EXAM 1
By allowing consumers to sell their unwanted goods to other consumers, auction sites like eBay, Poshmark, and Mercari cater to ________ marketing.
C2C
________ allow marketers to analyze data from content sites like Facebook, Twitter, online blogs, and reviews to collect consumer comments about companies and their products.
Sentiment analysis
One example of a customer loyalty program is
a "frequent diner" card at a restaurant, offering a free appetizer for every $100 in food purchases.
For some products, marketers can combine education level with other data like occupation and income to obtain
accurate predictions of purchase behavior.
Which of the following is a pricing model for apps discussed in your text?
ad-supported
In the ethical decision-making metric, the question that asks, "Would I want the person I admire most to see me doing this?" applies to the
admired observer test.
Marketers in the United States are paying increasing attention to ethnic groups because
approximately 80 percent of all population growth in the next 20 years is expected to come from minority groups.
When integrating conscious marketing into a marketing strategy, a key task is to ensure that all managers are evaluated on their actions from a conscious marketing perspective. This action would take place during which stage of the strategic marketing planning process?
control phase
Cookie Cutter, a firm that manufactures high-end mixers, donates $10 per mixer sold to a local food bank. This is a form of
corporate social responsibility.
As it pertains to the marketing plan, understanding the causes of performance, regardless of whether that performance exceeded, met, or fell below the firm's goals
enables firms to make appropriate adjustments.
The goal of customer relationship management is to
identify and build loyalty among a firm's most valued customers.
Gerard has just purchased a beer distributorship. He wants to increase the visibility of his firm in local markets, but he knows there are a number of regulations and socially accepted practices associated with promoting alcoholic beverages. The first thing Gerard should do is to
identify issues that need to be addressed.
Anders picks up the local newspaper and reads a stinging letter to the editor criticizing his beverage company for supporting a sporting event for children with disabilities. The letter writer is critical of a banner displayed at the event with the logos of alcoholic beverages and Anders' company name. Anders never considered that this problem might arise. His company failed to
identify issues.
The persistent increase in the prices of goods and services is known as
inflation
Which element of the marketing mix is most relevant to the activity "capturing value"?
price
Which element of the marketing mix is most relevant to the activity "creating value"?
product
An entertaining post likely spreads further than a basic, informational one. This factor contributes to
reach
Some discount stores put products in large bins and let consumers hunt and find bargains. The price these consumers pay includes
the value of their time and energy.
What is the most basic corporate social responsibility to employees?
to ensure a safe working environment
How might a technology company like Apple ensure that it behaves in a socially responsible way toward its employees?
It can ensure that pay practices are fair at all levels of the company.
Customer retention programs are based on what concept?
Customer relationships should be viewed from a lifetime value perspective rather than on a transaction-by-transaction basis.
Which of the following statements regarding corporate social responsibility is true?
It sees limited overlap between the business and society, and between business and the planet.
Macroenvironmental factors include culture, demographics, social trends, and the
Macroenvironmental factors include culture, demographics, social trends, and the
________ involves the process of defining the marketing mix variables so that target customers have a clear, distinctive, desirable understanding of what the product does or represents in comparison with competing products.
Market positioning
If 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, which of the following would be true?
Mexican products would be more expensive, while U.S.-made products would become comparatively less expensive.
Marketers are more likely to find higher concentrations of foreign-born Americans and recent immigrants in
New York, Los Angeles, San Francisco, and Chicago.
In 2016, in response to the threats of climate change, the United Nations rectified the
Paris Accord.
________ represents all the activities necessary to get the product to the right customer when that customer wants it.
Place
Imagine the use (or misuse) of data collected from consumers by a marketing research firm. One of the issues that might arise is the way the data are collected. At what step in the framework for ethical decision making would this issue be identified by the marketing research firm?
Step 1—identifying issues
Which of the following statements about marketing metrics is true?
They assist in comparing results among SBUs.
To promote their greener practices, nearly 60 private-sector companies have partnered with the ________, which seeks to reduce the deforestation caused by the production of many consumer products that rely on palm oil, soy, tree pulp, and paper.
Tropical Forest Alliance
Which of the following statements accurately describes the current income distribution in the United States?
Wealthy households are outpacing both poor and middle-class households.
When Volkswagen owners began to report problems with rear coil springs, Volkswagen at first ignored or rejected the claims. Eventually, the company evaluated the issue and issued a recall. Which of the four steps of the ethical decision-making framework was Volkswagen performing when it recalled several of its models?
choose a course of action
The process of value ________, in which customers collaborate in product design, often provides additional value to the firm's customers.
cocreation
Which of the following is a traditional contextual element of website design?
color
The principle that decisions be ethically based is part of the concept of
conscious marketing.
Every year, General Mills issues a report discussing how the firm has performed against its own standards of conscious marketing. This report is part of General Mills' ________ phase of its strategic marketing planning process.
control
The four Ps make up the marketing mix, which is the __________ set of decisions or activities that the firm uses to respond to the wants of its target markets.
controllable
American Express Open Forum site invites business experts to share their wisdom in various posts. This is an example of what type of blog?
corporate blog
Astute marketers recognize that the increasing disparity of income between upper- and lower-income groups
creates opportunities to provide value to each group.
Marketing involves conducting exchanges, satisfying customer needs and wants, and
creating value.
Disney's My Magic system, which enables visitors to swipe their Magic Band wristbands to get on rides, make purchases, and open their hotel room door, is an example of ________ excellence.
customer
When Maria, the keynote speaker at a major business leaders' conference, arrived in the middle of the night at the Ritz-Carlton, she was exhausted, and her suit was wrinkled from her 10-hour plane trip. The night clerk found someone to dry clean Maria's suit and have it ready for her morning presentation. She has been a loyal Ritz-Carlton customer ever since. In this example, Ritz-Carlton demonstrated the macro strategy of
customer excellence.
A local hair salon keeps information on its customers regarding their preferences for certain products, companies, and services. The salon uses this information to inform the customers when new products arrive from their favorite companies and targets them with special promotions. In this way, the salon is using ________ to build loyalty among its customers.
customer relationship management
Eugene uses a database software system to remind him when his customers should be ready for their next lawn and/or garden service. With this reminder system, Eugene contacts his customers when they are most likely to be "in the buying mode." Eugene's system is part of
customer relationship management.
Sodexo is a corporation that manages school cafeterias, university dining halls, mess halls at military bases, concession stands at sports arenas, and other large-scale food service facilities. If Sodexo were to begin to sell individual frozen meals in supermarkets, it would be pursuing a ________ growth strategy.
diversification
According to one definition, CSR can be described as context-specific actions and policies, taking stakeholders' expectations into account, to achieve what is referred to as the triple bottom line. The triple bottom line includes ________ performance.
economic, social, and environmental
A firm's macroenvironment includes
economics
When Kimberly-Clark introduced rolls of toilet paper without the cardboard core, what social trend did this product respond to?
green marketing
One measure of traffic from visitors on sites, the total requests for a page, is measured in units called
hits
Justine offers design and consulting services on a fee-only basis. She has found that different customers are willing to pay different rates for her services. This shows that her pricing decisions should depend primarily on
how different customers perceive the value of her services.
Lamar owns four delis in the suburbs of Chicago, Illinois. 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 most likely involve determining
how to allocate resources among his four stores.
During which step of the marketing planning process does a firm engage in segmentation, targeting, and positioning?
identify and evaluate opportunities phase
A regional manager at Sally's Beauty Supply, a chain of retail stores selling hair and beauty products, is reviewing sales data after a recent in-store promotion. The data show success in some stores and limited response in others. To understand the differences between stores, the manager will probably next review the company's
implementation programs, to see if the promotion was handled consistently in the different stores.
When considering income as a demographic variable affecting marketing efforts, marketers need to recognize that
income in the United States has become more unevenly distributed.
Laws that prohibit the formation of monopolies or alliances that would damage a competitive marketplace benefit consumers through
increased choices.
Firms that hire (or encourage) well-known names to promote brand messages to their networks of followers are using
influencer marketing.
Hunter Corporation's mission statement
is a broad description of a firm's objectives and the scope of activities it plans to undertake.
Many marketing students initially overlook the importance of marketing channel management because
many of these activities take place behind the scenes.
To determine how attractive a particular market is using the BCG portfolio analysis, ________ is(are) established as the vertical axis.
market growth rate
Which of the following growth strategies employs the existing marketing mix and focuses the firm's efforts on existing customers?
market penetration
Which of the following is one of the four major growth strategies marketers typically utilize?
market penetration
The primary purpose of the ________ plan is to specify the marketing activities for a specific period of time.
marketing
The Mayo Clinic in Minnesota is known for top-quality medical care. For decades, even presidents and dictators from around the world flew to the Mayo Clinic to utilize its services. The Mayo Clinic used its reputation to create additional medical facilities in Jacksonville, Florida, and elsewhere. This is an example of a firm focusing its efforts on satisfying customer needs that
match its core competencies.
The most loyal customers use
multiple channels.
For U.S. businesses with strong export capabilities, expansion of U.S. trade agreements with other countries creates
opportunities
Roderick is charged with assessing his company's external environment as part of a SWOT analysis. Roderick will study her company's
opportunities and threats.
Value-oriented marketers constantly measure
perceived customer benefits against the costs of their offerings.
Effective promotion enhances a product or service's
perceived value.
Gracie loves to read and write. She started a blog about young adult books, including writing hints and book reviews. The readership of her blog gradually increased, and eventually publishers started sending her new books, hoping she would review them. Over time, Gracie's blog has changed from a __________ blog to a __________ blog.
personal; professional
Creative locations, such as kiosks at the baggage claim in airports or small booths in grocery stores, represent Starbucks' effort to improve its offering on which dimension of the marketing mix?
place
In recent years, cellular (mobile) service providers have worked hard to eliminate "dead zones," providing customers with service wherever they traveled. By working to make the network available in more locations, cellular service companies were focusing on ________ value creation.
place
Delta Airlines is among the companies experimenting with selling products and services on their Facebook pages. The idea is to make purchasing even easier for customers who may spend large portions of the day with Facebook active on their computers or mobile devices. There is no need even to navigate to Delta's website—users can book a trip in Delta's "Ticket Agent" application without ever leaving Facebook. Which element of the marketing mix does this represent?
place and value delivery
What type of analysis does management use to evaluate the firm's various products and businesses and allocate resources according to which products are expected to be the most profitable for the firm in the future?
portfolio analysis
Starbucks carefully crafts its offerings and advertising message, and it strategically sets prices and selects locations to appeal to its target market. These efforts represent Starbucks'
positioning strategy.
Vikram opened a shoe store and signed a lease on the property. He also signed an agreement with the manufacturer on the amount of merchandise he will sell and the promotions he will conduct. Based on this description, which aspect of the marketing mix does he still need to work on?
price
Tandy's Styles involves its customers in the process of developing new products. In this way, it can benefit from current customers' insights and develop new products that will meet these customers' needs. Tandy's is pursuing a ________ growth strategy.
product development
Mario works for a small computer software company. His boss is constantly improving the company's products but neglects customers, billing, and promoting the company. Mario's boss is probably stuck in the ________ era of marketing.
production-oriented
Google and other search engines allow marketers to bid to have their ads shown when consumers search keywords related to the firm's products. These marketers are attempting to create value through
promotion
Marketing has traditionally been divided into a set of four interrelated decisions known as the marketing mix, or four Ps, including product, place, price, and
promotion
When the publisher of the well-known Berenstain Bears books wanted to celebrate the 50th anniversary of the series, it initiated a $150,000 campaign. Which of the four Ps does this campaign represent?
promotion
The shift of population from the Rust Belt in the North to the Sun Belt in the South and Southwest will likely
reduce regional cultural differences.
Binder & Sons is considering buying out a competing firm and closing most of the competitor's factories. 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 evaluating alternatives. Management reviewed and refined the alternatives, and then chose a course of action. If the managers are not confident about the decision, they should
reexamine their alternatives.
Political candidates are notorious for appealing to the different beliefs and values of groups of potential voters in different areas of the country. These politicians are appealing to differences in
regional culture.
Near the end of the model year, the Like New automobile dealership had an unusually high inventory level. The manager increased her advertising spending and gave extra incentives to its salespeople. Like New operates as if it were in the ________ era.
sales-oriented
Cliff sells construction equipment. Whenever he calls on his building contractor customers, he asks if they are having any problems. In doing so, Cliff is addressing which of the following core aspects of marketing?
satisfying customer needs and wants
As owner of a retail franchise food store, Elena purchases supplies based on specials advertised nationally throughout the franchise system. One Monday, she was surprised to find customers asking for specials she hadn't been informed of in advance. The franchise company failed to live up to the value-driven activity of
sharing information across the organization.
For years, when considering new products, marketers at Bennett's Coffee and Tea asked themselves, "What would Kelsey think?" Kelsey was a fictional character representing 25- to 50-year-old educated, upper-income women who rarely watched television but did a lot of reading. "Kelsey" represented Bennett's primary
target market segment.
Alan is analyzing potential market segments. He should carefully seek potential customers who have both an interest in his products and
the ability to buy them.
The center of all marketing efforts is
the customer
Marketing ethics is concerned with
the sale of products or services that may damage the environment.
Apps like calendars, trip planners, and flight trackers help consumers fulfill which primary motivation?
to prepare
Generally, to build a sustainable competitive advantage, companies should
use multiple approaches to solidify their position.
Dana has just started with a travel agency, and she has been offering clients and prospective clients a range of packaged tours. She is concerned because the commissions she is earning on her sales are lower than she had hoped. Her colleague Scott, who has been with the agency for several years, is having a great deal of success by working closely with the clients, seeking their ideas, and building customized tour packages for each one based on their suggestions. Scott's approach is based on
value cocreation.
According to your text, the wealthiest 10 percent of the population control approximately what percentage of Americans' total net worth?
76 percent
Which of the following factors, listed in a situation analysis for a major U.S. auto manufacturer, is the best example of a threat?
A New York law firm has filed a $10 million class action suit against the company on behalf of car owners whose gas tanks exploded.
Leticia, a marketing executive who was born in 1955, advocated that her company focus on a print campaign for its new line of lipsticks rather than spending money on online ads. This point of view may be attributed to the fact that she is a member of which generational cohort?
Baby Boomer
Which generation's members are also known as Millennials?
Gen Y
