The first phase of marketing planning is the development of a market position.
Historically, marketers have measured success in a product category by their market
share.
Simulated test marketing can help a company determine where in a store a product
should be placed to maximize sales.
Exchanges of nonmonetary value do not involve a price.
The first step in the product adoption process is to create interest.
Governments use tariffs to give domestic competitors an advantage in the marketplace
by making foreign competitors’ goods more expensive.
Depending upon the organization, product management may include brand managers,
product category managers, and market managers.
The communications model is an effective way to look at traditional marketing
communications, but not new word-of-mouth communications.
Declining brand loyalty has led marketers to place less of their total marketing
communication budgets in sales promotions.
Marketers for Ranch Life, a Connecticut family resort that offers horseback riding and a
waterpark, want to determine what percentage of people who visit the resort’s webpage
actually sign up to receive emails about promotions and special programs at the resort.
To do this, Ranch Life marketers will need to calculate the conversion rate.
Prospecting and cold calling are interchangeable terms.
A traditional advertising medium can be used to publicize a sales promotion.
When shipping large amounts of bulk products such as forest products, coal, sand, or
rock over large distances, a company should choose large trucks because of their low
cost per ton shipped.
The evaluation stage is longer for an impulse purchase than it is for a shopping product.
Ria, a college sophomore, writes a daily blog that typically has over 50,000 readers
each week. Ria is an example of a microcelebrity.
The talent agency that is trying to convince Berry College to hire a motivational
speaker for the college’s homecoming festivities is marketing people.
Gamification refers to market segmentation using video gaming as a lifestyle.
Poland has a growing middle class and boasts a large skilled labor force. Poland is most
likely categorized as a developing country.
The supply chain only includes components dealing with the flow of materials internal
to the firm.
A skimming price is typically used when the company introducing a new product
anticipates other competitors will enter the market quickly.
A watch manufacturer added a watch to its product line that was higher priced than the
models it already carried. The company used a two-way stretch strategy.
Discount retailers such as Walmart do not sell private-label brands.
Marketers classify products based on where and how consumers buy the products.
The cognition component of a person’s attitude would typically be more influential than
the affect component for purchases such as scented candles, bath salts, and luxurious
towels.
Business marketers have a broader customer base and a larger number of buyers
compared to consumer marketers.
Selective distribution strategies are most suitable for convenience products.
Businesses within a purely competitive market have few opportunities to raise or lower
their prices.
The final stage in one-to-one marketing is to identify customers in terms of both their
needs and their value to the company.
The VALS™ system is a crucial part of geodemographic segmentation.
A U.S. wool producer that wants to export its product to Europe could use a selling
agent or a merchandise broker.
The first step in planning how to price a product is to develop pricing objectives.
When creating product objectives, marketers should consider the long-term
implications of product decisions.
The state of Missouri is a product that can be promoted as a great place to locate a new
business.
Each industry sets import quotas for its products to determine yearly production
volume.
Due to the success of the Internet, few producers sell through intermediaries today.
The majority of Generation Y consumers are unmarried.
Guerrilla marketing strategies can be used to achieve public relations objectives.
If the pull strategy is effective, consumers will then demand the product from channel
members, who will, in turn, demand it from producers.
Over the course of one day, researchers counted the number of out-of-state cars parked
in an outlet mall parking lot at 10 a.m. and 4 p.m. The gathering of this quantitative data
is an example of descriptive research using ________.
A) a hierarchical format
B) a cross-sectional design
C) latitudinal tracking
D) a longitudinal design
E) ethnography
Which of the following is a posttesting technique used by telephone survey or personal
interview to determine whether a person remembers seeing an ad during a specified
period without giving the person the name of the brand?
A) unaided recall
B) attitudinal measure
C) pulsing
D) gross rating points (GRPs)
E) corrective advertising
A product’s position is based on important attributes as perceived by ________.
A) suppliers
B) competitors
C) channel members
D) target consumers
E) resellers
In terms of B2B products, computers and printers are examples of ________.
A) component parts
B) capital equipment
C) accessory equipment
D) operating supplies
E) specialized services
In general, vending machines are best suited for selling which of the following?
A) specialty goods
B) unsought goods
C) capital items
D) food and beverages
E) accessory equipment
Idea marketing could be about all of the following EXCEPT which one?
A) gaining a market share for a concept
B) communicating a philosophy
C) encouraging a change in people’s beliefs
D) encouraging a change in people’s actions
E) promoting a specific product for profit
Which of the following is a common objection to relying exclusively on ROMI for
measuring marketing success?
A) In a company’s accounting statements, marketing expenditures tend to appear as
investments rather than costs.
B) Calculating ROMI requires knowing what would have happened if the marketing
expenditures had never taken place.
C) ROMI tends to lead managers toward a more long-term perspective on decision
making.
D) ROMI focuses on a firm’s sustainability commitments to the detriment of its
short-term performance.
E) ROMI calculates profit by deducting expenditures rather than dividing by
expenditures.
To determine the ________, marketers need to know the total advertising costs and the
total number of purchases made.
A) bounce rate
B) conversion rate
C) cost per order
D) clickthrough rate
E) market share
Which of the following types of retailers obtain surplus merchandise from
manufacturers and offer brand-name, fashion-oriented goods at low prices?
A) specialty stores
B) warehouse clubs
C) off-price retailers
D) department stores
E) hypermarkets
Which of the following is most closely associated with upscaling in retailing?
A) fewer members in the channel of distribution
B) more members in the channel of distribution
C) greater operating costs
D) lower operating costs
E) lower levels of customer service
Alex paid for a(n) ________ when he took his car to the carwash to be washed and
waxed.
A) service
B) industrial product
C) consumer good
D) commercial
E) business product
Increasingly commonplace today is the appearance of two different franchise chains
under the same roof, such as Pizza-Hut and Taco Bell. This is an example of a(n)
________ marketing system.
A) administered
B) conventional
C) cooperative
D) vertical
E) horizontal
An independent grocer who wants to know if cocktail and tartar sauce would sell better
if the two products were moved from the salad dressing section of the store to a display
next to the seafood selection would most likely use ________ research.
A) longitudinal
B) exploratory
C) latitudinal
D) ethnographic
E) causal
The most common cost-based approach to pricing is ________.
A) demand-based pricing
B) psychological pricing
C) yield management pricing
D) cost-plus pricing
E) cost-minus pricing
What are the three major types of vertical marketing systems?
A) corporate, contractual, and chain
B) contractual, corporate, and independent
C) corporate, contractual, and administered
D) administered, independent, and franchised
E) corporate, franchised, and task
Some people want healthy cereal that will help them lose weight or possibly prevent
certain kinds of cancer. Some want presweetened cereal. Some want fruits and nuts in
their cereal. Some people want whole wheat cereal while others want rice cereal. There
are some who like hot cereal and others who like to eat their cereal right out of the box.
The diversity of consumers for cereal is an example of ________.
A) market aggregation
B) market similitude
C) economic aggregation
D) disintermediation
E) market fragmentation
Which of the following practices helps to protect consumers from spamming?
A) puffery
B) permission marketing
C) pop-up blocking
D) adware installation
E) sampling
Which of the following best explains why marketers do not consider social class
segments as strictly as they once did?
A) Many consumers buy according to the social class image they wish to portray rather
than according to where they actually fall in the social class framework.
B) Due to the Great Recession, members of the upper class have become members of
the middle class, and members of the middle class have become members of the lower
class.
C) Data related to social class are more complicated and difficult to obtain and analyze
than they once were.
D) Social class in the United States is more related to education and family history than
to wealth.
E) Members of the upper and middle classes are unlikely to be attracted to any products
marketed toward members of the lower classes.
Oreos and Coke are both examples of ________.
A) store brands
B) cobrands
C) private-label brands
D) national brands
E) ingredient brands
The ________ determines how much a firm charges for a product.
A) Gantt chart analysis
B) PERT chart analysis
C) pricing strategy
D) product strategy
E) return on marketing investment
Kellogg’s has marketed Special K cereal for a number of years to a loyal customer base.
Its introduction of a new cereal called Special K with Red Berries is an example of a(n)
________ strategy.
A) cannibalization
B) cobranding
C) brand extension
D) upward line stretch
E) downward line stretch
An SBU fits into the ________ category of the BCG model when sales have been
steady and the firm has a large market share it can sustain with minimal funding.
A) exclamation point
B) dog
C) cash cow
D) star
E) question mark
Which of the following is a true statement about business planning?
A) Business planning involves taking action before developing objectives.
B) Business planning is an ongoing process.
C) Business planning is concerned with the long term but not the short term.
D) Business planning is concerned with the short term but not the long term.
E) Business planning takes place after development of the marketing plan.
In most companies, ________ is a well-defined and systematic approach to innovation.
A) research and development
B) diffusion
C) adoption
D) positioning
E) augmentation
Which of the following is true about convenience stores?
A) They carry mostly shopping goods.
B) They charge lower-than-normal prices for shopping goods.
C) They are reluctant to change their store designs and offerings to adjust to changes in
the market.
D) They create time utility for their customers.
E) They create form, time, and place utility for their customers.
Some expectations regarding appropriate attitudes, behaviors, and appearances for men
and women come from society’s strong pressure to conform to ________.
A) social classes
B) gender roles
C) cognitive dissonance
D) microcultures
E) the family life cycle
The Federal Trade Commission says that a product may be called new for only
________.
A) three months
B) six months
C) nine months
D) one year
E) two years
Which of the following lists the three components of the triple bottom line orientation?
A) the financial bottom line, the social bottom line, and the environmental bottom line
B) the financial bottom line, the social bottom line, and the political bottom line
C) the financial bottom line, the cultural bottom line, and the business bottom line
D) the value bottom line, the service bottom line, and the business bottom line
E) the product bottom line, the service bottom line, and the relationship bottom line
In a(n) ________ culture, people tend to attach more importance to personal goals than
to the needs of the larger community.
A) collectivist
B) individualist
C) democratic
D) demographic
E) sociocultural
Marketers use the metric of ________ to see the effectiveness of their marketing efforts
in comparison to their competitors’ actions.
A) clickthrough rate
B) conversion rate
C) bounce rate
D) sentiment analysis
E) market share
Fiona Lambrech is the marketing director of a charity that raises funds to help provide
educational services to children and families in developing countries. Fiona wants to
reach a selective market of individuals who have recently donated to international
charities. Which of the following types of direct marketing is Fiona most likely to use?
A) direct-mail marketing
B) catalog marketing
C) telemarketing
D) direct-response TV marketing
E) direct-response advertising
The Ford Motor Company sponsored “The Great American Pony Drive II” in honor of
devotees of its legendary Mustang. In this example, how is the Ford Motor Company
considering the lifetime value of a customer of the Mustang?
As a retailer, why might you increase the number of private-label brands you sell?
How does a marketing decision support system (MDSS) differ from a marketing
information system (MIS)? Why might a marketer want to use an MDSS in addition to
an MIS?
What does the phrase “exchange relationship” mean in relation to marketing?
What is the difference between producers and resellers?
How are companies taking advantage of interactive technologies to tap consumers for
message ideas and actual ads? What are the benefits and disadvantages of do-it-yourself
advertising?
Explain the buzz building form of viral marketing. What are the aims of viral
marketing, and how are they accomplished? Give an example of a successful viral
marketing campaign.
Briefly describe the purpose of a portfolio analysis.
A retail salesperson at a department store cosmetics counter gets five dollars every time
he sells a bottle of a certain brand of cologne. Explain the type of trade promotion that
is being used in this instance.
A fast-food chain wanted to add a new product to its breakfast menu. The company
considered a pancake shaped like a muffin. The problem was determining how a
customer would add syrup to the pancake while eating and driving. Fortunately, one of
the company’s suppliers developed a crystallized syrup that seeps through the pancake
once it is heated. Explain the phase of new-product development that occurred during
this process with the chain and its supplier? Support your rationale.
What is meant by merchandise breadth and depth? Give an example of a store for each
of the following: narrow assortment, broad assortment, shallow assortment, and deep
assortment.
The Federal Trade Commission (FTC) ordered KFC to stop running ads with false
claims that its fried chicken is compatible with certain weight loss programs. What law
gives the FTC the authority to stop KFC’s marketing program and what law was KFC
violating?
Economic and demographic data compiled by the U.S. Census Bureau are available at
little or no cost. In the terms of a marketing information system, what type of data is
this?
Explain the roles of independent and dependent variables in causal research.
How is business planning different in a large firm in comparison to business planning in
a small company?
What are two ways the airline industry can benefit from the implementation of CRM
systems? Explain your answer.
Why would market researchers use convenience samples?
Explain the concept of opportunity cost, giving at least one example from your life.
When setting prices, the company must consider its external pricing environment.
Describe three components of the pricing environment and how they affect businesses.
Compare and contrast syndicated research with custom research.