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Disintermediation occurs when radically new types of channel intermediaries displace
traditional ones.
Consumers welcome e-mail marketing messages; opportunities to control the messages
they receive are frequently ignored.
In a direct marketing channel, the producer sells directly to the intermediaries, who in
turn sell directly to the customers.
All personal communication channels are controlled directly by the company.
Customer-managed relationships are marketing relationships that are controlled by
customers, therefore, they are of no significance to marketers.
Product value analysis is an approach to enhancing productivity.
Markup pricing is popular because when all firms in the industry use this pricing
method, prices tend to be similar, so price competition is minimized.
Market challengers can grow by further increasing their market shares.
Within the organization, buying activity consists of two major parts: the buying center
and the buying decision process.
The order-routine specification includes the final order with the chosen supplier or
suppliers and lists items such as technical specifications, quantity needed, expected
delivery time, return policies, and warranties.
To avoid too few new product ideas and the failure of many good ideas, management
should implement an innovation management system that collects, reviews, evaluates,
and manages new product ideas.
In the proposal solicitation stage of the business buying process, the buyer invites
qualified suppliers to submit proposals.
For segmented pricing to be an effective strategy, prices should reflect real differences
in customers' perceived value.
One valid criticism of the four Ps concept of the marketing mix is that services are not
considered.
In a straight rebuy, the buyer wants to alter product specifications, prices, terms, or
suppliers.
Sellers cannot influence or use consumers' reference prices when setting their product
prices.
The competitive intelligence system of a company supplies key information to relevant
decision makers about the company's competitors.
Most companies tend to compete with distant competitors that are typically unlike
them, rather than with close competitors.
Refer to the scenario below to answer the following question.
Jason West, owner of A1 Cleaning, started his enterprise in 2001. Jason's primary focus
had been on office cleaning for large corporations. But in recent months, Jason has seen
a decline in demand for his office cleaning services. Surprisingly, the competitive
environment appeared relatively stable with no new competitors. However, Jason knew
that office cleaning was 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 over his dilemma, he realized that prior to building his
competitive advantage he needed to better understand how customers assessed service
quality and what they look for in a superior cleaning service.
Jason developed a research plan. First, he gathered information about his competitors,
primarily through pamphlets and Web sites, as well as through a few phone calls in
order to find out exactly what the competitors offered in their cleaning packages. In
addition, Jason obtained from the Chamber of Commerce an updated list of local
corporations. He planned on sending written questionnaires to them.
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.
If Jason used mostly open-ended questions in the survey to encourage people to answer
in their own words, he is performing ________ research.
A) focus group
B) qualitative
C) experiential
D) causal
E) exploratory
An IKEA ad shows consumers creating fanciful room designs with IKEA furniture,
such as "a bedroom for a queen made by Bree and her sister, designed by IKEA."
Which of the following message execution styles is illustrated in this example?
A) mood or image
B) musical
C) fantasy
D) lifestyle
E) personality symbol
Which of the following is true with regard to brand equity?
A) Brand equity refers to how much consumers know about the brand.
B) High brand equity provides a company with many competitive advantages.
C) A brand has positive brand equity if consumers react less favorably to it than to an
unbranded version.
D) Positive brand equity derives from low brand esteem.
E) The total financial value of a brand can be easily measured.
Which of the following is most likely influenced by marketers?
A) population shifts
B) core cultural values
C) income distribution
D) ethnic diversity
E) media
A women's apparel manufacturer in California recently acquired a Houston-based
company that manufactures office furniture. This is an example of ________.
A) product development
B) market development
C) market penetration
D) diversification
E) product differentiation
The lighting in Jake's Steak Restaurant is dim. The chairs are covered in leather and
each table is covered with a white linen cloth. The colors are limited to earth tones with
an occasional splash of red. Patrons cannot hear any kitchen noises, only a pleasant
melody that seems familiar but unrecognizable. The smells are extraordinarily varied.
This is a description of the restaurant's ________.
A) promotions
B) target
C) atmosphere
D) services mix
E) product assortment
________ are the first link between the seller and the final buyer. They move company
products from points of production to the borders of countries within which they are
sold.
A) Channels between nations
B) Channels within nations
C) Retail channels
D) Large-scale channels
E) Value chain channels
Creating a brand-marketing event or serving as a sole or participating sponsor of events
created by others is known as ________.
A) point-of-purchase promotions
B) sweepstakes
C) team selling
D) event marketing
E) personal selling
The marketing department of a reputed firm wants to improve strategic decision
making, track the actions of other players in the market, and provide early warning of
opportunities and threats. Which of the following would help the firm achieve its
objectives?
A) ethnographic research
B) strategic planning
C) data warehousing
D) competitive marketing intelligence
E) customer relationship management
Delta Motorworks markets its cars based on the age, gender, and income of its
customers. Which of the following types of market segmentation is evident here?
A) geographic segmentation
B) benefit segmentation
C) occasion segmentation
D) demographic segmentation
E) psychographic segmentation
Each company must divide up the total market, choose the best segments, and design
strategies for profitably serving chosen segments. This process involves market
segmentation, ________, differentiation, and positioning.
A) market targeting
B) marketing implementation
C) supply-chain analysis
D) price discrimination
E) market diversification
The winning value proposition would be to offer ________.
A) more for the same
B) more for less
C) more for more
D) same for less
E) same for more
In the communication process, an actual HP printer/fax machine advertisement would
be considered ________.
A) encoding
B) decoding
C) the product
D) the message
E) the medium
The major purpose of test marketing is to provide management with the information
needed to make a final decision about ________.
A) how to develop a marketing strategy
B) which market to compete in
C) whether to launch the new product
D) how to compete in the market
E) how long to compete in the market
Which of the following are the three characteristics that an advertising appeal should
have?
A) engaging, informative, and stylish
B) trendy, compelling, and appealing
C) meaningful, believable, and distinctive
D) unique, emotional, and entertaining
E) humorous, memorable, and interesting
Big Moose Toys is a market pioneer introducing a modern version of Bubble the
Moose, a character from an animated television series originally broadcast in the '50s
and '60s. The company's version of Sandy the Flying Squirrel, a character from the
show targeted to baby boomers, was a strong success. Since the firm is a market
pioneer, it needs to make the new launch strategy for Bubble the Moose consistent with
the intended ________.
A) pricing
B) product positioning
C) brand extension
D) prototype
E) fad
An industry often contains "good" competitors and "bad" competitors. Define each term
and discuss scenarios with both "good" and "bad" competitors. How might "good"
competitors choose to react to "bad" competition?
Briefly explain the societal marketing concept. Give an example of an organization that
has effectively used the societal marketing concept.
What are the different types of off-price retailers?
How can marketers benefit from developing solutions to environmental problems, such
as pollution and raw material shortages?
How have changes in technology and the growth of online marketing affected the
design of marketing channels?
For what types of products might marketers use market-skimming pricing?
How can companies learn about their competitors' strengths and weaknesses?
Briefly describe how economic conditions impact a firm's pricing strategies.
What is supplier development?
