Chapter 1 Flashcards
1.
According to the American Marketing Association, which of the following is NOT a component of marketing?
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(a) Creating
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(b) Communicating
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(c) Delivering
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(d) Computing
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(e) Exchanging
(d) Computing
Which of the following best describes the personal value equation?
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(a) value = benefits received + (price + hassle)
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(b) value = benefits received + price - hassle
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(c) value = benefits received - price + hassle
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(d) value = benefits received - (price + hassle)
(d) value = benefits received - (price + hassle)
A company that believes the best way to compete is by reducing production costs is:
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(a) Market oriented
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(b) Production oriented
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(c) Selling oriented
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(d) Product oriented
(b) Production oriented
Which era is characterized by heavy emphasis on advertising and selling?
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(a) Production era
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(b) Marketing era
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(c) Selling era
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(d) Value era
(c) Selling era
.
Kraft Macaroni and Cheese was developed during the Great Depression as a:
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(a) Product-oriented offering
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(b) Value-based offer
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(c) Social marketing campaign
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(d) One-to-one marketing strategy
(b) Value-based offer
The entire bundle of a tangible good, intangible service, and price is known as:
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(a) Marketing mix
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(b) Value proposition
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(c) Offering
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(d) Product orientation
(c) Offering
In marketing, communicating involves:
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(a) Describing the offering to potential customers
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(b) Learning from customers
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(c) Educating potential customers about the value of an offering
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(d) Making customers aware of where they can find a product
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(e) All of the above
(e) All of the above
9.
All the organizations that participate in the production, promotion and delivery of a product from the producer to the end consumer is:
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(a) Logistics
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(b) Supply chain
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(c) Exchange
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(d) Marketing plan
(b) Supply chain
What is social marketing?
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(a) Marketing conducted by social media influencers
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(b) Promoting products through social media platforms
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(c) Marketing to achieve social change
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(d) Marketing for social events and gatherings
(c) Marketing to achieve social change
11.
The idea that a company’s marketing efforts should improve the well-being of society is known as:
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(a) Marketing concept
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(b) Product orientation
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(c) Societal marketing orientation
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(d) Selling orientation
(c) Societal marketing orientation
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Engaging in practices that diminish the earth’s resources to the least extent possible is:
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(a) Social responsibility
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(b) Sustainability
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(c) Service-dominant logic
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(d) Ethics
(b) Sustainability
1.
What is a value proposition?
a) A financial statement detailing a company’s assets.
b) A succinct statement of why consumers buy your brand.
c) A pricing strategy that maximizes profit.
d) An advertising slogan.
b) A succinct statement of why consumers buy your brand.
.
What does positioning refer to in marketing?
a) The physical location of a product in a store.
b) The price point of a product relative to competitors.
c) How your offering’s product, price, promotion, and place compare to others in the marketplace.
d) The logistical placement of goods for efficient distribution.
c) How your offering’s product, price, promotion, and place compare to others in the marketplace.
Segmentation is best described as:
a) Dividing people into groups based on shared characteristics.
b) Targeting all consumers with a single marketing message.
c) Positioning a product in the high-end market.
d) Ignoring customer differences to achieve economies of scale.
a) Dividing people into groups based on shared characteristics.
.
What is a marketing plan?
a) A short-term sales forecast.
b) A document detailing a company’s financial performance.
c) A strategic plan at the functional level that provides a firm’s marketing group with direction.
d) An outline of the company’s production processes.
c) A strategic plan at the functional level that provides a firm’s marketing group with direction.
5.
In the context of the marketing plan outline, what should the executive summary include?
a) Detailed financial projections.
b) A brief description of the market, product to be offered, value proposition, strategy behind the plan, key budget items, and other important information.
c) A comprehensive history of the company.
d) Legal disclaimers and terms of service.
b) A brief description of the market, product to be offered, value proposition, strategy behind the plan, key budget items, and other important information.
6.
What is the purpose of a SWOT analysis in the context of a marketing plan?
a) To analyze social media trends.
b) To assess a company’s strengths and weaknesses relative to a market and offering.
c) To evaluate the supply chain.
d) To measure employee satisfaction.
b) To assess a company’s strengths and weaknesses relative to a market and offering.
7.
What is market potential?
a) A company’s internal sales targets.
b) Total industry-wide sales expected in a particular product category for the time period of interest.
c) The estimated cost of entering a new market.
d) The potential for a company to expand internationally.
b) Total industry-wide sales expected in a particular product category for the time period of interest.
What is sales potential?
a) Maximum total revenue a company hopes to generate from a product or the number of units of it the company can hope to sell.
b) The potential for a company to reduce its sales costs.
c) The total number of sales representatives a company can hire.
d) A measure of customer satisfaction with the sales process.
a) Maximum total revenue a company hopes to generate from a product or the number of units of it the company can hope to sell.
9.
What is the sales force composite forecasting method?
a) A forecast based on estimates of sales in a given time period gathered from all of a firm’s salespeople.
b) A method of compensating sales teams based on performance.
c) A strategy for improving sales team morale.
d) A system for tracking sales data.
a) A forecast based on estimates of sales in a given time period gathered from all of a firm’s salespeople.
In time series techniques, what is trend analysis?
a) Analyzing customer feedback to identify popular trends.
b) Identifying the rate at which a company’s sales have grown in the past and using that rate to estimate future sales.
c) Tracking the latest trends in social media.
d) Evaluating the performance of sales teams over time.
b) Identifying the rate at which a company’s sales have grown in the past and using that rate to estimate future sales.
Why is accuracy important for forecasting?
a) To minimize marketing expenses.
b) To accurately set sales quotas.
c) If demand is overestimated, the company would unnecessarily spend money and if demand is underestimated, the company would not have enough supply, and other competitors will steal their sales.
d) To impress investors.
c) If demand is overestimated, the company would unnecessarily spend money and if demand is underestimated, the company would not have enough supply, and other competitors will steal their sales.
What does a marketing audit involve?
a) A financial review of marketing expenses.
b) An examination or snapshot of the state of a company’s marketing strategies as they are actually implemented.
c) An assessment of employee satisfaction within the marketing department.
d) An analysis of social media engagement metrics.
b) An examination or snapshot of the state of a company’s marketing strategies as they are actually implemented.
3.
What is brand equity?
a) The physical assets associated with a brand.
b) The legal protections afforded to a brand name.
c) The value of the brand.
d) The cost of creating a brand identity.
c) The value of the brand.
What is market capitalization?
a) A measure of a company’s profitability.
b) Total stock of the world that is available to buy.
c) The total value of a company’s assets.
d) A calculation of marketing expenses.
b) Total stock of the world that is available to buy.
What does analyzing the external environment involve?
a) Assessing a company’s internal strengths and weaknesses.
b) Tracking conditions in the macro and micro marketplace.
c) Reviewing past marketing campaigns.
d) Evaluating employee performance.
b) Tracking conditions in the macro and micro marketplace.
What are the components of the macro environment?
a) Competition, suppliers, and customers.
b) Marketing intermediaries, the public, and the company.
c) Economic factors, demographic trends, cultural/social trends, political/legal regulations, technological changes, price and availability of natural resources.
d) Internal strengths, weaknesses, opportunities, and threats.
c) Economic factors, demographic trends, cultural/social trends, political/legal regulations, technological changes, price and availability of natural resources.
What is the purpose of primary research?
a) To analyze existing market reports.
b) To gather original data through interviews and surveys.
c) To review academic literature.
d) To compile government statistics.
b) To gather original data through interviews and surveys.
What is the focus of market penetration strategies?
a) Entering new markets with existing products.
b) Creating new products for existing customers.
c) Increasing a firm’s sales of its existing products to its existing customers.
d) Diversifying into unrelated industries.
c) Increasing a firm’s sales of its existing products to its existing customers.
Market development strategies involve:
a) Launching new products for existing customers.
b) Enhancing the features of current products.
c) Focusing on entering new markets with existing products.
d) Improving customer service.
c) Focusing on entering new markets with existing products.
What does a diversification strategy entail?
a) Entering new markets with new products or doing something outside a firm’s current businesses.
b) Focusing on a single product line.
c) Targeting a specific customer segment.
d) Streamlining operations to reduce costs.
a) Entering new markets with new products or doing something outside a firm’s current businesses.
What are tactics in marketing?
a) Long-term strategic goals.
b) Specific actions, such as coupons, television commercials, banner ads, BOGO, etc.
c) Broad marketing philosophies.
d) Financial metrics for measuring success.
b) Specific actions, such as coupons, television commercials, banner ads, BOGO, etc.
What is the BCG matrix used for?
a) To analyze employee performance.
b) To evaluate each of a firm’s strategic business units based on market growth rate and relative market share.
c) To track customer satisfaction.
d) To manage supply chain logistics.
b) To evaluate each of a firm’s strategic business units based on market growth rate and relative market share.
3.
In the BCG matrix, what is a “star”?
a) A product with low growth and low market share.
b) A product with low growth and high market share.
c) A product with high growth and high market share.
d) A product with high growth and low market share.
c) A product with high growth and high market share.
.
In the BCG matrix, what is a “cash cow”?
a) A product with high growth and low market share.
b) A product with low growth and a high market share.
c) A product with high growth and high market share.
d) A product with low growth and low market share.
b) A product with low growth and a high market share.
.
In the GE approach, what does a “green light” indicate?
a) Harvest or divest products.
b) Hold market share.
c) Build market share; invest in new products, market, or technology.
d) Reduce marketing expenses.
c) Build market share; invest in new products, market, or technology.
What is the purpose of the PEST analysis?
a) To evaluate a company’s internal strengths and weaknesses.
b) To assess the political, economic, social, cultural, and technological factors in the business climate.
c) To analyze competitive strategies.
d) To measure customer satisfaction.
b) To assess the political, economic, social, cultural, and technological factors in the business climate.
What is the meaning of Geodemographics?
a) Plotting geographic marketing information on a map
b) Segmenting buyers by the frequency that they use/buy products
c) combines demographic and geographic information for marketing purposes
d) Segmenting buyers by the benefits that they seek from the product
c) combines demographic and geographic information for marketing purposes
Which of the following is NOT a stage in the buying process?
a) Need recognition
b) Search for Information
c) Advertising
d) Product Evaluation
c) Advertising
Derived demand is best defined as:
a) Occurs when demand for one product increases the demand for another
b) A small change in demand by consumers can have a big effect throughout the chain of businesses that supply all the goods and services that produce it
c) Demand that is derived from a source other than the primary buyer of a product
d) A type of conditioning of consumer’s decisions
c) Demand that is derived from a source other than the primary buyer of a product
What is Marketing Research?
a) It is just a narrower activity
b) Process of collecting, analyzing, and reporting marketing information that can be used to answer questions or solve problems to improve a company’s bottom line
c) Measure the satisfaction of your channel partners
d) None of the above
b) Process of collecting, analyzing, and reporting marketing information that can be used to answer questions or solve problems to improve a company’s bottom line
.
What is Reliability in the RATER model?
a) Service provider’s ability to respond to consumes’ interests and desires
b) Degree to which the consumer can trust the service provider to live up to promises
c) Ability to deliver a specific level of quality over a number of trials
d) Often signal consumers that they have received a high-quality service
c) Ability to deliver a specific level of quality over a number of trials
Technology Platform can be defined as:
a) A group of related offerings
b) The core technology on which it is built
c) How many offerings there are in a single product line
d) None of the above
b) The core technology on which it is built
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Why should market research be performed?
a) Build it and they will come
b) To avoid long-term strategic goals
c) To prevent marketing to the mutual benefit of both parties
d) Good marketing educates customers so that they can find the products they want, make better choices about those products, and extract the most value from them
d) Good marketing educates customers so that they can find the products they want, make better choices about those products, and extract the most value from them
Which one is NOT one of the stages in the B2B buying process?
a) A need is recognized
b) Potential Suppliers are Searched For
c) The proposals are evaluated and supplier(s) selected
d) Customer’s intentions or estimates
d) Customer’s intentions or estimates
Which is NOT the function packaging has to fulfill?
a) Communicating the brand and its benefits
b) Protecting the product from damage and contamination during shipment, as well as damage and tampering once it’s in retail outlets
c) Preventing leakage of the contents
d) Providing discount codes
d) Providing discount codes
What are the four Ps of marketing?
a) Product, Price, Place, and Production
b) Product, Price, Place, and Promotion
c) Production, Price, Place, and Promotion
d) Product, Price, Place, and Payment
b) Product, Price, Place, and Promotion
What are the three goals for understanding the customer in order?
a) Understanding the customer’s wants and needs; how the customer wants to acquire, consume, and dispose of the offering; and what makes up their personal value equation
b) Understanding the customer’s wants and needs; what makes up their personal value equation; and how the customer wants to acquire, consume, and dispose of the offering
c) What makes up their personal value equation; how the customer wants to acquire, consume, and dispose of the offering; and understanding the customer’s wants and needs
d) How the customer wants to acquire, consume, and dispose of the offering; understanding the customer’s wants and needs; and what makes up their personal value equation
a) Understanding the customer’s wants and needs; how the customer wants to acquire, consume, and dispose of the offering; and what makes up their personal value equation
38.
What does the personal value equation take into account?
a) The standard measure of customer satisfaction
b) That each person will like a dish more or less depending on their own personal tastes
c) It is only the tangible good that the company provides
d) The benefits an individual receives minus the price the consumer paid and the time and effort the person expended making the purchase
d) The benefits an individual receives minus the price the consumer paid and the time and effort the person expended making the purchase
What is a company’s offering?
a) It is the total stock of the world that is available to buy
b) The intangible service that the company provides
c) The price that the company determines
d) The entire bundle of a tangible good, intangible service, and price that composes what a company offers to customers
d) The entire bundle of a tangible good, intangible service, and price that composes what a company offers to customers
.
The way to compete is to build relationships with customers one at a time and seek to serve each customer’s needs individually is best known as?
a) The exchange process
b) Segmentation
c) Building relationships with customers
d) The Marketing Mix
c) Building relationships with customers
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In the 3 C’s, which factor sets the floor?
a) Customer Factors
b) Competitor Factors
c) Cost Factors
d) All of the above
c) Cost Factors
APPLICATION A local bakery is known for its high-quality ingredients and unique recipes. However, they are struggling to attract younger customers. Which of the following marketing mix adjustments would best address this issue?
a. Lowering prices to match competitors.
b. Launching a social media campaign showcasing the bakery’s traditional baking methods.
c. Introducing a line of trendy, Instagram-worthy pastries and promoting them through social media.
d. Opening a second location in an older, more established neighbourhood.
c. Introducing a line of trendy, Instagram-worthy pastries and promoting them through social media.
A non-profit organisation, the “Eco-Warriors,” aims to promote responsible disposal of electronic waste. Which of the following strategies would be considered social marketing?
a. Lobbying the government to pass stricter environmental regulations.
b. Running a public awareness campaign on the dangers of improper e-waste disposal and providing convenient recycling drop-off locations.
c. Partnering with electronics manufacturers to offer discounts on new products to customers who trade in their old devices.
d. Organising community clean-up events to collect illegally dumped e-waste.
b. Running a public awareness campaign on the dangers of improper e-waste disposal and providing convenient recycling drop-off locations.
3.
A small, family-owned clothing boutique prides itself on providing personalised service and building relationships with its customers. However, they are facing increasing competition from large online retailers. Which of the following strategies would best leverage their strengths and differentiate them from competitors?
a. Investing in a sophisticated e-commerce platform with advanced data analytics capabilities.
b. Implementing a loyalty program that rewards repeat customers with exclusive discounts and personalised styling advice.
c. Expanding their product line to include a wider variety of clothing styles and accessories.
d. Launching a large-scale advertising campaign to increase brand awareness.
b. Implementing a loyalty program that rewards repeat customers with exclusive discounts and personalised styling advice.
A tech start-up has developed a revolutionary new fitness tracker that offers advanced features and highly accurate data. However, they have a limited marketing budget. Which of the following communication strategies would be the most effective in reaching their target audience?
a. Purchasing a Super Bowl commercial to generate mass awareness.
b. Partnering with fitness influencers and bloggers to review the product and create engaging content.
c. Placing print ads in health and fitness magazines.
d. Sponsoring a local marathon to reach a targeted audience of runners.
b. Partnering with fitness influencers and bloggers to review the product and create engaging content.
A major automobile manufacturer is facing criticism for its environmental impact and lack of transparency in its manufacturing processes. Which of the following actions would best demonstrate a commitment to social responsibility and improve its brand image?
a. Launching a marketing campaign highlighting the fuel efficiency of its latest models.
b. Investing in research and development of electric vehicles and implementing sustainable manufacturing practices.
c. Sponsoring a charitable event to raise money for environmental causes.
d. Issuing a press release acknowledging its past shortcomings and pledging to do better in the future.
b. Investing in research and development of electric vehicles and implementing sustainable manufacturing practices.
A software company is preparing to launch a new version of its flagship product. Which of the following activities would be considered part of communicating the offering?
a. Negotiating contracts with suppliers to secure the lowest possible production costs.
b. Conducting market research to identify customer needs and preferences.
c. Developing a pricing strategy that maximises profitability.
d. Creating a series of online tutorials and webinars to educate customers about the new features and benefits of the software.
d. Creating a series of online tutorials and webinars to educate customers about the new features and benefits of the software.
A restaurant wants to improve its personal value equation for its target customers. Which of the following actions would most likely achieve this goal?
a. Increasing prices to reflect the rising cost of ingredients.
b. Reducing portion sizes to minimise food waste.
c. Offering a loyalty program that rewards frequent diners with discounts and exclusive perks.
d. Cutting back on staff to reduce labour costs.
c. Offering a loyalty program that rewards frequent diners with discounts and exclusive perks.
A retail company is considering expanding into a new international market. Which of the following factors should be considered when developing a global marketing strategy?
a. The company’s existing marketing plan and budget.
b. The cultural, economic, and political differences between the home market and the new market.
c. The availability of qualified marketing personnel in the new market.
d. The company’s production capacity and supply chain infrastructure.
b. The cultural, economic, and political differences between the home market and the new market.
An online retailer is experiencing high rates of cart abandonment. Which of the following actions would be most likely to improve the exchange process and increase sales?
a. Implementing a stricter return policy to reduce costs.
b. Offering a wider variety of payment options and simplifying the checkout process.
c. Increasing prices to improve profit margins.
d. Reducing customer service hours to lower operating expenses.
b. Offering a wider variety of payment options and simplifying the checkout process.
.
An established brand of breakfast cereal wants to reposition itself to appeal to health-conscious consumers. Which of the following strategies would be most effective in achieving this goal?
a. Launching a new advertising campaign that emphasises the cereal’s traditional taste and nostalgic appeal.
b. Reformulating the cereal to reduce sugar content and add more whole grains and fibre.
c. Lowering the price to compete with generic brands.
d. Discontinuing the cereal and launching a completely new product line.
b. Reformulating the cereal to reduce sugar content and add more whole grains and fibre.
A company specialising in high-end luxury watches decides to release a new, more affordable line targeting younger consumers. This is an example of:
a. Cannibalisation.
b. A brand extension.
c. A product mix contraction.
d. Vertical integration.
b. A brand extension
A local gym aims to attract more customers during off-peak hours. Which of the following strategies would be most effective in influencing the “time” situational factor?
a. Redesigning the gym layout to improve the workout experience.
b. Offering discounted membership rates for customers who sign up for off-peak hour sessions.
c. Partnering with local businesses to offer exclusive deals to their employees.
d. Implementing a stricter dress code to create a more professional atmosphere
b. Offering discounted membership rates for customers who sign up for off-peak hour sessions.
A business-to-business (B2B) software company wants to expand its reach in a new international market. Which of the following is a key consideration for their global marketing strategy?
a. Maintaining the same pricing strategy as in the domestic market.
b. Understanding the local cultural and regulatory environment.
c. Ignoring the competition to focus on their unique selling points.
d. Using the same advertising campaigns as in the domestic market.
b. Understanding the local cultural and regulatory environment
.
A company is launching a new line of organic baby food. To build trust and credibility with parents, which element of the RATER model should they focus on?
a. Tangibility, by using attractive packaging and displays.
b. Responsiveness, by offering quick and helpful customer service.
c. Assurance, by obtaining certifications and highlighting the expertise of their nutritionists.
d. Empathy, by sponsoring parenting workshops and support groups.
c. Assurance, by obtaining certifications and highlighting the expertise of their nutritionists
A mobile phone company decides to use “shock advertising” in its new campaign. What is the primary goal of this strategy?
a. To promote the phone’s features and specifications.
b. To increase selective attention and improve information retention.
c. To appeal to consumers’ emotional needs and desires.
d. To create a humorous and entertaining advertising message.
b. To increase selective attention and improve information retention
.
A company selling luxury handbags uses influencer marketing on social media. Which societal factor are they primarily trying to leverage?
a. Family influences.
b. Reference groups and opinion leaders.
c. Social class divisions.
d. Subcultural differences.
b. Reference groups and opinion leaders
.
A consumer consistently purchases the same brand of coffee without much thought or comparison shopping. This is an example of:
a. Routine response behaviour.
b. Extensive problem solving.
c. Impulse buying.
d. Limited problem solving.
a. Routine response behaviour
A marketing team uses “geocoding” as part of its strategy. What kind of segmentation are they using?
a. Demographic.
b. Psychographic.
c. Geographic.
d. Behavioural.
c. Geographic
A company reduces the price of its product during an economic recession. What situational factor are they responding to?
a. Mood.
b. Social situation.
c. Time.
d. Economic situation.
d. Economic situation
A marketing manager gathers data on customer demographics, past purchases, and website activity to create targeted advertising campaigns. This is an example of using:
a. Qualitative research.
b. Ethnography.
c. Big data.
d. Projective techniques.
c. Big data
