Marketing success requires building relationships with other company departments,
suppliers, marketing intermediaries, competitors, various publics, and customers, which
combine to make up the company’s value delivery network.
Superstores are much larger than regular supermarkets and offer a large assortment of
routinely purchased food products, nonfood items, and services.
Multichannel marketing occurs when a single firm sets up two or more marketing
channels to reach one or more customer segments.
The shift toward digital communication allows companies to keep control of message
exposure.
Integrated marketing communications calls for recognizing all communications
channels where the customer may encounter the company and its brands.
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.
When competitors use differentiated marketing to focus on the customer’s needs, a firm
should use undifferentiated marketing to compete with them.
Salespeople are only evaluated on the number of sales they close within a certain time
frame.
A competitive analysis involves first identifying and assessing competitors and then
selecting which competitors to attack or avoid.
New World Food Supplements continuously seeks real product and marketing
improvements for its line of vitamin and protein supplements. This information
indicates that New World is involved in consumer-oriented marketing.
Retailers first must position themselves in a market and then decide how they will
define the target customers in these markets.
Mass marketers can expect consumers to distinguish between commercial message
sources to maintain a clear image of a company and its brands.
Subcultures consist only of religious groups.
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.
Neuromarketing involves measuring brain activity to learn how consumers feel and
respond.
Pricing strategies tend to change and evolve as the average product passes through its
life cycle.
Product quality is harder to define and judge than service quality.
Formulated marketing focuses on the entrepreneurial aspects of marketing.
Social selling emphasizes personal contact between the company and its customers.
Marketing management can control environmental forces. A reactive approach is,
therefore, the most beneficial approach to the marketing environment.
Electronic data interchange is the digital exchange of data between organizations, which
primarily is transmitted via the Internet.
Sense-of-mission marketing means that the company should define its mission in broad
social terms rather than narrow product terms.
Direct marketing includes catalogs, direct-response TV, kiosks, the Internet, and mobile
marketing.
A product’s position is the place it occupies relative to competitors’ products in
consumers’ minds.
Harvesting the product involves reducing various costs such as maintenance, R&D, and
advertising to increase profits.
The demographic environment is of major interest to marketers because it involves
people, and people make up markets.
Marketing channel management calls for selecting, managing, and motivating
individual channel members and evaluating their performance over time.
Societal marketing calls for meeting the present needs of consumers and businesses
while also preserving or enhancing the ability of future generations to meet their needs.
Direct and digital marketing includes catalogs, e-mail, direct mail, social media, and
mobile marketing.
The business analysis stage represents the first large jump in financial investment in the
new product development process.
Encoding is the process by which the receiver assigns meaning to symbols.
Business markets buy goods and services for further processing or for use in their
production processes.
People’s tastes in food, clothes, recreation, and even furniture remain unchanged as they
age.
A cell phone maker customized its cell phones for the Asian market by raising the ring
volume so that phones could be heard on crowded streets. This is an example of product
invention.
Blogs can be used to appeal to specific special-interest groups, about almost any topic.
Most companies prefer to compete against strong competitors.
Sales promotion consists of long-term incentives to encourage the purchase of a product
or service.
Kevin is a salesperson working for a company that manufactures gardening tools. He is
involved in door-to-door sales and travels every day to call on customers. In his
company, Kevin is most likely a part of the ________.
A) top management
B) inside sales force
C) product designing team
D) customer support team
E) outside sales force
The buying decision process starts with ________, in which the buyer spots a problem.
A) need recognition
B) information search
C) impulse purchases
D) buyer’s remorse
E) alternative evaluation
An ad for Maybelline age-minimizing makeup in Ladies’ Home Journal magazine
featured actress Gigi Hadid and offered readers a $2-off coupon when they tried the
new makeup. In the context of the communication model, measuring which of the
following would be the best way for the source to measure feedback?
A) the number of subscribers to Ladies’ Home Journal
B) the number of people who make up the target market
C) the number of people who redeem the coupon
D) the number of people who have purchased Maybelline products in the past
E) the number of people to whom Gigi Hadid is an appealing spokesperson
When sellers focus on existing needs and lose sight of underlying customer wants, they
suffer from marketing myopia.
Who can pass along information about new concepts or techniques to use in new
products?
A) competitors
B) salespeople
C) customers
D) suppliers
E) distribution channels
Dips in the economy and the instant price comparisons made possible by the Internet
have contributed to ________.
A) decreased consumer price sensitivity
B) increased consumer price sensitivity
C) a less direct relationship between supply and demand
D) low brand equity for luxury goods
E) decreased brand loyalty
A company’s broad mission leads to ________.
A) increasing profits and more customers
B) increasing sales and decreasing costs
C) a higher share price
D) a hierarchy of objectives, including business objective and marketing objectives
E) increased market share and increasing profitability
The fixed cost in manufacturing a single LED monitor is $40 and the variable cost is
$12. If the company expects to manufacture 5,000 monitors, the total costs would be
________.
A) $60,000
B) $200,000
C) $260,000
D) $420,000
E) $500,000
Vidal Sassoon shampoos contain different amounts of scent according to the country in
which they are sold. This is an example of ________.
A) straight product extension
B) product invention
C) product adaptation
D) communication adaptation
E) standardized global marketing
Nonpersonal communication channels include major media, ________, and events.
A) sales calls
B) atmospheres
C) buzz marketing
D) word-of-mouth influence
E) phone calls
Which of the following is most likely true with regard to people’s views of
organizations in contemporary America?
A) In the American workplace, there has been an overall increase in organizational
loyalty.
B) Most Americans are confident in their employers and are unlikely to switch jobs as
frequently as in the past.
C) The past two decades have seen a sharp decrease in confidence in and loyalty toward
America’s business organizations.
D) Most U.S. workers view work as a source of personal satisfaction and organizational
pride.
E) In the last decade, corporate scandals and layoffs had little impact on people’s
confidence in U.S. firms.
Of the various digital marketing categories, ________ is the fastest-growing category.
A) blogs
B) e-mail
C) social media
D) mobile
E) brand Web sites
By 2060, ________ will be an estimated 14 percent of the U.S. population.
A) African Americans
B) Asians
C) Hispanics
D) Native Americans
E) Native Hawaiians
When a seller requires its dealers to abstain from handling competitors’ products, it is
called ________.
A) subjective distribution
B) exclusive dealing
C) selective distribution
D) exclusive pricing
E) disintermediation
Bias against bids made by American companies is an example of a(n) ________.
A) quota
B) tariff
C) boycott
D) nontariff trade barrier
E) exchange control
Almost all major purchases result in ________, or discomfort caused by postpurchase
conflict.
A) need recognition
B) cognitive dissonance
C) consumer ethnocentrism
D) conspicuous consumption
E) consumer capitalism
________ consumers are the most affluent U.S. demographic segment and are expected
to have an annual buying power approaching $1 trillion by 2017.
A) Hispanic American
B) African American
C) Asian American
D) Baby boomers
E) Generation X
In which step of the communication process does the marketing communicator need to
know the buyer-readiness stage of the target audience?
A) designing the message
B) choosing the media through which to send the message
C) determining communication objectives
D) collecting feedback
E) selecting the message source
Refer to the scenario below to answer the following question(s).
Ruben Delgado was making wooden pens and pencils, which had unique engravings, as
a hobby until Simon Yoder recognized Ruben’s talent. Simon immediately ordered 250
pens and pencils of various styles to be displayed in his shop’s showcase. Within three
months, the wooden pencils were a hit with all students! Ruben Delgado had never
thought of marketing his talent, but Simon’s enthusiasm and the recent sales were
enough to change his mind.
With limited resources, Ruben contacted three additional specialty shops within 100
miles that were situated near schools. He explained his manufacturing processes and
engraving options to each. All three shop owners placed a trial order. Within two
months, just prior to the holiday season, each shop owner placed an additional order.
Ruben was ecstatic! “I figured business would slow down after that,” Ruben stated, “but
in February I was contacted by Elmore Distributors. At that point, I had to make a huge
decision about how far I wanted to go with this business.”
Elmore Distributors provides products for school fundraisers in a seven-state area.
Ruben was offered a two-year contract and immediate inclusion in Elmore’s
promotional flyer. Ruben Delgado accepted the offer and, along with it, the
responsibility to produce thousands of wooden pens and pencils. “I had to get a grip on
the magnitude of this project,” Ruben added. He decided to place his major focus on the
large contract with Elmore. However, to avoid placing his total emphasis with one
customer, Ruben continued nurturing his four previously established accounts without
targeting any additional customers.
“At this point, I had set up an assembly line in a rented building,” Ruben explained. “I
had to hire three full-time employees to work the line while I managed the customer
orders and purchased materials.” Ruben paused. “But I can’t take the Elmore project for
granted. It might not always be there. I’ll have to have a good alternate plan if that day
comes.”
In the scenario, Ruben has segmented his market based on ________.
A) geography
B) benefits sought
C) occasion
D) degree of loyalty
E) demographics
Which of the following is NOT something a company must determine when analyzing
its current business portfolio?
A) which businesses should receive more investment
B) which businesses should receive less investment
C) which businesses should receive no investment
D) which businesses should be sold or closed
E) which businesses shape the future portfolio
In order to avoid shortsightedness, today marketers are moving toward viewing
communications as managing the ________.
A) organizational culture
B) nonpersonal communication channels
C) word-of-mouth influence
D) ongoing customer relationships with the company
E) product life cycle
A label can identify, promote, and ________ the product.
A) sell
B) assemble
C) package
D) brand
E) describe
Midnight Magic, a perfume manufacturing company, plans to release a new fragrance
during the holiday season at $99 per bottle. The company intends to bring the price
down to $49 within six months of its release to attract buyers who couldn’t afford the
initial price. Which of the following pricing strategies is Midnight Magic using?
A) market-penetration pricing
B) market-skimming pricing
C) competitive pricing
D) cost-plus pricing
E) product-line pricing
Macy’s department stores carry a wide range of product lines, including clothing,
jewelry, kitchenware, and home furnishings. Macy’s typically charges a relatively high
markup, but also holds frequent sales and price promotions, in particular offering
discounts to customers who use a Macy’s credit card. Macy’s uses ________.
A) self-service retailing
B) experiential retailing
C) high-low pricing
D) everyday low pricing
E) retail convergence
BRICS countries are examples of ________ economies.
A) raw material exporting
B) industrializing or emerging
C) subsistence
D) industrial
E) totalitarian
Erica wants to replace her old washing machine with a new one. In order to get the
maximum value for her money, she plans to spend substantial time and effort in
gathering information and making product comparisons before making the actual
purchase. In this instance, Erica is planning to buy a(n) ________ product.
A) convenience
B) unsought
C) specialty
D) shopping
E) exclusive
Modern strategic planning ________.
A) exclusively consists of a company’s short-term goals
B) is decentralized
C) does not involve cross-functional teams
D) does not take the overall mission of the company into consideration
E) is highly centralized
Opinion leaders are also referred to as ________.
A) leading adopters
B) lower uppers
C) innovators
D) lagging adopters
E) surrogate consumers
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.
In this scenario, which of the following is an example of primary data?
A) list of corporations obtained from the Chamber of Commerce
B) information obtained from competitors’ pamphlets
C) data obtained from the surveys conducted in the 75 companies
D) information obtained from the Internet about current market trends
E) data obtained from competitors’ Web sites
A ________ is the way consumers perceive an actual or potential product.
A) product idea
B) product concept
C) product image
D) brand personality
E) concept test
Springfield, a convenience store, has recently begun to redesign and restock its stores to
offer a more upscale environment with products such as house wines and fresh foods.
This information indicates that Springfield has most likely changed its ________.
A) positioning
B) price strategy
C) service level
D) corporate identity
E) organizational structure
Many approaches to developing effective competitive marketing strategies exist. There
may be ________ between the formulated side of marketing and the creative side, as
creativity and passion help build and maintain success.
A) collaboration
B) strong disagreements
C) managerial conflicts
D) productive meetings
E) constant tension
The market subsegment that a company exclusively caters to may dry up, or it might
grow to the point that it attracts larger competitors. This is why such companies practice
________.
A) multiple niching
B) mass marketing
C) overall cost leadership
D) low-price strategies
E) dumping
Describe the differences between chain stores and franchises.
Companies that go global confront several major risks. Describe three of these risks.
Describe the major types of buying situations.
Explain why typical husband-dominant or wife-dominant products of the 1970s may no
longer be regarded as typical.
Why do marketers value opinion leaders?
How do the practices of high-low pricing and everyday low pricing differ?
A marketer’s fixed costs are $400,000. The variable cost is $16 per unit, and the price of
the product is $24 per unit. If the company wants to make a profit, how many units
must it sell and at what price?
What is differentiation?
Briefly describe the eight steps in the business buying process.
Briefly explain why economic communities are formed.
Why is the consumer’s field of experience important to a marketer?
Describe and compare the four types of customers classified by their potential
profitability to an organization. Explain how an organization should manage each type
of customer.
What is demography? Why is the demographic environment of major interest to
marketers? Discuss the changing age structure of the U.S. population.
Marketing managers need a deep understanding of a given competitor’s mentality if
they want to anticipate how the competitor will act or react. Discuss the different ways
competitors act or react. Why do they do so? Use examples to support your thoughts.
How have changes in technology and the growth of online marketing affected the
design of marketing channels?