MKT 3013 Test 1

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While working at 3M, Windorski and his team observed and questioned students about how they used their textbooks, took notes, wrote term papers, and reviewed for exams, primarily in order to

discover a potentially new way to satisfy student needs by creating a new product.

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

You are already a marketing expert because as a consumer, you have already been involved in marketing decisions.

Marketing refers to

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

Which of the following statements about stakeholders is most accurate?

The organization doing the marketing, suppliers, shareholders, employees, and consumers are all potential stakeholders. Ultimately all of society should benefit.

To serve both buyers and sellers, marketing seeks to __________ and satisfy the needs and wants of prospective customers.

discover

A student wants to buy a cell phone so she can share pictures with her friends, and an insurance claims adjuster wants to buy a cell phone to document accident reports. If they both purchase the same model phone, which statement is most accurate?

Both the adjuster and students are potential customers because in their own way, they both benefit from the product.

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.

A local college of business offers an outstanding business school education. Cali pays the tuition to attend and earns her MBA with a concentration in Supply Chain Management. Upon graduating, she is offered a high paying, fulfilling position. Was this a marketing exchange?

Yes, because paying tuition was exchanged for knowledge that directly led to Cali's fulfilling, new job.

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

The marketing department must work closely with a network of other departments and employees to help provide the customer-satisfying products required for the organization to survive and prosper.

The two central concerns of marketing are

discovering and satisfying needs.

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

Needs

To avoid new-product failure, Robert M. McMath, a new-product expert, suggests

focusing on customer benefits and learning from the past.

A factor that might doom a product is referred to as a(n) __________.

showstopper

Which of the following statements best defines needs and wants?

Needs occur when a person feels physiologically deprived of something, and wants are determined by a person's knowledge, culture, or personality.

A want refers to

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.

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

market

The most likely market for cosmetic dentistry (which can cost $15,000 for straightening and whitening) is

anyone who has the time, the money, and the desire to undergo the procedures.

Marketing discovers consumer needs by

using extensive preliminary research.

Target market refers to

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

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 __________.

Market Mix

The marketing mix elements are called __________ because they are under the jurisdiction of the marketing department in an organization.

controllable factors

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 unique combination of benefits received by targeted buyers that includes quality, convenience, on-time delivery, and both before-sale and after-sale service at a specific price is called

customer value.

Which of the following statements about customer value is most accurate?

Quality, price, convenience, on-time delivery, and both before-sale and after-sale service are all elements used to create unique benefits to targeted buyers.

Wal-Mart, Southwest Airlines, and Costco have all been successful offering consumers the

the best price.

Marriott, Lands' End, and Home Depot deliver customer value by providing its customers with the __________ in the market.

best service

The linking of the organization to its individual customers, employees, suppliers, and other partners for their mutual long-term benefits is referred to as

relationship marketing.

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

Relationship marketing is more effective when there is a personal, ongoing relationship between individuals in the selling and buying organizations.

A business traveler joined the Starwood Preferred Guest Program in order to earn points each time he stayed overnight in a Westin or Sheraton hotel. Once he has accumulated enough points, he can trade his points in for a free night's stay. As a member of this program, the traveler receives periodic updates on new hotels and learns of ways to earn additional points. The marketing term that best describes this scenario is

relationship marketing.

Marketing program refers to:

a plan that integrates the marketing mix to provide a good, service, or idea to prospective buyers

The purpose of the introduction of a 3M inventor's Post-it® Flag highlighter was to

capitalize on previous successes and extend the 3M product line.

In the life of a firm, the _________ era, covered the years from the 1920s to the 1960s.

sales

If you wanted a new pair of shoes during the Civil War (1861-1865), you traced the outline of your foot on a piece of paper and gave it to a shoemaker. There was no distinction between right and left foot because you wanted your shoes as quickly as possible, and the shoemaker knew that you would buy them even if they just "sort of" fit. This is an example of a transaction that would have occurred during the __________ era in U.S. business history.

Production

imagine a confectionary company has introduced a new nutty candy bar during the 1930s (the sales era in U.S. business history). Which of the following statements would you most likely expect management to make if sales of this new candy bar were much lower than expected?

Let's put more aggressive salespeople in the field.

In the 1960s, marketing became the motivating force among many American firms and the __________ dawned.

marketing concept era

Marketing concept refers to

the idea that an organization should strive to satisfy the needs of consumers, while also trying to achieve the organization's goals.

A local university offers business courses for a specific target market composed of people who currently work, who want to take refresher courses, or work towards a higher degree. Which of the following would be the most effective way to communicate with the target market, bearing in mind that communication must be both effective and economical?

Advertise in the local newspaper.

Which era of U.S. business history does the following statement best describe? "We are in the business of satisfying needs and wants of consumers."

The marketing concept era

Market orientation refers to

the orientation of 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.

An organization that focuses its efforts on continuously collecting information about customers' needs and competitors' capabilities, sharing this information across departments, and using the information to create customer values is said to

have a market orientation.

Today's __________ era is one in which firms seek continuously to satisfy the high expectations of customers.

customer relationship

Customer Relationship Management refers to

developing favorable long-term perceptions of the organization and its offerings so that buyers will choose them in the marketplace primary encounters.

In marketing, an offering refers to

a product, service, or idea that creates value for both the organization and its customers by satisfying their needs and wants.

Business firm refers to

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

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

Environmental scanning identifies and interprets potential trends.

Profits refer 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.

5. 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

The term used to identify an organization's long-term course of action designed to deliver a unique customer experience while achieving its goals is referred to as

Strategy

Corporate executives and world leaders are increasingly asked to address the issue of __________, a term that refers to meeting present needs "without compromising the ability of future generations to meet their own needs."

Sustainable Development

Bill McDermott is President and CEO of SAP Americas and Asia Pacific Japan. SAP is a company that sells extremely expensive enterprise resource planning software to large and mid-sized companies. McDermott operates at the __________ level of his organization.

Corporate

In recent years, many large time have changed the title of the head of marketing from vice president of marketing to

Chief marketing officer

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

strategic business unit.

Which of the following statements regarding the strategic business unit level is most accurate?

The strategic direction is more specific at the strategic business unit level than at the corporate level

People in the finance and the human resources departments traditionally operate at what overall organizational level?

Functional level

A key role of the marketing department is to "look outward." This is accomplished by

listening to customers, developing and producing offerings, and implementing marketing program activities.

When developing marketing programs for new offerings, marketing may provide staff to serve as part of a(n) __________ of specialists from all the functional units who are mutually accountable to a common set of performance goals.

Cross-Functional Team

Today's organizations must be visionary—that is, they must

anticipate future events and respond quickly and effectively.

The clear, broad, underlying industry or market sector of an organization's offerings is referred to as __________.

Business

In marketing, the philosophical reason for a firm's existence is referred to as its organizational

Foundation

An organization's foundation can be broken into three key elements. They are

Core values, mission, and organizational culture.

The fundamental, passionate, and enduring principles of an organization that guide its conduct over time are referred to as __________.

Core Values

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

Stakeholder

By understanding its business, an organization can take steps to define its __________, a statement of the organization's functions in society, often identifying its customers, markets, products, and technologies, often used interchangeably with vision.

Mission Statement

The ___________ for American Red Cross is "The American Red Cross, a humanitarian organization led by volunteers and guided by its Congressional Charter and the Fundamental Principles of the International Red Cross Movement, will provide relief to victims of disasters and help people prevent, prepare for, and respond to emergencies."

Mission Statement

Although companies have long used mission statements to guide them in business, in recent years many companies have altered their mission statements to include

a social element to reflect moral or ethical ideals.

George Zimmer, the CEO of Men's Wearhouse, is known to the public as the bearded company pitchman who sells suits and sport coats on TV declaring, "You'll like the way you look, I guarantee it!" He also says that to be successful, "You've got to have a company that starts with trust and fairness." He aims to keep his employees happy and loyal. His philosophy sets the

Organizational Culture

In terms of an organization's business, railroads may have lost market share in the 20th century because they

Defined their business too narrowly

Since its launch, Netflix has changed its "business model" in order to

Respond to changing consumer demand and the evolution of new technologies.

The term "goal" and "objective" are often used interchangeably; however, in both cases, which of the following statements would be most accurate?

All lower-level goals must contribute to achieving goals at the next, higher level.

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

Xbox video game consoles were developed througha joint venture between Microsoft and the WWE. Complaints about the video game immediately after its introduction. These complaints ranged from missing parts to incorrect programming. It would seem obvious that the manufacturer of xbox video game consoles should adopt_____goals.

quality

Marketing dashboard refers to

The visual computer display on a single computer screen of the essential information related to achieving a marketing objective.

Marketing metric refers to

a measure of the quantitative value or trend of a marketing activity or result.

The primary purpose of a marketing metric is to

Measure the quantitative value of a marketing activity

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

Taking stock of where the firm or product has been recently, where it is now, and where it is headed in terms of the organization's plans and the external factors and trends affecting it is referred to as

Situation Analysis

An effective technique a firm can use to appraise in detail its internal strengths and weaknesses and external opportunities and threats is referred to as

SWOT analysis

In the 1980s, a lapse in production quality and increase in Japanese imports drove the Harley-Davidson motorcycle company to the brink of bankruptcy. The company's share of the U.S. super-heavy-weight market—motorcycles with engine capacity of 850 cubic centimeters or more—collapsed from more than 40 percent in the mid 1970s to 23 percent in 1983. However, by 1989, Harley-Davidson controlled some 65 percent of the U.S. market; and both in the U.S. and overseas markets, the company won't be able to meet demand for years. From a marketing perspective, what was the most likely first step in Harley-Davidson's resurgence?

Performing a SWOT analysis

The consumer products industry is one with several large competitors, soaring raw materials prices, and strong demands from powerful retailers for lower prices. As a result Colgate-Palmolive Co. and Unilever Group, the makers of products such as Colgate toothpaste and Ben & Jerry's ice cream both reduced their earnings forecasts. Yet Procter & Gamble, another consumer products company did not. At P & G, innovation is a key attribute, allowing the company to update all 200 of their brands and to invent products such as Crest Whitestrips that consumers crave. P & G has also used its marketing know-how to develop unique product placements on television shows that highlight its brands. A SWOT analysis for P & G of this information would indicate that the overall industry situation is a __________ while the innovation taking place at P & G is a __________.

Threat; Strength

The purpose of the introduction of a 3M inventor's Post-it Flag highlighter was to

Capitalize on previous successes and extend the 3M product line.

Aggregating prospective buyers into groups or segment that 1) have common needs and 2) will respond similarly to a marketing action is referred to as

Market Segmentation

Market segmentation refers to

Aggregating prospective buyers into groups or segments that have common needs and will respond similarly to a marketing action.

Imagine a confectionary company has introduced a new nutty candy bar during the 1930s (the sales era in U.S. business history). Which of the following statements would you most likely expect management to make if sales of this new candy bar were much lower than expected?

Let's put more aggressive salespeople in the field.

Designing a car is expensive and time-consuming even with the use of computers because until recently there was no way for all the varied departments that are involved in new car development to work together. Daimler-Chrysler created a unique central Web-based system that cuts the design and production process by at least two years, thus providing value to the customer. This is an example of a(n)

Competency

A unique strength relative to competitors that provides superior returns, often based on quality, time, cost, or innovation is referred to as

Competitive Advantage

Although now a part of Sears, Lands' End was primarily known as a catalog retailer. This means that traditional department stores, mass merchandisers, specialty shops, and other catalog retailers are considered to be

Lands' End's competition

A technique that managers use to quantify performance measures and growth targets to analyze its clients' strategic business units (SBUs) as though they were a collection of separate investments is referred to as

Business Portfolio Analysis

The Boston Consulting Group (BCG) uses ______to quantify performance measures and growth targets to analyze its clients' SBUs as though they were a collection of separate investments

Business Portfolio Analysis

The Boston Consulting Group (BCG) uses Business Portfolio Analysis to quantify performance measures and growth targets to analyze its clients' strategic business units

As if each were a separate investment

SBUs with a high share of high-growth markets that may not generate enough cash to support their own demanding needs for future growth are referred to as

Stars

SBUs with a low share of slow-growth markets—they may generate enough cash to sustain themselves, but they do not hold the promise of ever becoming real winners for the firm are referred to as ___

Dogs

Several years ago, Black & Decker purchased General Electric's small appliances product line. Black & Decker purchased the line because it needed the cash infusion from a product line that had a dominant market share. The small appliance industry is a slow-growth one. The small appliances product line is most likely a __________ for Black & Decker

Cash Cow

In its business portfolio analysis, an organization's SBUs often start as __________ and then become __________.

Question marks; stars

In 2007, Kodak's ink-jet printer could be considered a question mark because the market dramatically changed as consumers shifted from single-purpose to multi-function machines designed to print photos, make copies, scan images, and send faxes. Today Kodak now offers only multi-function ones. If Kodak can double or triple unit sales soon, this SBU star could become a __________, if online printing and sharing steal market share, the SBU could become a __________.

Star; Dog

In 2003, Kodak's traditional film sales were an $8 billion dollar cash cow. In 2008, the revenue generated dropped below $500 million. The film SBU became a dog primarily due to

the advent of digital photography popularity

One of the strengths inherent in the use of the BCG portfolio analysis is the fact that it

forces firms to assess their SBUs in terms of relative market share and industry growth rate.

The key steps of planning, implementation, and evaluation are part of what is referred to as

Strategic marketing process

The marketing strategy to increase sales of current product in existing markets is referred to as

Market Penetration

The marketing strategy to sell existing products to new markets is referred to as __________.

correct market development

Two major ways for a company to benefit from taking a market penetration approach would be

sell more product at the same price or sell the same amount of product at a higher price.

The first step in the strategic marketing process is

Situation Analysis

The second phase of the strategic marketing process is the

Implementation Phase

The phase of the strategic marketing process when a firm obtains resources, designs the marketing organization, develops schedules, and actually executes the marketing program occurs during the

Implementation Phase

The four major elements of the implementation phase of the strategic marketing process include (1) obtaining resources, (2) designing the marketing organization, (3) developing schedules, and (4) __________.

Executing the marketing program designed in the planning phase

A marketing strategy is the means by which a marketing goal is to be achieved. Two factors that usually characterize a marketing strategy are

A specified target market and a marketing program to reach it

Marketing strategy refers to

the means by which a marketing goal is to be achieved, usually characterized by a specified target market and a marketing program to reach it.

The detailed day-to-day operational decisions essential to the overall success of marketing

...

The two major aspects of the evaluation phase of the strategic marketing process are

identifying deviations from goals and acting on the deviations.

Planning gap refers to

The difference between the projection of the path to reach a new goal and the projection of the path of the results of a plan already in place.

Evergreen Air Center is the world's largest parking lot for unwanted commercial aircraft. Airlines pay from $750 to $5,000 monthly for the storage services provided by Evergreen. Prior to September 2001, the company had 140 discarded airplanes at its Arizona facilities and was growing at a rate of about six planes monthly with about two a month sold for parts and/or scrap metal. After calamity struck the airline industry in September 2001, the airlines have retired over a thousand planes—many of which found their way to Evergreen. Now the actual number of planes stored at Evergreen differs significantly from the prediction based on previous behavior. This difference is referred to as

The planning Gap.

After examining a planning gap, firms typically attempt to

Exploit a positive deviation and correct a negative deviation.

1. There were four steps in the GPS revolution. First new technologies were developed and became readily available; second, __________; third, competitive forces developed new products and services; and finally consumer changed becoming "geo-enthusiasts."

Regulatory changes were made allowing cell phone frequencies and former military technologies available for commercial use

2. Environmental scanning refers to

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

3. Which of the following statements regarding environmental scanning is the most accurate

Environmental scanning identifies and interprets potential trends.

4. You are the director of marketing for Littleton Hospital. You are doing an environmental scan to help create a five-year marketing plan for the hospital. Which of the following environmental trends should you consider to be the most important?

The number of baby boomers in your geographic area will increase during the next five years

5. 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

6. Environmental scanning identifies and interprets potential trends.

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

7. Studies of the __________ characteristics of the U.S. population suggest several important trends. Generally, the population is becoming larger, older, and more diverse. Marketers are developing products that will appeal to these target markets.

Demographic

8. Why is it likely that the word "minority" as it is used today will have different implications in the future?

The size of most ethnic groups will double during the next two decades.

9. Which of the following statements regarding baby boomers is most accurate

Baby boomers are important to the consumer market because of their increased earnings and participation in the workforce.

10. Generation X is the label often given to

Persons born between 1965 and 1976

11. 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

12. A major regional shift in the U.S. population toward __________ states is under way

Western and Southern States

13. Minority racial and ethnic groups (excluding Caucasians) are concentrated in geographic regions of the United States. Native American groups are heavily concentrated in

Arizona

14. HSBC Bank International Ltd. (Europe's largest bank) selected its advertising agency because that agency was "always sensitive to the possibility that something might not translate well or may offend superstitions about colors or numbers." Its advertising agency was responsive to

Racial and Ethical diversity

15. Combinations of the marketing mix that reflect the unique attitudes, ancestry, communication preferences, and lifestyles of different races are referred to as

Multicultural marketing programs

16. Culture refers to

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

17. Culture includes values, which vary with age. Consumers between the ages of 30-to-39 years old rank __________ as the third most important cultural value

Health and Fitness

18. Wal-Mart has set a goal to reduce packaging on the products it carries. This change is an example of how they are responding to trends in customer values to

Preserve the Environment

19. Many consumers are committed to brands with a strong link to social action. An example of this would be

Brita's "Filter for Good" campaign

20. Geek Squad set out to provide timely and effective help with all computing needs regardless of the make, model, or place of purchase. Employees were called "agents" and wore uniforms with a Geek Squad logo to create a "humble" attitude that was not threatening to customers. Agents drove a black-and-white

Volkswagen Beetle

21. Economy refers to

the income, expenditures, and resources that affect the cost of running a business and household

22. Policy makers at the Federal Reserve in the United States level believe it takes a far bigger swing in unemployment to affect inflation than it did 25 years ago. Now, when inflation fluctuates, they are more likely to blame other factors such as the price of oil. This is an example of a(n) __________ environmental force.

Economic

23. In an inflationary economy, the cost to produce and buy products and services ________ as prices______.

Escalates; increase

24. A sudden drop in the average consumer income would bean example of which environmental factor

Economic

25. Components of a consumers' income include

Gross, disposable, and discretionary incomes.

26. Gross income refers to

The total amount of money made in one year by a person, household or family unit.

27. Disposable income refers to

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

28. If taxes rise at a faster rate than income does, consumers most likely

Feel the pinch of less disposable income and try to economize

29. Discretionary income refers to

The money that remains after paying for taxes and necessities

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