MKT 300 Final Cannon Ch. 1-3 – Flashcards
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Which of the following activities is part of the production process? Making goods or performing services Deciding whether to sell goods directly to consumers or through retailers Estimating the prices potential customers are willing to pay Identifying competing companies
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Making goods or performing services
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_____ can be defined as the extent to which a firm fulfills a customer's needs, desires, and expectations. Organizational viability Customer satisfaction Customer equity Customer value Social responsibility
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Customer Satisfaction
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Which of the following statements is true of marketing? Marketing only applies to for-profit (not nonprofit) organizations. Marketing doesn't occur unless two or more parties are willing to exchange something for something else. Marketing activities are limited to selling and advertising. A marketing exchange focuses on making a single transaction. Marketing should begin with the production process followed by potential customer needs.
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Marketing doesn't occur unless two or more parties are willing to exchange something for something else.
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Macro-marketing: is not concerned with how marketing affects society. applies to only nonprofit organizations—not profit organizations. seeks to match homogeneous supply capabilities with homogeneous demands for goods and services. is concerned with the flow of need-satisfying goods and services from producer to consumer. places emphasis on the activities of individual organizations.
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is concerned with the flow of need-satisfying goods and services from producer to consumer.
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From the perspective of macro-marketing, the discrepancy between the small quantity of a product that individual consumers need and the large quantity that firms produce exists because: it is necessary to achieve customer satisfaction. firms seek to benefit from economies of scale. society has evolved past a subsistence economy. businesses prefer to store products for long periods. businesses can satisfy customers better when they have large inventory surpluses.
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firms seek to benefit from economies of scale.
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With regard to the universal functions of marketing, the transporting function involves: holding goods until customers need them. moving goods from one place to another. sorting products according to size and quality. bearing the uncertainties that are part of the marketing process. promoting the product.
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moving goods from one place to another.
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In the context of the universal functions of marketing, the _____ function of marketing involves holding goods until customers need them. buying selling standardizing and grading storing transporting
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storing
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Firms that facilitate or provide one or more of the marketing functions other than buying or selling are known as: suppliers. intermediaries. advisors. collaborators. complementors.
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collaborators.
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Which of the following functions of marketing involves sorting products according to their size and quality, helping to reduce their need for inspection, and sampling? The buying function The standardization and grading function The storing function The market information function The risk taking function
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The standardization and grading function
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In a command economy, producers have little choice about what goods and services to produce. producers get to decide what and how much is to be produced and distributed by whom, when, to whom, and why. the prices set by government planners tend to be very flexible—changing according to supply and demand. activities such as market research, branding, and advertising are performed frequently.
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producers have little choice about what goods and services to produce.
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Government planning in a command economy is least likely to work well when: the economy is simple. the variety of goods and services is small. there is political instability. there is drought. the economy is complex.
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the economy is complex.
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Based on the following company statements, which company is most likely to be in the marketing company era? "Our sales force was able to sell to intermediaries more of our new product than they can resell in all of this year." "Our marketing manager is coordinating pricing, product decisions, promotion, and distribution to help us show a profit at the end of this year." "The whole company is in good shape—demand exceeds what we can produce." "Our long range plan—developed by our marketing manager—is to expand across regions so that we can profitably meet the long-term needs of our customers." "Our new president previously led our marketing effort as vice president of sales."
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"Our long range plan—developed by our marketing manager—is to expand across regions so that we can profitably meet the long-term needs of our customers."
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The marketing concept is based on the goal of: getting customers to buy whatever a firm decides to produce. making a profit. satisfying customers at a profit. producing the largest assortment of goods. the production-oriented approach.
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satisfying customers at a profit.
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Which of the following statements best explains the "marketing concept"? Firms should spend more money on marketing than they have in the past. A firm's main emphasis should be on the efficient utilization of its resources. All of a firm's activities and resources should be organized to satisfy the needs of its customers—at a profit. A company's chief executive should previously have been a marketing manager. A firm should always attempt to give customers what they need regardless of the cost involved.
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All of a firm's activities and resources should be organized to satisfy the needs of its customers—at a profit.
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Which of the following statements is true of marketing-oriented firms? In marketing-oriented firms, there is a lack of a central focus, as managers tend to build "fences" around their own departments. In marketing-oriented firms, the total system's effort is guided by what individual departments would like to do instead of what customers want. Marketing-oriented firms focus on making and selling whatever products are easy to produce. In a marketing-oriented firm, every department's activities are guided by what customers need and what the firm can deliver at a profit. Marketing-oriented firms think of customers as primarily existing to buy the firm's output.
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In a marketing-oriented firm, every department's activities are guided by what customers need and what the firm can deliver at a profit.
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A restaurant may have low customer value for all the following reasons except: the food isn't flavorful. the restaurant has an unfavorable location. the dining experience is perceived to be greater than the cost to the customer. the restaurant's customers perceive the prices to be too high. the long wait times are not worth the wait.
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the restaurant's customers perceive the prices to be too high.
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Which of the following statements about nonprofit organizations is false? Marketing is being more widely accepted by nonprofit organizations. The marketing concept is as important for nonprofit organizations as it is for business firms. In nonprofit organizations, as in business firms, support often comes directly from those who receive the benefits the organization produces. A nonprofit organization does not measure profit in the same way as a business firm does. The marketing concept provides focus in both business firms and nonprofit organizations.
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In nonprofit organizations, as in business firms, support often comes directly from those who receive the benefits the organization produces.
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Which of the following is a difference between business firms and nonprofit firms with relevance to the marketing concept? Nonprofit organizations receive support from their beneficiaries, as opposed to business firms. Nonprofit organizations, unlike other business firms, do not face competition for the resources and support they need. Nonprofit organizations' key measures of long-term success differ from those of other business firms. Nonprofit organizations, unlike other business firms, do not have to take in as much money as they spend in order to survive. Nonprofit organizations give less regard to the importance of the marketing concept than other business firms.
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Nonprofit organizations' key measures of long-term success differ from those of other business firms.
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Which of the following is not an example of the micro-macro dilemma? Having a dog or cat can teach a child responsibility, but add expenses to the family budget. Some people like to smoke cigarettes, but the smell annoys many others. Aluminum soft-drink cans are convenient, but expensive to pick up along the highway. Nuclear power may reduce your fuel bill, but worry others. Driving fast can be fun, but is hazardous to other people.
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Having a dog or cat can teach a child responsibility, but add expenses to the family budget
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The concept of social responsibility is challenging for marketers except when: costs related to social responsibility initiatives have a negative impact on profits. environmentally-minded product adjustments result in inferior products. consumers aren't concerned with a product's benefits to society or the environment. the needs of society conflict with the needs of individual consumers. the needs of consumers and the society can be served at a profit.
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the needs of consumers and the society can be served at a profit.
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Which of the following statements is true of the marketing management process? The marketing management process is the process of planning marketing activities, directing the implementation of the plans, and controlling these plans. Marketing managers focus only on planning for the present market because consumers' needs, competitors, and the environment hardly ever change. The marketing management process is the process of planning marketing activities, but not directing or controlling the implementation of these plans. The marketing management process is a discontinuous process because the three jobs in the process are not interconnected.
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The marketing management process is the process of planning marketing activities, directing the implementation of the plans, and controlling these plans.
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A _____ specifies a target market and a related marketing mix. marketing strategy market test market program marketing survey marketing report
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marketing strategy
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Which of the following statements is true of selecting a market-oriented strategy? Target marketing typically aims at small and relatively heterogeneous market segments. Mass marketing typically aims at very specific target customers with the same marketing mix. Large firms like General Electric, Target, and Procter and Gamble are too large to aim at clearly defined markets. Target marketing is not limited to small market segments. The terms "mass marketing" and "mass marketers" essentially mean the same thing.
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Target marketing is not limited to small market segments.
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Which of the following statements is true of target marketing? Target marketing is typical of a production-oriented approach. Target marketing vaguely aims at "everyone" with the same marketing mix. Target marketing applies only for small market segments. Target marketing is limited to fairly homogeneous market segments. Target marketing considers everyone to be a potential customer.
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Target marketing is limited to fairly homogeneous market segments.
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Target marketing differs from mass marketing in that: target marketing is tailored to fit some specific target customers while mass marketing roughly aims at everyone with the same marketing mix. target marketing considers everyone to be a potential customer while mass marketing considers only specific people to be potential customers. target marketing is limited to large market segments while mass marketing is limited to markets that are small and clearly defined. target marketing is limited to fairly heterogeneous market segments while mass marketing is limited to fairly homogeneous market segments.
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target marketing is tailored to fit some specific target customers while mass marketing roughly aims at everyone with the same marketing mix.
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In the marketing mix, the customer is: one of the four components of the marketing mix. the entity that selects the marketing mix. the target of all marketing efforts. not the target market for the marketing mix. the "Person" in the four Ps of the marketing mix.
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the target of all marketing efforts.
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_____ is the variable of the marketing mix that may involve a physical good, a service, or a blend of both. Product Person Price Place Promotion
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Product
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With which of the four Ps of the marketing mix are retailers, wholesalers, warehouses, and transportation firms associated? Product People Place Promotion Price
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Place
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_____ is a form of promotion that involves direct spoken communication between sellers and potential customers that may happen face-to-face, over the telephone, or even via a videoconference over the Internet. Publicity Sales promotion Advertising Personal selling Mass selling
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Personal selling
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Which of the following is true of publicity? It is a form of personal communication. It is explicitly sponsored by an advertiser. It is an unpaid form of communication. It involves the internal marketing of a product or service. It involves the use of coupons, samples, events, and contests.
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It is an unpaid form of communication.
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Which of the following statements about the marketing mix variables is false? Promotion includes personal selling, mass selling, and sales promotion. The term "product" refers to services as well as physical goods. A channel of distribution does not have to include any intermediaries. The marketing mix variable "Price" is more important than "Place." The needs of a target market virtually determine the nature of an appropriate marketing mix.
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The marketing mix variable "Price" is more important than "Place."
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Natural Essences, a company that manufactures hair products, offers "dollar-off coupons" to adult women to get them to try its shampoos and conditioners. This is an example of: publicity. sales promotion. product development. personal selling. diversification.
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sales promotion.
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When ranked in importance from greatest to least, the four Ps line up in which of the following orders? Product, price, promotion, place Price, promotion, place, product Promotion, place, product, price Place, product, price, promotion The four Ps are of equal importance.
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The four Ps are of equal importance.
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A "marketing program": is another name for a particular marketing mix. blends all of the firm's marketing plans into one "big" plan. consists of a target market and the marketing mix. is primarily concerned with all of the details of implementing a marketing plan. must be set before a target market can be selected.
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blends all of the firm's marketing plans into one "big" plan.
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_____ is defined as the expected earnings stream of a firm's current and prospective customers over some period of time. Customer equity Customer earning potential Customer service Customer profiling Customer lifetime value
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Customer equity
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The text's discussion of "hit-or-miss" marketing suggests that: firms that don't spend more on marketing than their competitors are likely to fail. managers who seek big breakthroughs, rather than going after easier to achieve marketing opportunities, face big risks and are likely to fail. it is fairly common for marketing efforts to turn out poorly, so to avoid that fate and get better than average results, a good manager needs to use a logical process for marketing strategy planning. getting good marketing results is really quite easy as long as the marketing manager focuses on the four Ps. all of these are correct answers.
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it is fairly common for marketing efforts to turn out poorly, so to avoid that fate and get better than average results, a good manager needs to use a logical process for marketing strategy planning.
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Which of the following best describes differentiation? The firm aims its efforts at a target market that is different from a target market that a competitor would find attractive. The firm's marketing mix is distinct from what is available from a competitor. The firm uses its resources in a way that is different from the way competitors use their resources. The firm should screen out opportunities using criteria that are different from those used by other firms. When a firm's marketing strategy is not going well, it should change to a different set of operational decisions.
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The firm's marketing mix is distinct from what is available from a competitor.
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Trying to increase sales by selling present products in new markets is known as _____. market penetration market development product development diversification market integration
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market development
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International marketing is attractive for all of the following reasons except that: going global can help marketers gain a competitive advantage through lower costs and economies of scale. international markets may offer fresh demand for products experiencing slow demand at home. the world is becoming smaller due to advancements in transportation and communications. regulations in foreign countries can be highly complex. it is becoming more affordable for a business to access large numbers of consumers around the world.
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regulations in foreign countries can be highly complex.
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Which of the following is not an element of the external market environment? Technological environment Direct environment Economic environment Cultural and social environment Political and legal environment
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Direct environment
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Which of the following is most likely to serve as a firm's mission statement? Green is good for the world. Promote all brands using viral videos created in-house. Create three new product lines during the next 12 months. We aim to boost annual sales by 15 percent among women 18-35 years of age during the next six months. We exist to provide customers with the best shopping experience anywhere in cyberspace.
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We exist to provide customers with the best shopping experience anywhere in cyberspace.
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If a firm has a strong patent, _____ its competitors are more likely to be successful in their endeavors. its competitors may be limited to second-rate offerings. it's less likely to have good relationships with wholesalers and retailers. it has a duty to share the knowledge of the new process or idea with its competitors. it has a 30-year monopoly to develop and use its new product, process, or material.
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its competitors may be limited to second-rate offerings.
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When looking for attractive opportunities, a marketing manager for a clothing manufacturer should consider: the firm's capability to produce. the firm's financial strengths. whether the firm has good relations with established clothing retailers. the firm's brand awareness. all of the above.
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all of the above.
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A firm may find itself in—or moving toward—pure competition: when customers see the firm's product as having close substitutes. because a firm with a unique product has no choice. when customers don't have much information about competing suppliers. when the number of competitors is small. In this situation, competitiors usually make similar decisions.
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when customers see the firm's product as having close substitutes.
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_____ is a kind of competitive situation where at least some consumers see the marketing mixes being offered by firms as different. Monopoly Monopolistic competition Pure competition Oligopoly Regulated competition
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Monopolistic competition
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In order to identify potential competitors, it is important to take the viewpoint of _____ when conducting a competitor analysis. competitive rivals brand managers target customers supply chain partners futurists
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target customers
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Which of the following is not an example of how the economic environment may affect marketing strategy planning? The price of bicycles is rising because of inflation. With the national income on the rise, many people in the United States have the purchasing power to afford expensive bicycles. Because of exchange rates, imported bicycles are cheaper than those made in the United States. Both bicycle manufacturers and bicycle retailers are adjusting marketing strategies as a result of the recession. The demand for bicycles is increasing because consumers are becoming more health conscious.
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The demand for bicycles is increasing because consumers are becoming more health conscious.
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Cutbacks in consumer spending and rising inflation are conditions that arise mostly due to factors in: the competitive environment. the cultural and social environment. the technological environment. the political environment. the economic environment.
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the economic environment.
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Which of the following statements is true of the technological environment? Technology foreshadows breakthrough opportunities. It is always clear how a technology just on the horizon might change a business. Technology does not affect core marketing processes. Technological change shuts out new opportunities. Most technological developments come out of nowhere.
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Technology foreshadows breakthrough opportunities.
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Which of the following is the primary function of the North American Free Trade Agreement (NAFTA)? To restrict trade between the U.S. and Canada To explore the concept of creating a trade-restricted zone for 34 countries across North, South, and Central America To reshape the rules of trade among the United States, Canada, and Mexico To eliminate the need to adjust strategies to reach submarkets of consumers
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To reshape the rules of trade among the United States, Canada, and Mexico
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The Consumer Product Safety Commission: cannot exercise any power—it can only advise the Federal Trade Commission (FTC). is concerned with protecting small businesses from large businesses, rather than protecting consumers. was created by the Pure Food and Drug Act. has no effect on marketing strategy planning until a product is on the market and proved to be dangerous by a government agency. has broad power to set safety standards and can impose penalties for violation of these standards.
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has broad power to set safety standards and can impose penalties for violation of these standards.
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Which of the following federal laws passed by the Congress in the United States prohibits fake advertising allowances or discrimination in help offered? Clayton Act Sherman Act Magnuson-Moss Act Robinson-Patman Act
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Robinson-Patman Act
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Which of the following is not a variable associated with the cultural and social environment? Technological innovation The role of women in society Language Religious belief Education level
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Technological innovation
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With reference to the measures of national income, gross domestic product (GDP) differs from gross national income (GNI) in that GDP: only includes the market value of all the services provided in a country's economy in a year, by residents of that country. excludes the income earned by nonresidents of a nation who own resources in that nation. does not consider the variables of small-scale industries and self-help groups. includes the income earned by foreigners who own resources in a nation.
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includes the income earned by foreigners who own resources in a nation.
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Which of the following countries has the highest gross national income (GNI) per capita? The United States India Norway Saudi Arabia Vietnam
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Norway
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Which of the following terms best describes the idea that it's important to meet present needs without compromising the ability of future generations to meet their own needs? Viability Profitability Decentralization Compromise Sustainability
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Sustainability
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Which of the following statements is true regarding General Electric's (GE) strategic planning grid? The opportunities that fall into the red boxes in the lower right-hand corner of the grid are its best growth opportunities. The businesses in the green boxes in the upper left-hand corner of the grid suggest a no-growth policy. Managers give the opportunities that fall into the green boxes in the upper left-hand corner of the grid low marks on both industry attractiveness and business strengths. GE may continue to support an existing yellow business but will probably reject a proposal for a new one, as yellow businesses are borderline cases. Existing red businesses will continue to generate earnings, and so they deserve much investment.
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GE may continue to support an existing yellow business but will probably reject a proposal for a new one, as yellow businesses are borderline cases.
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According to the continuum of environmental sensitivity, which of the following products would be least risky to introduce in a foreign market? Clothing tied to unique cultural practices Lemon scented dishwashing soap Papaya juice An industrial welding machine Local food delicacies
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An industrial welding machine
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Which of the following is true of the continuum of environmental sensitivity? Industrial products usually need to be adapted to foreign markets more than consumer products. Consumer products that are linked to other social or cultural variables are easily adaptable to foreign markets and thus involve very little risk in international marketing. It is extremely risky to market basic commodities in international markets. Some products are more adaptable to foreign markets than others—and thus may be less risky. None of these statements about the continuum of environmental sensitivity is true.
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Some products are more adaptable to foreign markets than others—and thus may be less risky.
