The lower the reach and frequency, the higher the cost of a campaign.
Open-ended questions allow respondents to express themselves freely in their
responses, which tend to result in more detailed responses that are useful for
exploratory research.
According to the BCG matrix, a business that is classified as a star has high growth and
low market share.
Companies often begin direct foreign marketing when they follow existing customers
into foreign markets.
The first step in the new-product development process is to define the product
opportunity.
Success or failure of a new product is determined primarily by the actions of the
company. Making bad decisions by not identifying the value proposition, designing and
building a product that fails to meet customer expectations, and incorrectly pricing the
product are all factors that increase the likelihood of new product failures.
According to Porter, when core competencies are superior to those of competitors, they
are called distinctive competencies.
A mission statement does not include a discussion of the firm’s strategic vision.
Advertising is synonymous with marketing.
When Bernard, a marketer, says that a segment has sufficient size, he means
_________.
A.The segment has a return-on-invest which is very close to the expected value
B.The segment is too large to be worth considering
C.Positive return on investment is expected from the segment
D.The segment has many customers in it
E.The segment has at least one customer in it
Each segment that is chosen needs to have the potential for positive return on
investment. The size of a segment doesn’t necessarily mean number of customers –
when Bombardier markets its small Learjets, it knows the number of potential buyers is
limited.
_____________ remit monies to purchasers after the fact.
A.Fixed costs
B.Variable costs
C.Total costs
D.Discounts
E.Allowances
Allowances are different than discounts in that they return money after the purchase.
_______________ refers to any action using electronic media to communicate with
customers; facilitate the inventory, exchange, and distribution of goods and services; or
make payment.
A.Catalog retailing
B.Direct selling
C.Television home shopping
D.Vending machine retailing
E.Electronic commerce
Electronic commerce is the fastest-growing customer interface. It uses electronic media
to communicate with customers; facilitate the inventory, exchange, and distribution of
goods and services; or make payment.
ROCI stands for _________.
A.Related Observable Customer Index
B.Return on Consumer Indicators
C.Return on Customer Investment
D.Relationship of Customer and Investment
E.Response of Consumers to Investment
ROCI (Return on Customer Investment) is an estimate of the projected financial returns
from a customer.
Over the years, Maytag products have earned a reputation for being reliable and
durable. So when John decided to buy a new Maytag washing machine, he was willing
to pay more for it. This is an example of the _____ dimension of brand equity.
A.Brand Assets
B.Brand Association
C.Brand Awareness
D.Brand Loyalty
E.Perceived Quality
Companies use a positive perceived quality to differentiate the product and create
higher price points. John was willing to pay more for the washing machine because of
the perceived quality of Maytag.
Commissions tied to sales volume or profitability, or bonuses for meeting or exceeding
specific performance targets are examples of ___________________________.
A.Salary
B.Benefits
C.Intrinsic rewards
D.Output measures
E.Incentive pay
Most firms that pay a salary also offer incentive pay to encourage better performance.
Incentives are generally commissions tied to sales volume or profitability, or bonuses
for meeting or exceeding specific performance targets (for example, meeting quotas for
a particular product).
Security of personal data is a major concern in _____________.
A.In-store retailing
B.Television home shopping retailing
C.Catalog retailing
D.Electronic retailing
E.Vending machine retailing
While companies work hard to make their Web sites secure and keep personal data such
as credit-card numbers private, many consumers still have concerns about the security
of their data.
Laggards are people in the adoption process who _________.
A.Purchase during the maturation stage
B.Put off purchasing until there is no other option
C.Are price sensitive and look for simplified products
D.Are price sensitive
E.Take the product into the main stream
Laggards are relatively unimportant in the adoption process as they only buy at the very
end of the life of the product when there are few choices left.
There is a category of goods called unsought goods. These goods are characterized as
being the kind of goods that consumers _______.
A.Want to be completely convenient to them
B.Find located everywhere with intense distribution
C.Find irrelevant to their lives
D.Would rather not purchase at all
E.Only buy if there is not an acceptable substitute
Unsought goods are products that consumers do not seek out and, indeed, often would
rather not purchase at all. For example, insurance, particularly life insurance, is not a
product people want to purchase.
A strategy to intentionally sell below cost to push a competitor out of a market, then
raise prices to new highs is called _________________.
A.Price fixing
B.Price discrimination
C.Deceptive pricing
D.Bait & switch
E.Predatory pricing
Predatory pricing drives competition out of the market. It is illegal but prosecuting it
can be very tricky because intent of the low pricing must be proved.
The business position dimension of the GE Business Screen includes all but
_________.
A.Technology
B.Growth
C.Patents
D.Governmental regulations
E.Marketing
Governmental regulations are a part of the market attractiveness (not business position)
dimension of the GE Business Screen.
This is considered the single best source for competitive information because most
publicly traded companies will post annual report, press kits, company news and
biographies of senior management.
A.Government Sources
B.Company Web site
C.Business Publications
D.Search Engines
E.Salespeople
The single best source for competitive information is the company’s own Web site.
Most publicly traded companies will post annual report, press kits, company news in
the “investor relations” area on their Web site.
In deciding on the right balance between control and flexibility in a channel, marketing
managers must consider all of the following EXCEPT ______________.
A.The type of products involved
B.Cost issues among the various options
C.Strength of belief in the accuracy of the sales forecast
D.Likelihood that major changes will occur in the customer or competitive marketplace
that would necessitate restructuring the channel
E.None of the above
In deciding on the right balance between control and flexibility in a channel, marketing
managers must consider the type of products involved, cost issues among the various
options, strength of belief in the accuracy of the sales forecast, and likelihood that
major changes will occur in the customer or competitive marketplace that would
necessitate restructuring the channel.
What is the size of the minority population in the U.S. and which is the largest minority
group?
Which two price calculations rely heavily on accurate forecasts of products sold?
How does Frito-Lay defend itself when competitors introduce new products?
Why is the Benefits Sought method of segmentation a good place to start the
segmentation process?
Harold and Jerome have been working together to create new blends of teas that they
are hoping to distribute to grocery stores. In regards to a push strategy, what obstacle
may Harold and Jerome run into?
What are the three types of online advertising discussed in the book?
What is the difference between variety and assortment?
Which two brands do you think do a good job of connecting emotionally to the
consumer? Support your answer with examples of what the firm has done to make that
emotional appeal to the consumer. Can you defend your claims with tactics in addition
to advertising?
Hybrid cars attract different customer segments. Identify two segments and explain
what message you would send to each.