Principles of Marketing

Which of the following is included in a broad definition of marketing?

Creating customer value, building customer relationships, and engaging customers

The first step of the marketing process is to

Understand the marketplace, which includes customer needs and wants

Which of the following correctly identifies the five core customer and marketplace concept?

Needs, wants, and demands; market offerings; value and satisfaction; exchanges and relationships; and markets

Which of the following represent market offerings?

Products, services, information, and experiences

To design a winning marketing strategy, what are the two important questions a marketing manager must answer?

The two questions are the following: What customers will we serve? How can we serve these customers best?

Which marketing management orientation holds that a firm should have a customer focus to achieve sales and profits?

The marketing concept

What are the two keys to building lasting customer relationships?

Value and satisfaction

A company rarely gets 100% of a customer’s purchases for a product category. The share it does get of the customer’s purchasing in its product categories is called

share of customer

Which of the following statements regarding the changing marketing landscape is correct?

The Great Recession caused consumers to rethink their buying priorities

Digital marketing tools used in digital and social media marketing include

social media, mobile apps, and blogs

Products and technologies eventually become outdated, but basic market needs can last forever. For this reason, company mission statements should be

market-oriented

What is the correct sequence of the steps in the strategic planning process?

Define the company​ mission, set company objectives and​ goals, design the business​ portfolio, and plan the market and other functional strategies

Most standard portfolio analysis methods evaluate strategic business units​ (SBUs) on their performance in two important dimensions. What are these two​ dimensions?

The attractiveness of the​ SBU’s market or industry and the strength of the​ SBU’s position in that market or industry

What are the four growth strategies identified by the​ product/market expansion​ grid?

Market​ penetration, market​ development, product​ development, and diversification

For strategic planning​ purposes, marketing provides a guiding philosophy that suggests the​ company’s strategy should revolve around creating customer value and building profitable relationships with important consumer groups. This philosophy is called​ _______.

the marketing concept

A​ company’s external value delivery network consists of​ __________.

​suppliers, distributors, and customers

​________ is the process of dividing a market into distinct groups of buyers who have different​ needs, characteristics, or behaviors and who might require separate marketing strategies or mixes.

Market segmentation

What are the variables in a​ company’s marketing​ mix?

​Product, price,​ place, and promotion

What are the five marketing management functions used to manage the marketing​ process?

​Analysis, planning,​ implementation, organization, and control

A SWOT is a part of which marketing management​ function?

Analysis

Which of the following correctly lists the actors in a​ company’s microenvironment?

The​ company, suppliers, marketing​ intermediaries, customer​ markets, competitors, and publics

Forces in a​ company’s macroenvironment that shape opportunities and pose threats to the company include​ what?

​Demographic, economic,​ natural, technological,​ political/social, and cultural forces

What is the single most important demographic trend in the U.S.​ today?

The changing age structure of the population

In addition to income​ levels, marketers need to pay attention to​ ______, which has created a tiered market.

income distribution levels

Which of the following is an important trend in the natural environment of which marketers should be​ aware?

Shortages of raw materials

According to the​ text, __________ are perhaps the most dramatic forces affecting​ today’s marketing strategies.

technological forces

Which of the following is a reason for business​ legislation?

To protect consumers from unfair business practices

​People’s views of​ themselves, others,​ organizations, and nature are part of which macroenvironmental​ force?

Cultural forces

What advice would you give a firm about how to respond to the changing marketing environment?

Whenever possible, take a proactive approach to the environment

Firms that develop strategies to change the environment – instead of assuming that strategic options are bounded by the current environment – are being _________.

proactive

To deliver real value to marketers, marketing information must _______________.

provide useful customer insights

What is big data?

Data contained in huge and complex data sets

The people and procedures dedicated to assessing information​ needs, developing the needed​ information, and helping decision makers use the information to generate and validate actionable customer and market insights comprise a​ ________.

marketing information system

What are the three general sources from which marketers can obtain​ information?

Internal​ data, marketing​ intelligence, and marketing research

What are the four steps of the marketing research process in their correct sequence?

Define the problem and research​ objectives, develop the research​ plan, implement the research​ plan, interpret and report the findings

What are the three types of objectives a marketing research project might​ have?

Exploratory​ research, descriptive​ research, and causal research

Why do companies use customer relationship​ management?

To capture and use customer data

What do marketers use to analyze big​ data?

Marketing analytics

According to the​ text, two major public policy and ethical issues in marketing research are​ ________.

intrusions on consumer privacy and the misuse of research findings

Which of the following is true regarding international marketing​ research?

Translating questionnaires from one language to another is not an easy task.

Which of the following correctly defines the consumer market?

Individuals and households that buy goods and services for personal consumption

What are the four general characteristics that influence consumer​ purchases?

Cultural​ characteristics, social​ characteristics, personal​ characteristics, and psychological characteristics

The buyer decision process starts with​ __________.

recognizing a need

What determines whether the buyer is satisfied or dissatisfied with a purchase

The relationship between the consumer’s expectations and the product perceived performance

What are the five stages of the consumer adoption process in the correct sequence?

Awareness, interest, evaluation, trial, and adoption

What are the five characteristics that are especially important in influencing an innovation’s rate of adoption?

Relative advantage, complexity, compatibility, divisibility, and communicability

Which of the following statements regarding the business market is correct?

Many sets of business purchases are made for one set of consumer purchases

Which type of business buying situation offers marketers the greatest opportunity but also the greatest challenge?

A new task situation

What are the eight steps in the business buying decision process in the correct​ sequence?

Problem​ recognition, general need​ description, product​ specification, supplier​ search, proposal​ solicitation, supplier​ selection, order-routine​ specification, and performance review

In which step of the buying decision process is the final order with the chosen supplier​ developed?

Order-routine specification

What is market segmentation?

Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors and who might require separate marketing strategies or mixes

Evaluating each market segment’s attractiveness and selecting one or more market segments to enter is called _______.

market targeting

What are the four major variables used to segment consumer markets?

Geographic, demographic, psychographic, and behavioral

Which of the following are additional variables marketers use to segment business markets but not consumer​ markets?

Operating characteristics, purchasing approaches, situational factors, and personal characteristics

Which structural factor would make a market segment attractive to enter?

Very few actual or potential substitute products

In which targeting strategy does a firm go after a large share of one or a few smaller segments?

Concentrated marketing

A _______ defines how a company will create differentiated value for targeted segments and what positions it wants to occupy in those segments.

value proposition

What is a product position

The way a product is defined by consumers on important attributes

Which of the following is the correct definition of a product?

A product is anything that can be offered to a market for​ attention, acquisition,​ use, or consumption that might satisfy a want or need.

What are the two broad classifications of products?

Consumer products and industrial products

Which of the following correctly identifies the five important decisions marketers must make when developing individual products and services?

Product attributes, branding, packaging, labeling, and product support services

The major product line decision involves the line’s _______, or the number of items in the product line.

length

Services are characterized by four key aspects: ____________

services are intangible, inseparable, variable, and perishable

Which of the following statements is true regarding the marketing of services?

For service providers, a solution to price competition is to develop a differentiated offer, delivery, and image

The four major brand strategy decisions involve brand _______.

positioning, name selection, sponsorship, and development

What are the four choices a company has for developing brands?

Line extensions, brand extensions, multibrands, and new brands

What are the two ways a firm can obtain new products?

Acquisitions and new product development

To create successful new products, a company must ________.

understand its consumers, markets, and competitors, and develop products that deliver superior value

What is the first step in the new product development process?

Generating new product ideas

Once management has decided on its product concept and marketing​ strategy, it can evaluate the business attractiveness of the​ proposal, which involves​ ___________.

conducting a business analysis

During the introductory stage of the product lifecycle, __________.

sales are slow and profits are nonexistent

Which stage of the product life cycle normally lasts longer than the previous stages and poses strong challenges to marketing management?

Maturity

Which of the following statements regarding socially responsible product decisions is​ correct?

The government may prevent companies from adding products through acquisitions if the effect threatens to lessen competition.

Which of the following statements regarding the marketing of international products and services is​ correct?

Because markets and consumers around the world differ​ widely, companies must usually adapt their product offerings in different world markets.

The price​ ceiling, the maximum price a company can​ charge, is set by​ ________.

customer perceptions of the​ product’s value

What are the three major pricing strategies used by​ marketers?

customer value-based pricing, cost-based pricing, and competition-based pricing

Which of the following statements is true regarding how price might play an important role in helping to accomplish company objectives.

Pricing can create excitement for a brand

Internal factors that affect pricing include​ ________.

the​ company’s overall marketing​ strategy, objectives, marketing​ mix, and other organizational considerations.

A company has set a low price on a new product it introduced. It wants to maximize its market share and attract a large number of buyers quickly. Which new product pricing strategy should the company​ use?

Market-penetration pricing

When a company sets a high price as the initial price of a new​ product, it is pursuing a​ ________ new product pricing​ strategy.

market-penetration

What are the five product mix pricing situations?

Product line​ pricing, optional-product​ pricing, captive-product​ pricing, by-product​ pricing, and product bundle pricing

Printer companies often charge a fairly low price for their ink jet printers​ (relative to​ costs) and a high price for replacement cartridges. These companies are using a strategy of​ ________ pricing.

captive-product

Many state colleges and universities charge one price for​ in-state students and a higher price for​ out-of-state students. Which price adjustment strategy are these schools​ using?

segmented pricing

Dynamic pricing is when companies continually adjust prices to meet the characteristics and needs of individual customers and situations. Where is this method especially prevalent​ today?

online buying

Which of the following statements is true regarding initiating price​ cuts?

Cutting prices in an industry loaded with excess capacity might lead to price wars.

Which of the following is a potentially effective action a company could take in response to a​ competitor’s price​ cut?

Increase both price and quality