marketing chap 1 and 2

Which of the following statements is true of marketing?
a. It is more of a philosophy rather than an organization function. b. It is focused on just selling goods, services, and/or ideas.
c. It rewards the seller and not the buyer of a transaction.
d. It focuses on delivering value and benefits to customers.
It focuses on delivering value and benefits to customers.
Researchers at Fresnas Inc. invented a new form of glass that filters harmful rays of sunlight and blocks heat. Without researching the market conditions, Fresnas Inc. went ahead and manufactured windshields with the new glass. It hopes that customers will like its new product. In this scenario, Fresnas Inc. has adopted a _____.
a. sales orientation
b. production orientation
c. market orientation
d. societal marketing orientation
production orientation
Identify a true statement about production-oriented firms.
a. They do not focus on their internal capabilities.
b. They lack an understanding of the needs and wants of the marketplace.
c. They focus on their customers and have quick cycle times.
d. They determine what products their customers want and then produce them.
They lack an understanding of the needs and wants of the marketplace
Which of the following is a similarity between a production orientation and a sales orientation? a. Both ignore the importance of assessing a firm’s internal capabilities.
b. Both lack an understanding of the needs and wants of the marketplace.
c. Both place little emphasis on the assessment of manufacturing plants and facilities.
d. Both fail in a market where demand exceeds supply.
Both lack an understanding of the needs and wants of the marketplace.
Which of the following statements is true of the marketing concept?
a. It states that an organization should satisfy customer wants and needs while meeting organizational objectives.
b. It overlooks the importance of understanding the competitive arena and strengths and weaknesses of competition.
c. It states that firms should give maximum importance to aggressive promotional and advertising activities.
d. It states that marketing solely means selling things and collecting money.
It states that an organization should satisfy customer wants and needs while meeting organizational objectives.
23. Which of the following strategies is most closely associated with the societal marketing orientation?
a. Competing in the market
b. Fostering opportunism
c. Using clean energy sources
d. Increasing overhead production costs
Using clean energy sources
Unlike the personnel in market-oriented firms, the personnel in sales-oriented firms:
a. tend to be inward looking.
b. focus on making what the market wants.
c. enhance individuals’ and society’s long-term best interests.
d. determine the needs of both the final buyer and intermediaries.
tend to be inward looking.
Which of the following statements is true of customer relationship management?
a. It involves targeting the average customer or everybody.
b. It involves establishing and tracking customer interactions with a company.
c. It considers all customers as one large group that should be targeted with a single promotional strategy. d. It is used by sales-oriented firms to convince customers to buy their products.
It involves establishing and tracking customer interactions with a company.
In the context of the Boston Consulting Group’s (BCG’s) portfolio matrix, a _____ is a strategic business unit that generates more cash than it needs to maintain its market share.
a. ​problem child
b. ​dog
c. star​
d. ​cash cow
​cash cow
​In the portfolio matrix, a _____ has low growth potential and a small market share.
a. ​question mark
b. ​problem child
c. ​star
d. ​dog
dog
​When a company defines its mission statement based on its short-term objectives, it is said to be suffering from _____.
a. ​marketing myopia
b. ​marketing inertia
c. ​marketing dissonance
d. ​marketing blockage
​marketing myopia
Which of the following strategies can enable companies to gain a cost competitive advantage?
a. ​Removing frills from products
b. Focusing on serving marginal customers​
c. ​Eliminating reverse engineering efforts
d. ​Developing additional exclusive functional departments
​Removing frills from products
​In the context of SWOT—internal strengths (S), weaknesses (W), external opportunities (O), and threats (T)—analysis, which of the following can be considered as a strength of an organization?
a. ​Imitable products and services
b. ​A new unserved market
c. ​A superior production technology
d. ​Increased taxes on products
​A superior production technology
An effective marketing objective:
a. ​is qualitative rather than quantitative.
b. ​is compared to a benchmark.
c. ​is written independently of the mission statement.
d. ​is written after a marketing plan is drafted.
​is compared to a benchmark
Which of the following statements is true about a niche strategy?
a. ​Only large companies can implement a niche strategy.
b. ​Companies that adopt a niche strategy have only a small number of customers.
c. ​Only the companies that do not have competitors can adopt a niche strategy.
d. ​Companies that adopt a niche strategy can only gain a price advantage over competitors.
Companies that adopt a niche strategy have only a small number of customers.
Which of the following examples illustrates a niche strategy?
a. ​Libra Inc., a motor company, using new production techniques to achieve economies of scale
b. ​Alpha Electronics deciding to dissolve one of its strategic business units
c. ​Venus Inc. selling products similar to the ones available in the market
d. ​Relish, a confectionery store, selling handcrafted chocolates in only one city
Relish, a confectionery store, selling handcrafted chocolates in only one city
Drafi Arts Corp. makes and sells original handicraft goods. The management of the company has been successfully using a niche strategy for many years. In this case, which of the following is most likely to be true of Drafi Arts Corp.?
a. ​It serves only a limited geographic market.
b. ​It offers products at a lower price than that of the competition.
c. ​It develops products that are similar to those of its competitors.
d. ​It lowers costs by removing frills and options from its products.
​It serves only a limited geographic market.
According to Ansoff’s strategic opportunity matrix, both product development and diversification entail creating new products.
a. True
b. False
true
Magnira Inc. plans to implement a market penetration strategy to increase its market share. According to Ansoff’s strategic opportunity matrix, which of the following is most likely to happen?
a. Magnira Inc. will enter markets that are already served by separate companies.​
b. Magnira Inc. will target existing customers rather than new customers.​
c. ​ Magnira Inc. will create new products for the markets it has penetrated.
d. Magnira Inc. will move away from its core capabilities, and it will traverse a range of change.​
Magnira Inc. will enter markets that are already served by separate companies.​
​_____ tells us that costs decline at a predictable rate as experience with a product increases.
a. ​A market opportunity analysis (MOA)
b. ​An experience curve
c. ​Marketing myopia
d. ​Ansoff’s strategic opportunity matrix
An experience curve
a. ​Apcon Mobiles Inc.’s entry into unfamiliar markets is likely to be risky.
b. ​Apcon Mobiles Inc. follows a product development strategy.
c. ​Apcon Mobiles Inc.’s strategy can be implemented by using customer databases.
d. ​Apcon Mobiles Inc.’s entry into a market with high competition is likely to be successful.
​Apcon Mobiles Inc.’s entry into unfamiliar markets is likely to be risky
The activity set of institutions and processes for creating communicating delivering and exchanging offerings that have value for customers clients partners and society at large
Marketing
A philosophy that focus on the internal capabilities of the firm rather than on the desires and needs of the marketplace
Production orientation
The belief that people will buy more goods and services if aggressive sales techniques are used and that high sales results in high profits
Sales orientation
The idea that the social and economic justification for an organization’s existence is the satisfaction of customer wants and needs while meeting organizational objectives
Marketing concept
A philosophy that assumes that a sale does not depend on an aggressive salesforce but rather on a customer’s decision to purchase a product it is synonymous with the marketing concept
Market orientation
The idea that an organization exists not only to satisfy customer wants and needs and to me organizational objectives but also to preserve or in hands individuals and societies long-term best interest
Societal marketing orientation
A companywide business strategy designed to optimize profitability revenue and customer satisfaction by focusing on highly defined and precise customer groups
Customer relationship management
The managerial process of creating and maintaining a fit between the organizations objectives and resources in the evolving market opportunities
Strategic planning
Market strategy that tries to increase market share among existing customers
Market penetration
In marketing strategy that entails attracting new customers to existing products
Market development
A marketing strategy that entails the creation of new products for present markets
Product development
A strategy of increasing sales by introducing new products into new
Diversification
A tool for allocating resources among products or strategic business units on the basis of relative market share and market growth rate
Portfolio matrix
In the portfolio matrix a business unit that is a fast growing market leader
Star
In the portfolio matrix a business unit that generates more cash than it needs to maintain its market share
Cash cow
In the portfolio matrix a business unit that shows rapid growth but poor profit margins
Problem child
In the portfolio matrix a business unit that has low growth potential and a small market share
Dog
The process of Anticipating future events in determining strategies to achieve organizational objectives in the future
Planning
Designing activities relating to marketing objectives and he changing marketing environment
Marketing planning
A written document that act as a guide book of marketing activities for the marketing manager
Marketing plan
A statement of the firms business based on the careful analysis of benefits sought by present and potential customers and an analysis of existing and anticipated environmental conditions
Mission statement
Defining a business in terms of goods and services rather than in terms of the benefits customer seek
Marketing myopia
Identifying internal strengths and weaknesses and also examining external opportunities and threats
Swot analysis
Being the low-cost competitor in the industry while maintaining satisfactory profit margins
Cost competitive advantage
Curves that show costs declining a predictable rate as experience with the product increases
Experience curves
The provision of something that is unique and valuable to buyers beyond simply offering a lower price than that of the competition
Product differentiation competitive advantage
The advantage achieved want to firm seeks to target and effectively serve a small segment of the market
Niche competitive advantage
And advantage that cannot be copied by the competition
Sustainable competitive advantage
A statement of what is to be accomplished through marketing activities
Marketing objectives
The activities of selecting and describing one or more target markets and developing and maintaining a marketing mix that will produce mutually satisfying exchanges with target markets
Marketing strategy
The description and estimation of the size and sales potential of market segments that are of interest to the firm and the assessment of key competitors in these markets segments
Market opportunity analysis
Products place promotion and pricing
Marketing mix
The process that turns a marketing plan into action assignments and ensures that these assignments are executed in a way that accomplishes the plans objectives
Implementation
Gauging the extent to which the marketing objectives have been achieved during the specific time.
Evaluation
Provides the mechanisms for evaluating marketing results in light of the plans objectives and for correcting the actions that do not help the organization reach those objectives within budget guidelines
Control
A thorough systematic periodic evaluation of the objectives and strategies structure and performance of the marketing organization
Marketing audit