Exam 1 - Principles of Marketing

Marketing Managers strive to develop a marketing mix that a. minimizes marketing cost b. matches what competitors are offering c. best matches the abilities of the firm d. matches the need of the target market e. generates the highest level sales

D. matches the need of the target market

Which of the following company's is the best example of a service marketer? a. FedEx b. Sony c. Abercrombie & Fitch d. The democratic party e. General electric

a. FedEx

Companies delivering mixed concrete know that it cannot be shipped farther than twenty-five miles because the concrete might harden in the truck. Citrus County Concrete Company is the only supplier of mixed concrete to customers within a thirty-mile radius. Citrus County Concrete is an example of which one of the following competitive structures? a. Monopoly b. Oligopoly c. Monopolistic competition d. Pure competition e. Monopsony

a. Monopoly

The forces of the marketing environment include a. political, legal and regulatory, sociocultural, technological, economic, and competitive. b. sociocultural, legal, regulatory, economic, pricing strategies, and competitive. c. legal, regulatory, political, sociocultural, pricing strategies, and technological. d. legal and regulatory, competitive and noncompetitive forces that affect most lifestyles. e. political, legal and regulatory, pricing strategies,fairly static components.

a. Political, legal and regulatory, sociocultural, technological, economic and competitive

When Ikea showcases rooms of furniture on its website, it lists each item in the room. However, if customers like all of the items, they can purchase them as a bundle. Which of the following aspects of the marketing mix is Ikea likely altering? a. Price b. Promotion c. Distribution d. Product e. Target market

a. Price

A SWOT analysis focuses on an organization's: a. Strengths, Weaknesses, Opportunities, and Threats. b. Strengths, Weaknesses, Opportunities, and Transformational Innovations. c. Sustainability, Weaknesses, Organics, and Threats. d. Strengths, Workers, Opportunities, and Transactions. e. Sustainability, Weaknesses, Opportunities, and Transactions.

a. Strengths, Weaknesses, Opportunities, and Threats

A(n) ____ is a collection of information arranged for easy access and retrieval. a. database b. marketing information system c. marketing decision support system d. online information service e. e-mail system

a. database

In 2009 the Coca-Cola Company introduced the "Freestyler," a new free-standing soda dispensers where consumers can chose from over 120 different types of soda and customize their drink. Freestylers would take the place of typical dispensers where there are only a few different types of soda brands available. In order to develop the new dispenser, Coca-Cola collected information on the soda-drinking habits of individuals in several different age groups, as well as information about new technologies for dispensing liquids from vending machines and the sales of its "fountain" syrup for national restaurant chains to use in their soda machines. Coca-Cola's collection of this information is an example of _____ while the assessment of its impact on the potential for the new "Freestyler" is an example of _________ a. environmental scanning; environmental analysis b. an environmental force; environmental scanning c. environmental analysis; environmental strategy d. strategizing; environmental scanning e. strategic management; environmental scanning

a. environmental scanning; environmental analysis

Peter, the director of marketing at Holcomb, Inc., calls in Andrea, the firm's marketing research director. Peter wants a study done to assess the company's image relative to a new competitor, Levitt Labs. He has a flexible time schedule, has very little money to devote to the research, and feels that a relatively low response rate will not be a major problem. Andrea will probably recommend using a ____ survey. a. mail b. telephone c. random d. personal interview e. population

a. mail

Apple is known for product innovation and the creation of products that meet needs consumers didn't realize they had, such as using an iPad to easily access the Internet, read books, and play games. In order to develop and deliver products to consumers that are high in value and successful, the firm implements a variety of ________ activities in order to stay abreast of consumer trends, preferences, and determine the potential for success of new products. a. marketing research b. competitive intelligence c. econometric analysis d. employee engagement

a. marketing research

An overall plan for obtaining the information needed to address a research problem or issue is called the a. research design. b. problem recognition. c. hypothesis. d. data collection method. e. sampling procedure.

a. research design

A commercial for the drink SunnyD explains how nutritious it is in comparison to other, more "sugary" drinks. While children under 12 are the most likely consumers of SunnyD, the commercial is aimed at mothers. These mothers represent SunnyD's a. target market b. customer advocates c. marketing strategy d. marketing mix e. marketing tactic

a. target market

Rollins Steel Corporation, a leader in industrial supplies, has identified its auto battery unit as having a dominant market share; however, it has low prospects for growth. The unit currently generates more cash for Rollins Steel than is required to maintain its market share. According to the Boston Consulting Group, the auto battery unit would be classified as a _____ a. dog. b. cash cow. c. star. d. cash contributor. e. question mark.

b. Cash cow

Marketers live in a world of constant change, and their ability to adapt to the pace of change will dictate the degree to which their marketing strategies are successful. Moreover, the changes can come in any or all of the different parts of the marketing environment. Which one of the following statements is true? a. The self-sustaining nature of technology relates to the fact that the products are increasingly being produced with environment-friendly components. b. The negative effects of technology include concerns over privacy and intellectual property protection. c. Consumers' use of mobile devices to access the Internet has been declining over the last few years. d. Technological innovations are created only by private companies. e. We can expect the pace of technological change to slow down as more technology-oriented startups choose to go public and become more conservative with their business strategies.

b. The negative effects of technology include concerns over privacy and intellectual property protection

Decreasing sales, increasing expenses, or decreasing profits a. are to be expected during the marketing research process. b. are examples of symptoms that point to larger problems. c. usually have no effect on the marketing research process. d. are important considerations in designing the research project. e. should be carefully considered before collecting data.

b. are examples of symptoms that point to larger problems

Long-term relationships with profitable customers is the key objective to a. personal selling b. customer relationship management c. product oriented firms d. e-marketing e. distribution channels

b. customer relationship management

Volkswagen is planning its promotional strategy for its Passat model. When compared to others in its class, the Passat has average gas mileage, better comfort ratings, more leg room, better interiors, average dependability, and is made in its plants in Tennessee. Which of the following attributes of a Volkswagen Passat would be most appropriate to emphasize in television commercials during an economic recession? a. Gas mileage b. Dependability c. Made in the U.S.A. d. Leg room e. Comfort

c. Made in the U.S.A

In marketing research, a sample is best described as a. a small group that is a part of a larger group. b. all the elements, units, or individuals of interest to researchers for a specific study. c. a limited number of units chosen to represent the characteristics of a total population. d. a group that shares a common attribute within a population. e. a small portion of a product offered to customers to try a new product.

c. a limited number of units chosen to represent the characteristics of a total population

When Disney World wants to have at least 90 percent of its customers indicating they had a memorable and satisfying experience at the park hotels, this is an example of a. implementing the marketing mix b. maintaining their corporate identity c. a marketing objective d. a strategic plan e. a mission statement

c. a marketing objective

The marketing plan is a. a plan of all aspects of an organization's business strategy. b. written differently for each SBU. c. a written document detailing activities to be performed to implement and control marketing actions. d. designed to specify not only marketing, but all other functional areas of business activities as well. e. updated only periodically.

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

Jason, a 17-year old high school student, wants to buy a pack of Marlboro Lights. He has the money to purchase them, but he is still not considered to be a market for the product due to his lack of ____ to buy. a. ability b. willingness c. authority d. need e. location

c. authority

A ____ is created when a company matches its core competency to opportunities it has discovered in the marketplace. a. market opportunity b. market requirement c. competitive advantage d. strategic window e. competitive opportunity

c. competitive advantage

The percentage of a market which actually buys a specific product from a specific company is referred to as that product's a. strategic segment b. target market c. market share d. market cut e. market position

c. market share

Marketing research is a process designed to gather information a. exclusively about a company's customers. b. from the company's database. c. not currently available to decision makers. d. about the needs and desires of employees. e. concerning the interpretation of the company's sales goals.

c. not currently available to decision makers

Textile companies historically face issues concerning the use of child labor in foreign countries and the various regulations created concerning this labor. The type of marketing environment forces executives for these companies are most likely to try to influence are ____ forces. a. economic b. competitive c. political d. environmental e. sociocultural

c. political

Although marketing theory supports the contrary, it is more probable that marketing budgets will be cut during periods of economic a. recovery. b. prosperity. c. recession. d. uncertainty. e. expansion.

c. recession

Saks Fifth Avenue wants to learn about its consumers' attitudes toward on-line purchases. There are numerous studies that are available about consumers and on-line buying, but Saks believes its customers might be different from the usual on-line consumer profile, so they decide to conduct their own study. If Saks were to use the available data about consumer attitudes, it would be using ___ data; however, if Saks does its own study it would collect ______ data. a. descriptive; primary b. experimental; descriptive c. secondary; primary d. primary; secondary e. secondary; descriptive

c. secondary; primary

Kashi Heart to Heart cereal is aimed at people concerned about their heart health. These people represent the Kashi a. marketing mix b. marketing strategy. c. target market. d. marketing tactic. e. consumer advocates.

c. target market

The marketing environment is best described as being a. composed of controllable variables. b. composed of variables independent of one another. c. an indirect influence on the performance of marketing activities. d. dynamic and changing. e. slow, with infrequent fluctuations.

d. Dynamic and changing

In its advertisements for Bud Light beer, Anheuser-Busch has decided to include a statement saying "Know when to say when." This is an example of which one of the following types of regulatory forces affecting marketing efforts? a. Federal regulation b. State regulation c. City regulation d. Self-regulation e. Social regulation

d. Self-regulation

Safeway Foods Corporation is involved in identifying and analyzing a target market. The firm then develops a marketing mix to satisfy individuals in that market to gain long-term competitive advantages. Based on this example, Safeway is creating a a. corporate strategy. b. target design. c. mix strategy. d. marketing strategy. e. marketing tactic.

d. marketing strategy

The four major competitive structures are a. monopolies, oligopolies, oligopolistic monopolies, and pure competition. b. pure competition, heavy competition, moderate competition, and light competition. c. brand, product, total budget, and generic. d. oligopolies, monopolies, monopolistic competition, and pure competition. e. monopolies, limited competition, oligopolistic competition, and pure competition.

d. oligopolies, monopolies, monopolistic competition, and pure competition

The element of the marketing mix used to increase awareness of a product or company is a. communication b. product c. price d. distribution e. promotion

e. Promotion

Amazon's pricing, service, and continuing investment in improving its website with additional product offerings give it a(n) ____ over many other retailers. a. organizational opportunity advantage b. strategic window c. market requirement d. market opportunity e. competitive advantage

e. competitive advantage

Discretionary income is associated with all of the following except a. automobiles. b. education. c. pets. d. furniture. e. food.

e. food

The main focus of a marketing information system is on a. the coordination of external information sources. b. classifying data into the proper information categories. c. data storage and retrieval. d. the accurate maintenance of inventory levels. e. gathering information on competitive activity.

e. gathering information on competitive activity

Compared to a mail survey, telephone surveys have a. lower response rates but higher validity b. a slower response time, but less cost c. faster response time, but less cost d. fewer expenses overall e. higher response rates, but higher costs

e. higher response rates, but higher costs

Organizations should define themselves not according to the products they produce but according to a. how profitable they are b. the price of their stock c. the abundance of their product selection d. how they treat their employees e. how they satisfy customers

e. how they satisfy customers

Starbucks provides training and support to its employees, including health care benefits. Through these ____ efforts Starbucks is better able to deliver quality products and service to its customers. a. internal management b. extended marketing c. intended marketing d. external marketing e. internal marketing

e. internal marketing

When a firm has many potential competitors and tries to develop a marketing strategy to differentiate its products from the competitors' products, a(n) ____ structure exists in the competitive environment. a. oligopoly b. monopoly c. pure competition d. oligopolistic competition e. monopolistic competition

e. monopolistic competition