Professional athletes such as Peyton Manning and Maria Sharapova are featured in
advertisements for Gatorade. According to this information, Gatorade is utilizing
branded entertainment.
A company that makes marketing decisions by considering consumers’ wants and
long-run interests, the company’s requirements, and society’s long-run interest is said to
be practicing consumer-oriented marketing.
Supermarkets sell a limited selection of goods at deep discounts to consumers who pay
membership fees.
One of the traditional buyer’s rights is the right not to buy a product that is offered for
sale.
Multibranding offers a way to establish different features that appeal to different
customer segments, lock up more reseller shelf space, and capture a larger market share.
Using a push strategy, the producer directs its marketing activities (primarily
advertising and consumer promotion) toward final consumers to induce them to buy the
product.
In consumer-to-business (C-to-B) online marketing, consumers can search out sellers
online, learn about their offers, initiate purchases, and give feedback.
Brand name products give buyers assurances of consistent quality.
A seller offers a ________ to trade-channel members who perform certain functions,
such as selling, storing, and record keeping.
A) functional discount
B) storage allowance
C) cash discount
D) promotional allowance
E) quantity discount
According to the five-step model of the marketing process, which of the following is
the final step in creating value for customers?
A) designing a customer-driven marketing strategy
B) understanding the marketplace and customer needs
C) constructing an integrated marketing program that delivers superior value
D) building profitable relationships and creating customer delight
E) capturing value from customers to create profit and customer equity
If demand hardly changes with a small change in price, the demand is ________.
A) variable
B) inelastic
C) highly elastic
D) derived
E) negative
According to the service profit chain, superior internal service quality results in
________.
A) lesser service value
B) increased word-of-mouth sales
C) reduced after-sale services
D) more satisfied, loyal, and hardworking employees
E) negative brand equity of newly launched products
An ad for Maybelline age-minimizing makeup in Ladies’ Home Journal magazine
featured actress Melina Kanakaredes and offered readers a $1-off coupon when they
tried the new makeup. In terms of the communication model, the sender of this message
is ________.
A) Melina Kanakaredes
B) Ladies’ Home Journal
C) readers who redeem the $1-off coupon
D) Maybelline
E) the target market to whom Melina Kanakaredes appeals
The portion of the customer’s purchasing that a company gets in its product categories
is known as ________.
A) customer-perceived value
B) share of customer
C) customer insight
D) consumption function
E) induced consumption
Which of the following is NOT part of the business market?
A) Kruger Group sells interior security systems to resorts.
B) A country club buys safety equipment for its swimming pool.
C) Sue shops for her family’s groceries at the local Whole Foods store.
D) A firm buys laptops from Dell for company salespeople to use when traveling.
E) Airmark sells a vinyl printing press to a manufacturer of plastic storage containers.
The research plan ________.
A) provides comprehensive marketing intelligence about competitors
B) outlines sources of existing data and spells out the specific research approaches
C) does not include sampling plans
D) does not include contact methods
E) precedes the definition of research objectives
An ad for Athleta active wear shows a woman in a complex yoga pose and states: “If
your body is your temple, build it one piece at a time.” This ad uses the ________
execution style.
A) slice-of-life
B) lifestyle
C) fantasy
D) scientific evidence
E) personality symbol
Which of the following exemplifies a service?
A) candy
B) laptop
C) retail
D) car
E) laundry detergent
Herb Marks was making wooden pens and pencils, which had unique engravings, as a
hobby until Mel Yoder recognized Herb’s talent. Mel immediately ordered 250 pens and
pencils of various styles to be displayed in his shop’s showcase. Within three months,
the wooden pencils were a hit with all school goers! Herb Marks had never thought of
marketing his talent, but Mel’s enthusiasm and the recent sales were enough to change
his mind.
With limited resources, Herb contacted three additional specialty shops within 100
miles which were situated near schools. He explained his manufacturing processes and
engraving options to each. All three shop owners placed a trial order. Within two
months, just prior to the holiday season, each shop owner placed an additional order.
Herb was ecstatic!
“I figured business would slow down after that,” Herb stated, “but in February I was
contacted by Elmore Distributors. At that point, I had to make a huge decision about
how far I wanted to go with this business.”
Elmore Distributors provides products for school fundraisers in a seven-state area. Herb
was offered a two-year contract and immediate inclusion in Elmore’s promotional flyer.
Herb Marks accepted the offer and, along with it, the responsibility to produce
thousands of wooden pens and pencils.
“I had to get a grip on the magnitude of this project,” Herb added.
Herb decided to place his major focus on the large contract with Elmore. However, to
avoid placing his total emphasis with one customer, Herb continued nurturing his four
previously established accounts without targeting any additional customers.
“At this point, I had set up an assembly line in a rented building,” Herb explained. “I
had to hire three full-time employees to work the line while I managed the customer
orders and purchased materials.” Herb paused. “But I can’t take the Elmore project for
granted. It might not always be there. I’ll have to have a good alternate plan if that day
comes.”
If Herb interacted one-to-one with his customers to design his products and services
according to individual needs, he would be practicing ________.
A) concentrated marketing
B) trigger-based marketing
C) undifferentiated marketing
D) mass customization
E) segmented marketing
________ segmentation refers to dividing the market into segments according to
occasions when buyers get the idea to buy, actually make their purchase, or use the
purchased item.
A) Gender
B) Psychographic
C) Occasion
D) Geographic
E) Income
The ________, established in 1947 and modified in 1994, was designed to promote
world trade by reducing tariffs and other international trade barriers.
A) OPEC
B) GATT
C) EU
D) ASEAN
E) NAFTA
Which of the following are market challenger strategies?
A) expand total market and protect market share
B) expand market share and follow closely
C) full frontal attack and indirect attack
D) follow closely and follow at a distance
E) multiple niching and quality service
In which of the following situations has a company most actively embraced
customer-managed relationships?
A) American Airlines awards frequent flyer points to returning customers.
B) Paige Premium Denim jeans provide a superior quality and a perfect fit.
C) iRobot invites enthusiastic Roomba owners to develop and share their own uses for
the company’s robotic vacuum cleaner.
D) Best Buy distinguishes between its best customers and its less profitable customers,
stocking merchandise to appeal to each group.
E) Toyota develops a marketing presence on social networks and other online
communities.
Explain the four major steps in designing a customer-driven marketing strategy.
What research would be the most useful to determine if a 20-percent decrease in price
for a high-end sedan would result in an increase in purchases sufficient to offset the
reduced price? Why?
Briefly describe competitive advantage.
What determines whether sellers pursue basic relationships or full partnerships with
customers?
How do marketers respond to charges of “commercial noise”?
Explain the role of marketers in the information search step of the buyer decision
process. Give an example of how the marketer might execute this role.