A loyal customer is, by definition, the most profitable kind of customer.
Brands are less important in the business-to-business environment than in the
business-to-consumer environment.
A company may have multiple business plans for its product portfolio.
It is logical to expect that management would choose to implement the marketing
campaign with the lowest financial return that meets marketing objectives.
Retailers and wholesalers who have created their own brands such as Walmart’s Sam’s
Choice beverages and food products are participating in co-branding.
A Universal Product Code (UPC) is a retail bar code that can be used to monitor
inventory.
A retail Web site where consumers can purchase goods from producers is an example of
a market.
Private label brands have traditionally dominated the brand choices available to
consumers at retail stores.
Marketing is limited to physical products.
Differentiated marketing is also known as multisegment marketing.
Segmenting business markets requires a much greater level of complexity than
segmenting consumer markets.
A percentage-of-sales-revenue approach to setting a media budget is more complex than
a task-and-objective approach.
Some consumers use multiple types of media at the same time.
Category managers today have responsibilities that tend to include those that had been
traditionally handled by brand managers.
Introducing a new product to an established market segment through a unique
positioning requires a thorough understanding of market competitors and their products.
A company operating in the business market may find it useful to segment possible
customers based on their level of risk aversion.
Wholesaling includes all the activities involved in selling products or services directly
to final consumers for their personal, nonbusiness use.
A business that practices a marketing orientation does not need to consider elements
beyond the 4 Ps of the marketing mix.
Retailers first must position themselves in a market and then decide how they will
define the target customers in these markets.
As a general rule, about 20% of a company’s customers generate a loss instead of a
profit for the company.
Adrena Brown works in real estate, earning commissions when she brings a buyer and
seller together and assists in the negotiation process. Adrena Brown is a selling agent.
Virtually every salesperson follows the personal selling process to recruit new business.
Some retailers use vending machines to sell products that previously could not be
stocked due to security concerns.
GDP stands for Gross Domestic Population.
A business objective should include a specific time frame for achieving the objective.
Innovators tend to be better off financially than other adopter groups.
The emotional experience that a customer has with a purchase will be either positive or
negative.
Attributes are the least desirable level for brand positioning because competitors can
easily copy attributes and customers are more interested in what attributes will do for
them than in the brand itself.
When a marketing manager decides to run a quarter-page ad in the business section of
the local newspaper to promote goodwill toward his company, he is executing part of a
tactical plan.
One purpose of reminder advertising is to encourage repeat purchasing.
A business manager would use the Boston Consulting Group matrix to conduct a
thorough marketing audit.
One of a company’s many external marketing participants is the government.
By definition, products that are promoted through green marketing are organic.
The marketing mix most commonly consists of product, price, place, and positioning.
Department stores carry only a few product lines with wide assortments within those
lines.
Consumerism is a movement that began in the twenty-first century.
What is the following an example of? “To busy, mobile professionals who need to
always be in the loop, BlackBerry is a wireless connectivity solution that gives you an
easier, more reliable way to stay connected to data, people, and resources while on the
go.”
A. brand position statement
B. service differentiation
C. a perceptual map
D. brand optimization
E. niche marketing
Which of the following is NOT necessarily a skill or quality possessed by an ideal
salesperson candidate?
A. the ability to work as part of a team
B. the ability to work independently
C. management experience
D. strong listening skills
E. strong personal skills
Which of the following is true about sales branches, sales offices, and manufacturers’
showrooms?
A. They are all manufacturer-owned intermediaries.
B. They all determine the marketing strategy for the products they sell.
C. They are all independent intermediaries.
D. They all carry inventory and take title to the inventory they carry.
E. They perform the same functions as self-service wholesalers.
Consider a situation in which there is 90% unaided awareness for a brand of athletic
shoes, with purchases of 75%. Which of the following best describes the purchase
funnel for this scenario?
A. very wide at the top and narrow at the bottom
B. very narrow at the top and wide at the bottom
C. very narrow and vertical
D. very wide and vertical
E. very wide and horizontal
A contribution margin is defined as ________.
A. the difference between variable costs and fixed costs
B. the difference between demand with promotions and without promotions
C. the perceived value added by marketing mix elements
D. the gap between price and fixed cost
E. the gap between price and variable cost
The red letter “K” that appears on all Kellogg’s cereal boxes is an example of a
________.
A. brand valuation
B. brand license
C. trade character
D. brand
E. co-brand
Refer to the scenario below to answer the following questions.
Most people laughed when Evelyn Ringler explained her product idea: a solar-powered
vacuum cleaner. But the concept was practical and the technology used in the vacuum
was the same as that used in many children’s toys. After setting up a demonstration
booth in a mall in a Chicago suburb, Evelyn felt more assured than ever that her idea
would be a hit. Consumers seemed receptive and offered helpful pieces of advice, such
as how much they would pay for the vacuum, what colors they would prefer, and why
they would not buy the vacuum.
The vacuum itself was dome-shaped, something like a small saucer, with a filter bag on
top and sensory nodes along the edges. After being charged in the sunlight, the vacuum
could run for 10 hours, covering a floor area of 600 square feet. As the apparatus lightly
bumped into table legs, chairs, and so on, the sensory nodes allowed the vacuum to
move around the objects in various directions. This is the same type of technology used
in the manufacturing of children’s race cars and walking dolls.
Evelyn knew that the solar-powered vacuum would be especially helpful to both elderly
consumers, who may have a more difficult time with vacuuming, and on-the-go
consumers who lead busy lives. The price would be above average but would likely
drop after Evelyn recouped some of her costs.
After a 500-unit production run and a substantial financial investment, Evelyn Ringler
set up a test market in a Chicago mall and in an appliance store in New Jersey. “It’s such
a novel idea,” Evelyn added. “People will notice it, even if they don’t buy it right away.”
Evelyn’s vacuum is at the ________ stage of the product life cycle.
A. innovation
B. introduction
C. growth
D. adoption
E. maturity
Which of the following is an example of a KPI?
A. reach
B. frequency
C. media engagement
D. media footprint
E. average revenue per customer
Which of the following are two major forms of direct-response television marketing?
A. dynamic imaging and direct-response TV
B. home shopping channels and infomercials
C. home-selling and direct selling
D. call-in response and Web-site response
E. home shopping channels and life cycle marketing
In the generally accepted stages of the business buying process, the step following the
description of the characteristics of the item and the quantity needed is the ________.
A. acquisitions of proposals
B. search for and qualification of potential sources
C. recognition of the organization’s problem or need
D. determination of the characteristics of the needed item
E. selection of an order routine
Refer to the scenario below to answer the following questions.
Jason West, owner of A-1 Cleaning, began his enterprise in 2009. Jason’s primary focus
had been on office cleaning for large corporations. But in recent months Jason saw a
decline in demand for office cleaning. Surprisingly, the competitive environment
appeared relatively stable with no new competitors. However, Jason understands that
office cleaning is a high-frequency service that is usually performed daily; therefore,
competitors must have been doing something to attract his customers. Building a
competitive advantage seemed to be the only option to offset competition. But as Jason
pondered his dilemma, he realized that he needed to better understand how customers
assess service quality and what they are looking for in a superior cleaning service, prior
to building his competitive advantage.
Jason developed a research plan. First, he gathered competitor information, primarily
through pamphlets and Web sites and also from a few phone calls, to find out exactly
what competitors offer in their cleaning packages. In addition, Jason obtained from the
area Chamber of Commerce an updated list of local corporations to which he would
send a short survey.
Though the list of corporations contained 141 local company names, Jason chose to
survey 75 of them. To better understand customer service expectations between both
small and large corporations, Jason divided his surveys into two categories. The survey
questions were designed to extract specific data from respondents with regard to service
quality expectations in correlation to service frequency and price.
Jason awaited the results. Though his primary focus had been on large corporations, he
was flexible and would aim his efforts differently if needed.
In this scenario, which of the following is an example of primary data?
A. the list of local corporations from the Chamber of Commerce
B. competitor information gleaned from pamphlets
C. responses to the 75 surveys
D. the names of the 75 companies that received surveys
E. competitors’ Web sites
It is most accurate to say that a consumer’s negative feeling about a purchase is the
result of a product’s performance not living up to ________.
A. its warranty
B. the company’s expectations
C. the customer’s expectations
D. social expectations
E. its fair value
A(n) ________ is defined as a bundle of attributes that delivers benefits to consumers.
A. core benefit
B. service variability
C. portfolio
D. product
E. augmented product
Ethnographic research ________.
A. comes from traditional focus groups
B. is gathered where people live and work
C. provides secondary data
D. is a type of quantitative research
E. provides data to marketers when observation is impossible
Which of the following statements about the services provided by retailers is true?
A. Discount stores are full-service retailers.
B. Convenience stores are unlikely to be full-service retailers.
C. Superstores are typically full-service retailers.
D. Walmart, Target, and Kohls are all examples of self-service retailers.
E. Only a few stores are actually classified as full-service retailers.
Communication of a USP can provide a good foundation for successful positioning.
What does USP stand for?
A. unique selling product
B. unique services practice
C. unique sales pitch
D. unique selling proposition
E. unique strategic practice
The balanced scorecard considers ________ measures.
A. only financial
B. only nonfinancial
C. both financial and nonfinancial
D. only internal
E. only external
BRIC countries are driving forces behind globalization because of their ________.
A. steadily weakening exchange rates
B. relatively inexpensive labor markets
C. well-established upper classes
D. unregulated stock markets
E. strategic geographic locations
In the AIDA model, the D stands for ________.
A. demand
B. desire
C. data
D. do-it-yourself
E. decoding
The Four Ps are ________.
A) price, product, place, and promotion
B) the tactics used to connect services and products
C) product, production, possession, and promotion
D) the steps used to identify target markets
E) the four classifications of consumer goods
In February 2000, the United States imposed a tax on imported steel in an effort to
protect about 5,000 U.S. jobs. Another name for this levied tax is a(n) ________.
A. embargo
B. balance of trade
C. tariff
D. quota
E. exchange control
Which of the following is an advantage offered by local newspapers?
A. long life
B. high pass-along rate
C. high quality images
D. timeliness
E. increasing readership
The ________ is a document that describes how an advertiser plans to spend its media
budget to reach its objectives.
A. media audit
B. ad trafficker
C. rate card
D. media placement
E. media plan
The projected sales for a product or service for any price customers are willing to pay is
charted by the ________.
A. demand curve
B. variable cost
C. target cost
D. break-even pricing
E. experience curve
Customer perceived value is defined as the difference between the ________ and the
________ of a product.
A. actual value; retail value
B. retailer’s value; producer’s costs
C. actual costs; perceived costs
D. perceived benefits; perceived costs
E. actual benefits; actual costs
To approximate and compare the relative impact of media decisions, media planners use
________.
A. media engagement
B. ad traffic plans
C. impressions
D. gross rating points
E. circulation
While preparing the marketing plan for a new product line called Nature & Nurture,
Jonas wrote the following: “Nature & Nurture toys provide learning experiences that
stimulate young children’s senses and open up a world of discovery for the youngest of
learners.” This statement belongs in the ________ section of the marketing plan.
A. company description, purpose, and goals
B. marketing situation
C. competitive overview
D. measurement and controls
E. forecasting
The most widely used form of transport is ________.
A. water
B. air
C. truck
D. pipeline
E. rail
Information collected through CRM is stored in a ________.
A. customer database
B. data mine
C. marketing mix
D. loyalty program
E. balance sheet
At Kearns, Inc., the management team has decided to improve its use of marketing
measurement. Rachel Brown has been charged with overseeing the process issues
related to marketing measurement. Which of the following is Rachel most likely
responsible for?
A. assigning sales people to key customers
B. creating the media plan
C. determining a bonus structure for effective use of measurement data
D. assigning members of the IT department to manage the CRM program
E. hiring researchers to analyze data and develop insights
Which of the following is NOT an element involved in the creation of store
atmospherics?
A. color
B. furnishings
C. fixtures
D. sounds
E. knowledgeable personnel
A retail margin is the difference between ________ and ________.
A. the volume of merchandise ordered; the volume of merchandise sold
B. the revenue generated by a retailer in a year; the taxes paid by a retailer in that same
year
C. the retailer’s operating expenses; the retailer’s revenue
D. a product’s retail selling price; a product’s wholesale cost
E. a product’s wholesale cost; a product’s mark-up
A film company has a high market share in the market of children’s films. However, the
children’s film market is a relatively stable, low growth market. This film company
would be classified as a(n) ________ using the BCG matrix.
A. exclamation mark
B. dog
C. cash cow
D. star
E. question mark
Which business buying situation is the marketer’s greatest opportunity? Why?
How might a marketer of pens alter the “product” portion of the marketing mix when
targeting female college students versus male college students?
In a brief essay, explain the major weaknesses of exclusively using a direct marketing
strategy.
Explain how analyzing customer information from a database might help a car-maker in
the process of customer relationship management (CRM).
Describe the three different levels of a product.
Briefly explain how brands influence purchase decisions in consumer markets.
Explain how a channel can provide a marketer with contact efficiency.
Briefly compare and contrast the three general categories of research design.
Identify and briefly describe the four primary elements of a marketing information
system.
Social factors exert a broad and deep influence on consumer behavior. The marketer
needs to understand the role played by the buyer’s culture, subculture, and social class.
Compare the roles of culture, subculture, and social class.
How is joint venturing more risky and complex than merely exporting?
Why would a producer use wholesalers rather than selling directly to retailers or
consumers?
Explain why a consumer may decide not to purchase a product or service she wants
even though it offers a significant consumer’s surplus.
The Enron company committed major accounting fraud by hiding hundreds of millions
of dollars of debt. As a result, many shareholders lost substantial savings. Identify three
norms in the Marketing Ethics Code that Enron violated.
What is the difference between corporate social responsibility and the social marketing
concept?
Provide an example of behavioral targeting.