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Landline telephone service is a good example of a product in the maturity stage of the
product life cycle.
a. True
b. False
Answer:
Franchising is a form of:
a. contract marketing
b. international exporting
c. licensing
d. direct exporting
e. countertrading
Answer:
Betty Crocker brand sells a Hershey's Ultimate Fudge cake mix that prominently
features both the Betty Crocker and Hershey's names and logos on the box. This is an
example of cobranding.
a. cooperative
b. ingredient
c. umbrella
d. complementary
e. family
Answer:
SmellyFruit
At first glance, there is little to like about the durian. The durian is a fruit popular in
Thailand that is spiky outside and stinky on the inside. When confronted with the durian
for the first time, the WallStreetJournalrecently reported that westerners often describe
its distinctive sulphurous smell with words like stinky sock sand manure. However, the
durian is so popular in Thailand that one variety of the durian fruit, called the Kan Yao,
has been selling for as high as $200. Even at that price, supply of the Kan Yao cannot
keep up with demand. There are approximately 30 varieties of the durian grown in
Thailand, with the most plentiful selling in the $15 range. The yellow flesh of the
durian, the part you eat, has very powerful smell but possesses a sweet, nutty taste that
Thais cannot seem to get enough of at any price.
Refer to Smelly Fruit. At $200 per Kan Yao, demand for the fruit appears to be higher
than supply. Suppose that at a price of $225, the amount demanded exactly meets the
amount farmers are willing and able to supply. In this case, the $225 price would be
considered the _____price.
a. price equilibrium
b. sales maximization
c. profit maximization
d. ROI maximization
e. yield management
Answer:
An Alabama-based catalog retailer sells fireplace equipment such as screens and
andirons. Its customers in New England are charged one shipping rate, and customers
west of the Rocky Mountains are charged a different rate. Customers in the midwestern
states are charged yet another rate. What kind of geographic pricing is the catalog
retailer using?
a. FOB origin pricing
b. FOB factory
c. Zone pricing
d. Freight absorption pricing
e. Uniform delivered pricing
Answer:
Fujifilm Computer Products has improved the efficiency and productivity of its plant,
which manufactures printing technology. For the new fiscal year, the company projects
a production increase of 25 percent. It has instructed its sales force to aggressively
distribute and promote its printers. The CEO is sure the market will absorb more
product if the sales force is determined and assertive. Fujifilm appears to have a
orientation.
a. market
b. production
c. sales
d. customer
e. marketplace
Answer:
Allstate Insurance says "You"re in good hands with Allstate," and Prudential Life
Insurance shows a rock in its commercials because it wants to convey stability. These
companies are using what type of promotion strategy?
a. Stressing tangible cues
b. Stressing homogeneity
c. Using personal information sources
d. Providing packaging cues
e. Communicating service integration signals
Answer:
AdvancedBionics
Advanced Bionics is a global leader in the development of implantable, high-tech
neurostimulation devices used to treat deafness and chronic pain. Just two-and-a- half
years after introducing its new stimulators, the firm is doing
$200 million in domestic sales. How has Advanced Bionics been so successful? Its
success can be attributed to its outstanding products and to three aspects of its sales
approach. First, Advanced Bionics hired the right talent for its sales force. Companies
tend to use experienced sales repsoften hired away from competing companiesto sell
new medical devices. This can be very expensive since experienced reps generally
expect as much as $200,000 in annual income. So when Advanced Bionics brought its
medical device to market, it hired people with no experience selling medical devices
and turned them into sales reps. Hiring inexperienced salespeople created some
problems, however, and the company experienced high turnover rates during its first
two years in operation. Second, Advanced Bionics provided salespeople with a rigorous
training program. Third, Advanced Bionics allowed salespeople to plan their own
activities while managers monitored their progress and pushed them to improve. In
short, the company has been able to succeed by selecting good people, training them
well, and managing them carefully.
Refer to Advanced Bionics. One of the keys to Advanced Bionics' success has been
finding and hiring the right talent for sales positions. Finding and hiring new
salespeople is known as ___ .
a. sales force motivation
b. sales force evaluation
c. sales force personnel management
d. sales force recruiting
e. sales force qualification
Answer:
Which of the following services is an example of information processing?
a. Drafting a will
b. Having a prescription filled
c. Getting a down comforter dry cleaned
d. Taking a class at the local community college
e. Ordering a pizza for delivery
Answer:
Sony wants to build long-lasting relationships by focusing on what satisfies and retains
their customers. For example, Sony's PlayStation Web site is designed to create a
community of users who can join PlayStation Underground where they will "feel like
they belong to a subculture of intense gamers." Sony evidently:
a. is sales oriented.
b. has a standardization focus.
c. is ethnocentric.
d. has a customer-centric focus.
e. is product oriented.
Answer:
Which of the following statements about the characteristics of the elements in the
promotional mix is true?
a. The speed of feedback is delayed in sales promotion, advertising, and personal
selling.
b. Message flexibility is greatest with advertising.
c. The message flow is two-way in public relations, sales promotions, and personal
selling.
d. Important promotional ingredients tend to receive the most funding.
e. The sponsor is identified in public relations, advertising, and personal selling.
Answer:
David and Steven are best friends. Steven loves to compete in triathlons. David would
love to compete with Steven but is a weak swimmer. David decides to take swim
lessons to improve his breathing and stroke rhythms. Triathletes are a(n) reference
group for David.
a. secondary
b. primary
c. aspirational
d. nonaspirational
e. direct
Answer:
The National Pork Board wants to create more consumer demand for pork products.
The board has developed a(n) ____ that sets out how it will use all of the elements of
the promotional mix to create a coordinated plan that will become an integral part of the
organization's marketing strategy.
a. promotional strategy
b. tactic for communication
c. mass aggregation strategy
d. communication objective
e. informative strategy
Answer:
The Swine Palace Theater runs ads in the entertainment section of the local newspaper
every first weekend of each month. This is a _____scheduling plan.
a. flighted
b. continuous
c. bursting
d. seasonal
e. replication
Answer:
When Proctor & Gamble removed potentially dangerous dyes and chemicals from its
Tide detergent product and introduced Tide Free, the company was making a(n):
a. product line contraction
b. quality modification
c. aesthetics modification
d. obsolescence factor
e. functional modification
Answer:
FederalAviationAdministration
The Federal Aviation Administration (FAA) has been struggling for several years with
antiquated systems, and all it takes is a single failure on one piece of the system to shut
down the entire air-traffic control system for several hours, resulting in significant
snarls at major airports. The most recent failure occurred in the FAA's core
telecommunications network, called the Federal Telecommunications Infrastructure
(FTI), which is managed by Harris Corporation. Marc Raimondi, a spokesperson for
Harris, said, "The FTI system has proven to be one of the most reliable and secure
communications networks operating within the civilian government." Snafus like this
have been happening with alarming frequency, prompting Congress to demand the FAA
and its contractors to do more to prevent these malfunctions. The problem is that the
FAA has been using a patchwork approach by updating old systems with modern
hardware and software instead of ordering a complete overhaul of the system. The
FAA's next generation of modernization will rely on satellite-based networks instead of
phone lines and data cables. The FAA is waiting for White House approval on whether
it will have the funds to take this next step.
Refer to Federal Aviation Administration. Ultimately, the FAA must get authority from
the President to spend the billions of dollars necessary to upgrade the system because
Congress must authorize the funds and the President must approve that authorization. In
terms of the buying center, the President is the:
a. initiator.
b. gatekeeper.
c. purchaser.
d. decider.
e. user.
Answer:
Two effective pricing tactics that can be used to hold or build market share during a
recession are:
a. flexible pricing and price shading.
b. price shading and price lining.
c. unbundling and price shading.
d. value-based pricing and bundling.
e. price lining and escalator pricing.
Answer:
Highly integrated channel relationships are loosely bonded relationships characterized
by informal arrangements that explicitly define the relationships of the channel
members.
a. True
b. False
Answer:
Pure Digital Technologies created the Flip, a digital camera priced around $150. It filled
a gap between expensive digital cameras and webcams. The Flip plugs straight into a
computer, and the video can easily be viewed and shared instantly. Creating a new
product for a new market is called _____ .
a. divestment
b. segment development
c. target marketing
d. diversification
e. directed growth
Answer:
The manufacturer of Meridian yam products spent $25,000 to create an ad that ran in
the Thanksgiving issue of a popular cooking magazine. Because it was the originator of
the communication process, Meridian acted as a:
a. channel.
b. noise filter.
c. receiver.
d. decoder.
e. sender.
Answer:
Claas is Europe's largest manufacturer of combine harvesters. As farming becomes
more professional and more intensive, farmers are buying more sophisticated machines,
which Claas can supply. The expensive machines sold by Claas would be examples of:
a. Installations.
b. component parts.
c. accessory equipment.
d. processed materials.
e. minor equipment.
Answer:
Which of the following is becoming increasingly more important in business marketing
strategies?
a. Customer service
b. Price collusion
c. Ethnocentrism
d. The divider effect
e. Competitive advertising
Answer:
Campbell's
Most people recognize Campbell's as a brand of soup, but Campbell's also
manufactures Pace Picante Sauce, Pepperidge Farms products, Prego Sauce, Swanson
Broth, and V8 juice. Campbell's International division offers more than 20 brands of
soups, sauces, beverages, and baked snacks in the Asia Pacific region, Greater Europe
and Latin America. Products such as Arnott's biscuits and crackers and Bi Band soups
are well known overseas. Campbell's products are sold in more than 120 countries.
Refer to Campbell's. The soups, juices, broths, sauces, and baked goods sold by
Campbell's compose the company's product mix .
a. depth
b. length
c. width
d. reliability
e. consistency
Answer:
Jewelry stores want to provide their customers with the highest quality of diamonds
available at the lowest possible prices. Unfortunately, the lowest priced diamonds these
days are sold by African rebels who use the profits to engage in genocide. Human rights
organization have asked jewelers to buy diamonds that are "conflict free"""that is, from
South Africa, Australia, or Canada. LeeBrant is one retail jewelry store that sells only
diamonds that are certified to be from these countries. LeeBrant is exhibiting which
marketing management orientation?
a. Production
b. Sales
c. Societal marketing
d. Direct
e. Omnipotent
Answer:
WhirlpoolandLowe's
Every week, Whirlpool and Lowe's have an online conference call to discuss what
appliances are selling in the stores and what capacity Whirlpool has to make product.
Often, the discussion revolves around a particular model that is selling at a higher than
expected rate in Lowe's. This often results in Whirlpool quickly flexing its supply chain
to make more of the highselling product and delivering it to Lowe's customers.
However, sometimes the answer is that Whirlpool and/or its suppliers do not have the
capacity to make more of the product in question. It then becomes a question of demand
shaping for Lowe's. What promotions, instore displays, and sales incentives can Lowe's
implement to shift demand from the capacityconstrained model to one that the supply
chain has more capacity to deliver? In this way, Lowe's, Whirlpool, and their suppliers
manage supply and also demand.
Refer to Whirlpool and Lowe's. Whirlpool contracts with another firm to manage its
order fulfillment process with Lowe's. This contracted firm is referred to as a(n):
a. third-party logistics firm (3PL)
b. drop shipper
c. mediator
d. independent agent
e. interloper
Answer:
A service cannot be touched, seen, tasted, heard, or felt in the same manner in which
goods can be sensed and, therefore, ____ is referred to as being:
a. impervious.
b. extraneous.
c. synergistic.
d. perishable.
e. intangible.
Answer:
Which type of consumer product requires comparison shopping because it is usually
more expensive than a convenience product and is found in fewer stores?
a. An unsought product
b. A secondary product
c. A unique product
d. A shopping product
e. A selective product
Answer:
When Irvin went into Lowe's to buy his wife a small tool set she said she wanted, the
sales clerk suggested a larger set with a tool kit on wheels that included a router and
circular saw. In this example, the sales clerk engaged in:
a. trading up.
b. suggestion selling.
c. bait and switch.
d. customer relationship retailing.
e. service-disguised selling.
Answer:
To get more retailers to stock its products, Rust-Oleum paint developed a strong
advertising campaign aimed at consumers. The ads show creative ways to use paint to
make homes more attractive and emphasize that the paint doesn"t chip, peel, or fade.
RustOleum is using a ____ promotional strategy.
a. push
b. channel
c. reinforcement
d. pull
e. kinetic
Answer:
In contrast to marketing research problems, management decision problems are:
a. action oriented.
b. pervasive.
c. narrower in scope.
d. synergistic.
e. information oriented.
Answer:
Redbox
Movie DVD sales represent a $16 billion market, and rentals make up another $7.5
billion. Naturally, production studios would prefer consumers purchase DVDs rather
than rent them. Production studios like Twentieth-Century Fox, Warner Bros., and
General Electric refused to sell new releases to Redbox, a DVD vending machine
company, until almost a month after new releases arrived in stores. Redbox, the
ubiquitous DVD rental red kiosks found in and outside of convenience stores, grocery
stores, drugstores, fast-food restaurants, and Walmart, is cutting in on production
companies' profits. These studios are tangled in lawsuits with Redbox. Sony,
Paramount, and Lionsgate, on the other hand, permit distribution through Redbox, and
Disney allows third-party distribution to Redbox. With more than 20,000 kiosks now in
operation, Redbox ranks fifth in DVD rental revenues, which is impressive considering
the rental fee is only $1.00. But Blockbuster is trying to steal vending market share by
allowing NCR Corporation, known for ATM machines, to license its name to place
Blockbuster Express kiosks in similar types of locations.
Refer to Redbox. Warner Bros., Blockbuster, Redbox, Walmart, and third-party DVD
distributors are part of a:
a. distribution cooperative
b. marketing mix
c. transportation channel
d. marketing channel
e. logistics system
Answer:
The role of gatekeeper may be filled by a secretary.
a. True
b. False
Answer:
Research has shown that products perceived to be of high quality tend to benefit less
from price promotions than products perceived to be of lower quality.
a. True
b. False
Answer:
LVMH, a maker of luxury goods, has expanded its products offerings into China,
Russia, India, and the MiddleEast. This exemplifies a strategy.
a. market development
b. product development
c. market penetration
d. diversification
e. product expansion
Answer:
Market segmentation can assist marketers to do all of the following EXCEPT:
a. develop more precise definitions of customer needs and wants
b. identify which variable base should be used for segmenting
c. more accurately define marketing objectives
d. improve resource allocation
e. evaluate performance
Answer:
What is business marketing, and what distinguishes business products from consumer
products?
Answer:
Identify five reasons for the recent popularity of mobile marketing.
Answer:
How might a marketer use Twitter to promote a brand? How might a celebrity use
Twitter to promote him- or herself? What other types of applications can Twitter can be
used for?
Answer:
While managers can control the marketing mix, they cannot control the elements in the
external environment that continually mold and reshape the target market. List six
variables of the external environment that are not directly under the control of
marketing managers.
Answer:
What is the first task of developing a retail strategy? What is involved in this task?
Answer:
Consumer sales promotion seeks to reach new users, keep current users, and entice
users to stock up. It can also be used to reinforce advertising for the good or service.
Name and define five consumer sales promotional tools.
Answer:
Retailing opportunities can take place without customers shopping at a store. Name and
briefly discuss four forms of non-store retailing.
Answer:
Discuss the four main areas of importance in service distribution.
Answer:
What is a competitive advantage? What makes a competitive advantage sustainable?
Answer:
What type of geographic pricing policy would a marketing manager most appropriately
choose for the following products: (1) nationally advertised bubble gum, (2) rebuilt
engines for jet airplanes, and (3) bulk amounts of a rare spice harvested from a single
mountain in Canada and used in high-priced restaurants. Justify your answers, and
specify any assumptions you used to arrive at your answer.
Answer:
Explain the four concepts of business demand.
Answer:
Define and describe exporting. Briefly describe the three types of export intermediaries.
Answer:
What is the difference between culture and subculture? Why do marketing managers
need to understand culture and subculture?
Answer:
List in order the seven steps of the marketing research process.
Answer:
Define each level of Maslow's hierarchy of needs. For each of the five levels, briefly
describe a marketing message appealing to the need level.
Answer:
Name and describe the six categories of new products.
Answer:
Briefly explain what apps are and describe how a business can use them from a
marketing perspective.
Answer:
The marketing mix refers to a unique blend of marketing variables known as the four
Ps. Name and briefly describe each of the 4 Ps.
Answer:
List the seven steps of the new-product development process.
Answer:
