Chapter 1 & 2 practice quiz BA370

Quiz Questions Chapter 1 ● A firm that creates value by developing a variety of offerings including goods, services, and ideas is doing so through which element of the four P’s? ○ Price ○ Place ○ Planning ○ People ○ Product ● Nike’s sneakers are an example of which of the following types of marketing offerings? ○ Innovation ○ Goods ○ Services ○ Ideas ○ Promotions ● According to your text, which of the following can be said regarding the use of social media in advertising? ○ Facebook is the social media site of choice for marketers because 75 percent of the world’s population has signed up for a Facebook account ○ Marketers are reluctant to use social media in advertising because technology is changing so rapidly ○ Only about 30 percent of the world’s population uses Facebook - which means 70 percent still has not signed up ○ Facebook is nowhere near saturation in countries like the United States and United Kingdom ○ The use of social media, once the premier way to connect to consumers, is rapidly falling off in popularity due to privacy concerns among users ● During the last couple of decades, it has become important for value-oriented marketers to ____________ with customers. ○ Move from a transactional orientation to a transitional perspective ○ Manage transactions more efficiently ○ Reduce the number of transactions to improve relationships ○ Move toward a relational orientation from a transactional perspective ○ Consider how they can reduce their interactions ● A group that sponsors poster contests for children to promote bicycle safety is providing which of the following marketing offerings ○ Services ○ Goods ○ Ideas ○ Innovations ○ Promotions ● Frontier Airline has gained success because enough travelers are willing to trade off carrying extra items for a lower price ticket. The _______ reflects the capture of value in the marketing exchange. ○ Product ○ Services

○ Price ○ Promotion ○ Place ● Which of the following illustrates how marketing has a direct impact on consumers? ○ Marketing advises production about how much product to manufacture ○ Marketing creates long-lasting relationships between the firm and its suppliers ○ Marketing helps firms expand globally ○ Marketing helps consumers learn about new products and services ○ Marketing advises logistics about when to ship products ● The ________ addresses how a product will be designed, how much it should cost, how it will be promoted, and how it will get to consumers ○ Marketing concept ○ Competitive advantage ○ Marketing plan ○ Customer franchise ○ Marketing exchange ● Firms that are _____ recognize that including a strong social orientation in business is a sound strategy that is in the best interest of both the firm and its customers. ○ Profit-driven ○ Socially responsible ○ Production-oriented ○ Sales-oriented ○ Translation-oriented ● Which of the following is one of the core practices among value-oriented marketers? ○ Keeping information confidential by not sharing it among the firm’s different departments ○ Constantly measuring the benefits that customers receive against the costs of offerings ○ Maintaining a transactional orientation in the seller-buyer relationship ○ Managing the relationships among employees ○ Consistently selling products below the production ● Value-oriented marketers engage in an ongoing process of balancing the perceived benefit to customers and the price. ● Firms become value driven by focusing on which of the following activities? ○ Balancing customer benefits and costs ○ Sharing information ○ Building relationships ● Which of the following are associated with marketing, as defined by the American Marketing Association? ○ Activities that communicate offerings that have value for society at large ○ Processes used to create value for clients ○ Institutions that facilitate the exchange of offerings that have value for customers. Chapter 2 ● General Electric determined that it would close down divisions that were in low-growth markets that had relatively low market shares. According to the BCG product portfolio

● Which of the following is a marketing metric that might be used to evaluate the performance of a company’s implementation of its marketing plan? ○ Four P’s (price, product, promotion, place) ○ SWOT analysis (strengths, weaknesses, threats, opportunities) ○ STP (segmentation, targeting, positioning) ○ GM (gross margin) ○ SBU (Strategic Business unit) ● Southwest Airlines is recognized as an industry leader for exemplary customer service and has continued to add new ways to serve customers better than competitors. In doing so, it has focused on sustaining its competitive advantage through _____ excellence ○ Customer ○ Operational ○ Sustainable ○ Product ○ Locational ● In an attempt to increase sales during a lagging economy. Marvel has expanded its movie offerings to stimulate sales in its current markets. Which growth strategy is Marvel employing? ○ Product development ○ Market development ○ Market penetration ○ Diversification ○ Demarketing ● The Goodyear Tire company is organized by regions: North America, Europe, Middle East and Africa, Latin America, and Asia Pacific. These divisions of Goodyear are called ○ Segments ○ Strategic business units ○ Metrics ○ Portfolios ○ Marketing mixes ● Firms that use multiple strategies to build a sustainable competitive advantage have difficulty maintaining long-term success. ○ False ● A market penetration strategy, as one of the possible growth options, may be achieved by which of the following? ○ Encouraging current customers to patronize the firm and the brand more often ● A marketing strategy identifies a firm’s target markets, a related marketing mix, and the bases upon which the firm plans to build a sustainable competitive advantage. ● What are the main purposes of metrics during the final step of the marketing planning process? ○ To predict what will happen ○ To explain why things happened ● A market penetration growth strategy focuses on increasing sale of the firm’s current products to its current target market ● Which statement about product excellence is true?

○ It is achieved by having products with high perceived value and effective branding and positioning ● A firm can begin to implement the marketing mix immediately after which step? ○ After it has finished segmentation, targeting, and positioning ● A strategy that employs existing products or services to reach new market segments is called market development. ● A diversification strategy introduces a new product or service to a new market segment, one that the firm has NOT yet targeted. ● A portfolio analysis involves which of the following? ○ Management evaluates the firm’s various products and businesses ○ Management allocates its resources to products with the greatest potential to be profitable ●