Midterm Practice

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Among the fundamental changes to marketing and business practice in today’s economy is the dramatic increase in the availability of information. This increase in information has created a shift in the balance of power in the supply chain. Who now holds most of the power in today’s economy?
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customers
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__________ is the curse of mature markets whereby products lack any real means of differentiation and customers see competing products as offering roughly the same benefits.
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Commoditization
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In 2005, the American Marketing Association changed the definition of marketing that had stood for 20 years. The major changes in the definition included a shift from delivering the 4 Ps (product, price, place, promotion) to delivering __________ and a shift from creating exchanges to creating __________.
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value; customer relationships
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A customer’s decision to purchase one product or group of products over another is primarily a function of:
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how well that choice will fulfill that person’s needs and satisfy his or her wants.
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5.A product that provides the utmost in convenience is said to offer exceptional:
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time and place utility.
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Many firms attempt to distinguish or differentiate their product offerings through the use of __________ strategies. This involves establishing a mental image of the product offering relative to competing offerings in the minds of target buyers.
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product positioning
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In the traditional transactional marketing approach, the ultimate goal of marketing is to:
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acquire new customers and complete a large number of exchanges
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Which of the following statements best describes the nature of a marketing plan?
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It clearly outlines the organization’s marketing activities.
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Whether at the corporate, business-unit, or functional level, the planning process always begins with an in-depth:
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a situation analysis.
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When creating a corporate vision statement, organizations are attempting to answer which of the following questions?
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What do we want to become?
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When a firm possesses capabilities that allow it to serve customers’ needs better than the competition, the firm is said to have a
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competitive advantage
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In developing a marketing plan, the section on goals and objectives defines the parameters by which the firm will measure actual performance. In this respect, the goals and objectives section is tied closely to the __________ section of the marketing plan.
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evaluation and control
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In today’s business environment, firms that truly focus on customers instill a corporate culture that places customers and other stakeholders at the top of the organizational hierarchy. When this occurs, the firm shifts its focus from transactions to __________, and from __________ to collaboration
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relationships; competition
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In a truly market-oriented organization, what is the role of the CEO?
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To ensure that his or her employees have everything they need to perform their jobs well.
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With respect to conducting a situation analysis, which of the following IS NOT one of the four important issues to keep in mind?
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All bits of data are relevant no matter how minor they may seem
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When a firm analyzes its objectives and performance, availability of resources, structural characteristics, and organizational culture, the firm is most likely examining its:
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internal environment
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In many buying situations, customers will buy one product because it complements another product. In these cases of __________ demand, the demand of one product depends on the demand of another product.
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linked
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In the competitive sports drink market, Gatorade pays very close attention to the activities of Powerade, a major __________ competitor that markets drinks that are similar in features and benefits
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brand
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As a form of __________ competition, bicycles can solve the same basic need as automobiles, albeit with a very different product
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generic
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Between now and 2050, __________ will account for a full 90 percent of the growth in the total U.S. population
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minority population growth
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The sheer volume of available information on the economy, population, and business activities is the major strength of most __________ data sources
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government
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of the following are benefits of SWOT analysis EXCEPT:
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Its structured nature ensures that data and information are correctly categorized.
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Marketing goals can be defined as:
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broad, qualitative statements of desired accomplishments.
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With regard to Blue Ocean Strategy, the Four-Actions Framework is designed to challenge traditional assumptions about marketing strategy by asking four key questions. Which of the following IS NOT one of these questions?
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Which factors used throughout the industry should be copied?
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As a tool of Blue Ocean Strategy, the strategy canvas provides a way to visualize the firm strategy relative to other firms in the industry. The central portion of the strategy canvas is the __________, or the graphic representation of the firm relative performance across its industry factors.
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value curve
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Strengths are typically based on the existence and nature of the __________ possessed by the firm. Weaknesses stem from a lack of these important factors.
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resources and relationships
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__________ typically occur within the competitive, customer, economic, political/legal, technological, and/or sociocultural environments of the firm.
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Opportunities and threats
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Why is it important that marketing goals involve some degree of intangibility?
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It makes the goal more motivational and promotes continuous improvement
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From viewpoint of the consumer buying process, what is the difference between a need and a want?
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Needs are based on discrepancies between actual and desired satisfaction, whereas wants occur relative to specific products that can fulfill a need.
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If a researcher were to ask consumers to quickly name the top 3 brands of computers they might consider purchasing, the most common brands in the __________ would most likely be Dell, Apple, and HP.
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evoked set
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The basic assumption of __________ is that all customers in the market have similar needs and wants that can be reasonably satisfied with a single marketing program
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mass marketing
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The main advantage of __________ is specialization, as it allows the firm to focus its resources toward understanding and serving a single segment.
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market concentration
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__________ segmentation is the most powerful form of segmentation in consumer markets because it uses actual product usage to make distinctions among market segments.
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Behavioral
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One of the most successful and well-known tools of __________ segmentation is VALSâ„¢ developed by Strategic Business Insights.
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psychographic
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Firms engage in __________ when their intimate knowledge and expertise in one market allows them to offer customized marketing programs that not only deliver needed products but also provide needed solutions to customers’ problems.
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market specialization

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