MAR 3024 chapter 1 -9

Duke's is a surfer-themed restaurant chain in Hawaii. Most of its customers are tourists. In a SWOT analysis for Duke's, the possibility that the recession might cut back on tourism in Hawaii would be considered a weakness.

False

Isaac is looking for ways to offer new goods and services to his existing customers. He is pursuing a market development strategy.

False

What do the BRIC countries have in common?

They are experiencing significant levels of economic growth.

The results of the 2010 census suggest what about the 42 million African American U.S. households?

They are more affluent and suburban.

To determine the market potential for its particular product or service, a firm should use

as many metrics as it can obtain.

In 2006, Walmart announced that it would begin selling organic food products. In doing so, Walmart was most likely trying to

attract a different market segment.

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.

A roofing company agreed to complete a job in one week and collected a 50 percent deposit, but never showed up to do the job. The same roofing company then donated $6,000 to a local children's hospital. The roofing company could be considered socially responsible.

True

Coca-Cola spent $102 million through The Coca-Cola Campaign focusing on water stewardship, healthy and active lifestyles, community recycling, and education. This is an illustration of a CSR program.

True

Demographic profiles of customers provide an easily understood "snapshot" of the typical consumer in a specific target market.

True

For products like pencils and paper clips, marketers should probably use an undifferentiated targeting strategy.

True

Garage sales and online classified ads are examples of C2C marketing.

True

India, like some other countries, may require entering firms to create ________ when expanding into their markets, limiting outsiders' control of businesses.

joint ventures

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

lifetime profitability

Conscious marketing encompasses all of the following overriding principles except

recognition of the company's bottom line.

All of the following are primary needs that apps meet except the need to

share.

Trey sells consumer electronics. He knows his customers weigh the costs versus the benefits associated with the different options available. He decides which products to offer and what prices to charge based on the way his customers think. Trey operates as if he were in the ________ era.

value-based marketing

Chris laughed at some of the cultural mistakes companies made in advertising and promotion in international trade while he was in school. Now he was trying to determine what had gone wrong with the campaign he had planned in Latin America for his company's product, and it didn't seem quite as amusing. He narrowed the issues to sociocultural factors. He was looking at both ________ and ________.

visible artifacts; underlying values

The most common measure of market potential of an economy is a country's

GDP.

Christy, a marketing executive who was born in 1962, advocated that her company focus on a print campaign for its new line of lipsticks rather than spending money on online ads. This point of view may be attributed to the fact that she is a member of which generational cohort?

Baby Boomer

Many universities provide physical or electronic bulletin boards to facilitate ride-sharing and exchange of used books among students. These bulletin boards increase ________ marketing.

C2C

The Big Mac Index is a measure of economic health in a country.

False

The RFP process is used by buyers to allow customer input into value creation.

False

The consumer decision process begins with a comparison of available alternatives.

False

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

False

There is only one global product strategy: to sell a product or service similar to that sold in the home country, but include minor adaptations.

False

When designing a social media marketing campaign, the first step is to identify the target audience.

False

Which of the following social media tools is a type of all-in-one marketing software that can be used to educate customers?

HubSpot

________ 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.

Market positioning

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

Positioning

What technological advancement enables a firm to track an item from the moment it was manufactured, through the distribution system, to the retail store, and into the hands of the final consumer?

RFID tags

Margo likes her morning coffee, and she always stops at Starbucks because it is on her way to work. Margo is being influenced by the place element of the marketing mix.

True

One benefit of having satisfied customers is that they may spread positive word of mouth.

True

The connected effect of social media engagement is achieved when individuals post a picture to Instagram, upload a video to YouTube, or share a link to an article they have liked on Facebook.

True

The marketing firm must consider the entire business process, all from a consumer's point of view.

True

iTunes software is often credited with the success of the Apple iPod MP3 player, because it made the iPod easier to use than competing players, and was difficult for competitors to duplicate. This is an example of a sustainable competitive advantage.

True

________ are the three types of attribute sets.

Universal, retrieval, and evoked

A firm's organizational culture reflects

a set of values, traditions, and customs.

When shopping for a car you notice a significant price gap between domestic and imported cars, with the imported cars being much more expensive. This could be the result of

a tariff.

Markham Publishing is known for its consultative buying center culture. Recognizing this corporate culture, someone attempting to sell to Markham Publishing should

address the concerns of all members of the buying center with particular attention to the decision maker.

To avoid having ethical situations become problematic for a firm, the short-term goals of each employee must

be aligned with the long-term goals of the firm.

Which of the following descriptions embodies conscious marketing principles?

both ethically and socially responsible

After a firm has identified the various stakeholders and their issues and gathered available data related to an ethical decision-making situation, all parties relevant to the decision should

brainstorm for alternatives.

The three types of buying situations

call for different marketing and selling strategies.

Individuals achieve the ________ effect when they check in, post a picture to Instagram, upload a video to YouTube, or share a link to an article they have liked on Facebook.

connected

The local skydiving team is buying new parachutes. The team's coach has invited all team members to make recommendations, after which he will select the successful vendor. The skydiving team's buying center has a(n) ________ organizational culture.

consultative

When integrating conscious marketing into a marketing strategy, a key task is to ensure that all managers are evaluated on their actions from a conscious marketing perspective. This action would take place during which stage of the strategic marketing planning process?

control phase

Astute marketers recognize that the increasing disparity of income between upper- and lower-income groups

creates opportunities to provide value to each group.

To attract and maintain habitual purchasers, marketers spend considerable effort

creating strong brands and store loyalty.

Anita has gone to the same hair salon for the past ten years. She believes that her stylist, the salon owner, does a better job of cutting and styling her hair than anyone else could. Other salons have opened closer to Anita's home, some offering more plush facilities or lower prices, but she isn't tempted to switch. Anita's attitude toward the salon is an example of

customer loyalty.

A local art gallery keeps information on its customers regarding their preferences for certain artists as well as the style of art that interests them. The gallery uses this information to inform the customers when new products arrive from their favorite artists and targets them with special promotions. In this way, the gallery is using ________ to build loyalty among its customers.

customer relationship management

Sales of electric components manufactured by Rick's company depend on sales of new cars. Rick's company faces ________ demand.

derived

Andrea and Karl got married a year ago and are ready to move out of their apartment and into a new home. After looking at several houses, they have developed a list of features that are important to them and that are different among the homes they have visited. The features on their list are called

determinant attributes.

Celia's firm has developed a breakfast cereal and rather than compete in the U.S. market, she has decided instead to introduce the product in Europe, where she feels it will be innovative. Her advertising agency urged caution because

differences in language, customs, and culture complicate marketers' ability to communicate with customers in various countries.

To maximize efficiency, farmers send their eggs to a ________ who handles sales and shipments to supermarkets.

distributor

Lionel is asked to conduct an STP analysis for his firm. The first step he should perform in this analysis is to

divide the marketplace into subgroups.

After assessing the market growth potential and market competitiveness in Mexico for his company's baby products, Harmon wanted to evaluate market access. To do this, Harmon would consider

ease of accessing or developing distribution channels and brand familiarity.

As it pertains to the marketing plan, understanding the causes of performance, regardless of whether that performance exceeded, met, or fell below the firm's goals

enables firms to make appropriate adjustments.

For marketers, media-sharing sites such as YouTube or Flickr are social media tools best used to

encourage customers to engage with the firm and experience its products.

The first step in the STP process is to

establish the overall strategy or objectives.

Alicia has been asked to approve a marketing campaign that, although it is not illegal, promotes food products to children. She is concerned that the food products are not particularly nutritious, although they are not as bad for children as some others sold by competitors. By using the ethical decision-making metric, Alicia will

evaluate the alternative using a series of questions.

When Maya decided to buy a new computer, she thought about all the brands she could recall seeing advertised, but she would consider only those brands she could buy at her local Best Buy electronics store. This represents Maya's ________ set.

evoked

Learning refers to a change in a person's thought process or behavior that arises from

experience.

A key to successful marketing is determining how to meet the correct balance of ________ needs that best appeals to the firm's target markets.

functional and psychological

Every time Katie wants to eat salad for lunch, she and her friends go to Sweet Tomatoes, but if she's craving dessert, she heads straight to The Cheesecake Factory. In making these choices, she relies on a(n)

functional and psychological

Retail store chains often use ________ data to tailor each store's assortment to the preferences of the local community.

geodemographic

One measure of traffic from visitors on sites, the total requests for a page, is measured in units called

hits.

Carlos has identified four potential market segments for his Rent-A-Nurse service. He will now compare the segments to see if they are distinct from each other. Carlos is evaluating whether or not each segment is

identifiable.

Garrett has just purchased a beer distributorship. He wants to increase the visibility of his firm in local markets, but he knows there are a number of regulations and socially accepted practices associated with promoting alcoholic beverages. The first thing Garrett should do is to

identify issues that need to be addressed.

Hisaoki picks up the local newspaper and reads a stinging letter to the editor criticizing his beverage company for supporting a sporting event for children with disabilities. The letter writer is critical of a banner displayed at the event with the logos of alcoholic beverages and Hisaoki's company name. Hisaoki never considered that this problem might arise. Hisaoki's company failed to

identify issues.

Yolanda is the new restaurant manager in a major hotel. When considering changes in the restaurant that will increase value to customers, Yolanda will likely attempt to either provide the same quality at a lower cost or

improve products and services at the same cost.

According to the text, 14 cable companies agreed to provide low-cost Internet access to impoverished families for all of the following reasons except

increased income from a larger number of subscribers.

An example of the ________ effect is when BMW gained in-depth information about visitors to a popular Chinese social media site, and used that information to determine which visitors were likely to be luxury car buyers and targeted advertising toward them.

information

Brian is struggling with the choice of publishing his new book, How to Cook Polish Barbeque, as an e-book or a paperback. Brian is addressing which core marketing aspect?

making product decisions

The marketing goal of getting the "right quantities to the right locations, at the right time" relates to

managing the supply chain.

Abercrombie & Fitch, a clothing retailer, includes a "SHARE" link on the product pages of its website. This link encourages an Abercrombie customer to post a link (perhaps showing a new style of jeans) on Facebook or Twitter. Abercrombie & Fitch hopes that the customer's friends (who are probably very much like current customers) will click the link, visit the page, and make purchases. This is an example of a ________ growth strategy.

market penetration

The process of dividing the market into groups of customers with different needs, wants, or characteristics is called

market segmentation.

What is the disadvantage for companies in using a "daily budget" such as that offered by Facebook to its advertisers?

may limit exposure if ad is very successful

Lauren decides to use Twitter to market her hand-painted scarves to other women on her campus. She sets up a Twitter account with the name @uniquedesignsbylauren and posts this on her Facebook page, making sure to tweet every few days. Soon Lauren is selling a lot of scarves. Lauren's Twitter account is an example of

microblogging.

When making decisions, managers often have to decide between doing what is beneficial for them (and possibly the firm) in the short run, and doing what is right and beneficial for the firm and for society in the long run. To address this conflict, a firm

must align the short-term goals of each employee with the long-term, overriding goals of the firm.

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.

Marketers rely on social media to achieve three objectives: members promoting themselves to gain more friends, sites promoting to get more members, and

outside companies promoting their products and services to appeal to potential customers.

Value-oriented marketers constantly measure

perceived customer benefits against the costs of their offerings.

In the ________ stage, a firm will decide what level of commitment to its ethical policies and standards it is willing to declare publicly and how the firm plans to balance the needs of its various stakeholders.

planning

The government has enacted laws that promote both fair trade and competition by prohibiting the formation of monopolies or alliances that would damage a competitive marketplace, fostering fair pricing practices for all suppliers and consumers. These actions are part of the ________ environment of business.

political/regulatory

Laura has an almost-new economy car, but she wants a Ford Mustang because she thinks it would be exciting to own one. If she decides to purchase a sports car such as the Mustang, she will be primarily fulfilling a ________ need.

psychological

Gloria is opening an upscale women's clothing store in a growing suburban residential area. Gloria knows her target market is upper-income women living within 20 miles of her store. She can't afford to purchase Tapestry analysis, so she will most likely use ________ as a basis for targeting her market.

real estate values by subdivision

As purchasing manager for Avalon Electronics, Carrie is required to submit a vendor performance analysis every three months. To meet this requirement, Carrie will most likely

specify and weight performance factors and score the vendors.

Marketing enriches society by

sponsoring charitable events

Phil put down the phone and told Alice, "I just love that customer. I got another big order, and they just keep on coming." Phil is most likely selling to a firm in what kind of buying situation?

straight rebuy

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

strengths and weaknesses.

Greta is concerned that one of the potential market segments she has identified for her dog grooming service is too small and has too little income to have sufficient buying power. Greta is concerned with whether the segment is

substantial.

Even when large discount retailers enter a market, a few small, local retailers survive and prosper. These small retailers have probably developed a(n) ________ that allows them to survive.

sustainable competitive advantage

Almost all U.S. political candidates use some combination of red, white, and blue in their campaign posters. They are trying to position themselves in voters' minds using

symbols.

Paula is trying to determine whether the segments she is considering for her day care center will be profitable. Which of the following will not specifically help her in this analysis?

the average number of school-age children in families sending a child to the day care center

The center of all marketing efforts is

the consumer.

When a company that uses social media runs a contest online, it will measure its effectiveness in a variety of ways. One such measure is the conversion rate. The conversion rate for the contest promotion would be

the percentage of visitors to the page describing the contest who entered the contest.

Global marketers typically find distribution in developing countries is more complex because

they must go through many different types of distribution channels.