Firms directing the same strategy to the same target market constitute a strategic group.
The typical approach to positioning is to inform consumers of a brand’s membership
before stating its point-of-difference.
A questionnaire should contain sophisticated and uncommon words.
To succeed in the future, marketing must be more holistic and less departmental.
Price elasticity magnitudes are lower for durable goods than for other goods.
Relative perceived quality is an example of an external marketing metric.
A marketer’s only concern is how best to create demand for a new product produced by
his/her company. Improving product design is not his/her responsibility.
The new-offering realization process involves all activities in defining target markets
and prospecting for new customers.
Organic growth refers to increasing the profitability of the organization by increasing
employee productivity.
Activity-based costing tries to identify the real costs associated with serving each
customer.
Competitive advantage is a company’s ability to perform in one or more ways that
competitors cannot or will not match.
It’s often easier to re-attract ex-customers than to find new ones because the company
knows their names and histories.
Situational factor segmentation variables in the business marketplace include urgency,
specific application, and size of order.
The answer to the question “was the surgery successful?” represents the technical
quality aspect of interactive marketing, one of the three broad areas of service
excellence.
As a market-follower strategy, a counterfeiter emulates the leader’s products, name, and
packaging, with slight variations.
A market segment consists of a group of consumers who share a similar set of needs
and wants.
Public relations is incapable of reaching prospects who prefer to avoid mass media and
targeted promotions.
Featuring exclusive national brands that are not available at competing retailers is a way
of generating consumer interest in a retailer.
Which of the following statements is true of the role of advertising in business markets?
A) Advertising is unsuitable for explaining any new features that a product might have.
B) Sales calls are more economical than reminder advertisements.
C) Sales calls are more effective than advertisements at reminding customers how to
use a product and reassure them about their purchase.
D) Sales representatives can use copies of the company’s ads to legitimize their
company and products.
E) Advertisements are the least preferred tools when intended to generate leads for sales
representatives.
Which of the following modes of entry into a foreign market involves the maximum
commitment and risk?
A) franchising
B) direct investment
C) joint ventures
D) licensing
E) direct exporting
A Gucci bag sells for $120 in Italy and $240 in the United States due to the differences
in the costs of distributing the product in the two countries. This phenomenon is called
a(n) ________ problem.
A) opportunity cost
B) market pricing
C) tactical pricing
D) price escalation
E) transfer pricing
A(n) ________ need is a need that the consumer explicitly verbalizes.
A) stated
B) affirmative
C) unsought
D) delight
E) secret
Which of the following is true regarding annual-plan control?
A) This control process begins by identifying the causes of serious performance
deviations.
B) The tools used for this purpose are sales analysis, market share analysis, marketing
expense-to-sales analysis, and financial analysis.
C) The marketing controller has the primary responsibility for annual-plan control.
D) Its purpose is to evaluate and improve the spending efficiency and impact of
marketing expenditures.
E) It measures profitability by product, territory, customer, segment, trade channel, and
order size.
American Express’ “World-Class Service, Personal Recognition,” Mary Kay’s
“Enriching women’s lives,” Hallmark’s “Caring Shared,” and Starbucks’ “Rewarding
Everyday Moments” are examples of brand ________.
A) mantras
B) parity
C) identity
D) architecture
E) extension
Which of the following statements about Gen Xers is true?
A) Gen Xers are more optimistic and team-oriented.
B) Gen Xers are selective, confident, and impatient.
C) Gen Xers are highly socially conscious and concerned about environmental issues.
D) Gen Xers feel self-sufficiency and the ability to handle any circumstance are key.
E) Technology is a barrier for Gen Xers.
________ has overtaken the United States as the world’s largest luxury market; it’s
forecast that one-third of all high-end goods will be sold there in the coming years.
A) China
B) India
C) South Africa
D) Brazil
E) South Korea
Which element of the marketing communications mix allows for amplified
expressiveness?
A) sales promotion
B) public relations
C) advertising
D) direct and interactive marketing
E) personal selling
________ are a means for consumers to share text, images, audio and video information
with each other and with companies, and vice versa.
A) Social media
B) Interstitials
C) Microsites
D) Pay-per-click ads
E) Mobile ads
A growing population does not mean growing markets unless ________.
A) the people are under a democratic system of government
B) there is common ownership of all resources
C) people have sufficient purchasing power
D) there is adequate governmental intervention in the market
E) the government has a budget surplus
Identify the stage in the consumer adoption process in which the customer is stimulated
to seek information about the innovation.
A) awareness
B) adoption
C) interest
D) evaluation
E) trial
AT&T found that one of the most effective drivers of its sales, along with unaided
advertising awareness was ________.
A) a blog
B) an online forum
C) social networks
D) WOM
E) pay-per-click ads
According to researchers, which of the following is the correct order in which content
of print advertisements matter?
A) picture-headline-copy
B) copy-picture-headline
C) headline-copy-picture
D) picture-copy-headline
E) copy-headline-picture
Qualities such as candor, humor, and naturalness make a spokesperson ________,
which is an important component of spokesperson credibility.
A) likable
B) an expert
C) trustworthy
D) transformational
E) informational
Which of the following is a major advantage of using direct mail?
A) Direct mail permits target market selectivity.
B) It is the best suited tool for selling complex products.
C) Campaign testing is not needed for direct mail.
D) Direct mail has very high conversion rates.
E) It is the best method to sell industrial products.
Urgency, specific application, and size of order are examples of ________ segmentation
variables for business markets.
A) situational factors
B) demographic
C) purchasing approaches
D) personal characteristics
E) operating variables
A ________ is the set of all products and items a particular seller offers for sale.
A) product line
B) product mix
C) product extension
D) product system
E) product class
The identification and profiling of distinct groups of buyers who might prefer or require
varying product and service mixes is known as ________.
A) segmentation
B) integration
C) disintermediation
D) cross-selling
E) customization
The drugstore chain CVS uses loyalty-card data to better understand what consumers
purchase, the frequency of store visits, and other buying preferences, which is
associated with which technology-enhanced company capability?
A) Companies can reach consumers quickly and efficiently via social media and mobile
marketing, sending targeted ads, coupons, and information.
B) Companies can improve purchasing, recruiting, and internal and external
communications.
C) Companies can improve cost efficiency.
D) Companies can collect fuller and richer information about markets, customers,
prospects, and competitors.
E) Companies can use the Internet as a powerful sales channel.
Rising customer expectations, evolving employee goals and ambitions, and tighter
government legislation and pressure are driving companies to ________.
A) operate leaner manufacturing facilities
B) manage shorter supply chains
C) operate flatter organizations
D) practice a higher level of corporate social responsibility
E) vertically integrate
When a company introduces a product at a high price and then gradually drops the price
over time, it is pursuing a ________ strategy.
A) market-penetration pricing
B) market-skimming pricing
C) value-pricing
D) switching cost
E) loss-leader pricing
Suppose an individual buyer purchases three pairs of shoes each year at $50 each pair
and that there are 50 million such consumers in the economy. Compute the total market
potential for shoes.
A) $5,000 million
B) $6,500 million
C) $7,500 million
D) $10,000 million
E) $75 billion
A brand developed by a retailer and/or wholesaler that is available only in selected
retail outlets is called a ________ brand.
A) generic
B) franchisee
C) marque
D) national
E) private-label
________ reflects a customer’s judgment of a product’s performance in relation to his or
her expectations.
A) Brand equity
B) Satisfaction
C) Value
D) Perception
E) Brand image
What are the advantages and disadvantages of online marketing communications?
Create a value proposition for cell phone manufacturer LZT.
A key driver of shareholder value is the aggregate value of the customer base. Identify
the five strategies employed by successful companies to improve the value of their
customer base.
Provide an example of a big company that fought back against an unjustified complaint.
When does personal influence carry the most weight?
What are some challenges associated with mobile marketing and how should
advertisers overcome them?
Industrial goods can be classified in terms of how they enter the production process and
their relative costliness. Identify the three groups of industrial goods.