Call Company has 12 call centers worldwide. The firm is considering the purchase of a
software firm that serves the oil and gas industry. Most likely, this would be classified
as __________ in Ansoff’s Product-Market Matrix.
A.Market diversification
B.Marketing strategy development
C.Market penetration
D.Product development
E.Market development
Market diversification strategies seize on opportunities to serve new markets with new
products. Call Company, which operates call centers at present, is now entering into the
software industry. So it is an example of the market diversification strategy.
Offering credit cards to college-bound high school seniors is an example of ________
segmentation.
A.Income segmentation
B.Occupation segmentation
C.Education segmentation
D.Life style segmentation
E.All of the above
Offering credit cards to college-bound high school seniors is an example of education
segmentation. Credit-card providers are eager to market themselves to college-bound
high school seniors because they know that, even with low beginning credit limits,
gaining usage early increases the chances of loyalty to the card over the long run.
The long-term objective of strategic marketing is ____________.
A.Customer satisfaction at all costs
B.Profitability through building a customer-oriented organization
C.Understanding where the company with be in 10, 20, 30 years
D.Getting ahead while doing well in society
E.Studying the competition
Strategic marketing is customer-centric, and recognizes that serving the most profitable
customers efficiently and effectively will lead to longevity.
The marketing director of Bank Y decides to conduct a survey of 5,000 current
customers to gather information to answer the research problem of what the bank can
do to improve its services and customer satisfaction. She starts with a database of
50,000 current customers and randomly picks a name on the list to start. She then
selects every tenth person as she goes down the list to receive a survey. She is using a
________ method to select the participants in this study.
A.Probability Sample
B.Random Sample
C.Convenience Sample
D.Non-probability Sample
E.Census
Probability sampling uses a specific set of procedures to identify individuals from the
population to be included in the research. Since the director is randomly selecting
people from the list, it becomes an example of probability sampling.
The single largest buyer of goods and services in the world is ____________.
A.General Electric
B.Wal-Mart
C.The United States Government
D.The Russian Government
E.None of the above
The single largest buyer of goods and services in the world is the U.S. government.
Combined with state and local governments, the value of purchases is over $2 trillion.
USAA began as an insurance company for ________________.
A.All military personnel
B.Anyone who worked on a military base
C.Military officers and their families
D.Enlisted personnel
E.Anyone who lived in the U.S.
USAA was established as an insurance company for military officers and their families
because these officers had difficulty getting insurance at reasonable rates due to the
extreme mobility associated with their career paths.
Mary’s firm has delayed making a decision on acquiring a new product line. Her staff
has analyzed and tweaked numbers for three months. Most likely, the staff needs to be
reminded to _______________.
A.Stay flexible
B.Utilize input, but not become paralyzed by information and analysis
C.Not underestimate the implementation part of the plan
D.Stay strategic but also stay on top of tactical
E.Give oneself and others room to fail and try again
Marketing managers value research and analytics, but also know when to move forward
with action.
Total demand is a function of three separate situations, which can be described as
___________.
A.New, ideal, and impulse purchases
B.New, repeat, and replacement purchases
C.New, repeat and impulse purchases
D.New, impulse and replacement purchases
E.New, convenient, and impulse purchases
The combination of new, repeat and replacement purchases represent the total demand
for the new product.
Product choice in the B2B market depends upon _______.
A.Price, product, and distribution criteria
B.Financial, subjective, and objective criteria
C.Objective, subliminal, and price criteria
D.Financial, value, and service criteria
E.None of the above
The three primary criteria used to evaluate the product choice are financial, value, and
service criteria.
Juan is researching new cars. He would like to buy a car that is both good quality and a
good price. After much consideration, Juan purchases a car from a manufacturer where
the initial price paid is high, but the cars are known to have much lower maintenance
costs. The pricing strategy employed by the dealership where Juan bought his car is
____________________.
A.Penetration pricing
B.Price skimming
C.Target ROI
D.Competitor based pricing
E.Value pricing
Juan has paid a higher price for the car because he feels that the investment would
provide sufficient benefits to justify the cost as the cars are known to have much lower
maintenance costs. This becomes an example of value pricing.
John recently got a job as a manufacturer’s representative and his new boss wants him
to evaluate and get rid of under-performing accounts. John doesn’t understand why
anyone would get rid of a customer. What measurement would help John see his boss’
point of view?
A.Return of customer revenue
B.Annual ROI
C.Projected cash flow
D.Return on customer investment
E.Revenue growth per consumer
Return on customer investment is an estimate of the projected financial returns from a
customer. It helps in identifying customers with low predicted lifetime value. Getting
rid of these accounts would free up resources which can be invested in other profitable
customers.
With reference to the VALS¢ framework, _______ are fundamentally conservative and
they choose familiar products and established brands.
A.Makers
B.Survivors
C.Believers
D.Achievers
E.Thinkers
Believers are strongly traditional and respect rules and authority. Because they are
fundamentally conservative, they are slow to change and technology averse. They
choose familiar products and established brands.
____________ advocates that firms should fulfill the customer’s needs in as custom a
manner as possible.
A.Differentiation orientation
B.Mass marketing
C.One-to-one marketing
D.Sales orientation
E.Low cost orientation
One-to-one marketing advocates that firms should direct energy and resources into
establishing a learning relationship with each customer and then connect that
knowledge with the firm’s production and service capabilities to fulfill customer’s needs
in as custom a manner as possible.
What is language? Give an example of how language conveys much more about society
and values.
What are the 7 Elements of the marketing manager’s role in promotional strategy?
What are the three major objectives of CRM?
You have always wanted to start a company selling golf clubs. You start to look at
putting a business plan together and determining the best companies to use as
manufacturers, transporters, retailers, etc. How could a channel of distribution help
you?
When is the logic of competitor-base pricing not a rational option?
Cleo runs a tennis shop at a high-end resort. She sells an assortment of tennis rackets
and accessories. She has been considering expanding into catalogue sales. What are
some things that Cleo should be aware of?
Chico’s is a clothing store aimed at women who are 40 years old and over. Once a
customer spends $500, she is enrolled in the Passport Club. This allows her to get 5%
off her total purchase every shopping trip and she gets special monthly discounts
offered through the catalog and postcard mailings, the major customer touchpoints other
than in-store shopping. Many customers say the best thing about shopping at Chico’s is
that the computer system automatically tracks their spending and coupon usage. They
don’t even need to remember to bring the coupons because everything is “in the
computer”. What do you think of Chico’s CRM system? How could it be improved?