Marketing EXAM 1
name the 4 reasons given for the state of the perceived negative ethical business conduct
1. increased pressure on businesspeople to make decisions in a diversified value system 2. growing tendency for business decisions to be judged publicly 3. public's expectations of ethical business behavior has increased 4. ethical business conduct may have declined
Match the following Marketing Philosophy with the appropriate focus question 1. how can we sell more aggressively 2. what can we make or do best 3. need and how can we benefit society 4. what do customers want and need
1. sales orientation 2. product orientation 3. societal orientation 4. marketing orientation
Which of the following statements accurately distinguishes between laws and ethics?
Ethics deal with personal and moral principles whereas laws are society's values and are enforceable in the courts.
for every consumer who purchases a pair of TOMS shoes for $55, the company gives a pair this is an example of _______
CSR - corporate social responsibility
there are many external factors that affect the marketing environment. they include all of the following except which? a. the marketing mix b. technology c. political d social changes
a. the marketing mix
There are two facets of marketing. One of these facets is that it is:
an approach that focuses on customer satisfaction
the _______ statement answers the question, "what business are we in, and where are we going?"
business mission
the global athletic footwear market is expected to experience only very slow growth over the next several years. nike is the market leader. according to boston consulting group portfolio analysis, which quadrant would define nike's athletic footwear product line?
cash cow
BCG portfolio analysis, products in low-growth markets; excess funds to support other products
cash cows
the practice of choosing goods and services that meet one's diverse needs and interests rather than conforming to a single traditional lifestyle is know as ________ lifestyle
component
when companies embrace ______ they appeal not only to their shareholders but also key stakeholders
conscious marketing
when companies embrace _________, they appeal not only to their shareholders but also to all of their key stakeholders
conscious marketing
the center of all marketing efforts is
consumers
During the __________ phase of the strategic marketing planning process, marketers utilize systems to check whether each potential ethical issue raised in earlier phases was addressed.
control
_______________ __________________ ____________________ voluntary actions taken by a company to address the ethical, social, and environmental impacts of its business operations and the concerns of its stakeholders.
corporate social responsibility
astute marketers know the increasing disparity of income between upper and lower income groups
creates opportunities to provide value to each group
A producer of replacement knee and hips directs a lot of their marketing efforts toward those living in aging populated areas, such as the southwestern parts of the U.S. Which of the following best explains its success in this strategy?
demography
Ironically, while the leaders of Enron Corporation were manipulating the company's finances for their personal benefit, the company was a major donor to Houston area charities. Enron had unethical business practices, but was also
demonstrating corporate social responsibility
A school board is concerned about deteriorating school facilities, combined with a shrinking budget. The board began by studying the issue, and then identified parents, children, teachers, staff, and taxpayers as groups who have a vested interest in the problem. The school board has listened to each group's concerns. In the ethical decision-making framework, its next action should be to
engage in brainstorming alternatives
Beth has been asked to approve a marketing campaign that, although not illegal, promotes food products to children. She is concerned that the food products are not particularly nutritious, although they are not as bad for children as some others sold by competitors. By using the ethical decision-making metric, Beth will
evaluate the alternative using a series of questions.
A contractor agreed to complete a job in one week and collected a 50 percent deposit, but never showed up to do the job. The same contractor then donated $10,000 to a local cancer research center. The contractor would be not be considered socially responsible. T/F
false
Ethos Water donates 2 percent of its profits to children in need of clean water. This action demonstrates that Ethos Water is a firm with a strong ethical climate. T/F
false
Tipco Computer Company decided to market its tablet computers to preschoolers, even though the tablets were better suited for much older children. This potentially unethical activity takes place during the control phase of the strategic marketing planning process. True/False
false
in the immediate environment, the competition has effect on consumers (t/f)
false
macroenvrionmental factors include the company, competition, and corporate partners (t/f)
false
sales-oriented firms sell to specific people; market-oriented sell to everybody
false
the company's objective is to increase sales next year. this is an example of a well-stated objective (t/f)
false
the components of a SWOT analysis are strengths, weaknesses, opportunities and tactics
false
to provide greater value than competitors, ryan's firm must look at everything it does
from a consumer's point of view
which of the following is true regarding modern gender roles
gender roles have been blurred in the past several years
Redefining the business mission of a mattress manufacturer as "a good night's sleep" rather than stating the mission as "the manufacture of highquality mattresses" will:
help ensure the firm retains its focus on consumers
Heineken 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 Heineken's company name. Heineken never considered that this problem might arise. In the framework for ethical decision making, Heineken's company failed to
identify issues
Avery 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. According to the framework for ethical decision making, the first thing Avery should do is to
identify issues that need to be addressed
measure of the decrease in the value of $, expressed as % reduction in value since previous year is the definition of ______
inflation
a competitive advantage based on location is often sustainable because
it is not easily duplicated
pure competition
large number of sellers, distribution is important
monopolistic competition
large number of sellers, pricing is important
monopolistic competition environment is
large number of sellers, pricing is important
After major hurricanes like Harvey, many ethical home repair and building supply businesses continue to charge pre-hurricane prices to their customers, even though due to the huge increase in demand they could charge much more. These firms probably recognize that
lifetime profitability of relationships matters more than profits from a particular transaction.
ty is trying to determine how to offer classes students need at the times when they need them
managing the supply chain
Barney's Bean Bags assumes that a sale does not depend on an aggressive sales force but rather on a customer's decision to purchase a product. This would be an example of which marketing management philosophy?
market
Many organizations use customer relationship software that allows the service representative to determine products that the customer is using. In doing so, the service representatives can offer promotions for said products. Which kind of growth strategy is being used in this scenario?
market penetration
organizations use CRM software allowing service reps to offer services to customers. what type of growth strategy is this
market penetration
retailers focus on what consumers wanted before attempting to sell products
market-oriented
the ethical decision-makign framework includes all of the following steps except
marketing ethical issues
an organization voluntary recalls a significant portion of its product because of fear that there is a small chance that one or more of their customers could be injured. this reflects which of the moral philosophies
moral idealism
For many years, southwest airlines distinguished itself as the low-cost airline. Now, many other low-cost competitors have entered the market. Similarly, Southwest was one of the first airlines to offer online ticketing. Now, all airlines have online ticketing. These examples suggest that
no single strategy is likely to be sufficient to build a sustainable competitive advantage
increasing gas prices would represent a potential _______ for manufacturers of electric cars
opportunity
Coca-Cola vending machines are found all over the world. The newest machines have an interactive screen that runs advertisements and allows users to obtain free photos of themselves and ringtones after they have bought a drink. The reason for the introduction of this new style of vending machine is to "allow the company to interact more directly with its customers." According to a SWOT analysis, the technology used by these machines is an example of a(n):
opportunity because it is part of Coca-Cola's external environment
value-oriented marketers constantly measure
perceived customer benefits against the costs of offerings
Which element of the marketing mix deals with supply chain management?
place
which element of the marketing mix is most relevant to the activity "delivering value"
place
ethical development can be thought as having three levels. the most mature level is the ________ stage
post conventional morality
which element of the marketing mix is most relevant to the activity "capturing value"
price
SA seeks to differentiate thru innovative design/amenities. SA is pursuing what type of macro strategy?
product excellence
Sandpiper Air seeks to differentiate itself from competing airlines, in part through innovative design and in-flight amenities available. Sandpiper Air is pursuing a(n) __________ macro strategy.
product excellence
in most companies, portfolio management is typically done at the SBU or ______ level of the firm
product line
lisa is using BCG sales of the product/overall market as well as the sales of competitors to find ________
product's relative market share
Apple manufactures and markets various hardware and software assuming that a market exists for their products. This is an example of a(n) _________________ orientation.
production
apple manufacturers and markets various products assuming that a market exits is ________ orientation
production orientation
___________________marketing is a strategy that focuses on keeping and improving relationships with customers.
relationship
At www.mystarbucksidea.com, customers are encouraged to share their ideas and thoughts about how Starbucks can better serve its customers. Starbucks customers told management that they wanted to be recognized for choosing Starbucks coffee. So Starbucks instituted the My Starbucks Reward program with money-saving benefits to their Starbuck cardholders. This program is practicing:
relationship marketing
after conducting STP analysis and developing strategies for each of the four P's, the organization now has to make _______ decisions
resource allocation
The ______ era, firms had excess capacity, used personal selling/advertising to generate customers
sales-oriented
Dwight sells office supplies. Whenever he calls on his customers, he asks if they are having any problems. In doing so, Dwight is addressing which of the following core aspects of marketing?
satisfying customer needs and wants
which of the following is not one of the 4 major growth strategies marketers typically utilize
segment development
when discussing the marketing planning process, STP stands for
segmentation, targeting and positioning
monopoly
single producer; marketing unimportant
when Walmart issued new standards for livestock products that were raised on good without antibiotics or artificial growth hormones, it considered multiple______ including the ranchers that supply the food, its customers, and animal welfare groups
stakeholders
Proctor and Gamble has hundreds of brands from razors to weight loss medication. each has a distinct mission, control over its resources, and plans independently of the other brands of P&G. each division would be an example of a
strategic business unit
an advantage that cannot be copied by the competition is called a _________ competitive advantage
sustainable
apple music has an ______ as they have exclusive agreements with some of the most sought after music corporations that other digital music stores do not have
sustainable competitive advantage
lisa is using the boston consulting group approach to portfolio analysis to assess the strength in a particular market and is looking at the sales of the product and the overall market as well as the sales of competitors. from his analysis, lisa should be able to determine:
the product's relative market share
when referring to "exchange" marketers are focusing on
the trading of things of value
if callahan auto decides to shut down their brake pad division, this would be a ______ for ford motor company, who uses these brake pads in their automobile production
threat
3 elements of consumer's immediate environment are company, competition and corporate partners
true
Ethical issues are likely to arise at each stage of the strategic marketing planning process. T/F
true
Marketers cannot control the external environment in which their organizations operate. (t/f)
true
Matt, who lives in Boston, refers to Pepsi as "soda," while Paul, who lives in Chicago, calls it "pop." This is an example of a regional culture difference. T/F
true
ethical issues are likely to arise at each stage of the strategic marketing planning process
true
short-term profit decisions can cause firms to lose customers in the long run
true
the members of generation z are also referred to as digital natives (t/f)
true
understanding a customer's needs and wants is fundamental to marketing success
true
a firm's microenvironment includes all of the following except a. competition b. culture c. demographics d. political/legal issues
a. competition
If a company uses a sales orientation, consumer complaints would most likely result in continuous market research. (t/F)
FALSE
If a firm embraces a sales-oriented philosophy, the organizations spends most of their resources on what the customer wants and needs. (t/f)
FALSE
an example of market penetration occurs when a supermarket adds a new store (t/f)
FALSE
the hukilau cafe is a popular restaurant for tourist in Hawaii. in a SWOT analysis for hukilau, the possibility that a recession might cut back on tourism in hawaii would be considered a weakness (t/f)
FALSE
Eclipse's MP3 player product line has a low relative market share. The MP3 player market is expected to decline over the next few years. In the Boston Consulting Group (BCG) portfolio analysis, the Eclipse MP3 player would be considered a dog. (t/f)
TRUE
Firms become value driven, in part, by sharing information about their customers and competitors across their own organization and other firms. (t/f)
TRUE
Organizations adopting a production orientation can be successful if certain conditions are present. One of these conditions is that demand for the organization's product exceeds supply for that product. (t/f)
TRUE
berkshire hathaway inc, a large property insurance company, owns a large chain of jewelry stores and has recently purchased Russell corporation, a manufacturer of sporting goods. Berkshire Hathaway uses a diversification strategy (t/f)
TRUE
viewing customers with a lifetime value perspective, rather than on a transaction-by-transaction basis, is key to modern customer retention programs (t/f)
TRUE
oligopoly
a few large competitors, promotion is important
which of the following actions, if it actually happened, would most likely support and enhance an operational excellence macro strategy? a. hy-vee lowering milk prices b. nike engaging with their customers to design their next product c. briggs and Stratton implementing new software to improve communications with its suppliers
c. briggs and Stratton implementing new software to improve communications with its suppliers
Which of the following suggests the reason different people have different ethical standards?
each individual is a product of his or her culture, upbringing and other influences
Recently a project team for Cosco, the world's largest children's products company, developed a high chair that could be used as an infant feeding seat, a youth chair, a play chair, a booster chair, and it could be reclined to make an infant bed. Its design could be made and sold for $49. Cosco rushed the chair into production to beat its competition before it was properly safety tested and when some children were injured as a result of this chair, Cosco denied culpability by saying that only a few consumers had had any trouble with the chair. These consumers had not read the instructions that came with the chair and had assembled it improperly. Cosco's actions exemplify which of the following philosophies?
utilitarianism
Customer___________ is defined as the relationship between benefits and the sacrifice necessary to obtain those benefits.
value
value is
what you get for what you give
a generational cohort is a group of people
who are of the same generation
