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Markup pricing is popular because when all firms in the industry use this pricing
method, prices tend to be similar, so price competition is minimized.
To the extent that a company can differentiate and position itself as providing superior
customer value, it gains competitive advantage.
In a complex sales force structure, salespeople can be specialized by customer and
territory; product and territory; product and customer; or territory, product, and
customer.
In the follow-up stage of the selling process, the salesperson asks the customer for an
order.
Branded entertainment (or brand integrations) involves making the brand an inseparable
part of some other form of entertainment.
Mass marketers can expect consumers to distinguish between commercial message
sources to maintain a clear image of a company and its brands.
Advertising involves a personal presentation by the firm's sales force for the purpose of
making sales and building customer relationships.
Shopping products are less frequently purchased consumer products and services that
customers compare carefully on suitability, quality, price, and style.
A manufacturer has fixed costs of $100,000, a variable cost of $10 per unit of output,
and break-even volume of 50,000 units. What should the manufacturer's unit cost be in
order to break even?
A) $10
B) $12
C) $14
D) $16
E) $20
The United States and Norway are examples of ________ economies.
A) subsistence
B) industrializing
C) emerging
D) industrial
E) raw material exporting
Which of the following is an advantage of telephone interviews?
A) They are more cost-effective than mail questionnaires.
B) Interviewer bias is absent.
C) The quantity of data collected is greater compared to personal interviewing.
D) The speed with which data is collected is high.
E) Response rates tend to be higher than those of mail questionnaires.
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
________ involves changing the product to meet local requirements, conditions, or
wants.
A) Product invention
B) Straight product extension
C) Standard global marketing
D) Communication adaptation
E) Product adaptation
Jason West, owner of A1 Cleaning, started his enterprise in 2001. Jason's primary focus
had been on office cleaning for large corporations. But in recent months, Jason has seen
a decline in demand for his office cleaning services. Surprisingly, the competitive
environment appeared relatively stable with no new competitors. However, Jason knew
that office cleaning was a high-frequency service that is usually performed daily;
therefore, competitors must have been doing something to attract his customers.
Building a competitive advantage seemed to be the only option to offset competition.
But as Jason pondered over his dilemma, he realized that prior to building his
competitive advantage he needed to better understand how customers assessed service
quality and what they look for in a superior cleaning service.
Jason developed a research plan. First, he gathered information about his competitors,
primarily through pamphlets and Web sites, as well as through a few phone calls in
order to find out exactly what the competitors offered in their cleaning packages. In
addition, Jason obtained from the Chamber of Commerce an updated list of local
corporations. He planned on sending written questionnaires to them.
Though the list of corporations contained 141 local company names, Jason chose to
survey 75 of them. To better understand customer service expectations between both
small and large corporations, Jason divided his surveys into two categories. The survey
questions were designed to extract specific data from respondents with regard to service
quality expectations in correlation to service frequency and price.
Jason awaited the results. Though his primary focus had been on large corporations, he
was flexible and would aim his efforts differently if needed.
In this scenario, which of the following is an example of primary data?
A) list of corporations obtained from the Chamber of Commerce
B) information obtained from competitors' pamphlets
C) data obtained from the surveys conducted in the 75 companies
D) information obtained from the Internet about current market trends
E) data obtained from competitors' Web sites
Kraft has adapted its popular Oreo cookie to the unique tastes of consumers all around
the world, whether it's mango-and-orange flavored Oreos in the Asia Pacific region,
green tea Oreos in China, a chocolate and peanut variety in Indonesia, or banana and
dulce de leche in Argentina.. This is an example of ________.
A) product invention
B) straight product extension
C) product adaptation
D) product augmentation
E) communication adaptation
Which of the following is the most likely result of a marketing strategy that attempts to
serve all potential customers?
A) All customers will be delighted.
B) Customer-perceived value will increase.
C) All customers will directly turn into customer evangelists.
D) Not all customers will be satisfied.
E) Customers will not show interest in any other company's products.
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 whether a
company-wide global focus would be more profitable after all.
Managers at Selman & Saks studied Wellman's licensing agreement in great detail.
Even after seeing the benefits Wellman achieved 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, 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 the market entry strategy of ________.
A) exporting
B) franchising
C) licensing
D) contract manufacturing
E) joint ownership
________ calls for meeting the present needs of consumers and businesses while also
preserving or enhancing the ability of future generations to meet their needs.
A) Sustainable marketing
B) Ambush marketing
C) Consumerism
D) Environmentalism
E) Strategic planning
A company that uses well-known celebrities to help sell its products is using ________.
A) interactive marketing
B) internal marketing
C) social marketing
D) person marketing
E) organization marketing
________ are the major marketing factors in the sale of most manufactured materials
and parts.
A) Branding and advertising
B) Price and service
C) Sales promotion and advertising
D) Branding and packaging
E) Public relations and brand management
Sarah Parker is a senior manager in a manufacturing firm that hires lobbyists to
influence legislation that affects the manufacturing industry. Sarah's firm takes a(n)
________ stance toward the marketing environment.
A) reactive
B) proactive
C) adversarial
D) passive
E) altruistic
Retailers such as Costco and Walmart charge a constant, daily low price with few or no
temporary price discounts. This is an example of ________.
A) competition-based pricing
B) everyday low pricing
C) cost-plus pricing
D) break-even pricing
E) penetration pricing
The marketing team of 7 Star Inc., a company manufacturing smartphones, is currently
studying the size, density, location, age, and occupation of its target market. Which of
the following environments is being studied in this scenario?
A) demographic environment
B) political environment
C) economic environment
D) technological environment
E) cultural environment
What is the function of a marketing information system (MIS)?
Briefly explain the societal marketing concept. Give an example of an organization that
has effectively used the societal marketing concept.
Describe the principal functions of packaging.
Who typically sets prices in large and small companies?
Explain how marketers and marketing critics disagree about the psychological value of
advertising.
Describe two ways that marketers can participate in online social networks. What are
the challenges and advantages of these approaches?
Why are demographic factors the most popular bases for segmenting customer groups?
Explain why the PLC can be applied to more than just brands.
Why is it difficult to assess interpersonal factors that influence the business buying
process?
