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b. Stop selling your products in small shops and make a deal with Macy’s
c. Design a new line of clothing for infants
d. Redesign all of your products to carry the Ladybug logo
106. Fame-us is a talent hunt agency focusing on the youth looking to enter Hollywood. As part of their marketing
strategy, Fame-us generates time and place utility by:
a. creating a nationwide advertising campaign to attract applicants.
b. launching road shows across cities and conducting talent hunts at campuses during Thanksgiving.
c. endorsing their services using famous celebrities from Hollywood.
d. opening a well-equipped studio with pre- and post-production facilities.
107. All Chuck E. Cheese’s restaurants feature kid-friendly pizza and arcade games. The chain attracts families with
young children, which is the organization’s:
a. marketing mix.
b. marketing variable.
c. target market.
d. market tactic.
108. As the marketing director for Kia Motors, you’ve been tasked with marketing a new, moderately priced vehicle that
runs on gas or electric and meets high safety standards. It seats up to five, holds a lot of cargo, and features an onboard
vacuum cleaner. Which of the following market segments will you focus on primarily?
a. Wealthy consumers with $250,000+ annual incomes
b. Young, primarily single men
c. Environmentally conscious consumers
d. Budget-minded families with growing children
109. The marketing philosophy summarized by the phrase “a high-quality product will sell itself” is a characteristic of the
_____ era.
a. production
b. sales
c. marketing
d. relationship
110. Your fruit juice brand is known worldwide, but you’re always looking for new tactics to incorporate into your
distribution strategy. Which of the following options do you find most appealing in terms of expanding your distribution
network?
a. Using social media to promote a sweepstakes contest
b. Incentivizing your distributors to increase their orders by offering deeper discounts
c. Creating three new “exotic” flavor blends
d. Licensing the leading snack foods producer to create a new line of branded frozen juice bars
111. Which of the following is NOT an element of the marketing strategy for any given product?
a. Competitive companies producing similar products
b. The people most likely to buy the product
c. The places where the product is sold
d. Product discounts and rebates
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112. You are the marketing director of Blue Ribbon Bakery, a producer of baked goods that are sold across the American
South. Of all the ideas your team has come up with to promote your new line of hamburger and hot dog buns, which do
you think will be least effective?
a. Offering the product at a lower introductory price for the first three months
b. Handing out coupons with free in–store samples
c. Sponsoring a giveaway contest through the company’s Facebook page
d. Sponsoring an essay contest where consumers explain what they like about the products
113. As a means of enhancing customer relationships, Verizon Wireless occasionally sends out text messages to its
wireless customers promoting special offers. This is an example of:
a. consumer-based marketing.
b. transaction-based marketing.
c. mobile marketing.
d. social marketing.
114. Dove Skincare maintains a Facebook page where customers can ask product questions, share testimonials, and
discover special promotions. Dove is an example of an organization operating in the ______ era.
a. production
b. social
c. marketing
d. relationship
115. Relationship marketing focuses more attention on _____ customers because new customers are _____ to acquire
compared to existing customers.
a. existing; less expensive
b. new; less expensive
c. existing; more expensive
d. new; more expensive
116. A university sells customized sweatshirts, pullovers, and jerseys to its students and staff. This is an example of
_____.
a. cause marketing
b. organization marketing
c. person marketing
d. event marketing
117. By converting indifferent customers into loyal ones through relationship marketing, companies can:
a. increase the cost of maintaining existing customers.
b. start a process by which customers become bound contractually to the business.
c. avoid the necessity of improving customer service in the long run.
d. generate repeat sales.
118. Which of the following is a combination of person, cause, and organization marketing?
a. Tiger Woods’ endorsement of Nike, a sports company and Accenture, a consulting company.
b. The Nobel Peace Prize for Al Gore for his work on global warming.
c. UNICEF’s work to improve the living conditions of children across the world.
d. Angelina Jolie’s role as a UN Goodwill Ambassador for refugees.
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119. The revenues and intangible benefits accrued to the firm, minus the investment to attract and keep a customer is
known as the:
a. gradient of return on investment.
b. intangible benefit stream.
c. investment-benefit differential.
d. lifetime value of the customer.
120. As the marketing manager for the salsa and dip division of a major snack food producer, you’re aware that your
product line is most popular with men aged 21 to 45. These customers report they typically consume your products while
watching or streaming sports events. You’ve come up with a list of tactics for a new promotions strategy, but there’s one
idea on your list that you think is weaker than the others. Which one is it?
a. Advertise on major sports networks during important games
b. Build and maintain a sports-oriented website that simultaneously promotes your products
c. Become a sponsor or cosponsor of a highly visible sporting event
d. Insert a 15% off coupon in multiple editions of the most popular sports magazines
121. Given that a farmer’s products are subject to unpredictable influences such as weather and pests, a farmer could be
said to be engaging in which of the Eight Universal Marketing Functions?
a. Transporting
b. Standardizing and grading
c. Storing
d. Risk taking
122. You’ve just been hired as the marketing director for a company whose products are sold through both inside and field
sales representatives. You’ve spent the first week on the job analyzing the numbers, and you’ve determined that about 80%
of your sales are coming from only 20% of the thousands of products the company distributes. The CEO has asked for
product recommendations. What will you suggest?
a. Focus on improving sales of the poor-selling products by incentivizing the sales reps
b. Terminate about 25% of the sales and marketing teams due to poor performance
c. Discontinue selling at least half of the poorest sellers to free up more resources to market the best sellers
d. Continue to monitor sales over the next year while you test new marketing strategies
123. Tara’s old computer has finally died, and she’s kind of happy about it. It had problems from the very start, and she’s
wasted more time online and on the phone with tech support than she cares to remember. The manufacturer is notorious
for giving customers the runaround! This time, when she buys her new computer, she’s going to make a better choice. The
product feature she’ll find most appealing is:
a. the manufacturer’s customer service.
b. the design.
c. the brand name.
d. the warranty.
124. The NBA Sacramento Kings play their home games in the Arco Arena. The naming of their stadium is an example of
which one of the following five types of nontraditional marketing?
a. Stadium naming rights marketing
b. Sports team marketing
c. Organization marketing
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d. Event marketing
e. Place marketing
125. As the marketing manager for a small video game developer, you are constantly participating in and monitoring your
company’s social media feeds. Not only is it a great way to inform your customers about your products and build
relationships, it’s also an excellent tool for gathering customer feedback that you report out to your product development
team. Social media participation is part of both the ______ and ______ strategies for your organization.
a. product; pricing
b. promotion; product
c. promotion; distribution
d. promotion; pricing
126. Tim Howard, the goal-keeper for the U.S. men’s soccer team, has just signed a major marketing deal with your
company. You plan to utilize him in a variety of marketing campaigns leading up to the 2018 Men’s Soccer World Cup in
Russia. Which one of the following categories of nontraditional marketing will you emphasize in this situation?
a. Sports marketing
b. Person marketing
c. Social media marketing
d. Place marketing
e. Event marketing
127. You own a carpet, tile, and flooring store. Of the following activities, which one is the best example of selling in
your business?
a. Purchasing the building next door so you can expand your showroom and warehouse
b. Deciding to add a new-to-the-market brand of flooring to your product offering
c. Offering customers a 90-days-same-as–cash discount on credit card purchases
d. Using a minivan to deliver the flooring and carpeting to customers’ homes and offices
128. All marketing students have heard of the “4 P’s” of marketing. Distribution channels are related to which of the 4 P’s?
a. Product
b. Promotion
c. Place
d. Price
129. In the relationship era, firms focus on:
a. short-term relationships with suppliers.
b. long-term relationships with customers and suppliers.
c. short-term relationships with customers and suppliers.
d. short-term relationships with customers.
130. The Tour de Cure is a bicycle ride, not a race, to raise money for the American Diabetes Association and is held in
40 states nationwide. This is an example of:
a. cause marketing.
b. organization marketing.
c. person marketing.
d. place marketing.
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131. A buyer’s market is characterized by:
a. more goods and services than buyers to buy them.
b. a small number of firms dominating the production of goods offered.
c. practically no competition in the marketplace.
d. a single firm producing a major share of the products or services offered.
132. In the context of marketing, which of the following is the best example of financing?
a. An apartment landlord charging an additional fee for late rent payments
b. A flower wholesaler allowing florists to purchase products on credit
c. A real estate developer taking out a loan to purchase 40 acres of land
d. An art gallery securing a line of credit for a small expansion project
133. Noel Pvt. Ltd. combines metal, rubber, and other components in the production of appliances. In doing so, the
company creates _____ utility.
a. ownership
b. form
c. place
d. time
134. You’re the marketing manager for a cellphone manufacturer, and your company has just come out with a truly unique
design with unusual features. You’ve decided the best way to introduce this interesting new product is to offer it at a low
introductory price with a rebate, and then to gradually increase the price until you find the price ceiling for it. Your plan is
part of both the ______ and ______ strategies for the product.
a. product; pricing
b. promotion; product
c. promotion; distribution
d. promotion; pricing
135. The utility of a product or service is its:
a. want-satisfying power.
b. reusability.
c. function as a commodity.
d. design quality.
Indicate one or more answer choices that best complete the statement or answer the question.
136. You are the director of a health and wellness center that was successfully launched by using only marketing tools and
techniques developed during the relationship and social eras. However, now that the business is established, there’s a new
owner who wants you to revert to using older, more traditional methods. Which of the following would NOT appeal to
her?
a. Recruiting a nutritionist to answer members’ diet-related questions on the center’s website.
b. Offering both monthly and annual memberships.
c. Opening a retail store within the center that sells workout clothes, supplements, and similar items.
d. Offering discounts on merchandise to long-term members.
137. You work on the assembly line at Ford Motor Company. Your line produces the hot selling Ford Focus hybrid. Your
line creates _________ utility for Ford’s customers.
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a. product
b. form
c. value
d. place
138. Your boss, the CEO of a restaurant chain, is very bullish on nontraditional marketing. He has instructed you to
implement some of his team’s ideas in the next six months, but first, to flag any of the ideas that are inaccurate
applications of nontraditional marketing. Which of the following should you flag?
a. Implement cause marketing by donating $1 from every dinner check to antipoverty agencies.
b. Implement place marketing by locating new restaurants near stadiums and sports arenas.
c. Implement event marketing by sponsoring a high-profile sports tournament.
d. Implement organic marketing by switching to organic-certified ingredients.
139. List the eight universal functions of marketing.
140. Describe the process of relationship building in marketing.
141. What is the major difference between the sales era and marketing era?
142. Differentiate between transaction-based marketing and relationship marketing.
143. List the five eras in marketing history in chronological order, and briefly describe the philosophy behind each era.
Provide an example of an organization that is functioning in the social era and explain why you selected it.
144. Define relationship marketing and explain its characteristics.
145. List and describe the five categories of marketing. Give an example of each.
146. Compare the purchase of an AM/FM radio with the purchase of a satellite radio. Describe the creation of utility from
the perspective of the manufacturer and marketer. Describe the utility relationship between the customer and the marketer.
147. Describe social marketing, and give at least three examples of the types of communications social marketers use.
148. Define lifetime value of a customer. How has Apple, with the development of the iPod product line and iTunes
software, gained a competitive advantage over competitors? Will Apple experience a higher or lower lifetime value of a
customer and why?
149. Explain how the economy influences an organization’s pricing strategy. Then choose an industry and provide an
example of how the economy has affected the pricing strategy of the major players in that industry.
150. Define utility and discuss the four types of utility. Give examples and list the functional areas within an organization
that are responsible for each.
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Answer Key
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