Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
Market offerings are limited to physical products.
Gary Hirshberg started the Stonyfield Farm yogurt company. His marketing strategy:
building a casual bond with customers using guerilla marketing. This is an example of
formulated marketing.
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.
Habitual buying behavior involves consumers searching extensively for information
about brands and evaluating brand characteristics.
The life cycle of new retail forms is getting longer.
A product's position is the place it occupies relative to competitors' products in
consumers' minds.
Experimental research is best suited for gathering descriptive information.
Which of the following product offerings is intangible?
A) a package of laundry detergent
B) an ink cartridge for a printer
C) a wool jacket
D) a gold ring
E) a taxi ride
Cravenshaw Metalworks has witnessed a rise in the number of its industrial customers
in recent years. The company uses different groups of people from the sales, marketing,
technical support and finance departments for servicing large, complex accounts. In this
instance, Cravenshaw Metalworks uses ________ in order to enhance the quality of its
customers' buying experience.
A) product differentiation
B) team selling
C) competitive marketing intelligence
D) satisficing
E) e-procurement
Which of the following is most likely true about using a pulsing schedule for an ad?
A) The ads would achieve maximum awareness.
B) The costs of advertising would be low.
C) The only effective medium would be radio.
D) The ads would negatively affect the image of the brand.
E) The ads would lack flexibility.
________ means that services cannot be seen, tasted, felt, heard, or smelled before they
are bought.
A) Service inseparability
B) Service variability
C) Service intangibility
D) Service perishability
E) Service heterogeneity
Which of the following states the product's membership in a category and then shows
its point of difference from other members of the category?
A) a mission statement
B) a vision statement
C) a general need description
D) a positioning statement
E) an order-routine specification
Which of the following statements is true about creating customer loyalty and
retention?
A) Losing a customer means losing the entire stream of purchases that the customer
would make over a lifetime of patronage.
B) Customer delight creates a rational preference and not an emotional relationship
with the brand.
C) The aim of customer relationship management is to focus solely on customer delight.
D) Losing a customer hardly makes a difference to a company's sales.
E) The aim of customer relationship management is to focus solely on customer
satisfaction.
Amor, a successful brand of women's clothing, recently introduced a line of fitness
equipment. This is an example of ________.
A) mass customization
B) niche marketing
C) diversification
D) prospecting
E) product adaptation
Which of the following statements reflects the marketing concept?
A) focusing on making continuous product improvements
B) undertaking a large-scale selling and promotion effort
C) emphasizing an inside-out perspective
D) considering customer focus and value as the paths to sales and profits
E) focusing on a product-centered make-and-sell philosophy
According to the text, the search for new-product ideas should most likely be
________.
A) intermittent
B) holistic
C) segmented
D) compartmentalized
E) flexible
Fun-Spot Fun Park began as a small amusement park in 1985. With nothing more than a
merry-go-round, a slide, pony rides, and an ice cream stand, Fun-Spot grew into a
popular family attraction with 20 rides, a restaurant, and an outdoor performing arts
theater.
"My wife, Gail, and I didn't know what we were getting into," commented Ron Hart,
the owner. "We just knew that weekenders coming to the lakes in our rural area
represented an untapped market."
Today, thousands of visitors flock to Fun-Spot: families, children of all ages, and even
senior citizens who enjoy strolling through the gardens and the arbors.
"There's something here for everyone," Gail Hart said with a smile. "Dozens of
companies hold annual company picnics here. We have welcomed class field trips. And
we even had one wedding here at the park!"
"Here's the funny thing," Ron chimed in. "We really don't know why we've been so
successful. There is nothing else like Fun-Spot Fun Park in the area. We were just
lucky."
"I think it's the ambience of the park that has brought so many visitors," Gail added.
"We provide a 'total package' of entertainment. Plus, we try to change our rides and
various attractions from time to time for variety."
Ron and Gail Hart admitted that making every visitor happy is a priority. "That has
always been our philosophy," they said. "Like the park's motto at the entrance reads,
'We're here to make you happy!' And we've always been able to deliver on that because
we've never allowed ourselves to grow too big too quickly."
Ron and Gail plan to lower prices in an effort to encourage customers to stay longer,
visit more often, and spend more money during each visit. What type of strategy are
Ron and Gail planning?
A) market penetration
B) market development
C) product development
D) product adaptation
E) diversification
The Bookworm began delivering books directly to customers through mail instead of
selling through "brick-and-mortar" companies. This is an example of ________.
A) indirect marketing
B) disintermediation
C) franchising
D) exclusive distribution
E) intensive distribution
Which of the following is true of price skimming?
A) It is effective in situations in which competitors are able to undercut prices easily.
B) It can be profitably used when the product's quality and image support its price.
C) It involves underpricing products so that companies make larger sales.
D) It is ineffective in situations in which competitors are unable to enter the market
easily.
E) It leads to a situation in which the company makes more, though less profitable,
sales.
Reliable Tools Company is a manufacturer of hubs and axles for the trailer and heavy
truck industry. Although Reliable Tools only has 15 customers, the company is the sole
supplier of hub and axle components to those customers. Monthly sales at Reliable
Tools are approximately $1 million. "You might say we have all our eggs in one
basket," says owner Arthur Deetz.
It is critical that a competent sales force be maintained in order to nurture those few but
large accounts. Ninety-five percent of Reliable Tools' customers are located in
Michigan, Ohio, and Indiana, which means that travel time to all customers is relatively
short. However, given the nature of the industry, time spent with each customer is
crucial.
Which of the following promotions would be most appropriate for Reliable Tools to use
in its attempt to promote its products and generate new business leads?
A) rebates and price packs
B) premiums
C) specialty advertising
D) samples
E) conventions and trade shows
Compare a conventional distribution channel with a vertical marketing system (VMS).
What is observational research and when is it used?
Why is predatory pricing considered illegal?
Briefly explain mass customization.
What is horizontal conflict? Illustrate your answer with an example.
Why should a salesperson set call objectives?
Compare the consumerism and environmentalism movements.
