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Prices have a direct impact on a firm's bottom line.
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.
In a retailer cooperative, independent retailers band together to set up a jointly owned,
central wholesale operation and conduct joint merchandising and promotion efforts.
Customer perceptions of the product's value set the floor for prices.
Sunset Lawn Service puts most of its resources into value-building marketing
investments. The management at Sunset is practicing customer-value marketing.
The introduction of new technologies is equally beneficial to all industries.
Marketers must increasingly consider the special needs of traditional households
because this segment of the population is growing more rapidly than nontraditional
households.
To overcome price escalation when selling to less-affluent consumers in developing
countries, companies offer their same products at lower prices.
Off-price retailers pay regular wholesale prices for their merchandise but maintain low
prices by accepting lower margins and selling higher volume.
The four marketing management functions are analysis, planning, implementation, and
control.
A SWOT analysis allows a marketer to evaluate the company's overall strengths,
weaknesses, opportunities and threats.
For few companies, the package itself has become an important promotional medium.
While many consumers welcome the convenience that mobile marketing ads offer,
marketers still must be smart about how they engage people on mobile devices.
E-mail can be the ultimate direct marketing tool, as it lets marketers send highly
targeted, tightly personalized, relationship-building messages.
Gatekeepers have formal or informal power to select or approve the final suppliers.
Multibranding offers a way to establish different features that appeal to different
customer segments, lock up more reseller shelf space, and capture a larger market share.
Persuasive advertising aims to build broad demand.
The marketing mix refers to the set of marketing tools the firm uses to implement its
marketing strategy.
Digital and social media are useful primarily for consumer products and services
companies.
Shopper marketing involves focusing the entire marketing process—from product and
brand development to logistics, promotion, and merchandisings—toward turning
shoppers into buyers at the point of sale.
In customer value-based pricing, price is considered along with all other marketing mix
variables before the marketing program is set.
Blair Housewares wants to add new products to its existing line of products. Managers
are correct in believing that the purpose of idea generation is to create a few ideas, and
the purpose of succeeding stages is to increase that number.
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.
Consumers welcome e-mail marketing messages; opportunities to control the messages
they receive are frequently ignored.
When sales of a product drop during the decline stage of the PLC, a company typically
modifies the marketing mix, the product, or the market.
The strongest brands do not engage customers on a deep, emotional level.
A break-even chart shows the total cost and total revenue expected at various sales
volume levels.
The most important objective of reminder advertising is telling the market about a new
product.
A company can create customer delight by meeting customer expectations through
offering good products that do what is promised.
Branding decisions include determining a product price.
The augmented product is the actual product plus the various services and benefits
offered with it, such as a warranty, free delivery, installation, and maintenance.
Reach is a measure of how many times the average person in the target market is
exposed to the message.
Consumers who have no past experience with a product are more likely to judge it by
its price.
Store salespeople and a consumer's friends rarely impact someone's final purchase
decision.
Being able to try a new product is an unimportant stage in the adoption process as the
consumer already has a good idea of the product's value.
Which promotional tool is the most immediate, customized, and interactive?
A) segmented advertising
B) sales promotion
C) direct marketing
D) horizontal diversification
E) public relations
A firm dumping chemical wastes in the local lake is ________.
A) actively resisting social change
B) contributing to organizational anarchy
C) engaging in a "do well by doing good" mission
D) adopting a proactive stance toward the marketing environment
E) contributing to increased pollution
Companies can identify competitors from a(n) ________ point of view by defining
competitors as companies that are trying to satisfy the same customer need or build
relationships with the same customer group.
A) customer
B) blue ocean
C) market
D) myopic
E) industry
Which of the following would be considered predatory pricing?
A) a company that prices its products below cost to get rid of a surplus
B) a company that prices below cost to drive out competitors
C) a company that offers a volume discount
D) a company that offers the suggested retail price on the manufacturer's package
E) a company that offers real-time pricing online
Which of the following is an example of a convenience product?
A) fast food
B) diamond ring
C) furniture
D) life insurance
E) refrigerator
In routine buying, buyers are often the ________, or at least the approvers.
A) monitors
B) influencers
C) gatekeepers
D) deciders
E) primary advertisers
Almost every industry includes firms that specialize in serving target subsegments
called market ________.
A) niches
B) mavens
C) baskets
D) indicators
E) mixes
A(n) ________ consists of people and procedures dedicated to assessing information
needs, developing the needed information, and helping decision makers use the
information to generate and validate actionable customer and market insights.
A) enterprise planning system
B) enterprise information system
C) marketing information system
D) corporate performance management system
E) geographic information system
A technician in a hospital told the chief dentist, Dr. Albrecht, that the hospital should
purchase equipment that would sterilize the dentists' tools without using any water
because water tends to affect the durability of the tools over time. Dr. Albrecht located
some articles on chemical sterilizers and gathered more information on how they
worked. After talking to salespeople, Dr. Albrecht finally placed his order for the
machine. In this instance, Dr. Albrecht played the role of a(n) ________.
A) monitor
B) decider
C) agent
D) influencer
E) gatekeeper
Which of the following terms refers to customers who make repeat purchases and tell
others about their positive experiences with a product or service?
A) barnacles
B) customer evangelists
C) butterflies
D) surrogate customers
E) market mavens
SparkClean is a company that specializes in producing cleaning products for
automobiles. In order to promote its products, SparkClean sends a complimentary
sample of its products to auto enthusiasts. Which form of marketing is SparkClean
involved in?
A) online marketing
B) viral marketing
C) telemarketing
D) kiosk marketing
E) direct-mail marketing
The real value of marketing information lies in how it is used ________.
A) in determining selling prices for products
B) in analyzing budgets
C) in creating advertising campaigns
D) in the customer insights that it provides
E) in introducing a new product to the marketplace
The fact that people are dropping out of organized religion doesn't mean that they are
abandoning their faith. Some futurists have noted a renewed interest in ________,
perhaps as a part of a broader search for a new inner purpose.
A) interacting with nature
B) the fine arts
C) charitable giving
D) spirituality
E) materialism
After the purchase of a product, consumers will be either satisfied or dissatisfied and
engage in ________.
A) consumer capitalism
B) alternative evaluation
C) postpurchase behavior
D) consumer ethnocentrism
E) information searches
Under ________, the market consists of many buyers and sellers trading in a uniform
commodity.
A) pure competition
B) monopolistic competition
C) oligopolistic competition
D) a pure monopoly
E) the dominant firm model
________ is the product life cycle period when sales growth slows because the product
has achieved acceptance. Profits level off because marketing costs increase in the face
of competition.
A) Decline
B) Maturity
C) Product development
D) Introduction
E) Growth
Apex describes its clothing line as, "Elegance and attitude, now as one. For the daily
office-goer, who takes pride in what he or she wears everyday, Apex makes sure you get
noticed." This exemplifies a ________.
A) statement of purpose
B) vision statement
C) positioning statement
D) general need description
E) product specification
________ ventures consist of one company joining forces with foreign investors to
create a local business in which they share ownership and control.
A) Joint ownership
B) Licensing
C) Contract manufacturing
D) Management contracting
E) Indirect exporting
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
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
Proposals related to ________ include promoting the use of sustainable ingredients,
recycling and reducing solid wastes, and managing energy consumption.
A) the right to be informed
B) consumer protection
C) preserving the world for future consumption
D) quality of life
E) the right to charge any price for the product
________ is a new product development approach in which one company department
works to complete its stage of the process before passing the new product along to the
next department and stage.
A) Team-based product development
B) Simultaneous product development
C) Sequential product development
D) Horizontal integration
E) Vertical integration
________ refers to a measure of the sensitivity of demand to changes in price.
A) Price elasticity
B) A demand curve
C) Price-value equation
D) Marginal utility
E) Income elasticity of demand
While blogs are a fundamentally a consumer-controlled medium, marketers can
________.
A) directly contact customers through them
B) use insights from them to improve their marketing programs
C) offer special promotions to new customers
D) retrieve research data from clicks in them
E) provide content
A(n) ________ chooses a strategy consistent with the intended product positioning. To
gain market leadership requires correct decisions from the beginning.
A) brand evangelist
B) market pioneer
C) early adopter
D) laggard
E) harvester
A ________ VMS integrates successive stages of production and distribution under
single ownership.
A) contractual
B) contingency
C) corporate
D) conventional
E) communal
Which of the following statements is true of the production concept?
A) It considers customer focus and value to be the paths to sales and profits.
B) It follows the customer-centered sense-and-respond philosophy.
C) It takes an outside-in perspective.
D) It calls for sustainable marketing.
E) It leads to companies focusing too narrowly on their own operations.
A marketing channel that consists of one or more intermediaries is known as a(n)
________ marketing channel.
A) cyclic
B) upstream
C) looped
D) direct
E) indirect
Product attributes include all of the following EXCEPT ________.
A) style
B) design
C) price
D) features
E) quality
Which of the following is true about the sales force of a company?
A) Salespeople represent customers to the company and manage the buyer-seller
relationship.
B) Salespeople represent workers' interests to upper management.
C) The primary responsibility of a sales force is to formulate operational strategies.
D) The sales force is responsible for product development and product strategy.
E) The sales force oversees the auditing process and recovers money from defaulting
customers.
Marketers target Generation Z because they ________.
A) listen to their parents and follow their examples
B) dislike technology
C) spend an estimated $44 billion annually of their own money
D) prefer shopping in brick-and-mortar stores with actual products
E) have long attention spans and are easily targeted
How do marketers respond to critics' accusations of planned obsolescence?
Give an example of a slice-of-life message execution style.
An industry often contains "good" competitors and "bad" competitors. Define each term
and discuss scenarios with both "good" and "bad" competitors. How might "good"
competitors choose to react to "bad" competition?
How do successful companies recruit and train their salespeople? What does an
effective training program teach salespeople?
Discuss the differences between the three major sales force structures. What are the
potential benefits of each structure?
The three types of shopping centers are regional shopping centers, community shopping
centers, and neighborhood shopping centers/strip malls. Describe how they are different
from each other.
Briefly explain local and individual marketing.
How can a firm benefit from participating in a horizontal marketing system?
The potential sales, costs, and profit projections are being determined for a new product
idea at Art for Kids. Which of the following stages of the new product development
process does this illustrate?
What are the major trends in today's natural environment? How do these trends affect
companies?
Provide an example of a company that has used an imaginative distribution system to
gain a competitive advantage.
How can firms that use new direct marketing technologies avoid backlash from
consumers who view such marketing as an invasion of privacy?
Give an example of a cultural shift that may impact the marketing of products or
services.
Why should marketers set up systems that encourage customers to complain about
products?
Under what conditions is a company most likely to use a product sales force structure?
Retail stores can be classified in terms of several characteristics. Name four of them.
