When segmenting by usage rate, markets can be segmented into nonusers, ex-users,
potential users, first-time users, and regular users of a product.
When a company hires lobbyists to influence legislation affecting its industry, it is
taking a defensive stance toward the marketing environment.
Power centers tend to be smaller than lifestyle centers.
While the process of showrooming can hurt in-store sales of merchandise, retailers can
make it a positive by enhancing the in-store shopping experience.
Kia Motors offers a new car model with the same features as other cars in the same
segment. However, Kia’s model is priced higher than its two main competitors. Kia is
following a more-for-less positioning strategy.
Integrating the promotion mix starts with suppliers.
The most important objective of reminder advertising is telling the market about a new
product.
Under the strategy of intensive distribution, the producer gives only a limited number of
dealers the exclusive right to distribute its products in their territories.
Sellers must understand the ways that consumers in different countries think about and
use certain products before planning a marketing program.
Product value analysis is an approach to enhancing productivity.
Product line filling is overdone if it results in cannibalization and customer confusion.
Launching a fighter brand is an effective way to deal with a situation in which the
market segment being lost is price sensitive and will not respond to arguments of higher
quality.
A sample is a segment of the population selected for marketing research to represent the
population as a whole.
Markup pricing is popular because when all firms in the industry use this pricing
method, prices tend to be similar, so price competition is minimized.
Advertisements for prescription drugs often feature potential benefits and negative side
effects that consumers may experience with use of the medication. These ads present
two-sided arguments.
Standardization of advertising leads to lower advertising costs, greater global
advertising coordination, and a more consistent worldwide image.
A mission statement is a document embodying an organization’s short-term goals.
In the business buying process, the buyer and seller are relatively less dependent on
each other.
Cost-based pricing is often product driven.
The communications process should start with mass media advertising in order to reach
a large number of consumers.
Brand name products give buyers assurances of consistent quality.
All companies must have salespeople.
Sunset Lawn Service puts most of its resources into value-building marketing
investments. The management at Sunset is practicing customer-value marketing.
The management strategy of environmental sustainability focuses on developing ways
to sustain the environment while also producing profits.
The business marketer normally deals with far fewer but far larger buyers than the
consumer marketer does.
The four Cs concept adopts the buyer’s view of the market.
Joint venturing involves the least change in the company’s product lines, organization,
investments, or mission.
Independent off-price retailers either are independently owned and run or are divisions
of larger retail corporations.
Large-scale marketing approaches that foster two-way customer relationships are made
possible by new communication technologies.
The Children’s Online Privacy Protection Act requires online operators targeting
children to post privacy policies on their sites and notify parents about any information
they are gathering and obtain parental consent before collecting information from
children under age 13.
For customers, the benefits of direct marketing are being able to shop online anytime
and anywhere.
When Tool Trade, an American company, uses qualified Brazilian manufacturers to
produce many of the products it sells to retailers in South America, Tool Trade is using
contract manufacturing.
In a vertical marketing system, two or more companies at one level join together to take
advantage of a new marketing opportunity.
Marketing channel design calls for analyzing consumer needs, setting channel
objectives, identifying major channel alternatives, and evaluating those alternatives.
The Internet is making global price differences more obvious, forcing companies
toward more standardized international pricing.
Persuasive advertising aims to build broad demand.
Mission statements should be market oriented.
A company that focuses on customer developments in designing its marketing strategies
and on delivering superior value to its target customers is a ________ company.
A) market-centered
B) cost-centered
C) competitor-centered
D) customer-centered
E) product-centered
Paul, a purchasing agent for Kiel Inc., has the authority to prevent salespersons from
seeing the decision makers in his organization. Which of the following best describes
Paul’s position?
A) influencer
B) decider
C) gatekeeper
D) buyer
E) user
The marketing concept takes a(n) ________. It starts with a well-defined market,
focuses on customer needs, and integrates all the marketing activities that affect
customers.
A) outside-in perspective
B) product-centered make-and-sell philosophy
C) inside-out perspective
D) consumer-generated marketing approach
E) telling-and-selling approach
Firms that serve small segments not being pursued by other firms are called ________.
A) market followers
B) market mavens
C) market challengers
D) market nichers
E) market leaders
To carefully integrate and coordinate the company’s many communications channels
and produce greater sales impact, some companies appoint a(n) ________.
A) idea champion
B) marketing communications director
C) sales representative
D) business analyst
E) media planner
________ is the process by which firms interact one-to-one with masses of customers to
design products and services tailor-made to individual needs.
A) Product diversification
B) Micromarketing
C) Mass customization
D) Differentiated marketing
E) Local marketing
Which of the following is most likely influenced by marketers?
A) population shifts
B) core cultural values
C) income distribution
D) ethnic diversity
E) media
Delta Motorworks markets its cars based on the age, gender, and income of its
customers. Which of the following types of market segmentation is evident here?
A) geographic segmentation
B) benefit segmentation
C) occasion segmentation
D) demographic segmentation
E) psychographic segmentation
When a company exports to one country, licenses to another, has a joint ownership
venture in a third, and owns a subsidiary in a fourth, it likely will create a(n) ________
to handle its international activity.
A) global organization
B) international division
C) world product group
D) export department
E) indirect exporting venture
Which of the following is true with regard to cash cows?
A) They are high-growth, high-share businesses or products.
B) They can be used to help finance the company’s question marks and stars.
C) They require significant cash to maintain market share.
D) They are low-share businesses and products.
E) They do not promise to be large sources of cash.
________ refers to activities that communicate the merits of the product and persuade
target customers to buy it.
A) Position
B) Promotion
C) Pricing
D) Segmentation
E) Prospecting
When companies serve customers who are willing to pay a premium to get precisely
what they want and the company responds quickly to satisfy these customers’ needs, the
company has achieved ________.
A) customer intimacy
B) product differentiation
C) operational excellence
D) product leadership
E) focus
________ is the process of developing and maintaining a crucial fit between the
organization’s goals and capabilities and its changing marketing opportunities.
A) Benchmarking
B) SWOT analysis
C) Market segmentation
D) Strategic planning
E) Diversification
Market targeting can bring up concerns about privacy and abuse in all of the following
ways EXCEPT ________.
A) when marketing toward children
B) when entertainment and commercial content blend
C) when customers opt in to receive focused content
D) when deceptive messaging is used
E) when e-mails are personalized based on Internet searches by the customer
Proposals related to ________ include strengthening consumer rights in cases of
business fraud and financial protections, requiring greater product safety, ensuring
information privacy, and giving more power to government agencies.
A) preserving the world for future consumption
B) consumer protection
C) truth in lending
D) quality of life
E) truth in advertising
Almost every industry includes firms that specialize in serving target subsegments
called market ________.
A) niches
B) mavens
C) baskets
D) indicators
E) mixes
A shoe manufacturing company uses ads featuring the members of a country music
band with the hope that the band’s fans will see them wearing the company’s shoes and
hence purchase the same brand of shoes. The shoe company believes that the band
portrays the image of a ________ to the band’s fans.
A) membership group
B) reference group
C) status symbol
D) subculture
E) lifestyle
________ are retailers that offer sales assistance because they carry more shopping
goods about which customers might need information.
A) Self-service retailers
B) Full-service retailers
C) Off-price retailers
D) Limited-service retailers
E) Specialty-service retailers
Envirosax reusable shopping bags are stylish and affordable, and they eliminate the
need for plastic store bags. Envirosax reusable shopping bags most likely fall in the
category of ________ products.
A) deficient
B) pleasing
C) mature
D) desirable
E) unpleasing
According to Freud, a person’s buying decisions are primarily affected by ________.
A) family influences
B) societal expectations
C) brand images
D) cultural norms
E) subconscious motives
Refer to the scenario below to answer the following question(s).
Alden Manufacturing produces small kitchen appliances—blenders, hand mixers, and
electric skillets—under the brand name First Generation. Alden attempts to target
newlyweds and first-time home buyers with this brand.
Considering that most young households have limited financial resources, Alden
attempts to engage in target costing. “In doing this,” says Milt Alden, the co-founder of
Alden Electronics, “we have better control over keeping price right in line with
customers.”
Alden manufactures a three-speed blender, its top seller, along with a five-speed
blender. The hand mixers are manufactured in two variants—a small handheld mixer
with two rotating beaters and another that comes with an optional stand and an attached
mixing bowl. Alden’s temperature-controlled skillets are manufactured in a single style
with three color options.
“Our product offerings are narrower,” Milt Alden added, “but our line workers know
each product like the back of their hands. This allows us to produce superior products
while holding our prices low.
If Milt Alden focuses on overall costs of manufacturing plus profit in setting product
prices, which strategy would he employ?
A) break-even pricing
B) competition-based pricing
C) value-added pricing
D) cost-plus pricing
E) good-value pricing
Which of the following refers to a set of benefits that a company promises to deliver to
customers to satisfy their needs?
A) customer lock-in
B) a cartel
C) marketing mix
D) value proposition
E) market segmentation
Total government spending is determined by ________.
A) legal treatises
B) marketing efforts
C) elected officials
D) court rulings
E) technology needs
Refer to the scenario below to answer the following question(s).
John Mayes opened Sparkle Janitorial in 2005. John began his business by acquiring
two contracts for office cleaning services from two local manufacturing facilities. For
two years, John and his wife, Barb, performed the cleaning services alone. After
acquiring three additional cleaning contracts in 2007, John hired two employees. “Up to
that point, we had room to grow but we really had no advertising plan,” John stated.
“We were relying mostly on word-of-mouth.”
By 2010, Barb hired another two full-time employees to begin Sparkle’s new endeavor:
carpet cleaning in homes and offices. “Competition was getting tough for both of our
services at that point,” Barb added. “We ran a local radio spot three times each week.
Then we had an advertiser print coupons on placemats. That gave us a little more
exposure.”
John and Barb Mayes admit that they did not realize the value of a sound promotional
plan earlier. “We wish we would have put together something catchy with a jingle long
before now,” they said.
When starting their business, John and Barb would most likely have benefitted from
understanding ________.
A) social media
B) buzz marketing
C) public relations campaigns
D) network television advertising
E) integrated marketing communications
________ positioning involves meeting consumers’ lower performance or quality
requirements at a much lower price.
A) More for less
B) Less for much less
C) Same for less
D) More for more
E) More for the same
Trends in the natural environment include all of the following EXCEPT ________.
A) increased government intervention
B) the development of an environmental sustainability movement
C) increased pollution
D) decreased costs of product development
E) shortages of raw materials
A) most marketing managers are overloaded with data and often overwhelmed by it
B) most marketing managers are concerned solely about the duplication of content
C) companies have ceased to feel the need for marketing information systems
D) companies have ceased to maintain internal databases
E) it has become more difficult and expensive to obtain primary data
Which of the following is NOT likely to be a question asked in the new product
screening process?
A) Is there a real need and desire for the product?
B) Is there a clear product concept?
C) Does the product offer a sustainable advantage?
D) How many items will the company sell in the first two years?
E) Does the product fit the company’s overall growth strategy?
Which of the following is a traditional sellers’ right?
A) the right to create a monopoly in the market
B) the right to acquire competitors to prevent competition
C) the right to promote any product to any audience
D) the right to add additional taxes if necessary
E) the right to introduce any product in any size and style
In 2005, ________ established a free trade zone between the United States and Costa
Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua.
A) CAFTA-DR
B) FTAA
C) CAN
D) NAFTA
E) the EU
A business purchase usually involves all of the following EXCEPT ________.
A) more decision participants
B) manufacturing representatives
C) more professional purchasing effort
D) trained purchasing agents
E) high-level trained supply managers
Which question should most likely be answered by all companies due to the rapid move
toward globalization?
A) How should we eliminate domestic competition?
B) Should we diversify in a new business area in the home country?
C) Who will our global competitors be, and what are their strategies and resources?
D) How should we fulfill our environmental obligations?
E) Which medium of advertising should we use in our home country?
Which of the following factors influencing the business buying process do marketers
typically find most difficult to assess?
A) economic
B) technological
C) interpersonal
D) organizational
E) environmental
Why should a salesperson set call objectives?
Discuss why business legislation is enacted. Provide examples.
What is a value delivery network?
Why do international markets need to be segmented?
In what way might a marketer rely on opinion leaders?
Define brand personality.
What is good-value pricing?
Provide two reasons why companies are shifting more of their marketing dollars to
online advertising.
Why are critics concerned about companies acquiring competitors?
Describe public relations and any three of its main functions.
Public relations specialists use several tools. Identify three of these tools and describe
how they can help a company communicate with the public.
Provide an example of a company that has used an imaginative distribution system to
gain a competitive advantage.
Briefly explain why, until 2008, Americans amassed record amounts of debt and why
the free-spending trend has ended.
Define price. Discuss its importance.
How can marketers reach the Millennials effectively?
Discuss the international marketing objectives and policies a company should try to
define before going abroad.
What are the four major communication functions?