FSU MAR Midterm Exam (from mini quizzes & testbank)

A customer's decision to purchase one product over another is primarily to satisfy his/her ——-

needs or wants

Which of the following changes occurring in today's economy is not a consequence of the growth of the internet?

rising prices

Which of the following is NOT one of the 5 conditions of exchange in marketing?

immediate delivery

All of the following are reasons for the general decline in customer satisfaction over the past 20 years EXCEPT: ——

decreased product quality

________ refers to a mature market condition where products lack any real means to differentiate as products offer roughly the same benefits.

Commoditization

Amazon Prime seeks to offer time and place utility.

time and place utility

A cluster of closely related goods and services that center around a specific consumption activity is referred to as a ——-

metamarket

Customers will turn to the most convenient, least expensive alternative in situations where they see goods and services such as commodities.

convenient, least expensive alternative

Balanced strategic planning emphasizes all of the followings EXCEPT: ———

Feasibility of missions

________ firms are those that successfully generate, disseminate, and respond to market information.

Market-oriented

_______ statements answers 'What business are we in?' while _______ statements answers 'What do we want to become?'

Mission; Vision

While all marketing plans face a number of obstacles in development and implementation, _________ is by far the most commonly occurring obstacle across most firms.

inadequate communication

When a firm possesses capabilities that allow it to serve customers' needs better than the competition, the firm is said to have a ——

competitive advantage

Whether at the corporate, business-unit, or functional level, the planning process always begins with an in-depth ——

situation analysis

In a market oriented organizational structure, which of the following stays at the top?

Customers

Which of the following comes at the end of a strategic plan?

evaluation and control

___________ is part of a corporate culture that relates to an organization's expectations about appropriate conduct.

ethical climate

The Principles and standards that define acceptable marketing conduct as determined by the public, govt regulators, private-interest groups, competitors, and the firm itself are best known as Marketing ethics.

Marketing ethics

_________ is a broad concept that relates to an org's obligation to maximize its positive impact on society while minimizing its negative impact.

social responsibility

Being economically responsible is the basic social responsibility of any business. Yet, it has the immediate and direct effect on ——

shareholders

Through _____________ , managers can create customer relationships while also enhancing the natural environment.

customer relationships

green marketing

A deceptive marketing practice that involves misleading consumers into thinking that a product is more environmentally friendly than it actually is.

greenwashing

Should contain six highly desirable core values or principles.

Corporate codes of ethics

NOT one of the core values in corporate codes of ethics (values = trustworthiness, respect, and fairness).

Legality

The foundational type of responsibility is economic responsibilities.

pyramid of corporate social responsibility

In many buying situations, it is when the demand of one product depends on the demand of another product.

derived demand

Have the main advantage of lower costs compared to primary data.

secondary data

When a firm analyzes its objectives and performance, availability of resources, structural characteristics, and organizational culture.

Internal environment

A competitor that markets drinks that are similar in features and benefits.

brand competitor

Types include surveys, focus groups, and experiments.

primary data collection

Bicycles can solve the same basic need as automobiles, albeit with a very different product.

generic competition

A four-cell array used to categorize information at the conclusion of a SWOT analysis.

SWOT Matrix

Expansion and growth, with new products and new markets, key to Google's marketing strategy.

aggressive approach

Many firms focus on this in their marketing strategies because they possess many internal strengths and many external threats.

diversification

Defines good strategy as having characteristics like focus, divergence, and compelling tagline.

Blue Ocean Strategy

Identifies factors that the industry currently competes on and what customers receive from existing product offerings.

strategy canvas

Weaknesses can be converted into strengths with this.

strategic investment

Must recognize that its competencies give it an advantage over the competition.

target markets

Typically occur within the competitive, customer, economic, political/legal, technological, and/or sociocultural environments of the firm.

Opportunities and threats

Among the fundamental changes to marketing and business practice in today's economy is the dramatic increase in the availability of information. This increase in information has created a shift in the balance of power in the supply chain. Who now holds most of the power in today's economy?

customers

____________ is the curse of mature markets whereby products lack any real means of differentiation and customers see competing products as offering roughly the same benefits.

Commoditization

Which of the following changes occurring in today's economy has NOT been caused by the growth of the Internet?

rising prices for most products

Although mass media audiences are becoming increasingly fragmented, media fragmentation does have a major advantage. What is this advantage?

It is now easier to reach small, highly targeted audiences

Changing value propositions in today's economy-- such as changes caused by the growth in e-commerce-- have forced marketers to learn a tough lesson about customers. What is that lesson?

Customers will turn to the most convenient, least expensive alternative in situations where they see goods and services as commodities.

One of the major difficulties of conducting business in today's economy concerns the unclear legal jurisdiction surrounding many business transactions. The issue is especially keen for marketers who do business in:

international markets

In 2005, the American Marketing Association changed the definition of marketing that had stood for 20 years. The major changes in the definition included a shift from delivering the 4 Ps (product, price, place, promotion) to delivering __________ and a shift from creating exchanges to creating __________.

value; customer relationship

A cluster of closely related goods and services that center around a specific consumption activity is referred to as a:

metamarket

Edmunds.com provides a collection of online services and information pertaining to the automative market. Edmunds offers reviews, free pricing reports, discussion boards, and links to a variety of car manufacturers, dealers, insurance companies, and finance companies. What role does Edmunds.com play in today's economy?

metamediary

A customer's decision to purchase one product or group of products over another is primarily a function of:

how well that choice will fulfill that person's needs and satisfy his or her wants.

A product that provides the utmost in convenience is said to offer exceptional:

time and place utility

Furniture Mart offers services such as financing and home delivery to its customers. What type of utility is Furniture Mart trying to increase?

possession utility

What type of planning deals with specific markets or market segments and the development of marketing programs that will fulfill the needs of customers in those markets?

tactical planning

_____________ involves the analysis of economic, political, legal, technological, and cultural events and trends that may affect the future of the organization and its marketing efforts.

Environmental scanning

Many firms attempt to distinguish or differentiate their product offerings through the use of ____________ strategies. This involves establishing a mental image of the product offering relative to competing offerings in the minds of target buyers.

product positioning

Which of the following statements about pricing decisions in the marketing program is TRUE?

Price has a direct connection with customer demand

In the traditional transactional marketing approach, the ultimate goal of marketing is to:

acquire new customers and complete a large number of exchanges

All of the following are reasons for the general decline in customer satisfaction over the past 20 years EXCEPT:

Product quality is much lower now than at any time in the past

In the airline industry, companies like American, Delta, and US Air have a difficult time competing because their industry has become commoditized. What does this mean for firms in the airline industry?

There is very little differentiation among product offerings in the industry

Which of the following statements best describes the nature of a marketing plan?

It clearly outlines the organization's marketing activities

Whether at the corporate, business-unit, or functional level, the planning process always begins with an in-depth:

a situation analysis

When creating a corporate vision statement, organizations are attempting to answer which of the following questions:

What do we want to to become?

Which of the following is one of the five basic questions that a good mission statement should answer?

What is our operating philosophy?

Sears at one time lost sight of its mission and jumped into markets such as real estate and financial services that did not fit its strengths or core operations. This most likely occurred because Sears lacked a mission statement with the appropriate:

width

All organizations need a ____________, the central scheme for utilizing and integrating resources in the areas of production, finance , research, and development, HR, and marketing to carry out the organization's mission and achieve desired goals and objectives.

corporate strategy

When a firm possesses capabilities that allow it to serve customers' needs better than the competition, the firm is said to have a:

competitive advantage

With respect to developing a marketing plan, what does it mean for a marketing plan outline to be consistent?

The outline should have some connection to other functional area plans

In a marketing plan, the executive summary should be a complete but concise overview of the entire marketing plan because:

most readers of a marketing plan are busy and value condensed information

In developing a marketing plan, the section on goals and objectives defines the parameters by which the firm will measure actual performance. In this respect, the goals and objectives section is tied closely to the ____________ section of the marketing plan.

evaluation and control

Motorola continuously establishes performance standards and assesses actual performance by comparing it with these standards. Afterwards, Motorola often takes corrective action to reduce any discrepancies. This process is most likely outlined in the __________ section of Motorola's marketing plan.

evaluation and control

Which of the following is NOT a purpose of a marketing plan?

It explains how marketing activities mesh with other functional areas

While all marketing plans face a number of obstacles in development and implementation, _____________ is by far the most commonly occurring obstacle across most firms

inadequate communication

In the context of marketing planning, why is it vital that the marketing plan be capable of selling itself to top management?

Because top managers must decide whether the marketing plan is best use for the organization's scarce resources

Focusing on customers has not always been the hallmark of strategic planning. In fact, in the early 20th century, firms tended to focus strictly on ____________ rather than on developing relationships with customers.

efficiency and quality

In today's business environment, firms that truly focus on customers instill a corporate culture that places customers and other stakeholders at the top of the organizational hierarchy. When this occurs, the firm shifts its focus from transactions to _______, and from _______ to collaboration.

relationships; competition

______ firms are those that successfully generate, disseminate, and respond to market information.

Market-oriented

In a truly market-oriented organization, what is the role of the CEO?

To ensure that his or her employees have everything they need to perform their jobs well

Many firms have shifted to balanced strategic planning because traditional planning and measurement approaches are not able to capture:

the value created by an organization's intangible assets

The Balanced Performance Scorecard cautions business leaders to look at strategy and performance through four interrelated perspectives. Which of the following is NOT one of these perspectives?

vision and strategy perspective

__________ is a broad concept that relates to an organization's obligation to maximize its positive impact on society while minimizing its negative impact.

social responsibility

Being economically responsible is the most basic social responsibility of any business. This responsibility has the most immediate effect on:

shareholders

The principles and standards that define acceptable marketing conduct as determined by the public, government regulators, private-interest groups, competitors, and the firm itself are termed:

marketing ethics

Ben & Jerry's is well known for its use of _________ in that it ties its products and marketing strategy to social causes such as environmental stewardship.

cause-related marketing

Some companies choose to engage in a deceptive marketing practice called ______, which involves misleading consumers into thinking that a product is more environmentally friendly than it actually is.

greenwashing

The role of ethics in marketing strategy can be distilled into one word. Without __________, marketers run the risk of alienating stakeholders and inviting financial ruin.

trust

Which of the following is NOT a challenge associated with being ethical and socially responsible?

Most employees perceive that the value of honesty, respect, and trust are infrequently applied in the workplace

Each of the following is a potential product-related ethical issue EXCEPT:

Invasion of privacy

____________, which occurs when a firm charges different prices to different customers, occurs in both consumer and business markets. However, it is very common among different members of the supply chain.

price discrimiation

Many large firms, such as Walmart, Home Depot, Lowe's, and Barnes & Noble, have been accused of predatory pricing because their business practices have put many local, mom-and-pop firms out of business. In reality, these large firms are not necessarily guilty of predatory pricing. Why?

Because the large firms have efficient cost structures and lower variable costs

Colgate promotes its toothpaste using a claim that states "helps fight plaque and gingivitis." What potential ethical issue does Colgate have with respect to its promotional strategy?

ambiguous statements

With respect to regulating marketing ethics, a key advantage of self-regulatory programs like the Better Business Bureau is the fact that they are:

less costly and more practical to implement

Most firms that experience ethical or legal problems actually have a code of conduct or an ethical compliance program in place. Why is it that these firms can still have ethical problems despite having a code of ethics or compliance program?

Their codes are typically not integrated into daily decision making

Research has found that corporate codes of ethics should contain six highly desirable core value or principles. Which of the following is NOT one of these core values?

legality

Why is the connection between marketing ethics and leadership so important in nurturing a strong ethical culture?

Employees look to the leader as a model of acceptable behavior

The link between marketing ethics/ social respnsiblity and firm performance has been documented repeatedly over time. This link is most evident in firms that have a strong

ethical climate

Research indicated that being ethical and socially responsible has a number of benefits for the organization. Which of the following is NOT one of these benefits>

Increased competitive orientation

Essentially, having a climate of ethics and social responsibility is all about creating trust among a firm's stakeholders. To gain trust, the firm and its employees must continuously uphold:

their standards of integrity

Socially responsible firms tend to enjoy higher ___________ because customers perceive that the firm is dedicated to doing the right thing and treating customers fairly.

customer loyalty

To ensure that ethics and social responsibility are throughly incorporated into the firm's strategic planning process, the firm's ___________ should never be silent about ethical requirements

marketing plan

With respect to conducting a situation analysis, which of the following is NOT one of the four important issues to keep in mind?

all bits of data are relevant no matter how minor they may seem