Marketing Mid-Term Review

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105 terms · BUS 229.001.12SP: Midterm Exam Review

Marketing refers to

the activity for creating, communicating, delivering, and exchanging offerings that benefit the organization, its stakeholders, and society at large.

The activity for creating, communicating, delivering and exchanging offerings that benefit the organization, its stakeholders and society at large is referred to as __________.

marketing

Whether an individual is buying for personal use or use for his household, or an organization is buying for its own use or for resale, the individual or organization would be considered

a prospective customer (Prospective customers include both individuals, buying for themselves and their households, and organizations that buy for their own use (such as manufacturers) or for resale (such as wholesalers and retailers).)

Marketing seeks to discover the needs and wants of prospective customers and satisfy them. Essential to this process is the idea of exchange. To marketing people exchange refers to the

trade of things of value between buyer and seller so that each is better off after the trade.

Exchange refers to

the trade of things of value between buyer and seller so that each is better off after the trade

6. The trade of things of value between buyer and seller so that each is better off after the trade is referred to as __________.

exchange

The American Red Cross created a series of advertisements encouraging viewers to donate blood. After viewing the advertisement, Amanda went to the local Red Cross office and donated a pint of blood. Amanda returned home feeling happy that she had performed a good deed. Was this a marketing exchange?

Yes, because the donated blood was exchanged for a feeling of satisfaction (Marketers seek to discover and satisfy the needs and wants of customers. The key to achieving these objectives is exchange—the trade of things of value between buyer and seller so that each benefits from the exchange. In this instance, Amanda is the customer and the Red Cross is the marketer. An exchange occurs: Amanda exchanges her donated blood for a feeling of satisfaction, the Red Cross receives the donated blood and continues its readiness to serve the needs of society in times of disaster.)

A church has put advertisements in its weekly bulletins to encourage its members to participate in the services by reading. Jack volunteered and read during a service. He felt satisfied and felt he was contributing to his church. Was this a marketing exchange?

Yes, because reading at the service was exchanged for a feeling of satisfaction (Marketers seek to discover and satisfy the needs and wants of customers. The key to achieving these objectives is exchange—the trade of things of value between buyer and seller so that each benefits from the exchange. In this instance, Jack is the customer and the church is the marketer. An exchange occurs: Jack exchanges his reading at the service for a feeling of satisfaction, the church receives a person to read at the service and continues its weekly services.)

Which of the following statements about marketing activities is most accurate?

The marketing department works closely with other departments and employees to implement marketing activities. (Although an organization's marketing activity focuses on assessing and satisfying consumer needs, countless other people, groups, and forces interact to shape the nature of its activities. The marketing department works closely with a network of other departments and employees to help provide the customer-satisfying products required for the organization to survive and prosper. Environmental forces also shape an organization's marketing activities. Finally, an organization's marketing decisions are affected by and, in turn, often have an important impact on society as a whole.)

The two central concerns of marketing are

discovering and satisfying needs. (Marketing seeks to (1) discover the needs of prospective customers, and (2) satisfy those needs.)

The first objective in marketing is to discover the __________ of prospective customers.

needs (The first objective in marketing is discovering the needs of prospective customers.)

A need refers to

a situation when a person feels deprived of basic necessities such as food, clothing, and shelter. (Even though not everyone's needs are the same, needs occur when a person feels physiologically deprived of something such as clothes, food, or shelter. A want is a felt need that is shaped by a person's knowledge, culture, or individual personality.)

A __________ occurs when a person feels deprived of basic necessities such as food, clothing, and shelter.

need

A want refers to

a felt need that is shaped by a person's knowledge, culture, or individual personality. (Even though not everyone's needs are the same, needs occur when a person feels physiologically deprived of something such as clothes, food, or shelter. A want is a felt need that is shaped by a person's knowledge, culture, or individual personality.)

A __________ is a need that is shaped by a person's knowledge, culture, and personality.

want

Marketing discovers consumer needs by

using extensive preliminary research. (According to Figure 1-3 in the text, marketing seeks first to discover consumer needs through extensive research on them. It then seeks to satisfy those needs by successfully implementing a marketing program possessing the right combination of the marketing mix—the four Ps.)

People with both the desire and ability to buy a specific offering are referred to as a __________.

market

Market refers to

people with the desire and ability to buy a specific offering.

Target market refers to

one or more specific groups of potential consumers toward which an organization directs its marketing program.

One or more specific groups of potential consumers toward which an organization directs its marketing program is referred to as a

target market.

The United States Army has recently been both praised and criticized for its use of a popular video game-America's Army designed to reach potential recruits. The game's creator Col. Casey Wardynski wanted to provide a sense of the training and teamwork one could find in the military environment. The game is designed for "boys 14 years or older;" these players represent the Army's __________.

target market (A target market is one or more specific groups of potential consumers toward which an organization directs its marketing program. In this case, although 14 year olds cannot serve in the military, a positive attitude or association with the game and its content now could lead to potential recruits in the future.)

The element of the marketing mix that describes a good, service, or idea to satisfy the consumer's need is

product.

The element of the marketing mix that describes what is exchanged for a product is

price.

The element of the marketing mix that describes a means of communication between the seller and buyer is

promotion.

The element of the marketing mix that describes a means of getting the product to the consumer is

place.

The four Ps are commonly known as

the marketing mix or controllable factors.

The marketing manager's controllable factors-product, price, promotion, and place-that can be used to solve a marketing problem are referred to as the __________.

marketing mix

Marketing mix refers to

the marketing manager's controllable factors-product, price, promotion, and place--that can be used to solve marketing problems.

The uncontrollable forces in a marketing decision involving social, economic, technological, competitive, and regulatory forces are referred to as __________.

environmental forces

Environmental forces refer to

the uncontrollable forces in a marketing decision involving social, economic, technological, competitive, and regulatory forces.

The five major environmental forces considered in marketing are

social, technological, economic, competitive, and regulatory.

Customer Relationship Management refers to

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 primary encounters.

The societal marketing concept is

the view that an organization should satisfy the needs of consumers in a way that provides for society's well-being.

The American business period that attempts to satisfy consumer needs while achieving organizational goals is called the __________ era.

marketing concept (In the 1960s, marketing became the motivating force among many American firms. The policy of those seeking to satisfy the needs and wants of consumers while achieving organizational goals has come to be known as the marketing concept.)

Many companies subscribe to being "green" because they feel that this is valued by the consumer. Yet, often in these same firms, office computers are left on 24 hours a day, office paper is not recycled, and employees are not encouraged to take public transportation to work. This example indicates it is not always easy for firms to act in accordance with the

marketing concept. (The marketing concept is the idea that an organization should (1) strive to satisfy the wants of consumers (2) while also trying to achieve the organization's goals. In this example the organization would like consumers to view it as green, yet it is unable to carry out policies that will help achieve that goal.)

Which of the following terms best describes the marketing concept era?

Consumer oriented (The marketing concept is the idea that an organization should (1) strive to satisfy the wants of consumers (2) while also trying to achieve the organization's goals.)

An organization that focuses its efforts on (1) continuously collecting information about customers' needs, (2) sharing this information across departments, and (3) using it to create customer value is said to have a

market orientation.

In keeping with its mission, Ben & Jerry's

committed to buying its milk and cream from one dairy cooperative whose members guarantee the supplies are bovine growth-hormone free. (Ben & Jerry's buy its milk and cream from one dairy cooperative whose members guarantee the supplies are bovine growth-hormone free.)

A(n) _________ is a legal entity of people who share a common mission.

organization

A(n) _________ is a product, service, or idea that creates value for both the organization and its customers by satisfying their needs and wants.

offering

Business firm refers to

a privately owned organization that serves its customers to earn a profit so that it can survive.

The reward to a business firm for the risk it undertakes in marketing its offerings is referred to as

profit.

Profit refers to

the money left over after a business firm's total expenses are subtracted from its total revenues and is the reward for the risk it undertakes in marketing its offerings.

Which statement best describes the most significant difference between a business firm and a nonprofit organization?

Both serve customers, but business firms seek a profit while nonprofit organizations do not. (A business firm is a privately owned organization that serves its customers in order to earn a profit so that it can survive. A nonprofit organization is a nongovernmental organization that serves its customers but does not have profit as an organizational goal.)

Organizations that develop similar offerings, when grouped together, create a(n)

industry.

The level in an organization where top management directs overall strategy for the entire organization is referred to as the

corporate level.

A subsidiary, division, or unit of an organization that directs overall strategy for the organization that markets a set of related products to a clearly defined group of customers is referred to as a(n)

strategic business unit.

At the functional level, the organization's strategic direction becomes

the most specific and most focused in terms of implementing the company's goals. (At the functional level, the organization's strategic direction becomes its most specific and focused.)

An organization's __________ are the fundamental, passionate, and enduring principles that guide its conduct over time.

core values

Which of the following statements regarding core values is most accurate?

Core values establish the norms of the firm's organizational culture. (Core values are developed by an organization's founders or senior management and are consistent with their essential beliefs and character. Core values capture the collective heart and soul of the organization. They should inspire and motivate employees to take productive action. Core values are timeliness, they should not change due to short-term financial, operational, or strategic concerns. They establish the norms of its organizational culture, and influence its strategy.)

The term that links the employees, shareholders, board of directors, suppliers, distributors, creditors, unions, government, local communities, and customers of an organization is

stakeholders

By understanding its core values, an organization can take steps to define its _________, a declaration of the organization's functions in society, often identifying its customers, markets, products, and technologies.

mission statement

The terms __________ and a mission statement are often used interchangeable.

vision

A set of values, ideas, attitudes, and norms of behavior that is learned and shared among the members of an organization is referred to as its

organizational culture.

Organizational culture refers to

a set of values, ideas, attitudes, and norms of behavior that is learned and shared among the members of an organization.

Business refers to

the clear, broad, underlying industry or market sector of an organization's offerings.

The ratio of sales revenue of the firm to the total sales revenue of all firms in the industry, including the firm itself, is referred to as

market share

Market share refers to

the ratio of sales revenue of the firm to the total sales revenue of all firms in the industry, including the firm itself.

Marketing plan refers to

a road map for the marketing activities of an organization for a specified future time period, such as one year or five years.

A road map for the marketing activities of an organization for a specified future time period, such as one year or five years is referred to as a _________.

marketing plan (A marketing plan is a road map for the marketing activities of an organization for a specified future time period, such as one year or five years.)

Rhone-Poulenc is an international French company that produces and markets a variety of chemicals and pharmaceuticals. Due to the resources it makes available to its scientists and researchers, the company has a number of Nobel Prize winners working in its laboratories. This ability to attract some of the finest minds in the world to its workforce is an example of a(n):

core competency. (Competencies are an organization's special capabilities, including skills, technology, and resources that distinguish it from other organizations and that provide value to its customers.)

Environmental scanning refers to

continually acquiring information on events occurring outside the organization to identify and interpret potential threats.

From the start of the war on terrorism, over $200 billion has been spent on the war effort in Iraq. According to an environmental scan of the United States, this military expenditure is an example of a change in __________ forces.

economic (The increased military expenditure related to the war on terrorism is an example of a change in economic forces.)

Which of the following statements regarding environmental scanning is the most accurate?

Environmental scanning identifies and interprets potential trends (The process of continually acquiring information on events occurring outside the organization to identify and interpret potential trends is called environmental scanning. Answer "c" negates the idea that you react to changes in the environment whenever they might affect you.)

The demographic characteristics of the population and its values are referred to as

social forces

The social forces of the environment include the demographic characteristics of the population and its __________. Changes in these forces can have a dramatic impact on marketing strategy.

values (The social forces of the environment include the demographic characteristics of the population and its values.)

The social forces of the environment include the __________ of the population and its values. Changes in these forces can have a dramatic impact on marketing strategy.

demographic characteristics

The description of a population according to selected characteristics such as age, gender, ethnicity, income, and occupation is referred to as __________.

demographics

Baby boomers are an important target market because they

account for the majority of purchases of most consumer products and services (As the 76 million baby boomers have aged, their participation in the work force and their earnings have increased, making them an important consumer market. Their participation in the workforce has made them the wealthiest generation in U.S. history, with an estimated $1 trillion in annual buying power.)

The name given to the group of consumers who are self-reliant, entrepreneurial, supportive of racial and sexual diversity, and not prone to extravagance is __________.

Generation X (Generation X includes the 15 percent of the population born between 1965 and 1976. This is a generation of consumers who are self-reliant, entrepreneurial, supportive of racial and ethnic diversity, and better educated than any previous generation. They are not prone to extravagance and are likely to pursue lifestyles that are a blend of caution, pragmatism, and traditionalism.)

This generation is known as a savvy and demanding group of consumers who feel personally responsible for making a difference in the world. They also have an extraordinary optimism about their potential for fame and fortune.

members of Generation Y (Generation Y includes those born between 1977 and 1994. Members of this group are strong-willed, passionate about the environment, and optimistic.)

Which of the following is an example of how Generation Y members are different from other generations?

They are attracted to purposeful work where they have control. (Generation Y includes the 72 million Americans born between 1977 and 1994. They are also called echo boom or baby boomlet. They are attracted to purposeful work where they have control.)

Younger members of Generation Y are also referred to as

Millennials.

Marketers have developed generational marketing programs because

members of each generation are distinctive in their attitudes and consumer behavior.

The set of values, ideas, and attitudes that are learned and shared among the members of a group are referred to as __________.

culture

Culture refers to

the set of values, ideas, and attitudes that are learned and shared among the members of a group.

In a survey conducted immediately after the World Trade Center attack, 47 percent of the women who responded to the survey said they would not treat themselves to small luxuries like manicures and 54 percent said they would not buy any expensive clothes. The results of this survey most directly relate to __________ forces within the environmental scan.

economic (Buying intentions reflect a perspective of consumer income and are part of the microeconomic environment.)

In a(n) __________ economy, the cost to produce and buy products and services escalates as prices increase.

inflationary (In an inflationary economy, the cost to produce and buy products and services escalates as prices increase.)

In an inflationary economy, the cost to produce and buy products and services __________ as prices

escalates; increase (In an inflationary economy, the cost to produce and buy products and services escalates as prices increase.)

A time of slow economic activity when businesses decrease production, unemployment rises, and many consumers have less money to spend is referred to as

a recession. (Recession is a time of slow economic activity. Businesses decrease production, unemployment rises, and many consumers have less money to spend.)

Components of a consumer's income include

gross, disposable, and discretionary incomes (A consumer's ability to buy is related to actual income, which consists of gross, disposable, and discretionary components.)

The total amount of money made in one year by a person, household, or family unit is referred to as __________ income.

gross

The money a consumer has left after paying taxes to use for food, shelter, clothing, and transportation is referred to as __________.

disposable income

Discretionary income refers to

the money that remains after paying for taxes and necessities

Technology refers to

the inventions or innovations from applied science or engineering research.

The form of competition in which ever company has a similar product is referred to as __________.

pure competition

Regulation refers to

the restrictions that state and federal laws place on business with regard to the conduct of its activities.

Factors influencing personal, moral, philosophy, and ethical behavior include societal culture and norms, business culture and industry practices, and

corporate culture and expectations. (Figure 4-1 in the text provides a framework for understanding ethical behavior. Each of the influences will have an effect on ethical marketing behavior. These include societal culture and norms, business culture and industry practices, and corporate culture and expectations.)

The Consumer Bill of Rights refers to

a law that codified the ethics of exchange between buyers and sellers, including the rights to safety, to be informed, to choose, and to be heard.

The Children's Online Privacy Protection Act (1998) is a law designed to protect consumers'

right to be informed. (The consumer right to be informed has spawned much federal legislation, such as the Children's Online Privacy Protection Act (1998), and self-regulation initiatives restricting disclosure of personal information.)

A current practice whereby retailers may demand cash or free goods in exchange for shelf space for new products is referred to as

slotting allowances (Relating to the right to choose, today many supermarket chains demand "slotting allowances" from manufacturers, in the form of cash or free goods, to stock new products.)

Two laws specifically intended to curb economic espionage and bribery in international marketing are the:

Economic Espionage Act and Foreign Corrupt Practices Act (The prevalence of economic espionage and bribery in international marketing has prompted laws to curb these practices. Two significant laws, the Economic Espionage Act (1996) and the Foreign Corrupt Practices Act (1977), address these practices in the United States.)

Corporate culture refers to

a set of values, ideas, and attitudes that is learned and shared among the members of an organization.

What was the consequence to the Coca-Cola employee who tried to sell classified information to Pepsi?

The employee was sentenced to eight years in prison and ordered to pay $40,000 in restitution. (The consequence to the Coca-Cola employee who tried to sell Pepsi information was an eight year prison sentence and a $40,000 fine. The other accomplices were sentenced to five years in prison.)

A firm's formal statement of ethical principles and rules of conduct is called a

code of ethics

Employees who report unethical or illegal actions of their employers are referred to as

whistle-blowers

The owners of Ben & Jerry's Homemade, Inc. adhere to the belief that the company should in no way harm the environment and when possible, it should improve its environment. This is an example of the __________ philosophy.

moral idealism (The philosophy of moral idealism is a personal moral philosophy that considers certain individual rights or duties as universal, regardless of the outcome.)

The idea that organizations are part of a larger society and are accountable to that society for their actions is referred to as

social responsibility

Social responsibility refers to

the view that organizations are part of a larger society and are accountable to that society for their actions.

Profit responsibility refers to

the duty of a firm to maximize profits for its owners or stockholders.

Marketing efforts to produce, promote, and reclaim environmentally sensitive products are referred to as

green marketing

A formal marketing practice, which occurs when the charitable contributions of a firm are tied directly to the customer revenues produced through the promotion of one of its products, is referred to as

cause marketing.

A systematic assessment of a firm's objectives, strategies, and performance in terms of social responsibility is referred to as a(n)

social audit.

Social audit refers to

a systematic assessment of a firm's objectives, strategies, and performance in terms of social responsibility.

Conducting business in a way that protects the natural environment while making economic progress is referred to as

sustainable development.

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