The marketing concept stresses finding the right customers for the company’s products.
Hard-core loyals can show the firm which brands are most competitive with its own.
In the VALS segmentation system, Thinkers are characterized as being successful,
sophisticated, active, “take-charge” people with high self-esteem.
Although salespeople are legally prohibited from saying things about their products that
are not true, they may legally suggest things about competitors’ products that are not
true.
Most established companies focus on incremental innovation rather than radical
innovation.
The traditional view of marketing is that the firm makes something and then sells it.
Using the industry approach, competitors are defined as companies that satisfy the same
customer need.
Good marketing insights often form the basis of successful marketing programs.
Companies are increasingly reducing the number of suppliers they utilize, and there is a
trend toward single sourcing.
When State Farm uses consumer research to create a mental map of consumers that
indicates that consumers perceive State Farm as conservative, safe, responsive, and
convenient, they are interested in subliminal perceptions.
Customers who load up with personalized options in their BMWs ‘” generating more
profitability for BMW and its dealers ‘” are less loyal.
If expected service falls below perceived service, customers are disappointed.
The highest-ranking companies in a 2013 Forrester study of services that meet customer
needs and were easy and enjoyable to do business with included Marshalls, TJ Maxx,
JCPenney, and Marriott Hotels & Resorts.
As a selling point, durability commands a particularly high pricing premium, especially
for products that are subject to rapid technological obsolescence, as are personal
computers and video cameras.
Concept testing means validating the product concept by discussing within the design
group.
Internal analysis in SWOT involves analyzing the possible opportunities and threats
that can come from the market.
Purchasers of theatre tickets receive a 20 percent discount if they purchase and pay for
the full season at one time. This is an example of what type of product-mix pricing?
A) mixed bundling
B) pure bundling
C) cross-promotion
D) captive pricing
E) two-part pricing
If Starbucks considers quick-serve restaurants and convenience shops in its competitive
frame of reference, then intended ________ might be quality, image, experience and
variety, while intended ________ might be convenience and value.
A) PODs; POPs
B) POPs; PODs
C) substantiators; image variables
D) design variables; personality variables
E) image variables; personality variables
Kate is coaching members of her field sales team to help them understand how they
spend their time and how they might increase their productivity. She is using ________
to provide them with feedback.
A) time-and-duty analysis
B) a sales quota
C) a feed-forward approach
D) an expense allowance
E) a norm for prospect calls
Which of the following is an example of a company that serves a niche market?
A) a large apparel manufacturing company that produces a wide range of products for
different segments
B) a software company that creates standardized supply chain applications for
manufacturers
C) a manufacturer who creates tools such as bolts, latches, door handles etc. for
left-handed individuals
D) a large multinational manufacturer of consumer products, FMCG products, and
consumer electronics
E) a company that manufactures denim pants for men and women of all ages
Which of the following is generally acknowledged as the most powerful advertising
medium and reaches a broad spectrum of consumers at low cost per exposure?
A) television
B) radio
C) newspapers
D) magazines
E) billboards
A salesperson who relies on creative methods for selling a company’s tangible or
intangible offerings is called a(n) ________.
A) demand creator
B) deliverer
C) order taker
D) missionary
E) solution vendor
Which of the following is a sales promotion tool that typically does NOT build brand
image?
A) consumer refund offers
B) free samples
C) premiums related to the product
D) frequency awards
E) coupons that include a selling message
IBM lets frontline employees spend up to $5,000 to solve a customer problem on the
spot, which is an example of which of the following steps that a marketing CEO can
take to create a market- and customer-focused company?
A) Empower the employees.
B) Hire strong marketing talent.
C) Get outside help and guidance.
D) Install a modern marketing planning system.
E) Develop strong in-house marketing training programs.
________ refers to the decision-making process by which formal organizations
establish the need for purchased products and services and identify, evaluate, and
choose among alternative brands and suppliers.
A) Marketing channels
B) Organizational buying
C) Corporate retailing
D) Brand auditing
E) Inventory control
One common difficulty in creating a strong, competitive brand positioning is that many
of the attributes or benefits that make up the points-of-parity and points-of-difference
are ________.
A) negatively correlated
B) always correlated
C) directly proportional
D) never correlated
E) positively correlated
________ is finding the most cost-effective media to deliver the desired number and
type of exposures to the target audience.
A) Media scheduling
B) Content analysis
C) Media selection
D) Communication design
E) Copy testing
________ costs for a manufacturer consist of setup costs and running costs.
A) Inventory-carrying
B) Containerization
C) Wholesaling
D) Order-processing
E) Transportation
After creating a product prototype, a company tests it within the firm to see how it
performs in different applications. The company refines the prototype to correct the
mistakes found in in-house testing. What should be the next step?
A) commercializing the product
B) performing concept testing
C) conducting beta testing with customers
D) creating a marketing strategy for the product
E) performing business analysis
A team formed at Intercom Inc. to generate ideas for new products conducts frequent
meetings and engages in activities such as mind mapping and brainstorming. Most of
the meetings are conducted at informal locations away from office. These workplaces
are called ________.
A) skunkworks
B) idea funnels
C) research centers
D) stage-gate systems
E) contextual bases
A firm that serves small market segments that are not being served by bigger firms is
known as a market ________.
A) challenger
B) leader
C) follower
D) nicher
E) entrant
According to PRIZM, the ________ cluster is characterized by educated, midscale, and
multiethnic, urban couples in America’s fast-growing cities. Concentrated in a handful
of metropolitan areas such as Las Vegas, Miami, and Albuquerque, these households
feature older home owners, empty nesters, and college graduates.
A) Beltway Boomers
B) Old Milltowns
C) Cosmopolitans
D) Young Digerati
E) Winner’s Circle
Which of the following statements about market segmentation is true?
A) It involves changing the identity of a product, relative to the identity of competing
products, in the collective minds of the target market.
B) It is a process of evaluating each segment’s attractiveness and selecting one or more
to enter.
C) It is a process of creating an image or identity of the product in the minds of the
target market.
D) It is a process of identifying and profiling distinct groups of buyers who differ in
their needs and wants.
E) It is the quality of how marketers go to market with the goal of optimizing their
spending to achieve good results.
Anderson and Mervin have urged marketers to present flexible market offerings to all
members of a segment. A flexible market offering consists of two parts. Which part
contains the product and service elements that all segment members value?
A) naked solution
B) discretionary solution
C) maximum solution
D) pseudo solution
E) virtual solution
Southwest Airlines offers a Rapid Rewards program that allows customers to count
flights they have taken toward free future flights. This is an example of a(n) ________.
A) cross-selling program
B) value delivery system
C) club membership program
D) activity-based costing program
E) up-selling program
Satisfied customers constitute the company’s ________.
A) customer relationship capital
B) customer churn
C) target audience
D) high-value customers
E) customer touch points
The “Got Milk” campaign was intended to boost sagging milk consumption among
Californians in the 1990s. The campaign ads highlighted the inconvenience of running
out of milk when intended to be used with certain foods, such as cookies or muffins,
advising consumers to stock up on milk to avoid such inconveniences. The “Got Milk?”
campaign is an example of ________ advertising.
A) informational
B) reminder
C) institutional
D) comparative
E) reinforcement
What are the five main challenges associated with database marketing?
How do successful direct marketers view customer interactions?
Give one example of a retailer that uses standalone stores as opposed to stores located
in malls. Why do you think retailers opt for this channel?
Berry’s is a chain of shoe stores. The marketing team suggested that the company use
permission marketing instead of interruption marketing. How can this benefit the
company?
What are the different possible consumer reference prices?
Why are social media important to marketers?