Constantly reduced prices can erode a brand’s value in the eyes of customers.
The four marketing management functions are analysis, planning, implementation, and
control.
If demand changes greatly with price, the demand is inelastic.
Personal selling involves interpersonal interactions between salespeople and individual
customers.
Department stores carry narrow product lines with deep assortments within those lines.
The augmented product is the actual product plus the various services and benefits
offered with it, such as a warranty, free delivery, installation, and maintenance.
The business marketer normally deals with far fewer but far larger buyers than the
consumer marketer does.
The market leader normally gains the most when ________.
A) its total market diminishes
B) it achieves expanded market share
C) its personal communication channels expand
D) the niche marketing efforts by other firms expand
E) the major global competitors enter the market
A cell phone manufacturing firm produced 1,000 cell phones a day but believed that it
could reasonably step up production to 2,000 cell phones a day. Consequently, it built a
larger plant and installed efficient machineries and work arrangements to realize the
projected output. Which of the following can most likely be inferred from this
information?
A) The unit cost of producing 2,000 cell phones per day would be twice that of the unit
cost of producing 1,000 units per day.
B) A production plant with the capacity of producing 5,000 cell phones a day would be
most efficient.
C) The unit cost of producing 2,000 cell phones per day would be lower than the unit
cost of producing 1,000 units per day.
D) A 2,000-capacity production plant would be less efficient because of increasing
diseconomies of scale.
E) The fixed costs of the firm are more likely to increase with the increase in output.
The decision process by which business buyers determine which products and services
their organizations need to purchase and then find, evaluate, and choose among
alternative suppliers and brands is known as ________.
A) situational analysis
B) business buying process
C) business diversification
D) business process automation
E) lateral expansion
Effective positioning begins with ________.
A) pricing
B) diversification
C) differentiation
D) promotion
E) segmentation
Which of the following statements about break-even analysis is true?
A) It is used to determine how much production experience a company must have in
order to achieve desired efficiencies.
B) It is a technique used to calculate fixed costs.
C) It determines the amount of retained earnings a company will have during a given
accounting period.
D) It is a technique marketers use to determine the relationship between supply and
demand.
E) It is calculated by using variable costs, the unit price, and fixed costs.
The AIDA model identifies the characteristics of an effective ________.
A) advertising budget
B) channel of communication
C) marketing message
D) marketing mix
E) marketing response
Explain how the United States Postal Service has “competitor myopia.”
A(n) ________ system involves a single firm setting up two or more marketing
channels to reach one or more customer segments.
A) conventional distribution
B) corporate vertical marketing
C) horizontal marketing
D) administered vertical marketing
E) multichannel distribution
________ pricing refers to offering just the right combination of quality and gratifying
service at a fair price.
A) Markup
B) Good-value
C) Cost-plus
D) Target profit
E) Break-even
________ refers to the sales step in which a salesperson asks the customer for an order.
A) Prospecting
B) Demonstration
C) Approach
D) Closing
E) Handling objections
Which of the following is one of the primary goals of reminder advertising?
A) maintain customer relationships
B) build brand preference
C) correct false impressions
D) inform the market of a price change
E) restore company image
Rachel loves fashion and is always seen wearing the trendiest fashion outfits. She
actively shares her knowledge with a wide group of friends and colleagues about where
to shop for the latest fashion at great deals. Most of her friends and colleagues follow
her fashion tips. Rachel portrays the image of a(n) ________.
A) surrogate consumer
B) laggard
C) opinion leader
D) brand personality
E) social networker
Which of the following is true with regard to mail questionnaires?
A) The response rate of mail questionnaires is often very low.
B) Mail questionnaires are highly flexible.
C) The researcher has maximum control over the mail questionnaire sample.
D) Mail questionnaires are unsuitable for collecting large amounts of information about
respondents.
E) Respondents always provide honest answers to personal questions on mail
questionnaires.
Product placement in television programs and movies is an example of ________.
A) branded entertainment
B) advertainment
C) direct marketing
D) buzz marketing
E) sales promotion
Why is markup pricing most likely popular?
A) Sellers are more certain about demand than about costs.
B) Markup pricing tends to maximize market competition.
C) Markup pricing affords buyers greater bargaining power.
D) Sellers do not need to make frequent adjustments as demand changes.
E) Markup pricing is designed to set prices to break even on the costs of making and
marketing a product.
Companies using target costing ________.
A) first design a new product and then determine its cost
B) tailor their products to be in line with the marketing mix
C) routinely neglect customer value considerations
D) avoid determining an ideal selling price until analyzing test market results
E) start with an ideal selling price and then target costs that will ensure that the price is
met
Dips in the economy and the instant price comparisons made possible by the Internet
have contributed to ________.
A) decreased consumer price sensitivity
B) increased consumer price sensitivity
C) a less direct relationship between supply and demand
D) low brand equity for luxury goods
E) decreased brand loyalty
Briefly explain why marketers need marketing research in addition to competitive
marketing intelligence.
How do suppliers help companies like Walmart maintain consistently low prices?
Explain the goal of viral marketing.
Why do international markets need to be segmented?
Describe the four major steps in media selection.