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A company cannot stretch its product line downward.
Children exert little influence on family buying decisions.
Neuromarketing involves measuring brain activity to learn how consumers feel and
respond.
Off-price retailers pay regular wholesale prices for their merchandise but maintain low
prices by accepting lower margins and selling higher volume.
In an automated warehouse, orders are fed directly from the retailer's information
system to the wholesaler's, and the items are picked up by mechanical devices and taken
to a shipping platform where they are assembled.
The purpose of strategic planning is to find ways in which your company can best use
its strengths to take advantage of attractive opportunities in the environment.
The demographic environment is of major interest to marketers because it involves
people, and people make up markets.
Benchmarking involves comparing the firm's products and processes to those of the
competitors to identify best practices to improve quality and performance.
New communications technologies such as cell phones and the Internet give companies
new media for interacting with targeted consumers, but these new technologies also
give consumers more control over the advertising messages they receive.
When a company hires lobbyists to influence legislation affecting its industry, it is
taking a defensive stance toward the marketing environment.
Training online instead of on-site can cut travel and other training costs, and it takes up
less of a salesperson's selling time.
Casey Brickly opened The Landing, a convenience store on the north shore of Witmer
Lake, in 1962. With a sandwich counter on one side and a bait shop and grocery on the
other, The Landing was an immediate hit with weekend lake visitors and local residents
alike. In the summer, boaters parked at the piers and bought all their fishing needs, such
as rods and reels, bait, snacks, and soft drinks at The Landing. Even during the winter
months, snowmobilers and ice fishermen were lured to The Landing for snacks and hot
coffee or hot chocolate.
As time passed, the business changed and grew tremendously. What was formerly a
weekend tourist area gradually became a full-fledged residential area. Many of the
houses, which were built as cottages in the 1950s and 1960s, were remodeled into
residential homes. By the end of the 1970s, the days of small motor boats and 10
mile-per-hour speed limits were gone; skiing and fast speed boats became the rage.
Through it all, The Landing continued to attract flocks of patrons.
In the 1980s, however, Casey started to realize that the grocery area in The Landing
could not compete with larger local retailers. He eventually enlarged the sandwich
counter, transforming the bait shop and grocery into a restaurant with a full menu
typical of any diner.
"Getting rid of the bait shop was hard to do," Casey admitted. "I still had a summer
crowd that relied on us for their fishing needs, but we couldn't survive a whole year on
four months of profit."
In the early 2000s, the atmosphere of Witmer Lake and the neighboring lakes became
upscale. "I could see that people were spending more on their speed boats than what
they had originally paid for their cottages!" Casey exclaimed. Many of the cottages
were inherited by children and grandchildren of the original owners. Once again, the
scene started to change as many of the lake houses were used only as weekend lake
homes. Unlike the previous generation, a vast number of the current owners could
afford to live closer to their jobs while maintaining lake homes. "At this point, business
wasn't growing," Casey said.
As local competition continued to increase, Casey converted the diner of The Landing
into a bar with a lounge area. "The change might have been too drastic," Casey said,
"but it was the only way we could maintain a strong, year-round business in spite of the
population shifts and competitive forces."
Which of the following generational groups is most likely to represent the present
owners of cottages surrounding Witmer Lake?
A) Baby Boomers
B) Echo Boomers
C) Silent Generation
D) Lost Generation
E) Millennials
Apex describes its clothing line as, "Elegance and attitude, now as one. For the daily
office-goer, who takes pride in what he or she wears everyday, Apex makes sure you get
noticed." This exemplifies a ________.
A) statement of purpose
B) vision statement
C) positioning statement
D) general need description
E) product specification
Bicycle helmets have low immediate appeal, but they tend to benefit consumers in the
long run. This indicates that a bicycle helmet is an example of a ________ product.
A) salutary
B) desirable
C) pleasing
D) durable
E) aesthetic
________ 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) Undifferentiated marketing
C) Mass customization
D) Differentiated marketing
E) Trigger-based marketing
All of the following are problems associated with the poor selection of salespeople
EXCEPT ________.
A) lower sales
B) costly turnover
C) less productivity
D) fewer training expenses
E) disruptive customer relationships
A ________ documents an organization's purpose-what it wants to accomplish in the
larger environment.
A) vision statement
B) mission statement
C) business portfolio
D) value proposition
E) product strategy
Which of the following is true about business-to-business e-procurement?
A) E-procurement increases transaction costs for suppliers.
B) Because of an overwhelming demand, e-procurements usually have a huge time gap
between order and response.
C) Many buyers now use the power of the Internet to pit suppliers against one another
and search out better deals, products, and turnaround times on a purchase-by-purchase
basis.
D) E-procurement enhances customer-supplier relationships.
E) Due to extensive paperwork, the relatively important strategic issues, such as finding
better supply sources and working with suppliers to reduce costs and develop new
products, are sidelined.
The proposed right to ________ includes the right to know the unit pricing, the
ingredients in a product, the nutritional value of foods, product freshness, and the true
benefits of a product.
A) charge any price for the product
B) be protected against questionable products
C) influence products and marketing practices in ways that will improve "quality of
life"
D) expect the product to perform as claimed
E) be well informed about a product
Which of the following is true about multivariable segmentation systems?
A) Marketers using multiple segmentation bases tend to ignore smaller markets.
B) Marketers often use multiple segmentation bases to control inflation.
C) Multiple segmentation rarely involves the use of demographic data.
D) Multiple segmentation is ineffective in large markets.
E) Multiple segmentation bases help identify smaller, better-defined target groups.
________ consumers are the most affluent U.S. demographic segment and are expected
to have an annual buying power approaching $775 billion by 2015.
A) Hispanic American
B) African American
C) Asian American
D) Silent Generation
E) Generation X
Bias against bids made by American companies is an example of a(n) ________.
A) quota
B) tariff
C) boycott
D) nontariff trade barrier
E) exchange control
A market-coverage strategy in which a firm decides to target several market segments
and designs separate offers for each is known as ________.
A) mass marketing
B) differentiated marketing
C) concentrated marketing
D) individual marketing
E) cross-marketing
The McDonald's fast-food restaurant chain uses Ronald McDonald, a clown character,
as its primary mascot. Which message execution style is used by McDonalds?
A) technical expertise
B) lifestyle
C) personality symbol
D) image
E) slice of life
Consumer research, product development, communication, distribution, pricing, and
service are all core ________ activities.
A) positioning
B) marketing
C) outsourcing
D) production
E) logistics
The ________ prohibits monopolies and activities (price-fixing, predatory pricing) that
restrain trade or competition in interstate commerce.
A) Sherman Antitrust Act
B) Lanham Trademark Act
C) Fair Packaging and Labeling Act
D) CAN-SPAM Act
E) Magnuson-Moss Warranty Act
Firms use competitive marketing intelligence to ________.
A) create and sustain market monopolies
B) counter the adverse effects of organizational anarchy
C) perpetuate organizational learning
D) gain early warnings of competitor moves and strategies
E) strengthen weak ties with industry competitors
An ad for Maybelline age-minimizing makeup in Ladies' Home Journal magazine
featured actress Melina Kanakaredes and offered readers a $1-off coupon when they
tried the new makeup. In the context of the communication model, measuring which of
the following would be the best way for the source to measure feedback?
A) the number of subscribers to Ladies' Home Journal
B) the number of people who make up the target market
C) the number of people who redeem the coupon
D) the number of people who have purchased Maybelline products in the past
E) the number of people to whom Melina Kanakaredes is an appealing spokesperson
What is good-value pricing?
Explain how seasonality impacts media timing.
Describe the nature of personal selling and the role of the sales force.
How have changes in technology and the growth of online marketing affected the
design of marketing channels?
Why is niching profitable?
Identify the product characteristics that influence the rate of adoption. Explain how
each characteristic affects the rate of adoption.
What is personal selling? What are the advantages and disadvantages of a firm using
personal selling to promote a product or service?
Describe the major contact methods used to collect information from respondents in
market research.
