Marketing Chapters 1 - 5

marketing

activity, set of institutions, and processes fro creating, communicating, delivering and exchanging offerings that have value for customers, clients, partners, and society

exchange

people giving up something to receive something else they would rather have

An exchange can only take place if

1. There must be at least 2 parties

2. Each party has soemthing of value to exchange

3. Each party can communicate and deliver

4. Each party can reject or accept offer

5. Each party believes it’s appropriate (desirable to deal with other party)

production orientation

focus on firm’s internal capablities rather than on desires and needs of the marketplace

sales orientation

belief that people will buy more goods and services if aggressive sales techniques are used and that high sales result in in high profits

marketing orientation

social and economic justification for an organization’s existence is the satisfacton of customer wants and needs while meeting organizational objectives

societal marketing

organization exists not only ot satisfy customer wants and needs and meet organizational objectives, but also to preserve/enhance individuals’ or society’s long term best interests

customer value

relationship between benefits and the sacrifice necessary to obtain those benefits

customer satisfaction

customers’ evaluation of a good or service in terms of whther it has met thier needs or expectations

relationship marketing

keeping and improving relationships with current customers

elements of value

1. Functional (works, saves time, low effort, organizes)

2. Emotional (reduce anxiety, good product design, entertainment)

3. Life changing (value provides hope, motivation)

4. Social Impact

empowerment

delegation of authority to solve customers’ problems quickly (usally first person customers notify)

customer relationshio management

company wide business strategy designed to optimize profitability, revene, and customer satisfaction by focusing on highly defined and precise customer groups

big data

discovery, interpretation and communication of meaningful patterns in data

on demand marketing

delivering relevant experiences, integrated across both physical and virtual environments throught the consumers’ decision and buying process

Dofasco, Inc., a highly successful steel company in Ontario, tries to get ahead of business and community issues by annually bringing together representatives from the local area and deciding which projects to improve the local environment will be implemented. This annual community-wide meeting indicates Dofasco has a  ___ orientation.

 a) societal marketing

 b) production

 c) product

 d) sales

 e) reciprocal exchange

a) societal marketing

Which marketing management philosophy focuses on the question, “What do customers want and need?”

 a) Product

 b) Sales

 c) Internal

 d) Promotion

 e) Market

e) market

A sales-oriented firm places minimal emphasis on:

 a) promotional strategies.

 b) pricing strategies.

 c) building long-term customer relationships.

 d) personal selling and direct selling activities.

c) building long-term customer relationships

A company that sets its goals and strategies based on what its current equipment can produce, what products engineering can design, and what the company itself can do best, has a(n)_______ orientation.

 a) production

 b) exchange

 c) marketplace

 d) sales

 e) market

a) production

The American Marketing Association’s definition of marketing:

 a) is limited to promotional activities

 b) relies on the synergy created by exchange

 c) focuses on the value of empowerment, teamwork, and customer value

 d) shows how marketing benefits the marketer

 e) includes creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

e) includes creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large

Which of the following occurs when people give up something in order to receive something they would rather have?

 a) Transformation

 b) Synergy

 c) Exchange

 d) Leveraging

 e) Reciprocity

c) exchange

A customer's evaluation of a good or service in terms of whether it has met their needs and expectations is called_____________.

 a) Philanthropy

 b) Relationship Marketing

 c) Customer Satisfaction

 d) Exchange

 e) CRM

c) customer satisfaction

A company-wide business strategy designed to optimize profitability, revenue, and customer satisfaction by focusing on highly defined and precise customer groups is known as _________________.

 a) On-Demand Marketing

 b) Customer Relationship Management (CRM)

 c) Societal Marketing Concept

 d) Value

 e) Exchange

b) customer relationship management (CRM)

_____________ marketing is a strategy that focuses on keeping and improving relationships with current customers.

 a) On-demand

 b) Relationship

 c) Product

 d) Business

b) relationship

According to your textbook, "Marketing is a part of the job of everyone in the organization.  Therefore, a basic understanding of marketing is important to all businesspeople".

 True

False

true

With hospitals nationwide facing budget cuts and slimmer profit margins, Dekalb County’s Medical Center decided to cash in on one of the most consistently profitable services––delivering babies. It initiated a three-­year project to build a $55 million state-of-­the-­art women’s center with 18 labor and delivery suites. When the hospital decided to commit its resources to obstetrics, it was engaging in:

 a) benchmarking

 b) portfolio evaluation

 c) tactical control

 d) strategic planning

 e) alternative problem solving

d) strategic planning

In the context of a marketing mix, the product strategy involves which of the following?

 a) point of purchase

 b) price of the product

 c) warranty

 d) personal selling

c) warranty

A _____ is a study conducted by an organization to identify its internal strengths and weaknesses and also examine external opportunities and threats.

 a) SBU

 b) strategic alternative selection

 c) SWOT analysis

 d) marketing audit

 e) competitive advantage audit

c) SWOT analysis

Golden Valley Microwave Foods, Inc. is the manufacturer of ACT II popcorn. In its early years, the company had trouble financing the development and marketing of products for the microwave, so it chose to participate in a financial arrangement in which it agreed that it would not sell ACT II popcorn in supermarkets or grocery stores. Which element of the marketing mix was most influenced by this arrangement?

 a) Place

 b) Promotion

 c) Product

 d) Price

 e) Public relations

a) place

The _____ is the unique blend of product, place, promotion, and pricing strategies designed to produce mutually satisfying exchanges with a target market.

 a) product line

 b) marketing mix

 c) internal environmental mix

 d) market portfolio

 e) product mix

b) marketing mix

 iTunes has a(n) _____, as they have exclusive agreements with some of the most sought after music corporations that other digital music stores do not have.

 a) targeted market position

 b) SBU

 c) sustainable competitive advantage

 d) cost competitive advantage

 e) strategic focus

c) sustainable competitive advantage

Which of the following strategies represent the practice of increasing sales by introducing new products into new markets?

 a) Market Development

 b) Product Development

 c) Market Penetration

 d) Diversification

d) diversification

A _______________ answers the question "What business are we in?"

 a) Sustainable Competitive Advantage

 b) Environmental Analysis

 c) Marketing Plan

 d) Mission Statement

d) mission statement

According to the Boston Consulting Group, a __________ is an SBU with low growth potential and a small market share.

 a) Star

 b) Dog

 c) Problem Child

 d) Cash Cow

b) dog

________ are the moral principles or values that generally govern the conduct of an individual or group.

 a) Social responsibility

 b) Sustainability

 c) Ethics

 d) Norms

c) ethics

The idea that socially responsible companies will outperform their peers by focusing on the world's social problems and viewing them as opportunities to build profits and help the world at the same time is known as:

 a) Sustainability

 b) Green Marketing

 c) Ethics

 d) Legal Responsibility

a) sustainablity

Tod's shoe company gives a pair of shoes away to those in need for every pair it sells.  This is an example of:

 a) SWOT Analysis

 b) Cause-related Marketing

 c) Virtue

 d) Green Marketing

B) cause-related marketing

A business's concern for society's welfare is called...

 a) Ethics

 b) Sustainability

 c) Corporate Social Responsibility

 d) Green Marketing

c) corporate social responsibility

Bunny Bunny ice cream created biodegradable containers for its products.  This practice is known as...

 a) Green Marketing

 b) Cause-related Marketing

 c) Code of Ethics

 d) Norms

a) green marketing

In which stage of ethical development are people less concerned about how others might see them and more concerned about how they see and judge themselves over the long run?

 a) Postconventional Morality

 b) Preconventional Morality

 c) Sustainability

 d) Conventional Morality

a) postconventional morality

Studies show that the greater the number of persons affected by a negative outcome, the ________ likely that marketers will recognize the problem as unethical.

 more

less

more

A guideline to help marketing managers and other employees make better decisions is called a ____________.  This guideline helps employees identify what their firm recognizes as acceptable business practices.

 a) law

 b) pyramid of social responsibility

 c) code of ethics

 d) deontological theory

c) code of ethics

In which component of the Pyramid of Social Responsibility are companies expected to obey the law?

 a) Ethical responsibilities

 b) Economic responsibilities

 c) Philanthropic responsibilities

 d) Legal responsibilities

d) legal responsibilities

Which ethical theory states that social responsibility is paying attention to the interest of every affected stakeholder in every aspect of a firm's operation?

 a) Sustainability theory

 b) Stakeholder theory

 c) Deontological theory

 d) Moral Relativism theory

b) stakeholder theory

_______ is a group of people or organizations for which an organization designs, implements, and maintains a marketing mix intended to meet the need of that group, resulting in mutually satisfying exchanges.

 A) target Market

 b) Environmental Analysis

c) Demographic

d) SWOT Analysis

a) target market

Paulina is an eleven-year-old girl. She spends a lot of time on social media and likes mobile games. Paulina is most likely to be a:

 a) Gen Xer

 b) Tween

 c) Baby Boomer

 d) Millennial

b) tween

Which of the following is an example of demographic information?

 a) Moral Values

 b) Hobbies

 c) Level of Intelligence

 d) Age

d) age

Component lifestyles are:

 a) creating demand for products that meet diverse needs

 b) reducing the complexity of buyer behavior.

 c) making consumers non-discriminating and less demanding.

 d) increasing the demand for low-priced mediocre products.

a) creating demand for products that meet diverse needs

The American demographic profile is.....

 a) not likely to change in the future

 b) mostly stagnant

 c) rapidly changing

 d) shows significant decline in population

c) rapidly changing

Which of the following is a factor in the Economic Environment?

 a) federal , state, and local laws

 b) consumer incomes

 c) demographics

 d) technological advancements

b) consumer incomes

Organizations must constantly watch for changes in federal, state, and local laws that could influence how they do business.  This type of monitoring is which part of environmental analysis?

 a) Technological Factors

 b) Social Factors

 c) Political and Legal Factors

 d) Economic Factors

c) political and legal factors

The process of gathering the environmental data to identify future market opportunities and threats is called ____________.

 a) target marketing

 b) competitive analysis

 c) component lifestyles

 d) environmental scanning

d) environmental scanning

Often, 20% of a firm's customers produce _____ of the firm's revenue.

 a) 80%

 b) 20%

 c) 50%

d) 100%

a) 80%

________ factors include our attitudes, values and lifestyles.

 a) Political

 b) Environmental

 c) Economic

 d) Social

d) social

Which term refers to understanding international marketing opportunities, using effective global marketing strategies, and knowing the threats from foreign competitors in all markets?

a) global vision

b) global marketing

c) outsourcing

d) inshoring

a) global vision

Marketing that aims at markets across the world is called _________.

a) global marketing

b) outsourcing

c) inshoring

d) regional marketing

a) global marketing

Which of the following refers to the total market value of all final goods and services produced in a country during a given time period?

a) gross domestic product

b) intermediate product

c) final product

d) international commerce

a) gross domestic product

GE has been in the news lately for _____, or bringing back the production of GE appliances to its Louisville, Kentucky plant from China.

a) inshoring

b) offshoring

c) insourcing

d) importing

a) inshoring

Which of the following is/are the benefits of outsourcing?

a) cost saving

b) corporate growth

c) increase in productivity and revenue growth

d) all of these are correct

d) all of these are correct

Which of the following statements is true of globalization?

a) It expands economic freedom and increases the living standards of people

b) It increases prices and decreases product and service quality.

c) It has curbed the growth of the middle class in developing countries.

d) It leads to a monopoly of domestic producers.

a) it expands economic freedom and increases the living standards of people

A company that is heavily engaged in global trade, beyond exporting and importing, is called ___________.

a) regional firm

b) a multinational corporation

c) a capital intesive firm

d) an export agent

b) multinational corporation

Which statement is true of global marketing standardization?

a)  Consumers worldwide don’t want the same things.

 b) Companies utilizing global marketing standardization have different foreign market segments with different products.

c) the markets throughout the world are becoming more alike

d) Companies must differentiate their offerings to satisfy different target markets.

c) the markets throughout the world are becoming more alike

Which of the following statements is true of the term boycott?

 a) It refers to a limit on the amount of a specific product that can enter a country.

 b) It refers to a tax levied on the goods entering a country.

c) it refers to the exclusion of all products from certain countries or companies

d) It refers to an agreement to stimulate international trade.

c) it refers to the exclusion of all products from certain countries or companies

Which of the following is true about the European Union (EU)?

 a) All consumer and industrial goods exported to EU countries are no longer subject to tariffs.

 b) European Union (EU) is a trade agreement instituted in 2005 that includes Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua, and the United States.

 c) European Union (EU) does not maintain a common trade policy with outside nations and a regional development policy.

d) European Union (EU) is one of the world’s most important free trade zones and now encompasses most of Europe. It has member countries such as Austria, Belgium, Bulgaria, the Czech Republic, Denmark, France and so on, and it guarantees the freedom of movement of people, goods, services, and capital between member states

d) European Union (EU) is one of the world’s most important free trade zones and now encompasses most of Europe. It has member countries such as Austria, Belgium, Bulgaria, the Czech Republic, Denmark, France and so on, and it guarantees the freedom of movement of people, goods, services, and capital between member states

social control

any means used to maintain behavioral norms and regulate conflict

behavioral norms

standards of proper or acceptable behavior

ethics

moral principals or values that generally govern the conduct of an individual or group

social controls important to marketing

1. ethics

2. laws

3. formal + informal groups

4. self regulation

5. the media

6. active civil society

deontological theory

ethical theory stating that people should adhere to their obligations and duties when analyzing an ethical dilemma

utilitarian ethical theory

founded on the ability to predict the consequences of an action

act utilitarianism

most ethical to perform the act that benefits the most people

rule utilitarianism

most ethical to perform the act that follows laws and fairness

casuist ethical theory

compares current ethical dilemmas with examples of similar ethical dilemmas and their outcomes

moral relativism

time and place ethics, ethical truth depends on the individuals and groups holding them

virtue

character trait valued as being good

morals

rules people develop as a result of cultural values and norms

factors that effect ethical decision making

1. extent of ethical problems in the organization

2. top managements’ actions on ethics

3. potential magnitude of consequences

4. social consensus

5. probability of harmful outcome

6. length of time between decision and the onset of consequences

7. number of people affected

code of ethics

guideline to help employees make better decisions

Foreign Corrupt Practices Act

prohibits US corporations from making illegal payments to public officials of foreign governments to obtain business rights or enhance busienss dealings in other countries

corporate social responsibility

a business’ concern for society’s welfare

stakeholder theory

ethical theory stating that social responsibility in paying attention to the interest of every affected stakeholder in ever aspect of a firm’s operations

pyramid of corporate social responsibility

model that suggests corporate social responsibility is composed of economical, legal, ethical, and philanthropic responsibilities and that a firm’s economic performance supports the entire structure

green marketing

development and marketing of products designed to minimize negative effects on the physical environment or to improve the environment

sustainibility

idea that socially responsible companies will outperform their peers by focusing on the world’s social problems and viewing them as opportunities

greenwashing

adding a minimal number of green product attributes to promote a product as green

cause related marketing

cooperative marketing efforts between a for profit firm and a non profit

target market

a group of people or organizations for which an organization designs, implements, and maintains a marketing mix intended to meet the needs of that group, resulting in mutually satisfying exchanges

environmental scanning

the continual collection and evaluation of environmental information to identify market opportunities or threats

demography

study of people’s vital statistics (age, gender, race, location)

pop culture

the products and forms of expression and identity that are frequently encountered or widely accepted, commonly liked, or approved, and charactersitc of a particular society at a given time

diversity

people’s race, religion, gender, ethnicity, nationality, socioeconomic status, age, and abilities

equity

fairness in procedures, processes, and distribution of resources

inclusion

the act of including people of diverse backgrounds

purchasing power

comparison of income vs the relative cost of a standard set of goods and services in different geographic areas

inflation

measure of the decrease in the value of money, expressed in percentage reduction in value since the previous year

recession

period of economic activity characterized by negative growth, reduces the demand for goods and services

4 Stages of Innovating, disruptive technology

Stage 1: Signals Amidst the noise (New tech comes out but isn’t disruptive, little to no impact on business)

Stage 2: Change takes hold (core tech + economic factors of disruptor are validated, need new footholds in tech)

Stage 3: Inevitable transformation (shift resources to new ventures)

Stage 4: Adapting to the new normal (disruption has fundamentally changed the space, those who didn’t adapt are pushed out)

basic/pure research

research that aims to confirm an existing thoery or to learn more about a concept or phenomenon

applied research

research that attempts to develop new or improved products

Common Product Safety Commission

federal agency established to protect the health and safety of consumers in and around their homes