Marketing Chapters One, Two and Four. – Flashcards
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Marketers might wish to sell their products to everyone, but it is not practical to do so.
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True.
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Jami sells construction equipment. Whenever she calls on her building contractor customers, she asks if they are having any problems. In doing so, Jami is addressing which of the following core aspects of marketing?
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Satisfying customers needs and wants.
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Whenever Valerie has a new massage therapy customer, she invites the person to be on her e-mail distribution list. In the process, in addition to exchanging her massage therapy service for payment, Valerie is gathering:
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Information.
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The fundamental goal of marketers when creating goods, services, or combinations of both, is to:
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Create value.
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Brian is struggling with the choice of publishing his new book, "How to cook Polish Barbeque" as an e-book or a paperback. Brian is addressing which core marketing aspect?
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Making product decisions.
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The basic difference between a good and a service is that a good:
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Can be physically touched.
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__________ is communication by a marketer that informs, persuades, or reminds potential customers about a product.
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Promotion.
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The goal of promotion is to __________ potential buyers about a product or service.
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All of these.
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Local television advertising often includes ads for automobile dealerships using actors trying to create a sense of excitement and urgency among consumers. These ads are attempting to achieve the promotional goal of __________ potential buyers.
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Persuading.
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Effective promotion enhances a product or service's:
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Perceived value.
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By promoting perfume based on youth, style, and sex appeal, Calvin Klein is attempting to:
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Increase the perceived value of their products.
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As use of the Internet took off, car manufacturers were tempted to sell directly to consumers, but decided instead to continue to sell through their existing dealer networks. The car manufacturers considered switching from __________ to __________ marketing.
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B2B;B2C.
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Joseph is about to graduate near the top of his class and has been looking at some forward-thinking firms. He had expected the job market to be tight, but found that some firms were using employment marketing to attract the candidates they want and need. He noticed these firms used all of the following approaches EXCEPT:
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Assuming that the right candidates will learn about the firm and apply for jobs without any encouragement.
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During the __________ era manufacturers and retailers recognized they needed to give their customers greater value than their competitors did.
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Value-based marketing.
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Which of the following is a core aspect of marketing?
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All of these are core aspects of marketing.
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Value-based marketing helps to build long-term customer loyalty.
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True.
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UPS, FedEx, DHL, and other shipping companies support other firms' __________ marketing goals.
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Supply chain management.
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Ann Marie has been working on pricing for the hotel where she works. She knows that business travelers stay at the hotel because it has easy access to the airport, and leisure travelers stay there because it is convenient to the shopping and entertainment districts. She is unsure whether she should raise rates for the business travelers, the leisure travelers, both, or neither. As she works to find the best pricing mix, she'll have to look at the ways these travelers will evaluate the benefits of staying at the hotel. In doing so, Ann Marie will be using:
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Value-based marketing.
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One of the benefits of value-driven marketing is that attention to customer needs and wants will likely result in:
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Long-term loyalties.
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Melinda, a marketing executive, is trying to explain customer relationship management (CRM) to her parents. She explains that CRM is a way of thinking that translates into __________ to identify and build long-term relationships with her customers.
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All of these.
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One of the most important challenges in marketing globally is to:
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Adapt to the local situation but maintain strategy and identity.
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Greenbelt Construction has been a successful small home-building firm for years. The owner pays subcontractors slightly more than the usual rate for different tasks, reducing the company's gross margin. Greenbelt rarely changes subcontractors, has relatively few complaints from home buyers, and is able to get quick responses from subcontractors when buyers do have problems. Greenbelt is engaged in:
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Effective supply chain management.
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A friend of yours comments, "I'm starting my own business. I have a perfect product that no one else can touch, but I have no use for marketing. That's just for the mega-corporations." Which of the following arguments would you NOT use in talking about marketing?
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Marketing isn't essential now, but it will be in a year or two when the product takes off.
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People who initiate, organize, operate and assume the risk of a business venture are called:
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Entrepreneurs.
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When an accounting firm provides an online training module showcasing real-life decision lapses and their negative effect on the company, they are trying to encourage what type of behavior from their employees?
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Ethical.
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Duke's is a surfer-themed restaurant chain in Hawaii. Most of its customers are tourists. In a SWOT analysis for Duke's, the possibility that the recession might cut back on tourism in Hawaii would be considered a Weakness.
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False.
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The marketing planning process always proceeds sequentially through the five steps.
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False.
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The "Implement Marketing Mix" step of the strategic marketing planning process is part of the control phase.
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False.
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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 advantage?
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Planning excellence.
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For many years, Southwest Airlines distinguished itself as the low-cost airline. Now, many other low-cost competitors have entered the market. Similarly, Southwest was one of the first airlines to offer online ticketing. Now, all airlines have online ticketing. These examples suggest that:
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No single strategy is likely to be sufficient to build a sustainable competitive advantage.
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Manufacturers who use just-in-time manufacturing systems coordinate closely with suppliers in order to ensure that materials and supplies arrive just before they are needed in the manufacturing process. While just-in-time systems can offer major advantages in terms of inventory costs, they must be carefully managed. If a firm found that its just-in-time system was badly managed, leading to frequent manufacturing delays due to missing parts, this would represent a __________ in a SWOT analysis.
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Weakness.
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The strategic marketing planning process:
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Is not always sequential.
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Zara is a women's clothing retailer headquartered in Spain, with stores located in many countries. Zara has developed a "quick response" system that allows store merchandise to be adjusted rapidly to fit changing customer preferences. Every aspect of Zara's operation is optimized for this system, making it difficult for competitors like The Gap to duplicate. Zara has established:
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A sustainable competitive advantage.
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Fourteenth National Bank prides itself on offering better service than any of its competitors. If this is accurate, and if customers recognize and value Fourteenth National's superior service, the bank creates and delivers value through:
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Customer excellence.
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Customer retention programs are based on what concept?
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Customer relationships should be viewed from a lifetime value perspective.
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One example of a customer loyalty program is:
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A "frequent diner" card at a restaurant, offering a free appetizer for every $100 in food purchases.
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Which of the following is the best way to build a sustainable competitive advantage using product excellence?
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Positioning the product using a clear, distinctive brand image.
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A competitive advantage based on location is often sustainable because:
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It is not easily duplicated.
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Greta is the marketing director for the Pump-N-Slurp convenience store chain. She recently developed a marketing plan for the firm and presented it to company executives. Which of the following did Greta probably include in Pump-N-Slurp's marketing plan?
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All of these.
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It is not always necessary to go through all the steps in the marketing planning process.
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True.
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A mission statement describes the specific actions a firm will take to achieve its goals.
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False.
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The components of a SWOT analysis are Strengths, Weaknesses, Opportunities and Tactics.
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False.
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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:
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Opportunities and threats.
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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):
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Threat.
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Which of the following is the third step in the strategic marketing planning process?
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Identify and evaluate opportunities.
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STP refers to segmentation, testing, and promotion.
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False.
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Firms are typically more successful when they focus on opportunities that build on their competitors' strengths.
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False.
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Price should be based on the value that the customer perceives.
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True.
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If Starbucks decided to start selling organic meals to corporate eating facilities, it would be pursuing a diversification strategy.
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True.
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When positioning products relative to competitors' offerings, firms typically are most successful when they focus on opportunities:
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That build on their strengths relative to those of their competitors.
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When discussing the marketing planning process, STP stands for:
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Segmentation, targeting, and positioning.
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In value-based marketing, promotion communicates the:
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Value proposition.
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Understanding the causes of performance, regardless of whether that performance exceeded, met, or fell below the firm's goals:
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Enables firms to make appropriate adjustments.
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In most companies, marketing resource allocation decisions are made at the SBU or ___________ level of the firm.
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Product line.
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A ______ growth strategy employs the existing marketing offering to reach new market segments.
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Market development.
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Most banks now have customer relationship software which, when a customer contacts the bank, tells the service representative what types of accounts, loans, and credit cards the customer currently has. Service representatives use this information to sell some of the other services the bank currently offers to these customers. This is a ___________________ growth strategy.
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Market penetration.
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The Apple iPad is the market leader in the new--and fast-growing--tablet computer market. Based on BCG portfolio analysis, how should Apple handle allocating resources to the iPad?
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Apple should be prepared to invest heavily to help the iPad to achieve its maximum potential in the market.
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Brad is reviewing the performance of his franchise sandwich store. As a franchisee, he has access to comparative data from other stores. Brad will likely look at ____________ data for other stores to help him to evaluate his performance.
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All of the above.
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For years, when considering new products, marketers at Celestial Seasonings asked themselves, "What would Stacy think?" Stacy was a fictional character representing 25-50 year old, educated, upper-income women who rarely watched television but did a lot of reading. "Stacy" represented Celestial's primary:
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Target market segment.
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In order to effectively communicate value to target markets, marketers must first:
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Understand their customers.
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The first objective in the Evaluate Performance phase of the marketing planning process is to:
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Review implementation programs and results using metrics.
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Kathy reviews her division's quarterly results and sees that some units exceeded goals while others did not. Next, she will attempt to determine why performance of the different units varied, and whether the variation:
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Was due to factors within or outside the firm's control.
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To determine how attractive a particular market is in using the BCG portfolio analysis, __________________ is established as one axis.
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Market growth rate.
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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):
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Star.
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H&R is a small, local heating and air conditioning business. The area military base is a potential source of growth, and H&R already installs and services the type of equipment the military would require, but it is difficult to get established as a certified government contractor. H&R is considering a ____________ growth strategy.
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Market development.
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Introducing newly developed products or services to a market segment the company is not currently serving is called:
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Diversification.
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Abercrombie & Fitch, a hip clothing retailer, includes a "Share it!" button on its website. This button encourages an Abercrombie customer to post a link to a product page (perhaps showing a new style of jeans) on Facebook or Twitter. Abercrombie & Fitch hopes that the customer's friends (who are probably very much like current customers) will click the link, visit the page, and make purchases. This is an example of a ______ growth strategy.
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Market penetration.
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When firms successfully implement poor strategies (perhaps due to good luck) or do a poor job of implementing good strategies, it can be difficult to:
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Evaluate performance and make adjustments.
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After performing an STP analysis, marketers implement ____________ for each target market.
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All of these.
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The centerpiece of the Marketing Environment Analysis Framework is:
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Consumers.
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Yvonne knows her firm must look at everything they do from a consumer's point of view. One major difficulty is that a consumer's __________ change(s) over time.
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Needs, wants, and abilities to purchase.
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When you register your telephone number with the Do Not Call Registry you are responding to a need for:
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Privacy.
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Firms that provide materials, transportation, advertising, accounting and other goods and services, helping a firm create value for its customers, are called:
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Corporate partners.
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In New England foot-long sandwiches are called "grinders" while in many other parts of the country they are called "subs." This is an example of the impact of:
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Regional culture.
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Generational cohorts are groups of people of the same generation who have similar purchase behavior because they have:
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Shared experiences, and are in the same stage of life.
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Roddy walks away from salespeople who give him the "hard sell." He rarely watches television and spends more time on the Internet. Roddy is most likely to be a member of the __________ generational cohort.
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Generation Y.
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Marketers know that, compared to high school graduates who are working full-time, college students:
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Spend their disposable income differently.
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Marketers should not assume that they can target all Asian consumers in the United States with one strategy because:
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They speak different languages and come from different cultures.
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Marketers in the United States are paying increasing attention to ethnic groups because:
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Approximately 80 percent of all population growth in the next 20 years is expected to come from minority groups.
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Though Asian Americans comprise only 3 percent of the U.S. population, they represent:
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The fastest growing minority population.
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The many demands on consumers today have made it more difficult for marketers to:
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Grab consumers' attention.
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When marketers monitor the economic situation affecting their target markets, they are likely to monitor changes in all of the following EXCEPT:
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Age.
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The __________ Act created the FDA.
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Federal Food and Drug.
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The CAN-SPAM Act of 2003:
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Created penalties for sending misleading commercial email.
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Marcus does not make any impulse purchases and tends to purchase high-quality items from brands known for providing quality products. Marcus has plenty of time to research and identify the best product to buy. Which generational cohort does Marcus belong to?
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Seniors.
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The factors in the immediate marketing environment include the actions of the:
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All of these.
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The center of all marketing efforts is:
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The consumer.
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One of the goals of value-based marketing is:
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To offer greater value than competitors offer.
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Ryan knows that one of the goals of value-based marketing is to provide greater value to consumers than competitors offer. To accomplish this goal, Ryan's firm must look at everything it does:
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From a customer's point of view.
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In the immediate marketing environment, one key factor that affects the consumer is:
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The firm itself.
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Successful firms focus their efforts on satisfying customer needs that:
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Match their core competencies.
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Yuri is considering a new promotional campaign in which he will compare his products to those of his competitors. Before initiating the promotional campaign, Yuri will likely assess his competitors' strengths, weaknesses, and:
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Likely reaction to Yuri's promotional activities.
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Political candidates are notorious for appealing to the different beliefs and values of groups of potential voters in different areas of the country. These politicians are appealing to differences in:
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Regional culture.
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The United States has often been called the "melting pot" society, integrating people from many different cultures into the social fabric of the country. The challenge for marketers is to determine whether a group's culture:
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Can be used as a relevant identifier for a particular target group.
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When considering the use of a radio commercial in England that was designed for U.S. markets, a marketer would likely need to consider which of the following aspects of culture that might be different between the two countries?
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Language.
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The shift of population from the "Rust Belt" in the North to the "Sun Belt" in the South and Southwest will likely:
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Reduce regional cultural differences.
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Compared to other groups, the __________ generational cohort is more likely to complain, need special attention, and take time browsing before making a purchase decision.
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Seniors.
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Astute marketers recognize that the increasing disparity of income between upper- and lower-income groups:
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Create opportunities to provide value to each group.
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Marketers are more likely to find higher concentrations of foreign-born Americans and recent immigrants in:
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New York, Los Angeles, and Chicago.
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By offering environmentally responsible products, green marketers:
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Add value that other products do not have.
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Karen is a typical time-poor American consumer. She works 40+ hours per week, tries to keep up with her children's educational and recreational schedules, and often finds herself up late at night doing laundry while responding to e-mail messages and watching her few favorite shows recorded on Tivo. In response to the many American consumers whose lives are like Karen's, marketers are shifting advertising expenditures to:
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All of these.
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Every winter, resort managers in Myrtle Beach, South Carolina, check the exchange rate between the U.S. dollar and the Canadian dollar. In recent years, the exchange has changed from approximately $0.65 Canadian dollars per U.S. dollar, to approximately equal value of both currencies (i.e., $1 Canadian is worth about the same as $1 U.S.). These resort managers should expect:
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More Canadian visitors.
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Kimberly-Clark recently introduced rolls of toilet paper without the cardboard core. What social trend does this product respond to?
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Green marketing.
