Exploratory research is also known as causal research.
People within the same demographic group typically also share psychographic
characteristics.
For customers with strong credit ratings, Jen’s furniture store offers a credit line with no
interest for six months for purchases over $500. This is an example of a pricing
strategy.
A marketer would be unlikely to include a public relations plan in the marketing
strategy section of a marketing plan.
A make-good ad is essentially a replacement for any media that did not run as
scheduled.
Customer information in a CRM system should be constantly updated.
Because of the information technology revolution, few major companies today use ad
agencies to develop advertising campaigns.
In the United States, the service and information sectors of the economy account for
most of the nation’s economic growth. Manufacturing makes an important but
decreasing contribution to the economy. The United States is best classified as a
post-industrial economy.
Off-price retailers pay regular wholesale prices for their merchandise but maintain low
prices by accepting lower margins and selling higher volume.
A successful CRM system will collect information to help a company assess its
customers’ needs.
Many customer KPIs are identified and managed through CRM programs.
A demand curve never appears on a graph as a straight line.
A perceptual map is a tool for identifying the positions of brands in consumers’ minds.
Honor, a market researcher for a packaged goods company, is segmenting a population
of consumers based on their responses to statements about different aspects of packaged
goods. Honor is using behavioral segmentation.
Only the marketing department is responsible for executing the marketing functions for
a company.
Logistics involves the coordination of all organizations that affect a producer’s
distribution process, while supply chain management involves only the coordination of
inbound flow of products and services to a producer.
Do-not-call legislation has made telemarketing an ineffective form of direct marketing,
especially for nonprofit groups.
The more media efficient a media vehicle is, the more finely it is able to target niche
demographic segments.
Consumer behavior involves the shopping process itself.
Social marketing and corporate social responsibility are interchangeable terms.
A collaborative team is needed to create a business plan.
Category killers carry a deep assortment of a particular product line and have a
knowledgeable staff.
KPIs are often managed through CRM programs because all KPIs track customer
relationship measurements.
PLC stands for product level concept.
The Internet offers comparable research opportunities from nation to nation.
Brand position refers to the location that a brand occupies in the marketplace relative to
competitors.
Of all the ways to structure a sales force, product sales force structure is most effective
in helping the company to become more customer focused and build closer
relationships with important customers.
In the BCG matrix, stars and cash cows require a similar level of investment of a
company’s resources.
One valid criticism of the typical marketing mix of product, place, pricing, and
promotion is that services are not considered.
A potential customer is more likely to use a value map than a marketing manager is.
Consumers who do not purchase products online may nonetheless conduct online
product research that heavily influences their purchase decisions.
Which of the following questions most closely involves analysis of the price element of
the marketing mix?
A. What do competitors charge for their products?
B. What is the target’s level of awareness for each competitive brand?
C. What type of media is most appropriate to communicate the desired message to the
target?
D. Are there any foreseeable changes in the requirements of the target?
E. Will wholesale, retail, or direct-to-consumer channels be used?
7-Eleven has recently begun to redesign and restock its stores to offer a more upscale
environment and products, such as house wines and fresh foods. According to the 7 Ps
classification of the elements of the marketing mix, 7-Eleven has changed its ________.
A. physical evidence
B. price
C. promotion
D. process
E. people
Refer to the passage below to answer the following questions.
Selman & Saks, a maker of men’s and women’s razors and electric hair trimmers, had
little reason to become involved in the global arena. But after acquiring Wellman
Enterprises, whose largest division engages in a licensing agreement with a German
firm to produce women’s hosiery, managers at Selman & Saks wondered just whether a
company-wide global focus would be more profitable after all.
Managers at Selman & Saks studied Wellman’s licensing agreement in great detail.
Though seeing first-hand the benefits Wellman found with the licensing agreement,
managers decided that Selman & Saks would target the French market merely via
exporting.
With the assistance of a domestic export department, the Selman & Saks razors and hair
trimmers entered France. For six months, sales were mediocre. But after that, sales
suffered. Opinions varied among numerous managers as to the cause of the failure.
“Who knows the local market better than people who live there?” was a comment heard
throughout Selman & Saks. “Maybe we needed an alliance with a French firm, or a
licensing agreement, before racing to get there.”
If Selman & Saks allowed a French company to produce and market razors and
trimmers carrying the company’s brand in exchange for a royalty, Selman & Saks would
be using which market entry strategy?
A. exporting
B. franchising
C. licensing
D. contract manufacturing
E. joint ownership
For which of the following products would a customer’s level of satisfaction with the
purchase MOST likely change over time?
A. coffee
B. mouthwash
C. a car with unexpected service needs
D. a pair of jeans
E. a DVD
In a marketing-mix model, ________ are developed from historical information to
predict what sales performance might occur without any changes in marketing activity.
A. baseline data
B. sales-lift models
C. buy-in data
D. implementation models
E. scanner data
Which of the following is a potential drawback of multibranding?
A. Consumers may become confused about the image of the main brand.
B. An overextended brand name might lose its specific meaning for consumers.
C. Different product features can appeal to consumers with different buying motives.
D. The company’s resources may be spread over too many brands.
E. The company can occupy more retail shelf space.
The more ________ the product, the more likely a company is to rely on personal
selling to promote it.
A. popular
B. available
C. expensive
D. impersonal
E. marketable
________ are the largest ethnic minority group in the United States.
A. African Americans
B. Hispanics
C. Asians
D. Native Americans
E. Arabs
In a(n) ________ market structure, a small group of companies share pricing power
sufficient to set the marketplace price for their products or services.
A. monopoly
B. oligopoly
C. monopolistic competition
D. pure competition
E. natural competition
________ are intermediaries that facilitate the exchange of products but do not take title
to anything they sell.
A. Wholesalers
B. Retailers
C. Independent intermediaries
D. Merchants
E. Agents
Early marketing measurement efforts tended to focus on ________, while current
efforts are moving toward ________.
A. quantitative metrics; qualitative metrics
B. process metrics; financial metrics
C. consumer attitudes; linking sales performance and marketing activities
D. channel member attitudes; consumer attitudes
E. brand health; brand attributes
Through marketing accountability, traditional opinion-based marketing practices are
being replaced with practices that are ________.
A. less competitive
B. less interdependent
C. more qualitative
D. more quantitative
E. more artistic
________ involves the naming and organizing of brands within a broader portfolio.
A. Brand valuation
B. Brand equity
C. Brand personality
D. Brand architecture
E. Brand alliance
Apparel manufacturers send overruns and factory seconds to ________, while they send
new merchandise to department stores.
A. convenience stores
B. discount stores
C. off-price retailers
D. supermarkets
E. superstores
A product’s ________ is the difference between its price and total cost per unit.
A. markup
B. revenue
C. profit margin
D. cost-based margin
E. incremental cost
Mass marketers such as Target and Walmart often ignore market segment differences
and target the whole market with one offer. What is this approach to targeting?
A. undifferentiated marketing
B. differentiated marketing
C. target marketing
D. concentrated marketing
E. niche marketing
A commission merchant would most likely sell which of the following?
A. agricultural products
B. durable goods such as furniture
C. convenience goods such as gum and candy
D. clothing and textiles
E. real estate
________ research is a collection of techniques designed to identify and interpret
information obtained through the observation of people.
A. Explanatory
B. Structured
C. Syndicated
D. Qualitative
E. Quantitative
Which of the following is any method a firm uses to complete an exchange that does
not require a customer to visit a store?
A. kiosk merchandising
B. nonstore retailing
C. direct selling
D. exchange retailing
E. e-commerce
Shandra used reveRefer to the scenario below to answer the following questions.
Suzanne and Shandra, longtime friends, share a love of animals. For months, they
talked about starting their own pet services business, listing ideas for services they
might provide and how they might market those services. They were most interested in
providing dog and cat grooming and dog walking services.
Suzanne and Shandra looked for information on established pet service businesses in
their suburban area, using information from the local chamber of commerce and online
research. They discovered that none of the local pet services companies provided
on-site pet grooming. Suzanne and Shandra saw this as a great opportunity to
distinguish their business from potential competitors.
The two women wrote a basic business plan and applied for and received a business
loan to start up On-the-Go Groomers. They proposed to purchase an RV motorhome
and outfit it with two comfortable dog and cat grooming stations. On-the-Go Groomers
would come to clients’ homes to provide pet services instead of requiring pet owners to
come to them!
Six months after launching the business, Suzanne and Shandra are pleased with their
success, but both feel that they are not reaching enough potential customers. So far, they
have relied on local newspaper advertisements and positive word-of-mouth to generate
business. Suzanne said, “We have come so far and really have a great little business
going. But I think we could become much bigger with the right plans in place.”
nue and cost data the company had gathered over the past six month to make
projections about how much the company’s revenue could be expected to grow if the
partners decided to add a second RV motorhome equipped with grooming stations to the
business. Shandra would most likely provide an analysis of this data in which section of
a marketing plan?
A. executive summary
B. measurement and controls
C. marketing situation
D. forecasting
E. company description, purpose, and goals
Of the three parties involved in the distribution process, ________ are responsible for
receiving the distributed goods.
A. shippers
B. brokers
C. agents
D. carriers
E. consignees
Marketing logistics involves which of the following flows of products and information?
A. outbound and inbound only
B. outbound, inbound, and reverse
C. inbound and reverse only
D. outbound and reverse only
E. outbound only
Which type of advertising is used to develop brand preferences and to increase brand
loyalty?
A. personal advertising
B. persuasive advertising
C. reminder advertising
D. informative advertising
E. comprehensive advertising
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. discount store
B. off-price retailer
C. factory outlet
D. wholesale club
E. category killer
Which of the following is NOT a desirable quality for a brand name?
A. It should suggest something about the product or service.
B. It should be memorable and distinctive.
C. The brand should almost always be a long word to get attention.
D. The name should export smoothly to foreign markets.
E. Its name should qualify for protection as intellectual property.
Generation Xers, who were born between 1965 and 1981, share the childhood
experiences of higher parental divorce rates, recession, and corporate downsizing. They
tend to care about the environment and value experience. Generation Xers make up a
________.
A. subculture
B. social class
C. social network
D. life stage
E. lifestyle
According to the Pareto Principle, which of the following is true?
A. 60% of a company’s customers generate 80% of the company’s profits.
B. 20% of a company’s customers generate 60% of the company’s profits.
C. 80% of a company’s customers generate 10% of the company’s profits.
D. 20% of a company’s customers generate 80% of the company’s profits.
E. 60% of a company’s customers are unprofitable.
Which of the following is another name for the channel leader?
A. materials expert
B. logistics manager
C. consigner
D. channel captain
E. logistics leader
Costco’s surprise offerings of seconds, overstocks, and closeouts occasionally
including diamonds is an example of how a retailer can differentiate itself through its
________.
A. merchandise assortment
B. services mix
C. destination retailing
D. store atmosphere
E. level of service
A warehouse serves the function of ________ when it provides a variety of products in
one location.
A. creating assortments
B. just in time processing
C. third-party logistics
D. order processing
E. inventory control
By definition, the ________ environment focuses on scientific activities and
innovations.
A. cultural
B. political
C. technological
D. competitive
E. legal
In marketing terms, benefits define a product’s ________, or what the product does for
a customer.
A. utility
B. warranty
C. tangibility
D. intangibility
E. variability
A(n) ________ is a limit on the amount of a product that can be imported into a
country.
A. quota
B. exchange rate
C. tariff
D. antidumping law
E. antitrust rate
Name three things that marketers need to balance when selecting a market entry
strategy.
Describe the purposes served by a business plan.
Identify two examples of key performance indicators.
Give an example of the most basic level of product, the core benefit.
You have decided to run for a local political office. You want to hand-deliver campaign
materials in person to the homes of voters. Explain how marketing research plays a role
in this scenario.
Identify three possible media a company might use to implement a digital brand
strategy.
Compare the advantages and disadvantages of advertising in magazines and
newspapers.
Briefly discuss several of the inputs a marketer contributes to a company’s business
plan.
Briefly describe the three marketing functions performed by marketing channel
members, giving examples of each function.
Identify the three decisions a researcher must make when creating a sample plan.
Briefly describe four benefits that a strong brand can provide for a company.
What is the difference between marketing public relations and corporate public
relations?
Identify two defining aspects of American culture.
Compare and contrast the three major segmenting strategies.
Briefly explain the difference between a need and a perceived need.
Identify and explain the different components of a product’s benefits and costs.
How do Booms and Bitner’s 7 Ps differ from the framework of the 4 Ps? Explain why
Booms and Bitner proposed a different classification.
Understanding marketing requires a familiarity with many disciplines, activities, and
strategies. Identify several of these areas.