Companies that watch variables such as income, cost of living, and interest rates, are
more likely to be negatively affected by an economic change such as a recession or
boom.
If a company faces competition, its demand at different prices will depend on whether
competitors’ prices stay constant or change with the company’s own prices.
Refer to the scenario below to answer the following question(s).
Jason West, owner of A1 Cleaning, started his enterprise in 2001. Jason’s primary focus
had been on office cleaning for large corporations. But in recent months, Jason has seen
a decline in demand for his office cleaning services. Surprisingly, the competitive
environment appeared relatively stable with no new competitors. However, Jason knew
that office cleaning was a high-frequency service that is usually performed daily;
therefore, competitors must have been doing something to attract his customers.
Building a competitive advantage seemed to be the only option to offset competition.
But as Jason pondered over his dilemma, he realized that prior to building his
competitive advantage he needed to better understand how customers assessed service
quality and what they look for in a superior cleaning service.
Jason developed a research plan. First, he gathered information about his competitors,
primarily through pamphlets and Web sites, as well as through a few phone calls in
order to find out exactly what the competitors offered in their cleaning packages. In
addition, Jason obtained from the Chamber of Commerce an updated list of local
corporations. He planned on sending written questionnaires to them.
Though the list of corporations contained 141 local company names, Jason chose to
survey 75 of them. To better understand customer service expectations between both
small and large corporations, Jason divided his surveys into two categories. The survey
questions were designed to extract specific data from respondents with regard to service
quality expectations in correlation to service frequency and price.
Jason awaited the results. Though his primary focus had been on large corporations, he
was flexible and would aim his efforts differently if needed.
Competitive marketing intelligence is the systematic collection and analysis of publicly
available information about consumers, competitors, and developments in the
marketplace.
Niche marketing involves tailoring brands and promotions to the needs and wants of
local customer groups—cities, neighborhoods, and even specific stores.
Demographic segmentation divides buyers into segments based on their knowledge,
attitudes, uses, or responses concerning a product.
A group of firms in an industry following the same or a similar strategy in a given target
market is known as a strategic group.
Government agencies such as the Food and Drug Administration and the Consumer
Product Safety Commission investigate and ban potentially unsafe products.
Regulations created by these and other agencies result in higher research costs and
longer times between new product ideas and their introduction.
Most businesses that manufacture products for the consumer market also sell directly to
consumers.
Customers located close to a firm are less likely to benefit from FOB-origin pricing
than customers located farther away.
Changing technologies, especially with digital content, is significantly increasing the
role of public relations in a firm’s integrated marketing communications program.
The Internet of Things is a new product created by multiple companies working
together.
Overhead costs are costs that do not vary with production or sales level.
In the territorial sales force structure, each salesperson is responsible for selling a
single, exclusive product across different geographical regions.
A SWOT analysis allows a marketer to evaluate the company’s overall strengths,
weaknesses, opportunities and threats.
A company will always choose the largest and fastest-growing segments as the most
attractive for it to enter.
Dissonance-reducing buying behavior typically occurs when a buyer sees little
difference among brands but is highly involved with the purchase.
Firms that practice product differentiation gain competitive advantage through the way
they design their channel’s coverage, expertise, and performance.
Online social networks represent an important avenue to create buzz for marketers.
In a direct marketing channel, the producer sells directly to the intermediaries, who in
turn sell directly to the customers.
If a company has numerous and complex products, it can adopt a product sales force
structure in which the sales force specializes along product lines.
Price decisions must be coordinated with product design, distribution, and promotion
decisions to form a consistent and effective integrated marketing mix program.
Decoding is the process by which a sender puts his or her thoughts into a symbolic
form.
The selling concept holds that consumers will not buy enough of the firm’s products
unless the firm undertakes a large-scale selling and promotion effort.
A company’s product mix has four important dimensions: width, length, depth, and
consistency.
Healthy Veggies, LLC, believes that marketing is a tool to use in finding customers and
keeping them by providing vegetables that are grown using chemical-free farming
techniques and selling through small family-owned stores. Healthy Veggies, LLC,
practices societal marketing.
Written ethics codes and ethics programs ensure ethical behavior.
Consumers can never buy functional versions of highly promoted branded products at
lower prices.
Through market targeting, companies divide large, diverse markets into smaller
segments that can be reached more efficiently and effectively with products and
services that match their unique needs.
Marketers drive traffic to the company Web sites solely through using other online and
digital marketing tools.
Most major companies have now appointed a chief privacy officer (CPO), whose job is
to safeguard the privacy of the companies in the international business environment.
As mass markets have fragmented, marketers have shifted away from mass marketing.
Children exert little influence on family buying decisions.
With the recent explosion of information technologies, companies are finding it difficult
to generate marketing information in great quantities.
Price discrimination is permissible if the seller manufactures different qualities of the
same product for different retailers and can prove that the price difference is
proportional.
Marketers are the least effective when they appeal to existing wants rather than when
they attempt to create new ones.
Oreos are less sweet or less bitter in certain countries. This is an example of straight
product extension.
Which type of store carries a deep assortment of a particular product line, has
knowledgeable staff, and can be viewed as a giant specialty store?
A) category killer
B) convenience store
C) factory outlet
D) warehouse club
E) off-price retailer
In which of the following situations has a company most actively embraced
customer-managed relationships?
A) American Airlines awards frequent flyer points to returning customers.
B) Paige Premium Denim jeans provide superior quality and perfect fit.
C) iRobot invites enthusiastic Roomba owners to develop and share their own uses for
the company’s robotic vacuum cleaner.
D) Best Buy distinguishes between its best customers and its less profitable customers,
stocking merchandise to appeal to each group.
E) Toyota develops a marketing presence on social networks and other online
communities.
________ are consumer products and services that customers usually buy frequently,
immediately, and with minimal comparison and buying effort.
A) Unsought products
B) Capital items
C) Shopping products
D) Convenience products
E) Supplies and repair services
Pace Hardware uses Learningnow.com to improve sales force effectiveness and
facilitate sharing of expertise. It allows Pace retailers to connect with each other for
seeking managerial and marketing advice. It also allows Pace retailers to ask their
suppliers about product usage, deliveries, and warranties, and send new-product
information directly to the retailers. In this instance, Pace Hardware is facilitating
communication through ________.
A) extranet links
B) podcasts
C) search engines
D) trading exchanges
E) reverse auctions
Orion is planning to give away free mouse pads imprinted with the company logo and
name to anyone who enters their store on the day they launch their new laser mouse.
What kind of sales promotion is Orion planning?
A) promotional products
B) rebate
C) price packs
D) sweepstakes
E) premiums
When using public relations, the company pays for space and time in the media.
Which of the following is true with regard to geographic organization?
A) It is the most common form of marketing organization.
B) Different marketing activities are headed by a functional specialist.
C) It requires salespeople to have international experience.
D) It reduces the overall efficiency of salespeople.
E) It allows salespeople to work with a minimum of travel time and cost.
Marketers need an in-depth understanding of ________ if they want to anticipate how
that competitor will act.
A) the industry
B) a competitor’s mentality
C) a competitor’s strengths and weaknesses
D) a competitor’s business model
E) the market
Which of the following wholesaler’s channel functions is demonstrated when a
wholesaler’s sales force helps a manufacturer to reach many small customers at a low
cost?
A) bulk-breaking
B) selling and promoting
C) buying and assortment building
D) risk bearing
E) rack jobbing
Joe Kerry, owner of a small bakery, wants to obtain marketing insights to improve his
business. Joe has a limited budget and would like to gather free secondary data. What is
the best option for Joe?
A) mail questionnaires
B) focus group interviews
C) Internet search engines
D) personal interviews
E) commercial online databases
Refer to the scenario below to answer the following question(s).
Reliable Tools Company is a manufacturer of hubs and axles for the trailer and heavy
truck industry. Although Reliable Tools only has 15 customers, the company is the sole
supplier of hub and axle components to those customers. Monthly sales at Reliable
Tools are approximately $1 million. “You might say we have all our eggs in one
basket,” says owner Arthur Deetz.
It is critical that a competent sales force be maintained in order to nurture those few but
large accounts. Ninety-five percent of Reliable Tools’ customers are located in
Michigan, Ohio, and Indiana, which means that travel time to all customers is relatively
short. However, given the nature of the industry, time spent with each customer is
crucial.
For sales managers to understand how the members of the Reliable Tools sales force
spend their time, the salespeople must submit a(n) ________.
A) expense report
B) time-and-duty analysis
C) mobile conferencing schedule
D) sales forecast
E) incentive plan
Companies that operate large marketing departments, conduct expensive marketing
research, spell out elaborate competitive strategies, and spend huge sums on advertising
are using ________ marketing strategies.
A) informal
B) formulated
C) entrepreneurial
D) intrepreneurial
E) blue ocean
The purpose of ________ is to ensure that the company achieves the sales, profits, and
other goals set out in its annual marketing plan.
A) benchmarking
B) operating control
C) strategic control
D) SWOT analysis
E) a marketing audit
Under ________, buyers share sales and inventory information directly with key
suppliers who monitor and replenish the buyer’s stock automatically as needed.
A) supplier selection
B) proposal solicitation
C) general need specification
D) vendor-managed inventory
E) procurement
A strategy of exclusive dealing is most likely considered legal if ________.
A) the industry is newly developed
B) both parties have large territories
C) competition is not substantially lessened
D) the dealer agrees to promote the competitor’s products
E) the dealer receives a steady source of supply and support
Individuals and households that buy or acquire goods and services for personal
consumption make up the ________.
A) consumer market
B) market offering
C) market mix
D) subculture
E) social class
GameStop sells only video games and systems, offering a narrow product line with a
deep assortment within that line. GameStop is a(n) ________.
A) department store
B) convenience store
C) category killer
D) specialty store
E) off-price retailer
Glasis is a type of paint made specifically for use on cars. An ad in Motor Trend
magazine advising consumers to request their auto body shops to use Glasis paint is an
example of how a company uses ________.
A) word-of-mouth influence
B) public relations
C) buzz marketing
D) a push strategy
E) a pull strategy
An American cola-manufacturing company that primarily targets rebellious and
adventurous people most likely uses ________ segmentation.
A) occasion
B) geographic
C) income
D) benefit
E) psychographic
Which of the following characterizes indirect exporting?
A) It requires more investment than joint venturing.
B) It requires an overseas marketing organization or network.
C) It involves less risk and investment than other entry methods.
D) The potential returns are greater than direct exporting.
E) It involves joining with foreign companies to produce or market products or
services.
Refer to the scenario below to answer the following question(s).
Fun-Spot Fun Park began as a small amusement park in 1985. With nothing more than a
merry-go-round, a slide, pony rides, and an ice cream stand, Fun-Spot grew into a
popular family attraction with 20 rides, a restaurant, and an outdoor performing arts
theater.
“My wife, Gail, and I didn’t know what we were getting into,” commented Ron Hart,
the owner. “We just knew that weekenders coming to the lakes in our rural area
represented an untapped market.”
Today, thousands of visitors flock to Fun-Spot: families, children of all ages, and even
senior citizens who enjoy strolling through the gardens and the arbors. “There’s
something here for everyone,” Gail Hart said with a smile. “Dozens of companies hold
annual company picnics here. We have welcomed class field trips. And we even had
one wedding here at the park!”
“Here’s the funny thing,” Ron chimed in. “We really don’t know why we’ve been so
successful. There is nothing else like Fun-Spot Fun Park in the area. We were just
lucky.” “I think it’s the ambience of the park that has brought so many visitors,” Gail
added. “We provide a ‘total package’ of entertainment. Plus, we try to change our rides
and various attractions from time to time for variety.”
Ron and Gail Hart admitted that making every visitor happy is a priority. “That has
always been our philosophy,” they said. “Like the park’s motto at the entrance reads,
‘We’re here to make you happy!’ And we’ve always been able to deliver on that because
we’ve never allowed ourselves to grow too big too quickly.”
Ron and Gail plan to lower Fun-Spot’s prices in an effort to encourage customers to stay
longer, visit more often, and spend more money during each visit. What type of strategy
are Ron and Gail planning?
A) market penetration
B) market development
C) product development
D) product adaptation
E) diversification
By using ________ to contact potential customers, marketers sell directly to consumers.
A) undercover marketing
B) outbound telephone marketing
C) affinity marketing
D) multi-level marketing
E) ambush marketing
Customers can be grouped and served in various ways based on several factors. These
include all of the following EXCEPT ________ factors.
A) psychographic
B) behavioral
C) technological
D) demographic
E) geographic
Which of the following product mix pricing strategies involves pricing products that
can only be used with the main product?
A) by-product pricing
B) product bundle pricing
C) captive product pricing
D) product line pricing
E) optional product pricing
Iceco Inc., an ice cream manufacturing company, encourages all stakeholders, including
the top management and all employees, to consider individual and community welfare
in their day-to-day decisions. This action undertaken by Iceco reflects ________.
A) environmentalism
B) social responsibility
C) the selling concept
D) partner relationship management
E) marketing myopia
Refer to the scenario below to answer the following question(s).
Kimberly’s Crown sells and designs jewelry. Despite the jewelry’s popularity, products
are available only through a few shopping stores across the country.
When one of the stores complains that the jewelry they’re being given is inferior to the
jewelry Kimberly sells to other stores, Kimberly experiences ________ conflict.
A) horizontal
B) multitiered
C) vertical
D) intensive
E) subjective
Ford and its network of independent franchised dealers is an example of a ________.
A) manufacturer-sponsored retailer franchise system
B) manufacturer-sponsored wholesaler franchise system
C) service-firm-sponsored retailer franchise system
D) service-firm-sponsored equity strategic alliance
E) manufacturer-and-service-sponsored joint venture
While traditional mass media still make up a majority of today’s media mixes,
companies have added digital, mobile, and social media that cost less, target more
effectively, and ________.
A) are quicker to create
B) involve more departments in the company
C) must be chosen carefully, since there are so many options
D) engage consumers more fully
E) are challenging to schedule
TRUSTe, a nonprofit self-regulatory organization, works with other companies to audit
online privacy and security measures. It lends its TRUSTe privacy seal to all the
following communication channels that meet its privacy and security standards
EXCEPT ________.
A) mobile apps
B) e-mail marketing
C) telemarketing
D) Web sites
E) social media
Which of the following abilities would LEAST likely be measured when recruiting and
testing applicants for a sales position?
A) sales aptitude
B) work style
C) accounting skills
D) motivation
E) relationship skills
Which of the following would be classified as bait-and-switch advertising?
A) advertising a cheaper brand but making only a more expensive one available to
customers
B) advertising the advantages of a product by comparing it to its competitors
C) providing free samples of a product
D) providing discount coupons with a product
E) favoring certain customers over others through trade promotions
List four types of discounts.
Explain the major benefits of direct marketing for customers and for sellers.
What is the goal of training salespeople?
Briefly describe the presentation stage of the selling process.
Explain how Whole Foods is able to compete against Walmart.
Many studies reveal that instead of “Americanizing” the world’s cultures, the cultural
exchange between America and other countries goes two ways. Give two examples of
how America has been influenced culturally by foreign products or services.
What is a product?
Briefly describe occasion segmentation.
Briefly explain the functions of a customer insights team.
Define customer equity and explain how a company can increase it.
Briefly compare and contrast the concepts of needs, wants, and demands and provide
examples to illustrate your answer. How do these three concepts relate to marketing
practices?
Explain the concept of integrated marketing communications (IMC).
What functions do buyers serve in a buying center?
What are the advantages of multichannel distribution systems?
Identify the major advantage of the following traditional forms of direct marketing:
telephone, direct mail, catalog, direct-response television, and kiosk.