MKT Exam 1 Study Quide
After running two different Google ad campaigns last month, your marketing teams reports the following results: Campaign #1 Campaign #2 click = 750 1,000 impression = 5,000 8,000 You want to funnel your Google ad dollars into the campaign that has the best click-through rate (CTR). Which campaign should you choose?
a. Campaign #1
Which of the following is true about the ethical issues marketers encounter in social media marketing?
a. Privacy and accountability are constant concerns.
All of the following are appropriate ways for a firm to measure the effectiveness of its social media initiatives except:
b. By measuring output.
Which one of the following statements best describes the basic goal of marketing?
c. Marketing creates value by providing different types of utility to customers.
You have been hired by a successful but somewhat old-fashioned retailer with a new CEO who is anxious to get involved in B2C e-commerce. However, he needs to convince the board of directors that online shopping is more than just a fad. All of the following arguments are valid for him to use except which one?
c. While most consumers still prefer traditional brick-and-mortar shopping, analysts predict that this preference will change in the coming decade.
When setting goals for a social media marketing (SMM) campaign, a firm should:
d. Identify their target audience before producing any content.
You work for a multimillion-dollar supermarket chain whose executives have been strategizing around ways to enhance their relationships with customers. Which of the following steps would you take to address this need if your company is committed to the practices of the relationship era?
e. Institute a loyalty program that rewards regular customers through a point system.
Unwittingly, most consumers follow a defined process when purchasing goods and services. This process includes six steps, and the marketer must understand where the consumer is in this process in order to be successful with his or her marketing strategies. Choose the scenario that best describes the first step in the consumer buying decision process.
e. Michael accidentally ran over his bicycle when he backed out of his garage this morning, and he needs a bicycle for the road race he is participating in this weekend.
Fill in the blanks with the word(s) from the drop-down list that would best complete the passage: _________ involve directions and procedures on how to return merchandise, including preprinted shipping labels that are included with the order. Regulations requiring social networking sites to get consent to use consumers' personal data have been adopted by the __________. _________ uses email or pop-up messages that falsely claim to be from familiar organizations in order to obtain personal information such as passwords, credit card, and bank account numbers. ___________ is increasing, and so is the technology designed to detect or block it.
Reverse logistics, european comission, phishing, internet fraud
Now that you have settled on which sales page performs the best, you'd like to ramp up the advertising spending to drive more traffic to the site. First, you run two different Google campaigns and get the following results: Campaign #1 Campaign #2 cost per click = 0.75 $1.00 Conversion rate =5% 5% You, of course, want to invest your future ad spending into the campaign with the best conversion cost. Which campaign should get your ad dollars?
a. Campaign #1
With your Google ad campaign in full swing, you shift focus to running ads on Facebook. Since each campaign targeted a different group of potential customers, you notice that conversion rates varied between campaigns. After a few weeks of running ads, here are your results: Campaign #1 Campaign #2 cost per click = 1.50 $0.75 Conversion rate =10% 4% Like before, you want to invest your future ad spending into the campaign with the best conversion cost. Which campaign should you choose?
a. Campaign #1
You own an expensive restaurant and have a thriving business until the economic recession hits. Sales immediately plummet as your diners disappear. Some friends argue that a big advertising campaign focused on the quality of your food would bring the customers back, but you don't agree. Choose the statement(s) you'd use to accurately explain your point of view.
a. During a recession, consumers limit expenditures on items that aren't necessary, like restaurant meals. d. During a recession, consumers are more likely to respond to discount deals than to ads touting the quality of a purchase that isn't a necessity.
You are an e-business website consultant in Austin, Texas. You and professionals like you are playing an increasingly important role in helping companies optimize their e-commerce initiatives. You just signed a client who is mystified by his site's failure to generate revenue. Which of the following factors do you immediately identify as part of his problem?
a. There is no measure of page-loading speed.
A new store opens in your city. This store opening is likely to prompt you to use social media in all of the following ways except:
a. To dispute your first bill from the new store.
Marketers must continually acquire information about trends, events, and societal dynamics occurring in the marketing environment outside of the firm in order to identify and interpret potential positive and negative forces that may impact the firm's marketing strategies. The following statements provide examples of trends related to environmental forces. Which of these examples is correct?
b. Advances in biotechnology, cosmetic surgery, and cancer drugs are related to technological forces.
Select all the statements that are true about social media's role in marketing.
b. It is primarily a communication medium. c. Most companies are increasing their social media presence.
China recently announced interest in developing its domestic sports industry, which is estimated to be a $1 billion opportunity for sports apparel, shoes, and fitness devices. Consider this set of factors and indicate whether it can be categorized as a strength, weakness, opportunity, or threat.
b. Opportunity
Now that you've captured a large social media audience for Lynda, the market research department is eager to seek their feedback about a potential new course. Once she's posted a detailed description, the research director leaves it to you to decide which measurement will best assess user response: Option #1: conversion rate or Option #2: engagement Which option should you choose?
b. Option #2
In a memo giving the time and date for your company's marketing strategy session, you see that the only topic on the agenda is "Promotion." Knowing that promotion is only one variable in the marketing mix, you contact the memo writer to suggest additional topics that will cover all the relevant variables. What topics do you suggest?
b. Price, Product, and Distribution
Because of their app acquisitions, Under Armour (UA) has direct access to registered users of MapMyFitness, MyFitnessPal and Endomondo. This means they can recommend products to this user base and utilize these apps as a new sales channel. Consider this set of factors and indicate whether it can be categorized as a strength, weakness, opportunity, or threat.
b. Strength
The legal and regulatory forces in the marketing environment consist primarily of laws that are enforced by a variety of agencies operating at the federal, state, and local levels of government. Which of the following laws and agencies is (are) incorrectly linked to an area of regulatory responsibility?
b. The CPSA sets standards for business-to-business products. c. The FDA prohibits adulteration of food, drugs, and additives.
A summer intern has been assigned to help you draft your firm's marketing plan. You are pleased, until you overhear her tell a coworker: "I'd like to work on either strategies or tactics, since there's no real difference between them." When you meet with the intern, you correct her mistake. Which of the following statements do you make?
c. Strategies are longer-term courses of action, while tactics are shorter-term actions.
Under Armour (UA) opened a 15,000-square-foot store in Shanghai, China, which is its largest international brand store location. Consider this set of factors and indicate whether it can be categorized as a strength, weakness, opportunity, or threat.
d. Strength
International retailer IKEA is known not only for value-priced furniture and home goods, but also for the unique children's playrooms and family cafeterias offered in all its stores. These amenities enhance which type(s) of utility for IKEA customers?
a. Place
You are taking a crash course in e-business in order to compete for a plum job opening in the field. However, you missed the class on popular B2B e-business tools and asked a friend to give you her notes. Which of the following points were made during the session?
a. Private exchanges offer the ability to collaborate on projects and share information.
Fill in the blanks with the word(s) from the drop-down list that would best complete the passages: Vendors who sell essentially identical products or services are known as a firm's ___________. Businesses compete indirectly when they produce goods and services that are ____________ for those of another business. Dick's Donut Shop faced __________ competition when a Dunkin Donuts franchise opened across the street. Jan was planning to take her kids to Disney World, but decided instead to book a family-oriented cruise on Carnival Cruise Lines. The competition between Disney World and Carnival Cruise Lines is ________.
direct competition, substitutable, direct, indirect
Fill in the blanks with the word(s) from the drop-down list that would best complete the passages: Marketing ____________ refers to a marketer's standards of conduct and __________. _________ is probably the most regulated aspect of marketing strategy. The question of channel control may pose a serious _________ issue.
ethics, values, pricing, ethical
Fill in the blanks with the word(s) from the drop-down list that would best complete the passage: UX refers to a customer's __________ when shopping on a website. An e-commerce website's ability to generate revenue is driven primarily by __________ and ___________. Revenue maximization strategies on an e-commerce site seek to ___________.
experience, traffic, conversions, encourage repeat visits
Fill in the words from the drop-down list that would best complete the passages. It is estimated that, on average, marketing costs account for ________ % of overall product costs. These costs are not associated with manufacturing, product design, or any of the other _________ functions. Instead, the expenditures go toward the performance of ___________ universal functions of marketing.
50, production, eight
The time and effort that a consumer spends in making a decision regarding a purchase determines whether the item is a high-involvement or low-involvement purchase. Choose the scenario(s) that illustrate(s) a low-involvement purchase.
a. Harrison is in the checkout line at the grocery store and puts a copy of Time magazine in his cart to buy. c. Lorenzo buys his dog Iams dry food from PetSmart. d. Desiree purchases a latte from Starbucks with cashback bonus points on her credit card.
The director of marketing at your company has asked an intern to determine if the firm's Facebook advertising is profitable. Being unfamiliar with the different measures of e-commerce profitability and success, the intern has come to you for advice. What should you advise her to do?
d. Divide the cost per click on your Facebook ad by your conversion rate.
Fill in the blanks with the word(s) from the drop-down list that would best complete the passage. You buy Hershey's Kisses to consume on your own but choose a box of Godiva Chocolates for a gift. Your purchase is primarily influenced by _____________. While some situational influences are created by marketers, others are ___________. The common advice "Don't shop on an empty stomach!" recognizes the impact of ___________ on consumer behavior.
purchase reason, uncontrollable, mood state
Fill in the blanks with the word(s) from the drop-down list that would best complete the passage. Feeling rushed to leave an uncomfortably crowded store is an example of the _________ factor identified as ___________. A young man whose girlfriend just agreed to marry him is more likely to buy expensive new shoes than he was before he proposed. The _____________ factor influencing his purchase is ____________.
situational, physical surroundings, situational, mood
A major element of a consumer's buying decision process is the level of problem solving that the consumer exhibits in the process. The level of involvement is higher for some purchases than for others. The marketer will want to tailor the marketing message according to the perceived level of involvement the consumer will have. Choose the scenario that illustrates routinized response behavior.
Customer A just stopped at the grocery store to pick up some paper towels for his kitchen.
You just got hired by the Federal Trade Commission, and you're the envy of all your friends. You feel good when you overhear your roommate describe your new job to another student. However, in his enthusiasm, he made a couple of mistakes. Which of the following points about the FTC did your roommate get wrong?
a. Because of its enormous power, the FTC is known informally as the Federal Power Commission. c. The FTC sets safety standards for consumer products. d. The FTC operates at the state level as well as the federal level.
At the meeting of your social media team, all agree that the highest-priority goal is to raise awareness. Before people will buy subscriptions, they need to understand not only the benefits of the Lynda platform, but also the great value it adds to the LinkedIn brand. The following options are being considered: Option #1: Your in-house Facebook expert recommends measuring likes on the company FB page and impressions for its other social media content. Option #2: But others in the group want to measure click-through rates to gauge how users are reacting to your content. Which option should you choose?
a. Option #1
The board of directors was pleased with your summary of Vineyard Vines' current marketing activities. As they make plans to grow the business, they want your recommendations for changes to their marketing mix that might enhance profits. For Product Strategy: Option #1: Introduce a line of pet accessories: in particular, dog coats and sweaters. The items would be made of premium wool in colors that match the firm's most popular clothing styles. Option #2: But a local manufacturer of prestige cookware has made a product partnership offer. That company has expressed interest in creating a line of Vineyard Vines pots and pans that would appeal to older, more traditional consumers. Which option should you recommend?
a. Option #1
Your web team created two different versions of the main sales pages for your subscription box. Using something called A/B testing, they were able to alternate which version visitors saw when viewing your website. After a month of testing, the results were: # of sales #number of visitors sales pg 1 = 50 1,000 sales pg 2=80 2,000 Your team would like to select the version with the best conversion rate so that all future visitors see that version. Which sales page should you select?
a. Sales page #1
There are three categories in the consumer's problem-solving behavior: routinized response behavior, limited problem solving, and extended problem solving. You are at the grocery store and realize you need to buy cheese for your mom's famous black-bean lasagna recipe. You typically purchase Kraft cheddar cheese, but you're wondering if you should buy the generic brand because it is a few dollars cheaper. If you use limited problem solving, which of the following actions would you take?
a. Sample the generic brand and buy it because it's on sale.
Happy New Year! Knowing that many people will resolve to learn new skills in the year ahead, you're ready to launch a social media promotion to increase the number of first-time Lynda subscribers. You must inform your social media manager whether to focus on tracking click-through rates or conversion rates. Which would be best?
b. Focus on conversion rates
If your company wishes to communicate a consistent message to its customers with its traditional marketing and digital strategies then it should focus on which of the following opportunities of digital marketing?
b. Integrated marketing
The pyramid of corporate social responsibility states that there are four dimensions of social responsibility: economic, legal, ethical, and philanthropic. The socially responsible marketer accepts different responsibilities for each of these dimensions in terms of how she carries out her marketing activities. You have been asked to make a presentation to management that will highlight your company's ethical responsibilities. Which of the following topics do you plan to discuss?
b. It is important to recognize that corporate integrity and behavior go beyond mere compliance with laws and regulations.
Nike has been able to capitalize on its relationship with basketball star LeBron James, not only by endorsing him, but by also developing a LeBron James Collection composed of T-shirts, socks, basketball apparel, and sneakers. The LeBron X shoe line has been especially successful: When released, the base shoe was priced at about $180, while a version embedded with Nike-plus sensors—which track how high a player can jump and how far he or she can run—sold for $260. Which of the following statements about the LeBron X shoe line is NOT accurate?
b. Nike's effort to sell the line is primarily an example of person marketing.
Marketing ethics and social responsibility are important to the success of marketing strategies. Marketing ethics defines the principles and standards that define acceptable conduct in marketing. Which of the following decisions is not related to marketing ethics?
b. The Director of Marketing wants to withdraw a product because it is no longer profitable or competitive.
Marketers are concerned with the behaviors consumers exhibit and the decisions they make when purchasing a product or service. Likewise, they are concerned with the decision-making processes that change over time. A consumer's self-concept is also important to marketers. Choose the situation that involves self-concept theory.
c. A woman purchases a brightly colored dress she saw in a fashion magazine despite the fact that she normally wears conservative clothing.
Under Armour (UA) is partnering with Kohl's to have product available in its 1,100 department stores, and also has strong relationships with Foot Locker and Champs. Consider this set of factors and indicate whether it can be categorized as a strength, weakness, opportunity, or threat.
c. Strength
Under Armour (UA) reached an agreement with actor and former WWE superstar, Dwayne "The Rock" Johnson. UA "will design product capsules including footwear, apparel and accessories inspired by the films Johnson is currently working on." Consider this set of factors and indicate whether it can be categorized as a strength, weakness, opportunity, or threat.
c. Strength
Hiram's company fills over-the-phone catalog requests taken by its customer service center located in India. During a recent customer survey of U.S.-based consumers, the company became aware that many of its consumers had negative experiences when calling the customer service center with questions, concerns, or to place an order. The complaints have resulted because consumers have difficulty understanding customer service representatives because of language barriers. What is the best course of action for Hiram's company?
c. The company could create a website that allows its consumers the option to order items online.
Choose the scenario(s) below where the consumer behavior is a function of a social factor.
c. You buy a ticket to a movie you've already seen because people you work with are going to the movie. d. You buy your fiancé an engagement ring because this is the tradition where you live. e. You purchase a new smartphone from Verizon on the basis of your aunt's recommendation.
Decorators Inc. has recognized a trend in the spending habits of young professionals in the 25-35 age groups. About 80% of the members in this group rent a condominium or loft space, and they look for ways to furnish and decorate their homes on a budget. Moreover, they are extremely busy and don't have a lot of extra time. The majority of these consumers tend to purchase items that are modern, chic, and reflect the image that they are successful professionals in the business world. Decorators Inc. hired you to design a marketing campaign that will appeal to young professionals. You have studied the purchasing behaviors of young professionals and decided on the campaign design that you are going to implement. Which marketing campaign would effectively appeal to young professionals?
c. You design a Facebook page for Decorators Inc. that features the homes of young professionals well known among their peers for trendsetting taste.
Rebecca buys low-heeled shoes for a job interview at an accounting firm because low heels have been worn by every woman accountant she's met. Rebecca's shoe choice is primarily influenced by a:
c. social factor.
Scenario: You are the head of sales and marketing for a consumer products company. You delegated responsibility for developing a social media marketing (SMM) campaign to one of your best managers because you thought she understood what is required. You asked her to develop some guidelines for how the campaign should be developed and meet with you to discuss her recommended approach. The manager emailed you the following list of guidelines: Developing the campaign should begin by choosing platforms and sites. Social media posts can be used for more than promotion and publicity. Potential customers exposed to social media promotions will be ready to buy as soon as they learn what your company offers. In the event of a public relations crisis, social media can be effectively applied to help defuse it. Which of the following statements should you make to correct the manager's mistakes?
d. Developing a campaign should begin by establishing specific goals, not by choosing platforms and sites.
Procter & Gamble wants to determine both the market share of Iams and the customer lifetime value of Iams buyers. These measurements are calculated based on different variables. Customer lifetime value calculations are complex, but are usually based on the frequency and dollar amounts of an individual customer's purchases, how long the relationship endures, how purchasing patterns change over the course of the relationship, the cost of servicing customers, the profitability of each customer over time, and whether existing customers bring in new customers through word of mouth or other means. A number of possible measurements are listed below. Choose those answers that are not focused on customer lifetime value.
d. Number of competitors and how much pet food each competitor sells per year. e. Percentage of industrywide annual sales represented by Iams products.
Scenario: You are the head of purchasing for a large automobile manufacturing firm in Detroit, Michigan. You are responsible for sourcing and purchasing hundreds of components, parts and other supplies from hundreds of different vendors around the world. You are leading a company-wide project with the primary objective of improving your firm's ability to collaborate with its vendors on projects and to share information with them more efficiently. Which of the following forms of e-business in the B2B market should you implement to achieve the objective of this project?
d. Private Exchanges
You just moved into a new home and are in the market to purchase Internet services. Because you are in a hurry to set up your home office, you enter into a contract with the first provider whose commercial you see on television for your area, though you know there are at least three providers in the area. After the first month, you are unhappy with the service because your signal is continually low. Which of the following statements best describes what went wrong?
d. You failed to evaluate different alternatives.
Delectable Foods develops foods for the modern family that are nutritious and go easily from refrigerator to table. Their market research studies have shown that the goal of the modern family after a long day of work or school is to sit down together to a tasty and healthy meal that doesn't take long to prepare. Delectable Foods has marketed their newest dinner line to appeal to the modern family when they're shopping for groceries. Duran is shopping at the supermarket for groceries after work. He remembers that he needs to pick up dinner for his family, and while trying to be conscious of their caloric intake, he wants to make sure he buys something that his small children will like. Which of Delectable Food's new dinner options would most likely catch Duran's attention?
e. Healthy chicken nuggets in fun shapes with fresh fruit.
From the list below, select any incorrect statements.
e. Viral videos are not effective at generating sales or demand for a product.
Most successful firms have a clearly defined, well-written marketing plan that specifies the marketing activities to be performed to implement, manage, and evaluate its marketing strategies. The typical marketing plan has multiple components that include information about the company's marketing game plan. The following passages describe some of the components of the marketing plan and key information elements. Fill in the blanks with the word(s) from the drop-down list that best complete(s) the passages. A _______ assesses strengths and weaknesses within the organization and external opportunities and threats. The _________ component specifies what the company wants to accomplish with its marketing activities. The performance evaluation component establishes the __________ standards for evaluating the success of the company's marketing strategies. The marketing strategies component spells out how the company plans to achieve its marketing ___________.
SWOT Analysis marketing objectives measurement objectives
The board of directors was pleased with your summary of Vineyard Vines' current marketing activities. As they make plans to grow the business, they want your recommendations for changes to their marketing mix that might enhance profits. For Promotion Strategy: Vineyard Vines has never done much advertising. But now that the firm is so successful, your promotion budget is large enough to support an ad campaign. Option #1: Your first inclination is to run ads in college newspapers. But you realize that the audience for campus publications could be somewhat limited in size and scope. Option #2: Maybe you should place Vineyard Vines ads on billboards along major interstate highways. That approach would expose the brand to a large population of drivers. What's your promotion recommendation?
Option #1
You work for Emerita's Pizzeria and have been given the task of looking at company goals and deciding how the goals will be accomplished. You understand that planning is a complex process, but you are up for the challenge. Fill in the blanks with the word(s) from the drop-down list that would best complete the passage. Nicolai, the owner of Emerita's Pizzeria, informs you that during the ______________ process, company stakeholders asked themselves the following question: Where do we want the company to be in five years? The __________ staff decided to focus on recruiting new clientele, increasing profitability and productivity, and finding ways to give back to the community. To achieve these goals, all of the company's staff, stakeholders, and customers needed to be on board. You realize that as a ________ employee on the frontlines, your interaction with customers is going to be especially important because you are a representative of the company. You also realize that during ___________, it will be critical to figure out ways to monitor customer satisfaction on a day-to-day basis. Perhaps, it would be useful to use social marketing as a tool to engage customers. Nicolai informs you that he will be meeting with __________ staff to decide on the best ways to support larger company goals. One of the items Nicolai hopes that his staff will focus on during _____________ is coming up with new tools to expedite the pizza-making process and procedures that cut costs.
Stragteic planning, top-level, low-level, operational planning, mid-level, tactical planning
The Marketing Objectives section of the marketing plan provides critical guidance for the organization's marketing activities. However, this section cannot stand alone; marketers also need the insights contributed by other sections. Which of the following statements describes information that the Marketing Objectives section of the marketing plan leaves out?
b. Competitors to watch
You work for an automobile manufacturing company whose sales have been low as a result of the economic downturn. Company executives are strategizing as to how to stimulate sales. Which of the following steps should they take to improve business?
b. Decrease prices and offer more promotions
If the government agency that you work for wishes to implement a system that allows for computer-to-computer information exchanges between buyers and sellers, which of the following forms of e-business in the B2B market would be most appropriate?
b. Electronic Data Interchange
Marketers must pay attention to changes in sociocultural forces in order to send effective marketing messages to their target market. Sociocultural forces occur incrementally, making it easy to miss the shift until it is fully integrated. These can include a change in population characteristics such as age, gender, ethnicity, income, education, and marital and parental status. The degree to which these changes take place determines the amount of diversity present in a particular market, which, in turn results in different consumer buying behaviors. Cultural values affect the way people think about and make purchases, and largely result from one's family. Consumerism is a movement to protect consumers' rights, whose values can be heard from individuals, organizations, or groups. Which of the following statements provides a correct example of consumerism?
a. A snack and beverage company is reacting to consumer complaints about high sugar content in their products.
You work for a music CD distributor that specializes in rare albums that many other distributors do not carry. Because of mp3s, mp4s, and online music streaming and downloading sites, sales have decreased significantly. You realize that the Internet can either help your company or further hinder its mission and goals. You use Porter's five forces as a model to assess the impact of the Internet on your business; you look at potential new entrants, bargaining power of buyers, bargaining power of suppliers, threat of substitute products, and rivalry among competitors. Choose the impact of the Internet likely to make your business more challenging.
a. Consumers can now find rare music online.
You have been hired to advise a food company that is considering whether it should sell one, both, or neither of its two breakfast brands. Here are the facts you are given: Brand A commands a market-leading share in the oatmeal category. A has a large and stable base of loyal customers. However, this category is unlikely to grow in the foreseeable future, as oatmeal preparation takes time and consumers are increasingly focused on convenience. Brand B is a market leader in the small but rapidly expanding category of grab-and-go breakfast wraps. However, it won't be easy to stay ahead of the competition; unless B is sold, the company will need to invest heavily in research and development of healthy fillings and innovative packaging. What is your best advice?
a. Do not sell either Brand A or Brand B
Your company just attended a symposium on sustainability; and as company president, you are interested in raising the level of social responsibility in all that the company does, whether manufacturing goods, marketing, or offering services that improve the lives of individuals in the communities you serve. Which of the following steps can your company take to ensure that its practices are socially responsible?
b. Eliminate the use of paper-based circulars and rely solely on Web-based and social marketing strategies to promote products.
As Progressive Insurance continues to monitor its external environment, they must make decisions based on trends and changes they identify. Please help Progressive navigate changes to their external environment. As the baby boom generation reaches retirement age, their driving habits are likely to change. Once retired, they will no longer be driving to work every day and the number of miles they drive will probably decrease when compared to younger drivers. In addition, most retirees find themselves on a fixed income and actively seek discounts to help them spend less. Progressive executives are looking at offering a product targeted specifically toward retired drivers. Option #1: Pay-As-You-Drive (PAYD) pricing model. Much like pay-as-you-go or prepaid cell phones, you only pay for the miles you drive. Progressive would offer motorists a per-mile rate and a device to plug into their on-board diagnostic port in the car. The device would monitor the number of miles driven and drivers then receive a monthly bill based on that amount. Option #2: Safe Driver Discount model. Because retirees are no longer working, they are less likely to drive during peak times when most accidents occur. As a way to monitor their driving and provide discounts based on safe driving habits, Progressive could offer a smartphone app that allows the phone to track the driving behavior. Customers would be billed monthly based on three criteria: average speed, number of hard brakes, and how fast the driver takes turns. Which product option would be best?
a. Option #1
As Progressive Insurance continues to monitor its external environment, they must make decisions based on trends and changes they identify. Please help Progressive navigate changes to their external environment. Over the last six months, Progressive has noticed a decline in applications for new policies. The latest industry reports indicate similar declines among other home and auto insurers. The Bureau of Labor Statistics reports that the unemployment rate has steadily increased over the last three quarters due to an economic recession. In response to changing economic conditions, Progressive has come up with two different insurance plans to better meet customers' needs. Option #1: Progressive Value. This is full coverage auto insurance, but excludes items like rental car reimbursement and roadside assistance. This basic level insurance includes comprehensive, collision, and liability coverage, but at lower limits than most insurance plans. This plan appeals to cost-conscious buyers looking for a basic auto insurance policy. Option #2: Progressive Enhanced. This is full coverage auto insurance, and includes rental car reimbursement, roadside assistance, travel expense coverage, and concierge services. Roadside assistance is available 24 hours per day, seven days a week. If your car isn't drivable because of damage done more than 60 miles from home, travel expense coverage will pay for meals and lodging. With the concierge service available with the enhanced plan, Progressive will deliver the policy holder's vehicle to their home or place of work after collision repairs have been completed. Consumers will pay a premium for this plan, but many consumers feel the added benefits and services are worth it. Which option will work best in the current environment?
a. Option #1
As Progressive Insurance continues to monitor its external environment, they must make decisions based on trends and changes they identify. Please help Progressive navigate changes to their external environment. Progressive has seen a recent increase in claims in a high crime area of St. Louis, Missouri. A majority of the claims were car break-ins that occurred while policy holders were at work. What is troubling about many of the claims is that none of the policy holders had indicated working in the high crime area when they applied for auto coverage through Progressive. As a result, the policy holders received lower rates than they would have if they had indicated working in this area. In a move to offset the cost of claims, Progressive would like to increase insurance premiums not only for the policy holders who have made recent claims in the high crime area, but also for customers who may work in the area but have failed to indicate this on their insurance application. Progressive executives would like to determine an accurate and efficient way to determine which policy holders' premiums to raise. Option #1: Survey policy holders, asking for updated policy information including home address, work address, and contact phone numbers. Depending on customers' responses, Progressive could then raise the insurance premiums of customers working in the high crime area. Option #2: Mail Progressive Snapshot® devices to policy holders in the St. Louis area. These devices are plugged into the on-board diagnostic port of customers' cars and can record metrics such as speed, acceleration rates, hard brakes, and more. While customers might not be aware, Snapshot® devices are also equipped with an RFID chip which Progressive could use to track the GPS location of its policy holders. Data from the Snapshot® devices could be analyzed to speculate where the policy holder worked. Progressive could then raise the insurance premiums of customers working in a high crime area. Which is the best option?
a. Option #1
Scenario: Your company makes skiing equipment and apparel. You recently launched a number of new features and capabilities on your website that are aimed at the active skier target market. One of the most popular features is the one that sends an alert to skiers when forecasted weather conditions at their favorite ski venues are most favorable for skiing. There are also alerts that contain information about the size of daily crowds at these venues. Which of the following digital capabilities are you directing your head of marketing to base the strategy on?
a. Personalization
Shutterfly is an Internet-based image publishing service based in Redwood City, California, and is mostly known for its photo book line. Like other business firms, Shutterfly conducts a SWOT analysis of its internal strengths and weaknesses, and external opportunities and threats. Choose the SWOT analysis element that represents a Shutterfly strength.
a. Shutterfly constantly upgrades its digital technology and apps.
During their planning process, the staff at a well-known resort decide to try something they have never tried before. The director of marketing and the operations manager decide that it would be vital to have input from as many people and as many diverse perspectives in the planning process as possible. Thus, the company invites a mixture of loyal customers, community members, suppliers, and employees from different departments, and other partners to a town hall to discuss the company's next steps. Moreover, those who could not physically attend the meeting are asked to participate via a discussion set up through the company's social media platforms, including Twitter and Facebook, and via teleconferencing. During the meeting the facilitators discussed previous goals and how those goals could be achieved. Some of the strategies they had been using in the past to reach their targets did not work; consequently, they needed to outline new milestones to support the company's vision for the next 10 years. According to the scenario, which of the following is true?
a. The scenario outlines a tactical planning process because the meeting facilitators are focused on developing objectives that support the company's 10-year vision.
A disgruntled former Lynda employee wrote a blog post bashing the company for paying "starvation level" wages. Now that the attack's gone viral, you're in crisis mode, using every social media channel to respond to the allegation. To assess whether your response is influencing the situation, should you measure activity or engagement?
b. Measure engagement
You would like to invest in one of the profitable business units of a multinational corporation. In a meeting with management, you explain that you'll only consider a unit categorized, according to the BCG matrix, as a question mark. Here are your choices: Unit A has revenue of $27 billion and a profit of $6 billion. While its product is based on a new technology that is rapidly increasing in sales, the product currently lags the market share of competitors. Unit B has revenue of $30 billion and a profit of $7 billion. Its market share is strong and growing. While its product is based on an outdated technology, the product has a loyal following for now. Which of the corporation's two profitable units meets your criterion?
a. Unit A.
For decades Superior Ski Hotel was a thriving New England resort, relying on families who returned faithfully year after year. Its marketers had complete confidence in the loyalty of their longtime customers, so their only promotional campaigns focused on attracting new customers by offering steep discounts on first-time stays. But as competition intensified, Superior began to lose business. Eventually the hotel was forced to close. Which of the following principles of relationship marketing did the company neglect?
a. While it's important to attract new customers, it's even more important to encourage current customers to keep coming back.
You have been working as an intern for your father's construction company and have been asked to sit in on the company re-visioning meeting. Because this is your first time in a marketing planning meeting, you are somewhat confused about the jargon being used. One of the employees explains to you the difference between strategic planning and tactical planning, and asks you to provide examples so she can make sure you understand the concepts. Which of the following is an example of a strategic plan?
a. Within the next 10 years, we want to open 20 locations
You work for a company that manufactures and distributes home design products directly to customers. Annually, the company executives facilitate meetings with middle and supervisory-level management to ensure that all staff are on the same page. This year, you have proposed that to ensure that all company employees understand the goals of the company, each person has to go through a list of tasks and decide whether top management, middle management, or supervisory-level management is responsible for that task. Which of the following tasks would most likely be the responsibility of middle management?
b. Assess infrastructural gaps in the community to determine how company can be socially responsible. d. Develop a tool to help track customer complaints about lost and late shipments.
There's Nothing Like Knitting is a unique new shop that sells unusual varieties of wool. Thanks to heavy advertising leading up to its grand opening, the shop was crowded with eager knitters during its first two weeks. But suppliers were late in shipping their products, so TNLK soon ran short of merchandise. The owners brought backup goods from their warehouse, but the ceiling of the flimsy storage building had leaked and the wool was wet and moldy. Angry customers demanded refunds and didn't come back. Now TNLK is on the brink of bankruptcy. TNLK's problems reflected breakdown in which of the functions of marketing?
b. Buying, transporting, and storing
You are an analyst in the sales and marketing department. You are currently working on a project to determine, which one of two social networking sites your company should advertise on. You suggested to your boss that the company should try both sites for three months then select one of the two based on some measure of website effectiveness. Your boss agreed to place an ad on each site then evaluate the effectiveness of the ads, in terms of percentage of visitors who see them, after three months. In this situation, which of the following measures of website effectiveness would be most appropriate?
b. Click-through rate
Scenario: You are a respected industry authority on social media tools and platforms used in marketing. You have been asked to write an article about these tools and platforms and how companies are using them in their social media marketing efforts. You have decided that a case study approach would work best to convey your thoughts about how social media tools and platforms are used in social media marketing by different firms. In your article, you will describe what five hypothetical companies would like to accomplish with social media. Your five hypothetical companies are as follows: Company A wants to create a virtual community where its customers share their daily experiences with the company's products and post their opinions about related topics. Company B intends to use Tumblr as a social bookmarking site. Company C wants to allow its customers and other users to post a steady stream of updates of varying lengths on products, services, and related subjects. Company D wants its customers to be able to save and manage links to other online resources. Company E wants to create a social media platform where its product experts can discuss features and planned enhancements to its current and future products. The following statements describe how these hypothetical companies should use social media platforms to meet their needs. Which statement is not accurate?
b. Company B is right to choose Tumblr for this purpose.
As Progressive Insurance continues to monitor its external environment, they must make decisions based on trends and changes they identify. Please help Progressive navigate changes to their external environment. Progressive has long been involved with socially responsible efforts, such as donating to charities and implementing energy conservation measures within their offices. However, Progressive has recently received criticism. While their recent profits were about $1.3 billion, some believe its social responsibility efforts are weak compared to those of competitors. As a result, Progressive's CEO is debating between two social responsibility campaigns. Option #1: Recent flooding in California has resulted in an estimated $1 billion price tag to repair roads, dams, and other critical infrastructure. Further, California's governor says this is on top of a $6 billion annual backlog of repairs for roads, highways, and bridges. California has historically been a strong market for Progressive, where they maintain 64% market share of all auto insurance policies. In addition to paying damage and total loss claims from their California customers (an estimated $3 million), Progressive is willing to commit $2 billion to the rebuilding efforts. Progressive's CEO sees this donation as an act of goodwill for community stewardship. Option #2: The U.S. Department of transportation reports that nearly four in 10 veterans live in rural areas where transportation options are limited. In addition, these veterans have to travel great distances to receive medical care and reach employment service offices. Progressive would like to donate cars to 500 deserving veterans each year. This $10 million annual contribution would allow veterans and their families reliable transportation to meet their basic needs. Which option should she choose?
b. Option #2
The board of directors was pleased with your summary of Vineyard Vines' current marketing activities. As they make plans to grow the business, they want your recommendations for changes to their marketing mix that might enhance profits. For Distribution Strategy: Option #1: Sell Vineyard Vines clothing in Walmart. As the largest retailer in the United States, Walmart would make the brand available to a larger, more diverse group of potential customers than Vineyard Vines currently reaches-and at huge discounts. Option #2: Sell Vineyard Vines clothing at duty free airport shops that specialize in premium American goods. This would expose the brand to upscale vacationers from other countries. What's the most promising distribution approach?
b. Option #2
The board of directors was pleased with your summary of Vineyard Vines' current marketing activities. As they make plans to grow the business, they want your recommendations for changes to their marketing mix that might enhance profits. For Pricing Strategy: Option #1: An economist friend urges you to consider cutting the price of all Vineyard Vines products by 20%. This would make the brand affordable to a large cross section of leisure clothing buyers, which your friend believes would boost sales. Option #2: But a retailer you know has good experience using a different approach with other types of clothing. She suggests offering a 20% discount on the brand's most popular products only during peak sales seasons, like back-to-school and Christmas. At other times, pricing would stay at its current premium level.
b. Option #2
Social media platforms differ in the advantages they offer to marketers. Which of the following platforms is effective for distributing messages to influential users but ineffective for bringing users directly to an online store?
b. Social bookmarking site.
From the following list of six marketing questions, choose those related to the Environmental & SWOT Analysis element of the marketing plan:
c. What are the most popular chip snacks in my area, and how are tastes changing? e. What other products will my chips be competing with in the marketplace?
Content marketing involves creating and distributing relevant and targeted material to attract and engage an audience, with the goal of driving them to a desired action. Content for an effective SMM campaign has the following qualities except which one?
d. A focus on product sales.
All these statements are true about the benefits of B2C digital marketing except which one?
d. Customers can exchange products and services with other customers.
A report by Morgan Stanley Research estimates that the sports apparel and footwear industry could add $83 billion in sales by 2020, representing more than 30% growth since 2015. Consider this set of factors and indicate whether it can be categorized as a strength, weakness, opportunity, or threat.
d. Opportunity
Check My Work Venmo is a mobile application that enables people to send and receive money for free as long as they have a bank account, supported debit card, or a Venmo balance to fund payments. Venmo also allows the use of credit cards for a fee. To ensure security, the company uses bank-grade security systems and data encryption to prevent unauthorized transactions or access to personal information. Venmo operates as a mobile wallet, and though it provides services comparable to Western Union and PayPal, it can be managed through smartphones, thus appealing to a wide audience of retailers and others who depend on efficient money exchange. In an analysis of Venmo for your marketing class, you argue that it exemplifies how technological change creates marketing opportunities. What is the core of your argument?
d. Technological change often enables companies to greatly improve customer service.
Marketers must continually assess changes in the competition and make changes in their own competitive strategy because the competitive environment often determines success or failure of a product. Which of the steps below can a marketer for a large retail discount store (e.g., Target, Walmart, Sears) implement as part of the store's competitive strategy as children are headed back to school? Choose the step that you think will be most profitable.
e. Run Early Bird Special discounts on end-of-summer weekends for local school supply lists, toiletries, and clothing.
Your best friend is a contestant on the game show Who Wants to Be a Millionaire? He just exercised one of his "lifelines" by calling you for help with a marketing-related question. Your friend reads the following question to you: Which one of the following statements about Porter's five forces model is true?
e. The model does not include government power.
Scenario: The CEO of your company sent you an email last week in which he praised you and your marketing team's efforts and success in utilizing social media to drive sales revenue increases in the last fiscal year. In the email, he admitted that he did not know much about social media. However, he believes it is a technological trend the company needs to embrace to create a competitive advantage. He wants to meet with you to discuss how you think social media will impact the company's customers and their buying behavior in the years to come, and what strategies can be used to take full advantage of this new paradigm. In preparation for the meeting, he would like for you to come prepared to discuss the following social media facts and figures he has gathered through his conversations with other CEOs in the industry: The majority of online consumers start with search engines when they are gathering information for a potential purchase decision. Sites like Facebook and YouTube can play an effective role in introducing new products. Consumers are increasingly sharing information about products and services on blogs and social networking sites. Online reviews are taken very seriously by a large majority of consumers. The impact of social media on buying behavior once varied by age, but is now the same across age groups. Which of the following statements would you make to the CEO in reference to errors within his social media facts and figures?
d. The impact of social media on buying behavior no longer varies by age.
Your investment banker has presented you with the following list of business characteristics of a small company your company is considering acquiring: Market leadership Large inventories Lack of management depth Cost advantages Management turnover Excess manufacturing capacity relative to market Based on this list of characteristics, which of the following statements is true?
d. The list contains more weaknesses than strengths.
You have been hired as a marketing director for Terraineous, a hiking apparel and footwear company. Your most urgent problem is that sales of its newest product, a hiking boot, are failing to meet projections. In analyzing the situation, you learn that the company is falling short in customer service; no one has been designated to answer buyers' questions about how to clean and care for the boot. When you meet with the CEO, you want to pinpoint exactly which variable of the marketing mix is at the root of this problem. What should you tell her?
d. The problem stems from the product variable, because this variable may involve decisions about customer service.
Macy's, a large department store chain and one of Under Armour's (UA) key retail partners, is closing a number of stores across the United States and will now operate roughly 730 locations, versus 850 in 2009. Consider this set of factors and indicate whether it can be categorized as a strength, weakness, opportunity, or threat.
d. Threat
Regarding the major ways of measuring an e-commerce website's success, all of the following statements are true except:
d. Total number of visitors to a site is a more accurate measure of potential revenue than total number of unique visitors.
You have just graduated from college and are searching for jobs online. Your ideal position would be in cause marketing. Which of the following positions would come closest to your ideal?
d. Your state's Department of Environmental Protection is seeking a candidate who will plan an ad campaign to promote the theme "Save Our Trees: Don't Waste Paper."
You are the head of the corporate acquisitions team at a major biotech company in Atlanta, Georgia. Your team has identified a couple of attractive acquisition targets that you would like to recommend to the Board of Directors for consideration. However, before you make a recommendation, you want to make sure that none of the acquisitions will raise any regulatory issues. In order to evaluate all potential regulatory issues, which one of the following analytical actions should you have your team complete prior to making any recommendations?
e. A thorough analysis of the provisions of the Celler-Kefauver Act, the Clayton Act, and the Sherman Antitrust Act
Your company manufactures consumer electronics products. Historically, you have acted primarily as a wholesaler of these products. However, you now recognize there is a huge opportunity to market your products directly to customers via your own marketing website. You have decided to move forward with this strategy but you want to take steps to minimize any issues with your supply chain partners. In order to avoid any issues, which of the following do you need to take steps to mitigate?
e. Channel conflicts
You recently assumed the role of head of digital marketing at one of the largest automobile manufacturers in the world. Your mission is to fully harness the power and potential of digital marketing to enhance the automobile purchasing experience of your customers. The first project you are working is code-named "You design it and we build it." The project entails giving the customer the ability to design their own vehicle on the company's marketing website. Specifically, the customer will be able to do the following: Choose the color of the car. Choose the engine size. Choose the upholstery. Choose the tires and the rims. Choose when and where the car will be delivered Which combination of digital marketing capabilities are you providing to your customers with this "You design it and we build it" project?
e. Right-time marketing and personalization
The central focus of the marketer's activities is to develop mutually beneficial relationships with customers and potential customers. If the marketer is able to convince the customer to buy the firm's products, then the customer's lifetime value to the firm is enhanced. Marketers also seek to encourage customers to _________________ the firm's products because that will ____________ the customer's lifetime value to the firm. Which of the following terms/words best express what marketers should do to enhance a customer's lifetime value to the firm?
e. recommend; increase
Fill in the blanks with the word(s) from the drop-down list that would best complete each passage: _________ measures how much time users spend on a website. The percentage of website visitors who make a purchase is known as ___________. An ____________ is any time an ad is shown to an online consumer. For e-commerce sellers, the lower the __________, the better.
engagement, conversion, impression, conversion cost
Milagros works for a major manufacturer and distributor of Caribbean foods and products as a marketing strategist. Milagros and her team are brainstorming some ideas that can help the company stay competitive as it expands. Fill in the blanks with the word(s) from the drop-down list that would best complete the passage. As the company plans to expand globally, Milagros and her team must engage in ________, the process through which they decide their price points, which products they are going to carry at their flagship stores around the world, and the company's promotional campaigns. As Milagros's team outlines their short- and long-term _________, they also have to map out the ____________ that will help them reach their targets. Milagros notes that the CEO of the company has a seven-year vision and _______________ for the company, so all of their activities must be in alignment with those proposals, and they must make sure that they have enough funds and resources to implement their ideas. One of the other employees reminds the team that ___________ is just as critical because it will help the company build the foundation in the immediate future to reach longer-term goals.
marketing planning, goals, objectives, strategic plans, tactical planning
The marketer cares very much about what people think, how they feel, what they believe, and how they live. Without this knowledge, marketing strategies will be destined for failure. The marketer must stay tuned in to the sociocultural forces in the marketing environment because these are the forces that will assist the marketer in understanding what people think, how they feel, what they believe, and how they live. The following passages describe some aspects of sociocultural forces. Fill in the blanks with the word(s) that best complete(s) each passage. Consumerism exerts legal, ___________, and economic pressures on businesses. Changes in a population's ___________ characteristics, like age and ethnicity, help define individual behavior. A major marketer of rice offers a range of varieties to satisfy the distinctive tastes of Chinese, Japanese, and Vietnamese consumers. By catering to its different Asian buyers, the marketer is demonstrating sensitivity to ___________ diversity.
moral, demographic, cultural
Fill in the blanks with the word(s) from the drop-down list that would best complete the passage: The growth in online shopping is driven by a shift in consumer ________. In addition to competitive pricing, the top advantages of online shopping cited by consumers are _________ and __________. Many online shopping sites feature customer ____________.
preferences, access and convenience, personalized service, reviews
Fill in the blanks with the word(s) from the drop-down list that would best complete the passage: Measuring the success of a social media marketing plan includes such factors as overall _________. _________ often leads directly to increased audience _________. Examples of endorsement-like audience engagement include ________ and ___________.
reach, engagement, activity, shares, retweets
The state of the macroeconomic environment has a significant impact on consumers' willingness and ability to purchase goods and services offered by companies. For example, when the macroeconomic environment is contracting (i.e., in recession), consumers may have difficulty finding jobs and earning money to fund their purchases. On the other hand, when the macroeconomic environment is expanding (i.e., GDP is growing), consumers are typically more confident about their personal finances and more willing to spend on goods and services. Fill in the blanks with the word from the drop-down list that would best complete the passages: To qualify as a recession, a period of economic contraction must last at least ______ months. When the economy slows, marketers are more likely to succeed with products that are ___________ rather than ___________. People might think that _________ is good for consumers because prices fall. However, this condition ultimately hurts the economy by causing ___________. During a recession, consumers' buying power normally ____________.
six, value-priced, premium-priced, deflation, layoffs, decreases
You work for a not-for-profit organization that is committed to sustainable development and trains urban youth to develop eco-friendly businesses. As you study the organization's business plan and reports, you attempt to categorize the tasks and responsibilities you see presented. The following passages classify various tasks based on the categories of operational planning, tactical planning, and strategic planning. Fill in the blanks with the categories from the drop-down list that best complete the passages; each category may be used more than once. Applying for a sustainable development grant aimed at creating community gardens involves___________ Drafting programmatic reports on last year's Urban Youth Coalition Conference involves____________ Hiring a new chief executive officer (CEO) to usher in an era of microfinance programs for entrepreneurial youth involves neither __________ nor tactical planning. Deciding whether the organization will merge with Grassroots, Inc., a multinational company involves neither operational planning nor ____________. Scheduling staff to attend the morning plenary on the effects of globalization on the environment and climate change involves _____________
tactical planning, operational planning, operational planning, tactical planning, operational planning
Fill in the blanks in the following passages about social media marketing concepts using the words from the drop-down list. Content marketing is the creation of relevant and _________ material to attract and _________ an audience. Social media marketing ________ the audience participation in the message. Social media marketing content should focus on the _________, not the __________.
targeted, engage, solicits, audience, and organization
You are conducting an analysis of competitive forces facing the pharmaceutical company you work for. You're especially struck by the fact that companies in your industry generally need government patents and approvals from the US Food and Drug Agency before they can legally market many of the most profitable products. These realities primarily influence the competitive force identified in Porter's five forces model as _____________, which is based on the __________ for entering a market or industry. Fill in the blanks with the words from the drop-down list that would best complete the preceding sentence.
threat of new competitors, level of difficulty
