Profitability control is the prime responsibility of line and staff management.
If a small Iowa college builds awareness among applicants from Nebraska, increases
the target audience’s knowledge about its offerings, communicates in a way that makes
the target audience like it and prefer it to other colleges, builds intent to apply, and gets
the target audience to attend, it is applying a do-feel-learn sequence.
Regional economic integration has intensified in recent years, so companies are less
likely to enter entire regions at the same time.
A pure service requires a capital-intensive good, but the primary item is a service.
The more favorable a country’s image, the less prominently the “Made in” label should
be displayed.
The first step in the workload approach for designing salesforce size is to establish
desirable call frequencies for each customer class.
The customer value triad consists of a combination of quality, durability, and price.
The flow of materials to refurbish products for resale constitutes a reverse flow.
Sales promotions in markets of high brand similarity can produce a high sales response
in the short run but little permanent gain in brand preference over the longer term.
A pull strategy is particularly appropriate when there is low brand loyalty in a category,
brand choice is made in the store, the product is an impulse item, and product benefits
are well understood.
Services constitute the bulk of most countries’ production and marketing efforts.
The redemption rate for paper coupons (10 percent) far exceeds that of mobile coupons
(1 percent).
Driving sales and revenue growth can be more challenging in mature markets.
If a company sought to grow by starting new businesses that have no relation to its
current technology, products, or markets, the company would be using a market
penetration strategy.
A “do-feel-learn” response sequence is considered appropriate when the audience has
high involvement but perceives little or no differentiation within the product category.
A brand audit can assess the health of a brand and uncover sources of brand equity.
The desire to eat a Philly cheesesteak, whether or not you are in the position to buy one,
is an example of a demand.
Inventory cost increases at an accelerating rate as the customer-service level approaches
100 percent.
Perceptual maps provide quantitative portrayals of market situations and the way
consumers view different products, services, and brands along various dimensions.
Growth strategies are “either/or” propositions; a focus on core businesses means
foregoing new market opportunities.
A salesperson calling on supermarkets to take repeat orders is called an order taker.
In high-low pricing, retailers charge low prices on an everyday basis with occasional
price increases.
A service results in ownership on the part of the client.
A company that sells one product line to one end-using industry with customers in
many locations would use product or market structure for its salesforce.
Variable compensation is common in jobs where the selling task is technically complex
and requires teamwork.
One of the selection criteria for creating a successful brand element is that it should be
protectable.
Consumers usually like price increases because these changes signal that an item is
“hot” and represents a good value.
The historical approach correlates past sales to past advertising expenditures using
advanced statistical techniques.
Ways of closing a sale include asking for the order and getting the buyer to make minor
choices such as color or size.
Proponents of holistic marketing consider internal marketing to be as important as
marketing to consumers.
The macroscheduling decision calls for allocating advertising expenditures within a
short period to obtain maximum impact.
Building strong brands is the marketing task where the marketer is using a reliable
marketing information system to monitor the marketing environment so s/he can assess
market potential and forecast demand.
Internal marketing requires that everyone in the organization buy into the concepts and
goals of marketing and engage in choosing, providing, and communicating customer
value.
Customer churn is how rapidly a store can move customers through its checkout facility
or process.
For an MBO (management by objectives) system to work, one of the four criteria that
the unit’s objectives must meet is that objectives must be stated quantitatively whenever
possible.
Companies are trying to give their customers more control over their shopping
experiences by bringing Web technologies into the store via mobile apps.
In a compensation deal, the seller sells a plant, equipment, or technology to another
country and agrees to accept as partial payment products manufactured with the
supplied equipment.
An alternative to being a market follower in a large market is to be a leader in a small
market. This type of competitor is called a ________.
A) marketing king
B) market nicher
C) segment king
D) guerilla marketer
E) strategic clone
When sellers agree to provide free maintenance and repair services for a specified
period of time at a specified contract price, they are offering ________.
A) a complementary service
B) payment equity
C) a service blueprint
D) differential pricing
E) an extended warranty
Which of the following is a disadvantage of using direct mail as an advertising
medium?
A) low audience selectivity
B) lack of flexibility
C) high competition within same medium
D) relatively high cost
E) lack of personalization of advertising message
When Coca-Cola focused on developing its soft-drink business but missed seeing the
market for coffee bars and fresh-fruit-juice bars that eventually impinged on its
soft-drink business, it was suffering from ________ because it defined competition in
traditional category and industry terms.
A) factor elimination
B) marketing myopia
C) factor reduction
D) category points-of-parity
E) reliance on product description
When is a pull strategy appropriate?
A) when there is low brand loyalty
B) when consumers are able to perceive differences between brands
C) when brand choice is made in the store
D) when it is a low involvement purchase
E) when the product is an impulse item
List three examples of how companies are using Big Data.
Which of the following is the marketing communications objective for a
new-to-the-world product, such as electric cars?
A) enhancing brand awareness
B) developing brand attitude
C) increasing brand purchase intention
D) encouraging repeat purchases
E) establishing category need
For ________ to be valued for products like vehicles and kitchen appliances, it should
not be associated with an excessive price premium and the product must not be subject
to rapid technological obsolescence.
A) conformance quality
B) performance quality
C) repairability
D) durability
E) style
Christian Louboutin is a footwear designer who launched his line of high-end women’s
shoes in France in 1991. Since 1992, his designs have incorporated the shiny,
red-lacquered soles that have become his signature. These red-lacquered soles and high
stilettos of Louboutin distinguish him from other designer shoe brands. In accordance
with the BrandAsset Valuator model, which of the following components of brand
equity has Louboutin fulfilled in this scenario?
A) energized differentiation
B) relevance
C) esteem
D) knowledge
E) advantage
Which of the following statements about the branding guidelines for a small business is
TRUE?
A) A small business must creatively conduct low-cost marketing research.
B) A small business must avoid leveraging secondary brand associations.
C) A small business must separate the well-integrated brand elements to enhance both
brand awareness and brand image.
D) A small business must disintegrate the brand elements to maximize the contribution
of each of the three main sets of brand equity drivers.
E) A small business must focus on building more than two strong brands based on a
number of associations.
Soccer’s World Cup is promoted aggressively to both companies and fans. This is an
example of marketing a(n) ________.
A) idea
B) place
C) luxury item
D) event
E) service
Which of the following statements is TRUE about the five forces identified by Michael
Porter that determine the intrinsic long-run attractiveness of a market or market
segment?
A) A segment is unattractive if the company’s suppliers are unable to raise prices or
reduce quantity supplied.
B) A segment is unattractive if buyers possess strong or growing bargaining power.
C) A segment is attractive when there are actual or potential substitutes for the product.
D) A segment is attractive if it already contains numerous, strong, or aggressive
competitors.
E) The most attractive segment is one in which entry barriers are low and exit barriers
are high.
If the shipper owns its own truck or air fleet, it becomes a ________ carrier.
A) containerized
B) private
C) contract
D) common
E) diversified
________ reflects a customer’s judgment of a product’s performance in relation to his or
her expectations.
A) Brand equity
B) Satisfaction
C) Value
D) Perception
E) Brand image
Greta is attempting to get as many orders as possible. Which direct marketing tool is
generally associated with the highest order response rate?
A) e-mail to an internal company list
B) direct mail to an internal company list
C) e-mail to a general list
D) direct mail to a general list
E) no difference between e-mail and direct mail
Which of the following statements is TRUE of the factors that affect an advertising
budget?
A) High-market-share brands usually require proportionately high advertising
expenditure as a percentage of sales to maintain share.
B) Brands in less-differentiated or commodity-like product classes require less
advertising to establish a unique image.
C) New products typically merit large advertising budgets to build awareness and to
gain consumer trial.
D) In a market with few competitors and moderate advertising spending, a brand must
advertise more heavily to be heard.
E) Established brands usually are supported with high advertising budgets, measured as
a ratio to sales.
At the heart of any marketing program is the firm’s ________, its tangible offering to
the market.
A) strategy
B) product
C) brand
D) value
E) people
The task environment of a firm consists of demographic, economic, natural, and
technological environments, as well as the political-legal system and the social-cultural
arena.
Which of the following is a risk that firms must consider prior to expanding abroad?
A) The domestic consumers may prefer low-priced products.
B) The market in the foreign country may be too similar to the domestic market.
C) Consumers in the foreign country may be very particular about quality.
D) The foreign country may have very low pollution control standards.
E) Management may not understand the foreign country’s business culture.
The characteristic of useful market segments that relates to whether the segments can be
effectively reached and served is whether the segment is ________.
A) measurable
B) substantial
C) differentiable
D) accessible
E) actionable
The first step in the strategic brand management process is ________.
A) measuring consumer brand loyalty
B) identifying and establishing brand positioning
C) planning and implementing brand marketing
D) measuring and interpreting brand performance
E) growing and sustaining brand value
Which of the following is the first step in the process of personal selling?
A) prospecting and qualifying
B) sales preapproach
C) sales presentation
D) unearthing objections
E) demonstrating advantages
Packaging includes all the activities of designing and producing the container for a
product. This includes up to three levels of material: primary package, secondary
package, and ________ package.
A) retailer
B) design
C) shipping
D) consumer
E) supplier
The 80-20 rule reflects the idea that ________.
A) 20 percent of the company’s profits are generated by the top 80 percent of customers
B) the top 20 percent of customers are highly satisfied and 80 percent of customers will
recommend the company to a friend
C) 20 percent of customers are unprofitable, and 80 percent make up a company’s
profits
D) the top 20 percent of customers often generate 80 percent of the company’s profits
E) any new product will be accepted by 20 percent of the customers immediately, but
80 percent of the customers will be up for grabs throughout the product’s life cycle
A brand must demonstrate ________, for it to function as a true point-of-difference.
A) clear superiority of an attribute or benefit
B) clear profitability to the company
C) clear similarity to the attributes of other brands
D) technological advances for an attribute or benefit
E) exploitation of competitors’ weakness
________ can work to the advantage of marketers with strong brands when consumers
make neutral or ambiguous brand information more positive.
A) Selective attention
B) Selective distortion
C) Selective retention
D) Selective choice
E) Selective embellishment
To which of the following categories of services does a cell phone belong?
A) major service with accompanying minor services
B) major service with accompanying minor goods
C) pure service
D) pure tangible good
E) tangible good with accompanying services
________ refers to the task of securing editorial space”as opposed to paid space”in print
and broadcast media to promote or “hype” a product, service, idea, place, person, or
organization.
A) Advertising
B) Media planning
C) Communication design
D) Publicity
E) Copy testing
When supermarkets and department stores drop the price on well-known brands to
stimulate store traffic, they are said to be following ________ pricing.
A) value
B) loss-leader
C) special event
D) high-low
E) everyday low
An example of a restaurant with a narrow and deep assortment is a ________.
A) small lunch counter
B) cafeteria
C) large restaurant
D) fast-food restaurant chain
E) delicatessen
The Body Shop, Timberland, and Patagonia behave in environmentally responsible
ways that differentiate them from competitors, build consumer preference, and achieve
notable sales and profit gains. This is an example of ________.
A) social responsibility
B) technology
C) globalization
D) collaboration
E) goodwill
________ marketing refers to the normal work of preparing, pricing, distributing, and
promoting the service to customers.
A) Interactive
B) Internal
C) External
D) Promotional
E) Direct
Marketing communications budgets tend to be higher when conditions include
________.
A) high channel support
B) hardly any change in the marketing program over time
C) products purchased infrequently and in large quantities
D) differentiated products and nonhomogeneous customer needs
E) easily reachable customers
All marketing strategy is built on segmentation, targeting, and ________.
A) positioning
B) product
C) planning
D) promotion
E) performance
What is the significance of design for a company’s products and services? What are the
advantages of a good design?
Why do companies need to search for practical means to harness renewable sources of
energy like wind and water?
Identify five of Kotler and Kotler’s general strategies for growth.
Explain the concept of derived demand.
Describe the characteristics a core competency should possess.
What is direct marketing? What are the various channels that direct marketers use?
How do consumers use reference prices?
Provide a general description of the classic response hierarchy models and two
alternatives.
List the six criteria used in choosing brand elements.
The firm’s success depends not only on how well each department performs its work,
but also on how well the various departmental activities are coordinated to conduct core
business processes. List and briefly describe the five core business processes.
When asked about their preferred brand of instant noodles outside a supermarket
setting, customers could not remember Nissin’s name, but relied on the distinct
packaging to help them spot the noodles while shopping. Identify the basic
communication objective that is most important in this situation, and suggest a way
Nissin could address that objective.
Business markets have several characteristics that contrast sharply with those of
consumer markets. Name and briefly characterize five of those characteristics.
The competing concepts under which organizations have conducted marketing activities
include: the production concept, product concept, selling concept, marketing concept,
and holistic marketing concept. Evaluate the advantages and disadvantages of each
concept. Which concept do you believe is the most effective? Why?
Many companies are beginning to realize that they are not really market and customer
driven, they are product and sales driven. In the attempt to transform themselves into
true market-driven companies, many firms must change. Summarize the kinds of
changes that are necessary.
A company that is planning to go global must decide on how many countries to enter
and how fast to expand. A company’s entry strategy typically follows one of two
possible approaches. What are those approaches?
Give a brief description of the various factors that affect advertising budget decisions.