Marketing 3100 Nifty Fifty Final Study Guide

TRUE/FALSE
1. 2. 3. 4. 5. 6. 7. 8. Marketing is defined as producing, promoting, and selling products. True The marketing concept states that the social and economic justification for an organization's existence is the satisfaction of customer's wants and needs while meeting organizational objectives. True All sales have an implied warranty. True For a firm that adheres to the marketing concept, the logical place to start generating new-product ideas is with the customers of the firm. True The four P's of the marketing mix are product, planning, promotion, and price. False: product, place, promotion, and price. Strategic planning is most effective when managers view it as an annual exercise. False Profits typically reach their peak during the growth stage of the product life cycle. True Convenience is not usually a factor when selecting a service provider as it is when selecting a product retailer. False The emergence of the Internet has made buying and selling in the business market a process that is only efficient for the largest producer to pursue. False

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The six Ps of the retailing mix are product, place, price, promotion, personnel, and planning. False, presentation (not planning) The process of centralizing data in a CRM system is sometimes referred to as the interpolation of external and internal touch points. False, Data Warehousing Promotion is communication by marketers that informs, persuades, and reminds potential buyers of a product in order to influence their opinion or elicit a response. True Because the Internet changes at such a rapid pace, clearly defined goals are not so important. It's more important to keep up than to have well-defined objectives. False The goal of advertising is to change people's values. False, change perceptions

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15. Researchers are unanimously convinced of the effectiveness of banner advertising on Internet Web sites. False 16. Coupons are more likely to encourage repeat purchases by regular users than stimulate product trial by nonusers. False MULTIPLE CHOICE 17. The term marketing refers to: A philosophy that stresses customer satisfaction

18 . _____ is a set of activities used to implement a management orientation that stresses customer satisfaction. Marketing

19. The key term in the American Marketing Association's definition of marketing is: Exchange 20. A product line is a group of products that are closely related because the: Products all function in a similar manner and provide similar benefits. 21. Four competing philosophies strongly influence the role of marketing and marketing activities within an organization. Which of the following is NOT a marketing management philosophy? Profitability Orientation Is: Sales, Societal Marketing, Marketing, Production 22. Firms with a _____ orientation focus on the internal capabilities of the firm rather than on the desires and needs of the marketplace. Production 23. 24. 25. _____ takes new technologies and attempts to find useful applications for them. Applied Research Market segmentation: Should be redone periodically Which of the following is NOT one of the four criteria identified in the text for successful market segmentation? Targetability

26 . Income, ethnic background, gender, and age are all examples of _____ segmentation bases. Demographic 27. Due to service _____, services cannot be stored, warehoused, or inventoried. Perishability 28. Competitive intelligence allows managers to: All these: predict changes in business relations, forecast a competitors strategy, Learn about new technologies that can affect the company, Learn about impact of proposed legislation. 29. Agents and brokers: None of these: Take title to merchandise, only represent manufacturers in sales situation, great input on terms of sale, are on salary with the manufacturer.

30. The three basic functions channel members perform are: Transactional, Logistical, Facilitating 31.Supply chain management: All of these: physical flow process, customer driven, provides enhanced customer and economic value, plays the role of communicator of customer demand 32. If an increase or decrease in the price of a product does not significantly affect demand for the product, the demand is called price: Inelastic

33. _____ is communications by marketers that inform, persuade, and remind potential buyers of a product in order to influence an opinion or elicit a response. Promotion 34. The main function of promotion is to: Convince the customers a firms products offers differential advantages over those of its competition. 35. Personal selling is pervasive in organizational markets because: Many organizational products are complex and require expertise on a sales persons part. 36. What are the three basic tasks of promotion? Inform, persuade, and remind 37. The use of ethical decision making: Is all of these: Can be influenced by top managers, is influenced by the probability of harmful outcomes, depends on the number of people to be affected, depends on the magnitude of possible consequences 38 Corporate social responsibility is defined as the: Concern for social welfare by business

39. Why do some marketers offer rebates instead of price reductions to induce short-term sales? Rebates are especially good at enticing purchases but most customers never bother to redeem them. 40. 41. Which of the following is one of the elements of the marketing plan? All: Business mission statement, situation analysis, Target Marketing strategy, Marketing Mix An organization is using _____ when it sets its prices so that total revenue is as large as possible relative to total costs. Profit Maximization

42. _____ measures the overall effectiveness of management in generating profits with its available assets. Return on Investment 43. Market share pricing is a: Percentage of total sales for that industry 44. If a company's pricing objective is to meet the competition or to maintain existing prices, it is using _____ pricing. Status Quo Pricing 45. Although many factors can influence price, the primary determinants are: Cost

46. _____ is defined as the unit or dollar quantity of a product that will be sold at various prices for a specified period. Demand 47. The quantity of a product that people will buy/demand is most dependent on its: Price 48. _____ is defined as the quantity of product offered to the market by suppliers at various prices for a specified period. Supply 49. The responsiveness or the sensitivity of consumer demand to changes in price is referred to as _____and occurs when consumers buy more or less of a product when the price changes. Elasticity of Demand 50. When consumers are sensitive to price changes, ______ occurs. Elastic Demand