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Chapter

1
Marketing considered beneficial?
o Creates utility for customers
o Marketing can create global competition
Utility received by users of a product
o Form
o Possession
A company adopting social responsibility is purposefully acknowledging
its accountability to larger society
the internal response that customers have to all aspects of an
organization and its offering is known as the
effective marketing benefits
o organizations who sell
o society as a whole
o consumers who buy
Characteristic of marketing in the production era
o Manufactures could not keep up w/ consumer demand
Which of the following statements best describe who is involved in
marketing?
o Every organization markets in some capacity
In addition to focusing on its financial profit responsibility, organizations
are increasingly focusing on which of the following?
o Social responsibility
o Ethics

For marketing to occur, there must be two or more parties with


unsatisfied needs.
Production era; homemaker that make due with whatever type of pantry
goods they could acquire
Firms or agencies that buy good and services for their own use or for
resale are known as organizational buyers
In order for marketing to occur, both parties involved must have which
two of the following regarding their needs?
o The desire to satisfy a need
o The ability to satisfy a need
Customer experience is
o The internal response that customers have to all aspects of an
organization and its offerings
The process of identifying prospective buyers, understanding them
intimately, and developing favorable long term favorable perceptions of
the organization is called
o Customer Relation management
Which of the 2 are following characteristic of the marketing concept era?
o Product design focused on consumers needs
o Marketing was integrated into each phase of business
The influence of social responsibility can be illustrated by a firms
o Behavior
During the sales oriented era
o Manufacturers were able to produced more than consumers
were able to buy
During the sales oriented era, firms found an answer to their
overproduction by adding salespeople to find new buyers

The internal response that customers have to all aspects of an


organization and its offering is known as the
o Customer experience
Which of the following statements about marketing is true?
o Thousands of ideas fail every year
Which is a benefit of effective marketing to society?
o Improves quality of products and services
In addition to an emphasis on consumer interests, new expectation of
marketers now include
o Environment
Firms that employ CRM (customer relationship management)
systematically collet info about their customers.
The marketing concept is the idea that an organization should strive to
satisfy customer needs while trying to achieve its goals
Ultimate Consumers in contrast w/ organizational buyers, are the people
who use products & services purchased for a household
Societal marketing concept
o Organizations should satisfy the needs of consumers
o Organizations should serve customers in a way that provides for
societys well being
Market oriented when a firm has transcended and attempts to
discover and satisfy its customers needs and wants




Chapter 2
A mission statement: States an organizations function in society
Which of the following are true of portfolios analysis?
o Management evaluates the firms various products and
businesses
o Firms typically perform it at the SBU or product line level of the
firm
o Management allocates its resources to products w/ the greatest
potential to be profitable
A visionary organizations core values, mission, and organizational
culture make up its foundation
BCG names
o Dogs- low share, low market growth
o Cash cows- high share, low market growth
o Question marks- low share, high growth market
o Stars- high share, high market growth
An organizations core values typically do not change much over time
o True
An organization sets its direction in terms of the business it is in and its
specific goals
Which two techniques aid in decisions about where an organization
wants to go?
o Business portfolio analysis
o Diversification analysis

Which of the following is not one of the four major growth strategies in
diversification analysis?
o Market analysis
A statement of an accomplishment of a task to be achieved, often by a
specific time, is known as goal
An organizational culture is: the set of values, ideas, attitudes, and
norms of behavior that is learned and shared among the members of an
organization.
A marketing dashboard is the visual computer display of the essential
information related to achieving a marketing objective
Identifying ones direct competition is a way to answer which question?
o What business are we in.
Identifying which of the following allows an organization to determine
where it is at the present time, as it begins to set a strategic direction.
o Competencies, Competitors, Customers
A marketing metric is a measure of the quantitative value or trend of
marketing activity or result
Which two of the following are broad ways that organizational strategies
may vary?
o Level and offerings
Which of the following are true regarding market share?
o It may need to be increased, even at the expense of profit, if
industry status or prestige is at stake
o Is is the percentage of sales of an industry accounted for by a
specific firm
An organizations core competencies are its special capabilities, including
skills, technologies and resources that distinguish it from other
organizations and provide value to its customers.

A marketing plan is a road map for the marketing actions of an


organization for a specific future time period.
When an organizations core competency is distinctive enough in
comparison to other is an industry, it may provide a competitive
advantage
A diversification strategy, one of 4 possible market product strategies
included in diversification analysis, introduced a new product to a new
market
The clear, broad, underlying industry category or market sector of an
organizations offering defines its business
Businesses can pursue several different types of goals that they would
like to achieve, such as those pertaining to market share, quality, or
customer satisfaction
The market share Is the ratio of sales revenue of the film to total sales in
the industry, including the firm itself.
An organizations core values are best described as the
o Enduring principles that guide its conduct over time
To define its business, an organization can start by
o Looking at the set of organizations that sell similar offerings
Which of the following describes a typical pathway for an SBU through
the 4 quadrants of the BCG business portfolio analysis?
o Starscash cows dogs; an SBU starts a ? and proceeds
counterclockwise around the quadrant
A market penetration strategy attempts to increase sales of present
products among
o Current sales, In current markets; existing markets.
Organizational strategies can vary by level , with top manager creating a
mission statement and functional employees creating a script for a sales
call.

Which of the following is often a trigger for an organization to rethink its


business model?
o Technological innovation
In defining ones business, avoid a narrow definition that is not focused
on customer needs
The product development strategy involves marketing a new product or
services to a current market for the organization
Market development: sell existing products to a new market
True of organizations core values
o They should inspire and motivate employees to take production
action
A market penetration growth strategy focuses on increasing sales of the
firms current products to its current target markets.













Chapter 3
Value consciousness is the concern for obtaining the best quality,
features, and performance of a product or service for a given price
Environmental forces
o Social cultural changed
o Economic consumer income
o Technological Electronic business technologies
o Competitive forms of competition
o Regulatory Laws affecting marketing mix actions
5 sources of environmental trends
o Social, economic, technologies, competitive, and regulatory
Baby boomer are those people born between the years
o 1946-64
Culture is defined as a learned and shared set of which of these
o Attitudes, values, ideas
Environmental scanning: is the process of continually acquiring infor on
events occurring outside the organization to identify and interpret
potential trends.
Hispanics, who may be from any race currently make up 16% of the US
population
the generation Y cohort is also called:
o the millennials
technology is an environmental force that involves developing
applications from science or engineering research

Which of the following generations cohorts consist of people born


between 1965-76?
o Generation x
Demographics is a description of selected characteristics of a population
Is once of the states that has seen a decline in population, according to
the most recent census
Demographics: describing a population according to selected
characteristics such as age, gender, ethnicity, income, occupation
Which generation cohorts represents the most recent period of
increasing births?
o Generation Y
Consumers who are increasingly switching media in search of short,
engaging messages is specifically and example of a social force
o Social forces include demographic characteristics of the
population and its culture
Which of the following family and living arrangements are increasing in
the United States?
o Households w/ unmarried partners and adult living with
partners
A good marketer can identify potential opportunities by paying attention
to environmental forces
Electronic commerce: electronic communication used in the inventory,
exchange, advertisement, distribution, or payment of products
Developing marketing programs that reflect the unique aspects of
different races is known as
o Multicultural marketing
Which 2 approaches can be most useful when trying to reach the femal
market for a traditionally male focused product?

o Create products w/ fewer gender distinctions


o Engage female customers w/ special promotions
Characteristics of generation Y
o Passionate about the environment
o Attracted to purposeful work
o Interested in sustainability
Baby boomers, generation X, and generation Y are examples of what?
o Generation cohorts
The changing attitudes roles and of men and women in the marketplace
is one of the most notable cultural changed in the untied states in the
past 30 years?
The market place: an electronic exchange environment w/ computer
technologies and digitized offerings
Using technology for the development of new products create value for
customers
Blended family: a household formed by divorced people who remarry
and merge 2 previously separated units into a single one
Precycling: a way that technology can improve existing products and
ways they are produced?
By the year 2015 Hispanics will be the largest U.S. minority group in
terms of spending
The agency monitoring the American population profile specifically is
called: The U.S. census bureau

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which characteristics of Hispanics in the U.S. population


o will spend 1.3 trillion dollars yearly
According to the census bureau, a micropolitan statistical area will
become a metropolitan statistical area when the urbanized area
population reaches: 50,000
Extranet allows for suppliers and distributors to communicate
Public opinion surveys indicate that most people feel the ethical
standards of business executives: Are only fair or poor
Economic espionage: the clandestine collection of trade secrets or
proprietary information about a companys competitors.
The legal concept of caveat emptor closely translates to: let the buyer
beware
Which personal moral philosophy considers certain individual rights or
duties as universal regardless of the outcome: moral idealism
Examples of an ethical problem in which a marketer is violating the
consumer bill of rights include which of the following?
Consumer bill of rights:
o To safety, to be informed, to choose and to be heard
Which of the following are reasons for the state of perceived ethical
business conduct being at its present level?

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o Ethical business conduct may have declined


o The publics expectations of ethical business behavior have
increased.
A social audit is used by organizations to: assess a firms objectives,
strategies, and performance in terms of social responsibility.
Which of the following are examples of societal responsibility?
o Triple bottom line, green marketing, cause marketing
In which of the following industries is economic espionage most
prevalent?
o High technology
Which of the following should a marketer be especially careful in order
to be sensitive to the consumer bill of rights?
o Personal information
Organizations that pace an emphasis on the triple bottom line recognize
the need to improve the state of which of the following?
o People, planet, and profit
Which two of the following are the most common motivations for
unethical consumer behavior?
o Consumer believes they can get away with it, the act is justified
Which of the following are steps in conducting a social audit?
o Evaluate, specify, identify
Cause marketing best example: funds go towards a charity
50% of U.S. consumers were willing to change their lifestyle to improve
the environment and they may be unwilling to pay higher prices


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Chapter 4
which of the following is true of code of ethics?
o contributions to government officials and political parties,
customer and supplier relations, conflicts of interest, and
accurate record keeping
Social responsibility includes the concept of Profit, stakeholder, and
societal responsibility
The right to be informed and the right to choose, as both pertain to the
exchange process in marketing are part of: the consumer bill of rights
Ethics Server as guidelines on how to act rightly and justly when faced
with moral dilemmas
Ethics deal with personal moral principles and values, while laws are
societys values and standards that are enforceable in the courts
Which of the two are the most common unethical behaviors when it
comes to competition in business?
o Economic espionage and bribery
A code of ethics is a formal statement of ethical principles and rules of
conduct
Which of the following are personal moral philosophies that have the
most direct bearing on marketing practice?
o Moral idealism and Utilitarianism
Social responsibilities mean that organizations are part of a larger society
and are accountable to that society for their actions

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Stakeholder responsibility focuses on the obligation an organization has


to those who can affect achievement of its objectives
Which of the following are benefits associated w/ companies effort to
increase social responsibility?
o Financially outperform less responsible companies, favorable
word of mouth
Utilitarianism: a personal moral philosophy that focuses on the greatest
good for the greater number.
Profit responsibilities holds that companies have a simple duty: to
maximize profits for their owners or stockholders.
Marketing efforts to produce, promote, and reclaim environmentally
products are known as: green marketing
Which of the following are true of bribery?
o More common in business to business and government
marketing than in consumer marketing.
o Common in countries in early stages of economic development
Sustainable development involves conducting business in a way that
protect natural environment while making economic progress
Societal responsibility extends the concept of social responsibility to
which of the following?
o Preservation of economical environment and general public
Whistle blower is an employee who reports illegal or unethical actions of
their employers

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Cause marketing: charitable contributions of a firm are tied directly to


the customer revenues produced through the promotion of one of its
products
Reasons for the state of perceived ethical business conduct being at its
present level:
o Publics expectations of ethical business behavior have increases
o Ethical business conduct may have declined


















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Chapter 5
Consumer behavior includes which of the following?
o Actions related to the purchase and use of a product
o Processes before and after purchases and use
o Metal and social processes
Information that is gathered about various products and brands in the
information search stage must be sorted out that alternatives can be
evaluated in the next stage of the purchases decision process
Locating information from ones own memory and knowledge is known
as a internal information search, whereas seeking outside sources of
information is an external information search.
Purchase decision process
o Problem recognition information search alternative
evaluation purchase decision post purchase behavior
The perception of a difference between a persons ideal and actual
situation is known as: Problem recognition
Consumer behavior: the actions a person takes in purchasing and using
products and services, including the mental and social processes that
come before and after these actions
After finding out what you want to you have to determine:
o When will you buy it
o Whom should he buy it from
Extended, limited and routine are variations of problem solving for
consumer decisions.

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Which of the following are major categories of influence on the purchase


decision process?
o Psychological and sociocultural influences
Evaluative criteria are products attributes that are used to compare
different offerings when making a purchase decision
The final step in retaining and building a loyal customer base in the
purchase decision process is the post purchase behavior stage
Market challenger in a low involvement product category should focus
on which of these strategies?
o Maintaining product quality, avoiding stockout situations,
repetitive advertising messages
The consumers consideration set is the group of brands that a consumer
would consider acceptable among all the brands of which he is aware
An external search is when the buyer seeks information outside his or
her personal knowledge base to help make the buying decision, such as
checking the internet, asking a friend, or visiting a showroom
Postpurchase is critical: because it measures and tracks satisfaction
A high involvement purchase will typically have which characteristics?
o Serious personal consequences, could reflect on ones social
imagine, requires extensive external search
Consideration set: the group of brands a consumer would consider
acceptable from among all the brands in the product class of which they
are aware of
After the consumer completes the problem recognition stage in the
purchase decision process, she then begins the information search stage
problem recognition is perceiving the difference between the actual
state and the ideal state

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Chapter 6
Marketing considered beneficial?
o Creates utility for customers
o Marketing can create global competition
Buy classes: straight rebuy, new buy, modified buy
Which of the following are true of a buying center?
o The buy class situation affects the number of people involved in
the center
o It consist of several individual with common goals and
knowledge pertaining to purchase decisions
Derived demand means that the demand for industrial products and
services is driven by or derived from
Purchase decisions
o Problem recognition info search alternative evaluation
purchase decision post purchase behavior
The decision making process organizations use in establishing a need for
products and choosing among different providers of them is called:
o Organizational buying behavior
Price, technical capability, and warranties are typical organizational
buying criteria used by industrial buyers to evaluate other firms
Which of the following are ways that the purchase decision stage of the
organizational decision process differs from the same stage for
customers?
o Lengthy negotiations may occur
o Multiple contracts for different suppliers of the same items may
be awarded.

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o Suppliers not chosen are told why


When several people in an organization participate in purchase
decisions, often for more important or expensive contracts, it is called
o Buying center
The industrial buying practice in which two organizations agree to
purchase each others products is known as reciprocity
Modified rebuy: occurs when an organizational buyer has purchased a
similar product in the past but has decided to change something like the
specifications, price, or supplier
Which of the following are typical in new buy buying situation?
o Decision time in lengthy
o The buying center includes more people.
For organizational buyers, supplier development results in
o Supplier products and capabilities that fit buyers needs
Straight rebuy occurs when and organizational buyer simply reorders
additional units of products with no changes from an approved supplier
A supply partnership lowers costs and increases value of products
through the adoption of:
o Mutually beneficial objectives, policies, and procedures between
buyers and sellers.
A list of firms believed to be qualified to supply a given itme to an
organizational buyer is known as a bidders list
The purchase stage is longer in the organizational buyer decision process
than it is for consumers
Which of the following are commonly used organizational buying
criteria?
o Past production, ability to meet delivery schedules, price

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Which of the following buy classes involves the greatest potential risk to
the buyer?
o New buy
The gatekeepers controls the flow of info and may prevent it fro
reaching other members of the buying center
An organizational buyer that requires ISO 9000 cert of its suppliers
benefits from
o Confidence in the consistence quality of its suppliers products
Which of the following are more true of the organizational buying
decision process, as compared to the consumer one?
o Supplier capability becomes more important
o More individuals are involved in the decision
Which of the following is the main reason that business organizations
buy products?
o To increase profitability
Within the buying center, you are considered the user when you are the
one using the product within your organization
Many companies have added new objectives in their organizational
buying decisions, including which two of the following?
o Buying from minority & women owned suppliers
o Including environmental initiatives
Depending on the product, there may be a person who acts as an
influencer in the buyer center, often by providing specifications for the
product being purchased or the vendor being considered
The evaluation of where an organization should purchase components
from outside suppliers or build them itself is known as a
o Make buy decision

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The systematic appraisal of the design, quality, and performance of a


product in order to reduce purchasing costs is known as a
o Value analysis
In the purchase decision stage of the organizational buying decision
process, the firm awards contracts to one or more of its preferred
suppliers
Which of the following are likely to participate in an organizations buying
center?
o Employee from another functional area
o The purchasing manager
The deciders role is sometimes fulfilled by the buyer in the buying
center, but sometimes is done by someone else for important technical
purchases
Firms selling to organizations buyers have far fewer potential customers
compared to firms selling to consumers.
The typical purchases involved in an organizational buying exchange is
larger in size than that in consumer buying
Both businesses and consumers perform some kind of evaluation of their
purchases after they are complete, but organizational buys are examined
more formally







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Chapter 7
Direct investment occurs when a domestic firm
o Chooses to create and own a foreign subsidiary or division
Global competition among firms exists when they originate, produce,
and market their products worldwide
Economic integration has been advanced by agreements like NAFTA
that promote trade between member nations
A joint venture is a global market-entry strategy that creates a
partnership between a local and foreign firm that will share
ownership, control, and profits from the new company
A tariff is a tax levied on a good imported into a country
Tariffs and quotas are the tools of protectionism, used by
governments to shield local industries from foreign competition
A quota designates the maximum quantities of a product that may be
brought into a country during a specified time period
Global brands are tailored to specific cultures and countries when
necessary, but typically offer consistent product formations and
advertising
Global expansion often begins with exporting. Using a local
intermediary to distribute the exported goods is known as: indirect
exporting
Direct investment is the riskiest type of global entry strategy
Joint ventures are frequently created when a government requires


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Chapter 8
The constraints on the activity, the data needed for decisions, and
how to collect data are all determined in which step of the
marketing research approach
o develop the research plan
select all of the following that are steps in the marketing research
approach
o define the problem, develop the research plan, collect
relevant info, develop findings, take marketing actions
a sales forecast refers to the total sales of a product that a firm
expects to sell during a specified time period under specified
environmental conditions and its own marketing efforts
put the parts of the fifth step in the marketing research approach
in order from first to last
o Make implement evaluate
Research are specific, measurable goals the decision maker seeks
to achieve in conducting the marketing research.
Marketing research includes which of the following
o Collecting data, analyzing data, recommending action
Marketing research can help you make a more informed decision,
which is defined as a conscious choice from among two or more
alternatives.
Which of these are part of the development of marketing research
plan?
o Specify constraints, determine how to collect data
A constraint in a decision is a restriction placed on potential
solutions to a problem, such as limit on time or money

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Which two of the following re key elements in deciding how to


collect data for marketing research?
o Concepts and methods
The approaches that can be used to collect data to solve all of part
of a problem are known as
o Methods
Which of the following are likey to be a part of descriptive
research?
o Trying to find the frequency that something occurs
o Finding the extent of a relationship between two factors
Setting the research objectives and identifying possible marketing
actions are both part of which step in the marketing research
approach?
o Define the problem
Marketing research is typically for which two of the following
related reasons?
o Improve decisions and reduce risk
A lost horse forecast is what type of sales forecasting technique
o Judgements of the decision maker
In setting research objective, marketers have to
o Be clear on the purpose of the research
In marketing, concepts are ideas about products and services, and
they are a key to deciding how to collect research data
Descriptive Research generally involved trying to find the
frequency that something occurs or the extent of a relationship
between two factors

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Chapter 9
The purpose of developing a market product grid is to trigger
marketing actions to increase sales and profit
Which two of the following are true of product positioning?
o In relation to competitive products
o It exists in the mind of the consumer
Perceptual map: a means of displaying in 2 dimensions the location
of products or brands in the minds of consumers
The market product grid can be used to identify both product and
market synergies that may be available
Demographic mentation groups consumers according to some
objective physical, measurable or other classification attribute or
prospective customers
Which of the following are typical psychographic variable used in
segmentation?
o Personality and lifestyle
The 80/20 rule helps marketers recognize the importance of
o Heavy users
Common segmentation basses include geographic and behavioral
variables
Which of the following are typical behavioral variable used in
segmentation?
o Usage rate, awareness

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After developing a market product grid and estimating market


sizes, the marketer should select target markets
If consumers taste shift, marketers may need to change how they
think about a product in a process known as repositioning
Head to head and differentiations are two approaches to
positioning
product positioning refers to the place a product occupies in the
consumers mind based on important attributes relative to
competitive brands
behavioral segmentation group consumers on basis of some
observable actions such as usage rate or importance of product
features
personality traits, lifestyles, and need of prospective customers
provide the bases for psychographic segmentation
which of the following are criteria used to select target markets?
o Cost of reaching, expected growth, competitive position










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Chapter 10
Which of the following are classifications of new products based upon
categorizing innovation according to the learning required of the
consumer?
o Dynamically continuous innovations
o Discontinuous innovation
o Continuous innovation
Crapola has a single product line that includes several varieties of
granola, including number 2
Consumer products are purchased by the ultimate consumer, whereas
business products are purchased by organization to assist them in
providing other products for sale
A product is a good, service or idea consisting of a bundle of tangible
and intangible attributes that satisfies consumers needs and is
received in exchange for money or something else of value
Which of the following are important points of view when considering
a products newness
o Newness in legal terms
The categories of continuous innovation, dynamically continuous
innovation, discontinuous innovation are based on level of consumer
o Learning
A good is a product that is defined as having tangible attributes
Among products, services are defined as intangible activities or
benefits that satisfy consumers needs
To determine if a product should be considered new, it can be
compared w/ existing products or its level or required consumer
learning may be considered.

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Which of the following should be included in a protocol for new


product development?
o Specific customer needs, wants preferences.
o A well defined target market
o What the product will be and do
Items that the consumer purchases frequently and w/ a minimum of
effort are known as convenience products
What must the consumer learn about when a new product is a
discontinuous innovation
o Previously un-encountered benefits
o Proper use of the product
Sales of business products are often the result of derived demand;
that is sales of business products frequently result from the sale of
consumer products.
A good is a type pf product that has tangible attributes that a
consumers five senses can perceive
Item that the consumer makes a special effort to search out and buy
are known as specialty products
Business products can be classified as which two of the following
o Components and support products
Items for which the consumer compares serval alternatives on criteria
like price, quality, or style are known as shopping products
For which of the following will consumer education be most
important, perhaps requiring personal selling to gain product trial?
o Discontinuous information
A product mix consists of all the product lines offered by an
organization

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Which of the following should be included in a protocol for new


product development?
o Well defined target market; specific customer needs, wants,
preferences; what the product will be and do

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