For years, P&G was the channel captain in every channel in which it was a member
based on the clout of its extensive stable of No. 1 brands. This is an example of
_______________.
A.Diversification
B.Horizontal integration
C.Corporate VMS
D.Contractual VMS
E.Administered VMS
In an administered VMS, the sheer size and power of one of the channel members
places it in a position of channel control. Since P&G was a channel leader due to its
No.1 brands, this becomes an example of an administered VMS.
Beautiful Babies is a company that utilizes ______________ to sell their products.
Salespeople go to their friend’s and coworker’s homes to demonstrate and sell the
Beautiful Babies products.
A.Vending machine retailing
B.Television home shopping
C.Electronic commerce
D.Direct selling
E.Electronic retailing
Direct selling involves independent businesspeople contacting consumers directly to
demonstrate and sell products or services in a convenient location. In this case,
Beautiful Babies is utilizing a direct selling approach.
High tech media options like cell phones and the Internet have had a huge impact on the
________ aspect of marketing.
A.Product
B.Promotion
C.Price
D.Distribution
E.Research
Changes in the approach to promotions today lie in consumer technology.
Success or failure of a new product is determined by the actions of the company. The
factor or factors that increase the likelihood of failure can be described as _______.
A.Poor marketing communications
B.Failure to meet customer expectations
C.Incorrect pricing
D.Failure to identify the value proposition
E.All of the above
Poor marketing communications, failure to meet customer expectations, incorrect
pricing, and failure to identify the value proposition can lead to product failure.
As in price bundling, it can be useful for customers to have some type of comparative
price when considering a product purchase. Such a comparison is referred to as
______________.
A.Product line pricing
B.Captive pricing
C.Price bundling
D.Reference pricing
E.Prestige pricing
In the case of price bundling, reference pricing is the total price of the components if
sold separately versus the bundled price. The savings would be expected to stimulate
purchase of the bundle so long as the perceived value realized is sufficient.
Customer satisfaction is defined as ________________.
A.The degree to which an individual will resist switching from one offering to another
B.The level of liking an individual harbors for an offering
C.Customer laziness in trying new products
D.The likelihood that a customer becomes a buzz marketer
E.The number of purchases in a defined period of time
Customer satisfaction indicates the level to which the offering meets the customer’s
expectations.
American Express recently introduced the One card that incorporates the American
Express brand as well as its own brand, One. This is an example of _____.
A.Merging
B.Store Branding
C.Combining a family brand with stand-alone branding
D.Co-branding
E.Licensing
One variation on the family vs. stand-alone branding choice is to combine family
brands with a distinct individual product brand. Since the One card incorporates the
American Express brand as well as its own brand One, it combines a family brand with
a stand alone brand.
Customers are sometimes excellent sources of new product ideas. They typically are not
good at coming up with ______.
A.Money making ideas
B.New-to-the-world ideas
C.Ideas that make sense
D.Brand saving ideas
E.None of the above
It is hard for consumers to vision things that are out of their everyday experience and
thus they are not good at new-to-the-world ideas.
Promotion mix decisions are NOT dependent on _______________________.
A.The nature of the offering
B.Stage of the offering in the product life cycle
C.Price of the product
D.Nature of the market
E.Available budget
Promotion mix decisions are dependent on several factors including the nature of the
offering, stage of the offering in the product life cycle, nature of the market, and
available budget.
NRG Beverages and DRNK Spirits are considering co-branding an energy drink that
also contains alcohol. The critical decisions in this type of relationship revolve around
_____ for each firm.
A.Control factors
B.Resource commitments
C.Brand strength
D.Brand identity
E.Brand protection
Critical decisions in the co-branding process revolve around resource commitments,
which company is spending what, and what other resources are asked of each company.
A data warehouse __________________.
A.Is a place to keep former customer records
B.Is storage for old file boxes
C.Allows customers to store meaningful information about themselves online
D.Allows the company to combine huge amounts of information and then use data
mining techniques to learn more about current and potential customers
E.Is a place to store ideas for future marketing campaigns
Data warehouse is used to gather data generated through various touchpoints which is
then transformed into useful information with the help of data mining.
__________________ is NOT one of the examples of the seven broad categories of
advertising media.
A.Radio
B.Magazines
C.Outdoor
D.Direct mail
E.Fax
Key advertising media include television, radio, newspapers, magazines, outdoor, direct
mail, and the Internet.
The firm’s ____________ articulates an organization’s purpose, or reason for existence.
It should define the unique purpose that sets it apart from competitors and identifies the
scope of the company’s operations, products, and markets.
A.Mission statement
B.Goals
C.Objectives
D.Vision
E.Value proposition
The purpose of a mission statement is to articulate the firm’s reason for existence.
Objective measures reflect statistics the sales manager gathers from the firm’s internal
data.
One challenge facing companies is to generate new ideas for products. A good source
for new-product ideas comes from ________.
A.R&D
B.Marketing
C.Manufacturing
D.Internal Employees
E.All of the above
R&D, marketing, manufacturing, and internal employees are considered as good
sources for new product ideas.
Organizing the sales force by _____ is a natural extension of creating value for the
customer and reflects a market segmentation strategy.
A.Geographic orientation
B.Product
C.Size
D.Customer type
E.Work load
Organizing the sales force by customer type is a natural extension of creating value for
the customer and reflects a market segmentation strategy.
Once a(n) ______ strategy is in place, the retailer spends less on marketing
communications and advertising.
A.Every day low pricing (EDLP)
B.High/low pricing
C.Market penetration
D.Intensive distribution
E.Market development
Once an EDLP strategy is in place, the retailer spends less on marketing
communications and advertising because sales promotions are not a big part of the
strategy and, as a result, do not need to be advertised.
_________________ are important service(s) consumers expect but they require a
significant investment by the retailer.
A.In-store events
B.Shipping
C.Order tracking
D.Financing and purchasing options
E.None of the above
Retailers offer additional services that facilitate the purchase for the consumer like
financing and purchase options (cash, credit card, checks). These are important
financial services consumers expect, but these services require a significant investment
by the retailer.
Personality trait theories all have two basic assumptions: (1) each person has a set of
consistent, enduring personal characteristics, and (2) those characteristics can be
measured to identify ___________.
A.Differences between individuals
B.Reactions in certain situations
C.Common beliefs
D.Moods
E.Emotions
Personality is a unique set of personal qualities (such as extroversion, agreeableness)
and these qualities can be measured to identify differences between individuals.
Firms such as General Electric and Starbucks try to practice the concept of “doing well
by doing good”. What does this mean? What are some of the challenges faced by a firm
that wants to create products that fit this concept?
What is puffery and why must it be used carefully?
Your cousin has founded a computer repair service, FRAGMasters. He wants your help
in understanding marketing. How do you explain the difference between strategy and
tactics?
Create the Product Life Cycle chart.
Describe the advantages of personal selling in the promotion mix.
Many factors contribute to the final product choice decision. List and explain four
purchase event characteristics that affect the actual choice decision. Are all/any of these
characteristics under the marketer’s control? How do consumers make final purchase
decisions?