The workload approach is used to determine the type of sales force structure required
by a company.
The institutional market is characterized by high budgets, while its buying objective is
profit.
“Destroying” a close competitor can actually damage a company’s market share in the
long run.
A company must lower its ethical standards to successfully conduct business in
countries with low standards.
In a complex sales force structure, salespeople can be specialized by customer and
territory; product and territory; product and customer; or territory, product, and
customer.
Geographic segmentation divides the market into segments based on variables such as
age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and
generation.
Causal research involves sending observers to watch and interact with consumers in
their natural environments.
Constantly reduced prices can erode a brand’s value in the eyes of customers.
A firm can obtain new products through acquisition or new product development
efforts.
When using a niche marketing strategy, a firm goes after a large share of one or a few
smaller segments.
On a deeper level, our wants and values are influenced not only by marketers but also
by family, peer groups, religion, cultural background, and education.
A demand curve shows the number of units the market will buy in a given time period
at different prices that could be charged.
An obvious disadvantage of using customer relationship management is its
ineffectiveness in pinpointing high-value customers.
Two of the characteristics that are especially important in influencing an innovation’s
rate of adoption are relative advantage and compatibility.
In customer value-based pricing, price is considered along with all other marketing mix
variables before the marketing program is set.
Telemarketing is especially effective for business-to-business marketers.
While advertisers can accurately measure the communications effects of their ads,
measuring sales and profit effects are more difficult.
Competitors may serve less-attractive segments or lead to more product differentiation.
The simplest pricing method is cost-plus pricing, which involves adding a standard
markup to the cost of the product.
A seasonal discount is a price reduction to buyers who buy merchandise while the
products are in season.
Using teams of people from sales, marketing, engineering, finance, technical support,
and even upper management to service large, complex accounts is known as complex
selling.
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.
Service inseparability means that the quality of services depends on who provides them,
as well as when, where, and how they are provided.
Cost-based pricing involves setting prices based on consumer perception of value.
A specific communication task to be accomplished with a specific target audience
during a specific period of time is called an advertising objective.
Retailers must work to ensure customers identify with their products. Differentiation
and positioning are vital to communicating this message.
All business buying decisions follow all steps of the business buying process.
The newer the buying task, and the more complex and costly the item, the lesser the
amount of time the buyer will spend searching for suppliers.
Marketers usually limit their segmentation analysis to only one major variable.
To plan effective marketing strategies, the company must ignore its competitors.
Perceived obsolescence involves continually changing consumer concepts of acceptable
styles to encourage more and earlier buying.
In an automated warehouse, orders are fed directly from the retailer’s information
system to the wholesaler’s, and the items are picked up by mechanical devices and taken
to a shipping platform where they are assembled.
Each layer of marketing intermediaries that performs some work in bringing the
product and its ownership closer to the final buyer is a channel level.
A company’s marketing environment excludes the forces outside the marketing
department that affect marketing management’s ability to build and maintain successful
relationships with target customers.
Which of the following Ps in the marketing mix describes the goods-and-services
combination the company offers to the target market?
A) price
B) promotion
C) product
D) place
E) package
Ralph works for a manufacturing company in Ohio. Recently, he called in a department
manager to assist in the purchase of some heavy machinery. After consulting the
department manager, Ralph is considering a change in product specifications and
characteristics and expects suppliers to meet his requirements. Which of the following
is evident here?
A) modified rebuy
B) new task
C) straight rebuy
D) product differentiation
E) reverse auction
In a SWOT analysis, which of the following would be considered a strength?
A) industry trends
B) technological shifts
C) environmental demands
D) performance challenges
E) internal capabilities
Which of the following is true with regard to the diversity segment of U.S. adults with
disabilities?
A) Most individuals with disabilities are active consumers.
B) The market represented by U.S. adults with disabilities is smaller than that
represented by African Americans or Hispanics.
C) The diversity segment, U.S. adults with disabilities, is a rather unattractive segment
for the tourism industry.
D) The annual spending power of U.S. adults with disabilities is less than $100 billion.
E) Most companies are reluctant to reach out to consumers with disabilities.
In Chinese, the KFC slogan “finger-lickin’ good” came out as “eat your fingers off.”
And Motorola’s Hello-moto ringtone sounded like “Hello, Fatty” in India. Which of the
following strategies can be used to avoid such mistakes?
A) communication adaptation
B) standardized global marketing
C) straight product extension
D) product adaptation
E) communication extension
Hank is an assistant marketing director for a firm in a market with many low-margin
customers. What type of relationship with these customers would be the most profitable
for him?
A) full partnerships
B) basic relationships
C) causal relationships
D) club marketing programs
E) inverse relationships
Critics say marketing benefits ________ more than ________.
A) consumers; manufacturers
B) industry; consumers
C) stores; manufacturers
D) exporters; importers
E) independent sellers; chain stores
Mary Adams is helping her company develop a marketing program for a new product
line. The program is designed to appeal most to less materialistic consumer groups who
are likely to prize experience, not acquisition. The marketing program is most likely
designed to appeal to which of the following demographic groups?
A) Generation X
B) Millennials
C) Echo Boomers
D) Silent Generation
E) Lost Generation
Which of the following terms refers to a tax levied by a foreign government against
certain imported products to raise revenue or to protect domestic firms?
A) embargo
B) tariff
C) excise
D) exchange control
E) quota
Consumers’ names and additional information likely become part of ________
whenever they enter a sweepstakes, apply for a credit card, visit a Web site, or send a
tweet.
A) other consumers’ contact lists
B) telemarketers’ lists
C) their computer’s cookie history
D) a company’s database
E) the FTC’s surveys regarding online privacy
Which of the following is a sociocultural factor that a company should consider before
deciding to enter into a new country?
A) political stability
B) population density (urban vs. rural)
C) education
D) income distribution
E) consumer lifestyles, beliefs, and values
Which of the following is a significant challenge presented by the product life cycle?
A) increased expenses
B) increased competition
C) new product development
D) evaluation of results
E) recognizing the stages as a product goes through them
Which of the following is a primary reason that companies use e-learning to conduct
sales training programs?
A) Customer needs and habits can be unambiguously conveyed through online training
programs.
B) Sales training programs that do not use e-learning are mostly ineffective.
C) E-learning eliminates employee attrition.
D) E-learning is the best way to simulate real-life sales calls.
E) E-learning cuts travel and training costs.
Companies that set a low price for a new product in order to attract a large number of
buyers and a large market share are using the ________ strategy.
A) market-skimming pricing
B) market-penetration pricing
C) cost-plus pricing
D) inclusive pricing
E) exclusive pricing
Potential advantages of contract manufacturing include all of the following EXCEPT
________.
A) reducing plant investment
B) starting faster with less risk
C) providing a later opportunity to form a partnership with the local manufacturer
D) decreasing tariff costs while meeting the country’s local manufacturing regulations
E) loss of potential profits on manufacturing
PoolPak produces climate-control systems for large swimming pools. The company’s
customers are more concerned about service support for maintaining their systems than
the initial price of the product. PoolPak specializes in and differentiates itself through
both cutting-edge technologies used to build its high-value climate control systems as
well as seamless quality service. PoolPak’s prices are very high, but demand for its
climate-control systems seems to be forever on the rise. This exemplifies ________.
A) target costing
B) a pure monopoly
C) cost-plus pricing
D) a nonprice position
E) break-even pricing
________ calls for dividing the market into regions, states, counties, cities, or even
neighborhoods.
A) Benefit segmentation
B) Geographic segmentation
C) Demographic segmentation
D) Psychographic segmentation
E) Occasion segmentation
Which of the following is NOT one of the major variables used in segmenting
consumer markets?
A) demographic
B) behavioral
C) ethical
D) geographic
E) psychographic
Which of the following is a potential drawback of multibranding?
A) Multibranding tends to decrease brand loyalty.
B) Company resources are likely to be concentrated on a single brand.
C) Multibranding curbs the growth opportunities of established brands.
D) Each brand might obtain only a small market share, and none may be very
profitable.
E) Multibranding causes companies to refrain from product diversification.
Which of the following would most likely be included in the written materials prepared
by PR professionals to reach and influence target markets?
A) employee code of conduct
B) annual reports
C) memorandum of association
D) advertisement jingles
E) white papers
Which of the following is a political and legal factor that a company should consider
before deciding to enter into a new country?
A) monetary and trade regulations
B) transportation structure
C) population size and growth
D) industrial infrastructure
E) business norms and approaches
Today, ________ are flourishing due to the increased use of market segmentation and
market targeting.
A) chain stores
B) specialty stores
C) superstores
D) discount stores
E) off-price stores
Which of the following is an internal source for new product ideas?
A) competitors
B) company employees
C) marketing research firms
D) trade magazines
E) government agencies
Which of the following is a disadvantage of using a differentiated marketing strategy?
A) It generates far lower sales compared to an undifferentiated marketing strategy.
B) Customer loyalty is negatively impacted and difficult to obtain.
C) The costs of doing business increase.
D) Quality control problems increase.
E) Product safety decreases.
Apple’s iPod has been called “one of the greatest consumer electronics hits of all time.”
iPods have been sold in huge numbers, and Apple captures a large share of the music
player market. This success has attracted many large, resourceful competitors. The iPod
is in the ________ stage of the product life cycle.
A) introduction
B) growth
C) maturity
D) decline
E) adoption
The research plan should be presented in a written proposal. The proposal should
include all of the following EXCEPT ________.
A) the predicted results
B) research objectives
C) how the results will help management’s decision making
D) estimated research costs
E) the information to be obtained
Hispanic Americans tend to be deeply family oriented and make shopping a family
affair. Older consumers are brand loyal, while younger Hispanics have shown
increasing price sensitivity and willingness to choose store brands. Hispanic Americans
make up a ________.
A) subculture
B) social class
C) social network
D) life-cycle stage
E) lifestyle
Lower costs in the form of cheaper labor or raw materials, foreign government
investment incentives, freight savings, and the opportunity to improve the company
image are the factors that would most likely lead a company to enter a foreign market
using the market entry strategy of ________.
A) direct exporting
B) licensing
C) management contracting
D) indirect exporting
E) direct investment
The experience curve reveals that ________.
A) repetition in production has no visible impact on production costs
B) repetition in production enhances efficiency
C) the average cost of production remains the same with accumulated production
experience
D) repetition in production adds to the costs and thereby increases the prices of outputs
E) the average cost of production increases with accumulated production experience
Which of the following promotion tools involves building up a good corporate image
and handling unfavorable stories and events?
A) sales promotion
B) personal selling
C) direct and digital marketing
D) public relations
E) advertising
Which of the following is a benefit of using blogs as marketing tools for companies?
A) Blogs provide companies with a platform to help portray wider merchandise.
B) Blogs are online selling platforms for people located in hard-to-reach places.
C) Blogs help reach a wider audience compared to other online direct marketing tools.
D) Demographic information about customers can be easily discovered.
E) Blogs can offer a fresh, original, personal, and cheap way to enter into consumer
conversations.
Rather than assuming that strategic options are bounded by the current environment,
firms adopting a(n) ________ to the marketing environment develop strategies to
change the environment.
A) environmental stance
B) proactive stance
C) reactive stance
D) relativist approach
E) no-compromise approach
How can a firm benefit from participating in a horizontal marketing system?
Marketers can choose from two basic promotion mix strategies—push promotion or
pull promotion. Compare these two strategies.
How can a marketer increase its “share of customer”?
Why is demand in the business market mostly inelastic?
What is SWOT analysis?
What is involved in pollution prevention? Give at least one example.
Compare the selling and marketing concepts, listing the key components of each
philosophy.
What is the primary function of gatekeepers in an organization?
Why might individual departments prefer sequential product development?
Identify product characteristics that influence the rate of adoption. Explain how each
characteristic affects the rate of adoption.
Discuss the advantages and disadvantages of advertising.
What should sellers consider if they wish to avoid marketing myopia?
Explain why the PLC can be applied to more than just brands.
List some important characteristics of price.
Why should a company be concerned about integrating communications from different
sources within the company?
Explain concept testing.
Why should marketers set up systems that encourage customers to complain about
products?
What is the most common CRM mistake?
Why should mission statements be market oriented instead of product or technology
oriented?
Distinguish between business markets and consumer markets.
