Marketing Exam 1 (quiz 1 ch1-2 & quiz 2 ch 4-5)

Many U.S. companies first discovered marketing during the __________ era. market-oriented sales-oriented production-oriented value-based marketing retailing-oriented

market-oriented when most companies first started thinking in terms of meeting customer needs.

In the immediate environment, the competition has no effect on consumers. True False

F

The global spread of technology has eliminated all differences between cultures. True False

F

Four companies dominate the cereal industry. These firms produce in large volumes, promote heavily, and control access to the supermarket shelves through "slotting allowances," which are payments to retailers in return for shelf space. Combined, these four firms have: identical marketing mixes. all of these. achieved product excellence. violated laws governing competition. a sustainable competitive advantage.

a sustainable competitive advantage.

When a pharmaceutical company develops a new medication, it typically applies for a patent in order to prevent competitors from developing copycat products for several years. Pharmaceutical companies apply for patents in order to establish: an efficient supply chain. all of these. a market penetration growth strategy. an operational excellence macro strategy. a sustainable competitive advantage.

a sustainable competitive advantage.

By offering environmentally responsible products, green marketers

add value that other products do not have.

When marketers monitor the economic situation affecting their target markets, they are likely to monitor changes in all of the following EXCEPT currency exchange rates. purchasing power. inflation. interest rates. age.

age

Many executives and corporate boards of directors do not perceive social responsibility as part of their mission or responsibility. These business leaders consider corporate social responsibility to be the key to operational effectiveness. the equivalent of the AMA ethical value, "Do no harm." a component of basic business ethics. beyond the norms of corporate ethical behavior. a basic requirement of any business.

beyond the norms of corporate ethical behavior.

Strategic efforts to supply consumers with environmentally friendly merchandise are called the inconvenient truth. green marketing. the uncommon truth. earth marketing. the green generation.

green marketing.

To determine how attractive a particular market is in using the BCG portfolio analysis, __________________ is established as one axis. market profit potential sales dollars market growth rate competitive intensity market size

market growth rate The BGC matrix uses market growth rate on one axis and relative market share on the other.

The primary purpose of the __________ plan is to specify the marketing activities for a specific time. business resource organizational strategic marketing

marketing

Delivering the value proposition is also known as product design. wholesaling. endless chain marketing. a transactional orientation. supply chain management.

supply chain management.

Taking steps to encourage customer loyalty is one way to: test new products. promote efficiency. develop new pricing strategies. sustain an advantage over competitors. improve supply chain effectiveness.

sustain an advantage over competitors.

Which statement about the changing diversity in the United States is TRUE? Hispanics differ vastly from other groups in America in terms of consumer behavior. Asian Americans are the slowest growing minority population. African American U.S. households are more affluent than previous studies suggested. Minorities now represent almost half of the population in the United States. In spite of increases in the Hispanic population, Hispanic buying power is expected to maintain its current level.

African American U.S. households are more affluent than previous studies suggested.

Portfolio analysis is a useful and powerful tool, but firms often need to take a more balanced approach because: measures are difficult to obtain and project. substitute approaches can offer different insights. classifications can become self-fulfilling prophecies and strengths and weaknesses are distorted. None of these. All of these.

All of these

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 B2C underground C2B B2B

C2C

In mid-2010, Hewlett-Packard Company (HP) acquired Palm Computing, Inc., a manufacturer of personal devices and smart phones. Before deciding to acquire the company, strategic planners at HP spent time thinking about how Palm and HP would "fit" together, and how the acquisition might change HP's core goals and objectives. The strategic planners were engaged in the ____________ step of the strategic marketing planning process. Evaluate performance Situation analysis Define the business mission Identify and evaluate opportunities Implement marketing mix and allocate resources

Define the business mission

Burger King no longer uses SpongeBob SquarePants to promote burgers and fries because the character is no longer popular with young children. True False

F

The "Implement Marketing Mix" step of the strategic marketing planning process is part of the control phase. True False

F It is part of the Implementation phase, along with STP analysis.

Marketing's fundamental purpose is to create value by developing a variety of offerings that will earn income for the company. T/F

F Marketing's fundamental purpose is to create value by developing a variety of offerings, including goods, services, and ideas, to satisfy customer needs.

Corporate social responsibility refers to the coordinated actions of government organizations to address the ethical, social, and environmental impacts of business operations. True False

False Corporate social responsibility refers to voluntary actions taken by a company to address the ethical, social, and environmental impacts of its business operations and the concerns of its stakeholders.

The U.S. Federal Trade Commission created the Do Not Call Registry to curb problems with unwanted telephone solicitations. Which of the following was NOT one of the results? Dishonest telemarketers found it relatively easier to get through. Honest telemarketers found it easier to reach customers. All of these were results. Companies were forced to move away from telemarketing approaches. Consumers received fewer telephone calls.

Honest telemarketers found it easier to reach customers.

In the early 1990s, the inflation rate in Mexico was twice the rate in the United States, but the Mexican monetary authorities kept the peso/dollar exchange rate almost constant. For Mexican consumers

Mexican products became more expensive while U.S.-made products became comparatively less expensive.

Which of the following is NOT one of the four overarching strategies to create and deliver value and to develop sustainable competitive advantage? Product excellence Locational excellence Operational excellence Customer excellence Planning excellence

Planning excellence

Which social trend would lead you to purchase a protection plan against identity theft?

Privacy concerns

When Nike, the prominent athletic shoe manufacturer, branched out from selling only athletic shoes to also offering athletic clothing and gym bags, what type of growth strategy did this represent? Market development Product development Diversification Product penetration Market penetration

Product development offering new products to the same customers

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

T

Short-term profitable decisions can cause firms to lose customers in the long run. True False

T

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

T

Marketers in the United States are paying increasing attention to ethnic groups because they are more susceptible to marketing messages. government subsidies assist marketers attempting to communicate value to these groups. approximately 80 percent of all population growth in the next 20 years is expected to come from minority groups. country culture is replacing regional culture as a key marketing consideration. they represent a majority of the population in non-urban areas of the country.

approximately 80 percent of all population growth in the next 20 years is expected to come from minority groups.

The ______ plan is a formal statement of a set of business goals which are believed to be attainable.

business

The United States has often been called the "melting pot" society, integrating people from many different cultures into the social fabric of the country. The challenge for marketers is to determine whether a group's culture is an important immediate marketing environment variable. is passed from generation to generation orally or by written guides. competes with or complements U.S. traditional culture. can be used as a relevant identifier for a particular target group. is socially important.

can be used as a relevant identifier for a particular target group.

Firms that provide materials, transportation, advertising, accounting, and other goods and services, helping a firm create value for its customers, are called corporate partners. cooperatives. cultural cohorts. cartels. customers.

corporate partners.

For every consumer who purchases a pair of TOMS shoes for $55.00, the company promises that a child will receive a pair of shoes. TOMS shoes is actively engaging in corporate social responsibility. business ethics. marketing ethics. environmental marketing. overpricing its products.

corporate social responsibility.

If McDonald's wanted to change its marketing strategy in response to the social trends outlined in the text, it might consider all of the following ideas EXCEPT a. using recycled paper in its food packaging. b. expanding its low-cost menu options. c. speeding up drive-through service. d. creating an advertising campaign to target elementary school children. e. offering an expanded menu of

creating an advertising campaign to target elementary school children.

The many demands on consumers today have made it more difficult for marketers to grab consumers' attention. decide what to offer. deliver products just-in-time. offer green marketing solutions. differentiate between the needs of seniors and Baby Boomers.

grab consumers' attention.

Some companies have been accused of taking advantage of the current social trend of green marketing, positioning their products as environmentally friendly when this may not actually be the case. This is called

greenwashing

Lamar owns four dry cleaning stores in the suburbs of Orlando, Florida. He recently updated his STP analysis, and has just finished adjusting his marketing mix based on the STP results. His next strategic marketing decision will likely involve: what new government regulations might create opportunities or threats. which employees to promote or fire. how Disney World crowds will impact his business. when to shift from a customer excellence to an operational excellence strategy. how to allocate resources among his four stores.

how to allocate resources among his four stores.

By promoting perfume based on youth, style, and sex appeal, Calvin Klein is attempting to increase the perceived value of their products. stimulate supply chain management cooperation. none of these. encourage consumers to participate in product redesign. influence social norms regarding sexuality.

increase the perceived value of their products.

The four overarching strategies are

locational excellence, customer excellence, operational excellence, and product excellence

Gerald's Tire Store sets itself apart from competitors by the extra attention it pays to providing fast, courteous service in a clean, professional looking environment. Gerald's has used this strategy for over 40 years, expanding to 15 outlets. Gerald's Tire Store has created a ___________________ to create and deliver value and to develop a sustainable competitive advantage. diversification strategy market development strategy segmentation strategy macro, or overarching, strategy set of metrics

macro, or overarching, strategy focus on customer excellence

Adrienne decides to add new sales representatives and increase advertising in her existing market for her current line of security systems. Adrienne is pursuing a __________ growth strategy. diversification product development market penetration segment development market development

market penetration

The _____ plan specifies the marketing activities for a specific period of time.

marketing

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 state its long-term goals in general terms, so as to not interfere with managers' short-term goals. must always put society's needs ahead of the firm's needs. must evaluate its quarterly profit statement from an ethics standpoint. must ensure that long-term goals are aligned with the short-term goals of each individual within the firm. do all of these.

must ensure that long-term goals are aligned with the short-term goals of each individual within the firm.

Marketers who design and offer new products and services to their existing customers are pursuing a ____________________ growth strategy. product development product proliferation diversification market penetration market development

product development

__________ is communication by a marketer that informs, persuades, or reminds potential customers about a product. Pricing A relational orientation Promotion Value cocreation Placement

promotion

In New England foot-long sandwiches are called "grinders" while in many other parts of the country they are called "subs." This is an example of the impact of country culture. regulatory factors. generational factors. regional culture. social trends.

regional culture.

When Johnson & Johnson removed all Tylenol from the shelves after some containers were tampered with, poisoning and killing seven people, the company felt that nothing could stop Tylenol from losing most of its customers. sacrificed short-term profits for long-term credibility. was ordered to do so by the Food and Drug Administration. developed plans to sell the returned Tylenol bottles in less developed countries. was forced to do so following extensive consumer outcry.

sacrificed short-term profits for long-term credibility.

During the __________ era, firms had excess capacity and used personal selling and advertising to generate customers. sales-oriented production-oriented market-oriented value-based marketing retailing-oriented

sales-oriented

In the ___________ era, firms believed that a hard-sell approach was the answer to building sales.

sales-oriented

Darwin's company is facing a difficult ethical issue. The firm has identified the various stakeholders and their issues and gathered the available data. Everyone with an interest in the issue has engaged in brainstorming and evaluation of alternatives. Management reviewed and refined the alternatives. It should now choose the course of action that involves the fewest employees. minimizes costs. seems best after weighing the concerns of all stakeholders. creates the least possible publicity. maximizes profits.

seems best after weighing the concerns of all stakeholders.

Some discount stores put products in large bins and let consumers hunt and find bargains. The price these consumers pay includes the excitement they experience in finding an item they desire. the value of their time and energy. only the actual price they pay at the register. the savings to the store of not having to display the products neatly on shelves. the time the product was full price and didn't sell.

the value of their time and energy.

Unlike other business functions like accounting or finance, people in marketing are often singled out as the root cause of ethical concerns because they interact directly with consumers. they are trained in the art of effective persuasive communication. doing a good job of marketing requires some degree of unethical behavior. the problems that occurred at Enron, Tyco, and WorldCom were caused by marketers. they are not considered to be as quantitatively skilled as accounting and finance people.

they interact directly with consumers.

One of the goals of value-based marketing is to determine the value of the brand. to offer greater value than competitors offer. to sell to all consumers, regardless of their needs. to sell products for the highest possible price. to provide the greatest value for the least profit.

to offer greater value than competitors offer.

for some products, marketers can combine education level with other data like occupation and income to obtain

useful predictions of purchase behavior.

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 in the __________ era. sales-oriented market-oriented production-oriented retailing-oriented value-based marketing

value-based marketing

the poorest 10 percent of the U.S. population earned an average of _______ in 2010.

$5800

Which of the following actions, if it actually happened, would be the most likely to support and enhance an operational excellence macro strategy? McDonald's, lowering prices on its coffee drinks. Nike, opening hundreds of new company stores in high-traffic shopping areas. adidas, inviting customer suggestions to guide the design of the next generation of Air Jordan shoes. 3M Corporation, implementing new software to improve communication with its suppliers. Singapore Airlines, installing more comfortable seats in the economy-class cabins of its airplanes.

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

_____ includes everything the customer gives up to get the product.

Price

the members of the __________ generational cohort were born into a world where the Internet and extensive digital technologies already existed.

generation Z

Understanding the causes of performance, regardless of whether that performance exceeded, met, or fell below the firm's goals: allows managers to demonstrate their effectiveness. should be followed by eliminating underperforming SBUs. allows firms to better assess customer loyalty. offers insights into value-based pricing. enables firms to make appropriate adjustments.

enables firms to make appropriate adjustments. Once the causes of above- or below-goal performance are understood, firms can decide how the marketing plan should be adjusted

A(n)__________ is the trade of things of value between the buyer and the seller so that each is better off as a result. transactional orientation relational orientation market segment exchange promotional plan

exchange

The idea that a good product will sell itself is associated with the __________ era of marketing. value-based marketing sales-oriented market-oriented production-oriented retailing-oriented

production-oriented

When auditing expenses claimed by the university president, the auditors found extravagant spending on $1,000 per night hotels, banquets, and gourmet restaurants. The president was fired, alumni donations declined, and staff members—who were disturbed by the extravagance while staff salaries were frozen—quit their jobs. This example illustrates the need to identify issues. the lack of information needed to make ethical decisions. that universities are more corrupt than companies. that the impact of unethical actions can affect the organization in unanticipated ways. that the extravagant spending should have been kept quiet to minimize damage to the university.

that the impact of unethical actions can affect the organization in unanticipated ways.

Though Asian Americans comprise only 3 percent of the U.S. population, they represent

the fastest growing minority population.

Generation X is is known for which of the following characteristics? The biggest cohort since the original postwar World War II boom. The first generation of latchkey children. Have an obsession with maintaining their youth. Consider marriage secondary, and not obviously necessary, to being good parents themselves. The most globally connected generation.

the first generation of latchkey children