Marketing Fundamentals Midterm Answer Key Part 1

Marketing Fundamentals Midterm Study Guide CHAPTER 1 QUESTIONS: Q: The purpose of the introduction of 3M Post-it Flag Highlighters was to - stay ahead of trends and focus its marketing program on only one segment. - help college students with their studying. - preempt a competitive move by Sanford’s Sharpie to introduce a similar product. - increase production economies of scale by reducing manufacturing and marketing costs for Post-it Flags and Post-it Notes. Q: Environmental forces refer to the - internal strengths of a company that enable the firm to remain competitive. - marketing manager’s uncontrollable forces in a marketing decision involving social, economic, technological, competitive, and regulatory forces. - marketing manager’s uncontrollable factors—product, price, promotion, and place—that can be used to solve marketing problems. - unpredictable or uncontrollable availability of natural resources that can enhance or restrain a company’s growth. - marketing manager’s control forces in a marketing decision involving social, economic, technological, competitive, and regulatory forces. Q: Innovators at 3M developed Scotchbrite Greener Clean scrub sponges made from agave leaves. Customers appreciate this superior product (they don’t rust or scratch) and like the fact that their purchase is environmentally responsible, making this an example - the social marketing concept. - capitalism. - target markets. - the marketing concept. - consumerism. Q: The place strategy in 3M’s marketing program made it convenient for _____ to buy Post-it Flag Highlighters andPost it Flag Pens. - college students and office workers - office workers only - teachers only - college students only - external salespeople only Q: When a company uses advertising on Instagram, this tactic is part of the ______ element of the marketing mix. - promotion - product - place - process - price Q: A business traveler joined the Starwood Preferred Guest Program in order to earn points each time he stayed overnight in a Westin or Sheraton hotel. Once he has accumulated enough points, he can trade in his points for a free night’s stay. As a member of this program, the traveler receives periodic updates on new hotels and learns of ways to earn additional points. For Starwood, this scenario is best described as ______. - a supplier-consumer partnership. - relationship marketing. - customer segmentation. - customer valuation. - customer satisfaction promotion. Q: The founders of Bombas created the company based on a need for its initial product in - The visual arts - Homeless shelters - Recreational sports - Higher education - Industrial manufacturing Q: The five major environmental forces in a marketing decision are - Climate change, natural resources, pollution, natural disasters and global conflict - Ethics sustainability, cultural awareness, diversity, and values - Social, technological, economic, competitive, and regulatory - Corporate ownership, internal management, supplier partnerships, strategic alliances, and customer relationships - Product , price, promotion, and people Q: Marketing refers to the - Strategies used in the advertising and promotion and products and services to customers around the globe - Process of identifying target market segments for a product or service and using selling tactics to reach them Activity involved in getting a product or service from the manufacturer to ultimate consumers and organizational buyers Production of products or services that will generate the highest return on investment Activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. Q: A need refers to a - Feeling of vague lacking but not fully understanding what may be required - Sense of personal inadequacy based upon observations by others around you - Feeling of deprivation of basic necessities such as food, clothing, and shelter - Sense of urgency which causes a person to take action - Feeling that is shaped by a person’s knowledge, culture or personality Q: Utility refers to the - Variable costs associated with the production of a single unit of a product within a product line - Fixed costs associated with the production of a single unit of a product within a product line - Number of alternative uses or benefits that can be provided by a single product or service - Benefits or customer value received by users of the product - Adaptability of a marketing program to adjust to changes in the marketing environment Q: Which of these is not an environmental force? - Economic - Social - Technological - Commercial - Regulatory Q: According to the text, Target has been successful by offering consumers the best - Availability - Experience - Price - Products/services - Customer service Q: When a company uses advertising on Instagram, this tactic is part of the ____ element of the marketing mix. - Process - Place - Product - Price - Promotion Q: A skydiving experience cannot be touched like a physical object, but it is still considered a product. To a marketer, this is an example of a - Utility - Idea - Value - Service - Production Q: American Express cardholders have early access to early presales for Ariana Grande concert tickets in many cities. What utility does American Express offer in this instance? - Market utility - Place utility - Possession utility - Time utility - Form utility Q: Customer value refers to - The unique combination of benefits received by targeted buyers that includes quality, convenience, on-time-delivery, and both before-sale and after-sale service at a specific price - The cluster of benefits that an organization promises customers to satisfy their needs - A statement that before product development begins, identifies (1) a will-defined target market, (2) specific customer needs, wants, and preferences, and (3) what the product will be and do to satisfy customers - The need of a customer to receive the highest quality product at the lowest possible price - The least expensive product that will provide most of the basic benefits Q: In addition to the give-back program, Bombas socks are attractive to consumers because they - Are among the least expensive products available - Have been engineered for superior comfort - Are made of entirely natural and vegan ingredients - Are conveniently sold in mass merchandise stores like Walmart and Target - Are considered the most fashion forward in the category Q: A want refers to a - Sense of a personal inadequacy based upon observations by others around you - Need that is shaped by a person’s knowledge, culture, or personality - Feeling of being deprived of something but not fully understanding what it may be - Powerful desire that causes a person to take action - Feeling of deprivation of basic necessities such as food, clothing, and shelter Q: Trader Joes is consistently ranked as one of America’s favorite supermarket chains for its outstanding ______, including personal attention from employees in the store. - Relationship marketing - Customer experience - Internal marketing - Customer profiling - Customer value proposition Q: A product - Is a good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfy consumers’ needs and is received in exchange for money or something else of value - Is the cluster of benefits that an organization promises customers to satisfy their needs - Consists of the benefits of customer value received by its sellers - Consists of items that the consumer purchases frequently, conveniently, and with a minimum of shopping effort. - Is the set of intangible activities or benefits that an organization provides to satisfy consumers’ needs in exchange for money or something else of value. Q: A target market refers to - One or more specific groups of potential consumers toward which an organization directs its marketing program - Customers who have already purchased a firm’s product at least once, have been satisfied, and are likely to be repeat purchasers - Existing or potential consumers who are seeking a product for which there are no current substitutes - A specific group of current consumers toward which an organization directs its advertising - Both existing and potential customers who have used a competitor’s product, are dissatisfied, and who now seek a different product or service to satisfy their needs Q: A student wants to buy a smartphone so she can share pictures with her friends. An insurance claim adjuster wants to buy a smartphone to document accidents (take pictures, write a report, etc.). If they both purchase the same model smartphone, such as an Apple iPhone, which statement is most accurate? - Both the adjuster and the student are prospective customers because, in their own ways, they both benefit from the smartphone - The student is the prospective customer since there are more students buying smartphones for personal use than there are insurance adjusters buying a smartphone to business use - Only a person who has bought a smartphone previously is a prospective customer because only previous owners of smartphones benefit from buying new ones - The adjuster is the prospective customer because the smartphone will be used for work: the student is only a secondary user since the purpose of the smartphone is just for entertainment - Neither the adjuster nor the student is a prospective customer since the company will pay for the adjuster’s smartphone and the student’s parents will pay for hers Q: Social responsibility is the - Idea that individuals and organizations are accountable to a larger society - Fundamental, passionate, and enduring principles of an organization that guide its conduct over time - Recognition of the need for organizations to improve the state of people, the planet, and profit simultaneously if they are to achieve sustainable, long-term growth - View that organizations should satisfy the needs of consumers in a way that provides for society’s well-being - Idea that an organization should strive to satisfy the needs of consumers while also trying to achieve the organization’s goals Q: Shawn wants to eat a Cool Mint Chocolate Clif Bar because, based on his past experience, he knows it will satisfy his hunger - Expression - Perception - Preference - Need - Utility Q: Redbox places vending machines at local convenience and grocery stores that allow customers to rent and return popular movies and video games 24 hours a day. This creates both ____ and ____ utilities - Time, possession Form, place Form, time Form, possession Place, time CHAPTER 2 QUESTIONS: Q: The marketing program, step 3 in the strategic planning process, answers which question? - Why - How - Who - When - What Q: Netflix is a company that rents DVD movies and television programming either by mail or streaming over the internet. It faces many competitors but continues to grow both in the United States and abroad. Part of what has driven success in recent years is its original content, with shows like Ozark, and Space Force, popular programming that cannot be seen elsewhere. Its original content provides Netflix’s - Competitive advantage - Tactical innovation - Viable mission - Sales orientation - Core benefit Q: Which of these statements about strategy is most accurate? - The American Marketing Association (AMA) recently has established the definition of strategy - Strategy is an organization’s short-term course of action designed to deliver a specific customer experience which achieving its internal standards - An organization can be all things to all people because it has access to all the resources it needs to discover and satisfy the needs and wants of its target markets - Only start up organizations must develop strategies to help them raise capital as well as focus and direct their efforts to accomplish their goals. - The marketing department helps to both set an organization’s directions and move it there. Q: The two major aspect of the evaluation phase of the strategic marketing process are - Segmenting the market and selecting target markets - Designing the marketing mix and setting the budget - Establishing a business mission and designing measurable goals and objectives - Comparing the results of the marketing program with the goals to identify deviations and acting on them - Executing the marketing plan and designing the marketing organization Q: A planning gap is the difference between the projection of the path to reach a new sales revenue goal and the projection of the path of a plan already in place. The ultimate purpose of the firm’s marketing program is to ____ this planning gap. - Calculate the contribution margin of - Determine the sales differential of - Fill in - Calculate the marginal trend of - Create the break-even point for Q: Men’s wearhouse caters to the man who doesn’t necessarily enjoy shopping. Its stores are in free-standing locations (not inside the mall) so customers can get in and out quickly. Additionally, Men’s Wearhouse targets the budget-conscious consumer with the suit prices ranging from $150-$850. The location of its stores and its pricing strategy both are part of Men’s Wearhouse’s - Core values - Competitive advantage - Core benefit proposition - Viable mission - Marketing edge Q: Based on the sales revenue date shown in figure 2-10, as a marketing manager for Apple, you would most likely conclude that - The actual sales results (line BE) underperformed the 2009 plan (line BD) Sales have slowed significantly since 2009 (line BC) The planning gap is narrowing The actual sales results (line BE) tracked fairly well with the 2009 plan (line BD) The 2009 plan (line BD) was far too aggressive and could not be achieved Q: A part of the key role of marketing is to - Operate at the corporate level - Manage executives - Support the board of directors - Deliver strategic business decisions - Look outward by listening to customers Q: LEGO has traditionally been successful selling its classic construction sets to boys. Recently, LEGO introduced a line of building toys especially for girls called LEGO Friends. It includes feminine characters, pink and purple theme colors, and allows girls to construct more storyrelated activities. Considering Figure 2-5, this is an example of a ____ strategy that would be found in quadrant _______ - Market penetration; A Diversification; D Product market expansion; D - Product development; B Market development; C Q: Michelin’s ______ can be summed up as providing safety-conscious parents greater security in tires at a premium price. - Marketing program - Mission statement - Customer value proposition - Protocol - Core-values Q: Volvo offers incentives of up to $1,000 off a new vehicle to both current owners of a Volvo and active duty military and veterans. This is an example of a firm’s - Product strategy - Promotion strategy - Market segmentation and targeting strategy - Place strategy - Price strategy Q: Recently, St. Joseph Hospital was named one of the “Best Places to Work in Indiana” for the sixth consecutive year. The hospital touts universal values to “keep health care human” and employees consistently put patients first, which unites them in a common goal. Hospital President Kathy Young believes that St. Joseph’s_______ makes both her employees and patients happier in her hospital. - Behavioral protocol - Organizational culture - Pathos - Vision - Service offerings Q: At which step of the planning stage of the strategic marketing process does a firm develop its marketing mix? - Market segmentation - Situation analysis - Marketing program - Implementation - Customer-value proposition