Chapters 1-3 Marketing

If a business refuses to comply with a request by the _____, the agency can issue a ceaseanddesist order, which gives a final demand to stop an illegal practice. Environmental Protection Agency Consumer Product Safety Commission U.S. Department of Justice Federal Trade Commission

Federal Trade Commission

What is the role of marketing in sustainability efforts? Firms stand to exploit newer markets that are opened up to them. Firms gain credibility from their efforts to protect the environment. Firms can expect to save on costs incurred in discarding older, ineffective technology in favor of newer, stateoftheart technology. Firms can increase their profitability by enhancing their carbon-foot-print.

Firms gain credibility from their efforts to protect the environment.

Which of the following helps timebased competitors to improve product quality, reduce costs, and expand product offerings to satisfy new market segments and enhance customer satisfaction? Validity and reliability Flexibility and responsiveness Rigidity and vision Profitability and coverage

Flexibility and responsiveness

Indigo Ltd. wanted to increase its customers by applying the marketing concept. Which of the following would be an appropriate way to apply this approach? Maximize production of goods Focus on meeting the needs of the consumers Offer more product variety than competitors Produce high quality goods

Focus on meeting the needs of consumers

Jen's Dairy markets milk and other milk products that are purely organic and grown using sustainable farming methods. They also have a program under which they recycle used cans of their products. These marketing strategies employed by Jen's Dairy show that they are involved in _____. demarketing green marketing socially responsible investing competitive marketing

Green marketing

The application of relationship marketing requires attention to levels of customer loyalty. Which of the following is the highest level as defined by this type of marketing? Loyal supporter of the company and its goods and services. Advocate who not only buys the products but recommends them to others. Regular purchaser of the company's products. Stockholder who literally buys into the organization and its mission.

Advocate who not only buys the products but recommends them to others.

Which of the following is a combination of person, cause, and organization marketing? Tiger Woods' endorsement of Nike, a sports company and Accenture, a consulting company The Nobel Peace Prize for Al Gore for his work on global warming UNICEF's work to improve the living conditions of children across the world Angelina Jolie's role as a UN Goodwill Ambassador for refugees

Angelina Jolie's role as a UN Goodwill Ambassador for refugees

A strategic window is defined as a collection of situations where organizations are unable to capitalize on opportunities because of internal limitations. True False

False

According to relationship marketing, firms must apply higher standards of customer satisfaction to external customer relationships over intradepartmental relationships. True False

False

According to the BCG matrix, cash cow businesses produce strong cash flows and invest heavily in the unit's own promotions and production capacity. True False

False

An auto manufacturer creates ownership utility for its consumers by combining metal, rubber, plastic and petroleum products. True False

False

An important difference between not-for-profit and for-profit organizations is that, not-for-profit organizations cannot market tangible goods. True False

False

As economic recovery begins after a period of recession, consumption patterns would reveal a sharp spike. True False

False

Branches of the U.S. military sometimes show recruitment advertisements in cinemas featuring movies that are most likely to attract viewers of military age. This is an example of place marketing. True False

False

Buying an iPod generates ownership utility; however, buying a concert ticket does not. True False

False

Buying, selling, transporting, and storing are known as the facilitating functions of marketing because they represent the exchange and physical distribution functions. True False

False

Buzz marketing excludes visual aspects as it does not consist of a tangible expression of an issue or position. True False

False

Changes in an environment are most often the result of sudden crises. True False

False

Creative applications of technology can benefit society, but rarely give firms a definite competitive edge since other firms can simply copy the technology. True False

False

Data suggests that business owners who adopt the first mover strategy will always be longterm market winners. True False

False

Deflation is necessarily better for the economy than inflation as inflation devalues money and reduces the purchasing power of consumers. True False

False

Demarketing is a reaction to a surplus of production materials that results in product supply exceeding demand. True False

False

Despite its many advantages, technology can seldom address social concerns. True False

False

Discretionary income is the amount of money people have to spend on buying necessities such as food, clothing, and housing. True False

False

During the recession stage of the business cycle, consumers have enough money to spend, but caution often restraints their willingness to buy. True False

False

Each strategic business unit (SBU) in a firm has to prepare its plans in collaboration with other units in the organization. True False

False

Ensuring ethical practices means promising customers and business partners to sacrifice quality and fairness for profit. True False

False

Environmental management rarely works because marketers cannot hope to influence the external environment, they can only respond to changes in it. True False

False

Firms that make the most efficient use of buzz marketing claim that it is a "one-way" approach to building customer relationships. True False

False

Firms that narrowly define their organizational goals can avoid the problem of marketing myopia. True False

False

Information technology has enhanced the effectiveness of relationship marketing by leveraging mass-marketing campaigns. True False

False

Laura decided to quit her job and travel for a year. She can be considered a part of the population that is unemployed. True False

False

Managers of firms have traditionally focused on improving their relationship with the government and the general public as part of their social responsibility. True False

False

Marketing is the indirect connection between a firm and its customers. True False

False

Marketing is the organizational function that refers to all forms of selling from institutional sales to personal selling. True False

False

Marketing of a product begins after it hits the shelf. True False

False

Marketing of sporting, cultural, and recreational activities to selected target markets is known as cause marketing. True False

False

Marketing planning establishes the basis for a firm's overall strategic plan. True False

False

Marketing strategies that work for a particular cultural group in the United States will always work when applied to the same cultural group abroad. True False

False

Marketing theory would define Starbucks, Caribou Coffee, and Dunkin' Donuts as indirect competitors because some coffee drinkers are particular about the brands they purchase. True False

False

Matching an external opportunity with an internal weakness produces a situation known as leverage. True False

False

Notforprofit organizations are not impacted by the rate of discretionary spending. True False

False

On account of their unselfish goals of serving society, not-for-profit organizations are not required to have marketing objectives. True False

False

Operational planning that involves the creation and implementation of tactical plans for the departments within an organization is primarily the responsibility of toplevel management. True False

False

Organizations within the same industry usually have the same mission. True False

False

Paying universities for the use of their logo, team name, and mascot in advertising products and services to their students is considered ethical. True False

False

Production orientation is a business philosophy that stresses on the importance of quantity of products rather than the quality of products. True False

False

Production, promotion, and reclamation of environmentally sensitive products is the basic premise of ethical marketing. True False

False

Promotional events designed to attract visitors to a particular area or to improve the image of a city, state, or nation would be examples of event marketing. True False

False

Relationship building in marketing starts with excellent customer service after purchase. True False

False

Relationship-building goals and strategies are seldom included in the plans of business firms. True False

False

SWOT analysis refers to an examination of a firm that is limited to the variables of its stability, work ethic, organizational structure, and technological expertise. True False

False

Six firms GM, Ford, Chrysler, Toyota, Honda, and Nissan share 90 percent of all U.S. auto sales. Hence the U.S. auto market can be regarded as a monopoly. True False

False

Strategic business units (SBUs) of a diversified firm have common managers, resources, objectives, and competitors. True False

False

Strategic business units are key business units within small companies that offer only a few items to its customers. True False

False

Strategic planning has a minimal impact on a firm's destiny because it provides only shortterm direction to the decision makers. True False

False

Strategies once implemented should not be changed even if the actual performance does not meet the desired results. True False

False

Supervisory managers tend to focus exclusively on strategic planning. True False

False

Tactical plans typically determine an organization's primary strategic objectives and exclude shortterm actions from their purview. True False

False

The Federal Food and Drug Act was designed to maintain a competitive environment in the food and drug industries. True False

False

The Federal Trade Commission was established to facilitate trade by removing tariffs and other trade barriers among Canada, Mexico, and the United States. True False

False

The Internet has impacted business for new firms by increasing the barriers to market entry. True False

False

The ability to download Microsoft and IBM software products directly from the Internet is a part of each firm's pricing strategy. True False

False

The advertising director, marketing research manager, and other middlelevel managers have the primary responsibility of devising and implementing the strategic plan of the company. True False

False

The antitrust laws in the United States were designed to protect the interests of organizations having monopoly positions. True False

False

The chief executive officer (CEO) and vice president of marketing spend a greater proportion of their time on operational planning than do managers at all other organizational levels. True False 13

False

The cost of finding new customers is far less than the cost of maintaining existing ones. True False

False

The disadvantage of core competencies is that they can be easily duplicated by competitors. True False

False

The establishment of the WTO, the passage of NAFTA, and the creation of the Euro are examples of protectionism on the part of nations concerned with increased globalization of the marketplace. True False

False

The existing U.S. legal framework was constructed in a logical, systematic manner, resulting in a coherent and easily understood body of laws. True False

False

The extent of consumer spending is directly related to the rate of unemployment. True False

False

The federal government has imposed strict regulations on food advertising for children based on their nutritional standards. True False

False

The financial bottom line refers to the limitations laid on the budgets of a firm. True False

False

The firm that provides regional expertise in a strategic alliance does not share the risks associated with the business. True False

False

The first phase of federal regulation of business was aimed at protecting competitors and included the RobinsonPatman Act, passed in the 1930s. True False

False

The five dimensions of the marketing environment exert a fairly constant and static influence on marketing strategies. True False

False

The functions of marketing can be grouped into three major categories: exchange functions, physical distribution functions, and financing functions. True False

False

The governmental regulations that affect marketing practices are mainly for advertising and distribution, and do not place any restrictions and prohibitions on the design and packaging of products. True False

False

The gross domestic product (GDP) of a nation does not take into consideration the goods and services that are exported to foreign markets. True False

False

The idea of first movers being completely replaced by second movers and the resulting disappearance of first movers from the marketplace is a myth. True False

False

The limitation of a strategic alliance is that it eliminates competitive advantage. True False

False

The local government in Colorado has made it mandatory for firms to publish information on labels, regarding the environmental impact of their products. The government is trying to protect the consumers' right to be safe. True False

False

The main goal of not-for-profit organizations is to generate revenues above and beyond their costs to make money for all stakeholders involved. True False

False

The marketing concept focuses on the objective of achieving short-term profits instead of long-run success during tough economic times. True False

False

The most direct form of competition occurs among marketers of dissimilar products. True False

False

The number of suppliers available to a manufacturer or retailer affects the bargaining power of buyers. True False

False

The physical distribution functions of marketing are related to advertising, personal selling, and sales promotion in the attempt to match products and services to consumer needs. True False

False

The planning process begins at the corporate level with the first step being the development of strategic objectives. True False

False

The planning process is an intermittent process held after substantial intervals. True False

False

The position of an SBU along the horizontal axis indicates the annual growth rate of the market. True False

False

The pricing strategy is the area of marketing that receives the least amount of public scrutiny. True False

False

The relationship era builds on the marketing era's customer orientation by only focusing on maintaining relationships with customers. True False

False

The rule of three states that the third major company in an industry has little chance of survival. True False

False

The success or failure of a product is independent of the competitive environment. True False

False

Timebased competition is a strategy of developing and distributing goods and services after a competitor to observe the customers' response to a particular product. True False

False

While many firms claim to have adopted the marketing concept, there is little evidence that a strong market orientation contributes to market success and overall performance True False

False

The most obvious distinction between not-for-profit and for-profit organizations is: not for-profit organizations have more exact marketing goals. not-for-profit organizations have a different view of what constitutes the bottom line. customers of not-for-profit organizations have more control. not-for-profit organizations market services not goods.

not-for-profit organizations have a different view of what constitutes the bottom line.

A(n) _____ is a structure that refers to a limited number of sellers in an industry in which high startup costs form barriers to keep out new competitors while ensuring that corporations remain innovative. duopoly monopoly oligopoly monopsony

oligopoly

The term 'bottom line' is a reference to: overall company profitability. a firm's social responsibility. the limits on marketing budgets. the ethical and social viability of marketing.

overall company profitability

The ability to transfer title to goods or services from marketer to buyer is described as: ownership utility. form utility. time utility. place utility.

ownership utility

Melissa is campaigning for Janet, her friend, who is contesting for the presidency of the student council at Riverdale Junior College. Melissa's effort is an example of _____ marketing. cause person place organization

person

In the context of cybercrime, luring consumers to provide personal information is called _____. piracy viral marketing logging phishing

phishing

State bureaus of tourism and conventions typically engage in _____ marketing. organization person place cause

place

The process of anticipating future events and conditions and determining the best way to achieve organizational objectives is known as: retrospecting. planning. archiving. correlating.

planning

Business strategist Michael E. Porter identified five competitive forces that influence _____ in a model called Porter's Five Forces. planning strategies corporate social responsibility consumer behavior sustainable development

planning strategies

The _____ component of the marketing environment consists of laws that require firms to operate under competitive conditions and to protect consumer rights. economic competitive socialcultural politicallegal

political-legal

A bill passed by the government stipulates the mandatory use of revised engine mapping and particulate filters in the automobile industry. Which of the following factors of the marketing environment has affected the automobile industry in this scenario? competitive politicallegal economic socialcultural

politicallegal

In a(n) _____, firms evaluate their products and divisions to determine the strongest and weakest. organizational appraisal market analysis utilization analysis portfolio analysis

portfolio analysis

The marketing mix decisions which are closely regulated and subject to public scrutiny usually relate to a company's _____ strategy. shortterm resource distribution pricing

pricing

Newsletters, catalogs, and invitations to companysponsored events are most closely associated with the marketing mix activity of: product pricing. product distribution. product development. product promotion.

product promotion.

Jenny has been appointed the marketing manager for Spark Cleaning Products. Her job focuses on decisions involving customer service, package design, brand names, and warranties. In this scenario, Jenny is closely associated with the _____ dimension of the marketing planning. product strategy resource valuation and pricing retailing and distribution target market

product strategy

Indirect competition occurs among marketers of: similar products. products that satisfy different needs. products that can be easily substituted. products that belong to different categories.

products that can be easily substituted.

The Federal Trade Commission Act is a law that: prohibits copying or downloading of digital files. facilitates trade by removing tariffs and other trade barriers. prohibits unfair methods of competition. restricts practices such as exclusive dealing, tying contracts, and interlocking boards of directors.

prohibits unfair methods of competition.

The RobinsonPatman Act was passed to: provide legal protection to individual merchants against competition from larger chain stores. increase competition in the telecommunications and utilities industry by deregulation. protect consumers by specifying safety standards for products. maintain a competitive environment by prohibiting monopolization.

provide legal protection to individual merchants against competition from larger chain stores.

The facilitating functions of marketing include: securing marketing information and financing. buying and selling. securing market information and storage. risk taking and transporting.

securing marketing information and financing.

The product manager for a line of mousetraps informs the board of directors at the company's annual meeting that the product has been classified as a "dog" according to the BCG market share/market growth matrix. This means the product: requires a "go/no go" decision within the next several years. has low market share of a highgrowth rate market. should be withdrawn from the market or sold off as quickly as possible. needs heavy investment to make it a star.

should be withdrawn from the market or sold off as quickly as possible.

Which of the following usually indicates a strong economy? Growth in services such as banking and restaurants Cautious spending by businesses and consumers A focus on basic, functional products with lower price tags Increase in purchasing power coupled with uncertain consumer demand

Growth in services such as banking and restaurants

It has been seen that periods of major innovations often lead to: reduced personal consumption. higher standards of living. decreased annual spending. reduced discretionary income.

Higher standards of living

Which technology creates a common interface for data to be carried across networks between different devices? IMS WiFi VoIP RFID

IMS

Which of the following would qualify as an example of a firm's weakness? Changing buyer tastes in the marketplace The presence of modern production facilities Inadequate financing capabilities An addition to the current product line

Inadequate financing capabilities

In addition to the four forces of the Five Forces Model, which of the following influences rivalry among competitors? Decreased availability of information of competitors Decreased consumption during a lull in the economy Lack of differentiation between products Lack of major differences in pricing strategies

Lack of differentiation between products

The revenues and intangible benefits accrued to the firm, minus the investment to attract and keep a customer is known as the: gradient of return on investment. intangible benefit stream. investment-benefit differential. lifetime value of the customer.

Lifetime value of the customer

When marketers offer new products, increase their promotional efforts, and expand their distributional limits, it is a sign of: low inflation and low unemployment. low inflation and high unemployment. high inflation and high unemployment. high inflation and low unemployment.

Low inflation and low unemployment.

The _____ is a companywide consumer orientation with the objective of achieving longrun success. marketing myopia exchange process marketing concept seller's market

Marketing Concept

Which of the following statements regarding the marketing era is true? Marketing and selling would no longer be considered synonymous terms. Marketing was relegated to a supplemental role performed after the production process. The marketing concept was linked to a shift from a buyer's market to a seller's market. Business success often was defined solely in terms of production successes.

Marketing and selling would no longer be considered synonymous terms.

Which of the following is true regarding marketing? The marketing concept emphasizes creating and maintaining short-term successful relationships with customers and suppliers. Marketing encompasses such a broad scope of activities and ideas that settling on one definition is often difficult. Marketing refers to an activity in which two or more parties give something of value to each other to satisfy perceived needs. The marketing concept is a belief that consumers will resist purchasing nonessential goods and services.

Marketing encompasses such a broad scope of activities and ideas that settling on one definition is often difficult.

Marketers' standards of conduct and moral values is termed as _____. social marketing corporate identity green marketing marketing ethics

Marketing ethics

business cycle that can lead to a depression. Deregulation Monetary and fiscal policies Stringent environmental policies Mergers and acquisitions

Monetary and fiscal policies

A buyer's market is characterized by: more goods and services than buyers to buy them. a small number of firms dominating the production of goods offered. practically no competition in the marketplace. a single firm producing a major share of the products or services offered.

More goods and services than buyers to buy them.

The government's Do Not Call Registry that helps consumers to avoid telemarketing calls exempts callers who represent: financial institutions. notforprofit organizations. service companies. insurance companies.

Not-for-profit organizations

Which of the following statements is correct regarding not-for-profit organizations? The sole common factor between not-for-profit organizations and for-profit firms is the financial bottom line. Not-for-profit organizations hope to generate as much revenue as possible to support their causes. Not-for-profit organizations are all found in the public sector. Historically, not-for-profit firms have had more exact goals and marketing objectives than for-profit firms.

Not-for-profit organizations hope to generate as much revenue as possible to support their causes.

Which of the following holds true when not-for-profit organizations are compared with for-profit organizations? Not-for-profit organizations tend to focus their marketing on just one public-their customers. Not-for-profit organizations often possess some degree of monopoly power in a given geographical area. Not-for-profit organizations depend on strategic alliances with for-profits to provide advertising and visibility. A service user of a not-for-profit organization may have more control over the organization's destiny than customers of a profit-seeking firm.

Not-for-profit organizations often possess some degree of monopoly power in a given geographical area.

Which of the following statements is indicative of a second mover strategy? Entering new markets with existing products Making significant innovations that turn old products into new ones Observing closely the innovations of first movers and then improving on them Entering new markets with new products before any other entrants

Observing closely the innovations of first movers and then improving on them

In times of prosperity, marketers respond to consumer buying behavior by: launching special valuepriced products that are likely to appeal to costconscious buyers. holding down costs and offering superior services at lower prices. lowering prices and increasing promotions that include special offers to stimulate demand. offering new products, increasing their promotional efforts, and expanding distribution.

Offering new products, increasing their promotional efforts, and expanding distribution.

An alliance between a not-for-profit organization and a for-profit organization: rarely benefits either party. often benefits both parties. typically benefits the not-for-profit more than the for-profit. typically benefits the for-profit more than the not-for-profit.

Often benefits both parties

An industry with only a few large competing firms is called a(n): regulated monopoly. pure monopoly. perfect market. oligopoly.

Oligopoly

In the United States, four major music companies receive 80 percent of recording revenues. Such a market structure is termed as a(n) _____. monopsony oligopoly monopoly duopoly

Oligopoly

A university sells customized sweatshirts, pullovers, and jerseys to its students and staff. This is an example of _____. cause marketing organization marketing person marketing event marketing

Organization marketing

An example of a firm's strength discovered by a SWOT analysis might be: ownership of valuable patents. a narrow current product line. changing buyer tastes in the marketplace. existing government policies favoring the industry.

Ownership of valuable patents.

Banks have recently begun to install ATMs in supermarkets to address customers' wants for instant cash when they go shopping. What type of utility are banks creating for customers? Form Possession Place Ownership

Place

Wild Escape advertises jungle safaris, chimpanzee tracking, and gorilla tracking tours. This is an example of _____. form utility creation place marketing organization utility sports marketing

Place marketing

Availability of goods and services at convenient locations creates: form utility. time utility. place utility. ownership utility.

Place utility

Which of the following ethical issues is associated with firms' product strategies? Exclusive territories False and deceptive advertising Planned obsolescence Baitandswitch advertising

Planned obsolescence

Longterm plans focusing on those organizational objectives that will significantly affect a firm for five or more years are usually referred to as _____ plans. strategic marketing economic tactical

Strategic

All planning strategies have the goal of creating: sustainable competitive advantage. undifferentiated markets. a market with no distinct segments. barriers to market entry.

sustainable competitive advantage

Many hotel chains offer free stays and other perks to repeat customers. This is an example of: relationship marketing. transactionbased marketing. interactive marketing. social marketing.

Relationship marketing

Manufacturers create goods and services based on research and their belief that consumers need them. In doing so, what marketing function are they performing? Financing Standardizing and grading Risk taking Physical distribution

Risk taking

Artisanal Brands, Inc. markets and distributes a line of specialty, artisanal, and farmstead cheese products in the United States. The company gives bulk discounts to their wholesalers. The result is that smaller stores are getting the products at a higher rate as compared to supermarkets and large shopping chains. These stores will be protected under the _____. Sherman Antitrust Act RobinsonPatman Act WheelerLea Act CellerKefauver Act

Robinson-Patman Act

As suggested by President John. F. Kennedy, the consumers' right to be _____ states that consumers should be assured that the goods and services they purchase are not injurious with normal use. able to choose informed safe heard

Safe

A company with a _____ orientation assumes that customers will resist purchasing non-essential goods and services and that the task of personal selling and advertising is to persuade them to buy. production marketing sales relationship

Sales

A company produces a high-quality product, with a maximum monthly output of 10,000 units. Production levels are constant and the company relies on its marketing department to find customers for its output. This approach is consistent with which era in marketing history? Production era Relationship era Marketing era Sales era

Sales era

Which function of marketing helps marketers determine what consumers want and need and how to offer goods and services to satisfy them? Financing Securing market information Risk taking Standardizing and grading

Securing market information

A market in which there are more buyers for fewer goods and services is known as a: seller's market. monopoly. buyer's market. oligopoly.

Seller's market

Which of the following functions of marketing involves advertising? Standardizing Buying Selling Storing

Selling

Products that can be produced, used, and disposed of with minimal impact on the environment are called: non-renewable products. bio-gradable products. sustainable products. modulated effluents.

sustainable products

A company's plans that focus largely on its current and nearfuture activities and are determined by its middle level management are referred to as _____ plans. strategic longterm operational tactical

tactical

Preparation of quarterly and semiannual plans by personnel such as the general sales manager or advertising director would be classified as _____ planning. consumer tactical procedural operational

tactical

An event management company decided to use radio advertising in order to promote an upcoming music festival. The executives of the company suggested various activities that could be used for the radio campaign. These activities are a part of the company's _____. tactical planning efforts standard operating procedures weekly scheduling plans unitwise budgeting plans

tactical planning efforts

The group of people to whom a firm directs its marketing efforts and ultimately its merchandise is known as its _____ market. undifferentiated unsegmented mass target

target

Relationship marketing relies heavily on: mass marketing and global promotions. technology to store customer data and to customize products/services. strategic alliances and creating competitive advantage. aligning business goals with a social cause.

technology to store customer data and to customize products/services

In marketing, _____ involves accepting an obligation to give equal weight to profits, consumer satisfaction, and social wellbeing in evaluating a firm's performance. green washing consumerism social responsibility demarketing

Social responsibility

When a firm contributes to environment protection and human welfare programs, which type of behavior is it exhibiting? Relationship marketing Social responsibility Economic neutrality Onetoone marketing

Social responsibility

_____ involves marketing philosophies, policies, procedures, and actions whose primary objective is the enhancement of society. Social responsibility Customer orientation Ethics Relationship marketing

Social responsibility

Bank of Norasmus is one of the few banks that provides credit to disadvantaged communities. These loans are used for housing, small business creation, and education or personal development. Such an organization is said to be involved in _____. credit based investing socially responsible investing sustainability environmental management

Socially responsible investing

Which of the following factors contributed to the transition from the production era to the sales era? Increased consumer demand Sophisticated production techniques Increase in urbanization The Great Depression

Sophisticated production techniques

Which of the following is a facilitating function of marketing? Buying Selling Standardization and grading Distribution

Standardization and grading

Microsoft Windows generates considerable income for its parent company but is expensive to support. However, the expense is acceptable because Windows is the world's dominant operating system. Based on this information, Windows would be categorized under the BCG market share/market growth matrix as a: star. cash cow. question mark. dog.

Star.

The quadrant of the BCG market share/market growth matrix that represents both a high market share and a high rate of market growth represents the: cash cows. innovators. stars. strivers.

Stars.

Which of the following would be visible in relationship marketing? Focus on producing high quality goods Sales orientation Companywide consumer orientation Strategic alliances

Strategic alliance

Jose is part of a team that is analyzing current demographic trends. The team will make a recommendation concerning the groups of consumers toward whom the firm should direct its new marketing effort. Jose's team is involved in which of the following elements of the firm's marketing strategy? Target market Distribution Product Promotion

Target market

Assume you want to increase the number of customers by applying the marketing concept. Which of the following strategies would be most consistent with this approach? Reduce product costs Offer more product variety than competitors Target markets Employ inexpensive labor

Target markets

_____ leads to new goods and services for consumers, improves existing products, offers better customer service, and often reduces prices through new, costefficient production and distribution methods. Reintermediation Consumerism Disintermediation Technology

Technology

Which of the following bans the purchase of domain names that are identical or confusingly similar to existing registered trademarks? The Anticybersquatting Consumer Protection Act The Identity Theft and Assumption Deterrence Act The Antitrust Act The Privacy Protection Act

The Anticybersquatting Consumer Protection Act

Which law protects intellectual property rights by prohibiting the copying or downloading of digital files? The Real ID Act The Electronic Signature Act The Digital Millennium Copyright Act The Identity Theft and Assumption Deterrence Act

The Digital Millennium Copyright Act

Which of the following agencies supports consumer rights through its initiative of informing consumers of their right to modify or discontinue receiving solicitations? The Federal Trade Commission The Direct Marketing Association The Council of Better Business Bureaus The Consumer Product Safety Commission

The Direct Marketing Association

When Jonathan was contacted by his insurance firm regarding certain medical claims he had made recently, he realized that someone else had used his name and insurance information without his consent to make false claims for medical services and goods. Which of the following acts will enable Jonathan to take action against the person who stole his personal information? The Clayton Act The Identity Theft Enforcement and Restitution Act The Sherman Antitrust Act The Digital Millennium Copyright Act

The Identity Theft Enforcement and Restitution Act

Business strategies are impacted by the widespread use of the Internet. Which of the following is true with respect to its impact? The Internet has eliminated all forms of substitution threats. The Internet has reduced barriers to market entry. The Internet has reduced the bargaining power of endusers. The Internet has reduced consumer awareness about the differences among competitors.

The Internet has reduced barriers to market entry

JP Video Rentals is offering a "Rent 2 get 1 free" video rental coupon. They have been accused of deceptive advertising throughout the U.S. Which division of the Council of Better Business Bureaus is designated to handle such cases? The National Advertising Division The Advertising Standards Authority The Direct Marketing Association The Institute of Sales Promotion

The National Advertising Division

Which act prohibits price discrimination in sales to wholesalers, retailers, or other producers? The WheelerLea Act The RobinsonPatman Act The North American Free Trade Agreement The Federal Trade Commission Act

The Robinson-Patman Act

Which act prohibits restraint of trade and monopolization and identifies a competitive marketing system as a national policy goal? The WheelerLea Act The Sherman Antitrust Act The Federal Trade Commission Act The Clayton Act

The Sherman Antitrust Act

Which of the following acts gives the FTC jurisdiction over false and misleading advertising? The WheelerLea Act The Clayton Act The RobinsonPatman Act The Consumer Product Safety Act

The WheelerLea Act

In which phase of U.S. government regulation were major laws such as the Sherman Antitrust Act, the Clayton Act, and the Federal Trade Commission Act passed to maintain a competitive environment? The phase aimed at protecting competitors The industry deregulation phase The antimonopoly period The consumer protection phase

The antimonopoly period

Which of the following would qualify as an example of a firm's weakness? A bill passed by the government regarding the work timings of all organizations A competitor planning to open a new branch close to the firm's place of operations The firm's failure to pay its taxes on time leading to a poor reputation in the market A ban imposed on the use of animals for testing cosmetics

The firm's failure to pay its taxes on time leading to a poor reputation in the market.

Which of the following statements concerning the global marketplace is true? The global marketplace is diminishing because of Internet technology. The global marketplace is growing because of trade agreements. The global marketplace is growing due to the threat of the ability of a single nation to manufacture, supply, and consume all that it produces. The global marketplace is growing owing to the talent shortage in the home countries of national companies.

The global marketplace is growing because of trade agreements.

Which of the following phases in the history of U.S. government regulation sought to increase competition among industries by permitting them to expand their services into the new markets? The consumer protection phase The antimonopoly period The industry deregulation phase The phase aimed at protecting competitors

The industry deregulation phase

A clothing manufacturer sells to 300 retail chains and boutiques within the United States. Since West Coast retailers have a more affluent clientele, they can command higher retail prices. This is likely to be considered illegal under the Clayton Act. True False

True

A customerdriven organization begins its marketing strategy with a detailed description of its target market. True False

True

A firm with a fully developed marketing concept is one with a companywide consumer orientation with the objective of achieving long-term success. True False

True

A marketing mix should be an everchanging combination of variables to achieve success. True False

True

A mission can be defined as an essential purpose that differentiates one company from others. True False

True

A product strategy includes decisions about customer service, package design, brand names, trademarks, patents, and warranties. True False

True

A target market is a group of customers toward whom a firm directs its marketing efforts. True False

True

A theater group promoting a performance to raise funds in the fight against cancer is an example of both cause marketing and event marketing. True False

True

ARC Inc., a waste management company, expands its scope of business to recycle liquids that can be turned into fuelgrade ethanol, demonstrating the socially responsible approach of the company. True False

True

According to relationship marketing, the lifetime value of a customer should exceed the investment made by the firm to attract and keep the customer. True False

True

According to the BCG matrix, dog products can be sold to other firms, where they are a better fit. True False

True

According to the BCG matrix, if a question mark cannot become a star, the firm should pull out of the market and target other markets with greater potential. True False

True

According to the BCG matrix, stars require considerable inflows of cash to finance further growth. True False

True

Acquisitions and mergers help firms with limited resources to gain access to new markets or new expertise. True False

True

Adjustments in the mission statement of an organization reflect changing business environments and management philosophies. True False

True

All planning strategies have the goal of creating a sustainable competitive advantage for a firm which other companies cannot imitate. True False

True

An exchange process is an activity in which two or more parties give something of value to each other to satisfy perceived needs. True False

True

An organization creates a customer through a three-step approach: identifying needs in the marketplace, finding out which needs the organization can profitably serve, and developing goods and services to convert potential buyers into customers. True False

True

An organization lays out its basic objectives, or goals, in its complete mission statement. True False

True

An organizational objective should specify time frames stating "Our organization aims to generate a 15 percent profit over the next 24 months." True False

True

Apple iTunes is an example of a successful first mover. True False

True

As the senior vicepresident of marketing, Naomi will be closely involved in her firm's strategic planning. True False

True

Celebrities use person marketing as a way to increase their value in the marketplace. True False

True

Colleges and universities, and other notforprofit institutions play major roles in the development of new technology. True False

True

Company A provides a component to Company B, which then sells it under its own brand. This is an example of a vertical alliance. True False

True

Compared to transaction marketing, relationship marketing relies more heavily on information technologies. True False

True

Consumer spending sinks to its lowest level during an economic depression. True False

True

Detailed organizational objectives should state specific intentions, such as "Snapple Corporation seeks to increase its share of the noncarbonated soft drink market to 25 percent within the next two years." True False

True

During an economic recession, marketers look to emphasize value in their offerings by reducing prices in order to help consumers stretch their budget dollars. True False

True

During an eighteenmonth period, sales of Mercedes automobiles, Carnival Cruise vacations, and Florida real estate increased by at least 20 percent. A marketer might deduce that the business cycle is in the late stages of recovery or experiencing a period of economic prosperity. True False

True

Each SBU pursues its own distinct mission and often develops its own plans independently. True False

True

Each element of the marketing mixproduct, price, distribution, and promotionis a subset of the overall marketing strategy. True False

True

Economic recovery can be described as a period when consumer spending begins to cautiously increase, while companies try to hold down rising costs. True False

True

Electric power companies often give advice on how consumers can use less electricity during the summer and save money on their electric bills. This is an example of demarketing. True False

True

Electronic commerce and computer technologies have created unprecedented opportunities in business today. True False

True

Employees at middlemanagement levels engage themselves in business unit budgets and divisional policies and procedures. True False

True

Environmental scanning is the process of collecting external data, analyzing it, and determining whether the trends identified are opportunities or threats to the company. True False

True

For-profit organizations tend to focus more on their customers than not-for-profits do. True False

True

Foreign currency fluctuations, labor costs, and political stability are part of an international economic environment that affects U.S. marketers. True False

True

Form utility refers to the conversion of raw materials and components into finished goods and services. True False

True

Fred's Wholesale Club sends emails and catalogs to all members. Additionally, instore pamphlets promote the benefits of its products. All of these materials are part of the integrated marketing communications intended to send a consistent and unified promotional message. True False

True

Fresh Meadows, an organic yogurt manufacturer, organizes camps to assist and encourage farmers in adopting organic farming practices. Fresh Meadows is engaging in socially responsible marketing. True False

True

Good relationships with customers can equip a firm with vital strategic weapons. True False

True

Improved product quality and superlative customer service can help a company gain a competitive advantage in the marketplace. True False

True

In a SWOT analysis, marketers face a problem when environmental threats attack their organization's weaknesses. True False

True

In addition to planning for change, marketers must set goals to meet the concerns of customers, employees, shareholders, and members of the general public. True False

True

In relationship marketing, employees serve customers within an organization as well as outside it. True False

True

In the past, firms have viewed their suppliers as adversaries against whom they must fiercely negotiate prices, playing one off against the other. True False

True

In the sales era, firms attempted to match their output to the potential number of customers who would want it. True False

True

Information technologies give organizations fast new ways to interact and develop long-term relationships with their customers and suppliers. True False

True

Interactive marketing allows marketers and consumers to customize their communication. True False

True

Interactive marketing refers to buyer-seller communication in which the customer controls the amount and type of information received from a marketer. True False

True

Interactive promotions put customers in control because they can gain immediate access to key product information when they want it. True False

True

Intermediaries that operate between producers and re-sellers are known as wholesalers. True False

True

It can be said that Glen Inc., a woolen products manufacturing company based in Switzerland, is a firm that uses a market-driven strategy because it produces goods based on local customers' experiences, needs, and preferences. True False

True

It can be said that the buying power enjoyed by customers has increased with Internet presence as the Internet provides detailed information that is not easily available elsewhere. True False

True

Long deflationary periods can cause a freefall in business profits, lower returns on most investments, and widespread job layoffs. True False

True

Major oil companies, such as ExxonMobil and Chevron, often donate large amounts of money toward political campaigns in an attempt to influence government policy in their favor. This is an example of environmental management. True False

True

Manufacturers engage in risk-taking when they create goods and services based on research and their belief that consumers need them. True False

True

Marketers are usually more concerned with the amount of discretionary income in households. True False

True

Marketers put the marketing strategy into action in order to monitor performance to ensure that objectives are being achieved. True False

True

Marketing myopia occurs when management fails to recognize the scope of its business. True False

True

Marketing strategy is an overall companywide program for selecting a particular target market and satisfying consumers through a careful blend of the elements of the marketing mix. True False

True

Maros, an agricultural biotechnology company, is the sole supplier of genetically engineered seeds and controls 84 percent of the market share for genetically modified crops. This is an example of a monopoly. True False

True

Middle and supervisorylevel managers spend less time as compared to CEOs on planning activities. True False

True

Mobile marketing is a term used to describe marketing messages sent via wireless technology. True False

True

Not-for-profit organizations are generally less concerned with the bottom line than for-profit organizations. True False

True

Not-for-profit organizations face complex decision-making issues about the correct markets to target as they often must market to multiple publics. True False

True

Not-for-profit organizations have numerous organizational objectives other than profitability due to their diversity. True False

True

On average, marketing expenses account for half of the costs involved in a product. True False

True

One way the Federal Trade Commission can enforce laws is by issuing a consent order in which a firm accused of violations can agree to voluntary compliance without admitting guilt. True False

True

Organizational resources include the capabilities of the firm's production, marketing, finance, technology, and employees. True False

True

Owen buys a car for himself. Owen has created ownership utility. True False

True

People develop standards of ethical behavior based on their own systems of values. True False

True

Planning often is classified on the basis of its scope or breadth. True False

True

Porter's Five Forces are potential new entrants, bargaining power of buyers, bargaining power of suppliers, threat of substitute products, and rivalry among competitors. True False

True

Product development partnerships and vertical alliances are two examples of strategic alliances. True False

True

Product-oriented rather than customer-oriented management endangers the future growth of an organization. True False

True

Production and marketing of goods and services are two basic functions that create utility. True False

True

Programs that improve customer service inside a company raise productivity and staff morale, resulting in better customer relationships outside the firm. True False

True

Promotion is the communications link between sellers and buyers. True False 56

True

Public and private consumer interest groups and selfregulatory organizations are part of the legal environment. True False

True

Relationship marketing moves customers up a loyalty ladder-from new customers to regular purchasers, then to loyal supporters of the firm and its goods and services, and finally to advocates who not only buy its products but recommend them to others. True False

True

Relationship marketing tries to rebuild damaged relationships and rejuvenate unprofitable customers. True False

True

Sears offers discount coupons and lowers prices on 1,000 items in the store in order to generate sales. This is most likely to occur during an economic recession. True False

True

Sentencing guidelines act as an incentive for corporations to implement effective ethics compliance programsif they are hauled into court, the existence of such a program can help reduce penalties. True False

True

Strategic alliances are necessary in countries where local laws require foreign companies to work with local businesses. True False

True

Sustainable products are products that can be produced, used, and disposed of with minimal impact on the environment. True False

True

Tactical planning usually involves the production of quarterly and semiannual plans, along with divisional budgets, policies, and procedures. True False

True

Targeting consumers in specific global markets represents a challenge. True False

True

Technological advancement helps reduce prices and offers superior, costefficient distribution methods. True False

True

Technological innovations create not just new goods and services but also entirely new industries. True False

True

The strategy of timebased competition can be advantageous to companies most affected by technology. True False

True

The Direct Marketing Association helps consumers to get their names removed from marketers' targeted lists. True False

True

The FTC and U.S. Department of Justice can stop mergers if they believe the proposed acquisition will reduce competition by making it harder for new companies to enter the field. True False

True

The Sherman Antitrust Act, Clayton Act, and Federal Trade Commission Act are evidence of federal commitment to maintaining a competitive business environment in the United States. True False

True

The U.S. military has historically been a source of product innovation and many of its technologies have been adapted for the consumer markets. True False 63

True

The United States is becoming culturally more diverse and subculture populations are rising. True False 65

True

The advent of a strong buyer's market created the need for consumer orientation by businesses. True False

True

The basic consumer rights expounded by President Kennedy include "the right to be safe," referring to the idea that the goods and services people buy should not be injurious in normal use. True False

True

The choice between pleasing all consumers and remaining profitablethus survivingdefines one of the most difficult dilemmas facing business. True False

True

The competition between Amtrak, Hertz, and Delta Airlines for the travelers' dollar is considered indirect competition because these services can be substituted for one another. True False

True

The cultural diversity of the United States results in various submarkets, each with unique values, cultural characteristics, purchasing behaviors, and consumer preferences. True False

True

The decision of whether or not to compete should be based on a firm's resources, objectives, and expected profit potential. True False

True

The demand for green products is increasing as consumers have responded by purchasing more and more green goods, providing profits and opportunities for growth to the companies that make and sell them. True False

True

The deregulation movement has ended total monopoly protection for most utilities. True False

True

The emergence of the marketing concept can be linked to the shift from a seller's market to a buyer's market. True False

True

The environmental scanning process helps firms to determine the best response to a particular environment change. True False

True

The expanded concept of marketing activities permeates all functions in businesses and not-for-profit organizations. True False

True

The five dimensions of the marketing environment are competitive, politicallegal, economic, technological, and socialcultural. True False

True

The government's Do Not Call Registry exempts callers representing notforprofit organizations and political candidates. True False

True

The industry deregulation phase has focused on increasing the competition in industries such as utilities and financial services. True False

True

The main purpose of the community development financial institutions certified by the U.S. Treasury Department is to educate lowincome borrowers. True False

True

The marketing era is defined by a shift in focus from products and sales to satisfying a consumer's needs. True False

True

The marketing era is the successive historical outcome of the production era. True False

True

The most obvious distinction between not-for-profit organizations and for-profit firms is the focus on generating revenues above and beyond the costs. True False

True

The newest regulatory frontier in the United States is cyberspace, where state and federal regulators are investigating ways to police the Internet and online services. True False

True

The planning process creates a blueprint that everyone in the organization must follow in order to achieve the organizational objectives. True False

True

The planning process identifies objectives and determines the actions that are needed to attain those objectives. True False

True

The private sector has an even greater array of not-for-profit organizations than the public sector. True False

True

The statement of Starbucks to "inspire and nurture the human spirit one person, one cup and one neighborhood at a time" is an example of a mission statement. True False

True

The traditional view of marketing can be described as transaction-based marketing. True False

True

To be most effective, the planning process should include input from a wide range of sources both internal and external to the organization. True False

True

Toyota's introduction of the hybridpowered Prius is an example of how it has turned public concerns and legal issues about the natural environment into an opportunity. True False

True

Virtually all colleges and universities have alumni associations that publish magazines, hold reunions, and try to raise funds. These activities constitute organization marketing. True False

True

Wesley Pvt. Ltd., can avoid marketing myopia by finding innovative ways to reach new markets with existing goods and services. True False

True

With increased availability of information, rivalry heats up among competitors who try to differentiate themselves from the crowd. True False

True

Within a business environment, the marketing function is responsible for the creation of time, place, and ownership utility, whereas the production function creates form utility. True False

True

Fred Foods Inc. provides free cereals and biscuits to support a program that aims to end hunger in various emerging nations. This is an example of _____ marketing. organization person cause place

cause

Some Florida drivers have license plates that say "Save the Manatee." This is an example of _____ marketing. organization cause place event

cause

Assume that a firm would like to expand its product line. A complete expansion would cost $100 million, but the firm can only raise $75 million in financing. This is best classified as a(n): constraint. opportunity. threat. instance of leverage.

constraint

DK Motors' difficulty in competing with other car makers due to its lack of responsiveness to changing consumer preferences constitutes a: strategic window. leveraged situation. threat from the environment. constraint on its activity.

constraint on its activity

In SWOT analysis, situations where organizations are unable to capitalize on opportunities because of internal limitations are referred to as: strategic windows. threats. constraints. leverages.

constraints

Relationship marketing can help a company: create longterm and costeffective links with individual customers and suppliers for mutual benefit. reduce its strategic planning effort since the need for such planning is greatly diminished by relationship marketing. locate more effective media for use in advertising and mass marketing. eliminate the strategic planning process and move into tactical plans directly.

create longterm and costeffective links with individual customers and suppliers for mutual benefit.

Effective relationship marketing often involves: inside information about competitors that is not in the public domain. databases to track customer preferences. large advertising budgets aimed solely at endusers. internal sources of performancerelated data.

databases to track customer preferences.

Baier Oil Co. encourages consumers to reduce oil consumption by engaging in environmentally friendly commuting through its promotional campaigns. It also provides tips for people to employ green commuting. These measures employed by the company to reduce the demand for oil shows that they are engaging in: socially responsible investing. demarketing. product redesigning. green marketing.

demarketing

The process of reducing consumer demand for a product to a level that a firm can reasonably supply is called __________. indirect marketing economic marketing direct marketing demarketing

demarketing

When Kevin analyzes recent data from the U.S. Census Bureau to uncover new markets for his firm's product, he is engaging in: demarketing. timebased competition. environmental scanning. marketing management.

environmental scanning.

The production, promotion, and reclamation of environmentally sensitive products is called _____. social media marketing green washing demarketing green marketing

green marketing

Relationship marketing refers to a firm's effort to develop longterm, costeffective links with individual customers and suppliers. Many companies: have been reluctant to adopt such initiatives because there is no evidence of their effectiveness. focus on relationship marketing as the sole purpose of their marketing research efforts. include relationshipbuilding goals and strategies in their larger plans for the organization. believe that relationship marketing is just a fad and may not be sustainable or profitable in the long run.

include relationshipbuilding goals and strategies in their larger plans for the organization.

Many companies use an approach called _____ to coordinate all promotional activities so that the consumer receives a unified and consistent message. intraorganizational communications internal marketing strategies integrated marketing communications corporate communications

integrated marketing communications

The future growth of a company is endangered when management: adopts a consumer orientation. is aware of the scope of its business. is committed to maintaining a product-oriented philosophy. is focused on converting customer needs to wants.

is committed to maintaining a product-oriented philosophy.

Operational planning: should be used to establish the fundamental strategies of the organization. is used to determine departmental rules and procedures. is the primary responsibility of the top management. should be completed at the same time the total budget is prepared.

is used to determine departmental rules and procedures.

Fame-us is a talent hunt agency focusing on the youth looking to enter Hollywood. As part of their marketing strategy, Fame-us generates time and place utility by: creating a nationwide advertising campaign to attract applicants. launching roadshows across cities and conduct talent hunts at campuses during Thanksgiving. endorsing their services using famous celebrities from Hollywood. opening a well-quipped studio with pre and postproduction facilities.

launching roadshows across cities and conduct talent hunts at campuses during Thanksgiving.

Alliances are considered essential in countries where: markets are monopolistic in nature. laws require foreign firms doing business there to work with local companies. partners combine resources and capital to create competitive advantages in an established market. efforts are required to achieve organizational objectives by predicting and influencing the technological environments.

laws require foreign firms doing business there to work with local companies.

Matching an internal strength with an external opportunity produces a situation known as: leverage. constraint. vulnerability. plateau.

leverage

Strategic planning has a critical impact on a firm's destiny because it provides _____ to its decision makers. customer input individual goals departmental goals longterm direction

long-term direction

In the relationship era, firms focus on: short-term relationships with suppliers. long-term relationships with customers and suppliers. short-term relationships with customers and suppliers. short-term relationships with customers.

long-term relationships with customers and suppliers.

When a massive fuel hike affected the expenses of users of Cadmia significantly, Flare Inc. introduced automobiles that run on solar energy. The introduction of such automobiles indicates that Flare Inc.: switched over to less sustainable fuels. recognized its competitive constraints. applied a secondmover advantage. made the best of a strategic window.

made the best of a strategic window.

In not-for-profit organizations, _____ may interfere with the organization's marketing program. stockholders the government service-users major contributors

major contributors

The performance framework developed by the Boston Consulting Group (BCG) plots: market share against market growth potential. market attractiveness against number of product lines. current market conditions against past trends. performance in test markets before a fullscale rollout.

market share against market growth potential.

The activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have values for customers, clients, partners, and society at large is called _____. marketing financing operations administration

marketing

Mobile marketing refers to: running promotional campaigns on transport media like trains and airplanes. marketing messages transmitted via wireless technology. promoting associated products or services alongside mobile technologies. the use of online social media as a communications channel for marketing messages.

marketing messages transmitted via wireless technology.

The strategic business unit (SBU) concept is best identified as a: planning tool that separates tactical and operational issues for analysis. strategic approach used primarily to separate marketing costs from production expenses. marketing planning tool that best suits the needs of large, diversified organizations. marketing approach appropriate for small enterprises producing a single product..

marketing planning tool that best suits the needs of large, diversified organizations.

The _____ is the organizational program for selecting a target market and satisfying customers in that market through the marketing mix. operational plan marketing strategy relationship marketing approach shortterm plan

marketing strategy

Employees of Popsie Inc., a small grocery store chain, are working on its tactical plans. The personnel most involved in this level of its planning process would be its: top management, such as the owner. middle management, such as the merchandising and advertising managers. store managers. supervisory management, such as shift managers and night auditors.

middle management, such as the merchandising and advertising managers.

The basic objectives or goals of an organization are derived from its: standard operating procedures. operational plans. supervisory management strategy. mission statement.

mission statement

A market structure in which a single seller dominates trade in a good or service for which buyers can find no close substitutes is called a(n) _____. oligopoly monopoly monopsony perfect market

monopoly

In terms of the BCG Matrix, which of the following SBUs are characterized by earning only low market shares in lowgrowth markets? Stars Question marks Dogs Cash cows

Dogs

A seller's market is one in which there are more goods and services than people willing to buy them. True False

False

A service user of a not-for-profit organization has more control over the organization's destiny than customers of a profit-seeking firm. True False

False

A statement such as "to hit the 300 employee mark by the end of the year" is typically a part of a mission statement. True False

False

Which of the following is an example of indirect competition? A Sony home entertainment system competing with a Jacuzzi hot tub An ExxonMobil station opening across the street from a Shell retail outlet Competition among Verizon, AT&T, and TMobile The purchase of a Honda Accord competing with a Toyota Camry

A Sony home entertainment system competing with a Jacuzzi hot tub

Jonathan Nash, aged 60, feels young at heart and spends most of his leisure time networking with family and friends online or surfing the Web. He can be characterized as: a social animal a generation Xer a baby boomer a Web addict

A baby boomer

Which of the following is true regarding the marketing concept? During tough economic times, the marketing concept focuses on the objective of achieving short-term profits instead of long-run success. The marketing concept believes that consumers will resist purchasing non- essential goods and services. The marketing concept emphasizes cutting costs and boosting revenues during tough economic times. A firm's survival and growth are built into the marketing concept.

A firm's survival and growth are built into the marketing concept.

Which of the following is an example of person marketing? A firm creating awareness of the importance of using public transport. A country promoting its sightseeing spots and cuisines. A mall being inaugurated by a popular commercial actor. A firm promoting an interstate soccer match.

A mall being inaugurated by a popular commercial actor.

Which of the following refers to marketing myopia? A company-wide consumer orientation with the objective of achieving long-run success A market in which there are more buyers for fewer goods and services A management's failure to recognize the scope of its business A market in which there are more goods and services than people willing to buy them

A management's failure to recognize the scope of its business

If a company such as J.B. Trucking wanted to avoid marketing myopia, it should define its business as: a provider of transportation solutions. a trucking company. a materials handling company. a freight hauling firm.

A provider of transportation solutions.

Which of the following is true of a strategic business unit? A strategic unit directly adopts the mission of its parent organization. Each strategic unit depends on plans of the other units in the organization. A strategic unit has its own managers, resources, objectives, and competitors. A strategic unit is a key business unit within a small company that does not differ significantly from the parent company.

A strategic unit has its own managers, resources, objectives, and competitors.

HandyBrands Inc., a consumer goods company, engages in the design, manufacture, sourcing, and sale of apparel essentials in the United States and abroad. They have a very good etailing portal. Online shopping constitutes 40 percent of their sales. Recently, they have faced complaints by customers that orders are not getting processed. The reason was the existence of a website with similar content and an identical domain name. HandyBrands Inc. should take the help of the _____. Electronic Signature Act Anticybersquatting Consumer Protection Act Identity Theft and Assumption Deterrence Act Credit Card Accountability, Responsibility and Disclosure Act

Anticybersquatting Consumer Protection Act

Which of the following best represents a mission statement? U.S. Army: Be all that you can be Bass Pro Shop: To be the leading merchant of outdoor recreational products, inspiring people to love, enjoy, and conserve the great outdoors Kellogg's: Breakfast cereals at a price everyone can afford Walmart: Stores big enough to make shopping interesting for every family member

Bass Pro Shop: To be the leading merchant of outdoor recreational products, inspiring people to love, enjoy, and conserve the great outdoors

The Council of Better Business Bureaus is a national organization devoted to consumer service and _____. business selfregulation deregulation corporate lobbying socially responsible investing

Business self-regulation

Which of the following forms the first half of the exchange process? Standardizing Buying Selling Storing

Buying

According to the BCG market share/market growth matrix, the SBU that produces strong cash flows which can be used to finance the growth of other SBUs is the: dog. question mark. cash cow. laggard.

Cash Cow.

One of General Electric's business units produces a variety of light bulbs and generates healthy revenue. The revenues of this business unit are used to finance the growth of other business units with higher growth potentials. How would this unit be classified on the BCG market share/market growth matrix? Cash cow Star Question mark Dog

Cash cow.

Phoebe was asked to bring a can of food for the local food bank as the "price of admission" for a certain ceremony. This is an example of _____. person marketing organization marketing ownership utility cause marketing

Cause marketing

Which of the following best describes the activity of promotion? Making new products available to meet consumer demand Finding a convenient location to sell the products in Maintaining a high level of regulation in production Communicating between buyers and sellers

Communicating between buyers and sellers

A stayathome mother, a high school senior, and a retired government employee are considered unemployed if they do not have a job and don't want one. True False

False

A strategic alliance is defined as a partnership between a for-profit business and a not-for-profit organization True False

False

The business philosophy incorporating the marketing concept that emphasizes first determining unmet consumer needs and then designing a system for satisfying them is known as: customer persuasion. consumer orientation. aggressive marketing. sales orientation.

Consumer orientations

Which of the following protects the consumer by exerting legal, moral, and economic pressures on business and government? Consumerism Corporate branding Socialism Capitalism

Consumerism

Which of the following is a trend usually observed during an economic depression? Consumers are willing to spend more for premium versions of wellknown brands. Consumers have money to spend, but caution often restrains their willingness to buy. Consumers focus on more basic, functional products that carry lower price tags. Businesses offer new products, expand distribution, and raise prices to widen profit margins.

Consumers focus on more basic, functional products that carry lower price tags.

Corea Inc., a pharmaceutical company, is involved in the research, development, manufacture, and marketing of prescription medicines. A new drug developed by Corea has been awarded patent rights by the U.S. Food and Drug Administration. The patent grants them exclusive rights to manufacture and market the drug for 3 years. Based on this information, which of the following statements will be true? Corea Inc. will operate in a market with monopolistic competition. Corea Inc. will have exclusive rights to produce and market the product forever. Corea Inc. will operate in a perfectly competitive market. Corea Inc. will have a temporary monopoly in the market for this drug.

Corea Inc. will have a temporary monopoly in the market for this drug.

Which of the following is the newest regulatory frontier for federal and state regulators in the United States? Protecting competitors Industry deregulation Antimonopoly Cyberspace

Cyberspace

_____ can lead to a damaging downward spiral, causing a freefall in business profits, lower returns on most investments, and widespread job layoffs. Deflation Lower interest rates Inflation A federal budget surplus

Deflation

Which of the following has ended total monopoly protection for most utilities like natural gas, electricity, water, and cable TV service? Deregulation movement Disinvestment Temporary monopoly Perfect competition

Deregulation movement

William Cutlery Inc. sells its products at its stores and via door-to-door sales. Selling, order taking, delivery, and limited customer service are all conducted by the drivers. Which two marketing functions overlap as a result of the drivers' required responsibilities? Facilitation and distribution Exchange and facilitating Distribution and exchange Exchange and financing

Distribution and exchange

Which of the following components of the marketing environment consists of factors that influence consumer buying power and marketing strategies? Competitive environment Cultural environment Economic environment Regulatory environment

Economic Environment

Which of the following defines an organization's mission? Process of anticipating future events and conditions Companywide program for scaling down the productlines that are low on profitability Essential purpose that differentiates one company from others Collection of limited periods during which key requirements of a market and a firm's particular competencies best fit together

Essential purpose that differentiates one company from others.

As an official sponsor of the Olympics, The Coca-Cola Company engages in _____ marketing. place event person organization 125

Event

The Tour de Cure is a bicycle ride, not a race, to raise money for the American Diabetes Association and is held in 40 states nationwide. This is an example of: event marketing. organization marketing. person marketing. place marketing.

Event marketing

Financing is one of the _____ functions of marketing. exchange distribution decisional facilitating

Facilitating

A customer of All World Bank receives telemarketing calls and emails from the bank's business partners, Specialty Insurance and Global Investments. Since the customer has signed into the Do Not Call Registry, these companies are in violation of the federal regulation. True False

False

A firm describes its overall goals and operational scope in its standard operating procedures manual. True False

False

A large pharmaceutical company invents a very small device that can be implanted in people with diabetes to provide timereleased amounts of insulin. A patent for this invention will set up a temporary oligopoly for the company. True False

False

A major constraint on consumer spending is deflation, which devalues money by reducing the products it can buy through persistent price increases. True False

False

A pharmaceutical company that owns a patent for a new drug obtains exclusive rights to produce and market that drug for an entire lifetime. True False

False

News reports from Zimbabwe indicate that a small pack of locally produced coffee beans costs approximately 1 billion Zimbabwean dollars, an amount that would have bought 60 new cars less than ten years ago in the same country. It can be surmised that Zimbabwe is experiencing extremely high levels of _____ which has spiraled out of control in the past ten years. growth stagflation deflation inflation

Inflation

Which of the following devalues money and reduces its purchasing power through persistent increase in prices? Disinflation Stagflation Inflation Deflation

Inflation

Which of the following is a critical issue facing governmental agencies regarding ethics in marketing research? Personal selling Truth in advertising Planned obsolescence Invasion of personal privacy

Invasion of personal privacy

Which of the following holds true regarding relationship marketing? It applies only to individual consumers and employees. It affects distributors as well as other types of corporate partnerships. It does not allow marketers and customers to customize their communication. It is a buyer-seller communication in which the marketer controls the amount and type of information received from a customer.

It affects distributors as well as other types of corporate partnerships.

Which of the following is true of relationship marketing? It focuses on finding new customers. It prefers not to maintain existing customers due to high costs. It does not believe in generating repeat sales. It believes in maintaining existing customers.

It believes in maintaining existing customers.

Which of the following is true of a company with strong market orientation? It designs products with advantages and levels of quality compatible with its competitors. It assumes that customers will resist purchasing non-essential goods. It stresses on efficiency in producing a quality product, with the attitude toward marketing that "a good product will sell itself." It has a focus on new-product development and the introduction of innovative products.

It has a focus on new-product development and the introduction of innovative products.

Which of the following statements is true of tactical planning? It is conducted exclusively by the supervisory personnel. It is used to generate weekly plans, unit budgets, departmental rules and procedures. It is designed to determine annual budgets and longrange strategic goals. It is performed to substitute the strategic planning process in large organizations.

It is designed to determine annual budgets and longrange strategic goals.

Which of the following statements is true regarding a monopoly? It is enjoyed by an organization who is the sole suppliers of a good or service. It is common in the telecommunications industry. It cannot be achieved temporarily, even through the use of patents and similar legal devices. It is the most common type of competition in the U.S. market.

It is enjoyed by an organization who is the sole suppliers of a good or service.

The marketing philosophy summarized by the phrase "a high-quality product will sell itself" is a characteristic of the _____ era. production sales marketing relationship

Production

In Australia, consumer spending in the past few months has seen an upward trend, and buyers are willing to spend more on premium brands. From this pattern, we can say that Australia is in the _____ stage of the business cycle. recovery prosperity recession depression

Prosperity

The history of U.S. government regulation can be divided into four phases: the antimonopoly period, _____, consumer protection, and industry deregulation. protecting trade protecting competitors protecting cyberspace protecting privacy

Protecting competitors

In the recovery period, which type of firms have the best possible chance to create loyal customers by providing exceptional service? Brands Sick units Providers of superior services at lower prices Price skimmers

Providers of superior services at lower prices.

A company can modify a strategy when its actual performance is not in line with expected results by: redefining the firm's mission. focusing exclusively on longrange strategic issues. putting the marketing strategy into action and monitoring performance. interpreting the mission, vision, and values of the company differently.

Putting the marketing strategy into action an monitoring performance.

According to the BCG market share/market growth matrix, _____ typically require more cash than they generate. cash cows stars question marks achievers

Question marks

MedicaPlus, a pharmaceutical company, is finding it difficult to track and locate slow moving medicines. Pharmaceutical distributors have been complaining about the time it takes for their orders to arrive. One technology that can be used effectively to shorten this waiting period, locate, and track items easily is: VoIP. Logistics. RFID. GPS.

RFID

During which phase in the business cycle do marketers consider lowering prices and increasing promotions that include special offers to stimulate demand? Prosperity Recession Growth Maturity

Recession

It is believed that marketers need to reevaluate their strategies and concentrate on their most promising products during the _____ stage of the business cycle. recession recovery maturity prosperity

Recession

The Robinson family recently bought a car as they were offered a nointerest financing option. The family's annual vacation was also booked through a discount travel firm. The family has purchasing power, but they prefer to spend their money cautiously like most other families in the country. The above stated instances indicate which stage of the business cycle? Depression Prosperity Recession Recovery

Recovery

Which of the following stages in the business cycle forces businesses to hold down costs, trim payrolls, and cut down travel costs in order to earn profits and cope with uncertain consumer demand? Recovery Growth Prosperity Maturity

Recovery

A SWOT analysis helps planners compare internal organizational strengths and weaknesses with external opportunities and threats. True False

True

In the practice of relationship marketing, the definition of a customer is taken to another level. Which of the following best illustrates how a company practicing relationship marketing is different from a traditional transaction-based marketer? The city pool allows kids 12 years and younger to swim for free on Fridays. A local coffee shop distributes coupons for $.50 off each cup of coffee. The purchasing department of a defense contractor invites its suppliers to attend an annual golf outing. The heads of the financial departments meet with the Chief Financial Officer to discuss year- end financial reporting

The purchasing department of a defense contractor invites its suppliers to attend an annual golf outing.

The four basic consumer rights are: the right to be informed, the right to be heard, the right to be safe, and: the right to feedback. the right to choose freely. the right to sue. the right to demand.

The right to choose freely

An automobile manufacturer is dependent on a single supplier for tires. Based on this information, which of the following statements is true? The barriers to market entry are low. The buyer has greater bargaining power. The threat of new entrants is high. The supplier has significant bargaining power.

The supplier has significant bargaining power

A shoe manufacturer has multiple suppliers for leather. Based on this information, which of the following statements is true? The suppliers have lesser bargaining than the buyer. The barriers to market entry are high. The rivalry among competitors is low. The buyer has lesser bargaining power than the suppliers.

The supplier have lesser bargaining than the buyer

Which of the following was the prime reason behind the formation of regulations aimed at protecting competitors? To provide legal protection to independent merchants against competition from larger chain stores To reduce the concentration of industry power in the hands of a small number of competitors To increase competition in industries like telecommunications, utilities, transportation, and financial services by discontinuing many regulations To permit firms to expand their service offerings to new markets by discontinuing many regulations

To provide legal protection to independent merchants against competition from larger chain stores

What is the ultimate objective of relationship marketing? Find new customers Create regular purchasers Turn customers into advocates Turn customers into loyal supporters

Turn customers into advocates

A leading eLearning company is expanding its operations in Japan. To ensure smooth communication between branches, it needs a communication technology which provides facilities such as call plans, call waiting, and three way calling. Additionally it would like to keep costs low. Which technology should it adopt? IMS VoIP JIT RFID

VoIP

The utility of a product or service is its: want-satisfying power. re-usability. function as a commodity. design quality.

Want-satisfying power

Which of the following conditions would lead a company's marketers to find a new market, change prices, or compete in other ways to maintain an advantage? When the bargaining power of suppliers is low When the bargaining power of buyers is low When the threat of substitute products is high When the threat of new entrants it low

When the threat of substitute products is high

The term marketing mix describes: a composite analysis of all environmental factors inside and outside the firm. a series of business decisions that aid in selling a product. the relationship between a firm's marketing strengths and its business weaknesses. a blend of the four strategic marketing elements to satisfy specific target markets.

a blend of the four strategic marketing elements to satisfy specific target markets

A gaming corporation and a mobile manufacturer work together to develop unique games which are made available on the applications of the phones. This is an example of: an exchange function. marketing research. social marketing. a strategic alliance.

a strategic alliance

The airline industry in a particular country has only four dominant players. Large capital investments and government regulations often prevent new players from entering the market. Based on this information, the structure of the airline industry in this country is _____. a duopoly perfectly competitive an oligopoly a monopoly

an oligopoly

Atari, a consumer electronics and video games company, observed the innovations of Nintendo Co., the most powerful video game company at that time, and destroyed the market share of Nintendo eventually. This implies that Atari: followed a firstmover strategy. created a new product indigenously. remained uninfluenced by Nintendo. applied a secondmover strategy.

applied a second-mover strategy.

The basic objective of place marketing is to: attract visitors or new businesses to a particular area. influence others to accept the goals of the sponsoring organization. convince people to attend a sporting or cultural event. bring to the attention of the public some charitable issue.

attract visitors or new businesses to a particular area

Which of the following is a dimension of Porter's Five Forces model? Bargaining power of buyers Existence of secondmovers Existing firms in the business environment Rivalry among strategic business units

bargaining power of buyers

Marketing planning establishes the: resource base provided by the firm's strategy. economic impact of additional sales. daily and weekly schedules for individual employees. basis for any marketing strategy

basis for any marketing strategy.

The rule of three states that the three leading firms in an industry will control _____ percent of the market. less than 25 less than 50 between 70 and 90 100

between 70 and 90

An example of interactive marketing would be: a customer creating their own products, as in the case of Subway or Build-a-Bear. an intermediary wholesaler who links sale of goods from manufacturer to consumer. buyer-seller communication through the Internet and virtual reality kiosks. sponsoring local sports teams.

buyer-seller communication through the Internet and virtual reality kiosks.

Interactive marketing refers to: sequential marketing efforts beginning with front-line salespersons and proceeding to detailed instructions by a technical expert. marketing efforts vis-a-vis interactive programs where customers can post their queries directly to the management. buyer-seller communications in which the customer controls the amount and type of information received from a marketer. software-controlled marketing strategy which uses central databases to segment the market on various demographic and psychographic factors.

buyer-seller communications in which the customer controls the amount and type of information received from a marketer.

Sally Myers, head of marketing at Sally's Salon, serviced six new customers over the past two weeks. Through a feedback form, Sally learned that all of them had acted upon the opinions of their friends and family members. What Sally encountered is an example of: transaction-based marketing. sales orientation. marketing myopia. buzz marketing.

buzz marketing

The Telecommunications Act of 1996 was passed to: set annual fees for telemarketers to access the Do Not Call Registry. create the national Do Not Call Registry prohibiting telemarketing calls to registered numbers. deregulate the telecommunication industry by removing barriers to competition. prohibit the sale of cell phone records.

deregulate the telecommunication industry by removing barriers to competition.

The amount of money available with people after buying necessities such as food, clothing, and housing is referred to as _____. basic income gross income discretionary income personal income

discretionary income

Decisions involving transportation, warehousing, inventory control, and order processing relate to the _____ strategy component. pricing competitive product distribution

distribution

Maxwell has been promoted to an upperlevel management position at QVC. He will be involved in matters relating to transportation media, order processing, and development of marketing channels. Maxwell is involved in developing _____ strategies for the marketing team. product distribution promotional test marketing

distribution

YOU Inc., a radio cassette manufacturer, sold its business due to poor market shares. According to the BCG Matrix, the firm sold its business because the business had become a _____ as seen in its poor prospects and performance. star question mark cash cow dog

dog

Product lines, pricing decisions, selection of appropriate distribution channels, and decisions relating to promotional campaigns are____. fixed and unchanging independent of the impact of external factors dynamic in today's boundaryless business environment determined from a purely retrospective viewpoint

dynamic in today's boundaryless business environment

An international apparel manufacturer changed its pricing strategy as it entered a new market where recessionary trends are being observed. This implies that the _____ factors of the marketing environment led the firm to change its pricing decisions. legal political environmental economic

economic

Achieving organizational objectives by predicting and influencing the competitive, politicallegal, economic, technological, and socialcultural environment is referred to as _____. research and development marketing research environmental management SWOT analysis

environmental management

A pharmaceutical company that works with the Food and Drug Administration to create new regulations is practicing: strategic planning. environmental scanning. marketing research. environmental management.

environmental management.

The goal of _____ is to analyze information and decide whether the identified trends represent significant opportunities or pose major threats to the company. environmental scanning green marketing benchmarking social marketing

environmental scanning

The process of collecting information about the external marketing environment to identify and interpret potential trends is called _____. market profiling target marketing marketing management environmental scanning

environmental scanning

Monitoring local newspapers and television news shows for general information relating to a firm's business would be an example of: environmental scanning. economic analysis. sociopolitical manipulation. technological development.

environmental scanning.

Relationship marketing focuses more attention on _____ customers because new customers are _____ to acquire compared to existing customers. existing; less expensive new; less expensive existing; more expensive new; more expensive

existing; more expensive

ACB Ltd. provides credit to dealers, as well as buyers of Alfresco Automobiles. The marketing function performed in this case is: financing. exchange. distribution. risk taking.

financing

Core competencies are capabilities that customers value and competitors: can easily copy. tend to overestimate. find difficult to duplicate. undervalue.

find difficult to duplicate

Marketers must constantly monitor their competitors' products, prices, distribution, and promotional efforts because: competitors may be violating truthinadvertising laws. it can lower a firm's command over the market price. it will help prevent indirect competition. firms may need to adjust their marketing mix based on new competing products.

firms may need to adjust their marketing mix based on new competing products.

Creating _____ utility is the responsibility of the production function. place form time ownership

form

Noel Pvt. Ltd. combines metal, rubber, and other components in the production of appliances. In doing so the company creates _____ utility. ownership form place time

form

To acquire regional expertise and comply with the local laws of a country, international firms often find it desirable to: form political action committees. export goods and services to that country. form strategic alliances with domestic companies in that country. relocate manufacturing facilities to that market.

form strategic alliances with domestic companies in that country.

By converting indifferent customers into loyal ones through relationship marketing, companies can: increase the cost of maintaining existing customers. start a process by which customers become bound contractually to the business. avoid the necessity of improving customer service in the long run. generate repeat sales.

generate repeat sales.

The financing function of marketing involves: making sufficient quantities of goods available in the marketplace. ensuring products meet established quality and quantity standards. providing funds to buyers for building inventories prior to sales. using advertising, personal selling, and sales promotion to match goods and services to customers.

providing funds to buyers for building inventories prior to sales.

The BCG market share/market growth matrix classifies products with a low relative share of a highgrowth market as _____. stars question marks cash cows dogs

question marks.

Promotional schemes like frequent shopper programs provide incentives to loyal buyers. Considering Porter's Five Forces model, such offers will: reduce the threat of new entrants. decrease the rivalry among competitors. decrease the bargaining power of the supplier. increase the threat of substitute products.

reduce the threat of new entrants

When marketers apply quantity control standards, they are: engaging in the process of exchange. reducing the need for purchasers to inspect each item they purchase. determining the amount an individual will be allowed to buy on credit. developing channels of distribution for a product.

reducing the need for purchasers to inspect each item they purchase.

In marketing, the term product: refers only to tangible items that can be seen, tasted, or touched. refers to a broad concept encompassing the satisfaction of consumer needs. limits itself to include goods alone. excludes package design, brand name, or warranty from its purview.

refers to a broad concept encompassing the satisfaction of consumer needs.

Pharmaceutical companies often get patents granting them the exclusive right to produce and market drug formulations they have developed. These patents are: the result of noncompete agreements signed by pharmaceutical firms. in violation of ethical principles on which business is based. probably of little use because what one firm can patent, another can duplicate. rewards for the millions that firms have invested in the research and development process.

rewards for the millions that firms have invested in the research and development process.

Carmen is a marketer for a global consumer products company. She is designing a promotional campaign for a foreign market and wants to ensure that the promotional campaign is clearly understood by the target consumers. She is also taking special care to see that the campaign is free from controversies and does not inadvertently offend anyone. In this scenario, Carmen is specifically trying to take into account variables of the country's _____ environment. socialcultural politicallegal competitive economic

socialcultural

According to the BCG market share/market growth matrix, the revenues earned from cash cows should be used to finance the growth of: question marks and dogs. dogs and stars. stars and question marks. question marks and cash cows.

stars and question marks.

What are the subfunctions of physical distribution? Buying, selling, and financing Risk taking and market research Storing and transporting Standardizing and grading

storing and transporting

ADA Inc. stopped its production of oral care goods after determining apparel production to be its new primary objective. This is a direct result of the _____ planning process at ADA Inc. tactical research strategic economic

strategic

Comcast's NBC division acquired Universal Studios and the highest executive who approved this acquisition was most likely Comcast's CEO. This decision is the direct result of _____ planning process at Comcast. tactical strategic operational technological

strategic

If an automobile manufacturer was planning to introduce a sports car powered by a hydrogenoxygen fuel cell when the price of gasoline in the United States reached $4 per gallon, this would best be described as a direct result of its _____ plan. shortterm operational strategic tactical

strategic

In the planning hierarchy, plans dealing with organizationwide objectives, longterm plans, and the total budget would be classified as _____ plans. weekly tactical operational strategic

strategic

The U.S. Sports and Fitness Federation is determining where they should build their permanent training facility. They want it to be located near a populated center but it must also provide ample access to those who don't reside in cities. The federation is engaged in _____ planning. strategic shortterm operational economic

strategic

Friums & You, a Canadian firm, together with its subsidiaries, manufactures and markets snacks, confectionery, and quick meal products worldwide. The firm has been trying to expand its business into China. As Chinese laws require foreign firms to do business with local companies, Friums & You will have to be involved in a _____ to start operations in China. limited liability partnership buyout strategic alliance hostile takeover

strategic alliance

The Coffee Cup, a popular coffee chain in Switzerland, is trying to expand its business into Canada. It decides to enter into a partnership with a Canadian bookstore chain to set up coffee shops inside bookstores, an arrangement which will benefit both firms. This type of partnership that helps to create a competitive advantage in a new market is known as a _____. strategic alliance franchising agreement joint venture buy out

strategic alliance

As chief executive of Stalwart Shipfitting Company, a diversified producer of marine supplies and equipment, John needs a method for spotting promising product lines that warrant commitment of additional resources, as well as those that should be removed from the firm's product portfolio. A good choice for this firm at this stage would be to use: computer models. strategic business units. a marketing audit. an industry analysis.

strategic business units.

At a time when computer users were having trouble storing, sending, and displaying photos, Apple introduced the iMac computer, which was equipped with a digital camera interface and photohandling software. This product was a result of Apple recognizing its: economies of scale. competitive constraints. strategic window. secondmover benefits.

strategic window.

The limited occasions when the key requirements of a market and the particular competencies of a firm best fit together are referred to as: barriers to entry. strategic windows. question marks. threats.

strategic windows.

A certain social networking corporation has the highest number of users in the social networking industry. This is an example of the firm's: opportunity. constraint. strength. threat.

strength

A SWOT analysis is designed to reveal, among other things, a firm's core competencies, which reflect its: threats. strengths. opportunities. vulnerabilities

strengths

Last summer, the Thomas family had to decide whether to buy a new car, go to Disney World, or remodel their basement. They chose the vacation. This illustrates: that competition can be defined in terms of dissimilar products vying for a limited supply of discretionary buying power. how the most direct form of competition plays a role in a consumer's decision making. how competition for essential items leaves unlimited discretionary funds for nonessentials. that there can be no competition among dissimilar products.

that competition can be defined in terms of dissimilar products vying for a limited supply of discretionary buying power.

An example of a threat to a firm discovered by a SWOT analysis might be: the presence of cost advantages due to advanced technology. the chance to acquire firms with the needed technology. the entry of new competitors in the industry. the narrow product line produced by the firm.

the entry of new competitors in the industry.

Decisions relating to the product strategy primarily revolve around _____. the promotional offers that would increase the visibility of the product in the market the features of the products being released in the market the choice of high/low or everyday low pricing by the company the selection of wholesalers and retailers to transport the stock to the market

the features of the products being released in the market

Bell Weddings was the company that pioneered the wedding planning industry. The owners realized that customizing weddings to the wishes of the families, taking charge of the responsibilities, and creating a day that is memorable for clients was an incredible business venture. The case of Bell Weddings illustrates the value of _____. organizational vulnerabilities the first mover strategy operating plans portfolio analysis

the first mover strategy

Ethics are: beliefs or customs taught by one generation to the next, often orally. the social causes promoted by the company. established patterns of behavior that can be objectively verified within a particular social setting. the moral standards of behavior expected by society.

the moral standards of behavior expected by society.

The emergence of the marketing concept can best be explained by: higher production levels. greater sophistication in the production of goods. the shift from a seller's market to a buyer's market. a focus on product quality.

the shift from a seller's market to a buyer's market.

Buying and selling are: the two exchange functions of marketing. physical distribution functions. exchange and distribution functions, respectively. distribution and exchange functions, respectively.

the two exchange functions of marketing

Lockheed Martin won the largest military contract ever by proving it could be the first company to develop and fly a new model plane. This illustrates the importance of _____. rapid prototyping of new products demarketing timebased competition the legal environment

time-based competition

Compared to other organization personnel, more time is devoted to longrange strategic planning by the: middle management. manufacturing labor. top management. supervisory management.

top management

Decisions about distribution strategy primarily involve challenges such as: how to advertise the product. how to position a product. when to raise prices to cover costs. which marketing channels to adopt.

which marketing channels to adopt.

The first step of the marketing planning process involves: writing the mission statement. establishing organizational objectives. formulating a marketing plan. hiring a senior planner. 92

writing the mission statement