To manage costs, most companies are choosing a leveraged sales force that focuses reps
on selling the company’s more complex and customized products to large accounts and
uses inside salespeople and online ordering for low-end selling.
Preparing separate, unrelated online and offline communications improves consistency
by sending distinct messages.
With respect to business market offerings, if a marketer emphasizes a naked solution, he
or she is emphasizing the product and service elements that all segment members value.
An ideal event is unique but not encumbered with many sponsors, lends itself to
ancillary marketing activities, and reflects or enhances the sponsor’s brand or corporate
image.
The marketing strategy section of the marketing plan spells out goals and budgets for
each month or quarter so the management can review each period’s results and take
corrective action as needed.
All services require the client to be present.
One of the shortcomings of direct marketing is that the firm cannot easily measure the
response.
The role of a relatively high-priced brand in a portfolio is often to attract customers to
the brand franchise or to “build traffic.”
The selling concept holds that consumers will favor those products that offer the most
quality, performance, or innovative features.
Unprofitable customers who defect to a competitor should be encouraged to do so.
A short definition of marketing is “meeting needs profitably.”
A firm in a homogeneous market that has the ability to augment its product is more
likely to need to meet a competitive price reduction than one that does not have the
ability to augment its product.
Good mission statements should be long and clear, should emphasize on a wide range
of goals, and stress on the company’s major policies and values.
Private-label or store brands are also known as generics.
Full-service retailers generally have the lowest costs of all retail types.
Service companies try to demonstrate their service qualities through physical evidence
and presentation.
Department stores only face competition from other department stores as other retailing
forms pose little threat to their sales and profitability.
Every consumer must pass through all five stages of the buying process when in a
buying situation.
The response rate is usually very high for mail questionnaires.
Brand extensions can reduce the costs of introductory launch campaigns and make it
easier to convince retailers to stock and promote a new product.
An attractive niche consists of customers having a distinct set of needs.
The anchoring and adjustment heuristic comes in to play when consumers base their
predictions on the quickness and ease with which a particular example of an outcome
comes to mind.
Sigmund Freud assumed that the psychological forces shaping people’s behavior are
largely unconscious, and that people cannot fully understand their motivations.
Demographic variables are popular because they are often associated with consumer
needs and wants and they are easy to measure.
Small businesses should focus on building one or two strong brands based on one or
two key associations.
Contracts are always sufficient to govern supplier transactions and prevent supplier
opportunism.
Manufacturers can obtain greater control over the selling process by using a sales
agency.
The market forecast shows expected market demand, not maximum market demand.
A segment is unattractive if the company’s suppliers are able to raise prices or reduce
quantity supplied.
If expected service falls below perceived service, customers are disappointed.
A customer’s profitability is judged on the basis of the lifetime stream of revenue and
cost, not the profit from a particular transaction.
The goal of exploratory research is to shed light on the real nature of the problem and to
suggest possible solutions or new ideas.
If an organization’s marketing department wants to create ‘segment storyboards” to test
the attractiveness of each segment’s positioning strategy, it would most likely occur in
the ________ step of the segmentation process.
A) needs-based segmentation
B) segment identification
C) segment profitability
D) segment “acid test”
E) marketing-mix strategy
A store selling expensive artwork and luxury goods typically falls into the ________
group with respect to margins and volume.
A) mixed-markup, high-volume
B) low-volume, mixed-markup
C) low-volume, low-markup
D) high-volume, low-markup
E) high-markup, low-volume
Which of the following is TRUE regarding a marketing audit?
A) It focuses primarily on a firm’s macromarketing environment.
B) It identifies the most-needed improvements and incorporates them into a
corrective-action plan with short- and long-run steps.
C) It is less effective at locating the real source of a problem than a functional audit.
D) It analyzes only those marketing activities that have failed to produce adequate
results.
E) It relies solely on company managers for data and opinions.
Which of the following statements correctly reflects a characteristic of public relations
as a marketing communications tool?
A) Public relations can reach prospects who prefer to avoid mass media and targeted
promotions.
B) They incorporate an incentive that gives value to the consumer.
C) Given their live, real-time quality, public relations tools are actively engaging for
consumers.
D) Public relations communications can be prepared to appeal to the addressed
individual.
E) Public relations tools create an immediate, interactive episode between two or more
persons.
Key indicators of sales performance include all of the following EXCEPT ________.
A) average number of sales calls per salesperson per day
B) average revenue per sales call
C) advanced marketing cost per sales call
D) average cost per sales call
E) entertainment cost per sales call
Which of the following is a postpurchase service offered by retailers?
A) accepting orders over the telephone
B) advertising and window displays
C) delivery to the customer’s doorstep
D) general information
E) interior decoration of the retail outlet
Companies typically start their international foray with ________, which involves
working through independent intermediaries who sell their products abroad.
A) indirect exporting
B) licensing
C) franchising
D) direct exporting
E) joint ventures
If married and unmarried women respond similarly to a sale on perfume, these
hypothetical segments fail the ________ criterion for useful market segments.
A) measurable
B) substantial
C) accessible
D) differentiable
E) actionable
Share of ________ represents the proportion of company advertising of a product to all
advertising of that product.
A) wallet
B) mind
C) voice
D) market
E) cost
Anne is a frequent purchaser of Yoplait strawberry yogurt. For once, she decides to try a
different flavored yogurt. Instead of trying out the flavors offered by competing brands,
Anne selects a different flavor offered by Yoplait. Here, her past experience with the
brand prompts her to make the choice. Anne’s behavior can be best described as
________.
A) fallacy of proposition
B) associative networking
C) generalization
D) heuristic thinking
E) self-actualization
ROC Engineering, a Chinese shipbuilding company, agrees to build a fleet of
submarines for the Sri Lankan navy, for which it will be paid in the local Sri Lankan
currency. As per the agreement, ROC must also spend a substantial amount of the
money it generates through this deal within the country. In accordance with the
contract, ROC buys Sri Lankan tea at a reduced rate. This is an example of which of the
following forms of countertrade?
A) descending bid
B) offset
C) barter
D) compensation deal
E) buyback arrangement
Even if sales of a brand extension are high and meet targets, the revenue may be
coming from consumers switching to the extension from existing parent-brand
offerings”in effect ________ the parent brand.
A) diluting
B) cannibalizing
C) reinforcing
D) eroding
E) revamping
Which of the following is a possible trap of a price-cutting strategy?
A) Low prices usually achieve increases in both market share and market loyalty when
customers switch.
B) The company might need additional business because it has excess plant capacity.
C) The company can initiate price cuts to dominate the market through lower costs.
D) Consumers might not demand price concessions in the future.
E) Competitors that match low prices might have longer staying power because of deep
cash reserves.
When American Airlines decided to review new ideas aimed at first-class passengers on
very long flights, like an ultra high-speed Wi-Fi service and 124 channels of
high-definition satellite cable TV, their first step in the marketing research process was
to ________.
A) develop the research plan
B) define the problem and research objectives
C) collect the information
D) analyze the information
E) make the decision
Using the market approach, ________ are defined as companies that satisfy the same
customer need.
A) communities
B) competitors
C) trendsetters
D) industries
E) task groups
Which of the following is a defensive criterion for choosing brand elements?
A) adaptable
B) memorable
C) meaningful
D) likeable
E) significance
________ beliefs and values are passed from parents to children and reinforced by
social institutions’schools, churches, businesses, and governments; they are very
difficult to change.
A) Transient
B) Secondary
C) Protected
D) Core
E) Variable
________ questions allow respondents to answer in their own words and often reveal
more about how people think.
A) Open-end
B) Dichotomous
C) Likert scale
D) Multiple-choice
E) Semantic differential
Cause-related marketing is part of ________.
A) sustainability
B) corporate societal marketing
C) social media
D) global marketing
E) community marketing
Which of the following questions is answered during the business analysis of ideas?
A) Does the product meet a need?
B) Do we have a technically and commercially sound product?
C) Can we find a cost-effective, affordable marketing strategy?
D) Can this product meet sales expectations?
E) Can we find a good concept consumers say they would try?
Marketers typically focus on brand ________ in choosing the points-of-parity and
points-of-difference
that make up their brand positioning.
A) equity
B) awareness
C) benefits
D) architecture
E) extensions
The ultimate outcome of relationship marketing is a unique company asset called the
________, consisting of the company and its supporting stakeholders.
A) brand
B) supply chain
C) marketing network
D) value proposition
E) service channel
Which of the following is considered to be the last step in the marketing research
process?
A) presenting findings
B) analyzing information
C) controlling the environment
D) arriving at a decision
E) drafting the report
________ are offered by a manufacturer to trade-channel members if they will perform
certain functions, such as selling, storing, and record keeping.
A) Consumer promotions
B) Quantity discounts
C) Functional discounts
D) Seasonal discounts
E) Trade-in allowances
The traditional view of marketing works best in economies with many different types of
people, each with individual wants, perceptions, preferences, and buying criteria.
The offer strategy for direct mail has five elements: the product, the offer, the medium,
the distribution method, and the ________.
A) outside envelope
B) creative strategy
C) sales letter
D) circular
E) reply form
Two advantages of ________ are that they can facilitate new-product acceptance and
provide positive feedback to the parent brand and company.
A) product licensing
B) brand extensions
C) brand architecture
D) brand audits
E) brand dilutions
Bank customers try to reduce uncertainty by drawing inferences from the ________,
such as the design of the building’s exterior and interior, the layout of the desks, and the
length of waiting lines.
A) people
B) symbols
C) equipment
D) place
E) communication material
The Marketing Funnel (Scenario)
Amy and Jack were loyal customers of GreenFoods, a local grocery store. However,
after a couple of incidents where they had to return products that were stale and out of
date, the couple decided to try out VeggiesNmore, a chain store that recently opened in
town. Both Amy and Jack must move through each stage in the marketing funnel before
becoming loyal customers.
Amy is in the “aware” stage of the marketing funnel when she says ________.
A) she can try shopping at VeggiesNmore while simultaneously exploring other stores
in the neighborhood
B) she was informed about VeggiesNmore by her colleague at work
C) she regularly shops from VeggiesNmore
D) she shops from VeggiesNmore as far as the store is easily accessible
E) she was happy with the experience of shopping at VeggiesNmore
A customer touch point for Abacus Airlines would be an item such as ________.
A) ease of access to the airport
B) a mechanic’s ability to service the airplanes
C) the reservations desk
D) the value of air travel versus surface transportation
E) competency of a travel agent
In what ways can brand extensions improve the odds of new-product success?
Describe the functional organization of a marketing department in terms of its structure,
advantages, and disadvantages.
Explain the term “opportunism” with respect to business relationships.
How can a small business create a loyal brand community?
A key driver of shareholder value is the aggregate value of the customer base. Identify
the five strategies employed by successful companies to improve the value of their
customer base by attracting and retaining customers.
Describe the methods used to measure sponsorship activities.
Good mission statements are essential to being a success in business. Describe the
major characteristics that good mission statements should have.
National Beverage Corp. produces and distributes a wide range of beverages. It offers a
selection of flavored soft drinks, juices, sparkling waters, energy drinks,
nutritionally-enhanced waters, and other specialty beverages. What distribution strategy
will be most suitable for the company’s products, and why?
What are the different types of promotional pricing?
Belling wants to analyze the threats posed by its competitors. Which three variables
must it monitor to achieve this?
Describe the use of the RFM formula in selecting customers for direct marketing.
Compare and contrast brand equity and customer equity.
What situations are not conducive to database marketing?
Describe how advertising objectives are set to reflect the product class.
With the help of an example, explain straddle positioning.
What are typical objectives for sales promotions aimed at consumers, retailers, and the
sales force?
What key indicators of sales performance do sales managers extract from call reports?
What is vendor-managed inventory (VMI)?