A brand manager serves essentially the same function as a product category manager.
Today’s professional salesperson is more likely to practice relationship selling than
transactional selling.
For marketers today, gathering data is a bigger challenge than deciding how to use the
data that are collected.
A target market is not viable unless the segment is large enough to be profitable now
and in the future.
In the product concept development and screening phase of new product development,
successes generally occur much more frequently than failures.
In the communication model, the message is the actual communication that bounces
back from the receiver to the sender.
Honor, a market researcher for a packaged goods company, is segmenting a population
of consumers based on how frequently they buy different types of packaged goods.
Honor is using behavioral segmentation.
Consumer surveys are often important to marketers using demand-based pricing.
The World Trade Organization (WTO) does not deal with issues concerning the
protection of copyright and patent rights.
Hispanic Americans tend to be brand loyal, especially to products made in their country
of origin.
SWOT stands for strengths, willingness, opportunities, and threats.
Typically, each element of an action plan is linked to a budget item.
To determine an ad’s click-through rate, marketers must know both the number of
click-throughs and the number of impressions.
The Clorox Company marketed a new product called Clorox Oxygen Action
multipurpose stain reliever. This is an example of a brand extension.
Data mining can be used to identify customers who are not profitable and who should
be abandoned.
A restaurant that features a serve-yourself buffet, which eliminates the need for a full
wait staff, is using disintermediation.
When Apple marketed its iPod to teens, it used a personality segmentation variable.
To encourage customers to buy the $799 dining room suite, the furniture store set a
much cheaper and shoddily made set next to the more expensive furniture, thereby
using the contrast effect.
Coca-Cola’s Minute Maid unit is introducing a new premium fruit beverage. The
primary promotional objective of marketing communications for the new product
should be to create awareness.
A country that barters for imported products rather than paying in cash likely does so
because its currency is convertible.
In the communication model, noise is anything that interferes with effective
communication.
Experiential shoppers enjoy the “thrill of the hunt” available through the experience of
shopping on-line.
Kids between the ages of 8 and 14 are part of the tweens market segment.
Most consumer sales promotions temporarily change the price/value relationship.
Innovators tend to be better off financially than consumers in other adopter groups.
The marketing mix is the marketer’s strategic toolbox.
Two or more firms pooling their resources for common goals have established a joint
venture.
The percentage-of-sales method of setting a communication budget wrongly treats sales
as a cause of promotion rather than a result.
Application fees, tuition, and fines are all examples of prices.
Households making $100,000 or more represent only 20 percent of U.S. households but
control more than half of all income earned in the United States.
In the United States, the advertising industry itself encourages honesty in advertising.
Competitive advantage can be created by offering a lower price for a product that is
similar to the competition’s product.
Packaging plays an important role in communicating brand personality.
Department stores carry a narrow range of products with deep assortments within those
lines.
A local restaurant sells lunch entrees for $7.95, $9.95, and $11.95. From this
information, you can infer the restaurant uses which of the following?
A) price discrimination
B) odd-even pricing and price lining
C) dynamic pricing and price lining
D) reference pricing and value pricing
E) dynamic pricing and loss leader pricing
Which of the following suggests that what is ethical in one culture is not necessarily
ethical in another culture?
A) protectionism
B) nationalization
C) ethnocentrism
D) ethical relativism
E) locavorism
________, which uses a data network to carry voice calls, is frequently used for
communication between salespeople and customers.
A) Voice-over internet Protocol (VoIP)
B) Customer relationship management (CRM)
C) Telemarketing
D) Partner relationship management (PRM)
E) Total quality management (TQM)
Which of the following is a service that lets users post short text messages to followers
who subscribe to their microblog?
A) Second Life
B) LinkedIn
C) Facebook
D) Twitter
E) Yelp
Which of the following promotion tools is most closely associated with building up a
positive corporate image and handling unfavorable stories and events?
A) sales promotion
B) personal selling
C) direct marketing
D) public relations
E) advertising
A ________ is a modification to an existing product.
A) technical innovation
B) continuous innovation
C) discontinuous innovation
D) commercial innovation
E) dynamically discontinuous innovation
A retailer cooperative is a form of a(n) ________ vertical marketing system (VMS).
A) administered
B) conventional
C) corporate
D) horizontal
E) contractual
________ are the tangible products that individuals purchase for personal or family use.
A) Consumer services
B) Consumer goods
C) E-services
D) E-products
E) Industrial goods
Which of the following is a sales technique that focuses on making an immediate sale
with little or no attempt to develop a relationship with the customer?
A) proactive marketing
B) reactive marketing
C) transactional selling
D) relationship selling
E) creative selling
Product planners for JetBlue Airways decided to include in-seat video games and
television during flights. This is an example of a ________ for JetBlue.
A) target market selection strategy
B) pricing strategy
C) control process
D) product strategy
E) marketing metric
An agent for an actor presents a client’s qualifications to potential movie production
companies until one company responds positively to the actor. This is an example of the
________ approach.
A) product improvement
B) market fulfillment
C) total quality management (TQM)
D) pure selling
E) relationship marketing
Manufacturers of which of the following would be most likely to use freight absorption
pricing?
A) chocolate candy
B) laptop computers
C) furniture polish
D) feline flea collars
E) repair parts for vacuum cleaners
To a producer of goods, a greater number of channel levels means ________.
A) less distance between producer and end consumer
B) less control
C) more creativity
D) higher taxes
E) multiple distribution systems
A ________ is a process that determines what information marketing managers need
and then gathers, sorts, analyzes, stores, and distributes relevant and timely marketing
information to users.
A) primary data collection system
B) secondary data collection system
C) competitive intelligence system
D) marketing research project
E) marketing information system
In firms with multiple SBUs, the first step in strategic planning is for top management
to ________.
A) recruit and hire the right personnel
B) examine historical data
C) establish a mission for the entire corporation
D) allocate resources to the company’s various SBUs
E) establish marketing’s short-term objectives
The value of something we give up in order to obtain something else is referred to as
a(n) ________.
A) transformation cost
B) opportunity cost
C) exchange
D) variable cost
E) marginal cost
Which of the following is an advantage of using cost-based pricing methods?
A) They consider external factors such as competition.
B) They include consideration of the effects of demand.
C) They are relatively simple to calculate.
D) They make accurate cost estimating a simple process.
E) They take the product life cycle into consideration.
When a beverage maker came out with a new drink and priced it at half price for a
month to attract buyers, the company was using a(n) ________ strategy.
A) penetration pricing
B) skim pricing
C) everyday low price
D) trial pricing
E) price leadership
Serengeti makes lightweight sunglasses with 100 percent UV protection for people who
love to hunt, hike, and bike ride. Its long-term plans include the development of lenses
that, in addition to protecting users from UV rays, will also have effective
water-sheeting action to reduce lens spotting. This new feature will be valuable to
people who fish. Serengeti has determined that fishing is one of the fastest growing
sports in the United States. In terms of a SWOT analysis, Serengeti has recognized a
market ________.
A) weakness
B) strength
C) threat
D) opportunity
E) trend
Market planning is followed by the ________, which details how the plan will be
carried out, outlining the day-to-day execution.
A) operational plan
B) time line
C) SWOT analysis
D) strategic plan
E) marketing metric
Valeo Fashions has just introduced a new line of fashion dresses for teens. The line will
initially enter the market at high prices in a ________ strategy.
A) penetration pricing
B) skimming pricing
C) price leadership
D) yield management pricing
E) value pricing
Which of the following is a strategy that involves a company “ambushing” consumers
with promotional content in places consumers would typically not expect to see
information about a product or service?
A) sales promotion
B) guerrilla marketing
C) sponsorships
D) internal PR
E) crowdsourcing
Which of the following is general information collected by specialized firms on a
regular basis and then sold to other firms?
A) syndicated research
B) custom research
C) competitive research
D) perceptual tracking
E) marketing decision support research
Although much of the equipment used by dentists is thrown away after one use, many
of the instruments used to clean teeth, fill cavities, and deal with impactions and other
dental problems are made of steel and must be sterilized. A dentist is considering
replacing his conventional steam sterilizer with a chemical sterilizer that cleans without
rusting or corroding instruments. Because the dentist is already familiar with sterilizers,
he is looking to find the best price possible on a chemical sterilizer. He is engaged in a
________.
A) straight rebuy
B) customer-reference purchase
C) modified rebuy
D) reciprocal purchase
E) reverse marketing purchase
The sales peak typically occurs during which stage of the product life cycle?
A) introduction
B) youth
C) development
D) maturity
E) leveling
V&E Bridal Design Shop caters to engaged couples who desire a traditional Eastern
Asian wedding ceremony. The brides-to-be who shop at this store are typically
Japanese, Laotian, Vietnamese, Korean, or Chinese. This retailer has used ________ to
identify a market segment.
A) psychographics
B) geography
C) demographics
D) socioeconomics
E) its merchandise mix
Identifying and targeting market segments that may be as small as just one individual is
known as ________.
A) geotargeting
B) micromarketing
C) psychographic segmenting
D) geodemography
E) usage segmenting
SwimFit produces gear for swimmers, including suits, goggles, swim caps, and ear
plugs. SwimFit wants to improve the quality of its goggles to match or surpass the
quality of the product category leader. Which of the following is SwimFit most likely to
use to find out more about how its competitor’s product is made?
A) syndicated research
B) customer insights
C) predictive technology
D) mystery shoppers
E) reverse engineering
________ is the extent to which research actually measures what it was intended to
measure.
A) Flexibility
B) Validity
C) Responsiveness
D) Reliability
E) Representativeness
Disadvantages of ________ are that hackers can influence research and competitors can
learn about marketing firms’ plans.
A) mail surveys
B) telephone surveys
C) mall intercepts
D) focus groups
E) online research
Through the data mining application of ________, marketers target promotional
strategies based on the records of which customers have recently purchased certain
products.
A) customer retention
B) customer loyalty
C) customer acquisition
D) customer abandonment
E) market basket analysis
Tony Pool Chemical Co. purchased 144 buckets of chlorine tablets over the Internet
from Chemical, Inc., then placed the order with the manufacturer and arranged for its
transportation by truck to the Tony Pool store. Chemical, Inc. took title to the pool
chemicals but never actually took possession of them. Chemical, Inc. is an example of a
________.
A) drop shipper
B) truck jobber
C) rack jobber
D) mail-order wholesaler
E) cash-and-carry wholesaler
What is market fragmentation? Why is market fragmentation of concern to marketers?
Describe how nonstore retailing has recently grown.
The cosmetics giant L’Oreal offers several product lines at a variety of prices. It targets
the luxury market with its brand Helena Rubinstein, while less expensive offerings such
as Elseve are targeted to large department stores and discounters. Is this practice a
differentiated targeting strategy or an undifferentiated targeting strategy? Explain your
answer.
Tropicana Essentials Healthy Heart targets consumers who like orange juice and who
also want extra vitamins but no sodium. Explain how Tropicana uses behavioral
segmentation in this example.
If demand is elastic, will sellers consider lowering their prices? Explain your answer.
In what way might a marketer rely on opinion leaders?
What must marketers do during the marketing strategy development phase of the
new-product-development process?
Discuss how the principles of marketing can be applied to people.
Explain how a marketer determines whether an identified market segment is viable.
What promotional efforts would a marketer be likely to employ if the communication
objective was to encourage purchase of the product?
Compare and contrast proactive public relations activities and crisis management.
Saturn car company started a trend with its value pricing strategy of giving customers
one price and one price only. The Saturn website gave detailed price information
without the need for or involvement of a salesperson. What pricing objective did Saturn
use?
The U.S. government proposed a tariff against some Chinese textiles and clothing when
the trade deficit with China reached $103 billion. Explain what the United States was
trying to achieve through this action.
Identify the four Ps in the following description: Rosa Alvarez markets 23 different
varieties of salsa in 8-ounce and 12-ounce bottles at supermarkets in the southwestern
United States. The 8-ounce bottle sells for $5.95, and the larger size sells for $7.95.
Periodically, she sets up a table in one of the marketplaces that carries her salsa brand
and offers customers a sample. She recently received considerable publicity for being
the “Hispanic Entrepreneur of the Year.”
Give three examples of modern marketplaces.
Explain why it is often difficult to measure the value of marketing activities.