Answer 4 questions you feel confidently about
Elizabeth has developed a promotional campaign for a client that promises a hefty return for her owned cash-strapped business. While the campaign does not violate any laws, it might be considered manipulative and misleading, especially when targeted toward senior citizens. If Elizabeth were to consult the AMA Code of Ethics she’d discover:
- there is a high value placed on creative approaches for clients which can outweigh other concerns if the client or firm are in financial danger.
- that different concerns affect the client and her business.
- the General Norms and Ethical Values are somewhat ambiguous, and she should rely on her own personal ethics and her firms Code of Ethics.
- her campaign might be difficult to support despite its creativity and ability to meet the needs of both her client and her own firm.
Using profit as the sole guide for corporate action can lead to short term profits but:
- increased corporate social responsibility options
- long-term loss of customers
- more complicated measurement challenges
- increased tax liabilities
Unlike other business functions like accounting or finance, people in marketing are often singled out as the root cause of ethical concerns because:
- they are trained in the art of effective persuasive communication.
- consumers recognize marketers are not as quantitatively skilled as accounting and finance people.
- problems like those that occurred at Enron, Tyco, and WorldCom were caused by marketers.
- they interact directly with consumers.
Corporate social responsibility appeals to many people. For the firm, corporate social responsibility:
- offers significant revenue savings
- may not show specific tangible benefits
- works for employees but has little impact on perceptions among the it’s consumers
- reduces the need for a formal code of ethics
Lemon N' Honey is a juice manufacturing company in the US. It exports its products to Australia, licenses to China, has a joint ownership venture in France, and owns a subsidiary in Brazil. The firm will most likely need to create a(n) ________ to handle all its worldwide activities.
- export department
- value delivery network
- international division
- domestic division
After viewing Red Cross ads about giving blood, Amanda donated a pint of blood at the local Red Cross office. Amanda felt that she had performed a good deed. Was this a marketing exchange:
- no, because the Red Cross is non-profit organization.
- yes, because the Red Cross ran an advertisement.
- no, because the Red Cross did not provide Amanda with a product.
- yes, because the donated blood was exchanged for a feeling of satisfaction.
Sarah has decided to pursue a market penetration strategy for her French cookware product line. She will likely increase advertising, sales promotion, and sales personnel. She may also consider:
- intensifying distribution efforts.
- investing in a travel agency.
- shifting resources into marketing a line of footwear.
- expanding into new territories.
The consumer buying process begins when:
- they enter a store.
- physical needs become greater than psychological needs.
- performance risk is minimized.
- consumers recognize that they have an unsatisfied need.
Consumer goods classes (convenience, shopping, etc.) are based on the:
- characteristics of the product.
- importance of the product’s brand name.
- buying habits of consumers.
- age, income, and occupation of consumers.
The intangibility of the service means that:
- advertising or other forms of promotion are of little importance to the services marketer.
- unused capacity cannot be shifted from one time period to another.
- brandnames or trademarks can’t be used because they must refer to tangible goods in order to be effective.
- the value of a service may be based on a customer’s experience.
According to the concept of the product life cycle,:
- new products may pass through a life cycle stage quickly, virtually skipping it.
- products spend a predetermined amount of time in each stage of the life cycle; this time span is determined by the product category.
- most products require the same level of marketing throughout their life cycle.
- all products begin at the introductory stage and move through the life cycles stages at a steady rate
A penetration pricing strategy is generally characterized by:
- high inventory costs, many product alternatives, and low price elasticity.
- low costs, low prices, and mass market appeal.
- status, uniqueness, and profit goals.
- high price elasticity, early cash recovery objectives, and high brand loyalty.
Which of these products characteristics would lengthen (increase the number of intermediaries between manufacturer and consumer) a distribution channel (supply chain):
- product requires special handling equipment (e.g., blocks of ice).
- product is complex (e.g., computers).
- product is perishable (e.g., fresh fruit).
- product has low unit value (e.g., hard candy).
Which best characterizes a modified rebuy situation?
- purchasing paper clips for the office.
- purchasing the first local intranet for a small business.
- purchasing airline tickets under a new fare schedule.
- purchasing printer toner for a copier.
Which is an example of a product that is being sold in the business market?
- a thermometer to hang on the front porch of a school bus driver’s home.
- registration fee paid for a membership in a private health club.
- a mailbox to go in front of Pete’s new house.
- a truckload of sand to use on the beach being built for a lakefront resort.
Which is an example of primary data that would be used by the Ashton-Drake Galleries to determine the popularity of its Precious Moments doll series?
- data gathered by a doll collectors club about its membership.
- observing how individuals react to the dolls when they first see them.
- an article on Precious Moments found in Parade, the Sunday magazine found in many newspapers.
- responses to a mail survey by National Family Opinion on how likely someone is to buy a collectible doll.
Which is WRONG about the various environmental forces:
- experts generally regard technology as the least important environmental area.
- demographic trends are the least controllable of the environmental forces affecting the firm.
- cultural trends tend to be long-term in their impact on consumption patterns.
- changing laws and regulations can create opportunities in the marketplace.
Which customer question is answered by a company’s value proposition?
- “why should I buy your brand rather than a competitor’s?”
- “how does your brand benefit me and society?”
- “what are the costs and benefits of your brand?”
- “what kind of experience will I have with products and services associated with this brand?”
The idea of value-based marketing requires firms to charge a price that:
- covers costs and generates a modest profit.
- includes the value of the effort the firm put into the product or service.
- captures the value customers perceive they are receiving.
- offers customer excellence above operational excellence.
Using profit as the sole guide for corporate action can lead to short term profits but long-term loss of customers.
Unlike other business functions like accounting or finance, people in marketing are often singled out as the root cause of ethical concerns because they interact directly with consumers.
The consumer buying process begins when consumers recognize that they have an unsatisfied need.
The idea of value-based marketing requires firms to charge a price that captures the value customers perceive they are receiving.
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