Which of the following statements is most likely true regarding the objective-and-task
method of budget setting?
A) It forces management to spell out its assumptions about the relationship between the
money spent and promotion results.
B) It is the simplest and least time consuming method to use.
C) It is the least logical budget-setting method.
D) It involves setting the promotion budget to match competitors’ outlays.
E) It wrongly views sales as the cause of promotion rather than as the result.
Examples of pleasing products include ________.
A) cigarettes and junk food
B) dental services and medications
C) seat belts and air bags
D) fruits and vegetables
E) bicycle helmets and elbow pads
________ refer to members of the buying organization who help define specifications
and provide information for evaluating alternatives.
A) Gatekeepers
B) Influencers
C) Users
D) Deciders
E) Buyers
Crocus, a gift store, specializes in serving customer segments that major competitors
overlook and ignore. Which of the following best describes Crocus?
A) market follower
B) market challenger
C) early adopter
D) market nicher
E) laggard
________ are formed by noting current prices, remembering past prices, or assessing
the buying situation.
A) Product line prices
B) Seasonal prices
C) Reference prices
D) Time-based prices
E) Product bundle prices
Product planners need to consider products and services on three levels. At the third
level, product planners must build ________.
A) an actual product
B) an augmented product
C) core customer value
D) a brand personality
E) a basic product
Companies are doing less ________ and more ________ as a result of the explosive
developments in communication technologies to better target smaller customer
segments.
A) personal selling; digital activities
B) public relations activities; digital activities
C) digital activities; mass marketing
D) mass marketing; engagement marketing
E) viral marketing; word-of-mouth marketing
When McDonald’s and other fast food restaurants offer “value menu” items at
surprisingly low prices, they are most likely using ________ pricing.
A) break-even
B) target profit
C) good-value
D) cost-plus
E) target return
A shoe manufacturing company uses ads featuring the members of a country music
band with the hope that the band’s fans will see them wearing the company’s shoes and
hence purchase the same brand of shoes. The shoe company believes that the band
portrays the image of a ________ to the band’s fans.
A) membership group
B) reference group
C) status symbol
D) subculture
E) lifestyle
________ is defined as analyzing, planning, implementing, and controlling sales force
activities.
A) Benchmarking
B) Sales force management
C) Business intelligence
D) Sales force automation
E) Sampling
Consumers who show their allegiance to brands, stores, or companies help marketers to
segment consumers by their ________.
A) user status
B) degree of loyalty
C) income
D) geographic location
E) benefit-seeking attitudes
The purpose of ________ is to ensure that the company achieves the sales, profits, and
other goals set out in its annual marketing plan.
A) benchmarking
B) operating control
C) strategic control
D) SWOT analysis
E) a marketing audit
In industries in which pricing is a key factor, ________ often set the best prices or help
others in setting them.
A) sales departments
B) salespeople
C) production managers
D) line managers
E) pricing departments
A ________ VMS consists of independent firms at different levels of production and
distribution who join together through formal agreements to obtain more economies or
sales impact than each could achieve alone.
A) corporate
B) contingency
C) contractual
D) communal
E) conventional
Companies that adopt value-added pricing ________.
A) consider value-added features as a fitting substitute for aggressive cost cutting
B) set incredibly low prices to meet competition
C) attach value-added features and services to differentiate their offers and support their
higher prices
D) overprice their products without any apparent justification
E) underprice their products and lower quality to boost demand in the short-run
A(n) ________ is the set of actual and potential buyers of a product or service.
A) market
B) control group
C) subsidiary
D) focus group
E) audience
Which of the following would be the most likely result of slashing ad spending for a
product?
A) increased popularity
B) reduced long-term market share
C) improved brand image
D) increased short-term sales
E) increased long-term market share
________ were the main form of retail clusters until the 1950s.
A) Strip malls
B) Discount stores
C) Independent off-price retailers
D) Central business districts
E) Regional shopping malls
A product idea is ________.
A) the way consumers perceive an actual or potential product
B) the knowledge and awareness of a product among consumers
C) a possible product that the company can see itself offering to the market
D) a detailed version of the new product idea stated in meaningful consumer terms
E) the testing of new product concepts with groups of target consumers
When Heinz introduced EZ Squirt packaging and new colors such as Blastin’ Green and
Awesome Orange to revitalize consumer buying, the company was modifying the
________.
A) market
B) pricing strategy
C) distribution
D) product
E) competition
Audience quality, audience engagement, and editorial quality are most likely to be
considered when a media planner ________.
A) decides on media timing
B) selects an execution style
C) selects a media vehicle
D) evaluates return on investment
E) measures the communication effects of an advertisement
A public relations firm tailors its advertising and promotional services according to the
needs and preferences of specific customers. This exemplifies ________.
A) trigger-based marketing
B) mass marketing
C) segmented marketing
D) individual marketing
E) concentrated marketing
Price discrimination may be used to match competition as long as the strategy is
temporary, localized, and ________.
A) defensive
B) offensive
C) publicized
D) private
E) uniform across channels
What are the different internal factors that affect a firm’s pricing decisions?
What is the goal of training salespeople?
Why do population shifts interest marketers?
Distinguish between undifferentiated and differentiated marketing strategies.
Describe the three types of appeals that marketers use.