For marketers, racial and ethnic subcultures are less important than more easily defined
microcultures such as avid Green Bay Packers fans or devotees of Southern gospel
music.
A missionary salesperson stimulates demand for a product and is therefore a major part
of the close of the sale.
Because Cruise Ships International currently has limited financial and personnel
resources, it should avoid a concentrated targeting strategy until its resources are more
substantial.
The objective-and-task method of setting a promotion budget is the most logical
method because it forces management to articulate assumptions about the relationship
between dollars spent and promotion results.
Marketers for Ranch Life, a Connecticut family resort that offers horseback riding and a
waterpark, want to make sure that Ranch Life comes up at the top or near the top of
every list of online search results for the phrases “Connecticut family vacation,”
“Connecticut horseback riding,” and “Connecticut waterpark.” Ranch Life marketers
will likely use predictive analytics to achieve this goal.
The role of customer insights manager is typically a support role across a company’s
strategic business units (SBUs).
A firm has a competitive advantage when it is able to outperform the competition,
providing customers with a desired benefit not provided by the competition.
The acronym ROI stands for rely on instinct.
A chief marketing officer is more likely to be in charge of strategic planning than
functional planning.
A representative for Tupperware who is implementing a party plan, demonstrating and
selling products at a social gathering of friends, is using direct selling.
When the Pharmaceutical Manufacturers Association spent eight million dollars
creating and placing a print campaign arguing that the most expensive drugs represent
just five percent of national health care expenditures, the association was using public
relations.
A brand community can be created by marketers or can develop on its own among
consumers.
Even if you opt out of receiving emailed marketing messages from a company, the
company is within its legal rights to continue sending you its promotional emails.
After conducting formal marketing research for your department, you summarize the
data in an oral presentation to management. You are following normal marketing
research steps.
Some business customers purchase specialized services that are essential to the
operation of an organization but not part of the production of a product.
Decisions about packaging and branding are part of a firm’s product strategy.
The Six Sigma process is applied to products but not services.
Cross-sectional design involves the systematic collection of responses to a consumer
survey instrument from one or more samples of respondents at one point in time.
Because children have little influence over family purchases beyond toys and games,
marketers tend to not focus on consumers under the age of 12.
Business planning is a process of making decisions that guide the firm in both the short
and the long term.
An entertainer such as Garth Brooks, a television show, and a magazine subscription are
all examples of products.
Because there is substantial evidence that subliminal advertising is effective, many
media companies reject any advertising that contains subliminal messages.
When the NewWay Dry Cleaners and The Easy Laundromat in your hometown join
forces to pursue a new marketing opportunity, they are forming a horizontal marketing
system.
Strategic planning is also referred to as functionalplanning.
Special events are public relations activities for which companies provide financial
support to help fund an event in return for publicized recognition of the company’s
contribution.
The retail industry has been largely unaffected by the trend of the world becoming
“flatter.”
A break-even analysis helps marketers understand the relationship between price and
demand.
Inflation may cause marketers to decide to either raise or decrease their prices.
Virtually everything an organization says and does is a form of marketing
communication.
Test marketing is an inexpensive way to predict whether a new product will be a
success.
Variable costs for producing textbooks include the price of paper.
Which of the following is true of perceptual maps?
A) They are only used during the new product development process.
B) They are the most effective method for predicting product success.
C) They identify consumer shopping preferences in terms of retail and nonretail
locations.
D) They are not useful in business-to-business marketing.
E) They cannot be created without consumer research.
Numeric or categorical information is referred to as ________.
A) structured data
B) unstructured data
C) predictive data
D) optimized data
E) converted data
Which of the following is NOT an example of a marketing metric?
A) bounce rate
B) market share
C) touchpoint
D) cost per order
E) click-through rate
In addition to marketing activities, the ________ includes business functions such as
human resource management and technology development.
A) value chain
B) marketing mix
C) utility function
D) customer relationship management process
E) market position
Leadership in which type of marketing system is assumed not through common
ownership or contractual ties but through the size and power of a single dominant
channel member?
A) a horizontal marketing system
B) an administered vertical marketing system
C) a corporate vertical marketing system
D) a conventional marketing system
E) a multiple distribution system
Swatch surveyed the market and identified an unserved segment of watch buyers. Using
these results, Swatch created a watch at a price consumers were willing to pay. The
unorthodox order of this marketing mix decision is an example of ________.
A) competition-based pricing
B) cost-plus pricing
C) target costing
D) value pricing
E) penetration pricing
The owner of a grocery store wants to have non-food items delivered, priced, displayed,
and inventoried by a wholesaler. Which type of wholesaler best fits the owner’s needs?
A) drop shipper
B) cash-and-carry wholesaler
C) truck jobber
D) rack jobber
E) mail-order wholesaler
________ decisions identify how marketing will accomplish its objectives in the target
markets by using product, price, promotion, and place.
A) Marketing metrics
B) Strategic business unit
C) Return on marketing investment
D) Marketing mix
E) Strategic planning
Traffic in major metropolitan areas is too often brought to a standstill because accident
investigators must painstakingly measure skid marks and other evidence to determine
culpability. After a police chief missed an important meeting because of a wreck
investigation, he was pleased to find an article about a company that markets a new
high-tech crash investigation system that shortens the time required for these
investigations by 40 percent. In which stage of the adoption process is the police chief?
A) evaluation
B) trial
C) interest
D) confirmation
E) adoption
There are three steps involved in creating a public relations campaign. The first step is
to ________.
A) conduct a SWOT analysis
B) develop objectives
C) formulate a mission statement
D) recruit and train public relations specialists
E) pretest components of the proposed public relations campaign
Which of the following statements about CRM programs is true?
A) The success of a CRM program relies on its use of mass communication channels.
B) CRM programs include information gathered from each customer touchpoint.
C) Internet technology is a barrier to the successful implementation of CRM programs.
D) To succeed, all companies should engage in CRM every time they interact with a
customer.
E) Only consumer marketers can benefit from the use of CRM programs.
The first step in the creative selling process is ________.
A) preapproach
B) prospect and qualify
C) approach
D) handle objections
E) sales presentation
Which of the following is NOT a way that marketers classify services?
A) services performed directly on the customer
B) services performed directly on the customer’s possession
C) services performed indirectly on the customer
D) services consisting of tangible actions
E) services consisting of intangible actions
A ________ is the legal term for a brand name, brand mark, or trade character.
A) trademark
B) patent
C) copyright
D) logo
E) corporate mark
Which of the following describes a comprehensive approach to collecting, organizing,
storing, and retrieving a firm’s information assets?
A) logistics
B) knowledge management
C) facilitation
D) enterprise resource planning
E) just-in-time techniques
The ________ element of the marketing mix communicates the value proposition using
forms such as personal selling, advertising, coupons, and publicity.
A) production
B) place
C) price
D) distribution
E) promotion
When a product has ________ demand, an increase or decrease in the price of the
product has little or no effect on the demand for the product.
A) elastic
B) joint
C) derived
D) inelastic
E) fixed
Someone who orders a product through a catalog is responding to ________.
A) place-based communication
B) point of purchase selling
C) direct marketing
D) direct selling
E) personal selling
African Americans, Hispanic Americans, and Asian Americans are all examples of
________ segments.
A) life cycle
B) psychographic
C) ethnic group
D) social class
E) geocoding
Heavy equipment, which includes items such as buildings and robotics, is also referred
to as ________.
A) component parts
B) capital equipment
C) accessory equipment
D) operating supplies
E) specialized services
In addition to regular Alka-Seltzer, there is an Alka-Seltzer product for each of the
following: cold sufferers, people with upset stomachs, people who can’t sleep, people
with allergies, and people who have a severe headache. The manufacturer of
Alka-Seltzer is using a(n) ________ to reach as many different target markets as
possible.
A) full line strategy
B) downward line stretch
C) cannibalization strategy
D) undifferentiated strategy
E) upward line stretch
The group of American consumers born between 1965 and 1978 are called ________.
A) baby boomers
B) the silent majority
C) Generation X
D) Generation Y
E) Generation Z
________ is the promotional tool used to build interest in or encourage purchase of a
good or service during a specified period.
A) A patronage reward
B) A segmented promotion
C) Advertising
D) Public relations
E) Sales promotion
When Joe’s Coffee Nook raised the price of a latte, Joe noticed a substantial change in
his daily latte sales. A price reduction caused his sales to increase. From this
information, you can assume the demand for lattes is ________.
A) static
B) supply-driven
C) asymmetrical
D) elastic
E) inelastic
Malaysia, Indonesia, Singapore, Thailand, and Cambodia are all members of ________.
A) the Andean Group
B) ASEAN
C) MERCOSUR
D) NAFTA
E) APEC
Consumers who share their ideas about products with companies for fun or a challenge,
rather than a paycheck, are referred to as ________.
A) instapreneurs
B) amafessionals
C) consumed consumers
D) folksonomists
E) open sourcers
Glasis is a type of paint made specifically for use on cars. An ad in Motor Trend
magazine advising consumers to request their body shops use Glasis paint is an
example of how a company uses ________.
A) viral marketing
B) stealth marketing
C) buzz marketing
D) a push strategy
E) a pull strategy
The use of short-term incentives to encourage the immediate purchase or sale of a
product or service is called ________.
A) indirect marketing
B) sales promotion
C) personal selling
D) public relations
E) advertising
The Robinson-Patman Act does NOT include regulations that ________.
A) apply to resellers
B) protect final consumers
C) prohibit selling the same product to different retailers at different prices
D) prohibit offering such “extras” as discounts, rebates, premiums, and coupons to
some but not all customers
E) prohibit price discrimination in interstate commerce
Which of the following refers to a product’s overall ability to satisfy customers’
expectations?
A) value proposition
B) brand equity
C) product precision
D) brand meaning
E) product quality
Mercedes was able to successfully introduce its C-Class car at $30,000 without injuring
its ability to sell other Mercedes cars for $100,000 or more. Mercedes implemented a(n)
________.
A) downward line stretch
B) product line contraction
C) cannibalization strategy
D) upward line stretch
E) value stretch
________ is the degree to which a consumer perceives that a new product provides
superior benefits.
A) Compatibility
B) Complexity
C) Relative advantage
D) Comparability
E) Tangibility
With which type of marketing communication does the marketer have the lowest level
of control over the message?
A) word-of-mouth communication
B) advertising
C) public relations
D) direct marketing
E) personal selling
Compare and contrast partner relationship management (PRM) and customer
relationship management (CRM).
What is the difference between a subculture and a microculture?
Why does a firm’s number of prospects always equal or exceed its number of qualified
customers?
Describe and compare the three basic levels of economic development.
Why might a researcher decide to use causal research rather than descriptive research?
Why have department stores struggled to survive in the United States in recent years?
With a CRM approach, how might a firm select different methods of contacting and
communicating with customers based on their value?
Theresa Fielding owns an Internet company that sells gift baskets. Each customer can
pick out what she wants in the basket to make it a personalized gift. Theresa has
demographic information about buyers stored in the company database. The database
also has the address of each basket recipient, when each basket was sent, the contents of
each basket, and if it was sent for a special occasion. How could Theresa use this
database?
Explain what advantages a company might see in using an intranet.
Discuss how marketers can use virtual worlds to convey marketing communications.
Compare and contrast a conventional marketing system with a vertical marketing
system (VMS).
What is the relationship between the level of control and the level of risk in each type of
market entry strategy?
Select one real company located in your home state. Identify at least four different types
of stakeholders in this company.
Jay Minkoff at First Flavor may use the Boston Consulting Group (BCG) matrix to help
him in making decisions for his firm. What does he need to understand about the
purpose of the matrix and the four categories of the BCG growth-market share matrix?
As a service provider, why might you perceive the buyer-seller interaction in the service
encounter to be especially critical?
Why is successful product management increasingly important as technology moves
forward and the marketplace becomes more globalized?
Explain how customers are an important element of the service encounter.
Explain the follow-up step of the creative selling process.
The makers of a new type of soap that can be used to both wash and wax your car with
only one application have determined that personal selling would not be best for this
product. Explain why this is or isn’t a good marketing communication decision.