A company should strive to build a brand name that becomes identified with the
product category, as Scotch Tape did.
The government market consists of schools, hospitals, nursing homes, prisons, and
other institutions that provide goods and services to people in their care.
Corporate identity materials help create a corporate identity that the public immediately
recognizes.
Social media marketing can be inexpensive for companies to use.
In contrast to distribution centers, storage warehouses are designed to move goods
rather than just house them.
Marketing logistics involves planning, implementing, and controlling the physical flow
of goods, services, and related information from points of origin to points of
consumption to meet customer requirements at a profit.
Continuous innovation is a weak response by a company trying to protect its market
share.
In the performance review stage, the seller or the buyer may modify, continue, or cancel
the business arrangement.
For market skimming to be successful, the costs of producing a smaller volume cannot
be so high that they cancel the advantage of charging more.
If a firm moves into joint ventures and direct investments, it will eventually need to
create an export department.
Attributes are the most desirable level for brand positioning because competitors can
easily copy attributes.
Using the PLC concept to develop marketing strategy can be problematic because
strategy is both a cause and a result of the product’s life cycle.
The total financial value of a brand is brand value.
The societal marketing concept calls on marketers to balance consumer wants and
desires, company profits, and society’s interests.
Refer to the scenario below to answer the following question(s).
Jason West, owner of A1 Cleaning, started his enterprise in 2001. Jason’s primary focus
had been on office cleaning for large corporations. But in recent months, Jason has seen
a decline in demand for his office cleaning services. Surprisingly, the competitive
environment appeared relatively stable with no new competitors. However, Jason knew
that office cleaning was a high-frequency service that is usually performed daily;
therefore, competitors must have been doing something to attract his customers.
Building a competitive advantage seemed to be the only option to offset competition.
But as Jason pondered over his dilemma, he realized that prior to building his
competitive advantage he needed to better understand how customers assessed service
quality and what they look for in a superior cleaning service.
Jason developed a research plan. First, he gathered information about his competitors,
primarily through pamphlets and Web sites, as well as through a few phone calls in
order to find out exactly what the competitors offered in their cleaning packages. In
addition, Jason obtained from the Chamber of Commerce an updated list of local
corporations. He planned on sending written questionnaires to them.
Though the list of corporations contained 141 local company names, Jason chose to
survey 75 of them. To better understand customer service expectations between both
small and large corporations, Jason divided his surveys into two categories. The survey
questions were designed to extract specific data from respondents with regard to service
quality expectations in correlation to service frequency and price.
Jason awaited the results. Though his primary focus had been on large corporations, he
was flexible and would aim his efforts differently if needed.
Competitor intelligence can be collected from people inside the company, such as
executives, engineers, purchasing agents, and the sales force, as well as customers.
Product stewardship involves minimizing not only pollution from production and
product design but also all environmental impacts throughout the full product life cycle,
and accepting increased costs.
A company’s Web site can be an important public relations vehicle.
Professional athletes such as Peyton Manning and Maria Sharapova are featured in
advertisements for Gatorade. According to this information, Gatorade is utilizing
branded entertainment.
Wholesaling includes all the activities involved in selling products or services directly
to final consumers for their personal, nonbusiness use.
A company will be at an advantage even if it costs more than its competitors to make
and sell a similar product.
In the general needs description of the buying process, the buyer describes the
characteristics and quantity of the needed item.
A product position is the way a product is defined by consumers on important attributes.
The affordable method of setting advertising budgets takes into consideration the effects
of promotion on sales.
A cigarette is an example of a salutary product.
Alternative evaluation is the process by which people select, organize, and interpret
information to form a meaningful picture of the world.
JumBo Games is in the commercialization stage. The first decision that the firm should
make while introducing the product in the market is introduction timing.
For a company to be both environmentally sustainable and profitable is very difficult as
the environmental goals and standards have a negative impact on a company’s expenses
and profitability.
A product line consists of unrelated products that are sold to diverse customer groups.
A market-centered company most likely has a stronger competitor and customer focus
than a customer-centered company.
Self-service retailers serve customers who are willing to perform their own
locate-compare-select process to save time or money.
Sales promotion involves building up a good corporate image, and handling or heading
off unfavorable rumors, stories, and events.
Sellers cannot influence or use consumers’ reference prices when setting their product
prices.
Consumers who have no past experience with a product are more likely to judge it by
its price.
The adoption process for new products refers to the mental process through which an
individual passes from first learning about an innovation to final adoption.
With technology advances making it simple to contact many customers at once,
companies have moved toward mass marketing over target marketing.
The life cycle of new retail forms is getting longer.
The message execution style of personality symbol involves identifying and presenting
ordinary people saying how much they like a product.
When segmenting by user status, markets are segmented into light, medium, and heavy
product users.
Which of the following is an example of an industrial economy?
A) Japan
B) China
C) Vietnam
D) India
E) North Korea
In conducting ________, the company first identifies the major attributes that
customers value and the importance customers place on these attributes. Next, it
assesses its performance against competitors on those valued attributes.
A) a customer value analysis
B) benchmarking
C) entrepreneurial marketing
D) intrepreneurial marketing
E) a customer lifetime value estimate
________ involves adding more items within the present range of the product line.
A) Market diversification
B) Brand extension
C) Product line filling
D) Upward product line stretching
E) Downward product line stretching
Foreign businesses in India appear to receive unusually close scrutiny and special
regulations, aimed at protecting the local businesses. This is an example of a(n)
________.
A) nontariff trade barrier
B) tariff
C) boycott
D) exchange control
E) quota
The management of two Panizza restaurants has an ongoing disagreement over the
discount rate given to students from the local high school. This is an example of
________ conflict.
A) intensive
B) selective
C) exclusive
D) horizontal
E) vertical
________ marketing involves activities undertaken to create, maintain, or change
attitudes toward particular cities, states, or regions.
A) Idea
B) Place
C) Organization
D) Social
E) Interactive
Which of the following is most likely a result of regulations set up by the Food and
Drug Administration and the Consumer Product Safety Commission?
A) The time between new product ideas and their introduction to the market has
decreased.
B) Annual spending on research and development has decreased.
C) Research costs for companies have risen.
D) Product innovation has significantly declined.
E) Marketers have grown increasingly apathetic toward meeting safety standards.
The following quote best describes ________. “The marvels of modern technology
include the development of a soda can which, when discarded, will last forever, and a
car, which when properly cared for, will rust out in two or three years.”
A) planned obsolescence
B) product failure
C) deceptive promotions
D) deceptive packaging
E) excessive markups
The boom in Internet marketing has created a new set of social and ethical issues.
Critics worry most about ________.
A) accessibility
B) puffery in advertising
C) online privacy issues
D) sustainability
E) issues pertaining to efficiency
Differences between business markets and consumer markets include all of the
following EXCEPT ________.
A) nature of the buying unit
B) market structure and demand
C) number of buyers
D) people who make purchase decisions to satisfy needs
E) types of decisions and the decision process
________ involves planning, implementing, and controlling the physical flow of goods,
services, and related information from points of origin to points of consumption to meet
customer requirements at a profit.
A) Advertising
B) Product positioning
C) Mass customization
D) Marketing logistics
E) Branding
Which of the following companies has a product-oriented business definition?
A) A luxury hotel, whose business definition is: “We sell out-of-the-world experiences
to our guests.”
B) A real estate company, whose business definition is: “We sell dreams.”
C) A cosmetic company, whose business definition is: “We offer hope and
self-expression.”
D) A shoe manufacturer, whose business definition is: “We manufacture affordable and
long-lasting shoes for all.”
E) A high-technology company, whose business definition is: “We sell inspirations.”
While there may be many differences between brands, not all are meaningful or
relevant to consumers. Which of the following is NOT a criterion for establishing the
value of a difference to promote?
A) superior; the difference is superior to other ways that customers might obtain the
same benefit
B) affordable; buyers can afford to pay the difference
C) profitable; the company can introduce the difference profitably
D) important; the difference delivers a highly valued benefit to target buyers
E) visually appealing; customers will be able to see and appreciate the difference
A ________ is a group of retail businesses built on a site that is planned, developed,
owned, and managed as a unit.
A) warehouse club
B) franchise
C) shopping center
D) supermarket
E) hypermarket
Which of the following is the first stage in the new product adoption process?
A) awareness
B) adoption
C) evaluation
D) interest
E) trial
________ include displays and demonstrations that take place at the point of sale.
A) Rebates
B) Price packs
C) Premiums
D) POP promotions
E) Samples
Which of the following is NOT one of a wholesaler’s channel functions?
A) financing
B) risk bearing
C) transportation
D) off-price retailing
E) bulk breaking
How are acquisitions good for society?
A) Acquisitions eliminate barriers to entry.
B) Acquisitions require little government oversight.
C) An acquiring company may improve the efficiency of an acquired company.
D) An industry may become less competitive after an acquisition.
E) The acquisition may result in higher costs, leading to higher prices for consumers.
Among the buyer-readiness stages, the first stage is ________.
A) preference
B) knowledge
C) liking
D) awareness
E) insistence
________ measures the profits generated by investments in marketing activities.
A) A SWOT analysis
B) A marketing audit
C) Regression analysis
D) Return on marketing investment
E) Marketing budget evaluation
Major logistics functions are logistics information management, inventory
management, transportation, and ________.
A) advertising
B) product design
C) financial projections
D) warehousing
E) customer sales
All of the following are difficulties associated with selling to government buyers
EXCEPT ________.
A) excessive paperwork
B) bureaucracy
C) strict regulations
D) high advertising costs
E) decision-making delays
Refer to the scenario below to answer the following question(s).
Alden Manufacturing produces small kitchen appliances—blenders, hand mixers, and
electric skillets—under the brand name First Generation. Alden attempts to target
newlyweds and first-time home buyers with this brand.
Considering that most young households have limited financial resources, Alden
attempts to engage in target costing. “In doing this,” says Milt Alden, the co-founder of
Alden Electronics, “we have better control over keeping price right in line with
customers.”
Alden manufactures a three-speed blender, its top seller, along with a five-speed
blender. The hand mixers are manufactured in two variants—a small handheld mixer
with two rotating beaters and another that comes with an optional stand and an attached
mixing bowl. Alden’s temperature-controlled skillets are manufactured in a single style
with three color options.
“Our product offerings are narrower,” Milt Alden added, “but our line workers know
each product like the back of their hands. This allows us to produce superior products
while holding our prices low.
Milt Alden uses which of the following strategies for pricing his products?
A) basing company price on competitors’ prices
B) using everyday low pricing
C) initiating an aggressive promotional campaign
D) starting with customer-value considerations
E) focusing on overall fixed costs of manufacturing
Electrola Inc. is currently designing a new product line with the goal of making each
product easy to recover, reuse, or recycle. Electrola Inc. hopes to recover many of these
products when they reach the end of their life cycle and reuse their components in new
products. Electrola Inc. is in the ________ stage of environmental sustainability.
A) pollution prevention
B) new clean technology
C) product stewardship
D) beyond greening
E) sustainability vision
________ is an approach in which all the company’s people are involved in constantly
improving the quality of products, services, and business processes.
A) Business intelligence
B) Quality function deployment
C) Total quality management
D) Brand equity management
E) Product positioning
Brand ________ refers to how highly consumers regard and respect the brand.
A) esteem
B) conformance
C) differentiation
D) relevance
E) knowledge
Why does direct-mail marketing most likely remain a popular promotional tool for
marketers?
A) It does not disturb consumers enrolled in the Do Not Call Registry.
B) It provides something tangible for people to keep.
C) It builds long-term customer relationships.
D) It involves very low marketing costs.
E) It reaches the consumer very quickly.
Which is NOT part of the company environment that influences marketing decisions?
A) accounting
B) engineering
C) manufacturing
D) sales
E) retailers
Which message execution style depicts average people using a product in an everyday
setting?
A) lifestyle
B) scientific evidence
C) slice of life
D) personality symbol
E) testimonial evidence
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
Which of the following would a marketer LEAST likely do to encourage habitual
buying behavior?
A) dominate shelf space
B) run frequent reminder ads
C) keep shelves fully stocked
D) stress unique features in ads
E) offer lower prices and coupons
When a company makes improvements in a product’s quality, features, or convenience,
it is practicing ________.
A) consumer-oriented marketing
B) sense-of-mission marketing
C) innovative marketing
D) customer-value marketing
E) societal marketing
________ refers to the process of putting thought into symbolic form.
A) Sending
B) Encoding
C) Decoding
D) Receiving
E) Feedback
What type of strategy should a company use to manage its cash cows?
Compare a conventional distribution channel with a vertical marketing system (VMS).
Briefly describe competitive advantage.
Describe some of the methods used to supervise salespeople and help them work more
efficiently.
Why is reach an important measure for a marketer?
What does the proposal solicitation stage of the business buying process involve?
Briefly explain local and individual marketing.
Outline the steps in developing effective marketing communications.
Why is it important for companies to understand cultural differences and nuances
before entering a foreign country’s market? Give two examples of cultural differences
that would be important for a company to know.
The background for the QuickRelief allergy medication ad appearing in the magazine
Better Homes and Gardens shows green grass and lovely flowers. The headline states
“QuickRelief is 54% more effective than the leading prescription.” At the bottom of the
ad, in small print, is an explanation of how the effectiveness of QuickRelief was
determined. The ad also shows a package of QuickRelief so consumers can easily
recognize it at the store. Identify the different components of the communication model
for this advertisement.
What are the differences between innovators, early adopters, and early mainstream
adopters?
How can firms that use new direct marketing technologies avoid backlash from
consumers who view such marketing as an invasion of privacy?
What are the components of a company’s marketing mix?
Describe any three message execution styles.
What are the noneconomic criteria that influence government buying?
What is a “public” in terms of the marketing environment? In a short essay, briefly
describe the different types of publics that marketers must consider and explain how
marketing might communicate with these publics.
Describe the significance of public relations as a promotion tool.
Listing them in the proper order, what are the stages in the buyer decision process?
Describe each.
Describe the five sustainable marketing principles.
