Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
The goal of persuasive promotion is to:
a. stimulate a purchase or an action.
b. increase brand awareness.
c. describe available services.
d. remind the consumers of where to buy the product.
e. maintain top-of-mind consumer awareness.
Answer:
The most popular sales incentives are .
a. cash awards
b. vacations
c. plaques and trophies
d. stock options
e. public recognition in front of family and peers
Answer:
WataniyaMobile
Wataniya Mobile is offering cellular service in the Palestinian territories. It is only the
second cell phone carrier in the region and is significant because it is owned by foreign
companies and investors like the Qatari royal family and the Palestine Investment Fund.
The new service is aimed at increasing cell phone penetration, which is only 35 percent,
in this economically challenged area. It has not been easy for Wataniya, though. It took
two years to gain the required license from Israel, which controls the Palestinian
territories' airwaves and bandwidth required for the service. Even though Wataniya is
allowed bandwidth, it has only received 3.8 megahertz of bandwidth from Israel, which
is not enough for it to offer 3G mobile services that enable Web browsing and e-mail.
Refer to Wataniya Mobile. The fact that many potential customers in Wataniya's market
cannot afford a cellphone is part of which environment?
a. Cultural
b. Technological
c. Economic
d. Natural
e. Legal
Answer:
A product unknown to the potential buyer or a known-product that the buyer does not
actively seek is referred to as an undesirable product.
a. True
b. False
Answer:
Advergaming is an advertising format where companies put ad messages in Web-based,
mobile, console, and handheld video games to advertise or promote products.
a. True
b. False
Answer:
Every October through December, Hickory Farms opens a temporary store in many
malls to sell products during the Christmas season without the long-term commitment
of a more expensive retail lease. This is an example of a pop-up shop.
a. True
b. False
Answer:
RapalaVMCCorporation
Finlandbased Rapala VMC Corporation is the world's largest fishing lure manufacturer.
It developed its first fishing lure""a cigarshaped minnow""in 1962. The annual market
for fishing lures in terms of retail sales is approximately $600 million. Rapala VMC
garnered one-third of that amount in 2008. New lures must be introduced each year in
order to stay competitive in this industry. Like other lure manufacturers, Rapala focuses
on two questions in developing and making new lures: Does it work, and does it look
good? Developing a new lure takes two or three years and involves extensive field
testing by tournament professionals and fishing guides. At the annual fishing industry
trade show in 2008, Rapala unveiled the "dream lure for the 21st century."
Refer to Rapala. The testing of new lures by tournament professionals and fishing
guides would take place in which stage of new-product development?
a. Commercialization
b. Idea generation
c. Idea screening
d. Concept testing
e. Product development
Answer:
Videos made by teens that focus on fashion are called:
a. flames.
b. hauls.
c. caches.
d. feed dumps.
e. heaves.
Answer:
One of the new developments in retailing is mcommerce. The "m" in mcommerce
stands for:
a. motivated
b. multimedia
c. marketing
d. managed
e. mobile
Answer:
At a price of $1,192,057, the Bugatti Veyron may be the most expensive street-legal car
on the market today. Obviously, Bugatti is NOT using a(n) _____pricing objective in
setting the price for this car.
a. inelastic or supply-oriented
b. market share or sales maximization
c. profit maximization or target return on investment
d. status quo or satisfactory profits
e. demand-oriented or supply-oriented
Answer:
Subgroups of a single business or collection of related businesses within a larger
organization are referred to as:
a. strategic marketing organizations
b. strategic subgroups
c. market segments
d. business segments
e. strategic business units
Answer:
After establishing pricing goals, managers should estimate total revenue at a variety of
prices. Next, they should ____ . Only after performing this task are they are ready to
estimate how much profit and how much market share can be earned at each possible
price.
a. choose the ROI target
b. determine corresponding costs for each price
c. estimate industry supply
d. implement pricing segmentation
e. establish geographic pricing heuristics
Answer:
____ is a measure of the number of times an individual is exposed to a brand message.
It is used to measure the intensity of a specific medium's coverage.
a. Synchronization
b. Reach
c. Cost per contact
d. Media scheduling
e. Frequency
Answer:
Advertising in the form of a 30-minute advertisement that resembles a television talk
show is called a(n):
a. Infomercial.
b. extended sales pitch.
c. mega-mercial.
d. ad expander.
e. prolonged advertisement.
Answer:
Modern mobile advertising as a viable marketing strategy has become possible
primarilybecause of the development of:
a. the microchip.
b. the PC.
c. smartphone technology.
d. tablet laptops.
e. GPS technology.
Answer:
Unsought products typically are products that:
a. consumers purchase when they see them in a convenient location.
b. consumers definitely don"t want.
c. only require reminder advertising to be successful.
d. require little or no decision making by the buyer.
e. consumers don"t know about or don"t actively look for.
Answer:
DHL maintains a strategic alliance with UPS because it has confidence in UPS's
reliability and integrity. This condition is referred to as:
a. Trust.
b. tomo.
c. commitment.
d. Amae.
e. reciprocity.
Answer:
BoutiqueHotels
In an industry where guests are tired of cookie-cutter hotels, some consumers are
looking for personalized service, which can be found in boutique hotels. Boutique
hotels cater to their guests' sense of their personal image as being discriminating, more
sophisticated, and more hip. Frequently, these guests don"t want to be where the crowds
are. This is a small but growing market niche. There are no generally recognized rules
for boutique hotels, but they tend to be small and service oriented, with high-style decor
and top-notch restaurants. Employees are called cast members. Amenities include
cordless phones, DVR players hooked up to HD televisions, Aveda brand bath and hair
products, and down comforters and pillows.
Refer to Boutique Hotels. Since boutique hotels are typically independently owned
and/or part of small chains, people who seek out boutique hotels cannot be sure of what
type of amenities or specific services they will be provided. In other words, the services
provided by boutique hotels tend to be relatively high in:
a. instability
b. inseparability
c. intangibility
d. heterogeneity
e. perishability
Answer:
The degree to which a product can be used on a limited basis represents which product
characteristic influencing the rate of adoption?
a. Complexity
b. Trialability
c. Observability
d. Relative advantage
e. Sampling
Answer:
This summer, college student Pat is planning on selling kites at Panama City Beach. He
has found some suppliers and has preordered all of the kites he thinks he can sell this
summer. What type of a distribution channel relationship does Pat have with his
suppliers?
a. Arm'slength
b. Functional
c. Cooperative
d. Hierarchical
e. Integrated
Answer:
States developed unfair trade practice acts to:
a. enforce the Sherman Act that makes bait pricing illegal.
b. prevent oligopoly leaders from getting together and fixing prices at the highest the
market will bear.
c. establish penalties for companies that break the Clayton Act by engaging in predatory
pricing.
d. make sure that all pricing policies are equitable.
e. protect small local firms from giant companies that operate efficiently on razor-thin
profit margins.
Answer:
All of the following are geographic pricing methods EXCEPT:
a. latitude pricing.
b. FOB origin pricing.
c. zone pricing.
d. freight absorption pricing.
e. basing-point pricing.
Answer:
Because her mother only went to the supermarket once a month, this is how Monique
prefers to do her grocery shopping. One of the reasons Monique is such an efficient
shopper is that, like her mother, Monique believes, "Waste not, want not." The passing
down of norms and values to Monique is an example of:
a. consumerism.
b. the socialization process.
c. acculturation.
d. the roles opinion leaders play in business decision making.
e. the role of society in consumer decision making.
Answer:
Markup pricing, adding an amount to cost to cover expenses and profit, is the most
popular method used by wholesalers and retailers to establish a selling price.
a. True
b. False
Answer:
____ is defined as all activities directly related to the sale of goods and services to the
ultimate consumer for personal, nonbusiness use or consumption.
a. Wholesaling
b. Retailing
c. Business
d. Franchising
e. Distribution
Answer:
The development of Coke Zero by Coca-Cola would not be considered a new product
since the company was already making soft drinks. It would simply be called a line
extension.
a. True
b. False
Answer:
GoingtotheDogs
Demand for pet services is greatly increasing across the United States. In fact,
Americans will spend nearly $44 billion dollars on their pets this year. Many American
dog owners are seeking out "doggy day cares" that are more like a resort or spa than an
ordinary kennel for their canine companion. Day care services for dogs now include toy
rooms, outside play areas, doggie massages, treadmills, swimming pools, and cushy
beds for nap time. Pet owners can watch their pets via a webcam, and some doggy day
cares have a phone where owners can talk to their dogs when they feel their pets need to
hear their voices. Rates vary from $20 to $45 a day per pet, depending on the amenities
that the pet owner chooses.
Refer to Going to the Dogs. Before opening the It's a Dog's Life doggy resort, the
potential company owners projected the costs involved in providing the services the
target market (dog owners) appears to desire. Unfortunately, a decision was made to not
proceed with the doggy resort, as the owners felt the cost to provide the services was
too high considering the rates the target market would be willing to pay. This would be
an example of:
a. idea screening.
b. concept testing.
c. business analysis.
d. commercialization.
e. test marketing.
Answer:
Which of the following elements of the promotional mix would be most effective for
helping highly involved consumers make complex buying decisions?
a. Personal selling
b. Reminder advertising
c. Sales promotion
d. Public relations
e. Informative advertising
Answer:
Life is good developed the "Good Karma" line of environmentally friendly 100%
organic cotton apparel. The
production of the Good Karma line is consistent with a orientation.
a. societal marketing
b. supplier
c. sales
d. production
e. philanthropic
Answer:
Which of the following statements best describes the reason marketers find
geodemographic segmentation so effective?
a. "A bird in the hand is worth two in the bush."
b. "Every action has an opposite and equal reaction."
c. "A rifle is more exact than a shotgun."
d. "Don"t put all of your eggs in one basket."
e. "Birds of a feather flock together."
Answer:
A(n) ____ is an extra item offered to the consumer, usually in exchange for some proof
that the promoted product has been purchased.
a. coupon
b. trade sample
c. supplement
d. premium
e. add-on
Answer:
To be useful, a segmentation scheme must produce segments that meet four basic
criteria. The criteria are:
a. segmentability, targetability, reliability and validity, and homogeneity
b. tangibility, inseparability, nonperishability, and uniqueness
c. substantiality, identifiability and measurability, accessibility, and responsiveness
d. reliability, flexibility, tangibility, and unbiased
e. complexity, compatability, relative advantage, trialability, and observability
Answer:
Best Buy instituted a system in all of its stores that customizes their product offerings
for the five key customer segments it has identified: affluent professional males, young
entertainment enthusiasts, upscale suburban moms, families who are practical
technology adopters, and small businesses with fewer than 20 employees. This focus
implies that Best Buy is:
a. ethnocentric.
b. demand based.
c. sales-centric.
d. supply based.
e. customer-centric.
Answer:
What is a component lifestyle? Describe how a college student follows a component
lifestyle. Use specific examples.
Answer:
Discuss alternatives to traditional test marketing.
Answer:
Discuss how businesses measure online success.
Answer:
Binney & Smith's Crayola makes various products, all targeted toward elementary
schoolchildren. Drawing, painting, and supply items are sold at convenience stores, toy
stores, and grocery stores. Clothing is sold in department stores. Crayola might arrange
its product items in the following way:
What is the product mix width for Crayola? What is its product line depth?
Answer:
There are several types of retail stores, each offering a different product assortment,
service level, and price level, according to the shopping preferences of its customers.
Name eight types of retailers. For each type, indicate the level of service, product
assortment, and level of price.
Answer:
Discuss the elements needed to implement successful relationship marketing strategies.
Answer:
Social media offers more one-to-one ways for marketers to meet customers. Use this
fact to identify five implications for marketers.
Answer:
What is geographic segmentation? Name four reasons why a company would use a
regional marketing approach.
Then give a specific example of a company marketing its product(s) regionally.
Answer:
Explain the importance of interactions in a customer relationship management (CRM)
system. Most colleges and universities have some form of CRM system. Describe an
interaction that occurs at your institution.
Answer:
After successful business analysis of a new product, the development stage begins.
Describe the development process and explain the difference between laboratory testing
and use testing.
Answer:
The ultimate objective of any promotion is a purchase or some other activity. A model
for reaching promotional objectives is called the AIDA concept. What does this
acronym stand for? Describe what marketing actions might take place in each stage of
this model.
Answer:
Discount stores are retail chains that compete on the basis of low prices, high turnover,
and high volume. Name and briefly describe four types of discounters, and give an
example of each type.
Answer:
What is a marketing objective? Name three criteria for good marketing objectives. Use
the criteria to write an objective for a business with which you are familiar.
Answer:
What is usage-rate segmentation? What is the 80/20 principle, and how does it apply to
usage-rate segmentation?
Answer:
Compare and contrast trading up and suggestion selling.
Answer:
Compare and contrast relationship selling and traditional personal selling.
Answer:
