Principles of Marketing Study Guide
What is a primary difference between business and consumer buyers?
Business buyers generally place larger orders than consumer buyers
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
Which of the following describes a company hiring a foreign firm to produce a designated volume of its product to specification?
Contract manufacturing
Which category of income are marketers most interested in?
Disposable income
A firm can survive in the long run only if its products are sold below cost.
False
Why would a company use the undifferentiated strategy?
The needs of individual consumers in the target market for a specific product are similar, so the organization can satisfy most customers with a single marketing mix
Which of the following is NOT a characteristic of a consumer market?
Their purchasing decisions are always made by only one individual
Which of the following is NOT a physical surroundings factor influencing buying decisions?
Time
A customer must have a particular brand and will accept no substitutes. This is termed brand
insistence
A marketing manager for a small laptop manufacturer is analyzing the potential effects of political, legal, sociocultural, and economic forces on the firm's operations. The marketing manager is examining the ____ that influence(s) the firm's strategy.
marketing environment
Johnson Appliances owner Justin Johnson feels that his organization has access to a great deal of information generated both inside and outside the firm, but much of this information is presently going to waste. Apparently, Justin needs to develop a
marketing information system
Marketers that attempt to influence and change the various environmental forces have a(n) ____ response to these forces.
proactive
The five major stages of the consumer buying decision process, in order, are
problem recognition, information search, evaluation of alternatives, purchase, and postpurchase evaluation.
Making modifications to packaging or brand names involves the ____ component of the marketing mix.
product
If Glad expresses concern that its plastic bags and storage products are having too great an impact on the pollution of groundwater under landfills, this concern is directly related to the firm's
social responsibility.
Marketers of computer software, music, and books are particularly affected by cultural differences in
standards regarding intellectual property
Successful business organizations should take actions to convert internal weaknesses into ____ and external threats into ____.
strengths and opportunities
The step of the personal selling process in which a salesperson contacts a potential customer is called
the approach
Franchising offers all the following benefits for franchisors except
the franchisee's revenue stream is fairly consistent because franchisors pay fixed fees and royalties
Price is a key element in the marketing mix because it relates most directly to
the generation of total revenue
The target audience for an advertising campaign is the
people toward whom the advertisements are directed
____ uses the internet, mobile, and interactive channels to develop communication and exchanges with customers.
Digital marketing
Which of the following is true about characteristics of business buying?
Discussions and negotiations associated with business purchases can require considerable marketing time and selling effort
When buying materials to use in manufacturing mattresses, the purchasing agent for Casper Sleep considers a variety of factors. Which one of the following is least likely to concern this buyer?
Does the supplier consistently deliver on time?
After doing considerable shopping, Pax has just decided what brand and type of athletic shoes to buy and where he's going to buy them. In what stage of the consumer buying decision process is Pax?
Evaluation of alternatives
Although difficult to measure, brand loyalty represents the value of a brand to an organization.
False
An individual's after-tax income is called his or her discretionary income, which is used for spending and/or saving.
False
Changes in cultural values have little effect on people's needs for products.
False
Exploratory research is concerned with identifying the characteristics of markets or categorizing market activities.
False
Marketing consists primarily of selling and advertising
False
Public relations efforts are directed primarily toward external stakeholders such as customers and the media.
False
Public relations is rarely used by nonprofit organizations to achieve their goals.
False
Segmentation variables are characteristics of individuals, groups, or organizations in a total market.
False
The brands used for co-branding cannot be owned by the same company.
False
The manager of Central Market is interested in asking consumers what they think about the store's new layout and expanded produce selection. If the manager would like to obtain a high response rate and have the study conducted as quickly as possible, which data collection method would you recommend?
Telephone survey
Sellers of farm produce would be likely to use an undifferentiated targeting strategy.
True
The Federal Trade Commission would be the most likely regulatory agency to curb false advertising.
True
The concentrated targeting strategy is one in which an organization directs its marketing efforts toward a single market segment through one marketing mix.
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
The strength of one's buying power depends partially on the state of the economy.
True
Which of the following uses tools and methods—including software to track, store, and analyze data—to measure and interpret the effectiveness of a firm's marketing activities?
Marketing analytics
Recognition and recall tests are posttest methods based on
Memory
Nike manufactures athletic shoes, shorts, shirts, and a variety of other athletic products. These products make up Nike's product
Mix
One of the most important benefits of e-marketing is the ability of marketers and
One of the most important benefits of e-marketing is the ability of marketers and
United Airlines introduced a new "basic economy" seat category to better compete with discount airlines like Southwest and Spirit. Which of the following aspects of the marketing mix is United likely altering?
Price
A potato chip company advertises that its newly launched product can lower cholesterol, although the company cannot provide evidence to substantiate this claim. This situation involves an ethical issue related to which element of the marketing mix?
Promotion
During which stage of the consumer buying decision process does a consumer decide from which seller he or she will buy the product?
Purchase
Quality Tools, Inc., purchases air hammers, wrenches, and other hardware items from a variety of manufacturers and sells them to hardware stores at a price that includes a profit for Quality Tools, Inc. The company would be part of what type of business market?
Reseller
Which of the following consumer decision-making processes will probably be used in purchasing toothpaste?
Routinized response behavior
A market is a group of people who, as individuals, have needs for products in a product class and have the ability, willingness, and authority to purchase such products.
True
A target market is a specific group of customers on whom an organization focuses its marketing efforts.
True
Brand recognition exists when a customer is aware that the brand exists and views it as an alternative to purchase if the preferred brand is unavailable or if the other available brands are unfamiliar to the customer.
True
Customer advisory boards are small groups of actual customers who serve as sounding boards for new product ideas and offer insights into their feelings and attitudes toward a firm's products, promotion, pricing, and other elements of marketing strategy.
True
Environmental analysis helps managers identify potential threats and opportunities linked to environmental changes.
True
Factors affecting pricing decisions can include demand, distribution, and the way in which the product is promoted.
True
Many laws that directly influence marketing activities were enacted either to preserve a competitive atmosphere or to protect consumers.
True
When a firm's management is making the final selection of specific target markets to enter, it should consider whether the organization has the financial resources, managerial skills, expertise, and facilities needed to effectively compete in the selected segments.
True
Why should a benchmark statement be included in advertising objectives?
Without a reference point, it is difficult to determine to what degree objectives have been accomplished
If a marketing researcher is interested in observing group interaction during an informal, unstructured, and open-ended data collection process, he or she should use
a focus-group interview
A business partnership between a domestic firm and a foreign firm is known as
a joint venture
The Foreign Corrupt Practices Act of 1977 makes it illegal for U.S. firms to
attempt to make large payments or bribes to influence policy decisions of foreign governments
The effectiveness of an advertising campaign can be measured
before, during, and after the campaign through the use of pretests, inquiries, and posttests
Because most ethical choices pertaining to marketing decisions are jointly made, an organization must ensure its ____ reflects the organization's values, beliefs, and norms.
organizational or corporate culture
The ____ stage of the personal selling process is when the salesperson asks the prospect to buy the product.
closing
If Woody's Inc., a producer of home siding, decking, and other wood products, focused its marketing efforts to home construction companies only, it would be using a(n) ____ strategy. If it sold the same products to both construction companies and DIY retailers such as Home Depot, it would be using a(n) ____ strategy
concentrated and differentiated
A junior marketing executive at HealthyStart Cereals suggests increasing the package size and price of its best-selling brand without increasing the amount of cereal inside the box. Her superior warns that this might be a bad idea because HealthyStart's long-term survival, like most companies, depends on
creating and maintaining satisfying exchange relationships
Research that is conducted to clarify the characteristics of certain phenomena to solve a particular problem is called ____ research.
descriptive
Consumers buying products online have dramatically affected the ____ variable of the marketing mix.
distribution
The Ethan Allen furniture company collects information about a wide variety of competitive, economic, political, legal and regulatory, technological, and sociocultural forces that affect its marketing activities. This process is called
environmental scanning.
Suppose that marketers at Unilever are trying to determine whether the use of free samples of Axe body spray was the reason for a sales increase in a particular store. The type of research conducted to answer this question is
experimental
The extent of Jaimie's participation in global business is selling the batteries it manufactures to companies in Spain. In this case, Jaimie is a(n
exporter
The forces that other people exert on one's buying behavior are called social influences. These come from reference groups and opinion leaders, digital influences, social classes, culture and subcultures, roles, and
family
Burke Marketing Research is concerned about using surveys to conduct a marketing research project because
fewer people are willing to participate.
Marketers generally view ____ as the minimum price a product can be sold for.
fixed costs
A special form of licensing in which one company grants another company the right to market its product and name in accordance with its standards in exchange for a financial commitment is called
franchising
As Mateo reads the copy for South Beach Hotel's upcoming magazine ad in Miami Style, he worries that no one will spend the time to read all the details of the facilities his resort has to offer. Wanting to have the greatest impact, Mateo focuses his creative efforts on the
headline
Organizations should define themselves not according to the products they produce but according to
how they satisfy customers.
If Kyrgyzstan levied a duty on all goods purchased from the United States and other countries outside its borders that were brought into Kyrgyzstan, its businesses and citizens would be paying a(n)
import tariff
Madison goes to Kmart to purchase school supplies for her two children. As she is approaching the checkout counter, she sees a vase she just has to have and buys it immediately. Madison's purchase of the vase is an example of
impulse buying
A target market
is a specific group of customers on whom an organization focuses its marketing efforts.
A major disadvantage of personal selling is that it
is very expensive per contact
If Caterpillar wished to reach the market in Malaysia but was leery of a direct investment in the country, it might provide a Malaysian operation with the knowledge to produce and market its products in exchange for a commission. This type of arrangement is called
licensing
During the introduction stage of a successful product, profits are usually
negative and increasing
Favorable conditions in the marketplace environment that could produce business rewards for the organization if acted upon properly are called
opportunities.
McDonald's supports and funds Ronald McDonald houses for the families of terminally-ill children to stay in to be near their loved ones. McDonald's action demonstrates the fulfillment of ____ responsibility.
philanthropic
Business markets are typically divided into four categories. These categories are
producer, reseller, government, and institutional
If India, in an attempt to bolster the sales of its own auto manufacturers, decided to limit the number of automobiles that could be brought in from other countries, India would be using a(n)
quota
The percentage of consumers in the target audience actually exposed to a particular advertisement in a stated period of time is the definition of
reach
Wegmans Food Markets is revising its marketing plan for the upcoming quarter. Wegmans typically focuses on its wide variety of products and its high-quality customer service, having very few weekly "sales." However, during the upcoming quarter, Wegmans plans to focus on price and value, and promote weekly "values" instead. Wegmans is most likely operating in which stage of the business cycle?
recession.
Marketing ethics
refers to principles and standards that define acceptable conduct in marketing.
The three purposes for which individuals or groups can use products in order for it to be considered a business market are
resale, use in daily operations, and direct use in producing other products
Individuals and business organizations that buy finished goods and resell them to make a profit without changing the physical characteristics of the product are classified as ____ markets.
reseller
Thomas Holden runs a successful wholesale business that sells equipment to restaurants throughout the Southwest. He is considering purchasing his own fleet of trucks to deliver the equipment instead of relying on a shipper as he is currently doing. This most closely represents
the best way to distribute his products.
The cost per thousand (CPM) indicator shows
the cost to expose 1,000 people to a one-page magazine advertisement
Coca-Cola has in recent years developed or acquired new non-cola products to appeal to changing consumer preferences for less sugar in their products. The most likely factor in this change is changes in
the sociocultural forces of the marketing environment.
Marketing research is best defined as
the systematic design, collection, interpretation, and reporting of information to help marketers solve specific marketing problems or take advantage of market opportunities.
During the personal selling process, a salesperson, if possible, should handle objections when
they arise
In today's marketing environment, competitors can take on many forms. For example, a Starbucks latte can be seen as a competitor to an issue of The New York Times. In this circumstance, these two products are described as ____ competitors.
total budget
All of the following are steps in the marketing research process except
understanding your customer
A trading company acts like a ______, taking on much of the responsibility of finding markets while facilitating all marketing aspects of a transaction.
wholesaler