MKT-120 Ch. 1-4
Which of the following best describes the acceptance of the marketing concept by American organizations?
The marketing concept has yet to be fully accepted by all organizations.
The marketing concept affects
all organizational activities
Marketing knowledge and skills
are valuable personal and professional assets.
Jason, a 17-year old high school student, wants to buy a pack of Marlboro Lights. He has the money to purchase them, but he is still not considered to be a market for the product due to his lack of ____ to buy.
authority
American Express is an international financial services company that provides credit cards that are typically associated with individuals who travel on business and utilize their cards for purchases at restaurants, travel services (e.g., transportation, hotel), or other purchases. American Express makes extensive use of purchase information to aid in management and marketing decisions as well as in their marketing efforts to enhance the number of businesses that accept payment by the American Express Card. American Express leverages their information about consumers by analyzing the charging history of credit card members, website traffic and information gleaned through the use of "cookies" and monitoring of social media, such as Twitter, Facebook, Instagram, and Pinterest. American Express believes data provides significant insights for their company." What type of information does American Express utilize?
big data
A firm's unique symbols, personalities, and philosophies comprise its
corporate identity
A(n) ____ is a collection of information arranged for easy access and retrieval.
database
Issues of inventory levels and storage costs are both concerns relating to the ____ variable of the marketing mix.
distribution
A target market is always defined by demographics.
false
Which of the following is theleastflexible survey method?
mail surveys
Your quarterly strategic planning meeting will be held next month. You will schedule all the brainstorming and discussion activities for the meeting in a sequence and structure consistent with the hierarchy of the traditional strategic planning process. Which of the following sequence of activities should you schedule in order to be most consistent with the hierarchy of the traditional strategic planning process?
1: Develop the company's mission and goals; 2: Develop business unit strategies; 3: Complete a SWOT analysis for the company; 4: Develop functional area goals and objectives.
Which of the following companies would probably be most interested in tracking discretionary income levels?
BMW automobiles
Big data is the new hot topic in technology and marketing. It promises to provide many informational benefits to the companies that can harness it most effectively. But all new things come with positives and negatives. Which one of the following is a challenge associated with big data?
Determining how to get value from the data.
Which of the following is a characteristic of a marketing objective?
It is consistent with both business-unit and corporate strategy.
To maintain the control needed to obtain accurate information, marketers approach marketing research as a process. Which of the following steps of that process focuses on uncovering the nature and boundaries of the marketing situation to be studied?
Locating and defining problems
Paws and Claws Hotel is a full-service pet salon and boarding kennel. Paws and Claws has an interactive website where customers can directly book a grooming appointment, obedience class, or overnight accommodations for their dog or cat. Paws and Claws has several unexpected services, such as a 600-square foot swimming pool, complete with slide and dog-friendly graduated steps to help them exit the pool. Customers can also drop their dog or cat off each morning for pet day care. Paws and Claws has a pick-up and delivery service, webcams in every kennel so that pet families can view their pets while away, and pet "furniture" so that the cats and dogs can lie on sofas just like at home. Paws and Claws is also open 24 hours a day, 365 days each year so that customers can pick up their pet at any time. The cost for an overnight stay at Paws and Claws averages $50, compared to competing kennels at about $30. The day care costs are $25 for either a dog or cat. The majority of Paws and Claws' competitors don't offer the day care service, and require an two-day minimum for overnight stays. Informal discussions with customers led to the addition of pet day care and 24-hour hours of operation. Previously, Paws and Claws was more interested in competing based on its prices. Refer to Scenario 1.2. Previously, Paws and Claws was most likely using a ____ orientation, while now it is now in the process of employing the _______.
Sales; Marketing concept.
A SWOT analysis focuses on an organization's:
Strengths, Weaknesses, Opportunities, and Threats.
The manager of MegaMarket is interested in asking consumers what they think about the store's new layout and expanded produce selection. If the manager would like to obtain a high response rate and have the study conducted as quickly as possible, which data collection method would you recommend?
Telephone survey
____ competitors are the most significant to marketers because buyers see the different products of these firms as direct substitutes for each other.
brand
Rollins Steel Corporation, a leader in industrial supplies, has identified its auto battery unit as having a dominant market share; however, it has low prospects for growth. The unit currently generates more cash for Rollins Steel than is required to maintain its market share. According to the Boston Consulting Group, the auto battery unit would be classified as a _____
cash cow
Creating long-term relationships with customers is a key component to surviving and thriving in today's competitive business landscape. One tactic many companies are deploying is the use of membership or loyalty programs where customers can accumulate points and receive discounts or free merchandise. For example, Kimpton Hotels encourages customers to join their membership program and provide key contact information such as their e-mail, address, and phone number. Kimpton Hotels offers benefits such as upgrades and free room nights based on the number of stays or points a customer has accumulated. This example demonstrates how Kiimpton Hotels is utilizing:
customer relationship management
In 2009 the Coca-Cola Company introduced the "Freestyler," a new free-standing soda dispensers where consumers can chose from over 120 different types of soda and customize their drink. Freestylers would take the place of typical dispensers where there are only a few different types of soda brands available. In order to develop the new dispenser, Coca-Cola collected information on the soda-drinking habits of individuals in several different age groups, as well as information about new technologies for dispensing liquids from vending machines and the sales of its "fountain" syrup for national restaurant chains to use in their soda machines. Coca-Cola's collection of this information is an example of _____ while the assessment of its impact on the potential for the new "Freestyler" is an example of _________.
environmental scanning; environmental analysis
If Little Caesars wants to determine the impact of different coupon offers on pizza unit sales, it needs to conduct
experimental research.
An oligopoly exists when a firm offers a product that has no close substitutes, making the firm the sole source of supply.
false
Cash cows are market leaders that are growing fast, with substantial reported profits.
false
Experimental research is used to make tentative hypotheses more specific.
false
Marketing research is a systematic and orderly gathering of information supplied through the routine reporting system within the organization.
false
Marketing strategies should be established before marketing objectives are decided.
false
Conclusive research is used when marketers need more information about a problem or want to make a tentative hypothesis more specific.
false
Credit increases future buying power.
false
If a person is rewarded for developing a deceptive advertisement, he or she probably will not engage in such behavior in the future.
false
In probability sampling, there is no way to calculate the likelihood that a specific element of the population being studied will be chosen.
false
The actual physical production of goods is a marketing activity.
false
A marketing objective need not be consistent with the firm's overall objectives.
fasle
A market orientation is an organization-wide effort that includes all of the following activitiesexcept
focusing on the marketing department only.
In the last several years, the Western part of the United States has faced severe drought conditions with a lack of rain in states such as New Mexico, Arizona, and California. In these communities, WalMart collects rainwater in underground tanks and saves it to water the store's landscaping. In addition, WalMart takes advantage of other opportunities to conserve water. They have installed high-efficiency urinals that reduce water use by 87% compared to the conventional 1-gallon-per-flush urinals throughout all new stores. These high-efficiency toilets use 20% less water compared to allowable EPA standards of up to 1.6 gallons per flush. Based upon this information, it seems that WalMart is engaging in:
green marketing
StarKist Tuna announced a dolphin-safe policy and stopped buying tuna from fishing vessels that net dolphins. This decision indicates a response to concerns about
marketing environment
You want to include a detailed marketing organizational chart in the company marketing plan. Which of the following sections of the marketing plan will you include this chart in?
marketing implimintation
Realizing an increase in both the number of consumers who are environmentally-conscious and the number of consumers who are seeking vehicles that use less gasoline, several car manufacturers have developed hybrid automobiles. This is an example of identifying and capitalizing on a ____ while the strategic window is open.
marketing opportunity
For demographic purposes, a mail survey sent out by the American Cancer Society asks each respondent to identify their race by choosing among a list of possibilities. This common type of question is called a(n) ____ question.
multiple choice
If Procter & Gamble, the maker of Dawn dishwashing liquid, wants to know what percentage of customers examine product labels before making a product selection in the grocery store, it can best gain this information through
observation
In reporting marketing research findings, the researcher should
provide explanations in language that those who use the report to make decisions can understand.
Changes Salon is part of the hair and personal care service industry. In what type of competitive environment is Changes Salon most likely operating?
pure competition.
Buddy's Smokin' Bar-B-Que restaurant opened in 2014 and struggled to build a customer base for lunch, dinner, or event catering options. When the owners were planning the restaurant, they had projected they would sell 60 to 80 lunches daily with an average lunch price of $8.00 They believed that dinner business would be higher and they would also benefit from their approved liquor license, which could generate between 100 and 120 plates per day at $12 per customer. However, the actual daily lunch and dinner totals were much less and the owners were barely breaking even and wondered if they should close the business. However, Buddy's restaurant began an aggressive marketing effort, offered lunch and dinner specials and promoted the restaurant as a family-friendly place where everyone could enjoy fresh, smoked bar-b-que meats. As a result of their marketing efforts, the restaurant is selling out of its product almost daily and has built a take-away business as well. They are selling 100 lunches daily with an average price of $10 and approximately 200 dinner plates at $15. The restaurant is pleased with the revenue stream they're generating from the restaurant and considering opening a second location or adding space to accommodate more customers at the existing location. Using the data regarding number of plates sold and the average order amount generated, what kind of analysis can the owners of the restaurant perform to assist them in understanding their business opportunities?
sales analysis
The application of mechanical and human efforts to either people or objects to provide intangible benefits to customers is known as a(n)
service
According to the text, ____ interpretation focuses on what is typical or what deviates from the average.
statistical
According to the text, ____ interpretation focuses on what is typical or what deviates from the average.
statistical
Marketing managers at Consolidated Equipment Corporation are involved in establishing marketing performance standards, evaluating performance, and reducing the differences between actual and desired performance. These marketing managers are engaged in
strategic performance evaluation.
Managers at the Longshore Corporation are engaged in a complex process of revising their organization's mission and goals and developing corporate strategy, marketing objectives, marketing strategy, and, eventually, a marketing plan. This process is called
strategic planning
You are leading the breakout session on developing the marketing strategy at your company's strategic planning conference. You have prepared discussion guidelines and rules of engagement to keep all attendees in the session focused on the task at hand. Your guidelines for developing the company's marketing strategy
suggest that the marketing objectives should be consistent with both the business-unit and the corporate strategies.
You asked your stockbroker to consider buying some shares of Facebook, Inc. for your investment account. But, first you want to review the summary points in the SWOT analysis the stockbroker's firm did on the company. The following summary points were listed in the SWOT analysis: Facebook has a reputation as a market leader and it is quickly establishing a formidable brand loyalty amongst its users. Because of its position in the industry, it risks incurring high costs associated with creating and marketing new products that are designed to perpetuate its industry leadership. These summary points suggest
that Facebook has a first-mover advantage.
A recent business news publication ran an article titled, "Starbucks Brews a Win-Win for Baristas, Employers". The article discussed recent initiatives implemented by the company that are proving to be very positive for the company and the baristas working in its coffee shops. This article is an example of
the firm taking a stakeholder view with its initiatives.
A core competency is something a firm does extremely well-sometimes so well that it gives the company an advantage over its competition.
true
Marketing managers can classify a firm's products into four basic types: stars, cash cows, dogs, and question marks.
true
Marketing objectives should be stated in such a way that the degree of accomplishment can be measured accurately.
true
Telephone surveys allow an interviewer to gain rapport with respondents and to ask probing questions.
true
The outcomes of a marketer's decisions and actions may be affected by the variables in the marketing environment.
true
Credit increases current buying power at the expense of future buying power.
true
In general, corporate executives prefer research reports that are short, clear, and simply expressed.
true
Knowing about marketing can help you evaluate the types of corrective measures needed to stop questionable marketing practices.
true
Monitoring the competitive environment guides marketers in developing competitive advantages.
true
Products can be goods, services, or ideas.
true
Results of a mail survey can be misleading if there is a high non-response rate.
true
Technology affects the types of products offered to consumers.
true
The opportunity to obtain data via the Internet has resulted in more than half of all marketing research coming from secondary sources.
true
Reese has recently joined PharmaTec, a large pharmaceutical firm, as a sales representative. During his interview, he was surprised that no one wanted to talk about why the previous sales rep suddenly left the company. However, today he has just been "briefed" on the recent lawsuit one of the physician's has filed against PharmaTec concerning the lack of information he received from the company about the negative effects of one of its cholesterol drugs. Reese's sales manager has demanded that if he comes across any documentation in the former sales representative's office about visits with the physician, that Reece is to not say anything to anyone and notify the manager immediately. Reese certainly doesn't want to jeopardize his new, and potentially profitable, job. He has identified four possible courses of action he could take. He knows he should evaluate each possible action with which of the following criteria in order to choose the one most appropriate?
whether the action is inherently right or wrong
Instead of addressing the question ____, many environmentalists and marketers believe the question should be ____.
"What should we do with our waste?"; "How can we produce products without waste?"
Your quarterly strategic planning meeting will be held next month. You will schedule all the brainstorming and discussion activities for the meeting in a sequence and structure consistent with the hierarchy of the traditional strategic planning process. Which of the following sequence of activities should you schedule in order to be most consistent with the hierarchy of the traditional strategic planning process?
1: Develop the company's mission and goals; 2: Develop business unit strategies; 3: Complete a SWOT analysis for the company; 4: Develop functional area goals and objectives.
____ ethical issues generally surface when companies fail to disclose risks associated with a product or information regarding its function, value, or use.
Product-related
Which of the following is not a dimension of social responsibility and marketing citizenship?
Technological
You are watching an episode of a new game show that tests contestants' knowledge by giving them phrases they must respond to with a question. The following marketing-related phrase comes up in the bonus round of the game: "It's an informed guess or assumption about a problem or set of circumstances. It is based on all the insight and knowledge available about the problem or circumstances from research studies and other sources." The contestant's response should be
What is a hypothesis?
In marketing research, a sample is best described as
a limited number of units chosen to represent the characteristics of a total population.
Warnings on television commercials for prescription drugs include a list of sometimes grotesque side effects that are possible when taking that particular drug. The consumer right to ____ most applies to these commercials.
be informed
Southwest Airlines has a history of being able to retain its employees due to the atmosphere and culture of the company. Employees have been known to dress up in costume on an airplane, engage in "games" with the passengers, and generally provide a fun atmosphere for traveling. While other airlines have low rates of customer satisfaction, Southwest tends to maintain a high rating with its customers. Recent gas price hikes have caused most airlines to charge for checked luggage and to fill every flight to its maximum, adding to the negative experience of airline travel. Southwest keeps its costs low through several methods, one being that they do not serve meals on flights, or provide pre-boarding passes. The typical flight is two hours or less and occurs between several selected cities rather than flying to practically anywhere in the country. Southwest is known for its low fares, its dependability, and its on-time flights. Refer to Scenario 2.1. Southwest's low fares, dependability, and its on-time flights represent its
competitive advantage
Matt Lothamer is the supply chain manager for a large plastics manufacturing company. He is responsible for procuring a wide variety of raw materials to be utilized in the manufacturing process of their plastic products. As part of an annual quality control and expense analysis, Matt is reviewing the prices charged by the raw materials suppliers and also seeking bids from competing suppliers to determine whether any savings could be realized. Matt is rewarded by the company with bonuses if he's able to reduce expenses and associated with the raw materials as this could lead to higher profit margins on the products they manufacture. Matt knows that saving a few cents can make a dramatic difference since they manufacture thousands of products at their state-of-the-art facility in Indiana. What type of analysis do you believe Matt Lothamer can perform utilizing the data related to the prices charged by their current and prospective raw materials suppliers?
cost analysis
A recent Council of Supply Chain Management Professionals meeting featured an executive from Dell Computer, known for their ability to customize computers to customers' needs as well as their ability to provide quality products at economical prices through their retail channel. The executive discussed the capabilities of their firm regarding the ability to produce products that are "built-to-order" and noted that recent customer insight showed customers were less willing to wait 7 to 10 days to receive their computer even though it was built to their specifications. As a result of this customer trend, Dell began forging relationships with retailers such as WalMart to provide a limited number of computer models in the retailers' store. In order to fulfill the orders to WalMart, Dell was required to make changes in their production and manufacturing such as holding more products in inventory and utilizing different modes of transportation. For example, Dell was able to shift from a focus on air transportation to over-the-road trucking which enabled them to cut costs in some areas. As Dell shifted from a "build-to-order" manufacturer to a "make-to-stock" manufacturer they also had to make investments in customer analytics to identify customer needs as well as collect insight regarding pricing. This customer insight was especially important to the retail partners like WalMart who requires their vendors to justify product stock decisions and provide proof that retail inventory will sell at the projected price points. Dell's ability to modify their business model by forging relationships with retailers such as WalMart as well as customer insights has helped the company achieve its revenue and profitability goals. Which variable of the marketing mix is most impacted by Dell's decision to become a "make-to-stock" manufacturer?
distribution variable
Information from the U.S. Census Bureau is commonly used as ____ by a variety of agencies and organizations.
external secondary data
Marketing research is a process designed to gather information
not currently available to decision makers.
WhiteWave Foods, producer of brands such as Silk Soymilk, specializes in manufacturing innovative and nutritious food products. Silk Soymilk was first launched in 1996, and is committed to the health of its customers, as well as the health of the planet. At Silk, they have offset all of their energy consumption with wind power, preventing over 16,000 tons of greenhouse gasses from entering the atmosphere each year. Silk Soymilk is made from a mixture of organic and natural, non-genetically modified soy beans, reducing the amount of pesticides in the air, soil, and water. Since 2002 they have been sponsoring the FarmAid concert, whose mission is to keep family farmers on their own land and ensure a safe, healthy food supply for all Americans. Refer to Scenario 3.4. Silk Soymilk's parent company, WhiteWave Foods, is currently operating at the ____ level of the social responsibility pyramid.
philanthropic
As the Industrial Revolution came to the United States, most firms operated in a(n) ____ orientation.
production
Boca Burger's website features information about products, recipes, and nutritional values, but customers cannot actually purchase products from the website. This website is most likely used primarily as a ____ marketing tool.
promotional
Assuming that inflation is low, high buying power characterizes the ____ stage of the business cycle.
prosperity
Today, establishing long-term, mutually beneficial arrangements in which both the buyer and seller focus on value enhancement through the creation of more satisfying exchanges is known as
relationship marketing.
All of the following are factors that influence the ethical decision-making process except
salary or wages.
If Weight Watchers is interested in collecting information about Americans' perceptions of dieting programs, and the company believes that significant regional differences may exist, the best type of sampling would be
stratified
Because of its highly efficient and low-cost distribution system, Walmart has a ____ advantage over Kmart.
sustainable competitive
A commercial for the drink SunnyD explains how nutritious it is in comparison to other, more "sugary" drinks. While children under 12 are the most likely consumers of SunnyD, the commercial is aimed at mothers. These mothers represent SunnyD's
target market.
You asked your stockbroker to consider buying some shares of Facebook, Inc. for your investment account. But, first you want to review the summary points in the SWOT analysis the stockbroker's firm did on the company. The following summary points were listed in the SWOT analysis: Facebook has a reputation as a market leader and it is quickly establishing a formidable brand loyalty amongst its users. Because of its position in the industry, it risks incurring high costs associated with creating and marketing new products that are designed to perpetuate its industry leadership. These summary points suggest
that Facebook has a first-mover advantage.
A market opportunity results from
the right combination of circumstances and timing that permits an organization to take action to reach a particular target market.
