331 Marketing Principles of Marketing Test Bank Replacement 1. _________________ is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others. a. Management b. Economics c. Marketing d. Demand _______ are the form human needs take as they are shaped by culture and individual personality. a. Demands. b. Wants. c. Services. d. Exchanges. Demands are wants that are backed by: a. coercion. b. greed. c. exchanges. d. buying power. Anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need is called a(n) _____________. a. demand. b. basic staple. c. product. d. service. A(n) _______________ is any activity or benefit that one party can offer to another that is essentially intangible and does not result in the ownership of anything. a. demand b. basic staple c. service d. product Customers do not often judge product values and costs accurately or objectively. Instead, they act on ___________________. a. customer satisfaction. b. customer quality. c. needs. d. perceived value. Marketing occurs when people decide to satisfy needs and wants through ________. a. exchange. b. selling. c. transaction. d. relationships. A(n) ______________ consists of a trade of values between parties. a. sale b. exchange c. transaction d. market
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When you pay your local grocery store $2.00 for a gallon of milk, this is a classic illustration of which of the following forms of a transaction? a. Monetary transaction. b. Barter transaction. c. Social transaction. d. Consensual transaction. The concepts of exchange and relationships lead to the concept of a market. A market is thought to be: a. wherever a marketer sells products. b. the set of actual buyers of a product. c. the set of actual and potential buyers of a product. d. square in the middle of the city. If Yosemite National Park becomes badly overcrowded during the summer vacation season, the Federal Government might have to undertake a ___________________ campaign to reduce crowding. a. public relations b. regulation program c. demarketing d. relationship marketing The _______________ holds that consumers will favor products that are available and highly affordable (therefore, work on improving production and distribution efficiency). a. product concept b. production concept c. production cost expansion concept d. marketing concept The _________________ holds that consumers will favor products that offer the most quality, performance, and innovative features. Thus, an organization should devote energy to making continuous product improvements under this concept. a. marketing concept b. production concept c. selling concept d. product concept The James Manufacturing Company, which manufactures blank cassette tapes, has found that its market is rapidly shrinking. The advent of CDs, DVDs, and MP3s has caught the attention of teenage buyers. Even automobile companies are beginning to delete cassette tape players from their latest models. Which of the following concepts has historically been practiced by firms such as James Manufacturing that have unsought goods or overcapacity? a. The marketing concept. b. The product concept. c. The production concept. d. The selling concept. ____ holds that achieving organizational goals depends on determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than do competitors. a. The marketing concept. b. The product concept. c. The selling concept. d. The societal marketing concept.
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The business philosophy that seeks a balance between satisfying short-run consumer wants and ensuring long-run consumer welfare is: a. the marketing concept. b. the societal marketing concept. c. the selling concept. d. the product concept. Mass marketing has been characterized as: a. adapting a product to a small group of people which has enormous profit potential. b. selling in a customized way to a global market. c. selling in a standardized way to any customer who comes along. d. selling in a standardized way to niche markets. _______________ is the process of developing and maintaining a strategic fit between the organization's goals and capabilities and its changing marketing opportunities. a. Strategic planning b. Strategic control c. Strategic networking d. Functional development Questions such as "What is our business?" and "Who is the customer?" are generally answered in a company's: a. objectives. b. plan. c. portfolio. d. mission statement. A ________ mission statement defines the business in terms of satisfying basic consumer needs. a. product-oriented. b. production-oriented. c. employee-oriented. d. market-oriented. The _____________________ is the collection of businesses and products that make up the company. a. business strategy group b. business portfolio c. business cartel d. business organization If an organization were to identify a unit of the organization that has a separate mission and objectives and that can be planned independently from other company businesses it would be called a(n): a. strategic business unit. b. control unit. c. product/market expansion unit. d. development unit. If a company (in reviewing its product/market expansion grid), decides to pursue new demographic markets and expand into new geographic markets with current products, the company would be following which of the following general strategies? a. Market penetration. b. Market development. c. Product development. d. Diversification.
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If a company (considering its options on the product/market expansion grid) chooses to move into different unrelated fields (from what it has ever done before) with new products as a means to stimulate growth, the company would be following which of the following general strategies? a. Market penetration. b. Market development. c. Product development. d. Diversification. Starbucks has recently developed a coffee ice cream with Breyer's and bottled its Frappuccino drinks with PepsiCo. These would be examples of which of the following general strategies? a. Market penetration. b. Market development. c. Product development. d. Diversification. To succeed in today's competitive marketplace, companies must: (pick the best answer) a. invent at least one new product per year. b. expand internationally. c. be customer centered. d. carry discounted merchandise. ________ consists of dividing a market into distinct groups of buyers on the basis of needs, characteristics, or behavior who might require separate products or marketing mixes. a. Product differentiation. b. Market segmentation. c. Market targeting. d. Market positioning. _____________ is arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers. a. Market segmentation b. Market differentiation c. Market targeting d. Market positioning A firm that dominates a market strategically is referred to as: a. the market leader. b. the market challenger. c. the market follower. d. the market nicher. Firms following a _______ strategy seek stable market shares and profits by closely matching the competition's product offers on prices and marketing programs. a. market leader b. market challenger c. market follower d. market nicher Product, price, place, and promotion are all controllable tactical marketing tools found in the company's _____________. a. positioning plan. b. marketing analysis division. c. marketing support system. d. marketing mix.
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__________ includes the company activities that make the product available to target customers. a. Product b. Price c. Place d. Promotion In which of the following marketing mix variables would one find the advertising and personal selling functions? a. Product. b. Price. c. Place. d. Promotion. Considerations for discounts, trade-in allowances, and varying terms of credit are all part of which element of the marketing mix? a. Product. b. Price. c. Place. d. Promotion. ____ outlines the broad marketing logic by which the business unit hopes to achieve its marketing objectives and the specifics of target markets, positioning, and marketing expenditure levels. a. Marketing strategy b. Objectives and issues c. The current market situation d. Action programs The ______________________ is the actors and forces outside marketing that affect marketing management's ability to develop and maintain successful transactions with its target customers. a. marketing organization b. marketing system c. marketing network d. marketing environment Which of the following terms best describes the environment that includes the forces close to the company that affect its ability to serve its customers--the company, suppliers, marketing channel firms, customer markets, competitors, and publics? a. Microenvironment. b. Macroenvironment. c. Global environment. d. Networked environment. _________________ helps the company to promote, sell, and distribute its goods to final buyers. a. Suppliers b. Competitor networks c. Marketing intermediaries d. Service representatives Firms that buy goods and offer them again for sale at a profit are typically from which type of customer market? a. Business market. b. Government. c. Service market. d. Reseller market.
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There was a major increase in the annual birthrate in the United States following World War II. This increase lasted until the 1960s. The people born during this time period were called: a. Birth Busters. b. Baby Busters c. Generation X d. Baby Boomers. The _________________ environment contains institutions and other forces that affect society's basic values, perceptions, preferences, and behaviors. a. natural b. cultural c. business d. consumer A _________________ consists of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers. a. management information system b. marketing information system c. financial information system d. management intelligence plan Which of the following information forms available to the marketing manager can usually be accessed more quickly and cheaply than other information sources? a. Marketing intelligence. b. Marketing research. c. Internal databases. d. Customer profiles. ______________ is everyday information about developments in the marketing environment that helps managers prepare and adjust marketing plans. a. Marketing research b. Internal company records c. Competitor analysis d. Marketing intelligence The systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization is called: a. internal company records. b. marketing research. c. marketing implementation. d. marketing intelligence. ______ is information that already exists somewhere, having been collected for another purpose. a. Experimental information b. External information c. Primary data d. Secondary data _________________ is information collected for the specific purpose at hand. a. Experimental information b. External information c. Primary data d. Secondary data
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The most widely used method for primary data collection is called: a. observational research. b. survey research. c. experimental research. d. mechanical research. When personal interviewing involves inviting six to ten people to gather for a few hours a with trained interviewer to talk about a product, service, or organization, the method is called: a. selective sponsorship. b. probing. c. focus group interviewing. d. the Delphi method. When a marketing research organization chooses a segment of the population that represents the population as a whole, they have chosen a _______________. a. group. b. bi-variant population. c. sample. d. market target. All the individuals and households who buy or acquire goods and services for personal consumption are called the ____________________. a. total market. b. consumer market. c. reseller market. d. demand market. In the stimulus-response model of consumer buying behavior, the ____________ is where marketing (and other) stimuli enter and produce a certain response(s). a. consumer's value chain b. consumer's cognitive schema c. consumer's black box d. consumer's thoughts-emotions network ________________ exerts the broadest and deepest influence on consumer behavior. a. Culture b. Social class c. Personality d. Lifestyle A(n) ___ is a person's pattern of living as expressed in his or her activities, interests, and opinions. a. role b. lifestyle c. position d. status The theory of motivation that views needs as hierarchically ordered from lower ones to higher ones was developed by: a. Pavlov. b. Freud. c. Maslow. d. Jung.
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If a consumer develops "second-thoughts" after they have purchased a product because of new information they have received about unchosen product alternatives, they will be experiencing what is called: a. learning depression syndrome. b. variety-seeking conclusions. c. consumer grief. d. postpurchase dissonance. If General Mills (known for its cereal products) sells such products as specialty chemicals directly to businesses which will then use the chemicals to make other products, General Mills is selling to a(n): a. consumer market. b. dry goods market. c. private sector market. d. business market. _____________ usually face more complex buying decisions than in other forms of buying. a. Business buyers b. Consumer buyers c. Online buyers d. Service buyers In a _______________, the buyer reorders something without any modifications. a. habitual rebuy b. straight rebuy c. modified rebuy d. new task buy The ______________ is made up of governmental units (such as federal, state, and local) that purchase or rent goods and services for carrying out the main functions of government. a. government market b. institutional market c. organizational market d. service market The ________________ is made up of schools, hospitals, nursing homes, prisons, and other institutions that provide goods and services to people in their care. a. international market b. bureaucracy market c. social index market d. institutional market Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers is called: a. mass marketing. b. target marketing. c. market segmentation. d. market positioning.
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When General Motors designs specific models for different income and age groups, it is practicing which of the following marketing formats? a. Micromarketing. b. Niche marketing. c. Mass marketing. d. Segment marketing. As an example of _______________, a company could make sport utility vehicles and direct marketing efforts towards the luxury SUV market (as does Lexus). a. micromarketing b. niche marketing c. mass marketing d. segment marketing When Secret (brand of deodorant) developed a product specially formulated for a woman's body chemistry, it was practicing which of the following forms of segmentation? a. Usage. b. Gender. c. Psychographic. d. Behavioral. __________ is the process of dividing a market into different groups based on social class, lifestyle, or personality characteristics. a. Psychographic segmentation b. Behavioral segmentation c. Psychological segmentation d. Gender segmentation Products purchased frequently, immediately, and with a minimum of comparison and buying effort are called: a. convenience products. b. consumer products. c. shopping products. d. specialty products. Products for which the consumer usually compares with others on price, suitability, quality, and style are typically called: a. convenience products. b. specialty products. c. shopping products. d. unsought products. A(n) ____ is a name, term, sign, symbol, or design, or a combination of these intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors. a. product feature b. sponsorship c. logo d. brand A manufacturer has four sponsorship options with respect to branding. A ____ is a brand created and owned by a reseller of a product or service. a. licensed brand b. manufacturer's brand c. private brand d. co-brand
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If Pillsbury and Oreo cookies go together to design and sponsor a new baking product, then the companies are using which of the following brand sponsorship options? a. Licensed branding. b. National branding. c. Store branding. d. Co-branding A ________________ is the way consumers perceive an actual or potential product. a. product idea b. product image c. product concept d. product feature Introducing a new product and marketing program to more realistic market settings following functional and consumer approval is carried out at which new product development stage? a. Idea generation. b. Screening. c. Marketing strategy. d. Test marketing. The ______________ is characterized by five distinct stages: product development, introduction, growth, maturity, and decline. a. adoption cycle b. fashion process c. product life cycle d. style curve In terms of special product life cycles, a _________________ only lasts for a short time, are adopted with a great deal of zeal, peak early, and decline very fast. a. genre b. style c. fashion d. fad A __________ tend(s) to grow slowly, remain popular for a while, and then decline slowly. a. genre b. style c. fashion d. fad _____________ is the sum of the values that consumers exchange for the benefits of having or using the product or service. a. Elasticity b. Price c. Demand d. Value estimate The type of market that consists of many buyers and sellers trading in a uniform commodity such as wheat or copper is called: a. pure competition. b. monopolistic competition. c. oligopolistic competition. d. pure monopoly.
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____________ is a measure of the sensitivity of demand to changes in price. a. Price sensitivity b. Price comparability c. Price response d. Price elasticity If demand changes greatly with a small change in price, we can say that the demand is classified as being: a. neutral. b. elastic. c. kinked. d. inelastic. Which of the following retail stores practically defined the everyday low pricing concept? a. McDonald's. b. Wendy's. c. The Gap. d. Wal-Mart. Companies bringing out an innovative, patent-protected product face the challenge of setting prices for the first time. They can choose between two strategies: a. good-value and a premium pricing strategy. b. market-skimming and market-penetration pricing. c. market-competitive and market-loss pricing. d. good-value and economy pricing strategy. The process of setting a high price for a new product to gain maximum revenues layer by layer from the segments willing to pay the high price is called: a. market-penetration pricing. b. market-layer pricing. c. market-saturation pricing. d. market-skimming pricing. ______________ is setting a price for products that must be used along with a main product, such as blades for a razor. a. Optimal-product pricing b. Captive-product pricing c. By-product pricing d. Product line pricing A set of interdependent organizations involved in the process of making a product or service available for use or consumption by the consumer or business user is called a(n): a. retailer. b. wholesaler. c. distribution channel. d. logistics. When producers, wholesalers, and retailers act as a unified system, they comprise a: a. conventional marketing system. b. power-based marketing system. c. horizontal marketing system. d. vertical marketing system.
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___________ means more and more product and service producers are bypassing intermediaries and going directly to final buyers. a. Parallel retailing b. Market segregation c. Intermediary pruning d. Disintermediation Advertising, personal selling, sales promotion, public relations, and direct marketing are all considered to be tools in which of the following? a. Persuasion mix. b. Marketing communications mix. c. Intelligence mix. d. Personal communications mix. If a company wants to build a good "corporate image," they will probably use which of the following marketing communications mix tools? a. Advertising. b. Public relations. c. Direct marketing. d. Sales promotion. ______________ is the concept under which a company carefully integrates and coordinates its many communications channels to deliver a clear, consistent, and compelling message about the organization and its products. a. Direct marketing b. The promotion mix c. The marketing mix d. Integrated marketing communications Of the nine elements in the communications process, the four major communication functions are described as being: a. sender, receiver, media, and noise. b. message, media, noise, and feedback. c. encoding, decoding, response, and feedback. d. encoding, feedback, sender, and receiver. With respect to message design, the AIDA formula consists of: a. attention, interest, desire, and action. b. awareness, interest, demand, and action. c. attention, interest, display, and authority. d. attitude, involvement, demand, and action. ___________ is any paid form of nonpersonal presentation and promotion of ideas, goods, and services by an identified sponsor. a. Promotion b. Sales promotion c. Advertising d. Public relations
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Visa recently advertised that many merchants do not accept American Express in the hopes that consumers would realize that Visa had a superior card because of its broader acceptability. This would be an example of which of the following advertising forms? a. Informative advertising. b. Comparative advertising. c. Reminder advertising. d. Psychological advertising. The measure of how many times the average person in the target market is exposed to the message is called: a. reach. b. frequency. c. impact. d. performance. _________________ combines sight, sound, and motion; appeals to the senses; and, has a low cost per exposure as advantages. a. Newspapers b. Television c. Direct Mail d. Radio A marketing services firm that assists companies in planning, preparing, implementing, and evaluating all or portions of their advertising programs is called a(n): a. public relations firm. b. interdepartmental communications firm. c. networking firm. d. advertising agency. _________________ is short-term incentives to encourage purchase or sales of a product or service. a. Advertising b. Sales promotion c. Online advertising d. Public relations If a consumer buys a new computer printer and then sends in a proof of purchase to the manufacturer to receive a cash award. This award is called a(n): a. premium. b. coupon. c. rebate. d. price pack (cents-off-deal).
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100. ________________ is a major promotion function whose objective is to build good relations with the company's various publics. a. Advertising b. Publicity c. Public relations d. Specialty events