Firms that practice product differentiation gain competitive advantage through the way
they design their channel’s coverage, expertise, and performance.
Most companies use direct marketing as a supplementary channel or medium.
As baby boomers reach their peak earning and spending years, they become lucrative
markets for financial services, travel, and entertainment.
Psychographic segmentation divides buyers into different segments based on social
class, lifestyle, or personality characteristics.
Geographic segmentation divides the market into segments based on variables such as
age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and
generation.
The microenvironment consists of larger societal forces that affect a company, such as
demographic, economic, political, and cultural forces.
Multichannel marketing occurs when a single firm sets up two or more marketing
channels to reach one or more customer segments.
A product line consists of unrelated products that are sold to diverse customer groups.
In product line pricing, price steps should account for differences in customer
perceptions of the value of different features.
Industrial economies are major importers of manufactured goods, services, and
investment funds.
Informative ads are used primarily in the growth stage of the product life cycle.
Which term refers to the general idea that will be communicated to consumers through
an advertisement?
A) advertising appeal
B) message strategy
C) consumer-generated message
D) creative concept
E) message execution
________ involves looking at whether a company’s key action plans are well-matched
to its opportunities.
A) Operating control
B) Benchmarking
C) Strategic control
D) Regression analysis
E) Portfolio analysis
Tristan and Juliet, a newly married couple who intend to go to Egypt for their
honeymoon, bought a Europe travel package on Jizo Inc., an online travel site. As they
have never seen Europe or used the services of Jizo before, they were largely dependent
on other customers’ feedback and signals for service quality. Which of the following
characteristics of service is highlighted in this instance?
A) service intangibility
B) service inseparability
C) service variability
D) service perishability
E) service distinction
In the context of media timing, the idea behind ________ is to advertise heavily for a
short period to build awareness that carries over to the next advertising period.
A) continuity
B) pulsing
C) shuffling
D) sequencing
E) segmenting
With accumulated production experience and a higher volume of production, companies
not only become more efficient but also ________.
A) gain economies of scale
B) incur higher overhead costs
C) create derived demand in the market
D) spend more per unit of produced output
E) tend to routinely spend less on inputs
Country Kitchen and Perkins are both a chain of family restaurants featuring diner-like
menus with reasonably priced items. These companies are in the same ________.
A) focus group
B) control group
C) strategic group
D) target group
E) experimental group
Critics point to which of the following factors when they accuse marketing of harming
consumers through high prices?
A) quotas
B) nontrade tariffs
C) excessive markups
D) government taxes
E) changes in currency values
The interrelated departments within a company that influence marketing decisions form
the ________ environment.
A) cultural
B) economic
C) internal
D) political
E) technological
Fosters and Mason House, two major coffee brands, competed neck and neck based on
their product attributes and price promotions. They were soon blindsided by the arrival
of Starcoffeez, which focused more on the coffee experience rather than the coffee. This
resulted in major losses for the two companies. This is an example of ________.
A) self-competition
B) competitor myopia
C) competitor backlinking
D) marketing myopia
E) perfect competition
A(n) ________ is an unsolicited, unwanted commercial e-mail message that clogs up
e-mailboxes.
A) catalog
B) podcast
C) spam
D) tweet
E) blog
A ________ contains between 15 and 50 retail stores, including a department or variety
store, a supermarket, specialty stores, professional offices, and sometimes a bank.
A) community shopping center
B) neighborhood shopping center
C) strip mall
D) regional shopping center
E) power center
A company that pursues ________ will react much more strongly to a competitor’s cost
reducing manufacturing breakthrough than to the same competitor’s advertising
increase.
A) product differentiation
B) low-cost leadership
C) customer intimacy
D) a middle-of-the-roaders strategy
E) product leadership
Kathy Champe, a public relations specialist for a regional chain of pharmacies,
regularly contacts members of the local and statewide media with information about
community events and charity fundraisers sponsored by her company. This is an
example of the ________ function of public relations.
A) press relations
B) product publicity
C) investor relations
D) lobbying
E) development
When a firm varies its price by the season, it is using ________ pricing.
A) product form
B) customer-segment
C) location-based
D) time-based
E) value-added
A country’s ________ shapes its product and service needs, income levels, and
employment levels.
A) international trade system
B) income distribution
C) industrial structure
D) political structure
E) foreign exchange system
What is the first element that a reader most likely notices in a print ad?
A) copy
B) illustration
C) headline
D) slogan
E) tone
Phoenix, a popular coffee shop chain in North America, recently opened 400 stores to
cater to its rapidly increasing number of patrons. This exemplifies ________.
A) product differentiation
B) product development
C) diversification
D) market penetration
E) market segmentation
How can service providers use a differentiated offer, delivery, and image to avoid
competing solely on price?
List four types of discounts.
A marketer’s fixed costs are $400,000. The variable cost is $16 per unit, and the price of
the product is $24 per unit. If the company wants to make a profit, how many units
must it sell and at what price?
Give two examples of by-product pricing.
Differentiate between a product idea, a product concept, and a product image.
“Beyond the market and the economy, the company must consider several other factors
in its external environment when setting prices.” Explain this statement.
Cultural factors exert a broad and deep influence on consumer behavior. The marketer
needs to understand the role played by the buyer’s culture, subculture, and social class.
Distinguish between culture, subculture, and social class.
Explain how selective distortion is somewhat controllable by a marketer.
What are pop-up stores? Provide an example to illustrate your answer.
What does a call plan show?