Marketing Management 4th Edition

CHAPTERS 1 AND 2: HASBRO SUMMARY Hasbro is a worldwide leader in entertainment products and services, such as GI Joe, Candy Land, the Easy Bake Oven, and Monopoly. Hasbro is a $3 billion company with brands in 100 countries and launching 1,000 new products each year. The company attributes its

CHAPTERS 2 AND 7: DDB WORLDWIDE SUMMARY Angela Talley of DDB Worldwide was charged with overhauling JCPenneys image to keep the company in business in what was becoming a highly competitive market. JCPenney needed to reposition itself in the marketplace by first finding out who its target market is and then

CHAPTER 3: BURKE, INC. SUMMARY Burke is a century-old marketing research firm that uses a reliable research process and cutting- edge technology to help its clients. Burke does not just provide data collection, but takes clients full circle in the market research process. The first, and most important step, is to define

CHAPTER 3: WILD PLANET SUMMARY Wild Planet is more than a toy company; the company thinks of itself as selling a positive play experience. Its products are more than just toys; they are created to make kids think, take them outdoors, and explore the world around them. To keep innovating and

CHAPTER 5: EATON SUMMARY Eaton Corporation is a large business-to-business industrial manufacturer. The company manufactures everything from car valves to circuit breakers. Words such as trusted, reliable, quality, and high value are used to describe Eaton, a brand that enhances other products. It has four main product groups with 10,000+ products

CHAPTER 7: IKEA SUMMARY IKEA provides an exciting shopping experience for home furniture furnishings. Josephine Rydberg-Dumont, the president of IKEA Sweden, says her company speaks to many different people in many different ways, extending a broad reach to consumers. Its products provide good function at a low price for all the

CHAPTER 8: eGO BIKES SUMMARY The eGO Vehicles company manufactures and sells electric bicycles. There are challenges in classifying this new-to-the-world product. Its not quite a bike, not quite a motorcycle. Its definitely environmentally friendly, though. The product serves a specific market need of reducing traffic congestion by reducing the number

CHAPTER 9: NEXTEL SUMMARY The cell phone market is massive, with between 50 and 80 percent market penetration worldwide. As evidenced by the big promotional campaigns, it is a very competitive marketplace with 100 carriers in the United States alone. About six carriers control 85 percent of the market, and they are all

CHAPTER 10: AMERICAN EXPRESS SUMMARY Consumers are choosing how and when they want information from organizations, like American Express. Marketers need to be where consumers want them to be when they want to hear about their product or services. With the thousands of messages people are bombarded with daily, getting through to

CHAPTER 10: E*TRADE SUMMARY Nicholas Utton, Chief Marketing Officer of E*TRADE, states that E*TRADE disrupted the financial market in 1996 by letting the consumers trade online at a low cost compared to big brokerage firm competitors. E*TRADEs goal is for its consumers to become engaged with its company. They use the

CHAPTER 11: IWON.COM SUMMARY iWon.com is an online search engine portal with a difference. The difference is users of this site have the opportunity to win $10,000 a day and $10 million on tax day. The business model was built on the idea that people habitually respond to giveaways, as demonstrated

CHAPTER 12: FEDERATED DIRECT SUMMARY Federated Direct, which owns Bloomingdales and Macys, was losing market share due to intense competition from discount stores, online retailers, catalogues, and specialty shops. The retail positioning strategy of both stores was based on offering a broad assortment of merchandise in one location a one-stop shop.

CHAPTER 14: Philadelphia 76ers SUMMARY Lara Price, Senior Vice President of Business Operations for the Philadelphia 76ers explains the need to get information from customers, as marketing has changed from traditional mass marketing now to one-on-one marketing. The only way you can employ one-on-one marketing is to know your customer. The sports

CHAPTER 14: SONY METREON SUMMARY The Metreon is an innovative approach to building customer relationships. Sony built the Metreon to create an experience for its customers by enabling interaction with its products in unique and deeper ways. Sony believes there is a trend to interact with and touch the customer on a

CHAPTER 15: HONEST TEA SUMMARY The founder of Honest Tea started by meeting his own desire to have an organic soft drink. Armed with a simple product sample, Seth Goldman pitched his new tea to a buyer of Whole Foods. The buyer signed his first order and Honest Tea was founded.

CHAPTER 15: MARRIOTT SUMMARY Quality and consistent service is Marriotts main focus and keeps the company in the top position in its industry. The company is responsible for pioneering segmentation in the hospitality industry. With a wide array of hotels, Marriott meets the needs of various customer segments. Before developing any additional hotel

Chapter 1: Chapter Objectives After reading this chapter, students should understand: The marketing concept Different organizational philosophies about marketing The importance of being customer focused The job of the marketing manager Typical marketing organizational forms How marketing is changing Chapter Overview This chapter provides an overview to the fundamentals of marketing and the role

Provides customer and competitor orientations Helps ensure any marketing strategies are not developed without customer, competitor, or environmental analyses. Market-focused decisions are more likely to emerge versus a more random approach. Hierarchy and Sequence of Marketing Planning Marketing planning can occur at various levels of the organization. It is important to understand where

Chapter 2: Marketing Strategy Chapter Objectives After reading this chapter, students should understand: The elements of a complete marketing strategy Developing a value proposition Developing a sustainable competitive advantage Positioning products and services The product life cycle and how it affects marketing strategies Chapter Overview This chapter provides a framework for the development of

Chapter 3: Marketing Research Chapter Objectives After reading this chapter, students should understand: Major functions of marketing research The research process Primary and secondary data sources Qualitative and quantitative research Applications of marketing research Impact of the Internet on marketing research Chapter Overview This chapter provides an introduction to marketing research. It focuses on

Teaching Tips and Strategies from Barbara S. Faries, MBA This chapter lays the foundation of a basic understanding of market research and its role in corporate marketing and strategic decision-making. It introduces the student to market research terminology as well as the basics of calculating market potential and forecasting techniques. Key Terms

Chapter 4: Analyzing Consumer Behavior Chapter Objectives After reading this chapter, students should understand: The concept and activity of market segmentation Issues in implementing market segmentation strategies. Understanding why consumers make purchase decisions; the motives that drive buying behavior Understanding how consumers make purchase decisions; the mechanism used to make purchases The importance of where

Teaching Tips and Strategies from Barbara S. Faries, MBA This chapter provides understanding of consumer behavior: who buys, why they buy, how they make purchase decisions, where they purchase, and when they buy. Key Terms and Concepts Introduced Include: Market segmentation One-to-one marketing Mass customization Segmentation variables Descriptors Geographic Demographic Cohort analysis Psychographic

Chapter 5: Organizational Buying Behavior Chapter Objectives After reading this chapter, students should understand: Key differences between consumer and industrial (business-to-business) marketing Market segmentation for marketing to organizations Understanding why organizational buyers make decisions Understanding the mechanism used by organizations to make purchasing decisions, or how such decisions are made The importance of where

Chapter 6: Market Structure and Competitor Analysis Chapter Objectives After reading this chapter, students should understand: How to perform a market structure analysis, which identifies major competitors How to perform a competitor analysis Alternative sources of information for analyzing competitors Using game theory in the development of competitive strategy Chapter Overview The purpose of

Chapter 7: Product Decisions Chapter Objectives After reading this chapter, students should understand: The elements of brand equity, building strong brand equity, and leveraging brand equity through brand extensions Developing perceptual maps to make positioning and repositioning decisions Global and technology-related issues in positioning and branding Product line management Issues in packaging and product

Portfolio approach is also called The Growth Share Matrix. (Figure 7.7 Page 201 Growth Share Matrix) The two dimensions of the Growth Share Matrix are relative market share and market growth and incorporate the following definitions: The market is defined as the served market or market segment Market share is defined

Chapter 8: New Product Development Chapter Objectives After reading this chapter, students should understand: Why new products are important to organizations Factors affecting new-product success and failure Three major approaches to developing new products: the linear process, the rugby approach, and the target costing method The steps in bringing new products to market The

Informal social systems: Develop a way for the departments to interact informally Organizational structure: Avoid rigid, departmentalized structure organized along functional groups. Inter-functional teams tend to produce the most successful new products. Incentives and rewards: Establish incentives and rewards Copyright 2011 Pearson Education, Inc., publishing as Prentice Hall 8 Copyright 2011 Pearson

Chapter 9: Pricing Chapter Objectives After reading this chapter, students should understand: The need for consistency between price and the marketing strategy The concept of perceived value and how it is critical to setting price Integrating competition and costs into the pricing decision Deciding how much of the strategic pricing gap between cost

Periodic discounting Flat-rate versus variable-rate or per-use pricing Other pricing mechanisms 4. Competing against private labels Ways to defend brands against private labels include: Add value in ways discussed earlier in this chapter Develop new market segments that are less price sensitive Build stronger relationships with the channels of distribution Prune

Chapter 10: Communications and Advertising Strategy Chapter Objectives After reading this chapter, students should understand: The basic model of communication and how technology is changing that model The elements of an integrated marketing communications (IMC) program Setting advertising goals and selecting target audiences Developing message strategies Key elements of media planning How advertising

2005. Analyzes paid product TV shows for one-year period. Influencing word-of-mouth: Investment in activities that will spread word-of-mouth Up-and-comers: Other types of media too new to evaluate Choosing the specific vehicles: Allocating the budget allocation properly includes: Use of statistics describing each vehicle Appropriateness of the vehicle for the product Methods of choosing

Chapter 11: Sales Promotion Chapter Objectives After reading this chapter, students should understand: How sales promotion differs from advertising and other modes of communication The different types of sales promotions available to the marketing manager Differences among customer, trade, and retailer-oriented promotions Issues in the development of promotional strategy and objective setting Allocating money

Chapter 12: Channels of Distribution Chapter Objectives After reading this chapter, students should understand: The functions of channels of distribution Key factors affecting the choice among alternative channel structures Channel options Managing channels of distribution, particularly resolving conflicts between channel members Special topics in channels of distribution, including the web, changes in supermarket retailing,

H. Channels Issues in High-tech Marketing 1. OEMs (Original equipment manufacturers): distributors that purchase a product to bundle together to sell as a package usually for a limited time and no brand recognition is given to each component. Table 12.4 Page 364 OEM vs. Branded Marketing distinguishes the differences in the

Chapter 13: Direct Channels of Distribution: Personal Selling and Direct Marketing Chapter Objectives After reading this chapter, students will have learned: How the sales force fits into the marketing organization The major duties of a salesperson Managing the sales force in terms of managing sales performance, designing sales territories, determining sales force size,

H. Changing Nature of the Sales Force: The Impact of Technology 1. Re-engineering of sales (virtual selling) has occurred for several reasons: Personal selling has become more complex and more difficult to make a sale Customers have become more knowledgeable about what they want, but also need guidance and advice Corporations are becoming

Chapter 14: Customer Relationship Management Chapter Objectives After reading this chapter, students should understand: The economics of customer loyalty (i.e., why long-term customer relationships are good business) A general framework for customer relationship management The importance of a customer relationship database Defining, measuring, and building customer satisfaction Loyalty or frequency marketing programs The growing

5. Mass Customization Technology is projecting this method further by offering customers ways to customize their own products. Imparts feeling that product was made especially to the customers specifications Combines information technology and flexible manufacturing technologies 6. Community Building Customers who share information between themselves and the company about the product/service Successful communities on

Chapter 15: Special Topic: Strategies for Service Markets Chapter Objectives After reading this chapter, students should understand: The nature of services and the characteristics that distinguish them from manufactured goods The service quality model Measuring the quality of services Developing marketing strategies for services Marketing-mix decision making for service businesses How information technology affects

Which of the following is an example of a geographic variable? A) lifestyle B) race C) religion D) climate Answer: D Answer: D Answer: D Which of the following pricing objectives is useful only when the product has a monopoly or near monopoly position so that the market will produce the needed sales volume at the price set? A)

The importance of various marketing-mix elements varies over the product life cycle. Answer: TRUE Answer: TRUE Answer: TRUE Psychographics divide the total market in a geographic area into segments based on activities, interests, values, opinions, personality characteristics and attitudes using statistical procedures. Answer: TRUE Answer: TRUE Answer: TRUE Competitive distribution structures cannot differ in the same market. Answer: FALSE Answer:

Which of the following states that the people who did not respond to a study may feel differently about the issue being surveyed than those who did? A) interviewer bias B) nonresponse bias C) central tendency error D) tolerance bias Answer: B Answer: B Answer: B With reference to the "Net Promoter" customer loyalty metric, the "Net promoter

According to the VALS system developed by SRI International, survivors are cautious customers. Answer: TRUE Answer: TRUE Answer: TRUE A major disadvantage of the marketing concept is that it is limited to current, expressed needs. Answer: FALSE Answer: FALSE Answer: FALSE The key to using customer service to develop long-term relationships is to view service as a way

Creative selling involves developing new customers and maintaining old ones by investing a considerable amount of time in understanding buyers needs and wants. Answer: TRUE Answer: TRUE Answer: TRUE When the corporate brand is carried with individual product names it is known as co-branding. Answer: FALSE Answer: FALSE Answer: FALSE A prisoners dilemma game is the kind of

According to Abraham Maslow, physiological needs are basic human needs. Answer: TRUE Answer: TRUE Answer: TRUE More than with physical goods, price is often used as an indicator of service quality. Answer: TRUE Answer: TRUE Answer: TRUE "Sales promotion" involves boosting sales in short term. Answer: TRUE Answer: TRUE Answer: TRUE One of the problems with using a variety of channels (multiple-channel

Which of the following best describes the entire population of the target group? A) sample B) universe C) market D) cohort Answer: B Answer: B Answer: B Which of the following types of sales quotas is most commonly used by sales organizations? A) sales volume based quota B) profit based quota C) activity based quota D) customer based quota Answer: A Answer: A Answer: A With

A key feature of the marketing plan is that it is written. Answer: TRUE Answer: TRUE Answer: TRUE Displays and other company-paid advertisements inside a store are called point-of-purchase advertising. Answer: TRUE Answer: TRUE Answer: TRUE Typically, penetration strategies which involve entering the market with low price are employed by technology-based products. Answer: FALSE Answer: FALSE Answer: FALSE Coupon programs provide competitive

A person watching a television commercial at home is distracted by a crying baby. In the communication process, the crying baby can be cited as an example of: A) a noise. B) a response. C) decoding. D) a feedback. Answer: A Answer: A Answer: A Which of he following refers to one particular product segment of a particular

B-to-B companies spend a higher percentage of their communications money on mass media like TV advertising and much less on print advertising than consumer-products companies. Answer: FALSE Answer: FALSE Answer: FALSE The salespersons motivation is a basic force behind how much effort he or she devotes to the job and how he or she

Different entities involved in the buying process (like initiator, influencer etc.), have: A) the same needs and seek the same benefits. B) different needs but seek the same benefits. C) the same needs but seek different benefits. D) different needs and seek different benefits. Answer: D Answer: D Answer: D Which of the following pricing tactics applies to

Screening tests are used to refine the concept statements. Answer: FALSE Answer: FALSE Answer: FALSE Sales quotas are specific sales goals that salespeople are required to meet. Answer: TRUE Answer: TRUE Answer: TRUE In a new task purchase situation, the current supplier is in an advantageous position. Answer: FALSE Answer: FALSE Answer: FALSE The perceived complexity of the innovation is positively related

Which of the following refers to the homework part of the new product development process? A) implementing a good project prioritization process B) keeping a strong market orientation throughout the new product development process C) spending time on up-front activities before the product is launched D) high-quality execution of the steps of the process Answer:

An example of a modified rebuy situation would be the purchase of paper clips for a company. Answer: FALSE Answer: FALSE Answer: FALSE Mass customization is also known as one-to-one marketing. Answer: TRUE Answer: TRUE Answer: TRUE Sampling is less effective than coupons, advertising, and games or contests in helping consumers evaluate products. Answer: FALSE Answer: FALSE Answer: FALSE The largest part

A typical marketing planning horizon is five years. Answer: FALSE Answer: FALSE Answer: FALSE Credence attributes refers to the characteristics where the quality cannot be determined even after consumption. Answer: TRUE Answer: TRUE Answer: TRUE Onstage contact points refer to contact points that are observable to the customer. Answer: TRUE Answer: TRUE Answer: TRUE Organizational marketing normally targets an individual. Answer: FALSE Answer: FALSE Answer:

In virtual shopping, the consumer can use the simulation to view (on a screen) shelves stocked with any kind of product. Answer: TRUE Answer: TRUE Answer: TRUE Competitor analysis has an unsavory reputation due to many interpreting it as corporate spying. Answer: TRUE Answer: TRUE Answer: TRUE A product class is also called a product type. Answer: FALSE Answer: FALSE Answer:

An understanding of the cost structure of the market provides marketing managers with: A) an idea of how low some competitors can price. B) the demographics of target markets. C) the behavioral segmentation of target markets. D) an accurate idea of customers' willingness to pay. Answer: A Answer: A Answer: A Lansdale Semiconductor is considered as the "last

In the classic linear approach, once the company has determined which markets it wants to enter, the immediately next step of a new product development process is: A) initial design and concept screening. B) business analysis. C) testing and concept development. D) idea generation. Answer: D Answer: D Answer: D Which of the following is one of the input

________ present a standard product differently to each customer. A) Collaborative customizers B) Adaptive customizers C) Cosmetic customizers D) Transparent customizers Answer: C Answer: C Answer: C In this stage of the product life cycle, product development should focus on product enhancements and line extensions that focus on the segments still purchasing the category. A) introduction B) growth C) maturity D) decline Answer:

Situational factors used for industrial market segmentation include the customers delivery speed needs and order size needs. Answer: TRUE Answer: TRUE Answer: TRUE Packaging can be an important differentiator. Answer: TRUE Answer: TRUE Answer: TRUE Loyalty programs are also known as facultative programs. Answer: FALSE Answer: FALSE Answer: FALSE A broker assumes title risk and usually takes physical custody of products. Answer: FALSE Answer:

Companies discovering that customers are the best source of new-product ideas is called the "democratizing" of innovation. Answer: TRUE Answer: TRUE Answer: TRUE A "marketing-driven" organization can quickly react to changes in the marketplace. Answer: FALSE Answer: FALSE Answer: FALSE Customers who fall under the hostage group exhibit high switching rates and low commitment to your products. Answer: FALSE Answer:

Price promotions can dilute brand equity. Answer: TRUE Answer: TRUE Answer: TRUE The members that participate in brainstorming sessions to generate new product ideas are generally the customers. Answer: FALSE Answer: FALSE Answer: FALSE FMCG products need more extensive information search than durable goods. Answer: FALSE Answer: FALSE Answer: FALSE R&D and marketing personnel are often rewarded differently. In many companies, marketing

Identify the situation in which a channel will want deals for forward buying. A) high promotional elasticity and high holding cost B) high promotional elasticity and low holding cost C) low promotional elasticity and high holding cost D) low promotional elasticity and low holding cost Answer: B Answer: B Answer: B Which of the following statements is true

Brands increase information search costs. Answer: FALSE Answer: FALSE Answer: FALSE Price fluctuations in the Internet are slow compared to price increases offline. Answer: FALSE Answer: FALSE Answer: FALSE Manufactured products are low in search attributes. Answer: FALSE Answer: FALSE Answer: FALSE For industrial products and services, the marketing manager can determine the customer and competitor targets by consulting product sales literature, his

One of the major functions of marketing research is monitoring current marketing programs. Answer: TRUE Answer: TRUE Answer: TRUE As high-tech products mature, the marketing strategies employed are very different from those for other products in the mature or decline stage of the life cycle. Answer: FALSE Answer: FALSE Answer: FALSE Unlike other service firms, professional services firms

Vertical marketing occurs across industries, particularly where the needs and uses are similar. Answer: FALSE Answer: FALSE Answer: FALSE Internet is an example of a nonpersonal channel of communication. Answer: TRUE Answer: TRUE Answer: TRUE Off-invoice allowances are payments to store chains for placing a product on a shelf. Answer: FALSE Answer: FALSE Answer: FALSE One way to anticipate a competitors likely

Which of the following leads to intrinsic motivation? A) different aspects of the job B) promotion C) salary increase D) sales contests Answer: A Answer: A Answer: A Which of the following best describes a trend in business to purchase a service from an outside vendor to replace the company's operation? A) insourcing B) outsourcing C) joint venture D) horizontal integration Answer: B Answer:

The overall purpose of the marketing plan is to: A) enable managers to stay in touch with key aspects of business environment. B) act as a guideline when performing the final audit. C) serve as the mandatory document to be produced when registering a business. D) serve as the primary source of a company's

During a buying process, the normal procedure once a list of qualified suppliers is formed is to send out a ________ to potential suppliers. A) request for product review B) request for proposals C) request for quotation D) request for product specifications Answer: B Answer: B Answer: B ________ offer one standard but a customizable product that is

The basic component of the core strategy is the value proposition. Answer: TRUE Answer: TRUE Answer: TRUE Factor analysis is a multiple regression statistical procedure. Answer: FALSE Answer: FALSE Answer: FALSE Clinical research is generally used to generate hypotheses for further research, often quantitative. Answer: FALSE Answer: FALSE Answer: FALSE When a firm markets a product or service to another organization, it

Telemarketing is cheaper than direct mail. Answer: FALSE Answer: FALSE Answer: FALSE Franchising works particularly well when the service can be standardized across disparate geographic locations. Answer: TRUE Answer: TRUE Answer: TRUE Panel conditioning refers to a problem that the panel members may not remain on the panel throughout the required time period. Answer: FALSE Answer: FALSE Answer: FALSE Market penetration strategies

The general types of market research data and the set of techniques used in global market research vary from country to country. Answer: FALSE[/cpmembership] Answer: FALSE[/cpmembership] Answer: FALSE[/cpmembership] Developing financial arrangements such as commissions and higher margins is a way to resolve channel conflicts. Answer: TRUE Answer: TRUE Answer: TRUE Reservation price is the most someone is willing to

For a frequently-purchased product, ________ are the keys to success. A) trial rates B) repeat rates C) brand awareness D) brand recall Answer: B Answer: B Answer: B Which of the following approaches to measuring brand equity are measures of how the brand is represented psychologically in the minds of the customers? A) response measures B) intermediate measures C) psychological measures D)

A ________ approach classifies competitors based on objective attributes of the firms. A) customer-based B) supply-based C) market-based D) demand-based Answer: B Answer: B Answer: B Development costs are best described as: A) costs that are associated with individual products that do not vary with sales volume. B) expenses involved in bringing new products to the market. C) costs that must

The effectiveness of a direct-mail campaign is easy to evaluate because the response comes quickly after the date of the promotion, or not at all. Answer: TRUE Answer: TRUE Answer: TRUE Amway, Mary Kay, and Tupperware use a multilevel or network marketing distribution system. Answer: TRUE Answer: TRUE Answer: TRUE For a company to dominate its industry in

Many products are repositioned for a new use or benefit. Answer: TRUE Answer: TRUE Answer: TRUE Over-engineered products will contain features that customers do not need or want. Answer: FALSE Answer: FALSE Answer: FALSE The largest amount of market development funds is spent on slotting allowances. Answer: TRUE Answer: TRUE Answer: TRUE Lifetime customer value calculations are based on assumptions that can

Tangibility of services can be increased by using sampling or other promotions. Answer: TRUE Answer: TRUE Answer: TRUE A middleman who buys from manufacturers and sells to retailers is known as facilitating agent. Answer: FALSE Answer: FALSE Answer: FALSE One approach to evaluating trade promotions is tracking the before-and-after results. Answer: TRUE Answer: TRUE Answer: TRUE As high-tech products proliferated, branding became

Differences between nations are often less than differences within nations. Answer: TRUE Answer: TRUE Answer: TRUE Strategically pricing below customer value is often called pricing to value. Answer: FALSE Answer: FALSE Answer: FALSE Economists often use cross-elasticity of demand as an indicator of substitutability. Answer: TRUE Answer: TRUE Answer: TRUE Marketing can create and deliver value, but customer choices should be influenced

The Delphi method of forecasting is implemented by forming a jury of experts from a diverse population. Answer: TRUE Answer: TRUE Answer: TRUE A merchant establishment operated by a concern that is engaged primarily in buying, taking title to, usually storing and physically handling goods in large quantities, and reselling the goods to retail

Which of the following is an example of an internal source of information? A) advertisements B) past experiences with products C) recommendations of an opinion leader D) advice from an expert Answer: B Answer: B Answer: B ________ is the ability of the service provider to respond to the customer's needs on a timely basis. A) Reliability B) Responsiveness C) Assurance D)

Ubiquitous marketing department concept gives people who are not in marketing the sense that they are also responsible for performing marketing activities. Answer: FALSE Answer: FALSE Answer: FALSE Marketing driven organizations use push-the-catalogue approach to marketing. Answer: FALSE Answer: FALSE Answer: FALSE Straight salary is often used for new salespeople, who are unlikely to generate substantial sales in

Communication activities that provide extra incentives to customers or the sales force to achieve a short-term objective are called: A) sales promotion. B) advertising. C) integrated marketing communication. D) public relations. Answer: A Answer: A Answer: A The senior citizen discounts given at movie theaters and quantity discounts on personal computers given to large customers are examples of: A)

Personal channel of communication includes direct contact, such as a sales force or salespeople in a retail channel. Answer: TRUE Answer: TRUE Answer: TRUE Marketing managers' interactions with suppliers are treated as external transactions. Answer: TRUE Answer: TRUE Answer: TRUE The large advantage of company- owned stores is that the financial risk involved is limited. Answer: FALSE Answer: FALSE Answer: FALSE When

An indirect channel appears to be better than a direct channel when product customization is important. Answer: FALSE Answer: FALSE Answer: FALSE Public relations (PR) has more credibility than advertising. Answer: TRUE Answer: TRUE Answer: TRUE Customer relationship management (CRM) is often used in the context of relationships that are short term in nature. Answer: FALSE Answer: FALSE Answer: FALSE A firms

The decider is a person in the organization who influences the decision about which supplier is chosen. Answer: FALSE Answer: FALSE Answer: FALSE In the classic linear approach to new product development, the first step of the new product development process is idea generation. Answer: FALSE Answer: FALSE Answer: FALSE "Potential" is defined as the amount of sales

The industries in which one company has historically chosen to be the first in changing price or making some other marketing-mix or strategic decision, ________ concept of game theory is used. A) prisoner's dilemma B) Nash equilibrium C) best strategy D) leader-follower Answer: D Answer: D Answer: D The reengineering of sales in the 1990s, especially the impact

The concept of global marketing is similar to market or customer orientation. Answer: FALSE Answer: FALSE Answer: FALSE Competitor targets must be identified so that marketing managers know which brands or companies offer the most likely competition for the identified customer. Answer: TRUE Answer: TRUE Answer: TRUE Operating variables used for industrial market segmentation include the customers delivery

A merchant establishment operated by a concern that is engaged primarily in buying, taking title to, usually storing and physically handling goods in large quantities, and reselling the goods (usually in smaller quantities) to retail or to industrial or business users is known as a(n): A) agent. B) wholesaler. C) facilitating agent. D) broker. Answer:

The most common misuse of focus groups is attempting to use them to: A) generate research hypothesis for further study. B) brainstorm for new product ideas. C) draw general conclusions. D) carry out concept testing. Answer: C Answer: C Answer: C A(n) ________ is the basic amount of money paid regularly to a salesperson. A) commission B) salary C) incentive payment D)

Which of the following stages of the family life cycle best describes older married couples with dependent children? A) Full nest II B) Empty nest I C) Empty nest II D) Full nest III Answer: D Answer: D Answer: D ________ are also called new-to-the-world products because the firm has created a new product category. A) Classically innovative products B) New

Which of the following methods of sales forecasting uses the averages of historical sales figures to make a forecast? A) econometric models B) leading average C) linear extrapolation D) moving average Answer: D Answer: D Answer: D Which of the following statements is true regarding repeat rates? A) Repeat rates tend to increase. B) A product can be successful without

Because agents are compensated only when they sell, based on a negotiated commission rate, the channel costs become fixed costs rather than variable. Answer: FALSE Answer: FALSE Answer: FALSE For consumer-product companies that are the heaviest users of advertising and promotion, there has been a significant shift over time away from promotion toward media

As customer knowledge about a product increases: A) the number of intermediaries in the distribution channels also increases. B) the information needs of the customers increase because of their curiosity to learn more. C) the need for personalized services increase because customers feel that they need specific features. D) sales through outlets increase and

When the ________ is put to work in a market place, it is known as product positioning. A) value proposition B) brand equity C) marketing strategy D) perceived difference Answer: A Answer: A Answer: A In the case of services, ________ focuses squarely on the quality of the employees. A) inbound logistics B) operations C) marketing and sales D) service Answer: A Answer: A Answer:

Data mining refers to: A) designing customer information file structure. B) collecting customer data required to fill the customer information file. C) entering the customer data in the customer information file. D) analyzing a customer information file. Answer: D Answer: D Answer: D According to the Boston Consulting Group (BCG) matrix, when both market growth and relative market

Marketing plans contain guidelines for a product's marketing programs. Answer: TRUE Answer: TRUE Answer: TRUE Classically innovative products are commonly called new-to-the-company products. Answer: FALSE Answer: FALSE Answer: FALSE A competitive advantage should be difficult to imitate. Answer: TRUE Answer: TRUE Answer: TRUE An insufficient number of territories means salespeople spend too much time traveling and not enough time selling. Answer: TRUE Answer: TRUE Answer:

Apostle customers are those who are completely satisfied and have a high loyalty and are very supportive of the company. Answer: TRUE Answer: TRUE Answer: TRUE The expenditure incurred for product-related advertising and promotion is an example of direct fixed costs. Answer: TRUE Answer: TRUE Answer: TRUE Sales promotion can induce customers to become brand-loyal. Answer: FALSE Answer: FALSE Answer: FALSE Indirect

An analysis in which the strengths and weaknesses of competitors and their current and likely future strategies are examined is known as competitor analysis. Answer: TRUE Answer: TRUE Answer: TRUE Telemarketing had the highest response rate of any other direct marketing method. Answer: TRUE Answer: TRUE Answer: TRUE Market development strategies consider customers who either have been targeted

________ is the person who actually authorizes payment for the product. A) The influencer B) The initiator C) The purchaser D) The decider Answer: C Answer: C Answer: C The salesperson's ________ is a basic force behind how much effort he or she devotes to the job and how he or she responds to different kinds of incentives. A)

________ involves creating a flowchart that describes the flow of activity from the time the customer first contacts the service provider to the time the customer receives the service. A) Conjoint analysis B) Market analysis C) Service blueprinting D) Multi-dimensional scaling Answer: C Answer: C Answer: C The amount of money spent on the whole category of a product

Customers who see the benefits of interdependency between the buyer and the seller are known as transaction buyers. Answer: FALSE Answer: FALSE Answer: FALSE Good selling skills can be taught. Answer: TRUE Answer: TRUE Answer: TRUE High awareness among the target audience is only a necessary but not a sufficient condition for high equity. Answer: TRUE Answer: TRUE Answer: TRUE Straight rebuys are

Modern managers have to focus on: A) relationships with the customer. B) transactions that are beneficial. C) increased and instantaneous profit. D) increased market share. Answer: A Answer: A Answer: A Which of the following is considered to be a traditional marketing metric? A) acquisition rate B) sales volume C) acquisition cost D) retention rate Answer: B Answer: B Answer: B Which of the following approaches

Global marketing is based on a systematic analysis of customer behavior in each market. Answer: FALSE Answer: FALSE Answer: FALSE In Nash equilibrium, no manager wants to unilaterally change his or her strategy. Answer: TRUE Answer: TRUE Answer: TRUE The longer a customer is retained, the longer the base profit is earned. Answer: TRUE Answer: TRUE Answer: TRUE An insufficient number of

Research has found that, similar to human relationships, people find comfort and satisfaction with brands to which they are loyal. Answer: TRUE Answer: TRUE Answer: TRUE Advertising has traditionally been defined as any paid or unpaid form of personal communication about an organization, product, service, or idea by an identified sponsor. Answer: FALSE Answer: FALSE Answer: FALSE From

When a retailer or distributor stocks up on a product at a discount while promotion is running and then sells the inventory at regular price, the process is called: A) reverse buying. B) forward buying. C) seasonal buying. D) promotional buying. Answer: B Answer: B Answer: B When does a direct channel appear to be better than an

In-depth study of consumer consumption through interviews and observing behavior is known as ethnographic research. Answer: TRUE Answer: TRUE Answer: TRUE Market segmentation breaks mass markets into segments that have different buying habits. Answer: TRUE Answer: TRUE Answer: TRUE Measuring pupil dilation is a method used in readability tests. Answer: FALSE Answer: FALSE Answer: FALSE Automobiles and gas are examples of complementary

Prestige pricing entails giving most of the value to the customer and retaining a small margin. Answer: FALSE Answer: FALSE Answer: FALSE When the rugby approach is used for new product development, the project teams usually consist of members with different functional specializations and personalities. Answer: TRUE Answer: TRUE Answer: TRUE Product-based promotions carry the most risk to

Treating each customer seperately and giving the perception that he or she is being treated as a unique segment by delivering personalized products and services is known as: A) selective marketing. B) mass marketing. C) sales orientation. D) mass customization. Answer: D Answer: D Answer: D Lands' End offers tailored clothing on its Web site, allowing one to

For a consumer product sold door-to-door through a multilevel selling company like Mary Kay, ________ would be an appropriate control unit. A) countries B) states C) counties D) blocks Answer: D Answer: D Answer: D Identify the objective of trade promotions. A) get channels to carry the product and promote it B) get customers to purchase the product through the

Products falling under one category of the BCG matrix are most likely to be eliminated. Identify this category. A) cash cows B) dogs C) stars D) problem children Answer: B Answer: B Answer: B According to the Brand Asset Valuator (BAV) model, which of the following is one of the key dimensions of brand equity? A) sophistication B) excitement C) competence D) differentiation Answer: