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1.1 LEARNING OBJECTIVES LO 1-1 Identify typical misconceptions about marketing, why they persist, and the resulting challenges for marketing management. LO 1-2 Define what marketing and marketing management really are and how they contribute to a firm’s success. LO 1-3 […]

1 Chapter 01 2 Marketing in Today’s Business Milieu 1.1 ETHICAL DIMENSION 1 Ethical Perspective 1. Nike: How would you prioritize what are often two conflicting demands: consumer product performance expectations and the demand for ecofriendly products? 2. Consumers: Would […]

1.1 LEARNING OBJECTIVES LO 10-1 Understand the integral role of price as a core component of value. LO 10-2 Explore different pricing objectives and related strategies. LO 10-3 Identify pricing tactics. LO 10-4 Describe approaches to setting the exact price. […]

1 Chapter 10 2 Managing Pricing Decisions 1.1 ETHICAL DIMENSION 10 Ethical Perspective 1. Intel: Is it unethical for Intel to pursue the Classmate project if its primary purpose is to target a new market? Should the company be encouraged […]

1.1 LEARNING OBJECTIVES LO 11-1 Define a value network and how organizations operate within this approach. LO 11-2 Identify various types of intermediaries and distribution channels. LO 11-3 Understand the impact of intermediary contributions via physical distribution functions, transaction and […]

1 Chapter 11 2 Managing Marketing Channels and Points of Customer Interface 1.1 ETHICAL DIMENSION 11 Ethical Perspective 1. Apple: How aggressive should Apple be in making sure its suppliers follow strict labor rules and policies? Should the company enforce […]

1.1 LEARNING OBJECTIVES LO 12-1 Explain integrated marketing communications (IMC) concepts and their role in marketing management. LO 12-2 Identify the elements of the promotion mix and the pros and cons of each element. LO 12-3 Connect communication models to […]

1 Chapter 12 2 Promotion Strategy and New Media 1.1 ETHICAL DIMENSION 12 Ethical Perspective 1. Advertisers: Should advertisers hire bloggers to post positive product experiences? Should they require bloggers to indicate whether or not they have been paid to […]

1.1 LEARNING OBJECTIVES LO 13-1 Understand the key types of advertising and the role of the creative agency. LO 13-2 Identify various approaches to sales promotion and how each might be used. LO 13-3 Describe the activities and aims of […]

1 Chapter 13 2 Advertising, Sales Promotion, and Public Relations 1.1 ETHICAL DIMENSION 13 Ethical Perspective 1. Marketers: Should a marketer be allowed to use information from an individual’s social networking profile? Is targeted messaging based on analysis of personal […]

1.1 LEARNING OBJECTIVES LO 14-1 Understand the role of personal selling in an integrated marketing communications strategy LO 14-2 Learn the process of relationship selling. LO 14-3 Understand the major job responsibilities of sales management. LO 14-4 Identify the role […]

1 Chapter 14 2 Personal Selling and Direct Marketing 1.1 ETHICAL DIMENSION 14 1. Sales Manager – Should a sales manager hire the most qualified candidate for a sales position or apply different criteria such as gender or ethnicity? 2. […]

1.1 LEARNING OBJECTIVES LO 16-1 Understand the concept of a marketing dashboard and how it improves marketing planning for a firm. LO 16-2 Explain return on marketing investment (ROMI), including cautions about its use. LO 16-3 Identify other relevant marketing […]

1 Chapter 15 2 Understand the Global Marketplace: Marketing without Borders 1.1 ETHICAL DIMENSION 15 Ethical Perspective 1McDonald’s: Should McDonald’s support the additional costs of carrying environmentally coffee if it becomes unprofitable? Do you see any challenges for McDonald’s in […]

1 Chapter 16 2 The Marketing Dashboard: Metrics for Measuring Marketing Performance 1.1 ETHICAL DIMENSION 16 Ethical Perspective 1. Investors: Should investors be concerned only with a company’s profitability? What metrics might an investor use to measure the social responsibility […]

1.1 LEARNING OBJECTIVES LO 2-1 Examine the concept of value and the elements and role of the value chain. LO 2-2 Understand the conditions required for successful marketing planning, that marketing planning is focused on the value proposition, and that […]

1 Chapter 02 2 Elements of Marketing Strategy, Planning and Competition 1.1 ETHICAL DIMENSION 2 Ethical Perspective 1. Senior Management: How should senior management incorporate ethical standards at all stages of the marketing planning process? 2. Marketing Managers: A company’s […]

1.1 LEARNING OBJECTIVES LO 3-1 Describe the difference between market information systems and market research systems. LO 3-2 Identify how critical internal (inside the firm) information is collected and used in making marketing decisions. LO 3-3 Explain essential external (outside […]

Ethical Perspective 1Advertisers: How would your view of Internet advertising change if the statistics related to the number of people who “click through” an ad were not accurate? 2 Google and Yahoo: While you are concerned with click fraud, the […]

1.1 LEARNING OBJECTIVES LO 4-1 Understand the value of knowing the consumer. LO 4-2 Consider the role of personal and psychological factors in consumer decision making. LO 4-3 Appreciate the critical and complex role of cultural, situational, and social factors […]

1 Chapter 04 2 Understand Business to Consumer Markets Ethical Perspective 1. Advertisers: The ability to reach targeted customers at the right moment has been the goal of advertising for decades. This new technology enables “just-in-time” advertising. As an advertiser, […]

1.1 LEARNING OBJECTIVES LO 5-1 Recognize the importance of B2B marketing. LO 5-2 Understand the differences between B2C and B2B markets. LO 5-3 Understand the critical role of the buying center and each participant in the B2B process. LO 5-4 […]

1 Chapter 05 2 Understand Business to Business Markets 1.1 ETHICAL DIMENSION 5 Ethical Perspective 1. Oil companies: Should they invest in alternative fuel technologies such as ethanol to reduce fossil fuel consumption? 2. Consumers: Should they be willing to […]

1.1 LEARNING OBJECTIVES LO 6-1 Explain the criteria for effective segmentation. LO 6-2 Identify the various approaches to market segmentation. LO 6-3 Describe the steps in target marketing. LO 6-4 Define positioning and link it to the use of the […]

1 Chapter 06 2 Segmentation, Target Marketing, Positioning and CRM 1.1 ETHICAL DIMENSION 6 Ethical Perspective 1. Video Game Developers: They are meeting the needs of a target market by developing video games that appeal to that market. Is that […]

1.1 LEARNING OBJECTIVES LO 7-1 Understand the essential role of the product experience in marketing. LO 7-2 Define the characteristics of a product. LO 7-3 Recognize how product strategies evolve from one product to many products. LO 7-4 Understand the […]

1 Chapter 07 2 Product Strategy and New Product Development 1.1 ETHICAL DIMENSION 7 Ethical Perspective 1American companies importing Chinese produce: Should they stop importing fresh produce from China until product quality and safety standards match those in the United […]

1.1 LEARNING OBJECTIVES LO 8-1 Recognize the essential elements in a brand. LO 8-2 Learn the importance of brand equity in product strategy. LO 8-3 Explain the role of packaging and labeling as critical brand elements. LO 8-4 Define the […]

1 Chapter 08 2 Build the Brand 1.1 ETHICAL DIMENSION 8 Ethical Perspective 1. Diageo: The company faces a challenge—to find effective digital technologies that connect with younger customers while maintaining ethical standards regarding underage drinking. How should the company […]

1.1 LEARNING OBJECTIVES LO 9-1 Understand why service is a key source of potential differentiation. LO 9-2 Explain the characteristics that set services apart from physical goods. LO 9-3 Explain the service-profit chain and how it guides marketing management decisions […]

1 Chapter 09 2 Service as the Core Offering 1.1 ETHICAL DIMENSION 9 Ethical Perspective 1. U.S. Physician: Many doctors in the United States cite a lack of valid research and no evidence of long-term health benefits related to Chinese […]

Romania would be classified as being in the __________ stage of development. A. Traditional society B. Preconditions for take-off C. Take-off D. Maturity E. High mass consumption ______________ is used by firms that rely on periodic heavy promotional pricing, primarily […]

Small changes in consumer demand can lead to considerable shifts in business product demand and it referred to as the ____________. A. Deceleration effect B. Transverse effect C. Modified effect D. Acceleration effect E. Steady state effect When customers see […]

In ________, two or more brands are directly compared against each other on certain attributes. A. Pioneering advertising B. Comparative advertising C. Competitive advertising D. Institutional advertising E. All of these Concentrated target marketing is often used by ________. A. […]

Whole Foods is considered to be down-to-earth and wholesome by consumers. Whole Foods has the trait of _____ brand personality. A. Sincerity B. Competence C. Sophistication D. Reliable E. Honest The marketing director of Bank Y decides to conduct a […]

Successful marketing strategy builds quality into only the product in order to validate a price premium. Exponential smoothing is a type of moving average that, instead of weighting all observations equally in generating the forecast, weights the most recent observations […]

The primary responsibility of ______________ is to increase business from current or potential customers by providing them with merchandising and promotional assistance. A. Technical sellers B. Trade servicers C. Missionary sellers D. Solutions sellers E. All of these The best […]

Post introduced Honey Bunches of Oats Greek Honey Crunch cereal because market research showed sales of its traditional Honey Bunches of Oats were down and sales of Greek yogurt were on the rise. One of the disadvantages of using style […]

NAFTA is a market zone that eliminates tariffs between the United States and _______. A. Canada, Mexico, and Costa Rica B. Canada and Mexico C. Mexico, Honduras, Nicaragua, Costa Rica, and Panama D. Canada, Mexico, Costa Rica, and Panama E. […]

Push and pull strategies are rarely used mutually exclusively. Loyal customers are great advocates for a brand; however, blogs and other online communities have yet to become useful tools for marketers to reinforce the brand’s message because they have not […]

Sales forecasting methods can only be objective, not subjective. Viral marketing is a marketing phenomenon that facilitates and encourages people to pass along a marketing message. Answer: TRUE The American Marketing Association defines viral marketing as a “marketing phenomenon that […]

_________ is a site’s ability to enable transactions. A. Connections B. Community C. Commerce D. Communication E. Content The basis of the gap model is the identification and measurement of differences in ____ key areas of the service delivery process. […]

After a recent 141-day strike, the union members in California went back to work at area grocery stores. The union negotiated raises, better health care benefits, and a one-tier pay scale. The role of the union may best be described […]

Resellers are important to marketers because ______________. A. They have their own buying centers that service customers B. They buy equipment, supplies, and technology to run their own businesses C. They serve as an early warning system to OEMs D. […]

_______ is the process of placing in one’s memory only those stimuli that support existing beliefs and attitudes about a product or brand. A. Selective awareness B. Selective distortion C. Selective memory D. Selective retention E. Selective hearing __________ is […]

Customer satisfaction and customer loyalty, two metrics used by brand managers, are metrics used in CRM. A wide range of organizational functions will have a stake in making a marketing plan successful. Even if the functions are outsourced, someone internally […]

________________ is an example of a technology communication selling activity. A. Developing effective presentation skills B. Following up after customer contact C. Developing time management skills D. Listening effectively E. E-mailing ______________________ is the amount of price increase that can […]

Customers can quickly and easily become bored with any given advertising campaign, a concept referred to as advertising wearout. In general, B2B segmentation is more straightforward than B2C segmentation. Answer: TRUE In some ways, business market segmentation is more straightforward […]

The marketing manager of Super Fresh Frozen Vegetables is working on the package for a new line of self-steaming microwaveable vegetables. He wants the package to show a physically fit individual happily eating the product and how to work the […]

______ is defined as a summary of unique qualities attributed to the brand. A. Brand identity B. Brands C. Brand momentum D. Brand equity E. Brand symbol The Busted Puppy, a microbrewery, is creating a marketing plan. Managers are concerned […]

You run a small automotive supply business that sells to a few large retailers. You want to conduct market research to assess how the companies you sell to feel about the reorder process and your billing system. Because there are […]

Germany has a very relaxed culture. If you make a business appointment for 10:00, your German counterpart will not mind if you do not show up until 11:00. When companies sell in other countries through limited direct contact or indirect […]

Most people are comfortable buying products over the phone. Today many retailers create apps that customers can download to their smartphones or tablets to keep up-to-date on the company’s offerings. Most likely a description of this would be in the […]

The number of products purchased by the same customer is called repeat purchases. This can be important with things like stereos and cell phones because they rely on loyalty for success. Pricing decisions can be made by the accounting department […]

Victorinox, maker of the Swiss Army knife, warrants its knives to be “free from defects in material and workmanship for the entire life of the knife.” These is an example of a ________. A. Warranty B. Product label C. Service […]

In the past, __________________ allowed manufacturers to establish artificially high prices by limiting the ability of wholesalers and retailers to offer reduced or discounted prices. A. Fair trade laws B. Minimum markup laws C. Loss leader products D. State fair […]

Captive pricing is sometimes called complementary pricing. In today’s workplace everyone is involved in service in some way; everyone has customers either outside or inside the firm, or both. Answer: TRUE In today’s workplace everyone is involved in service in […]

An integrated decision is effectively a separate assessment of whether to invest in promoting the offer through one or more of the elements of the promotion mix. Caesars has found that customers who are in the zone of indifference make […]

A(n) _________________ contains one or more intermediary levels. A. Channel distribution B. Merchant intermediary C. Agent intermediary D. Direct channel E. Indirect channel Caesars Entertainment has found that it is best to invest in customers who fall into the _________ […]

Throughout the lifecycle stages, consumers typically stick with the same products and purchase decisions. Direct mail is much more effective in B2B than B2C markets because reaching the appropriate individual inside an organization is easier. Answer: FALSE Direct mail is […]

Scotty wants to have his company’s products used in the construction of a new building. The best time for Scotty to make a sales call is ______________. A. When the RFP is released B. When the architect releases the plans […]

A customer is comparing two different cars advertised online. She isn’t sure which will be of higher quality. Then she notices that one brand is a Lexus while the other is a brand she hasn’t heard of before. In this […]

Eye contact, steady breathing, smiling, and swaying are all examples of positive nonverbal communication during a presentation. A service is a product in the sense that it represents a bundle of benefits that can satisfy customer wants and needs with […]

Little m marketing is also known as __________. A. Long-term planning B. Tactical marketing C. Strategic marketing D. A mission statement E. Differentiation orientation The best place in a SWOT analysis for an airline to identify the possibility of acquiring […]

__________________ affords the marketing manager an opportunity to develop a rational pricing strategy across a complete line of related items. A. Product line pricing B. Captive pricing C. Price bundling D. Reference pricing E. Prestige pricing Automobile manufacturers must comply […]

CRM stands for _________________. A. Consumer retention management B. Customer related metrics C. Customer relationship management D. Consumer rights monitor E. Customer retention management Channel intermediaries enhance utilities by providing a wide array of specific functions including ________________. A. Physical […]

Demographic segmentation is best described as _______. A. Using characteristics of human populations to segment the market B. Using characteristics of geography to segment the market C. Using characteristics of lifestyle to segment the market D. Using characteristics of virtual […]

Inbound telemarketing involves calling potential customers at their home or office. An in-depth interview is an unstructured conversation with an individual who was specifically selected, often because he or she has a specific demographic attribute. Answer: TRUE An in-depth interview […]

Don Peppers and Martha Rogers popularized the term one-to-one marketing. Some firms come close to one-to-one marketing by combining flexible manufacturing with flexible marketing to enhance customer choices. The decomposition method of forecasting attempts to isolate three separate portions of […]

The decomposition method attempts to isolate four separate portions of a time series, which are __________. A. The trend, numbers, fashions, and randomness B. The trend, cyclical, seasonal, and random factors C. The trend, effect, season, and random factors D. […]

In the initial introduction of the Prius, Toyota put much effort into building awareness of the emerging need for hybrid cars and also educating potential customers about what a hybrid car actually is. This is an example of the ________ […]

The value chain portrays a mixture of primary and support activities utilized by an organization to design, produce, market, deliver, and support its products. Strategic marketing refers to deciding which media, distribution, or pricing tactics to use. Answer: FALSE Marketing […]

Sometimes marketers are prone to overzealous sales pitches, coupon promotions with too little stock to handle the demand, and deceptive advertisements. These create a gap in the service that can be described as __________. A. Setting expectations that are too […]

Public relations has low control of how the message turns out. Everyone calculates ROMI the same, so when one corporate executive talks about the concept other people know what his or her measurement is. Answer: FALSE ROMI has become a […]

A marketing manager calls a market research firm stating that her company is losing sales to competitors. She says her company needs help with the ________ stage of the market research process. A. Defining the research problem B. Establishing the […]

According to the BCG matrix, a business that is classified as a star has high growth and low market share. Direct foreign investment is a market entry strategy with the greatest long-term implications. Answer: TRUE The market entry strategy with […]

Firms must _________ new-product ideas from the list of ideas that are generated by the idea generation stage. A. Rank order B. Screen and evaluate as quickly as possible C. Develop a business plan for D. Develop a scale model […]

Late majority are product followers that are price-sensitive and risk-averse. Licensing is a useful form of market entry when companies lack the resources to establish independent operations in foreign markets. Answer: TRUE Companies seeking to establish greater presence in a […]

The two fundamental approaches to learning include ____ and _____. A. Coaching, listening B. Trial and error, coaching C. Coaching, conditioning D. Conditioning, cognitive learning E. Conditioning, trial and error When a company can show that its product’s projected lifetime […]

A fundamental rule in marketing is to not set customer expectations so high that they cannot be effectively met on a consistent basis. The perceived quality of a brand enables companies to extend the product range, can lead to a […]

There is a big debate that today we operate in an economy that is increasingly focused on intangible offerings-services-instead of just physical goods. BMW has used the concept “Ban Boredom” as one of the key benefits of its MINI line. […]

Sales promotion is a promotion mix element that provides an inducement for an end-user consumer to buy a product or for a salesperson or someone else in the channel to sell it. Subculture is a group within the culture that […]

_______ is the means of communicating through facial expressions, eye behavior, gestures, posture, and any other body language. A. Cultural expression B. Nonverbal communication C. Communiqué D. Situational communication E. Verbal communication In the introduction phase of the PLC it […]

A former professional football player invested in a seafood restaurant chain when he played ball. Now that he is retired from the NFL and has time to devote to his business interests, he and his partners want to start a […]

A producer can always grant an intermediary an exclusive territory for sales purposes. One of the disadvantages of using sales force composite to forecast sales is that potential customers must be few and well defined. Answer: FALSE One of the […]

Garrett is moving into retirement and wants to cut his client base in half so he can work part time. In deciding which customers to keep, Garrett should look at the monetary prediction called _______________. A. Customer longevity spending B. […]

Effectively communicating a product’s differential advantages is at the heart of positioning strategy, and exposure to these elements spurs the customer to develop perceptions of value and a subsequent understanding of the value proposition. Often, channel members adopt an approach […]

In the growth of smartphones a new technology called _____ enables companies to send messages from automated applications to people on everything from alerts from their banks to special offers from retailers. A. IM B. SMS C. M-commerce D. A2P […]

A characteristic of B2B companies is that they often make products that end up as ___________ in a finished product. A. Components B. Labels C. Minor features D. Major features E. Factoids ___________ is an Internet-driven relationship between companies, their […]

The concept that marketing information should be presented in a format that is easy to use in real time and consisting of crucial information is the marketing _________. A. Accelerator B. Matrix C. Dashboard D. Planning equation E. Cockpit Sam […]

Research on brand personality identified six brand personality traits. These include sincerity, excitement, competence, ruggedness, charm, and sophistication. Attitudes are formed by values and beliefs. Cultural and personal values help form attitudes. Answer: TRUE Initially, a person’s attitudes are formed […]

Treating employees as customers and developing systems and benefits that satisfy their needs is called ________. A. Marketing for profit B. Internal consistency C. Market orientation D. Internal marketing E. All of these A service blueprint is a concept borrowed […]

Customer satisfaction is defined as ________________. A. The degree to which an individual will resist switching from one offering to another B. The level of liking an individual harbors for an offering C. Customer laziness in trying new products D. […]

The primary advantage of a market organization is that individual salespeople can develop familiarity with the technical attributes, applications, and most effective selling methods associated with a single product. CRM software is best selected for purchase by the Information Technology […]

Brand loyalty develops when customers develop a number of emotional, psychological, and performance links with a brand. The shift in focus from services to goods is a shift from the means and the producer perspective to the utilization and the […]

___________________ is a reason for Coke to invest in promotion. A. To maintain brand loyalty B. To reduce the tendency to switch to other brands C. To maintain corporate identity D. To encourage brand switching from competitors’ customers E. All […]

OEM companies sell replacement parts to the customer that are at a better price than the original manufacturer can supply. When planning the product mix, marketing managers should assess packaging trends in the marketplace. Answer: TRUE see Exhibit 3.1. Value […]

Salespeople consistently report that price is the most common customer apprehension. Firms should not be concerned that satisfied customers will switch to another brand. Answer: FALSE For firms interested in building long-term customer relationships, having satisfied customers is not enough […]

The marketing concept was first articulated in writing in the Annual Report of ______________. A. Ford Motor Company B. AT&T C. RCA D. General Motors E. General Electric The dashboard provides insight into the execution of critical business processes required […]

____________ is known for its everyday low pricing strategy. A. Walmart B. JCPenney C. Sears D. Best Buy E. Kmart Positioning strategy is a process that often starts with ______. A. Focus groups B. Surveys of customers C. Perceptual maps […]

Public relations (PR) is a specialized field. The first step of creating a direct marketing campaign is to specify direct marketing channels. Answer: FALSE The first step of a direct marketing campaign is to set strategy for the campaign. The […]

Comparative advertising works well when _____________. A. You are No.1 in a product category B. You are competing with a lower brand C. You are not No.1 in a product category D. Your brand is the leading brand E. Consumers […]

Due to improved distribution, better communication tools, product standardization, and the Internet, businesses are not confined to a local market. McDonald’s socially responsible coffee, Kenco, is sold in the European market because Europeans expect companies to care about the environment. […]

Managers are typically aware of all the information in their own company. Trust in the ability of a service provider to do a difficult job is called reliability. Answer: FALSE Reliability is the ability to provide service dependably and accurately […]

The largest generation is the Millennial Generation. Members of this group were born after 1994 and are characterized by being heavily Hispanic, African-American, and Asian. Direct-to-consumer marketing by pharmaceutical companies and the vast amount of health information available to patients […]