Direct marketing seldom occurs on a one-to-one, interactive basis.
Profits drop during the growth stage of the PLC because per customer promotion costs
are high.
The macroenvironment consists of the factors close to the company that affect its ability
to serve its customers, such as suppliers, customer markets, competitors, and publics.
Supermarkets sell a limited selection of goods at deep discounts to consumers who pay
membership fees.
Rachel Stein works for the LeBray Beverage Company. She helps define product
specifications and also provides information for evaluating alternatives. Rachel plays
the role of gatekeeper.
Continuous innovation is a weak response by a company trying to protect its market
share.
The communications process should start with mass media advertising in order to reach
a large number of consumers.
Companies in competition within a strategic group do not compete with other strategic
groups.
A company launching a new product into the market must first decide where to launch
the product.
A marketing channel works most effectively when each channel member performs the
tasks it does best.
Franchises constitute only a small portion of all retail sales in the United States.
Firms that practice product differentiation gain competitive advantage through the way
they design their channel’s coverage, expertise, and performance.
Societal problems are opportunities for alert businesses.
Most successful products are immediately accepted, and quickly move to the growth
stage of the PLC.
Customer relationship management helps manage detailed information about individual
customers and maximize customer loyalty.
Department stores carry narrow product lines with deep assortments within those lines.
With current technology systems, marketers find it simple to access and sift through the
data that is gathered.
Written ethics codes and ethics programs ensure ethical behavior.
Benefit segmentation requires finding the major benefits people look for in a product
class, the kinds of people who look for each benefit, and the major brands that deliver
each benefit.
The Children’s Online Privacy Protection Act requires online operators targeting
children to post privacy policies on their sites and notify parents about any information
they are gathering and obtain parental consent before collecting information from
children under age 13.
Product value analysis is an approach to enhancing productivity.
Service companies can differentiate their service delivery by having more able and
reliable customer-contact people.
The affordable method of setting advertising budgets takes into consideration the effects
of promotion on sales.
Influencers often help define specifications and also provide information for evaluating
alternatives.
Many company and brand Web sites also serve as online brand communities, where
customers can congregate and exchange brand-related interests and information.
Small businesses and not-for-profit organizations can collect a significant amount of
information at very little cost by researching online. They can also use observation and
informal surveys effectively.
Internal databases usually can be accessed more quickly and cheaply than other
information sources.
Acquisition involves the purchase of a whole company, a patent, or a license to produce
someone else’s product.
Marketing channel management calls for selecting, managing, and motivating
individual channel members and evaluating their performance over time.
Companies need to respond to a competitor’s price change if its own market share and
profits will decrease because of the change.
When a manufacturer seeks a market for by-products and accepts a price that covers
more than the cost of storing and delivering those by-products, the manufacturer is able
to reduce the main product’s price to make it more competitive.
While advertisers can accurately measure the communications effects of their ads,
measuring sales and profit effects are more difficult.
The business marketer normally deals with far fewer but far larger buyers than the
consumer marketer does.
The single most important demographic trend in the United States that marketers should
understand is the changing family structure of the population.
A market is the set of actual and potential buyers of a product or service.
Corporate identity materials help create a corporate identity that the public immediately
recognizes.
Sense-of-mission marketing means that the company should define its mission in broad
social terms rather than narrow product terms.
A company should strive to build a brand name that becomes identified with the
product category, as Scotch Tape did.
A company’s mission statement provides the depth needed for all segments of the
company to reach their goals.
A business’s suppliers are the most important actors in the company’s
microenvironment.
Which of the following is true of value-based pricing?
A) The targeted value and price drive decisions about what costs can be incurred and
the resulting product design.
B) Value-based pricing is mostly product driven.
C) Value-based pricing involves setting prices based on the costs of producing,
distributing, and selling the product plus a fair rate of return for its effort and risk.
D) The marketer usually designs a product and marketing program and then sets the
price.
E) A company using value-based pricing designs what it considers to be a good product,
adds up the costs of making the product, and sets a price that covers costs plus a target
profit.
Companies need to know each competitor’s product quality, features, and mix; customer
services; pricing policy; distribution coverage; sales force strategy; and advertising and
sales promotion programs. These are all the dimensions that identify ________ groups
within the industry.
A) target
B) focus
C) control
D) strategic
E) experimental
Which of the following refers to the process of dividing a market into distinct groups of
buyers with different needs, characteristics, or behaviors?
A) market diversification
B) market segmentation
C) downsizing
D) customer relationship management
E) prospecting
A value marketer is most likely to ________.
A) offer consumers superior quality of goods and services at a very high price
B) offer consumers only those products that are associated with status and prestige
C) offer consumers low quality goods and services at very low prices
D) offer consumers a balanced combination of product quality at a fair price
E) deny discounts to consumers to increase profits
Which question should most likely be answered by all companies due to the rapid move
toward globalization?
A) How should we eliminate domestic competition?
B) Should we diversify in a new business area in the home country?
C) Who will our global competitors be, and what are their strategies and resources?
D) How should we fulfill our environmental obligations?
E) Which medium of advertising should we use in our home country?
Which of the following is most critical for successful niching?
A) catering to global markets
B) buzz marketing
C) follow-up
D) specialization
E) mass appeal of one idea
In a(n) ________ economy, fast growth in manufacturing results in rapid overall
economic growth.
A) industrial
B) industrializing
C) materials exporting
D) subsistence
E) agrarian
One of the message structure issues that a marketer must handle is whether to
________.
A) present the strongest arguments first or last
B) make a moral appeal or not
C) use the pull strategy or push strategy
D) diversify vertically or horizontally
E) use mass marketing or niche marketing
Campbell Soup recently joined forces with Hong Kong-based Swire Pacific to form an
entity called Campbell Swire to better distribute the company’s soups in China. This is
an example of ________.
A) licensing
B) contract manufacturing
C) management contracting
D) joint ownership
E) indirect exporting
Which of the following kind of organization best represents a contractual association
based on some unique product or service, a method of doing business, or a trade name
or goodwill?
A) corporate chain
B) franchise
C) voluntary chain
D) retailer cooperative
E) warehouse club
A ________ firm is one that, by operating in more than one country, gains marketing,
production, research and development, and financial advantages that are not available to
purely domestic competitors.
A) global
B) domestic
C) federally chartered
D) direct investment
E) free trade zone
Coffee, tea, cotton, and tobacco are the main exports of Uganda. It is most likely that
Uganda has a(n) ________ economy.
A) subsistence
B) marketing
C) merchandise exporting
D) raw material exporting
E) industrializing
Mission statements should ________ and be defined in terms of ________.
A) be technology oriented; meeting the self-actualization needs of customers
B) be product oriented; satisfying the esteem needs of customers
C) embody the company’s short-term plans; current opportunities
D) be market oriented; satisfying basic customer needs
E) address sales and profits; the net return on investments
Which of the following is the final step of the marketing research process?
A) developing the research plan
B) implementing the research plan
C) interpreting and reporting the findings
D) selecting a research agency
E) defining the research objectives
________ means that consumers are likely to remember good points made about a
brand they favor and forget good points made about competing brands.
A) Selective attention
B) Selective retention
C) Cognitive dissonance
D) Selective distortion
E) Cognitive bias
If a large retailer sold numerous items below cost with the intention of punishing small
competitors and gaining higher long-run profits by putting those competitors out of
business, the retailer would be guilty of ________.
A) price collusion
B) price fixing
C) predatory pricing
D) competitive pricing
E) penetration pricing
A country’s ________ shapes its product and service needs, income levels, and
employment levels.
A) international trade system
B) income distribution
C) industrial structure
D) political structure
E) foreign exchange system
________ are consumer products and services with unique characteristics or brand
identification for which a significant group of buyers is willing to make a special
purchase effort.
A) Shopping products
B) Unsought products
C) Specialty products
D) Capital items
E) Convenience products
When a company sets a high price for a new product with the intention of reducing the
price in the future, it is using the ________ pricing strategy.
A) market-skimming
B) cost-plus
C) market-segmentation
D) market-penetration
E) competitive
A(n) ________ shows how much time is spent selling, traveling, waiting, taking breaks,
and doing administrative chores by the salesperson.
A) customer relationship management tool
B) corporate social networking site
C) time-and-duty analysis tool
D) outsourcing relationship management tool
E) product lifecycle management analysis
In a(n) ________ situation, the buyer wants to revise product specifications, prices,
terms, or suppliers.
A) reverse auction
B) straight rebuy
C) new task
D) modified rebuy
E) absolute auction
To carefully integrate and coordinate the company’s many communications channels
and produce greater sales impact, some companies appoint a(n) ________.
A) idea champion
B) marketing communications director
C) sales representative
D) business analyst
E) media planner
________ are huge unenclosed shopping centers consisting of a long strip of retail
stores, including at least one large, freestanding anchor store like Walmart. Each store
has its own entrance with parking directly in front for shoppers who wish to visit only
one store.
A) Shopping malls
B) Power centers
C) Superstores
D) Chain stores
E) Regional shopping centers
________ are ambassadors who enthusiastically share their passion for a company’s
products with large circles of friends and acquaintances.
A) Leading adopters
B) Brand evangelists
C) Surrogate consumers
D) Market mavens
E) Innovators
In this scenario, which of the following had the greatest influence on the business
buying behavior at Alpha Stampings?
A) individual preferences
B) organizational structure
C) interpersonal influences
D) technological changes
E) cultures and customs
Which of the following is a disadvantage of using secondary data?
A) Secondary data is generally not appropriate for consumer products.
B) Collecting secondary data is time consuming.
C) Few sources exist for secondary data.
D) Gathering secondary data is costly.
E) Relevant secondary data can be difficult to locate.
________ occurs when two established brand names of different companies are used on
the same product.
A) Market diversification
B) Niche marketing
C) Co-branding
D) Licensing
E) Cannibalization
The ________ concept is specifically focused on the future welfare of consumers.
A) strategic planning
B) direct marketing
C) societal marketing
D) consumer business
E) telemarketing
Which of the following is true about the sales force of a company?
A) Salespeople rely on engineers and manufacturers to learn about customer needs.
B) The sales force plays a minor role in customer-company relationships.
C) Salespeople rarely visit in person with customers.
D) Salespeople represent customers to the company, championing customers’ interests.
E) Salespeople do not have the authority to act on customers’ objections.
Richard, a salesperson, works for Wellington Steelworks. After researching a qualified
lead, Richard is preparing opening lines for meeting the customer for the first time.
Which step of the selling process is he about to enter?
A) follow-up
B) handling objections
C) approach
D) presentation
E) preapproach
The proposed right to ________ includes the right to know the unit pricing, the
ingredients in a product, the nutritional value of foods, product freshness, and the true
benefits of a product.
A) charge any price for the product
B) be protected against questionable products
C) influence products and marketing practices in ways that will improve “quality of
life”
D) expect the product to perform as claimed
E) be well informed about a product
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
The challenge posed by a(n) ________ product is to add some pleasing qualities so that
they will become more desirable in consumers’ minds.
A) deficient
B) pleasing
C) desirable
D) innovative
E) salutary
Firms that decide against international expansion to play it safe ________.
A) protect themselves from competition at home
B) gain a competitive edge against imports in their home markets
C) successfully shield themselves from foreign competition
D) risk losing their home markets
E) increase their chances of entering other markets
Identify and describe the three product strategies a company entering a foreign market
can use.
How do the practices of high-low pricing and everyday low pricing differ?
Explain the different segmentation variables used in segmenting consumer markets.
Explain price elasticity. What determines the elasticity of demand?
What factors should a firm consider when selecting intermediaries?
What is a strategic business unit (SBU)?
What are pop-up stores? Provide an example to illustrate your answer.
How do merchant wholesalers and agents/brokers differ?
Explain how storing customer information in a database might better prepare carmaker
Kia in customer relationship management.
Explain how selective distortion is somewhat controllable by a marketer.
What are the different dimensions of a company’s product mix? Briefly describe each
dimension.
Why is the consumer’s field of experience important to a marketer?
Discuss how small businesses and not-for-profit organizations can obtain market
insights economically.
Briefly explain why marketers need marketing research in addition to competitive
marketing intelligence.
Describe the largest form of online advertising.
What is the role of a salesperson in a territorial sales force structure?
Describe the four major steps in media selection.
What is SWOT analysis?