Midterm Exam (Chapters 1-7)

Both product development strategies and diversification strategies involve _____. a. leaving the current market b. selling in a company's current market c. selling a company's current products d.selling in new as well as existing markets e. developing a new product (it's not C)

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Which of the following is a quantitative approach to research? a. in-depth interviews b. online focus groups c. marketing surveys. d. observational research e. ethnographic research (it's not D)

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Which of the following is an example of a convenience product? a. automobile b. furniture c. life insurance d. refrigerator e. candy (it's not D)

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_____ is the study of human populations in terms of size, density, location, age, gender, race occupation. and other statistics.

Demography

Susan Hart, the manager of a children's boutique, collects data from her monthly records of sales, costs, and cash flow. In this case, Susan is making use of _____ databases.

Internal

Which of the following is true of strategic planning in a firm?

It deals with adapting the firm to take advantage of changing marketing opportunities.

A successful niche marketing strategy relies on a firm's _____.

Knowledge of customer needs

Demographic, economic, natural, technological, political, and cultural forces form the _____ of an organization.

Macroenvironment

According to Maslow's theory, safety and social needs must be fulfilled after self-actualization needs.

False

In a SWOT analysis, strengths and weaknesses refer to a firm's external environment, while opportunities and threats refer to the internal environment.

False

Gulf Coast, a wholesale shrimp distributor, groups its customers by regions in the United States, such as Midwest, Northeast, and Southwest. For each region, Gulf Coast tailors a different set of advertisements and promotions. The supplier is segmenting its market according to _____.

Geographics location

Which of the following represents a change in the technological environment of a marketing firm?

Increased use of RFID systems to track products

At the extreme, micromarketing becomes ________ insofar as products and marketing programs are tailored to the needs and preferences of customers.

Individual marketing

CVS Pharmacy changed its name to CVS Health, reshaping and broadening its lines of products and services to align more appropriately with its revamped "better health" mission. For example. it stopped selling tobacco products altogether. How would this be classified in a SWOT analysis?

Strength

American Honda purchases over $20 billion worth of auto parts and materials every year. _____ are key pavers in the company's success.

Suppliers

Business advisory services such as legal or advertising are classified under which category of industrial products?

Supplies and services

Dollar General profitably appeals to families with more modest means. The retailer's approach is most likely referred to as ____.

Target marketing

Which of the following is most likely true about business legislation? a. Business laws fail to prevent unfair competition among the different companies in a market and tend to encourage b. Business laws that are enforced by government agencies have a major impact on a company's marketing performance c. Business laws are enforced only in international markets and not in local markets. d. local, national, and state business laws rarely overlay with one another e. Business laws usually remain constant over time (it's not A)

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Which type of market segmentation is generally used by marketers who sell luxury products targeted to the affluent segments of a population? a. usage rate b. benefits sought c. income d. gender e. occasion (it's not A)

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The 4Ps model has been challenged because it omits or underemphasizes important activities such as services. It's also been criticized for taking a seller's. rather than a buyer's. viewpoint. The more recent 4As framework complements the traditional model and includes _____.

Acceptability, affordability, accessibility, and awareness

Procter & Gamble's Tide detergent does not phone or call on all of its consumers to get to know them personally. Instead, Tide creates engagement and relationships through brand-building advertising, Web sites, and social media presence. Which of the following types of associations would be most profitable for the firm to develop with these customers?

Basic relationship

A _____ is defined as a name, term, sign, symbol, or design, or a combination of these, that identifies the maker or seller of a product or service.

Brand

Which of the following terms is used to describe a specific mix of human traits that may be attributed to a particular brand?

Brand Personality

_____ occurs when two established brand names of different companies are used on the same product.

Co-branding

Hammond Corp. operates in the highly aggressive electronics market. The firm aims to obtain early warnings of opportunities and threats caused by the actions of other firms that are doing well in the industry. Which of the following sources would best serve Hammond's purpose?

Competitive marketing intelligence

Marketers are said to suffer from marketing myopia when they ignore underlying consumer needs and focus excessively on?

Consumers' existing wants

The objective of ________ research is to gather preliminary information that will help define the problem and suggest hypotheses.

Exploratory

Kathy Jenkins is planning to conduct research on consumers' personal care routines. Since the questions are likely to be personal and sensitive, Kathy wants to select a contact method that will encourage respondents to answer honestly. Which of the following contact methods is most likely to best serve Kathy's purpose.

Mail Questionnaires

Under Armour increasing its advertising spending and offering an ever-increasing range of styles and colors in its original apparel line is an example of a ____ strategy.

Market Penetration

_____ is the process of dividing a market into distinct groups of buyers who have different needs, characteristics, or behavior.

Market Segmentation

Which of the following is the right order of the steps that companies generally follow in designing a customer-driven marketing strategy?

Market segmentation, market targeting, differentiation, and positioning

_____ is the art and science of choosing target markets and building profitable relationships with them.

Marketing management

A _____ is purposeful, specifying what an organization wants to accomplish in the larger environment.

Mission statement

Which of the following terms best describes the process of designing and producing a container or wrapper for a product?

Packaging

Bill thought he had received the best deal on his riding mower. Shortly after the purchase, Bill started to notice certain disadvantages of his new riding mower as he learned more about other riding mowers available in the same price range. Bill is In which of the following stages of the buyer decision process?

Postpurchase behavior

Harper Farms raises chickens. For years, it has used wooden coops for hauling its poultry to market. When the owner, Jane Harper, went to reuse some of her coops, she noticed many of them could not be sufficiently cleaned for reuse and needed to be replaced. Which stage of the business buying decision process was Harper in when she decided to replace her old coops?

Problem recognition

Clorox sells five major product lines, including cleaning, household, lifestyle, professional, and international. Together the product lines make up Clorox's _____.

Product Mix

Henry Ford's philosophy was to perfect the Model-T so that its cost could be reduced further for increased consumer affordability. This most likely reflects the _____.

Production concept

In a straight rebuy, a buyer ____.

Reorders something without any modifications

Hallmark's classic "When you care enough to send the very best" slogan appeals to which need category in Maslow's hierarchy?

Social

Susan has been redecorating her new condo for a year. She is carefully selecting every item. Susan finds an oriental rug that matches her color scheme and decor perfectly and purchases it immediately without engaging in comparison shopping. This is an example of a(n) _____.

Specialty product

According to the BCG matrix, products or businesses with a high market share in a high-growth market are classified as _____.

Stars

Which o the following is most likely true about companies that take a proactive stance toward the marketing environment.

They develop strategies to change the marketing environment.

A business marketer normally deals with tar fewer buyers than a consumer marketer.

True

Marketing research is the systematic design, collection, analysis, and reporting of data directly relevant to a specific marketing situation facing an organization.

True

Target and Kohl's have opened smaller-format stores designed to fit the needs of densely packed urban neighborhoods. This is an example of geographic segmentation.

True

The rapid increase in the number of people who telecommute has created a booming small office/home office market in the United States.

True

Total quality management is an approach in which all of the company's people are involved in constantly improving the quality of products, services, and business processes.

True

According to the five-step model of the marketing process. the first step in marketing is _____.

Understanding the marketplace and customer needs and wants

Which of the following is an example of a local public?

a community organization that addresses welfare issues in its neighborhood