Research suggests that consumers prefer environmentally sensitive products, but are
unwilling to pay a significant price premium.
With respect to the US minority population, the fastest growing population is the Asian
community.
The primary advantage of a market organization is that individual salespeople can
develop familiarity with the technical attributes, applications, and most effective selling
methods associated with a single product.
The American Marketing Association defines marketing as “the activity, set of
institutions, and processes for creating, communicating, delivering, and exchanging
offerings that have value for customers, clients, partners, and society at large.”
Viral marketing is considered a traditional advertising tool.
(Little m) marketing serves as the driver of business strategy.
Outbound logistics refers to the transportation and distribution of products.
Overall satisfaction or dissatisfaction with a product is determined by the customer’s
evaluation of a product experience against a set of defined expectations.
One of the drawbacks to a firm that benefits from brand loyal customers is that it suffers
from increased long-term marketing costs giving the brand sponsor less flexibility in
marketing budgets because loyal customers expect certain marketing events to occur.
Effectively communicating a product’s differential advantages is at the heart of
positioning strategy, and exposure to these elements spurs the customer to develop
perceptions of value and a subsequent understanding of the value proposition.
Since a product’s price tends to be so visible and definitive, customers rarely have
trouble moving past price to consider other critical benefits the product affords.
Pricing objectives are independent of other marketing-related objectives such as
positioning and branding.
Product followers are price-sensitive and risk averse. They purchase older generation or
discontinued models with lower prices and fewer features. This group of adopters is
called the _____________.
A.Laggards
B.Unsure
C.Tried and true
D.Late majority
E.Cheap and cheerful
The late majority is price sensitive and risk averse. They wait for older and
discontinued models.
The Green Scene Co., a struggling start-up firm, has an environmentally friendly
pesticide that is approved for use by commercial organic farmers. The pesticide is made
from all natural ingredients and has great potential. A small investment firm has
injected cash in Green Scene. Mostly likely the investment firm views Green Scene as a
_________.
A.Star
B.Cash cow
C.Dog
D.Problem Child
E.Top Gun
The Green Scene Co. is a struggling start-up firm and has a promising future but it
needs cash to operate. So mostly likely the investment firm views Green Scene as a
problem child.
______________ is the degree to which any member of a marketing channel can
exercise influence over the other members of the channel.
A.Channel power
B.Channel conflict
C.Expert power
D.Reward power
E.Coercive power
Channel power is the degree to which any member of a marketing channel can exercise
influence over the other members of the channel. Power can directly influence the
relationships within the channel.
A material characteristic of a product is called ______________.
A.Advantage
B.Feature
C.Brand
D.Value Proposition
E.Need
A feature is any material characteristic or specification of a product.
____________ percent of all Internet searches are for products and services.
A.35
B.5
C.95
D.75
E.10
Search-related ads have shown the greatest growth in the last several years because 35
percent of all Internet searches are for products and services.
Stacy is from the United States. She is likely to be much more of a _____ than her Latin
American counterpart.
A.Adventurer
B.Clock watcher
C.Procrastinator
D.Hugger
E.Relationship builder
Americans place a high value on time. As a result, they focus on scheduling and getting
as much done in a given period as possible. Latin Americans, on the other hand, view
time as much more flexible and give importance to spending time building
interpersonal relationships.
Greg and Mark, CRM consultants have been hired by Devon to guide her company
through the CRM implementation process. All employees are on cross-functional teams
to focus transforming the firm into a relationship-based enterprise. Greg and Mark have
asked the teams to answer these questions: “What is the value proposition for our
customers?” and “What do our customers want and expect?” It is clear that they are
focusing on _______.
A.Customers
B.Production issues
C.The managerial issues
D.Supplier issues
E.Distribution issues
To transform a firm into a relationship-based enterprise. It is important to understand
customers and their expectations so that the firm’s relationship with customers can be
decided.
When a company purposefully makes pricing decisions to undercut one or more
competitors and gain sales and net market share they are demonstrating
a(n)__________________.
A.Cost plus pricing strategy
B.Price war
C.Markup on sales price strategy
D.Average-cost pricing strategy
E.Target return pricing strategy
A price war occurs when a company purposefully makes pricing decisions to undercut
one or more competitors and gain sales and net market share.
With reference to the VALS¢ framework, _______appreciate the unconventional. They
are active and impulsive, seeking stimulation from the new, offbeat, and risky.
A.Makers
B.Survivors
C.Believers
D.Experiencers
E.Thinkers
With reference to the VALS¢ framework, experiencers appreciate the unconventional.
They are active and impulsive, seeking stimulation from the new, offbeat, and risky.
They spend a comparatively high proportion of their income on fashion, socializing,
and entertainment.
The airline industry must comply with regulations set by the Federal Aviation
Administration and the National Safety Board. A discussion of this would be included
in the ___________ part of a marketing plan.
A.Socio-cultural/Demographic
B.Firm structure and systems
C.Political, legal, and ethical
D.Firm resources
E.Threat of new entrants
A discussion related to compliance with regulations set by various regulatory agencies
would be included in political, legal, and ethical part of a marketing plan.
_____________ are incurred over time, regardless of volume.
A.Fixed costs
B.Variable costs
C.Total costs
D.Both A & B
E.Both B & C
Fixed costs are incurred over time, regardless of volume. Variable costs fluctuate with
volume. Total costs are simply a sum of the fixed and variable costs.
Compared to B2B markets, which of the following is a characteristic of a B2C market?
A.Fewer but larger customers.
B.More complex supply chain.
C.Complex buying process.
D.Inelastic product demand.
E.Geographic concentration of suppliers.
B2C markets have a complex supply chain structure because the products move through
various channels to reach the customers.
Before a company develops a full prototype of a new product, it often _________.
A.Creates simulations of the product so consumers can virtually feel like they have
experienced the product
B.Creates packages and labels for the product
C.Creates advertisements that show the use of the product by the intended product users
D.Creates jingles that will be used to introduce the new prototype to the market
E.All of the above
Simulation is one of the ways to allow consumers to experience a product without
actually producing it.
The relationship between consumer demand for products and demand for B2B products
is said to be _______________.
A.Upward sloping demand
B.Downward sloping demand
C.Derived demand
D.Equal demand
E.Elastic demand
Demand for B2B products originates from the demand for consumer products, or, put
another way, demand for B2B products is derived demand. For example, if consumers
are not buying Toyota cars and trucks, then there is no need for Toyota to purchase
Goodyear tires.
The population of the U.S. is not only growing, it is ___________.
A.Getting younger
B.Becoming more homogenous
C.Getting older
D.Getting married earlier
E.Having a shorter life expectancy
The population of the US is growing and it is also getting older. This is an important
marketing insight.
Coming to grips with the impact of Wiersema’s six market realities should drive firms
to realize ______________.
A.That marketing is central to the organization
B.Customer orientation is not really necessary in most manufacturing firms
C.Non-profit and government agencies have long understood the importance of the
customer
D.Make just-in-time manufacturing the central focus
E.They need to invest in excellent accounting systems to save money
Coming to grips with the impact of Wiersema’s six market realities greatly heightens the
role of marketing in the firm as the nexus of an organization’s customer-focused
strategies.
A value network perspective is a macro-level strategic approach that is being adopted
by many firms in part because of the intense competition to cut __________ and
maximize ____________ every step of the way to market.
A.Costs, process efficiencies
B.Process efficiencies, costs
C.Costs, profits
D.Time inefficiencies, profits
E.None of the above
Cutting costs and maximizing process efficiencies are essential for creation of value in
the value network.
Compare and contrast the bargaining power of suppliers with the bargaining power of
buyers.
Keegan has always followed economics and politics very closely. Over the years, he has
become very interested in the ideas of pricing based purely on economic models and
solely for profit maximization and how both of these affect ethical concerns. What do
you think about Keegan’s ideas and the ethical implications of each?
Define value chain.
The number of salespeople the company will need for direct selling activities is
determined by dividing the _____________ by the number of hours available per
salesperson.
Jacob has spent the last few years developing a new gaming system for one of the major
gaming companies. He is getting ready to go meet with the head of the new products
division and he has been asked to bring a pricing strategy along with his presentation.
What pricing strategy should Jacob use? Keep in mind that significant costs have been
put into researching and creating the system and that they will be the first company with
a system of this type.
In the B2B market, how do you segment by operating variables?
Explain the ethical dilemma faced by users and providers of pay-per-click Internet
advertising. How would you solve this if you were a user? How would you solve this if
you were a provider?
Identify Porter’s three primary categories of competitive strategy.
Clark sells sports memorabilia at his store. He is having a problem developing
relationships with customers and started to talk to his friends about it. Clark’s friend
Dennis told him that he should offer additional services to increase the value for the
customer. What kinds of services could Clark offer?