Scenario 8.2
Use the following to answer the questions.
KFC opened its first franchised restaurant outside of North America in England in
1964. Now, over a billion KFC chicken dinners are sold annually at more than 80
countries and territories around the world. KFC has established its own processing
plants in these countries to ensure the quality of its chicken and other food items. In the
U.S., the menu at KFC is usually the same in all restaurants, with only a very few
additional items available in different regions. However, when KFC first franchised into
Asian countries, it added many unusual local delicacies to the menu, such as fried
octopus and squid. Additionally, the franchised stores in Asian countries display cooked
food in “plates” near windows at the front of the store. This is a tradition for many
restaurants in these countries to offer the customer passing by a preliminary view of
their product.KFC’s establishment of international production/processing facilities is an
example of ______.
a. direct ownership
b. franchising
c. strategic alliance
d. outsourcing
e. contract manufacturing
Wholesalers sell primarily to ultimate consumers.
a. True
b. False
Tara is beginning her week as a sales representative for Logitech Technology. She
decides to start the day by developing a list of potential customers, which is called:
a. preapproaching.
b. surveying.
c. scouting.
d. prospecting.
e. screening.
Grant is responsible for the marketing promotions of a small firm of consultants. It is
most likely that his firm will use to create and implement its advertising campaigns.
a. an advertising agency
b. a group of multi-skilled managers
c. an advertising department
d. a freelance specialist
e. one or two individuals
A business that contributes resources to the community to improve the quality of life is
taking on a(n)
responsibility.
a. ethical
b. legal
c. cost
d. philanthropic
e. economic
Several conditions must exist for market segmentation to be successful. These
conditions include all of the following except:
a. the total market should be divided so that segments can be compared on sales
potential, costs, and profits.
b. customers’ needs for the product must be homogeneous.
c. the company must be able to reach the chosen segment with a particular marketing
mix.
d. segments must be identifiable and divisible.
e. at least one segment must have enough profit potential to justify developing and
maintaining a special marketing mix for that segment.
Department stores are distinctly service-oriented.
a. True
b. False
Based on what he has heard regarding the profitability of such items, Paul Goldstein is
considering adding a fresh shellfish case in his grocery store. Paul knows very little
about this product or the concerns of shoppers who buy shellfish. He is looking for help
in display set-up and merchandising ideas. Which of the following types of wholesalers
should he contact?
a. Cash-and-carry
b. Limited-line
c. General merchandise
d. Rack jobber
e. Limited-service
To attract customers into a store, Safeway advertises its milk at a lower cost, hoping
that customers will purchase other groceries as well. This pricing strategy is called:
a. price lining.
b. special-event pricing.
c. differential pricing.
d. comparison discounting.
e. price leader pricing.
Changes that affect the sensory appeal of a product by altering its taste, texture, sound,
smell, or visual characteristics are called modifications.
a. aesthetic
b. functional
c. operational
d. quality
e. feature
A market comprised of individuals or organizations with diverse product needs is called
a(n)_____ market.
a. undifferentiated
b. concentrated
c. homogenous
d. differentiated
e. heterogeneous
The product deletion process is similar to the______________step of the new-product
development process because both involve deciding whether the product should be in
the product mix based on an assessment of sales, costs, and profits.
a. idea generation
b. screening
c. product development
d. commercialization
e. business analysis
are audio or video files that can be downloaded from the Internet with a subscription
that automatically delivers new content to listening devices or personal computers.
a. Wikis
b. Blogs
c. Podcasts
d. Memes
e. Tweets
A breakfast cereal maker most likely will not use personal selling to promote its
product. a. True
b. False
Yankee Candle, a candle and gift marketing organization has a(n)_________vertical
marketing system arrangement with its franchised retail store operations.
a. corporate
b. administered
c. negotiated
d. contractual
e. horizontal
A salesperson’s performance is often compared with the performance of other
salespeople operating under similar conditions.
a. True
b. False
Buyers are engaged in limited decision making behavior when purchasing frequently
bought, low-cost items needing very little decision effort.
a. True
b. False
Seasonal discounts provide price incentives to customers during peak-selling seasons.
a. True
b. False
Due to limited resources, a consumer decided to serve Hawaiian Punch to a New Year’s
Eve party crowd instead of Korbel champagne. As a result of this action, Korbel and
Hawaiian Punch can be viewed as competitors. a. generic
b. product
c. total budget
d. oligopolistic
e. pure
Albott Laboratories offers ceramic coffee mugs to its physician customers when it
promotes a new drug. This example illustrates Albott’s use of_________.
a. packaging
b. personal selling
c. sales promotion
d. public relations
e. telemarketing
Why is it important for marketers to assess competitors before entering a market
segment?
Describe the eight stages of the process that marketers can use to establish prices.
Discuss the concept of green marketing and why it is important to marketers.
What are the variables involved in the process of segmenting business markets?
What are the three major issues that need to be considered in the process of evaluating
market segments?
What are the major differences between sales-based and communications-based
advertising objectives?
Give a brief account of the four product categories used in the Boston Consulting
Group (BCG) product-portfolio analysis.
Identify and explain the dimensions of product quality.
Identify and discuss some of the key objectives in using sales promotion.
Why is ethics an important consideration in marketing research?