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In response to price cuts from competitors, a cereal company with several more
expensive and higher quality cereals introduced a lower-priced option to its product
line. This is an example of which of the following responses to a competitor's price cut?
A) raising the perceived value of a product
B) improving product quality
C) accepting a reduced market share
D) launching a "fighter brand"
E) using high-low pricing
Refer to the scenario below to answer the following question.
Selman & Saks, a maker of men's and women's razors and electric hair trimmers, had
little reason to become involved in the global arena. But after acquiring Wellman
Enterprises, whose largest division engages in a licensing agreement with a German
firm to produce women's hosiery, managers at Selman & Saks wondered whether a
company-wide global focus would be more profitable after all.
Managers at Selman & Saks studied Wellman's licensing agreement in great detail.
Even after seeing the benefits Wellman achieved with the licensing agreement,
managers decided that Selman & Saks would target the French market merely via
exporting.
With the assistance of a domestic export department, Selman & Saks razors and hair
trimmers entered France. For six months, sales were mediocre. But after that, sales
suffered. Opinions varied among numerous managers as to the cause of the failure.
"Who knows the local market better than people who live there?" was a comment heard
throughout Selman & Saks. "Maybe we needed an alliance with a French firm, or a
licensing agreement, before racing to get there."
If Selman & Saks allowed a French company to produce and market razors and
trimmers carrying the company's brand in exchange for a royalty, Selman & Saks would
be using the market entry strategy of ________.
A) exporting
B) franchising
C) licensing
D) contract manufacturing
E) joint ownership
________ refers to socially and environmentally responsible marketing that meets the
needs of consumers and businesses while also preserving or enhancing the ability of
future generations to meet their needs.
A) Ambush marketing
B) Evangelism marketing
C) Sustainable marketing
D) Database marketing
E) Affinity marketing
The PLC concept can be applied by marketers as a useful framework for describing
how ________.
A) competitors' moves are predicted
B) marketing strategies are developed
C) products and markets work
D) concept testing is conducted
E) product ideas are developed
Refer to the scenario below to answer the following question.
Reliable Tools Company is a manufacturer of hubs and axles for the trailer and heavy
truck industry. Although Reliable Tools only has 15 customers, the company is the sole
supplier of hub and axle components to those customers. Monthly sales at Reliable
Tools are approximately $1 million. "You might say we have all our eggs in one
basket," says owner Arthur Deetz.
It is critical that a competent sales force be maintained in order to nurture those few but
large accounts. Ninety-five percent of Reliable Tools' customers are located in
Michigan, Ohio, and Indiana, which means that travel time to all customers is relatively
short. However, given the nature of the industry, time spent with each customer is
crucial.
How would a customer sales force structure benefit Reliable Tools?
A) It would eliminate the need for the company's salespeople to travel to meet
customers.
B) It would enable the company's salespeople to build close relationships with
customers.
C) It would help the company's salespeople become experts in the products they sell.
D) It would enable the company's management to cut training costs substantially.
E) It would make telemarketing irrelevant.
All of the following are disadvantages of test marketing EXCEPT that test marketing
________.
A) is typically expensive
B) can be time consuming
C) enables competitors to gain advantages
D) encourages dishonesty among participants
E) fails to guarantee product success in the market
A(n) ________ is a set of symbols that the sender transmits.
A) encoder
B) feedback loop
C) message
D) media
E) decoder
Electrowhip, a company that manufacturers blenders and electric whisks, has decided to
use a market penetration pricing strategy. Which of the following, if true, proves their
decision to be a wise one?
A) Electrowhip's competitors utilize social media for marketing their products.
B) Electrowhip sells products whose image and quality support high prices.
C) Electrowhip operates in a market with many competitors.
D) Electrowhip does not operate in a price sensitive market.
E) Electrowhip's products are intended to appeal to the elite in society.
Orion is planning to give away free mouse pads imprinted with the company logo and
name to anyone who enters their store on the day they launch their new laser mouse.
What kind of sales promotion is Orion planning?
A) promotional products
B) rebate
C) price packs
D) sweepstakes
E) premiums
Amanda Perkins is a senior sales manager in Arlington Steelworks. As the customer
base of her company has grown larger and more demanding over the last few years,
Amanda insists on ________, or using groups of people from various departments such
as sales, technical support, engineering, and even upper management to service
complex accounts.
A) cross selling
B) e-procurement
C) team selling
D) observational research
E) vendor screening
A segment is less attractive if it ________.
A) is difficult for new entrants to enter
B) is substantial
C) is actionable
D) already contains many strong and aggressive competitors
E) contains weak suppliers
Music Mogul has arrangements with several stores and retail chains to place their
DVDs and digital music machines in prime spots such as near billing counters and at
store entrances. Consumers can buy DVDs by depositing payment or they can buy
music online via the touch-screen interface on the machine. Which form of marketing is
illustrated in this scenario?
A) direct-response television advertising
B) telemarketing
C) interactive television
D) podcast marketing
E) kiosk marketing
________ buy mostly from producers and sell to retailers and industrial consumers.
A) Warehouse clubs
B) Factory outlets
C) Wholesalers
D) Discount stores
E) Megaretailers
According to the Boston Consulting Group approach, ________ provides a measure of
market attractiveness.
A) product attribute
B) product design
C) market penetration
D) market growth rate
E) market segmentation
Which of the following involves setting prices based on a rival firm's strategies, costs,
prices, and market offerings?
A) target return pricing
B) good-value pricing
C) competitor value-added pricing
D) market-based pricing
E) competition-based pricing
Deficient products are products ________.
A) that have neither immediate appeal nor long-run benefits
B) that give high immediate satisfaction but only hurt consumers in the long run
C) that have low appeal but may benefit consumers in the long run
D) that are either unsafe or inferior
E) in the decline stage of the product life cycle
Deceptive promotion includes practices such as misrepresenting the product's
________.
A) price or packaging
B) features or performance
C) size or quantity
D) wholesale or retail price
E) packaged contents
Compare and contrast the two common principles that can be used to guide companies
and marketing managers on issues of ethics and social responsibility.
Describe the nature of personal selling and the role of the sales force.
Describe the major contact methods used to collect information from respondents in
market research.
Define customer equity and explain how a company can increase it.
Explain how the PLC applies differently to a product class than to a product form.
