MKT 3050 Exam 1

Bōte is a Florida-based stand-up paddleboard maker that markets its products directly to consumers via its website. Bōte's mission is to spread the sport of stand up paddle surfing from oceans to lakes and rivers around the world. Stand up paddle surfing or boarding is a relatively new sport but is growing due to the relatively low price of the boards, ease in transportation and storage of the boards as well as the sport providing a fun way to exercise and allow users to enjoy the outdoors. Which of the following would be the "best" target market for Bōte paddle board products?

Active adults aged 24 to 40 who enjoy outdoor recreational activities

The Electrolux Corporation produces light bulbs that are used in refrigerators. Currently, only three other companies produce bulbs used in the production of refrigerators, with Electrolux as the leader in market share. In this case, Electrolux Corporation participates in

An oligopoly

The director of marketing for Duck Brand tells the rest of the management team, "When it comes to our duct tape unit, our strategy will be to use funds generated here to support our venture in the industrial bonding market." This strategy indicates that the duct tape unit falls into which one of the following classifications?

Cash cow

A set of values, beliefs, goals, norms, and rituals shared by members of an organization is called

Corporate culture

Amazon Prime has one of the highest customer loyalty ratings in the entertainment industry with a significant percentage of current video streaming subscribers continuing to renew their subscription with Amazon on a yearly or month-to-month basis. In addition, many customers have cancelled their cable or satellite subscriptions and rely almost exclusively on streaming services such as Amazon Prime and Netflix for their entertainment. Amazon Prime video streaming is available as part of Amazon's $99/year Amazon Prime suite of offerings that includes free 2-day shipping on many Amazon.com orders. Customers can also choose to pay by the month for $12.99/month. If a significant percentage of subscribers continue their service on an annual basis, Amazon is able to build a stable revenue stream based on repeat purchasers. A quick snapshot of one customer revealed that the customer had subscribed to Prime for five years and generated over $700 in revenue to Amazon. Which of the following marketing terms best captures the importance of customer loyalty and its impact on Amazon?

Customer lifetime value

Brand name, product characteristics, packaging, and labeling are some of the ______________ marketing mix variables to standardize for international markets.

Easiest

____ is (are) most likely to improve ethical behavior in a marketing organization.

Eliminating unethical individuals and improving the organization's ethical standards

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

Environmental analysis

Information inputs that reach perceptual awareness are received in an organized form.

False

Political forces are beyond the control of marketers, and so they can only react to them.

False

Relationship marketing focuses on satisfying customers to generate the most profit.

False

Situational influences would likely not affect a high school senior searching for a college or university to attend.

False

The marketing environment is a set of static, unchanging surroundings.

False

Training is an unnecessary element of communicating with marketing employees.

False

​The long-term health of the firm depends solely on having products that generate cash and provide acceptable reported profits.

False

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

Generic

The percentage of a market which actually buys a specific product from a specific company is referred to as that product's

Market share

The agreement between the United States, Canada, and Mexico that merges these three countries into one marketplace is called

NAFTA

Textile companies historically face issues concerning the use of child labor in foreign countries and the various regulations created concerning this labor. The type of marketing environment forces executives for these companies are most likely to try to influence are ____ forces.

Political and regulatory

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

Proactive

When Liv goes to the first class of her Operations Management course, she finds out that in addition to the textbook she already purchased, she also needs a specific type of calculator. With regards to the calculator, at which stage of the consumer buying decision process is Liv?

Problem recognition

____ competitors are those that compete in the same product class, but their products have different features, benefits, and prices.

Product

Which of the following relates to activities used to inform and persuade or create a desired response?

Promotion

To meet federal gas mileage regulations, Ford has developed aluminum vehicle bodies that are light enough to help conserve fuel. What kind of response is this to environmental forces?

Reactive

​Although the monopoly is one of the four major market structures that theoretically exists in a free market capitalist system, the reality is there are very few true monopolies in the economy. This is the result of many federal laws and regulations that have been passed to limit the creation and power of monopolies. ​ Which one of the following federal laws was passed to prevent the creation of monopolies in the economy?

Sherman Act of 1890

What is the major difference between social responsibility and marketing ethics?

Social responsibility deals with the total effect of marketing decisions on society, whereas marketing ethics relates to individual and group evaluations in marketing situations.

Which of the following variables would most likely be used to segment a business market?

The geographic location of the company

A multinational enterprise is a firm that has operations or subsidiaries located in many countries.

True

Customer relationship management is the use of information about customers to create marketing strategies that develop and sustain desirable customer relationships.

True

Lilly is looking for new sneakers but cannot find her favorite brand. She then notices another brand of shoes that she has never purchased and has no experience with. She remembers she heard the name of the brand in a commercial yesterday. Because she remembers the name from the commercial, Lilly is more likely to ascribe value to that pair of sneakers.

True

Marketing objectives state what is to be accomplished through marketing activities.

True

Numerous self-regulatory programs have been created to stop or stall the development of laws and government regulatory groups that would regulate marketing practices.

True

Once trust is lost in marketing relationships, it can take a lifetime to rebuild.

True

The four requirements of a market are that the individuals in the market must have a need for the product and the ability, willingness, and authority to buy it.

True

To resolve a social responsibility issue, it is helpful to check with concerned consumer groups and industry or specific company policy regarding the activity.

True

​A target market is a specific group of customers on whom an organization focuses its marketing efforts.

True

​The distribution variable in a marketing mix is directed toward making products available in the quantities desired to as many target market customers as possible and keeping the total inventory, transportation, and storage costs as low as possible.

True

​The market concept stresses that an organization can best achieve its objectives by being customer-oriented.

True

Alex has a good-paying job. However, even though he has not received any official confirmation, Alex suspects that his job might be cut in the near future. Rumors in the grapevine hint that the company is going to go through massive lay-offs due to declining revenues. As a result, Alex has decided to forgo buying a house until he has a better idea of his job status. He has a lot of savings, but Alex knows he might need them if he becomes unemployed. In this case, Alex lacks

a willingness to buy

Cognitive, affective, and behavioral are the three major components of

attitudes

A targeting strategy in which an organization targets a single market segment using one marketing mix is called a(n) ____ strategy.

concentrated

What are two common distribution-related ethical issues?

counterfeiting and channel stuffing

In addition to the proliferation of new organic brands, many conventional marketers have introduced organic versions of their products, including Gatorade, Kraft Heinz, and even Kroger. These firms are responding to changes in

cultural values

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

differentiated

Honda is a multinational company. In most countries in which it operates, Honda opens facilities that give it total control over manufacturing and other processes. However, in China Honda must partner with domestic companies due to legal and regulatory constraints. In these cases, Honda owns part of the company, while the domestic firm owns the other part. In most countries, Honda engages in ____________, but in China it engages in _______________.

direct ownership; joint ventures

​Issues of inventory levels and storage costs are both concerns relating to the ____ variable of the marketing mix.

distribution

A marketing plan document usually begins with a(n)

executive summary

Using surveys to conduct marketing research is an example of environmental analysis. ​

false

Discretionary income is used for all of the following except

food

Dunkin' is introducing some of its products into supermarkets, vending machines, college campuses, and other locations to increase its product availability and convenience. One reason Dunkin' is doing so is to

increase customer value.

Which of the following is used to help maintain a more favorable balance of trade by a country?

limiting imports

Pantene's new shampoo, AO1, is faltering badly in the market. Pantene's marketing personnel are unsure who is responsible for various marketing tasks, when these tasks are to be completed, or what resources have been allocated. Suave Marketing Director Mei Lee said that the problem is that AO1 has the most poorly written ____ she has ever seen.

marketing plan

Today, establishing long-term, mutually beneficial arrangements in which both the buyer and seller focus on value enhancement through the creation of more satisfying exchanges is known as

relationship marketing.

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

stars

The successful marketer understands that the key to her success is the relationships her firm is able to develop with current customers and potential customers. Moreover, her goal is to achieve the full potential of each of these relationships for the benefit of the firm. This marketer clearly understands

that customer loyalty leads to increasing long-term profitability for the firm.

Define marketing as:

the process of creating, distributing, promoting, and pricing goods, services, and ideas to facilitate satisfying exchange relationships with customers.

During the early stages of international development, most firms make few, if any, adjustments to their organizational structure to accommodate international sales.

true

Digital influences have largely replaced

word-of-mouth referrals from neighbors, coworkers, and friends

Southwest Airlines has a history of being able to retain its employees due to the atmosphere and culture of the company. Employees have been known to dress up in costume on an airplane, engage in "games" with the passengers, and generally provide a fun atmosphere for traveling. While other airlines have low rates of customer satisfaction, Southwest tends to maintain a high rating with its customers. Recently, airlines have started to charge for checked luggage and to fill every flight to its maximum, adding to the negative experience of airline travel. Southwest keeps its costs low through several methods, one being that they do not serve meals on flights, or provide pre-boarding passes. The typical flight is two hours or less and occurs between several selected cities rather than flying to practically anywhere in the country. Southwest is known for its low fares, its dependability, and its on-time flights. ​Refer to Scenario 2.1. The fact that Southwest Airlines has a history of being able to retain its employees is a(n) ____ in its SWOT analysis. This low turnover creates more knowledgeable and satisfied employees, a potential _______.

​strength; competitive advantage