BAS 282: Principles of Marketing – Flashcards
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Through the use of _____, Revlon identified the fact that its brand names (Revlon, Almay and Flex) had developed a poor image with both its customers and its retailers.
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environmental scanning Response Feedback: Environmental scanning is the collection and interpretation of information gathered from the external environment.
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Thermo Electron Corporation, the biggest maker of measurement instruments for medical laboratories, agreed to buy the radiation-monitoring products unit of Compagnie de Saint-Gobain for $30 million to gain European customers. Saint-Gobain (of France) is Europe's number one distributor of building materials, and its radiation monitoring unit did not support the company's mission statement. This means that:
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The diversification into radiation monitoring equipment did not let the company focus on the market it wished to serve.
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Flexcar is a car rental service found in many metropolitan areas. It targets people who take mass transit or carpool to work but who occasionally need to run errands, visit the doctor, or check on a sick child. Flexcar is the only company currently providing cars that can be rented by the hour. Flexcar has created a(n) _____ advantage. competitive
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service differentiation competitive Response Feedback: A service differentiation competitive advantage exists when a firm provides something unique that is valuable to buyers beyond simply offering a low price.
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FFRS Patricia Curtis has been running the Ferrets First Rescue and Shelter (FFRS) since 1996. FFRS is in the business of ferret pickup and rescue, as well as ferret boarding and training, and education for ferret owners. She would like to expand her operations, and has been asked to write a marketing plan in order to apply for a bank loan. Curtis knows she can better serve ferrets and ferret owners if she can expand her target audience to schools, animal control officers at city facilities, and pet stores. To do this, she must increase marketing communications. Refer to FFRS. Curtis will be exploring aspects of what her service offers, her central location and mobile pickup offering, the price of ferret adoptions, and promotions to increase awareness and expand donations. These elements in the marketing plan make up the service's:
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Product/service, place/distribution, price, and promotion make up the marketing mix.
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Railroads often offer their customers a trucking service for local delivery or trailers for piggybacking loads to their final destination. Which of the following statements justifies the addition of these services to their strategic plans?
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A broad mission statement would recognize that the firm's business is total transportation service.
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Solitude Nurseries is a retailer that helps homeowners create backyard sanctuaries for pondering the wonders of nature. Its owner believes he maintains the loyalty of the store's customers by stocking only the highest quality merchandise and offering a customer satisfaction guarantee. With which element of the marketing mix is the manager most concerned?
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product Response Feedback: The product element of the marketing mix includes guarantees and quality.
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In order to expand its sales into the U.S. market, BRL, an Australia-based winemaker, agreed to a merger with a U.S.-based wine distribution company. According to Ansoff's Strategic Opportunity Matrix, BRL would be implementing a _____ strategy.
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market development Response Feedback: Market development refers to the attracting of new markets (U.S. consumers) to existing products.
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Which of the following is one of the elements of the marketing plan?
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all of the choices Response Feedback: See Exhibit 2.1.
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When light bulbs were first introduced, manufacturers offered one size for all light fixtures. Today you can buy light bulbs in different shapes, different wattages, and different colors. They also differ as to how much electricity they use and how many hours of illumination they will provide before failing. Light bulb manufacturers:
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recognize different customer groups have different needs and wants Response Feedback: One way to implement the marketing concept is to concentrate on the needs of specific groups of customers.
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Due to consumer concerns about skin cancer and other negative outcomes associated with sun exposure, the trend in sun-care products throughout most of the 1990s was in favor of higher SPF sunscreens. This seems to be changing now, at least for some target segments. In response to the latest trends of teenagers using baby oil, Crisco, and even motor oil to enhance tanning effects, Coppertone and Hawaiian Tropic have introduced new low-UV-protection products. While giving customers what they want indicates a _____ orientation, creating a potential problem (an increase in skin cancer) shows a potential absence of a _____ orientation.
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Selling low SPF products to satisfy the needs and wants of the teenage market is a market orientation, while other suntan companies may be concerned with other market segments and society's long-term interests (societal orientation).
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Which of the following statements contains one good reason for studying marketing?
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Marketing offers outstanding career opportunities. Response Feedback: Marketing plays an important role in society, coordinating the huge numbers of transactions needed to provide goods and services. Marketing affects your day-to-day life as a consumer.
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The statement, "Marketing should be introduced at the beginning rather than the end of the production cycle and integrated into each phase of the business," is consistent with a(n) _____ orientation.
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market Response Feedback: Understanding the competitive arena and competitors' strengths and weaknesses is a critical component of market orientation.
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In order for exchange to occur:
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each party must have something the other party considers to be valuable Response Feedback: Exchange involves the trade of items of value, but does not necessarily involve formal organizations, profit, or money/legal tender.
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A town of 50,000 has two maternity hospitals. A billboard for one of the hospitals reads, "We have the most modern delivery rooms," and indicates a _____ orientation. A billboard for the other hospital reads, "We love babies," and indicates a _____ orientation.
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The first hospital is answering the production question, "What do we do best?" The second hospital is showing its concern for its customers.
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The marketing concept stresses that the social and economic justification for an organization's existence is the satisfaction of customer needs and wants while:
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simultaneously meeting organization objectives Response Feedback: The marketing concept holds that the needs and wants of both the customer and the firm be served.
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What is the fundamental objective of most businesses?
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The use of marketing allows businesses to achieve this objective.
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Zimmer Centralpulse is the world's largest producer of replacement hips and knees for orthopedic surgery. It has developed a new sturdier joint that will extend the life of the average replacement joint by five years. This longer-lasting joint resulted from:
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Applied research is an attempt to develop new or improved products.
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The Michigan State Legislature tried to pass a bill requiring concert promoters and venue operators to print parental warnings on tickets and advertisements for concerts and shows by performers whose recordings have already been given content advisory labels. Promoters and venue operators prevented the passage of this bill that would have required them to make value judgments they felt ill-equipped to make. The concert promoters and venue operators engaged in:
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Attempting to influence external environmental factors is known as environmental management.
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In their desire to boost ratings, television news programs have done just about anything. One famous example is the Dateline NBC segment about General Motors' 1973-1987 pickup trucks, which was entitled "Waiting to Explode?" The 15-minute segment contained a short, dramatic portion that featured two side-impact tests that NBC had run to purportedly demonstrate what could happen when the GM pickup trucks were struck in the side. GM sued NBC alleging defamation and damage to its reputation. GM argued that the Dateline segment was an unscientific demonstration, was inappropriate, and did not support the position that GM's trucks were defective. NBC admitted that the crash was rigged and apologized to GM and the Dateline viewers. Refer to Dateline NBC and GM. By admitting its error and providing a formal apology, NBC achieved which level of the pyramid of corporate social responsibility?
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ethical Response Feedback: By apologizing, NBC did what was right.
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Cheetera Johnson is a calculating, self-centered salesperson. She never engages in relationship marketing. She looks on any sales situation as a "win-lose" situation, and she believes any legal method she can use is justified when she wins. Johnson is most likely at the _____ stage of ethical development.
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Preconventional morality is the most basic level of morality.
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In their desire to boost ratings, television news programs have done just about anything. One famous example is the Dateline NBC segment about General Motors' 1973-1987 pickup trucks, which was entitled "Waiting to Explode?" The 15-minute segment contained a short, dramatic portion that featured two side-impact tests that NBC had run to purportedly demonstrate what could happen when the GM pickup trucks were struck in the side. GM sued NBC alleging defamation and damage to its reputation. GM argued that the Dateline segment was an unscientific demonstration, was inappropriate, and did not support the position that GM's trucks were defective. NBC admitted that the crash was rigged and apologized to GM and the Dateline viewers. Refer to Dateline NBC and GM. NBC apologized and concluded that "unscientific demonstrations should have no place in hard news stories at NBC. That's our new policy." This new policy should be incorporated into NBC's:
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code of ethics Response Feedback: A code of ethics is a guideline to help managers and employees make better and ethical decisions.
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Many people in the United States choose to drink light beer because Americans value thin and fit bodies. In Europe, light beers have had little success because flavor is valued more highly. For international beer manufacturers, this difference illustrates how _____ influence marketing.
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Values are an example of social factors and influence what products people buy.
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In their desire to boost ratings, television news programs have done just about anything. One famous example is the Dateline NBC segment about General Motors' 1973-1987 pickup trucks, which was entitled "Waiting to Explode?" The 15-minute segment contained a short, dramatic portion that featured two side-impact tests that NBC had run to purportedly demonstrate what could happen when the GM pickup trucks were struck in the side. GM sued NBC alleging defamation and damage to its reputation. GM argued that the Dateline segment was an unscientific demonstration, was inappropriate, and did not support the position that GM's trucks were defective. NBC admitted that the crash was rigged and apologized to GM and the Dateline viewers. Refer to Dateline NBC and GM. NBC felt it had an obligation to its viewers to warn them about the possible defects in GM pickup trucks. NBC is operating on a level of:
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conventional morality Response Feedback: NBC is operating on a level of conventional morality because it is concerned with the expectations of society. Loyalty and obedience to the organization and the consumer become paramount.
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In their desire to boost ratings, television news programs have done just about anything. One famous example is the Dateline NBC segment about General Motors' 1973-1987 pickup trucks, which was entitled "Waiting to Explode?" The 15-minute segment contained a short, dramatic portion that featured two side-impact tests that NBC had run to purportedly demonstrate what could happen when the GM pickup trucks were struck in the side. GM sued NBC alleging defamation and damage to its reputation. GM argued that the Dateline segment was an unscientific demonstration, was inappropriate, and did not support the position that GM's trucks were defective. NBC admitted that the crash was rigged and apologized to GM and the Dateline viewers. Refer to Dateline NBC and GM. When people tune in to a television news show, they expect to be told the truth about events covered on the news. The moral principles or values that should generally govern the conduct of the news media are called:
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ethics Response Feedback: Ethics refers to moral principles or values generally governing the conduct of an individual or group.
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Field Entertainment was given the task of distilling 75 years of Disney Magic into a two-hour show. While the task was formidable, the company described the results as multi-generational (meaning the newly created show appeals to children, parents, and grandparents). Field Entertainment relied heavily on _____ factors to develop a new show that would be appreciated by potential audiences of all ages.
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demographic Response Feedback: Age is a demographic characteristic.
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When a homeowner visited The Home Depot to buy what he thought he needed to fix a leaking toilet, he gathered up materials totaling almost $70. One his way to checkout, an employee asked him what was he trying to fix. After some discussion, the employee convinced the homeowner that a $5.99 replacement part would fix the problem better than the materials he thought he needed and with less trouble. This sort of discussion between employees and customers is commonplace at The Home Depot and indicates the retail store has a(n) _____ orientation.
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market Response Feedback: The marketing concept, the foundation of a market orientation, holds that the needs and wants of both the customer and the firm be served.
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Xerox emphasizes _____ by replacing at its own expense any dissatisfied customer's equipment within a period of three years after purchase.
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customer satisfaction Response Feedback: When customer expectations regarding product quality, service quality, and value-based price are met or exceeded, customer satisfaction is created.
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Greenberg Smoked Turkey, Inc., is a nationwide mail-order business that operates without any advertising. It does not accept credit cards and has no toll-free number for customers to call. The company that is hopelessly old-fashioned is also a very profitably company with thousands of devoutly loyal customers--some of whom have ordered Greenberg smoked turkeys every year for the last fifty years. Greenberg more than likely uses _____ to maintain these long-term ties to its customers.
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relationship marketing Response Feedback: Relationship management is a strategy that entails forging long-term partnerships with customers.
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_____ is the primary tool used by a sales-oriented organization to achieve its corporate goals.
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Promotion Response Feedback: A sales-oriented organization seeks to generate sales volume based upon intensive promotional activities.
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Rose is a telephone order taker for Brylane, a catalog retailer of furnishings for bedrooms and baths. A customer called and asked if the sea green in a bedspread she had purchased matched the green in a lamp offered in the newest Brylane catalog. Rose got the potential customer's phone number, went out to the warehouse, located the items, determined they did not match, and called the potential customer to tell her that information. Rose's actions illustrate a(n) _____ orientation.
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A market-oriented philosophy is based on the consumer's wants and needs, and the dealer satisfied these needs by providing excellent customer service, which resulted in further business. Building a relationship with this customer was an important key.
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Researchers at PPG Industries spent considerable time, effort, and money developing a bluish windshield that would let in filtered sunlight but block out the heat. Little market research was done, but the scientists were convinced this new product would be significantly better than existing windshields even though it was more expensive and of a different color than the current models on the market. This scenario suggests PPG most likely has a(n) _____ orientation.
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production Response Feedback: The questions they apparently asked before developing their windshield were "What can we do best?" and "What can we make with the equipment we already own?" This is a production orientation.
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A town of 50,000 has two maternity hospitals. A billboard for one of the hospitals reads, "We have the most modern delivery rooms," and indicates a _____ orientation. A billboard for the other hospital reads, "We love babies," and indicates a _____ orientation.
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production; market Response Feedback: The first hospital is answering the production question, "What do we do best?" The second hospital is showing its concern for its customers.
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Jewelry stores want to provide their customers with the highest quality of diamonds available at the lowest possible prices. Unfortunately, the lowest priced diamonds these days are sold by African rebels who use the profits to engage in genocide. Human rights organization have asked jewelers to buy diamonds that are "conflict-free," that is from South Africa, Australia, or Canada. LeeBrant is one retail jewelry store that sells only diamonds that are certified to be from these countries. One could say that LeeBrant has a _____ orientation while those that are not willing to sell the higher priced non-conflict diamonds have more of a _____ orientation.
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societal marketing; market Response Feedback: LeeBrant has a societal marketing orientation because it is not only trying to satisfy customers' wants but also trying to enhance society's long-term best interests. The other jewelers that continue to sell diamonds purchased from the rebels are more interested in satisfying their customers desire for lower prices than in serving society.
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Mimi Couturier is a design company that specializes in formalwear for women. The company is known for challenging fashion mores. The company's fashion designers use computer-assisted design software to create what it thinks women should wear. The company regularly hires industry experts to examine its factories to find waste and inefficiencies that can be eliminated. The company has expanded the number of products it offers for sale many times. However, for the last two years Mimi Couturier has lost money, and it has had to lay off some of its work force. To avoid this occurrence in the future, Mimi Couturier should:
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have someone study its target market to see what needs and wants should be met by Mimi Couturier Response Feedback: Mimi Couturier has been production-oriented. It should develop a market orientation, which means the firm will produce only those items needed by its target market.
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The manufacturer of Omega brand watches has a market orientation and adheres to the marketing concept. Which of the following describes the first action the company would most likely take if it learned its customers were dissatisfied with its watches?
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conduct research to determine if its customers' needs have changed Response Feedback: A marketing concept and market-oriented philosophy are based on the consumer's wants and needs, and the organization will focus its activities on satisfying these customers by listening to them and revising strategies as necessary.
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The management at Canadian Pacific (CP) Hotels has authorized its hotels' staffs to provide whatever amenity--such as a special magazine or a hypoallergenic pillow--their frequent stayers request as quickly as possible. CP management uses _____ to provide customer value.
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empowerment Response Feedback: CP management gave employees expanded authority to solve customer problems on the spot.
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The concept of exchange is important to marketing because:
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marketing activities help to create exchange Response Feedback: Marketing activities help the exchange to take place, but marketing can occur without an exchange.
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Jacques Torres Chocolate is a factory and retail store in Brooklyn. Its owner is willing to try to produce new products when his customers suggest them--such as chili-pepper-laced chocolate candy. His only condition is that when he adds new products, his customers have the final say on whether the product is of any value. According to Torres, "If something doesn't move, that's the last time you see it." By focusing on customers' wants, the chocolate company exhibits an _____ orientation.
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market Response Feedback: Torres understands that a sale occurs because a customer makes a decision to buy.
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Jacques Torres Chocolate is a factory and retail store in Brooklyn. Its owner is willing to try to produce new products when his customers suggest them--such as chili-pepper-laced chocolate candy. His only condition is that when he adds new products, his customers have the final say on whether the product is of any value. According to Torres, "If something doesn't move, that's the last time you see it." Apparently Jacques Torres Chocolate:
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profits through customer satisfaction Response Feedback: Jacques Torres Chocolate has a market orientation. See Review Learning Objective 3 for a diagram showing the differences between a market orientation and a sales orientation.
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In order for exchange to occur:
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each party must have something the other party considers to be valuable Response Feedback: Exchange involves the trade of items of value, but does not necessarily involve formal organizations, profit, or money/legal tender.
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The statement, "Marketing should be introduced at the beginning rather than the end of the production cycle and integrated into each phase of the business," is consistent with a(n) _____ orientation.
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market Response Feedback: Understanding the competitive arena and competitors' strengths and weaknesses is a critical component of market orientation.
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To increase interest in rodeos, the local chapter of the National Rodeo Cowboys Association (NRCA) is offering free roping lessons to students in the sixth and seventh grades. An exchange will take place because:
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If the course has no value, then an exchange cannot occur. Without communication, the exchange of knowledge for time and energy cannot occur. In an exchange, each participant has something of value to the other. For an exchange to occur, each party must believe it is desirable.
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Taxi companies in many large metropolitan areas are requiring newly licensed taxi drivers to undergo a two-day training seminar during which they learn basic etiquette and acquire a familiarity with common landmarks and street names. The purpose of this training is to:
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improve customer service Response Feedback: Leading marketers recognize the role of employee training in customer service.
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For years, the slogan used in all the advertising done by British Airways has been "Putting people first." In this short phrase, British Airways has captured the idea of:
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the marketing concept Response Feedback: The marketing concept justifies a company's existence by its ability to satisfy customers.
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Frequent-flyer programs are an example of financial incentives to customers in exchange for their continuing patronage. After flying a certain number of miles or flying a specified number of times, the frequent-flyer program participant earns a free flight or some other award such as free lodging. Airlines that use frequent-flyer programs are practicing:
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relationship marketing Response Feedback: The strategy that entails forging long-term partnerships with customers is called relationship marketing.
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Greenberg Smoked Turkey, Inc., is a nationwide mail-order business that operates without any advertising. It does not accept credit cards and has no toll-free number for customers to call. The company that is hopelessly old-fashioned is also a very profitably company with thousands of devoutly loyal customers--some of whom have ordered Greenberg smoked turkeys every year for the last fifty years. Greenberg more than likely uses _____ to maintain these long-term ties to its customers.
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relationship marketing Response Feedback: Relationship management is a strategy that entails forging long-term partnerships with customers.
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Indonesian logging companies harvest the rain forests for timber and assume that a market exists for their products. The typical Indonesian logging company has a(n) _____ orientation.
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production Response Feedback: The logging companies do not focus on the needs and desires of the marketplace.
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Rose is a telephone order taker for Brylane, a catalog retailer of furnishings for bedrooms and baths. A customer called and asked if the sea green in a bedspread she had purchased matched the green in a lamp offered in the newest Brylane catalog. Rose got the potential customer's phone number, went out to the warehouse, located the items, determined they did not match, and called the potential customer to tell her that information. Rose's actions illustrate a(n) _____ orientation.
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market Response Feedback: A market-oriented philosophy is based on the consumer's wants and needs, and the dealer satisfied these needs by providing excellent customer service, which resulted in further business. Building a relationship with this customer was an important key.
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An expert in library science stated in Library Journal, "It should be fairly clear that librarians do not market and that they never have marketed." He concludes, "What librarians need to tell people is not how wonderful our public libraries are but rather how wonderful they could be." The library science expert is saying that libraries:
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should focus on satisfying the needs of their customers Response Feedback: The marketing concept is based on satisfying the consumer's wants and needs.
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When a homeowner visited The Home Depot to buy what he thought he needed to fix a leaking toilet, he gathered up materials totaling almost $70. One his way to checkout, an employee asked him what was he trying to fix. After some discussion, the employee convinced the homeowner that a $5.99 replacement part would fix the problem better than the materials he thought he needed and with less trouble. This sort of discussion between employees and customers is commonplace at The Home Depot and indicates the retail store has a(n) _____ orientation.
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market Response Feedback: The marketing concept, the foundation of a market orientation, holds that the needs and wants of both the customer and the firm be served.
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As recently as twenty years ago circuses came to town with tents, animals, clowns, and other performers. An advance man arrived about two weeks before the circus actually arrived, covered the community with posters, and gave out free tickets to schoolchildren. If the advance man had done a good job, when the circus arrived and opened its tent doors, three hundred to six hundred people would fill its seats. When the largest circus organizations merged, the newly formed Ringling Bros. and Barnum & Bailey's Greatest Show on Earth began performing in 4,000-seat arenas. Attendance, however, has stagnated in recent years. People have stopped going to the circus because they miss the circus tent and the close intimate atmosphere it created. The newest thing in circuses is a return to the tent atmosphere with an emphasis on the types of entertainment that were popular years ago. Antique circus wagons, calliope music, and cotton candy are replacing the exotic animals and the prima donna performers. To satisfy the needs of this new audience, the tent circus now sells lattes and wine. Refer to Circuses. To exhibit a societal marketing orientation, circuses could:
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Response Feedback: The philosophy called the societal marketing orientation states that an organization exists not only to satisfy customer wants and needs and to meet organizational objectives but also to preserve or enhance individuals' and society's long-term best interests.
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Mimi Couturier is a design company that specializes in formalwear for women. The company is known for challenging fashion mores. The company's fashion designers use computer-assisted design software to create what it thinks women should wear. The company regularly hires industry experts to examine its factories to find waste and inefficiencies that can be eliminated. The company has expanded the number of products it offers for sale many times. However, for the last two years Mimi Couturier has lost money, and it has had to lay off some of its work force. To avoid this occurrence in the future, Mimi Couturier should:
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have someone study its target market to see what needs and wants should be met by Mimi Couturier Response Feedback: Mimi Couturier has been production-oriented. It should develop a market orientation, which means the firm will produce only those items needed by its target market.
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Kinko's copy shops use the equivalent of 10.5 square miles of forest to produce all of the paper needed by the corporation annually. While the company is committed to making a profit, it is also committed to preserving the environment. In 1997, Kinko's wrote an environmental vision in which it committed the company to conserving natural resources. With this 1997 environmental vision, Kinko's adopted a _____ orientation.
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societal marketing Response Feedback: Societal marketing orientation is the idea that an organization exists not only to satisfy customer wants and needs and to meet organizational objectives but also to preserve individuals' and society's long-term best interests.
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There is a quandary facing the timber industry. There is no effective way to prove the legality of wood from places like Indonesia, where as much as 80 percent is cut illegally. Retailers like The Home Depot do not want to sell timber from illegally logged forests even though the demand is great for timber from rain forests. To prove an interest in preserving rain forests, two Indonesian logging companies have developed a bar coding system, which proves the timber was legally acquired. This focus on customers' needs indicates a _____ orientation.
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The marketing concept, the foundation of a market orientation, holds that the needs and wants of both the customer and the firm be served.
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What is the fundamental objective of most businesses?
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survival, profits, and growth
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World Wrestling Entertainment (formerly the World Wrestling Federation) is very focused on what its fans want in terms of product licensing and more importantly in terms of plot lines and character development. All of the company's activities are integrated so that no employee ever loses sight of the company's desire to satisfy its fans. World Wrestling Entertainment has a _____ orientation.
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market Response Feedback: The marketing concept, the foundation of a market orientation, holds that the needs and wants of both the customer and the firm be served.
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As part of instituting an empowerment program, a marketing director should:
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allow non-management employees to resolve problems on their own without prior approval from their immediate supervisors Response Feedback: Empowerment refers to firms that give employees expanded authority to solve customer problems on the spot without having to get management's permission first.
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Networkcar.com sells a plug-in device that connects to computer diagnostic ports that are standard on cars. The device beams signals to dealers who can remotely diagnose or spot trouble. The device allows car dealerships to maintain a closer bond with their customers by offering maintenance before a problem leaves customers with an inoperable or possibly dangerous car. With the device, dealers can better engage in:
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relationship marketing Response Feedback: Relationship management is a strategy that entails forging long-term partnerships with customers.
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Most companies become sensitized to community issues after they've done enough damage to draw the locals' anger. Dofasco, Inc., a highly successful steel company in Ontario, tries to get ahead of business and community issues by annually bringing together representatives from the local area and deciding what projects to improve the local environment will be implemented. This annual community-wide meeting indicates Dofasco has a _____ orientation.
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societal marketing Response Feedback: Societal marketing orientation is the idea that an organization exists not only to satisfy customer wants and needs and to meet organizational objectives but also to preserve individuals' and society's long-term best interests.
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A business is concerned with many day-to-day activities. Some of the most important of these activities are the planning and development of a product, its pricing policy, and the distribution strategy. These activities are all a part of:
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marketing Response Feedback: This description contains three of the four main activities included in the marketing function. Many students may mistakenly believe that marketing is only concerned with promotion.
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Dofasco, Inc. is a Canadian steel manufacturer. According to its CEO, "People can make a phenomenal difference if you stop telling them to come to work, put their brains in a box, and do whatever the supervisor says. We let our employees work in teams." This quote implies that by using teamwork, Dofasco:
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provides its customer with a high level of satisfaction Response Feedback: Teamwork is one way a company with a market orientation creates customer satisfaction.
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_____ is the primary tool used by a sales-oriented organization to achieve its corporate goals.
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Promotion Response Feedback: A sales-oriented organization seeks to generate sales volume based upon intensive promotional activities.
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In 1995, the Chrysler Corporation launched the first complete remake of its minivan category since the firm invented the vehicle category in 1984. The minivans were designed with more curves on the outside and more space on the inside. One of Chrysler's goals for remaking the minivan was to broaden the minivan's appeal beyond the traditional buyer base of practical families. Advertising showed minivans being used to cart everything from senior citizens to canoes. "A minivan is for any time, any place, everyone," was one of the promotional slogans used. To reach other customer groups, Chrysler developed a sports version and a short-wheel-base version of the upscale Town and Country model for sophisticated buyers. Chrysler hoped the $2.6 billion vehicle development cost would pay off as the market expanded. However, competitors also began to offer a wider range of sophisticated models, and competition has become fierce. Refer to Chrysler Minivans. Chrysler set up a team of special customer-service representatives who assist minivan buyers and who are authorized to solve problems immediately. This employees were given:
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empowerment Response Feedback: Delegation of authority to employees is empowerment.
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The marketing concept includes a goal orientation to remind managers that:
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achieving long-term organizational goals is as important as satisfying customers Response Feedback: The goal orientation refers to the company's goals, such as profit, growth, service, and survival.
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Larkspur Pottery used to sell finished pots and figurines by local artists when its owner noticed many of her customers were asking if they could make and personalize their own pieces. Now, she sells pottery blanks, and customers create pieces that exactly suit their needs. This is an example of:
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Managers and owners should challenge assumptions about the firm and the environment and establish new strategies.
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Which of the marketing mix strategies is the most flexible?
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pricing Response Feedback: The only element that is often subject to quick and easy change is price.
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Due to recent hurricanes, orange growers in Florida have lost millions of dollars. As a result, some growers have decided to bulldoze their orange groves and put in freshwater lakes for raising shrimp, a product that has a strong popularity and is more weather-resistant. Former orange growers who are now raising shrimp are pursuing a _____ strategy.
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diversification Response Feedback: Diversification is defined as selling a new product to a new market.
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Patricia Curtis has been running the Ferrets First Rescue and Shelter (FFRS) since 1996. FFRS is in the business of ferret pickup and rescue, as well as ferret boarding and training, and education for ferret owners. She would like to expand her operations, and has been asked to write a marketing plan in order to apply for a bank loan. Curtis knows she can better serve ferrets and ferret owners if she can expand her target audience to schools, animal control officers at city facilities, and pet stores. To do this, she must increase marketing communications. Refer to FFRS. Curtis will be exploring aspects of what her service offers, her central location and mobile pickup offering, the price of ferret adoptions, and promotions to increase awareness and expand donations. These elements in the marketing plan make up the service's:
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marketing mix Response Feedback: Product/service, place/distribution, price, and promotion make up the marketing mix.
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Beverly Morgan started her home-based business, Kitz 4-U Inc. in Hamilton, Ontario, by selling First Aid Kits to fundraising organizations. She has also developed three other affordable "Everything You Need In A Pinch" kits, the Bowling Kit, the Golf Kit, and the Travel Kit. She owns the only company in Canada that creates kits for fundraisers. Kitz 4-U Inc. has a:
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niche competitive advantage Response Feedback: A niche competitive advantage is the advantage achieved when a firm seeks to target and effectively serve a small segment of the market, in this case organizations that need to raise funds. Its advantage is not sustainable because her business could be easily replicated.
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Skoda is a carmaker in the Czech Republic. The auto manufacturer wants to ultimately sell one million Skoda vehicles a year. Skoda could have used a _____ to identify the fact that China, Russia, and India have growing middle classes who are most likely to be new car buyers. As a result, Skoda is building production plants in each of the countries.
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market opportunity analysis Response Feedback: An MOA is the description and estimation of the size and sales potential of market segments that are of interest to the firm.
question
The company that manufactures Molson beer simultaneously launched Arctic brand in Ontario and Tornade brand in Quebec with the intention of gaining a share of the rapidly expanding alcoholic lemonade segment of the beverage industry. The separate launch strategies for the products are due to different market conditions in the two Canadian provinces. Molson used _____ strategies to reach existing markets with its new product.
answer
Molson has developed a new product for people who are already drinkers of Molson's other products.
question
As the head of Eastman Kodak Company, George M. C. Fisher devised a plan to save Kodak from being trapped in the slow growth photography industry, hobbled by huge debts, a dysfunctional management culture, and a dispirited workforce. At the time of his takeover of Kodak, the product development and sales functions for the company were scattered among divisions, and the business mission was ill-focused. Fisher envisioned a long-term strategy in which Kodak focused on its core competencies. By evaluating the pros and cons associated with its various businesses, Fisher decided imaging was the key to the future. He then sold Kodak's health and household-products arms. He also assembled most of the corporate talent into one division and hired an experienced computer marketing executive to head it. Further, by stressing accountability, quality, and cycle time, Fisher began to transform Kodak's slow moving culture. Fisher believes Kodak could double its growth rate in photography, a tough challenge in a slow-growing market, by becoming more global and by challenging Fujifilm in China. Refer to Eastman Kodak Company. By redefining the business to focus on imaging technology, Fisher created a new:
answer
Kodak's mission statement answers the question, "What business are we in?"
question
After an organization implements its strategic plan, management:
answer
must track results, monitor the external environment, and adjust the plan as necessary Response Feedback: Because the strategic environment continually changes, plans must be monitored and altered.
question
Which of the following statements about marketing audits is true?
answer
The main purpose of the marketing audit is to develop a full profile of a company's marketing effort. Response Feedback: Marketing audits should be performed periodically by an inside or outside party who is independent enough to have top management's confidence and to be objective. Marketing audits examines all facets of an organization's internal and external marketing environments.
question
General Electric has a security division that builds equipment for screening passenger luggage checked in at airports. This division is composed of InVision Technologies which manufactures CT scanners, and Ion Track, which measures luggage for trace elements of drugs and explosives. GE's security division is an example of a(n):
answer
strategic business unit Response Feedback: An SBU is a subgroup of a single business or collection of related businesses within a larger organization.
question
Everyone knows the brand name Kleenex. Kleenex is what many consumers think of when they think of tissues. This widely recognized brand name is a source of:
answer
a product differentiation competitive advantage Response Feedback: The brand name is unique and has a valued impression.
question
In 2004, Giorgio Armani, the Italian fashion group, announced plans to launch a $1 billion international luxury hotel chain containing ten hotels and four resorts before the end of 2015. One of the major reasons for opening a hotel chain was an international trend toward luxury lifestyle consumerism. In terms of Armani's situation analysis, the trend toward luxury lifestyle consumerism would be an example of a(n):
answer
Selected Answer: incorrect- advantage because it gives Armani growth opportunities Response Feedback: A SWOT analysis looks at opportunities and threats (external to the organization) and strengths and weaknesses (internal to the organization).
question
Due to recent hurricanes, orange growers in Florida have lost millions of dollars. As a result, some growers have decided to bulldoze their orange groves and put in freshwater lakes for raising shrimp, a product that has a strong popularity and is more weather-resistant. Former orange growers who are now raising shrimp are pursuing a _____ strategy.
answer
diversification Response Feedback: Diversification is defined as selling a new product to a new market.
question
Obstetrics is a the most lucrative service provided by most hospitals. Area hospitals compete to make their delivery rooms the most profitable by designing marketing activities that will allow them to reach their growth objectives. To reach their objectives, hospitals must rely on:
answer
marketing planning Response Feedback: Marketing planning is designing activities relating to objectives and the marketing environment.
question
With hospitals nationwide facing budget cuts and slimmer profit margins, Dekalb County's Medical Center decided to cash in on one of the most consistently profitable services--delivering babies. It initiated a three-year project to build a $55 million state-of-the-art women's center with 18 labor and delivery suites. When the hospital decided to commit its resources to obstetrics, it was engaging in:
answer
strategic planning Response Feedback: Strategic planning provides a long-term vision and thus guides long-term commitment of resources.
question
Strategic plans require:
answer
long-term resource commitments Response Feedback: Strategic plans are long-range plans that involve developing, organizing, and controlling marketing activities.
question
Twenty years ago wine journalists marveled at the innovative product technology the Australian wine industry used to make wine of the highest quality. The determination of the Australian wine industry to exercise control over the winemaking process was perceived as revolutionary. The Australian wine industry's continuing relentless quest for quality improvement established Australian wine as a market leader. This unique quest for superior quality that began two decades ago gives Australian wine a(n):
answer
sustainable competitive advantage Response Feedback: A sustainable competitive advantage is one that cannot be copied by the competition.
question
Coca-Cola drink vending machines are found all over the world. The newest machines have an interactive screen that runs advertisements and allows users to obtain free photos of themselves and ringtones after they have bought a drink. The reason for the introduction of this new style vending machine is to "allow the company to interact more directly with its customers." According to a SWOT analysis, the technology used by these machines and the need to interact with customers are both examples of:
answer
incorrect- benefits because Coke has the resources to make use of the new technology and the changing consumer behavior Response Feedback: A SWOT analysis looks at opportunities and threats (external to the organization) and strengths and weaknesses (internal to the organization).
question
Making sure products are available when and where customers want them is the job of which element of the marketing mix?
answer
distribution strategies Response Feedback: Distribution strategies make products available when and where customers want them.
question
Compaq Computer's decision to charge customers for phone technical support to defray the high cost of phone support and encourage customers to read documentation was a failure because consumers like the human touch. Customer rebellion forced Compaq to rethink this policy. As a result, Compaq decided to focus its resources on reaching the inexpensive home computer market segment through enhanced customer service. This company engaged in:
answer
strategic planning
question
As the head of Eastman Kodak Company, George M. C. Fisher devised a plan to save Kodak from being trapped in the slow growth photography industry, hobbled by huge debts, a dysfunctional management culture, and a dispirited workforce. At the time of his takeover of Kodak, the product development and sales functions for the company were scattered among divisions, and the business mission was ill-focused. Fisher envisioned a long-term strategy in which Kodak focused on its core competencies. By evaluating the pros and cons associated with its various businesses, Fisher decided imaging was the key to the future. He then sold Kodak's health and household-products arms. He also assembled most of the corporate talent into one division and hired an experienced computer marketing executive to head it. Further, by stressing accountability, quality, and cycle time, Fisher began to transform Kodak's slow moving culture. Fisher believes Kodak could double its growth rate in photography, a tough challenge in a slow-growing market, by becoming more global and by challenging Fujifilm in China. Refer to Eastman Kodak Company. Fisher evaluated Kodak's current status based on core capabilities and future expectations. This evaluation process is called a(n):
answer
Selected Answer: incorrect- market audit Response Feedback: When a company pursues a formal study to ascertain its current status and capabilities and its future expectations, it is conducting a situation analysis.
question
Golden Valley Microwave Foods, Inc. is the manufacturer of ACT II popcorn. In its early years, the company had trouble financing the development and marketing of products for the microwave, so it chose to participate in a financial arrangement in which it agreed that it would not sell ACT II popcorn in supermarkets or grocery stores. Which element of the marketing mix was most influenced by this arrangement?
answer
place
question
Carefully specified marketing objectives should NOT be used as a:
answer
method to appeal to all market segments Response Feedback: Marketing objectives should be stated for each target market.
question
In 2004, Giorgio Armani, the Italian fashion group, announced plans to launch a $1 billion international luxury hotel chain containing ten hotels and four resorts before the end of 2015. This _____ will take advantage of an international trend toward luxury lifestyle consumerism and allow the company to achieve its growth objectives.
answer
strategic planning
question
In its stockholders' report, PepsiCo has a _____ that states "our business is to increase the value of our shareholder's investment. We do this through sales growth, cost controls and wise investment of resources. We believe our commercial success depends upon offering quality and value to our consumers and customers; providing products that are safe, wholesome, economically efficient and environmentally sound; and providing a fair return to our investors while adhering to the highest standards of integrity."
answer
mission statement
question
American Express offers a Cobaltcard, a pre-loaded credit card, to thirteen- to twenty-two-year olds looking to make online purchases. While American Express had previously supplied credit cards only to many adults, this was a market that was not being served. The Cobaltcard program is an example of a _____ strategy.
answer
Selected Answer: incorrect- product development Response Feedback: Market development finds new uses for a product to stimulate sales among new customers. This product is a credit card (a long-time AmEx product) aimed at a market.
question
FFRS Patricia Curtis has been running the Ferrets First Rescue and Shelter (FFRS) since 1996. FFRS is in the business of ferret pickup and rescue, as well as ferret boarding and training, and education for ferret owners. She would like to expand her operations, and has been asked to write a marketing plan in order to apply for a bank loan. Curtis knows she can better serve ferrets and ferret owners if she can expand her target audience to schools, animal control officers at city facilities, and pet stores. To do this, she must increase marketing communications. Refer to FFRS. Curtis should know effective strategic planning for the Ferrets First Rescue and Shelter requires all of the following EXCEPT:
answer
marketing information systems
question
PPR, the French retail and luxury goods group, announced plans to sell its Printemps department store chain. PPR will continue to hold onto to its other _____, including Gucci, Yves St. Laurent, Balenciaga, Conforma, its furniture store chain, FAAC, its books and music chain, and La Redoute, a catalog retailer. (All of PPR's divisions are operated as independent businesses.)
answer
strategic business units
question
Thermo Electron Corporation, the biggest maker of measurement instruments for medical laboratories, agreed to buy the radiation-monitoring products unit of Compagnie de Saint-Gobain for $30 million to gain European customers. Saint-Gobain of France is Europe's number one distributor of building materials, and its radiation monitoring unit did not support the company's mission statement. Saint-Gobain sold one of its:
answer
strategic business units (SBUs)
question
Procter & Gamble has a Web site, www.pg.com, that is designed to help customers with product questions. While at the Web site, you can request free samples of Olay Radiance, Pert Plus, and Folgers Latte, all new P&G products. It also offers "More Than a Card," a feature that allows customers to buy an assortment hamper of new P&G products for less than $25. This is an example of how a company can implement a _____ strategy.
answer
Selected Answer: incorrect- market penetration Response Feedback: Product development is the introduction of new products to present market.
question
A planning manager visiting a company's health and beauty aids division discovers the division has no effective method for allocating resources, nor for evaluating actual results against planned results. He suggests the division should prepare a:
answer
marketing audit
question
Coca-Cola drink vending machines are found all over the world. The newest machines have an interactive screen that runs advertisements and allows users to obtain free photos of themselves and ringtones after they have bought a drink. Critics of these new vending machines are concerned that entertaining technology is being used to market sugary products. In terms of a SWOT analysis, this concern would be an example of a(n):
answer
threat
question
Coca-Cola drink vending machines are found all over the world. The newest machines have an interactive screen that runs advertisements and allows users to obtain free photos of themselves and ringtones after they have bought a drink. The reason for the introduction of this new style vending machine is to "allow the company to interact more directly with its customers." According to a SWOT analysis, the technology used by these machines and the need to interact with customers are both examples of:
answer
opportunities because they are part of Coke's external environment
question
Aldi is a no-frills grocery chain. It sells grocery staples right out of crates and boxes with emphasis on low-priced, private-label brands. Aldi stores are typically about one-third the size of the traditional supermarket. By controlling expenses, Aldi enables its customers to save 30 to 50 percent compared to Kroger customers. The chain targets bargain hunters who are willing to rent a cart and bag their own groceries. Aldi uses _____ to create its competitive advantage.
answer
Selected Answer: incorrect- reengineering Response Feedback: Reengineering entails fundamental rethinking and redesign of business processes to achieve dramatic improvements in critical measures of performance.
question
Aldi is a no-frills grocery chain. It sells grocery staples right out of crates and boxes with emphasis on low-priced, private-label brands. Aldi stores are typically about one-third the size of the traditional supermarket. By controlling expenses, Aldi enables its customers to save 30 to 50 percent compared to Kroger customers. The chain targets bargain hunters who are willing to rent a cart and bag their own groceries. Aldi has a(n)
answer
cost competitive advantage
question
Yuengling is the oldest brewery in the United States. It was founded in 1827 in a time when small breweries dotted the nation. It has survived by severely limiting sales of the beer and creating a mystique about the brand. In areas where the beer is sold, its brand name is used the same as Kleenex is used by many to represent all types of tissues. Its competitors all wanted to expand their markets. Yuengling's strategy was "To do nothing." For over 170 years, this strategy has given the brewery a:
answer
Selected Answer: incorrect- brand name strategy Response Feedback: Yuengling offers a product that is available only in a limited area. See Buddy Freddy's example in the text.
question
Skoda is a carmaker in the Czech Republic. The auto manufacturer is launching a marketing drive designed to ultimately sell one million Skoda vehicles a year. Through the use of _____, Skoda has identified the main growth markets for automobiles as China, Russia, and India and has plans to build production plants in each of those countries.
answer
Environmental scanning
question
As the head of Eastman Kodak Company, George M. C. Fisher devised a plan to save Kodak from being trapped in the slow growth photography industry, hobbled by huge debts, a dysfunctional management culture, and a dispirited workforce. At the time of his takeover of Kodak, the product development and sales functions for the company were scattered among divisions, and the business mission was ill-focused. Fisher envisioned a long-term strategy in which Kodak focused on its core competencies. By evaluating the pros and cons associated with its various businesses, Fisher decided imaging was the key to the future. He then sold Kodak's health and household-products arms. He also assembled most of the corporate talent into one division and hired an experienced computer marketing executive to head it. Further, by stressing accountability, quality, and cycle time, Fisher began to transform Kodak's slow moving culture. Fisher believes Kodak could double its growth rate in photography, a tough challenge in a slow-growing market, by becoming more global and by challenging Fujifilm in China. Refer to Eastman Kodak Company. As Kodak actively redefined its business mission, organization culture, global strategy, and so on, it was engaged in:
answer
the strategic planning processes
question
Patents on allergy relief medications like Allegra and Claritin give the pharmaceutical companies that own the patents a(n) _____ for 17 years until the patent expires.
answer
sustainable competitive advantage
question
Thermo Electron Corporation, the biggest maker of measurement instruments for medical laboratories, agreed to buy the radiation-monitoring products unit of Cie de Saint-Gobain for $30 million to gain European customers. Saint-Gobain of France is Europe's number one distributor of building materials, and its radiation monitoring unit did not support the company's mission statement. Saint-Gobain engaged in a _____ strategy.
answer
Divesting means getting rid of SBUs with low market share.
question
Russell Athleticwear was a market leader in the sports apparel industry, an industry that is growing rapidly. With Berkshire Hathaway, Inc.'s recent purchase of Russell Corporation, it becomes an SBU, but it is still an example of a(n) _____ according to the portfolio matrix.
answer
star
question
The starting point of any firm's marketing mix is the:
answer
development of the good or service to be sold
question
Juniper Group, which operates film distribution, health care, and Internet businesses, purchased shoemaker Tags Golf (Tags makes Bobby Jones brand golf shoes) to create its sports division. Juniper Group used a _____ strategy.
answer
diversification
question
Hustler Turf Equipment is a southeastern company that makes landscaping equipment. The company is looking at customer trends, its competitors, and the economy to see if there are any threats or opportunities on the horizon. It has also examined its production policies and sales histories to determine its strengths and weaknesses. Hustler Turf Equipment is conducting a(n):
answer
situation analysis
question
Flexcar is a car rental service found in many metropolitan areas. It targets people who take mass transit or carpool to work but who occasionally need to run errands, visit the doctor, or check on a sick child. Flexcar is the only company currently providing cars that can be rented by the hour. Flexcar has created a(n) _____ advantage.
answer
service differentiation competitive
question
Eastman Kodak Company As the head of Eastman Kodak Company, George M. C. Fisher devised a plan to save Kodak from being trapped in the slow growth photography industry, hobbled by huge debts, a dysfunctional management culture, and a dispirited workforce. At the time of his takeover of Kodak, the product development and sales functions for the company were scattered among divisions, and the business mission was ill-focused. Fisher envisioned a long-term strategy in which Kodak focused on its core competencies. By evaluating the pros and cons associated with its various businesses, Fisher decided imaging was the key to the future. He then sold Kodak's health and household-products arms. He also assembled most of the corporate talent into one division and hired an experienced computer marketing executive to head it. Further, by stressing accountability, quality, and cycle time, Fisher began to transform Kodak's slow moving culture. Fisher believes Kodak could double its growth rate in photography, a tough challenge in a slow-growing market, by becoming more global and by challenging Fujifilm in China. Refer to Eastman Kodak Company. Fisher realized the market for photography is growing slowly, so he planned to expand into China. Which growth strategy is Fisher practicing?
answer
Selected Answer: incorrect- market penetration Response Feedback: Market development stimulates new sales by expanding into new markets.
question
Argosy Arts Institute is a small private technological college with declining enrollment. It has put together a committee to put into action marketing plans that were developed by a consulting company. The goal of the committee is to increase enrollments at the college and attract donations. The committee is involved in:
answer
implementation
question
C-Ice is a canned beverage made from tea and cannabis that is marketed in Europe as a nutritional drink that can boost a user's immune system. The _____ for C-Ice is people who want to improve or maintain their health.
answer
target market
question
Making sure products are available when and where customers want them is the job of which element of the marketing mix?
answer
distribution strategies
question
Fit, a health and fitness magazine, describes its readers as being female, 18 to 25 years of age, single, high school graduates, and earners of above-average income. The magazine's _____ would have identified this market segment.
answer
target market strategy
question
Research has shown that people below the age of fifteen do not use the familiar red ketchup. To capture this market, Heinz markets blue-, purple- and green-colored ketchup. The ketchups have an exotic look, which Heinz hopes will appeal to this market. It still tastes like the old red variety. Since this is not really a new product, just an attempt to reach a new target market, it exemplifies a _____ strategy.
answer
market development
question
In order to expand its sales into the U.S. market, BRL, an Australia-based winemaker, agreed to a merger with a U.S.-based wine distribution company. According to Ansoff's Strategic Opportunity Matrix, BRL would be implementing a _____ strategy.
answer
market development
question
Patricia Curtis has been running the Ferrets First Rescue and Shelter (FFRS) since 1996. FFRS is in the business of ferret pickup and rescue, as well as ferret boarding and training, and education for ferret owners. She would like to expand her operations, and has been asked to write a marketing plan in order to apply for a bank loan. Curtis knows she can better serve ferrets and ferret owners if she can expand her target audience to schools, animal control officers at city facilities, and pet stores. To do this, she must increase marketing communications. Refer to FFRS. Curtis is short of capital and labor and overcrowded with ferrets because they are not adopted out fast enough. She also knows she has superior ferret knowledge and an excellent facility for housing ferrets, and hopes to increase her capacity to 100 ferrets. This assessment process in which she learned this about her environment is called a(n):
answer
situation analysis
question
When an organization creates a mission statement that is too narrow, _____ results.
answer
marketing myopia
question
Thermo Electron Corporation, the biggest maker of measurement instruments for medical laboratories, agreed to buy the radiation-monitoring products unit of Compagnie de Saint-Gobain for $30 million to gain European customers. Saint-Gobain (of France) is Europe's number one distributor of building materials, and its radiation monitoring unit did not support the company's mission statement. This means that:
answer
Saint-Gobain's mission dealt with providing building materials to its customers, not radiation measuring equipment
question
Kristen Clingan's boyfriend had never even mentioned marriage when she received an e-mail announcing her boyfriend had e-impregnated her. The e-mail from www.bunintheoven.com included a positive pregnancy "test" and was followed by a half dozen subsequent messages, including the audio file of the baby's heartbeat and the ultrasound image. The whole process took three months and cost $29.95. At the end of the virtual pregnancy, she received a mug bearing the newborn's photograph. Virtual impregnation is the brainchild of Adam Corsi. He sees the virtual impregnation as a good conversation starter for topics that may not have been broached by a couple before. Refer to Virtual Impregnation. The willingness of couples to participate in this virtual pregnancy results from a fear of making a mistake and not being ready for a baby. The environmental factors most responsible for the company's success are:
answer
social factors
question
Carissa Ty designs and sells clothes for young working women. She has recently been told that unless she starts designing more to suit the style of the Gen Y market, she is likely to be in financial trouble soon. Why would someone tell her that?
answer
Demographically, Gen Yers are an extremely large group of consumers.
question
China's new 5 percent tax on disposable wooden chopsticks, reflecting concerns about deforestation, has been praised by environmentalists. The move is hitting hard at the Japanese who consumer 25 billion sets of wooden chopsticks annually. Almost all of the chopsticks used in Japan come from China. The requirement for Chinese manufacturers of wooden chopsticks to pay the 5 percent tax is a _____ factor in their external environment.
answer
legal
question
Thani Jambulingham wants to open a restaurant that features the finest in Indian and Middle Eastern delicacies. To determine the feasibility of his restaurant, he hired FoodFacts marketing research consultants. The experts at FoodFacts studied all the market information available and determined that consumers aged 30 to 45 who love spicy cuisine were most interested in the proposed restaurant. In examining the restaurant environment, FoodFacts researchers found the west side of the city offered the best options for opening the restaurant. Jambulingham was told the biggest obstacle in opening the restaurant related to obtaining the necessary permits from the city and state. Refer to Indian Restaurant. The success of Jambulingham's restaurant is most closely related to:
answer
Increased multiculturalism is the most promising trend for Jambulingham.
question
Which of the following is NOT a demographic characteristic of a population?
answer
values
question
Girls between the ages of 8 and 14 are one of the growing markets for high-end shoe manufacturers. But doctors are finding that many of these girls are developing grown-up foot problems that once only affected women over 50. These girls who are experiencing problems because they wanted to be fashionable are:
answer
tweens
question
Advanced Base Camp, Black Diamond Equipment, and Misty Mountain are all marketers of ropes, carabiners, climbing holds, harnesses, helmets, and ice gear as well as other equipment needed for rock climbing. They are _____ factors in each other's external environments.
answer
The competitive environment encompasses the competition a firm must face.
question
Consider a southern town where almost half the residents are African Americans and the rest whites. Nearly all of the residents can trace their ancestors' arrivals in the community back at least four generations. This town is an example of a:
answer
multicultural society
question
Every night Universal Studios Japan hosts a fireworks display. The theme park recently came under government investigation when allegations were made that the park was detonating more than 50 pounds of explosives in its nightly fireworks displays. (Under Japanese law, no more than 50 pounds can be located at one site at the same time.) Discovering a way to produce grand fireworks displays with smaller amounts of explosives would require:
answer
Applied research attempts to develop new or improved products.
question
Jack Gomez purchased a pressure cooker. The first time Gomez used the cooker, it exploded. The hot liquid contents burned 30 percent of his body. He has determined the incident was the result of a poorly designed steam regulator, and he would like to lodge a complaint about the cooker's deficiency. To which federal agency should he complain?
answer
The sole purpose of the Consumer Product Safety Commission is to protect the health and safety of consumers in and around their homes. The commission has the power to prescribe mandatory safety standards for almost all products consumers use.
question
You are a marketing consultant to a firm who would like to target members of Generation X. Your advice is for it to:
answer
develop a personal service that will appeal to these time-poor consumers
question
Dateline NBC and GM In their desire to boost ratings, television news programs have done just about anything. One famous example is the Dateline NBC segment about General Motors' 1973-1987 pickup trucks, which was entitled "Waiting to Explode?" The 15-minute segment contained a short, dramatic portion that featured two side-impact tests that NBC had run to purportedly demonstrate what could happen when the GM pickup trucks were struck in the side. GM sued NBC alleging defamation and damage to its reputation. GM argued that the Dateline segment was an unscientific demonstration, was inappropriate, and did not support the position that GM's trucks were defective. NBC admitted that the crash was rigged and apologized to GM and the Dateline viewers. Refer to Dateline NBC and GM. NBC executives have to be concerned with the long-range welfare of the network and its relationships with viewers. This concern is called:
answer
Corporate social responsibility is the concern of business for social welfare. This concern is demonstrated by managers considering the long-range best interests of the company and its relationship to the society within which it operates.
question
Japanese law prohibits the storage of more than 50 pounds of explosive at any single site in the nation. Every night Universal Studios Japan hosts a fireworks display. The theme park recently came under government investigation when allegations were made that the park was detonating more than 50 pounds of explosives in its nightly fireworks displays. If the allegations are true, then Universal Studios Japan is not operating at a(n) _____ responsibility level.
answer
legal
question
_____ is a governmental body that has the power to prescribe mandatory safety standards for almost all products consumers use.
answer
Consumer Product Safety Commission
question
Virtual Impregnation Kristen Clingan's boyfriend had never even mentioned marriage when she received an e-mail announcing her boyfriend had e-impregnated her. The e-mail from www.bunintheoven.com included a positive pregnancy "test" and was followed by a half dozen subsequent messages, including the audio file of the baby's heartbeat and the ultrasound image. The whole process took three months and cost $29.95. At the end of the virtual pregnancy, she received a mug bearing the newborn's photograph. Virtual impregnation is the brainchild of Adam Corsi. He sees the virtual impregnation as a good conversation starter for topics that may not have been broached by a couple before. Refer to Virtual Impregnation. Describing couples that participate in a virtual pregnancy as professionals between the ages of 25 to 34 who earn at least $50,000 annual income uses _____ characteristics.
answer
Vital statistics such as age and income are demographic characteristics.
question
Donna Lassiter is a college teacher in Georgia. She is also a rock climbing expert, a foster parent, and an accomplished violinist. Her other interests include glass blowing, gourmet cooking, and classic movies. Marketers would categorize Lassiter as:
answer
having a component lifestyle
question
Many consumers thought that the promise in Blockbuster's commercials of, "The end of late fees" was an example of deceptive advertising. In actuality, there was no late fee when you kept a movie a few extra days, but if you didn't return the movie within 7 days, you were forced to buy it at the current retail price. The movie you "purchased" could still be returned within 30 days for "a restocking fee plus applicable taxes." After that, the movie was permanently yours. To which organization should the consumers who thought this promotion was misleading complain?
answer
Federal Trade Commission
question
Pacific Gas and Electric (PG&E) Company has donated almost $300,000 to 58 local governments and community-based organizations for local economic development projects. Recipients of these grants include the San Benito County Economic Development Corporation's Business Outreach Program, the San Jose Conservation Corps' Hennessy Place Affordable Single-Family Housing Project, and Mariposa County's Business Development Training Program. This sort of donation indicates PG&E was operating at a(n) _____ responsibility level.
answer
By supporting local economic development projects, PG&E was being a good corporate citizen.
question
China's new 5 percent tax on disposable wooden chopsticks, reflecting concerns about deforestation, has been praised by environmentalists. The move is hitting hard at the Japanese who consumer 25 billion sets of wooden chopsticks annually. Almost all of the chopsticks used in Japan come from China. The price of wooden chopsticks in Japan has increased by almost 50 percent. The price increase influences which factor of the external environment of restaurant owners in Japan?
answer
economic
question
Kristen Clingan's boyfriend had never even mentioned marriage when she received an e-mail announcing her boyfriend had e-impregnated her. The e-mail from www.bunintheoven.com included a positive pregnancy "test" and was followed by a half dozen subsequent messages, including the audio file of the baby's heartbeat and the ultrasound image. The whole process took three months and cost $29.95. At the end of the virtual pregnancy, she received a mug bearing the newborn's photograph. Virtual impregnation is the brainchild of Adam Corsi. He sees the virtual impregnation as a good conversation starter for topics that may not have been broached by a couple before. Refer to Virtual Impregnation. Virtual Impregnation is designed for people who are in long-term relationships that seem to be either evolving slowly or not at all. This group represents the company's:
answer
target market
question
_____ has been described as a method for preserving a "cultural mosaic" of separate but equally sized ethnic groups and is contrasted to a "melting pot" that mixes them. This has also been described as the "salad bowl" model.
answer
Selected Answer: -incorrect Multiculturalism Response Feedback: Multiculturalism occurs when all major ethnic groups in an area are roughly equally represented.
question
Indian Restaurant Thani Jambulingham wants to open a restaurant that features the finest in Indian and Middle Eastern delicacies. To determine the feasibility of his restaurant, he hired FoodFacts marketing research consultants. The experts at FoodFacts studied all the market information available and determined that consumers aged 30 to 45 who love spicy cuisine were most interested in the proposed restaurant. In examining the restaurant environment, FoodFacts researchers found the west side of the city offered the best options for opening the restaurant. Jambulingham was told the biggest obstacle in opening the restaurant related to obtaining the necessary permits from the city and state. Refer to Indian Restaurant. The group of consumers identified by FoodFacts as most likely to visit the new restaurant is called a:
answer
target market
question
Thani Jambulingham wants to open a restaurant that features the finest in Indian and Middle Eastern delicacies. To determine the feasibility of his restaurant, he hired FoodFacts marketing research consultants. The experts at FoodFacts studied all the market information available and determined that consumers aged 30 to 45 who love spicy cuisine were most interested in the proposed restaurant. In examining the restaurant environment, FoodFacts researchers found the west side of the city offered the best options for opening the restaurant. Jambulingham was told the biggest obstacle in opening the restaurant related to obtaining the necessary permits from the city and state. Refer to Indian Restaurant. Describing the market for Jambulingham 's new restaurant in terms of ages of the members of its target market is referring to _____ characteristics.
answer
demographic
question
Pacific Gas and Electric (PG&E) Company has donated almost $300,000 to 58 local governments and community-based organizations for local economic development projects. Recipients of these grants include the San Benito County Economic Development Corporation's Business Outreach Program, the San Jose Conservation Corps' Hennessy Place Affordable Single-Family Housing Project, and Mariposa County's Business Development Training Program. This sort of donation indicates PG&E was operating at a(n) _____ responsibility level.
answer
philanthropic
question
The external environment is a strong influence on a target market and can be a source of _____ for the marketing manager.
answer
opportunities and threats
question
NSTAR Gas & Electric Company in Boston provides continuing financial support for an injury prevention program run by the Children's Hospital Boston. This funding is an example of:
answer
Selected Answer:incorrect- ethical conveyance Feedback: Corporate social responsibility is a business's concern for society's welfare, in this case an injury prevention program.
question
Which of the following statements about the theory of sustainability is true?
answer
Sustainability is the idea that socially responsible companies will outperform their peers when they focus on the world's problems as marketing opportunities.
question
Virtual Impregnation Kristen Clingan's boyfriend had never even mentioned marriage when she received an e-mail announcing her boyfriend had e-impregnated her. The e-mail from www.bunintheoven.com included a positive pregnancy "test" and was followed by a half dozen subsequent messages, including the audio file of the baby's heartbeat and the ultrasound image. The whole process took three months and cost $29.95. At the end of the virtual pregnancy, she received a mug bearing the newborn's photograph. Virtual impregnation is the brainchild of Adam Corsi. He sees the virtual impregnation as a good conversation starter for topics that may not have been broached by a couple before. Refer to Virtual Impregnation. Describing couples that participate in a virtual pregnancy as professionals between the ages of 25 to 34 who earn at least $50,000 annual income uses _____ characteristics.
answer
demographic
question
Sometimes the Federal Trade Commission (FTC) will require an advertiser to include in its advertisements additional information about the products being promoted. This is to clarify past statements the FTC believes were misleading or unfairly presented to consumers. This practice is called:
answer
See Exhibit 3.7.
question
Some consumers accused Juno, an Internet service provider, of making it "unreasonably difficult for them to cancel its 'free' trial period for its Premium Internet Service." The Internet service provider failed to notify customers that it would only allow cancellations through a single, unpublished telephone number. Which federal agency would have jurisdiction over this deceptive and misleading advertising?
answer
Federal Trade Commission
question
Cheetera Johnson is a calculating, self-centered salesperson. She never engages in relationship marketing. She looks on any sales situation as a "win-lose" situation, and she believes any legal method she can use is justified when she wins. Johnson is most likely at the _____ stage of ethical development.
answer
preconventional morality
question
A human resources manager is creating a code of ethics for the employees of the retirement home she works for. Which of the following is NOT an ethics principle she should keep in mind as she creates this code?
answer
Principles can deviate from common practices because of the prestigious nature of the facility.
question
Virtual Impregnation Kristen Clingan's boyfriend had never even mentioned marriage when she received an e-mail announcing her boyfriend had e-impregnated her. The e-mail from www.bunintheoven.com included a positive pregnancy "test" and was followed by a half dozen subsequent messages, including the audio file of the baby's heartbeat and the ultrasound image. The whole process took three months and cost $29.95. At the end of the virtual pregnancy, she received a mug bearing the newborn's photograph. Virtual impregnation is the brainchild of Adam Corsi. He sees the virtual impregnation as a good conversation starter for topics that may not have been broached by a couple before. Refer to Virtual Impregnation. Innovations in the _____ environment are most responsible for the success of Corsi's Web site.
answer
technological
question
When the Federal Trade Commission (FTC) uses the term "restitution," it means:
answer
refunds must be made to consumers who were misled by deceptive advertising
question
The newest Coca-Cola vending machines have interactive screens that run advertisements and allow users to obtain free photos of themselves and ringtones after they have bought a drink. The reason for the introduction of this new style vending machine is to "allow the company to interact more directly with its digital-age customers." Around the world, Coke and junk food, in general, are facing television advertising bans. By developing this machine, Coke has engaged in _____ by modifying its external environment through the use of technology.
answer
environmental management
question
If you were to ask most Americans what they most desired to make their life easier, a surprising number of them will say more time. This perception of "time poverty" has led to the use of high-tech communications everywhere. It is almost as if there are no boundaries between work and the rest of our lives. This feeling that there are not enough hours in a day is an example of a(n) _____ factor that has strongly influenced the marketing environment.
answer
social
question
When the Federal Trade Commission (FTC) uses the term "restitution," it means:
answer
refunds must be made to consumers who were misled by deceptive advertising
question
_____ has been described as a method for preserving a "cultural mosaic" of separate but equally sized ethnic groups and is contrasted to a "melting pot" that mixes them. This has also been described as the "salad bowl" model.
answer
Market aggregation
question
Shabby Chic fashion boutique has responded to economic trends by placing an emphasis on improving the quality of merchandise it offers, improving customer service, and reducing its cost of goods sold. Shabby Chic is apparently dealing with which level of economic activity?
answer
recession
question
The _____ Act requires large companies to notify the government of their intent to merge.
answer
Hart-Scott-Rodino
question
What is apparently the most difficult external variable for marketing managers to forecast, influence, or integrate into marketing plans?
answer
social factors
question
Girls between the ages of 8 and 15 are one of the growing markets for high-end shoe manufacturers, and podiatrists say the trend is leading to many stylish young girls with grown-up foot problems. Shoe manufacturers who develop and market adult-styled shoes to this group are not operating at a(n) _____ responsibility level.
answer
ethical
question
Domino's Pizza is offering racing fans a chance to earn points toward NASCAR-branded merchandise via the NASCAR RacePoints loyalty program. Consumers who buy $20 worth of Domino's Pizza will receive 100 NASCAR RacePoints. Consumers save their box receipt and mail in their points slip. NASCAR RacePoints will be credited to members' accounts. Racing fans can rack up points to earn NASCAR merchandise, including apparel and hats or one-of-a-kind experiences, such as driving a real racecar. A(n) _____ will occur when a NASCAR fan trades in his or her points for a mug autographed by a favorite driver.
answer
exchange
question
As recently as twenty years ago circuses came to town with tents, animals, clowns, and other performers. An advance man arrived about two weeks before the circus actually arrived, covered the community with posters, and gave out free tickets to schoolchildren. If the advance man had done a good job, when the circus arrived and opened its tent doors, three hundred to six hundred people would fill its seats. When the largest circus organizations merged, the newly formed Ringling Bros. and Barnum & Bailey's Greatest Show on Earth began performing in 4,000-seat arenas. Attendance, however, has stagnated in recent years. People have stopped going to the circus because they miss the circus tent and the close intimate atmosphere it created. The newest thing in circuses is a return to the tent atmosphere with an emphasis on the types of entertainment that were popular years ago. Antique circus wagons, calliope music, and cotton candy are replacing the exotic animals and the prima donna performers. To satisfy the needs of this new audience, the tent circus now sells lattes and wine. Refer to Circuses. One of the tent venues is called Barnum's Kaleidoscape, and it is in a permanent location with the hopes that people who see the show will want to return and see it again as well as bring their friends and relatives to the production. Which of the following techniques would most likely advance this strategy of referrals and repeat business?
answer
relationship marketing
question
There is a quandary facing the timber industry. There is no effective way to prove the legality of wood from places like Indonesia, where as much as 80 percent is cut illegally. Retailers like The Home Depot do not want to sell timber from illegally logged forests even though the demand is great for timber from rain forests. To prove an interest in preserving rain forests, two Indonesian logging companies have developed a bar coding system, which proves the timber was legally acquired. This focus on customers' needs indicates a _____ orientation.
answer
market
question
A problem facing the timber industry is the absence of any effective way to prove that rain forest timber was legally harvested. In places like Indonesia as much as 80 percent of timber available for sale was illegally cut. Companies like The Home Depot do not want to sell timber from illegally logged forests even though the demand is great for timber from rain forests. Which of the following conditions required for an exchange to occur is missing when a company tries to sell illegally acquired logs to The Home Depot?
answer
For an exchange to occur, two or more parties must be involved. Both parties are free to accept or reject the exchange. If The Home Depot believes the timber was illegally gotten, then it will not want to deal with the loggers.
question
Tyler Dunoki works for Star Creek, a new start-up Australian wine producing company. He has been asked to submit recommendations for marketing objectives for the upcoming strategic planning period. Which of the following marketing objectives would be most appropriate for the company?
answer
Selected Answer: incorrect- Star Creek seeks to sell more bottles of wine than its competitors during the next strategic planning period. Response Feedback: Marketing objectives should be consistent with organization objectives, should be measurable, and should specify a time frame. Objectives also should be carefully specified. For a new company to become number one in the marketplace in a single year isn't reasonable.
question
Compass is the name of a United Kingdom-based catering company that has developed a marketing plan designed to make it the largest caterer in China within the next two decades. As part of its marketing _____, it has already begun serving meals on trains that run between Shanghai and Beijing.
answer
Selected Answer: incorrect- strategy Response Feedback: Implementation is the process that turns marketing plans into action assignments.
question
Enzo Fierro has just finished constructing the marketing plan for a new line of low-carb salad dressings. After selecting his target market and specifying the elements of the marketing mix, he next should:
answer
Selected Answer: incorrect- set marketing objectives that are realistic and in a time frame Response Feedback: After construction of a marketing plan, implementation takes place, including gaining compliance from employees.
question
Flexcar is a car rental agency that is geared for people who take mass transit or carpool to work but occasionally need to run errands, visit the doctor, or check on a sick child during the work day. The preceding statement describes the _____ for Flexcar.
answer
target market
question
John R. Harland Company is best known for printing checks. Its Financial Solutions division develops software for mortgage companies, a growing industry. This division is currently not producing at the desired level of profitability, but Harland plans to turn the division into a success by acquiring other companies that develop similar software. Harland would be engaging in a _____ strategy.
answer
building
