A strong brand that suspends advertising for several months will find that the majority
of consumers quickly lose memory of the brand.
A company that wants to market its new clothing line to running enthusiasts is a
co-sponsor of a popular marathon. The company is hoping to connect with customers
based on their life stage.
Other departments within a business are internal marketing stakeholders.
Currently there is no standard tool to copy test advertisements on the the wide range of
new media platforms.
The marketing department within an organization relies entirely upon internal resources
to develop the information needed to make marketing decisions.
Decisions made in each of the 4 Ps influence the other elements of the marketing mix.
According to management guru Peter Drucker, the two basic functions of a business are
advertising and sales.
A powerful brand is more price elastic than a weak brand in the same product category.
Scanner data collected during a one-day 20% off sale at a department store would be
used to develop baseline data in a marketing-mix model.
A discount store buys at less-than-regular wholesale prices and charges consumers less
than retail.
The sales forecast given in the sample marketing plan in your text is based on a slower
growth than last year’s growth rate. This implies that sales forecasts should be realistic.
ROMI models are developed over limited time periods, usually less than 18 months.
Though the economies of the BRIC countries are significant, even combined they are
unlikely to overtake the size and importance of the U.S. economy.
In general, approximately 30% to 50% of the final selling price of a product can be
attributed to distribution costs.
Services produced by the private sector account for more than half of the U.S. gross
domestic product.
Indirect exporting is a market entry strategy with low costs but higher risks.
Two products with identical purchase prices may have very different product costs.
Consumer markets are, by definition, very large.
Style makes products more attractive and easier to use.
The microenvironment and the macroenvironment are both part of a company’s external
environment.
The values of currencies on the global capital market are constantly changing.
Results from a nonprobability sample can be used to describe the characteristics of the
sample and of the population.
A value map can be used to track the perceived values of competitors’ products.
An industrializing economy is characterized by increasing raw material exports and
decreasing raw material imports.
An integrated marketing campaign that uses different media should have consistent
messaging.
Value Meal Deals at a fast food restaurant in which you get a sandwich, fries, and a
drink for one price are an example of price bundling.
Variable costs for producing textbooks do not include the price of paper.
A consumer product may be intended for individual or business use.
In the marketing communication process, competing advertising messages create noise.
Durable goods are products that are expected to last for three or more years.
According to Kotler, the 4 Ps concept takes the seller’s view of the market.
One sign of the increasing level of competition in today’s marketplace is the increasing
failure rates of both start-up and long-standing businesses.
Larissa is working on her company’s marketing plan and wants to include information
about difficulties her company may face from a strong competitor. Larissa should
include this information under “Weaknesses” in a SWOT analysis.
Typically, advertising and other marketing activities do not have a cumulative effect on
consumer attitudes toward a brand.
A marketing channel can also be referred to as a channel of distribution.
Each consumer interaction with a company provides data that the company can use to
develop consumer insights.
Consumers should trust that product information found on blogs and social networking
sites will be reliable.
Most businesses that operate globally tend to gravitate toward countries that are similar
in language and commercial practices to their home country.
Which type of market coverage strategy requires a company to have the most detailed
understanding of its target market?
A. mass marketing
B. behavioral targeting
C. niche marketing
D. undifferentiated marketing
E. multisegment marketing
A marketer using information for a company’s database of customer information such as
previous inquiries, transactions, and servers is using a(n) ________.
A. house file
B. PURL
C. ROI
D. outside list
E. inside sale
Copy testing is often referred to as a ________.
A. hurdle rate
B. report card
C. balance card
D. brand model
E. communication objective
Which of the following would be listed under a company’s strengths in a SWOT
analysis?
A. Creating a presence on social networks could broaden product awareness and
interest.
B. Changing economic factors favor the company’s position in the market.
C. The company maintains efficient and cost-effective relationships with channel
partners.
D. Changing technological factors will force the company and its competitors to alter
many products.
E. Changes in media consumption among target consumers will make advertising less
expensive.
Which of the following elements of a questionnaire is designed to apply any restrictions
that exist on the desired respondents for the survey?
A. introduction
B. screening
C. warm-up
D. body
E. classification
A company that uses a CRM system needs to take special precautions to protect which
of the following?
A. customer perceptions
B. customer value
C. customer satisfaction
D. customer retention
E. customer privacy
A marketer of exclusive products would be most likely to use ________ marketing.
A. mass
B. undifferentiated
C. differentiated
D. niche
E. universal
Which of the following is a comprehensive review and assessment of a company’s
marketing environment?
A. a marketing plan
B. a marketing audit
C. a marketing mix analysis
D. a portfolio analysis
E. a balanced scorecard
Through ________ used to train salespeople, all members of the sales force hear the
company message at the same time and are motivated by the energy of the meeting.
A. sales meetings
B. webinars
C. on-demand training videos
D. Web-based knowledge centers
E. podcasts
Which of the following is the term for resellers, brokers, and facilitators that improve
the effectiveness of a marketing channel?
A. third-party logistics providers
B. channel leaders
C. channel intermediaries
D. logistics managers
E. consignees
Which of the following best explains how consumers make purchase decisions in
consumer markets?
A. by analyzing proposals
B. by qualifying potential sources
C. by assessing the utility of the offered product or service
D. by building relationships with suppliers
E. by searching for a consumer’s surplus
Mabel Lu is planning to buy a new washing machine. She notices that washing
machines are available in a wide range of prices, and she wants to make sure she gets
the most for her money. This product is a(n) ________ product.
A. convenience
B. unsought
C. specialty
D. shopping
E. augmented
A company’s customer service quality plays the greatest role in customer satisfaction
for ________.
A. defecting customers
B. neutral customers
C. a product involving short-term ownership
D. a product involving long-term ownership
E. unprofitable customers
Which of the following perspectives is NOT considered in the balanced scorecard?
A. customer
B. financial
C. innovation and learning
D. government
E. internal business
Which of the following should a company LEAST expect as a benefit resulting from
co-branding?
A. Product development and research costs are avoided.
B. Loyalty from each brand is extended to the co-branded product.
C. Shortcomings of one brand are compensated for by strengths of the other brand.
D. Promotion costs are split between partners.
E. New market opportunities are created.
________ measures how inexpensively a media vehicle is able to communicate with a
particular customer segment.
A. Media reach
B. Media impact
C. Media engagement
D. Media efficiency
E. Impression
Business legislation has been created for three basic reasons: to protect companies from
each other, to protect consumers, and to ________.
A. protect the interests of society
B. regulate prices
C. increase world trade
D. regulate monopolies
E. promote social responsibility
A(n) ________ is a good or service that consumers purchase frequently with little or no
advance planning.
A. specialty product
B. unsought product
C. shopping product
D. convenience product
E. generic product
________ is an increase in the price of a collection of goods that represent the overall
economy.
A. Income
B. Inflation
C. Deflation
D. Utility
E. Surplus
Which of the following is one of the additional Ps that Booms and Bitner added to the 4
Ps to create the 7 Ps classification?
A. packaging
B. price
C. people
D. practice
E. promise
Refer to the scenario below to answer the following questions.
Most people laughed when Evelyn Ringler explained her product idea: a solar-powered
vacuum cleaner. But the concept was practical and the technology used in the vacuum
was the same as that used in many children’s toys. After setting up a demonstration
booth in a mall in a Chicago suburb, Evelyn felt more assured than ever that her idea
would be a hit. Consumers seemed receptive and offered helpful pieces of advice, such
as how much they would pay for the vacuum, what colors they would prefer, and why
they would not buy the vacuum.
The vacuum itself was dome-shaped, something like a small saucer, with a filter bag on
top and sensory nodes along the edges. After being charged in the sunlight, the vacuum
could run for 10 hours, covering a floor area of 600 square feet. As the apparatus lightly
bumped into table legs, chairs, and so on, the sensory nodes allowed the vacuum to
move around the objects in various directions. This is the same type of technology used
in the manufacturing of children’s race cars and walking dolls.
Evelyn knew that the solar-powered vacuum would be especially helpful to both elderly
consumers, who may have a more difficult time with vacuuming, and on-the-go
consumers who lead busy lives. The price would be above average but would likely
drop after Evelyn recouped some of her costs.
After a 500-unit production run and a substantial financial investment, Evelyn Ringler
set up a test market in a Chicago mall and in an appliance store in New Jersey. “It’s such
a novel idea,” Evelyn added. “People will notice it, even if they don’t buy it right away.”
The financial savings in reduced electricity costs that customers of Ringler’s
solar-powered vacuum can expect to experience are part of the ________.
A. core benefit
B. augmented product
C. product image
D. context change
E. idea screening
Refer to the scenario below to answer the following questions.
Reliable Tool Company is a manufacturer of hubs and axles for the trailer and heavy
truck industry. Although Reliable Tool only has fifteen customers, the company is the
sole supplier of hub and axle components to those customers. Monthly sales at Reliable
Tool are approximately $1 million. “You might say we have all of our eggs in one
basket,” says owner Arthur Deetz. Therefore, it is critical that a competent sales force
nurture those few but large accounts. Ninety-five percent of Reliable Tool’s 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 essential.
How would a key accounts sales force organization benefit Reliable Tool?
A. It would increase the amount of travel required of each Reliable Tool salesperson.
B. It would enable Reliable Tool salespeople to build close relationships with clients.
C. It would help Reliable Tool salespeople become experts on the specific parts they
sell.
D. It would allow Reliable Tool management to better supervise and evaluate its
salespeople.
E. It would eliminate the need for inside salespeople at Reliable Tool.
FreshDirect, an online grocer with a customer-friendly Web site and a fleet of delivery
trucks, calls itself “the new way to shop for food” and emphasizes that it brings quality
foods “right to your door.” This is an example of a company differentiating itself
through the ________ element of the 4 Cs of the marketing mix.
A. customer value
B. cost
C. convenience
D. channel
E. communication
Ski Free, a manufacturer of skis and skiing accessories, offers several different types of
skis in its product portfolio marketed to different target groups of skiers. The skis vary
in terms of design, style, and price. In marketing the different types of skis, it is most
important for management to ________.
A. ensure that each ski has a distinct and separate target audience
B. ensure that each type of ski has a separate promotion plan that does not overlap with
the promotion plans of other skis in the portfolio
C. understand how each ski type contributes to portfolio performance
D. position each ski in comparison to other skis in the portfolio
E. ensure that the pricing for each type of ski is within a tight range accepted by the
majority of amateur skiers
Which of the following laws is most relevant to the marketing mix category of price?
A. the National Do Not Call Registry
B. the Consumer Products Safety Commission Act
C. the Nutrition Labeling and Education Act
D. the Sherman Antitrust Act
E. the Consumer Credit Protection Act
Into which quadrant of the BCG matrix does Fun-Spot fall?
A) star
B) question mark
C) profit center
D) target
E) dog
If demand is highly responsive to a change in price, we say the demand is ________.
A. variable
B. inelastic
C. value-based
D. elastic
E. fixed
Of the types of brand loyalty, which one leads to a higher relative price?
A. attitudinal
B. behavioral
C. purchase
D. category
E. consumption
NAFTA is a(n) ________.
A. South American economic community
B. common market for eastern and southern Africa
C. economic community that includes India, Brazil, and China
D. trade agreement that includes Canada, Mexico, and the United States
E. regulatory branch of the World Trade Organization
Refer to the passage below to answer the following questions.
Bryant and Aniyah Small are the owners of the Good Green Grocer, a small but
successful chain of natural food and health stores. Bryant and Aniyah’s business has
expanded as more and more consumers are interested in eating organic foods. What
started as one shop in Vermont has expanded to 15 stores in college towns throughout
Vermont, New Hampshire, Massachusetts, and Maine. Much to their delight, the Smalls
have found that many people are willing to pay a bit more for food that is organically
grown.
Bryant and Aniyah want the Good Green Grocer to be associated with environmental
responsibility, so they offer discounts to customers who bring their own reusable
shopping bags and take measures to reduce the company’s carbon footprint. They even
hold environmental workshops in their stores, with topics ranging from organic farming
and composting to at-home energy conservation.
Sunday ads for the Good Green Grocer run in area newspapers, with special
promotional prices offered for a list of the “Top Ten Take Homes” each week. Regular
customers of the Good Green Grocer know that the promotional items often run out of
stock by mid-week, so the store typically sees its heaviest traffic on Sunday and
Monday.
Some customers believe that the Good Green Grocer purposefully runs weekly
promotional prices on items that are low in stock, leaving most customers who come to
the store hoping for lower prices but unable to buy the out-of-stock sale items. If this is
true, then the Good Green Grocer would most likely be accused of ________.
A. using puffery
B. making exaggerated claims
C. using bait-and-switch tactics
D. publishing inflated retail prices
E. green marketing
The business segmentation variable of ________ refers to customer desires such as
service support, cutting-edge technology, or financing terms.
A. demographics
B. purchasing approaches
C. customer operating characteristics
D. personal characteristics
E. benefits sought
Describe the purpose of a SWOT analysis.
Why might a marketer be concerned that marketing research conducted online would
not yield results representative of the general population?
Explain how a marketer can address the situational factors of the purchase environment
and time to influence consumer behavior.
Compare the responsibilities associated with full-service merchant wholesalers to those
associated with limited-service merchant wholesalers.
Describe the three main marketing functions and give an example of each.
Why is attracting new customers so important to a company’s sales and profits?
Why is it important for the copy testing process to be versatile?
Identify three issues that a socially responsible company might consider when
addressing concerns about how its products affect the global environment.
Briefly discuss how brand management is affected by social media and how a company
can use social media to its advantage.
Explain how extensive customization from market to market may cancel out some of
the benefits of global trade for a company.
Briefly explain the idea of social responsibility in marketing. Give an example of how
an organization might practice social responsibility.
Briefly compare and contrast the three concepts of self-identity, personality, and
lifestyle, explaining how each influences consumer buying behavior.
Explain how a consumer market is determined and give two examples of consumer
markets of different size.
Give an example of an augmented product.
Describe the differences between discount stores and off-price retailers.
What types of products may be sold through category killers?