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Local publics include consumer organizations, environmental groups, minority groups,
and others.
At the narrowest level, a company can define its competitors as other companies
offering similar products and services to the same customers at similar prices.
Postpurchase behavior is the stage of the buyer decision process in which consumers
take further action after purchase, based on their satisfaction or dissatisfaction.
Price decisions must be coordinated with product design, distribution, and promotion
decisions to form a consistent and effective integrated marketing mix program.
Profits drop during the growth stage of the PLC because per customer promotion costs
are high.
Demographic segmentation divides buyers into segments based on their knowledge,
attitudes, uses, or responses concerning a product.
In an endorsement style of execution, the endorsers can be ordinary people saying how
much they like a given product.
Concept testing works best with people who are familiar with the new idea and the new
product's purpose. This generally includes top management, the sales force, and
research and development.
If Audi develops a new low-priced model for entry-level consumers in Europe, it would
be an example of straight product extension.
Sellers cannot influence or use consumers' reference prices when setting prices.
In a product sales force structure, no single salesperson can become an expert in all of
the product categories, so product specialization is required.
Firms that practice product differentiation gain competitive advantage through the way
they design their channel's coverage, expertise, and performance.
Which of the following is a drawback of local marketing?
A) Local marketing increases manufacturing costs by reducing the economies of scale.
B) Local marketing requires specialization that is difficult to identify.
C) Local marketing is not profitable for most small firms.
D) Local marketing cannot accommodate the needs of modern buyers who are
technology savvy.
E) Local marketing almost always results in brand dilution.
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."
What did Selman & Saks hope to gain by entering the French market?
A) access to new consumer markets
B) access to less expensive labor
C) access to less expensive materials
D) access to foreign investment incentives
E) the ability to offset domestic economic cycles
Carrie tends to purchase various brands of bath soap. She has never been loyal to a
specific brand; instead she does a lot of brand switching. Carrie exhibits ________.
A) dissonance-reducing buying behavior
B) complex buying behavior
C) habitual buying behavior
D) variety-seeking buying behavior
E) conspicuous consumption behavior
Price elasticity of demand is represented by ________ divided by ________.
A) percentage change in quantity demanded; percent change in price
B) percentage change in units supplied; percentage change in price
C) percentage change in price; percentage change in quantity demanded
D) fixed costs; variable costs
E) cost-plus price; actual cost of production
________ segments are conceptually distinguishable and respond differently to
different marketing mix elements and programs.
A) Complex
B) Measurable
C) Competitive
D) Differentiable
E) Homogeneous
Rhodia invites tourists from all over the world to experience its pristine nature, clear
skies, and beautiful summertime climate. This exemplifies ________.
A) corporate image marketing
B) social marketing
C) place marketing
D) social engineering
E) negative brand equity
The marketing logic by which a company hopes to create customer value and achieve
profitable customer relationships is referred to as the ________.
A) price
B) marketing implementation
C) value chain
D) marketing strategy
E) downsizing
If a company's aim is to make its own and competing products obsolete and serve
customers who want state-of-the-art products and services, it is using a value discipline
called ________.
A) overall cost leadership
B) product activation
C) product binning
D) product leadership
E) customer intimacy
Dell produces and delivers PCs of competitive quality at lower costs. The company
constantly aims to achieve low production and distribution costs to win a large market
share. Dell utilizes a(n) ________ strategy very effectively.
A) overall cost leadership
B) differentiation
C) focus
D) blue ocean
E) market segmentation
Donna wants to buy a new coat. During the ________ stage of the buyer decision
process she will ask her friends to recommend stores that sell good quality winterwear
clothing. She will also go through newspapers and magazines to look out for offers and
sales on coats.
A) product evaluation
B) alternative evaluation
C) need recognition
D) information search
E) purchase decision
Selleverything.com is a Web site that allows individuals to sell or auction products.
Users can bid for items, which are then delivered to the highest bidder's address by
Selleverything.com, which receives a small commission. Which of the following major
online marketing domains is evident from this scenario?
A) B-to-B
B) B-to-G
C) C-to-B
D) G-to-B
E) C-to-C
Segmented pricing is only effective when ________.
A) the segments show similar degrees of demand
B) the cost of segmenting does not exceed the revenue obtained from the price
difference
C) the segmented prices do not reflect real differences in customers' perceived value
D) the customers of different socio-economic classes are treated according to their rank
E) companies make their services and products accessible exclusively to wealthy
patrons
All of the following steps pertain to the marketing control process EXCEPT ________.
A) setting goals
B) measuring performance
C) taking corrective action
D) defining the company's mission
E) evaluating the causes of gaps between expected and actual performance
According to a customer, a Harley-Davidson motorcycle can make one feel like "the
toughest, macho guy on the block." Harley-Davidson promotes its motorcycles with
images of independence, freedom, and power. Harley-Davidson has created a(n)
________.
A) motive
B) life-cycle stage
C) self-concept
D) brand personality
E) self-actualization need
Maybelline used Sarah Michelle Gellar, an actress, to endorse a new range of
cosmetics. This message execution style is referred to as ________.
A) lifestyle
B) testimonial evidence
C) image
D) technical expertise
E) personality symbol
Seth Hoffman's chain of travel agencies has identified the lesbian, gay, bisexual, and
transgender community as a growing market that spends an increasing percentage of its
income on travel. Which of the following would be the LEAST effective component of
a marketing plan for Seth to take advantage of this opportunity?
A) develop a presence on LGBT-oriented social networking sites
B) position his agency as focused on specialized experiences
C) implement a mass marketing campaign
D) place specially-targeted ads in gay-themed publications
E) advertise on LOGO, the cable television network aimed at gays and lesbians and
their friends and family
How can service providers use a differentiated offer, delivery, and image to avoid
competing solely on price?
How do marketers measure return on marketing investment? Why is this figure difficult
to assess?
How can a company benefit through a just-in-time logistics system?
What is the purpose of content sponsorship?
What are the major characteristics of government markets?
What are point-of-purchase (POP) promotions?
