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Good marketing communications can speed the demise of a poor product.
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Line extension refers to extending an existing brand name to new product categories.
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In the business buying process, business buyers determine which products and services
their organizations need to purchase.
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Integrated marketing communications calls for recognizing all touchpoints where the
customer may encounter the company and its brands.
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Retail convergence means lower competition for retailers and lower difficulty in
differentiating the product assortments of different types of retailers.
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The popularity of cause-related marketing as a form of corporate giving is rapidly
declining.
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The difference between human needs and wants is that needs are not created by
marketers.
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Alternative evaluation is the process by which people select, organize, and interpret
information to form a meaningful picture of the world.
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The major criticisms of marketing include harming consumers through high prices,
deceptive practices, high-pressure selling, shoddy or unsafe products, planned
obsolescence, and poor service to disadvantaged countries.
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The strongest brands do not engage customers on a deep, emotional level.
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The management strategy of environmental sustainability focuses on developing ways
to sustain the environment while also producing profits.
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Service inseparability means that the quality of services depends on who provides them,
as well as when, where, and how they are provided.
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Branded entertainment involves making the brand an inseparable part of some other
form of entertainment.
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The major activity in strategic planning is business portfolio analysis, whereby
management evaluates the products and businesses that make up the company.
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Customers located close to a firm are less likely to benefit from FOB-origin pricing
than customers located further away.
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The direct mail medium has very low cost per exposure.
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New product development begins with a systematic search for new product ideas
through idea generation.
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The simplest pricing method is cost-plus pricing, which involves adding a standard
markup to the cost of the product.
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The demographic environment is of major interest to marketers because it involves
people, and people make up markets.
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The business analysis stage represents the first large jump in financial investment in the
new product development process.
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Corporate chains are two or more outlets that are commonly owned and controlled.
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A community shopping center contains between 15 and 50 retail stores.
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Pricing strategies tend to change and evolve as the average product passes through its
life cycle.
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The four major communication functions are encoding, decoding, response, and noise.
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Thinking Cap Corp. prices its various cap designs at different price levels, ranging from
$2.05 to $5.95. This is an example of optional product pricing.
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Business promotions are used to generate business leads, stimulate purchases, reward
customers, and motivate salespeople.
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"Destroying" a close competitor can actually damage a company's market share in the
long run.
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If the pull strategy is effective, then consumers will demand the product from channel
members, who will in turn demand it from producers.
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With outbound telephone marketing, the company provides a toll-free phone number to
receive orders from television ads, print ads, direct mail, and catalogs.
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Branding decisions include determining a product price.
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In addition to its customary services, On the Spot, a moving company, also sells the
boxes and padding that are used when moving household furniture. This is an example
of customer-segmented pricing.
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Children exert little influence on family buying decisions.
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A non-corporate VMS integrates successive stages of production and distribution under
single ownership.
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Sunset Lawn Service puts most of its resources into value-building marketing
investments. The management at Sunset is practicing customer-value marketing.
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Advertisements for prescription drugs often feature potential benefits and negative side
effects that consumers may experience with use of the medication. These ads present
two-sided arguments.
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The microenvironment consists of larger societal forces that affect a company, such as
demographic, economic, political, and cultural forces.
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________ marketing is practiced by an organization that understands and anticipates
customer needs even better than customers themselves do and creates products and
services to meet current and future needs.
A) Customer-driven
B) Customer-driving
C) Affinity
D) Societal
E) Ambush
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In an attempt to set the company apart from its competitors, Central Parcel Service
(CPS) has its employees wear brown uniforms and drive brown trucks. What type of
public relations tool is being used by CPS?
A) buzz marketing
B) corporate logos
C) corporate identity materials
D) product publicity
E) public service materials
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Which kind of social media networks are smaller communities likely to join or create?
A) blog
B) niche
C) Internet
D) video
E) commercial
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________ involves entering a foreign market by developing foreign-based assembly or
manufacturing facilities.
A) Indirect exporting
B) Direct investment
C) Joint venturing
D) Contract manufacturing
E) Direct exporting
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Which of the following characterizes standardized global advertising?
A) higher advertising costs
B) no global advertising coordination
C) higher appeal to varying demographics
D) a more consistent worldwide image
E) lower reach
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Through ________, a service firm orients and motivates its customer-contact
employees and supporting service people to work as a team to provide customer
satisfaction.
A) service inseparability
B) social marketing
C) service variability
D) internal marketing
E) corporate image marketing
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If a company's aim is to make its own and competing products obsolete and serve
customers who want state-of-the-art products and services, it is using a value discipline
called ________.
A) overall cost leadership
B) product activation
C) product binning
D) product leadership
E) customer intimacy
Answer:
When McDonald's and other fast food restaurants offer "value menu" items at
surprisingly low prices, they are most likely using ________ pricing.
A) break-even
B) target profit
C) good-value
D) cost-plus
E) target return
Answer:
American Express will do almost anything to build long-term customer loyalty and to
capture customer lifetime value. Which of the following competitive marketing
strategies is being pursued by American Express?
A) consumer capitalism
B) customer equity
C) product differentiation
D) product leadership
E) customer intimacy
Answer:
Hank is an assistant marketing director for a firm in a market with many low-margin
customers. What type of relationship with these customers would be the most profitable
for him?
A) full partnerships
B) basic relationships
C) causal relationships
D) club marketing programs
E) inverse relationships
Answer:
John's fascination for his grandmother's sherbet recipes inspired him to come up with a
recipe for SherBetter, a gourmet sherbet for the American market. Which of the
following stages of the new product development process does this exemplify?
A) idea screening
B) idea generation
C) concept testing
D) product development
E) product manufacturing
Answer:
Which of the following is true of transporting goods via railroads?
A) Railroads are ideal for the transportation of digital technology.
B) Railroads are a specialized means of shipping petroleum, natural gas, and chemicals
from sources to markets.
C) Railroads are a cost-effective way to ship large amounts of bulk products over long
distances.
D) Railroads are the most flexible mode of transportation in their routing and time
schedules.
E) Railroads are the slowest mode of transportation and are the most affected by the
weather.
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Hearth & Home, a store which sells household products, has announced a one-week
sale on its new carpet line. This is an example of ________.
A) promotional pricing
B) seasonal pricing
C) by-product pricing
D) product bundle pricing
E) time-based pricing
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What is the most common type of agent wholesaler?
A) wholesale merchant
B) industrial distributor
C) limited-service wholesaler
D) manufacturers' representative
E) truck jobber
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According to the text, the search for new product ideas should most likely be ________.
A) intermittent
B) holistic
C) segmented
D) compartmentalized
E) flexible
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________ are those runner-up firms that are working to increase their market share in
an industry.
A) Market leaders
B) Market challengers
C) Market followers
D) Market mavens
E) Market nichers
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From a(n) ________ point of view, Pepsi might see its competition as Coca-Cola, Dr
Pepper, 7UP, and the makers of other soft drink brands. From a(n) ________ point of
view, however, the customer really wants "thirst quenching."
A) market; industry
B) market; consumer
C) industry; competitive
D) industry; market
E) company's; consumer's
Answer:
Which of the following would be the most likely result of slashing ad spending for a
product?
A) increased popularity
B) reduced long-term market share
C) improved brand image
D) increased short-term sales
E) increased long-term market share
Answer:
Ralph works for a manufacturing company in Ohio. Recently, he called in a department
manager to assist in the purchase of some heavy machinery. After consulting the
department manager, Ralph is considering a change in product specifications and
characteristics and expects suppliers to meet his requirements. Which of the following
is evident here?
A) modified rebuy
B) new task
C) straight rebuy
D) product differentiation
E) reverse auction
Answer:
Foreign businesses in India appear to receive unusually close scrutiny and must meet
special regulations, aimed at protecting local businesses. This includes nontariff trade
barriers. This reflects that a country's ________ should be carefully considered before
doing business in that country.
A) political-legal environment
B) industrial structure
C) cultural norms
D) natural resources
E) income distribution
Answer:
________ refers to gathering primary data by selecting matched groups of subjects,
giving them different treatments, controlling related factors, and checking for
differences in group responses.
A) Experimental research
B) Constructive research
C) Observational research
D) Survey research
E) Descriptive research
Answer:
Which of the following generational groups is most comfortable with digital technology
and embraces that technology?
A) Generation X
B) Millennials
C) Baby Boomers
D) Silent Generation
E) Lost Generation
Answer:
Which of the following most likely requires the smallest advertising budget?
A) products in competitive markets
B) undifferentiated brands
C) new products
D) low-share brands
E) mature brands
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Touchscreen kiosks, handheld shopping assistants, interactive dressing-room mirrors
and virtual sales associates are all examples of how retailers use technology to
________.
A) maintain inventory costs
B) send information between stores
C) meet consumers' expectations
D) produce more accurate forecasts
E) interact with suppliers
Answer:
Which term refers to an in-store machine that allows a customer to order merchandise
not carried in the store?
A) kiosk
B) automated teller machine
C) virtual catalog
D) interactive TV
E) direct-response device
Answer:
Kodak's film business didn't lose out to direct competitor Fujifilm; it lost out to Sony,
Canon, and other digital camera makers, along with a host of digital image developers
and online image sharing services. This is an example of ________.
A) a blue ocean strategy
B) competitor backlinking
C) self-competition
D) competitor myopia
E) marketing myopia
Answer:
To communicate effectively, a marketing communicator should most likely ________.
A) ensure that the encoding and decoding processes are different
B) encode and decode the message personally and frequently
C) understand the consumer's field of experience
D) foresee unplanned static or distortion
E) use familiar words and symbols
Answer:
Eric Brown is a human resource manager in a company selling and manufacturing
personal computers. Who among the following is Eric most likely to hire as a
salesperson if his objective is to minimize training costs post recruitment?
A) Samantha, a fresh college graduate
B) Richard, a product developer from a competing firm
C) Nancy, an experienced engineer with no prior experience in personal selling
D) Melissa, a proven salesperson from a competing firm
E) Henry, a young salesperson with a few months' experience in a large MNC
Answer:
Examples of pleasing products include ________.
A) cigarettes and junk food
B) dental services and medications
C) seat belts and air bags
D) fruits and vegetables
E) bicycle helmets and elbow pads
Answer:
________ are complex behavioral systems in which people and companies interact to
accomplish individual, company, and channel goals.
A) Customer relationship management systems
B) Distribution channels
C) Partner relationship systems
D) Consumer bases
E) Buying centers
Answer:
Which of the following statements is true of the new product development process?
A) The purpose of the idea screening stage is to create a large number of ideas.
B) Under the business analysis stage, if the new product satisfies the company's
objectives, the product then moves to the product development stage.
C) A product concept is the way consumers perceive an actual or potential product.
D) The concept testing stage is the stage at which the product and its proposed
marketing program are introduced into realistic market settings.
E) Commercialization is the process of inviting broad communities of people such as
customers, employees, and scientists into the new product innovation process.
Answer:
While advertising campaigns can help create name recognition, brand knowledge, and
perhaps even some brand preference, brands are not maintained by advertising but by
________.
A) brand differentiation
B) line extensions
C) brand experiences
D) brand sponsorships
E) brand awareness
Answer:
Which of the following brands most likely requires heavy advertising in order to be set
apart from similar products?
A) undifferentiated brands
B) specialty brands
C) international brands
D) mature brands
E) high-share brands
Answer:
A ________ is a group of retail businesses built on a site that is planned, developed,
owned, and managed as a unit.
A) warehouse club
B) franchise
C) shopping center
D) supermarket
E) hypermarket
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A(n) ________ consists of people and procedures dedicated to assessing information
needs, developing the needed information, and helping decision makers use the
information to generate and validate actionable customer and market insights.
A) enterprise planning system
B) enterprise information system
C) marketing information system
D) corporate performance management
E) geographic information system
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Describe the six buyer-readiness stages along with the marketing strategies used at each
stage.
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Marketing management must make four important decisions when developing an
advertising program. Briefly describe these four decisions.
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What is good-value pricing?
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Why do marketers find baby boomers attractive?
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People's distinct individual personalities influences their buying behavior. Personality is
usually described in terms of traits. What are these traits, and how do they affect the
way people purchase items? Give at least one example.
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Why is identifying predatory pricing difficult?
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Alex works in the marketing department of an international company. How can Alex
use modern technologies to conduct market research and better serve his company's
customers?
Answer:
Describe the political-legal factors that a company should consider before deciding to
conduct business in a foreign country.
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What are the different dimensions of a company's product mix? Briefly describe each
dimension.
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How is the societal marketing concept related to marketing ethics?
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How can a firm benefit from participating in a horizontal marketing system?
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Explain how companies select, motivate, and evaluate intermediaries or channel
members.
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How do suppliers help companies like Walmart maintain consistently low prices?
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As competition and costs increase, and as productivity and quality decrease, what are
the three major marketing tasks facing service companies in contemporary times?
Answer:
Why might individual departments prefer sequential product development?
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Provide two reasons why companies are shifting more of their marketing dollars to
online advertising.
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Explain the different segmentation variables used in segmenting consumer markets.
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What is e-procurement? Briefly describe its major advantages.
Answer:
