marketing ch 1-4 test

Describe the four components of the marketing mix.

1. Product decisions involve determining what goods, services, organizations, people, places, and/or ideas to market; the number of items to sell and their quality; the innovativeness pursued; packaging; product features; warranties; when to drop existing products; and more. 2. Distribution decisions include choosing whether to sell via intermediaries or directly to consumers, how many outlets to sell through, how to interact with channel members, the terms to negotiate, the tasks assigned to others, supplier choice, and more. 3. Promotion decisions include selecting a combination of tools (ads, public relations, personal selling, and sales promotion), whether to share promotions with others, the image sought, the level of personal service, media choice, message content, promotion timing, and more. 4. Price decisions include choosing overall price levels, the price emphasis, the relation between price and quality, the emphasis to place on price, how to react to competitors, when to offer discounts, how prices are computed, what billing terms to use, and more.

Describe the five eras of marketing

1. barter era: people trade one resource for another—like food for animal pelts. 2. production era: output increases to meet demand. In the initial stages of industrialization, output is limited and marketing is devoted to physical distribution. Because demand is high and competition is low, firms typically do not have to conduct consumer research, modify products, or otherwise adapt to consumer needs. The goal is to lift production to meet demand. 3. sales era: firms sell products without first determining consumer desires. Many firms hire a sales force and some use advertising to sell their inventory. Yet, because competition is still rather low, when firms develop new products, consumer tastes or needs receive little consideration. The role of the sales force and advertising is to make consumer desires fit the features of the products offered. 4.marketing department era: occurs when research is used to determine consumer needs. They create marketing departments to conduct consumer research and advise management on how to better design, distribute, promote, and price products. Unless firms react to consumer needs, competitors might better satisfy demand and leave the firms with surplus inventory and falling sales 5. marketing company era: integrates consumer research and analysis into all efforts.The firms make virtually all key decisions after thorough consumer analysis: Because competition is intense and sophisticated, consumers must be aggressively drawn and kept loyal to a firm's brands. https://www.textbookmedia.com/Reader/Read/File/Mktg21stCentury_12/OEBPS/Images/fig1_4.jpg

What are the five components of the marketing concept? Give an example of each component.

1. consumer-oriented: means examining consumer needs, not production capability, and devising a plan to satisfy them 2. market-driven: means being aware of the structure of the marketplace, especially the attributes and strategies of competing firms 3. value-driven: means offering goods and services that consumers perceive to have superior value relative to their costs and the offerings of competitors. 4. integrated: all the activities relating to goods and services are coordinated, including finance, production, engineering, inventory control, research and development, and marketing 5. goal-oriented: employs marketing to achieve both short-and long-term goals—which may be profit, funding to find a cure for a disease, increased tourism, election of a political candidate, a better company image, and so on.

Explain the five elements of the environment within which marketing operates.

1. controllable factors: those directed by an organization and its marketers. First, top management makes several broad decisions. Then, marketing managers make specific decisions based on those guidelines. 2. uncontrollable factors: are beyond an organization's control, but they affect how well it does 3. organizational performance: An organization's level of success or failure in reaching its goals is determined by the interaction of controllable factors and uncontrollable factors. 4. feedback: occurs when a firm makes an effort to monitor uncontrollable factors and assess its strengths and weaknesses. 5. adaptation: refers to the changes in a marketing plan that an organization makes to comply with the uncontrollable environment.

A major weakness of the strategic planning approaches discussed in this chapter is that they a. are sometimes difficult to implement. b. do not allow a firm to follow competitors' actions. c. prevent a firm from analyzing all its business units and products. d. do not focus on creating and keeping key differential advantages.

A

Among the advantages of conducting a mail survey is the a. ability to complete the survey at a convenient time. b. speed with which surveys are returned by respondents. c. ability to avoid participation by incorrect respondents. d. ability to avoid non-response problems.

A

An organization's direction within its chosen environment and its allocation of resources is usually determined by a. strategic planning. b. strategic business units. c. marketing tactics. d. marketing myopia.

A

In selecting a target market, marketers usually a. engage in market segmentation. b. ignore competitors. c. control the marketing plan. d. determine the marketing mix.

A

Strategic business units shown in the selectivity/earnings areas of the General Electric business screen are a. performing poorly in unattractive industries. b. performing poorly in highly competitive industries. c. performing well in unattractive industries. d. performing well in strong industries.

A

The first step in the marketing research process involves a. establishing the issue to be studied. b. surveying consumers. c. studying competitors. d. implementing findings.

A

The last step for a firm that practices a marketing philosophy is a. feedback. b. consumption. c. consumer satisfaction. d. relationship marketing.

A

The level of investment in specific marketing activities and the timing of marketing actions are decisions relating to a. implementing tactics. b. establishing SBUs. c. developing marketing strategy. d. monitoring results.

A

To attain its objectives, a firm is well advised to a. acquire feedback from the environment. b. maintain its existing strategies at all costs. c. ignore uncontrollable factors. d. bypass the independent media entirely.

A

Which of the following is a component of a marketing intelligence network? a. Data warehousing b. Product design c. Marketing entropy d. Simulation

A

Which of the following is not a factor primarily controlled by top management? a. Advertising strategy b. Line of business c. Role of marketing d. Overall objectives

A

Which of the following is not a form of marketing organization? a. Coordinated b. Functional c. Product-oriented d. Market-oriented

A

Which of the following questions does situation analysis seek to answer? a. In what direction is a firm headed? b. How will resources be allocated? c. Who is responsible for carrying out marketing actions? d. What sales personnel should be hired?

A

Which statement about relationship marketing is correct? a. It places an emphasis on customer loyalty. b. It is short-run oriented. c. It cannot be conducted with final consumers. d. It is not a good policy for nonprofit organizations.

A

Why should a firm select a target market before developing a specific marketing mix?

A company can choose a large target market or concentrate on a small one, or try to appeal to both with separate marketing programs for each. As a rule, these questions must be addressed before devising a target market approach: Who are our customers? What kinds of goods and services do they want? How can we attract them to our company?

Distinguish between the terms "strategic business plan" and "strategic marketing plan."

A strategic business plan provides "the overall direction an organization will pursue within its chosen environment and guides the allocation of resources and effort. It also provides the logic that integrates the perspectives of functional departments and operating units, and points them all in the same direction." It has (1) an external orientation, (2) a process for formulating strategies, (3) methods for analyzing strategic situations and alternatives, and (4) a commitment to action.1 A strategic marketing plan outlines the marketing actions to undertake, why they are needed, who is responsible for carrying them out, when and where they will be completed, and how they will be coordinated. A marketing plan is carried out within the context of a firm's broader strategic plan.

Under what circumstances should a firm use an experiment to collect data? Simulation? Explain your answers.

An experiment is a type of research in which one or more factors are manipulated under controlled conditions. A factor may be any element of marketing from package design to advertising media. In an experiment, just the factor under study is varied; all other factors remain constant. Simulation is a computer-based method to test the potential effects of various marketing factors via a software program rather than real-world applications.

A consumer orientation does not usually focus on a. market needs. b. production capability. c. planning. d. goals.

B

A firm has the least control over its pricing strategy in a. monopolistic competition. b. pure competition. c. oligopoly. d. monopoly.

B

A strategic business unit with a high market share in a mature industry is a a. question mark. b. cash cow. c. star. d. dog.

B

Basic marketing functions a. can be eliminated in most situations. b. are usually performed by one party. c. can be organized with only direct marketing. d. can be shifted and shared.

B

In the strategic planning process, the next step after a firm defines its organizational mission is to a. outline a budget. b. establish strategic business units. c. set marketing objectives. d. perform situation analysis

B

Marketing directly to customers would often require a company to a. seek a marketing specialist. b. make or sell complementary products. c. eliminate many marketing functions. d. share distribution of high-volume sales items.

B

Organizational mission refers to a. a philosophy by which an organization individually assesses and positions every SBU. b. a long-term commitment to a type of business and a place in the market. c. specific actions undertaken to implement a given marketing strategy. d. an approach in which a firm seeks greater sales of present products or new product uses.

B

Separate marketing plans for each product line are most often used by a. local governments. b. consumer-goods manufacturers. c. service firms. d. industrial-goods manufacturers

B

The current era is known as the a. Internet era. b. marketing company era. c. post-industrial era. d. sales era.

B

The process by which each completed data form is numbered and response categories are labeled is called a. survey design. b. coding. c. tabulation. d. analysis.

B

Which of the following is an advantage of primary data? a. Data collection is typically fast. b. Information is current. c. Primary data are usually less expensive to collect than secondary data. d. Most firms are skilled in primary data collection.

B

Which of these is never a type of commercial database? a. infoUSA CDs b. Census data c. Internal secondary data d. Primary data

B

Workers can "break the rules" to honor customer requests with a. motivated marketing. b. employee empowerment. c. a selling philosophy. d. power selling.

B

Distinguish between the Boston Consulting Group matrix and the Porter generic strategy model.

Boston Consulting Group: A firm can see which SBUs are dominant compared to competitors and whether the industries in which it operates are growing, stable, or declining. The matrix comprises stars, cash cows, question marks, and dogs, as well as the strategies for them. Porter model: Porter generic strategy model identifies two key marketing planning concepts and the options available for each: competitive scope (broad or narrow target) and competitive advantage (lower cost or differentiation). The model pinpoints these basic strategies: cost leadership, differentiation, and focus.

A major advantage of an experiment is its a. infrequent use of contrived settings. b. relatively low costs. c. ability to show cause and effect. d. ability to control all factors in or affecting a marketing plan.

C

According to the Porter generic strategy model, with a differentiation focus strategy, a strategic business unit a. aims at a narrow target segment through low prices or a unique offering. b. aims at a broad market and offers products at low prices and in large quantities. c. aims at a narrow market by offering goods or services viewed as distinctive. d. aims a new product at a new market.

C

Although the marketing concept enables an organization to analyze, maximize, and satisfy consumer demand, it should be realized that the concept a. is only a theory. b. does not apply to nonprofit organizations. c. is only a guide to planning. d. is unnecessary in a competitive marketplace.

C

Choosing 125 females ages 18-29 and 125 females ages 30 and older to participate in a research study is an example of a(n) a. exploratory research study. b. non-probability sample. c. probability sample. d. external secondary data search.

C

Customer service activities are a. unidentifiable, but relatively tangible. b. unimportant to consumers. c. identifiable, but relatively intangible. d. unrelated to the success of goods and services.

C

If a firm wants to study consumer attitudes through the use of bipolar adjectives, it will most likely use a. observation. b. simulation. c. a semantic differential. d. experiment.

C

In a monopoly, one firm a. finds that consumer demand is quite elastic. b. seeks to engage in price wars. c. has no control over price because merchandise is standardized. d. has a lot of control over the marketing plan.

C

Marketing research a. can be applied to only certain aspects of marketing. b. should be crisis-oriented. c. must be conducted in a systematic manner to be effective. d. includes only data collected from sources outside the firm.

C

Monitoring results involves a. setting corporate and marketing objectives. b. creating new strategic business units. c. comparing actual performance to planned performance for a specified time period. d. identifying internal strengths and weaknesses, as well as external opportunities and threats.

C

Product, price, promotion, and distribution decisions are components of the a. marketing philosophy. b. marketing protocol. c. marketing mix. d. marketing organization.

C

Secondary data should be collected before primary data because a. secondary data will have guaranteed suitability to the current research study, whereas primary data will not. b. secondary data will always be current, whereas primary data may be dated or obsolete. c. secondary data are generally more easily and inexpensively obtained than primary data. d. secondary data will not yield conflicting information from different sources, whereas primary data may.

C

The General Electric business screen looks at two major dimensions: company business strengths and a. market share. b. profitability. c. industry attractiveness. d. target market features.

C

When a firm defines its competition in generic terms, it a. focuses on patent expiration dates. b. analyzes the competitive structure within a specific industry. c. looks at competition as broadly as possible. d. examines its existing channel partners.

C

When it is considered important by a firm, marketing is a. equated with sales. b. given staff status. c. heavily involved in consumer research. d. controlled by a production vice-president.

C

Where a few large firms comprise most of an industry's sales, the competitive structure is best described as a. monopolistic competition. b. monopoly. c. oligopoly. d. competitive monopoly.

C

Whether to sell via intermediaries or directly to consumers, how many outlets to sell through, and whether to control or cooperate with other channel members are examples of decisions marketers must make about a. selling. b. production. c. distribution. d. price.

C

Which activity is a central aspect of the definition of marketing? a. Manufacturing b. Outsourcing c. The exchange process d. Selling

C

Which of the following is not an example of internal secondary data? a. Customer billings b. Inventory records c. Attending trade shows d. Sales figures

C

Which statement is incorrect? a. Customer service has a large effect on customer satisfaction. b. Consumers today have many mechanisms by which to complain. c. Consumers today are more satisfied with customer service than ever before. d. Employee empowerment often leads to greater customer satisfaction.

C

Distinguish between commercial databases and database marketing.

Commercial database: Because client companies need current, comprehensive, and relatively inexpensive information about the environment in which they operate, many specialized research firms offer ongoing commercial databases with information on population traits, the business environment, economic forecasts, industry and individual companies' performance, and so forth. Such databases may include newspaper and magazine articles, business and household addresses culled from telephone directories and other sources, industry and company news releases, government reports, conference proceedings, indexes, patent records, and so on. Research firms sell access to their databases to clients, usually for a rather low fee. Database marketing: is a computerized technique that compiles, sorts, and stores relevant information about customers and potential customers; uses that information to highlight opportunities and prioritize market segments; and enables the firm to profitably tailor marketing efforts for specific customers or customer groups.

A value-based philosophy is a key component of a. barter. b. a selling philosophy. c. mass marketing. d. the marketing concept.

D

According to some estimates, marketing costs can be as high as what percentage of a firm's sales? a. 10 percent b. 20 percent c. 40 percent d. 50 percent

D

An example of a qualitative term that can be used to describe objectives is a. market share in the industry. b. profit as a percentage of sales. c. sales growth. d. level of innovativeness.

D

As part of a market development strategy, a firm could a. develop new models of existing products to appeal to present markets. b. reposition existing products. c. become involved with new products aimed at new markets. d. seek to attract non-users of its existing products.

D

During the production era of marketing, a. businesses increase supply to keep up with demand. b. research becomes necessary to determine consumer desires and needs. c. consumer research and analysis are integrated into all efforts. d. business manufactures and sells products without first determining consumer desires.

D

The degree to which there is a match between customer expectations and the actual performance of a good or service is known as a. customer service. b. consumer marketing. c. marketing functionality. d. customer satisfaction.

D

The most effective approach to the uncontrollable factors in the marketing environment is a. constantly reorganizing the marketing organization. b. product innovation. c. insulating the marketing plan from them. d. continuous monitoring of their effects.

D

Which of the following is a reason why a firm should continuously collect and analyze information regarding its marketing plan? a. To rely more heavily on executive judgment b. To maintain secrecy about its operations. c. To guarantee success d. To monitor the environment

D

Which of the following is not one of the four basic methods of primary data collection? a. Experiment b. Observation c. Simulation d. Distribution

D

Which of the following research methods has the least interviewer bias? a. Observation b. Personal surveys c. Telephone surveys d. Internet surveys

D

Which of these is a way to drop tension among functional departments? a. Minimizing interfunctional contact b. Seeking employees who do not blend technical and marketing expertise c. Establishing independent task forces and committees d. Setting objectives for each department interdependent with other departments' goals

D

Which of these statements is not correct? a. It is necessary to study the competitive strategies of other firms. b. There is now a trend toward larger firms. c. Pure competition occurs much less often than does monopolistic competition. d. Foreign competitors now play a declining role in many industries.

D

Which statement about technology is true? a. Small firms can control the technological advances that affect them. b. Technology cannot reduce the impact of resource shortages. c. Loss of patent protection decreases competition. d. Patents provide exclusive rights to sell new products for virtually limited time periods.

D

Which type of competition most closely resembles generic competition? a. Intermodal competition b. Bimodal competition c. Direct competition d. Indirect competition

D

Differentiate between conclusive and exploratory research. Give an example of each.

Exploratory research is to gain ideas and insights, and to break broad, vague problem statements into smaller, more precise statements. Exploratory research, also called "qualitative research," may involve in-depth probing, small-group discussions, and understanding underlying trends. is the structured collection and analysis of data pertaining to a specific issue or problem. It is more focused than exploratory research and requires larger samples and more limited questions to provide quantitative data to make decisions.

What is relationship marketing? Why is it so important to any firm?

From a consumer-oriented perspective, when marketing activities are performed with the conscious intention of developing and managing long-term, trusting customer relations. This "helps to increase customer loyalty, reducing the need to allocate marketing budget to acquire new customers. Satisfied customers may also recommend your goods or services to other potential customers, increasing the potential for additional revenue and profit."

What is customer satisfaction? Why is it so important to any firm?

It is the degree to which there is a match between a customer's expectations of a good or service and the actual performance of that good or service, including customer service. "Customer satisfaction is one of the most essential elements of customer retention, customer loyalty, and product repurchase.

What are the basic functions performed by marketing?

Marketing stimulates consumers, constitutes a large part of selling costs, employs many people, supports industries, affects all consumers, and plays a major role in our lives.

Why is it important to monitor the results of a marketing plan?

Monitoring results involves comparing the actual performance of a firm, business unit, or product against planned performance for a specified period. Actual performance data are then fed back into the strategic planning process. Budgets, timetables, sales and profit statistics, cost analyses, and image studies are just some measures that can be used to assess results.

What is the most important marketing objective for an organization? Why?

Most important, marketers seek to create differential advantages, the unique features in a firm's marketing program that cause consumers to patronize that firm and not its competitors. Without differential advantages, a firm would have a "me-too" philosophy and offer the consumer no reasons to select its offerings over competitors' products.

Under what circumstances should a company consider reappraising its organizational mission?

Organizational mission refers to a long-term commitment to a type of business and a place in the market. It "describes the scope of the firm and its dominant emphasis and values," based on that firm's history, current management preferences, resources, and distinctive competences, and on environmental factors.- if the mission is not fully fulfilled

Why should a secondary data search always precede primary data collection?

Secondary data consist of information not collected for the issue or problem at hand but for some other purpose; this information is available within a firm or externally. Whether secondary data fully resolve an issue or problem or not, their low cost and rather fast accessibility mean that primary data should not be collected until a thorough secondary data search is done. Primary data consist of information gathered to address a specific issue or problem at hand. Such data are needed if secondary data are insufficient for a proper marketing decision to be made.

In the environment of marketing, what are the two major types of controllable factors for a company? How do they differ?

Some of these factors are directed by top management; these are not controllable by marketers, who must develop plans to satisfy overall organizational (top management) goals. In situations involving small or medium-sized institutions, both broad policy and marketing decisions may be made by one person, usually the owner. Even then, broad policies are often set first, and marketing plans adjust to them. A person could decide to open an office-supply store selling products to small businesses (broad policy) and stress convenient hours, a good selection of items, quantity discounts, and superior customer service (marketing plan).

In situation analysis, what is the distinction between strengths and opportunities and between weaknesses and threats? How should a firm react to each of these factors?

Strengths—Leading market position via a strong brand portfolio, significant R&D and marketing investments, strategic acquisitions that expanded P&G's product portfolio, increasing presence in developing markets, robust cash productivity. Weaknesses—Increasing instances of product recalls. Opportunities—Growing men's grooming industry, possibilities to improve productivity, growing personal care and home care markets. Threats—Rising input cost inflation, counterfeit goods.11

Explain how tactical decisions differ from strategic decisions.

Tactical: tactical plan specifies the short-run actions (tactics) that a firm undertakes in implementing a given marketing strategy. At this stage, a strategy is operationalized. A tactical plan has three basic elements: specific tasks, a time frame, and resource allocation. Strategic: Strategic plans can be categorized by their duration, scope, and method of development. They range from short run, specific, and department generated to long run, broad, and management generated.

What criteria would you use to assess the role of marketing in a company?

The best goals comprise several elements. They are specific, measurable, attainable, relevant, and time-bound.

explain the exchange process

The marketing process is not concluded until consumers and publics exchange their money, their promise to pay, or their support for the offering of a firm, institution, person, place, or idea. Exchanges must be done in a socially responsible way, with both the buyer and the seller being ethical and honest—and considering the impact on society and the environment.

Outline the steps in a research design.

Who Collects the Data? A company can collect data itself or hire an outside research firm for a specific project. What Information Should Be Collected? The kinds and amounts of data to be collected should be keyed to the issue (problem) formulated by the firm. Who or What Should Be Studied? First, the people or objects to be studied must be stated; they comprise the population. People studies typically involve customers, personnel, and/or distribution intermediaries. Object studies usually center on firm and/or product performance. What Technique of Data Collection Should Be Used? There are four basic primary-data collection methods: survey, observation, experiment, and simulation. sampling, survey, semantic differential, observation, experiment, simulation, data-analysis

explain the anticipation of demand

a firm to do consumer research on a regular basis so it can develop and introduce offerings desired by consumers

What is employment empowerment?

employees are encouraged and rewarded for showing initiative and imagination. They can "break the rules" if, in their judgment, customer requests should be honored

explain the management of demand

includes stimulation, facilitation, and regulation tasks. Stimulation motivates consumers to want a firm's offerings due to attractive product designs, distinctive promotion, fair prices, and other strategies. Facilitation is the process whereby the firm makes it easy to buy its offering by having convenient locations, accepting credit cards, using informed salespeople, and enacting other strategies. Regulation is needed when there are peak demand periods rather than balanced demand throughout the year or when demand exceeds supply. Then, the goal is to spread demand throughout the year or to demarket a good or service (reduce overall demand).

What is the scientific method? Must it be used each time a firm does research? Explain your answer.

incorporating objectivity, accuracy, and thoroughness—should be followed when collecting and analyzing any marketing information. With objectivity, data are gathered in an open-minded way. Judgments are not reached until all data are collected and analyzed. Accuracy requires the use of carefully constructed research tools. Each aspect of data gathering, such as the study format, the sample, and tabulations, is well planned and executed.

explain the satisfaction of demand

involves product availability, actual performance upon purchase, safety perceptions, after-sale service, and other factors. For consumers to be satisfied, goods, services, organizations, people, places, and ideas must fulfill their expectations.

Describe the elements of a basic marketing information system.

is "a set of procedures and methods for the regular, planned collection, analysis, distribution, and storage of information for use in making marketing decisions."

Marketing

the anticipation, management, and satisfaction of demand through the exchange process.