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• 1. In marketing, an offering refers to

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

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• 2. Business firm refers to

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

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

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Environmental scanning identifies and interprets potential trends.

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• 4. Profits refer to

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the money left over after a business firm's total expenses are subtracted from its total revenues and is the reward for the risk it undertakes in marketing its offerings.

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• 5. Which statement best describes the most significant difference between a business firm and a nonprofit organization?

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Both serve customers, but business firms seek a profit while nonprofit organizations do not

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

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Strategy

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

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sustainable development

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

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Corporate

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

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Chief marketing officer

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• 10. A subsidiary, division, or unit of an organization that directs overall strategy for the organization that markets a set of related products to a clearly defined group of customers is referred to as a

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strategic business unit.

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

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

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

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Functional level

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

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

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

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Cross-Functional Team

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

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anticipate future events and respond quickly and effectively.

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

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Business

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

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Foundation

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

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Core values, mission, and organizational culture.

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

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Core Values

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

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Stakeholder

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

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Mission Statement

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

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Mission Statement

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

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a social element to reflect moral or ethical ideals.

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

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Organizational Culture

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

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Defined their business too narrowly

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

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

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

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

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• 28. The ratio of sales revenue of the firm to the total sales revenue of all firms in the industry, including the firm itself, is referred to as

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Market Share

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

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quality

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• 30. Marketing dashboard refers to

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

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• 31. Marketing metric refers to

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

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• 32. The primary purpose of a marketing metric is to

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Measure the quantitative value of a marketing activity

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• 33. Marketing plan refers to

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a road map for the marketing activities of an organization for a specified future time period, such as one year or five years.

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• 34. A road map for the marketing activities of an organization for a specified future time period, such as one year or five years is referred to as a __________.

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Marketing Plan

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

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Situation Analysis

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

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SWOT analysis

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

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Performing a SWOT analysis

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

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Threat; Strength

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

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

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

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Market Segmentation

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• 41. Market segmentation refers to

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

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

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Let's put more aggressive salespeople in the field.

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

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Competency

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

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Competitive Advantage

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

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Lands' End's competition

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

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Business Portfolio Analysis

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

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As if each were a separate investment

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

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Stars

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

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Dogs

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

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Cash Cow

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

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Question marks; stars

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

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Star; Dog

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

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the advent of digital photography popularity

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

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

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

answer

strategic marketing process

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

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Market Penetration

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

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

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• 62. The first step in the strategic marketing process is

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Situation Analysis

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• 63. The second phase of the strategic marketing process is the

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Implementation Phase

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

answer

Implementation Phase

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

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Executing the marketing program designed in the planning phase

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

answer

A specified target market and a marketing program to reach it

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• 67. Marketing strategy refers to

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

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• 68. The detailed day-to-day operational decisions essential to the overall success of marketing strategies are referred to as __________.

answer

Marketing tactics

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

answer

identifying deviations from goals and acting on the deviations.

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• 70. Planning gap refers to

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

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

answer

the planning Gap.

question

• 72. After examining a planning gap, firms typically attempt to

answer

Exploit a positive deviation and correct a negative deviation.

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