Q&A Hero

Q: A growing trend to "Buy American" has caused U.S. automakers to increase political pressure on Washington to pass legislation for more restrictive quotas on Japanese car imports. In addition, a decline in the value of the U.S. dollar would be instrumental in Toyota's decision to build a manufacturing plant in the United States instead of continuing to export cars from Japan. If Toyota builds the plant, its decision would reflect a. a reactive strategy that would impact the competitive environmental force. b. a proactive maneuver to manipulate and impact the social environmental force. c. a positive result from regulatory and economic environmental forces. d. a positive response to a technological environmental force. e. a negative impact as a result of adverse competitive, regulatory, and technological environmental forces.

Q: Newspaper readership has significantly declined in recent years. Not only are traditional newspapers losing subscribers, they are also losing advertisers. To combat these trends, many newspaper publishers now offer online versions of their printed newspapers. This is MOST LIKELY an example of a. a reaction to a growing economy. b. a trend that will soon reverse itself because most consumers want a printed newspaper to read during breakfast, on the bus to work, etc. c. a technological environmental force that restricts the marketing opportunities of newspaper publishers. d. a social environmental force as a result of changing consumer preferences for information delivered online. e. a response to an increase in government regulation.

Q: Which of the following statements describes an environmental force? a. Several states have legislation that requires people transporting children to use age- and height-appropriate car seats. b. Tupperware has more than 200,000 independent dealers who market its entire product line. c. A car battery comes with a lifetime guarantee. d. An automobile dealer offers a $500 rebate during the month of July. e. A major bottler offers a 10-cent refund on returnable bottles.

Q: Which of the following statements about environmental forces is most accurate? a. Environmental forces are almost always controllable if the marketing department correctly scans them. b. An organization that incorporates the marketing concept can exert just as much influence on environmental forces as they can exert on that organization. c. Environmental forces consistently result in negative outcomes for an organization. d. Some environmental forces can actually enhance a firm's marketing opportunities. e. Environmental forces can almost always be predicted.

Q: The five major environmental forces in a marketing decision are a. climate change, natural resources, pollution, natural disasters, and global conflict (war). b. social, technological, economic, competitive, and regulatory. c. corporate ownership, internal management, supplier relations, manufacturing capabilities, and consumer demand. d. product, price, promotion, place, and people. e. ethics, sustainability, cultural awareness, diversity, and values.

Q: Environmental forces refer to a. the internal strengths of a company that enable the firm to remain competitive. b. the marketing manager's uncontrollable factorsproduct, price, promotion, and placethat can be used to solve marketing problems. c. the unpredictable or uncontrollable availability of natural resources that can enhance or restrain a company's growth. d. the marketing manager's uncontrollable forces in a marketing decision involving social, economic, technological, competitive, and regulatory forces. e. the marketing manager's controllable forces in a marketing decision involving social, economic, technological, competitive, and regulatory forces.

Q: Which of the following is NOT an environmental force? a. technological b. ecological c. regulatory d. competitive e. economic

Q: A customer value proposition is a. 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. b. a statement that, before product development begins, identifies (1) a well-defined target market; (2) specific customers' needs, wants, and preferences; and (3) what the product will be and do to satisfy consumers. c. a unique strength relative to competitors that provides superior returns, often based on quality, time, cost, or innovation. d. the characteristics of a product that make it superior to competitive substitutes. e. the cluster of benefits that an organization promises customers to satisfy their needs.

Q: The marketing mix elements are called __________ because they are under the jurisdiction of the marketing department in an organization. a. uncontrollable forces b. profitability factors c. stakeholder value generators d. target market segments e. controllable factors

Q: The four Ps of the marketing mix are a. priorities, personnel, placement, and profits. b. prediction, production, pricing, and promotion. c. product, price, production, and place. d. product, price, promotion, and place. e. predict, produce, package, and persuade.

Q: The marketing mix refers to a. the multiple strategies that can be used to promote a product. b. the controllable forcessocial, economic, technological, competitive, and regulatoryto which a marketing manager must constantly adapt. c. the blending of different communication and delivery channels that are mutually reinforcing in attracting, retaining, and building relationships with consumers who shop and buy in traditional intermediaries and online. d. the marketing manager's controllable factors that can be used to solve marketing problems. e. a set of complementary products that when sold together generate more sales than when sold separately.

Q: The marketing mix refers to a. the selection of product benefits and attributes that are to be added to or subtracted from a given product to create variations within a product line. b. the specific ratio within a budget that divides resources between advertising, sales promotion, and personal selling. c. the marketing manager's controllable factorsproduct, price, promotion, and placethat can be used to solve a marketing problem. d. the allocation of resources within a firm towards individual marketing programs. e. the environmental forcessocial, economic, technological, competitive, and regulatorythat impact the marketing decisions for a particular product at any given time.

Q: The four Ps are commonly known as a. the environmental or uncontrollable forces. b. the environmental or controllable factors. c. the marketing mix or controllable factors. d. the marketing mix or uncontrollable forces. e. predict, produce, package, and persuade.

Q: The marketing manager's controllable factorsproduct, price, promotion, and placethat can be used to solve a marketing problem are referred to as the __________. a. marketing concept b. marketing mix c. marketing program d. environmental forces e. marketing toolbox

Q: A local university offers business courses for a specific target market composed of people who currently work and want to take refresher courses to obtain a higher degree. Which of the following would be the most effective way to communicate with the target market, bearing in mind that communication must be both effective and economical? a. put announcements on campus bulletin boards b. distribute promotional materials during classes c. advertise on national television d. advertise on local hip-hop radio shows e. advertise in the local newspaper

Q: A target market refers to a. customers who have already purchased a firm's product at least once, have been satisfied, and are likely to be repeat purchasers. b. 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. c. a specific group of current consumers toward which an organization directs its advertising. d. one or more specific groups of potential consumers who are seeking a product for which there are no current substitutes. e. one or more specific groups of potential consumers toward which an organization directs its marketing program.

Q: A target market refers to a. people who could purchase a product regardless of who ultimately uses it. b. one or more specific groups of potential consumers toward which an organization directs its marketing program. c. former customers who now use competitors' products. d. the cluster of benefits that an organization focuses on to satisfy consumers' needs. e. people with both the desire and the ability to buy a specific offering.

Q: The most likely market for cosmetic dentistry, which can cost $15,000 for straightening and whitening, is a. toddlers with crooked baby teeth, when crooked teeth run in the family. b. all former smokers who have been smoke free for at least one year. c. anyone who has the time, the money, and the desire to undergo the procedures. d. anyone who has dental insurance. e. adults who want to make a good first impression for a job interview.

Q: All markets ultimately are composed of __________. a. people b. brands c. products d. organizations e. reference groups

Q: In a marketing context, a market refers to a. people with a similar want for a particular product or service. b. people with both the desire and ability to buy a specific offering. c. the central location for all buying and selling of products and services. d. an open space or covered building where vendors convene to sell their offerings. e. the free the operation of supply and demand.

Q: Figure 1. In Figure 1. above, "B" is accomplished by __________. a. designing a marketing program b. developing the 5 Ps c. discovering consumer needs d. developing a marketing plan e. identifying target markets

Q: Figure 1. In Figure 1. above, "A" represents __________ and "B" represents __________. a. management; shareholders b. employees; stakeholders c. sales; manufacturing d. R&D; customers e. discovering consumer needs; satisfying consumer needs

Q: A television advertisement shows several teenagers searching through the refrigerator for something to quench their thirst. The refrigerator offers the youngsters many alternativessoft drinks, fruit drinks, sport drinks, and bottles of Sunny Delight drink. The ad, which shows the teens happily selecting Sunny Delight over all the other beverages, appeals to the consumers' __________ for liquid refreshment to quench their thirst and attempts to shape their __________ for the advertised product. a. needs; wants b. wants; needs c. wants; cravings d. cravings; needs e. needs; preferences

Q: Which of the following statements best defines consumer needs and wants? a. Needs are far more influential than wants with respect to marketing decision making. b. Wants affect marketing decisions primarily for planned purchases while needs affect marketing decisions primarily for impulse purchases. c. Wants occur when a person feels deprived of basic necessities such as food, clothing, and shelter while needs are determined by a person's knowledge, culture, or personality. d. Needs occur when a person feels deprived of basic necessities such as food, clothing, and shelter while wants are determined by a person's knowledge, culture, or personality. e. Needs and wants are exactly the same.

Q: A want refers to a. a sense of personal inadequacy based upon observations by others around you. b. a sense of urgency that causes a person to take action. c. a need that is shaped by a person's knowledge, culture, or personality. d. a feeling of being deprived of something, but not fully understanding what it may be. e. a situation when a person feels deprived of basic necessities such as food, clothing, and shelter.

Q: A need refers to a. a sense of personal inadequacy based upon observations by others around you. b. a sense of urgency, which causes a person to take action. c. a feeling that is shaped by a person's knowledge, culture, or personality. d. a feeling of being deprived of something, but not fully understanding what it may be. e. a situation when a person feels deprived of basic necessities such as food, clothing, and shelter.

Q: Rebecca Gollanek makes and sells wood cooling racks for cakes, cookies, and breads for $22.50 each. She has invested $4,300 in the venture and made $2,200 in net profit. Calculate her return on investment.a. 19.5%b. 20.5%c. 43.0%d. 48.8%e. 51.%

Q: __________ is the financial ratio that measures the inventory turnover rate. a. Markup b. Selling price c. Return on investment d. Stockturn rate e. Markdown

Q: The gift shop purchased four sets of Block brand handpainted stemware expecting to sell all four at the list price of $24.99. Unfortunately, the demand for the stemware was not as high as the owner had anticipated. She was only able to sell one at this price. She reduced the price on the other three sets to $16.49 and was able to sell all three sets. Calculate her markdown percentage.a. 0.34 percentb. 3.43 percentc. 34.3 percentd. 2.78 percente. 27.8 percent

Q: When Paulette saw the dress in the store window, she knew two things. She had to own the dress, and she could not afford it at its current price. As she visited the dress in the store, she thought of the dress as her own and believed no one else would buy it. It seems she was right because no one else did buy it and the store had to reduce its price by 30 percent in order to dispose of it. This made it affordable for Paulette, who took advantage of a(n) a. negative markup. b. markup elimination. c. markdown. d. liquidity reduction. e. increase in net margin.

Q: A __________ is a reduction in a retail price that is necessary if the item will not sell at the full selling price to which it has been marked up. a. stockturn rate b. markdown c. ROI d. markup e. net margin

Q: Jane Westerlund, owner of a retail frame store, raises the average price of a framed picture to $100 and the cost of goods sold is $36. If the markup on cost is 150 percent, what is the markup on selling price?a. 36 percentb. 60 percentc. 100 percentd. 150 percente. 300 percent

Q: If Jane Westerlund, owner of a retail frame store, raises the average price of a framed picture to $80 and the cost of goods sold is $36, what is the percentage markup on cost?a. 36 percentb. 55 percentc. 64 percentd. 100 percente. 182 percent

Q: The ___________ is the amount added to the cost of goods sold (COGS) to arrive at the selling price. a. markup b. selling price c. return on investment d. stockturn rate e. markdown

Q: To increase the number of dogs boarding at its facilities, Muntz Kennels mailed coupons to dog owners who lived within a 25-mile radius of the facility. The printing and postage costs for the mailing plus the coupon redemptions would appear in which major expense category on the company's income statement? a. general b. administrative c. fixed d. selling e. variable

Q: The three major categories of expenses are: a. direct, semi-direct, and indirect. b. variable, fixed, and semi-variable. c. external, internal, and personal. d. manufacturing, promotion, and distribution. e. selling, administrative, and general.

Q: The inventory for Jane Westerlund's frame shop would include a. her molding, matting, and glass. b. her skill in framing prints. c. her equipment, chairs, tables. d. her cost of goods sold. e. her rent and utility expenses.

Q: The total cost of the products sold by a firm during a specified period is called a. amortization. b. cost of goods sold. c. gross sales. d. net sales. e. gross margin.

Q: All of the following are cost elements of an operating statement EXCEPT: a. cost of goods sold b. inventory c. returns and allowances d. direct labor e. purchase discounts

Q: Gross sales minus returns and allowances equals a. inventory shrinkage. b. discounted return on investment. c. gross sales. d. net sales. e. gross margin.

Q: When Beth purchased diabetic candy from a catalog retailer, she was sent orange- and lemon-flavored candy coated in dark chocolate. When she called to complain to the catalog retailer, she was told to keep the candy that was incorrectly sent to her, and that the company would immediately ship her the correct candy. This erroneous shipment of candy would be listed as a(n) __________ on the operating statement for the catalog retailer. a. product return b. markdown c. amortized product d. liquidity error e. allowance

Q: A company's gross sales may be reduced by a. the size of the contribution margin. b. the percentage of markdowns. c. depreciation and amortization. d. stockturn rate and the markup percentage. e. returns or allowances.

Q: Which of the following is a sales element of an operating statement? a. cost of goods sold b. inventory c. direct labor d. allowances e. selling expenses

Q: A company's operating statement consists of three key elements: sales of the firm's products and services, costs incurred in making and selling these products and services, and a. stock turn rates for its various products. b. profit or loss. c. markup on cost. d. return on investment. e. bundle pricing options.

Q: A company's operating statement is also called its ______________. a. income statement. b. balance sheet. c. defacto annual report. d. assets-liabilities statement. e. data mine.

Q: The __________ summarizes the profitability of a business firm for a specific time period, usually a month, quarter, or year. a. balance sheet b. annual report c. income statement d. assets-liabilities statement e. data mine

Q: Based on a market-product grid framework, which marketing strategy offers all product lines to all market segments? a. full coverage b. market specialization c. product specialization d. selective specialization e. market-product concentration

Q: What is the primary disadvantage of employing a selective specialization strategy? a. Gaining market distribution will be costly. b. The organization may be spread too thin. c. The organization achieves neither marketing nor manufacturing synergies. d. R&D-manufacturing has the difficulty of producing multiple new lines. e. It is too risky for a company to "put all its eggs in one basket."

Q: What is the primary disadvantage of employing a product specialization strategy? a. The organization may be spread too thin. b. The organization achieves neither marketing nor manufacturing synergies. c. R&D-manufacturing has the difficulty of producing multiple new lines. d. There are too many product substitutes over which a firm would not have control. e. Gaining market distribution will be costly.

Q: Loving Care Pets manufactures food for dogs, cats, rabbits, and gerbils specifically created for pets under three months of age. In terms of the market-product grid framework, adding a line of pet food for mature dogs, cats, rabbits, and gerbils will result in a __________ strategy that will provide Loving Care Pets with increased marketing efficiencies. a. market specialization b. market product concentration c. product specialization d. selective specialization e. full coverage

Q: Loving Care Pets manufactures food for dogs, cats, rabbits, and gerbils specifically created for pets under three months of age. Assuming it is marketing to a single segment of "young pet owners," in terms of the market-product grid framework, Loving Care Pets is using a __________ strategy. a. market-product concentration b. market specialization c. product specialization d. selective specialization e. full coverage

Q: What is the primary disadvantage of employing a market specialization strategy? a. Gaining market distribution will be costly. b. The organization may be spread too thin. c. The organization achieves neither marketing nor manufacturing synergies. d. R&D-manufacturing has the difficulty of producing multiple products. e. There are too many product substitutes over which a firm would not have control.

Q: Based on a market-product grid framework, which marketing strategy would most likely offer the greatest marketing synergies or efficiencies? a. market-product concentration b. product specialization c. market specialization d. selective specialization e. universal concentration

Q: Based on a market-product grid framework, which marketing strategy focuses on a single market segment but adds additional product lines? a. full coverage b. market specialization c. product specialization d. selective specialization e. market-product concentration

Q: Loving Care Pets manufactures dog food specifically created for puppies under three months of age. In terms of the market-product grid framework, Loving Care Pets is a small firm without sustainable comparative advantages in marketing or production efficiencies. Loving Care Pets is using a __________ strategy. a. market-product concentration b. market specialization c. product specialization d. selective specialization e. full coverage

Q: Based on a market-product grid framework, which marketing strategy involves developing a single product for a single market? a. full coverage b. market-product concentration c. market specialization d. product specialization e. selective specialization

Q: There are five alternative marketing strategies that can be identified by market-product grids: market-product concentration, market specialization, product specialization, selective specialization, and __________. a. full coverage b. diversification c. market development d. selective marketing e. new product specialization

Q: There are five alternative marketing strategies that can be identified by market-product grids: market-product concentration, market specialization, product specialization, __________, and full coverage. a. selective distribution b. market development c. product reorientation d. new product specialization e. selective specialization

Q: There are five alternative marketing strategies that can be identified by market-product grids: market-product concentration, market specialization, __________, selective specialization, and full coverage. a. selective distribution b. product specialization c. market development d. product reorientation e. new product specialization

Q: There are five alternative marketing strategies that can be identified by market-product grids: market-product concentration, __________, product specialization, selective specialization, and full coverage. a. diversification b. selective distribution c. market specialization d. product reorientation e. new product specialization

Q: The five alternative marketing strategies that can be identified by market-product grids are: __________, market specialization, product specialization, selective specialization, and full coverage. a. diversification b. selective distribution c. product reorientation d. market-product concentration e. new product specialization

Q: A market-product grid shows __________ horizontally across the rows and __________ vertically down the columns. a. financial synergies; marketing synergies b. distribution synergies; R&D-manufacturing synergies c. R&D-manufacturing synergies; financial synergies d. revenue synergies; cost synergies e. marketing synergies; R&D-manufacturing synergies

Q: A market-product grid can help identify a. the fastest areas of industry growth. b. competitors that offer product substitutes. c. marketing and R&D-manufacturing synergies. d. technological breakthroughs leading to new product opportunities. e. product offerings by the resources invested to maintain them.

Q: Synergy analysis incorporates two business analysis tools, which are diversification analysis and __________. a. Porter's generic business strategy b. the market-product grid framework c. SWOT analysis d. Porter's competitive advantage e. share point analysis

Q: Synergy analysis incorporates two business analysis tools, which are __________ and the market-product grid framework. a. diversification analysis b. Porter's generic business strategy framework c. SWOT analysis d. Porter's competitive advantage e. share point analysis

Q: Synergy analysis seeks opportunities by finding the optimum balance between a. the needs of the manufacturer versus the needs of the consumer. b. the desire for profit versus responsibility to society as a whole. c. the expense of marketing effort versus the marketing results obtained. d. a firm's market segments and its product groupings. e. marketing efficiencies versus R&D-manufacturing efficiencies.

Q: The increased customer value achieved through performing R&D-manufacturing functions more efficiently is referred to as __________. a. points of difference b. proficiency c. synergy d. kiatsu e. competitive advantage

Q: The increased customer value achieved through performing marketing functions more efficiently is referred to as __________. a. points of difference b. proficiency c. kiatsu d. synergy e. competitive advantage

Q: Synergy analysis refers to a. identifying a company's potential strengths, weaknesses, opportunities, and threats. b. relating the expense of marketing effort to the marketing results obtained. c. using percentage points of market share as the common basis of comparison to allocate marketing resources effectively for different product lines within the same firm. d. using a framework to relate the market segments of potential buyers to products offered or potential marketing actions by an organization. e. seeking opportunities by finding the optimum balance between marketing efficiencies versus R&D-manufacturing efficiencies.

Q: Seeking opportunities by finding the optimum balance between marketing efficiencies versus R&D-manufacturing efficiencies is referred to as __________. a. differentiation analysis b. synergy analysis c. SWOT analysis d. sales response analysis e. market-product grid analysis

Q: Volkswagen achieved spectacular success in the late 1990s by targeting the "nostalgia" segment, 35- to 54-year-old baby boomers, with its technology-laden New Beetle. Which of Porter's generic business strategies did Volkswagen use to launch the New Beetle? a. differentiation focus b. cost leadership c. differentiation d. cost focus e. marketing focus

Q: Hyundai Motor America (HMA) became the first automaker to offer consumers an Internet parts ordering system. The system was targeted only to current Hyundai owners and gave Hyundai the ability to collect a vast amount of customer data about people who buy its cars. Which of Porter's generic business strategies did Hyundai use when it launched its Internet parts website? a. cost leadership b. differentiation focus c. differentiation d. cost focus e. marketing focus

Q: Hard Candy is a cosmetics company that markets the Palm Paletteall the make-up a "girl-on-the-go" needs without a cumbersome make-up bag. It comes in three shadesglam, funky, and girlies. Hard Candy targets women who are twenty somethings. Which one of Porter's generic business strategies does Hard Candy use? a. differentiation focus b. cost focus c. differentiation d. cost leadership e. profit enhancement

Q: A differentiation focus strategy refers to one of Porter's generic business strategies that a. involves controlling expenses and, in turn, lowering product prices targeted at a narrow range of markets segments. b. focuses on reducing expenses and, in turn, lowers product prices, while targeting a broad array of market segments. c. requires products to have significant points of difference to target one or only a few market segments. d. requires products to have significant points of difference to charge a higher price while targeting a broad array of market segments. e. seeks opportunities by finding the optimum balance between marketing efficiencies versus R&D"manufacturing efficiencies.

Q: One of Porter's four generic business strategies requires that products have significant points of difference to target one or only a few market segments is referred to as a __________ strategy. a. cost focus b. differentiation c. cost leadership d. profit enhancement e. differentiation focus

Q: Office Max provides low product prices for office supplies. In terms of Porter's generic business strategy, Office Max uses a __________ strategy. a. differentiation focus b. cost focus c. differentiation d. revenue leadership e. profit enhancement

Q: A cost focus strategy refers to one of Porter's generic business strategies that a. focuses on reducing expenses and, in turn, lowers product prices, while targeting a broad array of market segments. b. requires products to have significant points of difference to target one or only a few market segments. c. requires products to have significant points of difference to charge a higher price while targeting a broad array of market segments. d. involves controlling expenses and, in turn, lowering product prices targeted at a narrow range of markets segments. e. seeks opportunities by finding the optimum balance between marketing efficiencies versus R&D"manufacturing efficiencies.

Q: One of Porter's generic business strategies involves controlling expenses and lowering product prices targeted at a narrow range of market segments. This is referred to as a __________ strategy. a. cost focus b. cost leadership focus c. differentiation focus d. differentiation e. profit enhancement

Q: Many people are concerned about "eating healthy," but many of these same people still grab lunch at fast food restaurants because the restaurants are convenient and they like cheeseburgers. Burger King has created a veggie burger that "tastes like the real thing without all the fat." Burger King is using a __________ strategy to attract this large market that encompasses many different segments. a. cost leadership strategy b. cost focus strategy c. differentiation strategy d. different focus strategy e. service focus strategy

Q: Delphi Automobile Systems manufacturers and sells satellite communications systems for automobiles that connect you and your car to 24-hour-a-day emergency service, direct you to a destination, and enable you to order a movie while on the road. Because of the unique services it provides, it charges a higher price than its competitors. Delphi Automobile Systems is using a(n) __________. a. cost leadership strategy b. cost focus strategy c. differentiation focus strategy d. innovation strategy e. differentiation strategy