Final Exam Principle's of Marketing

48. The 80/20 rule is a theory that suggests that

20 percent of heavy users account for 80 percent of the total demand

7. Firms that market the same product to multiple regions with different preferences may need to tweak the product to ensure that it meets a need unique to each segment. This represents what type of targeting strategy?

A differentiated marketing strategy

38. An experiment that is performed in a natural setting, like a mall or someone's home is called

A field experiment

35. Compare the following to determine the best example of a high-involvement product purchase.

A new car

11. The specific combination of goods, services, or ideas that a firm offers to its target market is referred to as

A product

23. In marketing terms, the care you receive when you visit your family doctor is an example of

A service

6. A product that uses less energy to operate or can by recycled when the consumer is finished using it, it said to have

A sustainable design

28. Compare each of the following to determine which one accurately describes a joint venture.

An arrangement where a domestic firm partners with a foreign company to create a new entity, thus allowing the domestic firm to enter the foreign company's market

49. The activity of buyers and sellers trading things of value so that each is better off as a result is referred to as

An exchange

34. Which of the following is the correct definition of inflation?

An increase in the general level of prices of products in an economy over a period of time

24. Which of the following trends is accurate regarding the future of marketing?

As technology impacts the business world, firms will need to explore new models that address what customers want and how they prefer to receive information.

36. Which of the following is not one of the ethical norms spelled out in the AMA's Code of Ethics?

Balance

30. Which term describes both the growth in information that inundates businesses each day and the complex tools used to analyze the data and derive meaningful insight?

Big Data

12. Direct competition is also known as

Brand Competition

14. An advantage to using a perceptional map is that it

Can highlight potential market positions that might be underserved

37. The Fantastically Fit health club has just opened a new location in your neighborhood. The club has mailed a flyer to all households in the area that contains information about the club and a coupon for a one-month free membership. In doing so, Fantastically Fit is attempting to ______ value.

Communicate

7. On a personal level, as you begin looking for a job after you graduate, it will be critical for you to know how to

Communicate Value

20. Which of the following is not considered to be a demographic characteristic?

Consumer Confidence

2. The road set of knowledge, beliefs, laws, morals, customs, and any other capabilities or habits acquired by humans as members of society is referred to as

Culture

25. Which of the following would be considered secondary data for research on how to improve the sales of an existing product?

Data from the Census Bureau website

10. Having an efficient supply chain is directly related to which element of value?

Delivering Value

45. Which of the following is not one of the broad segmentation bases outlined in your text that can be used to segment a market?

Demand

30. Which method of entering a foreign market carries with it the most risk?

Direct Ownership

6. When a big name retailer decides to open a manufacturing plant overseas, this is an example of

Direct Ownership

13. Review the following statements to determine which one is not accurate regarding the direct ownership method of entering a foreign market

Direct ownership does not allow the firm much control over its intellectual property.

16. Dr. Paul Ekman's work with facial expressions led to the identifications of seven basic emotions: joy, surprise, sadness, anger, fear, contempt, and

Disgust

29. Marketers are particularly interested in targeting baby boomers because they typically possess which two things that marketing professionals seek?

Disposable income and free time.

17. The people that an individual would not like to be like make up his or her

Dissociative Reference Group

47. If Geico Insurance began selling t-shirts featuring its infamous gecko to a different population of customers in an effort to try to capitalize on its brand name, this would be an example of

Diversification

47. What type of adopter is typically well respected by their peers and sought by marketers because they tend to be opinion leaders who are willing to talk to other people about their experiences with their purchases?

Early adopter

4. A sudden drop in the average consumer income would be an example of which external force affecting the marketing environment?

Economic

2. Monitoring developments outside of the firm's control with the goal of detecting & responding to threats & opportunities is called

Environmental Scanning

46. Which type of research seeks to discover new insights that will help the firm better understand the problem or consumer thoughts, needs, and behavior?

Exploratory

5. According to the text, perhaps the most common mistake a firm makes when conducting a SWOT analysis is

Failing to separate internal issues and external issues

27. The consumer protection agency for the United States is the

Federal Trade Commission

41. For a fee, Hadad can open a Subway shop in his hometown of Beirut. The parent company has agreed to let Hadad use its company name and will give him marketing and operational support. What type of arrangement is this?

Franchising

29. Which of the following is a demographic segmentation variable?

Gender

40. Which ethic group population in the United States is expected to almost double by the year 2050?

Hispanics

40. People who are similar to one another usually have many of the same needs, likes, and dislikes, and this similarity helps products to be adopted more readily. This refers to which characteristic regarding product adoption?

Homiphily

16. What information does a break-even analysis provide for a firm?

How much the company needs to sell to cover its expenses

13. In what stage of the new-product development process would organizations use social media to evaluate potential new products?

Idea Screening

50. The controls section of the marketing plan should contain which of the following?

Implementation, organizational structure, and contingency planning

41. The perception process begins when a consumer

Is exposed to either an internal or external stimulus

37. From a marketing standpoint, which group of product adopters should marketers spend the least amount of time and effort in convincing them to buy a product?

Laggards

24. A person's typical way of life as expressed by his or her activities, interests, and opinions is referred to as

Lifestyle

21. Which marketing strategy would Krispy Kreme doughnuts be using if it decided to begin selling its doughnuts in Mexico for the first time?

Market Development

27. It has been Shelly's dream to open a bakery, and while she has experience in making all types of baked goods, she always gets rave reviews for her hand-decorated cupcakes. So, rather than open a bakery that offers a wide variety of baked goods, Shelly has decided to open a specialty cupcake shop to cater to that market only. This is an example of:

Market Segmentation

18. Market segmentation produces relatively homogenous groups of consumers called

Market Segments

32. What two elements are combined on the BCG matrix to produce its four unique product categories?

Market growth and relative market share.

11. Daryl recently took a marketing job with a new firm. His first order of business is to find out how his new company performs relative to its competitors. Which of the following would Daryl use to do this?

Market share analysis

26. What stage of the product life cycle is characterized by a full line of products, an intensive effort to maintain distribution, and product price equal or below that of competitors?

Maturity

8. In which stage of the product life cycle are promotional strategies geared toward reminding consumers about the product and its value to them?

Maturity

31. When it comes to criteria for segmenting markets, it is important that the size and purchasing power of a market segment should be clearly identified. In other words, it should be

Measurable

42. In marketing, states of felt deprivation are referred to as

Needs

43. In what stage of the new-product development process would a company use a SWOT analysis and environmental scanning to determine where new products may be a help to strengthen the firm's marketing position?

New-product strategy development

8. Compare the following statements to determine which one accurately depicts how income is distributed across the US population.

Over the past several decades, income for the highest wage earners grew at a much quicker pace than for households in the bottom wage earning bracket.

12. The set of distinctive characteristics that lead an individual to respond in a consistent way to certain situations is referred to as the individual's

Personality

28. Cognitive dissonance occurs during which stage of the consumer decision-making process?

Postpurchase process

9. The first stage in the consumer decision-making process is

Problem Recognition

23. According to your text, any discussion of the marketing mix typically begins with which of the four P's?

Product

19. Udi's Gluten Free sells bread, bagels, cookies, pizza crust, and other products that are gluten free. The combination of all the products that Udi's Gluten Free sells is referred to as its

Product Mix

46. Indirect competition occurs when

Products provide alternate solutions to the same market

33. Which of the following accurately describes new-category entries?

Products that are new to a company but not new to the marketplace

18. According to the BCG Matrix, what defines a cash cow?

Products that have a large market share in an industry with low growth rates

1. Which of the following is not a criteria for segmenting markets:

Promotable

39. Which element of the marketing mix details how the organization will communicate the value of its product?

Promotion

45. The owners of Have It Your Way Hot Dogs have decided to place an advertisement in the local minor league baseball team's program booklet. Which element of the marketing mix does this represent?

Promotion

The activities that an organization uses to reach its target market such as advertising, personal selling and public relations are all a part of the marketing mix element known as

Promotion

34. Which of the following is not one of the need levels in Maslow's hierarchy of needs?

Psychological

10. Review the following and choose the one that is NOT a characteristic of an interview

Quantitative Method

22. Today's environmental conscious society has caused packaging manufacturers to rethink their products. Now many packages are made of recycled or recyclable material. This is an example of

Re positioning

39. Warren opened a new computer store in town. When customers purchase a computer from his store, they automatically receive and extended warranty, free in-home installation, access to Warren's 24-hour technical support team, and in-store training classes. BY offering all these things, Warren is most likely trying to

Reduce a new customer's cognitive dissonance

43. The measure of a firm's effectiveness in using the resources allocated to its marketing effort is called

Return on marketing analysis

49. A product that has new packaging, different features and update designs and functions is a

Revameped product

3. What measure allows marketers to analyze the success of specific products & regions to pinpoint what is working & what is not?

Revenue Analysis

36. Which tool would allow a manager to estimate how much of a product will sell in a three-month period?

Sales Forecasting

9. What 2 forecasts are used in a break-even analysis?

Sales and expense

35. According to your text, what three elements should be contained within a company's financial projections?

Sales forecast, expense forecast, and break-even analysis

17. Which marketing strategy was especially important during the Great Depression when consumers did not have much money and firms competed intensely for their dollars?

Sales orientation

38. Which of the following best describes a market development strategy?

Selling existing products to new markets

50. Bart wanted to know how often freshman boys at his school drank alcohol, but he couldn't survey every one of them. Bart decided that in order to give all freshman boys and equal chance of being selected to participate in his mini-study, he would visit the dorms at dinnertime and ask them to choose numbers out of a hat. The ones with the number 5 were given a quick three-questions survey. Bart is demonstrating

Simple random sampling

15. If a firm builds a mock shopping experience for participants to observe their response to marketing stimulus this is referred to as a

Simulated test market

15. Your text defines ethics as moral standards expected by

Society

19. The external marketing factor that refers to the combination of social and cultural factors that affect individual development is

Socioculture

21. According to the text, the marketing research report should allow the marketing manager to

Solve the marketing problem

22. Read the following statements regarding strategic planning to determine which is not accurate.

Strategic Planning is a one-time process completed when a firm outlines its objectives

3. Nick is summarizing his research findings and writing a report to share with his team. What step in the marketing research process is Nick in?

Taking Action

42. After Carson opened up his new sports bar/restaurant, he determined that students from the nearby college campus will provide him with the best opportunity to maximize sales, so he is concentrating his marketing efforts on this group which will be his

Target market

4. A company that is introducing a new product in its final form to a geographically limited market to see how well the product sells and to get reactions from potential uses is engaged in

Test Marketing

20. Which of the following is the focal point of all marketing efforts?

The buying decision

44. A consumer searching for information will create a list of brands or products that he or she will evaluate as options for the solution of a particular problem. This list is referred to as

The evoked set

26. As it pertains to a situation analysis, the term market refers to

The group of consumers that are interested in and able to buy a particular product.

48. What primary strategic planning tool is used for directing and coordinating the marketing effort and help to guide the firm's marketing strategy?

The marketing plan

31. Marketing is defined as

The process of creating, communicating, and delivering value to customers and managing those relationships in ways that benefit the organization and its employees, customers, investors, and society as a whole.

5. When marketers segment based on psychographics, the market is divided into groups according to

The reason why the consumer made the purchase

25. What element of the marketing plan helps firms understand where they are currently and how to best move forward

The situation analysis

32. Compare the following definitions and select the one that accurately describes consumer behavior.

The study of how individuals make decisions about how to select, secure, use, and dispose of products to satisfy needs.

14. A firm that is engaged in environmental scanning is monitoring developments outside of the firm's control in order to detect and respond to

Threats and opportunities

44. What is the overall purpose of the marketing plan?

To guide the analysis, implementation, and control of the firm's marketing strategy

33. Compare the following statements to determine which one best reflects the thinking behind the sales orientation era of marketing?

We'd better persuade our customers to buy our products or they will buy from our competitors.