Principles of Marketing Midterm

Chapter 1
The practice of marketing has an impact on customers, the firm, the market, and society in general. Which of the following is NOT a core aspect of marketing?
Ensuring that financial statements correctly reflect the value of the firm’s brands.
Chapter 1
Customers give up things they value—for example, money, information or time—to a firm in return for goods, services and ideas. This process is called
a marketing exchange.
Chapter 1
The four P’s comprise the ________________, which is the controllable set of activities that the firm uses to respond to the wants of its target markets.
marketing mix
Chapter 1
______________ are intangible customer benefits that are produced by people or machines, and cannot be separated from the producer.
Services
Chapter 1
The goal of _____________ is to inform, persuade or remind potential buyers about a good or service to influence their opinions and elicit a response.
promotion
Chapter 1
Marketing firms become more value driven by focusing on four activities. Which of the following is NOT one of those activities?
They concentrate on making a profit above all else.
Chapter 1
Customers seek benefits and will consider trade-offs among them, while also considering costs. In value-based marketing, the marketer must
find opportunities to meet as many needs as possible while also keeping costs down.
Chapter 1
Firms that focus on the lifetime profitability of their relationships with their customers as opposed to how much money they make in each transaction operate under a _______ orientation.
relational
Chapter 1
The group of firms that make and deliver a given set of goods and services is known as the
supply chain.
Chapter 1
As identified in the text, Marketing is important for all of the following reasons EXCEPT
marketers advise the human resource department on the right type of employees to hire.
Chapter 2
Supply chain efficiency, a strong brand name, and customer satisfaction are likely to be sources of a
sustainable competitive advantage.
Chapter 2
Although competitors can copy or match the goods and services a firm offers, the firm can still develop a sustainable competitive advantage through ______________ if its products have high perceived value and effective branding or positioning.
product excellence
Chapter 2
A document that analyzes the current marketing situation, opportunities and threats for the firm, marketing objectives in terms of the four P’s, action plans, and pro forma financial statements is known as
a marketing plan.
Chapter 2
Of the five steps to the strategic marketing planning process, which step usually comes first?
Define the business mission
Chapter 2
A SWOT analysis is part of a firm’s situation audit. SWOT is an acronym for
strengths, weaknesses, opportunities, and threats.
Chapter 2
Steve has been working his way through the five steps in the development of a marketing plan. He has examined the firm’s business mission and objectives and developed a SWOT analysis in some detail. Before he can implement the marketing mix, he must begin identifying market segments that his company could pursue. In target marketing, Steve will:
evaluate each potential segment’s attractiveness.
Chapter 2
When marketers execute pricing, promotion, place and product strategies, they are in the ___________________ phase of marketing planning.
implementation
Chapter 2
Kathy has been assigned the task of assembling information to monitor whether the plans that were implemented are achieving what they are supposed to. She will look at both performance and financial measures. She will use a series of _____________, which are measuring systems that quantify a trend, dynamic, or characteristic.
metrics
Chapter 2
Brian heard his unit described as a cash cow. At first, he wasn’t sure he liked that, but felt better about it when he learned it meant
his unit has excess resources that can be spun off to other business units that need it.
Chapter 2
Which of the following is one of the four major growth strategies marketers typically pursue?
Market development
Chapter 3
According to your text, at what point did the concept of social media start to become more serious and professional?
after Y2K and the bursting of the dot-com bubble
Chapter 3
A firm seeks to obtain insights and information from customer relationship management and/or loyalty programs so it can provide personalized offers aimed at exciting its targeted customer. In doing so, the firm is most likely attempting to make sure its offer
is relevant.
Chapter 3
Jared likes to be on the cutting edge of technology and is usually the first of his friends to obtain the newest products available. Social media gives him the opportunity to post and share his creative ideas. In the world of social media, Jared would be considered
a creator.
Chapter 3
Which professional site allows users to post to question-and-answer forums as well as post personal intellectual property, such as presentations they have given?
LinkedIn
Chapter 3
Approximately what percentage of those people who have smartphones actually make purchases from these devices?
50 percent
Chapter 3
When stores like Target work with vendors to create exclusive in-store items, or advertise a policy to match retail pricing, they are most likely trying to combat any damage that could result from the use of _____ apps.
Price check
Chapter 3
Which of the following accurately represents the three-stage process of social media engagement?
listen, analyze, do
Chapter 3
Camille was shopping online for a new pair of dress boots. The first website she clicked on only offered hiking boots and not the dress boots she was looking for, so Camille left that site immediately and continued on her search. Under which metric for analyzing online activity would marketers categorize Camille’s activity?
bounce rate
Chapter 3
Katrina has a blog on which she writes her opinion about the latest fashions. Her blog is read by almost everyone in her network and she often sways people by her opinions. Which measure of individual social media effectiveness does this refer to?
influence
Chapter 3
Fenton graduated with a marketing degree and is working in the marketing department for a major retailer. He has now decided he’d like to work in the firm’s social media division. Ideally, he would like to be responsible for handling corporate forums and blogs, increasing traffic to the firm’s website and broadening the firm’s community. Fenton is most likely hoping to secure a job as a
community manager.
Chapter 4
Instead of having to choose between making a profit or doing good for society, companies can combine __________ and _____________ to do both while building a solid corporate reputation.
ethics; corporate social responsibility
Chapter 4
When asked in a survey whether they had seen any unethical behavior among their colleagues, chief marketing officers cited that they had observed all the following EXCEPT
kickbacks to corporate buyers from supply chain vendors.
Chapter 4
According to the American Marketing Association, the specific values to which marketers should aspire include honesty, responsibility, fairness, respect, openness and
citizenship.
Chapter 4
Firms with ______________ tend to be more socially responsible.
strong ethical climates
Chapter 4
Which of the following is NOT a step in The Ethical Decision-Making Framework?
consult appropriate regulatory officials
Chapter 4
What does the Ethical Decision-Making Metric (Exhibit 4.4) offer the marketer?
a framework for looking at multiple dimensions of an issue in order to choose an appropriate course of action
Chapter 4
When developing a marketing strategy, ethics should
be considered throughout the process, using different questions at different stages.
Chapter 4
__________________ refer(s) to the actions of a firm to address a wide range of social, environmental and ethical interactions with its community. Though somewhat controversial, these actions are significant in that the company undertakes them voluntarily, and the firm realizes that these actions can be profitable, too.
Corporate social responsibility
Chapter 4
According to your text, the most basic corporate social responsibility to employees is to
ensure a safe working environment.
Chapter 4
Current and retired employees, customers, and suppliers are all considered to be part of a firm’s
stakeholders.
Chapter 5
A good marketer can identify potential opportunities by paying close attention to customer needs and continuously monitoring
the business environment in which the company operates.
Chapter 5
A firm’s macro-environment includes _____________ factors, which the marketer cannot _______________.
external; control
Chapter 5
The _____________ is the center of all marketing efforts.
consumer
Chapter 5
Which of the following is NOT a macro-environmental factor?
the firm’s competitors
Chapter 5
__________ is the shared meanings, beliefs, morals, values, and customs of a group of people.
Culture
Chapter 5
Compared to other groups, members of the _______________ generational cohort are more likely to marry and buy homes later in life, are more cynical, are shopping savvy and are considered to be astute consumers.
Generation X
Chapter 5
Which of the following is NOT an important trend, as outlined in your text, that marketers must monitor in the macro-environment?
red/blue marketing in election years
Chapter 5
Consumers’ privacy concerns led to enactment of the
Federal Trade Commission’s Do Not Call registry.
Chapter 5
Marketers must consider the political and regulatory environment, which may have a profound impact on competition, promotion, product safety and the operation of the marketplace. Key players in this environment include all of the following EXCEPT
stock exchanges.
Chapter 5
Market research firms can provide information indicative of human population segments such as age, gender, race and income. This information can provide marketers with a “snapshot” of the typical consumer in a specific target market and are collectively referred to as
demographics.
Chapter 6
Marketers often use principles and theories from sociology and psychology to
decipher many consumer choices and develop basic strategies for dealing with their behavior.
Chapter 6
_______ describes the steps that consumers go through before, during, and after making purchases.
The consumer decision process mode
Chapter 6
The consumer decision process begins when
customers recognize that they have an unsatisfied need.
Chapter 6
Once a consumer recognizes he or she would like to go from a needy state to a different, desired state, the consumer decision process continues with
internal and external searches for information.
Chapter 6
Marketers would like to be in the consumer’s _________ set for a purchase decision, but even more, they would like to be in the consumer’s _________ set.
retrieval; evoked
Chapter 6
Peter could attend any of several universities. He has high grades and test scores and is a star athlete at his high school. He has been approached by recruiters from several schools, all of whom talk about opportunities in their athletic programs, the quality of their academics, and the potential for scholarships. Despite all this attention, Peter will only consider local universities because his girlfriend is still in high school. For his college choice, Peter is using a _____ rule.
noncompensatory decision
Chapter 6
The final step of the consumer decision process is _______, which is of particular interest to marketers because it entails actual rather than potential customers.
postpurchase behavior
Chapter 6
Maslow’s Hierarchy of Needs is a powerful tool for marketers to
explain different kinds of motives consumers have and use.
Chapter 6
The term “perception” refers to
the process by which individuals select, organize, and interpret information.
Chapter 6
Consumer purchases may be affected by perceived or actual ______________, which refer to the way consumers spend their time and money.
lifestyles
Chapter 7
Business-to-business marketing refers to selling goods or services to all of the following EXCEPT
consumers.
Chapter 7
Paul bought a laptop computer for personal use—mainly gaming—and another one for use in his consulting business. How would you classify his purchases?
The first was a B2C purchase, and the second was B2B.
Chapter 7
Which of the following is NOT a type of reseller?
Manufacturer
Chapter 7
The B2B buying process is similar to the B2C process, though it differs in many ways. For example, the B2B equivalents of the Information Search and Alternative Evaluation steps of the B2C buying process are
more formal and structured.
Chapter 7
Your firm has recently completed your response to an RFP from a large manufacturer. Your team’s next step will be to
wait for the manufacturer to analyze the proposal.
Chapter 7
The end of the B2B buying process does not end with the receipt of the purchased goods or services. Most companies will
assess performance of the selected vendor.
Chapter 7
Sylvia supervises the print shop in a large nonprofit organization. Her machine operators frequently complain to her about a particular piece of equipment that continually malfunctions. After she made a formal request to replace the equipment, she was asked to serve on a committee to advise the CFO on the kind of new equipment to purchase. Sylvia is most likely taking on the role of _____ in this buying center.
Initiator
Chapter 7
Organizational culture reflects the values, traditions and customs that guide employee’s behavior. In the context of the buying center, there are a number of recognized cultures of critical importance to B2B marketers. Which of the following is NOT one of these buying cultures?
Ethical
Chapter 7
For which of the following buying situations is the buying decision most likely to be quite simple?
a straight rebuy
Chapter 7
Which type of buying center uses one person to make a decision but solicits input from others before doing so?
consultative
Chapter 8
________ refers to the processes by which goods, services, capital, people, information, and ideas flow across national borders.
Globalization
Chapter 8
______ is the most widely used measure of market potential of an economy.
GDP
Chapter 8
Firms use economic analysis to help determine the relative attractiveness of various marketing opportunities. These analyses include all the following EXCEPT evaluating
working capital.
Chapter 8
Eduardo is working on creating a marketing mix for his firm’s business-to-business products, and he is looking at government action. He is concerned that some foreign governments may place limits on the quantity of his products that can be imported. What kind of government action is Eduardo worried about?
quotas
Chapter 8
Which of the following is one of Hofstede’s cultural dimensions?
time orientation
Chapter 8
Which of the following sequences correctly lists the least risky to the riskiest global entry strategy?
exporting, strategic alliance, direct investment
Chapter 8
Based on predicted growth rates, which of the following countries is expected to become the world’s fifth largest economy within a few years?
Brazil
Chapter 8
Direct investment
offers a firm control over the foreign enterprise and the highest potential return.
Chapter 8
In comparison to the marketing mix for domestic firms, the global marketing mix
includes all of the Four P’s—Product, Price, Place and Promotion.
Chapter 8
The major challenge in developing a global communication strategy is
identifying the elements that need to be adapted to be effective in the global marketplace.
Chapter 9
The Segmentation, Targeting and Positioning Process is not always linear, but the final stage is to
identify and develop a positioning strategy.
Chapter 9
Your text outlines a number of segmentation methods a firm may choose to utilize. Which of the following is NOT one of the choices
sociological segmentation
Chapter 9
Marketers like Benetton want their ads to appeal to one’s ________, suggesting to consumers “I’m like them, so I should buy their products.”
self-concept
Chapter 9
Best Years Travel targeted consumers living in New York City who were over 50 years of age. Best Years Travel was using ________ segmentation.
geodemographic
Chapter 9
One reason Forever Green Lawn Service invests in retention by using ______ segmentation is because finding new customers is costly.
loyalty
Chapter 9
Once a marketer has selected potential market segments for a product or service, he or she can evaluate each segment to determine if customers in the segment will react similarly and positively to the firm’s offering. In doing so, the marketer is evaluating if the segment is
responsive.
Chapter 9
Which of the following would NOT be used in calculating the profitability of a segment?
variable costs
Chapter 9
When selecting a target market, a marketer should
match the firm’s competency with a market segment’s attractiveness.
Chapter 9
Firms using a(n) _______ targeting strategy, target several market segments with a different offering for each.
differentiated
Chapter 9
Once segmentation and targeting have been completed, the marketer turns to ________, often using a perceptual map to display graphically the customers’ perceptions of the product and of its competitors’ products.
positioning
Chapter 10
When marketers systematically collect, record, analyze, and interpret data in order to aid in decision making, they are engaged in
marketing research.
Chapter 10
______ uses a variety of statistical analysis tools to uncover previously unknown patterns in data or relationships among variables.
Data mining
Chapter 10
Which of the following is NOT included in the American Marketing Association’s guidelines for marketing research?
supporting efforts to overcome consumers’ concerns about privacy.
Chapter 10
One of the most important issues marketers must address before beginning a marketing research project is whether or not
senior management is willing to abide by the results.
Chapter 10
Scanner data, U.S. Census data, internal company data and Internet background research are all examples of ______ data.
secondary
Chapter 10
The major advantage of ________ data is that it can be tailored to meet specific marketing research needs.
primary
Chapter 10
Jerry is designing an online survey questionnaire. When designing the questionnaire, Jerry should
use language respondents are familiar with.
Chapter 10
The disadvantages to secondary research are that it may not be precisely relevant to the information that is needed, the data sources may be biased and
the methodologies for collecting data may not be appropriate.
Chapter 10
Commercial research firms such as Symphony IRI Group, J.D. Power and Associates and ACNeilsen all provide data that marketers can purchase. This type of data is known as _____ data.
syndicated
Chapter 10
Joe, the owner of a local hardware store, is in the process of going through his customer’s purchase histories to determine if they purchase certain types of products together on a regular basis, so he can then market those products more effectively. What activity is Joe engaged in?
data mining