The microenvironment consists of larger societal forces that affect a company, such as
demographic, economic, political, and cultural forces.
Market development involves company growth by identifying and developing new
market segments for current company products.
Individual marketing is also known as one-to-one marketing, mass customization, and
markets-of-one marketing.
Direct and digital marketing involve targeting broad segments of customers.
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.
According to Maslow’s hierarchy of needs theory, when the most important need is
satisfied, it will cease to be a motivator, and the person will then try to satisfy the next
most important need.
According to the overall cost leadership competitive strategy, the company works hard
to achieve the lowest production and distribution costs.
The exchange of U.S. wheat for Russian vodka would be an example of barter.
It is more efficient for a company to keep the marketing channel functions—such as
information gathering, promotion, contacting customers and matching their needs,
negotiation, and physical distribution—in-house as they are most skilled at those
functions.
When The Candy Store sets a low initial price in order to get its “foot in the door” and
to quickly attract a large number of buyers, the company is using market-skimming
pricing.
The goal of a “blue ocean strategy” is to make competition irrelevant.
The affordable method involves setting promotion budgets to match competitors’
outlays.
Local publics include consumer organizations, environmental groups, minority groups,
and others.
Abel is considering whether or not to get an e-reader. He has read online reviews of
three different kinds of readers and has talked with two friends who own e-readers.
Abel is at the awareness stage of the new product adoption process.
Online flash sales are used to create buying urgency and make buyers feel lucky to have
gotten in on the deal.
The buying center is a fixed and formally identified unit within the buying organization.
Customer touch points include customer purchases, satisfaction surveys, credit and
payment interactions, sales force contacts, and service and support calls.
The American marketing system never has been accused of poorly serving
disadvantaged consumers.
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.
Secondary beliefs and values are less open to change than core beliefs and values.
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.
The goal of competitive marketing intelligence is to evaluate and prevent high
employee turnover.
In addition to its customary services, On the Spot, a moving company, also sells the
boxes and padding that are used when moving household furniture. This is an example
of customer-segmented pricing.
Sales force management refers to hiring and training the sales force.
Telemarketing has ceased to be an important tool for most B-to-B marketers owing to
the federal government’s Do Not Call Registry.
Customer-managed relationships are marketing relationships that are controlled by
customers; therefore, they are of no significance to marketers.
Although products that remain in the maturity stage of the PLC seem unchanged, the
most successful ones actually evolve to meet changing consumer needs.
Fast Food, Inc. views marketing as the process of finding and retaining profitable
customers by providing them with the food they want. Fast Food, Inc. practices societal
marketing.
In segmented pricing, the difference in prices is based on differences in costs.
The integrated marketing concept ties together all of the company’s messages and
images.
Digital and social media are useful primarily for consumer products and services
companies.
A product idea is an idea for a possible product that a company can offer the market.
At Price & Wallace Inc., a pharmaceuticals company, members of the sales force and
marketing department tend to have disagreements when things go wrong with a
customer. The marketers blame the salespeople for poorly executing their strategies,
while the salespeople blame the marketers for being out of touch with customers.
Which of the following steps should upper management at Price & Wallace take to help
bring the sales and marketing functions closer together?
A) establish a customer sales force structure and make sure that sales quotas are easily
achievable
B) establish a complex sales force structure
C) emphasize traditional methods of selling
D) adopt a sales force automation system and implement team selling
E) appoint a high-level marketing executive to oversee both marketing and sales
Which of the following is a major element of developing an advertising strategy?
A) selecting advertising media
B) using sophisticated statistical models
C) setting advertising objectives
D) evaluating advertising campaigns
E) setting the advertising budget
According to the five-step model of the marketing process, which of the following is
the final step in creating value for customers?
A) designing a customer-driven marketing strategy
B) understanding the marketplace and customer needs
C) constructing an integrated marketing program that delivers superior value
D) building profitable relationships and creating customer delight
E) capturing value from customers to create profit and customer equity
The ________ environment consists of laws, government agencies, and pressure groups
that influence or limit various organizations and individuals in a given society.
A) socio-legal
B) cultural
C) political
D) technological
E) economic
Even when competing offers look the same, buyers may perceive a difference based on
________ differentiation.
A) image
B) people
C) price
D) channel
E) services
Today’s consumers do not need to rely on marketer-supplied information about products
and services because they can use ________ to seek out a wealth of information.
A) push strategies
B) direct and digital marketing
C) the Internet
D) personal selling
E) public relations
Today, most companies are adopting the concept of ________, which carefully
combines and coordinates the company’s many communication channels to deliver a
clear, consistent, and compelling message about the organization and its brands.
A) integrated marketing communications
B) pull strategy
C) vertical diversification
D) nonpersonal communication channels
E) buzz marketing
A(n) ________ community is a group of nations organized to work toward common
goals in the regulation of international trade.
A) joint venture
B) strategic marketing
C) economic
D) joint-stock
E) multilateral
The ________ organization is the most common type of contractual relationship.
A) franchise
B) horizontal
C) conventional
D) multi-national
E) entrepreneurial
Which of the following types of research would be best suited for understanding the
attitudes of consumers who buy a particular brand of soft drink?
A) internal research
B) descriptive research
C) causal research
D) exploratory research
E) demographic research
Which of the following best describes a similarity between Costco and Walmart?
A) Both are warehouse clubs.
B) Both target the same affluent market.
C) Both are specialty stores.
D) Both use everyday low pricing.
E) Both are examples of merchant wholesalers.
Renee’s, a company selling winter clothing in Chicago, ran a preseason promotion on
some of its fur jackets, offering cash refunds if the snowfall in the customer’s market
area turned out to be below average. This exemplifies ________.
A) puffery
B) satisficing
C) prospecting
D) a price pack
E) a rebate
Foreign businesses in India appear to receive unusually close scrutiny and must meet
special regulations, aimed at protecting local businesses. This includes nontariff trade
barriers. This reflects that a country’s ________ should be carefully considered before
doing business in that country.
A) political-legal environment
B) industrial structure
C) cultural norms
D) natural resources
E) income distribution
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.”
Which of the following is true with regard to a SWOT analysis?
A) It classifies SBUs into four distinct categories.
B) It measures customer response to a new product.
C) It evaluates the company’s overall strengths.
D) It evaluates the growth potential of a market segment.
E) It ignores the threats faced by a company while assessing its situation in the market.
Which of the following is true with regard to value-added pricing?
A) Companies that practice value-added pricing typically match the competition by
cutting prices.
B) Companies practicing value-added pricing differentiate their offers by attaching
value-added features to offerings that, in turn, justify higher prices.
C) The intrinsic value of products sold by companies practicing value-added pricing is
far less than their actual selling price.
D) Companies practicing value-added pricing primarily rely on cost differentiation.
E) Value-added pricing is the most suitable pricing strategy in pure monopolies.
Touchscreen kiosks, handheld shopping assistants, interactive dressing-room mirrors
and virtual sales associates are all examples of how retailers use technology to
________.
A) maintain inventory costs
B) send information between stores
C) meet consumers’ expectations
D) produce more accurate forecasts
E) interact with suppliers
Following the change in consumer values and consumption patterns after the Great
Recession, marketers have changed their marketing strategies to emphasize the
________ of their products.
A) image
B) value
C) durability
D) safety
E) uniqueness
The Pure Drug Company produces insulin, a product with a very stable demand. Even
though the price changed several times in the past two years, the demand for Pure
Drug’s insulin remained relatively unaffected. In this instance, the demand for insulin is
representative of ________ demand.
A) latent
B) negative
C) inelastic
D) derived
E) composite
Which of the following is a component of a firm’s microenvironment?
A) customer demographics
B) economic recessions
C) population shifts
D) marketing intermediaries
E) technological changes
A(n) ________ is an individual who represents a company to customers by prospecting,
communicating, selling, servicing, information gathering, and/or relationship building.
A) auditor
B) trainer
C) salesperson
D) manager
E) human resource personnel
Jolene’s firm markets preplanning services for a mortician. She finds that most of her
target market avoids discussing future funeral needs. She convinces people to invest in
the firm’s services through her large-scale promotional efforts. Jolene’s firm most likely
practices the ________.
A) production concept
B) marketing concept
C) selling concept
D) product concept
E) societal marketing concept
In the case of services, captive product pricing is called ________ pricing.
A) by-product
B) optional product
C) two-part
D) bundle
E) segmented
In which of the following would the buyer reorder a product without any modifications?
A) reverse auction
B) solution selling
C) new task
D) straight rebuy
E) modified rebuy
Which of the following is true about the demand curve?
A) A demand curve indicates the drop in the average per-unit production cost that
comes with accumulated production experience.
B) A demand curve indicates the cost per unit of output in the long run.
C) A demand curve indicates the cost per unit of output in the short run.
D) In a monopoly, the demand curve does not indicate the total market demand
resulting from different prices.
E) A demand curve shows the number of units the market will buy in a given time
period at different prices that might be charged.
Maslow’s theory is that ________ can be arranged in a hierarchy.
A) marketing stimuli
B) personal beliefs
C) perceptions
D) human needs
E) decisions
Which of the following is true of conventional distribution channels?
A) Channel members have complete control over each other.
B) Channel members seek to maximize their own profits.
C) Channel conflict is governed by formal mechanisms.
D) Channel members are assigned roles according to a clearly defined framework.
E) Channel members work exclusively for the good of the organization.
What is usually the first step in cost-based pricing?
A) testing the product concept with potential customers
B) determining the marketing mix strategy
C) setting a price that covers costs plus a target profit
D) designing a good product
E) adding up the costs of making the product
________ include banks, credit companies, insurance companies, and other businesses
that help insure against the risks associated with the buying and selling of goods.
A) Financial intermediaries
B) Physical distribution firms
C) Resellers
D) Marketing services agencies
E) Wholesalers
For which of the following products would the intensive distribution strategy most
likely be used?
A) high-end cameras
B) luxury cars
C) lawn mowers
D) soft drinks
E) furniture
Which of the following is true of contract manufacturing?
A) It provides a chance to start faster but with more risks.
B) It involves decreased control over the manufacturing process.
C) It leads to an increase in potential profits on manufacturing.
D) It is the simplest way to enter a foreign market.
E) It involves entering a foreign market by exporting surplus products.
Discuss two ways a market challenger can best attack the chosen competitor and
achieve its strategic objectives. Explain when a challenger should use these attacks and
provide examples of companies that have used these methods.
Define marketing planning. What are the contents of a marketing plan?
Why are printed catalogs still thriving in the face of the growing popularity of
Web-based catalogs?
Describe the four major steps in media selection.
Discuss the percentage-of-sales method used for setting the total budget for advertising.
Explain the impact of the baby boomers, Generation Xers, Millennials, and Generation
Zers on today’s marketing strategies.
“The buying center concept presents a major marketing challenge.” What does a
business marketer need to learn in order to deal with the challenge effectively?
Explain the different segmentation variables used in segmenting consumer markets.
Explain the difference between a consumer product and an industrial product. Include
an example.
How might a consumer view a price cut?
Compare and contrast the two common principles that can be used to guide companies
and marketing managers on issues of ethics and social responsibility.
How do influencers contribute to the purchase decision process?
What are the different steps in the selling process? Briefly describe each step.
What are the different internal factors that affect a firm’s pricing decisions?
Explain how a market follower can gain advantage from a market leader.