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Which of the following statements about customer value is True?
A. Building relationships with customers means providing customer value before, but
not after the purchase of a product or service.
B. Retaining current customers is usually less costly than taking customers away from a
competitor.
C. A firm's advertising department cannot be expected to develop ads to convince a
customer to buy from the firm more than once.
D. People in the organization who are not in the sales or customer service areas should
never be called upon to help resolve a customer's problem.
E. None of these statements is True.
____ are an internal source of capital.
A. Loans
B. Sale of stocks
C. Retained earnings
D. Sale of bonds
E. Private equity
An outside sales force can provide customers with up-to-date inventory levels, product
prices, delivery dates, and so forth by accessing information on the firm's own:
A. marketing model.
B. marketing dashboard.
C. intranet.
D. JIT system.
E. EDI system.
Some salespeople are expected to act as "marketing managers" in their own geographic
territories and decide:
A. how they will allocate their promotion money and their own time.
B. which customers they will aim at.
C. which intermediaries they will rely on or help.
D. which products in the company's line they will push aggressively.
E. All of these decisions are correct.
Hershey's places a simple ad for its "Kisses" chocolates in SPORTS ILLUSTRATED.
The ad shows only a photo of the product with no copy words. This is an example of
a(n) ____________ promotion objective.
A. Persuading
B. Reminding
C. Informing
D. Pioneering
GE's Planning Grid approach to evaluating proposed and existing plans and businesses:
A. considers how profitable opportunities are likely to be.
B. reflects the corporation's objectives.
C. helps managers see why some ideas are supported and others are not.
D. can use quantitative data but it is basically a qualitative approach.
E. All of these alternatives about GE's Planning Grid are true.
Which of the following statements about mass customization is True?
A. There has been a widespread shift to mass customization by thousands of companies.
B. The biggest successes in mass customization have all been in consumer markets as
opposed to business markets.
C. If a company is to succeed with a mass customization strategy, it must be able to find
a low-cost way to produce the products.
D. All of these.
E. None of these.
A typical break-even analysis assumes that:
A. the total revenue curve is a straight line.
B. the demand curve faced by the firm is horizontal.
C. the average variable cost is the same at different levels of output.
D. profits will grow continually beyond the break-even point.
E. All of these are assumptions of a typical break-even analysis.
At its website, Tylenol identifies the top headache triggers and offers solutions to
headache sufferers. Tylenol is focusing on satisfying what level in the hierarchy of
needs?
A. Physiological needs.
B. Behavioral needs.
C. Personal needs.
D. Safety needs.
E. Social needs.
When a company creates a rating form for its suppliers and rates their on-time delivery,
product quality, service advice, and so forth, in order to determine which suppliers to
put on an approved list of suppliers for specific products, this process is called a(n):
A. JIT rating.
B. resident buyer analysis.
C. vendor analysis.
D. ISO 9000 certification.
E. buying center analysis.
Marketing managers should remember that there are many variables in the
____________ that affect strategy planning.
A. economic and technological environments
B. competitive environment
C. cultural and social environment
D. political and legal environments
E. all of these environments have variables that affect strategy planning
The Statistical Abstract of the United States is a useful summary reference of the U.S.
market prepared by the:
A. Bureau of Economic Analysis.
B. Internal Revenue Service.
C. U.S. Census Bureau.
D. International Trade Administration.
E. Small Business Administration.
Teenagers:
A. Have no influence on the buying behavior of their parents.
B. Are not an attractive market because they do not spend much money.
C. Have become a target for many firms.
D. Have essentially the same buying habits as they had before reaching their teen years.
E. None of these alternatives is correct.
With regard to retail buying:
A. Most retail buyers see themselves as purchasing agents for their suppliers.
B. Buying committees, instead of individual retail buyers, may make the decisions.
C. Retail buyers make most purchases as modified rebuys.
D. Persuasive salespeople, not buying committees, are the key influencers in the buying
process.
E. None of these alternatives is correct.
When PepsiCo asked its advertising agency to develop an advertising program for its
Mountain Dew soft drink, it gave the agency a statement describing the age and
fun-loving spirit of its target market and the one-of-a-kind citrus flavor of the new
product, what type of statement was this?
A. Clustering
B. Determining
C. Combining
D. Positioning
E. Qualifying
Merchandising aids and promotional allowances are sales promotion activities aimed at
A. final consumers.
B. company's own sales force.
C. intermediaries.
D. final users.
E. buyers.
Auction companies:
A. Take over the whole marketing job of producers.
B. Work almost as members of a company's sales force.
C. Take title to the products they resell.
D. Provide a place where buyers bid to complete a transaction with a seller.
E. All of these alternatives are correct for auction companies.
A marketing "performance analysis" is most likely to compare:
A. an individual sales rep's performance to total company sales.
B. a firm's sales with its competitors' sales.
C. sales by product to sales by territory.
D. advertising cost to sales.
E. planned sales with actual sales.
Regarding Internet advertising:
A. Most ads are seeking a direct response.
B. Both banner ads and pop-up ads encourage viewers to visit the advertiser's website
for more information.
C. Some websites are better than others for reaching target customers.
D. At some websites, ads are free if they don't get results.
E. All of these alternatives are correct.
Differentiation
A. helps a firm get a competitive advantage if it just meets needs in the same way as
other firms.
B. means that the marketing mix is similar to what is available from a competitor.
C. often requires that the firm fine-tune all of the elements of its marketing mix to the
specific needs of a distinctive target market.
D. is less obvious to target customers when there is a consistent theme integrated across
the four Ps decision areas.
E. can only be based on one important element of the marketing mix.
A furniture producer has decided to buy its upholstery cloth from new suppliers. The
president has given the purchasing manager responsibility to make the final selections
and negotiate the terms. The purchasing manager looks through books with samples and
specifications, and then calls salespeople to make presentations to the production
manager, who is concerned about how easy the cloth will be to cut and sew. In this case,
the purchasing manager is
A. an influencer.
B. a buyer.
C. a decider.
D. a gatekeeper.
E. All of these are correct.
In macro-marketing
A. no universal marketing function can be completely eliminated.
B. the objectives of the individual firm, rather than society, are most important.
C. functions should not be shifted or shared.
D. intermediaries are unnecessary.
E. the emphasis is on the activities of individual organizations.
An expectation is
A. an event that a person likes to remember.
B. a positive cue.
C. an unfulfilled need.
D. an outcome that a person looks forward to.
E. None of these alternatives is correct.
Kayla Jurgenson, marketing manager for Super Gaming Computers and Accessories
(SGCA), is reviewing her company's plans for the coming year.
SGCA sells its products through retail computer dealers and some specialty gaming
stores. Currently, SGCA is carried in 25 percent of all retail computer stores nationwide,
but in California is carried in only 10 percent of stores. So, Kayla has set an objective of
being in 25% of all retail computer stores in California within one year.
SGCA plans to introduce a new SuperDuperGamer model with special features that fits
its target market of teen and young adult gamers. The SuperDuperGamer uses a new
technology and is expected to be a breakthrough product, but it will be important to
build awareness for it to succeed. So, the advertising objective is for 40% of SGCA's
target market to be aware of the new SuperDuperGamer model within 3 months. SGCA
also wants to help its retailers reduce their current stock of SuperGamer computers
before the new model comes out in a month. The SuperGamer has been on the market
for two years and has been a top seller in the category. SGCA's advertising objective for
the SuperGamer computer is to reduce current dealer stock by 80% within the next
month.
SGCA is also introducing a SuperEnhancer sound card, which is designed to
significantly enhance the game-playing experience with older computers. Research with
gamers show that it is very well received, so the advertising objective for the
SuperEnhancer sound card is to gain 40% market share among all gaming-specific
sound cards in the next year. To help achieve that objective, Jurgenson is planning to
use an ad that shows the sound card and a game player being knocked off his chair by
the sound. The headline on the ad reads, "9 Out of 10 Gamers Say that the
SuperEnhancer Sound Beats All Others!"
If Jurgenson wanted to demonstrate the new SuperDuperComputer, which media would
be best?
A. Yellow pages
B. Television
C. Magazine
D. Radio
E. Each of these media would be equal in this regard.
_____ refers to how we gather and interpret information from the world around us.
A. Retention
B. Perception
C. Attitude
D. Learning
E. Lifestyle analysis
When planning strategies for international markets, a good manager will keep in mind
that:
A. Relying on intuition may be misleading.
B. Understanding local cultural differences is of no real value.
C. Consumers in a foreign culture all tend to be the same.
D. International markets are very similar to local markets.
E. None of these is correct.
Any series of firms or individuals that participate in the flow of products from producer
to final user or consumer is known as:
A. customer service.
B. a packaging line.
C. a production line.
D. a channel of distribution.
E. mass marketing.
A "marketing plan":
A. is just another terms for "marketing strategy."
B. consists of several "marketing programs."
C. includes the time-related details for carrying out a marketing strategy.
D. is a strategy without all the operational decisions.
E. ignores implementation and control details.
Pricing objectives should flow from, and fit in with,
A. shareholder expectations and market practices.
B. regulatory policies.
C. industry standards.
D. company-level and marketing objectives.
E. market price leader actions.
By 2010, advertising spending in the United States was more than:
A. $100 billion.
B. $200 billion.
C. $5 billion.
D. $35 billion.
E. $150 billion.
The competitive environment that most marketing managers experience in developed
economies is:
A. monopoly.
B. monopolistic competition.
C. pure competition.
D. oligopoly.
E. regulated competition.
Kelly Stich, marketing manager for Yummy Ice Cream Products, is thinking about some
of her products and her promotion plans for the coming year.
Yummy Ice Cream Products is introducing a new ice cream treat called PlanetSavers.
This treat uses ice cream produced with environmentally friendly processes that save
energy and protect the ozone. Yummy plans to send articles to magazines, local
newspapers, and environmental groups that explain the environmentally safer treat. The
product also has a unique texture and different flavor.
Stich wants to use counter cards and in-store signs to let people know about Cherry
Walrus, the company's new flavor. She is also developing sales training materials that
will teach ice cream scoopers in Yummy's ice cream stores to promote the product.
Right after Cherry Walrus is introduced each store will also hand out coupons that are
good for one day only.
Yummy Mondaes is a product that has been around for 25 years. It is Yummy's take on
the classic ice cream sundae, but white-brownie and coffee-flavored crumbles are added
to make it extra special. The company sells this product in one and two quart containers
through major grocery store chains. It relies on personal selling and price discounts to
retailers to move more of the product. The company does very little consumer
promotion for this product.
Yummy Fudge on a Stick is a new product of fudge-flavored ice cream on a stick.
Yummy plans to sell it through retail grocery stores also and is launching an aggressive
advertising program that will use television, radio, newspaper, magazines, and the
Internet. Most of its promotion will be directed at consumers.
Two years ago the company introduced Yummy Fruit on a Stick, an all-natural frozen
fruit product on a stick. The product category has been popular, continues to grow, and
is in the market growth stage of the product life cycle.
The brand manager who puts together a promotion blend for Yummy Mondaes should:
A. realize that the right blend depends more on what customers expect than what the
firm wants to accomplish.
B. determine who the firm is trying to influence.
C. determine the one right promotion blend and then implement it.
D. be primarily concerned with informing rather than persuading.
A movie theater runs a film clip that shows pictures of candy, popcorn and soft drinks
prior to running the featured movie. The intent is to get theater patrons to make
purchases at the concession stand in the theater lobby. This process is an example of
which of the following behavioral influences on buying behavior?
A. Attitudes.
B. Beliefs.
C. Selective processes.
D. Learning.
E. None of these choices is correct.
