Many company and brand Web sites also serve as online brand communities, where
customers can congregate and exchange brand-related interests and information.
Many companies now use customer profitability analysis to identify and weed out
unprofitable customers.
An advantage of a competitor-centered company is that it ends up simply matching or
extending industry practices rather than seeking innovative new ways to create more
value for customers.
With current technology systems, marketers find it simple to access and sift through the
data that is gathered.
Direct marketing seldom occurs on a one-to-one, interactive basis.
Derived demand refers to the business demand that ultimately comes from the demand
for consumer goods.
Reverse logistics refers to the moving of products and materials from suppliers to the
factory.
Using an undifferentiated marketing strategy, a firm might decide to target several
market segments and designs separate offers for each.
The four major communication functions are encoding, decoding, response, and noise.
Companies seldom solicit ideas from customers during the idea generation stage of
product development.
A company’s mission could appropriately be stated as “making more sales or profits.”
The main differences between business and consumer markets are in market structure
and demand, the nature of the buying unit, and the types of decisions and the decision
process involved.
Franchises constitute only a small portion of all retail sales in the United States.
In the business buying process, business buyers determine which products and services
their organizations need to purchase.
External databases are electronic collections of consumer and market information
obtained from data sources within a company’s network.
The more elastic the demand, the more it pays for the seller to raise the price.
In the supplier selection stage, the buyer reviews supplier performance.
Since companies want to work together to attract customers, marketers do not need to
practice partner relationship management.
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.
Internal information is almost always sufficient for making marketing decisions.
With outbound telephone marketing, the company provides a toll-free phone number to
receive orders from television ads, print ads, direct mail, and catalogs.
Less-for-much-less positioning involves meeting consumers’ lower performance or
quality requirements at a much lower price.
Companies in several industries have recognized the buying power of the LGBT
segment of the U.S. population and have begun explicitly targeting these consumers
with gay-specific ads and marketing efforts.
Branded entertainment involves making the brand an inseparable part of some other
form of entertainment.
UNASUR is the economic community of South American nations.
Spam is unsolicited, unwanted commercial e-mail messages that clog up users’
e-mailboxes.
Prices have a direct impact on a firm’s bottom line.
Millennials represent a larger demographic segment than the baby boomers or Gen
Xers.
While cuts in advertising may appear to do little short-term harm to sales, reducing ad
spending may cause long-term damage to a brand’s image and market share.
Companies with multiple products or businesses typically choose one marketing
strategy for all their different businesses or products.
As more developed markets stagnate and become increasingly competitive, many
marketers are now targeting growth opportunities in emerging markets.
JoAnn Fabrics Inc. has created a new combination of colors and fabric types. The firm
wants to know how consumers will perceive the new product. The firm is concerned
with the product ________.
A) idea
B) displacement
C) image
D) activation
E) placement
Which of the following is LEAST relevant when a firm evaluates different market
segments?
A) segment size and growth
B) company resources
C) segment structural attractiveness
D) core competencies of competitors
E) company objectives
Under which promotional mix strategy does the producer direct its marketing activities
toward channel members to induce them to carry the product and promote it to final
consumers?
A) pull strategy
B) blitz strategy
C) push strategy
D) buzz strategy
E) pulse strategy
A message showing a product’s quality, economy, value, or performance is an example
of a(n) ________ appeal.
A) structural
B) rational
C) emotional
D) moral
E) standard
Salespeople can draw prospective leads by referrals from all of the following EXCEPT
________.
A) current customers
B) suppliers
C) dealers
D) directories
E) competitive salespeople
A company can become so ________ centered that it loses its even more important
focus on maintaining profitable ________ relationships.
A) customer; competitor
B) competitor; customer
C) market; customer
D) market; competitor
E) competitor; product
Which of the following is an economic factor that a company should consider before
deciding to enter into a new country?
A) industrial structure
B) natural resources
C) cultural and social norms
D) political stability
E) climate
________ marketing consists of activities undertaken to create, maintain, or change the
attitudes and behaviors of target consumers toward an organization.
A) Social network
B) Organization
C) Niche
D) Location
E) Concentrated
Currently, in the United States, job growth is the strongest for ________.
A) blue collar workers
B) manufacturing workers
C) professional workers
D) construction workers
E) sanitation workers
When consumers are highly involved with the purchase of an expensive product and
they perceive significant differences among brands, they most likely will exhibit
________.
A) consumer capitalism
B) complex buying behavior
C) consumer ethnocentrism
D) dissonance-reducing buying behavior
E) variety-seeking buying behavior
________ were the main form of retail clusters until the 1950s.
A) Strip malls
B) Discount stores
C) Independent off-price retailers
D) Central business districts
E) Regional shopping malls
Which of the following types of advertising will most likely result in an advertising
war?
A) covert advertising
B) institutional advertising
C) informative advertising
D) comparative advertising
E) reminder advertising
Which of the following statements is true of test marketing?
A) The amount of test marketing needed remains constant for each new product.
B) When the costs of developing and introducing the product are low, the company will
have to do significant test marketing.
C) Test marketing is seldom done on products that are risky.
D) Test marketing is seldom done when management is not sure of the product or its
marketing program.
E) Test marketing costs can be high, and it takes time that may allow competitors to
gain advantages.
Consumers in the “lifestyles of health and sustainability” market are more likely to seek
________.
A) alternative medicine
B) perfumes made from animal products
C) clothing made of fur
D) leather goods
E) foods high in saturated fat
Which of the following is a reason a consumer would follow a company’s blog?
A) The blog offers fresh insights or new ideas about the company or products.
B) The blog provides the consumer with familiar information.
C) The blog allows consumers to communicate with each other.
D) A well-followed blog gives the company influence in the marketplace.
E) Consumers know that companies want them to follow the blog postings.
In a(n) ________, two or more companies at one level join together to follow a new
marketing opportunity.
A) administered vertical marketing system
B) horizontal marketing system
C) corporate vertical marketing system
D) hybrid distribution system
E) conventional marketing system
Recently, a class-action lawsuit was brought against BigBurger, a fast food chain,
charging that its food has contributed to the nationwide obesity epidemic. The suit was
eventually dismissed, but many critics continue to point out the health dangers of
typical “fast food” menu items. These critics are most likely concerned that the fast food
industry has provided ________.
A) high-pressure selling
B) deceptive promotions
C) deceptive pricing
D) deceptive packaging
E) harmful products
With an expected increase in ethnic diversity within the American population,
marketers are most likely to place a greater emphasis on ________.
A) geographic segmentation
B) targeted advertising messages
C) mass marketing
D) “do well by doing good” missions
E) corporate giving
A company or association’s ________ is designed to help guide responses to complex
social responsibility issues.
A) code of ethics
B) marketing plan
C) non-disclosure policy
D) privacy policy
E) non-compete clause
Which of the following statements is true about personal communication channels?
A) A magazine advertisement exemplifies the use of a personal communication
channel.
B) All personal communication channels are directly controlled by a company.
C) Personal communication channels do not allow sending and receiving of feedback.
D) ord-of-mouth influence uses a personal communication channel.
E) A billboard message exemplifies the use of a personal communication channel.
At its most basic form, a marketing channel consists of the producer and the ________.
A) retailer
B) sales agent
C) competitor
D) processor
E) consumer
________ are communities over the Internet where people congregate, socialize, and
exchange views and information.
A) Corporate Web sites
B) Interactive television
C) Digital catalogs
D) Online social networks
E) Content sponsorships
Rather than competing head to head with established competitors, many companies
seek out unoccupied positions in uncontested market spaces. They try to create products
and services for which there are no direct competitors. This is called a ________.
A) horizontal integration approach
B) commercialization process
C) guerrilla marketing technique
D) blue ocean strategy
E) lean dynamics approach
A market-penetration pricing policy should LEAST likely be used for a new product
when ________.
A) the market is highly price sensitive
B) production and distribution costs fall as sales volume increases
C) the product’s quality and image support a high price
D) a high price helps keep out the competition
E) there are few or no competitors in the market
A ________ is a name, term, sign, symbol, design, or a combination of these, that
identifies the maker or seller of a product or service.
A) feature
B) brand
C) line extension
D) package
E) value chain
________ are industrial products that aid in the buyer’s production or operations,
including installations and accessory equipment.
A) Unsought products
B) Convenience products
C) Capital items
D) Specialty items
E) Repair items
Which of the following is true of transporting goods via railroads?
A) Railroads are ideal for the transportation of digital technology.
B) Railroads are a specialized means of shipping petroleum, natural gas, and chemicals
from sources to markets.
C) Railroads are a cost-effective way to ship large amounts of bulk products over long
distances.
D) Railroads are the most flexible mode of transportation in their routing and time
schedules.
E) Railroads are the slowest mode of transportation and are the most affected by the
weather.
A(n) ________ shows how much time is spent selling, traveling, waiting, taking breaks,
and doing administrative chores by the salesperson.
A) customer relationship management tool
B) corporate social networking site
C) time-and-duty analysis tool
D) outsourcing relationship management tool
E) product lifecycle management analysis
Hilton helps others run their hotels by providing the management know-how. This type
of joint venture is known as ________.
A) contract manufacturing
B) licensing
C) management contracting
D) joint ownership
E) direct investment
Which of the following is NOT one of the publics to which a public relations
department must answer?
A) stockholders
B) legislators
C) the press
D) employees
E) suppliers
Which of the following is true with regard to pure competition?
A) Under pure competition, no single buyer or seller has much effect on the going
market price.
B) In a purely competitive market, marketing research is of utmost importance.
C) In a purely competitive market, product development is the focus of most firms.
D) Under pure competition, the market consists of many buyers and sellers who trade
over a range of prices rather than a single market price.
E) Under pure competition, the market consists of only a few large sellers.
In a(n) ________ economy, fast growth in manufacturing results in rapid overall
economic growth.
A) industrial
B) industrializing
C) materials exporting
D) subsistence
E) agrarian
________ consists of arranging for a market offering to occupy a clear, distinctive, and
desirable place relative to competing products in the minds of target consumers.
A) Mass customization
B) Targeting
C) Segmentation
D) Differentiation
E) Positioning
In terms of ethnic and racial makeup, why is the United States today more accurately
characterized as a “salad bowl” than a “melting pot”?
Distinguish between an outside sales force and an inside sales force.
Who typically sets prices in large and small companies?
How can service providers use a differentiated offer, delivery, and image to avoid
competing solely on price?
What is the function of a marketing information system (MIS)?
Why is the term value delivery network a more relevant expression to use than the terms
supply chain or demand chain?
What role does message format play in print advertisements?
Although competition is most intense within a strategic group, explain why there is also
rivalry among groups. Give examples.
Describe and compare the three different categories of deceptive marketing practices.
Explain how the message source affects consumers’ perceptions of the message.
Describe the purpose, roles, and achievements of GATT and the WTO.
Briefly explain why the European Union could be considered a threat to U.S. marketers
that want to do business in Europe.
What does market targeting involve?
What strategy should a marketer use upon learning that consumers are not buying a
product because they do not perceive a need for it?
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?
Name two of the five indicators of market potential and provide an example of each.