Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
One marketing issue unique to nonprofit organizations is that these organizations must
often target those who are apathetic about or strongly opposed to receiving their
services.
a. True
b. False
Answer:
DeltaFaucet Company
Masco is the name of a well-recognized company in the construction industry. It
produces cabinetry, furniture, lighting, and plumbing fixtures for the upper-end
homeowner and builder. One of the divisions of Masco is the Delta Faucet Company,
which is the leader in the faucet industry. Delta was founded in 1955. Over the decades,
it has developed a legacy based on well-crafted, high-quality products. Since the 1970s,
Delta has focused its energies on building loyalty with the builder marketplace.
Research in 2002 showed that while builders respected the Delta faucet for its quality,
durability, and dependability, household consumers were not enamored with Delta
products. Due to the number of new magazines and television programs devoted to
home style, homeowners wanted faucets that were chic and stylish. This was not the
image of the Delta faucet. To change its image, Delta began a marketing program in
which it committed itself to developing new products to appeal to homeowners. It
adopted a new slogan"""Beautifully Engineered."
Refer to Delta Faucet Company. Delta is a of Masco.
a. target market
b. transactional division
c. strategic business unit (SBU)
d. share-bearing unit (SBU)
e. situational business usage (SBU)
Answer:
A publicly accessible Web page that functions as an interactive journal is called a(n):
a. blog.
b. profile.
c. tweet.
d. electronic diary.
e. status page.
Answer:
AppleiPhone
Apple, Inc.'s iPhone first went on sale on June 29, 2007. Apple's loyal and enthusiastic
customer base is known for rushing to purchase its new products, and the iPhone
enjoyed a tremendous amount of buzz before its introduction. As expected, the iPhone
entered the market at what many believed to be a high price ($599). However, within
weeks, the price was reduced to $399. By the end of 2007, over eight million iPhones
had sold in the U.S. marketplace. By most, if not all measures, the original iPhone was
a huge success for Apple and its then-exclusive U.S. carrier AT&T.
On July 11, 2008, Apple, Inc. released the iPhone 3G, which it advertised as being
twice as fast as the original iPhone for half the cost. However, in order to obtain an
iPhone at the new price of $199, buyers had to agree to a two-year service contract with
AT&T. This approach succeeded, and over a million iPhone 3Gs were sold during the
introductory weekend. In 2011, the iPhone 4Sthe fifth generation iPhoneled cellular
phone sales with more than 25 million units sold. Several Android-based phones
manufactured by Samsung were not far behind, however.
Refer to Apple iPhone. HSBC Group is the world's largest banking group. When the
iPhone 3G was released, HSBC considered switching from BlackBerry handsets to
iPhone 3Gs. This would mean ordering 200,000 iPhones, so HSBC would probably
receive special pricing incentives, including a:
a. functional discount.
b. cash discount.
c. seasonal discount.
d. rebate.
e. quantity discount.
Answer:
When the manufacturer of French's classic yellow mustard introduced French's Dijon
mustard, French's Honey mustard, and French's Sweet Onion mustard, it was an
example of cobranding.
a. True
b. False
Answer:
To be successful, most businesses focus on customer service. However, the cable
industry has a history of poor customer service. Cable companies are facing
competition for television customers who once had no choice but cable if they wanted
to see more than local programs. In the face of this competition from direct broadcast
satellites, cable companies are trying to use a _______ strategy to show that they have
become customer oriented.
a. segmentation
b. product differentiation
c. targeting
d. repositioning
e. demarketing
Answer:
Kellogg's gives consumers the chance to receive a free DVD. Consumers who buy five
boxes of specially marked cereal can cut out the coupons and mail in their completed
official form to get a free DVD. Kellogg's is engaging in:
a. transactional marketing
b. sports distribution
c. relationship marketing
d. one-to-one marketing
e. customer transformation
Answer:
With ____ , a domestic firm buys part of a foreign company or joins with a foreign
company to create a new entity.
a. direct investment
b. a joint venture
c. a buying-for-export agreement
d. a contractual agreement
e. a franchise relationship
Answer:
Ads for M&M candy that prominently feature the M&M candies in real-life situations
are using a _____ style.
a. slice-of-life
b. lifestyle
c. animated product symbol
d. demonstration
e. scientific
Answer:
PepsiCo's annual report has the following statement: "Our business is to increase the
value of our shareholder's investment. We do this through sales growth, cost controls,
and wise investment of resources. We believe our commercial success depends upon
offering quality and value to our consumers and customers; providing products that are
safe, wholesome, economically efficient, and environmentally sound; and providing a
fair return to our investors while adhering to the highest standards of integrity." This
statement is an example of PepsiCo's:
a. marketing mix strategy
b. quantifiable goal
c. mission statement
d. statement of economic potential
e. market segmentation strategy
Answer:
Marketing plans should be written to do all of the following EXCEPT:
a. compare actual and expected performance
b. provide clearly stated activities
c. create common goals for employees to work toward
d. allow managers to enter the marketplace with an awareness of possibilities and
problems
e. control the elements of the external marketing environment
Answer:
A large automotive after-market business wanted to improve its current situation, which
is characterized by excessive inventory, incomplete information, high logistics costs,
slow reactions to environmental change, and lost profits at the retail level. Would
supply chain management be of any help to the business?
a. Yes, supply chain management is designed to coordinate and integrate all the
activities from raw materials to product consumption.
b. No, supply chain management is only applicable to distribution strategies for
products being sold to the consumer market.
c. Yes, supply chain management would be very useful because it relies so heavily on
benchmarking.
d. Yes, supply chain management would alleviate all channel conflict.
e. No, supply chain management requires an expensive investment of time and
resources to make it worthwhile.
Answer:
CollegeEntertainers
Most colleges and universities have a campus activity board that brings entertainers and
special events to campuses. To locate and hire these entertainers, many campuses send
their student activity board members to one of the seven regional conventions or the
National Association of Campus Activities (NACA) convention. More than 100
entertainers, talent agencies, and companies that provide promotional services exhibit
their products at these conventions in an area similar to a trade show. (Conference
attendees call this the Marketplace.) Approximately 20 entertainers are selected to
present a short program (called a showcase) in which they demonstrate what they would
do if hired to perform on campus. Many other entertainers have videos and CDs, which
they hand out to student attendees. Only one or two members of any student group can
actually set up a contractual agreement with an entertainer or his or her agency. Other
student attendees provide input as to which entertainers best match the demographics of
their institutions.
Refer to College Entertainers. The entertainers and agency representatives engage in in
the Marketplace.
a. transformational management
b. countertrades
c. all types of marketing communications
d. personal selling
e. loyalty marketing programs
Answer:
Publicity is free.
a. True
b. False
Answer:
Liz tends to adopt new products sooner than a lot of other people, but she weighs the
pros and cons before buying. She does considerable product research, but her friends
don"t really look to her for information. She really deliberates before she makes a
purchase. Liz is best described as a(n):
a. innovator
b. early adopter
c. early majority
d. late majority
e. laggard
Answer:
As products enter the growth stage of the product life cycle, prices generally begin to
stabilize.
a. True
b. False
Answer:
The Sherman Act of 1890 establishes protection for trademarks.
a. True
b. False
Answer:
When customer expectations regarding product quality, service quality, and value-based
price are met or exceeded,
_____ is created.
a. a value line
b. a quality rift
c. planning excellence
d. customer satisfaction
e. expectation satisfaction
Answer:
The main goal of the global product development process is to:
a. come up with a single standard product or product line suitable for all global markets
b. expand the number of different new-product offerings so that individual country
needs are more likely to be met
c. develop every product for potential worldwide distribution and adaptation to other
countries
d. come up with new-product ideas in the United States and use global markets as test
markets
e. repeat the steps in the process with marketing teams in each and every foreign
country targeted
Answer:
Supplier integration occurs when multiple firms in a supply chain coordinate their
activities and processes so that they are seamlessly linked to one another in an effort to
satisfy the customer.
a. True
b. False
Answer:
Which of the following is an example of a channel through which customer data are
traditionally gathered?
a. Store visits
b. Conversations with salespeople
c. Interactions via the Web
d. Phone conversations
e. All of these
Answer:
When a salesperson offers a discount if a prospect places a larger order, he or she is
using the process of:
a. summary.
b. assumption.
c. negotiation.
d. adaptation.
e. follow-up.
Answer:
_____ is the development of a specific marketing mix to influence potential customers'
overall perception of a brand, product line, or organization in general and is related to
the place a product occupies in consumers' minds relative to competing offerings.
a. Market differentiation
b. Diversification
c. Combination marketing
d. Positioning
e. Market aggregation
Answer:
While the sales of the Apple iPhone have been great from the beginning, when Apple
released its iPhone 4S and cut the price of the iPhone 4 from $399 to $199, sales
exploded with one million iPhone 4 models sold the first weekend. Demand for the
iPhone appears to be:
a. unitary.
b. predictable.
c. synergistic.
d. inelastic.
e. elastic.
Answer:
There is an overabundance of apartments in Atlanta. Post Properties, the owner of many
of the metropolitan area's largest apartment complexes, has reduced its rent so it can fill
vacant apartments. Which marketing mix element did Post change to create more
demand for its apartments?
a. Production
b. Personnel
c. Distribution
d. Product
e. Price
Answer:
The set of steps a salesperson goes through to sell a particular product is called the:
a. P-O-S cycle.
b. stimulus-response hierarchy.
c. sales presentation.
d. sales process.
e. sales continuum.
Answer:
The most basic benefit the consumer is buying in a service is referred to as the:
a. primary service
b. inherent service
c. core service
d. tangible service
e. complete service
Answer:
Yuengling is the oldest brewery in the United States. It was founded in 1827 in a time
when small breweries dotted the nation. For many years, the brewery only sold in a
ten-state area on the Eastern Seaboard. For over 170 years, this strategy gave the
brewery a:
a. brand name strategy
b. niche competitive advantage
c. price differentiation advantage
d. marketing competitive advantage
e. sustainable competitive advantage
Answer:
The way to achieve customer satisfaction and value is to offer the lowest price.
a. True
b. False
Answer:
Which product characteristic affecting the rate of adoption represents the degree to
which the new product is consistent with existing values and product knowledge, past
experiences, and current needs?
a. Complexity
b. Compatibility
c. Relative advantage
d. Observability
e. Trialability
Answer:
Claxton Bakery recently began selling its fruitcakes online. If Claxton wants a simple
pricing system that allows for different shipping charges depending on geographic
segment or region, the company should use ____pricing.
a. two-part
b. uniform delivered
c. freight absorption
d. flexible
e. zone
Answer:
FederalAviationAdministration
The Federal Aviation Administration (FAA) has been struggling for several years with
antiquated systems, and all it takes is a single failure on one piece of the system to shut
down the entire air-traffic control system for several hours, resulting in significant
snarls at major airports. The most recent failure occurred in the FAA's core
telecommunications network, called the Federal Telecommunications Infrastructure
(FTI), which is managed by Harris Corporation. Marc Raimondi, a spokesperson for
Harris, said, "The FTI system has proven to be one of the most reliable and secure
communications networks operating within the civilian government." Snafus like this
have been happening with alarming frequency, prompting Congress to demand the FAA
and its contractors to do more to prevent these malfunctions. The problem is that the
FAA has been using a patchwork approach by updating old systems with modern
hardware and software instead of ordering a complete overhaul of the system. The
FAA's next generation of modernization will rely on satellite-based networks instead of
phone lines and data cables. The FAA is waiting for White House approval on whether
it will have the funds to take this next step.
Refer to Federal Aviation Administration. When the FAA purchases a satellite-based
system, it is purchasing an entire system, not just a modified part or new vendor for
existing parts. Basically, this is a situation in which the FAA will be purchasing a
system for the first time and is referred to as a(n):
a. straight rebuy.
b. modified rebuy.
c. new buy.
d. original equipment purchase.
e. primary purchase.
Answer:
Business services:
a. are capital items.
b. are never outsourced.
c. are not used in reciprocity arrangements.
d. typically become part of the finished product.
e. are expense items.
Answer:
SpecialtyCakes
Imagine that you"re planning an aftersymphony fundraising party, and you need a
lifesize grand piano cake. Or, you are a developer proposing a new shopping center to a
group of investors, and you want to serve a cake shaped like an architectural rendition
of the center. Is this impossible? No, you just need to contact Cecilia Villaveces Cakes.
She actually built a life-size grand piano for a gala in Macon, Georgia. You can expect
to pay anywhere from $75 to $10,000 for one of Cecilia's artistic creations, depending
on complexity of design and size. She uses only the best ingredients, and no two cakes
are ever quite alike.
Refer to Specialty Cakes. Which of the following is the BEST example of a variable
cost for Cecilia Villaveces Cakes?
a. Life insurance on Cecilia
b. Flour and sugar
c. Ovens used for cooking cakes
d. Business licenses
e. Interest payments to the bank
Answer:
The purpose of market segmentation is to:
a. reduce the market down to a size the firm can handle
b. divide the market into equal size and profit regions for sales territories
c. group a large number of markets together, enabling a company to serve them
simultaneously
d. develop a generalized definition of the market as a whole
e. enable the marketer to tailor marketing mixes to meet the needs of one or more
specific groups
Answer:
What is nonprofit organization marketing? How does nonprofit marketing affect
economic activity in the United
States?
Answer:
In the 1980s, Japanese computer chip manufacturers were accused of dumping in the
United States. Explain what this means and discuss why a company would do this.
Answer:
Explain how the Internet and extranets affect price. In particular, how do shopping bots
and business-to-business auction Web sites affect pricing?
Answer:
Several factors inherent to the product itself influence the promotional mix. Name and
briefly describe three of these factors.
Answer:
When retailers decide on location, they have two basic site options: the freestanding
store and the shopping center.
Briefly describe these location alternatives and discuss the advantages and
disadvantages of each location alternative.
Answer:
What is a break-even point? The Catera Company makes and sells cotton candy
machines. What is the break-even volume for Catera machines in units?
Answer:
Describe the four stages of business globalization. Why do most companies stop when
they reach the third stage?
Answer:
Define core services and supplementary services. Give an example of each for the
following services: a wedding consultant, a lawn-care service, and tutoring service.
Answer:
How do value-based pricing, unbundling, and bundling help marketers hold on to
market share during a recession?
Answer:
Explain what is meant by positioning. Describe the bases marketers use to position
products and services.
Answer:
The purchasing strategies of business buyers may provide useful segments. Two
purchasing profiles for business buyers have been identified. Name and describe them.
Answer:
What is geodemographic segmentation? What is the result of geodemographic
segmentation? Give one specific example that illustrates this type of segmentation.
Answer:
Marketers are interested in social class for two main reasons. What are they? Give a
real-world example for each.
Answer:
The promotional mix is made up of a blend of five promotional tools. Name and briefly
define each of these five tools.
Answer:
Advertisers must evaluate several qualitative factors involved in media selection. Name
at least three of them.
Answer:
