Which of the following is one of the five basic questions that a good mission statement
should answer?
a. Who are our competitors?
b. What is our market position?
c. What is our operating philosophy?
Which of the following IS NOT a situation that can cause customers to be less sensitive
to price increases?
a. When customers have few product choices.
b. When products are highly differentiated.
c. When the product is a real or a perceived necessity.
d. When the total expenditure is high.
e. When the product is considered to be ‘worth it’.
Why would a firm offer a wide variety of products in its product portfolio?
a. To attract a wide range of customers and market segments.
b. To capitalize on the firm’s reputation.
c. To diversify its risk.
d. To maximize differentiation across its product lines.
e. None of the above.
One of the major difficulties of conducting business in today’s economy concerns the
unclear legal jurisdiction surrounding many business transactions. The issue is
especially keen for marketers who do business in:
a. international markets.
b. domestic, interstate markets.
c. business-to-business markets.
What is the most appropriate type of distribution to use when customers need the
opportunity to comparison shop, or when after-sale services are important?
a. exclusive distribution
b. service-based distribution
c. intensive distribution
Research has found that corporate codes of ethics should contain six highly desirable
core values or principles. Which of the following IS NOT one of these core values?
a. trustworthiness
b. respect
c. legality
Whether at the corporate, business-unit, or functional level, the planning process always
begins with an in-depth:
a. a statement of goals and objectives.
b. a situation analysis.
c. strategy for achieving growth.
d. statement of the organization’s competitive advantages.
e. assessment of the organization’s resources.
The consumer buying process begins when:
a. marketing research discovers a new, untapped market segment.
b. consumers recognize that they have unsatisfied needs.
c. merchants offer goods and services for sale.
d. a manufacturer develops a new product.
e. consumers begin to seek information about an upcoming purchase.
Which of the following relationship strategies is most likely to be used by a health club
as it tries to create social bonds with its clientele?
a. membership programs
b. coupons
c. personalized training
Microsoft is interested in customers’ perceptions of Windows 8, its new PC operating
system. Since the research goal is rather specific, Microsoft should conduct its own
__________ research by asking customers to complete an online questionnaire.
a. secondary
b. primary
c. qualitative
Your supervisor repeatedly informs you that ‘Goals without objectives are essentially
meaningless.’ What is the rationale for such a philosophy?
a. Goals are necessary to provide specific benchmarks that are used to gauge
performance.
b. Objectives provide a theoretical benchmark rather than a practical benchmark.
c. A goal is not a goal unless it contains one or more objectives.
d. Progress is impossible to track without measurable performance targets.
e. Objectives are necessary to provide qualitative benchmarks that are used to gauge
performance.
In many (if not most) circumstances, cutting prices to increase sales volume is not a
good idea. Explain why this is so. What are some alternatives that are preferable to
cutting prices?
In the competitive sports drink market, Gatorade pays very close attention to the
activities of Powerade, a major __________ competitor that markets drinks that are
similar in features and benefits.
a. generic
b. direct
c. brand
Most firms today compete in mature markets characterized by commoditization. In
these cases, the __________ typically becomes incapable of differentiating the product
offering from those of the competition.
a. extended product
b. core product
c. supplemental products
With respect to regulating marketing ethics, a key advantage of self-regulatory
programs like the Better Business Bureau is the fact that they are:
a. less costly and more practical to implement.
b. typically stricter than government regulations.
c. easier to enforce.
d. tied to state and local regulatory agencies.
e. All of the above.
During the maturity stage of the product life cycle, a firm has four general goals that
can be pursued. Which of the following IS NOT one of these options?
a. divest the product
b. generate cash flow
c. steal market share
When a firm possesses capabilities that allow it to serve customers’ needs better than
the competition, the firm is said to have a:
a. resource advantage.
b. competitive advantage.
c. value-based advantage.
Which of the following IS NOT an important benefit of offering a large product
portfolio?
a. package differentiation
b. economies of scale
c. sales and distribution efficiency
Which of the following statements does not describe a reason why noncustomers do not
purchase a firm’s products?
a. Noncustomers have low switching costs.
b. Noncustomers perceive that they have lower-priced alternatives.
c. Poor distribution makes the firm’s product difficult to find.
d. Noncustomers do not know that the firm’s product exists.
e. Noncustomers have a basic need that the firm’s product does not fulfill.
Compared to primary data, secondary data have the main advantage of:
a. being up-to-date.
b. having greater relevance to a specific issue.
c. being both internally and externally focused.
d. being dramatically lower in cost.
e. being readily accessible in electronic format.
Firms possessing certain core competencies are more likely to create competitive
advantages based on these competencies. However, before a competitive advantage can
be translated into specific customer benefits, the firm’s __________ must recognize that
its competencies give it an advantage over the competition.
a. management
b. target markets
c. shareholders
Discuss the role of internal marketing in marketing implementation. In what ways can
the internal marketing approach help managers improve the implementation process?
Identify and discuss at least five reasons why potential customers do not purchase a
firm’s goods or services. For each reason, discuss ways that the firm can overcome the
resistance of noncustomers.
Discuss the four types of consumer products and explain how marketing strategy
changes across these product types. Be sure to use examples.
Identify and explain the five stages of the consumer buying process. Give examples of
marketing activities designed to influence each stage.
Why is the product life cycle an important consideration in selecting and developing a
marketing strategy? What are the core differences among the PLC stages that force
marketers to alter their marketing programs over time?