BUS 346 Quiz 1 – Flashcards
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When a T-shirt manufacturer states, "We only sell it in black because that way we can buy plenty of black fabric and run our plant efficiently," its statement reflects the views that were popular in which era of the evolution of marketing? A. production-oriented B. sales-oriented C. market-oriented D. value-based marketing E. economics-oriented
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A
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Xavier is analyzing potential market segments. He should carefully seek potential customers who have both an interest in his products and A. a thorough knowledge of his brand messages. B. the ability to buy them. C. knowledge of competing products. D. the ability to negotiate discounts. E. are removed from traditional marketing alternatives.
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B
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The four Ps make up the marketing mix, which is the __________ set of activities that the firm uses to respond to the wants and needs of its target markets. A. unpredictable B. external C. internal D. controllable E. global
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D
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The basic difference between a good and a service is that a good A. provides intangible benefits. B. can be physically touched. C. is always less expensive than a corresponding service. D. generates greater interest among consumers. E. is more quickly forgotten by consumers.
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B
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Marketers must determine the price of a product carefully, based on potential buyers' beliefs about A. its value. B. the environment. C. the cost to manufacture the product. D. the economic outlook. E. the product's new advertising campaign.
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A
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Some discount stores put products in large bins and let consumers hunt and find bargains. The price these consumers pay includes A. only the actual price they pay at the register. B. the value of their time and energy. C. the excitement they experience in finding an item they desire. D. the savings to the store of not having to display the products neatly on shelves. E. the time the product was full price and didn't sell.
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B
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Henriette offers financial counseling and management on a fee-only basis. She has found that different customers are willing to pay different rates for her services. This shows that her pricing decisions should depend primarily on A. choosing an average price that she will charge all her clients. B. changes in technology allowing consumers to manage their own affairs. C. how different customers perceive the value of her services. D. changes in the economy. E. how much her competitors charge for similar services.
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C
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Marketing efforts designed to get the product or service to the right customer, when that customer wants it, are called A. supply chain management. B. a transactional orientation. C. wholesaling. D. value cocreation. E. endless chain marketing.
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A
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Marketers involved in value-oriented marketing are constantly balancing A. promotional effectiveness with ethical advertising standards. B. the problem of price maximization with cost efficiency. C. customer benefits with costs of their offerings. D. the desire to achieve with the need for a stable source of supply. E. the goal of efficiency with the price charged by competitors.
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C
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__________ is communication by a marketer that informs, persuades, or reminds potential customers about a product. A. Pricing B. Promotion C. Placement D. A relational orientation E. Value co-creation
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B
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Effective promotion enhances a product or service's A. supply chain management system. B. wholesaling capabilities. C. perceived value. D. design features. E. trialability.
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C
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The evolution of marketing progressed along the following continuum: A. sales, marketing, value-based marketing, production. B. marketing, value-based marketing, production, sales. C. value-based marketing, production, sales, marketing. D. production, sales, marketing, value-based marketing. E. sales, value-based marketing, marketing, production.
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D
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The idea that a good product will sell itself is associated with the __________ era of marketing. A. production-oriented B. sales-oriented C. market-oriented D. value-based marketing E. retailing-oriented
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A
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Henry Ford's statement, "Customers can have any color they want so long as it's black," typified the __________ era of marketing. A. production-oriented B. sales-oriented C. market-oriented D. value-based marketing E. retailing-oriented
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A
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Melanie works for a small computer software company. Her boss is constantly improving its products but neglecting customers, billing, and promoting the company. Her boss is probably stuck in the __________ era of marketing. A. production-oriented B. sales-oriented C. market-oriented D. value-based marketing E. retailing-oriented
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A
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During the __________ era, firms had excess capacity and used personal selling and advertising to generate customers. A. production-oriented B. sales-oriented C. market-oriented D. value-based marketing E. retailing-oriented
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B
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The prevailing marketing strategy of the __________ era was to find customers for inventories that went unsold. A. production-oriented B. sales-oriented C. market-oriented D. value-based marketing E. retailing-oriented
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B
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Near the end of the model year, Move-Them-Out automobile dealership had an unusually high inventory level. The manager increased her advertising spending and gave extra incentives to its salespeople. Move-Them-Out operates as if it were in the __________ era. A. production-oriented B. sales-oriented C. market-oriented D. value-based marketing E. retailing-oriented
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B
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Many U.S. companies first discovered marketing during the __________ era. A. production-oriented B. sales-oriented C. market-oriented D. value-based marketing E. retailing-oriented
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C
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During the market-oriented era, A. a good product would sell itself. B. the customer was king. C. marketing was more important than production. D. advertising and personal selling were emphasized to make the sale. E. firms focused on value.
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B
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During the __________ era, manufacturers and retailers began to focus on what consumers wanted and needed before they designed, made, or attempted to sell their products. A. production-oriented B. sales-oriented C. market-oriented D. value-based marketing E. retailing-oriented
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C
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During the __________ era, manufacturers and retailers recognized they needed to give their customers greater value than their competitors did. A. production-oriented B. sales-oriented C. market-oriented D. value-based marketing E. retailing-oriented
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D
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Trey sells consumer electronics. He knows his customers weigh the costs versus the benefits associated with the different options available. He decides which products to offer and what prices to charge based on the way his customers think. Trey operates as if he were in the __________ era. A. production-oriented B. sales-oriented C. market-oriented D. value-based marketing E. retailing-oriented
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D
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Serena studies her customer profiles, market research data, complaints, and other information, attempting to better understand what her customers want. Serena operates in the __________ era of marketing. A. production-oriented B. sales-oriented C. market-oriented D. value-based E. retailing-oriented
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D
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Christie has just started with a travel agency, and she has been offering clients and prospective clients a range of packaged tours. She is concerned, because the commissions she is earning on her sales are lower than she had hoped. Her colleague Peter, who has been with the agency for several years, is having a great deal of success by working closely with the clients, seeking their ideas, and building customized tour packages for each one based on their suggestions. Peter's approach is based on A. transaction-oriented marketing. B. premium pricing. C. his seniority at the firm. D. special incentives from tour operators. E. value co-creation.
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E
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To become a more value-driven organization, Pokrah University is holding regular coffee-hour discussions with its students and surveying its graduates regarding students' educational needs and desires. Pokrah University is becoming more value driven through A. sharing information across the organization. B. balancing its customers' benefits and costs. C. evaluating strategic competitive partnerships. D. building relationships with customers. E. keeping the faculty members happy.
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D
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One of the benefits of value-driven marketing is that attention to customer needs and wants will likely result in A. higher prices than the market leader charges. B. increased competition. C. long-term relationships. D. strong connections among competing firms in the marketplace. E. lower prices.
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C
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Value-driven firms constantly measure the __________ that customers perceive, compared to the prices of their offerings. A. information B. benefits C. relationships D. rebates E. merchandise
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B
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Even though they operate from out-of-the-way airports and offer few extra services, discount, no-frill airlines like Ryanair and EasyJet have been successful. Consumers obviously consider A. the schedules these airlines offer to be the most convenient in the industry. B. the long-term relationships established by these airlines to be a critical benefit. C. the prices to be slightly lower, but not low enough to have much influence. D. the benefit of lower prices to be greater than the cost of reduced services and less convenience. E. the major airlines to be worthless.
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D
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Marketing was once an afterthought to A. accounting. B. economics. C. production. D. finance. E. none of these—marketing was never an afterthought.
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C
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Marketing provides the critical function of __________ when companies expand globally. A. managing production efficiency B. understanding customers C. managing personnel D. forecasting economic growth E. evaluating government stability
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B
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Traditionally, marketing activities have been divided into product, price, place, and promotion. Select the term that best describes the four Ps. A. marketing mix B. marketing channel C. marketing plan D. marketing era E. marketing implementation
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A
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The primary purpose of the __________ plan is to specify the marketing activities for a specific time. A. marketing B. business C. strategic D. organizational E. resource
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A
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The activity, set of institutions, and process for creating, capturing, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large is called A. marketing. B. marketing research. C. market share analysis. D. market segmentation. E. market positioning.
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A
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At one point in the evolution of marketing, the United States entered a buyer's market and the customer became king. Which era is being described? A. market-oriented B. sales-oriented C. production-oriented D. value-based marketing E. economics-oriented
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A
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Marketing channel management is related to which of the four Ps? A. product B. price C. place D. promotion E. production
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C
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In the broadest terms, the marketplace refers to A. wholesale and retail environments. B. brick-and-mortar stores and the Internet. C. the four Ps. D. channels that are accessible to a given customer. E. the world of trade.
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E
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Which element of the marketing mix is most relevant to the activity "capturing value"? A. promotion B. purchasing C. product D. price E. place
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D
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Which element of the marketing mix is most relevant to the activity "delivering value"? A. promotion B. purchasing C. product D. price E. place
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E
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Which element of the marketing mix is most relevant to the activity "creating value"? A. promotion B. purchasing C. product D. price E. place
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C
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Which marketing activity is most directly served by the promotion element of the marketing mix? A. communicating value B. creating value C. capturing value D. delivering value E. producing value
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A
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Which of the following is NOT one of the four overarching strategies to create and deliver value and to develop sustainable competitive advantages? A. locational excellence B. customer excellence C. operational excellence D. product excellence E. planning excellence
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E
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Carla has been directed by her regional marketing manager to cut prices on seasonal items, place an ad in the local paper, and tell distributors to reduce deliveries for the next month. Which step of the strategic marketing planning process is Carla engaged in? A. evaluate performance B. define the business mission C. situation analysis D. implement marketing mix and resources E. identify and evaluate opportunities
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D
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When conducting a SWOT analysis, in what phase of the strategic marketing process is an organization presently engaged? A. planning B. implementation C. control D. segmentation E. metrics
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A
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As part of her company's SWOT analysis, Valerie is assessing the company's internal environment, including A. competition. B. the economy. C. strengths and weaknesses. D. demographics. E. opportunities and threats.
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C
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Samantha is charged with assessing her company's external environment as part of a SWOT analysis. Samantha will study her company's A. strengths and weaknesses. B. sales history. C. pension plan. D. product specifications. E. opportunities and threats.
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E
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For U.S. businesses with strong export capabilities, expansion of U.S. trade agreements with other countries creates A. weaknesses. B. opportunities. C. strengths. D. threats. E. strategic plans.
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B
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In 2006, Ford Motor Company announced it would severely cut back automobile production. For parts companies supplying Ford Motor, this represented a(n) A. weakness. B. opportunity. C. strength. D. threat. E. strategic plan.
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D
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Lionel is asked to conduct an STP analysis for his firm. The first step he should perform in this analysis is to A. develop a business mission statement. B. choose the best target markets. C. reposition existing segments. D. divide the marketplace into subgroups. E. conduct a SWOT analysis.
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D
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After identifying various market segments that her company could pursue, Lisa evaluated each segment's attractiveness based on size, income, and accessibility. Lisa was involved in A. target marketing. B. situation analysis. C. diversification. D. positioning. E. market penetration estimation.
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A
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__________ involves the process of defining the marketing mix variables so that target customers have a clear, distinctive understanding of what a product does or represents in comparison with competing products. A. Targeting B. Market segmentation C. A sustainable competitive advantage D. Positioning E. A customer excellence strategy
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D
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When discussing the marketing planning process, STP stands for A. strategies, tactics, and plans. B. strategize, target, and promote. C. segmentation, targeting, and positioning. D. situation analysis, trend spotting, and planning. E. sustaining, trending, and positioning.
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C
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In value-based marketing, promotion communicates the ________ to customers through a variety of media. A. targeted solution B. operational excellence strategy C. value proposition D. relative market value E. target market definition
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C
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Craig sees that his company's quarterly sales and profits are significantly above projections and says, "That's great. Let's keep doing what we've been doing." Craig is ignoring the __________ step of the marketing planning process. A. evaluate performance B. define the business mission C. situation analysis D. implement marketing mix and resources E. identify and evaluate opportunities
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A
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The first objective in the evaluate performance phase of the marketing planning process is to A. determine whether to raise or lower prices. B. adjust advertising allocations. C. find ways to cut costs. D. review implementation programs and results using metrics. E. consider changing the target market.
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D
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Heather has been assessing a number of her firm's products using, the Boston Consulting Group approach to portfolio analysis. She has been trying to assess the strength in a particular market and is looking at the sales of the product and the overall market as well as the sales of competitors. Heather is trying to determine: A. the product's relative market share. B. the market growth rate. C. a source of competitive advantage. D. the impact of population shifts on future demand. E. cash equivalent values for each product.
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A
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To determine how attractive a particular market is, using the BCG portfolio analysis, __________________ is established as one axis. A. competitive intensity B. sales dollars C. market size D. market growth rate E. market profit potential
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D
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In BCG portfolio analysis, products in low-growth markets that have received heavy investment and now have excess funds available to support other products are called A. stars. B. cash cows. C. question marks. D. dogs. E. anchors.
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B
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Fernando was thrilled to find out that his company had just decided to invest a great deal of money in the product he was managing. He knows that even with its recent high rate of growth and the fact that it dominates its market, he would need more money to establish it firmly. Using the BCG portfolio analysis, his product would be classified as a(n) A. star. B. cash cow. C. question mark. D. dog. E. anchor.
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A
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The strategic marketing planning process A. is a five-step process that should always be completed in order. B. is frequently used in reverse. C. begins with establishing specific, measurable outcomes. D. is not always sequential. E. forces marketing managers to think rationally.
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D
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Which of the following is the third step in the marketing planning process? A. define the business mission B. identify opportunities C. evaluate using a matrix D. implement marketing mix and allocate resources E. situation analysis
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B
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In mid-2010, Hewlett-Packard Company (HP) acquired Palm Computing, Inc., a manufacturer of personal devices and smart phones. Before deciding to acquire the company, strategic planners at HP spent time thinking about how Palm and HP would fit together, and how the acquisition might change HP's core goals and objectives. The strategic planners were engaged in the ____________ step of the marketing planning process. A. situation analysis B. implement marketing mix and allocate resources C. identify and evaluate opportunities D. evaluate performance E. define the business mission
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E
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After defining the business mission, what should a firm do next to develop a marketing plan? A. Conduct an STP analysis. B. Perform a situation analysis. C. Develop a positioning strategy. D. Select a target market. E. Implement the four Ps.
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B
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In a SWOT analysis, increasing gasoline prices would represent a potential __________ for manufacturers of electric cars. A. weakness B. threat C. opportunity D. operational advantage E. locational advantage
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C
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Over the past few months, Juan and his colleagues have analyzed the current business situation and identified target markets for his firm's personal care products. Finally, they developed the products, prices, distribution and promotion that should appeal to each of those target markets. In doing so, Juan has also identified what he believes is an advantage his competitors cannot match. Juan and his colleagues have been developing A. a business mission statement. B. a strategic vision. C. team-building exercises. D. a marketing strategy. E. competitive assessments.
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D
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Which of the following factors, listed in a situation analysis for a major U.S. auto manufacturer, is the best example of an opportunity? A. The factory that manufactures a new, popular car cannot build enough vehicles to meet the demand, while other factories have excess capacity. B. Recent consumer studies have indicated that Chinese consumers prefer American cars. C. A New York law firm has filed a $10 million class action suit against the company on behalf of car owners whose gas tanks exploded. D. Due to outdated engine technology, the company's cars get lower gas mileage than those of major competitors. E. The company has lower manufacturing costs than its key competitors, allowing it to sell its cars at low prices.
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B
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Which of the following factors, listed in a situation analysis for a major U.S. auto manufacturer, is the best example of a threat? A. The factory that manufactures a new, popular car cannot build enough vehicles to meet the demand, while other factories have excess capacity. B. Recent consumer studies have indicated that Chinese consumers prefer American cars. C. A New York law firm has filed a $10 million class action suit against the company on behalf of car owners whose gas tanks exploded. D. Due to outdated engine technology, the company's cars get lower gas mileage than those of major competitors. E. The company has lower manufacturing costs than its key competitors, allowing it to sell its cars at low prices.
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C
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In its discussion of Nike and adidas, two major athletic shoe manufacturers, the text mentions that Nike has purchased Umbro, a sports brand that has appealed mainly to soccer (European football) enthusiasts in the past. This action suggests that Nike intends to compete head to head with adidas, which got its start designing soccer shoes. On a SWOT analysis for adidas, how should Nike's acquisition of Umbro be categorized? A. Strength B. Opportunity C. Weakness D. Segment E. Threat
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E
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A marketing strategy identifies three things: ________, a related marketing mix, and the bases on which the firm plans to build a sustainable competitive advantage. A. customer value B. a mission statement C. marketing metrics D. a firm's target markets E. a product plan
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D
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During which phase of the marketing planning process does a firm identify and evaluate different opportunities by engaging in segmentation, targeting, and positioning? A. planning phase B. implementation phase C. evaluation phase D. control phase E. strategy phase
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B
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The process of dividing the market into groups of customers with different needs, wants, or characteristics is called A. target marketing. B. market segmentation. C. positioning. D. allocation. E. value capture.
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B
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________ involves the process of defining the marketing mix variables so that target customers have a clear, distinctive, desirable understanding of what the product does or represents in comparison with competing products. A. Target marketing B. Market segmentation C. Market positioning D. Allocation E. Value capture
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C
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A product that is in a high-growth market but has a low market share would be classified as ________ on the BCG matrix. A. latent B. dog C. cash cow D. star E. question mark
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E
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Sally is in the new marketing department of a midsized lawn and garden company. She is working on the first marketing plan the firm has ever used. She has defined the mission and objectives, and she just finished a situation analysis for the firm. The next step is to A. develop an advertising plan to promote the upcoming sales. B. find marketing interns or hire new staff to help with implementation. C. create pro forma financial statements to complete the package. D. identify and evaluate opportunities by conducting segmentation, targeting, and positioning analysis. E. use the Internet, catalogs, and vendor information to draw up a list of new products.
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D
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Segmentation, targeting, and positioning A. are terms that can be used interchangeably in developing marketing plans. B. are part of a firm's marketing strategy. C. should be done simultaneously so synergies can help streamline the effort. D. are part of the marketing plan but bear little direct relationship to the marketing mix. E. are optional elements of a marketing plan.
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B
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Alex has found that both commercial and residential real estate buyers respond positively to his marketing communication message. Alex has identified __________ that respond similarly to his marketing efforts. A. mass customization consumers B. geographic segments C. market segments D. self-concept customers E. geodemographic segments
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C
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For each target market, General Imaging Corporation, a manufacturer of imaging equipment, will engage in positioning, adjusting its marketing mix variables to give customers A. a more flexible supply chain strategy. B. a perceptual map of the imaging landscape. C. more product features than the competition offers. D. lower prices than the competition offers. E. a clear, distinctive, and desirable understanding of its products relative to competing products.
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E
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The first step in the STP process is to A. identify the segmentation methods to be used. B. produce a list of strengths and weaknesses of the firm's past marketing strategies. C. clearly articulate the firm's vision or marketing strategy objectives. D. select target markets. E. develop a marketing mix, so that an appropriate segment can later be identified.
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C
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One of the reasons marketers use loyalty segmentation is A. the high cost of finding new customers. B. government tax incentives. C. accounting difficulties associated with identifying new customers. D. rapid population increases. E. the failure of micromarketing as a workable strategy.
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A
