Principles of Marketing Midterms
Operational Planning
where managers develop specific programs to meet goals in their area of responsibility
Competitive Environment
where marketers of directly competitive products and marketers of substitue products compere for consumer purchases
SWOT Analysis
an important strategic planning tool that helps managers analyze the internal and external environment to assess strengths, weakness, opportunities, and threats
Risk taking
Given that a farmer's products are subject to unpredictable influences such as weather and pests, a farmer could be said to be engaging in which of the Eight Universal Marketing Functions?
prosperity
In Australia, consumer spending in the past few months has seen an upward trend, and buyers are willing to spend more on premium brands. From this pattern, we can say that Australia is in the _____ stage of the business cycle.
An app designer making her services available to clients
In the context of marketing, which of the following is the best example of selling?
Growth in services such as banking and restaurants
Which of the following usually indicates a strong economy?
Inadequate financing capabilities
Which of the following would qualify as an example of a firm's weakness?
Relationship Marketing
refers to the development, growth, and maintenance of long-term, cost-effective relationships with individual customers, suppliers, employees, and other partners for mutual benefit
social
Dove Skincare maintains a Facebook page where customers can ask product questions, share testimonials, and discover special promotions. Dove is an example of an organization operating in the ______ era.
Question Marks
According to the BCG market share/market growth matrix, _____ typically require more cash than they generate.
Technological Environment
application of knowledge based on discoveries in science, inventions, and innovations
monopoly
A market structure in which a single seller dominates trade in a good or service for which buyers can find no close substitutes is called a(n) _____.
The suppliers have lesser bargaining than the buyer.
A shoe manufacturer has multiple suppliers for leather. Based on this information, which of the following statements is true?
strategic planning
A two-day offsite retreat was held for a team of executives of a major hospital including the hospital's CEO, President, and Vice-Presidents. Over the course of the two-days, the executives engaged in brainstorming sessions and worked together to articulate the direction the hospital should take and specific objectives that should be achieved over the next 5 years. The team focused considerable attention to objectives related to the Affordable Care Act and rising numbers of patients eligible for Medicare. The executives were engaged in _______.
organization marketing
A university sells customized sweatshirts, pullovers, and jerseys to its students and staff. This is an example of _____.
increased costs.
Advantages of technology include all of the following except:
tactical planning efforts
An event management company decided to use radio advertising in order to promote an upcoming music festival. The executives of the company suggested various activities that could be used for the radio campaign. These activities are a part of the company's _____.
ownership of valuable patents.
An example of a firm's strength discovered by a SWOT analysis might be:
threat
Anheuser-Busch and its stable of beer brands including Michelob Ultra, Bud Lite, and Budweiser have faced significant inroads in sales by craft breweries such as The Boston Beer Company and Sierra Nevada Brewing Co. The craft breweries represent a(n) ______ to Anheuser-Busch.
Budget-minded families with growing children
As the marketing director for Kia Motors, you've been tasked with marketing a new, moderately priced vehicle that runs on gas or electric and meets high safety standards. It seats up to five, holds a lot of cargo, and features an onboard vacuum cleaner. Which of the following market segments will you focus on primarily?
Target markets
Assume you want to increase the number of customers by applying the marketing concept. Which of the following strategies would be most consistent with this approach?
Promotion strategy
At the health food product manufacturer where you work, your boss, the Chief Marketing Officer, has just asked you to develop a strategic plan for introducing a new high-energy protein bar. You've just come up with a great idea: to give away free samples on college campuses, which are loaded with busy people on the go who need more energy. If they like the product, it's guaranteed that this market segment will talk about your product on social media, thus creating a buzz. In which section of your strategic plan does your idea belong?
Event
Austin, Texas is host to a popular festival, South by Southwest (SXSW).. It has released dates for the new year and invites participants for the unique music, film, and interactive events or sessions from March 10th through 19th. Which category of nontraditional marketing would best characterize the marketing activities to attract attendees for the multi-day festival?
How should we compete?
Best Buy has decided to open small format stores that will focus on selling cellular phones and accessories. Marketers believe the stores should be located in small strip malls and plan on advertising new locations in newspaper and magazine advertisements. Best Buy is currently asking themselves which of the questions below in regards to creating a competitive strategy?
power of new entrants
Blockbuster Video went out of business in 2013, as they were negatively impacted by streaming services such as Netflix. This demonstrates ________, one of Michael Porter's competitive forces.
discretionary
Brock recently graduated from college and began a job as a media analyst earning $50,000 per year. Brock wants to start saving for retirement and use a weekly budget to stop from spending too much money. It is determined that Brock's _______ income is $120 per week for entertainment, dining out, clothes, and other non-essential items.
generate repeat sales.
By converting indifferent customers into loyal ones through relationship marketing, companies can:
Threat
Cardio Kick is a fitness studio owned by Michelle that uses boxing training and plyometric exercises to enhance the fitness of participants. Michelle is working on a SWOT analysis for the business and wondering how to classify the consumer perception that boxing is violent and male dominated. How would you classify this consumer perception about boxing?
Bargaining power of buyers
Which of the following is a dimension of Porter's Five Forces model?
strategic
Comcast's NBC division acquired Universal Studios and the highest executive who approved this acquisition was most likely Comcast's CEO. This decision is the direct result of _____ planning process at Comcast.
Chief Operating Officer
Companies such as Ford Motor Company often grow their business by seeking new markets. Which of the following would most likely be responsible for making the decision regarding Ford Motor Company establishing a manufacturing facility in India?
threat of new competitors.
Consumers are increasingly showing a preference for fulfilling their product needs via smartphone applications and online shopping. The relative ease of creating a web-based storefront is posing a significant threat to brick-and-mortar retailers and driving many established retailers to close their doors. According to Michael Porter, this is an example of
customers have concerns about the privacy implications that are impacted by this technology.
Discount retailer, Target, has technology that can track where customers are in the store and send them appropriate notifications through text message that alerts the customer to specials such as sale prices or limited edition products. Target likely does not use this technology because:
Recession
During which phase in the business cycle do marketers consider lowering prices and increasing promotions that include special offers to stimulate demand?
middle management, such as the merchandising and advertising managers.
Employees of Popsie Inc., a small grocery store chain, are working on its tactical plans. The personnel most involved in this level of its planning process would be its:
Marketing strategies
Enterprise Holdings seeks to achieve a 95% customer satisfaction rate, which is one of its marketing objectives. One way the company can achieve high levels of customer satisfaction is through the vehicle selection and maintaining strong relationships with automobile manufacturers to ensure Enterprise has the vehicles in stock that customers desire to rent. If Enterprise were developing a written marketing plan, which section of the plan would contain the information related to maintaining strong relationships with automobile vendors to ensure they have the vehicles customers wish to rent?
Marketing Plan Components
Executive Summary, Environmental Analysis, SWOT Analysis, Marketing Objectives, Marketing Strategies, Marketing Tactics, Key Performance Indicators
Four types of Utility
Form, Time, Place, Ownership
cause
Fred Foods Inc. provides free cereals and biscuits to support a program that aims to end hunger in various emerging nations. This is an example of _____ marketing.
The purchasing department of a defense contractor invites its suppliers to attend an annual golf outing.
In the practice of relationship marketing, the definition of a customer is taken to another level. Which of the following best illustrates how a company practicing relationship marketing is different from a traditional transaction-based marketer?
higher standards of living.
It has been seen that periods of major innovations often lead to:
Tactical planning
Jose is the social media manager for a children's museum and is making decisions about the best mix of social media tools to utilize in order to achieve the objective of increasing the number of family memberships by 10% during the year. Jose likes to use Twitter, Instagram, Facebook, and Pinterest to reach the museum's desired target market but spends most of the time developing the appropriate content and determining the frequency of posts. Which term best describes Jose's activity related to determining the use of social media?
Star
Kraft Mac & Cheese first hit the shelves in 1937 and remains a favorite product for families. The product has undergone changes in formulation as well as packaging over the years and Kraft recently reformulated the product so it does not contain any artificial ingredients. Sales of Kraft Mac & Cheese in the familiar blue box continue to be strong and help Kraft fund other products since it generates such a strong cash flow. Kraft continues to invest in its Mac & Cheese brand through both research and development as well as promotional activities. It's likely that Kraft views Mac & Cheese as a ______ according the BCG matrix.
strategic
Long-term plans focusing on those organizational objectives that will significantly affect a firm are usually referred to as _____ plans.
leverage.
Matching an internal strength with an external opportunity produces a situation known as:
Opportunity
Michelle is the owner of Cardio Kick, a fitness studio and is performing a SWOT analysis as part of a strategic planning exercise. Michelle knows that consumers aged 18-30 are especially interested in staying fit and eating clean, and is wondering how to classify this trend. How would you advise Michelle on this item?
Strength
Michelle is the owner of Cardio Kick, a fitness studio that uses boxing training and plyometrics to help members stay in shape or get in shape. Michelle is very creative and changes the workout everyday so that a different body part is emphasized during the workout. This helps balance training, improve results for members, and decrease boredom among members. If Michelle were performing a SWOT analysis, how would you classify the ability to be creative and change daily workouts?
strength
Michelle is the owner of a fitness studio called Cardio Kick and has been a personal trainer and certified trainer for 10 years. Michelle's certification and experience in personal training would be classified as a(n) _____ when performing a SWOT analysis.
inflation
News reports from Zimbabwe indicate that a small pack of locally produced coffee beans costs approximately 1 billion Zimbabwean dollars, an amount that would have bought 60 new cars less than ten years ago in the same country. It can be surmised that Zimbabwe is experiencing extremely high levels of _____, which has spiraled out of control in the past ten years.
form
Noel Pvt. Ltd. combines metal, rubber, and other components in the production of appliances. In doing so, the company creates _____ utility.
tactical
Preparation of quarterly and semiannual plans by personnel such as the general sales manager or advertising director would be classified as _____ planning.
Categories of Marketing
Product, Person, Place, Cause, Event, Organization
Marketing Mix variables
Product, Price, Place/Distribution, Promotion
Five Eras of Marketing History
Production, Sales, Marketing, Relationship, Social
reduce the threat of new entrants.
Promotional schemes like frequent shopper programs provide incentives to loyal buyers. Considering Porter's Five Forces model, such offers will:
increasing promotional efforts
Recently, a top economist to the Federal Reserve bank predicted that market conditions would be favorable with low levels of inflation and low unemployment rates. Which of the following might be a response by marketers to this economic forecast?
Star
Some consumers are concerned about fuel economy and reducing their carbon footprint and may prefer a hybrid or electric vehicle. The market for hybrid cars is growing and Toyota has a strong position in the market due to the high level of sales of their Prius model. If Toyota was using the Boston Consulting Group growth/share matrix to map the position of the Prius, how would it be classified?
place
State bureaus of tourism and conventions typically engage in _____ marketing.
direct
Technological changes and the increased use of Wi-Fi has enabled companies such as Netflix to create a large consumer following and changed consumer's viewing habits. Netflix has emerged as an entertainment company offering original content that's not available on cable or satellite networks. Netflix is a _____ competitor to cable and satellite companies.
place
The Today Show partnered with the U.S. National Parks in 2016 to celebrate 100 years of national parks. Various Today Show regulars such as Al Roker were featured visiting the parks. This campaign is an example of _____ marketing, a type of nontraditional marketing.
strategic
The U.S. Sports and Fitness Federation is determining where they should build their permanent training facility. They want it to be located near a populated center but it must also provide ample access to those who don't reside in cities. The federation is engaged in _____ planning.
strategic planning process.
The basic objectives or goals of an organization are derived from its:
Gross domestic product
The overall health of the economy has a significant impact on consumers' ability and willingness to purchase goods and services. The most reliable measure of the economy's health is the sum of all final goods and services produced in the country in a given period. This measure is called ____________.
market share against market growth potential.
The performance framework developed by the Boston Consulting Group (BCG) plots:
Identifying the store's policy regarding donations of food product to local food banks
The store manager of a Target store location in Evansville, Indiana has assembled the department managers for an off-site one day planning meeting. Which of the following would be an example of the type of decisions the department managers might make?
Supervisors are tasked with developing specific programs and tactics for achieving the goals of their responsibility areas.
There are many roles played in the planning process for a typical company. Depending on the organizational level, the planning focus and the effort devoted will be different. Which of the following statements is true about planning within an organization?
to offer one free bagel with the purchase of six and three free bagels with the purchase of a dozen.
There's a new pricing strategy at Big Apple Bagel Bakery, which means they're going:
Porter's Five Forces
Threat of new entrants, threat of substitutes, bargaining power of buyers, bargaining power of suppliers, rivalry among existing competitors
Supplier power
Tiffany has worked in the restaurant industry since graduating from cooking school and has decided to open a restaurant. Like most restaurants, Tiffany will have a variety of beverages to offer customers but was surprised by the proposals from Pepsi and Coca-Cola, which were quite high. Due to the high costs associated with offering a brand name soda, Tiffany's profits on carbonated beverages will be reduced. Which of Porter's competitive forces does this exemplify?
Competitive companies producing similar products
Which of the following is NOT an element of the marketing strategy for any given product?
distinctive competencies
Which of the following is NOT one of Porter's five Forces related to market competition?
Against which competitors should we compete?
When determining a competitive strategy, marketers ask all of the following questions except:
low inflation and low unemployment.
When marketers offer new products, increase their promotional efforts, and expand their distributional limits, it is a sign of:
dog
YOU Inc., a radio cassette manufacturer, sold its business due to poor market shares. According to the BCG Matrix, the firm sold its business because the business had become a _____ as seen in its poor prospects and performance.
Set room prices comparable to other high-end, boutique hotel chains
You and your partners are investing millions in creating a small chain of five-star boutique hotels in six of the finest cities in the world. Which of the following tactics fits best with your premium pricing strategy?
Contacting all of the vets in the area to establish an estimated number of dogs in your town
You are about to open a dog grooming business. Which of the following activities best represents your efforts to secure market information?
Daily and weekly plans
You are excited about being promoted to general sales manager, a middle management job, but you feel a bit overwhelmed as you anticipate the demands of the new position. A colleague tries to help, pointing out that you will also be shedding some responsibilities. Which of the following will not be part of your new job?
indirect
You own a high-end restaurant competing for diners seeking fine food and dining. Now you're worried, because a gourmet takeout store just opened across the street. The new store will mean increased _____ competition.
Licensing the leading snack foods producer to create a new line of branded frozen juice bars
Your fruit juice brand is known worldwide, but you're always looking for new tactics to incorporate into your distribution strategy. Which of the following options do you find most appealing in terms of expanding your distribution network?
Deflation
_____ can lead to a damaging downward spiral, causing a freefall in business profits, lower returns on most investments, and widespread job layoffs.
Boston Consulting Group (BCG) matrix
a portfolio analysis framework that enables managers to plot the relative position of each business unit, brand, or product on the basis of industry growth rate and relative market share
Consumerism
a social force within the environment that aids and protects the consumer by exerting legal, moral, and economic pressures on business and government
social responsibility
accepting an obligation to give equal weight to profits, consumer satisfaction, and social well-being in evaluating a firm's performance
Eight Functions of Marketing Physical Goods
buying, selling, transporting, storing, standardizing and grading, financing, risk taking, securing marketing information
Economic Environment
consist of factors that influence consumer buying power and marketing strategies
Tactical Planning
defines how activities specified in the strategic plan will implemented
Strategic Business Units (SBUs)
key business units within diversified firms
marketing ethics
marketer's standards of conduct and value
Marketing Environment
provide the frame of reference from making marketing decisions
Political-legal Environment
the component of the marketing environment consisting of laws and regulations to maintain competitive conditions and protect consumer rights
Target Market
the group of people toward whom the firm aims its marketing efforts and ultimately its merchandise
Planning
the overall process of anticipating conditions and determining the best way to achieve organizational objectives
Utility
the power of a good or service to satisfy the wants of customers
Marketing Planning
the process devoted specifically to achieving marketing objectives
Marketing Planning Process
the process for developing a marketing plan largely mirrors the sections of a marketing plan
Marketing
the process of creating, communicating, and delivering value to customers
Strategic Planning
the process of determining long term objectives and adopting courses of actions to achieve these
Social-cultural Environment
the relationship between marketing, society, and culture
Transaction-Based Marketing
traditional view of marketing as a simple exchange process
