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Marketing researchers can conduct their own searches of secondary data sources by
using mail questionnaires and interviewing individuals.
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A market is the set of actual and potential buyers of a product or service.
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Subcultures consist only of religious groups.
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Cost-based pricing is often product driven.
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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.
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Multibranding offers a way to establish different features that appeal to different
customer segments, lock up more reseller shelf space, and capture a larger market share.
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Product value analysis is an approach to enhancing productivity.
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Sense-of-mission marketing means that the company should define its mission in broad
social terms rather than narrow product terms.
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If used infrequently, price promotions create "deal-prone" customers who wait until
brands go on sale before buying them.
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Direct marketing includes catalogs, direct-response TV, kiosks, the Internet, and mobile
marketing.
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The percentage-of-sales method wrongly views sales as the cause of promotion rather
than as the result.
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During the presentation step of the selling process, the salesperson tells the "value
story" to the buyer, showing how the company's offer solves the customer's problems.
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Social media marketing can be inexpensive for companies to use.
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The demand for many business goods tends to change more slowly than the demand for
consumer goods.
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A good competitor plays by its own rules at the expense of the industry as a whole.
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Gatekeepers have formal or informal power to select or approve the final suppliers.
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If a firm moves into joint ventures and direct investments, it will eventually need to
create an export department.
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Creating a brand-marketing event or serving as a sole or participating sponsor of events
created by others is known as event marketing.
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Overhead costs are costs that do not vary with production or sales level.
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The uniform-delivered pricing strategy means that goods sold are placed free on board a
carrier with the customer paying the freight from the factory to the destination.
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GreenTree Lawn and Garden Products is engaged in marketing strategy development.
The first part of the marketing strategy statement created by management should outline
the product's planned price, distribution, and marketing budget for the first year.
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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.
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A demand curve shows the number of units the market will buy in a given time period
at different prices that could be charged.
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The exchange of U.S. wheat for Russian vodka would be an example of barter.
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Concept testing works best with people who are familiar with the new idea and the new
product's purpose. This generally includes top management, the sales force, and
research and development.
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Return on marketing investment refers to the net return from a marketing investment
divided by the costs of the marketing investment.
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Consumers can never buy functional versions of highly promoted branded products at
lower prices.
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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.
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Experimental research is best suited for gathering descriptive information.
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To avoid too few new product ideas and the failure of many good ideas, management
should implement an innovation management system that collects, reviews, evaluates,
and manages new product ideas.
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The marketing mix refers to the set of marketing tools the firm uses to implement its
marketing strategy.
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Niche marketing involves tailoring brands and promotions to the needs and wants of
local customer groupscities, neighborhoods, and even specific stores.
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Companies stretch downward to add prestige to their current products.
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Markup pricing is popular because when all firms in the industry use this pricing
method, prices tend to be similar, so price competition is minimized.
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Which of the following is most likely a disadvantage of focus group interviewing?
A) Focus group interviewing does not connect secondary data with primary data.
B) Focus group interviewing is less flexible compared to mail questionnaires.
C) Consumers in focus groups are always open and honest about their real feelings,
behaviors, and intentions in front of other people.
D) Focus group interviewing involves small samples to keep time and costs down,
which makes it hard to generalize from the results.
E) The moderator in a focus group interview has poor control over the group of
respondents.
Answer:
Blue Fizz Inc. sponsors every race that takes place at the Sears Racing Track in Orange
County, California. The high-octane racing at Sears is perfect for Blue Fizz to sell its
energy drinks and to establish the desired brand image of the company. Which type of
promotion is evident here?
A) event marketing
B) mass marketing
C) point-of-purchase promotion
D) solution selling
E) advertising specialties
Answer:
________ represent(s) consumers' perceptions and feelings about a product and its
performance.
A) Product lines
B) Labeling
C) Brands
D) Design
E) Product attributes
Answer:
To break through the clutter, many marketers have subscribed to a new merging of
advertising and entertainment, dubbed ________.
A) Madison & Vine
B) Wall St. & Fifth Ave
C) buzz marketing
D) podcasting
E) webisodes
Answer:
Which of the following statements is true of viral marketing?
A) Marketers have significant control over where their viral messages end up.
B) Viral marketing gives consumers online places to congregate, socialize, and
exchange views.
C) Because customers find and pass along the message, viral marketing can be very
inexpensive.
D) In viral marketing, links appear alongside search engine results on sites such as
Google and Bing.
E) Viral marketing messages are blocked by most search engines, security software, and
social networking sites.
Answer:
Critics charge that promotion adds only ________ to a product.
A) functional value
B) psychological value
C) moderate value
D) strategic value
E) qualitative value
Answer:
Which of the following would be considered predatory pricing?
A) a company that prices it products below cost to get rid of a surplus
B) a company that prices below cost to drive out competitors
C) a company that offers a volume discount
D) a company that offers the suggested retail price on the manufacturer's package
E) a company that offers real-time pricing online
Answer:
Which of the following best describes the role of a product steward?
A) to protect employees and laborers from harm
B) to evaluate new product ideas against a set of general criteria
C) to develop a new product concept into a physical product
D) to protect consumers from harm and the company from liability
E) to decide whether to maintain, harvest, or drop the product in the decline stage of the
PLC
Answer:
Which of the following characterizes emerging economies?
A) Industrialization typically creates a new rich class and a growing middle class, both
demanding new types of imported goods.
B) They trade goods among themselves and also export them to other types of
economies for raw materials and semifinished goods.
C) Most African countries fall into this category.
D) They consume most of their output and barter the rest for simple goods and services.
E) These countries are the best markets for large equipment, tools and supplies, and
trucks.
Answer:
Firms that serve small segments not being pursued by other firms are called ________.
A) market followers
B) market mavens
C) market challengers
D) market nichers
E) market leaders
Answer:
Customer information is often buried deep in separate databases and records of different
company departments. To overcome such problems, many companies are now turning
to ________ to manage detailed information about individual customers.
A) neuromarketing
B) customer needs marketing
C) customer relationship management
D) ethnographic research
E) netnography research
Answer:
Robert has taken up cycling as a hobby and as a way to maintain his physical fitness.
He wants to buy a hydration system since he will need a lot of water as he cycles.
Having gathered a great deal of information, he has finally narrowed down his choices
to three systems: Waterbags for Roadies, Supertanker Hydropacks, and Fast Water.
Robert is in the ________ stage of the buyer decision process.
A) need recognition
B) evaluation of alternatives
C) product trial
D) postpurchase evaluation
E) information search
Answer:
Refer to the scenario below to answer the following question(s).
Essential-Beauty is a rapidly growing firm that manufactures women's makeup,
perfumes, and nail-care products. The company has established itself as a high-end
cosmetic product brand available at most national drug stores. In the past, almost all of
the advertising for Essential-Beauty has been in women's fashion magazines.
The firm is now launching a new line of skin care products, ranging from facial
cleansers to body lotion. These products are designed to be marketed to a broader
audience, so the marketing team is exploring the effectiveness of different promotional
mixes.
Essential-Beauty considers one of its most important competitors to be Look-Lovely,
another marketer of high-end makeup and skin care products sold in drug stores. Based
on this, it is most accurate to say that Look-Lovely and Essential-Beauty are both
________.
A) niche marketers
B) in the same strategic group
C) distant competitors
D) overall cost leaders
E) market followers
Answer:
Each company must divide up the total market, choose the best segments, and design
strategies for profitably serving chosen segments. This process involves market
segmentation, ________, differentiation, and positioning.
A) market targeting
B) marketing implementation
C) supply-chain analysis
D) price discrimination
E) market diversification
Answer:
Travis Computing Systems earns most of its revenue from sales and in-person computer
services. The sales force at Travis recently began telemarketing and Web selling. How
would telemarketing and Web selling most likely benefit Travis?
A) The need for an outside sales force would be completely eliminated through
telemarketing.
B) Travis sales reps would be able to engage in more frequent face-to-face interaction
with large, high-value customers.
C) Travis sales reps would be able to service hard-to-reach customers more effectively.
D) The overhead costs of Travis would significantly decrease.
E) The current liabilities of Travis would decrease.
Answer:
Overhead costs ________ as the number of units produced increases.
A) decrease
B) increase steadily
C) fluctuate
D) remain the same
E) increase rapidly
Answer:
Critics have accused some producers of practicing ________ by using materials and
components that will break, wear, rust, or rot sooner than they should.
A) high-pressure selling
B) short-term planning
C) planned obsolescence
D) nonfunctional warranty
E) deceptive promotion
Answer:
________ includes all activities involved in selling goods and services to those buying
for resale or business use.
A) Wholesaling
B) Retailing
C) Franchising
D) Discounting
E) Showrooming
Answer:
Using ________, retailers can share real-time data on sales and current inventory levels
with suppliers.
A) automated storage and retrieval systems (ASRS)
B) vendor-managed inventory (VMI) systems
C) transportation management systems (TMS)
D) warehouse management systems (WMS)
E) distribution center management systems (DCMS)
Answer:
Which of the following involves costs that most likely occur during the
commercialization stage of new product development?
A) building or renting a manufacturing facility
B) paying target customers for product feedback
C) determining the product's planned distribution
D) developing a prototype of the product
E) identifying target markets
Answer:
Following the change in consumer values and consumption patterns after the Great
Recession, marketers have changed their marketing strategies to emphasize the
________ of their products.
A) image
B) value
C) durability
D) safety
E) uniqueness
Answer:
Which of the following involves computerized, digitized sales force operations that let
salespeople work more effectively anytime, anywhere?
A) SWOT analysis
B) BCG matrix
C) digital marketing system
D) sales force automation system
E) field service management system
Answer:
Excel Enterprises uses a Web site, online social networks, and print advertisements to
promote its products. Since Excel Enterprises practices integrated marketing
communications, all these different brand contacts maintain ________ in design and
tone.
A) variety
B) simplicity
C) creativity
D) consistency
E) flexibility
Answer:
Which of the following is most likely to be the consequence of increased growth of
global trade?
A) Home markets become richer in opportunities.
B) Foreign firms expand aggressively into new international markets.
C) Global competition is curbed.
D) Industries become safe from foreign competition.
E) Domestic companies increase their chances to dominate their home markets.
Answer:
________ are a form of product that consists of activities, benefits, or satisfactions
offered for sale that are essentially intangible and do not result in the ownership of
anything.
A) Liabilities
B) Services
C) Brands
D) Consumer products
E) Specialty products
Answer:
________ and ________ do not take title to goods, and they perform only a few
channel functions.
A) Full-service wholesalers; limited-service wholesalers
B) Brokers; agents
C) Industrial distributors; cash-and-carry wholesalers
D) Cash-and-carry wholesalers; industrial distributors
E) Rack jobbers; off-price retailers
Answer:
Leicestershire Renovations has a history of problems with customers who do not pay
their bills on time. Leicestershire Renovations wants to improve its cash situation,
reduce bad debts, and reduce credit-collection costs. Which of the following forms of
pricing would most likely help the firm achieve its goal?
A) by-product pricing
B) zone pricing
C) cash discounts
D) product bundling
E) quantity discounts
Answer:
The New Age Gallery has three admission prices for students, adults, and seniors, even
though all three groups are entitled to the same services. This form of pricing is called
________ pricing.
A) psychological
B) product form
C) customer-segment
D) captive product
E) by-product
Answer:
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
Answer:
In response to price cuts from competitors, a cereal company with several more
expensive and higher quality cereals introduced a lower-priced option to its product
line. This is an example of which of the following responses to a competitor's price cut?
A) raising the perceived value of a product
B) improving product quality
C) accepting a reduced market share
D) launching a "fighter brand"
E) using high-low pricing
Answer:
In a(n) ________ channel, the same member both produces and distributes a product or
service to consumers.
A) tiered
B) direct
C) platform
D) vertical
E) exclusive
Answer:
Jacob Engineering Group views and organizes its marketing activities from the
viewpoint of its buyers. Management works hard to sense, serve, and satisfy the needs
of its well-defined group of buyers. What does Jacob Engineering Group practice?
A) consumer-oriented marketing
B) societal marketing
C) sense-of-mission marketing
D) customer-value marketing
E) innovative marketing
Answer:
A company's marketing communications mixalso called its promotion mixblends five
different components. List and define these components.
Answer:
Name two of the five indicators of market potential and provide an example of each.
Answer:
What role does message format play in print advertisements?
Answer:
Sensenig Propeller manufactures replica antique wooden airplane propellers. In the
process of production, the company generates a great deal of scrap hardwood. How can
using by-product pricing benefit the company?
Answer:
Briefly explain the major sales promotion tools.
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What does a company focus on when using an undifferentiated marketing strategy?
Answer:
Discuss two ways a market challenger can best attack the chosen competitor and
achieve its strategic objectives. Explain when a challenger should use these attacks and
provide examples of companies that have used these methods.
Answer:
What elements may help to create a product image?
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Explain the concept of the price floor.
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Describe how nonstore retailing has grown in the past decade.
Answer:
Internet marketing practices have raised a number of ethical and legal questions. Why is
invasion of privacy perhaps the number one online marketing concern?
Answer:
Why are more companies using team selling? What are its pros and cons?
Answer:
Explain the significance of a downward-sloping experience curve.
Answer:
Why do marketers value opinion leaders?
Answer:
Give an example of a slice-of-life message execution style.
Answer:
Explain what marketers can expect from individuals in the customer relationship group
classified as "butterflies."
Answer:
Why should mission statements be market oriented instead of product or technology
oriented?
Answer:
