Test 1

Marketing is the process of
creating, distributing, promoting, and pricing products to facilitate satisfying exchange relationships with customers and to develop and maintain favorable relationships with stakeholders in a dynamic environment
The focal point of all marketing activities is
customers
Organizations should define themselves not according to the products they produce but according to
how they satisfy customers
The definition of marketing implies that ____ should receive benefits from exchange relationships
both customers and businesses
The primary value that a marketer expects to receive from a customer in an exchange relationship is
the price charged for the product
A target market
is a specific group of customers on whom an organization focuses its marketing efforts
Kashi Heart to Heart cereal is aimed at people concerned about their heart health. These people represent the Kashi
target market
A commercial for the drink SunnyD explains how nutritious it is in comparison to other, more “sugary” drinks. While children under 12 are the most likely consumers of SunnyD, the commercial is aimed at mothers. These mothers represent SunnyD’s
target market
Distribution, price, promotion, and product are all elements of
the marketing mix
A marketing manager decides what combination of variables is needed to satisfy customers’ needs for a general type of product. What are the essential variables that the marketing manager combines?
Product, price, distribution, and promotion variables
The marketing mix is built around the
customer
Marketing managers strive to develop a marketing mix that
matches the needs of the target market
The product variable of the marketing mix can include all of the following except
consumer perception of the product price
The three basic forms that a product can take are
services, ideas, and goods
A physical product you can touch is a(n)
good
The application of mechanical and human efforts to either people or objects to provide intangible benefits to customers is known as a(n)
service
Which of the following companies is the best example of a service marketer?
FedEx
Mothers Against Drunk Driving (MADD) is a group that works to change attitudes and laws about driving under the influence of alcohol. MADD primarily markets
ideas
The Church of the Latter Day Saints has used advertising for many years, airing a commercial TV spot that shows parents actively playing games with their children. The Church is using marketing to promote its
ideas
Which of the following is most likely to be an idea marketer?
Abuse counselor
Deciding to add gel insoles to its running shoes would be a change in the ____ element of the marketing mix for Nike.
product
Making modifications to packaging or brand names involves the ____ component of the marketing mix.
product
Issues of inventory levels and storage costs are both concerns relating to the ____ variable of the marketing mix.
distribution
Rob Donaldson runs a successful wholesale business that sells equipment to restaurants throughout the Midwest. 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 a decision about
the best way to distribute his products
Consumers buying products online have dramatically affected the ____ variable of the marketing mix.
distribution
Changing the hours of operation for a service business involves the ____ component of the marketing mix.
distribution
Which of the following scenarios involves the distribution element of the marketing mix?
Deciding whether or not to have retail outlets in addition to a website
The element of the marketing mix used to increase awareness of a product or company is
promotion
When DuPont develops new carpet fibers that are highly stain-resistant and durable, it must educate consumers about the product’s benefits. This calls for activity in which of the following marketing mix variables?
Promotion
Boca Burger’s website features information about products, recipes, and nutritional values, but customers cannot actually purchase products from the website. This website is most likely used primarily as a ____ marketing tool.
promotional
When Ikea showcases rooms of furniture on its website, it lists each item in the room. However, if customers like all of the items, they can purchase them as a bundle. Which of the following aspects of the marketing mix is Ikea likely altering?
Price
When DataComp Corp., a producer of software, delayed the introduction of its new spreadsheet app to modify the package, its scheduled TV advertisements announcing the new product needed to be revised. In this case, a change in the ____ variable caused changes in the ____ variable of the marketing mix.
product; promotion
Marketing facilitates exchange relationships between buyers and sellers. What is marketing’s intended outcome for this relationship?
Satisfaction for both the buyer and seller
Which of the following statements about marketing environment forces is correct?
They influence customers by affecting their lifestyles, standards of living, and preferences and needs for products
The forces of the marketing environment include
political, legal and regulatory, sociocultural, technological, economic, and competitive
A marketing manager for a small computer 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
Which of the following best characterizes the forces of the marketing environment?
The forces change dramatically and quickly, and a change in one force is likely to affect the other forces
A change in the minimum drinking age in any given state illustrates a change in the ____ for Miller Brewing.
marketing environment
StarKist Tuna announced a dolphin-safe policy and stopped buying tuna from fishing vessels that net dolphins. This decision indicates a response to concerns about
the marketing environment
Which of the following is essentially an uncontrollable factor in developing a marketing mix?
Government regulations
The forces of the marketing environment primarily affect marketers in three ways: They influence customers by affecting their lifestyles and preferences for products; they determine whether or how a marketing manager can perform certain marketing activities; and they
affect a marketing manager’s decisions and actions by influencing buyers’ reactions to the firm’s marketing mix
The marketing environment is best described as being
dynamic and changing
The marketing concept is best defined as
a philosophy stating that an organization should try to satisfy customers’ needs through a coordinated set of activities that allows the organization to achieve its goals
According to the marketing concept, an organization should try to
provide products that satisfy customers’ needs and allow the organization to achieve its goals
The marketing concept is a management philosophy that affects
all efforts of the organization
The marketing concept focuses on
satisfying customers’ needs in a way that helps to achieve organizational objectives
The marketing concept is a philosophy that states that an organization should try to satisfy customers’ needs and also
achieve the organization’s goals
Which one of the following statements by a company president best reflects the marketing concept?
We have organized our business to make certain that customers get what they want
The marketing concept affects
all organizational activities
When Campbell’s introduced a line of low-sodium soups in response to customer demand, it was following which one of the following philosophies?
Marketing concept
The H&R Block company wants to adopt the marketing concept as a business philosophy. To be consistent with this decision, which of the following philosophies is most appropriate?
The customer is always right
The marketing concept is
a management philosophy
As the Industrial Revolution came to the United States, most firms operated in a(n) ____ orientation
production
During the Industrial Revolution demand for manufactured goods was
strong
U.S. Electric, the maker of a highly innovative xenon light bulb used in large, manufacturing facilities, finds that it has excess inventory. The firm increases its direct marketing budget by 20 percent and adds three new sales representatives. This company is operating as if it were in which of the following orientations?
Sales
T-Mobile implements a program of texting its current customers to find out what changes they would like to see in the services provided. The firm is exhibiting characteristics associated with which of the following orientations?​
Market
A market orientation is an organization-wide effort that includes all of the following activities except​
focusing on the marketing department only
Which of the following best describes the acceptance of the marketing concept by American organizations?
The marketing concept has yet to be fully accepted by all organizations
Which of the following is not an example of the implementation of the marketing concept?
Burger King reduces the labor costs to produce its sausage-egg biscuits
Health Care Systems, Inc. rolls out an innovative nurse-on-call information system available online. The product is not widely accepted because patients don’t see the need for such a service. This situation represents a failure in which aspect of implementing the marketing concept?
An information system to determine customer needs
Wonder introduced a new bread made with light whole wheat and packaged in smaller loaves as a response to the number of health-conscious customers who live alone. In this case, Wonder was most likely following the ________.
marketing concept
Today, establishing long-term, mutually beneficial arrangements in which both the buyer and seller focus on value enhancement through the creation of more satisfying exchanges is known as
relationship marketing
A junior marketing executive at MegaGrain 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 MegaGrain’s long-term survival, like most companies, depends on
creating and maintaining satisfying exchange relationships
In managing customer relationships, the three primary ways profits can be obtained are by
enhancing the profitability of existing customers, extending the duration of relationships with customers, and obtaining new customers
Long-term relationships with profitable customers is the key objective of
customer relationship management
Managing customer relationships requires identifying patterns of ____ and then using that information to focus on the most promising and profitable customers
buying behavior
____ is a customer’s subjective assessment of benefits relative to costs in determining the worth of a product.
Value
The equation a buyer applies to assess a product’s value is
value = customer benefits − customer costs
Customer costs include anything the buyer must give up in order to obtain the benefits the product provides. The most obvious customer cost is
monetary price
Which of the following would not be a customer cost considered in determination of product value?
Benefits received in the exchange for the products
Scott, a buyer for a medium-sized company, is assessing the value of competing software products for use in his firm. Which of the following would not be a customer benefit considered in his determination of this product’s value?
Monetary price
Taco Bell is introducing some of its products into supermarkets, vending machines, college campuses, and other locations to increase its product availability and convenience. One reason Taco Bell is doing so is to
increase customer value
Initiatives intended to improve an organization’s positive impact on society and the natural environment are called
green marketing
If a family spends $2,000 a month on goods and services, how much of that $2,000 goes for marketing activities?
$1,000
For most firms, the costs of marketing activities consume approximately what portion of the consumer’s dollar?
One-half
In today’s market environment, you might pay $16 for a physical CD by your favorite musical artist. Approximately how much of that price goes to activities related to marketing (promotion, distribution, profit margins)?
$8.00
Marketing activities are
used by all sizes of organizations including for-profit, nonprofit, and government agencies
Marketing activities
help sell an organization’s products and generate financial resources for the firm
Marketing knowledge and skills
are valuable personal and professional assets
The public is becoming more aware of how marketers’ activities affect the welfare of consumers and society. As a result, more firms are working to
create a responsible approach to developing long-term relationships with customers and society
Approximately what percentage of civilian workers in the United States performs marketing activities?
25 to 33 percent
The broadest and simplest definition of marketing states that it is the development and efficient distribution of products for consumer segments
false
Marketing consists primarily of selling and advertising
false
Customers are the focal point of all marketing activities.
true
A family that organizes and advertises a garage sale is performing marketing activities.
true
A target market is a specific group of customers on whom an organization focuses its marketing efforts.
true
A target market is always defined by demographics.
false
Target markets can be people who buy the product but do not necessarily use the product.
true
The marketing mix consists of three major variables: product, price, and distribution.
false
In marketing, a product can be a good or a service but not an idea.
false
Marketing efforts do not involve the design and development of products.
false
Products can be goods, services, or ideas.
true
Services are provided by applying human and mechanical efforts to people or objects to provide intangible benefits to customer.
true
The actual physical production of goods is a marketing activity.
false
Promotion can help sustain interest in established products that have long been available.
true
The distribution variable in a marketing mix is directed toward making products available in the quantities desired to as many target market customers as possible and keeping the total inventory, transportation, and storage costs as low as possible.
true
Customers are interested in a product’s price because they are concerned about the value obtained in an exchange.
true
Price is seldom used as a competitive tool.
false
For an exchange situation to arise, only one condition must exist: two or more individuals, groups, or organizations must each possess something that they value and are willing to give up to receive the “something of value” held by the other individual, group, or organization.
false
For an exchange to occur, at least one of the parties must be willing to give up his or her “something of value.”
false
Marketing activities do not always result in exchanges.
true
The outcomes of a marketer’s decisions and actions may be affected by the variables in the marketing environment.
true
Changes in the marketing environment always hurt marketing efforts.
false
The marketing environment is a set of static, unchanging surroundings.
false
The marketing concept stresses that a business organization can best achieve its goal by providing customer satisfaction through coordinated activities.
true
Achievement of the firm’s overall goals is part of the marketing concept
true
The marketing concept is a philosophy that a business organization should employ to satisfy customers’ needs while achieving the overall goals of the organization.
true
The marketing concept is a philanthropic philosophy aimed at helping customers at the expense of the business organization.
false
The marketing concept is a management philosophy, not a second definition of marketing.
true
The marketing concept deals only with marketing activities.
false
Profit, even at the expense of customers’ satisfaction, is the major thrust of the marketing concept.
false
The marketing concept directly affects marketing activities but should have negligible impact on other organizational activities.
false
The market concept stresses that an organization can best achieve its objectives by being customer-oriented.
true
The market concept developed out of a sequence of three eras: the production orientation, the marketing orientation, and the industrial orientation.
false
During the market orientation, businesspeople realized that if they could produce products efficiently, customers would buy them.
false
During the market orientation, businesspeople realized that products, which by this time could be made relatively efficiently, would have to be promoted through much personal selling and advertising.
false
A market orientation requires the organization-wide generation of market intelligence pertaining to current and future customer needs, dissemination of the intelligence across departments, and organization-wide responsiveness to it.
true
To implement the marketing concept, an organization must first establish an information system to discover customers’ real needs and then use the information to create products to satisfy those needs.
true
To satisfy customers’ objectives as well as its own, a company must coordinate all its activities.
true
At the most basic level, profits can be obtained through relationships by acquiring new customers, enhancing the profitability of existing customers, and extending the duration of customer relationships.
true
Relationship marketing is short-term, mutually beneficial arrangements in which the buyer and seller focus on the creation of satisfying exchanges.
false
Customer relationship management is the use of information about customers to create marketing strategies that develop and sustain desirable customer relationships.
true
In general, when marketers focus on customers chosen for their lifetime value, they earn lower profits in future periods than when they focus on customers selected for other reasons.
false
Value = customer costs − customer benefits.
false
Basic and extended warranties can reduce risk, a major customer cost.
true
Customer benefits include time and effort.
false
The process people use to determine the value of a product is not highly scientific.
true
Marketing costs consume about one-quarter of a buyer’s dollar.
false
Marketing costs consume about one-half of a buyer’s dollar.
true
For a business organization to remain healthy and to survive, it must sell products and make profits.
true
Knowing about marketing can help you evaluate the types of corrective measures needed to stop questionable marketing practices.
true
Approximately 20 percent of civilian employees in the United States perform marketing activities.
false
When managers at Logistics Pro are developing their strategic plan, they use a market orientation as a guide to ensure that ____ is an integral part of the process.
customer satisfaction
Managers at the Longshore Corporation are engaged in a complex process of revising their organization’s mission and goals and developing corporate strategy, marketing objectives, marketing strategy, and, eventually, a marketing plan. This process is called
strategic planning
Identifying and analyzing a target market and developing a marketing mix to satisfy individuals in that market are essential elements of which of the following parts of strategic planning?
Developing a marketing strategy
Safeway Foods Corporation is involved in identifying and analyzing a target market. The firm then develops a marketing mix to satisfy individuals in that market to gain long-term competitive advantages. Based on this example, Safeway is creating a
marketing strategy
To formulate a marketing strategy, one must
identify and analyze a target market and develop a marketing mix to satisfy individuals in that market
The marketing plan is
a written document detailing activities to be performed to implement and control marketing actions
CyberCycle Inc., is preparing a written document specifying the activities to be performed to implement and control its marketing activities. This document is called the
marketing plan
The strategic planning process begins with
analysis of the marketing environment
Apple has made a success from anticipating what consumers would want in new technological advances, convenience, and ease of use. The introduction of the iPad was an example of a _____ for Apple, something that an organization does extremely well and may give a company an advantage over its competition.
core competency
A market opportunity results from
the right combination of circumstances and timing that permits an organization to take action to reach a particular target market
When the right combination of circumstances occurs at the right time to allow an organization to take action toward a target market, the firm is faced with a
market opportunity
In response to the increase in demand for organic foods, Wegmans, Inc., a regional supermarket, recently created organic food departments within their large stores. The creation of these departments was a result of
a market opportunity
Realizing an increase in both the number of consumers who are environmentally-conscious and the number of consumers who are seeking vehicles that use less gasoline, several car manufacturers have developed hybrid automobiles. This is an example of identifying and capitalizing on a ____ while the strategic window is open.
market opportunity
After determining that consumers had concerns about fat and carbohydrates, Sardino’s Pizza began offering a low-fat, low-carb pizza product. The creation of this new product was the result of
a market opportunity
A strategic window is
a temporary period of optimum fit between the key requirements of a market and the particular capabilities of a firm competing in that market
A competitive advantage exists when a
firm matches a core competency to opportunities it has discovered in the marketplace
A ____ is created when a company matches its core competency to opportunities it has discovered in the marketplace
competitive advantage
Amazon’s pricing, service, and continuing investment in improving its website with additional product offerings give it a(n) ____ over many other retailers.
competitive advantage
An analysis of ____ examines internal factors that give the organization certain advantages and disadvantages in meeting the needs of its target markets.
strengths and weaknesses
John Deere’s strong name recognition and solid customer demand for its farm and garden equipment are two elements of the firm’s
strengths
Favorable conditions in the marketplace environment that could produce business rewards for the organization if acted upon properly are called
opportunities
Successful business organizations should take actions to convert internal weaknesses into ____ and external threats into ____.
strengths; opportunities
When Disney World wants to have at least 90 percent of its customers indicating they had a memorable and satisfying experience at the park hotels, this is an example of
a marketing objective
An organization’s business goals should be derived from its
mission statement
The reputation and well-known brand name of Rolex watches represents a ____ for Rolex.
core competency
A firm’s unique symbols, personalities, and philosophies comprise its
corporate identity
Which of the following is a characteristic of a marketing objective?
It is consistent with both business-unit and corporate strategy
Which of the following statements is incorrect?
Strategic planning begins at the marketing level and proceeds through business-unit and corporate levels
Resource deployment and coordination of functional areas of business are determined by
corporate strategy
____ strategy determines the means for utilizing resources in the functional areas of marketing, production, finance, research and development, and human resources to achieve the organization’s goals.
Corporate
Within a business organization, a profit center that is self-supporting in terms of sales, markets, production, and other resources is known as a
strategic business unit
Kraft purchased the Duracell Battery Company and now operates this division as a separate profit center within the firm. In this example, Duracell is a(n) ____ unit of Kraft.
strategic business
A group that has the willingness, ability, and authority to buy a product is a
market
According to the text, a market is defined as
a group of individuals and/or organizations that have needs for products in a product class and have the ability, willingness, and authority to purchase those products
Jason, a 17-year old high school student, wants to buy a pack of Marlboro Lights. He has the money to purchase them, but he is still not considered to be a market for the product due to his lack of ____ to buy.
authority
The Boston Consulting Group’s matrix is based on the
philosophy that a product’s market growth rate and its market share are important determinants of its marketing strategy
According to the Boston Consulting Group, marketers may classify their products as all of the following except
cash contributors
Based on the work by the Boston Consulting Group, products with a dominant share of the market and good prospects for growth are
stars
Rollins Steel Corporation, a leader in industrial supplies, has identified its auto battery unit as having a dominant market share; however, it has low prospects for growth. The unit currently generates more cash for Rollins Steel than is required to maintain its market share. According to the Boston Consulting Group, the auto battery unit would be classified as a _____
cash cow
The director of marketing for 3M tapes tells the rest of the management team, “When it comes to our transparent packaging 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 packaging tape unit falls into which one of the following classifications?
cash cow
The percentage of a market which actually buys a specific product from a specific company is referred to as that product’s
market share
According to the Boston Consulting Group, question marks are characterized as products
having a small share of a growing market and requiring large amounts of cash to build market share
Which of the following is the most specific and detailed type of business strategy?
marketing
High Gliding Air Academy is developing its marketing mix for the coming year. Its managers know that they must first select ____ which may be the most important decision they make in the planning process.
a target market
Which of the following statements about the marketing mix is incorrect?
Once a marketing mix has been created for a particular target market, it cannot be changed until a new strategic window opens
Business decisions made in creating a marketing mix
are only as good as the organization’s understanding of the needs of the target market
All marketing mix decisions must have two characteristics: ____ and ____.
consistency; flexibility
Gucci Group, a marketer of high-fashion products, achieved a company turnaround by ensuring that its brand had the same image and proper display around the world. It also lowered prices on some items, like handbags, to be more competitive. This illustrates a company working to develop a marketing mix that is both ____ and ____.
consistent; flexible
Harley-Davidson’s Harley Owner’s Group (HOG) helps to foster strong relationships between riders and their motorcycles, giving it a(n) ____ over other motorcycle manufacturers.
sustainable competitive advantage
Because of its highly efficient and low-cost distribution system, Walmart has a ____ advantage over Kmart.
sustainable competitive
A marketing plan
provides a framework for implementing and controlling marketing activities
J.C. Penney is presently involved in a process of assessing marketing opportunities and resources, determining marketing objectives, re-defining marketing strategies, and developing guidelines for implementation and control. Thus, J.C. Penney is involved in
marketing planning
Which of the following is not a purpose of the marketing plan?
Serve as a contract with the customer
Hallaway’s Corp.’s new shampoo, VS2, is faltering badly in the market. Hallaway’s marketing personnel are unsure who is responsible for various marketing tasks, when these tasks are to be completed, or what resources have been allocated. Hallaway Marketing Director Carolyn Willis said that the problem is that VS2 has the most poorly written ____ she has ever seen.
marketing plan
The Texas Pitt Barbecue Corporation has conducted a SWOT analysis of its competition, and sees a marketing opportunity for its new Texas Pit Barbecue restaurant. It has developed its marketing plan to include the type of products it will sell, the location for the restaurant, and the pricing it will use. Their plan includes a marketing objective to make a profit of 5% the first year of operation. So far, the owners of the restaurant have eliminated a key piece of the marketing plan, which is ____.
specifying how they will achieve their marketing objective
Which of the following is not a component of a marketing plan?
Product
A marketing plan document usually begins with a(n)
executive summary
The process of putting marketing strategies into action is called
marketing implementation
Sayed’s employer is currently developing a new marketing strategy. The top managers have developed the marketing strategy and have given it to Sayed so that he can now develop an implementation plan. Sayed’s company will most likely end up with which type of strategy?
Centralized
Emma is responsible for developing and implementing the marketing plan for a new type of walking shoe targeted toward older women. Her responsibility includes making sure that the production and deliveries to the retail stores are coordinated for this new product. In order for the marketing implementation to be successful, Emma should be sure the needs of ____ customers are met.
both the internal and external
Starbucks provides training and support to its employees, including health care benefits. Through these ____ efforts Starbucks is better able to deliver quality products and service to its customers.
internal marketing
Megan knows that whether she decides to interact with her customers in person, by phone, online, Facebook, Twitter, or by fax, that ____ should ultimately drive the marketing strategy.
her customers
Zingerman’s Deli operates seven retail stores throughout the city. It plans to develop a new marketing plan to extend its number of stores and operating hours. In developing this marketing plan, it has asked its employees for feedback on the changes it plans to makes. In this case, the employees are Zingerman’s ____ customers.
internal
In a traditional organization, marketing decisions are likely to be
centralized at the top levels of the organization
Mama Vertalli’s Bakery is a family-owned business with over $1 million in annual revenues and six locations. At Mama Vertalli’s, decisions are sometimes slow in coming and top-level managers delegate very little authority to lower-level employees. Mama Vertalli’s is a(n) ____ organization.
centralized
The Kingtel Corporation is expanding operations into countries outside the United States. To improve local managers’ responsiveness to local conditions, Kingel’s senior management has decided to delegate decision-making authority further down the chain of command. Acme is
decentralizing
Marketing managers at Consolidated Equipment Corporation are involved in establishing marketing performance standards, evaluating performance, and reducing the differences between actual and desired performance. These marketing managers are engaged in
strategic performance evaluation
The first step in the strategic performance evaluation is to
establish performance standards
An expected level of performance against which actual performance can be compared is a
performance standard
Morris Business Products Co. distributes its business supply products through direct sales personnel. Recently, the company has established a monthly sales quota of $150,000 for each sales representative. This is a(n)
performance standard
One way that Honda evaluates its product and service level is by how well it ranks on the J. D. Power & Associates Sales Satisfaction Survey. In doing so, Honda is
evaluating actual performance
Marketing managers can take each of the following corrective actions for reducing a discrepancy between established performance standards and actual performance except
coordinating a new step in performance analysis
T/F: Through the process of strategic planning, a firm establishes an organizational mission and goals, corporate strategy, marketing objectives, and a marketing strategy.
true
T/F: It begins with the establishment of revision of an organization’s mission and goals. The strategic planning process begins with a detailed analysis of the organization’s strengths and weaknesses and the identification of opportunities and threats within the marketing environment.
false
T/F: A marketing strategy is a written document that specifies the activities to be performed to implement and control a firm’s marketing activities.
false
T/F: Marketing strategies should be established before marketing objectives are decided.
false
T/F: A strategic window results from the right combination of circumstances and timing, allowing a firm to take action to reach a particular target market.
false
T/F: A core competency is something a firm does extremely well-sometimes so well that it gives the company an advantage over its competition.
true
T/F: A competitive advantage is created when a company matches its core competency to the opportunities it has discovered in the market.
true
T/F: The analysis of strengths and weaknesses focuses on internal factors that give the organization certain advantages and disadvantages in meeting the needs of its target markets.
true
T/F: A long-term view, or vision, of what the organization wants to become is called a mission proclamation.
false
T/F: A firm’s organizational goals should be derived from its opportunities.
false
T/F: A firm’s organizational mission should be derived from its goals.
false
T/F: An organization’s goals focus on the ends or results that the firm seeks.
true
T/F: Marketing objectives should be stated in such a way that the degree of accomplishment can be measured accurately.
true
T/F: Marketing objectives state what is to be accomplished through marketing activities.
true
T/F: A marketing objective need not be consistent with the firm’s overall objectives.
false
T/F: Corporate strategy determines the means for utilizing resources in the functional areas of business to reach the organization’s goals.
true
T/F: Corporate strategic planners focus on dimensions such as competition, diversification, differentiation, environmental focus, and interrelationships among SBUs.
true
T/F: A strategic business unit is not self-supporting in terms of sales, markets, production, and other resources.
false
T/F: A market is a group of individuals and/or organizations that have needs for products in a product class and have the ability, willingness, and authority to purchase these products.
true
T/F: The Boston Consulting Group approach is based on a philosophy that a product’s market growth rate and its market share relative to competition should be helpful in determining its marketing strategy.
true
T/F: The Boston Consulting Group’s model serves as a diagnostic tool to spotlight strategic business units that have an opportunity to grow rather than as a guide for making strategy prescriptions.
true
T/F: Marketing managers can classify a firm’s products into four basic types: stars, cash cows, dogs, and question marks.
true
T/F: Stars are profitable products that usually generate more cash than is required to maintain share.
false
T/F: Cash cows are market leaders that are growing fast, with substantial reported profits.
false
T/F: Question marks exist at a cost disadvantage and exhibit few opportunities for growth at a reasonable cost.
false
T/F: The long-term health of the firm depends solely on having products that generate cash and provide acceptable reported profits.
false
T/F: When properly implemented, a good marketing strategy enables a company to achieve its business-unit and corporate objectives.
true
T/F: The decisions made in creating a marketing mix are only as good as the organization’s understanding of the target market.
true
T/F: Marketing mix decisions must have two characteristics: consistency and timeliness.
false
T/F: Each of the marketing mix elements must work together with the others.
true
T/F: A sustainable competitive advantage is one that cannot be copied by a firm’s competitors.
true
T/F: Marketing planning consists of two major components: marketing objectives and a control process.
false
T/F: Marketing planning establishes an organizational mission and goals, corporate strategy, marketing objectives, and a marketing strategy.
false
T/F: Marketing planning and implementation are inextricably linked in successful businesses.
true
T/F: Marketing plans may be developed for strategic business units, product lines, individual products or brands, or specific markets.
true
T/F: Firms that truly adopt the marketing concept develop a distinct organizational culture based on a shared set of beliefs that makes customers’ needs the pivotal point of the firm’s decisions about strategy and operations.
true
T/F: In a traditional organization, marketing decisions are generally centralized at the top levels of the organization.
true
T/F: Performance standards are derived from marketing objectives that are set while developing the marketing strategy.
true
T/F: The strategic performance evaluation does not monitor the activities of external sources of marketing assistance.
false
T/F: The primary way to reduce the discrepancy between planned and actual performance is to rewrite the performance standard.
false
Your company is holding its annual five-year strategic planning conference. The purpose of the conference is to solidify the go-forward tactics and strategies to enable the company to compete effectively in its industry. You are managing this conference and the various breakout sessions that will take place.

Consistent with the sequence of the traditional strategic planning process, the first breakout session should be
a session where the firm’s mission and goals are established or revised
You asked your stockbroker to consider buying some shares of Facebook, Inc. for your investment account. But, first you want to review the summary points in the SWOT analysis the stockbroker’s firm did on the company. The following summary points were listed in the SWOT analysis:
1. Facebook has a reputation as a market leader and it is quickly establishing a formidable brand loyalty amongst its users.
2. Because of its position in the industry, it risks incurring high costs associated with creating and marketing new products that are designed to perpetuate its industry leadership
These summary points suggest
that Facebook has a first-mover advantage
Marketers understand that the best marketing strategy in the world is doomed to fail if it is not properly implemented. With that in mind, an effective implementation strategy
begins with identifying the activities to be performed, and ends with assigning responsibility for each activity to one or more team members
The ___________________ section of the marketing plan supplies information about the company’s current situation with respect to the ________________, the target market, and the firm’s current objectives and performance.
environmental analysis; marketing environment
You want to include a detailed marketing organizational chart in the company marketing plan.

Which of the following sections of the marketing plan will you include this chart in?
Marketing Implementation
Collecting information from secondary sources such as business, government, trade, and general-interest publications plays an important role in
environmental scanning
Three primary methods of collecting information for environmental scanning are
observation, secondary sources, and marketing research
The Lazy-Boy 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
In 2009 the Coca-Cola Company introduced the “Freestyler,” a new free-standing soda dispensers where consumers can chose from over 120 different types of soda and customize their drink. Freestylers would take the place of typical dispensers where there are only a few different types of soda brands available. In order to develop the new dispenser, Coca-Cola collected information on the soda-drinking habits of individuals in several different age groups, as well as information about new technologies for dispensing liquids from vending machines and the sales of its “fountain” syrup for national restaurant chains to use in their soda machines. Coca-Cola’s collection of this information is an example of _____ while the assessment of its impact on the potential for the new “Freestyler” is an example of _________ ​
environmental scanning; environmental analysis
SiriusXM Radio is concerned about how the increasing use of smart phones will affect the future sales of its satellite radio service. The company decides to gather information about the changing trends in music access and delivery to prepare for this trend. Sirius XM’s process is called
environmental scanning
According to the textbook, a manager’s duties in an environmental analysis include
checking information for accuracy, resolving inconsistencies, and assigning significance to the findings
When PepsiCo takes the information collected through research and attempts to assess and interpret what it means for its soft-drink marketing efforts, PepsiCo is engaged in environmental
analysis
Nabisco learned that health-conscious consumers preferred lower fat snack and lower-carbohydrate foods. At the same time, the firm saw sales of such products slumping and was careful not to launch any new varieties of these products for a while. Which of the following best describes Nabisco’s action?
Environmental analysis
After Home Depot gathers information related to its marketing environment, it attempts to define current environmental changes and predict future changes. This determines possible opportunities and threats facing the company. It illustrates the process that is called
environmental analysis
Marketers who attempt to influence and change the various environmental forces have a(n) ____ response to these forces.
proactive
Toyota has developed aluminum car bodies that are 100 percent recyclable and light enough to help conserve fuel. What kind of response is this to environmental forces?
Proactive
While Silk Soymilk engages in environmental scanning and analysis, the company is more likely to change its products and marketing strategies to adapt to environmental forces rather than trying to influence these forces. Silk Soymilk has a(n) ____ approach to marketing environmental forces.
reactive
Marketers who view political forces as being beyond their control are taking a(n) ____ response toward these forces.
reactive
When marketers define their target market, they simultaneously establish a set of
competitors
Companies that market products with similar features, benefits, and prices to the same customer group are known as ____ competitors
brand
____ competitors provide very different products that satisfy the same basic customer need.
generic
____ competitors are those that compete in the same product class, but their products have different features, benefits, and prices.
Product
Which of the following is not at the generic competitor level for Ford’s Expedition sport utility vehicle?
Ford’s Escape SUV
Marketers primarily focus their environmental analysis on ____ competitors.
brand
In today’s marketing environment, competitors can take on many forms. For example, Diet Coke can be seen as a competitor to Wrigley’s Double Mint chewing gum. In this circumstance, these two products are described as ____ competitors.
total budget
Due to limited resources, a consumer decided to serve Hawaiian Punch to a New Year’s Eve party crowd instead of Korbel champagne. As a result of this action, Korbel and Hawaiian Punch can be viewed as ____ competitors.
generic
Companies that compete for the same limited financial resources of the same customers are known as ____ competitors.
total budget
____ competitors are the most significant to marketers because buyers see the different products of these firms as direct substitutes for each other.
brand
Companies delivering mixed concrete know that it cannot be shipped farther than twenty-five miles because the concrete might harden in the truck. Citrus County Concrete Company is the only supplier of mixed concrete to customers within a thirty-mile radius. Citrus County Concrete is an example of which one of the following competitive structures?
monopoly
The four major competitive structures are
oligopolies, monopolies, monopolistic competition, and pure competition
What type of competitive structure exists when a firm produces a product that has no close substitutes?
Monopoly
The type of competitive structure that exists in the case where there are almost no substitutes for a product is a(n)
monopoly
The American automobile industry was historically dominated by “The Big Three,” referring to General Motors, Ford, and Chrysler. However, as many more foreign competitors began influencing this market, the American companies had to modify and differentiate their products. The automobile industry moved from a(n) ____ structure to a(n) ____ structure.
oligopolistic; monopolistic competition
The Decca Electric Corporation produces light bulbs that are used in refrigerator manufacturing. Currently, only three other companies produce bulbs used in the production of refrigerators, with Decca as the leader in market share. In this case, Decca Electric Corporation would be considered
an oligopoly
Which of the following firms would be most likely to have a monopoly for its competitive environment?
TimeWarner Cable TV
Most marketers operate in a competitive environment of either
oligopoly or monopolistic competition
When a firm has many potential competitors and tries to develop a marketing strategy to differentiate its products from the competitors’ products, a(n) ____ structure exists in the competitive environment.
monopolistic competition
What type of competitive structure exists when just a few sellers control a large portion of the supply of a product?
Oligopoly
Changes Salon is part of the hair and personal care service industry. In what type of competitive environment is Changes Salon most likely operating?
pure competition
The tobacco industry in the United States is dominated by three large companies. When any one of these companies changes its price on tobacco products, the other two companies quickly adjust their prices to match it. From these characteristics, the tobacco industry could best be described as
an oligopoly
J. Pitner Clothing is a medium-size specialty men’s and women’s clothing store in a market with many other specialty stores, department stores, and discounters. It has established a reputation for offering high-quality, fashionable merchandise with quality service. J. Pitner’s competitive environment would best be characterized as
monopolistic competition
In general, which of the following competitive structures is an organization least likely to operate?
Pure competition
The two least common competitive structures are
pure competition and monopolies
The best approach for a company to take when monitoring its competitors is
developing a system for gathering ongoing information about competitors
Volkswagen is planning its promotional strategy for its Passat model. When compared to others in its class, the Passat has average gas mileage, better comfort ratings, more leg room, better interiors, average dependability, and is made in its plants in Tennessee. Which of the following attributes of a Volkswagen Passat would be most appropriate to emphasize in television commercials during an economic recession?
Made in the U.S.A.
In a period of economic recovery, the best marketing strategy for FedEx would be characterized by which of the following features?
flexibility
Assuming that inflation is low, high buying power characterizes the ____ stage of the business cycle.
prosperity
During which stage of the business cycle is unemployment low and total income relatively high?
prosperity
Total buying power declines during periods of economic
recession
Although marketing theory supports the contrary, it is more probable that marketing budgets will be cut during periods of economic
recession
Publix Supermarket is revising its marketing plan for the upcoming quarter. Publix typically focuses on its wide variety of products and its high quality customer service, having very few weekly “sales.” However, during the upcoming quarter, Publix plans to focus on price and value, and promote weekly “values” instead. Publix is most likely in a(n)
recession
Consumer confidence is at a low during periods of
depresseion
Consumer confidence and willingness to spend begins to increase during periods of ____, and marketers must remain very flexible to make the necessary adjustments.
recovery
The strength of a person’s “buying power” depends on economic conditions and
size of resources that can be traded in an exchange
Why are marketers interested in consumers’ levels of disposable income?
It is a ready source of buying power
The amount of money received through wages, rents, investments, pensions, and subsidies is called
income
If Julio Ruiz has an income of $30,000, pays $6,000 in rent, $1,200 in utilities, and $5,000 in taxes per year, his disposable income is
$25,000
Which category of income are marketers most interested in?
Disposable income
A person’s buying power is a function of
income, wealth, and credit
Discretionary income is associated with all of the following except
food
Lindsay was reviewing her bank statement for last month. She had paid her rent, her car payment, electric and phone bills, and made three trips to the grocery. Lindsay had also bought tickets to a Katy Perry concert and new clothes to wear to the concert. The money spent on Lindsay’s rent, car, electric and phone bills was likely from her ____ , while the money spent on the concert tickets and new clothes was from her _____.
Disposable income; discretionary income
The accumulation of past income, natural resources, and financial resources is known as
wealth
Which of the following companies would probably be most interested in tracking discretionary income levels?
BMW automobiles
By offering both credit and financing through its GMAC division, General Motors is trying to help consumers
expand current buying power at the expense of future buying power
When using credit to make purchases, consumers are
increasing current buying power at the expense of future buying power
Which of the following terms refers to consumers’ propensity to buy?
Willingness to spend
Shelby’s new job with the federal government provides a comfortable income and a fairly stable income. She would like to buy a new car now that she has a job; however, Shelby hesitates to purchase a new car because she is concerned about how poor economic conditions may affect her position in the future. Shelby lacks
willingness to spend
Texas rice farmers wish to get their product into the Japanese market but are hindered by a complex maze of regulations imposed by the Japanese government. The farmers are most likely to attempt to influence which aspect of the marketing environment?
political
Textile companies historically face issues concerning the use of child labor in foreign countries and the various regulations created concerning this labor. The type of marketing environment forces executives for these companies are most likely to try to influence are ____ forces.
political
Which of the following statements is true?
The U.S. Supreme Court ruled that the government is not authorized to ban corporate spending in candidate elections
Which of the following actions is illegal?
Paying political officials not to enforce a particular law
Which of the following acts was enacted to prevent businesses from restraining trade and monopolizing markets?
Sherman Antitrust Act
If all the gas stations in a city collaborated to determine what gas prices should be charged, they would be violating the
Sherman Antitrust Act
Which of the following provides protection for and regulates brand names, brand marks, trade names, and trademarks?
Lanham Act
Procompetitive laws are those designed to
preserve competition
International Office Supplies Wholesaler charges different prices to its various customers without any legal justification. This company is in violation of the
Robinson-Patman Act
Price discrimination is prohibited by the ____ Act.
Robinson-Patman
The 1990 Nutrition Labeling and Education Act directly prohibits
exaggerated health claims on food packages
Consumer protection legislation deals with all of the following legal concerns except
monopolistic practices
The Children’s Online Privacy Protection Act prohibits websites and Internet providers from
seeking personal information from children under the age of 13
Which of the following are the most frequently sentenced organizational crimes?
Fraud and antitrust violations
Of all the federal regulatory units, the ____ most heavily influences marketing activities.
Federal Trade Commission (FTC)
After several children became ill while playing with toys imported from outside the U.S., medical researchers found several illegal chemicals, including lead in the paint. These toys were sold primarily through websites on the Internet. Which of the following agencies would most likely have jurisdiction over the problem with lead in the paint of children’s toys?
Consumer Product Safety Commission
The FTC can issue a cease-and-desist order, which is an injunction to
stop doing whatever caused the complaint
Which of the following agencies regulates marketing activities the most?
Federal Trade Commission
Which of the following industries is most commonly regulated by state regulatory agencies?
Utility companies
In its advertisements for Bud Light beer, Anheuser-Busch has decided to include a statement saying “Know when to say when.” This is an example of which one of the following types of regulatory forces affecting marketing efforts?
Self-regulation
Which of the following regulatory groups is a system of nongovernmental, independent, local regulatory agencies supported by local businesses?
The Better Business Bureau
The Pharmaceutical Research and Manufacturers of America sets guidelines for its member firms to follow regarding the use of unethical practices. Thus, it is engaging in
self-regulation
Jared Bledsoe hired Green Gardens, a local landscape firm to plant trees and shrubs in his front yard. The landscape is beautiful when the company is done; however, in just a few days many of the plants begin to die. When Jared complained to the manager of Green Gardens, the manager says that Jared must have done something to them that caused the plants to die, such as overwatering them. Green Gardens doesn’t have any money-back guarantees. Jared is angry that he can’t get a refund or replacement. At this time, Jared’s best course of action would be to contact the
Better Business Bureau
The Better Business Bureau is probably the best-known
nongovernmental regulatory group
In its advertisements, Regent Hair Care Products claims that its KLTR-14 gel will restore the hair of bald men. Even though Regent shows supporting evidence in its ads, members of the National Advertising Review Board (NARB) believe the claim is unsupportable. What action can the NARB take?
File a complaint with the Federal Trade Commission
Which of the following statements about self-regulatory programs is false?
Self-regulatory guidelines generally are stricter than governmental regulatory programs
Which of the following is an advantage that self-regulatory agencies such as the BBB and the NARB have over governmental laws and regulatory agencies?
Establishment and implementation are usually less expensive
When a firm continues to violate what the Better Business Bureau believes to be good business practices, what is one of the main actions the bureau will take?
Warn consumers of the unfair practices
What national self-regulatory organization screens ads?
National Advertising Review Board
Technology is
the application of knowledge and tools to solve problems and perform tasks more efficiently
More than half of the research of technology created is paid for by
the federal government
While playing soccer, Bryan suddenly fell and broke his arm. Needing to get to the hospital, he was not only interested in the nearest location, but also the shortest emergency room wait time. He remembered seeing a billboard for The Cleveland Clinic promoting their time-text service where he could call the number GET-TXT-TIME and they would text him the approximate waiting time at the closest three hospital locations. The Cleveland Clinic is providing enhanced service to its patients by capitalizing on which environmental force?
Technological
The broad nature of technology as it moves through society is referred to as
reach
Which of the following is the best example of utilizing technology to improve consumer relationships?
Waiters recording orders on handheld computers
Technology assessment is
trying to foresee the effects of new products and processes on the firm’s operation and on society in general
UPS is considering its distribution strategy for the next five years. As part of the strategy development, UPS is investigating the use of radio frequency identification, consumer payments through smart phones, Facebook, and Twitter and how they might use these to interface with their customers. UPS is most likely engaging in
technology assessment
Many health care companies are making adaptations to meet the needs of an aging population as the demand for medical services and products such as diabetes supplies increases. This change in marketing strategy is best explained by a change in
demographics
People for the Ethical Treatment of Animals (PETA) have demonstrated against the sale of coats made of animal furs. PETA’s efforts to change shoppers’ attitudes represent a ____ force for fur retailers.
sociocultural
By the turn of the twentieth century, the population of the United States had shifted to three large racial and ethnic groups. These groups are
African-Americans, Hispanics, and Caucasians
The Coca-Cola Company has recognized the significant increase in population diversity within the U.S. soft-drink market. Which one of the following best illustrates the company’s integration of this knowledge into its marketing strategy?
Ads featuring Hispanic actors and Tejano music
The Classic Hotel Group has begun to offer entire floors of rooms in its hotels that are smoke-free, adults-only, and pet-friendly. The Classic Hotel Group is responding to changes in
cultural values
In addition to the proliferation of new organic brands many conventional marketers have introduced organic versions of their products, including Orville Redenbacher, Heinz, and even Walmart. These firms are responding to changes in​
cultural values
Consumerism is a
diverse group of individuals and organizations attempting to protect the rights of consumers
A group of protesters carries signs encouraging people to boycott The Farmer’s Market, a small grocery store in an urban area. The protesters claim that Farmer’s takes unfair advantage of elderly and minority consumers by charging them as much as 20% higher prices than other locations in the suburbs. This protest is part of what we see today as the
consumerism movement
T/F: The marketing environment consists of external forces that directly or indirectly influence an organization’s acquisition of inputs and generation of outputs.
true
T/F: Environmental analysis is the process of collecting information about forces in the marketing environment.
false
T/F: Environmental analysis helps managers identify potential threats and opportunities linked to environmental changes.
true
T/F: Brand competitors market products with similar features, benefits, and prices to the same customers.
true
T/F: Product competitors provide very different products that solve the same problem or satisfy the same basic customer need.
false
T/F: The number of firms that control the supply of a product may affect the strength of competition.
true
T/F: A monopoly exists when a firm with many potential competitors attempts to develop a marketing strategy to differentiate its products.
false
T/F: An oligopoly exists when a firm offers a product that has no close substitutes, making the firm the sole source of supply.
false
T/F: Pure competition is a common competitive environment.
false
T/F: Monitoring the competitive environment guides marketers in developing competitive advantages.
true
T/F: Changes in general economic conditions affect (and are affected by) supply and demand, buying power, willingness to spend, consumer expenditure levels, and intensity of competitive behavior.
true
T/F: A recession is characterized by extremely high unemployment, very low wages, minimal total disposable income, and lack of consumer confidence in the economy.
false
T/F: The strength of one’s buying power depends partially on the state of the economy.
true
T/F: An individual’s after-tax income is called his or her discretionary income, which is used for spending and/or saving.
false
T/F: Disposable income is used to pay taxes, spend, and save.
false
T/F: The total amount of disposable income is affected by the amount of taxes consumers pay.
true
T/F: Decreases in taxes lead to decreases in disposable income.
false
T/F: Credit increases current buying power at the expense of future buying power.
true
T/F: Credit increases future buying power.
false
T/F: An individual can have a high income and very little wealth.
true
T/F: Wealth is an accumulation of past income, natural resources and financial resources.
true
T/F: If a person has buying power, he or she is influenced only by a product’s absolute price.
false
T/F: Wealth enables consumers to gain buying power.
true
T/F: For a given level of buying power, the larger the family, the greater the willingness to spend.
true
T/F: A factor that affects willingness to spend is general economic conditions.
true
T/F: Political and legal forces in the marketing environment are highly interrelated.
true
Which of the following statements about social responsibility is correct?
Social responsibility refers to a company’s obligation to maximize its positive impact and minimize its negative impact on society