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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 […]

CHAPTERS 2 AND 7: DDB WORLDWIDE SUMMARY Angela Talley of DDB Worldwide was charged with overhauling JCPenney’s image to keep the company in business in what was becoming a highly competitive market. JCPenney needed to reposition itself in the marketplace […]

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 […]

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 […]

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 […]

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 […]

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. It’s not quite a bike, not quite a motorcycle. It’s definitely environmentally friendly, though. The product serves a […]

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. […]

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 […]

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*TRADE’s goal is for […]

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 […]

CHAPTER 12: FEDERATED DIRECT SUMMARY Federated Direct, which owns Bloomingdale’s and Macy’s, 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 […]

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 […]

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 […]

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. […]

CHAPTER 15: MARRIOTT SUMMARY Quality and consistent service is Marriott’s 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, […]

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 […]

·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 […]

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 […]

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 […]

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 […]

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 […]

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 […]

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 […]

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 […]

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 […]

·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 […]

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, […]

·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© […]

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 […]

·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 […]

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 […]

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 […]

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 […]

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 […]

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 […]

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 […]

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 […]

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 […]

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 customer’s specifications ·Combines information technology and flexible manufacturing technologies 6. Community Building ·Customers […]

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 […]

Which of the following is an example of a geographic variable? A) lifestyle B) race C) religion D) climate Which of the following pricing objectives is useful only when the product has a monopoly or near monopoly position so that […]

The importance of various marketing-mix elements varies over the product life cycle. 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 Competitive distribution […]

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 […]

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

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

According to Abraham Maslow, physiological needs are basic human needs. More than with physical goods, price is often used as an indicator of service quality. Answer: TRUE “Sales promotion” involves boosting sales in short term. Answer: TRUE One of the […]

Which of the following best describes the entire population of the target group? A) sample B) universe C) market D) cohort Which of the following types of sales quotas is most commonly used by sales organizations? A) sales volume based […]

A key feature of the marketing plan is that it is written. Displays and other company-paid advertisements inside a store are called point-of-purchase advertising. Answer: TRUE Typically, penetration strategies which involve entering the market with low price are employed by […]

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. Which […]

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. The salespersons motivation is a basic force behind how much effort he or she devotes […]

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 […]

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

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 […]

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

A typical marketing planning horizon is five years. Credence attributes refers to the characteristics where the quality cannot be determined even after consumption. Answer: TRUE Onstage contact points refer to contact points that are observable to the customer. Answer: TRUE […]

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

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 […]

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 […]

________ present a standard product differently to each customer. A) Collaborative customizers B) Adaptive customizers C) Cosmetic customizers D) Transparent customizers In this stage of the product life cycle, product development should focus on product enhancements and line extensions that […]

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

Companies discovering that customers are the best source of new-product ideas is called the “democratizing” of innovation. A “marketing-driven” organization can quickly react to changes in the marketplace. Answer: FALSE Customers who fall under the hostage group exhibit high switching […]

Price promotions can dilute brand equity. The members that participate in brainstorming sessions to generate new product ideas are generally the customers. Answer: FALSE FMCG products need more extensive information search than durable goods. Answer: FALSE R&D and marketing personnel […]

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 […]

Brands increase information search costs. Price fluctuations in the Internet are slow compared to price increases offline. Answer: FALSE Manufactured products are low in search attributes. Answer: FALSE For industrial products and services, the marketing manager can determine the customer […]

One of the major functions of marketing research is monitoring current marketing programs. 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: […]

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

Which of the following leads to intrinsic motivation? A) different aspects of the job B) promotion C) salary increase D) sales contests Which of the following best describes a trend in business to purchase a service from an outside vendor […]

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 […]

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 […]

The basic component of the core strategy is the value proposition. Factor analysis is a multiple regression statistical procedure. Answer: FALSE Clinical research is generally used to generate hypotheses for further research, often quantitative. Answer: FALSE When a firm markets […]

Telemarketing is cheaper than direct mail. Franchising works particularly well when the service can be standardized across disparate geographic locations. Answer: TRUE Panel conditioning refers to a problem that the panel members may not remain on the panel throughout the […]

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

For a frequently-purchased product, ________ are the keys to success. A) trial rates B) repeat rates C) brand awareness D) brand recall Which of the following approaches to measuring brand equity are measures of how the brand is represented psychologically […]

A ________ approach classifies competitors based on objective attributes of the firms. A) customer-based B) supply-based C) market-based D) demand-based Development costs are best described as: A) costs that are associated with individual products that do not vary with sales […]

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. Amway, Mary Kay, and Tupperware use a multilevel or network marketing distribution system. Answer: TRUE […]

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

Tangibility of services can be increased by using sampling or other promotions. A middleman who buys from manufacturers and sells to retailers is known as facilitating agent. Answer: FALSE One approach to evaluating trade promotions is tracking the before-and-after results. […]

Differences between nations are often less than differences within nations. Strategically pricing below customer value is often called pricing to value. Answer: FALSE Economists often use cross-elasticity of demand as an indicator of substitutability. Answer: TRUE Marketing can create and […]

The Delphi method of forecasting is implemented by forming a jury of experts from a diverse population. A merchant establishment operated by a concern that is engaged primarily in buying, taking title to, usually storing and physically handling goods in […]

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 ________ is the ability of the service provider to […]

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

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. The senior citizen discounts given at movie theaters and […]

Personal channel of communication includes direct contact, such as a sales force or salespeople in a retail channel. Marketing managers’ interactions with suppliers are treated as external transactions. Answer: TRUE The large advantage of company- owned stores is that the […]

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

The decider is a person in the organization who influences the decision about which supplier is chosen. In the classic linear approach to new product development, the first step of the new product development process is idea generation. Answer: FALSE […]

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 […]

The concept of global marketing is similar to market or customer orientation. 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 Operating variables used […]

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 […]

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. A(n) ________ is the basic […]

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 ________ are also called new-to-the-world products […]

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 Which of the following statements is true regarding repeat […]

Because agents are compensated only when they sell, based on a negotiated commission rate, the channel costs become fixed costs rather than variable. For consumer-product companies that are the heaviest users of advertising and promotion, there has been a significant […]

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 […]

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 In the case of services, ________ focuses squarely on the quality […]

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. According to the […]

Marketing plans contain guidelines for a product’s marketing programs. Classically innovative products are commonly called new-to-the-company products. Answer: FALSE A competitive advantage should be difficult to imitate. Answer: TRUE An insufficient number of territories means salespeople spend too much time […]

Apostle customers are those who are completely satisfied and have a high loyalty and are very supportive of the company. The expenditure incurred for product-related advertising and promotion is an example of direct fixed costs. Answer: TRUE Sales promotion can […]

An analysis in which the strengths and weaknesses of competitors and their current and likely future strategies are examined is known as competitor analysis. Telemarketing had the highest response rate of any other direct marketing method. Answer: TRUE Market development […]

________ is the person who actually authorizes payment for the product. A) The influencer B) The initiator C) The purchaser D) The decider The salesperson’s ________ is a basic force behind how much effort he or she devotes to the […]

________ 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 […]

Customers who see the benefits of interdependency between the buyer and the seller are known as transaction buyers. Good selling skills can be taught. Answer: TRUE High awareness among the target audience is only a necessary but not a sufficient […]

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. Which of the following is considered to be a traditional marketing metric? A) acquisition rate […]

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

Research has found that, similar to human relationships, people find comfort and satisfaction with brands to which they are loyal. Advertising has traditionally been defined as any paid or unpaid form of personal communication about an organization, product, service, or […]

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 […]

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

Prestige pricing entails giving most of the value to the customer and retaining a small margin. When the rugby approach is used for new product development, the project teams usually consist of members with different functional specializations and personalities. Answer: […]

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. […]

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 Identify the objective of trade promotions. A) get channels to carry […]

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 According to the Brand Asset Valuator (BAV) model, which of the following […]