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Marketing

Terms in this set (46)

The group of firms that makes and delivers a given set of goods and/or services is a called a supply chain.
T/F?
True
Marketing's fundamental purpose is to create value by developing a variety of offerings that
will earn income for the company.
T/F?
False
Firms become value driven, in part, by focusing on the competition.
T/F?
True
Julia is considering a career in marketing. She is concerned about the image of marketers as
fast-talking, high-pressure people who care only about making a sale. When reading about the
core aspects of marketing, Julia is relieved to see that in marketing

A. all parties to an exchange should be satisfied.
B. promotion is the most important consideration, followed by pricing decisions.
C. decisions are made regarding how a product is designed.
D. customers are not considered until the product is ready for sale.
E. distribution is controlled by customers.
A
The four Ps make up the marketing mix, which is the __________ set of activities that the firm
uses to respond to the wants and needs of its target markets.

A. unpredictable
B. external
C. internal
D. controllable
E. global
D
Brian is struggling with the choice of publishing his new book, How to Cook Polish Barbeque,
as an e-book or a paperback. Brian is addressing which core marketing aspect?

A. developing a promotional plan
B. managing the exchange function of marketing
C. making product decisions
D. deciding where and how to sell the product
E. pricing the product
C
T or F
To build a sustainable competitive advantage, companies should focus on a single strategy.
False
T or F
It is not always necessary to go through all the steps in the marketing planning process.
True
T or F
STP refers to segmentation, testing, and promotion.
False
Segmentation targeting promotion
T or F
Isaac is looking for ways to offer new goods and services to his existing customers. He is
pursuing a market development strategy.
False

This is a product development strategy. A market development strategy offers existing
products and services to new customers.
T or F
Product penetration is one of the four major growth strategies.
False

The four major growth strategies are market penetration, product development, market
development, and diversification.
Carla has been directed by her regional marketing manager to cut prices on seasonal items,
place an ad in the local paper, and tell distributors to reduce deliveries for the next month.
Which step of the strategic marketing planning process is Carla engaged in?

A. evaluate performance
B. define the business mission
C. perform situation analysis
D. implement marketing mix and resources
E. identify and evaluate opportunities
D

Carla is dealing with implementation of the marketing mix—price cuts (price), advertising
(promotion), and distribution changes (place).
When conducting a SWOT analysis, in what phase of the strategic marketing process is an
organization presently engaged?

A. planning
B. implementation
C. control
D. segmentation
E. metrics
A
Lionel is asked to conduct an STP analysis for his firm. The first step he should perform in this
analysis is to

A. develop a business mission statement.
B. choose the best target markets.
C. reposition existing segments.
D. divide the marketplace into subgroups.
E. conduct a SWOT analysis.
D

The first stage of an STP analysis is segmentation, which involves dividing the market into
subgroups. Business mission development and SWOT analysis take place before STP
analysis starts, and targeting and positioning are later stages in STP analysis.
T or F

Coca-Cola launched Coke Zero to avoid cannibalizing current sales and to attract new
customers in a segment it might not get with Diet Coke.
True
T or F

Positioning strategies generally focus either on how the product benefits the consumer or on
how it is better than competitors' products.
true

Positioning refers to communicating the unique value the product or service provides to its
customers, and how it is better than or different from competitive products.
T or F
The first step in the STP process is to establish an overall strategy.
True

The first step of the STP process is to establish strategy or objectives.
A complex product that is best described in writing will be difficult to explain to consumers who
are unable to read. For this reason, a segment in which many consumers could not read
would be considered unattractive because the consumers would not be responsive.
False

The problem here is not responsiveness, but reachability. The consumers might respond very
well to the offer if they could receive the message; however, their failure to read will make it
difficult to reach them with positioning messages.
When Penguin Catering Services first opened, the owner decided to target only events at
resorts in its geographic region. Penguin Catering was using a(n) __________ targeting
strategy.

A. concentrated
B. micromarketing
C. benefit-driven
D. differentiated
E. undifferentiated
A

A concentrated targeting strategy is one in which the firm focuses its efforts on a single market
segment, such as the resorts in Penguin Catering's geographic region.
Value is what you get for what you give
T/F?
true
A group of firms that makes and delivers a given set of goods and services is known as a distribution network.
T/F?
False
Jami sells construction equipment. Whenever she calls on her building contractor customers, she asks if they are having any problems. In doing so, Jami is addressing which of the following core aspects of marketing?

A. satisfying customer needs and wants
B. completing the exchange function of marketing
C. making product, place, promotion, and price decisions
D. making decisions about the setting in which marketing takes place
E. creating value
A
Geraldo manages the electrical turbine engine division of General Electric Corporation. He makes most decisions independently, without consulting headquarters. Geraldo manages a strategic business unit.
T/F?
True
Whenever Valerie has a new massage therapy customer, she invites the person to be on her e-mail distribution list. In the process, in addition to exchanging her massage therapy service for payment, Valerie is gathering

A. information.
B. promotional capital.
C. pricing data.
D. value cocreation.
E. feedback.
D
Marketers want their firms to develop excellent supply chain management and strong supplier relations so they can

A. persuade stores to refuse to carry competitors' products.
B. use their power within the supply chain to force weaker firms to accept less favorable pricing.
C. control prices and lock in margins.
D.create a sustainable competitive advantage.
E. justify charging higher prices than competitors do.
D
For many years, Southwest Airlines distinguished itself as the low-cost airline. Now, many other low-cost competitors have entered the market. Similarly, Southwest was one of the first airlines to offer online ticketing. Now, all airlines have online ticketing. These examples suggest that

A. no single strategy is likely to be sufficient to build a sustainable competitive advantage.
B. a situation analysis does not accurately predict a firm's strengths.
C. customer excellence cannot be achieved.
D. product excellence is the only true source of a sustainable competitive advantage.
E. innovation is pointless because competitors will develop copycat offerings.
A
Maintaining a unique value proposition can be sustained in the long term only in monopoly situations or monopolistic competition situations.
T/F?
True
Perceptual maps include positions of current brands as well as ideal points where a consumer segment would want a product to be.
T/F?
True
"Effective marketing doesn't just happen." It is

A. promoted through STP analysis.
B.possible only for seasoned marketing executives to achieve.
C. planned.
D. introduced through control phase SBUs.
E. the result of competitor's failures.
C
The first step in the STP process is to

A. identify the segmentation methods to be used.
B. produce a list of strengths and weaknesses of the firm's past marketing strategies.
C. clearly articulate the firm's vision or marketing strategy objectives.
D. select target markets.
E. develop a marketing mix so that an appropriate segment can later be identified.
C
Many companies use the Internet to allow consumers to design customized products; for example, Nike allows customers to order shoes with custom color combinations. This is a form of

A. micromarketing.
B. concentrated targeting.
C. psychographic segmentation.
D. differentiated targeting.
E. undifferentiated targeting.
A
Four frequently used targeting strategies are the micromarketing, undifferentiated, differentiated, and __________ targeting strategies.

A. geographic
B. benefit-based
C. economic
D. global
E. concentrated
E
"Corporate pilot fish" are former employees who start a new business based primarily on contacts and contracts with their old company. A corporate pilot fish would probably pursue a(n) __________ targeting strategy.
A. macromarketing
B. micromarketing
C. benefit-based
D. differentiated
E. undifferentiated
B
32. __________ is an extreme form of a targeting strategy.

A. Macromarketing
B. Micromarketing
C. Benefit marketing
D. Differentiated targeting
E. Concentrated targeting
B

Micromarketing is an extreme form of targeting, where a company caters to extremely small
segments.
T or F

When a firm has a particular profit goal as its overriding concern, it will use target return
pricing to meet the profit objective.
False

Target return pricing is used when firms want to produce a specific return on their investment;
target profit pricing is implemented when a firm has a particular profit goal as its overriding
objective.
The demand curve for prestige products generally slopes downward due to higher prices.
False

Prestige products are an example of a product that does not follow the classic downward-
sloping demand curve. When customers value the prestige of a product more than the price
differential, a higher price may lead to a greater quantity sold.
T or F
Pure competition occurs when there are many firms competing for customers in a given
market but their products are differentiated.
False

This is the definition of monopolistic competition. With pure competition, a large number of
sellers offer standardized products or commodities that consumers perceive as substitutable,
such as grains, gold, meat, spices, or minerals.
A _______ strategy involves accurately measuring all the factors needed to predict sales and
profits at various price levels, so that the price level that produces the highest return can be
chosen.

A. sales orientation
B. target profit
C. target return
D. status quo
E. maximizing profits
E

A maximizing profits strategy attempts to make the greatest possible profit, and therefore will
set prices accordingly. A great deal of information is needed to make this determination.
Brands that have developed loyal customers have a higher price elasticity of demand.
T/F?
False
In U.S. markets, there are many substitute products for Fruit Loops cereal, suggesting the price elasticity of demand for Fruit Loops is high.
T/F?
True
Costs related to supply and costs related to demand are the two primary cost categories.
T/F?
False
Dynamic pricing is also referred to as individualized pricing.
T/F?
True
In developing marketing strategies, why is price often the most challenging of the four Ps to manage?

A. because most managers feel it is the least important element of the marketing mix
B. because it is the least understood element of the marketing mix
C. because it has to be based on the promotion budget for the product
D. because it is difficult to calculate markups for products
E. because managers don't understand the relationship between benefits and costs
B
Gary is the marketing manager for an automobile dealership. His boss tells him the firm's primary goal is to increase its local market share from 15 to 30 percent. His firm is using a ________ orientation.

A. profit
B. sales
C. competitive
D. customer satisfaction
E. product development
B
Bernard's firm has set corporate direction to become one of the leaders in each of its significant market segments. It was Bernard's job to examine the firm's pricing strategy to determine how to maximize market share, even at the expense of profits in the short run. What kind of company objective would guide Bernard's effort?

A. industry-oriented
B. sales-oriented
C. competitor-oriented
D. innovation-oriented
E. customer-oriented
B
According to your text, research has consistently shown that consumers usually rank which of the four Ps as one of the most important factors in their purchase decisions?

A. Promotion
B. Place
C.Product
D. Perception
E. Price
E
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