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Superstores are much larger than regular supermarkets and offer a large assortment of
routinely purchased food products, nonfood items, and services.
You receive a text message on your phone from Upscale Furnishings about an
upcoming sale on custom furniture. Upscale Furnishings is developing a direct
customer relationship with you through kiosk marketing.
Companies use PR to build good relations with consumers, investors, the media, and
their communities.
Category killers are giant specialty stores that carry a very deep assortment of a
particular line.
During the presentation step of the selling process, the salesperson tells the "value
story" to the buyer, showing how the company's offer solves the customer's problems.
Full-service stores usually carry more specialty goods for which customers need or
want assistance or advice.
Advertising is the least used of the major promotion tools, although it has great
potential for building consumer awareness and reference.
The distribution strategy during the decline stage of PLC involves building more
intensive distribution networks.
Each department in a company can be thought of as a link in the company's internal
value chain.
Many large and mature companies get stuck in formulated marketing. They pore over
the latest Nielsen numbers, scan market research reports, and try to fine-tune their
competitive strategies and programs.
The four major communication functions are encoding, decoding, response, and noise.
When sales of a product drop during the decline stage of the PLC, a company typically
modifies the marketing mix, the product, or the market.
When backed by buying power, needs become wants.
Markup pricing is used when a firm tries to determine the price at which it will break
even or make the target return it is seeking.
Market development involves company growth by identifying and developing new
market segments for current company products.
Refer to the scenario below to answer the following question.
The Treble Clef sells music books, musical instruments, and novelty gifts of a musical
nature. In recent years, owner Gary Zahn has served as the local representative of
several musical instrument manufacturers, providing a contact person for three local
schools. He sends a sample of a manufacturer's products to schools that request a
demonstration or presentation. "If we don't have it, we can definitely get it for you,"
Gary tells all Treble Clef visitors and customers.
Most walk-ins are particularly interested in a specific piece of sheet music from a
particular era or just browsing among the hundreds of music knick-knacks in the store.
Gary spends most of his time making presentations to beginners at the local schools and
making biweekly visits to the schools to deliver instruments, make minor repairs, or
pick up instruments to ship to the manufacturer for more complicated repairs.
After establishing a loyal customer base, Gary was convinced that a Treble Clef Web
site could benefit a variety of customers. He began with a simple Web site that provided
information about the store and the types of gifts and services available. The site
received so much response that Gary added a question-and-answer option. Questions
poured in, ranging from "Where can I get sheet music for 'Hello, Dolly'?" to "Do you
carry clarinet reeds?" to "My saxophone needs two new pads. When will you be at
Elmhurst School to repair it?" The Web site is now able to accept credit card orders, and
gifts can even be wrapped and shipped for no extra charge.
"This Web site idea was fantastic!" Gary admitted. "It allows us to be so responsive.
And our novelties sales have doubled!"
In addition to sending samples of sheet music to schools, Gary sends school music
directors messages with links to sample digital clips of the compositions. What kind of
marketing is this?
A) e-mail marketing
B) viral marketing
C) kiosk marketing
D) mobile marketing
E) catalog marketing
A group of business entrepreneurs who worried about their teenage children drinking
and driving decided there must be some way to approach this problem proactively. They
came up with an idea for a pair of blurry goggles. They believed looking through the
goggles would simulate what the world looks like when someone is seriously
intoxicated. They developed a crude pair of blurry goggles to show prospective
customers. This crude pair of goggles is known as a ________.
A) prototype
B) concept test
C) product concept
D) product image
E) product idea
Refer to the scenario below to answer the following question.
Ruben Delgado was making wooden pens and pencils, which had unique engravings, as
a hobby until Simon Yoder recognized Ruben's talent. Simon immediately ordered 250
pens and pencils of various styles to be displayed in his shop's showcase. Within three
months, the wooden pencils were a hit with all students! Ruben Delgado had never
thought of marketing his talent, but Simon's enthusiasm and the recent sales were
enough to change his mind.
With limited resources, Ruben contacted three additional specialty shops within 100
miles that were situated near schools. He explained his manufacturing processes and
engraving options to each. All three shop owners placed a trial order. Within two
months, just prior to the holiday season, each shop owner placed an additional order.
Ruben was ecstatic! "I figured business would slow down after that," Ruben stated, "but
in February I was contacted by Elmore Distributors. At that point, I had to make a huge
decision about how far I wanted to go with this business."
Elmore Distributors provides products for school fundraisers in a seven-state area.
Ruben was offered a two-year contract and immediate inclusion in Elmore's
promotional flyer. Ruben Delgado accepted the offer and, along with it, the
responsibility to produce thousands of wooden pens and pencils. "I had to get a grip on
the magnitude of this project," Ruben added. He decided to place his major focus on the
large contract with Elmore. However, to avoid placing his total emphasis with one
customer, Ruben continued nurturing his four previously established accounts without
targeting any additional customers.
"At this point, I had set up an assembly line in a rented building," Ruben explained. "I
had to hire three full-time employees to work the line while I managed the customer
orders and purchased materials." Ruben paused. "But I can't take the Elmore project for
granted. It might not always be there. I'll have to have a good alternate plan if that day
comes."
In the scenario, Ruben has segmented his market based on ________.
A) geography
B) benefits sought
C) occasion
D) degree of loyalty
E) demographics
Which of the following is an example of a raw material exporting economy?
A) Sweden
B) Russia
C) the United Kingdom
D) Chile
E) Brazil
How has do-not-call legislation helped direct marketers?
A) Marketers are compensated by the Federal Trade Commission for lost sales caused
by the laws.
B) Direct marketers have outsourced their activities to firms that are exempt from such
laws.
C) Direct marketers have developed kiosks as an alternative to telemarketing.
D) Telemarketers are allowed to call customers for a small fee.
E) Telemarketers have developed opt-in calling systems that target consumers who have
chosen to be contacted and therefore are less invasive.
Individuals and households that buy or acquire goods and services for personal
consumption make up the ________.
A) consumer market
B) market offering
C) market mix
D) subculture
E) social class
Electrola Inc. is currently designing a new product line with the goal of making each
product easy to recover, reuse, or recycle. Electrola Inc. hopes to recover many of these
products when they reach the end of their life cycle and reuse their components in new
products. Electrola Inc. is in the ________ stage of environmental sustainability.
A) pollution prevention
B) new clean technology
C) product stewardship
D) beyond greening
E) sustainability vision
Opinion leaders are also referred to as ________.
A) influentials
B) lower uppers
C) innovators
D) lagging adopters
E) surrogate consumers
Bose offers $50 cash back to customers who purchase a new speaker and send in a
proof of purchase. This is an example of a ________.
A) rebate
B) POP promotion
C) price pack
D) premium
E) sample
Rather than assuming that strategic options are bounded by the current environment,
firms adopting a(n) ________ to the marketing environment develop strategies to
change the environment.
A) environmental stance
B) proactive stance
C) reactive stance
D) relativist approach
E) no-compromise approach
For the past ten years, Bill and Margaret have saved money to go to the Super Bowl
should their team, the Chicago Bears, reach the finals of the NFC championship. This is
the year, and several tour companies offer attractive, but very similar, packages to the
game. Since all packages are pretty much the same, they have chosen one that fits their
budget. Bill and Margaret are most likely exhibiting ________.
A) complex buying behavior
B) dissonance-reducing buying behavior
C) habitual buying behavior
D) consumer capitalism
E) consumer ethnocentrism
Which of the following strategies involves weeding out weaker brands and focusing
marketing dollars only on brands that can achieve the number one or number two
market share positions with good growth prospects in their categories?
A) megabrand strategies
B) niche marketing strategies
C) social marketing strategies
D) co-branding
E) licensing
Which of the following is NOT a market-oriented business definition?
A) "We empower customers to realize their dreams."
B) "We make high-quality consumer food products."
C) "We sell success and status."
D) "We create the Hilton experience."
E) "We bring innovation to every home."
The term demand chain is considered limited because it ________.
A) advocates a make-and-sell view of the market that relies on a responsive supply
network
B) suggests that planning starts with raw materials, productive inputs, and factory
capacity
C) takes a step-by-step, linear view of purchase-production-consumption activities
D) ignores the evolution of the global marketplace
E) overlooks the needs of target customers
Which of the following is true with regard to a market segment?
A) A market segment consists of consumers with dissimilar needs and preferences.
B) A market segment consists of consumers who respond in a similar way to a given set
of marketing efforts.
C) Very few markets have segments.
D) Dividing the market into segments decreases the efficiency of the selling process.
E) Dividing the market into segments reduces composite demand.
It is most accurate to say that the recession of 2008/2009 has resulted in ________.
A) an overselling of private goods
B) a disbelief in the American dream
C) a decline in conspicuous spending
D) an increase in materialism
E) the elimination of false wants
Why are customers often considered the most important sources of new product ideas?
A) Customers are close to the market and can pass along information about problems
and new product possibilities.
B) The company can analyze customer questions and complaints to find new products
that better solve consumer problems.
C) Customers buy competing new products, take them apart to see how they work,
analyze sales, and then decide to purchase.
D) Customers review the sales, costs, and profit projections for a new product to find
out whether the product satisfies the company's objectives.
E) Customers estimate the minimum and maximum sales to assess the range of risk.
The first step in creating effective advertising messages is ________.
A) selecting specific media vehicles
B) planning a message strategy
C) determining return on advertising investment
D) choosing media timing
E) executing the message
To break through the clutter, many marketers have subscribed to a new merging of
advertising and entertainment, dubbed ________.
A) Madison & Vine
B) Wall St. & Fifth Ave
C) buzz marketing
D) podcasting
E) webisodes
Overstock.com, a Web seller that buys furniture, clothing, electronics, and more from a
variety of producers at less-than-regular wholesale prices and then charges customers
less than retail, is a(n) ________.
A) specialty store
B) off-price retailer
C) factory outlet
D) wholesale club
E) category killer
How do resellers answer criticism of the high costs of distribution?
Discuss direct and indirect exporting. What are the advantages of exporting?
What structure can an American family have now, as the traditional family has
changed?
Distinguish between business markets and consumer markets.
What are stars according to the BCG growth-share matrix?
How do merchant wholesalers and agents/brokers differ?
A marketer's fixed costs are $400,000, the variable cost is $16 per unit, and the price of
the product is $24 per unit. What is the company's break-even point in dollar sales?
In nineteenth-century Dublin, Molly Malone sold mussels at a market while shouting to
passersby, "alive-alive-oh." Was Molly taking an outside-in or inside-out perspective?
Explain.
A company has four choices when it comes to developing brands. Describe them.
Distinguish between value-based pricing and cost-based pricing.
