Dove body soaps are sold successfully in essentially the same form around the globe.
This is an example of straight product extension.
Megaretailers have shifted the balance of power between retailers and producers, giving
retailers more power.
Benefit segmentation requires finding the major benefits people look for in a product
class, the kinds of people who look for each benefit, and the major brands that deliver
each benefit.
Social media sites with small audiences, such as Birdpost.com, can be as effective in
creating customer engagement as sites with large audiences, such as Pinterest.
Advertising specialties include displays and demonstrations that take place at the point
of sale.
The EU acts as an umbrella organization that oversees GATT and mediates global
disputes.
The starting point of understanding how consumers respond to various marketing
efforts is called the stimulus-response model of buyer behavior.
A neighborhood shopping center has from 50 to more than 100 stores.
Marketers must increasingly consider the special needs of traditional households
because this segment of the population is growing more rapidly than nontraditional
households.
A marketing Web site interacts with consumers to move them closer to a direct purchase
or other marketing outcome.
In a straight rebuy, the buyer wants to alter product specifications, prices, terms, or
suppliers.
The customer-driven marketing strategy involves four steps: market segmentation,
market targeting, positioning, and differentiation.
An organization’s department follows a customer-centered sense-and-respond
philosophy. The department is most likely practicing the product concept.
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.
A management information system assesses information needs, develops needed
information, and helps decision makers use the information.
Business demand ultimately derives from the demand for consumer goods.
Advertising media costs and availability differ vastly from country to country.
Reach is a measure of how many times the average person in the target market is
exposed to the message.
Mass marketing involves identifying market segments, selecting one or more of them,
and developing products and marketing programs tailored to each.
Because personal selling involves developing relationships, it is acceptable for
salespeople to stretch claims they make about a product’s advantages.
The colors, layout, and music in a store or a product package are only minor aspects of
the shopping experience and marketers spend little time making decisions about them.
Store salespeople and a consumer’s friends rarely impact someone’s final purchase
decision.
Category killers are giant specialty stores that carry a very deep assortment of a
particular line.
Off-price retailers pay regular wholesale prices for their merchandise but maintain low
prices by accepting lower margins and selling higher volume.
Market offerings are limited to physical products.
Company growth through diversification involves offering modified or new products to
the company’s current markets.
Wholesalers realize that they increase value to their customers by watching for better
ways to meet the needs of their suppliers and target customers. This involves reducing
the services they provide to retailers.
Digital and traditional direct marketing forms must be blended into an integrated
marketing communications program for best results.
A clear mission statement acts as an “invisible hand” that guides people in the
organization.
When a company views and organizes its marketing activities from only the consumer’s
point of view, it is practicing societal marketing.
A market is the set of actual and potential buyers of a product or service.
Good marketing communications can speed the demise of a poor product.
Customer engagement and value are the key ingredients in the marketer’s formula for
success.
Downstream marketing channel partners, such as wholesalers and retailers, form a vital
link between the firm and its customers.
If demand is elastic rather than inelastic, sellers will consider lowering their prices.
Only citizens are part of the consumerism movement.
While many consumers welcome the convenience that mobile marketing ads offer,
marketers still must be smart about how they engage people on mobile devices.
Most companies use direct marketing as a supplementary channel or medium.
TerraPass is a company that offers consumers the opportunity to buy carbon offsets,
which are contributions to projects that combat global warming by reducing carbon
emissions. TerraPass offers contribution packages for driving, flying, and home energy
use. Through TerraPass, consumers can pay some of the ________ costs of their private
goods and services.
A) promotional
B) safety
C) health
D) distribution
E) social
Benchmarking has become a powerful tool for increasing a company’s ________.
A) product mix
B) mass appeal
C) employee training services
D) distribution channels
E) competitiveness
Which of the following is NOT a common variable used by both consumer and business
marketers while segmenting markets?
A) operating characteristics
B) loyalty status
C) usage rate
D) geographic location
E) benefits sought
Risks of global trade include all of the following EXCEPT ________.
A) high trade barriers
B) corruption
C) restrictive government policies
D) unstable currencies
E) increased opportunities for growth
Refer to the scenario below to answer the following question(s).
In the 1970s, Shipshewana was only a small town with a hardware store, a grain mill, a
shoe store, a small restaurant, and a grocery store. Over the next two decades, the small
town transformed into an international tourist attraction, attracting thousands of tourists
who were intrigued by the lifestyle of Shipshewana’s largest population—the Amish.
Ben and Mary Miller, having grown up within the Amish faith, decided to capitalize on
their town’s popularity and their woodworking skills. Their shop, Indiana Wood, began
with a small display of handmade hickory rocking chairs, Ben Miller’s specialty. But
within a few months, the display at Indiana Wood included picnic tables, flower boxes,
and small handmade novelty items. No other shop offers the same variety.
Mary Miller decorated the shop’s display room with authentic Amish dcor and
eventually hired three Amish friends to sew and embroider napkins and other textiles as
customers had requested such items. In addition, two women from the Amish
community sought permission from the Millers to display home-baked pastries and
jellies on Tuesdays and Wednesdays, when Shipshewana attracts swarms of visitors to
its flea market on the south edge of town. The Millers also hired four more people to
help customers throughout the purchasing process and to provide the required
product-related information to the customers.
“Shipshewana is full of specialty shops,” Mary Miller stated. “People don’t come here to
buy things made in China or Taiwan. They want real, Amish-made goods.”
Indiana Wood can be best classified as a(n) ________.
A) full-service retailer
B) industrial distributor
C) self-service retailer
D) warehouse club
E) limited-service retailer
Under a team-based new product development approach, ________.
A) a single departmental team works to complete different stages of the process before
passing the new product along to the next department and stage
B) the organizational tension and confusion is less than under the sequential approach
C) company departments work closely together in cross-functional teams
D) a bottleneck at one phase can seriously delay an entire project
E) the new product passes from one department to another before finalizing
If a company’s aim is to make its own and competing products obsolete and serve
customers who want state-of-the-art products and services, it is using a value discipline
called ________.
A) overall cost leadership
B) product activation
C) product binning
D) product leadership
E) customer intimacy
Sam, the owner of a small company, learned that a competitor was planning to spend
$150,000 on promotion in the next financial year. As soon as he learned this, Sam
called his finance manager and said, “I want to spend $150,000 on promotion next
year.” In this case, which method of promotional budgeting does Sam use?
A) the objective-and-task method
B) the competitive-parity method
C) the percentage-of-sales method
D) the affordable method
E) the pull-push method
Dan’s Drugstore sells medicine to consumers for $20 that only costs $2 to produce.
Critics accuse Dan’s of ________.
A) deceptive promotion
B) deceptive packaging
C) false advertising
D) excessive markups
E) redlining
The online and mobile equivalent of a pop-up store is ________.
A) door buster deals
B) Black Friday specials
C) high-low pricing
D) flash sales sites
E) everyday low pricing
The goal of ________ research is to describe things, such as the market potential for a
product or the demographics and attitudes of consumers who buy the product.
A) exploratory
B) statistical
C) causal
D) analytic
E) descriptive
Digital technology allows companies to reach out to customers in numerous ways.
Which of the following is NOT the purpose of a company reaching out using digital and
social media?
A) solving consumer problems
B) building customer relationships
C) helping customers shop
D) providing product information
E) working with suppliers
The market researchers at HoneyCamp Foods gather daily sales data and sort it by
product line and region. With the help of sophisticated tools and techniques, they
develop the data needed by marketing managers to evaluate the market share of the
company’s different products and also to gain valuable market insights. This mix of
people and procedures at HoneyCamp Foods that generate actionable marketing
insights represents a(n) ________.
A) enterprise planning system
B) product mix
C) strategic planning system
D) marketing information system
E) business portfolio
The selling concept is typically practiced ________.
A) to balance consumers’ wants, company’s requirements, and the society’s long-run
interests
B) with products that offer the most in terms of quality, performance, and innovative
features
C) when the company focuses on building long-term customer relationships
D) with goods that buyers normally do not think of buying
E) by customer-driven companies
Refer to the scenario below to answer the following question(s).
Casey Brickly opened The Landing, a convenience store on the north shore of Witmer
Lake, in 1962. With a sandwich counter on one side and a bait shop and grocery on the
other, The Landing was an immediate hit with weekend lake visitors and local residents
alike. In the summer, boaters parked at the piers and bought all their fishing needs, such
as rods and reels, bait, snacks, and soft drinks at The Landing. Even during the winter
months, snowmobilers and ice fishermen were lured to The Landing for snacks and hot
coffee or hot chocolate.
As time passed, the business changed and grew tremendously. What was formerly a
weekend tourist area gradually became a full-fledged residential area. Many of the
houses, which were built as cottages in the 1950s and 1960s, were remodeled into
residential homes. By the end of the 1970s, the days of small motorboats and 10
mile-per-hour speed limits were gone; skiing and fast speedboats became the rage.
Through it all, The Landing continued to attract flocks of patrons.
In the 1980s, however, Casey started to realize that the grocery area in The Landing
could not compete with larger local retailers. He eventually enlarged the sandwich
counter, transforming the bait shop and grocery into a restaurant with a full menu
typical of any diner. “Getting rid of the bait shop was hard to do,” Casey admitted. “I
still had a summer crowd that relied on us for their fishing needs, but we couldn’t
survive a whole year on four months of profit.”
In the early 2000s, the atmosphere of Witmer Lake and the neighboring lakes became
upscale. “I could see that people were spending more on their speed boats than what
they had originally paid for their cottages!” Casey exclaimed. Many of the cottages
were inherited by children and grandchildren of the original owners. Once again, the
scene started to change as many of the lake houses were used only as weekend lake
homes. Unlike the previous generation, a vast number of the current owners could
afford to live closer to their jobs while maintaining lake homes. “At this point, business
wasn’t growing,” Casey said.
As local competition continued to increase, Casey converted the diner of The Landing
into a bar with a lounge area. “The change might have been too drastic,” Casey said,
“but it was the only way we could maintain a strong, year-round business in spite of the
population shifts and competitive forces.”
Which of the following is the macroenvironmental force that has had the greatest effect
on The Landing?
A) the demographic environment
B) the technological environment
C) marketing intermediaries
D) the political environment
E) citizen-action publics
An MIS user should most likely be able to ________.
A) implement new technology
B) increase order requests
C) develop customer insights
D) analyze employee turnover
E) establish short-term objectives
At JCPenney, a mid-level department store, customers shop for moderately priced
products and they are assisted in some phases of the shopping process. JCPenney is a
________.
A) full-service retailer
B) limited-service retailer
C) self-service retailer
D) specialty store
E) superstore
Which of the following companies uses captive product pricing?
A) Photo Genie, which sells inexpensive cameras that run only on their own expensive
batteries
B) Go Zone, which launched a range of tablet models, each priced according to its
features
C) Penguin’s Parlor, which offers customers a 20-percent discount on their birthdays
D) Sportsprint, which prices sports equipment according to customer evaluations
E) Burger Den, whose combo meals are priced lower than its individual components
sold together
________ help companies stock and move goods from their points of origin to their
destinations.
A) Retailers
B) Physical distribution firms
C) Marketing services agencies
D) Resellers
E) Suppliers
Gainville Inc. manufactures Android phones. Each new Gainville phone launch
advances the cause of democratizing technology. Gainville, an expert in fostering
customer community, engages customers at a deep, emotional level, and has been
ranked one of the Breakaway Brands by the brand consultancy, Kendell Associates.
Gainville is most likely positioned on ________.
A) basic product attributes
B) short-term benefits
C) service variability
D) self-image enhancement
E) strong beliefs and values
As part of the rapid globalization of today’s economy, companies are selling more
domestically produced goods in international markets and ________.
A) taking a local view of their industry
B) purchasing more supplies abroad
C) reducing competition within their industry
D) downplaying concerns for social responsibility
E) competing solely in traditional marketplaces
The most common form of marketing organization is the ________ organization. Under
this organization, an operational specialist heads different marketing activities.
A) geographic
B) product management
C) functional
D) customer management
E) market
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
To communicate effectively, a marketing communicator should most likely ________.
A) ensure that the encoding and decoding processes are different
B) encode and decode the message personally and frequently
C) understand the consumer’s field of experience
D) foresee unplanned static or distortion
E) use familiar words and symbols
When McDonald’s and other fast food restaurants offer “value menu” items at
surprisingly low prices, they are most likely using ________ pricing.
A) break-even
B) target profit
C) good-value
D) cost-plus
E) target return
Which of the following marketing orientations calls for aggressive promotional efforts
and focuses on creating transactions rather than long-term customer relationships?
A) the marketing concept
B) the production concept
C) the product concept
D) the selling concept
E) the societal marketing concept
To decrease direct marketing abuses, government agencies are investigating do-not-call
lists, do-not-mail lists, do-not-track-online lists, and ________.
A) claimed fraudulent credit card charges
B) Can Spam legislation
C) possibly deceptive television advertising
D) offerings of illegal products
E) bait-and-switch offers
Which type of store carries a wide variety of product lines and has been squeezed in
recent years between more focused and flexible specialty stores on the one hand and
more efficient, lower-priced discounters on the other?
A) warehouse clubs
B) department store
C) factory outlet
D) merchant wholesaler
E) category specialist
A ________ is a set of interdependent organizations that help make a product or service
available for use or consumption by the consumer or business user.
A) product line
B) product delivery network
C) marketing channel
D) consumer base
E) resource bank
Bead Beautiful is a jewelry brand targeted at preteen girls. What needs do NOT fit with
this audience, as the marketing team develops a value proposition for Bead Beautiful?
A) variety of colors in products
B) price
C) quality of materials
D) mature designs
E) ease of availability
How do successful companies recruit and train their salespeople? What does an
effective training program teach salespeople?
Name some common convenience products.
Why might salespeople use high-pressure selling tactics that do not lead to long-term
relationships with customers?
Briefly explain the major sales promotion tools.
How does a retailer cooperative function?
Explain product line pricing.
Define commercialization. Explain two important decisions the company must make
during this stage.
Identify the three major ways a company can manage its international marketing.
Why would a producer use wholesalers rather than sell directly to retailers or
consumers?
Describe how nonstore retailing has grown in the past decade.
What does a company focus on when using a concentrated marketing strategy?
Alex works in the marketing department of an international company. How can Alex
use modern technologies to conduct market research and better serve his company’s
customers?
Explain the methods of evaluating the performance of a sales force. Why is the
evaluation of a company’s sales force considered necessary?
Discuss formal and informal marketing strategies and give examples of companies that
follow these strategies.
What is the role of a salesperson in a territorial sales force structure?
Discuss the different levels at which competitors can be identified.
What are some of the problems associated with matrix approaches?
What factors are assessed in test marketing?
What are the two levels in the sustainability portfolio that deal with “beyond greening”
activities that tend to pay off in the longer term?
