Symmonds Inc., a company manufacturing breakfast cereals, has extended its special
Crispo cereal brand into a full line of breakfast cereals plus protein shakes, fruit and
sandwich spreads, butter, and doughnuts. This is an example of ________.
A) line extension
B) brand extension
C) licensing
D) co-branding
E) cannibalization
Greater consumer control means that companies can no longer rely on ________.
A) promoting brand-consumer interaction
B) marketing by intrusion
C) creating market offerings and messages that involve consumers
D) developing marketing concepts with an outside-in perspective
E) marketing by attraction
At the beginning of each year, the management of Dee Decor states the exact amount a
salesperson should sell. This specific sales target is also known as a ________.
A) sales lead
B) prospect
C) bill of sale
D) channel length
E) sales quota
In the context of behavioral segmentation, markets segmented by ________ can be
categorized into light, medium, and heavy product users.
A) benefits sought
B) loyalty status
C) usage rate
D) user status
E) occasion
Which of the following terms refers to sellers being preoccupied with their own
products and losing sight of underlying consumer needs?
A) vendor lock-in
B) social loafing
C) value proposition
D) marketing myopia
E) conspicuous consumption
Which of the following wholesaler’s channel functions is demonstrated when a
wholesaler holds inventories and thereby reduces inventory holding costs and risks of
suppliers and customers?
A) financing
B) transporting
C) buying and assortment building
D) warehousing
E) bulk breaking
________ includes sales presentations, trade shows, and incentive programs.
A) Direct and digital marketing
B) Sales promotion
C) Personal selling
D) Public relations
E) Advertising
Whereas the mass marketer achieves ________, the nicher achieves ________.
A) low margins; low volume
B) low volume; high margins
C) high volume; high margins
D) high volume; low margins
E) high margins; high volume
An example of a company exhibiting a blue ocean strategy is ________.
A) Amazon’s online shopping convenience
B) a Starbucks opening in the same vicinity of an independent coffee house
C) Nike’s brand image of the “swoosh”
D) Whirlpool’s full line of medium-priced, energy-saving appliances
E) the first digital tablet iPad released by Apple
Style simply describes the ________ of a product.
A) quality
B) appearance
C) utility
D) durability
E) long-term benefits
________ requires finding the major advantages people look for in a product class, the
kinds of people who look for each positive aspect of a product, and the major brands
that deliver it.
A) Gender segmentation
B) Psychographic segmentation
C) Benefit segmentation
D) Geographic segmentation
E) Age and life-cycle segmentation
Which is NOT one of the four orientations a company may have?
A) customer
B) product
C) competitor
D) market
E) cost
Which of the following is true with regard to services?
A) Services refer to purely tangible products.
B) Services are a form of product that consists of activities, benefits, or satisfactions
offered for sale.
C) Services can be stored for later use.
D) Services can be easily separated from their providers.
E) Services are tangible product offerings whose quality can be easily measured.
Which of the following is a geographic factor that a company should consider before
deciding to enter into a new country?
A) climate
B) population size
C) GDP size and growth
D) government bureaucracy
E) business norms and approaches
Kellogg’s begins to sell its cereals in new markets after conducting extensive marketing
research. After the cereal begins to appear in these new markets, the company increases
its promotion expenditure to counteract competitive responses. Kellogg’s is in the
________ stage of the product life cycle.
A) introduction
B) growth
C) maturity
D) decline
E) adoption
Critics charge that a company’s marketing practices can harm other companies and
reduce competition. One of the problems critics identified is ________.
A) pollution
B) barriers to entry
C) unfair discrimination
D) bait-and-switch advertising
E) fair packaging and labeling
A company’s total marketing communications mix consists of a specific blend of
advertising, sales promotion, public relations, personal selling, and direct-marketing
tools that the company uses to communicate customer value and build customer
relationships. Which of the following terms best describes this set of communications
tools?
A) the product mix
B) product line filling
C) the promotion mix
D) the price mix
E) horizontal diversification
Using a(n) ________ strategy, the producer directs its marketing activities toward final
consumers to induce them to buy the product.
A) pull
B) blitz
C) push
D) buzz
E) pulse
A company can manage its international marketing in all of the following ways
EXCEPT ________.
A) becoming a global organization
B) organizing an export department
C) creating an international division
D) advertising internationally
E) shipping its goods internationally
Which of the following statements is true regarding the old mass-media
communications model?
A) Mass-media costs are decreasing.
B) Mass-media audiences are increasing.
C) Many viewers are gaining control of message exposure through DVRs and video
streaming.
D) Ad clutter is decreasing.
E) Internet ad spending has stagnated and more marketers are shifting toward TV
advertising.
Which of the following promotion categories is most likely to use the promotion tools
of press releases, sponsorships, events, and Web pages?
A) sales promotion
B) direct and digital marketing
C) advertising
D) public relations
E) horizontal diversification
Critics argue that large marketing companies use patents and heavy promotion spending
to ________.
A) acquire smaller companies
B) bear the social costs of their operations
C) bar new companies from entering an industry
D) achieve economies of scale
E) offset cultural pollution
A ________ is a wholesaler-sponsored group of independent retailers that engages in
group buying and common merchandising.
A) voluntary chain
B) retailer cooperative
C) franchise
D) wholesale club
E) warehouse club
Advertising media must be adapted internationally. Which of the following is NOT true
about the need for communication adaptation?
A) Advertising time is limited in Europe.
B) Mobile phone ads are widely accepted in Europe and Asia.
C) Advertisers must buy advertising time far in advance.
D) The same advertisement can be presented in all countries in Europe.
E) Magazines are important in Italy, but not in Austria.
Refer to the scenario below to answer the following question(s).
Essential-Beauty is a rapidly growing firm that manufactures women’s makeup,
perfumes, and nail-care products. The company has established itself as a high-end
cosmetic product brand available at most national drug stores. In the past, almost all of
the advertising for Essential-Beauty has been in women’s fashion magazines.
The firm is now launching a new line of skin care products, ranging from facial
cleansers to body lotion. These products are designed to be marketed to a broader
audience, so the marketing team is exploring the effectiveness of different promotional
mixes.
Essential-Beauty considers one of its most important competitors to be Look-Lovely,
another marketer of high-end makeup and skin care products sold in drug stores. Based
on this, it is most accurate to say that Look-Lovely and Essential-Beauty are both
________.
A) niche marketers
B) in the same strategic group
C) distant competitors
D) overall cost leaders
E) market followers
Which of the following are the three characteristics that an advertising appeal should
have?
A) engaging, informative, and stylish
B) trendy, compelling, and appealing
C) meaningful, believable, and distinctive
D) unique, emotional, and entertaining
E) humorous, memorable, and interesting
Which of the following major decisions should a company make immediately after it
decides to operate internationally?
A) deciding which markets to enter
B) deciding how to enter the market
C) deciding on the global marketing organization
D) deciding on the global marketing program
E) deciding on the global communication program
Product mix ________ refers to the total number of items a company carries within its
product lines.
A) length
B) depth
C) height
D) width
E) consistency
Ravenshaw Corp. assigns its sales and marketing people to specific countries, regions,
and districts. Ravenshaw Corp. is most likely an example of a ________.
A) geographic organization
B) product organization
C) functional organization
D) niche marketer
E) mass marketer
In the context of the AIO dimensions for measuring consumers’ lifestyles, “A” stands
for ________.
A) activities
B) achievements
C) admirations
D) attitudes
E) associations
A decision to position the product on high-performance quality will mean that the
________.
A) seller must charge a higher price to cover higher costs
B) seller must charge a lower price to attract more customers
C) producer must step down production
D) marketer must boost derived demand in the market
E) break-even volume will be fairly low
________ logistics refers to moving products and materials from the suppliers to the
factory.
A) Outbound
B) Diverse
C) Inbound
D) Reverse
E) Customer-centered
Companies that have been in existence for some time often lose the marketing creativity
and passion that they had at the start. They often need to refresh their marketing
strategies and try new approaches, known as ________.
A) multi-level marketing
B) formulated marketing
C) ambush marketing
D) intrapreneurial marketing
E) affinity marketing
Ocean Spray sells its air fresheners only through Ray’s Drugs. This is an example of
________ distribution.
A) exclusive
B) selective
C) intensive
D) indirect
E) corporate
Which of the following is most likely an objective of informative advertising?
A) build brand preference
B) change customer perceptions of brand value
C) encourage customers to switch brands
D) suggest new uses for a product
E) keep the brand in customer minds during off-seasons