Exam 19 September 2017, questions and answers Marketing Management (Alliance University) Chapter 2 to Chapter 10 - €13,03   ajouter au panier

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Exam 19 September 2017, questions and answers Marketing Management (Alliance University) Chapter 2 to Chapter 10

Exam 19 September 2017, questions and answers Marketing Management (Alliance University) Chapter 2 to Chapter 10 Chapter 2: Developing Marketing Strategies and Plans GENERAL CONCEPT QUESTIONS Multiple Choice 66 Chapter 1: Marketing: Managing Profitable Customer Relationships 1. A key ingredient of the marketing management process is insightful, marketing strategies and plans that can guide marketing activities. a. creative b. measurable c. macro d. micro e. niche Page: 35 2. According to a chapter story about H&M clothing stores, H&M is able to put products out quickly and inexpensively by all of the following EXCEPT . a. having few middlemen and owning no factories b. buying large volumes c. having extensive experience in the clothing industry d. having a great knowledge of which goods should be bought from which markets e. having total control of its distribution channel from the time the goods are produced until the time they are sold Page: 36 3. The task of any business is to deliver at a profit. a. customer needs b. products c. customer value d. products and services e. improved quality Page: 36 4. In a hypercompetitive economy such as ours, a company can win only by fine- tuning the value delivery process and choosing, providing, and superior value. a. communicating b. selecting target markets with c. composing d. developing e. researching Page: 36 5. The traditional view of marketing is that the firm makes something and then it. a. markets b. sells c. distributes d. prices e. services Page: 36 67 Part 1: Defining Marketing and the Marketing Process 6. Today, the “mass-market” is actually splintering into numerous , each with its own wants, perceptions, preferences, and buying criteria. a. micromarkets b. market targets c. macromarkets d. customer cliques e. demographic units Page: 37 7. The first phase of the value creation and delivery sequence is that represents the “homework” marketing must do before any product exists. a. choosing the value b. market research c. target marketing d. service consideration e. projective thinking Page: 37 8. The last step in the value creation and delivery sequence is the value where the sales force, sales promotion, advertising, and other communication tools announce and promote the product. a. developing b. distributing c. communicating d. reversing e. researching Page: 37 9. The Japanese have refined the value delivery process to include a component that emphasizes . a. zero servicing b. zero customer feedback time c. zero promotion d. zero dependency on intermediaries e. zero marketing costs Page: 38 10. The is a tool for identifying ways to create more customer value. a. value chain b. customer survey c. brand loyalty index d. promotion channel e. supplier database Page: 38 11. The identifies nine strategically relevant activities that create value and cost in a specific business. a. value proposition b. value chain c. mission statement 68 Chapter 1: Marketing: Managing Profitable Customer Relationships d. annual report e. manager’s log Page: 38 12. The in the value chain cover the sequence of bringing materials into the business (inbound logistics), converting them into final products (operations), shipping out final products (outbound logistics), marketing them (marketing and sales), and servicing them (service). a. operations process b. manufacturing process c. primary activities d. secondary activities e. tertiary activities Page: 38 13. Procurement, technology development, human resource management, and firm infrastructure are handled in certain specialized departments and are called . a. materials handling b. support activities c. inventory activities d. primary activities e. benchmark activities Page: 38 14. The firm should estimate its competitors’ costs and performances as against which to compare its own costs and performance. a. competition b. standards c. challenges d. benchmarks e. moveable standards Page: 38 15. The firm’s success depends not only on how well each department performs its work, but also on how well the various departmental activities are coordinated to conduct . a. core strategies b. satellite businesses c. core values d. core business processes e. core technologies Page: 38 16. With respect to core business processes, all the activities involved in gathering market intelligence, disseminating it within the organization, and acting on the information is referred to as the . a. market sensing process b. market research process c. target marketing process d. market pulse process 69 Part 1: Defining Marketing and the Marketing Process e. deployment process Page: 38 17. With respect to the core business processes, all the activities involved in researching, developing, and launching new high-quality offerings quickly and within budget are referred to as the . a. new product process b. new offering realization process c. product development process d. product launch process e. return on investment process Page: 38 18. With respect to the core business processes, the is considered to be all the activities involved in defining target markets and prospecting for new customers. a. customer acquisition process b. customer relationship management process c. fulfillment management process d. customer prospecting process e. customer equity process Page: 38 70 Chapter 1: Marketing: Managing Profitable Customer Relationships 19. A good way to describe the would be discuss all the activities involved in building deeper understanding, relationships, and offerings to individual customers. a. customer acquisition process b. customer relationship management process c. customer prospecting process d. customer fulfillment management process e. customer equity process Page: 38 20. Another way to describe a value delivery network (partnering with specific suppliers and distributors) is to call it a . a. teamwork group b. cabal c. domestic power center d. link to relationships e. supply chain Page: 39 21. The key to utilizing organizational core competencies is to that make up the essence of the business. a. make the competencies pay for themselves b. own all intermediaries who come in contact with your goods and services c. own and nurture the resources and competencies d. emphasize global promotions e. segment workforces Page: 39 22. We can say that a has three characteristics: (1) It is a source of competitive advantage in that it makes a significant contribution to perceived customer benefits, (2) it has applications in a wide variety of markets, and (3) it is difficult for competitors to imitate. a. core competency b. business strategy c. core technology d. strategic business unit e. winning strategy Page: 39 23. Core competencies tend to refer to areas of special technical and production expertise, where tend to describe excellence in broader business processes. a. process benchmarks b. distinctive capabilities c. core business values d. value statements e. mission statements Page: 40 24. George Day sees market-driven organizations as excelling in three distinctive capabilities: , customer linking, and channel bonding. 71 Part 1: Defining Marketing and the Marketing Process a. target marketing b. market research c. fulfilling customer needs d. market sensing e. customer service relationships Page: 40 25. Competitors find it hard to imitate companies such as Southwest Airlines, Dell, or IKEA because they are unable to copy their . a. product innovations b. distribution strategy c. pricing policies d. activity systems e. logistics system Page: 40 26. One conception of holistic marketing views it as “integrating the value exploration, , and value delivery activities with the purpose of building long-term, mutually satisfying relationships and co-prosperity among key stakeholders.” a. value creation b. value proposition c. value management d. value research e. value chain Page: 40 27. Holistic marketers achieve profitable growth by expanding customer share, , and capturing customer lifetime value. a. undermining competitive competencies b. building customer loyalty c. milking the market for product desires d. renewing a customer base e. inspecting all market share data Page: 40 28. The holistic marketing framework is designed to address three key management questions. Which of the following is one of those questions? a. Value claims—how does the company deal with value erosion? b. Value proposition—how can value propositions be made profitable? c. Value chain—are there weak links in the company’s value chain d. Value network—how can a company effectively network? e. Value exploration—how can a company identify new value opportunities? Page: 41 29. The customer’s reflects existing and latent needs and includes dimensions such as the need for participation, stability, freedom, and change. a. competence space b. resource space c. emotional space 72 Chapter 1: Marketing: Managing Profitable Customer Relationships d. relationship space e. cognitive space Page: 41 30. The company’s can be described in terms of breadth—broad versus focused scope of business; and depth—physical versus knowledge-based capabilities. a. business mission b. core strategy c. cognitive space d. competency space e. resource space Page: 41 31. The collaborator’s involves horizontal partnerships, where companies choose partners based on their ability to exploit related market opportunities, and vertical partnerships, where companies choose partners based on their ability to serve their value creation. a. resource space b. competency space c. cognitive space d. rational space e. service space Page: 41 32. Business realignment may be necessary to maximize core competencies. Which of the following would be one of the steps in this realignment process? a. Reviewing all macro relationships. b. Reviewing global outreach projections. c. Redefining the business concept (the “big idea”). d. Reviewing successes from e-commerce (if any). e. Revamping the ethics statement. Page: 41 Part 1: Defining Marketing and the Marketing Process 33. allows the company to discover who its customers are, how they behave, and what they need or want. It also enables the company to respond appropriately, coherently, and quickly to different customer opportunities. a. Network management b. Strategic management c. Marketing management d. Customer relationship management e. Total quality management Page: 41 34. To respond effectively and provide value delivery, the company requires to integrate major business processes (e.g., order processing, general ledger, payroll, and production) within a single family of software modules. a. human resource management b. internal auditing management c. internal resource management d. strategic management e. marketing management Page: 41 35. With respect to value delivery, allows the company to handle complex relationships with its trading partners to source, process, and deliver products. a. a value matrix b. a global distribution policy c. a business development strategy d. business partnership management e. total quality management Page: 41 36. Successful marketing requires having capabilities such as understanding , creating customer value, delivering customer value, capturing customer value, and sustaining customer value. a. customer loyalty b. customer perks c. customer retention d. customer value e. customer benefits Page: 41 Chapter 1: Marketing: Managing Profitable Customer Relationships 37. According to a McKinsey research study, which of the following is one of the main challenges that marketing must face in the twenty-first century? a. The threat of ethics-based lawsuits. b. Doing more with less. c. Hostile takeover attempts. d. Increasing control by big government. e. Being independent of the distribution process. Page: 42 38. Strategic planning in the twenty-first century calls for action in three key areas. Which of these key areas deals specifically with devising a long-term game plan for achieving long-run objectives? a. Creating a viable business opportunity. b. Producing a strategic fit. c. Developing an investment portfolio. d. Expanding core competencies. e. Establishing a strategy. Page: 42 39. Most large companies consist of four organizational levels: the , the division level, the business unit level, and the product level. a. board of director level b. major stakeholder level c. management team level d. corporate level e. strategic level Page: 43 40. The is the central instrument for directing and coordinating the marketing effort. a. strategic plan b. marketing plan c. tactical plan d. customer value statement e. corporate mission Page: 43 41. The lays out the target markets and the value proposition that will be offered, based on an analysis of the best market opportunities. a. organizational plan b. strategic marketing plan c. corporate tactical plan d. corporate mission e. customer value statement Page: 43 42. In which of the following plans would we most likely find directions for implementing and addressing daily challenges and opportunities in product features, promotion, merchandising, pricing, sales channels, and service areas. a. The tactical marketing plan. 75 Part 1: Defining Marketing and the Marketing Process b. The target marketing plan. c. The deployment plan. d. The product launch plan. e. The product development plan. Page: 43 43. If you wanted to find out more about target markets and the organization’s value proposition, which of the following types of plans would most likely contain information that might be useful to you in your quest? a. The marketing plan. b. The organizational plan. c. The strategic marketing plan. d. The tactical marketing plan. e. The marketing mix plan. Page: 43 44. The process consists of corporate, division, business, and product planning. a. implementing b. controlling c. innovation d. planning e. competitive Page: 44 45. All corporate headquarters undertake four planning activities, the first of which is . a. defining the corporate mission b. establishing strategic business units and assigning resources (SBUs) c. assigning resources to each SBU d. assessing growth opportunities e. understanding target markets Page: 44 46. A clear, thoughtful mission statement provides employees with a shared sense of purpose, direction, and . a. profitability b. target market feasibility c. opportunity d. continuous improvement e. quality products Page: 44 76 Chapter 1: Marketing: Managing Profitable Customer Relationships 47. Mission statements are at their best when they reflect a . a. market b. strength c. competency d. vision e. value Page: 44 48. Which of the following terms matches to the phrase “it is a single business or collection of related businesses that can be planned separately from the rest of the company”? a. Strategic business unit. b. Diverse business unit. c. Growth business unit. d. Niche market unit. e. Specialized business unit. Page: 47 49. Market-penetration, product-development, and market-development strategies would all be examples of strategies. a. concentric b. conglomerate c. horizontal d. intensive growth e. integrative growth Page: 48 50. A(n) is when a company might seek new businesses that have no relationship to its current technology, products, or markets. a. concentric strategy b. conglomerate strategy c. horizontal strategy d. intensive growth strategy e. integrative strategy Page: 49 51. Which of the following terms most closely matches to “the shared experiences, stories, beliefs, and norms that characterize an organization”? a. Organizational dynamics. b. A business mission. c. An ethical/value statement. d. Customer relationships. e. Corporate culture. Page: 50 52. The first step in the business unit strategic-planning process deals with which of the following? a. Goal formulation. b. Business mission. c. Strategy formulation. Part 1: Defining Marketing and the Marketing Process d. Program formulation. e. SWOT analysis. Page: 51 53. When a business gets to know market segments intimately and pursues either cost leadership or differentiation within the target segment it is referred to as a . a. defined strategy b. focused strategy c. value-added strategy d. competitive advantage strategy e. customer-focused strategy Page: 56 54. If a firm pursues a strategy, it must be good at engineering, purchasing, manufacturing, and physical distribution. a. differentiation b. overall cost leadership c. focus d. domestic customer relationship e. market share Page: 56 55. To keep their strategic alliances thriving, corporations have begun to develop organizational structures to support them and have come to view the ability to form and manage partnerships as core skills. This is called . a. value managed partnership b. synergistic partnership c. centralized partnership d. partner relationship management e. win-win relationship management Page: 57 56. Traditionally, most businesses focused on stockholders. Today, the focus is on what are called . a. stakeholders b. partners c. regulators d. consumer triads e. supply-chain relationships Page: 58 57. A is a written document that summarizes what the marketer has learned about the marketplace and indicates how the firm plans to reach its marketing objectives. a. strategic plan b. marketing plan c. sales plan d. target market plan e. competitive analysis plan Page: 60 78Chapter 1: Marketing: Managing Profitable Customer Relationships 58. Which of the following permits senior management to grasp the marketing plan’s major thrust? a. The situation analysis. b. The marketing strategy. c. The executive summary and table of contents. d. Financial projections. e. Implementation and controls. Page: 60 59. Most marketing plans cover . a. one year b. two years c. three years d. four years e. five years Page: 60 60. The most frequently cited shortcomings of current marketing plans, according to marketing executives, are lack of realism, insufficient competitive analysis, and a focus. a. long-term b. profit c. short-run d. product e. price Page: 60 True/False 61. The traditional view of marketing is that the firm makes something and then sells it. Page: 36 62. The traditional view of marketing begins with a first step called strategic marketing. Page: 36 63. The formula, segmentation, targeting, and positioning (STP) is the essence of strategic marketing. Page: 37 64. The Japanese have extended the value delivery process by adding the concept of zero promotions after five years. Page: 38 65. The customer relationship management process is all the activities involved in receiving and approving orders, shipping the goods on time, and collecting payment. 79Part 1: Defining Marketing and the Marketing Process Page: 38 66. A principle of the value chain is that every firm is a synthesis of activities performed to design, produce, market, deliver, and support its product. Page: 38 67. Another name for a company’s value delivery network is “the intermediary team.” Page: 39 68. A core competency is usually common among competitors in a given industry. Page: 39 69. Holistic marketing focuses on the integration of value exploration, value creation, and value delivery as a means to build long-term relationships with consumers. Page: 40 70. If a manager asks “How can my company identify new value opportunities?,” he or she is examining a management question identified as being value creation. Page: 41 71. According to McKinsey research, a recommendation to managers and CEOs who are concerned about marketing performance was that marketers must test and develop programs more quickly as they enhance planning processes and research approaches. Page: 42 72. The marketing plan is the central instrument for directing and coordinating the marketing effort. Page: 43 73. A mission statement has as its primary focus the product and how to make it. Page: 44 74. One of the characteristics of a good mission statement is that it has an expansive number of goals for doing business. Page: 44 75. A good illustration of a market definition of the business a company is in would be “We sell gasoline.” Page: 46 76. If a company sought to expand the number of existing products sold to its current markets, it would use an integrative growth strategy labeled as “market- penetration strategy.” Page: 48 77. If a company sought to grow via a strategy that required the company to seek new businesses that have no relationship to its current technology, products, or markets, the company would be using a diversification strategy called a conglomerate strategy. 80 Chapter 1: Marketing: Managing Profitable Customer Relationships Page: 49 78. Scenario analysis can be used to assist companies in appraising how well their corporate culture might match (or not match) potential business partners or acquisitions. Page: 51 79. Once an organization has established a business mission in its business unit strategic-planning process, it may proceed to the second step of the planning process called goal formulation. Page: 51 80. Good illustrations of microenvironment actors in the strategic planning process would be demographics, technology, and the social-cultural arena. Page: 52 81. To evaluate opportunities, companies can use Market Opportunity Analysis (MOA) to determine the attractiveness and probability of success. Page: 53 82. An environmental threat is a challenge posed by an unfavorable trend or development that would lead, in the absence of defensive marketing action, to lower sales or profit. Page: 53 83. Once a SWOT analysis has been completed, the strategic planner is ready to proceed to the goal formulation stage of the strategic planning process model. Page: 54 84. In applying MBO (management by objectives) all objectives are treated as being equally important—objective discrimination is not allowed. Page: 54 85. For an MBO (management by objectives) system to work, one of the four criteria that the unit’s objectives must meet is that objectives must be stated quantitatively whenever possible. Page: 55 86. A strategy is a game plan for achieving what the business unit wants to achieve. Page: 56 87. Firms choosing a generic strategy centering on focus must be good at engineering, purchasing, manufacturing, and physical distribution. Page: 56 88. One of the four major categories of strategic alliance involves sharing personnel (e.g., human resource alliance) to staff alliance member marketing departments. Page: 57 81 Part 1: Defining Marketing and the Marketing Process 89. Partner Relationship Management (PRM) can be thought of as a corporation’s development of structures that support strategic alliances and treats the formation and management of partnerships as a core skill. Page: 57 90. Companies normally measure their profit performance using ROI; however, this approach suffers because profits are arbitrarily measured and subject to manipulation. Page: 58 91. A marketing vision statement is a written document that summarizes what the marketer has learned about the marketplace and indicates how the firm plans to reach its marketing objectives. Page: 60 92. Marketing plans are becoming more production-oriented because of the high costs of doing business in today’s economy. Page: 60 93. The marketing plan should open with a situation analysis. Page: 60 94. When a manager reaches the marketing strategy section of a marketing plan, he or she will define the mission and marketing and financial objectives. Page: 60 95. One of the key questions to ask in evaluating a marketing plan is whether the plan is simple or not. Page: 61 96. Such areas as sales forecasts, expense forecasts, and breakeven analysis are usually found in the financial projections section of the marketing plan. Page: 61 97. Return on investment (ROI) shows how many units must be sold monthly to offset the monthly fixed costs and average per-unit variable costs. Page: 61 98. Most marketing plans conclude with a section that indicates how the plan will be implemented. Page: 61 99. During the marketing strategy section of the marketing plan, goals and budgets are spelled out for each month or quarter so management can review each period’s results and take corrective action as needed. Page: 61 100. A good illustration of a marketing objective would to “decrease customer acquisition costs by 1.5 percent per quarter.” Page: 64 82Chapter 1: Marketing: Managing Profitable Customer Relationships Essay 101. There are two views of the value delivery process that may be followed by organizations seeking to gain business from consumers. Briefly, summarize each of those views. 102. The firm’s success depends not only on how well each department performs its work, but also on how well the various departmental activities are coordinated to conduct core business processes. List and briefly describe the five core business processes outlined in the text. 103. A successful company nurtures its resources and competencies. A core competency has three characteristics. Describe those characteristics. 104. A holistic marketing orientation can provide insight into the process of capturing customer value. In this vain, the holistic marketing framework is 83 Part 1: Defining Marketing and the Marketing Process designed to address three key management questions. Describe and illustrate each of these key management questions. Page: 41 105. Marketing faces a number of challenges in the twenty-first century. Based on an extensive 2002 research study, McKinsey (a noted consulting firm) identified three main challenges as reflected by differences in opinion between chief executive officers (CEOs) and their most senior marketing executives or chief marketing officers (CMOs). What were those challenges and which of the challenges do you think is most important? Why? 84 Chapter 1: Marketing: Managing Profitable Customer Relationships However, be sure that any answer chosen is supported by materials found in this section of the chapter. Page: 42 106. Indicate the differences and similarities between the following terms: marketing plan, strategic marketing plan, and tactical marketing plan. 107. Good mission statements are essential to being a success in business. Describe the three major characteristics that good mission statements should have. 108. Assessing growth opportunities involves planning new businesses, downsizing, or terminating older businesses. The company’s plans for existing businesses allow it to project total sales and profits. If there is a gap between future desired sales and projected sales, corporate management will have to develop or acquire new businesses to fill it. Identify and describe the three strategies that can be used to fill the strategic gap. 85 Part 1: Defining Marketing and the Marketing Process 109. Assume that you are directed to prepare short brief explaining the steps of the Business Unit Strategic-Planning Process. Your task is to construct such a brief by carefully outlining the steps of the aforementioned process. 110. As a marketing manager for a large steel company you have been assigned the task of educating a group of new managers on how to prepare a marketing plan. Though few of these managers will actually ever have to prepare such a plan because of their functional roles in the organization, it is still very useful that each new manager know how to construct a marketing plan. Prepare a brief summary of the contents of the marketing plan for the new managers. You may keep your discussion general or make it specific to the steel industry. APPLICATION QUESTIONS Multiple Choice 111. If a manager were following the traditional view of marketing wherein the firm makes something and then sells it, all of the following would part of the “sell the product” process sequence EXCEPT . a. price b. advertise/promote c. design product d. distribute e. service Page: 36 86 Chapter 1: Marketing: Managing Profitable Customer Relationships 112. As indicated in the text, critics of Nike and its shoe products often complain that . a. Nike has too many professional athletes endorsing their products b. Nike has an unfair advantage in product design c. Nike has unfair leverage with distributors d. Nike shoes cost almost nothing to make yet cost the consumer so much e. Nike does not support ecological causes Page: 37 113. According to the Japanese view of the value delivery process, the company should receive the required parts and supplies continuously through just-in- time arrangements with suppliers. This concept would be most appropriately called . a. zero customer feedback time b. zero product improvement time c. zero purchasing time d. zero setup time e. zero defect Page: 38 114. Apex Corporation is known in its industry being “best of class” in terms of costs and performance. Many companies will probably use Apex Corporation as a . a. target b. benchmark c. competitor to beat d. future supplier e. sounding board for ideas Page: 38 115. James Franks has been put in charge of gathering marketing intelligence, disseminating it within his organization, and eventually directing action on the information. Which of the following core business processes most closely matches with the task that Mr. Franks has been given? a. The market sensing process. b. The new offering realization process. c. The customer acquisition process. d. The customer relationship management process. e. The fulfillment management process. Page: 38 87Part 1: Defining Marketing and the Marketing Process 116. Netflix, the pioneer online DVD rental service, has what is called because they are excellent in broad business processes. a. core competency b. distinctive capabilities c. market savvy d. business touch e. intuitive synergy Page: 40 117. George Day sees organizations as excelling in three distinctive capabilities: market sensing, customer linking, and channel bonding. a. production-driven b. globally-driven c. human resource-driven d. engineering-driven e. market-driven Page: 40 118. Holistic marketers achieve profitable growth by expanding , building customer loyalty, and capturing customer lifetime value. a. design skills b. customer share c. promotion venues d. database resources e. competitive space share Page: 40 119. In the past Kodak was not necessarily known for embracing technology that did not come from Kodak engineers and designers. However, as Kodak addresses the digital revolution taking over the photographic industry, it wants customers to see it as a leader in digital photography and is moving away from its connection to print-only photography. This would be an example of which of the following value-creation steps? a. Redefining the big idea. b. Reshaping the business scope. c. Repositioning the company’s brand identity. d. Redoing its corporate logo. e. Researching its competitors. Page: 41 88 Chapter 1: Marketing: Managing Profitable Customer Relationships 120. According to a McKinsey report, CEOs need and expect all areas of their organizations to be more efficient. Which of the following statements would be the best illustration of this need and expectation? a. Doing more with more. b. Doing less with less. c. Doing less with more. d. Doing more with less. e. Doing about the same with more. Page: 42 121. According to a recent McKinsey report regarding characteristics that help to position marketers as business development leaders, illustrates one of those characteristics. a. “never bite off more than you can chew” b. “if it ain’t broke, don’t fix it” c. “always pursue Internet opportunities” d. “strike while the iron is hot” e. “identify profitable unmet needs before brainstorming creative solutions” Page: 42 122. According to Collins and Porras’ Built to Last, is characterized as a visionary company—acknowledged as the industry leader and widely admired because they set ambitious goals, communicated them to their employees, and embraced a high purpose beyond making money. a. General Electric b. Delta Airlines c. Farmer’s Insurance d. Wells Fargo e. McDonald’s Page: 43 123. Juan Garcia is seen as a planner because he plans the daily promotional releases about his company’s products and services. a. strategic b. selective c. tactical d. niche e. organizational Page: 43 Part 1: Defining Marketing and the Marketing Process 124. Sony’s former president, Akio Morita, wanted everyone to have access to “personal portable sound,” so his company created the Walkman and portable CD player. Which of the following planning aids most likely assisted Mr. Morita with his vision? a. The mission statement. b. A SWOT analysis. c. Knowledge of customers. d. A database. e. An executive summary to a formal marketing plan. Page: 44 125. Which of the following most closely matches a correct market-oriented definition of a business? a. Missouri-Pacific Railroad—we run a railroad. b. Xerox—we make copying equipment. c. Standard Oil—we sell gasoline. d. Encyclopedia Britannica—we distribute information. e. Columbia Pictures—we make movies. Page: 46 126. If you were the CEO of a company that was looking to implement strategies to fill a perceived strategic-planning gap, you would most likely explore growth first because it would be easier to improve an existing business rather than building a new one. a. intensive b. integrative c. diversification d. conglomerate e. concentric Page: 47 127. If you were the marketing manager of an organization that had chosen growth via current products sold to new markets, your organization would have chosen a strategy. a. market-penetration b. market-development c. product-development d. diversification e. concentric Page: 48 Chapter 1: Marketing: Managing Profitable Customer Relationships 128. describes the way people in an organization are dressed, how they talk to one another, and the way they greet their customers. a. Strategic orientation b. Competitive positioning c. Distinctive advantage d. HR training strategy e. Corporate culture Page: 50 129. Once an organization establishes its business mission, conducts a SWOT analysis, and goes through a goal formulation process, it is ready to go through a step called to continue with a strategic-planning process. a. program formulation b. strategy formulation c. implementation d. functional analysis e. feedback and control Page: 51 130. McDonald’s has often teamed up with Disney to offer products related to current Disney films as part of its meals for children. The best description of this form of alliance would a alliance. a. product alliance b. logistics alliance c. pricing collaboration d. service e. promotional Page: 57 Short Answer 131. If you were the marketing manager for small regional toy manufacturer who embraced strategic marketing application to your value creation and delivery sequence process, you would use three processes or acts to choose the value of your offer. Name those three processes. Page: 36 132. In the example of Gymboree, we learn that they are a 530-store chain that sells children’s clothing to upscale parents. Because there are not enough parents making more than $65,000 year to support more stores, Gymboree has created Janie and Jack, a chain selling upscale baby gifts. Hot Topic, a chain that sells rock-band inspired clothes for teens, recently launched Torrid to give plus-size teens the same fashion options. Instead of emphasizing making and selling, this company sees itself as part of a value delivery process. The value delivery process consists of three parts. What are those parts and what is their function? Part 1: Defining Marketing and the Marketing Process Page: 37 133. Define value chain. What does a value chain do? 134. If an organization was very strong at defining target markets and prospecting for new customers, which of the core business processes would this organization have mastered? 135. In a holistic marketing framework with respect to customer focus, what would be components that would match to value exploration, value creation, and value delivery? 136. What three spaces are discussed when a holistic marketing organization goes through a value exploration? Chapter 1: Marketing: Managing Profitable Customer Relationships 137. In the central role of strategic planning, only a handful of companies stand out as master marketers—Procter & Gamble, Southwest Airlines, Nike, Disney, Nordstrom, Wal-Mart, and McDonald’s to name a few. From a consumers perspective why do you think they stand out? Explain. 138. All corporate headquarters undertake four planning activities. What are those activities? 139. Porsche makes only expensive cars and Gerber serves primarily the baby market. Which of the major competitive spheres within which a company will operate matches most closely to the examples above? 140. Ansoft’s product-market expansion grid shows three intensive growth strategies that can be used to assist a marketing manager in finding creative ways to close a perceived strategic gap. Characterize each of the cells of Ansoft’s grid. 141. If a company decides to acquire one of its suppliers to gain more control or generate profit, it would have chosen which form of integrative growth 142. When Yahoo! began to flounder in the 2001, CEO Terry Semel imposed a more conservative, buttoned-down atmosphere on the freewheeling Internet Part 1: Defining Marketing and the Marketing Process startup. At the new Yahoo!, spontaneity is out and order is in. What term is most closely applied to the organizational change phenomenon described above? Be sure to explain what the term means with respect to the example provided. 143. Describe what happens in scenario analysis and explain why firms such as Royal Dutch/Shell Group use the technique. 144. Explain what happens in a SWOT analysis during the strategic planning process. Page: 52 145. What questions would typically be asked during a market opportunity analysis (MOA)? Page: 53 Chapter 1: Marketing: Managing Profitable Customer Relationships 146. For an MBO system to work, the business unit attempting to implement the process must meet four criteria. What are those criteria? 147. Which of Michael Porter’s generic strategies would be most appropriate for an organization that concentrates on achieving superior performance in an important customer benefit area valued by a large part of the market? Quality leadership would be one example of the end result of such a strategy. 148. When H&R Block and Hyatt Legal Services combined their efforts (two service businesses), they also joined marketing forces to create a strong alliance. Which of the alliance forms cited in the text most closely matches the H&R Block and Hyatt Legal Services alliance? Explain. 149. Characterize a marketing plan. Page: 60 150. During which stage of the marketing plan will the marketing manager establish the product line’s positioning? Chapter 3: Gathering Information and Scanning the Environment GENERAL CONCEPT QUESTIONS Part 1: Defining Marketing and the Marketing Process Multiple Choice 1. The major responsibility for identifying significant marketplace changes falls to the . a. U.S. Department of Labor b. company’s marketers c. American Marketing Association d. industry lobby groups found in Washington, D.C. e. marketing research industry Page: 72 2. Marketers have extensive information about how consumption patterns vary across countries. On a per capita basis within Western Europe, the smoke the most cigarettes. a. Swiss b. Greeks c. Irish d. Austrians e. French Page: 72 3. All of the following questions EXCEPT , would be considered to be forms of information needs probes. a. What decisions do you regularly make? b. What information do you need to make decisions? c. What data analysis programs would you want? d. What magazines and trade reports would you like to see on a regular basis? e. What products would be most closely matched to consumer needs? Page: 73 96 Chapter 1: Marketing: Managing Profitable Customer Relationships 4. consists of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers. a. A marketing information system b. A marketing research system c. A marketing intelligence system d. A promotional campaign e. A marketing database Page: 73 5. The company’s marketing information system should be a cross between what managers think they need, what managers really need, and . a. what the marketing research department is able to do b. what consumers are willing to share c. what the competition is doing d. what is acceptable industry practice e. what is economically feasible Page: 73 6. Marketing managers rely on internal reports. By analyzing this information, they can spot . a. micro-markets b. opportunities and problems c. macro-markets d. competitive strategies e. consumer demographic units Page: 73 7. The heart of the internal records system is the . a. database b. asset acquisition process c. order-to-payment cycle d. service consideration e. information liquidity ratio Page: 73 8. When a marketer “mines” his or her company’s database, fresh insights can be gained into neglected customer segments, , and other useful information. a. recent customer trends b. long-term competitive trends c. possible new inventions d. possible new technologies e. new primary data possibilities Page: 74 9. The internal records system supplies results data, but the marketing intelligence system supplies data. a. concurrent b. secondary c. research 97 Part 1: Defining Marketing and the Marketing Process d. happenings e. premium Page: 74 10. A is a set of procedures and sources managers use to obtain everyday information about developments in the marketing environment. a. marketing research system b. marketing information system c. product management system d. marketing intelligence system e. vertical system Page: 74 11. A company can take several steps to improve the quality of its marketing intelligence. If the company purchases competitive products for study, attends open houses and trade shows, and reads competitors’ published reports and stockholder information, the company is using to improve the quality of its marketing intelligence. a. sales force surrogates b. intermediaries c. external networks d. advisory panels e. customer feedback systems Pages: 74–75 12. All of the following would be considered to be steps to improve the quality of marketing intelligence in a company EXCEPT . a. a company can train and motivate the sales force to spot and report new developments b. a company can use guerrilla tactics such as going through a competitor’s trash c. a company can motivate intermediaries to pass along important information d. a company can network externally e. a company can purchase information from outside suppliers Pages: 74–76 98 Chapter 1: Marketing: Managing Profitable Customer Relationships 13. The 2000 U.S. census provides an in-depth look at the population swings, demographic groups, regional migrations, and changing family structure of 281 million people. Which of the following steps to improve the quality of company marketing intelligence system would be most closely associated the above illustration? a. A company can purchase information from outside suppliers. b. A company can take advantage of government data sources. c. A company can use online customer feedback systems to collect data. d. A company can network externally. e. A company can use its sales force to collect and report data. Page: 76 14. There are four main ways that marketers can find relevant online information on competitors’ products and weaknesses, and summary comments and overall performance rating of a product, service, or supplier. is(are) a type of site that is concentrated in financial services and high-tech products that require professional knowledge. a. Independent customer goods and service reviews b. Distributor or sales agent feedback sites c. Combo-sites offering customer reviews and expert opinions d. Customer complaint sites e. Shopping bot service sites Page: 77 15. A is “unpredictable, short-lived, and without social, economic, and political significance.” a. fad b. fashion c. trend d. megatrend e. style Page: 77 16. A is a direction or sequence of events that has some momentum and durability; the shape of the future is revealed and many opportunities are provided. a. fad b. fashion c. trend d. megatrend e. style Page: 77 99 Part 1: Defining Marketing and the Marketing Process 17. have been described as “large social, economic, political and technological changes [that] are slow to form, and once in place, they influence us for some time—between seven and ten years, or longer. a. Fads b. Fashions c. Trends d. Megatrends e. Styles Page: 77 18. Which of the following minority groups in the United States has been associated with one of the ten megatrends shaping the consumer landscape? a. African Americans b. Asian Americans c. European Americans d. Hispanic Americans e. Middle Eastern Americans Page: 78 19. The beginning of the new century brought a series of new challenges. All of the following would be considered to be among those challenges EXCEPT . a. a deterioration of innovative ideas b. steep decline of the stock market c. increasing unemployment d. corporate scandals e. the rise of terrorism Page: 78 20. With the rapidly changing global picture, the firm must monitor six major forces. All of the following would be among those forces EXCEPT . a. demographic b. economic c. social-cultural d. natural e. promotional Page: 78 21. The main demographic force that marketers monitor is(are) . a. suppliers b. competitors c. communication (such as advertising) d. government reports dealing with birth rates e. population Page: 79 22. The population explosion has been a source of major concern. Unchecked population growth and consumption could eventually result in all of the following EXCEPT . a. insufficient food supply b. depletion of key minerals 100 Chapter 1: Marketing: Managing Profitable Customer Relationships c. overcrowding d. restrictions on competition e. pollution Page: 79 23. One impact of explosive population growth is illustrated by the case of China. The Chinese government passed regulations limiting families to one child. One consequence of these regulations is that . a. the children are so fussed over and spoiled that they become “little emperors” b. school enrollments are dropping c. the fledgling automotive business in China will not have customers in a few years d. open rebellion is being preached e. “child-oriented businesses” have few customers Page: 80 24. A significant fact about population growth and population shifts is that in 2004 or 2005, . a. the youth market will exceed that of the adult market b. people over the age of 60 will outnumber those under five years of age c. baby boomers will be eclipsed by Gen X young adults d. most age group segments will be about equal e. Gen Y young adults will surpass the baby boomers as the largest age segment Page: 80 25. Which of the following age groups is thought to control three-quarters of the country’s wealth? a. 0–20 age segment b. 60 age segment c. 20–30 age segment d. 30–40 age segment e. 40 age segment Page: 81 101 Part 1: Defining Marketing and the Marketing Process 26. At one time the United States was called a “melting pot” society because of the number of different cultures that were integrated into the U.S. culture. Today, the United States is described as a society because many ethnic groups are maintaining their ethnic differences, neighborhoods, and cultures. a. “boiling pot” b. “salad bowl” c. “banana split” d. “doubled up” e. “non-communicative” Page: 81 27. According to the 2000 census, the U.S. population of 276.2 million was 72 percent white and percent African American. The remainder consisted of Hispanic Americans and other minorities. a. 20 b. 18 c. 15 d. 13 e. 11 Page: 81 28. Diversity goes beyond ethnic and racial markets. More than million Americans have disabilities, and they constitute a market for home delivery companies (and others). a. 50 b. 40 c. 30 d. 20 e. 10 Page: 83 29. Which of the following countries is known for having 99 percent of its population literate? a. England b. Germany c. France d. United States e. Japan Page: 83 102 Chapter 1: Marketing: Managing Profitable Customer Relationships 30. The household consists of a husband, wife, and children (and sometimes grandparents). a. “traditional” b. “extended” c. “diversity” d. “modern” e. “revised” Page: 83 31. Married couple households—the dominant cohort since the formulation of the United States—has slipped from nearly 80 percent in the 1950s to around percent today. a. 70 b. 60 c. 50 d. 40 e. 35 Page: 83 32. The twenty-first century saw markets grow more rapidly again due to a higher birth rate, a lower death rate, and rapid growth from foreign immigration. a. suburban b. urban c. rural d. coastal e. secondary Page: 84 33. The movement by population to the has lessened the demand for warm clothing and home heating equipment and increased demand for air conditioning. a. Grainbelt b. Pacific Northwest c. Sunbelt d. Mid-Coastal areas e. Heartland Page: 84 103 Part 1: Defining Marketing and the Marketing Process 34. Marketers look at where consumers are gathering. Almost one in people over the age of five (120 million) moved at least one time between 1995 and 2000, according to a Census 2000 brief. a. two b. three c. four d. five e. ten Page: 85 35. In which of the following economies would we expect to find few opportunities for marketers? a. Industrializing economies. b. Land-locked economies. c. Raw-material-exporting economies. d. Industrial economies. e. Subsistence economies. Page: 86 36. According to information presented in the text, which of the following countries is surprisingly a very good market for Lamborghini automobiles (costing more than $150,000) because of the number of wealthy families that can afford expensive cars. a. Greece b. Switzerland c. Holland d. Russia e. Portugal Page: 86 37. Over the past three decades in the United States, the rich have grown richer and the middle class has . a. stayed about the same b. shrunk c. increased slightly d. matched the rich in terms of relative growth e. been ignored because of problems with the poorer classes Page: 86 38. shapes the beliefs, values, and norms that largely define the tastes and preferences. a. Marketing b. The mass media c. Government d. Production innovation and engineering e. Society Page: 87 39. If a consumer lives the lifestyle of a “pleasure seeker” or goes on a “self- realization” quest, he or she is expressing what is called . a. views of others 104 Chapter 1: Marketing: Managing Profitable Customer Relationships b. views of society c. views of themselves d. views of organizations e. views of the universe Pages: 87–88 40. According to the information found in the social-cultural environment, with respect to views of others, are considered to be things that allow people who are alone to feel they are not (e.g., television, home video games, and chat rooms on the Internet). a. social surrogates b. subliminal fantasies c. relationship avoidance d. primary products e. secondary products Page: 88 41. Today, corporations need to make sure that they are good corporate citizens and that their consumer messages are honest. Such a view would be consistent with which of the following views? a. Views of others. b. Views of organizations. c. Views of themselves. d. Views of the universe. e. Views of society. Page: 88 42. People vary in their attitudes toward their society. usually live more frugally, drive smaller cars, and wear simpler clothing. a. Makers b. Escapers c. Seekers d. Changers e. Developers Page: 88 105 Part 1: Defining Marketing and the Marketing Process 43. People vary in their attitudes toward society and react accordingly. are a major market for movies, music, surfing, and camping. a. Makers b. Preservers c. Escapers d. Changers e. Developers Page: 88 44. All of the following have been cited by the text as being among Americans’ core values EXCEPT . a. they believe in work b. they believe in getting married c. they believe in giving to charity d. they believe in being honest e. they believe in sexual permissiveness Page: 88 45. Which of the following would be the best illustration of a secondary belief or value? a. Belief in work. b. Belief in giving to charity. c. Belief in getting married. d. Belief in getting married early. e. Belief in being honest. Page: 88 46. Which of the following is by far the most popular American leisure activity in that it is preferred by 59 percent of adults who participate in such activities? a. Gardening. b. Walking for exercise. c. Swimming. d. Photography. e. Jogging or running. Page: 89 47. Each society contains , groups with shared values emerging from their special life experiences or circumstances. a. demographic segments b. cliques c. consumer bundles d. subcultures e. behavioral niches Page: 89 106 Chapter 1: Marketing: Managing Profitable Customer Relationships 48. Which of the following would be the best illustration of a subculture? a. A softball team. b. A university alumni association. c. Teenagers. d. A Boy Scout troop. e. Frequent flyers. Page: 89 49. All of the following EXCEPT have been found to influence young people today and cause a shift of secondary cores values for this group. a. U2’s Bono. b. Elvis Presley. c. The NBA’s LeBron James. d. Golf’s Tiger Woods. e. Skateboarder Tony Hawk. Page: 89 50. Although core values are fairly persistent, cultural swings do take place. caused such a swing in the 1960s. a. Ford Motor Company b. George McGovern c. G.I. Joe action characters d. The infomercial e. The Beatles Page: 89 51. Marketers need to be aware of threats and opportunities associated with four trends in the natural environment. All of the following are among those trends EXCEPT . a. the shortage of raw materials b. the increased cost of energy c. near 90 percent corporate support for “green causes” d. increased pollution levels e. the changing role of governments Page: 90 52. With respect to the shortage of raw materials, air and water are classified as resources. However, as we know, problems are beginning to plague both our air and water quality. a. infinite b. near finite c. finite renewable d. finite nonrenewable e. absolute Page: 90 107 Part 1: Defining Marketing and the Marketing Process 53. One finite nonrenewable resource, , has created serious problems for the world economy. Because of anticipated shortages, investment and commodity markets have had wild swings. a. water b. air c. sugar d. coffee e. oil Page: 90 54. From a branding perspective, “green marketing” programs have not been entirely successful. has been cited as one of the obstacles that must be overcome for “green marketing” programs to be more successful. a. Overexposure and lack of credibility b. High cost c. Poor promotions d. Resistance by the youth segment in the marketplace e. Lack of support by governmental agencies and concerns Page: 91 55. Which of the following countries is noted for their “green movement” and support within its government for environmental quality enhancement? a. Mexico b. China c. Germany d. England e. Italy Page: 91 56. The marketer should monitor the following trends in technology, EXCEPT , if progress is to be made in business. a. the pace of change b. the difficulties found in sharing information c. the opportunities for innovation d. varying R&D budgets e. increased regulation Page: 92 57. According to some industry analysts and inventors, will eventually eclipse the PC as our most important technological device. a. iPod b. HDTV c. holographic television d. the mobile phone e. solar-powered car Page: 92 58. All of the following will most likely be among the advantages for a society that embraces telecommuting as an employment/communication alternative EXCEPT . a. reduction of auto pollution 108 Chapter 1: Marketing: Managing Profitable Customer Relationships b. bringing the family closer together c. increased bonuses and compensation perks d. creating more home-centered shopping e. entertainment centered on the home environment Page: 92 59. legislation has as its purposes to protect companies from unfair competition, to protect consumers from unfair business practices, and to protect the interests of society from unbridled business behavior. a. Business b. Consumer c. Bi-partisan d. Activist e. Global Page: 94 60. An important force affecting business is the —a movement of citizens and government organized to strengthen the rights and powers of buyers in relation to sellers. a. lobbyist movement b. consumerist movement c. environmental movement d. self-rights movement e. ethical reform movement Page: 95 True/False 61. The major responsibility for identifying significant marketplace changes falls to the company’s marketers. Page: 72 62. Today, most firms are rather sophisticated about gathering information. Page: 72 63. A marketing information system is developed from internal company records, marketing intelligence, and promotional models supplied by the marketing department. Page: 73 109 Part 1: Defining Marketing and the Marketing Process 64. The heart of the internal records system is the bar code. Page: 73 65. According to principles found in database construction and usage, a “carpet bombing” mail out of a new offer is usually the most successful strategy. Page: 74 66. The internal records system supplies results data, but the marketing intelligence system supplies happenings data. Page: 74 67. If a company were pursuing a policy of networking externally it might collect competitors’ ads or look up news stories about competitors. Page: 75 68. One of the ways to find relevant online information on competitors’ strengths and weaknesses might be to frequent distributor or sales agent feedback sites. Page: 76 69. A style is unpredictable, short-lived, and without social, economic, and political significance. Page: 77 70. A megatrend has been described as being what follows all fads that stay on the market at least one year. Page: 77 71. One of the ten significant megatrends that will impact marketing efforts in the future is delayed retirement. Page: 78 72. Microenvironmental forces have been labeled as being “uncontrollable.” Page: 78 73. The main demographic force that marketers monitor is population. Page: 79 74. If the world were a village of 1,000 people, it would consist of 520 men and 480 women. Page: 79 75. A growing population always means a growing market. Page: 80 76. Japan has one of the world’s oldest populations. Page: 80 77. According to population studies, Gen X (numbering 72 million) is almost the same size as the huge baby boomer market. Page: 81 110 Chapter 1: Marketing: Managing Profitable Customer Relationships 78. At present the largest minority in the United States is the Latinos with 13 percent of the total population. Page: 81 79. In the United States, 10 to 15 percent of the population may be functionally illiterate. Page: 83 80. Based on research done in England, a conclusion drawn about families is that “friends are the new family.” Page: 83 81. According to studies of minority markets, the disabled market is ten times more likely to be in a professional job, almost twice as likely to own a vacation home, eight times more likely to own a notebook computer, and twice as likely to own individual stocks as compared to the general population. Page: 84 82. Urban markets are once again growing because of higher birth rates, a lower death rate, and rapid growth from foreign immigration. Page: 84 83. The small office—home office segment of our society has grown to nearly 40 million; thereby, boosting the sales of electronic conveniences and ready to assemble furniture. Page: 85 84. Almost one in two people over the age of five (120 million) moved at least one time between 1995 and 2000, according to a Census 2000 brief. Page: 85 85. Available purchasing power in an economy depends on mainly one facet—supply and demand. Page: 85 86. A good illustration of a raw-material exporting economy is Egypt. Page: 86 87. Conventional retailers who offer medium-priced goods are the most vulnerable to the growing trend in the United States called a two-tier market. Page: 86 88. Through outsourcing, companies can feasibly cut between 20 to 70 percent of their labor costs. Page: 87 89. “Pleasure seekers” of the 1970s had their beliefs, values, and norms shaped by views of others. Pages: 87–88 111 Part 1: Defining Marketing and the Marketing Process 90. If a single person has a home entertainment system that is rich in television capabilities and home video games, he or she may be using such a system as a “social surrogate.” Page: 88 91. In recent years, because of a tough job market, there has been an increasing amount of organizational loyalty among most employees. Page: 88 92. If a young college student decides to join the military to defend the principles of his or her country, the student would be classified as a “changer.” Page: 88 93. Most Americans still believe in getting married as a core belief. Page: 88 94. Teenagers would be a good example of a culture in the United States. Page: 89 95. Marketers need to be aware of the threats and opportunities associated with the trend toward increased pollution levels. Page: 90 96. Research studies have shown that consumers as a whole may not be willing to pay a premium for environmental benefits. Page: 91 97. Every new technology is a force for “creative destruction.” Page: 92 98. Virtual reality is giving consumers what they dream about. Page: 93 99. One of the major trends in the political-legal environment is the trend toward the growth of special interest groups. Page: 93 100. Today, customers are still willing to swap personal information for customized products from firms. Page: 95 Essay 101. Describe a marketing information system (MIS). From what sources is the MIS developed? Suggested marketing information system (MIS) consists of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers. A 112 Chapter 1: Marketing: Managing Profitable Customer Relationships marketing information system is developed from internal company records, marketing intelligence activities, and marketing research. Page: 73 102. Describe the order-to-payment cycle and why it is important to internal records information keeping. 103. What are the various steps to improve the quality of its marketing intelligence function that can be taken by a company? 113 Part 1: Defining Marketing and the Marketing Process 104. List and briefly describe the four main ways marketers can find relevant online information on competitors’ strengths and weaknesses, and summary comments and overall performance rating of a product, service, or supplier. Page: 77 105. What is a “megatrend”? Briefly describe five megatrends shaping the consumer landscape. Pages: 77–78 106. What is the main demographic force monitored by marketers? Why? 107. Describe the two dominant “household patterns” in the last 50 years. 114 Chapter 1: Marketing: Managing Profitable Customer Relationships 108. People absorb, almost unconsciously, a worldview that defines their relationships. List and describe the “views” that assist or retard this relationship development process. 109. Describe the differences between a core belief and a secondary belief. List the primary core beliefs of Americans as revealed by the text. 110. Many marketers have tried and failed with “green sales pitches” (appeals to o

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