A waterfall approach to entering foreign markets is described as entering countries
simultaneously.
Hard-core loyals can show the firm which brands are most competitive with its own.
If the length of a product’s downtime increases, the cost incurred decreases.
A good example of collecting behavioral data would be when a store uses scanners to
read bar codes on products selected by consumers.
A marketing channel overcomes the time, place, and possession gaps that separate
goods and services from those who need or want them.
A contractual sales force consists of part-time employees who work exclusively for the
company.
Advertising and publicity play the most important roles in the conviction stage of buyer
readiness.
A company is more likely to be hurt by current competitors than by emerging
competitors or new technologies.
Companies that fail to develop new products leave their existing offerings vulnerable to
increased domestic and foreign competition.
The answer to the question “was the surgery successful?” represents the technical
quality aspect of interactive marketing, one of the three broad areas of service
excellence.
Customer training and customer consulting are two areas for service differentiation that
manufacturers can use with their products.
If the product class is mature, then the advertising objective is to convince the market of
the brand’s superiority.
The traditional view of marketing is that the firm makes something and then sells it.
A firm’s tangible offering to the market includes product quality, design, features, and
packaging.
Carlos always buys bread and milk when he goes grocery shopping. In this case, bread
and milk are examples of impulse goods.
Category membership is seen as the products that function as close substitutes of a
brand.
The product-management organization replaces the functional organization in the firm.
Although consumers may have fairly good knowledge of the range of prices involved,
very few can accurately recall specific prices of products.
The selling concept holds that consumers will prefer products that are ethical,
environmentally responsible, legal, and social in the context of marketing activities and
programs.
A local service company has decided to segment its market based on occupation;
therefore, it has chosen a form of demographic segmentation for its approach.
Beta testing tests the product within the firm to see how it performs in different
applications.
Companies enter the international market only when their domestic markets are
saturated.
Clubs that are open to everyone who purchases a product or service are good for
building a customer database.
Guarantees are most effective when the product is well known and/or similar in
performance to other brands in the market.
Once a SWOT analysis has been completed, the strategic planner is ready to proceed to
the goal formulation stage of the strategic-planning process model.
The private non-profit sector is a provider of services.
The niche marketing strategy used by Tom’s of Maine, which used concentrated
marketing, is in line with an individual marketing strategy.
Consumers may evaluate identical products differently depending on how they are
branded.
Regulation of technological changes has been relaxed by the U.S. government over
recent years.
A strategy is a game plan for achieving what the business unit wants to achieve.
Villy Custom Bicycles come in a variety of mix and match colors and styles so
consumers can design their own. This is an example of personalizing the product.
A manager is using feed-forward sales supervision when he communicates what the
sales reps should be doing and motivates them to do it.
The annual plan control process begins with measuring performance.
After developing a research plan, a marketing researcher should define the problem and
research objectives.
Associations that make up points-of-difference are based exclusively on product
features.
Retailer cooperatives allow nonmember retailers to buy through them and share the
profits.
Positioning is the act of designing the company’s offering and image to occupy a
distinctive place in the minds of the target market.
A company must consider the product’s stage in the life cycle and its importance in the
company’s portfolio before responding to a competitor’s price cut.
Country-of-origin effects refer to the attitude anything produced by the home country is
better than imported goods.
________ are unbranded, plainly packaged, less expensive versions of common
products such as spaghetti, paper towels, and canned peaches.
A) Common carriers
B) Shills
C) Generics
D) Private labels
E) Marques
The rapid diffusion of multipurpose smart phones, broadband and wireless Internet
connections, and ad-skipping digital video recorders (DVRs) have augmented the
effectiveness of the mass media.
Chipotle engages customers through Facebook, Twitter, and other social media via its
grassroots “Food with Integrity” digital strategy, which puts the focus on what it sells
and where it comes from. These are examples of ________ media.
A) owned
B) earned
C) paid
D) service
E) marketing
________ marketing is about making sure the brand and its marketing are as personally
relevant as possible to as many customers as possible”a challenge, given that no two
customers are identical.
A) Personalizing
B) Permission
C) Identification
D) Database
E) Integrated
________ is composed of all parties who participate in the purchasing decision-making
process and share common goals and risks associated with their decisions.
A) The buying center
B) The marketing sales team
C) Strategic management
D) Engineering support
E) The logistics center
To exploit the power of social media, marketers need to create tangible value for
consumers, which can come from all of the following EXCEPT ________.
A) discounts
B) coupons
C) information
D) solicitations
E) special offers
Rotter Garder Inc. is a large-scale paint manufacturer known for its wide range of
decorative paint products and industrial coatings. In addition to making paints, the
company also owns and operates the retail stores that sell its products. This is an
example of a(n) ________ vertical marketing system.
A) administered
B) contractual
C) referent
D) corporate
E) regulated
The darker side of direct marketing, from a consumer perspective, includes all of the
following EXCEPT ________.
A) irritation
B) unfairness
C) deception and fraud
D) federal regulation
E) invasion of privacy
In the cycle of complete strategic planning, taking corrective action is a part of
________.
A) planning
B) implementation
C) controlling
D) organizing
E) analyzing
Identify the first step in the workload approach to establish sales force size.
A) grouping customers into size classes according to annual sales volume
B) establishing desirable call frequencies for each customer class
C) determining the total workload for the country in terms of sales calls per year
D) determining the average number of calls a sales representative can make per year
E) calculating the total number of sales reps needed
Which of the following is a factor considered when a customer is evaluated based on
the RFM formula?
A) the amount of time passed after the customer’s last visit
B) the product categories purchased by the customer
C) the mode of payment used by the customer
D) the location from which the customer has bought goods
E) the type of feedback provided by the customer
Spike Inc. is a sportswear manufacturer that recently launched its new line of
customizable running shoes. The shoes come with a digital component that allows them
to adapt to the runner’s biomechanics. To promote this new product, Spike launches an
advertising campaign and entices a famous athlete to endorse the product. This is an
example of a ________.
A) trade promotion
B) reverse flow
C) push strategy
D) pull strategy
E) backward flow
For a segment to meet the ________ criterion of usefulness, the marketer must be able
to formulate effective programs for attracting and serving the segments.
A) measurable
B) substantial
C) accessible
D) differentiable
E) actionable
Marketing effectiveness rating instruments and marketing audits are approaches to
________ control.
A) annual-plan
B) profitability
C) efficiency
D) strategic
E) statistical
When American Airlines asked “1) What types of first-class passengers would respond
most to ultra high-speed Wi-Fi service and 2) How many are likely to use it at different
price levels?”, it was ________.
A) setting specific research objectives
B) conducting exploratory research
C) outlining decisions
D) defining the problem
E) designing a research plan
Transforming into a true market-driven company requires organizing around ________.
A) sales
B) customer segments
C) products
D) functions
E) brands
In which of the following does a customer respond to the technical quality of a service?
A) Sara’s preferred hair stylist is some miles away, but Sara goes to him because his
styles suit her looks.
B) Kathy tries out a new restaurant every week, because she likes to experience the
variety.
C) Bill has gone to the same chiropractor for the past fifteen years, because he is
friendly and takes the time to listen to Bill.
D) Ray avoids going to the bank as far as possible because the manager is rude and
unhelpful.
E) Alex has no interest in theater, but goes often because her best friend loves plays.
________ marketing describes the employees’ skill in serving the client.
A) External
B) Internal
C) Promotional
D) Direct
E) Interactive
When Starbucks introduced its Tazo Tea line to bring in new customers who had never
gone to Starbucks because they don’t drink coffee, Starbucks was employing a
________ strategy.
A) market-penetration
B) new-market segment
C) geographical-expansion
D) niche identification
E) blue-ocean
Winstar is a large-scale manufacturer with more than a hundred partners across the
globe. When making decisions concerning distribution and channel optimization, the
company invites members from its channel partners to be part of its advisory
committee. This helps the company maintain harmony with its partners. Which of the
following conflict resolution techniques is Winstar using?
A) diplomatic counselling
B) mediation
C) arbitration
D) co-optation
E) joint membership
The goal of positioning is to ________.
A) locate the brand in the minds of consumers to maximize the potential benefit to the
firm
B) discover the different needs and groups existing in the marketplace
C) target those customers marketers can satisfy in a superior way
D) collect information about competitors that will directly influence the firms’ strategy
E) help the firm anticipate what the actions of its competitors will be
Place advertising, or out-of-home advertising, is a broad category that includes many
creative and unexpected forms to grab consumers’ attention, including all of the
following EXCEPT ________.
A) billboards
B) yellow pages
C) public spaces
D) product placement
E) point of purchase
Which of the following is the most accurate description of a value network?
A) a system of partnerships and alliances that a firm creates to source, augment, and
deliver its offerings
B) a system of organizations and resources involved in moving a product from supplier
to customer
C) an arrangement whereby an organization transforms inputs into finished goods
D) a network that allows an organization to take the finished products to the end-users
E) a communication network that allows an organization to transfer information to
end-customers
After creating a product prototype, a company tests it within the firm to see how it
performs in different applications. The company refines the prototype to correct the
mistakes found in in-house testing. What should be the next step?
A) commercializing the product
B) performing concept testing
C) conducting beta testing with customers
D) creating a marketing strategy for the product
E) performing business analysis
Which of the following is a policy a store can adopt to make low-profit customers more
profitable?
A) 2Wheels sends birthday greetings to its best customers and gives them discounts on
merchandise.
B) 2Wheels has a club for its regular customers, organizing cycling events and parties
for them.
C) Though 2Wheels previously offered free delivery, it now charges for deliveries made
outside the city.
D) 2Wheels allows existing customers to upgrade to a newer model at less than the
sticker price by trading in their older model.
E) 2Wheels encourages customers to send in their suggestions for product
improvement.
A marketing manager has decided to “leapfrog” the competition by moving into
cutting-edge technologies. This indirect approach to attacking competition can be
characterized as a(n) ________ attack.
A) flank
B) encirclement
C) bypass
D) guerrilla
E) frontal
In which of the following forms of countertrade do buyers and sellers directly exchange
goods, with no money and no third party is involved?
A) buyback arrangements
B) offsets
C) barter
D) sealed bids
E) compensation deals
________ reward dealers for participating in advertising and sales support programs.
A) Functional discounts
B) Trade discounts
C) Promotional allowances
D) Rebates
E) Quantity discounts
Which of the following is an example of a word-of-mouth marketing communication
platform?
A) chat rooms
B) billboards
C) factory tours
D) incentive programs
E) trade shows
OrdOnline, a pure click company offering online auctioning, decides to launch a
promotional program to increase its sales. To select a target market, the company
identifies customers who have made at least three purchases and spent at least $150 in
the past six months. Which of the following strategies is used here for targeting
customers?
A) viral marketing
B) objective screening
C) internal targeting
D) catalog marketing
E) RFM formula targeting
Why do many U.S. firms prefer to sell in Canada, England, and Australia, rather than in
Germany and France?
A) They prefer markets that are culturally distant.
B) Germany and France have larger markets.
C) They feel more comfortable with the languages, laws, and culture.
D) They are seeking markets with high market risk.
E) This gives them a toehold in fast-growing markets.
Marketers who target consumers on the basis of their ________ believe that they can
influence purchase behavior by appealing to people’s inner selves.
A) time famine
B) sophistication
C) money constrain
D) social class
E) core values
Discount stores typically fall into the ________ group with respect to margins and
volume.
A) mixed-markup, high-volume
B) low-volume, mixed-markup
C) low-volume, low-markup
D) high-volume, low-markup
E) high-markup, lower-volume
The Marketing Funnel (Scenario)
Amy and Jack were loyal customers of GreenFoods, a local grocery store. However,
after a couple of incidents where they had to return products that were stale and out of
date, the couple decided to try out VeggiesNmore, a chain store that recently opened in
town. Both Amy and Jack must move through each stage in the marketing funnel before
becoming loyal customers.
Jack has shopped at VeggiesNmore. He was happy with the experience and thought that
this could be an alternative to GreenFoods. However, he is also eager to try out other
stores in the neighborhood. He is in the ________ stage of the marketing funnel as far
as shopping at VeggiesNmore is concerned.
A) aware
B) open to trial
C) most often used
D) nonrejecter
E) regular user
Explain total customer satisfaction.
What questions should a firm consider if it is in a nonhomogeneous market and a
competitor lowers its prices?
The term sales representative covers a broad range of positions, tasks, and
responsibilities. List and briefly describe each of the positions.
A group of entrepreneurs is planning to start a food processing company. Comment on
the likely evolution of the company’s marketing channels.
How do response hierarchies suggest different customer responses to communications
about new cars and rice?
Package delivery company UPS uses distinctive brown trucks that have become almost
an icon. Explain why such physical facilities are important for UPS while it provides
package delivery services.
Why do companies use infomercials?
Define customer equity, and describe three things that affect customer lifetime value.
Define line stretching and describe three types of line stretching.
Briefly describe single-segment concentration with an example.
Heuristics can come into play when consumers forecast the likelihood of future
outcomes or events. How does a consumer use an anchoring and adjustment heuristic?
Betty’s favorite restaurant is Zing’s. The last time Betty visited Zing’s, the food was
excellent, and the service was attentive. Tonight is her anniversary, and she was looking
forward to an outstanding experience. After the meal, she starts feeling that the service
was not up to par and the evening was not as successful as she had hoped. What
elements of this story tell you that the problem, according to the service-quality model,
is a gap between perceived service and expected service?
Give an example of how a company might target products to children in an ethical way.
The Internet has given today’s companies a new set of capabilities. Among those
capabilities is the ability to operate a new information channel. Describe how
information can be used by the marketer in this new channel.
Eureka Forbes, an Asian consumer appliances company, sells its vacuum cleaners
through door-to door sales. Comment on the length of the channel in the case of Eureka
Forbes’ vacuum cleaners.