A public is any group that has an actual or potential interest in or impact on a company’s
ability to achieve its objectives.
According to the BrandZ model, “Bonded” consumers at the lower levels of the
pyramid build stronger relationships with and spend more on the brand than those at the
top.
Attacking the market leader proves successful and beneficial only when the leader is
not serving the market well.
Permission marketing presumes that consumers know what they want.
“Friends Don’t Let Friends Drive Drunk,” is an example of marketing information to an
interested audience.
A marketer who has unit costs of $16 and wants to earn a 20 percent markup on sales
would charge a markup price of $20.
Definitions of a firm’s mission as well as its marketing and financial objectives are
included in the marketing strategy section of the marketing plan.
The supply-side method identifies the effect sponsorship has on consumers’ brand
knowledge.
Attracting tourists to Wisconsin is an example of marketing properties.
Customer equity is synonymous with brand equity.
One of the ways a company like Caterpillar could increase the customer-perceived
value of an offer, relative to a competitor like Komatsu, is to increase the total customer
benefit by improving psychological benefits of its product, services, people, and/or
image.
The business market is essentially the same market as the consumer market.
Self-audits tend to provide more objective information than audits conducted by
external consultants.
Wants are basic human requirements, such as food and shelter.
Retailers are increasingly likely to reach their customers by using a single channel.
In the case of prestige goods, the demand curve sometimes slopes upward.
In first-degree price discrimination, the seller charges less to buyers who purchase in
larger volumes.
In general, a company prefers to enter countries that have high market attractiveness
and high market risk, regardless of whether it possesses a competitive advantage.
Multichannel conflicts are common when the members of one channel obtain a lower
price based on larger-volume purchases.
The demand for business goods is ultimately derived from the demand for raw
materials.
Points-of-parity may be shared among two or more brands.
Growing the core can be a less risky alternative for growth than expansion into new
product categories.
If a company were pursuing a policy of networking externally to gather marketing
intelligence, it might collect competitors’ ads or look up news stories about competitors.
The ultimate level of segmentation leads to ‘segments of one,” “customized marketing,”
or “one-to-one marketing.”
Two products with very different performance qualities can have the same conformance
quality if both products deliver their respective promised quality.
Sales representatives who are paid mostly in commissions require more supervision
than other salespeople.
Companies should first think of the target market and then design the supply chain
backward from that point. This strategy is called demand chain planning.
James collected primary data when he distributed a survey to dorm residents to discover
their attitudes and opinions on campus life.
Illustrations of personality segmentation would include culture-oriented,
sports-centered, or outdoor-oriented subsegments.
Today, consumers are price takers and accept prices at face value or as given.
In Interbrand’s brand valuation model, Brand Value is the likelihood the brand will
realize forecasted Brand Earnings.
“Pop-up” stores let retailers promote brands to seasonal shoppers for a limited time.
In which of the following auctions does the auctioneer first announce a high price for a
product and then slowly decreases the price until a bidder accepts?
A) a Dutch auction with one buyer and many sellers
B) an English auction with one seller and many buyers
C) an ascending bid auction
D) a sealed-bid auction
E) a Dutch auction with one seller and many buyers
In ________ marketing, the firm operates in several market segments and designs
different products for each segment.
A) individual
B) undifferentiated
C) differentiated
D) concentrated
E) niche
Which of the following elements of a marketing plan outlines the marketing activities
such as pricing, channels, and communications?
A) the situation analysis
B) the marketing strategy
C) the marketing tactics
D) the financial projections
E) the short-term targets
Matt’s retail store offers all products at $2 less than its competitors. The store never runs
promotional campaigns or offers special discounts. Matt’s retail store is following a(n)
________ pricing policy.
A) auction-type
B) target-plus
C) everyday low
D) high-low
E) going-rate
Kate is coaching members of her field sales team to help them understand how they
spend their time and how they might increase their productivity. A tool that would help
her provide feedback for this is ________.
A) time-and-duty analysis
B) a sales quota
C) a feed-forward approach
D) an expense allowance
E) a norm for prospect calls
ConAgra Foods decided its prices had risen too high, so it determined to set a lower
price for its products. To make the new price level profitable, ConAgra cut $250 million
in costs. What application of cost estimation did this represent?
A) target costing
B) experience-curve pricing
C) ceiling pricing
D) the learning curve
E) promotional price elasticities
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
Rather than merely counting media exposures, a better measure of marketing public
relations effectiveness is the ________.
A) number of promotional tools required
B) effect it has on its market capitalization
C) change in product awareness, comprehension, or attitude
D) changes observed in media behavior
E) impact it has on the company’s market share
Define a brand mantra and provide an example of a brand mantra.
The Caesar Park Hotel generally caters to business customers during the week, so
weekends are relatively quiet. The hotel has decided to promote mini-vacation
weekends for non-business customers as well. What is the Caesar Park Hotel trying to
do?
A) It is implementing premium pricing.
B) It is trying to cultivate nonpeak demand.
C) It is promoting complementary services.
D) It is putting reservation systems in place.
E) It is implementing differential pricing.
Activities involved in building deeper understanding of existing consumers and what
the product offerings mean to them would be a part of the ________ process.
A) customer acquisition
B) customer relationship management
C) customer prospecting
D) customer integrating management
E) customer equity
Which of the following is TRUE about direct investment as a mode of international
expansion?
A) It allows a firm to retain full control over its investment.
B) It yields the lower returns than joint ventures.
C) It involves the least amount of risk.
D) It involves the least cost.
E) It does not allow the firm to diversify.
Tums claims to have the most acid-reducing components of any antacid. In what way is
the brand’s category membership being conveyed?
A) comparing to exemplars
B) relying on the product descriptor
C) announcing category benefits
D) focusing on reliability
E) persuasion based on believability
List several factors that are drawing more and more companies into the international
arena.
Which of the following is TRUE regarding a matrix-management organization?
A) It is a low-cost form of organization.
B) It often creates conflicts regarding authority and responsibility for marketing
activities.
C) It hampers the flow of information among marketing personnel.
D) It promotes the matrix concept throughout the company.
E) It is best suited to companies that offer a small range of products to niche markets.
________ refers to buying large carload lots and dividing them into smaller units before
shipping them out to consumers.
A) Bulk breaking
B) Containerization
C) Wholesaling
D) Warehousing
E) Broking
With respect to powerful brand elements, ________ is an extremely efficient means to
build brand equity. This element functions as a useful “hook” to help consumers grasp
what the brand is and what makes it special.
A) the tangibility of a product
B) a product’s shape
C) a slogan
D) a patent
E) a copyright
________ helps sales representatives understand how they spend their time and how
they might increase their productivity.
A) Time-and-duty analysis
B) A sales quota
C) A feed-forward approach
D) An expense allowance
E) A norm for prospect calls
The five product levels add more customer value, and together they constitute a(n)
________.
A) core benefit
B) basic product
C) augmented product
D) customer-value hierarchy
E) expected product
Jake had an appointment at the doctor’s office, but couldn’t make it on time due to
traffic. By the time he arrived, the doctor had already begun with the next patient. This
illustrates the ________ of services.
A) variability
B) heterogeneity
C) perishability
D) intangibility
E) homogeneity
Which of the following questions is LEAST relevant during the preapproach stage of
the sales process?
A) How is the buying process conducted at the company?
B) Who is involved in buying?
C) How can I handle objections?
D) What are buyers’ personal characteristics?
E) What does the prospect need?
Which of the following methodologies takes the list of desired customer attributes
(CAs) generated by market research and turns them into a list of engineering attributes
(EAs) that engineers can use?
A) quality control processes
B) quality function deployment
C) rapid prototyping
D) marketing control
E) control system formation
When Coca-Cola determines the bottled-water competitors for its Dasani brand by
identifying the products or sets of products with which a brand competes and which
function as close substitutes, it is determining Dasani’s ________.
A) customer-focused value proposition
B) points-of-parity
C) points-of-difference
D) category membership
E) brand mantra
A salesperson who relies on creative methods for selling a company’s tangible or
intangible offerings is called a(n) ________.
A) demand creator
B) deliverer
C) order taker
D) missionary
E) solution vendor
Identify the channel function that constitutes both backward and forward flow.
A) obtaining financing
B) storage of physical goods
C) persuasive communication
D) movement of physical goods
E) overseeing actual transfer of ownership
Points-of-________ are product associations that are not necessarily unique to the brand
but may in fact be shared with other brands.
A) parity
B) difference
C) inflection
D) presence
E) divergence
The internal records system supplies resultsdata, but the marketing intelligence system
supplies ________ data.
A) internal
B) revenue
C) thematic
D) happenings
E) process
If you performed the role of the ________ in a buying center, you would be the person
that has the power to prevent sellers or information from reaching other members of the
buying center.
A) initiator
B) influencer
C) decider
D) gatekeeper
E) approver
The “Malaysia, Truly Asia” ad campaign that showcased Malaysia’s beautiful landscape
and its multicultural society in order to attract tourists is an example of ________
marketing.
A) event
B) property
C) service
D) place
E) idea
Designing a research plan calls for decisions on all of the following EXCEPT
________.
A) research objectives
B) data sources
C) research approaches
D) research instruments
E) sampling plans
Pepsodent launched a new product that could whiten teeth, fight decay, and maintain
fresh breath. Observing that Pepsodent did not focus on the dental sensitivity aspect,
Colgate introduced a toothpaste which did all of the above and also protected sensitive
teeth. This is an example of a(n) ________ attack.
A) frontal
B) flank
C) guerrilla
D) encirclement
E) bypass
Marketing communication strategy can be decided by conducting an image analysis,
which profiles the target audience in terms of ________.
A) brand knowledge
B) purchase patterns
C) demographic characteristics
D) income levels
E) psychographic characteristics
Increasingly, a key goal of marketing is to develop deep, enduring relationships with all
entities that directly or indirectly affect the success of the firm. Discuss the merits of
relationship marketing. From your experience as a consumer, describe the relationship
marketing efforts undertaken by a company of your choice.
What are the steps involved in developing effective marketing communications?
People can emerge with different perceptions of the same object because of three
perceptual processes. List and briefly describe these processes.
Simpsons, a manufacturer of air conditioners, finds that its sales potential is less than its
market potential even when it spends a sufficient amount on advertisements and after
sale services. What is the basic reason behind such an observation by the marketers of
Simpsons?
Discuss how companies are responding to service failures by satisfying customer
complaints.
Suppose the Belgian government prohibits sale of cigarettes to people below 20 years
of age. Who are likely to comprise the qualified available market for Dunhill, a
manufacturer of herbal cigarettes in Belgium?
Sellers must label their products. Labels serve many purposes beyond just “naming” the
product. List the additional services provided by a product’s label.
Cell phone manufacturer LZT has to choose between two options for sourcing parts:
Japan-based Keiko Inc. and U.S.-based Global Tech. How can Keiko reduce the total
customer cost for LZT?
Explain the concept of a value network.
What is marketing control? List the four types of marketing control.
Briefly describe the advantages and disadvantages of television as an advertising
medium.
Belling is a chain of coffee shops. List possible competitors first from an industry point
of view and then from the market point of view.
What are exclusive distribution and dealing arrangements, and when are they legal?
Suppose a marketer decides to segment a market based on social class, psychographic
lifestyle, and readiness stage. For each type of segmentation, give at least three possible
segmentation subcategories.
What are the major advantages and disadvantages associated with print advertising
media (newspapers and magazines)?
Michael Porter draws a firm distinction between operational effectiveness and a
strategy. Briefly describe this distinction, and identify when a company can claim that it
has a strategy.
Discuss how globalization has affected the marketing environment.