Marketing Midterm 1 (ch. 1-5)

The primary purpose of 3M’s 15% rule is to
provide inventors with an opportunity to identify solutions to problems and/or identify new opportunities that would lead to marketable 3M products.
Marketing expertise is gained
by even the average person, who has a great deal of shopping experience.
The goal of marketing is to both __________ the needs of prospective customers.
discover and satisfy
Beth’s sorority volunteers to paint graffiti on downtown fences. She spent last Saturday helping out, and felt satisfied because she was contributing to her community. Was this an exchange?
Yes, because painting the fences was exchanged for something of value—a feeling of satisfaction.
A friend gave you the name of a company, Batteries Plus, where you could inexpensively purchase a new power cord for your laptop. However, when you called, no one answered the phone even though you called during business hours. Marketing did not occur because
there was no way for the parties to communicate.
If you feel hungry, marketers would say you have developed a(n) __________ to eat something.
need
What are people with the desire and ability to buy a specific offering referred to as?
market
Sound and Cinema is a company that will turn an ordinary basement into a home theater. It advertises in publications that are mailed to homeowners in subdivisions where the least expensive home costs $550,000. These homeowners are the __________ for Sound and Cinema.
target market
The “4 Ps” of the marketing mix include product, price, place, and
promotion.
Netflix can deliver movies to its customers in several ways: via streaming video over the Internet or via mail. These two methods would constitute which element of the marketing mix for Netflix?
place
Walmart’s __________ can be described as “everyday low prices for a broad range of products that are always in stock in convenient locations.”
customer value proposition
The rising price of oil has increased the costs of transportation and thus the cost to deliver most manufactured goods. This is an example of which environmental force?
economic
The concept of __________ links the organization to its individual customers, employees, suppliers, and other partners for their mutual long-term benefits.
relationship marketing
A marketing program is a plan that __________ the marketing mix for prospective buyers.
Integrates
Which of the following statements is the primary reason that explains why U.S. businesses moved from the production era to the sales era?
Competition grew and the production of goods increased.
The marketing concept is the idea that an organization should strive to satisfy the needs of consumers
while also trying to achieve the organization’s goals.
The process of identifying prospective buyers, understanding them intimately, and developing favorable long-term perceptions of the organization and its offerings so that buyers will choose them in the marketplace is referred to as
customer relationship management.
When the Eastman Kodak Company concerns itself with disposal of its film packages in national parks by promoting the slogan “Take only pictures, leave only footprints,” it is acting in accordance with
the societal marketing concept.
The primary difference between a good and a service, both of which are products to the marketer, is that a good is __________ and a service is __________.
a physical object; intangible.
Which of the following statements is an example of place utility?
ATM machines in thousands of locations.
Comparing the results of the marketing program with the goals in the written plans to identify and act on deviations occurs during the
evaluation phase.
Writing ads and setting prices are examples of which of the following?
marketing tactics
Oprah.com recently launched Oprah’s Book Club 2.0, hoping to get back to the amazing success of her previous book club. While the ideas for the plan may have been sound, new users complain that the feel of the experience online is certainly not Web 2.0, which requires a highly dynamic environment, often involving crowdsourcing, or user-generated content. Instead, Oprah remains the central, controlling figure of the club. Most likely, a problem occurred during
the implementation phase.
The marketing program includes developing the marketing mix and
it’s budget
The market-product focus and goal setting part of the planning phase of the strategic marketing process includes which of the following?
selecting target markets
Brick-and-mortar retailers are noticing a change in how many consumers shop. Sometimes they visit a store and scan an item on their smartphones, only to find the same product at a less expensive online retailer like Amazon.com. This turns the store into nothing more than a showroom for products. A SWOT analysis of Best Buy’s marketing environment should consider this change in consumer shopping behavior a(n) __________.
threat
The last phase of the strategic marketing process is known as
evaluation
In diversification analysis, product development refers to the marketing strategy of
selling new products to current markets.
In BCG’s business portfolio analysis, __________ generate more revenue than they can use, allowing an organization to cover its overhead and invest in other SBUs.
cash cows
What is a unique strength relative to competitors, often based on quality, time, cost, or innovation referred to as?
competitive advantage
The __________ phase of the strategic marketing process usually results in a __________ that sets the direction for the marketing activities of an organization.
planning; marketing plan
The choice of which __________ to display on a marketing dashboard is critical for a busy marketing manager, who can be overwhelmed with irrelevant data.
marketing metrics
The outdoor brand The North Face intends to capture some of its competitors’ business in Europe in the next few years, even amid the current debt crisis there. The firm cites the active lifestyles there and the relatively low cost of entry for its backpacking and hiking sports gear, which attracts those planning a low-budget “staycation.” The North Face most likely has a __________ goal.
market share
Business firms pursue several different types of goals such as profit, sales, market share, quality, customer satisfaction, employee welfare, and social responsibility. Which of these statements is most accurate?
If profits are acceptable, a company may elect to maintain or increase its sales even though profits may not be maximized.
American railroads may have defined their __________ too narrowly, by concerning themselves only with rail service rather than including other transportation modes.
business
Southwest Airlines’ __________ is to be dedicated “to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit.”
mission
A visionary organization first examines its organizational foundation and its organizational direction to determine its organizational
strategies
The marketing department is part of which strategic level in an organization?
functional level
In less complex organizations that have a single business focus, such as Ben & Jerry’s, which two strategic levels may merge?
corporate and strategic business unit
A(n) __________ may have operational efficiency or client satisfaction as its primary organizational goal, but it still must receive sufficient funds to cover its operating expenses.
nonprofit organization
What is the process of continually acquiring information on events occurring outside the organization, to identify and interpret potential trends called?
environmental scanning
Baby boomers can be described as the generation of children born
before Generation X
Members of Generation Y are most likely to influence the marketing mix decisions regarding which of these products?
tablet devices
Current cultural values commonly held in the United States are
personal control, continuous change, and competition.
Periods of declining economic activity during which time business production decreases, unemployment rises, and many consumers have less money to spend are known as
recessions.
When you begin your first full-time job, you have a monthly income of $3,500. Your federal and state taxes are $1,000. You pay $600 in rent, have a $300 car payment, and spend $300 on food and $200 on clothes. The remaining $1,100 would be considered your
discretionary income.
Innovations are allowing consumers to utilize gesture, touch, and voice to control computers and other devices. This is an example of a(n) __________ force that could impact many industries.
technological
Any activity that uses some form of electronic communication in inventory, exchange, advertisement, distribution, and payment of goods and services is referred to as
electronic commerce.
Apple (iPad), Samsung (Galaxy Tab), Motorola (Xoom), and BlackBerry (PlayBook) control the vast majority of the tablet device market. These companies operate in what type of market?
oligopoly
The Clayton Act can be considered stronger than the Sherman Antitrust Act because
it forbade certain actions that lessen competition, even if no actual has yet occurred.
Both businesses and consumers benefit from __________; they allow consumers to correctly identify the products they want to purchase.
trademarks
Which of the following is a major factor that influences ethical behavior and personal moral philosophy?
corporate culture
What does the Latin phrase caveat emptor mean?
let the buyer beware
From 2007 to 2010, a Chinese national who was employed by Dow Chemical as a research scientist delivered stolen trade secrets pertaining to organic fertilizers to individuals in Germany and the China for the purpose of developing competing products. The employee was subject to confidentiality, as detailed in an agreement that he had signed addressing his obligations for handling confidential information and trade secrets. This is an example of
economic espionage.
__________ often assist companies and the employees with ethical issues by formally addressing contributions to government officials and political parties, customer and supplier relations, conflicts of interest, and accurate recordkeeping.
code of ethics
A General Electric employee was fired after he reported allegations of Foreign Corrupt Practices Act violations in Iraq to his supervisor and GE Energy’s ombudsperson. This can be the unfortunate outcome when one becomes a
whistle-blower.
What is moral idealism?
a personal moral philosophy that considers individual rights or duties as universal, regardless of the outcome
Which groups does a firm exhibiting stakeholder responsibility primarily serve?
consumers, employees, and suppliers
Companies like Lush and The Body Shop are trying to educate consumers about the environmental damage caused in the production of traditional palm oil so that they can sell their own “palm oil-free” or “sustainable” palm oil products, with oils produced on land that wasn’t cleared of trees. This is an example of
green marketing.
The practice of __________ occurs when an organization conducts business in a way that protects the natural environment while making economic progress.
sustainable development
The study of consumer __________ helps marketers understand why people choose one brand over another and how they make these choices.
behavior
The problem recognition stage of the consumer purchase decision process will be activated if the consumer perceives a difference between his or her actual and ideal situations and
the difference is big enough to trigger a decision.
If you are thinking about buying a new television, which of these would be considered a public source of information for an external search?
the U.S. Consumer Product Safety Commission
For the purchase of a smartphone, Consumer Reports expects that many consumers use price, display, web browsing, and battery life as __________, since it tests products on these dimensions.
evaluative criteria
Satisfaction or dissatisfaction affects consumer communications; while the satisfied buyer typically tells about three other people about her experience, the dissatisfied buyer
is likely to complain to about nine people.
In routine problem solving, the number of external information sources used is typically which of the following?
none
For which of the following items would extended problem solving MOST LIKELY be used?
an assisted living residence
The market leader for a(n) __________ product must make special efforts to avoid stockout situations so that buyers don’t substitute a competing brand.
low-involvement
As a situational influence, antecedent states include
the amount of cash on hand.
Which of the following is a psychological influence on the consumer behavior decision process?
lifestyle
Respect is an example of a __________ need.
personal
Toro introduced a small, lightweight snowblower called the Snow Pup, which worked well but suffered from slow sales. Toro found that consumers perceived the Snow Pup name to mean that it was a toy or too light to do any serious snow removal. Poor sales may have been the result of __________ because of customers’ interpretation of the name.
selective comprehension
An energy drink company is interested in advertising during a made-for-television movie using subliminal advertising in which logo images are shown only very briefly, for periods of just several milliseconds at a time. Which of the following is the strongest argument against such a marketing tactic?
Evidence suggests that such messages have limited effects on behavior.
If a consumer is happy with the firm, but natural, hold she gets from her latest purchase of hairspray, this would be considered which variable of the behavioral learning process?
reinforcement
Using the same brand name for different products is an application of which concept from behavioral learning theory?
stimulus generalization
To allay mothers’ concerns about ingredients in its mayonnaise, Hellmann’s successfully communicated the product’s high Omega 3 content, which is known to be essential to human health. This is an example of using which attitude change strategy?
changing beliefs about the extent to which a brand has certain attributes
The VALS system is a(n) __________ measure of consumers.
psychographic
Opinion leaders are considered to be __________, so their opinions influence others’ choices.
knowledgeable about or users of particular products
Important variables in the family life cycle are age, marital status, and
presence of children.
The __________ American subculture as a whole is characterized by hard work, strong family ties, appreciation for education, and median family incomes exceeding those of any other ethnic group.
Asian
Organizational buyers include all of the following EXCEPT:
ultimate consumers
Within the industrial market, __________ companies make up about 75 percent of all firms.
service
Kohl’s, a department store chain, is an example of which type of organizational buyer?
reseller
The NAICS provides common industry definitions to facilitate comparative measurements of economic activity between the United States and which of the following?
Mexico
The Perth Mint in Australia provides silver blanks to the U.S. Mint, which then creates products for consumers like the collectable American Eagle Silver Bullion Coins. The demand for Perth’s silver blanks is called __________ demand.
derived
Which of the following is MOST characteristic of an organizational buyer in the buying process?
is technically qualified and professional
One challenge associated with selling to organizations is that
there are often far fewer buyers.
Which of the following is a commonly used organizational buying criterion?
warranties and claim policies
Since 1934, Milsco Manufacturing has been the exclusive source of seats for Harley-Davidson motorcycles as well as an aftermarket provider of parts and accessories such as saddlebags. Milsco engineers work closely with Harley-Davidson on the latter’s new product development efforts. Harley-Davidson is using __________ with Milsco.
supplier development
Which of the following characterizes organizational buyer-seller relationships?
Relationships may evolve into supply partnerships.
The purchasing department identifies potential suppliers in which stage of the organizational buying process?
information search
During the postpurchase behavior stage of the organizational buying process, which of the following is MOST LIKELY to occur?
A supplier’s performance is formally evaluated.
A buying committee differs from the typical buying center in that the former is
highly formalized.
Kenneth, in inside sales, has an office right across the hall from the administrative pool. When he heard they were purchasing a new paper shredder, he said, “I know I don’t get much of a say, but please look for one that is quieter. When you use it, my furniture actually vibrates. That thing drives me crazy!” In this instance, Kenneth performs what function in the buying center?
influencer
Researchers who have studied organizational buying identify three types of buying situations: straight rebuy, new buy, and modified rebuy. These are collectively are known as what?
buy classes
Jack co-owns a coin-operated laundry downtown with his two brothers, but he does most of the day-to-day management. Which of the following would MOST LIKELY be a straight rebuy for Jack?
reordering single-use detergent packets for his vending machine
Another name for an e-hub is a(n)
B2B exchange.
Which type of e-marketplace is described as a neutral third party?
independent e-marketplaces
In a(n) __________ auction, many sellers compete to provide goods or services for a single buyer.
reverse
Which of the following would MOST LIKELY be considered a new buy for Trek?
incorporating an improved frame technology that dampens vibration