A company’s channel decisions directly affect the prices of its products.
Gender segmentation has long been used in clothing, cosmetics, toiletries, and
magazines.
Demographic segmentation divides buyers into segments based on their knowledge,
attitudes, uses, or responses concerning a product.
The most common form of advertainment is product placement.
Mission statements should be market oriented and defined in terms of satisfying basic
customer needs.
Using a segmented marketing strategy, a firm might decide to ignore market segment
differences and target the whole market with one offer.
The demographic environment is of major interest to marketers because it involves
people, and people make up markets.
Many shoppers now check out merchandise online and then buy it at brick-and-mortar
stores. This process is called showrooming.
A conventional distribution channel consists of one or more independent producers,
wholesalers, and retailers; each seeking to maximize its own profits, perhaps even at the
expense of the system as a whole.
Tariffs are limits on the amount of foreign imports that a country will accept in certain
product categories.
In contrast to distribution centers, storage warehouses are designed to move goods
rather than just house them.
The inside sales force consists of salespeople who conduct business from their offices
via telephone, the Internet, or visits from buyers.
Dividing a market into distinct groups of buyers who have different needs,
characteristics, or behaviors, and who might require separate products or marketing
programs is known as market diversification.
The life cycle of new retail forms is getting longer.
The strongest brands do not engage customers on a deep, emotional level.
Consumers can never buy functional versions of highly promoted branded products at
lower prices.
Online-only companies are more successful than multichannel marketing companies.
Which of the following is an indirect business marketing channel?
A) producer to retailer to business distributor
B) producer to wholesaler to retailer to end consumer
C) producer to end-consumer to business distributor
D) producer to retailer
E) producer to business distributor to business customer
Venus Inc., a company designing and marketing branded diamond jewelry, targets
wealthy consumers with similar needs and buying behaviors, even though the
consumers are located in different countries. This is an example of ________
segmentation.
A) intermarket
B) loyalty
C) life-cycle
D) income
E) psychographic
Sanguine Services is a small company that uses a marketing strategy in which its
limited resources are employed to target a large share of two small market segments.
Sanguine most likely uses which of the following marketing strategies?
A) individual marketing
B) one-to-one marketing
C) mass marketing
D) concentrated marketing
E) trigger-based marketing
Encouraging customers to switch brands is most likely the objective of ________
advertising.
A) informative
B) reminder
C) covert
D) persuasive
E) institutional
Sam Doharty, a purchasing manager in Willard Groups of Companies, is currently
working with engineers and consultants to define the items to be purchased.
Additionally, Sam and his team are ranking the importance of reliability, durability, and
price desired in the items. In other words, they are preparing a(n) ________.
A) decision tree
B) supplier list
C) product proposal
D) order-routine specification
E) general need description
Which of the following is true of the bottom of the pyramid?
A) It is a market segment that has been tapped into and depleted.
B) It consists of people who have easy access to luxury goods.
C) It comprises people who have easy access to the basic amenities of life.
D) It is considered a source of fresh growth opportunities.
E) It is a market segment that has insignificant purchasing power.
An illustration, a headline, and a copy are the three ________ elements of an
advertisement.
A) tone
B) mood
C) format
D) reach
E) frequency
Ocean Spray sells its air fresheners only through Ray’s Drugs. This is an example of
________ distribution.
A) exclusive
B) selective
C) intensive
D) indirect
E) corporate
Skyrim Corp. lacks the capital and capacity to launch its new helicopter for full national
and international distribution. If the test market results look promising, what should be
management’s next step?
A) retest the product in additional markets
B) develop a planned market rollout over time
C) liquidate its assets to gain capital and capacity
D) seek the help of a nationally known consultant
E) develop a prototype
Consumer research, product development, communication, distribution, pricing, and
service are all core ________ activities.
A) positioning
B) marketing
C) outsourcing
D) production
E) logistics
The Internet offers ________, where the price can easily be adjusted to meet changes in
demand.
A) captive pricing
B) dynamic pricing
C) basing-point pricing
D) price bundling
E) cost-plus pricing
Which of the following is true with regard to pure competition?
A) Under pure competition, no single buyer or seller has much effect on the going
market price.
B) In a purely competitive market, marketing research is of utmost importance.
C) In a purely competitive market, product development is the focus of most firms.
D) Under pure competition, the market consists of many buyers and sellers who trade
over a range of prices rather than a single market price.
E) Under pure competition, the market consists of only a few large sellers.
Cathy’s Clothes is a small yet successful retail chain that sells women’s clothing and
accessories with a focus on buyers who have relatively modest means. For this specific
purpose, the firm has rolled out several marketing initiatives aimed at women of a
specific demographic. This is an example of ________.
A) ambush marketing
B) social marketing
C) societal marketing
D) target marketing
E) cause marketing
Renkel Cosmetics sends a sample of the newest cosmetics line to all premium members’
addresses. Which of the following best describes Renkel’s form of marketing?
A) social media marketing
B) kiosk marketing
C) direct-response television marketing
D) catalog marketing
E) direct-mail marketing
In the context of identifying competitors’ strategies, the more that one firm’s strategy
resembles another firm’s strategy, the more likely the two firms are to ________.
A) merge
B) compete
C) globalize
D) form a partnership
E) become market leaders
Which of the following is most likely a shortcoming of advertising?
A) It is the most expensive promotion tool.
B) It cannot reach masses of geographically dispersed buyers.
C) It is impersonal and lacks the direct persuasiveness of company salespeople.
D) It cannot trigger quick sales.
E) It cannot be used to build up a long-term image for a product.
Mercury Inc., an American multinational corporation, is currently planning to enter the
promising consumer goods market in India. The firm will most likely discover that
________ beliefs and values are more open to change in India.
A) inherited
B) secondary
C) primary
D) core
E) traditional
________ involves first identifying and assessing competitors and then selecting which
competitors to attack or avoid.
A) Competitor analysis
B) Self-competition
C) Blue ocean strategy
D) Quantitative analysis
E) Perfect competition
________ are communities over the Internet where people congregate, socialize, and
exchange views and information.
A) Corporate Web sites
B) Interactive television
C) Digital catalogs
D) Online social networks
E) Content sponsorships
Under ________, the market consists of many buyers and sellers who trade over a range
of prices rather than a single market price.
A) pure competition
B) monopolistic competition
C) oligopolistic competition
D) a pure monopoly
E) the dominant firm model
Why are competitors considered a good external idea source?
Briefly explain mass customization.
How do intermediaries add value to a marketing system?
Explain how and why marketers go beyond selling a product or service to create brand
experiences.
Retail stores can be classified in terms of several characteristics. Name four of them.