Despite conventional thinking, __________ accounts for the bulk of promotional
spending in many firms. This is especially true for firms selling consumer products in
grocery stores and mass-merchandise retailers.
a. personal selling
b. advertising
c. public relations
What is the primary disadvantage associated with using financial incentives as a means
of developing customer relationships?
a. They take a long time to work.
b. Customers may resist the use of financial incentives.
c. They can be expensive to use.
d. They can promote continual brand switching.
e. All of the above.
Firms using the __________ approach during the decline stage of the product life cycle
will gradually reduce marketing expenditures and use a less resource-intensive
marketing mix.
a. divesting
b. harvesting
c. repositioning
In the 5W model of customer analysis, what is the primary emphasis of the ‘What’
question?
a. Assessing how customers consume and dispose of products.
b. Determining the relevant characteristics that define markets.
c. Assessing how purchases vary across different distribution outlets.
d. Identifying the basic need-satisfying benefits provided by the firm’s products.
e. Identifying the situational influences that affect the customer buying process.
The basic assumption of __________ is that all customers in the market have similar
needs and wants that can be reasonably satisfied with a single marketing program.
a. holistic marketing
b. mass marketing
c. market concentration
Which of the following examples best describes an advance in backstage technology?
a. technology that allows consumers to carry portable music players in their pockets
b. advances in electronics that allow manufacturers to offer 3D television
c. the invention of satellite radio
d. the use of radio frequency identification (RFID) to control inventory and logistics
e. All of the above are examples of advances in backstage technology.
When a firm begins to charge high fees for additional services to non-profitable
customers, it has determined that the __________ of those customers is too low to
warrant added efforts at maintaining a relationship with them.
a. client value
b. lifetime value
c. relational value
Based on the requirements for successful implementation, which of the following is the
best candidate to become the “5th P” of marketing?
a. productivity
b. people
c. planning
Larger financial institutions now offer a wide range of services under one roof, from
banking to stock trading. These institutions have moved away from increasing their
market share to instead focus on increasing their:
a. share of market.
b. share of relationships.
c. share of customer.
Advances in supply chain management now allow companies to customize products to
meet the needs of individual customers on a mass scale. This individualized approach to
market segmentation is called:
a. individualization.
b. one-to-one marketing.
c. mass customization.
To be successful, firms must move potential customers beyond mere interest in the
product. Good promotion will stimulate __________ by convincing potential customers
of the product’s superiority and its ability to satisfy specific needs.
a. dedication
b. investigation
c. attention
Which of the following sales promotion methods would you recommend to a packaged
goods marketer who wants to stimulate trial of a new product?
a. a contest or sweepstake
b. a coupon
c. a free sample of the product
Which of the following statements about value is FALSE?
a. Value includes the concept of quality, but it is broader in scope.
b. Value takes into account every marketing program element.
c. Value, unlike quality, means the same thing to all customers.
d. Value is critical to maintaining long-term customer relationships.
e. Value allows for the necessary balance among the five types of utility.
With respect to the text’s advice in conducting a SWOT analysis, which of the following
best describes ‘Look for Causes, Not Characteristics’?
a. Break down clichés into meaningful customer-oriented issues.
b. Refrain from conducting a single generic analysis for the entire organization.
c. Gauge the actual perceptions of customers that give rise to the firm’s strengths and
weaknesses.
d. Focus on the resources possessed by the firm and/or its competitors that are the true
causes for the firm’s strengths, weaknesses, opportunities, and threats.
e. Clearly differentiate internal issues from external issues.
Which of the following statements about pricing decisions in the marketing program is
TRUE?
a. Price is one of two elements of the marketing mix that leads to revenue.
b. Price has a direct connection with customer demand.
c. Pricing is the least manipulated element of the marketing mix.
d. Pricing is the most difficult element of the marketing mix to change.
e. Customers will always equate higher prices with higher quality products.
Discuss the challenges associated with pricing services. How do service firms use yield
management systems to balance price with revenue and maximize capacity utilization?
Identify and discuss the major problems associated with creating marketing plans. What
are some potential ways that firms and managers can overcome these problems?
Identify and explain the major characteristics of marketing goals.
Identify the unique characteristics of services (relative to tangible goods) and list the
marketing challenges created by each characteristic.
What is the relationship among marketing ethics, strategic planning, and organizational
performance? How is this related to having a stakeholder orientation?
Explain the key differences between product differentiation and product positioning.
Other than branding, what are other factors on which product differentiation can be
based?
Draw, label, and explain the pyramid of social responsibility. What are the requirements
for a firm if it truly wants to be ethical and socially responsible?
Explain the five different target marketing strategies and give examples of firms that
use each one. Also, discuss how firms might approach the targeting of noncustomers.
Explain why distribution and supply chain management are critical to achieving a
sustainable competitive advantage and true differentiation in the marketplace. How are
these issues related to other elements of the marketing program in determining
competitive advantage?
Discuss each of the three competitive advantage strategies (operational excellence,
product leadership, customer intimacy) and explain why most firms pursue only one of
these strategies.