Digital and traditional direct marketing forms must be blended into an integrated
marketing communications program for best results.
As baby boomers reach their peak earning and spending years, they become lucrative
markets for financial services, travel, and entertainment.
In the performance review stage, the seller or the buyer may modify, continue, or cancel
the business arrangement.
Co-branding occurs when retailers and wholesalers create their own store brands.
Gary Hirshberg started the Stonyfield Farm yogurt company. His marketing strategy:
building a casual bond with customers using guerilla marketing. This is an example of
formulated marketing.
For most marketers, customer relationship management is exclusively a matter of
customer data management.
Customer-managed relationships are marketing relationships that are controlled by
customers; therefore, they are of no significance to marketers.
A voluntary chain is a wholesaler-sponsored group of independent retailers that engages
in group buying and common merchandising.
The technological environment is predominantly static.
Perceived obsolescence involves continually changing consumer concepts of acceptable
styles to encourage more and earlier buying.
The order-routine specification includes the final order with the chosen supplier or
suppliers and lists items such as technical specifications, quantity needed, expected
delivery time, return policies, and warranties.
When using product bundle pricing, sellers combine several of their products and offer
the bundle at an increased price for increased profit.
A management information system assesses information needs, develops needed
information, and helps decision makers use the information.
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.
When using a niche marketing strategy, a firm goes after a large share of one or a few
smaller segments.
Government agencies such as the Food and Drug Administration and the Consumer
Product Safety Commission investigate and ban potentially unsafe products.
Regulations created by these and other agencies result in higher research costs and
longer times between new product ideas and their introduction.
A target market consists of a set of buyers who share common needs or characteristics
that the company decides to serve.
Many large and mature companies get stuck in formulated marketing. They pore over
the latest Nielsen numbers, scan market research reports, and try to fine-tune their
competitive strategies and programs.
Millennials comprise the most financially affluent group in America today.
In a territorial sales force structure, as each salesperson travels within a limited
geographic area, travel expenses are relatively small.
In the United States, the lines between social classes are not fixed and rigid, but people
can only drop to a lower social class and not move up into a higher one.
Direct marketing is an expensive way of reaching target markets.
In evaluating different market segments, a firm should look at three factors: segment
size and growth, segment structural attractiveness, and company objectives and
resources.
Demographic segmentation divides buyers into segments based on their knowledge,
attitudes, uses, or responses concerning a product.
A person’s occupation has no effect on the goods and services that she buys.
Although television advertising has high absolute costs, its cost per exposure is
relatively low.
The major activity in strategic planning is business portfolio analysis, whereby
management evaluates the products and businesses that make up the company.
A marketing communications director has overall responsibility for the company’s
communications efforts.
The message execution style of personality symbol involves identifying and presenting
ordinary people saying how much they like a product.
Open-ended questions are especially useful in exploratory research.
Air carriers transport digital products from producer to customer via satellite, cable,
phone wire, or wireless signal.
Marketing services agencies are the marketing research firms, advertising agencies,
media firms, and marketing consulting firms that help the company target and promote
its products to the right markets.
Variable costs change directly with the level of production.
Marketing is managing profitable customer relationships.
Companies with multiple products or businesses typically choose one marketing
strategy for all their different businesses or products.
Advertising media costs and availability differ vastly from country to country.
Producers of convenience products and common raw materials typically seek exclusive
distribution, a strategy in which they stock their products in as many outlets as possible.
Sustainable marketing consists of five principles: consumer-oriented marketing,
customer-value marketing, innovative marketing, sense-of-mission marketing, and
societal marketing.
The goal of a “blue ocean strategy” is to make competition irrelevant.
Federal legislation on price fixing requires that sellers set their prices ________.
A) based on their fixed and variable costs
B) without communication from competitors
C) to achieve a specific profit margin
D) without the intention of cutting into competitors’ profits
E) consistently throughout a region
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
Which of the following refers to a cultural factor in the context of segmenting
international markets?
A) receptivity of foreign firms
B) economic development of the country
C) population income levels
D) stability of the government
E) values and attitudes
The collection of businesses and products that make up a company is called its
________.
A) strategic business unit
B) supply chain
C) strategic plan
D) business portfolio
E) internal value chain
The ________ concept is aligned with the philosophy of continuous product
improvement and the belief that customers will choose products that offer the most in
quality, performance, and innovative features.
A) product
B) production
C) societal marketing
D) marketing
E) selling
Which of the following terms best describes a large, low-cost, low-margin,
high-volume, self-service store that carries a wide variety of grocery and household
products?
A) convenience store
B) supermarket
C) specialty store
D) warehouse club
E) factory outlet
Companies can identify their competitors from both ________ points of view.
A) industry and market
B) product and customer
C) customer and location
D) location and product
E) product and strategy
An MIS is used to ________.
A) generate product interest
B) develop marketing plans
C) identify demographic trends
D) assess information needs
E) test hypotheses about cause-and-effect relationships
Which of the following is true about the territorial sales force structure?
A) The territorial sales force structure does not define each salesperson’s job clearly.
B) Salespeople specialize in selling only a small portion of the company’s products.
C) In a territorial sales force structure, separate sales forces are set up for different
industries.
D) Travel expenses are relatively small as each salesperson travels within a limited
geographic area.
E) In a territorial sales force structure, separate sales forces are often established to
handle a single, large account in every territory.
The two key economic factors reflecting a country’s attractiveness as a market are its
industrial structure and its ________.
A) communication adaptation
B) nontariff trade barriers
C) exchange controls
D) income distribution
E) transportation systems
Gaining ________ requires delivering more value and satisfaction to target consumers
than competitors do.
A) competitive advantage
B) first-mover advantage
C) economies of scale
D) comparative advantage
E) differentiation
The ________ organization is the most common type of contractual relationship.
A) franchise
B) horizontal
C) conventional
D) multi-national
E) entrepreneurial
Selecting which segments of a population to serve is called ________.
A) market segmentation
B) positioning
C) customization
D) target marketing
E) differentiation
The first step in creating effective advertising messages is ________.
A) selecting specific media vehicles
B) planning a message strategy
C) determining return on advertising investment
D) choosing media timing
E) executing the message
Which of the following is an advantage offered by co-branding?
A) Manufacturers do not have to invest in creating their own brand names with
co-branding.
B) Co-branding allows retailers to sell exclusive products that cannot be purchased
from competitors.
C) Co-branding allows a company to expand its existing brand into a category it might
otherwise have difficulty entering alone.
D) Co-branding dilutes brand equity and increases the appeal of store brands.
E) Co-branding does not involve complex legal contracts and licenses.
Which of the following is a valid source of secondary data?
A) personal letters and correspondence
B) Internet search engines
C) ethnographic research
D) direct surveys
E) interviews
A market nicher can most likely specialize along all of the following lines EXCEPT
________.
A) specific end users
B) unique products
C) customized services
D) quality-price
E) mass marketing
In ________, the producer marks the reduced prices directly on the label or package.
These offer consumers savings off the regular price of a product and are very effective
in stimulating short-term sales.
A) promotional products
B) coupons
C) cents-off deals
D) samples
E) rebates
McDonald’s “Commitments to Offer Improved Nutrition Choices” strategy has added
healthy food options to its menu, phased out traditional artery-clogging trans fats,
launched a major multifaceted education campaign, and addressed environmental
issues. This strategy best exemplifies the ________ concept.
A) sustainable marketing
B) direct marketing
C) mercantilism
D) strategic planning
E) consumer business
Which of the following is a traditional buyers’ right?
A) the right to resell the product
B) the right not to buy a product that is offered for sale
C) the right not to pay any taxes included in the final price
D) the right to exchange the product if it is of the wrong size or style
E) the right to demand a discount on the product
A company that is in a good position to identify new opportunities is a ________
company.
A) market-centered
B) cost-centered
C) competitor-centered
D) product-centered
E) customer-centered
________ play an important role in efficiently making products available to target
markets in the needed varieties and quantities.
A) Virtual banks
B) Intermediaries
C) Price consultants
D) Uniform-delivery networks
E) Upstream partners
When a competitor cuts its price, a company should ________ if it believes it will not
lose much market share or would lose too much profit by cutting its own prices.
A) reduce its production costs
B) reduce its marketing costs
C) maintain its current prices and profit margin
D) increase its marketing budget to raise the perceived value of the product
E) increase its production costs to improve the quality of the product
Suppose Amazon.com has offered you free shipping on your next purchase of more
than $35. This offer is an example of ________.
A) sales promotion
B) personal selling
C) a public relations strategy
D) horizontal diversification
E) a pull strategy
Sales promotions are targeted toward members of the sales force, business customers,
retailers, wholesalers, and ________.
A) final buyers
B) employees
C) manufacturers
D) suppliers
E) upstream companies
The fundamental asset underlying brand equity is ________, the value of customer
relationships that the brand creates.
A) the customer mix
B) customer equity
C) the product experience
D) service variability
E) the service encounter
As small companies achieve success, they inevitably move toward more ________
marketing. They adopt more-developed marketing tools and adhere to them closely.
A) ambush
B) formulated
C) entrepreneurial
D) intrepreneurial
E) multi-level
________ segments are conceptually distinguishable and respond differently to
different marketing mix elements and programs.
A) Complex
B) Measurable
C) Competitive
D) Differentiable
E) Homogeneous
Harris Brown, the marketing manager at a small retail chain, wants to assess his firm’s
strengths, opportunities, weaknesses, and threats. Which of the following would be best
suited for his purpose?
A) SWOT analysis
B) cluster analysis
C) portfolio analysis
D) regression analysis
E) Porter’s five forces analysis
Which of the following is a cost-based approach to pricing?
A) value-based pricing
B) high-low pricing
C) target return pricing
D) good value pricing
E) EDLP
What happens in a modified rebuy?
Why are printed catalogs still thriving in the face of the growing popularity of
Web-based catalogs?
Discuss the first two levels of the environmental sustainability portfolio that pay off in
the short term.
How can wholesalers improve their use of promotions?
Give two examples of products for which marketers might use optional-product pricing.
Explain the controversy surrounding cause-related marketing.
List some important characteristics of price.
A company has four choices when it comes to developing brands. Describe them.
How does marketing through online social networks differ from more traditional
marketing?
What attracts shoppers to a power center?
Discuss why a company really needs and benefits from competitors.
Who typically sets prices in large and small companies?
Describe three public policy issues or regulations that marketers should carefully
consider as they make decisions about adding or dropping products.
Distinguish between market segmentation and market targeting.
A marketer has chosen a multiple-city test market. What can be concluded from this
choice of a multiple-city test market?
Why is it important for managers to define the problem and establish research
objectives?
Discuss the advantages of using the services of an advertising agency.
Give an example of testimonial evidence and explain the importance of the source.