MARKETING CONCEPT CHECKS – Flashcards
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Credited to GE's CEO in the 1950's.
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marketing concept
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Build a better mousetrap. (which concept)
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product concept
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customers must be persuaded to buy products.
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selling concept
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A product may be demarketed because it is harmful
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societal marketing concept
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The philosophy illustrated by Ford was the marketing concept, while the philosophy illustrated by GM was the production concept.
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False
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"A total system of business activities designed to plan, price, promote, and distribute want-satisfying products to target markets to achieve organizational objectives" is the text's definition of:
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marketing
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Anything that provides a bundle of tangible or intangible characteristics or attributes geared toward satisfying customers' wants and needs best defines ____________ .
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A product
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A manufacturer sells its products to wholesalers. These wholesalers then resell the products to retailers in the geographic areas in which they operate. You and I then buy these products from one or more of these retailers. This 'link' between producers on one end and consumers on the other is typically referred to as the:
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Channel of distribution
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When bread is baked,____________ utility is created.
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Form
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Although many activities are essential to a company's growth, marketing is the only one that directly produces revenue.
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true
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Probably the most critical 'premise' of the marketing concept is:
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That the firm's primary objective should be one of identifying and satisfying customers' needs i.e. the customer should be 'central' to everything the firm does
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Barbara has opened a small business. She is selling a bottled mixture of hot and mild peppers, stuffed green olives and spices. The product is distributed by mail. So far, no promotion other than word-of-mouth has been needed. For only $4.75, you can buy a pint jar of the mixture that you can use on everything from chili to Chinese food. The preceding describes the ______________ for Barbara's company.
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Marketing mix
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To which element of the marketing mix do branding and labeling decisions relate most closely?
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Product
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To which element of the marketing mix do personal selling and advertising decisions relate most closely?
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Promotion
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Manufacturers in the _______________________ stage typically focus on increasing output while assuming that customers will seek out and buy reasonably priced, well-made products.
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production-orientation (production concept)
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Bates Manufacturing produces some of the finest furniture in North Carolina. Buyers world-wide attend furniture shows to view Bates' newest creations. Last year, management increased its production capacity by almost 20 percent, assuming that increased capacity would lead to substantial cost reductions that would allow Bates to further lower its prices. Management assumed that buyers choose its furniture due to its high quality and reasonable prices. Bates Manufacturing is acting as if it is in the _____________ stage of marketing thought.
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Production-orientation
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(t/f) With relationship marketing a company is hoping to establish a feeling of goodwill with its customers, suppliers, employees, and competitors as well as a sense that the firm cares about more than making a sale.
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TRUE
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The adoption of the societal marketing concept by a manufacturer of disposable diapers?
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The manufacturer has initiated a diaper recycling program in conjunction with a consumer education program to make consumers more aware of the potential environmental hazards associated with such products.
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(t/f) Wilson Farms grows some of the finest strawberries in Florida. Customers come from miles away to pick its succulent berries. Last year, its owner increased its production ability by almost 50 percent. The farm owner assumed that customers would pick Wilson Farms' strawberries because the berries were of good quality and reasonably priced. Andover Farms is acting as if it is in the product-orientation stage of marketing thought.
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false
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Nationwide Cars sells pre-owned cars. Its salespersons are expected to do whatever is necessary to reach their sales quotas. Aggressive selling is required for success, and unethical sales tactics, such as selling features that customers do not really need, are tolerated. Nationwide is being operated as if it is at the ____________ stage of marketing thought.
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Sales-orientation
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Air conditioning systems that are manufactured in December will be stored until customers are ready to buy them in the Spring. The act of storing these systems creates ________ utility for customers.
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Time
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(t/f) Every morning Pete buys a newspaper from the vending machine located just outside of his office building. The vending machine creates form and time utility.
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false
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Innovative software traditionally defined its mission as 'developing innovative spread-sheet applications.' Consultants hired by Innovative Software argue that the firm is defining its mission too narrowly, from a 'product perspective.' To avoid falling into the trap of 'marketing myopia,' how would you recommend that Innovative Software redefine its mission?
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Focus on software solutions for meeting a range of customer's applications-related needs.
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(t/f) A target market is anyone who buys the good or service being marketed
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false
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a product's ________________ is the image it projects in relation to competitive products as well as to other products marketed by the same company.
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Position
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A product's "position":
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is the image it projects primarily in relation to competing products and the benefits the product delivers
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(t/f) If the owner of a children's day-care center were to answer the question, "what business are you in?" with the statement, "We nurture children and provide them with a homelike environment that keeps their separation anxieties to a minimum", it would be an example of a market-oriented mission statement.
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True
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Haggar Apparel, one of the United States' largest producers of ready-made custom-fit suits, has responded to the dress-down trend at work by adding jeans and a "relaxed, yet tailored" line of suits called City Casuals. Haggar anticipates that its current customers will be the primary consumers of the new line. According to the product-market matrix, Haggar Apparel is pursuing an opportunity of:
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Product Development
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(t/f) After a company establishes its goals and objectives, it might then develop a broad plan of action to reach the goals. This broad plan of action is called a policy
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false
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The process of subdividing larger, diverse product-markets into more homogeneous submarkets as part of the MOA best illustrates:
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market Segmentation
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The National Football League (NFL) has expanded into various cities in Western Europe including Barcelona and London. Now Europeans can watch football just as its played in the U.S. According to the product-market growth matrix, the NFL is using a strategy of _______________ development.
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market
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Firms engaged in a MOA are least likely to pursue a __________________ opportunity if they wish to remain within the bounds of their firm's current mission.
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Diversification
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Firms that define their missions from a "product" as opposed to a "market" perspective are said to be engaging in:
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marketing myopia
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If the manufacturer of Rogaine wants know how consumers feel about the hair growth product, and also wants to reduce the potential for interviewer bias and guarantee the subject's anonymity, the company probably should use:
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A mail survey
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A market researcher would not use _____________ as a source when gathering primary data for a marketing research project.
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Government reports
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If the owners of Six Flags over Georgia want to know where the amusement park's patrons are coming from, they could send an employee out to collect the state names from the license plates of cars parked in the Six Flags' parking lot. This is an example of the ___________ method of gathering marketing research.
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Observation
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The observation method for gathering research data is most effective for:
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Determining how people act while waiting in a bank line.
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The most important characteristic of a sample that makes it possible to generalize the results of a research study to the population from which the sample was selected is that it is, on average, representative of that population. Which of the following is most likely to ensure the sample is truly representative?
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The sample is selected at random from the population
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The first step in the marketing research process is to:
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Define the problem or question
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With six other small business owners, Scott was invited to a(n) ______________ where the researcher asked the group general questions about how they felt about income tax assistance software. The interview revealed that most small business owners have limited time to learn the programs and would be willing to hire an accounting service if its price was reasonable.
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Focus Group
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(t/f) A safety report prepared by the FDA on the bacteria content of drinking water would be a source of secondary data in a marketing research study being done by a producer of bottled water.
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true
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A mall intercept is an example of:
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The survey method of gathering data
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The U.S. Post Office hired Young & Rubican to create advertising that would communicate the benefits of using its service. First, the ad agency wanted to gather information on how consumers felt about the post office. For this task, Young & Rubican decided to use ethnography. Ethnography was adapted from the anthropological practice of recording human nature. Ethnographic advertising researchers observe consumers in their natural habitats and incorporate these observations into advertising. The ad agency began its research by accompanying mail carriers as they made their daily deliveries to small businesses and watching how the small businesspeople and the mail carriers interacted. The researchers learned that mail carriers were generally well-liked. Any hostile feelings about the U.S.P.O. were aimed toward a large, inanimate, faceless organization. As a result of this study, the U.S.P.O. adopted the slogan, "We Deliver" and features mail carriers in many of its ads. One of the Postal Service's first attempts at marketing research began with the public vote on which of the two versions of the Elvis stamp to produce. The Postal Service gathered 800,000 names and addresses of people who took an interest in their mail service. This collection of names and addresses is an example of a(n):
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Database
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One of the biggest mistakes in marketing research is to:
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Collect primary data before exhausting the information available from secondary sources.
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The publisher of a new needlecraft magazine has developed two possible designs for the magazine-one provides patterns and the other previews innovative new crafts. Two matched groups of subjects were recruited. One group was shown a mock-up with patterns; the other group was shown the one that emphasized innovations. All other conditions were identical between groups. When asked for their buying decisions, it is reasonable to assume that the differences between the percentages of people in each group who intended to subscribe to the magazine are based on their preferences for the different designs. This is an example of the __________________ method of marketing research.
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Experimental
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The U.S. Post Office hired Young & Rubican to create advertising that would communicate the benefits of using its service. First, the ad agency wanted to gather information on how consumers felt about the post office. For this task, Young & Rubican decided to use ethnography. Ethnography was adapted from the anthropological practice of recording human nature. Ethnographic advertising researchers observe consumers in their natural habitats and incorporate these observations into advertising. The ad agency began its research by accompanying mail carriers as they made their daily deliveries to small businesses and watching how the small businesspeople and the mail carriers interacted. The researchers learned that mail carriers were generally well-liked. Any hostile feelings about the U.S.P.O. were aimed toward a large, inanimate, faceless organization. As a result of this study, the U.S.P.O. adopted the slogan, "We Deliver" and features mail carriers in many of its ads. When ethnographers went to the small businesses and watched how the small business owners interacted with their mail carriers, they were gathering:
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Primary data
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(t/f) One can always find highly specific and current secondary data that pertain to the research issue being investigated when conducting marketing research.
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false
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___________________ is an ongoing, organized set of procedures and methods designed to generate, analyze, disseminate, store and retrieve information for use in marketing management decisions.
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A marketing information system
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The U.S. Post Office hired Young & Rubican to create advertising that would communicate the benefits of using its service. First, the ad agency wanted to gather information on how consumers felt about the post office. For this task, Young & Rubican decided to use ethnography. Ethnography was adapted from the anthropological practice of recording human nature. Ethnographic advertising researchers observe consumers in their natural habitats and incorporate these observations into advertising. The ad agency began its research by accompanying mail carriers as they made their daily deliveries to small businesses and watching how the small businesspeople and the mail carriers interacted. The researchers learned that mail carriers were generally well-liked. Any hostile feelings about the U.S.P.O. were aimed toward a large, inanimate, faceless organization. As a result of this study, the U.S.P.O. adopted the slogan, "We Deliver" and features mail carriers in many of its ads. After gathering ethnographic data, Young & Rubican went back and interviewed a select number of the small businesspeople. Why did the ad agency use personal interviews rather than mail?
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Personal interviews are more flexible than mail.
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The Eli Cutter test market discussed in class probably failed because:
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Cutter was positioned too close to its likely major competitor - Marlboro
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________________ are new data gathered specifically for the project at hand. Such data are not available from other existing sources.
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2. Primary Data
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___________________ is a good example of a field experiment.
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Test marketing
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Observations by the researchers of how customers select pesticides would be a source of ____________________ data in a marketing research study being done by a researcher for a manufacturer of pesticides.
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primary
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Why would a marketing researcher use a survey rather than some other tool to gather research data?
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Experiment conducted in a laboratory setting.
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Because the data generally can be collected quickly and inexpensively, most researh projects usually start by collecting ___________ .
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secondary data from existing sources
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______________ is the internet portal that links to most websites available throught the Federal government.
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www.usa.gov
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Gatorade staffers monitor social-media posts 24 hours a day, hoping what they see and learn will help the company more effectively promote its new G-Series of drinks and other products. Staffers may actually engage with consumers via social media to make product suggestions, or stimulate added discussion of its products. Gatorade clearly is collecting valuable information via this activity. Gatorade's use of social media in this manner probably is best considered what form of research?
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Observation research
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Which of the following best suggests the major distinction between classical conditioning and iconic rote learning as applied to advertising?
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Classical conditioning is used to generate a direct affective response to the brand; iconic rote learning attempts to create top-of-mind awareness for the brand - an emotional response to the brand is not intended.
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(t/f) Salem cigarettes ran a series of advertisements in the 80's that initially employed the jingle: "You can take Salem out of the country, but you can't take the country out of Salem." In later ads, the copy employed in many outdoor ads (bill boards) and in other printed media was shortened to: "You can take Salem out of the country, but....." The psychological principle illustrated here is the consumer's need for closure. The advertiser employed this technique to overcome selective attention?
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true
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When Don went to the bookstore to see if his physics textbook was in stock, he walked by the magazine rack and saw the new copy of Mother Earth News. He picked the magazine up and bought it without any prior planning. Buying the magazine was an example of _______ buying
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Impulse buying
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The process of receiving, organizing and assigning meaning to information or stimuli detected by our five senses is called:
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perception
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(t/f) "Like the ad, like the product" is often used as the theoretical justification for using fear appeals in advertising.
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false
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In 1995, there were 4,500 coffeehouses in the United States. The Specialty Coffee Association predicts there will be at least 9,000 by the year 2000. The growth of coffeehouses as been spurred by the cross-generational appeal of the java joints. Some people have called the gathering places "a 'Cheers' without booze." More serious observers of the growing passion for coffee have noted that since all the old vices -- smoking, sex, drinking before driving-have been deemed unsafe, coffeehouses provide one of the last unregulated drugs in the U.S.-caffeine. A public relations executive describes coffeehouses as "middle class crackhouses." Whatever they are, their popularity is undeniable. In which stage of the buying decision process would Tyler be if he was trying to figure out the difference between an iced mocha, a cappuccino, and an espresso?
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Evaluation of alternatives
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To reduce selective attention for the advertising of lower-involvement products, advertisers should avoid:
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TV ads that emphasize detailed information about products
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Marketers rely heavily on self-concept theory in the construction of promotional strategies and programs. Which of the following comments best illustrates the underlying assumption about how self -concept drives consumer purchase decisions?
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Consumers strive to achieve their ideal social and private self by engaging in behaviors that are consistent with that ideal
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Iconic rote learning is used to generate a direct affective response to the brand; classical conditioning attempts to create top-of-mind awareness for the brand - an emotional response to the brand is not intended.
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false
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Stimulus-response is a state of anxiety that occurs in the post-purchase stage of the buying decision process.
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Selective exposure
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Which of the following statements about the buying decision process used by consumers is true?
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. Some stages of the process may be skipped.
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(t/f) George just bought a new car. He like d the speed that comes with a Camaro Z28, but he also liked the luxury of the Lexus. He purchased the Honda Accord because it seemed to combine some of the luxury of the Lexus and some of the speed of Camaro. Even after making his purchase, George wondered if he had missed something by not buying one of the other cars. George experienced cognitive dissonance
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truuuuu
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___________________ is a state of anxiety that occurs in the post-purchase stage of the buying decision process.
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Cognitive dissonance
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In 1995, there were 4,500 coffeehouses in the United States. The Specialty Coffee Association predicts there will be at least 9,000 by the year 2000. The growth of coffeehouses as been spurred by the cross-generational appeal of the java joints. Some people have called the gathering places "a 'Cheers' without booze." More serious observers of the growing passion for coffee have noted that since all the old vices -- smoking, sex, drinking before driving -- have been deemed unsafe, coffeehouses provide access to one of the last unregulated drugs in the U.S. - caffeine. A public relations executive describes coffeehouses as "middle class crackhouses." Whatever they are, their popularity is undeniable. Madison is watching her weight. She felt postpurchase __________ when she realized that she could have ordered a cappuccino with only 70 calories instead of the iced mocha with 150 calories.
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cognitive dissonance
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someone who alters the information he or she reads so that it will be consistent with his or her existing beliefs and attitudes is using:
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Selective distortion
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Which of the following least characterizes the "routine decision" for products and brands?
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information search and brand evaluation are likely to be very extensive
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(t/f) Marketers rely heavily on self-concept theory in the construction of promotional strategies and programs. Consumers strive to achieve their ideal social and private self by engaging in behaviors that are consistent with that ideal best illustrates the underlying assumption about how self -concept drives consumer purchase decisions.
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tru
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An extensive purchasing decision for products or brands is associated with all of the following, except:
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Entails fewer steps in the buying-decision process than does the routine decision
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Which of the following best reflects the relationship between self-concept and lifestyle from a marketing perspective?
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Which of the following best reflects the relationship between self-concept and lifestyle from a marketing perspective?