Exam #1 Study Set

What is most likely to happen when inflation increases?

Consumers buy lower-priced foods

Which of the following is likely to provide a sustainable competitive advantage?

Creating an efficient supply chain that lowers your costs

When studying culture, the challenge for marketers is to determine whether culture

can help identify a particular group that might be interested in the marketer's products

Price

captures value

Promotion

communicates value

Product

creates value

The shared meanings, beliefs, morals, values, and customs of a group of people constitute their

culture

Town Bank prides itself on offering better service than any of its competitors. If this is accurate, and if customers recognize and value Town Bank's superior service, the bank creates and delivers value through

customer excellence

Many catalog companies create special-run issues based on what customers have purchased in the past. For example, customers who frequently order bedding items like sheets and pillows receive a catalog with a larger section of bedding items than do customers who mostly order kitchen tools. These special issues are an example of

customer relationship management (CRM)

Hunter Corporation's mission statement

is a broad description of a firm's objectives and the scope of activities it plans to undertake

Marketers must determine the price of a product carefully, based on potential buyers' beliefs about

its value

As part of her company's SWOT analysis, Selima is assessing the company's internal environment, including

strengths and weaknesses

Select the statement that best describes the key traits of Generation Y.

This generation varies the most in age, ranging from teenagers to adults who have their own families

Introducing newly developed products or services to a market segment the company is not currently serving is called

diversification

The poorest 25 percent of the U.S. population earned ________ or less per year in 2016.

$24,002

Which of the following actions would be the most likely to support and enhance an operational excellence macro strategy?

3M Corporation implementing new software to improve communication with its suppliers

According to your text, the wealthiest 10 percent of the population control approximately what percentage of Americans' total net worth?

76%

Marketers wanting to use social media to reach consumers should understand that people in the ________ group were born into a world that was already full of electronic gadgets and digital technologies such as the Internet and social networks.

Generation Z

Data about how, when, why, where, and what people buy refers to

Marketing Analytics

________ involves the process of defining the marketing mix variables so that target customers have a clear, distinctive, desirable understanding of what the product does or represents in comparison with competing products.

Marketing positioning

The power adapters Apple sells with its computers are built by small companies that specialize in power-related accessories. When Apple purchases its power adapters from these small companies, it is engaged in B2B marketing.

TRUE

To build relationships, firms focus on the lifetime profitability of the relationship, not how much money is made during each transaction.

TRUE

Walter likes his morning coffee, and sausage biscuit, and he always stops at Dunkin Donuts because it is on his way to work. Walter is being influenced by the place element of the marketing mix.

TRUE

After purchasing expensive golf clubs, you may question whether or not these clubs are really any better than the less expensive clubs you could have purchased instead. This is an example of post-purchase cognitive dissonance.

TRUE (Post-purchase cognitive dissonance is an internal conflict that arises from an inconsistency between two beliefs, or between beliefs and behavior)

Which of the following statements reflects the philosophy of the market-oriented era?

The customer is king (The market-oriented era was when most companies first started thinking in terms of meeting customer needs. It was a buyer's market and the customer was king)

By promoting jeans based on youth, style, and quality, Levi's is attempting to

increase the perceived value of its products

Most banks implement customer retention programs aimed at their best customers. They do this because they know that retaining customers usually results in

increased long-term profits

The "Milk Life" advertising campaign, designed to increase awareness of the health benefits of milk, was intended to help market a(n)

industry

When Darnell went to college, tuition was $650 per semester. Now that same college charges $6,500 per semester. This number reflects a persistent increase in price known as

inflation

Most banks now have customer relationship software that, when a customer contacts the bank, tells the service representative what types of accounts, loans, and credit cards the customer currently has. Service representatives use this information to sell some of the other services the bank currently offers to these customers. This is a ________ growth strategy.

market penetration (Such a growth strategy might be achieved by attracting new consumers to the firm's current target market or encouraging current customers to patronize the firm more often or buy more merchandise on each visit)

Political candidates are notorious for appealing to the different beliefs and values of groups of potential voters in different areas of the country. These politicians are appealing to differences in

regional culture

After conducting STP analysis for her health food store and developing strategies for each of the four Ps, Nicki now has to make _____________ decisions.

resource allocation (She now has to consider available resources and determine how they will be allocated across the different options available for implementation)

When positioning products relative to competitors' offerings, firms typically are most successful when they focus on opportunities

that build on their strengths relative to those of their competition

Even though they operate on a limited schedule and offer few extra services, discount, no-frill airlines like Allegiant have been successful. Consumers obviously consider

the benefit of lower prices to be greater than the cost of reduced services and less convenience

Some discount stores put products in large bins and let consumers hunt and find bargains. The price these consumers pay includes

the value of their time and energy

Which of the following is an example of greenwashing?

A company donates money to a school reading project so it can advertise itself as environmentally friendly

When Starbucks sells its coffee and mugs to the public on its website, it is a ________ sale.

B2C (Business to Customer)

It was during the market-oriented era that firms first discovered "marketing." In what timeframe did this occur?

Just after World War II

In 2016, in response to the threats of climate change, the United Nations rectified the

Paris Accord

After defining the business mission, what should a firm do next to develop a marketing plan?

Perform a situation analysis

Jeffrey is going to sell sporting apparel, which he has already purchased from manufacturers, and has signed a deal agreeing to the volume he will sell monthly. He has researched his competition, talked to some customers, and decided on prices he will charge. Jeffrey has also developed a plan for promoting his business. Based on this description, which element of the marketing mix does Jeffrey still need to work on?

Place

Which element of the marketing mix is most relevant to the activity "creating value"?

Product

Zara is a women's clothing retailer headquartered in Spain, with stores located in many countries. Zara has developed a "quick response" system that allows store merchandise to be adjusted rapidly to fit changing customer preferences. Every aspect of Zara's operation is optimized for this system, making it difficult for competitors like The Gap to duplicate. Zara has established

a sustainable competitive advantage

Place

delivers value

Golden Gate Hair Company keeps track of the gender and age of its customers so it can target emails to them and be sure to have the right hair products in stock when they visit. This is an example of the use of ________ in marketing.

demographics

If a radio station holds an online contest in which you must log in to its website and submit personal details such as name, phone number, and e-mail in order to participate, the radio station is

offering an exchange

Customers around the world know Pepsi and consider it a primary "go-to" brand if they want a refreshing drink. This positioning reflects Pepsi's

product excellence

Mario works for a small computer software company. His boss is constantly improving the company's products but neglects customers, billing, and promoting the company. Mario's boss is probably stuck in the ________ era of marketing.

production-oriented

The Child Protection Act

prohibits the sale of harmful toys and components to children

Generational cohorts are groups of people of the same generation who have similar ________ because they have shared experiences and are in the same stage of life.

purchase behaviors

Which ethnic group tends to be not only more affluent and suburban than previously thought, but also younger, with 57 percent between the ages of 15 and 49 years?

African American

As the euro becomes more expensive relative to the dollar, Americans are likely to purchase more European wines.

FALSE

Sustainability, health and wellness, and how to more efficiently utilize and distribute food are all considered political trends.

FALSE

The strategic planning process always proceeds sequentially through the five steps.

FALSE

Vivian didn't go see the movie Gravity because her friends all said she wouldn't be able to handle it. When she found out how good it was, she blamed her friends. Vivian is demonstrating an internal locus of control.

FALSE (By letting her friends' opinions control her actions, and then blaming them for her decision, she is demonstrating an external locus of control. With an external locus of control, consumers believe that fate or other external factors control all outcomes)

Socially responsible marketing involves a strategic effort by firms to supply customers with environmentally friendly sustainable merchandise and services.

FALSE (Green marketing involves a strategic effort by firms to supply customers with environmentally friendly sustainable merchandise and services)

Esau wants to offer his existing design customers new goods and services. He is pursuing a market development strategy.

FALSE (This is a product development strategy. A market development strategy offers existing products and services to new customers)

Lamar usually buys Adidas shoes, so when his friend asked him what shoes he should buy, Lamar naturally said Adidas because it was the first brand he thought of. Lamar's response was an evoked set.

FALSE (This is a retrieval set because it is the brand that was readily brought forth from memory without considering other brands)

The four Ps of the marketing mix include product, promotion, planning, and place.

FALSE (the four Ps of the marketing mix are product, price, place, and promotion)

By paying close attention to customer needs and continuously monitoring the business environment in which it operates, a good marketer can identify potential opportunities.

TRUE

Culture can broadly be defined as the shared meanings, beliefs, morals, values, and customs of a group of people.

TRUE

During the market-oriented era, manufacturers began to focus on customers' needs before they designed or sold their products.

TRUE

Firms are typically more successful when they focus on opportunities that build on their strengths relative to those of their competition.

TRUE

It is not always necessary to go through all the steps in the marketing planning process.

TRUE

Strong supplier relations and efficient supply chains help firms such as Walmart achieve operational excellence.

TRUE

If a firm wants to develop a sustainable competitive advantage, it should

examine its operations and customer relations to identify significant things competitors cannot easily copy

Mattie is the marketing manager for a spice company. While on vacation in Brazil, she visited food stores in Rio de Janeiro. Most of her company's products were available, except for baking spices, like vanilla. When she returned to work, she mentioned this observation to her international sales manager. Mattie was providing the important marketing function of

identifying opportunities to expand