A company’s mission statement provides the depth needed for all segments of the
company to reach their goals.
In product line pricing, price steps should account for differences in customer
perceptions of the value of different features.
Unsought products are products that the customer usually buys frequently, immediately,
and with a minimum of comparison and buying effort.
Service companies can differentiate their service delivery by having more able and
reliable customer-contact people.
Some industries commonly use two-part pricing, breaking the price down into a fixed
fee and a fixed usage rate.
Environmental sustainability is an important factor in supplier selection and
performance evaluation, as designing sustainable supply chains has become the right
thing to do.
A business’s suppliers are the most important actors in the company’s
microenvironment.
E-procurement has caused the time between order and delivery to increase significantly.
Rational appeals are often used to urge people to support social causes, such as a
cleaner environment or helping the disadvantaged.
The international growth of many professional and business services such as
accounting, consulting, and advertising led to the globalization of the client companies
they served.
The order-routine specification includes the final order with the chosen supplier or
suppliers and lists items such as technical specifications, quantity needed, expected
delivery time, return policies, and warranties.
The benefits of e-procurement include access to new suppliers, lower purchasing costs,
and more time-efficient order processing and delivery.
Trudie Jones works for a distribution channel firm that helps several electronics
companies find customers or make sales to them. Trudie works for a reseller.
International divisions can be organized as geographical organizations, world product
groups, or international subsidiaries.
The first step in the selling process is preapproach—learning about an organization and
its buyers.
Xorbate Blue is a relatively new food supplement that provides both high immediate
satisfaction and high long-run benefits, such as improved energy levels and muscle
tone. Xorbate Blue is best classified as a pleasing product.
In the customer sales force structure, each salesperson is assigned to an exclusive
geographic area and sells the company’s full line of products or services to all
customers in that territory.
Kiosk marketing connects users around the world to each other and to an amazingly
large information repository.
The federal government may prevent a company from adding products through
acquisitions if acquisition threatens to lessen competition.
Large-scale advertising conveys a positive message about the seller’s size, popularity,
and success.
The affordable method of setting advertising budgets more frequently results in
overspending, rather than in underspending.
To increase its “share of customer,” a firm concentrates on retaining as many customers
as possible over its lifetime.
Adapting marketing strategies is not a challenge faced in the product life cycle.
When a manufacturer seeks a market for by-products and accepts a price that covers
more than the cost of storing and delivering those by-products, the manufacturer is able
to reduce the main product’s price to make it more competitive.
Operating control involves checking ongoing performance against the annual plan and
taking corrective action when necessary.
Direct marketing is an expensive way of reaching target markets.
Direct marketing through catalogs and direct mailers is still the primary method used by
marketing professionals.
The goal of supervision is to encourage salespeople to “work hard” and energetically
toward sales force goals.
Branding decisions include determining a product price.
The percentage-of-sales budget is based on the availability of funds rather than on
opportunities.
The Gen Xers are increasingly displacing the lifestyles, culture, and values of the baby
boomers.
The final step in the marketing process is ________.
A) capturing value from customers
B) creating customer delight
C) creating customer lifetime value
D) understanding the marketplace
E) designing a customer-driven marketing strategy
________ are a type of SBU that often require heavy investments to finance their rapid
growth.
A) Cash cows
B) Question marks
C) Stars
D) Dogs
E) Bears
For marketing information to have value, it must be available to decision makers. This
may include non-routine information for special situations. Companies frequently use
________ in these instances.
A) e-mail messages
B) computer extranets
C) company intranet and internal CRM systems
D) scanned documents and faxes
E) video conferences
Refer to the scenario below to answer the following question(s).
Jason West, owner of A1 Cleaning, started his enterprise in 2001. Jason’s primary focus
had been on office cleaning for large corporations. But in recent months, Jason has seen
a decline in demand for his office cleaning services. Surprisingly, the competitive
environment appeared relatively stable with no new competitors. However, Jason knew
that office cleaning was a high-frequency service that is usually performed daily;
therefore, competitors must have been doing something to attract his customers.
Building a competitive advantage seemed to be the only option to offset competition.
But as Jason pondered over his dilemma, he realized that prior to building his
competitive advantage he needed to better understand how customers assessed service
quality and what they look for in a superior cleaning service.
Jason developed a research plan. First, he gathered information about his competitors,
primarily through pamphlets and Web sites, as well as through a few phone calls in
order to find out exactly what the competitors offered in their cleaning packages. In
addition, Jason obtained from the Chamber of Commerce an updated list of local
corporations. He planned on sending written questionnaires to them.
Though the list of corporations contained 141 local company names, Jason chose to
survey 75 of them. To better understand customer service expectations between both
small and large corporations, Jason divided his surveys into two categories. The survey
questions were designed to extract specific data from respondents with regard to service
quality expectations in correlation to service frequency and price.
Jason awaited the results. Though his primary focus had been on large corporations, he
was flexible and would aim his efforts differently if needed.
In this scenario, which of the following is representative of competitive marketing
intelligence?
A) formulating a research plan
B) collecting data about competitors
C) sending mail questionnaires to focus groups
D) creating competitive advantage
E) consolidating core competencies
An advertising objective is classified by its primary purpose, which is to inform,
persuade, or ________.
A) reciprocate
B) compete
C) remind
D) explain
E) suggest
Many marketers use the self-concept premise that people’s possessions contribute to and
reflect their identities—that is, “we are what we consume.” According to this premise,
consumers ________.
A) buy products to support their self-image
B) rarely identify with brand personalities
C) are affected by opinion leaders
D) compare product brands
E) conduct primary research
Which of the following are examples of close competitors?
A) Applebee’s and Subway
B) Taco Bell and T.G.I. Friday’s
C) Pizza Hut and Burger King
D) McDonald’s and Taco Bell
E) McDonald’s and Burger King
With their size and buying power, ________ can offer better merchandise selections,
good service, and strong price savings to consumers.
A) convenience stores
B) franchises
C) megaretailers
D) power centers
E) lifestyle centers
Refer to the scenario below to answer the following question(s).
Most clients of Second Avenue have learned about the store through word-of-mouth
communication. This small retailer of quality secondhand children’s clothing thrives on
the sale of a vast inventory of children’s clothing placed on consignment. “Because
small children grow so quickly,” Second Avenue’s owner commented, “they often
outgrow many of their clothes before they’ve hardly been worn!”
Second Avenue provides a way for people to sell their children’s clothing, earn a few
dollars, and buy the next larger size. “We’re extremely picky about the condition of the
clothing we stock,” the owner stated, “but we sell most items at a 60-percent discount.”
Which of the following media options would be the LEAST costly for Second Avenue’s
promotional efforts?
A) periodic advertising in a local newspaper that follows a regular monthly schedule
B) daily advertisements on a cable television station
C) daily commercials during the local evening news
D) a billboard placed on the nearest interstate highway
E) a billboard placed in a supercenter
Sigma Inc. has 2,000 Type-A accounts, each requiring 35 calls per year, and 1,000
Type-B accounts, each requiring 15 calls per year. What is the sales force’s workload?
A) 15,000 calls
B) 35,000 calls
C) 70,000 calls
D) 85,000 calls
E) 95,000 calls
Marketers set up company and brand Web sites that provide information and promote
the company’s products. Social media is a significant part of today’s marketing strategy.
Which of these tools is NOT part of the growth in digital technology?
A) blogs
B) e-mail
C) telemarketing calls
D) mobile apps
E) videos
Uptown-Clean Crew is a company that provides house-cleaning services in major urban
and suburban areas. Marketers at Uptown-Clean Crew developed a short, humorous
video promoting the company’s services and posted it online. Soon the video was a rage
as customers who saw the video found it hilarious and they passed it on to their friends
and colleagues calling it the “Uptown comedy.” Which form of marketing is illustrated
from this scenario?
A) telemarketing
B) viral marketing
C) integrated marketing
D) omni-channel marketing
E) kiosk marketing
The purpose of a training program for salespeople is to teach them about all of the
following EXCEPT ________.
A) customers’ buying habits
B) customers’ buying motives
C) competitor strategies
D) industry history
E) company goals
Which of the following is NOT a specific goal of branded community Web sites?
A) present brand content that engages consumers
B) build closer customer relationships
C) generate engagement with and between the brand and its customers
D) increase online sales
E) allows visitors to interact with likeminded people to explore and communicate
experiences with the brand
________ companies use both offline and online marketing channels.
A) Start-up
B) Click-only
C) Omni-channel retailing
D) Brick-and-mortar
E) Brick-only
________ may help shape product specifications, but their major role is to select
vendors and to negotiate.
A) Gatekeepers
B) Deciders
C) Buyers
D) Influencers
E) Users
An analysis conducted to determine what benefits target customers value and how they
rate the relative value of various competitors’ offers is known as ________.
A) customer lifetime value
B) customer value analysis
C) quantitative analysis
D) brand value proposition
E) benchmarking
Stores can combat the current consumer practice of ________, in which consumers visit
stores and then check online for price comparisons.
A) discounting
B) conferencing
C) using Instagram to share purchases
D) showrooming
E) auctioning
Which of the following statements is true regarding competitive marketing intelligence?
A) The advantage of using competitive marketing intelligence is negligible.
B) The goal of competitive marketing intelligence is to improve recruiting efforts.
C) Competitive marketing intelligence relies upon costly internal databases.
D) Competitive marketing intelligence relies upon publicly available information.
E) Companies using competitive marketing intelligence routinely ignore consumers’
online chatter.
Which of the following statements is most likely true about radio as an advertising
medium?
A) Radio advertising is typically quite expensive.
B) Radio ensures good attention from the target audience.
C) Radio offers very low audience selectivity.
D) Radio prohibits the use of segmentation strategies.
E) Radio advertising is characterized by good local acceptance.
Shoe Trends, a company that manufactures formal shoes for men and women, offers to
give its customers $10 for an old pair of shoes when they buy a new pair. In essence,
they’re reducing the price of the new shoes by $10. What is this type of price adjustment
called?
A) functional discount
B) captive product pricing
C) seasonal discount
D) trade-in allowance
E) by-product pricing
________ consists of strong short-term incentives that invite and reward quick
responses from customers.
A) Public relations
B) Personal selling
C) Advertising
D) Sales promotion
E) Direct marketing
A good marketing information system balances the information users ________ to have
against what they ________ and what is ________ to offer.
A) request; want; affordable
B) demand; should request; time-efficient
C) want; are unaware of; the newest technology
D) would like; need; feasible
E) don’t need; can afford; available
Brad works with a reputable retailer and leads a team that collects market information
from a wide variety of sources ranging from marketing research studies to monitoring
online conversations where consumers discuss Brad’s firm or its products. Brad’s team
uses this information to arrive at a better understanding of consumers’ behavior and
their buying motives. This, in turn, allows Brad’s firm to successfully generate more
value for consumers. Brad leads the ________ team.
A) product development
B) strategy implementation
C) human resource
D) customer relationship management
E) customer insights
Which of the following is a challenge of marketing through online social networks?
A) Results are hard to measure.
B) Users seldom have control over the online social networks.
C) Most existing networks are already controlled by major corporations and therefore
do not favor competitors.
D) It is difficult to get the approval of the online advisory board to post an ad in a social
network.
E) Marketing via online social networks is expensive and time-consuming.
________ creates a seamless cross-channel buying experience that integrates in-store,
online, and mobile shopping.
A) Shopper marketing
B) Point-of-purchase marketing
C) Social media marketing
D) Virtual marketing
E) Omni-channel retailing
The strongest brands are positioned on ________.
A) desirable benefit
B) good packaging
C) service inseparability
D) strong beliefs and values
E) product attributes
Using ________ segmentation, marketers form segments of consumers who have
similar needs and buying behaviors even though they are located in different countries.
A) psychographic
B) demographic
C) occasion
D) benefit
E) intermarket
Which of the following stages of the PLC is characterized with the same level or
slightly higher level of promotional expenditures in an attempt to respond to increasing
competition?
A) growth
B) decline
C) maturity
D) product development
E) adoption
________ provides a complete analysis of the company’s situation.
A) A SWOT analysis
B) A marketing audit
C) Regression analysis
D) Return on marketing investment
E) Marketing budget evaluation
New technologies most likely lead to ________.
A) economic imbalance in society
B) reduced exports
C) trade deficits
D) an increased demand for unskilled labor
E) new markets and opportunities
Which of the following is an example of an open-ended question?
A) How is voting going to help the nation?
B) Do you like driving on the highway?
C) How many children do you have?
D) Would you like to try a sample?
E) Are your friends in town?
To measure the ________ effects of an ad after it has aired, the advertiser can evaluate
how the ad affected consumer recall, product awareness, attitude changes, and
preference.
A) sales
B) profit
C) communication
D) continuity
E) associativity
Under what conditions is a company most likely to use a product sales force structure?
Advertisers should regularly evaluate two types of advertising results: the
communication effects and the sales and profit effects. How are these two results
measured?
Discuss the steps in analyzing competitors.
What is the FTC three-day cooling off rule? What purpose does the rule serve?
Marketers can obtain information from internal data and from competitive marketing
intelligence. Compare and contrast the two sources of information.
What are the major characteristics of institutional markets?
Why do companies opt for market segmentation?
What are the various risks a company takes when producing shoddy, harmful, or unsafe
products?
How do interpersonal factors influence the business buying process?
Why has the cost of product liability insurance risen so dramatically?
What is personal selling? What are the advantages and disadvantages of a firm using
personal selling to promote a product or service?
What are the steps of the marketing research process? How do companies conduct
research?
Describe the most common forms of marketing organizations.
Although many retail stores are independently owned, others band together under some
form of corporate or contractual organization. Describe the four kinds of corporate or
contractual organizations.
What are the different ways in which the major cultural values of a society are
expressed?
List any four major media types and identify some of the strengths and weaknesses of
each of them.