Large-scale marketing approaches that foster two-way customer relationships are made
possible by new communication technologies.
Answer:
Air carriers transport digital products from producer to customer via satellite, cable,
phone wire, or wireless signal.
Answer:
The government market consists of schools, hospitals, nursing homes, prisons, and
other institutions that provide goods and services to people in their care.
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The goal of a “blue ocean strategy” is to make competition irrelevant.
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A voluntary chain is a wholesaler-sponsored group of independent retailers that engages
in group buying and common merchandising.
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Disintermediation occurs when radically new types of channel intermediaries displace
traditional ones.
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Intermodal transportation refers to the combination of two or more modes of
transportation.
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A company’s marketing environment excludes the forces outside the marketing
department that affect marketing management’s ability to build and maintain successful
relationships with target customers.
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The aim of the entire value delivery network is to serve target customers and create
strong relationships with them.
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The first question in a questionnaire should be intentionally difficult and complicated in
order to weed out uninterested respondents.
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Industrial economies are major importers of manufactured goods, services, and
investment funds.
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Consumers welcome e-mail marketing messages; opportunities to control the messages
they receive are frequently ignored.
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While an individual’s beliefs are difficult to change, an individual’s attitudes are easy to
change.
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Agencies bring an outside point of view to solving a company’s problems, along with
lots of experience from working with different clients and situations.
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Pricing across a product mix is difficult because various products have related demand
and costs, and products face different degrees of competition.
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Constantly reduced prices can erode a brand’s value in the eyes of customers.
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When segmenting by usage rate, markets can be segmented into nonusers, ex-users,
potential users, first-time users, and regular users of a product.
Answer:
Sellers must understand the ways that consumers in different countries think about and
use certain products before planning a marketing program.
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In product line pricing, price steps should account for differences in customer
perceptions of the value of different features.
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Buzz marketing involves cultivating opinion leaders and getting them to spread
information about a product or service to others in their communities.
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A company that makes marketing decisions by considering consumers’ wants and
long-run interests, the company’s requirements, and society’s long-run interest is said to
be practicing consumer-oriented marketing.
Answer:
External databases are electronic collections of consumer and market information
obtained from data sources within a company’s network.
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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.
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Internal factors affecting pricing include the company’s overall marketing strategy,
objectives, and marketing mix.
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During proposal solicitation, the buying center often will draw up a list of desired
supplier attributes and their relative importance.
Answer:
Sales of products decline because of technological advances, shifts in consumer tastes,
and increased competition.
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Self-service retailers serve customers who are willing to perform their own
locate-compare-select process to save time or money.
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When segmenting by user status, markets are segmented into light, medium, and heavy
product users.
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Marketers usually limit their segmentation analysis to only one major variable.
Answer:
You receive a text message on your phone from Upscale Furnishings about an
upcoming sale on custom furniture. Upscale Furnishings is developing a direct
customer relationship with you through kiosk marketing.
Answer:
Although products that remain in the maturity stage of the PLC seem unchanged, the
most successful ones actually evolve to meet changing consumer needs.
Answer:
A company’s channel decisions directly affect the prices of its products.
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The communication effects of advertisements and ad campaigns are more difficult to
measure than the sales and profit effects.
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Perceived obsolescence involves continually changing consumer concepts of acceptable
styles to encourage more and earlier buying.
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As more developed markets stagnate and become increasingly competitive, many
marketers are now targeting growth opportunities in emerging markets.
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A pulsing schedule involves scheduling ads unevenly over a given time period.
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The real value of marketing research lies in the customer insights that it provides.
Answer:
A conventional distribution channel consists of one or more independent producers,
wholesalers, and retailers; each seeking to maximize its own profits, perhaps even at the
expense of the system as a whole.
Answer:
In intermodal transportation, which of the following describes the use of both water and
trucks for transportation?
A) fishyback
B) drawbar
C) trainship
D) piggyback
E) airtruck
Answer:
Sam Doharty, a purchasing manager in Willard Groups of Companies, is currently
working with engineers and consultants to define the items to be purchased.
Additionally, Sam and his team are ranking the importance of reliability, durability, and
price desired in the items. In other words, they are preparing a(n) ________.
A) decision tree
B) supplier list
C) product proposal
D) order-routine specification
E) general need description
Answer:
Which of the following is NOT one of a wholesaler’s channel functions?
A) financing
B) risk bearing
C) transportation
D) off-price retailing
E) bulk breaking
Answer:
The economic environment consists of economic factors that affect ________.
A) cultural patterns of communities
B) entrepreneurial orientation of a population
C) the quality of technological innovation
D) consumer purchasing power
E) the natural environment
Answer:
In CRM, ________ techniques are used to sort through data and locate useful findings
about customers.
A) data warehousing
B) data mining
C) niche marketing
D) data conservancy
E) mass marketing
Answer:
The advertising slogan, “We bring good things to life,” used by General Electric to
market itself, is an example of ________ marketing.
A) person
B) corporate image
C) internal
D) place
E) niche
Answer:
Which of the following statements is true regarding competitive marketing intelligence?
A) The advantage of using competitive marketing intelligence is negligible.
B) The goal of competitive marketing intelligence is to improve recruiting efforts.
C) Competitive marketing intelligence relies upon costly internal databases.
D) Competitive marketing intelligence relies upon publicly available information.
E) Companies using competitive marketing intelligence routinely ignore consumers’
online chatter.
Answer:
A marketing plan begins with a(n) ________, which presents a brief summary of the
main goals and recommendations of the plan for management review.
A) budget
B) opportunity analysis
C) threat analysis
D) executive summary
E) action program
Answer:
Gina Parker owns an ad agency in Baton Rouge. She regularly purchases cleaning
supplies for her custodial staff, using the same vendor and ordering relatively consistent
amounts of the same products on each purchase. This is an example of ________.
A) a modified rebuy situation
B) a new task
C) a straight rebuy situation
D) reverse auction
E) product differentiation
Answer:
In the beginning of the buying process, Timothy Perry, a product development manager,
noticed that the raw materials that were being procured from his company’s regular
supplier were of poor quality. Consequently, he decided to change the existing supplier
as a remedial measure. The stage of the buying process in which Timothy identified the
quality breach represents the ________ stage.
A) problem recognition
B) general needs description
C) product specification
D) supplier search
E) performance review
Answer:
Sam, the owner of a small company, learned that a competitor was planning to spend
$150,000 on promotion in the next financial year. As soon as he learned this, Sam
called his finance manager and said, “I want to spend $150,000 on promotion next
year.” In this case, which method of promotional budgeting does Sam use?
A) the objective-and-task method
B) the competitive-parity method
C) the percentage-of-sales method
D) the affordable method
E) the pull-push method
Answer:
When a media planner determines whether an advertisement for diapers should be
placed in Parents magazine or Sports Illustrated magazine, the planner is evaluating the
media vehicle’s ________.
A) profit margin
B) flexibility
C) rate of depreciation
D) audience quality
E) cost per exposure
Answer:
________ are consumer products and services that customers usually buy frequently,
immediately, and with minimal comparison and buying effort.
A) Unsought products
B) Capital items
C) Shopping products
D) Convenience products
E) Supplies and repair services
Answer:
When a company makes marketing decisions by considering consumers’ wants and
interests, the company’s requirements, and society’s long-run interests, it is practicing
________ marketing.
A) value
B) societal
C) sense-of-mission
D) consumer-oriented
E) customer-value
Answer:
Marketing mix planning begins with ________.
A) building an offering that brings value to target customers
B) finding a suitable promotion strategy for the product
C) setting a reasonable price for the product
D) selecting the right channel for distribution of the product
E) calculating the total costs involved in manufacturing the product
Answer:
A country’s ________ shapes its product and service needs, income levels, and
employment levels.
A) international trade system
B) income distribution
C) industrial structure
D) political structure
E) foreign exchange system
Answer:
Which of the following is a negative aspect of a competitor-centered company?
A) It may end up simply matching industry practices.
B) It fails to identify competitors’ weaknesses.
C) It becomes stable and unreactive.
D) It fails to notice weaknesses in its own position.
E) It fails to develop a fighter orientation.
Answer:
Customer relationship management (CRM) helps ________.
A) firms monitor and minimize employee turnover
B) customers manage information about different sellers in the market
C) firms manage customer touch points to maximize customer loyalty
D) customers locate the best deals in the market
E) firms create artificial demand in the market
Answer:
Paul, a purchasing agent for Kiel Inc., has the authority to prevent salespersons from
seeing the decision makers in his organization. Which of the following best describes
Paul’s position?
A) influencer
B) decider
C) gatekeeper
D) buyer
E) user
Answer:
Which of the following has lost population in the past two decades?
A) California
B) Florida
C) the Western states
D) the Northeast states
E) the Southern states
Answer:
Which of the following is true of public policies and pricing?
A) The government imposes no limits on intrastate pricing issues.
B) The Robinson-Patman Act governs interstate commerce.
C) Companies have free rein when it comes to setting prices.
D) The Sherman Act governs intrastate commerce.
E) The Clayton Act encourages the formation of monopolies.
Answer:
Although more price-conscious than other population segments, ________ consumers
tend to be strongly motivated by quality and selection, and give importance to brands.
A) lower upper
B) African American
C) Asian American
D) Filipino
E) working class
Answer:
Retailers such as Costco and Walmart charge a constant, daily low price with few or no
temporary price discounts. This is an example of ________ pricing.
A) competition-based
B) everyday low
C) cost-plus
D) break-even
E) penetration
Answer:
Many companies use RFID product labels on their goods, which exemplifies the
________ environment in business.
A) natural
B) political
C) economic
D) demographic
E) technological
Answer:
The key businesses of Kimberley and Price consist of a division that produces and sells
breakfast cereals and another that manufactures gardening tools. Each of these
businesses is called a ________.
A) market segment
B) strategic business unit
C) question mark
D) prospect
E) product portfolio
Answer:
Marketers should understand that people’s core beliefs and values tend to be ________.
A) fixed
B) highly flexible
C) similar around the world
D) constantly and rapidly changing
E) easily influenced by secondary beliefs
Answer:
Mary Conti, a sales manager at National Computer Training, wants to evaluate the
performance of her sales force in the New England territory. Which of the following
would Mary most likely use?
A) SWOT analysis
B) breakeven analysis
C) sales forecast
D) expense reports
E) call plan
Answer:
Which of the following is an advantage offered by co-branding?
A) Manufacturers do not have to invest in creating their own brand names with
co-branding.
B) Co-branding allows retailers to sell exclusive products that cannot be purchased
from competitors.
C) Co-branding allows a company to expand its existing brand into a category it might
otherwise have difficulty entering alone.
D) Co-branding dilutes brand equity and increases the appeal of store brands.
E) Co-branding does not involve complex legal contracts and licenses.
Answer:
An advertising objective is classified by its primary purpose, which is to inform,
persuade, or ________.
A) reciprocate
B) compete
C) remind
D) explain
E) suggest
Answer:
Johann Herr’s company has standardized the size of its paper bags so that each bag can
be used in five to seven different store departments. In the business buying process, this
approach to cost reduction most likely took place in the ________ stage.
A) problem recognition
B) general needs description
C) product specification
D) supplier search
E) proposal solicitation
Answer:
________ are a specialized means of shipping petroleum, natural gas, and chemicals
from sources to markets.
A) Air tunnels
B) Rail flatcars
C) Steam ships
D) Pipelines
E) Airlines
Answer:
________ is the process by which firms interact one-to-one with masses of customers to
design products and services tailor-made to individual needs.
A) Product diversification
B) Micromarketing
C) Mass customization
D) Differentiated marketing
E) Local marketing
Answer:
________ is the systematic collection and analysis of publicly available information
about consumers, competitors, and developments in the marketing environment.
A) Data warehousing
B) Competitive marketing intelligence
C) SWOT analysis
D) Ethnographic research
E) Customer relationship management
Answer:
Fiona Lambrech is the marketing director of a newly established detergent company. In
order to introduce her product effectively into the market, Fiona sends samples of the
detergent to a select group of individuals. Which of the following forms of marketing
was most likely used by Fiona?
A) direct-mail marketing
B) catalog marketing
C) telephone marketing
D) kiosk marketing
E) direct-response television marketing
Answer:
Country Kitchen and Perkins are both a chain of family restaurants featuring diner-like
menus with reasonably priced items. These companies are in the same ________.
A) focus group
B) control group
C) strategic group
D) target group
E) experimental group
Answer:
Identify and describe the three product strategies a company entering a foreign market
can use.
Answer:
Why is a firm’s organizational climate an important part of building a successful sales
staff?
Answer:
Explain how the creation of the National Do Not Call Registry may have helped
telemarketers more than it hurt them.
Answer:
Discuss the percentage-of-sales method used for setting the total budget for advertising.
Answer:
What is vertical conflict? Illustrate your answer with an example.
Answer:
What is the most important characteristic of a good MIS?
Answer:
Give examples of competitor objectives and discuss the importance of knowing a
competitor’s mix of objectives.
Answer:
Explain how selective distortion is somewhat controllable by a marketer.
Answer:
Why are people that are reached by direct mail better prospects for a company than
those reached by mass media such as television or magazines?
Answer:
Explain the concept of derived demand.
Answer:
How do the practices of high-low pricing and everyday low pricing differ?
Answer:
Compare the practices of price fixing and predatory pricing. Explain why each is
prohibited by law.
Answer:
Give an example of a multichannel distribution system.
Answer:
Compare and contrast specialty stores and convenience stores.
Answer:
Describe the differences between chain stores and franchises.
Answer:
How does the buying process typically begin?
Answer:
What type of research would be the most useful to determine if a 20-percent decrease in
price for a high-end sedan would result in an increase in purchases sufficient to offset
the reduced price? Why?
Answer: