Marketing 341 Final

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The marketing concept is a philosophy of customer satisfaction and

mutual gain

Many Critics charge that the American marketing system causes to be higher than they would be under more "sensible" systems

Prices

Critics charge that intermediaries

are inefficient

A long-standing charge against intermediaries is that they mark up prices beyond the

value of their services

Marketers respond to charges of high advertising and promotion costs unnecessarily increasing retail prices by arguing that advertising adds

value by providing information about product availability

Most businesses try to deal fairly with consumers because

businesses want to repeat business

Deceptive practices fall into three groups; deceptive deceptive , deceptive .

pricing, promotion, packaging

Deceptive promotion differs from deceptive pricing in that deceptive promotion overstates the product's or .

feature's; performance

A major step in regulating "unfair or deceptive business acts and practices" was the enactment of the in 1938

Wheeler-Lea Act

Advertising "puffery" is the term for

innocent exaggeration for effect

When critics claim that insurance, real state, and used cars are sold, not bought, they are making accusations of the use of .

high-pressure selling

Consumers Union, the nonprofit testing and information organization. publishes to assist the consumer in choosing products and encourage businesses to eliminate product flaws

Consumer Reports

Critics have charged that some companies intentionally maufacture their products with materials or components that cause the product to need to be replaced before it actually should need replacement. What is this called?

Planned obsolesence

Planned obsloescennce might involve all of the following except which one?

the use of unsafe materials

Marketers respond to charges of planned obsolescennce with all of the following except which one?

The product will eventually wear out anyway.

Critics claim that companies in the industries introduced planned streams of new products that make older models obsolete, a form of planned obsolescence that harms consumers

consumer electronics and computer

Critics who believe that the American marketing system poorly serves disadvantaged consumers claim that
the pay more for inferior goods

urban poor

The presence of in low-income neighborhoods makes a big difference in keeping prices down

large national chain stores

When major chain retailers avoid placing stores in disadvantaged neighborhoods, they are likely to be accused of hte discriminatory practice
of .

redlining

Critics have charged that the marketing systems urges too much interest in .

material possessions

Critics of the American economic marketing system have charged that marketers have created a culture in which people are judged by what
they .

own

A drive for wealth and possessions hit new highs in the , when phrases such as "greed is good" and "shop till you drop" seemed to charactersize the times

1990s

In the current decade, social scientists have noted a .

reaction against waste

The critics do not view the typical American interest in materail things as

a natural state of mind

Businsses hire firms to use mass media to create materialistic models of the good life

Madison Avenue

Critics say marketing is seen as benefiting more than .

industry; consumers

Marketers are most effective when they appeal to rather than when they .

existing wants; attempt to create new ones

The high failure rate of new procducts shows that companies are not able to .

control demand

The overselling of private good results in , such as cars causing traffic jams, air pollution, injuries, and deaths

social costs

To restore the balance between private and public goods, producers could be required to bear the full costs of their operations

social

For cars, "social costs" include all of the following except which one?

congestion tolls

Cultural pollution could be referred to as

commercial noise

A major way to reverse the cultural pollution caused by marketing is to adjust

advertising levels

In response to charges of , marketers point out that advertising makes much of television and radio free to users and also keeps down the cost of magazines and newspapers

cultural polloution

Critics charge that a company's marketing practices can harm other companies and reduce competition among companies. Problems involved include all of the following except which one?

marketing practices that confuse consumers

which of the following is most responsible for the shrinking number of competitors in almost every major industry?

acquisition of competitiors

Large marketing companies can use patents and heavy promotion spending to

set up barriers for others willing to enter the industry

Which of the following is not a potential advantage of the practice of acquisition

Acquisitions require little government oversight

Setting prices below cost, threatening to cut off business with suppliers, and discouraging the purchase of a competitor's products are all examples of

predatory competition

The two major movements to keep business in line are environmentalism and

consumerism

The first organized consumer movement in the US took place early 1990s. It was fueled by all of the following conditions excepts which one?

Unsafe merchandise

Ralph Nader is most closely associated with which of the following

the consumerism movement of 1960s

is an organized movement of citizens and government agencies to improve the rights and power of buyers in relation to sellers

Consumerism

Which of the following is not a traditional sellers' right?

the right to promote any product to any audience

Many people believe that the balance of power in the buyer-seller relationship lies on the seller's side. Critics believe that buyers have too little education, protection, and to make wise decisions when facing sophisticated sellers.

information

Consumer advocates call for all of the following additional consumer rights except which one?

The right to be protected from unwanted marketing messages

Proposals related to the consumer's right to include controlling the ingredients that go into certain products and putting consumer representatives on company boards to speak for consumer interests.

influence products and marketing practices in ways that will improve the "quality of life"

is an organized movement of concerned citizens and government agencies to protect and improve people's living environment

Environmentalism

Environmentalists assert that the marketing system's goal should be to maximize

life quality

The in the US came about because of concern for the loss of the atmosphere's ozone layer, toxic waters, litter, and the damage caused by strip mining and forest depletion

first wave of modern environmentalism

is a management approach that involves developing strategies that both sustain the environment and produce profits for the company

Environmentalism sustainability

Environmental sustainability includes

protecting the environment and extracting environmental materials to their lowest levels

Companies emphasizing are developing "green marketing" programs that develop ecologically safer products, recyclable and biodegradable packaging, more energy-efficient operations, and better pollution controls.

pollution prevention

Which of the following is not a component of "green marketing"

cradle-to-cradle products

Minimizing pollution from production and all environmental impacts throughout the full products life cycle is called

product stwearship

Design for environment (DFE) involnes thinking ahead in the design stage to create products that are easier to reuse, recycle or

recover

What do most companies today focus on when it comes to protecting the environment

investing heavily in pollution prevention

Xavier Rentals Inc. is now looking into to future and working internally on the third level of environmental sustainability, which is called

new clean technology

As international trade barriers come down and global marketers expand, environmental issues are
having impact on international trade.

a greater

The philosophy of holds that a company's marketing should support the best long-run performance of the marketing system

enlightened marketing

Innovative marketing is

A, B, and C
A principle of enlightened marketing;
based on the consumer's point of view;
the attempt to continuously seek product and marketing improvements

Which form of enlightened marketing requires that a company seek real product and marketing improvements

innovative

Some firms define their purpose in narrow product terms. Others define their purpose in broad social terms follow

sense-of-mission marketing

When an enlightened company makes marketing decisions by considering consumers' wants and interests, the company's requirements, and society's long-run interests, it is practicing marketing

societal

What are deficient products

products that have neither immediate appeal nor long-run benefits

A company that makes products that give high immediate satisfaction but may hurt consumers in the long run makes products

pleasing

Examples of pleasing products include

cigaretts and junk food

Which of the following is the best example of a desirable product

junk food

In societal marketing, the ideal goal for companies is to turn all their products into ones

desirable ones

The challenge for marketers of which type of product is to add long-run benefits without reducing the product's pleasing qualities

pleasing

The challenge for markers of which type of product is to add some pleasing qualities so that it will become more desirable in the consumers' minds?

Salutary

Companies must decide what principle they should use as a guide on issues of ethics and social responsibility. Which of the following is not a common philosophy to accomplish this end?

Let society decide

One major issue in foreign trade is bribery. Bribery and corruption are common in all of the following countries except

New Zealand

The American Marketing Association (AMA) has created a code of ethics that includes all but which of the following ethical values

competitiveness

Chapter 15

...

International trade growth is most visible in

developing countries

industries are safe from foreign competition

Few

As global trade is growing, global competition is

intensifying

Firms that play it safe and do not enter the global market are likely to lose their chances to enter other markets

and risk losing their home markets

A is one that, by operating in more than one country, contains marketing, production, research and development, and financial advantages that are not available to purely domestic competitors.

global firm

Which of the following is not one of the major decisions a company faces in international marketing?

deciding how to set standardized prices

A is a tax levied by a foreign government against certain imported products

tariff

A is a limit on the amount of goods that an importing country will accept in certain product categories

quota

An serves to limit the amount of foreign exchange and the exchange rate against other currencies

exchange control

Bias against bids made by American companies is an example of a

non-tariff trade barrier

Which of the following is designated to help foster trade between nations?

GATT

The is a 60 year old treaty designed to promote world trade by reducing tariffs and other current international trade barriers

GATT

Concluding in 1994 the Uruguay Round reduced trade barriers, set international standards for trade and established the to enforce GATT rules

EU

Which of the following reduced the world's merchandise traffis by 30% toughened international protection of copyrights and trademarks and has been extended to cover trade in agriculture and a wide range of services

GATT

Economic communities are also known as

free trade zones

is a group of nations organized to work toward common goals in the regulation of international trade

An economic community

The European Union and NAFTA (North American Free Trade Agreement) are examples of

economic communities

Which of the following is true regarding economic communities

Tariffs are typically lower or nonexistent between countries in the community

There is concern that through the , lower barriers inside Europe will create only thicker outside walls

European Union

Which of the following is an advantage created by the adoption of the euro?

European countries with previously weak currencies are more attractive markets

In January 1994, established a free trade zone among US, Canada, and Mexico

NAFTA

What is the name of the single agreement that created a market of 443 million people and will eliminate all trade barriers and investment restrictions among the US, Mexico, and Canada?

NAFTA

Given the apparent success of NAFTA, talks have been underway since 1994 to establish a free trade zone called . This zone would include 34 countries stretching from the Bering Strait to Cape Horn

FTAA

Mercusor and CAN have agreed to unite, creating , which will make up the largest trading block after NAFTA and the European Union

Unasur

The two key economic factors reflecting a country's attractiveness as s market are its industrial structure and its

income distribution

In a , the vast majority of people engage in simple agriculture and consume most of their output

subsistence economy

are major exporters of manufactured goods, services, and investment funds. They trade goods among themselves and export them to other types of economies for raw materials and semi-finished goods.

Industrializing economies

In an economy, manufacutring accounts for 10-20% of the country's economy. This type of economy typically has a new rich class and a small but growing middle class, both demanding new types of imported goods.

Industrializing

A economy is poor in some ways but rich in one or more natural resources responsible for creating most of its exporting revenue

raw-materical exporting

Very few market opportunities are available in a economy

subsistence

Industrializing economies do not include

Sweden

Which of the following types of economies is most likely to have significant numbers of low-income, medium-income, and high-income households?

industrial economy

Countries with economies may consist mostly of households with very low family incomes

subsistence

At least four political-legal factors should be considered in deciding whether to do business in a given country. which is not one of these factors?

Whether a state religion is enforced

In international trade, it is ideal if the buyer can pay in

the seller's currency

All of the following are methods of countertrade except which one?

paying in the seller's currency without further obligation

What type of countertrade occurs when a seller sells a plant, equipment, or technology to another country and agrees to take payment in the resulting products?

buyback

Which of the following is the most common form of countertrade

counterpurchase

It is important to understand how business norms vary form country to country. For example, like to sit or stand very close to each other when they talk business- in fact, nose-to-nose

South Americans

Why might Asian businesspeople be offended by the typical bargaining tactics of American executives

Asian executives prefer to start business meetings with polite converstations

Some social critics say that globalization really
means the world's cultures

Americanizing

Which of the following is an example of how American culture is being exported to the world's countries

the expansion of Wal-Mart Supercenters

has ben singled out by globalization protestors all over the world, especially when anti-American sentiment peaks

All of the above:
Nike
KFC
McDonalds
Coca-Cola

Which of the following would a defender of globalization most likely use as an example to argue that concerns of Americanization are overblown and that globalization is indeed a two-way street

the growing number of IKEA furniture stores

Which type of business is least likely to find it necessary to enter international markets in order to survive

Small, local businesses

Which of the following is a factor that is likely to push a company to decide not to enter international markets

the company would have to redesign its products

Several factors might draw a company into the international arena. What is not one of these factors?

Managers are unsure of the effect of regulations and the political environments of other countries

Of the following which is the least critical decision a company should make before going abroad

how many people it wants to employ

Demographic characteristics, geographic characteristics, economic factors, socioculture factors and political and legal factors all help a company

determine a market's potential

Which of the following is a socioculture factor that a company should consider before deciding to enter an international market?

consumer lifestyles, beliefs, and values

Which of the following is a political and legal factor that a company should consider before deciding to enter an international market

monetary and trade regulations

Which is not a mode of entry that companies can use when they have decided to sell in a foreign country

embargo

The simplest way to enter a foreign market is through

exporting

When entering a foreign market, companies typically start
with , working through independent international marketing intermediaries

indirect exporting

Sellers may eventually move into , whereby they handle their own exports. The investment and risk are somewhat greater in this strategy

direct exporting

A company can conduct exporting in several ways. Which is not one of these ways?

It can work through independent international marketing intermediaries

A gives the seller more presence and program control in the foreign market and often serves as a display center customer service center

Sale branch

is a method of entering a foreign market that involves a company coming together with a foreign company to produce or market products and services

Joint venturing

There are four types of ventures. Which is not one of these types?

direct investment

Through , an organization in the foreign market buys the right to use a company's manufacturing process, patent, trade secret, or other item of value.

licensing

Which of the following is not a potential disadvantage of licensing

The company has less control over the licensee than it would over its own operations

ventures consist of one company joining forces with foreign investors to create a local business in which they share ownership and control

Joint ownership

involves entering a foreign market by developing foreign-based assembly or manufacturing facilities

Direct investment

Which of the following represents the biggest involvement of company can take in a foreign market

direct investment

Lower costs in the form of cheaper labor or raw materials, foreign government investments incentives, foreign savings, and the opportunity to improve the company image are all factors that would likely lead to a company to in a foreign market

make a direct investment

means selling largely the same products and using the same marketing approaches worldwide

Standardized global marketing

"Take the product as is and find customers for it" is the slogan for

straight product extension

means adjusting the marketing strategy and mix elements to each international target market

Adapted global marketing

The concept holds that marketing programs will be more effective when tailored to the unique needs of each targeted customer group

marketing

Which of the following is not one of the five stragtegies for adapting product and marketing communications to a global market?

External extension

Changing promotions for each local market is known as

communication adaptation

Regadless of how companies go about pricing their products, their foreign prices will probably be their domestic prices

higher than

The two major links between the seller and the final buyer of channels between nations and channels within nations make up a

whole-channel view

World product groups, geographic organizations, and international subsidiaries are all options for organizing

international division

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