All of the following are benefits of following the ________ approach to target market
selection: a strong knowledge of the segment’s needs, a strong market presence,
operating economies through specializing in production, distribution, and promotion.
A) single-segment concentration
B) selective specialization
C) product specialization
D) market specialization
E) full market coverage
Marketers identify which segments of buyers present the greatest opportunity. These
segments are called ________ markets.
A) target
B) capital
C) tertiary
D) demographic
E) developing
A major advantage of a ________ strategy is that if the product fails, the company has
not tied its reputation to the product.
A) blanket family name
B) licensing
C) separate family brand name
D) category extension
E) brand revitalization
Finnish cellular phone giant, Nokia, customized its 6100 series mobile phone for every
major market in which it is present. In Asia, for example, the series came with higher
ring volume so that it could be heard on the crowded Asian streets. This is an example
of a ________.
A) straight extension
B) forward invention
C) regional version
D) city version
E) country version
Which of the following is most closely related with the organic growth of an
organization?
A) acquiring a product or service brand
B) entering new market places
C) increasing the operational profitability
D) increasing productivity of employees
E) developing new products from within
In marketing cosmetics, laundry detergent, and products like Pringles to consumers,
P&G manages ________ such as eye-catching package designs and innovative product
functions.
A) events
B) prospects
C) markets
D) brands
E) touch points
________ is the process of carefully managing detailed information about individual
customers and all customer “touch points” to maximize loyalty.
A) Customer relationship management
B) Customer lifetime value
C) Customer profitability analysis
D) Customer satisfaction analysis
E) Customer-value delivery
All response hierarchy models of the communication process assume the buyer passes
through cognitive, affective, and behavioral stages, in that order. Which of the
following product categories lends itself most appropriately to such a “learn-feel-do”
sequence?
A) socks
B) salt
C) real estate
D) gasoline for a car
E) airline tickets
A ________ sales force consists of manufacturers’ reps, sales agents, and brokers who
earn a commission based on sales.
A) virtual
B) domestic
C) contingent
D) contractual
E) decentralized
The relatively homogeneous and enduring divisions in a society, which are
hierarchically ordered and whose members share similar values, interests, and behavior
constitute a ________.
A) culture
B) subculture
C) social class
D) family
E) group
A firm that is based in France designs jewelry and takes custom orders from around the
world. They design up to 15 pieces of jewelry in a year and ensure that each design uses
distinctive stones and is unique. Such nichemanship is an example of ________
specialist role.
A) customer-size
B) product
C) product-feature
D) job-shop
E) quality-price
When consumers examine products, they often compare an observed price to an internal
price they remember. This is known as a(n) ________ price.
A) markup
B) reference
C) market-skimming
D) accumulated
E) target
________ are attributes or benefits that consumers view as essential to a legitimate and
credible offering within a certain product or service class.
A) Category points-of-difference
B) Conceptual points-of-parity
C) Competitive points-of-parity
D) Category points-of-parity
E) Competitive points-of-difference
Services high in ________ qualities have characteristics that the buyers can evaluate
before purchase.
A) search
B) experience
C) credence
D) privacy
E) storing
Which of the following statements about brand mantras is TRUE?
A) They guide only major decisions; they have no influence on mundane decisions.
B) Their influence does not extend beyond tactical concerns.
C) They must economically communicate what the brand is and avoid communicating
what it is not.
D) They can provide guidance about what ad campaigns to run and where and how to
sell the brand.
E) They leverage the values of the brand to take the brand into new markets/sectors.
A well-known producer of breakfast cereals has decided to hire producers in different
countries so that the cereals marketed under their brand are locally produced in the
respective countries. This would not only appeal more to consumers who preferred
domestically produced goods, but would also create jobs in the host-country enhancing
the brand’s image further. This is an example of ________.
A) licensing
B) direct exporting
C) indirect exporting
D) direct investment
E) joint ownership
________ is the study of how individuals, groups, and organizations select, buy, use,
and dispose of goods, services, ideas, or experiences to satisfy their needs and wants.
A) Target marketing
B) Mind mapping
C) Consumer activism
D) Consumer behavior
E) Product differentiation
The expectancy-value model of attitude formation posits that consumers evaluate
products and services by combining their ________.
A) needs
B) wants
C) desires
D) brand beliefs
E) consuming attitudes
The ________ environment includes the actors involved in producing, distributing, and
promoting an offering. The main actors are the company, suppliers, distributors, dealers,
and the target customers.
A) economic
B) management
C) strategic
D) task
E) tactical
________ marketing is the practice of sending messages only when consumers express
a willingness to become more involved with the brand.
A) Relationship
B) Permission
C) Cause
D) Defensive
E) Horizontal
The dimensions in the VALS framework are consumer resources and ________.
A) marketer resources
B) product innovation
C) consumer maturity
D) impulsiveness
E) consumer motivation
________ are a means of understanding where, how much, and in what ways brand
value is being created to facilitate day-to-day decision making.
A) Internal marketing campaigns
B) Brand portfolio audits
C) Brand value chains
D) Sales cycles
E) Brand-tracking studies
Which of the four new Ps encompasses the old four Ps as well as a range of other
marketing activities that might not fit well into the old view of marketing?
A) programs
B) processes
C) promotion
D) people
E) performance
Companies should first think about the target market and then design the supply chain
backward from that point. This strategy is called ________ planning.
A) demand chain
B) resource
C) external channel
D) materials
E) strategic business
Which of the four characteristics of a marketing audit is described by the fact that
outside consultants can bring necessary objectivity to the process?
A) comprehensive
B) systematic
C) independent
D) periodic
E) opinion-based
A ________ is a sales force promotion tool that aims at inducing the sales force or
dealers to increase their sales results over a stated period, with prizes (money, trips,
gifts, or points) going to those who succeed.
A) trade show
B) frequency program
C) sales contest
D) sweepstake
E) patronage award
A customer ________ is any occasion on which a customer encounters the brand and
product from actual experience to personal or mass communications to casual
observation.
A) touch point
B) point of order
C) point of difference
D) pivot point
E) point of parity
A producer must modify its channel design and arrangements if ________.
A) consumer buying patterns change
B) the competition in the market stabilizes
C) the product is in the growth stage of its life cycle
D) the market size remains unchanged for a particular period
E) the firm’s profits stabilize
As the manager of an organization that is attempting to build a marketing information
system (MIS), you have been informed that an MIS is built upon three fundamental
information sources. The sources are ________, marketing intelligence activities, and
marketing research.
A) external records and documents
B) databases found on the Internet
C) consultant reports
D) internal company records
E) secondary data from government sources such as the Better Business Bureau
Which of the following is a criticism of direct marketing?
A) unwanted and misleading messages
B) inability to build brand awareness
C) low chances of customers avoiding messages
D) inability to control marketing communication
E) inability to maintain information security
Producers often shift some functions to intermediaries. Which of the following is the
most significant benefit of doing this?
A) It increases customer loyalty.
B) It provides the producer with greater control over operations.
C) It reduces the amount of direct customer interaction.
D) It lowers the producer’s costs and prices.
E) It ensures greater information security.
________ are sets of interdependent organizations participating in the process of
making a product or service available for use or consumption.
A) Marketing channels
B) Interstitials
C) Communication channels
D) Sales territories
E) Marketing terrains
Under which of the following conditions is the reach of media the most important factor
in media selection?
A) when introducing frequently purchased brands
B) when going into a defined target market
C) when launching extensions of well-known brands
D) when there are strong competitors to a brand
E) when there is high consumer resistance to the product
Which of the following is most likely to use database marketing?
A) an airline targeting frequent fliers
B) a candy bar manufacturer
C) a seller that doesn’t have direct contact with the ultimate buyer
D) a marketer of soap to customers who aren’t brand loyal
E) a seller of pianos
Which of the following is a characteristic of a service?
A) The service is essentially tangible.
B) The service does not result in the ownership of anything.
C) The service’s production is tied to a physical product.
D) Services are typically produced and consumed at different times.
E) A client’s presence is not required for rendering a service.
Define customer failures and list four methods to tackle them.
What is the chief advantage of using each of the following contact methods: mail
questionnaire, telephone interview, and personal interview?
Traditionally, customers have had three specific worries about product service. What
are they?
You work as a sales representative in a company that manufactures surgical equipment.
Before calling on an important prospect, you decide to search the Internet and find out
details about him. What step in the selling process is being carried out here? What is
involved in this step?
Describe the PRIZM method of segmenting consumer markets.
Describe the distribution challenges and opportunities that international markets pose.
Dormentor, Inc. produces converts and markets packaging products including
boxboard, container board, and numerous other specialty packaging products. In an
attempt to increase its organic growth, the company decides to introduce new products.
It asks the managers and employees to send in ideas for new products. Before launching
products based on any of these ideas, what are the stages that the company has to go
through?
Crafted Jewels is a jewelry manufacturer that sells its designs to various jewelry
retailers. The retailers often complain that the company’s online store acts as a
competitor and reduces their profitability. What type of conflict is this? Briefly explain.
List the four groups of consumers based on loyalty status.
Abraham Maslow sought to explain why people are driven by particular needs at
particular times. Describe Maslow’s hierarchy of needs. How does Maslow’s theory
help marketers?
A flexible market offering consists of two parts. Identify and describe these two parts.
Belling is a chain of coffee shops. Give an example of a category point-of-parity and a
competitive point-of-parity for the company.
An ad agency has landed an account for Savola, a brand of healthy cooking oil.
Describe how the ad can effectively incorporate negative appeals in its messages.
Cortron Consultants provides business consulting services for startups. It helps
customers design their supply chains by first evaluating the target market and then
proceeds backward from that point. What is this strategy of reverse design called? Why
is it beneficial?
Ellie’s manager has asked her to come up with ways to reduce costs of their new
product by utilizing a process called “target costing.” What should Ellie do?
What is a marketing audit, and what is its purpose?
Bryson’s is a mid-sized hotel chain that is entering a competitive market. The chain
needs to differentiate its service from that of competitors, positioning itself as a hotel
with excellent service at an affordable price. However, the intangible nature of services
makes this difficult to demonstrate. How can Bryson’s convey its message effectively to
prospective guests using the marketing tool of place?