Early adopters are opinion leaders who seek out new products but are price sensitive.
Many people believe marketing is focused primarily on consumers-the ultimate users of
the product. The fact that they experience marketing as a consumer contributes to this
belief.
Causal research is useful for identifying characteristics of a target market or
determining how customers use a product.
An employee who believes that he or she can do a better job by understanding the
company’s customers has an internal customer mind-set.
Personal attributes such as age, education, occupation, income, and lifestyle are
frequently used to define, identify, and classify an individual.
The consumer buying process takes longer and is more complex than the B2B buying
process.
A channel is a system of interdependent relationships among a set of organizations that
facilitates the exchange process.
Geodemographic segmentation is a technique that combines where a person lives with
his or her lifestyle in a way that allows marketers to fine tune local consumer offerings.
Intensive distribution is typically associated with shopping goods.
The concept of customer orientation needs to be understood by marketing and sales and
service managers. Employees who work in accounting, finance, and manufacturing
need to do their jobs well but rarely have an impact on customer service.
Overpositioning occurs when consumers have only a vague idea about the company and
its products, and do not perceive any real differentiation.
Manufacturers’ costs would skyrocket if they held the responsibility for interfacing with
and delivering products to every one of their end users.
PR should never be combined with advertising or sales promotion to create demand.
Firms frequently rely on combinations of pricing tactics in the marketplace rather than
putting all their eggs in one basket.
A company that uses positioning often uses a price-quality perceptual map in order to
show where it is positioned versus the competition. This helps it understand if it needs
to either change pricing strategy or quality standards.
The marketing managers of Brand Z Shoes has a clearly defined their research problem
as “If we increase our promotions expenditures by what percent will it increase sales?”
They have also decided that they need primary data to answer this question; _______
research would be the best approach to collecting this primary data.
A.Qualitative
B.Mechanical
C.Exploratory
D.Quantitative
E.Case-based
Quantitative research is used to develop a more measured understanding using
statistical analysis to assess and quantify the results.
In the United States, the obligation and commitment to family is often limited to an
individual’s immediate family, including their parents, children, and siblings. Most
Latin American cultures, on the other hand, have a more wide-ranging definition of
family that includes extended family members such as cousins and grandparents and
also more inclusive with extended family members living together. This is an example
of differences in ______.
A.Cultural values
B.Norms
C.Value preferences
D.Family structure
E.Living standards
Cultural values are principles shared by a society that assert positive ideals and these
values vary across nations. Definition of family is governed by cultural values and it
varies from nation to nation.
Mistakes easily occur at the ______________ step of moving through the supply chain.
A.Reverse logistics
B.Transportation
C.Order processing
D.Warehousing and materials handling
E.Inventory management
Receiving and properly processing customer orders is a critical step in getting a product
moving through the supply chain. It is also a point at which mistakes can easily occur,
and when a mistake occurs in the order it usually carries through the whole fulfillment
system.
To use target return pricing, the first step for one is to calculate ______________.
A.Fixed costs
B.Marketing costs
C.Total costs
D.Both A & B
E.Both B & C
While using target return pricing, the first step is to calculate fixed costs. The variable
costs per unit are added at the end.
Mega Corp. is interested in buying MD Softworks, a medical software firm. Two
software engineers started the company and they have made risky financial decisions.
Mega Corp. believes that with proper management, the software firm will become an
industry leader. Mostly likely the software firm would be classified as a __________.
A.Star
B.Cash cow
C.Dog
D.Problem Child
E.Top Gun
Although current management has made ill-advised financial decisions, the firm has
great potential if properly nurtured.
If geographic segmentation is carried out, it means ________.
A.The variables like social class and education are used to identify markets
B.The statistical characteristics of human populations such as age or income are used to
identify markets
C.Consumers respond differently to marketing strategies and programs based on where
they live
D.The East Coast, West Coast, and Midwest are the most important market segments
based upon size
E.None of the above
Consumers respond differently to marketing strategies and programs based on where
they live. Thus, geographic segmentation divides consumer groups based on physical
location.
Round & Round, a maker of bicycle tires, has faced stiff competition from imported
bicycle tires. In one high profit product line, tires for wheelbarrows and other carts, it
faces almost no competition in the U.S. Round & Round thinks of the cart tires as a
_____.
A.Star
B.Cash cow
C.Dog
D.Problem Child
E.Top Gun
Making of cart tires would be a key source of cash generation for the firm and
additionally there would be no competition in this segment in the U.S. So cart tires
business is a cash cow for Round & Round.
The _____________ is thought of as an overarching system of formal and informal
relationships, within which the firm participates to procure, transform and enhance, and
ultimately supply its offerings in final form within a market space.
A.Value network
B.Virtual organization
C.Network organization
D.Value chain
E.Intermediaries
Value network is composed of potentially numerous firms with which a company
interacts vertically within its channel of distribution and horizontally across other firms
whose contributions are essential to getting the right offering to the right customers.
_______________ has one of the highest response rates of any direct marketing
channel.
A.Catalogs
B.Telemarketing
C.Advertising
D.Sales promotion
E.Direct mail
Research conducted by the Direct Marketing Association suggests telemarketing
works-it had one of the highest response rates of any direct marketing channel-8.55
percent.
_____________ is the shortening or collapsing of marketing channels due to the
elimination of one or more intermediaries, and is common in the electronic channel.
A.Creating assortments
B.Reducing transactions
C.Accumulating bulk
D.Breaking bulk
E.Disintermediation
Disintermediation is the reduction of marketing channels due to some changes in the
market or technology.
In which phase of the CRM process is customer information analyzed through various
customer touchpoints?
A.Knowledge discovery
B.Market planning
C.Analysis and refinement
D.Customer interaction
E.Direct sales
Knowledge discovery is the process of analyzing the customer information acquired
through various customer touchpoints.
Firms that develop such close relationships with customers that they seem to deliver
customized goods and services are engaged in ____________ marketing.
A.Concentrated target marketing
B.One-to-one marketing
C.Differentiated marketing
D.Undifferentiated marketing
E.Shotgun marketing
With the proliferation of CRM, firms are able to develop more customized approaches
to target marketing which is known as one-to-one marketing.
Marcy has a(n) ____ set, this encompasses the strongest purchase options for her.
A.Complete
B.Awareness
C.Evaluation
D.Alternative
E.Evoked
As consumers move through the search for information, certain products may be
eliminated in favor of others and brands will be evaluated and discarded. At the end,
consumer will have a consideration set (also called an evoked set) which encompasses
the strongest options.
A supply chain is ________________________.
A.The synchronized movement of goods through the channel
B.The network of retail chains that stock a company’s products
C.The financial chain that leads from consumer to the producer
D.The sequence of movements coordinated through air space
E.The collegial relationship between two groups of suppliers
A supply chain is the synchronized movement of goods through the channel. It is far
more integrated than ever before as companies seek to keep production costs low,
provide maximum customer input and flexibility in the design of products, and create
competitive advantage.
Matthew is not prompted to value new information about the latest new pet grooming
tools. This is an example of _____.
A.High-involvement purchase
B.Low-learning motivation
C.Low level of commitment
D.Low-involvement learning
E.Low importance purchase
Low-involvement learning happens when people are not prompted to value new
information. As in this example, in low-involvement learning, marketing stimuli occur
when there is little or no interest in the information.
Nadia works for a major soda distributor. Recently the company has begun to discuss
buying a transportation company to move their product from their own manufacturing
facility to the consumer. This is an example of ________________.
A.Insourcing
B.Vertical Marketing System (VMS)
C.Corporate VMS
D.Contractual VMS
E.Administered VMS
In corporate VMS, a company moves forward or backward in the channel and buys a
controlling interest in other intermediaries. Since the soda distributor is planning to buy
a transportation company, this becomes an example of corporate VMS.
A unique characteristic of a nonprofit organization is:
A.Nonprofits use a buying triad instead of a buying center
B.The profit sector pools their money for purchases
C.The vendor list is shorter in the nonprofit sector
D.Nonprofits have a limited number of resources compared to their profit counterparts
E.All of the above
In a nonprofit organization, profit is important but is not the fundamental driver in
decision making. Also nonprofit organizations have fewer resources than for-profit
firms in general.
The best place in a SWOT analysis to identify the possibility of acquiring a growing
competitor is in ___________________.
A.External opportunities
B.External threats
C.Internal opportunities
D.Internal strengths
E.Internal weaknesses
The availability of a competitor (external to the firm) for purchase would represent an
opportunity. So the possibility of acquiring a growing competitor can be identified in
the external opportunities section of the SWOT analysis.
The owner of NOP detergents is working with an art designer on the label for a new line
of naturally scented detergents. They are trying to come up with the best way to place
the brand and logo along with the other required information on the label. They are
working on the ________ requirements of labeling.
A.Legislative
B.Marketing
C.Legal
D.Industry
E.Consumer
Since package labeling represents the last marketing opportunity before the purchase
decision, as much label space as possible is allocated to marketing communications
which includes the brand and logo. Thus, the owner is working on the marketing
requirements of labeling.
What are the goals of partner relationship management strategies (PRM)?
What is degree of affiliation, and the primary group, and secondary group? When might
the degree of affiliation change?
Think about your high school friends who did not go to college. Perhaps they joined the
military, went to a trade school, became stay at home parents or went directly into the
work force. You and they are still the same age but your lifestyles are probably very
different. Explain the disadvantage of using demographic segmentation and suggest
other methods of segmentation that would be better to reach you and your friends.
What is a subculture? Provide examples of different subcultures.
(p.82, 92)Define marketing information systems and marketing research systems. How
are they similar? How are they different? Give an example of a problem or decision that
would be best solved with a marketing information system. Give an example of a
problem or decision that would be best solved with a marketing research system.
Compare the contents of open and close ended questions. Explain which type of
research for which each is best suited.
What is the equation to calculate sales force size?
Many people of the GI Generation and the Silent Generation now live in or are
considering retirement communities, nursing homes or assisted living facilities. What
do marketing managers need to understand about these groups?
Scott is a sales representative for the industrial products division of an oil company. His
major accounts are companies with large truck fleets, quick oil change chains aimed at
the consumer, and municipalities. He wants to replace the small cities as customers
because they negotiate price to a thin profit margin. What would be a good indicator
that he could €fire’ these customers?