MGT 103 Exam Prep Questions with
Correct Answers Latest Update
needed for marketing to occur - Answer-1. Two+ Parties with Unsatisfied Needs
2. A Desire and Ability to Be Satisfied
3. A Way for the Parties to Communicate
4. Something to Exchange
marketing - Answer--Seeks to:
• Discover Needs and Wants of Customers
• Satisfy Them
-Exchange
• Money for goods and servicesoh
how marketing discovers consumers needs - Answer--Consumers May Not Know or
Cannot Describe What They Need or Want
-Most New Products Fail
-The Challenge:
• "Focus on the Consumer Benefit"• "Learn From Past Mistakes"t
target market (the four P's) - Answer-Controllable Marketing Mix Factors
• Product
• Promotion
• Price
• Place
customer value proposition - Answer-a cluster of benefits that an organization promises
customers to satisfy their needs
uncontrollable environmental forces - Answer-social, economic, technological,
competitive, regulatory
Customer Value - Answer-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
customer value strategies - Answer-• Best Price: Target
• Best Service: Nordstrom
• Best Product: Starbucks
relationship marketing - Answer-- easy to understand and hard to do
links the organization to its individual customers, employees, suppliers, and other
partners for their mutual long-term benefit
,marketing program - Answer-a plan that integrates the marketing mix to provide a good,
service, or idea to prospective buyers
marketing segment - Answer-relatively homogeneous groups of prospective buyers that
have common needs and will respond similarly to a marketing action
marketing concept - Answer-the idea that an organization should strive to satisfy the
needs of consumers while also trying to achieve the organization's goals
market orientation - Answer-focuses its efforts on (1) continuously collecting information
about customers' needs, (2) sharing this information across departments, and (3) using
it to create customer value
Customer Relationship Management (CRM) - Answer-the process of identifying
prospective buyers, understanding them intimately, and developing favorable long-term
perceptions of the organization and its offerings so that buyers will choose them in the
marketplace
a need - Answer-occurs when a person feels deprived of basic necessities such as
food, clothing, and shelter
a want - Answer-a need that is shaped by a person's knowledge, culture, and
personality
customer experience - Answer-- the internal response that customers have to all
aspects of an organization and its offering
-What Firms Think They Offer Customers
- What Customers Say They Receive
societal marketing concept - Answer-the view that organizations should satisfy the
needs of consumers in a way that provides for society's well-being
Ethics - Answer-- the principles of right and wrong that guide an individual in making
decisions
- companies develop a code of ethics
Social Responsibility - Answer-organizations are part of a larger society and are
accountable to that society for their actions
ultimate consumers - Answer-the people who use the products and services purchased
for a household
organizational buyers - Answer-manufacturers, wholesalers, retailers, and government
agencies that buy products and services for their own use or for resale
utility - Answer-the benefits or customer value received by users of the product
,- form, place, time, possession
product mission - Answer-To make, distribute and sell a quality product at a reasonable
price and with continual customer service
economic mission - Answer-To operate the company for sustainable financial growth
social mission - Answer-to operate the company in ways that make the world a better
place
profit - Answer-total revenue minus total cost
- reward for the risk it undertakes in marketing its offerings
strategy - Answer-an organization's long-term course of action designed to deliver a
unique customer experience while achieving its goals
core values - Answer-the fundamental, passionate, and enduring principles of an
organization that guide its conduct over time
mission statement - Answer-a statement of the organization's function in society that
often identifies its customers, markets, products, and technologies
organizational culture - Answer-the set of values, ideas, attitudes, and norms of
behavior that is learned and shared among the members of an organization
Goals or Objectives: Types - Answer-Profit
Sales ($ or #)
Market Share
Quality
Customer Satisfaction
Employee Welfare
Social Responsibility
Efficiency
market share - Answer-the ratio of sales revenue of the firm to the total sales revenue of
all firms in the industry, including the firm itself
variation by level in an organization - Answer-- corporate: at the corporate level, top
managers create a portfolio of market-product businesses (SBUs) that is consistent with
the mission statement
- SBU: at the strategic business unit level managers focus on specific value-creation
activities such as improving quality, lowering cost, or adding services
- functional: at the functional level the issue is who makes the tomorrow's sales call
Variation by Product - Answer-strategy will be far different when marketing a very
tangible physical good, a service, or an idea
, marketing plan - Answer-a road map for the marketing actions of an organization for a
specified future time period, such as one year or five years
marketing dashboard - Answer-the visual display of the essential information related to
achieving a marketing objective
marketing metric - Answer-a measure of the quantitative value or trend of a marketing
action or result
data visualization - Answer-presents information about an organization's marketing
metrics graphically so marketers can quickly (1) spot deviations from plans during the
evaluation phase and (2) take corrective actions
dollar sales - Answer-Average Price x Quantity Sold
dollar market share - Answer-company sales/total industry sales
competencies - Answer-Individual capabilities that can be linked to enhanced
performance by individuals or teams
- competitive advantage, customers, competitors
Business Portfolio Analysis (BCG Matrix) - Answer-A technique that managers use to
quantify performance measures and growth targets to analyze their firms' strategic
business units (SBUs) as though they were a collection of separate investments.
BCG's growth-share matrix (four quadrants) - Answer-- question marks: SBUs with low
share of high growth market
- stars: SBUs with high share of high growth market
- cash cows: SBUs that generate large amounts of cash, far more than they can use
- dogs: SBUs with low shares of low growth markets
diversification analysis - Answer-a technique that helps a firm search for growth
opportunities from among current and new markets as well as current and new products
market penetration - Answer-a marketing strategy that tries to increase market share
among existing customers
market development - Answer-marketing strategy to sell current products to new
markets
product development - Answer-marketing strategy of selling new products to current
markets
Diversification - Answer-marketing strategy of developing new products and selling
them in new markets
