BUSN 319 by ant77036

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(TCO 1) Applying the strategy used by David Windorski at 3M to other organizations would suggest that
these firms should

 Your Answer:
        find a winning strategy and
        stick with it.
                                       ( The first objective in marketing is discovering the
        search continuously to        needs of prospective consumers. This is far more
        discover customers            difficult than it sounds. David Windorski worked with          CORRECT
        needs.                        college students and observed how they studied to
                                      discover their needs. )
          change strategies every
          ten years to avoid getting
          not pay too much attention
          to customers since they
          often change their minds.
          focus on the shareholders
          of the company and the
          strategy will follow.
 Instructor Explanation: Page 4 Points   Received: 3 of 3 2. Question:

(TCO 1) The Daniels College of Business at the University of Denver offers an outstanding business school
education. Cali pays the tuition to attend Daniels and earns her MBA with a concentration in Supply Chain
Management. Upon graduating, she is offered a high paying, fulfilling position. Was this a marketing

 Your Answer:
        no, because the university
        is a private one.
        yes, because the university
        is profitable.
                                      ( Marketers seek to discover and satisfy the needs and
                                      wants of customers. The key to achieving these
        yes, because paying           objectives is exchange the trade of things of value
        tuition was exchanged         between buyer and seller so that each benefits from the
        for knowledge that            exchange. In this instance, Cali is the customer and           CORRECT
        directly led to Cali s        Daniels is the marketer. An exchange occurs: Cali pays
        fulfilling, new job.          tuition and earns her degree, leading to a fulfilling career
                                      and the school receives tuition used to pay operating
                                      expenses so that it may continue to operate. )
          no, because money was
          no, because the school did
          not provide Cali with a
 Instructor Explanation: Page 7 Points   Received: 3 of 3 3. Question:
(TCO 1) The first objective in marketing is to

 Your Answer:
         discover the needs of              ( : Marketing seeks to (1) discover the needs of
         prospective consumers.             prospective customers, and (2) satisfy those needs.   )
         discover the needs of
         discover the needs of sellers.
          satisfy the needs of
          satisfy the desires of various
 Instructor Explanation: Page 9 Points     Received: 3 of 3 4. Question:

(TCO 6) Kraft produces Lunchables, a prepackaged meal usually consisting of several crackers, small
slices of meat, and small slices of cheese. Some versions contain Capri Sun drinks. Others are called
Cracker Stackers and Fun Fuel. The box is bright yellow and the quantity of food contained within is
small. The target market for Kraft Lunchables is most likely

 Your Answer:
                             ( A target market is a specific group of potential consumers toward
         moms of
                            which an organization directs its marketing program. In this case
         school-age                                                                                   CORRECT
                            Lunchables is targeted toward moms of school-age children to be
                            used for the children s lunch. )
         business people
         looking for a
         quick snack
 Instructor Explanation: Page 13 Points Received: 3 of 3 5. Question:

(TCO 6) Which of the following would a marketer use as a synonym for controllable marketing mix

 Your Answer:
         the five external environmental forces
         macromarketing forces
         the five Cs
         the four Ps                                    ( Key term definition marketing mix ) CORRECT
         price, product, production, and promotion
 Instructor Explanation: Page 13 Points Received: 3 of 3 6. Question:

(TCO 1) __________ is the money left over after a business firm's total expenses are subtracted from its
total revenues.
 Your Answer:
         Shareholders' equity
         Profit                 ( Key term definition profit ) CORRECT ANSWER
         Inventory turnover                                  INCORRECT
         Contribution margin
         Asset leverage
 Instructor Explanation: Page 28 Points Received: 0 of 3 7. Question:

(TCO 1) Which of the following statements about the strategic business unit level is most true?

 Your Answer:
         It is the level that works most
         directly with the targeted                                                             INCORRECT
         The overall strategy for the
         organization is directed at the
         strategic business unit level.
         In more complex organizations
         the corporate level and the
         strategic business unit level may
         More end-user analysis is
         provided at the strategic
         business unit level then at the
         functional level.
                                           ( : At the strategic business unit level,
          The strategic direction is
                                          managers set a more specific strategic
          more specific at the strategic                                                      CORRECT
                                          direction for their businesses to exploit value-
          business unit level than at the                                                    ANSWER
                                          creating opportunities than at the corporate
          corporate level.
                                          level )
 Instructor Explanation: Page 30 Points Received: 0 of 3 8. Question:

(TCO 1) A key role of the marketing department is to

 Your Answer:
         allocate financial
         resources across
         business units.
         set the overall
         mission of the
         provide talent
                                ( A key role of the marketing department is to look outward,
                               keeping the organization focused on creating value both for it
         look outward.                                                                             CORRECT
                               and for customers. This is accomplished by listening to
                               customers, developing and producing offerings, and
                                implementing marketing program activities. )
          assess global
          political situations.
 Instructor Explanation: Page 30    Points Received: 3 of 3 9. Question:

(TCO 1) Often used interchangeably with vision a(n) __________ statement frequently has an
inspirational theme.

 Your Answer:
         point of difference
         mission                       ( Key term definition mission ) CORRECT
         business map
         internal situation analysis
         CEO s annual
 Instructor Explanation: Page 32 Points Received: 3 of 3 10. Question:

(TCO 1) The ratio of sales revenue of the firm to the total sales revenue of all firms in the industry,
including the firm itself, is called

 Your Answer:
         sales quality.
         market share.          ( Key term definition market share ) CORRECT
         industry potential.
         contribution margin.
         marginal revenue.
 Instructor Explanation: Page 34 Points Received: 3 of 3 11. Question:

(TCO 1) What are the three steps involved in the PLANNING phase of the strategic marketing process?

 Your Answer:
                                                ( The three steps involved in the planning phase
         situation (SWOT) analysis;
                                               of the strategic marketing process are listed in
         market-product focus and goal
                                               Figure 2-5 as Situation (SWOT) analysis,             CORRECT
         setting; and marketing program
                                               market-product focus and goal setting, and
                                               marketing program. )
         planning; implementation; and
         set market and product goals;
         select target markets; find points of
         difference; and position the product
         identify industry trends; analyze
         competitors; assess own company;
         and research customer
         identify where we have been; where
         we are headed; and where we are
 Instructor Explanation: Page 44 Points Received: 3 of 3 12. Question:

(TCO 1) The consumer products industry is one with several large competitors, soaring raw materials
prices, and strong demands from powerful retailers for lower prices. As a result Colgate-Palmolive Co.
and Unilever Group, the makers of products such as Colgate toothpaste and Ben & Jerry s ice cream both
reduced their earnings forecasts. Yet Proctor & Gamble, another consumer products company did not. At
P & G innovation is a key attribute, allowing the company to update all 200 of their brands and to invent
products such as Crest Whitestrips that consumers crave. P & G has also used its marketing know-how to
develop unique product placements on television shows that highlight its brands. A SWOT analysis for P &
G of this information would indicate that the overall industry situation is a __________ while the invention
taking place at P & G is a __________.

 Your Answer:
                          ( A threat is an external factor such as soaring raw materials
         threat;          prices and strong demands from powerful retailers for lower         CORRECT
         strength         prices; a strength is an internal attribute such as innovation and ANSWER
                          marketing know how that can be used to improve the company. )
 Instructor Explanation: Page 44 Points Received: 0 of 3 13. Question:

(TCO 1) To provide quick access to topics, a well-organized marketing plan should begin with

 Your Answer:
         an executive
         the strategic
                             ( The table of contents provides quick access to the topics in
         a table of                                                                            CORRECT
                            the plan, usually organized by section and subsection
         contents.                                                                            ANSWER
                            headings. )
         a situation
         the market-
         product focus.
 Instructor Explanation: Page 57 Points Received: 0 of 3 14. Question:

(TCO 5) A company engaged in environmental scanning is

 Your Answer:
         taking into account the effect its marketing activities can
         have on plants and animals in our environment.
         continually acquiring information on events
                                                                      ( Key term definition
         occurring outside the organization to identify and                                       CORRECT
                                                                     environmental scanning   )
         interpret potential trends.
         maintaining a time constant horizon in its strategic
         planning process.
         maintaining retail customer databases.
          requiring all employees to spend time outside the office to
          avoid the "ivory tower" syndrome.
 Instructor Explanation: Page 70 Points Received: 3 of 3 15. Question:

(TCO 5) The social forces of the environment include the ____________ of the population and its values.
Changes in these forces can have a dramatic impact on marketing strategy.

 Your Answer:
         living standards
         social class
         demographic characteristics       ( Key term definition social forces ) CORRECT
 Instructor Explanation: Page 71 Points Received: 3 of 3 16. Question:

(TCO 5) The age segment in America expected to double in size by 2030 is composed of

 Your Answer:
                            ( Today, there are approximately 35 million people 65 and older in
         people aged
                            America. By 2030, this age group will include more than 70 million    CORRECT
         65 and over.
                            people or 20% of the population. )
         children of
         baby boomers.
         people in their
         early 30s.
 Instructor Explanation: Page 73 Points Received: 3 of 3 17. Question:

(TCO 6) The concern for obtaining the best quality, features, and performance of a product or service for a
given price is called

 Your Answer:
         changing values.
         multi-dimensional consumption.
         buyer excellence.
         purchasing excellence.
         value consciousness.            ( Key term definition value consciousness ) CORRECT
 Instructor Explanation: Page 78 Points Received: 3 of 3 18. Question:

(TCO 5) In an inflationary economy, the cost to produce and buy products and services __________ as
prices __________.

 Your Answer:
          escalates;          ( In an inflationary economy, the cost to produce and buy
          increase           products and services escalates as prices increase. )
          does not change;
 Instructor Explanation: Pages 78 - 79 Points Received: 3 of 3 19. Question:

(TCO 5) Very recently ink has been developed that will conduct electricity. The application for this ink is
to print circuitry that can be read electronically. This may help to drive down the cost of identification
tags called RFID tags that are currently used in industry. This is an example of how __________ is
applied to industry.

 Your Answer:
                        ( Technology refers to inventions or innovations from applied science or
         technology                                                                              CORRECT
                       engineering research such as this type of ink. )
 Instructor Explanation: Page 81 Points Received: 3 of 3 20. Question:

(TCO 5) __________ is the form of competition where just a few companies control the majority of
industry sales.

 Your Answer:
         Pure competition
         Cross-market competition
         Oligopoly                  ( Text term definition oligopoly ) CORRECT
         Monopolistic competition
 Instructor Explanation: Page 84 Points Received: 3 of 3 21. Question:
(TCO 6) Which of the following statements about the problem recognition stage of the purchase decision
process is most true?

 Your Answer:
         The decision-maker perceives a
         difference between their actual
         and ideal situations but it s not
         big enough to trigger a
                                             ( During the purchase decision process, an individual
                                            at the problem recognition will perceive differences
                                            between his or her ideal and actual situations big
          Advertisements can activate
                                            enough to trigger a decision. Advertisements can
          a consumer s decision
                                            activate a consumer s decision process by showing
          process by showing                                                                         CORRECT
                                            shortcomings of competing or currently owned
          shortcomings of competing
                                            products. The memory scan takes place in the
                                            information search stage, while the advertising
                                            suggesting criteria to use for the purchase takes
                                            place in the information search stage. )
          Advertisements can only
          activate a consumer s decision
          process by showing
          shortcomings of currently
          owned products.
          The consumer scans their
          memory for previous
          experiences with certain
          products or brands.
          The consumer pays attention
          to advertising suggesting
          criteria to use for the purchase.
 Instructor Explanation: Page 116 Points Received: 3 of 3 22. Question:

(TCO 6) Customer satisfaction is an important focus for marketers because

 Your Answer:
          marketing research is an
          inexpensive process.
          the financial value of a            ( Research shows that a 5 percent improvement
          retained customer can be           in customer retention can increase a company s          CORRECT
          significant.                       profits by 70 to 80 percent. )
          customer value is a non-
          quantifiable statistic.
          attracting new customers is easier
          than keeping old ones.
          a market development strategy is
          preferable to a market
          penetration strategy.
 Instructor Explanation: Page 119 Points Received: 3 of 3 23. Question:
(TCO 6) __________ buy raw materials and parts that they reprocess into the finished goods they sell.

 Your Answer:
                            ( Manufacturers buy raw materials and parts that they reprocess
                           into the finished goods they sell. Wholesalers and retailers resell
                           finished goods without reprocessing them. Manufacturers agents
          Manufacturers                                                                            CORRECT
                           sell the finished goods for manufacturers without taking title to the
                           goods. Ultimate consumers are the final users of the goods and
                           services. )
 Instructor Explanation: Page 144 Points Received: 3 of 3 24. Question:

(TCO 6) Because orders in organizational buying are typically much larger than in consumer buying,
buyers must often __________ when the order is above a specific amount, such as $5,000.

 Your Answer:
                                         ( : With so much money at stake, most organizations
         get competitive bids
                                        place constraints on their buyers in the form of
         from at least three                                                                       CORRECT
                                        purchasing policies or procedures such as obtaining
         prospective suppliers
                                        competitive bids. )
         lie to their superiors about
         how much things really cost
         carry personal insurance to
         cover possible losses
         pay taxes out of their own
         do all of the above
 Instructor Explanation: Page 148 Points Received: 3 of 3 25. Question:

(TCO 6) Seven of the most commonly used organizational buying criteria are (1) __________, (2) ability
to meet the quality specifications required for the item, (3) ability to meet required delivery schedules, (4)
technical capability, (5) warranties and claim policies in the event of poor performance, (6) past
performance on previous contracts, and (7) production facilities and capacity.

 Your Answer:
         taste of the buyer
         personal friendship with sales
                                                   ( Key term definition organizational buying
         price                                                                                     CORRECT
                                                  criteria )
         current mood of the buyer
         opinion of the firm's senior
 Instructor Explanation: Page 149 Points Received: 3 of 3

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