Principles of marketing Ch 2, 17, 18, 20
10) A typical customer database is an organized collection of geographic, demographic, psychographic, and ________ data about individual customers or prospects. A) ethical B) cultural C) medical D) behavioral E) emotional
D) behavioral
12) Data about the recency, frequency, and monetary value of past purchases are included in the ________ category of a customer database. A) demographic B) psychographic C) geographic D) behavioral E) assessment
D) behavioral
11) Each competitor has a mix of objectives. The company wants to know the relative importance that a competitor places on all of the following EXCEPT ________. A) company history B) current profitability C) market share growth D) cash flow E) technological and service leadership
A) company history
13) The more that one firm's strategy resembles another firm's strategy, the more likely the two firms are to ________. A) compete B) join C) grow D) partner E) succeed
A) compete
1) Gaining ________ requires delivering more value and satisfaction to target consumers than competitors do. A) competitive advantage B) competitor analysis C) benchmarking D) a market-center E) a target advantage
A) competitive advantage
5) ________ involves first identifying and assessing competitors and then selecting which competitors to attack or avoid. A) Competitor analysis B) Benchmarking C) Customer-centered analysis D) Market leading E) The marketing management process
A) competitor analysis
8) Companies can identify ________ from both the industry and market point of view. A) competitors B) products C) customers D) locations E) employees
A) competitors
20) Analysis conducted to determine what benefits target customers value and how they rate the relative value of various competitors' offers is known as ________. A) customer value analysis B) competitive customer analysis C) power analysis D) advertising specialty analysis E) benchmarking
A) customer value analysis
11) Information about a customer's age, income, and family makeup is in the ________ category of a customer database. A) demographic B) psychographic C) geographic D) behavioral E) assessment
A) demographic
19) Which of the following reasons is LEAST likely to explain why direct-mail marketing drives more than a third of all U.S. direct marketing sales? A) less expensive than mass media ads per thousand people reached B) high target market selectivity C) ability to be personalized D) measurable results E) flexibility
A) less expensive than mass media ads per thousand people reached
8) One of the advantages of direct marketing for sellers is that direct marketing ________. A) offers access to buyers outside local markets B) eliminates the need for a company to employ a sales force C) provides statistical information about industry buying habits D) provides comparative information about customers and competitors E) avoids expenses such as rent, insurance, and utilities
A) offers access to buyers outside local markets
19) A firm should compete with ________ competitors in order to sharpen its abilities. Succeeding against these competitors often provides greater returns. A) strong B) international C) weak D) distant E) smaller
A) strong
1) ________ calls for meeting the present needs of consumers and businesses while also preserving or enhancing the ability of future generations to meet their needs. A) Sustainable marketing B) Innovation C) Consumerism D) Environmentalism E) The strategic planning concept
A) sustainable marketing
5) McDonald's "Plan to Win" strategy has added healthy food options to its menu, phased out traditional artery-clogging trans fats, launched a major multifaceted education campaign, and addressed environmental issues. "Plan to Win" best exemplifies which concept? A) sustainable marketing concept B) marketing concept C) societal marketing concept D) strategic planning concept E) consumer business concept
A) sustainable marketing concept
18) The best-known product portfolio planning method was developed by ________. A) the Boston Consulting Group B) Philip Kotler C) the SWOT Consulting Group D) the SRI Consulting Firm E) James P. Hess
A) the Boston Consulting Group
19) Planned obsolescence and perceived obsolescence might involve all of the following EXCEPT ________. A) the use of unsafe materials B) producers continually changing consumer styles C) the holding back of attractive functional features, then introducing them later to make older models obsolete D) the use of materials that will rust sooner than they should E) the use of components that will break soon after purchase
A) the use of unsafe materials
10) Which of the following is the principle objective of a market-oriented mission statement? A) to satisfy basic customer needs B) to satisfy basic supplier needs C) to satisfy basic stockholder needs D) to satisfy basic owner needs E) to satisfy basic partnership needs
A) to satisfy basic customer needs
8) A long-standing charge against intermediaries is that they mark up prices beyond the ________. A) value of their services B) delivery charges C) going market price D) promotion cost E) resale value
A) value of their services
11) All of the following are accurate guidelines for a company's mission statement EXCEPT which one? A) A mission statement should be realistic. B) A mission statement should be narrow C) A mission statement should emphasize the company's strengths in the marketplace. D) A mission statement should be specific. E) A mission statement should motivate employees.
B) A mission statement should be narrow
20) Which of the following is an individualized Web site that allows a customer to directly connect to a marketer? A) kiosk B) PURL C) DMA D) FTC E) spam
B) PURL
9) Which of the following is essential for direct marketing to be effective? A) an online presence B) a good customer database C) a well-trained sales force D) inbound telephone marketing E) digital direct marketing technologies
B) a good customer database
5) Which of the following provides an answer to these questions: What is our business? Who are our customers? What do our customers value? What should our business be? A) objectives and goals B) a mission statement C) a business portfolio D) marketing and functional strategies E) operational strategies
B) a mission statement
13) Psychographic data in a customer database used by direct marketers includes information regarding a customer's ________ and ________. A) interests; income B) activities; opinions C) age; buying preferences D) opinions; age E) hobbies; income
B) activities, opinions
14) Business portfolio planning involves two steps: ________ and ________. A) identifying SBUs; assessing the attractiveness of SBUs B) analyzing the current business portfolio; shaping the future business portfolio C) identifying internal strengths; identifying external opportunities D) conducting a SWOT analysis; establishing marketing controls E) identifying growth opportunities; evaluating growth opportunities
B) analyzing the current business portfolio, shaping the future business portfolio
7) Critics charge that intermediaries ________. A) are too few in number B) are inefficient C) provide only necessary services D) underprice their services E) are too competitive
B) are inefficent
17) After management has identified the key businesses making up its company, what is the next step in portfolio analysis? A) identifying businesses in which to invest B) assessing the attractiveness of its SBUs C) deciding whether to harvest any businesses D) completing short-range planning E) identifying SBUs
B) assessing the attractiveness of its SBUs
3) Modern direct marketers rely heavily on database technologies and the Internet, while early direct marketers primarily used direct mailers, telemarketing, and ________. A) door-to-door salespeople B) catalogs C) POP promotions D) e-mail E) inside salespeople
B) catalogs
6) To plan effective marketing strategies, the company needs to find out all it can about its competitors. It must constantly compare its marketing strategies, products, prices, channels, and promotion with those of close competitors. This is an example of ________. A) benchmarking B) competitor analysis C) customer value analysis D) product leadership E) continuous innovation
B) competitor analysis
18) Catalogs, brochures, samples, and DVDs can all used in which type of marketing? A) direct-response marketing B) direct-mail marketing C) digital direct marketing D) kiosk marketing E) online marketing
B) direct-mail marketing
3) Part two of a competitor analysis is assessing all of the following EXCEPT a company's ________. A) objectives B) employees C) strategies D) strengths and weaknesses E) reaction patterns
B) employees
12) Deceptive promotion differs from deceptive pricing in that deceptive promotion overstates the product's ________ or ________. A) true price; performance B) features; performance C) packaging; costs D) brand; package contents E) availability; package contents
B) features, performance
16) ________ persuades people to buy goods they had no thought of buying. A) Sustainable marketing B) High-pressure selling C) Strategic marketing D) Redlining E) Reverse redlining
B) high-pressure selling
14) Advertising "puffery" is a term for ________. A) a straightforward promotional message B) innocent exaggeration for effect C) emotional appeals to consumers D) subliminal appeals to consumers E) value-added promotions
B) innocent exaggeration for effect
12) A company that pursues ________ leadership will react much more strongly to a competitor's ________ manufacturing breakthrough than to the same competitor's advertising increase. A) high-cost; cost reducing B) low-cost; cost reducing C) service; cost reducing D) high-cost; efficiency improving E) market share; efficiency improving
B) low-cost, cost reducing
16) All of the following are forms of direct marketing EXCEPT ________. A) personal selling B) public relations C) telemarketing D) direct-mail marketing E) kiosk marketing
B) public relations
3) The ________ is specifically focused on future company needs. A) societal marketing concept B) strategic planning concept C) sustainable marketing concept D) marketing concept E) consumer business concept
B) strategic planning concept
8) Which of the following is NOT a market-oriented business definition? A) "to nourish lives by making them healthier, easier, and richer" B) "to sell tools and home repair and improvement items" C) "to deliver low prices every day" D) "to be the guardian of our customers' financial dreams" E) "to bring inspiration and innovation to every athlete in the world"
B) to sell tools and home repair and improvement items
5) Direct marketing is continuing to become more ________ oriented. A) television B) Web C) mail D) telephone E) radio
B) web
13) A major step in regulating "unfair or deceptive business acts and practices" was the enactment of the ________ in 1938. A) Robinson-Patman Act B) Wheeler-Lea Act C) Interstate Commerce Commissions D) Taft-Hartley Act E) Stamp Act
B) wheeler-lea act
15) How does database marketing benefit consumers?A) Companies make name-brand products and images readily available to customers. B) Companies match customer needs and interests with products and services. C) Customers receive better prices on products and services that they need. D) Customers receive faster and more reliable service from companies. E) Customers receive instant credit from more companies.
B)Companies match customer needs and interests with products and services.
9) Marketers respond to charges of high advertising and promotion costs that unnecessarily increase retail prices by arguing all of the following factors EXCEPT which one? A) Advertising and promotion make consumers feel wealthy. B) Advertising and promotion make consumers feel attractive. C) Advertising and promotion adds quality to the product. D) Advertising and promotion adds value by informing potential buyers of the availability and merits of a brand. E) Advertising and promotion is necessary for a firm to match competitors' efforts.
C) Advertising and promotion adds quality to the product.
19) Most portfolio analysis methods evaluate SBUs on two dimensions, namely ________ and ________. A) market share; strength of the SBU's position B) market diversification; relative market share C) market or industry attractiveness; strength of the SBU's position D) market growth rates; profits E) market penetration; market development
C) Market or industry attractiveness, strength of the SBU's position
2) When a firm develops and maintains a strategic fit between its goals and capabilities, it is performing ________. A) mission planning B) values planning C) strategic planning D) business-portfolio planning E) operations planning
C) Strategic planning
16) Which of the following can be a company division, a product line within a division, or sometimes a single product or brand? A) a market B) the BCG C) an SBU D) a PLC E) a value delivery network
C) an SBU
17) Knowing how major competitors react gives the company clues on how best to ________ competitors or how best to ________ the company's current positions. A) remove; decrease B) attack; increase C) attack; defend D) value; change E) decrease; defend
C) attack, defend
4) Strategies that strongly position the company against competitors and that give the company the strongest possible strategic advantage are ________. A) competitor analyses B) customer relationship strategies C) competitive marketing strategies D) competitive relationship strategies E) universal strategy analyses
C) competitive marketing strategies
3) Which of the following is the first step in strategic planning? A) set objectives and goals B) develop the business portfolio C) define the company mission D) plan marketing strategies E) identify threats and weaknesses
C) define the company mission
4) Amazon.com, eBay, and GEICO employ ________ as their only method of doing business with customers A) mass marketing B) sales promotion C) direct marketing D) public relations E) personal selling
C) direct marketing
10) Critics point out that in the drug industry, a pill that costs five cents to make may cost the consumer $2 to buy. This is an example of which of the following? A) deceptive advertising B) redlining C) excessive markups D) high-pressure selling E) shoddy products
C) excessive markups
6) All of the following are benefits of direct marketing for buyers EXCEPT ________. A) access to numerous products B) access to product reviews C) guaranteed low prices D) convenience E) privacy
C) guaranteed low prices
15) When critics claim that insurance, real estate, and used cars are sold, not bought, they are making accusations of the use of ________. A) deceptive promotions B) excessive markups C) high-pressure selling D) shoddy products E) excessive materialism
C) high-pressure selling
7) Companies can identify competitors from a ________ point of view by defining competitors as companies that are trying to satisfy the same customer need or build relationships with the same customer group. A) customer's B) market nicher's C) market D) database E) industry
C) market
7) All of the following are benefits of direct marketing for sellers EXCEPT ________. A) efficiency in reaching markets B) price and program flexibility C) mass reach and frequency D) lower cost-per-contact E) efficiency in order processing
C) mass reach and frequency
18) Critics have charged that some companies intentionally manufacture their products with materials or components that cause the product to need to be replaced before it actually should need replacement. What is this called? A) product failure B) short-term planning C) planned obsolescence D) nonfunctional warranty E) expressed dissatisfaction
C) planned obsolescence
15) Paul Pierce is busy working with other managers evaluating the products and businesses making up their company. Paul is engaged in ________. A) defining the company's mission statement B) preparing a business portfolio C) portfolio analysis D) marketing planning E) marketing control
C) portfolio analysis
6) Many critics charge that the American marketing system causes ________ to be higher than they would be under more "sensible" systems. A) imports B) exports C) prices D) product safety measures E) employee morals
C) prices
11) Deceptive practices fall into three groups: deceptive ________, deceptive ________, and deceptive ________. A) product; pricing; promotion B) pricing; promotion; placement C) pricing; promotion; packaging D) packaging; product; promotion E) product; packaging; placement
C) pricing, promotion, packaging
7) A company's mission statement serves as a statement of ________. A) fact B) sustainability C) purpose D) financial goals E) employee commitment
C) purpose
4) The ________ is specifically focused on the future welfare of consumers. A) strategic planning concept B) sustainable marketing concept C) societal marketing concept D) consumer business concept E) marketing concept
C) societal marketing concept
20) Marketers respond to charges of planned obsolescence with all of the following EXCEPT which one? A) Consumers like change. B) No one is forced to buy the new product. C) The product will eventually wear out anyway. D) For most technical products, customers want the latest innovations. E) Companies do not want to lose customers to other brands.
C) the product will eventually wear out anyway
2) What are the two main goals of direct marketing? A) to identify a potential customer and obtain an immediate response B) to obtain an immediate response and to facilitate a purchase C) to obtain an immediate response and build a lasting customer relationship D) to provide information and build a lasting customer relationship E) to save marketing dollars and facilitate a purchase
C) to obtain an immediate response and to facilitate a purchase
18) Most companies prefer to aim competition against ________. A) their biggest competitor B) the market leader C) weak competitors D) new competitors E) distant competitors
C) weak competitors
15) ________ is the process of comparing the company's products and processes to those of competitors or leading firms in other industries to find ways to improve quality and performance. A) Competitive advantage B) Advertising synergy C) Sales promotion D) Benchmarking E) Publicity
D) benchmarking
13) The collection of businesses and products that make up a company is called its ________. A) strategic business unit B) mission statement C) strategic plan D) business portfolio E) operational factor
D) business portfolio
2) The first step in initiating competitive marketing strategies is to conduct ________. A) a private screening B) a competitive advantage analysis C) management modifications D) competitor analysis E) absolute advantage processing
D) competitor analysis
17) Which kind of marketing involves sending an offer, announcement, reminder, or other item to a person at a particular physical or virtual address? A) kiosk marketing B) digital direct marketing C) catalog marketing D) direct-mail marketing E) telephone marketing
D) direct-mail marketing
14) All of the following are common uses for a direct marketing customer database EXCEPT ________. A) generating sales leads B) identifying prospective customers C) profiling customers based on previous purchases D) gathering marketing intelligence about competitors E) building long-term customer relationships
D) gathering marketing intelligence about competitors
10) From a(n) ________ point of view, Pepsi might see its competition as Coca-Cola, Dr Pepper, 7UP, and the makers of other soft drink brands. From a(n) ________ point of view, however, the customer really wants "thirst quenching." A) market; industry B) market; consumer's C) industry; competitive D) industry; market E) company's; consumer's
D) industry, market
20) In the Boston Consulting Group approach, ________ provides a measure of market attractiveness. A) relative market share B) market development C) market penetration D) market growth rate E) market segmentation
D) market growth rate
6) ________ should be market oriented and defined in terms of ________. A) Annual plans; product needs B) Strategic plans; company needs C) Long-range plans; company needs D) Mission statements; customers' needs E) Objectives; competitors' threats
D) mission statements, customers needs
17) In which of the following scenarios would high-pressure selling tactics typically be most advantageous for marketers? A) selling situations with long-time customers B) selling situations with new customers with a high likelihood of becoming repeat customers C) selling situations with a company's most highly valued customers D) one-time selling situations E) selling situations with dissatisfied customers
D) one-time selling situations
14) Companies need to know each competitor's product quality, features, and mix; customer services; pricing policy; distribution coverage; sales force strategy; and advertising and sales promotion programs. These are all the dimensions that identify ________ groups within the industry. A) target B) leading C) geographic D) strategic E) competing
D) strategic
1) Which of the following involves adapting a firm to take advantage of opportunities in its constantly changing environment? A) long-range planning B) short-range planning C) media planning D) strategic planning E) annual planning
D) strategic planning
12) Revlon has clearly defined its "mission" of selling lifestyle and self-expression. In order for the firm to launch its strategic plan, the mission needs to next be turned into detailed ________ that guide each level of the company. A) sets of strategies B) sets of tactics C) product mixes D) supporting objectives E) sets of promotional tools
D) supporting objectives
9) All of the following are examples of product-oriented mission statements EXCEPT which one? A) "We are an online video service." B) "We run theme parks." C) "We sell shoes." D) "We sell lifestyle and self-expression; success and status; memories, hopes, and dreams." E) "We rent hotel rooms."
D) we sell lifestyle and self-expression, success and status, memories, hopes and dreams
1) Amazon.com was the first company to use ________, which is technology that sorts through customer purchasing patterns to create personalized site content. A) database marketing B) personalized marketing C) records management D) customer filtering E) collaborative filtering
E) collaborative filtering
9) A company is guilty of ________ if the company forgets latent competitors and only focuses on current competitors. A) marketing myopia B) misdirected segmentation C) competitor synergy D) competitor phobia E) competitor myopia
E) competitor myopia
16) Benchmarking has become a powerful tool for increasing a company's ________. A) brand image B) mass appeal C) employee training services D) distribution channels E) competitiveness
E) competitveness
2) All of the following are concepts that define the needs of consumers and/or businesses EXCEPT which one? A) marketing concept B) societal marketing concept C) strategic planning concept D) sustainable marketing concept E) consumer business concept
E) consumer business consumer
4) Which of the following is NOT a step in the strategic planning process? A) defining the company mission B) setting company objectives and goals C) designing the business portfolio D) planning marketing and other functional strategies E) evaluating all members of the value chain
E) evaluating all members of the value chain