MKG 300 – Flashcards
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1. According to the text, marketing means: A. much more than just selling and advertising. B. advertising. C. producing a product that fills a need. D. selling. E. making a good product that sells itself.
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A
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2. For Tesla, a new firm that makes an electric sports car, estimating how many competitors will make electric vehicles and what kinds they will make, is: A. one of the universal functions of innovation. B. a production activity. C. an example of the micro-macro dilemma. D. best left to intermediaries. E. a part of marketing.
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E
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3. Marketing A. means "selling" or "advertising." B. provides direction for production. C. involves actually making goods or performing services. D. does not impact consumers' standard of living. E. is the development and spread new ideas, goods, and services.
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B
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4. Customer satisfaction is the extent to which a firm fulfills a consumer's: A. needs. B. desires. C. expectations. D. only A and B above. E. all of the above.
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E
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5. Marketing can be viewed as: A. a set of activities performed by individual organizations. B. relevant to both business and nonprofit organizations. C. a social process. D. all of the above are correct. E. only A and B above.
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D
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6. Looking at marketing as a set of activities focuses on A. macro-marketing. B. for-profit marketing. C. micro-marketing. D. nonprofit marketing. E. personalized marketing.
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C
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7. Which of the following statements by a U.S. president best reflects a MICRO view of marketing? A. "A tax cut will give consumers more spending money." B. "With interest rates low, many young people can now afford to buy a new home." C. "In the United States we have a better choice of products than in any other country." D. "My administration will spend 75 percent more on purchases related to domestic security during the next year." E. "Tourism firms should advertise more to attract more international visitors."
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E
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8. Marketing will not happen unless: A. e-commerce is flourishing. B. collaborators are present to simplify exchange. C. intermediaries are present to facilitate exchange. D. two or more parties each have something they want to exchange for something else. E. an economy is market-directed rather than command.
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D
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9. MACRO-marketing: A. Emphasizes how the whole marketing system works. B. Considers how marketing affects society, but not how society affects marketing. C. Matches homogeneous supply and demand. D. Is mainly concerned with the activities of individual organizations. E. All of the above
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A
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10. Discrepancies of assortment happen when A. producers prefer to produce and sell in large numbers, but consumers prefer to buy and consume in smaller numbers. B. consumers may not want to consume goods and services at the time producers would prefer to produce them. C. consumers value goods and services in terms of costs and competitive prices whereas producers value them in terms of satisfying needs and ability to pay. D. producers specialize in producing a narrow range of goods and services but consumers need a wide variety. E. producers hold title to goods and services that they themselves do not want to consume.
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D
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Economies of scale" means that: A. as a company produces larger numbers of a particular product, the cost of each unit of the product goes down. B. the more producers there are in an economy the greater the need for intermediaries. C. larger countries enjoy more economic growth than smaller countries. D. as a company produces larger numbers of a particular product, the total cost of producing these products goes down. E. All of the above are true.
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A
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Which of the following is NOT one of the "universal functions of marketing"? A. Production B. Standardization C. Financing D. Buying E. Transporting
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A
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The standardization and grading function of marketing involves: A. promoting goods and services. B. collection, analysis, and distribution of marketing information. C. sorting products according to size and quality. D. looking for nd evaluating goods and services. E. movement of goods from one place to another.
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C
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Marketing intermediaries and collaborators can often perform marketing functions: A. better than producers or consumers can perform them. B. which leaves producers and consumers more time for production and consumption. C. at a low cost--because of specialization, economies of scale, or e-commerce. D. all of the above are true. E. none of the above are true.
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D
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In a market-directed economy: A. profit, survival, and growth are all guaranteed for producers. B. consumers have little freedom of choice. C. consumers decide what is to be produced and by whom through their dollar votes. D. prices usually do not change according to supply and demand. E. only the needs of the majority are served.
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C
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The three basic ideas in the "marketing concept" are: A. customer satisfaction, resource efficiency, sales maximization. B. customer satisfaction, total company effort, sales growth. C. resource efficiency, sales growth, profit maximization. D. customer satisfaction, marketing manager as chief executive, profit. E. customer satisfaction, total company effort, profit.
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E
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Customer value A. is greater if benefits exceed costs. B. becomes less important as competition increases. C. is the same thing as low price. D. affects a customer's relationship with a firm before and after a sale. E. both A and D are true.
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E
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Which of the following statements about customer value is True? A. Building relationships with customers means providing customer value before, but not after the purchase of a product or service. B. Retaining current customers is usually less costly than taking customers away from a competitor. C. A firm's advertising department cannot be expected to develop ads to convince a customer to buy from the firm more than once. D. People in the organization who are not in the sales or customer service areas should never be called upon to help resolve a customer's problem. E. None of the above.
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B
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A marketing strategy A. specifies a target market and a related marketing mix. B. provides a focused but narrow picture of what a firm will do in some market. C. is a market-oriented, whole-company plan. D. includes two interrelated parts—product mix and product development. E. includes the marketing mix, but does not specify customers.
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A
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Target marketing, in contrast to mass marketing: A. Assumes all customers have the same needs. B. Assumes everyone is a potential customer. C. Focuses only on small market segments. D. Tailors a marketing mix to fit some specific group of customers. E. Makes it more likely that a firm will face direct competition.
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D
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Marketing strategy planners should recognize that: A. target markets should not be large and spread out. B. mass marketing is often very effective and desirable. C. large firms like General Electric, Target, and Procter & Gamble are too large to aim at clearly defined markets. D. target marketing is not limited to small market segments. E. the terms "mass marketing" and "mass marketers" mean essentially the same thing.
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D
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The marketing mix A. includes four variables -- People, Place, Promotion, and Price. B. includes the target market. C. helps to organize the marketing strategy decision areas. D. includes four variables -- advertising, personal selling, customer service, and sales promotion. E. does not focus on target customers.
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C
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"Product" is concerned with: A. branding. B. packaging and warranty. C. physical goods. D. services. E. all of the above might be involved.
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E
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Big Fizz Co., a manufacturer of cola-flavored drinks, wants to add packaged fruit juices to its existing product line. Big Fizz needs to make some decisions regarding packaging and branding of the fruit juices. These decisions would fall under which variable of the marketing mix? A. Product B. Place C. Promotion D. Price E. Personal selling.
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A
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A firm's decisions regarding channel type, market exposure and kinds of intermediaries would fall under the marketing mix variable of A. Product. B. Place. C. Promotion. D. Price. E. People.
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B
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) "Place" is NOT concerned with: A. who handles storing and transporting. B. when and where products are wanted. C. kinds of intermediaries needed to reach customers. D. telling the target market what products are available--and where. E. channels of distribution.
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D
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The _____ area of the marketing mix includes decisions related to telling the target market or others in the channel of distribution about the "right" product. A. product B. place C. promotion D. price E. communication
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C
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The Price area of the marketing mix: A. Requires consideration of the cost of the marketing mix and the competition facing the firm when setting prices. B. Does not involve estimating consumer reaction to possible prices. C. Requires an understanding of discounts and allowances. D. Does not include the consideration of geographic terms in price setting. E. Both A and C.
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E
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A "marketing plan" is: A. a marketing program. B. a marketing strategy. C. a marketing strategy--plus the time-related details for carrying it out. D. a target market and a related marketing mix. E. a plan that contains the necessary operational decisions.
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C
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Happy Feet shoe company's strategic policy states "Carry as limited a line of colors, styles, and sizes as will satisfy the target market." This policy best relates to which decision area of the marketing mix? A. People B. Place C. Promotion D. Price E. Product
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E
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Differentiation means that A. the firm should aim its efforts at a target market that is different from a target market that a competitor would find attractive. B. a firm's marketing mix is distinct from and better than what is available from a competitor. C. a firm uses its resources in a different way than competitors use their resources. D. a firm should screen out opportunities using different criteria than those used by other firms. E. when a firm's marketing strategy is not going well it should change to a different set of operational decisions.
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B
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When Colgate encourages its current customers to brush more often by taking their toothbrush and toothpaste to work with them, which market opportunity is Colgate pursuing? A. Market development B. Product development C. Diversification D. Market penetration
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D
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When a firm tries to increase sales by selling its present products in new markets, this is called: A. market penetration. B. market development. C. product development. D. diversification. E. market integration.
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B
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When a firm tries to increase sales by offering new or improved products to its present markets, this is called: A. mass marketing. B. product development. C. market penetration. D. diversification. E. market development
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B
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When a firm tries to increase its total sales by offering new products to new markets, it's pursuing: A. diversification. B. product development. C. market development. D. market penetration. E. All of the above.
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A
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A good mission statement should NOT A. focus on a few key goals. B. be a substitute for more specific objectives. C. embrace everything the firm stands for. D. supply guidelines when managers face difficult decisions. E. none of the above is correct.
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C
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Nike claims in its Annual Report that "the reasons every NIKE employee comes to work every day is to create great product, to lead the athletic industry in innovation, and to serve the athlete." This is Nike's: A. competitive barrier. B. technology. C. portfolio management. D. mission statement. E. competitor analysis.
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D
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A first step in evaluating marketing opportunities is to: A. decide which markets the firm wishes to enter. B. consider the objectives and resources of the firm. C. hire a "futurist" as a marketing consultant. D. estimate market and sales potentials. E. find out if potential competitors are larger.
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B
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A firm may find itself in--or moving toward--pure competition because: A. customers see the firm's product as having close substitutes. B. a firm with a unique product has no choice. C. customers don't have much information about competing suppliers. D. when the number of competitors is small, they usually make similar decisions. E. None of the above.
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A
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In monopolistic competition, A. one firm completely controls a broad product-market. B. each competitor tries to get control in its "own" target market. C. competitors offer the same marketing mix. D. different marketing mixes are nevertheless seen as the same by all customers. E. all customers view various alternatives as substitutes.
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B
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Which of the following observations is NOT TRUE of monopolistic competition? A. A number of different firms offer marketing mixes that at least some customers see as different. B. Marketing managers try to differentiate very similar products by relying on other elements of the marketing mix. C. Each competitor tries to get a monopoly in its own target market. D. Most marketing managers in developed economies do not face monopolistic competition. E. Competition exists because some customers see various alternatives as substitutes.
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D
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Competitive barriers in the Japanese market for disposable diapers impacting P included all of the following except: A. Uni-Charm and Kao are leading brands in Japan. B. Uni-Charm and Kao have established distribution channels in Japan. C. Most grocery stores are small in Japan and require frequent restocking. D. Pampers offers better fit and absorbency. E. All of the above are true.
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D
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The economic environment: A. Has no relationship to the technological environment. B. Is not affected by the way all of the parts of the macro-marketing system interact. C. Is the same from country to country. D. Can change very rapidly. E. Never requires marketing managers to make immediate changes in strategy
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D
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X-Brand Bikes, a manufacturer of off-road bicycles, carefully developed a strategy for moving into South America. The strategy had poor results after interest rates and inflation rose rapidly in most of its South American markets, demonstrating the influence of the _____ on marketing strategy. A. economic environment B. technological environment C. social environment D. legal environment E. political environment
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A
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AT reacted to the popularity of the cellular phone by adding several cellular models to its line of regular phones. Availability and popularity of cellular phones is most likely due to changes in the ____________ environments. A. political and cultural B. technological and legal C. legal and economic D. social and technological E. all of the above
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D
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Which of the following newspaper headlines would be LEAST likely to involve the political environment? A. U.S.-Vietnamese Joint Ventures in the Future. B. Egg Sales Fall as Consumers Switch to Low Cholesterol Diets. C. U.S. Signs Trade Agreement with Venezuela. D. FDA Adopts New Regulations for Generic Drugs. E. Consumers Urged to "Buy American."
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B
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American economic and legislative thinking is based on the idea that A. encouraging competition harms public interest. B. competition among many small firms helps the economy. C. attempts by business to limit competition aids large firms during recessions. D. the economic environment provides a base for the technological environment. E. laws should protect companies and not consumers.
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B
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The Robinson-Patman Act specifically aims at: A. unfair methods of competition. B. price discrimination. C. deceptive advertising. D. firms that rely on salespeople who sell "door to door." E. attempts to monopolize.
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B
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A firm that discriminates in price on goods of "like grade and quality" may be in violation of the ___________ Act. A. Sherman B. Robinson-Patman C. Wheeler-Lea D. Magnuson-Moss E. Antimerger
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B
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When Acme Tools was found guilty of giving one of its retailers lower prices on goods of "like grade and quality" without any cost justification, the firm was charged with a violation of the ____________. A. Sherman Act B. Clayton Act C. Robinson-Patman Act D. Antimerger Act E. Wheeler-Lea Amendment
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C
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The languages people speak, the type of education they have, and their religious beliefs are examples of the A. political environment. B. economic environment. C. cultural and social environment. D. legal environment. E. technological environment.
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C
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A marketing analyst for a chicken processor reports that a rising percentage of people are eating chicken because it has less fat than beef. Clearly, this firm's opportunities may improve with this change in the A. technological environment. B. cultural and social environment. C. economic environment. D. political and legal environment. E. competitive environment.
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B
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Which of the following is least likely a result of shifts in the cultural and social environment? A. Domino's Pizza finds that demand for pizza delivered at home has expanded as more consumers are willing to pay for more convenience. B. A toy manufacturer recalls a playpen with a defective latch and Toys 'R' Us stores remove them from the shelf. C. Haagen-Dazs introduces a nonfat yogurt that is also "low cal." D. Sony recruits more women graduates for sales management positions. E. BMW builds its new plant in South Carolina because of the willingness of "Sun Belt" workers to put in a "full day's work."
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B
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A firm's product-market screening criteria for evaluating existing plans and possible new opportunities should consider: A. the objectives of top management. B. trends in the market environment. C. the firm's resources. D. All of the above. E. Only A and B above.
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D
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General Electric's "strategic planning grid" is an approach for: A. evaluating possible marketing objectives. B. selecting target markets. C. evaluating existing and possible plans. D. developing new products. E. developing marketing mixes.
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C
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The _____ dimension of the GE grid helps managers answer the question: Does this product-market plan look like a good idea? A. business strengths B. quantitative criteria C. industry attractiveness D. relative positioning E. qualitative criteria
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C
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General Electric's "strategic planning grid": A. focuses on market share and market growth rate. B. ignores some important issues--such as competitive structure and the environmental impact of a plan. C. requires that all opportunities be judged either "High" or "Low." D. substitutes quantitative estimates for management judgment. E. None of the above is true.
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E
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Using General Electric's "strategic planning grid," an opportunity rated "medium" in terms of industry attractiveness and "medium" in terms of business strengths would be evaluated as: A. yellow--borderline. B. red--for no growth. C. green--for growth. D. could be yellow, red, or green--because the grid really doesn't deal with "medium" ratings.
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A
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Jazzy Tile Co. segmented its broad product-market and decided to aim at two different segments, offering each segment a different marketing mix. Jazzy Tile Co. is following the ______________ approach. A. mass marketing B. multiple target market C. combined target market D. single target market E. All of the above.
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B
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When Procter & Gamble offers both Pantene and Vidal Sassoon shampoos to its customers, which target market approach is P using? A. Multiple B. Single C. Combined D. Generic E. Clustering
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A
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Watson's Bakery found five different market segments among customers for its bakery goods. When developing a market-oriented strategy, the marketing manager used a ____ approach, putting two target markets together and developing a single marketing mix that would meet the needs of the new larger segment. A. particular target market B. multiple target market C. combined target market D. product-market target market E. specialty targeting
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C
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Combiners A. look at various submarkets for differences rather than similarities. B. try to increase the size of their target markets by merging two or more segments. C. aim at one more market segments and offer each different marketing mixes. D. have decided to sacrifice profits for sales volume. E. aim at one submarket with a specialized marketing mix.
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B
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A combined target market approach A. sacrifices possible economies of scale. B. requires more investment than a multiple target market approach. C. may not satisfy customers as well as the multiple target market approach. D. trades off sales volume to provide a small market superior value. E. aims at two or more segments with multiple marketing mixes.
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C
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Ideally, product-markets should be described in terms of: A. behavioral needs, attitudes, and how present and potential goods or services fit into customers' consumption patterns. B. urgency to get needs satisfied and desire and willingness to compare and shop. C. geographic location and other demographic characteristics of potential customers. D. All of the above. E. Only A and B above.
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D
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BEHAVIORAL (rather than DEMOGRAPHIC) segmenting dimensions include: A. family life cycle. B. geographic location. C. education. D. social class. E. purchase relationship.
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E
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Which of the following is a DEMOGRAPHIC segmenting dimension? A. Rate of use. B. Brand familiarity. C. Type of problem solving. D. Benefits sought. E. Family life cycle.
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E
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Deciding whether a group of customers should be included in a target market is the purpose of _____ dimensions. A. behavioral B. demographic C. determining D. qualifying E. geographic
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D
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Qualifying dimensions," in contrast to "determining dimensions," A. are the only kind of dimensions useful for marketing strategy planning. B. indicate whether a person might be a potential customer but do not show which product or brand that person might buy. C. are the customer-related dimensions in a product-market. D. affect the product or brand a person is likely to purchase. E. None of the above is true.
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B
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Compared to qualifying dimensions, determining dimensions A. are more likely to be related to whether a customer will make a purchase in the product-market at all. B. are more likely to be related to the specific brand selected. C. are usually much more specific. D. Both B and C are true. E. None of the above is true.
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D
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James is a prospective car buyer. In his context, which of the following statements would reflect a determining dimension? A. He must have enough money, or credit, to buy a car and insure it. B. He needs to have a valid driver's license. C. He has kids who have to be carpooled. D. He needs a safe car. E. His office is 2.5 miles from home.
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D
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In the example for the seven-step approach to market segmentation (used in the text), which of the following is a determining need? A. safety B. a clean bathroom C. security D. a good bed E. none of the above
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E
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In the 7-step approach to segmenting product markets, what is the next step after: 1) selecting the broad product-market; and 2) identifying potential customers' needs? A. Identify the determining dimensions. B. Form homogeneous submarkets. C. Name the possible product-markets. D. Estimate of the size of each product-market segment. E. Evaluate product-market segmentation behaviors.
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B
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Travel Magic Company wants to enter the hotel business. Its marketing managers are brainstorming ideas about why customers go to different hotels and then writing down customer requirements. At this point, Travel Magic is engaging in which step of the seven-step approach for segmenting product-markets? A. Selecting the broad product-market B. Identifying potential customers' needs C. Forming homogeneous submarkets D. Identifying the determining dimensions E. Estimating size of each product-market segment
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B
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The 7-step approach to market segmentation used in the text shows that: A. qualifying needs can logically be identified once the determining needs are known. B. profit is the overall consideration beginning with Step 1. C. it's useless to consider what people in each submarket do not want when so much is known about what they do want. D. submarkets are nicknamed based on their determining needs. E. recreational vehicles in the U.S. is a broad product-market with many submarkets.
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D
