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Company growth through diversification involves offering modified or new products to
the company's current markets.
Answer:
If Audi develops a new low-priced model for entry-level consumers in Europe, it would
be an example of straight product extension.
Answer:
Labels range from simple tags attached to products to complex graphics that are part of
the packaging.
Answer:
The existence of competitors in a market may cause a decrease in total demand.
Answer:
Price decisions must be coordinated with product design, distribution, and promotion
decisions to form a consistent and effective integrated marketing mix program.
Answer:
The Gen Xers are increasingly displacing the lifestyles, culture, and values of the baby
boomers.
Answer:
Advertising media costs and availability differ vastly from country to country.
Answer:
Personal selling involves interpersonal interactions between salespeople and individual
customers.
Answer:
Using a segmented marketing strategy, a firm might decide to ignore market segment
differences and target the whole market with one offer.
Answer:
Online-only companies are more successful than multichannel marketing companies.
Answer:
Independent off-price retailers either are independently owned and run or are divisions
of larger retail corporations.
Answer:
Habitual buying behavior involves consumers searching extensively for information
about brands and evaluating brand characteristics.
Answer:
The presence of competitors may serve less-attractive segments or lead to more product
differentiation.
Answer:
Fast Food, Inc. views marketing as the process of finding and retaining profitable
customers by providing them with the food they want. Fast Food, Inc. practices societal
marketing.
Answer:
Business markets buy goods and services for further processing or for use in their
production processes.
Answer:
A company's product mix has four important dimensions: width, length, depth, and
consistency.
Answer:
The affordable method involves setting promotion budgets to match competitors'
outlays.
Answer:
Companies in several industries have recognized the buying power of the LGBT
segment of the U.S. population and have begun explicitly targeting these consumers
with gay-specific ads and marketing efforts.
Answer:
An experience such as a vacation can be defined as a market offering.
Answer:
A company launching a new product into the market must first decide where to launch
the product.
Answer:
When Tool Trade, an American company, uses qualified Brazilian manufacturers to
produce many of the products it sells to retailers in South America, Tool Trade is using
contract manufacturing.
Answer:
Many company and brand Web sites also serve as online brand communities, where
customers can congregate and exchange brand-related interests and information.
Answer:
If demand changes greatly with price, the demand is inelastic.
Answer:
Direct marketing is an expensive way of reaching target markets.
Answer:
In a pure monopoly, the market consists of many buyers and sellers who trade over a
range of prices rather than a single market price.
Answer:
Using teams of people from sales, marketing, engineering, finance, technical support,
and even upper management to service large, complex accounts is known as complex
selling.
Answer:
For customers, the benefits of direct marketing are being able to shop online anytime
and anywhere.
Answer:
A marketing communications director has overall responsibility for the company's
communications efforts.
Answer:
Business demand ultimately derives from the demand for consumer goods.
Answer:
In a direct marketing channel, the producer sells directly to the intermediaries, who in
turn sell directly to the customers.
Answer:
In evaluating different market segments, a firm should look at three factors: segment
size and growth, segment structural attractiveness, and company objectives and
resources.
Answer:
Under ________ pricing, different versions of the product are priced differently but not
according to differences in their costs.
A) product form
B) optional product
C) captive product
D) by-product
E) seasonal
Answer:
The relationship between the consumer's expectations and the product's ________
determines whether the buyer is satisfied or dissatisfied with a purchase.
A) perceived performance
B) brand personality
C) market reach
D) consumer market
E) market share
Answer:
Which of the following is most likely true about a straight rebuy?
A) Suppliers are not required to focus on quality of products or services delivered.
B) A straight rebuy is far more complex than a new-task situation.
C) A straight rebuy is handled on a routine basis by the purchase department.
D) A straight rebuy occurs only when a buyer wants to pinpoint and procure the best
deal in the market.
E) A straight rebuy involves more opportunities for "out" buyers than do other types of
purchasing situations.
Answer:
Companies that define their missions in terms of products or technologies are
considered myopic primarily because ________.
A) products and technologies result in low returns on investment
B) consumer preferences with regard to products and technology are difficult to predict
C) consumer preferences for different product categories vary from time to time
D) products and technologies eventually become outdated
E) most consumers are not comfortable using sophisticated technology during the
buying process
Answer:
Which of the following is the first step in strategic planning?
A) setting short-term goals
B) developing the business portfolio
C) defining the organizational mission
D) formulating the key marketing strategies
E) identifying the organization's weaknesses and the threats it faces
Answer:
The portion of the customer's purchasing that a company gets in its product categories
is known as ________.
A) customer-perceived value
B) share of customer
C) customer insight
D) consumption function
E) induced consumption
Answer:
Nike inadvertently offended Chinese officials when it ran an ad featuring LeBron James
crushing a number of revered Chinese figures in a kung fu-themed television ad. As a
result, Nike has to release a formal apology. This is an example of the impact of
________ on marketing strategy.
A) culture
B) political stability
C) level of industrialization
D) income distribution
E) monetary regulations
Answer:
Paul Robinson has identified a group of potential customers who seem to respond in a
similar way to a series of magazine and radio advertisements for his company's product.
Paul has identified a(n) ________.
A) target market
B) market segment
C) niche market
D) product attribute
E) product design
Answer:
While looking for ideas on how to craft a user-friendly dishwasher, the designers of a
dishwasher-manufacturing company spent 10 days observing people as they used their
dishwashers in their homes. In this instance, the designers were conducting a(n)
________.
A) survey research
B) experimental research
C) quantitative marketing research
D) ethnographic research
E) causal research
Answer:
Orion Inc. markets luxury watches. It targets the wealthy global elite segment,
regardless of their geographic location. Orion most likely uses ________ segmentation.
A) income
B) age-group
C) occasion
D) benefit
E) cross-market
Answer:
The total production costs at Kellner Machine Works are $87,000 out of which $45,000
represent fixed costs. Which of the following is representative of the variable costs
incurred by the company?
A) $35,000
B) $42,000
C) $45,000
D) $87,000
E) $132,000
Answer:
Stylize, Inc. opened an online store that triggered disagreements between headquarters
and the firm's exclusive dealers. This type of a disagreement is known as a(n) ________
conflict.
A) vertical
B) indirect
C) horizontal
D) selective
E) multitiered
Answer:
While using the ________ method for setting an advertising budget, a company starts
with total revenues, deducts operating expenses and capital outlays, and then devotes
some portion of the remaining funds to advertising.
A) integrated
B) moving-average
C) competitive-parity
D) percentage-of-sales
E) affordable
Answer:
Critics point out that in the stationery industry, a pen that costs fifty cents to make costs
the consumer $10 to buy. This is an example of ________.
A) deceptive advertising
B) redlining
C) excessive markups
D) high-pressure selling
E) shoddy products
Answer:
When it first opened stores across the United States, Bateman's, an office supply chain
store, had the best product selection, the best service, and the lowest prices compared to
other office supply chain stores. As a result, Bateman's captured a significant chunk of
the market in the short run. Which of the following positioning strategies did Bateman's
most likely use?
A) more for the same
B) more for less
C) same for less
D) less for much less
E) more for more
Answer:
________ are retailers that offer sales assistance because they carry more shopping
goods about which customers might need information.
A) Self-service retailers
B) Full-service retailers
C) Off-price retailers
D) Limited-service retailers
E) Specialty-service retailers
Answer:
Which of the following is NOT a type of off-price retailer?
A) independent
B) factory outlet
C) warehouse club
D) category killer
E) wholesale club
Answer:
Lark Inc., an American electronics company, is currently reviewing new geographical
markets to sell its highly popular televisions. By 2020, it plans to open new stores
across all the major South Asian cities. Lark is most likely following a ________
strategy.
A) local marketing
B) market development
C) diversification
D) product adaptation
E) product development
Answer:
When using public relations, the company pays for space and time in the media.
Answer:
Independent Grocers Alliance, Do-It Best, and Western Auto are examples of
________.
A) franchise organizations
B) warehouse clubs
C) voluntary chains
D) category killers
E) wholesale clubs
Answer:
Which of the following is an advantage of telephone interviews?
A) They are more cost-effective than mail questionnaires.
B) Interviewer bias is absent.
C) The quantity of data collected is greater compared to personal interviewing.
D) The speed with which data is collected is high.
E) Response rates tend to be higher than those of mail questionnaires.
Answer:
Which of the following statements reflects the marketing concept?
A) Focus on making continuous product improvements.
B) Undertake a large-scale selling and promotion effort.
C) Emphasize an inside-out perspective.
D) Consider customer focus and value as the paths to sales and profits.
E) Focus on a product-centered make-and-sell philosophy.
Answer:
Refer to the scenario below to answer the following question(s).
Casey Brickly opened The Landing, a convenience store on the north shore of Witmer
Lake, in 1962. With a sandwich counter on one side and a bait shop and grocery on the
other, The Landing was an immediate hit with weekend lake visitors and local residents
alike. In the summer, boaters parked at the piers and bought all their fishing needs, such
as rods and reels, bait, snacks, and soft drinks at The Landing. Even during the winter
months, snowmobilers and ice fishermen were lured to The Landing for snacks and hot
coffee or hot chocolate.
As time passed, the business changed and grew tremendously. What was formerly a
weekend tourist area gradually became a full-fledged residential area. Many of the
houses, which were built as cottages in the 1950s and 1960s, were remodeled into
residential homes. By the end of the 1970s, the days of small motorboats and 10
mile-per-hour speed limits were gone; skiing and fast speedboats became the rage.
Through it all, The Landing continued to attract flocks of patrons.
In the 1980s, however, Casey started to realize that the grocery area in The Landing
could not compete with larger local retailers. He eventually enlarged the sandwich
counter, transforming the bait shop and grocery into a restaurant with a full menu
typical of any diner. "Getting rid of the bait shop was hard to do," Casey admitted. "I
still had a summer crowd that relied on us for their fishing needs, but we couldn't
survive a whole year on four months of profit."
In the early 2000s, the atmosphere of Witmer Lake and the neighboring lakes became
upscale. "I could see that people were spending more on their speed boats than what
they had originally paid for their cottages!" Casey exclaimed. Many of the cottages
were inherited by children and grandchildren of the original owners. Once again, the
scene started to change as many of the lake houses were used only as weekend lake
homes. Unlike the previous generation, a vast number of the current owners could
afford to live closer to their jobs while maintaining lake homes. "At this point, business
wasn't growing," Casey said.
As local competition continued to increase, Casey converted the diner of The Landing
into a bar with a lounge area. "The change might have been too drastic," Casey said,
"but it was the only way we could maintain a strong, year-round business in spite of the
population shifts and competitive forces."
Which of the following microenvironment actors has had the most influence on The
Landing?
A) competitors
B) suppliers
C) marketing intermediaries
D) resellers
E) citizen-action publics
Answer:
Under the ________ concept, a company's marketing should support the best long-run
performance of the marketing system.
A) corporate social responsibility
B) direct marketing
C) sustainable marketing
D) free enterprise system
E) strategic planning
Answer:
The PLC concept can be applied by marketers as a useful framework for describing
how ________.
A) competitors' moves are predicted
B) marketing strategies are developed
C) products and markets work
D) concept testing is conducted
E) product ideas are developed
Answer:
Charlie Putnam received an e-mail promoting a new financial services institution that
offers surprisingly low mortgage rates. The e-mail simply asked customers to provide
their address, date of birth, social security number, and current mortgage information in
order to receive a free loan quote. Suspicious of the offer, Charlie researched the
company and discovered that the e-mail was a fraud. This is an example of ________.
A) cyberbullying
B) phishing
C) adware
D) spamdexing
E) viral marketing
Answer:
A style is best defined as a ________.
A) currently popular trend in retail goods
B) popular consumer taste at a given time
C) temporary period of unusually high sales
D) short-term component of the marketing mix
E) basic and distinctive mode of expression
Answer:
Which of the following is the practice of inviting broad communities of customers,
employees, independent researchers, and members of the public into the new product
innovation process?
A) brainstorming
B) idea screening
C) crowdsourcing
D) outsourcing
E) concept testing
Answer:
Which of the following is included in the second part of the marketing strategy
statement?
A) advertising tagline
B) promotional mix
C) planned price
D) customer segmentation
E) operational excellence
Answer:
Business-to-consumer companies are more likely to emphasize a ________ promotion
strategy, while business-to-business companies are more likely to emphasize a
________ promotion strategy.
A) pull; push
B) push; pull
C) pulse; pull
D) blitz; pull
E) push; blitz
Answer:
________ refer(s) to meaningful sets of marketing performance measures in a single
display used to monitor strategic marketing performance.
A) Field automation systems
B) Market segments
C) Market share
D) Marketing dashboards
E) Line extensions
Answer:
The ________ requires sellers to provide detailed nutritional information on food
products.
A) Fair Packaging and Labeling Act of 1966
B) Nutritional Labeling and Educational Act of 1990
C) Glass-Steagall Act
D) Commodity Futures Modernization Act of 2000
E) Federal Trade Commission Act of 1914
Answer:
Which of the following is the lowest level on which marketers can position their brands
in target customers' minds?
A) beliefs and values
B) product benefits
C) product attributes
D) after-sale services
E) brand equity
Answer:
________ involves using in-store promotions and advertising to extend brand equity to
"the last mile" and encourage favorable point-of-purchase decisions.
A) Differentiation
B) Shopper marketing
C) Social media marketing
D) Retailer marketing
E) Segmentation
Answer:
Refer to the scenario below to answer the following question(s).
Reliable Tools Company is a manufacturer of hubs and axles for the trailer and heavy
truck industry. Although Reliable Tools only has 15 customers, the company is the sole
supplier of hub and axle components to those customers. Monthly sales at Reliable
Tools are approximately $1 million. "You might say we have all our eggs in one
basket," says owner Arthur Deetz.
It is critical that a competent sales force be maintained in order to nurture those few but
large accounts. Ninety-five percent of Reliable Tools' customers are located in
Michigan, Ohio, and Indiana, which means that travel time to all customers is relatively
short. However, given the nature of the industry, time spent with each customer is
crucial.
For sales managers to understand how the members of the Reliable Tools sales force
spend their time, the salespeople must submit a(n) ________.
A) expense report
B) time-and-duty analysis
C) mobile conferencing schedule
D) sales forecast
E) incentive plan
Answer:
What types of products do specialty stores carry? Give an example of a specialty store.
Answer:
What should sellers consider if they wish to avoid marketing myopia?
Answer:
Give an example of a cultural shift that may impact the marketing of products or
services.
Answer:
How do intermediaries add value to a marketing system?
Answer:
What are the different brand sponsorship options available to manufacturers?
Answer:
Listing them in the proper order, what are the stages in the buyer decision process?
Describe each.
Answer:
How does online marketing provide flexibility for sellers?
Answer:
Describe a strategic group. Name a few companies that belong to the same strategic
group, and discuss why they are in the same group.
Answer:
Explain how selective retention affects what consumers remember about marketing
messages.
Answer:
Discuss the functions and goals of a competitive intelligence system.
Answer:
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. What is the company's break-even point in dollar sales?
Answer:
How do merchant wholesalers and agents/brokers differ?
Answer:
Define psychographic segmentation.
Answer:
Describe two ways that marketers can participate in online social networks. What are
the challenges and advantages of these approaches?
Answer:
How can companies learn about their competitors' strengths and weaknesses?
Answer:
Define commercialization. Explain two important decisions the company must make
during this stage.
Answer:
How have department stores responded to increased competition by specialty stores and
lower-priced discounters?
Answer:
Explain why the PLC can be applied to more than just brands.
Answer:
Identify and describe the stages in the adoption process.
Answer:
Discuss the differences between the three major sales force structures. What are the
potential benefits of each structure?
Answer:
