mkt capstone dr B

1341 terms by kiskaroly83 

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Which of the following statements about marketing is true?

B) It can help create jobs in the economy by increasing demand for goods and services.

B
Page Ref: 2
Objective: 1
Difficulty: Easy

________ goods constitute the bulk of most countries' production and marketing efforts.
A) Durable
B) Impulse
C) Physical
D) Luxury
E) Intangible

C
Page Ref: 3
Objective: 2
Difficulty: Easy

Car rental firms, hair dressers, and management consultants provide ________.
A) goods
B) experiences
C) events
D) services
E) information

D
Page Ref: 3
Objective: 2
AACSB: Analytic Skills
Difficulty: Easy

The Soccer World Cup is promoted aggressively to both companies and fans. This is an example of marketing a(n) ________.
A) idea
B) place
C) luxury item
D) event
E) service

D
Page Ref: 3
Objective: 2
Difficulty: Moderate

In Walt Disney's Magic Kingdom, customers can visit a fairy kingdom, a pirate ship, or even a haunted house. Disney is marketing a(n) ________.
A) experience
B) service
C) event
D) organization
E) good

A
Page Ref: 3
Objective: 2
AACSB: Analytic Skills
Difficulty: Easy

________ are basic human requirements, while ________ are the ways in which those requirements are satisfied.
A) Wants; needs
B) Demands; wants
C) Needs; wants
D) Needs; demands
E) Demands; needs

C
Page Ref: 5
Objective: 3
Difficulty: Easy

When Frank buys his own house, he would like to have a home theater system and a jacuzzi. He plans to save enough money in the next three years so that he can fulfill his wish. Frank's desire for the home theater and the jacuzzi is an example of a(n) ________.
A) need
B) want
C) demand
D) unstated need
E) latent demand

B
Page Ref: 5
Objective: 3
AACSB: Analytic Skills
Difficulty: Moderate

A(n) ________ need is one that the consumer is reluctant or unwilling to explicitly verbalize.
A) secondary
B) unstated
C) delight
D) secret
E) state

D
Page Ref: 6
Objective: 3
Difficulty: Moderate

A(n) ________ need is a need that the consumer explicitly verbalizes.
A) stated
B) affirmative
C) unsought
D) delight
E) secret

A
Page Ref: 5
Objective: 3
Difficulty: Moderate

Companies address needs by putting forth a ________, a set of benefits that they offer to customers to satisfy their needs.
A) brand
B) value proposition
C) deal
D) marketing plan
E) demand

B
Page Ref: 6
Objective: 3
Difficulty: Moderate

________ reflects a customer's judgment of a product's performance in relation to his or her expectations.
A) Brand equity
B) Satisfaction
C) Value
D) Perception
E) Brand image

B
Page Ref: 6
Objective: 3
Difficulty: Easy

The value of an offering is described as ________.
A) the price consumers are charged for a product
B) the cost of manufacturing a product
C) the degree to which consumer demand for a product is positive
D) the sum of the tangible and intangible benefits and costs to customers
E) the intangible benefits gained from a product

D
Page Ref: 6
Objective: 3
Difficulty: Moderate

When Volvo runs ads suggesting that its cars are the safest that money can buy, it is trying to ________.
A) segment the market
B) provide a service
C) enter into a new market
D) develop brand loyalty
E) position its product

E
Page Ref: 6
Objective: 3
AACSB: Analytic Skills
Difficulty: Moderate

The actual and potential rival offerings and substitutes that a buyer might consider are referred to as the ________.
A) supply chain
B) global market
C) value proposition
D) competition
E) marketing environment

D
Page Ref: 7
Objective: 3
Difficulty: Easy

The ________ includes the actors involved in producing, distributing, and promoting an offering. The main actors are the company, suppliers, distributors, dealers, and the target customers.
A) economic environment
B) management environment
C) strategic environment
D) task environment
E) tactical environment

D
Page Ref: 7
Objective: 3
AACSB: Analytic Skills
Difficulty: Moderate

Rising promotion costs and shrinking profit margins are the result of ________.
A) new and improved technology
B) disintermediation
C) industry convergence
D) privatization
E) heightened competition

E
Page Ref: 8
Objective: 4
Difficulty: Moderate

Industry boundaries are blurring rapidly as companies identify new opportunities at the intersection of two or more industries. This is called ________.
A) globalization
B) customization
C) industry convergence
D) disintermediation
E) privatization

C
Page Ref: 8
Objective: 4
Difficulty: Easy

The success of online purchasing resulted in ________ in the delivery of products and services by intervening in the traditional flow of goods through distribution channels.
A) disintermediation
B) diversification
C) reduced competition
D) deregulation
E) privatization

A
Page Ref: 8
Objective: 4
Difficulty: Moderate

When eBay and Amazon.com cut out the majority of middlemen that normally would participate in the exchange process, it is an example of ________.
A) deregulation
B) reverse auctioning
C) reintermediation
D) disintermediation
E) diversification

D
Page Ref: 8
Objective: 4
AACSB: Use of information technology
Difficulty: Moderate

Disintermediation via the Internet has resulted in ________.
A) higher prices
B) stronger brand loyalty
C) greater emphasis on personal selling
D) well-established brand names
E) greater consumer buying power

E
Page Ref: 8
Objective: 4
AACSB: Use of information technology
Difficulty: Moderate

Each of the following is true about the Internet's impact on the way business is conducted today, EXCEPT one. Identify the exception.
A) It has facilitated high-speed communication among employees.
B) It has empowered consumers with easy access to information.
C) It can be used as a powerful sales channel.
D) It has facilitated mass marketing but not the sale of customized products.
E) It enables marketers to use social media to advertise their products

D
Page Ref: 8
Objective: 4
AACSB: Use of information technology
Difficulty: Easy

What are customer touch points?
A) all aspects of the offering that directly affect consumer preferences
B) all needs and wants of customers
C) all direct or indirect interactions between the customer and the company
D) all interactions between customers and competitors
E) all factors that affect buying behavior

C
Page Ref: 4
Objective: 4
Difficulty: Moderate

Which of the following holds that consumers prefer products that are widely available and inexpensive?
A) the product concept
B) the production concept
C) the selling concept
D) the performance concept
E) the marketing concept

B
Page Ref: 9
Objective: 4
Difficulty: Moderate

The ________ concept holds that consumers will favor offerings with the best quality, performance, or innovative features.
A) product
B) marketing
C) production
D) selling
E) holistic marketing

A
Page Ref: 9
Objective: 4
Difficulty: Easy

As a major steel manufacturer, SteelMakers Inc. focuses on having the most efficient manufacturing processes in place. The company believes that its competitive edge lies in its ability to offer the best prices. They also maintain an excellent distribution network that ensures wide availability of their products. SteelMakers has a ________.
A) selling orientation
B) production orientation
C) product orientation
D) marketing orientation
E) social orientation

B
Page Ref: 9
Objective: 4
AACSB: Analytic Skills
Difficulty: Moderate

Webmax Inc. produced and marketed cameras. After considerable research and development, they developed a new digital camera that had an array of new features. Webmax was so sure about the new offering that they even reduced their marketing budget. What sort of orientation does Webmax have toward the marketplace?
A) production orientation
B) product orientation
C) selling orientation
D) marketing orientation
E) holistic marketing orientation

B
Page Ref: 9
Objective: 4
AACSB: Analytic Skills
Difficulty: Moderate

Page Ref: 9
Objective: 4
AACSB: Analytic Skills
Difficulty: Moderate

Marketers at Johnny Inc. believe in putting their customers ahead of everything else. Their products are carefully designed to meet customer requirements and the entire focus is on achieving customer satisfaction. Johnny Inc. follows the ________ concept in doing business.
A) production
B) product
C) selling
D) marketing
E) social responsibility

D
Page Ref: 10
Objective: 4
AACSB: Analytic Skills
Difficulty: Moderate

The ________ concept holds that consumers and businesses, if left alone, will ordinarily not buy enough of the organization's products.
A) production
B) selling
C) marketing
D) product
E) holistic marketing

B
Page Ref: 9
Objective: 4
Difficulty: Easy

The marketing concept holds that ________.
A) a firm should find the right products for its customers, and not the right customers for its products
B) customers who are coaxed into buying a product will most likely buy it again
C) a new product will not be successful unless it is priced, distributed, and sold properly
D) consumers and businesses, if left alone, won't buy enough of the organization's products
E) a better product will by itself lead people to buy it without much effort from the sellers

A
Page Ref: 10
Objective: 4
Difficulty: Moderate

What are the four broad components of holistic marketing?
A) relationship, internal, position, and performance marketing
B) integrated, internal, position, and performance marketing
C) relationship, integrated, internal, and performance marketing
D) integrated, relationship, social responsibility, and position marketing
E) relationship, social responsibility, internal, and performance marketing

C
Page Ref: 10
Objective: 4
Difficulty: Moderate

________ marketing aims to build mutually satisfying long-term collaboration with key constituents, such as customers, employees, suppliers, distributors, and other marketing partners, in order to earn and retain their business.
A) Integrated
B) Demand-based
C) Direct
D) Relationship
E) Internal

D
Page Ref: 11
Objective: 4
Difficulty: Easy

The ultimate outcome of relationship marketing is a unique company asset called the ________, consisting of the company and its supporting stakeholders.
A) brand
B) supply chain
C) marketing network
D) value proposition
E) service channel

C
Page Ref: 11
Objective: 4
Difficulty: Moderate

Which aspect of holistic marketing motivates employees and ensures that everyone in the organization embraces appropriate marketing principles, especially senior management?
A) relationship marketing
B) integrated marketing
C) internal marketing
D) network marketing
E) performance marketing

C
Page Ref: 11
Objective: 4
AACSB: Analytic Skills
Difficulty: Moderate

Financial accountability and social responsibility marketing are elements of ________.
A) performance marketing
B) relationship marketing
C) internal marketing
D) social marketing
E) mass marketing

A
Page Ref: 12
Objective: 4
Difficulty: Moderate

Companies are recognizing that much of their market value comes from ________, particularly their brands, customer base, employees, distributor and supplier relations, and intellectual capital.
A) variable assets
B) value propositions
C) intangible assets
D) market offerings
E) industry convergence

C
Page Ref: 12
Objective: 4
AACSB: Reflective Thinking
Difficulty: Easy
48)

Joanna owns a chain of fast-food joints. As the chain became more and more successful, she decided to contribute a share of her profits each year to support cancer research. This is an example of ________.
A) corporate community involvement
B) environmental marketing
C) cause-related marketing
D) benefit marketing
E) responsible marketing

C
Page Ref: 13
Objective: 4
AACSB: Analytic Skills
Difficulty: Moderate

McCarthy classified marketing activities into the four Ps of the marketing mix. These four Ps stand for ________.
A) product, positioning, place, and price
B) product, production, price, and place
C) promotion, place, positioning, and price
D) place, promotion, production, and positioning
E) product, price, promotion, and place

E
Page Ref: 13
Objective: 4
Difficulty: Easy

Incorporating the holistic view of marketing, the four Ps of the marketing mix can be updated to ________.
A) product, positioning, people, and price
B) people, processes, place, and promotion
C) product, processes, price, and people
D) people, processes, programs, and performance
E) product, price, promotion, and people

D
Page Ref: 13
Objective: 4
AACSB: Multicultural and diversity understanding
Difficulty: Moderate


Difficulty: Moderate

Which of the four new Ps encompasses the old four Ps as well as a range of other marketing activities that might not fit well into the old view of marketing?
A) programs
B) processes
C) promotion
D) people
E) performance

A
Page Ref: 14
Objective: 4
Difficulty: Moderate

At the heart of any marketing program is the firm's ________, its tangible offering to the market.
A) strategy
B) product
C) brand
D) value
E) people

B
Page Ref: 14
Objective: 5
Difficulty: Easy

________ activities include those the company undertakes to make the product accessible and available to target customers.
A) Line extension
B) Segmentation
C) Marketing research
D) Channel
E) New-product development

D
Page Ref: 15
Objective: 5
Difficulty: Moderate
56)
Page Ref: 2
Objective: 2
AACSB: Analytic Skills
Difficulty: Easy

The U.S. economy today consists of a 70-30 services-to-goods mix.

TRUE
Page Ref: 3
Objective: 2
Difficulty: Moderate

Properties are tangible rights of ownership to either real property (real estate) or financial property (stocks and bonds).

FALSE
Page Ref: 3
Objective: 2
Difficulty: Easy

"Friends Don't Let Friends Drive Drunk," is an example of marketing information to an interested audience.

FALSE
Page Ref: 4
Objective: 2
AACSB: Reflective Thinking
Difficulty: Moderate

Shops and stores have a physical existence and as such are examples of marketspace.

FALSE
Page Ref: 4
Objective: 2
AACSB: Use of information technology
Difficulty: Easy

Wants are basic human requirements, such as food and shelter.

FALSE
Page Ref: 5
Objective: 3
Difficulty: Easy

Demands are wants for specific products backed by an ability to pay.

TRUE
Page Ref: 5
Objective: 3
AACSB: Analytic Skills
Difficulty: Easy
63)
Objective: 3
Difficulty: Easy

The task environment of a firm consists of demographic, economic, natural, and technological environments, as well as the political-legal system and the social-cultural arena.

FALSE
Page Ref: 7
Objective: 3
AACSB: Analytic Skills
Difficulty: Moderate

Regulation of industries has created greater competition and growth opportunities because the playing field has been leveled.

FALSE
Page Ref: 7-8
Objective: 4
AACSB: Reflective Thinking
Difficulty: Easy

Companies can facilitate and speed external communication among customers by creating online and offline "buzz" through brand advocates and user communities.

TRUE
Page Ref: 8
Objective: 4
Difficulty: Moderate

The selling concept holds that consumers will favor those products that offer the most quality, performance, or innovative features.

FALSE
Page Ref: 9
Objective: 4
AACSB: Analytic Skills
Difficulty: Moderate

Relationship marketing aims to build mutually satisfying long-term relationships with key parties.

TRUE
Page Ref: 11
Objective: 4
Difficulty: Easy

One of the key themes of integrated marketing is that there are very few marketing activities that can effectively communicate and deliver value.

FALSE
Page Ref: 11
Objective: 4
AACSB: Reflective Thinking
Difficulty: Moderate
71)

Integrated marketing is the task of hiring, training, and motivating able employees who want to serve customers well.

FALSE
Page Ref: 11
Objective: 4
Difficulty: Easy

Performance marketing involves reviewing metrics assessing market share, customer loss rate, customer satisfaction, and product quality in the evaluation of the effectiveness of marketing activities.

TRUE
Page Ref: 12
Objective: 4
Difficulty: Moderate

Cause-related marketing involves donating a percentage of revenues to a specific cause based on the revenue occurring during the announced period of support.

TRUE
Page Ref: 13
Objective: 4
AACSB: Analytic Skills
Difficulty: Moderate

Making gifts of money, goods, or time to help nonprofit organizations, groups, or individuals is known as corporate philanthropy.

TRUE
Page Ref: 13
Objective: 4
Difficulty: Easy

Marketers are involved in marketing 10 types of entities. List and briefly characterize these entities.

The types of entities that are marketed are (1) goods-physical goods, (2) services-hotels and car rental services, (3) events-time-based events such as trade shows, (4) experiences-Walt Disney's Magic Kingdom, (5) persons-celebrity marketing, (6) places-cities, states, regions, and even whole nations, (7) properties-intangible rights of ownership of either real property or financial property, (8) organizations-corporate identity, (9) information-information produced and marketed as a product, and (10) ideas-marketing the basic idea of a market offering.

Identify and define the traditional four Ps. Also identify the new four Ps and the reason for developing the new interpretation.

The traditional four Ps are: Product (product variety, quality, design, features, brand name, packaging, sizes, services, warranties, returns), Price (list price, discounts, allowances, payment period, credit terms), Promotion (sales promotion, advertising, sales force, public relations, direct marketing), and Place (channels, coverage, assortments, locations, inventory, transportation). However, given the breadth, complexity, and richness of marketing, as exemplified by holistic marketing, these 4 Ps are not the whole story any more. Updating them to reflect the holistic marketing concept, researchers in this field arrived at a more representative set that encompasses modern marketing realities: people, processes, programs, and performance.

Discuss the concept of disintermediation and provide an example.

Disintermediation grew out of the rush to embrace the dot-coms and e-commerce. Essentially, the dot-coms removed many of the traditional intermediaries by encouraging consumers to deal directly with the company via the Internet. "Brick-and-click" businesses eventually brought some of the intermediaries back through a process called reintermediation.
Page Ref: 8
Objective: 4
AACSB: Use of information technology
Difficulty: Easy
80) You have been given the assignment of justifying cause-related marketing to your board of directors. What would be your primary argument in favor of such a proposal?
Answer: Companies see cause-related marketing as an opportunity to enhance their corporate reputation, raise brand awareness, increase customer loyalty, build sales, and increase press coverage. They believe customers will increasingly look for signs of good corporate citizenship that go beyond supplying rational and emotional benefits. This should be the main line of argument in support of any cause-related marketing effort.
Page Ref: 12-13
Objective: 4

What is the traditional view of marketing?
A) Firms should just focus on production because if the products are good then they will automatically sell.
B) Firms should just focus on production and selling because marketing occurs as a part of the selling process.
C) Firms should have a proper marketing team that can increase consumers' awareness of their products and rouse their interest in them.
D) Firms should price their products as low as possible so that marketing them becomes easy.
E) Firms should remember that promotion is the most important of the four Ps.

B
Page Ref: 18
Objective: 1
Difficulty: Easy

Value delivery process can be divided into three phases, out of which "choosing the value" implies ________, which is the essence of strategic marketing.
A) segmentation, developing, and delivering
B) targeting, positioning, and communicating
C) targeting, positioning, and delivering
D) segmentation, targeting, and positioning
E) researching, developing, and delivering

D
Page Ref: 34
Objective: 1
AACSB: Reflective Thinking
Difficulty: Easy

4)
Page Ref: 18
Objective: 1
AACSB: Reflective Thinking
Difficulty: Easy

James Frank has been put in charge of gathering marketing intelligence, disseminating it within his organization, and eventually directing action on the information. Mr. Frank's task is best described as part of the ________.
A) market-sensing process
B) new-offering realization process
C) customer acquisition process
D) customer relationship management process
E) fulfillment management process

A
Page Ref: 19
Objective: 1
AACSB: Analytic Skills
Difficulty: Moderate

When a customer places an order at BookBox.com, the company processes the customer's payment information, sends the order to the nearest warehouse, and ships the order via FedEx. This is best described as the ________.
A) market-sensing process
B) customer acquisition process
C) customer relationship management process
D) fulfillment management process
E) new-offering realization process

D
Page Ref: 19
Objective: 1
AACSB: Analytic Skills
Difficulty: Moderate

The first phase of the value creation and delivery sequence is ________ that represents the "homework" marketing must do before any product exists.
A) choosing the value
B) providing the value
C) communicating the value
D) considering the value
E) acquiring the value

A
Page Ref: 18
Objective: 1
Difficulty: Easy
8)
Page Ref: 18
Objective: 1
Difficulty: Easy

In the cycle of complete strategic planning, taking corrective action is a part of ________.
A) planning
B) implementation
C) controlling
D) organizing
E) analyzing

C
Page Ref: 21
Objective: 2
AACSB: Analytic Skills
Difficulty: Moderate

The ________ in the value chain cover the sequence of bringing materials into the business (inbound logistics), converting them into final products (operations), shipping out final products (outbound logistics), marketing them (marketing and sales), and servicing them (service).
A) operations processes
B) manufacturing processes
C) primary activities
D) secondary activities
E) tertiary activities

C
Page Ref: 19
Objective: 1
Difficulty: Easy

Micheal Porter's value chain would identify which of the following as a support activity?
A) shipping out final products
B) marketing products
C) procurement
D) servicing products
E) operations

C
Page Ref: 19
Objective: 1
AACSB: Analytic Skills
Difficulty: Easy
12)
Page Ref: 19
Objective: 1
AACSB: Reflective Thinking
Difficulty: Moderate

With respect to core business processes, the ________ includes all the activities involved in gathering external information, disseminating it within the organization, and acting on the information.
A) market-sensing process
B) market research process
C) target marketing process
D) market pulse process
E) deployment process

A
Page Ref: 19
Objective: 1
AACSB: Analytic Skills
Difficulty: Easy

With respect to the core business processes, the ________ includes all the activities involved in developing, and launching high-quality products quickly and within budget.
A) market-sensing process
B) new-offering realization process
C) fulfillment management process
D) customer acquisition process
E) customer relationship management process

B
Page Ref: 19
Objective: 1
AACSB: Analytic Skills
Difficulty: Easy

Activities involved in building deeper understanding of existing consumers and what the product offerings mean to them would be a part of ________.
A) customer acquisition process
B) customer relationship management process
C) customer prospecting process
D) customer integrating management process
E) customer equity process

B
Page Ref: 19
Objective: 1
AACSB: Reflective Thinking
Difficulty: Moderate

16) Page Ref: 19
Objective: 1
Difficulty: Easy

The key to utilizing organizational core competencies is to ________ that make up the essence of the business.
A) force organizational departments to justify the budgetary components
B) vertically integrate and own all intermediaries
C) own and nurture the resources and competencies
D) emphasize global promotions
E) segment the workforces

C
Page Ref: 19
Objective: 1
AACSB: Reflective Thinking
Difficulty: Easy

________ has three characteristics: (1) it is a source of competitive advantage in that it makes a significant contribution to perceived customer benefits; (2) it has applications in a wide variety of markets; and (3) it is difficult for competitors to imitate.
A) Core competency
B) Market sensing process
C) Corporate social responsibility
D) Strategic business unit
E) Philanthropy

A
Page Ref: 20
Objective: 1
AACSB: Analytic Skills
Difficulty: Moderate

Core competencies tend to refer to areas of special technical and production expertise, whereas ________ tend to describe excellence in broader business processes.
A) process benchmarks
B) distinctive capabilities
C) distributive capabilities
D) facultative benchmarks
E) concentric capabilities

B
Page Ref: 20
Objective: 1
Difficulty: Easy
20)
Page Ref: 20
Objective: 1
AACSB: Analytic Skills
Difficulty: Easy

As Kodak addresses the digital revolution taking over the photographic industry, it wants customers to see it as a leader in digital photography. Thus, it is moving away from the production of film roll cameras. This would be an example of which of the following value creation steps?
A) abandoning current product lines
B) changing the corporate vision
C) repositioning the company's brand identity
D) redoing the corporate logo
E) realigning core competencies

C
Page Ref: 18
Objective: 1
AACSB: Analytic Skills
Difficulty: Moderate

Of the four organizational levels, the corporate level is likely to make which of the following decisions?
A) entering a new market
B) resource allocation for each product
C) strategic plan for individual business units
D) choosing specific suppliers for each business unit
E) marketing plan for each product

A
Page Ref: 20
Objective: 2
AACSB: Analytic Skills
Difficulty: Moderate

Most large companies consist of four organizational levels: the corporate level, the ________, the business unit level, and the product level.
A) board of director level
B) major stakeholder level
C) management team level
D) division level
E) strategic level

D
Page Ref: 20
Objective: 2
AACSB: Analytic Skills
Difficulty: Easy
24)
Page Ref: 20
Objective: 1
AACSB: Reflective Thinking
Difficulty: Moderate

The marketing plan, the central instrument for directing and coordinating the marketing effort, operates at ________ levels.
A) functional and operational
B) strategic and tactical
C) corporate and operational
D) customer and expenditure
E) corporate and division

B
Page Ref: 20
Objective: 2
AACSB: Analytic Skills
Difficulty: Easy

The ________ lays out the target markets and the value proposition that will be offered, based on an analysis of the best market opportunities.
A) organizational plan
B) strategic marketing plan
C) corporate tactical plan
D) corporate mission
E) customer-value statement

B
Page Ref: 20
Objective: 2
Difficulty: Moderate
27)
Page Ref: 20
Objective: 2
AACSB: Analytic Skills
Difficulty: Easy

Which of the following is NOT one of the four planning activities undertaken by all corporate headquarters?
A) defining the corporate mission
B) establishing strategic business units
C) assigning resources to each SBU
D) assessing growth opportunities
E) deciding sales channels

E
Page Ref: 21
Objective: 2
Difficulty: Easy

A clear, thoughtful mission statement provides employees with a shared sense of purpose, direction, and ________.
A) profitability
B) target market feasibility
C) opportunity
D) continuous improvement
E) quality products

C
Page Ref: 21
Objective: 2
AACSB: Reflective Thinking
Difficulty: Moderate

Which of the following is one of the five major characteristics of good mission statements?
A) They focus on a large number of goals.
B) They expand the range of individual employee discretion.
C) They define the major competitive spheres within which the company will operate.
D) They take a short-term view.
E) They are long and comprehensive to ensure that all critical concepts are included.

C
Page Ref: 21
Objective: 2
AACSB: Reflective Thinking
Difficulty: Easy

31)

Gerber primarily serves the baby food market. In choosing to focus on this market, Gerber is defining its competitive sphere on the basis of ________.
A) vertical segmentation
B) backward integration
C) market segmentation
D) diversification
E) differentiation

C
Page Ref: 22
Objective: 2
AACSB: Analytic Skills
Difficulty: Easy

While viewing businesses in terms of customer needs can suggest additional growth opportunities, a ________ tends to focus on selling a product or service to a current market.
A) strategic market definition
B) target market definition
C) cognitive definition
D) product definition
E) tactical definition

B
Page Ref: 22
Objective: 2
Difficulty: Easy

What are hollow corporations?
A) companies that market their products through franchisees
B) companies that have liabilities exceeding their assets
C) companies that outsource all production to suppliers
D) companies that do not have any physical presence and only operate online
E) companies that are horizontally integrated

C
Page Ref: 22
Objective: 2
Difficulty: Easy
35)
Objective: 2
Difficulty: Moderate

Market-penetration, product-development, and market-development strategies would all be examples of ________ strategies.
A) concentric growth
B) conglomerate
C) horizontal
D) intensive growth
E) integrative growth

D
Page Ref: 23
Objective: 2
AACSB: Analytic Skills
Difficulty: Moderate

Which of the following is an example of growth by diversification?
A) a company introducing its existing products in a new market
B) a company introducing new product category in a new market
C) a company increases its product line in an existing market
D) a company introducing a new product category in an existing market
E) a company integrates backward to cut costs

B
Page Ref: 23
Objective: 2
Difficulty: Moderate

A company that seeks to increase its sales and profits through backward, forward, or horizontal integration within the industry is said to be employing a(n) ________ strategy.
A) diversification growth
B) intensive growth
C) target growth
D) integrative growth
E) conglomerate growth

D
Page Ref: 23
Objective: 2
AACSB: Analytic Skills
Difficulty: Moderate
39)
Page Ref: 23
Objective: 2
AACSB: Analytic Skills
Difficulty: Moderate

Once Starbucks had established its presence in thousands of cities internationally, the company sought to increase the number of purchases by existing customers with a ________ strategy that led to new in-store merchandise, including compilation CDs and high-speed wireless access.
A) product-development
B) market-penetration
C) diversification
D) market-development
E) conglomerate

A
Page Ref: 23
Objective: 2
AACSB: Analytic Skills
Difficulty: Moderate

A(n) ________ is when a company might seek new businesses that have no relationship to its current technology, products, or markets.
A) concentric strategy
B) conglomerate strategy
C) horizontal strategy
D) intensive growth strategy
E) integrative strategy

B
Page Ref: 23
Objective: 2
Difficulty: Moderate

Which of the following terms can be defined as "the shared experiences, stories, beliefs, and norms that characterize an organization"?
A) organizational dynamics
B) a business mission
C) an ethical/value statement
D) customer relationships
E) corporate culture

E
Page Ref: 23
Objective: 2
AACSB: Analytic Skills
Difficulty: Easy
43)
Page Ref: 24
Objective: 2
Difficulty: Easy

Through its cutting-edge point-of-sale inventory management technology and highly efficient shipping practices, Wal-Mart is able to keep its inventory expenditure extremely low and to pass these savings on to consumers in the form of low prices. Wal-Mart's strategy is best described as ________.
A) a focused approach
B) integrative growth
C) differentiation
D) market development
E) overall cost leadership

E
Page Ref: 27
Objective: 2
AACSB: Analytic Skills
Difficulty: Moderate

When a firm aims to underprice competitors and win market share, it is using a(n) ________ strategy that requires relatively less marketing skills as compared to other strategies.
A) product differentiation
B) overall cost leadership
C) focus
D) domestic customer relationship
E) price skimming

B
Page Ref: 27
Objective: 2
AACSB: Reflective Thinking
Difficulty: Easy
46)
Page Ref: 27
Objective: 2
AACSB: Analytic Skills
Difficulty: Moderate

Unlike its competitors in the online air travel industry, Travelocity provides its customers with a greater variety of services such as cruise reservations, package tours, hotel bookings, and car rentals. This is an example of a(n) ________ strategy.
A) overall cost leadership
B) focus
C) differentiation
D) diversification
E) promotional

C
Page Ref: 27
Objective: 2
AACSB: Analytic Skills
Difficulty: Moderate

McDonald's has often teamed up with Disney to offer products related to current Disney films as part of its meals for children. The best description of this form of alliance would be a ________.
A) product alliance
B) logistics alliance
C) pricing collaboration
D) network alliance
E) promotional alliance

E
Page Ref: 27
Objective: 2
AACSB: Analytic Skills
Difficulty: Easy
49)
Page Ref: 27
Objective: 2
AACSB: Analytic Skills
Difficulty: Moderate

MasterCard and Visa may team up with university alumni associations to offer affinity credit cards that typically display an iconic image associated with the university on the card itself and may include an incremental donation program associated with purchases made using the card. The best description of this form of alliance would be called a ________.
A) product alliance
B) logistics alliance
C) pricing collaboration
D) network alliance
E) promotional alliance

E
Page Ref: 27
Objective: 2
AACSB: Analytic Skills
Difficulty: Moderate

When one company licenses another to produce its offerings, or two companies jointly market their complementary offerings, it is called a ________.
A) pricing collaboration
B) product or service alliance
C) promotional alliance
D) logistics collaboration
E) total quality management

B
Page Ref: 27
Objective: 2
AACSB: Analytic Skills
Difficulty: Easy
52)
Page Ref: 27
Objective: 2
AACSB: Analytic Skills
Difficulty: Easy

Which of the following statements is true of marketing plans?
A) They can be independently developed without worrying about other functional areas.
B) They provide direction and focus for a brand, product, or company.
C) They are usually profit-oriented.
D) They are of limited use to non-profit organizations.
E) They are typically five-year plans and they lay out the strategies required to achieve targets in those five years.

B
Page Ref: 28
Objective: 3
Difficulty: Moderate

Which of the following elements of a marketing plan permits senior management to grasp the plan's major thrust?
A) the situation analysis
B) the marketing strategy
C) the executive summary
D) the financial projections
E) the short-term targets

C
Page Ref: 29
Objective: 3
Difficulty: Easy

The ________ is the last section of the marketing plan and spells out the goals and budget for each month or quarter, so management can review each period's results and take action as needed.
A) executive summary
B) situation analysis
C) marketing strategy
D) financial projections
E) implementation and controls

E
Page Ref: 29
Objective: 3
AACSB: Analytic Skills
Difficulty: Easy
56)
Page Ref: 18
Objective: 1
AACSB: Reflective Thinking
Difficulty: Easy

The traditional view of marketing works best in economies with many different types of people, each with individual wants, perceptions, preferences, and buying criteria.

FALSE
Page Ref: 18
Objective: 1
Difficulty: Easy

The customer relationship management process involves all the activities related to receiving and approving orders, shipping the goods on time, and collecting payment.

FALSE
Page Ref: 19
Objective: 1
AACSB: Analytic Skills
Difficulty: Easy

The new-offering realization process involves all activities in defining target markets and prospecting for new customers.

FALSE
Page Ref: 19
Objective: 1
AACSB: Analytic Skills
Difficulty: Moderate

A principle of the value chain is that every firm is a synthesis of activities performed to design, produce, market, deliver, and support its product.

TRUE
Page Ref: 19
Objective: 1
Difficulty: Easy

Another name for a company's value delivery network is "distribution chain."

FALSE
Page Ref: 19
Objective: 1
AACSB: Analytic Skills
Difficulty: Easy

Holistic marketing focuses on the integration of value exploration, value creation, and value delivery as a means to build long-term relationships with consumers.

TRUE
Page Ref: 20
Objective: 1
Difficulty: Easy

63)
Page Ref: 20
Objective: 1
AACSB: Analytic Skills
Difficulty: Easy

Good mission statements should be long and clear, should emphasize on a wide range of goals, and stress on the company's major policies and values.

FALSE
Page Ref: 21
Objective: 2
AACSB: Reflective Thinking
Difficulty: Moderate

An intensive growth strategy involving marketing current products to new markets is a market-development strategy.

TRUE
Page Ref: 23
Objective: 2
AACSB: Analytic Skills
Difficulty: Moderate

A company seeking to expand the number of existing products sold to its current markets, would be using a "market-penetration strategy."

FALSE
Page Ref: 23
Objective: 2
AACSB: Analytic Skills
Difficulty: Moderate

If a company sought to grow by starting new businesses that have no relation to its current technology, products, or markets, the company would be using a market penetration strategy.

FALSE
Page Ref: 23
Objective: 2
AACSB: Analytic Skills
Difficulty: Moderate

An environmental threat is a challenge posed by an unfavorable trend or development that, in the absence of defensive marketing action, would lead to lower sales or profit.

TRUE
Page Ref: 26
Objective: 2
Difficulty: Easy

Once a SWOT analysis has been completed, the strategic planner is ready to proceed to the goal formulation stage of the strategic-planning process model.

TRUE
Page Ref: 26
Objective: 2
AACSB: Analytic Skills
Difficulty: Easy

Partner relationship management is now considered as a core skill fundamental to the development and maintenance of strategic alliances.

TRUE
Page Ref: 27
Objective: 2
Difficulty: Easy

Firms directing the same strategy to the same target market constitute a strategic group.

TRUE
Page Ref: 27
Objective: 2
AACSB: Analytic Skills
Difficulty: Moderate

A marketing plan should open with a situation analysis.

FALSE
Page Ref: 29
Objective: 3
Difficulty: Easy

Sales forecasts, expense forecasts, and break-even analysis are usually found in the section on financial projections in the marketing plan.

TRUE
Page Ref: 29
Objective: 3
Difficulty: Easy

The marketing strategy section of the marketing plan spells out goals and budgets for each month or quarter so the management can review each period's results and take corrective action as needed.

FALSE
Page Ref: 29
Objective: 3
Difficulty: Easy
76) T
Page Ref: 19
Objective: 1
AACSB: Analytic Skills
Difficulty: Moderate

Identify and give examples of the four major categories of strategic alliances.

The four major categories of strategic alliances include (1) product or service alliances, where one company licenses its product, or two companies jointly market their complementary products or a new product; (2) promotional alliances, where one company agrees to carry a promotion for another company's product or service; (3) logistics alliances, where one company offers logistical services for another company's product; and (4) pricing collaboration, where one or more companies join in an agreement on coordinated pricing. Student examples may vary.
Page Ref: 27
Objective: 2
AACSB: Analytic Skills
Difficulty: Moderate

Describe what happens in scenario analysis and explain why firms such as Royal Dutch/Shell Group use the technique.

Scenario analysis consists of developing plausible representations of a firm's possible future that make different assumptions about forces driving the market and include different uncertainties. Answers may vary on why to use the concept but answers should be mindful of the definition given. Students should try to anticipate the problems that are likely to aggravate in the energy industry and how scenario analysis may help the companies to anticipate the future and be prepared to adjust their processes accordingly.
Page Ref: 24
Objective: 2
AACSB: Analytic Skills
Difficulty: Moderate

Explain what happens in a SWOT analysis during the strategic planning process.

SWOT (strengths, weaknesses, opportunities, and threats) monitors the external and internal environment by examining key macroeconomic and microeconomic forces and actors that have an impact on the organization's business and industry.
Page Ref: 25
Objective: 2
Difficulty: Moderate

Page Ref: 34
Objective: 1
Difficulty: Easy

The heart of the internal records system is the ________.
A) pay-roll system
B) purchase order cycle
C) order-to-payment cycle
D) expense cycle
E) human resources system

C
Page Ref: 34
Objective: 2
Difficulty: Moderate

The ________ begins with sales representatives and dealers sending orders to the firms and is followed by the sales department preparing invoices, and finally generating shipping and billing documents which are then sent to various departments.
A) payroll system
B) market research process
C) human resources system
D) expense cycle
E) order-to-payment cycle

E
Page Ref: 34
Objective: 2
Difficulty: Moderate

4)
Page Ref: 34
Objective: 2
AACSB: Use of information technology
Difficulty: Moderate

Companies can practice targeted marketing by using ________-records of Web site usage stored on personal browsers.
A) plug-ins
B) black swans
C) cookies
D) trolls
E) honey-pots

C
Page Ref: 34
Objective: 2
AACSB: Use of information technology
Difficulty: Easy

The internal records system supplies results data, but the marketing intelligence system supplies ________ data.
A) internal
B) revenue
C) thematic
D) happenings
E) process

D
Page Ref: 34
Objective: 3
Difficulty: Easy

A ________ is a set of procedures and sources managers use to obtain everyday information about developments in the marketing environment.
A) data warehousing system
B) viral marketing campaign
C) product management system
D) marketing intelligence system
E) sales information system

D
Page Ref: 34
Objective: 3
Difficulty: Moderate
8)
Page Ref: 35
Objective: 3
AACSB: Analytic Skills
Difficulty: Moderate

When gathering marketing intelligence, companies often use the 2000 U.S. census, which provides an in-depth look at the population swings, demographic groups, regional migrations, and changing family structure of 281+ million people. Which of the following steps to improve the quality of a company marketing intelligence system would be most closely associated with this illustration?
A) A company can purchase information from outside suppliers.
B) A company can take advantage of government data sources.
C) A company can use online customer feedback systems to collect data.
D) A company can network externally.
E) A company can use its sales force to collect and report data.

B
Page Ref: 35
Objective: 3
Difficulty: Moderate

The sites which offer positive or negative product or service reviews and are built by the retailers of a particular product or service are called ________.
A) combo sites
B) distributor or sales agent feedback sites
C) public blogs
D) independent service review forums
E) customer complaint sites

B
Page Ref: 43
Objective: 3
AACSB: Use of information technology
Difficulty: Easy

A ________ is "unpredictable, short-lived, and without social, economic, and political significance."
A) fad
B) fashion
C) trend
D) megatrend
E) style

A
Page Ref: 43
Objective: 4
Difficulty: Easy
12)
Page Ref: 43
Objective: 4
Difficulty: Easy

Which of the following is true about trends in worldwide population growth?
A) Birthrates are on the rise in developed countries.
B) Overall, the world population growth is declining.
C) Birthrates are on the rise in developing countries.
D) Death rates are rising in developing countries.
E) Population growth is highest in developing countries.

E
Page Ref: 46
Objective: 4
Difficulty: Easy
14)
Page Ref: 47
Objective: 4
Difficulty: Moderate

Firms find "reverse innovation" advantage by ________.
A) introducing a commodity in a developed country and then distributing it globally
B) introducing a commodity in a developing country and then distributing it in other developing countries
C) introducing a commodity in a developing country and then distributing it globally
D) introducing a commodity in a developed country and then distributing it in developing countries
E) introducing a commodity in a developed country and then distributing it in other developed countries

C
Page Ref: 46
Objective: 4
Difficulty: Moderate
16)
Page Ref: 46
Objective: 4
Difficulty: Easy

The three largest subgroups of the Hispanics in the U.S. are ________, ________, and ________.
A) Puerto Rican; Mexican; Chilean
B) Salvadoran; Cuban; Dominican
C) Mexican; Puerto Rican; Cuban
D) Brazilian; Mexican; Cuban
E) Salvadoran; Dominican; Columbian

C
Page Ref: 46
Objective: 4
Difficulty: Easy

The traditional household consists of ________.
A) a husband, wife, and children (and sometimes grandparents)
B) a group of related persons living together
C) two or more families living together
D) a man and a woman living together (whether married or not)
E) related or unrelated persons who share living arrangements

A
Page Ref: 47
Objective: 4
Difficulty: Easy

Which of the following is likely to occur during economic downturns?
A) People tend to spend more on luxury goods
B) Consumption of necessary goods decline
C) Long term credit is available at concessional rates of interest
D) The purchasing power of the people declines
E) The level of investment in the economy rises

D
Page Ref: 47
Objective: 4
AACSB: Dynamics of the global economy
Difficulty: Moderate
20)
Page Ref: 47
Objective: 4
Difficulty: Easy

In the U.S., consumer expenditures on homes and big ticket items tend to slacken during recessions because ________.
A) the consumers generally have a low debt-to-income ratio
B) of steady supply of loanable funds in the economy during recession
C) the consumers have a high debt-to-income ratio
D) consumer borrowing increases during recession
E) of stringent credit policies adopted by the Fed before the onset of recession

C
Page Ref: 47
Objective: 4
Difficulty: Moderate

Which of the following elements of sociocultural environment can be associated with the growing demand for "social surrogates" like social networking sites, television, etc.?
A) views of ourselves
B) views of organizations
C) views of others
D) views of nature
E) views of the universe

C
Page Ref: 48
Objective: 4
Difficulty: Moderate

Today, corporations need to make sure that they are good corporate citizens and that their consumer messages are honest in order to positively align themselves with consumers' ________.
A) views of others
B) views of organizations
C) views of themselves
D) views of the universe
E) views of society

B
Page Ref: 48
Objective: 4
AACSB: Reflective Thinking
Difficulty: Moderate

24)
Page Ref: 48
Objective: 4
Difficulty: Moderate

Which of the following would be the best illustration of a secondary belief or value?
A) belief in work
B) belief in giving to charity
C) belief in getting married
D) belief in getting married early
E) belief in being honest

D
Page Ref: 48
Objective: 4
Difficulty: Moderate

Each society contains ________, groups with shared values emerging from their special life experiences or circumstances.
A) stakeholders
B) cliques
C) consumer bundles
D) subcultures
E) behavioral niches

D
Page Ref: 48
Objective: 4
Difficulty: Easy

Firms whose products require ________ resources—oil, coal, platinum, zinc, silver—face substantial cost increases as depletion approaches.
A) infinite
B) near finite
C) finite renewable
D) finite nonrenewable
E) perishable

D
Page Ref: 49
Objective: 4
Difficulty: Easy
28)
Page Ref: 49
Objective: 4
AACSB: Analytic Skills
Difficulty: Difficult

Which of the following is true about the technology trends that marketers should monitor?
A) A growing portion of U.S. R&D expenditures are going toward the research side as opposed to the development side.
B) Today, the time between idea and implementation is expanding.
C) More single companies rather than consortiums are directing research efforts toward major breakthroughs.
D) The pace of change is accelerating today.
E) The government has decreased regulation of technological change.

D
Page Ref: 49
Objective: 4
Difficulty: Moderate

Mandatory recycling laws have boosted the recycling industry and launched dozens of new companies making new products from recycled materials. Which of the following most closely resembles the situation discussed above?
A) Government makes reforestation mandatory for lumbering firms leading to a rise in timber production.
B) Government restricts industries from purchasing farmland thereby increasing agricultural produce.
C) Government subsidizes export of beef to promote production of beef cattle.
D) Government pollution control norms increase the production of pollution control equipments.
E) Government restricts unfair trade practices to promote international trade.

D
Page Ref: 49
Objective: 4
AACSB: Analytic Skills
Difficulty: Difficult

31)
Page Ref: 50
Objective: 4
Difficulty: Moderate

An important force affecting business is the ________ movement, a movement of citizens and government organized to strengthen the rights and powers of buyers in relation to sellers.
A) human rights
B) consumerist
C) environmental
D) self-determination
E) materialistic

B
Page Ref: 50
Objective: 4
Difficulty: Easy

The ________ market is the set of consumers with an adequate interest, income, and access to a particular offer.
A) potential
B) available
C) target
D) penetrated
E) reserve

B
Page Ref: 40
Objective: 5
Difficulty: Easy

The ________ market is the part of the qualified available market the company decides to pursue.
A) potential
B) available
C) target
D) penetrated
E) reserve

C
Page Ref: 40
Objective: 5
Difficulty: Easy
35)
Page Ref: 40
Objective: 5
Difficulty: Easy

When the government of any country restricts the sale of a particular commodity to certain groups—for example, restricting sales of alcohol to individuals above the age of 21—the eligible consumers who have income, interest, access and qualification constitute the ________.
A) accessible market
B) target market
C) potential market
D) qualified potential market
E) qualified available market

E
Page Ref: 40
Objective: 5
Difficulty: Easy

Jeanine would like to own a Mercedes but is unable to afford one at this time. Jeanine is part of the ________ for this product.
A) potential market
B) available market
C) target market
D) projected market
E) penetrated market

A
Page Ref: 40
Objective: 5
AACSB: Analytic Skills
Difficulty: Moderate

________ for a product is the total volume that would be bought by a defined customer group in a defined geographical area in a defined time period in a defined marketing environment under a defined marketing program.
A) Company demand
B) Area market potential
C) Market demand
D) Company sales potential
E) Total market potential

C
Page Ref: 41
Objective: 5
Difficulty: Easy
39)
Page Ref: 41
Objective: 5
Difficulty: Moderate

The base sales of an organization that takes place even without any demand-stimulating expenditures is called ________.
A) primary demand
B) market potential
C) market minimum
D) optimum demand
E) market demand

C
Page Ref: 41
Objective: 5
Difficulty: Easy

Only one level of industry marketing expenditure will actually occur. The market demand corresponding to this level is called the ________.
A) market minimum
B) market share
C) market forecast
D) market potential
E) company demand

C
Page Ref: 41
Objective: 5
Difficulty: Easy
42)