Marketing Management
Which of the following statements about clustering techniques for segmenting is true?
A variation of the clustering approach relies on customer relationship management. EXPLANATION:A variation of the clustering approach relies on customer relationship management (CRM), where the seller fine-tunes the marketing effort with information from a detailed customer database.
Segmenting and combining are two alternate approaches to developing market-oriented strategies. Which of the following statements concerning these approaches is true?
A combiner looks at various submarkets for similarities rather than differences. EXPLANATION:Combiners try to increase the size of their target market(s) by combining two or more segments and pleasing a relatively large group of people fairly well. They look at various submarkets for similarities rather than differences. Segmenters try to appeal to specific market segments using unique marketing mixes for each segment. They look for differences and aim to satisfy each segment very well.
Which of the following statements is true regarding General Electric's (GE) strategic planning grid?
GE may continue to support an existing yellow business but will probably reject a proposal for a new one, as yellow businesses are borderline cases. EXPLANATION:Yellow businesses are borderline cases—they can go either way. GE may continue to support an existing yellow business, but it will probably reject a proposal for a new one. It simply would not rate high enough on the relevant screening criteria.
Which of the following is true of a market-directed economy?
Macro-level decisions for the whole economy are based on the individual decisions of the economy's many producers and consumers. EXPLANATION: In a market-directed economy, the economy's macro-level decisions are determined by the individual decisions of the economy's producers and consumers.
Which of the following best describes marketing?
Marketing should guide production, accounting, and financial activities. EXPLANATION: Marketing should guide the activities of a firm's departments, but it should not take over these activities.
Which of the following statements about mass marketing is true?
Mass marketing assumes that everyone is basically the same. EXPLANATION:Mass marketing assumes that everyone is the same and considers everyone to be a potential customer.
With which of the four Ps of the marketing mix are retailers, wholesalers, warehouses, and transportation firms associated?
Place EXPLANATION:In the four Ps, "place" represents all the decisions involved in getting the right product to the target market's location. Place encompasses retailers, wholesalers, store locations, warehouses, and even transport companies.
As part of its plans for long-term success, a company that manufactures frozen dinners focuses specifically on making a profit while using sustainably farmed ingredients and compostable packaging that both employees and customers can feel good about. Which of the following best describes the guidelines this company is using to measure its long-term success?
a triple bottom line EXPLANATION: This company is using a triple bottom line, which means looking at the firm's economic, social, and environmental outcomes, to measure its long-term success.
According to the continuum of environmental sensitivity, which of the following products would be least risky to introduce in a foreign market?
an industrial welding machine EXPLANATION:The continuum of environmental sensitivity suggest that industrial products are relatively insensitive, while consumer products linked to cultural variables are sensitive to international differences.
In a customer survey conducted by Radwheel Motors, it was found that customers purchased the company's cars primarily because Radwheel cars were a status symbol in the survey population. By which type of marketing dimension were Radwheel's purchasers motivated?
determining dimension EXPLANATION:In this context, customers' purchases were encouraged by a determining dimension. Determining dimensions are those that actually affect the customer's purchase of a specific product or brand in a product-market.
It is sometimes hard to understand and define generic markets becauseWhich of the following is a characteristic of a product-market?
different product types may compete with each other. EXPLANATION:It is sometimes hard to understand and define generic markets because even broadly different product types may compete with each other in such markets.
To assess their progress against competitors, the maker of computer tablets tracked their portion of the total sales of computer tablets in the United States over the past six months as compared to all computer tablets sold in the United States in the same time period. This is best described as
market share. EXPLANATION:Often used by marketing managers to assess their progress against competitive rivals, market share is the portion of total sales in a product category accounted for by a particular brand.
When creating a marketing strategy and engaging in market segmentation, the ______ dimensions are the dimensions that define which potential customers are included in a segment.
qualifying EXPLANATION:Regardless of whether customers are final consumers or organizations, segmenting a broad product-market usually requires using several different dimensions at the same time. Qualifying dimensions are those used to define which customers are included in a product-market.
International marketing is attractive for all of the following reasons except that
regulations in foreign countries can be highly complex. EXPLANATION:While marketers hope to experience new opportunities and advantages by entering international markets, foreign regulations and political instability in other parts of the world make international marketing a risky endeavor.
Natural Essences, a company that manufactures hair products, offers "dollar-off coupons" to adult women to get them to try its shampoos and conditioners. This is an example of:
sales promotion. EXPLANATION:Sales promotion refers to those promotion activities that stimulate interest, trial, or purchase by final customers or others in the channel. This can involve use of coupons, point-of-purchase materials, samples, signs, contests, events, catalogs, novelties, and circulars.
Which of the following represents the basic goal of the marketing concept?
satisfying customers at a profit EXPLANATION: The marketing concept means that an organization aims all its efforts at satisfying its customers at a profit. The marketing concept is not a new idea—it has been around for a long time. Nevertheless, some managers show little interest in customers' needs.
Government planning in a command economy often resulted in
shortages of goods and services. EXPLANATION: Countries with command economies often had little variety, so consumers had few choices. Because the government struggled to forecast what consumers would want, there were often shortages of goods and services.
In the context of the universal functions of marketing, the _____ function of marketing involves holding goods until customers need them.
storing EXPLANATION: The storing function involves holding goods until customers need them.
Sales and marketing activity in international markets can be blocked by ______, which emphasize a country's interests above all else.
strong feelings of nationalism EXPLANATION:Nationalism, which places a country's interests above all else, can hinder, and even block, sales and marketing activity in international markets.
The customer is
the target of a marketing mix. EXPLANATION:Although some people assume that the customer is part of the marketing mix, this is not so. Rather, the customer should be the target of a marketing mix.
Based on the following company statements, which company is most likely to be in the marketing company era?
"Our long-range plan—developed by our marketing manager—is to expand across regions so that we can profitably meet the long-term needs of our customers." EXPLANATION: The marketing company era is a time when, in addition to short-run marketing planning, marketing people develop long-range plans—sometimes five or more years ahead—and the whole-company effort is guided by the marketing concept.
Which of the following statements best explains the "marketing concept"?
All of a firm's activities and resources should be focused on fulfilling the needs of its customers while making a profit. EXPLANATION: The marketing concept means that an organization aims all its efforts at satisfying its customers—at a profit. The marketing concept is not a new idea—it has been around for a long time. Nevertheless, some managers show little interest in customers' needs.
Which of the following is not an example of the micro-macro dilemma?
Having a dog or cat can teach a child responsibility, but a pet adds expenses to the family budget. EXPLANATION: Sometimes when a firm focuses its efforts on satisfying certain consumers to achieve its objectives, there may be negative effects on society. For example, producers and consumers making free choices can cause conflicts and difficulties. This is called the micro-macro dilemma.
Which of the following statements is true of marketing-oriented firms?
In a marketing-oriented firm, every department's activities are guided by what customers need and what the firm can deliver at a profit. EXPLANATION: A marketing orientation means trying to carry out the marketing concept. Instead of just trying to get customers to buy what the firm has produced, a marketing-oriented firm tries to offer customers what they need while still making a profit. The total system's effort is guided by what customers want, instead of what each department would like to do. The marketing concept provides a guiding focus that all departments adopt. It should be the philosophy of the whole organization, not just an idea that applies to the marketing department.
Which of the following statements about nonprofit organizations is FALSE?
In nonprofit organizations, support often comes directly from those who receive the benefits the organization produces. EXPLANATION: The marketing concept is as important for nonprofit organizations as it is for business firms. As with any business firm, a nonprofit organization needs resources and support to survive and achieve its objectives, yet support often does not come directly from those who receive the benefits the organization produces.
Which of the following is true of the economic environment?
It can change rapidly. EXPLANATION:The economic environment refers to macroeconomic factors that affect patterns of consumer and business spending such as national income, economic growth, and inflation. The rise and fall of the economy in general, within certain industries, or in specific parts of the world can have big impacts on what customers buy. Changes in the economic environment can happen rapidly.
Which of the following is a characteristic of a product-market?
It is a market in which sellers offer very similar methods of satisfying customer needs. EXPLANATION:In contrast to a generic market, a product-market is a market where customers have very similar needs and sellers offer various close substitute ways of satisfying those needs. For instance, in the desk lamp market, all customers are seeking desk lamps and the products offered by sellers are variations on the basic concept of a desk lamp.
Which of the following is true of publicity?
It is an unpaid form of communication. EXPLANATION:Publicity refers to any unpaid form of nonpersonal presentation of ideas, goods, or services—including earning favorable coverage in newspaper stories and creating web pages that provide product information for interested customers.
Which of the following statements about segmenting is accurate?
It tries to aggregate individuals who have similar needs and characteristics. EXPLANATION:Segmenting is the process of clustering people with similar needs into a "market segment." A market segment is a relatively homogeneous group of customers who will respond to a marketing mix in a similar way.
Which of the following statements about marketing is true?
Marketing only occurs when two or more parties are willing to exchange one thing for another thing. EXPLANATION: Marketing focuses on facilitating exchanges. In fact, marketing does not occur unless two or more parties are willing to exchange something for something else. For example, in a pure subsistence economy—when each family unit produces everything it consumes—there is no need to exchange goods and services and no marketing is involved.
Which of the following is a difference between business firms and nonprofit firms with regard to the marketing concept?
Nonprofit organizations' key measures of long-term success differ from those of other business firms. EXPLANATION: As with a business, a nonprofit must take in as much money as it spends or it will not survive. However, a nonprofit organization does not measure "profit" in the same way as a firm. Moreover, its key measures of long-term success are different.
Which of the following federal laws passed by the U.S. Congress in 1890 outlawed anticompetitive activities and actions that create or attempt to monopolize a market?
Sherman Act EXPLANATION:The Sherman Act (1890) outlawed anticompetitive activities (for example, when two or more companies conspire to set prices) and actions that create or attempt to monopolize a market.
Which of the following is true of the continuum of environmental sensitivity?
Some products are more adaptable to foreign markets than others and thus may be less risky. EXPLANATION:Some products are relatively insensitive to the economic and cultural environment in which they are placed. These products may be accepted as is, or they may require a little adaptation to make them suitable for local use.
Which of the following statements is true of target marketing?
Target marketing is limited to fairly homogeneous market segments. EXPLANATION: Target marketing is not limited to small market segments—only to fairly homogeneous ones. A very large market—even what is sometimes called the "mass market"—may be fairly homogeneous, and a target marketer will deliberately aim at it.
Which of the following statements is true of the technological environment?
Technology foreshadows breakthrough opportunities. EXPLANATION:Technology is the application of science to convert an economy's resources to output. Technology affects marketing in two basic ways: it creates opportunities for new products and it creates opportunities for new processes (ways of doing things).
Which of the following is not a reason why a restaurant may have low customer value?
The cost of the dining experience is less than its perceived value. EXPLANATION: Customer value is the difference between the benefits a customer sees from a market offering and the costs of obtaining those benefits. In a restaurant setting, perceived benefits include food quality, service, and ambience. Costs of dining include prices, inconvenience of travel, and wait times. High customer value happens when the benefits of the dining experience are high and the various costs are low.
Which of the following is not an example of how the economic environment may affect marketing strategy planning?
The demand for bicycles is increasing because consumers are becoming more health conscious. EXPLANATION:The economic environment refers to macroeconomic factors that affect patterns of consumer and business spending such as national income, economic growth, and inflation. The rise and fall of the economy in general, within certain industries, or in specific parts of the world can have big impacts on what customers buy. Changes in consumer tastes are also important to marketing strategy planning but are not an aspect of the economic environment.
Which of the following scenarios best describes differentiation?
The firm's marketing mix is distinct from what is available from a competitor. EXPLANATION:Differentiation means that a company's marketing mix is distinct from what is available from a competitor. A combination of analyses of customers, competitors, and company help the marketing manager identify possible strategies that differentiate a marketing mix from its competition.
Which of the following statements is true of generic markets?
The generic market includes only three of four aspects of the product-market definition—customer needs, customer types, and geographic area. It does not include product type. EXPLANATION:The complete product-market definition includes a four-part description: product type (type of good and type of service), customer (user) needs, customer types, and geographic area. A generic market description doesn't include any product-type terms.
Which of the following statements is true of the marketing management process?
The marketing management process is the process of planning marketing activities, directing the implementation of the plans, and controlling these plans. EXPLANATION:The marketing management process is the process of (1) planning marketing activities, (2) directing the implementation of the plans, and (3) controlling these plans. These are the basic tasks of all marketing managers.
Which of the following statements about the marketing mix variables is false?
The marketing mix variable "price" is more important than "place." EXPLANATION:All four Ps are needed in a marketing mix. In fact, they should all be tied together. Furthermore, generally no one element is more important than the others; all contribute to one whole. When a marketing mix is being developed, all (final) decisions about the Ps should be made at the same time.
Which of the following statements is true of using a combined target market approach to developing market-oriented strategies?
This approach is especially attractive for firms with limited resources. EXPLANATION:A combined target market approach may help achieve some economies of scale. It may also require less investment than developing different marketing mixes for different segments, making it especially attractive for firms with limited resources.
Which of the following is most likely to serve as a firm's mission statement?
We exist to provide customers with the best shopping experience anywhere in cyberspace. EXPLANATION:A mission statement sets out an organization's basic purpose for being. A good mission statement should focus on a few key goals and should not act as a substitute for more specific objectives. In this example, the mission statement focuses on a key goal rather than embracing everything.
What is a buyer persona?
a detailed description of a typical, but fictional customer EXPLANATION:Buyer personas are detailed descriptions of fictional people that are meant to represent typical customers within a segment.
A generic market
a market with broadly similar needs and sellers offering various, often diverse, ways of satisfying those needs EXPLANATION:A generic market is a market with broadly similar needs offering various, often diverse, ways of satisfying those needs. In generic markets, different product types may compete with each other. For example, to cool off during a hot summer night, customers in the generic market might buy air conditioners, ice cream, or pool memberships.
Which of the following marketing metrics is used to calculate customer equity and customer lifetime value?
acquisition cost EXPLANATION:Three marketing metrics are used to estimate customer lifetime value: (1) average profit margin; (2) retention rate; and (3) acquisition cost.
Reyhan operates a food truck. When he started his business, he decided that he would try to locate his truck wherever the largest number of pedestrians could be found. For months he has stationed his truck in the downtown core. Today, however, he decides to position it near a newly opened museum that is drawing big crowds. This is an example of
an operational decision. EXPLANATION:Reyhan is making a decision about where to locate his truck that reflects his marketing strategy of positioning himself where many pedestrians can be found. This sort of day-to-day decision made in accordance with an existing marketing strategy is an example of an operational decision.
When machines operate like humans with respect to learning and decision making it is referred to as?
artificial intelligence. EXPLANATION:Many of the fastest growing technologies use artificial intelligence, which refers to having machines operate like humans with respect to learning and decision making. Artificial intelligence is implemented by an intelligent agent, which is a device that observes an environment and acts to achieve a goal.
Positioning analysis as it is usually practiced is not well-suited to identifying
basic shifts in the market. EXPLANATION:Positioning analyses are usually product-oriented, focused on specific product features and brands that are close competitors in a given product-market. As such, they may overlook basic shifts that affect an entire market. For instance, a position analysis comparing different beer brands would not capture a shift among consumers toward soft drinks.
A marketing program
blends all of the firm's marketing plans into one overall plan. EXPLANATION:A marketing program blends all of the firm's marketing plans into one big plan. The success of the marketing program depends on the care that goes into planning the individual strategies and how well they work together to create value for customers and the firm.
How can expanding into international markets lead to lower prices for a company's products sold in domestic markets?
by improving economies of scale EXPLANATION:Selling products overseas can improve a company's economies of scale, thereby allowing it to reduce prices domestically.
How might firms increase production flexibility?
by not doing their own manufacturing EXPLANATION:Having large, special-purpose facilities can be an advantage in production, but they limit a firm's flexibility. Instead, some firms can gain flexibility by not doing their own manufacturing and by working with whatever suppliers are best able to meet their specifications.
Firms that facilitate or provide one or more of the marketing functions other than buying are known as
collaborators. EXPLANATION: Marketing specialists that facilitate or provide one or more of the marketing functions other than buying are known as collaborators. These collaborators include advertising agencies, marketing research firms, independent product-testing laboratories, Internet service providers, public warehouses, and so on.
Macro-marketing is?
concerned with the flow of need-satisfying goods and services from producer to consumer. EXPLANATION: Macro-marketing is a social process that directs an economy's flow of goods and services from producers to consumers in a way that effectively matches supply and demand and accomplishes the objectives of society. With macro-marketing, we are still concerned with the flow of need-satisfying goods and services from producer to consumer. However, the emphasis with macro-marketing is not on the activities of individual organizations but is, instead, on how the whole marketing system works. This includes looking at how marketing affects society and vice versa.
Which of the following techniques enables marketers to develop "segments of one" where each customer is targeted with their own marketing mix?
customer relationship management EXPLANATION:Customer relationship management uses detailed information about customers to fine-tune the marketing mix that different groups of customers receive. Many CRM systems use artificial intelligence to treat individual consumers as "segments of one."
Which of the following terms can be defined as the extent to which a firm fulfills a customer's needs, desires, and expectations?
customer satisfaction EXPLANATION: Customer satisfaction is the extent to which a firm fulfills a customer's needs, desires, and expectations. Marketing plays an essential role in providing consumers with need-satisfying goods and services and, more generally, in creating customer satisfaction.
Which of the following types of segmenting dimensions are most helpful in understanding how customers in a target market decide exactly which brands of product to buy?
determining dimensions EXPLANATION:Determining dimensions are those that actually affect the customer's purchase of a specific product or brand in a product-market.
Which of the following best describes a breakthrough opportunity?
developing an innovative and hard-to-copy marketing strategy EXPLANATION:A breakthrough opportunity is an opportunity to innovate and develop a hard-to-copy marketing strategy that will be profitable for a long time.
Which of the following is not an element of the external market environment?
direct environment EXPLANATION:There are four areas of the external market environment: technological, economic, cultural and social, and political and legal. The direct market environment includes customers, the company, and competitors.
Which of the following types of opportunities tends to involve the greatest risk?
diversification EXPLANATION:Diversification involves moving into totally new lines of business, such as offering a product that is completely new to a company. These are the riskiest opportunities for a company to pursue because their unfamiliarity makes them difficult for a company to evaluate.
Cutbacks in consumer spending and rising inflation are conditions that arise mostly due to factors in the?
economic environment. EXPLANATION:The economic environment refers to macroeconomic factors, including national income, economic growth, and inflation, that affect patterns of consumer and business spending. The rise and fall of the economy in general, within certain industries, or in specific parts of the world can have big impacts on what customers buy.
The expected earnings stream of a firm's current and prospective customers over some period of time is defined as customer
equity EXPLANATION:Customer equity is defined as the expected earnings stream of a firm's current and prospective customers over some period of time. Following the customer equity approach guides the marketing manager to make marketing decisions that enhance the firm's long-term profits, not just for the next quarter or year.
From the perspective of macro-marketing, the discrepancy between the small quantity of a product that individual consumers need and the large quantity that firms produce exists because
firms seek to benefit from economies of scale. EXPLANATION: Many manufacturers prefer mass production with its economies of scale, which means that as a company produces larger numbers of a particular product, the cost of each unit of the product goes down. Yet while most consumers only want to buy a small quantity, they also want a wide assortment of different goods and services. This is a leading cause of the discrepancies of quantity and assortment that exist between producers and consumers.
A complete product-market definition includes product type, customer needs, customer types, and
geographic area. EXPLANATION:A complete product-market definition includes product type, customer needs, customer types, and geographic area.
In a command economy,
government officials make almost all production and distribution choices. EXPLANATION: In a command economy, government officials decide what and how much is to be produced and distributed by whom, when, to whom, and why.
The Consumer Product Safety Commission
has broad power to set safety standards and can impose penalties for violation of these standards. EXPLANATION:The Consumer Product Safety Act of 1972 set up the Consumer Product Safety Commission. This group has broad power to set safety standards and can impose penalties for failure to meet these standards.
With reference to the measures of national income, gross domestic product (GDP) differs from gross national income (GNI) in that GDP
includes the income earned by foreigners who own resources in a nation, which GNI excludes. EXPLANATION:There are a variety of different measures of national income. Gross national income (GNI) is a measure that is similar to GDP, but GNI does not include income earned by foreigners who own resources in that nation. By contrast, GDP does include foreign income.
GNI is more useful than GDP when trying to determine the income level of the residents of a given country because GDP?
includes the profits of foreign companies, most of which will leave the host country. EXPLANATION:GDP includes income earned by foreigners who own resources in a nation. This means that a large foreign company can increase the GDP of the country where it produces goods. Normally, however, very little of the resulting income stays with the host country.
Target marketing differs from mass marketing in that target marketing
is tailored to fit some specific target customers while mass marketing aims at everyone with roughly the same marketing mix. EXPLANATION: Target marketing involves creating a marketing strategy that is focused on a particular group of customers. In contrast, mass marketing—the typical production-oriented approach—vaguely aims at "everyone" with the same marketing mix.
The text's discussion of "hit-or-miss" marketing suggests that
it is fairly common for marketing efforts to turn out poorly, so to avoid that fate and get better than average results, a good manager needs to use a logical process for marketing strategy planning. EXPLANATION:Developing a successful marketing strategy does not need to be a hit-or-miss proposition. Managers need to learn and use a logical process for marketing strategy planning.
Which of the following activities is part of the production process?
making goods or performing services EXPLANATION: Production refers to the process of actually making goods or performing services. Marketing, on the other hand, provides needed direction for production and helps make sure that the right goods and services are produced in the necessary amounts, and that they find their way to consumers.
Trying to increase sales by selling present products in new markets is known as
market development.EXPLANATION:Market development means trying to increase sales by selling present products in new markets. This may involve searching for new uses for a product.
The variables that a company puts together in an attempt to satisfy a particular set of customers that it wants to appeal to is called a
marketing mix. EXPLANATION:A marketing mix is made up of the variables a company puts together to satisfy the target market to which it wants to appeal.
A ________ specifies a target market and a related marketing mix.
marketing strategy EXPLANATION:A marketing strategy specifies a target market and a related marketing mix. It is a big picture view of what a firm will do in some market.
When some consumers see the marketing mixes being offered by various firms as being different, but other consumers consider these alternatives to be close substitutes for each other, the competitive situation is described as?
monopolistic competition .EXPLANATION:Most marketing managers in developed economies face monopolistic competition, a situation in which a number of different firms offer marketing mixes that at least some customers see as different. Each competitor tries to gain control (a monopoly) in its own target market, but competition still exists because some customers see the various alternatives as substitutes.
With regard to the universal functions of marketing, the transporting function involves
moving goods from one place to another. EXPLANATION: The transporting function refers to the movement of goods from one place to another. The storing function involves holding goods until customers need them.
Having segmented its broad product-market, Martinez Corp. has decided to treat its two chosen submarkets as separate target markets, with each requiring different marketing mixes. Which of the following approaches to developing market-oriented strategies is Martinez Corp. applying in this scenario?
multiple target market approach EXPLANATION:The multiple target market approach involves segmenting the market and choosing two or more segments, and then treating each as a separate target market needing a different marketing mix.
The first step in the market segmentation process involves
naming broad product-markets. EXPLANATION:Market segmentation is a two-step process. The first step involves naming broad product-markets. Once broad product-markets are identified, step two involves segmenting these broad product-markets in order to select target markets and develop suitable marketing mixes.
Which of the following represents a broad product-market within the generic market of outdoor adventures?
people who buy fly fishing equipment for fishing trips EXPLANATION:People who buy fly fishing equipment constitute a broad product-market within the generic market of outdoor adventurers. It is a narrower submarket of the generic market of outdoor adventurers. "Loyal customers of Able brand fly fishing reels" constitutes the narrowest market segment in the list and represents a single homogeneous target market, not a broad product-market.
Which form of promotion involves direct spoken communication between sellers and potential customers that may happen face-to-face, over the telephone, or via an online conference?
personal selling EXPLANATION:Personal selling involves direct spoken communication between sellers and potential customers. Personal selling may happen face-to-face, over the telephone, or via an online conference.
When a large percentage of people are concentrated in urban areas, such as in the United States?
place and promotion decisions are often simplified. EXPLANATION:Place and promotion decisions are often simplified when a country's people are concentrated in major cities.
A _____ analysis helps managers understand how customers see their market.
positioning EXPLANATION:A positioning analysis helps managers understand how customers see their market. It is a visual aid to understanding a product-market.
Workathome Inc. offers to help people establish and manage their own online businesses, a service for which it charges a fee. Out of several possible market segments, the firm has chosen to target people with a limited understanding of the Internet and poor financial literacy. This is an example of using
potentially unethical segmenting .EXPLANATION:Targeting customers who are a disadvantage when dealing with the firm and who are unlikely to see the negative effects of their own choices is often considered to be an unethical use of segmenting
Which variable of the marketing mix may involve a physical good, a service, or a blend of both?
product EXPLANATION:A product offering may involve a physical good, a service, or a blend of both. A good or service should satisfy customers' needs.
The balancing point that determines just how unique a marketing mix a firm can afford to develop for a particular market segment is
profit. EXPLANATION:Profit is the balancing point that determines just how unique a marketing mix a firm can afford to develop for a particular market segment.
The purpose of a positioning statement is to
provide focus for a marketing mix by concisely stating its most important features. EXPLANATION:A positioning statement concisely identifies the most important features of a marketing mix, thereby helping everyone working on that marketing mix to focus on what is most important.
When the target customers of a specific brand are not viewing it in the desired way, the brand ideally needs to be
repositioned EXPLANATION:When research shows the marketing manager that target customers are not viewing the brand in the desired way, it needs to be repositioned. Changing customers' perceptions of a brand is not easy; it requires changes to the marketing mix.
When a firm manufactures a product and is uncertain about whether customers will want to buy its products, that firm is experiencing the ______ function of marketing.
risk-taking EXPLANATION: The risk-taking function involves firms dealing with the uncertainties of the marketing process.
Which of the following terms best describes the idea that it is important to meet present needs without compromising the ability of future generations to meet their own needs?
sustainability EXPLANATION:Many organizations now screen opportunities on sustainability—the idea that it's important to meet present needs without compromising the ability of future generations to meet their own needs. In many lines of business, that is a tall order
In order to identify potential competitors, it is important to take the viewpoint of _____ when conducting a competitor analysis.
target customers EXPLANATION:A competitor analysis is an organized approach for evaluating the strengths and weaknesses of competitors' marketing strategies. To identify potential competitors, it is useful to take the viewpoint of target customers. Companies may offer quite different products, but they are competitors if customers see them as offering close substitutes.
Which of the following is not a variable associated with the cultural and social environment?
technological innovation EXPLANATION:While technological trends may be embraced or rejected for sociocultural reasons, technological innovation is a variable associated with the technological environment.
When segmenting a broad product-market, it is especially important that marketers create segments
that are operational. EXPLANATION:The most important criteria for a good market segment is that it be operational, meaning that the firm is capable of applying it to identify customers and adjusting the marketing mix.
When looking for attractive opportunities, a marketing manager for a clothing manufacturer should consider?
the firm's financial strengths, the firm's capability to produce, the firm's brand awareness, whether the firm has good relations with established clothing retailers.All of the above EXPLANATION:When looking for attractive opportunities, a marketing manager should analyze the firm's producing capability and flexibility, financial strengths, good relations with wholesalers and retailers, and the firm's marketing strengths.
The concept of social responsibility is challenging for marketers except when
the needs of consumers and the society can be served at a profit. EXPLANATION: The marketing concept and social responsibility occasionally encounter the "micro-macro dilemma," where what is "good" for some firms and consumers may not be good for society as a whole. Since resolving this dilemma can result in lower profits or inferior products, marketing people may look for market opportunities where the needs of consumers and firms are congruent with the perceived good of the whole society.
Which of the following functions of marketing involves sorting products according to their size and quality, helping to reduce their need for inspection, and sampling?
the standardization and grading function EXPLANATION: The standardization and grading function involves sorting products according to size and quality. This makes buying and selling easier because it reduces the need for inspection and sampling.
What is the purpose of a S.W.O.T. analysis?
to develop screening criteria that will help a company identify what marketing strategy to pursue EXPLANATION:A S.W.O.T. analysis aids a company in developing a marketing strategy by helping it to develop screening criteria.
What is the purpose of free trade agreements?
to eliminate import and export barriers between countries EXPLANATION:Free trade agreements remove trade barriers between countries so that imports and exports are not restricted.
Target marketers who are "combiners"
use one marketing mix to appeal to multiple submarkets, even though the submarkets have some distinct differences. EXPLANATION:Target marketers known as "combiners" try to increase the size of their target market by treating two or more different segments into single market and offering it a single marketing mix. "Combiners" believe that one marketing mix will work well enough with these multiple submarkets, even though the different segments within the target market have real differences. While this approach makes efficient use of resources, combiners do not get to "fine-tune" their marketing mixes to meet the needs of their submarkets as effectively as they might desire.
For every item purchased from it, a clothing company donates items of the same kind to homeless shelters across the United States. This best exemplifies which of the following?
using marketing for a better world EXPLANATION: Marketing helps make a better world by (1) buyers and sellers making better decisions that lead to a better quality of life; (2) buyers and sellers making decisions that have less adverse impacts on others; and (3) marketing strategy decisions addressing some of the world's most challenging problems—including homelessness.
A firm may find itself in—or moving toward—pure competition
when customers see the firm's product as having close substitutes. EXPLANATION:Many product-markets head toward pure competition—or oligopoly—over the long run. In these situations, competitors offer very similar marketing mixes, and customers see the alternatives as close substitutes. When this happens, managers seek a competitive advantage by lowering prices.
