Principles of Marketing - Midterm: Chap 2,3,4,5,6,9

What is the final step in establishing an implementation timetable?

Assigning responsibility for completing each activity

ZYX Company has been a member of the Better Business Bureau for five years. In the past year, ZYX Company has had a number of customer complaints that it has not addressed. In response, what can the BBB do?

Expel ZYX Company from its local bureau

Your company is planning to increase its political influencing activities in the next fiscal year in an attempt to shape upcoming key legislation in your favor. Which of the following steps should you consider to accomplish this goal?

Form your own Political Action Committee (PAC).

Your company makes highly sophisticated components for military equipment. The U.S. Department of Defense is your largest customer. In recent years, you have expanded your customer base to include the militaries of all the major countries in the world. The following headlines appeared recently in the Sunday New York Times: "The Federal Reserve Board Chairman Sees Economic Growth Accelerating in the Third Quarter" "Congressional Republicans and Democrats Fail to Reach Compromise on the New Immigration Bill" "The Average Teen Spends Two Hours Per Day on Social Media Sites" "State Department Considers Imposing New Sanctions on Exports of Sensitive Military Technology" "Unemployment Rate Falls to 6.2%" Which one of the following statements is true regarding these headlines?

Headline #4 should be categorized as a legal and regulatory force in the company's marketing environment.

The Internet has radically changed the way traditional marketing used the marketing mix to attract and retain customers. Now e-marketing strategies require the marketer to reexamine the characteristics of the four components of the marketing mix. With respect to e-marketing, which of the following statements about the four components of the marketing mix is true?

Most traditional promotions can be enhanced by using digital media.

Which of the following statements about social responsibility is correct?

Social responsibility refers to a company's obligation to maximize its positive impact and minimize its negative impact on society.

Which of these statements is not true about business markets?

The purchase is always made by more than one individual.

Which of the following is not a characteristic of a consumer market?

Their purchasing decisions are always made by only one individual.

You are being quizzed on your knowledge of marketing. A question on the quiz asks, "What is the ultimate goal of marketing research for a firm?" Which of the following is the best answer to this question?

To improve organizational performance

You have just completed a two-day offsite meeting with your marketing team. During the meeting, you solidified your company's strategy for distributing, promoting, and pricing products, and understanding the needs and desires of your customers by utilizing digital media marketing tactics. Which of the following statements best describes what you just accomplished?

You developed your company's e-marketing strategy

Micromarketing is

a market segmentation approach in which firms focus precise marketing efforts on very small geographic markets.

Which of the following forecasting methods is least dependent on historical sales data?

a market test

The Altitude Adventure Academy is developing its marketing mix for the coming year. Its managers know that they must first select ____ which may be the most important decision they make in the planning process.

a target market

The ability to obtain digital information is referred to as

accessibility

The ability of a marketer to identify customers before they make a purchase is called

addressability

One of the most important benefits of e-marketing is the ability of marketers

and customers to share information

Lowes has an iPhone icon that allows users to match colors in photographs with the store's selection of carpets. This is an example of a(n)

application (app)

Ian, 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

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

Marketers understand that the best marketing strategy in the world is doomed to fail if it is not properly implemented. With that in mind, an effective implementation strategy

begins with identifying the activities to be performed, and ends with assigning responsibility for each activity to one or more team members.

Seller Company sells small refrigerators. It usually sells these refrigerators to hotels and offices. However, sometimes its customers choose to buy their refrigerators because they do not have a lot of room for a full-size refrigerator in their houses and apartments. Its primary market is the _____________ market, but it also sells to the _____________ market.

business; consumer

Zach is new to the realm of digital marketing. Recently, he saw a blog post about his company that was just untrue. He demanded the blogger remove the post. Much to his surprise, however, the post had already spread to other sites. Zach immediately released content on the corporate website and social media pages with information that refuted the post. Much to his surprise, however, the original post continued to spread. Zach does not understand why users are spreading the post when his organization has posted information claiming that the post is untrue. Zach has failed to realize that

consumer-generated digital content is often trusted over corporate content.

Milton Bradley/Parker Brothers are producers of many board games, such as Monopoly, Battleship, Yahtzee, and Clue. The company has posted online cash rewards for consumer reviews of their games. In doing so, Milton Bradley/Parker Brothers is striving to utilize

consumer-generated marketing

According to President Kennedy's consumer bill of rights, the right to choose means that

consumers should have access to a variety of products and services at competitive prices.

____ refers to customers' ability to regulate the information they view and the rate and sequence of their exposure to that information.

control

​____ strategy determines the means for utilizing resources in the functional areas of marketing, production, finance, research and development, and human resources to achieve the organization's goals.

corporate

Scenario 4.2 Use the following to answer the questions. Colin Jackson recently purchased Blue Waters Adventures, a kayak and canoeing rental business near the Chatsworth River in Arizona. Blue Waters Adventures had been in operation for five years and was located in an ideal area. Even though the winters in the area can be cold, kayaking and canoeing activities are generally popular year-round. After two months of operation, it became clear why the previous owners had sold the business. While the business appeared to be ideally located, sales were extremely disappointing. Refer to Scenario 4.2. Colin decided to apply some of the things he had learned in his marketing research class to his business. The first thing he should do is to ___________ which will help him ______.

define the problem to be researched; determine his data needs

Segmentation variables are usually grouped into four categories:

demographic, geographic, psychographic, and behavioristic.

The best approach for a company to take when monitoring its competitors is

developing a system for gathering ongoing information about competitors

A survey question that requires a yes or no answer is called a

dichotomous question

Charles and Melody are searching for a health club to join. This purchase will likely be affected by ____ involvement.

enduring

Research that allows marketers to make causal inferences about relationships is called

experimental research

When a company has its sales forecasts prepared by management consultants, economists, or college professors, it is using a(n)

expert forecasting survey

In many cases, companies that enter a market after innovative products have been introduced can achieve long-term competitive advantages by continuing to develop a better mousetrap. For example, VisiCalc was the first company to introduce a desktop spreadsheet program, but Lotus Notes cornered a large market share when it introduced the 1-2-3 program. Today, however, Microsoft's Excel is the dominant spreadsheet software program and has continued to endure due to the popularity of the Microsoft Office Suite of products. VisiCalc possessed a ___________ advantage while Microsoft enjoyed a ___________ advantage.

first-mover; late-mover

All of the following are marketer-dominated sources of information except

friends

Population density and city size are ____ variables used for market segmentation

geographic

As a result of the increasing usage of digital media, some of the marketer's control over dispensing product information has been placed

in the hands of the consumers

Crate and Barrel uses ____ to market themselves visually by displaying snapshots of company events, staff, and products.

instagram

Scenario 9.1 Use the following to answer the questions. The Walt Disney Company is a master at incorporating all the unique characteristics of digital media into their website. They know how to appeal to all types of consumers and utilize the full potential of digital media. The Disney website immediately catches your attention with sights and sounds that come alive. Not only can you catch a glimpse of an upcoming movie, but it also connects you with your favorite characters from movies past. The website offers age-appropriate games and activities, including the ability to create a fairy-tale cottage. The Disney Parks have their own links, of course, along with Radio Disney, the Disney Store, family vacation packages, and an educator's corner. An adult or child can enjoy navigating through the electronic marketing of Disney. Refer to Scenario 9.1. The Disney website is missing ____, because the website does not offer the opportunity for customers to directly communicate with Disney employees. Customers cannot express their needs and wants directly to the company.

interactivity

____ allows customers to express their needs and wants directly to a company in response to its marketing communications.

interactivity

Extended decision making is the type of consumer decision-making process that

is the most complex decision-making behavior, which comes into play when a purchase involves unfamiliar, expensive, or infrequently bought products.

________ that can allow almost real-time measurement and evaluation should be embedded at the onset of a social media strategy.

key performance indicators

Which of the following products is most likely to have its market segment based on age?

legos

Taco Bell has been very inventive in partnering with companies such as Frito-Lay to create new menu items. Recently Taco Bell developed the Nacho Cheese Doritos Locos Tacos, a Taco Supreme® made with premium seasoned beef, crisp lettuce, diced juicy red ripe tomatoes, real cheddar cheese, and topped with cool reduced-fat sour cream, in a shell made from Nacho Cheese Doritos® Chips. Prior to the partnership and roll-out of the product throughout the Taco Bell system, a ________was conducted where several "test" stores carried the products for a limited time and Taco Bell and Frito-Lay could measure the actual sales to gauge the strength of the brand and opportunity for success.

market test

The process of putting marketing strategies into action is called

marketing implementation

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 implementation

The Internet can be referred to as a ____ medium because users determine which websites they are going to view.

pull

According to the Boston Consulting Group, which of the following has a small share of a growing market and usually requires a large amount of cash to build market share?

question marks

Which sampling design gives every member of the population an equal chance of appearing in the sample?

random

______ do not engage in paid Internet advertising as much due to smaller budgets.

small businesses

Managers at the Hightop 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

Successful business organizations should take actions to convert internal weaknesses into ____ and external threats into ____.

strengths; opportunities

One of the biggest mistakes a marketer can make when engaging in digital marketing is to

treat it like a traditional marketing channel

Toys-R-Us is almost finished building a new store and will soon be having a grand opening celebration. Management wants to build excitement and anticipation for the event. Which social networking site would Toys-R-Us use to post multiple updates each day on the store's progress?

twitter

All of the following are steps in the marketing research process except

understanding your customer

If Morton Salt saw all table salt customers as pretty much alike and thus offered only one marketing mix, it would be using the ____ strategy.

undifferentiated

Apple provides users with the chance to download a travel ______________ onto its Mac OS X Dashboards. Once downloaded, users can book air travel and hotels right from this bit of downloaded software. Often they even receive deals on travel when they use it to book travel plans.

widget

A ____ is a type of software that creates an interface that enables users to add or edit the content of some types of websites.

wiki

Samson visits REI frequently because he likes the depth of its product selection. He also likes the friendliness of the staff and REI's environmental activism. Samson is influenced by ___________ motives.

patronage

After certain inputs have been selected to reach an individual's awareness, the next step in the perceptual process is perceptual

organization

Which of the following is not a factor cited in the text that affects the strategy for selecting a target market?

organizational structure

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.

After several children became ill while playing with toys imported from outside the United States, medical researchers found several illegal chemicals, including lead in the paint. These toys were sold primarily through websites on the Internet. Which of the following agencies would most likely have jurisdiction over the problem with lead in the paint of children's toys?

Consumer Product Safety Commission

Which of the following provides protection for and regulates brand names, brand marks, trade names, and trademarks?

Lanham act

It is time to develop a budget for marketing department activities for the next year. Your team is looking over the following costs.: Office rent Sales commissions Promotional budget Product development costs Office supplies The finance department has recently told you that you have $3,000 to spend on office supplies. You cannot go beyond this no matter what changes happen in the marketing department. Your salespeople get a flat 15% sales commission on anything they sell. With this in mind, which of these costs are variable costs?

Sales commissions, promotional budget, and product development costs

Competitive growth strategies are based on

analyses of each product or business unit.

When Coca-Cola takes the information collected through research and attempts to assess and interpret what it means for its soft-drink marketing efforts, Coca-Cola is engaged in environmental

analysis

When organizing perceptual inputs, people tend to mentally fill in missing elements in a pattern or statement. This principle is called

closure

The maximum percentage of market potential that an individual firm can expect to obtain for a specific product is the

company sales potential

Tiffany's markets its exclusive jewelry and gifts to high-income individuals interested in high-quality products and a well-known brand name. It uses the same marketing mix to reach this market. Tiffany's uses a(n) ____ strategy.

concentrated targeting

Your company is in the final stages of deciding whether to launch a new product that you have been testing for the last six months. While the CEO of your company is very optimistic about the potential for the product, he is a skeptic by nature. He has asked you to conduct one last round of market research that will give him greater confidence in the product's prospects. Which of the following types of marketing research should you conduct to satisfy the CEO's concerns?

conclusive research

Purposeful actions to take advantage of or harm others during a transaction is best described as

consumer fraud

Caleb is a football enthusiast. He watches all the big games, collects football memorabilia, and knows everything there is to know about football history. His best friend Shang is not a football fan. However, he does enjoy watching the Super Bowl every year because of all the excitement. He even finds that he gets really into the game. Usually the Super Bowl is the only football game Shang watches, but he still looks forward to it every year. Caleb has a(n) ____________ involvement with football, whereas Shang has more of a(n) _____________involvement.

enduring; situational

Procter & Gamble markets Cheer detergent to young singles and couples and Tide detergent to families. Procter & Gamble is using a(n) ____ targeting strategy for laundry detergents.

differentiated

Which of the following includes an assessment of the competitive, economic, political, legal, regulatory, technological, and sociocultural factors that could affect marketing activities?

environmental analysis

Both the Toyota Sienna and the Nissan Quest were very popular choices for family vans. Toyota noticed that the majority of its customers were families with 3 or more children, and so they developed commercials that featured larger families. They also produced commercials that featured Hispanic-looking actors and for some markets, in Spanish. Alicia Desario and her husband were currently shopping for a van for their family. As Alicia listened to an advertisement on the television about the Nissan Quest, she noticed that the Nissan cost about $27,000 and had gas mileage of about 17 mpg. She recalled an earlier ad for the Toyota Sienna, which also cost about $27,000, but had gas mileage of about 21 mpg. She also liked the way the family was portrayed in the Toyota ad, showing the children in the back seats having plenty of room, watching the DVD players, and having their own sound controls. When she spoke to Carlos, her husband, about how much she liked the Toyota van, he replied that its gas mileage was too low at only 16 mpg. Since Alicia didn't agree with that number, he produced a magazine ad that supported his claim of the 16 mpg for the Toyota. Alicia couldn't believe that she had made such an error in hearing what the gas mileage was for the Toyota and the Nissan. Refer to Scenario 6.2. Since Alicia and Carlos were using gas mileage as one of their evaluative criteria, they are most likely in the ____ phase of the consumer buying process.

evaluation of alternatives

When more information is needed about a problem and a tentative hypothesis needs to be made more specific, marketers usually conduct ____ research.

exploratory

Jordan and Cindy are searching for an apartment. They will most likely engage in which one of the following forms of decision making?

extended decision making

High school seniors who are trying to decide which college to attend and newlyweds looking to buy their first home exhibit the same behavior with respect to their level of involvement in their buying process. Which of the following best describes this common buying behavior?

extended problem-solving behavior

Evan has just been hired as a product manager for a major technology firm. Currently, he is making purchases for his new apartment and upcoming job. His purchase of _____ would most likely be done through extended decision making, while his purchase of ____ would be made through limited decision-making behavior.

flat screen tv; bath towels

Cyril has to decide whether to travel to New York by train or airplane. Traveling by train would take longer, giving him potentially less time to spend in New York. However, traveling by air would be much more expensive. The train as a form of transportation is what type of competitor to air travel?

generic

Sam's Club believes that most of its sales are to small businesses rather than consumers, and that women are more likely to be making the purchasing decisions. This is an example of a(n) ____ that Sam's Club could test through marketing research.

hypothesis

The amount of money received through wages, rents, investments, pensions, and subsidies is called

income

During the evaluation of alternatives stage of the consumer buying decision process, framing most likely influences the decision process of ____ buyers.

inexperienced

Which step in the marketing research process involves the use of data analysis and statistical techniques to help draw conclusions?

interpreting research findings

Scenario 6.1 Use the following to answer the questions. Consumers use information from many sources when making purchasing decisions, including information from friends and family members. One of the most dissatisfying consumer experiences is with auto repair. Aware of this, Kate has asked several of her friends and family members where they have their cars repaired, since she has experienced a problem starting her car when the weather is cold. Kate has heard that Skola's Auto Repair has reasonable prices, but it can be difficult to get an appointment. Steve, one of Kate's friends, had a very poor experience with Skola's. However, once he complained to them, they fixed the situation and now he prefers their auto repair shop over others. Refer to Scenario 6.1. The change in Steve's behavior toward Skola's Auto Repair, caused by the company's response to his complaint, is a function of

learning

A major determining factor in deciding which type of decision-making process should be used depends on the individual's intensity of interest in a product and the importance of the product for that person. This is known as an individual's

level of involvement

Archer Appliances owner Chris Archer feels that his organization has access to a great deal of information generated both inside and outside the firm, but much of this information is presently going to waste. Apparently, Chris needs to develop a

marketing information system

Safeway Foods Corporation is involved in identifying and analyzing a target market. The firm then develops a marketing mix to satisfy individuals in that market to gain long-term competitive advantages. Based on this example, Safeway is creating a

marketing strategy

A marketing objective should be expressed in clear, simple terms; be _____________; specify a time frame for completion; and ensure the marketing objective is _____________ with both business-unit and corporate strategies.

measurable; consistent

K. Winter Clothing is a medium-size specialty men's and women's clothing store in a market with many other specialty stores, department stores, and discounters. It has established a reputation for offering high-quality, fashionable merchandise with quality service. K. Winter's competitive environment would best be characterized as

monopolistic competition

When a firm has many potential competitors and tries to develop a marketing strategy to differentiate its products from the competitors' products, a(n) ____ structure exists in the competitive environment.

monopolistic competition

The Better Business Bureau is probably the best-known

nongovernmental regulatory group

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

Hereditary characteristics combined with personal experiences that together make an individual unique form one's

personality

The results of many studies have been inconclusive regarding the association between buyer behavior and

personality

The Transportation Division of the GE Corporation is located in a small city that has limited economic growth at this time. Due to the condition of the local school system, GE contributed $2 million to repair and revive it, stating that GE believed in education for the community. This action would imply that GE is in which level of the pyramid of social responsibility?

philanthropic

The International Company needs information about trends in housing starts and remodeling around the country. Since it will be difficult to collect _______ from the numerous locations, it decides to use _____ data from the U.S. Department of Commerce reports to get this information.

primary; secondary

Marketers who attempt to influence and change the various environmental forces have a(n) ____ response to these forces.

proactive

The two basic types of sampling that marketing researchers use are

probability and nonprobability

The five major stages of the consumer buying decision process, in order, are

problem recognition, information search, evaluation of alternatives, purchase, and postpurchase evaluation.

Sterling is a corn farmer. He sells his corn to stores such as Kroger. What type of competitive structure does Jerry most likely operate in?

pure competition

Marketers who view political forces as being beyond their control are taking a(n) ____ response toward these forces.

reactive

Mark is developing a market forecast. After reviewing years of sales, he noticed there seems to be a clear association between past sales and households with children. The more families with children locate to the area, the more sales seem to increase. Mark believes he can use this relationship and the information he has on households in the area to predict future sales. This is an example of what type of forecasting method?

regression analysis

Pointing out any deficiencies and the possible reasons for them should be done in the ____ step of the marketing research process.

reporting research findings

The final step in the marketing research process is

reporting the research findings

An overall plan for obtaining the information needed to address a research problem or issue is called the

research design

Which of the following products is most likely to be marketed using an undifferentiated approach?

seasoning salt

Characteristics of individuals, groups, or organizations that are used for dividing a total market into smaller homogeneous groups are called ____ variables.

segmentation

The process of dividing a total market into market groups because people within each group have relatively similar product needs is called

segmentation

The objective of sampling in marketing research is to

select representative units from a total population

Alberto loves Chipotle Mexican Grill. He views it as being socially responsible and loves the food. The other day he read in the paper that several people got sick from E. coli from Chipotle Mexican Grill restaurants. The article also detailed safety measures Chipotle was instituting to prevent this from happening again. Alberto would expect nothing less from Chipotle. He feels confident that Chipotle will institute highly effective safety measures. This is most likely an example of

selective retension

Marketers help consumers learn through free samples, sometimes coupled with coupons, to reduce purchase risk, through a practice called

shaping

Based on the work by the Boston Consulting Group, products with a dominant share of the market and good prospects for growth are

stars

Within a business organization, a profit center that is self-supporting in terms of sales, markets, production, and other resources is known as a

strategic business unit

Which of the following is the most appropriate for qualitative research projects for a small targeted group?

telephone depth interview

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

consumerism is

the efforts of independent individuals, groups, and organizations to protect the rights of consumers.

Relying on executive judgment for forecasting may be adequate when

the executive has considerable experience and product demand is relatively stable.

Marketing research is best defined as

the systematic design, collection, interpretation, and reporting of information to help marketers solve specific marketing problems or take advantage of market opportunities.