrap. For example, MicroPro was the first company to introduce a word processing program, but SSI cornered a large market share when it introduced the Word Perfect program. Today, however, Microsoft's Word is the dominant word-processing software program and has continued to endure due to the popularity of the Microsoft Office Suite of products. MicroPro's WordStar possessed a ___________ advantage while Microsoft enjoyed a ___________ advantage.

first-mover; late-mover

The foundation on which a company can develop its marketing mix is

identification and analysis of a target market.

Businesses that strive to determine what customers need or want and then develop products to satisfy those needs and wants are operating in a(n) ____ orientation.

market

When the right combination of circumstances occurs at the right time to allow an organization to take action toward a target market, the firm is faced with a

market opportunity.

Refer to Scenario 1.2. If Stay and Play employs the philosophy of building a relationship with its dog and cat customers, and their owners, it will be implementing the

marketing concept.

The process of putting marketing strategies into action is called

marketing implementation.

The Boston Consulting Group's matrix is based on the

philosophy that a product's market growth rate and its market share are important determinants of its marketing strategy.

The forces of the marketing environment include

political, legal and regulatory, sociocultural, technological, economic, and competitive.

During the Industrial Revolution, most firm's operated using a(n) ______ orientation.

production

Businesses that view sales as the major means of increasing profits are operating with a _____ orientation.

sales

C.J. Foods, a pet food maker, purchased Lortscher Animal Nutrition, Inc. (LANI), a miller and ingredient supplier, and now operates this division as a separate profit center within the firm. In this example, LANI is a(n) ____ unit of C.J. Foods.

strategic business

Within a business organization, a profit center that is self-supporting in terms of sales, markets, production, and other resources is known as a

strategic business unit.

The essence of marketing is

to develop satisfying exchanges from which both customers and marketers benefit.

The equation a buyer applies to assess a product's value is

value = customer benefits − customer costs.

HealthCare Guardian Insurance rolls out an innovative nurse-on-call information system available online. The product is not widely accepted because patients don't see the need for such a service. This situation represents a failure in which aspect of implementing the marketing concept?

An information system to determine customer needs

Kraft made the announcement that it was eliminating artificial food additives. Which of the following most likely influenced Kraft's decision?

Marketing environment

The definition of marketing implies that ______ should receive benefits from exchange relationships.

both customers and businesses

The reputation and well-known brand name of Mercedes-Benz automobiles represents a ____ for Mercedes-Benz.

core competency

Ace Manufacturing Company is not attracting sufficient customers. It has long defined itself as being a maker of shelving products. To improve its sales and long-term viability, it should perhaps consider redefining itself as

helping potential customers satisfy their needs with Ace shelving products.

Marketing planning and ______ are closely linked in successful companies.

implementation

Jo's Coffee Shop wants to increase customer satisfaction. Currently, only 75% of customers indicate they are satisfied with the services offered. In the next six months, it plans on implementing a number of changes to improve its services. Jo's Coffee plans to implement a survey at the end of the six-month period to determine whether customer satisfaction has improved. Jo's wants 90% of its customers to indicate they are satisfied with its service. This is an example of a ________________.

marketing objective

Clive Lilywhite is in the process of creating, pricing, distributing, and promoting a new app to facilitate satisfying exchange relationships with customers and to develop and maintain favorable relationships with stakeholders in a dynamic environment. Clive is engaging in

marketing.

Customer costs include anything the buyer must give up in order to obtain the benefits the product provides. The most obvious customer cost is

monetary price.

Managers at the Tycho Manufacturing are engaged in a complex process of revising their organization's mission and goals and developing corporate strategy, marketing objectives, marketing strategy, and, eventually, a marketing plan. This process is called

strategic planning.