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Ana's mixed-paper processing equipment has malfunctioned, and the repair will take 48 hours. A competitor is contacted for assistance. Ana offers to pay a premium for 48 hours of processing time while continuing to charge clients the standard price for the processing without any additional fees. Which customer satisfaction concept is Ana ensuring by managing the problem in this manner? Establishing customer goals Customer-focused budgeting Customer empowerment Delivering on customer expectations

Delivering on customer expectations Correct! Ana is delivering the same product regardless of what the short-term costs are for processing at a competitor's facility. The focus of customer satisfaction is to meet or surpass customer expectations.

A sales manager uses market research to examine a geographic area the company wants to consider for expansion. What is a benefit of this market research? Determine marketing budget. Select products for development. Identify potential liabilities. Determine likely customers.

Determine likely customers. Correct! One benefit of marketing research is determining potential customers. Marketing research can be used to determine the population most likely to use the product.

The chief marketing officer (CMO) has been tasked with developing a comprehensive marketing plan for communications with suppliers, investors, customers, and communities. The CMO asks an individual to make sure that business communications have a unified message and that they exhibit sensitivity to the cultural practices of the locations where the business operates. Which step of the marketing planning process is illustrated by this request? Developing marketing strategy Conducting situation analysis Identifying mission statement Defining communication objectives

Developing marketing strategy Correct! The marketing strategy defines how the marketing mix (product, price, place, and promotion) can be best used to achieve the marketing objectives. At its center is the target customer. The target stakeholders for the marketing plan have been identified: suppliers, investors, customers, and communities. The CMO has yet to decide on the communications, a marketing objective.

Charlie tasks the chief marketing officer (CMO) with developing and communicating a marketing brand and vision that will win over new customers for the new electric battery. The CMO decides to design various promotions for each major market area based on the variance in electric car vehicle usage. Which targeting strategy is this CMO using? Differentiated Concentrated Micromarketing Undifferentiated

Differentiated Correct! A differentiated marketing strategy is one in which the company decides to provide separate offerings to each different market segment that it targets. The CMO will provide different promotions to each major market area, so the company will provide unique benefits to different segments.

A company makes customized office chairs that are sold only through its website. What type of distribution channel is the company using? Indirect Agent-broker Direct Supply chain

Direct Correct! The scenario describes the distribution of the product directly from the manufacturer to the consumer. This scenario describes a direct distribution channel.

Products being sold from producers to end users without intermediaries.

Direst Distribution

A marketing entity through which goods and services pass through on their way from producers to end users.

Distribution Channel

The purchasing manager for a large auto parts company enters into every negotiation from the position of the possibility of personally winning something and the salesperson having to lose something. Which negotiation approach is this manager demonstrating? Integrative Inductive Distributive Deductive

Distributive Correct! This is an example of the distributive view of negotiation, where one side believes that for it to win, the other side must lose. This is the winner-takes-all view.

Which growth strategy utilizes new markets with new products using the strategic opportunity matrix? Market penetration Market development Diversification Product development

Diversification Correct! A diversification strategy relates to new products in new markets.

What is diversification? Diversification increases profitability through greater sales volume obtained from new products and new markets. Diversification ensures that other brands are not confused with the company's brand. Diversification decreases the number of investments a company has in order to vary its portfolio. Diversification ensures that as more employees are hired, equal opportunity hiring practices are followed.

Diversification increases profitability through greater sales volume obtained from new products and new markets. Correct! Diversification seeks to increase profitability through greater sales volume obtained from new products and new markets.

A sales manager is reviewing the current products in the company's portfolio and sees that one product that has been sold for a decade is now the slowest-selling product in a mature industry. Which Boston Consulting Group (BCG) model category could be used for this product? Star Cash cow Dog Question mark

Dog Correct! This product is a dog that is exhausted. It is a product with a low market share in a mature industry, the definition of a "dog" item. There is no room for growth, so there is no reason for further investment.

What is the main ethical responsibility of a salesperson? Doing the right thing for the customer Disclosing all potential design flaws of the product Making the customer profitable Placing company interests above customer interests

Doing the right thing for the customer Correct! Doing the right thing for the customer is the main ethical responsibility of salespeople, regardless of the industry.

A company uses a website to make sales through online ordering.

E-commerce

A large general contractor is having trouble meeting its labor needs, given the low unemployment in the area. The company begins advertising for construction workers in an adjacent state, offering a generous sign-on bonus in an effort to fill open positions. What element of the marketing environment is the company addressing? Social Regulations Economic Competitors

Economic Correct! Economic variables, such as low unemployment, affects how a company markets its products and services.

When preparing a marketing plan, a manager is considering factors such as changing incomes, unemployment levels, inflation, and recession. Which element of the marketing environment is the focus of this manager? Political Promotional Competitive Economic

Economic Correct! The economic environmental factor is described by changing incomes, unemployment levels, inflation, and recession.

Which three items are considered uncontrollable elements? Economic Place Price Technology Product Competition

Economic Technology Competition Correct! Changes in the economy are out of a company's hands. A company cannot control all technological advancements. A company does not have control over its competitors.

Which role in the decision making unit justifies a purchase by linking it to profit? Economic buyer Infrastructure buyer Alternative buyer User buyer

Economic buyer Correct! "This individual is responsible for buying products that enable the company to achieve a business advantage. The economic buyer justifies the purchase by linking it to profit."

The director researches the reason for the community's food insecurity and learns that companies closed during the recent recession and left individuals without jobs. This unemployment has created significant food insecurity among those who remain without stable incomes. Which element of the PEST analysis is the community center responding to by creating its meal program? Economic needs of community citizens Legal requirements for food preparation Tracking food donations using technology Social influencers in the community

Economic needs of community citizens Correct! The economic needs of community citizens is aligned with the "E" component of the PEST analysis, which is the economic analysis. The center is partnering with the food warehouse to create fresh meals three times a day for those citizens who are food insecure.

What is the meaning of the term "uncontrollable elements"? Elements associated with branding strategies Elements that do not satisfy customers' needs and wants Elements that are outside of a marketer's control Elements in design and delivery of products

Elements that are outside of a marketer's control

A store has a policy that all customer-facing employees can give away one $5 flower bouquet a day to customers who they feel need a bright spot in their day. Which aspect of customer satisfaction is being demonstrated by this store policy? Engagement Marketing Overdelivering Empowerment

Empowerment Correct! Empowering employees to drop what they are doing to do something special for a customer can certainly delight customers and is the type of action illustrated in the scenario.

Which individual in the buying center is the product intended for when a B2B purchase is completed? Initiator Buyer Gatekeeper End user

End user Correct! End users are individuals at an organization who will use the product or service purchased.

Andie was successful at pitching to Design Group concerning services because of expertise in business development and the timing of the presentation. Design Group's largest competitor acquired a steel supplier that would drive down its costs of providing steel in architectural design projects and that would make Design Group less competitive on projects using steel construction. What type of factor contributed to Design Group's work with Andie? Interpersonal Regulatory Environmental Organizational

Environmental Correct! Design Group was being pressured to react to a competitor's acquisition of a steel supplier, and working with Andie provides an opportunity for the firm to construct a competitive strategy.

An organization lost sales because a competitor introduces a compelling new product feature. In response, managers at the organization are anxious to move forward with a project or purchase that can help them regain a competitive edge. Which factor contributes to a Business to Business (B2B) purchase decision in this situation? Environmental Organizational Governmental Interpersonal

Environmental Correct! There is a factor in the external environment. For example: the competitor's successful new product that spurs the company's purchasing to regain a competitive edge.

A customer has contacted a company for buying a car and is asking questions about gas mileage and performance. The company's representative is careful to provide appropriate prepurchase information to the potential customer. Which piece of information should be transferred to a customer at this stage of communication? Setting low expectations Establishing ideal expectations Establishing appropriate expectations Setting high expectations

Establishing appropriate expectations Correct! Setting the customer's expectations at or slightly lower than the expected experience will create customer satisfaction.

A consumer is willing to pay more for cosmetics that are guaranteed to be cruelty-free because they avoid animal testing. Which principle is guiding this decision? Ethical consumerism Boycott purchase Globalization purchase Supply chain transparency

Ethical consumerism Correct! Ethical consumerism is a type of consumer activism based on the concept of dollar voting practiced through positive buying. The consumer's willingness to purchase the higher-cost product illustrates this concept.

The customer asks how the retailer will dispose of the old appliances currently located in the space where the new outdoor kitchen will be located. The question stems from a desire to make future purchase decisions based on which companies actively recycle. What kind of decision-making is being used by this customer? Boycott Fair trade Supply chain transparency Ethical consumerism

Ethical consumerism Correct! Ethical consumerism occurs when a customer intentionally purchases from companies that follow ethical practices. This customer will make future purchase decisions about appliances based on how this retailer recycles old appliances, which represents an intentional focus on purchasing using ethical consumerism.

Which stage of the consumer decision-making process is skipped with low-involvement product purchases? Buy Act Post-purchase Evaluation

Evaluation Correct! For low-involvement decisions, consumers may move from need recognition to a purchase decision and skip search and evaluation steps.

A consumer is ready to purchase a new car. Safety, reliability, and cost are the primary needs for this purchase. The consumer goes to a local auto dealership and test drives several cars that meet the criteria. Which step of the buying process is illustrated by this consumer's actions? Opportunity Search Decision Evaluation

Evaluation Correct! Test driving cars is part of the evaluation phase. During the evaluation step, the consumer will consider the qualities of the purchases and rank options in his or her mind.

A consumer owns a smoker grill and needs to purchase a bag of charcoal to use when cooking for a family event. The consumer goes to the store and picks up the brand of charcoal that was used in the past. What kind of decision-making influence is being used by this consumer? Nonexperiential learning Experiential learning Reinforcement process Selective perception

Experiential learning Correct! Experiential is based on something the consumer knows or has experience with already. The consumer had used this brand of charcoal before and is using it once more.

Which attribute represents qualitative research? Allowing researchers to test and validate a hypothesis Exploring ideas, perceptions, and behaviors in depth Calculating the exact percentage of people surveyed Collecting data that can be counted, tabulated, and analyzed

Exploring ideas, perceptions, and behaviors in depth Correct! Qualitative research explores ideas, perceptions, and behaviors in depth with a relatively small number of research participants.

An individual is in the market to purchase a new guitar. The instrument will be a high-priced item. It is a once-in-a-lifetime event and likely to last a lifetime. Due to the serious nature of the purchase, the individual spends a few weeks researching features, price, warranty, and reads reviews to help inform the buying decision. What type of problem-solving behavior is this individual exhibiting? Routine Extended Involvement Limited

Extended Correct! This buyer is making a serious and expensive purchase that will be part of their life for a long time. Because of the situation, the buyer researched various areas of the product and solicited advice and product reviews, all characteristics of extended problem-solving.

A marketing department is reviewing a recent SWOT analysis and notes entries for economic and social trends. What kind of forces are being reviewed during this process? Market External Internal Consumer

External Correct! The forces listed are external to the organization. They may be influenced but are not fully under the organization's control.

What will be the purpose of this farmer's personal selling process? Explain the focus on sustainable farming. Facilitate an exchange with restaurant owners. Discuss association membership. Identify the business to customer prospects.

Facilitate an exchange with restaurant owners. Correct! The goal of personal selling is to facilitate an exchange with potential customers. Jake's potential customers are restaurant owners interested in buying organic produce.

All of a company's employees were required to complete a survey. Which ethical consideration has the company violated? Practicing discrimination Asking leading questions Stereotyping Failing to get consent

Failing to get consent Correct! Because the company is requiring employees to submit, employees are compelled to respond and have no choice or consent.

A marketing manager wants to engage customers face-to-face in a setting where the individuals have the opportunity to voice their opinions and suggestions. What type of marketing research technique is being used by this manager? Focus group Ethnographic research Survey instrument research Social media listening

Focus group Correct! A focus group is an opportunity to meet with customers face-to-face and gain direct feedback. It is a "primary marketing research technique using small groups to delve deeply into a topic of interest."

A customer visits a high-end retail electronic store to purchase a laptop he researched online. Before purchasing, the customer asked the salesperson about the risk of the laptop battery overheating. The salesperson shares the features and benefits of the product with him, focusing in on the design capabilities of the laptop, and recommends the laptop. The person leaves thinking his purchase went smoothly and he is receiving full value for the product. Which practice did the salesperson use in this transaction? Promoting the strongest aspect of a product through hard selling Focusing on the features of the product while withholding product risks Promoting a product that was designed with planned obsolescence Pitching a product as a solution to multiple objective needs

Focusing on the features of the product while withholding product risks Correct. In this case, the salesperson focused on the features and benefits of the laptop, and customized the pitch to the person's specific business needs. However, the salesperson knew that some of the laptops in the person's desired laptop category had been recalled for overheating and he recognized that the person needed the laptop to be on 24/7. Failing to disclose the product risks, even if only 1% of the laptops had been recalled, constitutes an unethical practice.

A salesperson visits a customer to make sure the customer is satisfied with the purchase of the product. What step in the sales process is the salesperson completing? Handling objections Demonstrating the product Following up Closing

Following up Correct! After the product is delivered to the customer, the salesperson makes a routine visit to see that the customer is satisfied. This follow-up call may also be a chance to make another sale. Repeat sales over many years are the goal of professional salespeople.

Andie is finalizing a second contract with Design Group and needs to know what resources that must be provided while on-site at the new work location. The CEO asks Andie to work directly with a project manager to share information on a need-to-know basis. Which role is the project manager performing in this process? Initiator End user Gatekeeper Influencer

Gatekeeper Correct! The gatekeeper controls the flow of information in an organization, and Design Group's resources will be identified by the project manager.

In the marketing mix, what is the meaning of the term "product"? Goods or services that meet customers' needs Shorthand for production line Marketing materials of the company Materials used in manufacturing

Goods or services that meet customers' needs Correct! Products have unique set of features, design, name, and brand that are focused on target customers.

Jake's meeting with a local farm-to-fork restaurant owner presented a new challenge. When asked about how well the produce performed compared to produce that was genetically modified or treated with pesticides, the farmer was unsure of how to respond. Which stage of the selling process does Jake need to work on before following up with this potential customer? Approaching customers Prospecting and qualifying Closing the sale Handling objections

Handling objections Correct! Jake is unsure of how to respond to reasonable questions during the presentation. This is a skill that should be developed for the best results in the future.

Jake is under pressure from investors to sell $1,000,000 in produce by the year's end. The plan is to meet with each of the customers and persuade one customer to purchase 100 towers of produce for the next month. The farmer will pressure the customer to purchase in 24 hours or offer the sale to a competitor instead. Which kind of unethical approach will Jake be using? Planned obsolescence Bait and switch Pyramid scheme Hard selling

Hard selling Correct! Hard selling is high-pressure selling focused on persuading the customer to close the sale or lose something of value. Jake will be pressuring a customer to buy or lose to a competitor.

A consumer feels that a decision is worth the time and energy needed to perform research so alternatives can be evaluated. What type of decision is being made by this consumer? Routine problem-solving Self-actualization Low-involvement High-involvement

High-involvement Correct! A high-involvement decision is very important to the buyer and may pose risk, therefore it is worth the time and energy needed to perform research and evaluate alternatives.

A car buyer spent a great deal of time and money evaluating various manufacturers' options and ultimately decided to purchase a particular brand of car. After the purchase, the buyer was satisfied with the choice and talked about the new car's style in a positive manner to family and friends. What type of decision-making is being used by this individual? Self-actualization Self-preservation Low-involvement High-involvement

High-involvement Correct! The buyer spent a great deal of time and money while preparing for this purchase. The purchase description in the scenario indicates that all the steps of the buying process for a high-cost item were completed and, at an intense level, indicates characteristics of high-involvement decisions.

A company focuses on B2B transactions. Who is the customer for this type of business? The CTO for a company looking for a vacation package for their family A college buying laptops for an incoming freshman class The CEO of a name brand company buying a new personal cellphone A college student buying their books for school

A college buying laptops for an incoming freshman class Correct! A college buying laptops for their students is one business (or other type of entity) that is purchasing products from another business. B2B stands for "business-to-business" and involves sales to another company that consumes the product or services as part of operating the business or uses the product in the assembly of the final product sold to consumers.

What is a company's market share? A company's total advertising budget on a specific medium A company's public image rating relating to environmental issues A company's percentage of the total sales in an industry A company's presence in a trade show offering

A company's percentage of the total sales in an industry Correct! Market share is a company's percentage of the total sales in a particular market. The total sales can be measured in units sold, or total revenue can measure marketing share.

Which scenario represents personal selling? The marketing team collaborates with the sales organization to develop appropriate tools for advertising. A customer orders a product online using a website. A customer goes to a pet store and discusses the best type of turtle food with a salesperson. The marketing department uses the four Ps to determine the brand message.

A customer goes to a pet store and discusses the best type of turtle food with a salesperson. Correct! The customer is having a personal conversation with the sales person. There are six steps in the personal selling process, and this is one of the steps in the process in allowing the salesperson to demonstrate their knowledge.

What is an example of a marketing activity? A sales associate liquidating inventory An executive reporting on stock performance An engineer conducting quality control review A manager conducting research on potential customers

A manager conducting research on potential customers Correct! A marketing concept is defined as the use of marketing data to focus on the needs and wants of customers in order to develop marketing strategies that not only satisfy the needs of the customers, but also accomplish the goals of the organization

The chief financial officer (CFO) is reviewing expenditures and notes that purchases have increased significantly since the new purchasing manager was hired. After some investigation, the CFO realizes that the purchasing manager seems to approve any and all purchases without challenging the expenditure. Based on the model of dual concern theory, which conflict handling style is being exhibited by the purchasing manager? Avoidance Competition Compromise Accommodation

Accommodation Correct! The accommodation style of conflict management often avoids conflict by allowing the other party's goals to supersede their own. This is the "give-in" style of negotiation.

An individual clicks on a link to request more information about a product. A salesperson emails the prospect information and pricing and then offers to call with more information. Which stage of the customer life cycle does this series of actions illustrate? Reach Conversion Acquisition Retention

Acquisition Correct! This is the point in the customer life cycle where the seller is endeavoring to bring the prospect closer to the conversion stage. Acquisition is the stage of the customer lifecycle where the seller is endeavoring to pull the prospective customer into their sphere of influence.

Jake is revising a sales presentation based on new information concerning his customers. The new presentation will now focus on what the current customers want to know about the produce, its shelf life, and its nutrient profile. Which trend is Jake integrating into the presentation? Adaptive selling Social networking Internet of things Integrated marketing communications

Adaptive selling Correct! Adaptive selling customizes selling styles based on the customer. Jake is designing a presentation around the current customer's interest in the produce, its shelf life, and its nutrient profile.

A CEO needs solutions to specific problems in the company and contracts with a consulting company to conduct primary research and provide recommendations. What is a benefit of this type of research to the CEO? Rapid turnaround Inexpensive cost Uses data that are already available Addresses the organizational issues

Addresses the organizational issues Correct! Primary data may directly address the needs and concerns of the researcher. "Primary data directly address the problems or challenges of interest to you."

Ana, the owner of a trash processing business, has formed an alliance with Company B on a joint venture. The two companies plan on creating a video documenting how they have increased Company B's sales. Ana hopes the video will help secure new commercial mixed-paper processing contracts. Which stage of the customer life cycle reflects Company B's relationship with Ana? Acquisition Advocacy Conversion Retention

Advocacy Correct! Company B is in the advocacy stage, as shown by the firm's willingness to create a testimonial video for the owner's business.

Which presentation format tends to be the most successful in building a salesperson-customer bond? A structured presentation An unstructured presentation A fully automated presentation A canned presentation

An unstructured presentation Correct! This type of presentation is based on listening to customers and asking questions tailored to their needs and wants.

Ana's business has been awarded two contracts for mixed-paper processing and wants to learn more about which packaging clients want. Ana is hoping that the data will guide how to better market the company's services. Which benefit to the customer relationship does Ana hope to achieve by using this strategy? Cooperative Collaborative Analytical Operational

Analytical Correct! Ana is looking for patterns from data to uncover what customers expect from the mixed-paper processing business.

A manager gives feedback to a team that their core customers were very satisfied. Which benefit to customer relationship management (CRM) is being used by this manager? Collaborative Operational Communicative Analytical

Analytical Correct! Analytical benefits use data to understand who the company's core customers are, how they behave, what they are looking for, and how satisfied they are.

A person has used their desktop computer to search for information on a household appliance they are considering purchasing. Within a few minutes, information from the person's desktop appears on their cell phone. Which current trend in personal selling caused this information to appear? Consultative selling Social styles matrix Integrated marketing communications (IMC) Artificial intelligence (AI)

Artificial intelligence (AI) Correct! Artificial intelligence was involved in this scenario to keep the information in front of the person.

What is one ethical consideration marketers should follow when collecting primary data? Ask for consent to gather the data from surveys. Require customer questionnaires to be completed before submission. Be transparent about how data gathered from company reports will be applied. Avoid stereotypes when searching the internet.

Ask for consent to gather the data from surveys. Correct! An ethical consideration marketers should use includes receiving consent to collect data.

What is a benefit of knowing a customer's lifetime value? Determine staffing of marketing department. Forecast future sales numbers. Assess profitability of marketing campaigns. Budget for new product development.

Assess profitability of marketing campaigns. Correct! Customer lifetime value is one measure that marketing may use to determine the profitability and effectiveness of marketing campaigns.

Sure Start's chief marketing officer (CMO) conducted research to learn why buyers of cars manufactured with Sure Start electric batteries are satisfied with the performance and plans to design a marketing campaign around car buyer testimonials. What is the purpose of this campaign's positioning? Outcomes Place Rank Attitude

Attitude Incorrect. Positioning based on rank addresses how the product or service fares against its competitors in the areas evaluated by customers deciding what to buy. The CMO will not be asking customers about competitive products, only about Sure Start batteries to consider consumer attitudes. This represents positioning by attitude.

A company positions its running shoes to convince customers that they will run faster, be stronger, and be influencers of athletic fashion when wearing these shoes. What is the purpose of this product's positioning? Attitudes Place Rank Outcomes

Attitudes Correct! When a company positions by attitude, a product is being marketed in such a way that customers will consider the product and benefits as important to their lives and influence. This company is marketing its running shoes to create customer attitudes about running faster, being stronger, and influencing others for athletic fashion.

The service manager at a new car dealership wants to purchase equipment upgrades and replacements for the large service bay. The manager makes appointments to meet with the owner of the dealership to discuss the upgrades and costs, but the owner keeps canceling the meeting with a different excuse each time. Based on the model of dual concern theory, which conflict handling style is being exhibited by the purchasing manager? Compromise Accommodation Avoidance Competition

Avoidance Correct! The avoidance style of conflict handling seeks to be distant or unreachable and uncooperative during negotiations. Individuals exhibiting the avoidance style do their best to avoid conflict and negotiation.

A business sells products, services, or raw materials to other businesses. What type of transactions is the focus of this business? B2C ROI B2B CNC

B2B Correct! B2B stands for business-to-business transactions. B2B transactions are sales to another company that consumes the product or services as part of operating the business or uses the product in the assembly of the final product it sells to consumers.

Now that Charlie has worked out his pricing with the European electric car manufacturer, he realizes he needs to gain a better understanding of his current market share and current products in the major electric car markets. That information will be needed so Charlie can determine whether Sure Start should begin considering new markets. Which marketing planning tool will give Charlie this knowledge? BCG matrix SWOT analysis Mission statement Strategic opportunity matrix

BCG matrix Correct! The BCG matrix considers two different aspects of a business unit or product: What is the current market share and what is the market's growth potential? Conducting research using this marketing planning tool will help Charlie benchmark Sure Start's current growth and look for future market opportunities.

A consumer visits a farmer's market for an avocado sale advertising $0.50 per large avocado. When the individual arrives at the market, the farmer says that the avocados are only available in packs of 12. The consumer later checks the social media advertisement and sees no details stating the avocados must be purchased in packs. What behavior is illustrated by this situation? Bait and switch Predatory selling Kickback Pyramid scheme

Bait and switch Correct! A bait and switch transaction occurs when a consumer plans to purchase a product based on the advertising, and instead the salesperson attempts to convince the consumer to make a different purchase. In this case, the consumer visited the market after seeing an ad for $0.50 avocados, and there was no indication in the ad that purchasing a 12-pack was required. The farmer was performing a bait and switch sales technique.

Customers are shown advertising for a new mop at the price of $19.99. When they go to purchase the mop, the company states that the mop for $19.99 is not available, but there is a similar model available for $39.99. Which behavior is illustrated by this action? Pyramid scheme Planned obsolescence Bait and switch Kickbacks

Bait and switch Correct! Bait and switch is a form of fraud where customers are "baited" by advertising for a product or a service at a low price ($19.99). Customers then discover that the advertised good is not available and are "switched" to a more expensive product ($39.99).

Andie submits a proposal for services to Design Group. At the next meeting, Andie begins working with the lead architect to achieve consensus on the timeline and outcomes for the project. Which stage of the negotiation process is being illustrated? Investigation Determining desired outcomes Presentation Bargaining

Bargaining Correct! During the bargaining phase of negotiation, both parties will discuss their goals, cooperate to achieve a workable solution, and move the negotiation to a close.

A sales representative for an ultrasound machine offers to include a free one-year maintenance contract with the purchase price if the client will agree to the purchase today. Which phase of the negotiation process are the representative and the client in? Bargaining Closure Investigation Presentation

Bargaining Correct! In this example, the sales representative and the client are involved in the bargaining process whereby both parties present their goals for the negotiation and seek an agreement. In this case, the agreement is a purchase order.

A company operates in an industry where the customers are highly price sensitive, and the industry supply far exceeds the demand for the company's products. Which one of Porter's five forces is being illustrated by this company's situation? Threat of new entrants Bargaining power of suppliers Threat of substitute products Bargaining power of buyers

Bargaining power of buyers Correct! The bargaining power of customers is the ability of customers to put a company under pressure, which also affects the customer's sensitivity to price changes.

Which aspects of these customers' responses can be observed in-store? Need recognition Social media usage Utilization Behavioral

Behavioral Correct! Customers' behaviors are observable and measurable. For example, a salesperson can study how a customer would react to a sale on a major appliance.

Which set of connections is created by marketers to generate value? Between customers and suppliers Between companies and media Between companies and suppliers Between customers and products

Between customers and products Correct! Marketing generates value by determining what its target customers want or value, and then positioning a product to meet that need or desire.

A customer is choosing either Company A or Company B chocolate chip cookies. Ultimately, the customer chooses the Company A cookies because of his or her preference for that manufacturer's type of product. Which driver of customer equity does this individual's decision represent? Acquisition equity Value equity Brand equity Retention equity

Brand equity Correct! Brand equity is how the customer assesses the value of the brand over its objective value.

What is the main function of marketing? Decreasing expenditures Improving partner relationships Bringing value to customers Increasing productivity

Bringing value to customers Correct! The main function of marketing is to determine what customers value, want, or need, and then to position a product that meets that value.

grouping two or more related products together and pricing and pricing them as a single product

Bundling

Which type of market is represented by Sure Start's electric car battery business? Business-to-consumer Business-to-business Mass marketing Retail business

Business-to-business Incorrect. A business-to-consumer market means that Sure Start would sell directly to customers. The company is manufacturing batteries for sale to car manufacturers, which represents a business-to-business market.

A marketing manager requests data on the company's consumer buying patterns. How will this data assist the manager? By shaping the company's research and development By showing how many salespeople the company needs By showing return on investment for marketing campaigns By shaping the company's market offerings

By shaping the company's market offerings Correct! Consumer behavior data assist in marketing efforts. A market offering is shaped by consumer behavior data.

Which example illustrates how artificial intelligence and the internet of things positively affect sales and marketing? After a salesperson has a customer conversation, details of that engagement are saved in a customer relationship management tool. Chat-bots answer customers' product questions in real time. A customer uses a store's mobile application to make a purchase. During a peak busy period, a customer is diverted from a long line to be checked out using a card swipe device attached to a mobile device.

Chat-bots answer customers' product questions in real time. Correct! Chat-bots are a technology based on artificial intelligence used to provide answers in real time, thereby raising the likelihood of that customer purchasing the product.

What is one example of an uncontrollable element of the community center's marketing environment? Number of meals prepared daily The center's social media content Community partnership advertising campaign Citizen participation in meals

Citizen participation in meals Correct! There are many uncontrollable factors that influence the number of food insecure citizens that will participate in the community meal program. Examples include the weather, the availability of transportation, other downtown events such as festivals that donate to the food insecure, and more.

Which secondary data source deals with syndicated consumer data for purchase as well as database information on consumer purchases and behavior? Government agency and nonprofit data Industry and professional associations Commercial marketing research companies Internet searches

Commercial marketing research companies Correct! This secondary data source deals with syndicated research of consumer data for purchase as well as database information on consumer purchases and behavior.

In the marketing mix, what is meant by the term promotion? Cost of a product, or what a company asks in exchange for a product Communications between the company and the customer Goods, services, or ideas that a company offers to the market Getting the product from the producer to the customer

Communications between the company and the customer Correct! Promotion includes both the messages sent by the company and messages that customers send to the public about their experience.

The purchasing manager for an electronics supply house enjoys sparring with sales representatives in person and tends to have heated phone conversations with them. The manager never gives an inch during negotiations and states that the upper hand and best pricing are the result of personal negotiation skills. Based on the model of dual concern theory, which conflict handling style is being exhibited by the purchasing manager? Avoidance Competition Accommodation Compromise

Competition Correct! Competition is the style of negotiation where the winner takes all at all costs.

Individuals A and B had competing new product ideas and each needed scarce company resources. Individual A lobbied management to obtain all the resources possible regardless of how Individual B might be impacted or the relationship might be affected. Which style of handling conflict was used by Individual A? Avoidance Compromise Accommodation Competition

Competition Correct! People exhibiting a competing style want to reach their goal or get their solution adopted regardless of what others say or how they feel. They are more interested in getting the outcome they want as opposed to keeping the other party happy, and they push for the deal they are interested in making.

A supermarket is consistently rated at the top in customer service among all shopping categories in a nationwide survey. Because of this rating, the supermarket frequently outperforms other stores in its market. Which concept is illustrated by this supermarket's status? Market landscape Segmentation strategy Marketing tactic Competitive advantage

Competitive advantage Correct! A competitive advantage is some trait, quality, or capability that allows you to outperform the competition. In this example, the supermarket's consistent top customer service rating is its competitive advantage.

A manufacturer of children's toys discovers that a number of products that it makes and sells have been duplicated and are selling alongside their products on various e-commerce sites. The duplicate products appear to be made overseas and are selling for 30% lower. The company's sales department feels pressure to lower pricing to match that of the duplicate products in an effort not to lose sales. Which element in the marketing environment is demonstrated in this situation? Governmental regulations Technological advances Social factors Competitive elements

Competitive elements Correct! Duplicate products at a lower price reflect a change in the competition that the company needs to address.

A manufacturer produces a Bluetooth thermometer for grilling. The product is high-end and priced accordingly. A year after introduction to the market, one of the company's salespeople sees another company's ad for a very similar Bluetooth thermometer at a much lower price. Which of Porter's Five Forces is occurring in relation to this product? Competitive rivalries Threat of new entrants Bargaining power of buyers Bargaining power of suppliers

Competitive rivalries Correct! The newly-advertised thermometer represents competitive rivalry because a competitor has created a very similar Bluetooth thermometer at a much lower price point.

The regional sales representative for a laboratory equipment supplier meets with a primary care practice manager to try to sell an upgrade to the practice's blood analysis computer. The practice manager told the sales representative in an email when agreeing to the appointment that money for an upgrade was not available; the current hardware was working and meeting company needs. After an hour behind closed doors, the sales representative left with a purchase order for the new hardware along with a new printer for the computer. The representative agreed to a reduction in the cost of the hardware along with a year of free support and upgrades. Based on the model of dual concern theory, which conflict handling style did the sales representative and the practice manager use to make the sale? Compromise Avoidance Accommodation Competition

Compromise Correct! The compromise style of conflict management seeks to find a way for both sides to win something or gain something toward their goals.

Andie's pitch to Design Group included two years of consulting, training, and product development services and was approved on May 1. On May 15, the CEO of Design Group asked to change the contract to one year of services. After negotiation, Andie and the firm agreed to an 18-month contract. Which conflict management method did the consultant use? Compromise Competition Accommodation Collaboration

Compromise Correct! The objective of compromise is to achieve mutually beneficial outcomes for both parties. Andie accepted a change to the contract.

A luxury watch designer markets exclusively to professional golfers. What type of targeting strategy is utilized by this company? Undifferentiated Micromarketing Differentiated Concentrated

Concentrated Correct! Concentrated marketing is niche marketing. An organization that adopts a concentrated marketing strategy gains an advantage by focusing all efforts on only one or a small handful of segments. This watch designer markets exclusively to professional golfers, which is a concentrated strategy.

Jake wants to learn about potential customer needs so the produce can be diversified based on what restaurant owners want on their menus. Which selling approach will Jake need to take? Solution Consultative Team Telemarketing

Consultative Correct! Consultative selling focuses on creating a one-to-one relationship where the seller listens closely to the potential customer's unique needs. Jake will use a consultative selling approach to grow the produce that fits the needs of each restaurant owner.

Which type of selling involves partnering with customers to solve problems? Solution Consultative Direct Team

Consultative Correct! Consultative selling is about personal involvement and sincere focus on problem-solving that goes beyond selling to gain true partnership with the customer.

A marketing manager wants to better understand how the company's customers choose products. Which component is this manager trying to understand? Product options Consumer behavior Consumer choice Product mix

Consumer behavior Correct! This marketing manager is trying to understand consumer behavior when considering how customers choose the company's product. "Consumer behavior, in its broadest sense, is concerned with understanding both how purchase decisions are made and how products or services are consumed or experienced."

Which example illustrates a market segment? Printed marketing materials Consumers born between 1974 and 1992 Steel, coal, and fiberglass Social media marketing posts

Consumers born between 1974 and 1992 Correct! This is a segment of possible consumers that marketing efforts might be directed towards.

A company writes a blog about how their product fits into a particular lifestyle segment.

Content marketing

How is marketing important to the customer's life cycle and relationship building? Continuing the relationship building with current customers is useful as well as for potential customers. Retention power applies to potential customers more than current customers. Customer challenges change the outlook of partnership to current customers. Promoting exclusive promotions with current customers is good for great relationship building.

Continuing the relationship building with current customers is useful as well as for potential customers. Correct! Marketing must create a relationship with the customer throughout the life cycle.

Which U.S. federal act establishes standards for commercial email? Telemarketing Sales Rule (TSR) Federal Administrative Information and Protection Regulation (FAI-APR) Freedom of Information Act (FOIA) Controlling the Assault of Non-Solicited Pornography and Marketing (CAN-SPAM)

Controlling the Assault of Non-Solicited Pornography and Marketing (CAN-SPAM) Correct! This act was passed in 2003 and gives consumers the ability to opt out of communications.

A salesperson for a medical equipment company provides marketing materials for the practice manager at a doctor's office. After three months, the practice manager orders three products. Which stage of the customer life cycle does this series of actions illustrate? Conversion Loyalty Reach Acquisition

Conversion Correct! After reaching the perspective customer and bringing the prospect into the sphere of influence, the prospect is converted into a paying customer. Conversion is the stage of the customer life cycle where the seller turns the prospect into a paying customer.

A company makes a donation of 5% of its monthly profits to an environmental wellness fund. Which concept is guiding this company? Boycott purchase Corporate social responsibility Ethical consumerism Fair trade

Corporate social responsibility Correct! Corporate social responsibility is a way of conducting business with commitment to the values, norms, and expectations of society for social responsibility.

A company advertises that it uses only sustainable wind power on the box of its product. Which concept is guiding this company? Boycott Ethical consumerism Corporate social responsibility Fair trade

Corporate social responsibility Correct! Corporate social responsibility is a way of conducting business with commitment to the values, norms, and expectations of society for social responsibility. Using wind power shows that a company has a focus on being sustainable with the world's natural resources.

Which ethical practice should be used to enrich the information obtained from focus groups? Allow users to modify questions. Use closed-ended questions. Ask leading questions. Create clear questions.

Create clear questions. Correct! Organizations should ask clear questions of their focus groups to obtain the best information.

Which statement accurately describes the purpose of positioning maps? Tracks the preferred marketing tactics used to promote a new product Creates a picture of how competitors are positioned in the market Creates a budget strategy to promote a new product Tracks company sales performance quarter over quarter

Creates a picture of how competitors are positioned in the market Correct! Positioning maps identify two pieces of key criteria that customers use when deciding what to buy and set these as the horizontal and vertical axes. Then competitors are placed in the space where they seem to fit.

The director plans to post the menu for the day by 5:00 each morning. This information will include the nutrition facts associated with breakfast, lunch, and dinner, and describe the standards used in the meal preparation. Which activity is the community center using to create value through its menu marketing? Identifying the food insecurity Promoting its food partnerships Co-branding with the warehouse Creating awareness of fresh meals

Creating awareness of fresh meals Correct! The director will be using marketing to create awareness that the community center offers breakfast, lunch, and dinner free to everyone who needs a fresh meal. This was initiated because of the city's food insecure population.

What is a key factor of customer satisfaction? Customer expectations Customer loyalty programs Customer engagement Customer referrals

Customer expectations Correct! In researching satisfaction, firms generally ask customers whether their product or service has met or exceeded expectations. Thus, expectations are a key factor behind satisfaction.

Which data set is considered secondary research? Customer online product review Customer list Customer opinion survey Customer focus group

Customer list Correct! A company's customer list is a set of data already assembled by the company.

Which system should be used for a business to develop a customized cosmetics tutorial guide for an individual woman based on the previous feedback? Tailored marketing Digital social media Account management Customer relationship management

Customer relationship management Correct! Customer relationship management (CRM) is based on meeting the needs of the customer. CRM software is used to support these processes, storing information on current, past, and prospective customers.

A clothing store uses a customer relationship management (CRM) system and notices that when one line of the clothing is purchased, customer retention is low. What is a benefit of CRM for this store? Customer satisfaction can be improved by tracking buyer behavior. Advertisements can be sent to new areas of town. More coupons can be mailed to customers. Sales campaigns can be created by working with sales personnel.

Customer satisfaction can be improved by tracking buyer behavior. Correct! By identifying the customer's that are not being retained by the company, it can work on the supply chain with their vendor to help improve customer satisfaction.

Which role within a buying center is responsible for making the final selection for vendors to use and products to purchase? Decider Buyer Influencer Initiator

Decider Correct! A decider is an individual at an organization who makes the final purchase decision, often the person who owns the budget.

A consumer test drives several cars at a dealership and has made the choice to fill out the paperwork for one of the cars. Which step of the decision-making process is illustrated by this consumer's mindset? Evaluation Post-purchase Buy Decision

Decision Correct! The decision step is where the consumer makes the decision to make the purchase.

A sales representative for a laboratory equipment company is in the final stage of closing a large sale. The representative realizes the customer is not fully aware of the specifications of the product, and the product may require modifications to fit the customer's needs. Which action should the sales representative take based on this knowledge? Complete the sale and inform the customer on how to contact the support team. Delay the sale and ensure that the customer is aware of specifications. Delay the sale and wait for the needs of the customer to change. Complete the sale and immediately notify the support staff about the situation.

Delay the sale and ensure that the customer is aware of specifications. Correct! Good marketing and sales provide compelling solutions and inform customers to help them make good selections and realize value. This recognizes customers' need for an offering that is easy to use and that includes clear instructions and appropriate warnings.

A sales employee works for an organization that implements sales quotas on its employees to encourage sales. What is an ethical issue that this employee may encounter? Delaying an end-of-year sale to have a head start on the quota in the next year Working extra hours to contact customers in different time zones Setting a goal to exceed a quota by at least 10% in the next year Postponing a meeting with a boss to meet with a customer

Delaying an end-of-year sale to have a head start on the quota in the next year Correct! Delaying a sale to meet future quotas reduces profits for the organization for the year.

Which factor can directly influence an individual buyer's purchasing decision? Gross national income Gross domestic product Society Census

Society Correct! Society, in general, can influence a consumer's buying behavior and decision-making because the values and norms of society can have an impact on a consumer's decision.

A restaurant owner has noticed a shift in the restaurant's customer attitudes towards locally-sourced and sustainable ingredients and is changing the menu in an effort to cater to these customers. What element of the marketing environment does this represent? Economic factors Regulation Consumer confidence Socio-cultural factors

Socio-cultural factors Correct! The restaurant owner's move from a national supplier to locally-sourced ingredients reflecting customer values is an example of socio-cultural factors.

A potential buyer wants to purchase a complete hardware, software, and network package for a new office building. Which type of selling approach should be used with this customer? Team Solution Normal Telemarketing

Solution Correct! Solution selling can be applied in sales situations where the buyer may be interested in a provider (seller) that offers a complete package or solution for the business problem, rather than individual components that address separate aspects of the problem.

Charlie plans to use target marketing to sell Sure Start Batteries' new rechargeable battery. Which example is consistent with target marketing? Disregarding competitors Resource inefficiencies Specializing in Asia Mass marketing

Specializing in Asia Correct! Specializing in sales to Asia represents target marketing, because a target market is a specific group of customers which a company could direct its marketing efforts toward.

A sales manager reviews the current products in the company's portfolio and sees that one product the company began selling for about a year is now showing high market share in a fast-growing industry. Which Boston Consulting Group (BCG) model category could be used for this product? Dog Question mark Star Cash cow

Star Correct! This product is likely a star selling with a high market share in a fast-growing market, which is the definition of a star.

As the result of the rapid success of a company's new electronic device, the manager decides to order another run of the product for the organization. No changes will be made to the design, parts, or functionality of the product. Which B2B buying situation supports this decision? Straight rebuy Inventory liquidation New task Modified rebuy

Straight rebuy Correct! The straight rebuy occurs when an organization reorders or renews a good or service without any modifications to previous orders.

A firm is planning to launch a new product. They also have adopted a vision for how they will achieve their objectives. What type of planning is being used by this firm? Merchandising Communication Tactical Strategic

Strategic Correct! A marketing strategy is a vision for how you will achieve the specified objectives in the marketing plan. This firm has developed a vision for how they will achieve the objectives.

The chief financial officer (CFO) asks the marketing managers to generate, collectively, an additional $250,000 in sales annually. What type of planning is the CFO asking managers to conduct? Strategic marketing with controllable elements Tactical marketing with controllable elements Strategic marketing with uncontrollable elements Tactical marketing with uncontrollable elements

Strategic marketing with uncontrollable elements Correct! Strategic marketing provides goals, but does not include the specific, tactical actions to be taken to achieve the marketing strategy. In this case, the CFO has said that the marketing managers need to generate $250,000 in sales annually but has not said how they need to achieve that. The sales outcomes cannot be controlled by the managers. The goals represent strategic marketing.

What is the name of a means of evaluating a company's plans for growth based on new versus existing markets and new versus existing products? Diversification strategy SWOT matrix Strategic opportunity matrix Product development strategy

Strategic opportunity matrix Correct! The strategic opportunity matrix organizes growth strategies in a framework based on new versus existing markets and new versus existing products.

System through which an organization acquires raw material, produces products and delivers the products, and services to customers.

Supply chain

Some companies are starting to disclose how products are made and where their components are sourced. Which ethical concept is guiding these companies? Supply chain transparency Globalization purchase Fair trade Boycott purchase

Supply chain transparency Correct! Supply chain transparency is when a company discloses how products are sourced and where they are made. This concept has received great attention in the apparel industry.

A company is promoting its ethical procurement of raw materials by including its materials suppliers on its website. What type of decision-making is being used by this company? Supply chain transparency Ethical consumerism Boycott Utilitarianism

Supply chain transparency Correct! Supply chain transparency occurs when a company publicly promotes working only with ethical suppliers and contractors. This company is practicing supply chain transparency by publishing its suppliers on its website.

What is the purpose of customer relationship management (CRM) software? Supporting processes by storing information about customers Helping sales and marketing organize data about employees Serving several essential functions for customers and human resources Delivering a marketing mix tailored to the needs and interests of sales personnel

Supporting processes by storing information about customers Correct! CRM software is used to support these processes, storing information on current, past, and prospective customers

A marketing manager plans to expand a current marketing campaign to reach a well-documented market segment that the company does not currently attract. Which data source should the manager use to meet this goal? Government data Syndicated market research Internet searches Internal customer data

Syndicated market research Correct! Syndicated market research would have this kind of data. "Syndicated research of consumer data for purchase as well as database information on consumer purchases and behavior" would help expand the manager's campaign.

A company's leadership decides to increase product sales by signing an agreement with a celebrity to execute an influencer social media campaign. What type of planning is being used by this company? Strategic Communication Merchandising Tactical

Tactical Correct! Tactical planning defines specific activities to reach a goal. In this scenario, the company leadership has identified that its goal is to increase product sales and has chosen to achieve this through tactical implementation of an influencer social media campaign.

A firm has determined that they want to use social media influencers and search engine-paid ads to meet a sales objective. What type of planning is being used by this firm? Tactical Merchandising Strategic Communication

Tactical Correct! Tactical planning includes the actions a company implements to affect the controllable elements of the strategy; the tactics in this example are to use social media influencers and search engine-paid ads.

A firm is launching a new product and has developed a plan outlining specific activities and allocation of resources needed to implement that plan over a given period of time. What type of planning is being used by this firm? Tactical Strategic Merchandising Communication

Tactical Correct! Tactical plans specify the activities and allocation of resources (people, equipment, and money) needed to implement the strategic plan over a given period, which is what the firm in this example has developed.

Which type of planning addresses the activities a company will use to increase profits by 30% in the next two years? Product Strategic Competitive Tactical

Tactical Correct! The company's tactical plan is a list of the activities and steps needed to meet the objective in a strategic plan. A tactic is a specific action that will be implemented to achieve that goal, such as advertising during the Super Bowl to reach millions of soda drinkers at one time.

A customer meets with a salesperson in this store and says that the decision to purchase a $100,000 outdoor kitchen that includes a luxury refrigerator and range has been made. The customer has conducted extensive technical research and has compared pricing and features of multiple brands of appliances prior to coming into the location. What kind of decision-making is being displayed by this customer? High-involvement, simple Low-involvement, complex High-involvement, complex Low-involvement, simple

High-involvement, complex Correct! High-involvement decision making that is complex requires the customer to gather extensive information from multiple sources, evaluate many alternatives, and invest substantial effort in making the best decision. This customer is making a decision that requires extensive information search and evaluation, which refers to high-involvement, complex decision making.

Which action leads to a failed negotiation or to a less than desirable outcome? Developing a list of potential outcomes of the negotiation Giving something up to get something in the negotiation Holding unrealistic expectations of the negotiation outcomes Being open to the wants and needs of the other party

Holding unrealistic expectations of the negotiation outcomes Correct! To be successful, all sides must hold a realistic expectation of what the negotiation can accomplish. Unrealistic expectations may lead to failure.

What is the first question David should address when designing this market study? How many customers use grocery shopping services? Which vegetables would be most profitable? Which customers shop at farmers' markets? Do customers know about the services being offered by Sprout?

How many customers use grocery shopping services? Correct! David needs to know whether the farming community would use these services.

A marketing manager commissions consumer behavior research on the company's customers. What will this research indicate to this manager? The average age of the company's customer How effective the marketing plan was How products or services are consumed The average profit per item sold to each customer

How products or services are consumed Correct! Consumer research indicates how products or services are chosen and consumed.

What is a characteristic that is true of integrated marketing communications (IMC)? IMC is supported by and depends on sales. IMC accesses more than one customer touch point. IMC predominantly uses mass communication. IMC has little regard for the values of consumers.

IMC accesses more than one customer touch point. Correct! Marketers use multiple exposures to their products by using "different touch points."

A company is looking to buy multiple WiFi routers. Which department in this company ensures the routers are compatible with the other systems the company uses? Human Resources IT Accounting Marketing

IT Correct! The IT department ensures what the routers are compatible with the other systems and technologies the company uses.

A sales manager reviews the latest reports for a primary product in a rapidly growing market and sees that sales have dropped significantly. The manager conducts marketing research to understand the drop in sales. Which benefit of marketing research will assist this sales manager? Identifying competitors Identifying customers Analyzing stock value Reporting sales growth

Identifying competitors Correct! One of the questions marketing research can answer is, "Who are competitors in the market?"

Charlie decided to develop electric car batteries because there were companies still trying to establish themselves as industry leaders, and he wanted to be able to enter the market at the early stage and become a mass producer of rechargeable batteries used in electric cars. Which component of market segmentation does this represent? Studying buyer behavior Identifying the market Reselling batteries Leaving a market

Identifying the market Correct! Sure Start identified the target market of electric car manufacturers because there was an emerging opportunity to enter the market while it was still developing and secure a position as a leading manufacturer of electric batteries.

What is the result of customer relationships based on honest communication, clear pricing, and respectful treatment? Increased scrutiny from regulating entities Improved product performance Improved business results Increased business efficiencies

Improved business results Correct! If customers trust the product, company, and brand, business results improve and the company has greater flexibility to introduce new products or make market adjustments.

A company is preparing to launch a new product accessory for their mobile devices. The business manager reviews sales reports of the mobile devices to determine which specific customer groups would be most interested in this new accessory. What is a benefit of the manager's approach? Improves forecasting of all company products Indicates which customers are more likely to buy Identifies identical products in the marketplace Provides benchmarks for marketing budgeting

Indicates which customers are more likely to buy Correct! Market segmentation will indicate which customers should be targeted.

How does a customer relationship management (CRM) system benefit a customer? Allows customers to manage the various contacts of the organization Provides sophisticated analytics to allow customers to manage their data Individualizes marketing and sales messages to customers Creates avenues for customers to contact vendors on the supply chain

Individualizes marketing and sales messages to customers Correct! A CRM allows an organization to customize the marketing and sales messages that a customer is given. This information is given by the customer, based on the data collected from their experience.

A company provides a celebrity with products and payment to publicly promote their goods.

Influencer Marketing

A customer approaches a salesperson in this store and asks if a luxury refrigerator performs more energy efficiently than a standard refrigerator. Which step of the consumer decision-making process is this customer displaying? Need recognition Purchase decision Evaluation Information search

Information search Correct! Information search concludes when a customer has collected all information relevant to making a purchasing decision. This customer is still seeking information about the energy efficiency of two refrigerators.

Which three individuals have a role in the buying center? Choose three answers. Instructor Auditor Initiator Gatekeeper Manager Decider

Initiator Gatekeeper Decider Correct! An initiator is an individual at an organization who suggests purchasing a product or service in the buying center. A decider is an individual at an organization who makes the final purchase decision, often the person who owns the budget in the buying center. A gatekeeper is an individual at an organization who controls the flow of information to and among others within the buying center, often administrative professionals in the buying center.

A sales manager for a small company has no budget for research but needs data to expand a marketing campaign. The manager hope to increase the rate of repeat purchases from current customers. Which form of data meets this sales manager's needs? Industry Government Internal Syndicated

Internal Correct! Internal data are something the sales manager already has access to, so there is no cost. A company's internal data, such as sales and marketing records, customer account information, product purchasing, and usage data, are typical secondary data sources and can provide the information on customers needed by this manager.

A new vice president (VP) for a manufacturing company wants to upgrade the network in the product assembly area. The new VP does not want to use the same systems integration vendor and would prefer to buy products and services from a different vendor that has been in business for only a year. Which type of influence does the VP have over purchasing decisions? Interpersonal Organizational Environmental Governmental

Interpersonal Correct! The VP is pushing a personal agenda on the organization. This is an example of interpersonal influence.

In which stage of the product life cycle does new product development occur? Decline Growth Maturity Introduction

Introduction Correct! Companies typically see new product development as the first stage in the overall strategic process of product life cycle management used to maintain or grow market share. This stage is the product introduction stage.

The community center is the first in the city to offer freshly prepared meals in partnership with the food warehouse. Which stage of the product life cycle do the meals represent to the community? Introduction Maturity Growth Decline

Introduction Correct! The introduction phase occurs when a new service enters the market. The center will be the first in its city to partner with a for-profit organization to create three nutritious meals a day, which indicates that the meals are in the introduction stage.

A sales representative for a durable medical equipment company wants to approach a large doctor's office to pursue an ongoing relationship with the office. Which phase of the negotiation process should the sales representative consider first? Investigation Presentation Closure Bargaining

Investigation Correct! Investigation is the first step in the negotiation process. Often overlooked, this is the stage to determine what the goals of the negotiation are and what concessions might be made to achieve those goals.

Why is positioning essential when launching a new offering? It helps the customer understand how the offering fits into the available choices. It ensures that marketers understand how much to spend on the product launch. It ensures that marketers understand and define a target market. It helps the customer understand why the company created the new offering.

It helps the customer understand how the offering fits into the available choices. Correct! Positioning helps marketers and customers understand how the offering fits into the set of available choices and makes a set of claims about why customers should consider it.

Why is a growth strategy important to a company? It provides a planning tool for employees to further their career by utilizing internal growth and development programs. It provides a planning tool to simplify, organize, and focus the possible options for growth for the company. It ensures a company has made best efforts to ensure that employees' retirement accounts increase in value. It allows a company to determine how many new employees that the company needs to hire.

It provides a planning tool to simplify, organize, and focus the possible options for growth for the company. Correct! The strategic opportunity matrix is a tool to develop a growth strategy. It helps a company determine the actions required for growth.

Why is differentiated marketing considered expensive? It requires the development of unique products to fit each target segment. It focuses on marketing techniques that sell luxury goods during a recession. It requires that marketers get to know a small geographic area. It focuses on mass marketing for commodity items.

It requires the development of unique products to fit each target segment. Correct! Each unique product and market segment requires its own marketing plans and execution: unique messages, campaigns, and promotional tactics and investments.

A salesperson decides to provide an incentive to one influencer in each prospective company after they recommend his product and the sale is approved. What unethical practice is the salesperson using? Pyramid scheme Bait and switch Kickback Hard selling

Kickback Correct! A kickback occurs when an individual within a prospect-client's organization is paid a percent of a sale to recommend and influence the sales transaction.

A school administrator receives a vacation to a tropical location from a textbook company after purchasing textbooks for a business class from that vendor. Which unethical behavior has this administrator committed? Kickbacks Planned obsolescence Pyramid scheme Bait and switch

Kickbacks Correct! The school administrator received a reward in exchange for supporting a sale.

Which example aligns with the purpose of market segmentation? Branding to align with all customer needs Promoting a product using mass marketing Launching a design for a specific customer group Creating one ad for all products on social media

Launching a design for a specific customer group Correct! Market segmentation occurs when a company divides its overall customer base into segments, or groups, based on unifying characteristics. This response identifies a specific customer group, which indicates the use of market segmentation.

Pricing products below the normal markup or below cost to attract customers where they would not usually shop

Leader Pricing

Which department ensures that all new sales contracts comply with the ethical standards of the company? Accounting Legal Marketing Human Resources

Legal

A small tobacco shop that just opened wants to run advertising on a local radio station. When they approach the radio station's sales department, they find that the station will not run their ad. What type of uncontrollable element prevents the running of this advertisement? Social Legal Cultural Environmental

Legal Correct! The Federal Trade Commission prohibits the advertising of tobacco products on radio and television.

An individual with a base knowledge of cookware is in the market for a new frying pan. After obtaining advice from a friend who is a chef, the individual purchases a stainless-steel frying pan. What type of problem-solving behavior is this individual exhibiting? Involvement Limited Routine Extended

Limited Correct! Limited problem-solving is when a consumer already has some information about a good or service but continues to search for a little more information. In this situation, the individual already had some knowledge about cookware but asked the chef for additional information to inform the purchase.

The salesperson in this store closes the $100,000 outdoor kitchen sale and invites the customer to consider purchasing an additional one-year warranty for outdoor appliances that is only available at the time of purchase. What kind of problem-solving does this require from the customer? Extended Limited Routine Brand

Limited Correct! The customer would need to make a quick decision based on limited information about the additional one-year warranty, and would only have available the features, benefits, and pricing information made available by the salesperson at the time of purchase. This represents limited problem solving.

The chief financial officer (CFO) asks marketing managers to buy advertising in all trade magazines in their respective geographic areas for one year. Which type of planning is the CFO asking managers to conduct? Strategic marketing with uncontrollable elements Tactical marketing with controllable elements Strategic marketing with controllable elements Tactical marketing with uncontrollable elements

Tactical marketing with controllable elements Correct! Tactical marketing includes specific actions, such as advertising, to execute a marketing strategy. In this scenario, the CFO asks marketing managers to buy advertising in all trade magazines in their respective geographic areas for one year. This represents tactical marketing because it specifies the kind of marketing that needs to occur. The managers will coordinate the advertising, which means they control the type of advertising and frequency. This represents a controllable element.

Which component of the market planning process addresses the actions associated with a marketing strategy? Tactical planning External analysis Internal resources Situation analysis

Tactical planning Correct! Tactics include specific actions, such as coupons, television commercials, banner ads, tweets, and so on, taken to execute the strategy.

What is the main difference between limited problem-solving and extended problem-solving? Limited problem-solving includes a small amount of research, whereas extended problem-solving is characterized by research in many different areas. Limited problem-solving includes research in many different areas, whereas extended problem-solving includes only a small amount of research. Limited problem-solving is an immediate decision, whereas extended problem-solving is characterized by a small amount of research. Limited problem-solving is an immediate decision, whereas extended problem-solving requires various steps of research.

Limited problem-solving includes a small amount of research, whereas extended problem-solving is characterized by research in many different areas. Correct! Limited problem-solving does include a small amount of research in specific areas, and extended problem-solving includes more in-depth research in many areas to inform the ultimate purchase.

A manufacturer of laminate wood flooring is seeking to expand its target market. What B2C option does the company have? Commercial home centers Fitness superstores Local homeowners Elementary schools

Local homeowners Correct! Selling to local homeowners represents B2C selling. This option would allow the manufacturer to expand into the consumer market.

What type of decision-making is quick, routinized, and can be completed without a high level of consideration? Extended problem-solving Low-involvement High-involvement Limited problem-solving

Low-involvement Correct! Low-involvement decisions are quick, routinized, and do not require high levels of consideration; they often use an abridged version of the decision-making process.

What is considered a less tangible benefit of customer lifetime value? Increase in revenues Meeting quarterly sales goals Loyalty to the brand Higher conversion rates

Loyalty to the brand Correct! Long-term customers are more likely to be loyal to the brand and ambassadors for the company. This loyalty may provide valuable feedback to marketing.

Which growth strategy utilizes new markets with existing products using the strategic opportunity matrix? Market development Product development Market penetration Diversification

Market development Correct! A market development strategy relates to new markets with existing products.

Which growth strategy utilizes existing markets with existing products using the strategic opportunity matrix? Diversification Product development Market penetration Market development

Market penetration Correct! A market penetration strategy relates to existing products in existing markets.

A sales manager is reviewing sales reports from the previous quarter and wants to increase sales in the upcoming quarter by focusing on existing customers with a high customer lifetime value. What is one way to maintain an ongoing relationship with these customers? Qualifying Prospecting Networking Marketing

Marketing Correct! Marketing is an effective way to cultivate and maintain an ongoing relationship with high-value customers.

Which type of research yields data that are useful to a sales manager who wishes to better understand the company's customers? Environmental Marketing Corporate Product

Marketing Correct! Marketing research would provide a profile of the company's customers. "The purpose of marketing research is to help companies make better business decisions and gain advantages against the competition by better understanding their current and target customers."

What is a characteristic of integrated marketing communications (IMC)? Customers can obtain a response from a company in less than 24 hours. IMC campaigns rely on one point of contact with customers to make a sale. IMC campaigns use many different "look and feel" elements to grab attention. Marketing efforts are focused on reaching target customers.

Marketing efforts are focused on reaching target customers. Correct! IMC targets specific customers based on their interests and habits.

A marketing department develops a marketing plan that focuses on departmental goals and the actions the department must take to achieve them. Which component provides this detailed information? SWOT analysis Marketing objectives Marketing mission statement Positioning statement

Marketing objectives Correct! The plan includes the marketing department's goals and then the objectives, actions, efforts, and other details needed to meet those goals.

A business team is revising the document meant to guide the marketing department, managers, and teams as they work to identify the department's objectives and how to reach them. Which document is being revised? Situational analysis Marketing plan Market analysis Strategic plan

Marketing plan Correct! The marketing plan includes the marketing department's goals, and then the objectives, actions, efforts, and other details needed to meet those goals. It is the guiding document requested in the scenario.

A sales manager wants to know which internal and external forces affect what a consumer will purchase. What kind of information is needed by this manager? Product research Marketing budget Marketing research Sales numbers

Marketing research Correct! Marketing research would give this manager the necessary information. "Through marketing research, marketers seek to understand what impacts consumer behavior."

During a meeting, a marketing department describes the sales goals for the year, the target markets selected, and the actions the department will undertake to reach these goals. Which portion of the marketing planning process was discussed during this meeting? Target market identification Tactical marketing implementation Marketing strategy Market share

Marketing strategy Correct! This meeting focused on the marketing strategy. This strategy determines how a marketing mix (product, price, place, and promotion) should be used to achieve the marketing objectives.

A regional sales representative for an electronic health record (EHR) wants to increase sales to doctor's offices in the area. Which strategy is effective to increase B2B sales? Running advertising on local radio stations Meeting with doctors and office management Setting up a booth at regional conventions Mailing sales brochures to office managers

Meeting with doctors and office management Correct! One of the hallmarks of B2B marketing is the personalized nature of the marketing process. For the sales representative to reach doctors, the representative needs to go to the doctors where they are and market to them individually.

Which targeting strategy caters to a small segment of a neighborhood? Micromarketing Differentiated Concentrated Undifferentiated

Micromarketing Correct! Micromarketing can be very powerful by giving consumers exactly what they want, when they want it. However, to achieve large-scale success with this approach, companies must figure out how to meet highly individualized needs efficiently and profitably.

The vice president (VP) of the design department realizes that to remain competitive, the company will need to redesign their current smartwatch by adding new features. Which B2B buying situation supports this decision? Inventory liquidation Modified rebuy New task Straight rebuy

Modified rebuy Correct! A modified rebuy occurs when the buyer wants to reorder a product, but with some modification to previous orders.

Which B2B buying situation is encountered when a company is selling an upgrade of a current product? Modified rebuy Inventory liquidation Straight rebuy New task

Modified rebuy Correct! A modified rebuy occurs when the buyer wants to reorder products, but with some modification to previous orders.

The Design Group in Seattle has seen a sales increase of 40% since contracting with the Andie six months ago. The firm approaches Andie for another one-year contract, but with changes to the number of hours that she will need to spend with the firm's architects. Instead of working 10 hours per week from the company office, Andie will be working 15 hours per week at Design Group. What type of buying situation does this represent? New task Comprehensive task Straight rebuy Modified rebuy

Modified rebuy Correct! Design Group wants to continue to work with Andie and is changing the number of hours to be worked as well as the location. They are not changing the type of work that will be performed.

What is an ethical marketing practice related to product? Guaranteed next-day delivery Discount coupons for purchases Money-back satisfaction guarantee Posting on social media

Money-back satisfaction guarantee Correct! Offering a money-back satisfaction guarantee relates to product.

A marketing manager reviews monthly sales reports, sales forecasts for the upcoming quarter, budgets for advertising campaigns, and product reviews from customers and compares this data against the marketing objectives described in the marketing plan. Which step in the marketing planning process is being reviewed by this manager? Planning and implementation Monitoring and control Tactical planning Situational analysis

Monitoring and control Correct! Monitoring and control is the last step in this process and would involve these tasks.

A consumer accidentally drops his or her cell phone in a pond and is unable to recover it. Which step of the decision-making process occurs due to this consumer's situation? Evaluation Need recognition Buy Decision

Need recognition Correct! The opportunity phase is when the consumer recognizes the need to purchase or, in this example, replace something.

The chief executive officer (CEO) of a company that manufactures smart door locks decides to expand the business. Based on brand recognition for their smart locks, the CEO intends to expand into producing smart doorbells. Which B2B buying situation supports this decision? Modified rebuy Straight rebuy Inventory liquidation New task

New task Correct! A new task is when an organization considers buying products for the first time.

What does the strategic opportunity matrix examine? Internal versus external promotion Accountability of management Financial auditing New versus existing markets

New versus existing markets Correct! The strategic opportunity matrix helps companies focus on different growth strategies for markets and products by examining new versus existing markets and new versus existing products.

Ana worked with a packaging company, Company X, to create a new method for processing mixed paper waste into recyclable product for resale. Another packaging company, Company Y, a competitor of Company X, has also approached and offered to help Ana develop recyclable product for resale. Ana knows that helping Company Y will automatically reveal the newly learned techniques to its competitor, Company X. Which ethical dilemma does this raise for this owner? Acceptable use Permission marketing Nondisclosure Behavioral profiles

Nondisclosure Correct! If Ana reveals the information from the project with Company X, information will be released that should not be disclosed.

A consumer is planning to purchase a grill and does not know the differences between a gas grill and a charcoal grill. The consumer relies on online reviews, internet videos, and the recommendations of coworkers to make a decision. What kind of decision-making influence is being used by this consumer? Reinforcement process Experiential learning Selective perception Nonexperiential learning

Nonexperiential learning Correct! The consumer has no experience with grills and is relying on outside information to make a decisions. The outside opinions associated with nonexperiential learning includes testimonials, case studies, blogger postings, in addition to the examples used in this scenario (i.e., online reviews, internet videos, and the recommendations of coworkers).

Pricing a product lower then the perceived market price so that more people will buy it

Penetration Pricing

Which personal influence is described as a process by which a consumer identifies, organizes, and interprets information to create meaning? Need Perception Motivation Learning

Perception Incorrect. Learning is defined as changes in behavior that result from previous experiences. Learning is an ongoing process that is dynamic, adaptive, and subject to change. However, it is not a process by which a consumer identifies, organizes, and interprets information to create meaning.

A sales person pitches a new product to the customer in a face-to-face meeting.

Personal selling

A new car dealer owner encourages the staff to maintain records on customer purchases. The goal is for the staff to contact these customers every three years to present new car models face-to-face. What type of promotion is this owner encouraging? Personal selling Influencer marketing Traditional advertising Public relations

Personal selling Correct! The selling of new cars through a negotiation process is personal selling which is part of the promotion strategy of the company. By maintaining personal contact and holding a face to face meetings with customers, the chances of selling a new car makes this promotional strategy effective.

David is reviewing the results of interviews that were conducted to determine what customers would expect from grocery delivery services. Unfortunately, David realizes that the customers were never asked how much they would be willing to pay for the service, which is also important to the business plan. Which limitation of primary research is David experiencing? Limited expertise in collecting data Dated information about customer preferences Tailored questions to one focus area Competitive data on start-ups

Tailored questions to one focus area Correct! David conducted interviews to discover what customers wanted from a grocery delivery service, not how much they would pay for the service. This question limited the data.

The top of a retailer's e-commerce site has a banner that says, "Millennial shoppers appreciate the high-energy, engaging shopping experience in our stores!" What makes this positioning statement effective? Target market is stated. Awareness is created. Shopping is convenient. Message is promotional.

Target market is stated. Correct! An effective positioning statement concisely identifies the target market. The target audience is being identified as millennials in this statement.

A retail manager determines that the majority of store purchases come from university students and decides to increase promotions to that group. What is the purpose of this strategy? Product positioning Target marketing Differentiated marketing Micromarketing

Target marketing Correct! Identifying a market helps a company focus its marketing efforts on those who are most likely to buy its products or services. Concentrating on potential customers lets the firm use its resources efficiently. This retailer is targeting buyers interested in fast-fashion apparel to advertise only where customers will access social information. This will create an efficient use of resources for the retailer by advertising to produce the best return on investment.

A company lacks the resources to market every brand in its portfolio to every market segment. Which strategy maximizes the use of these limited marketing resources? Differentiated marketing B2B marketing Attribute marketing Target marketing

Target marketing Correct! Target marketing helps companies focus its marketing efforts on those who are most likely to purchase its products or services.

What does a market development strategy do for a company? Designs new point-of-sale experience and online storefront to give a fresh image for a company Targets new customers and new segments to expand the sales base Delivers marketing materials to customers via emails, online ads, and other media outlets Focuses on retaining current customers using new incentives and market research

Targets new customers and new segments to expand the sales base Correct! A market development strategy seeks to expand the market by finding new customers.

Which type of selling shows customers that a company has more than one person with strong selling capabilities, giving the customer a higher comfort level with the company? Telemarketing Consultative selling Solution selling Team selling

Team selling Correct! Team selling is a group of people representing the sales department and other functional areas in the firm. The idea behind the concept is that teamwork and sharing knowledge can benefit the bottom line of a firm.

Which type of sales approach occurs with a recorded sales pitch, programmed to be played over the phone via automatic dialing? Team selling Solution selling Customer-empowered selling Telemarketing

Telemarketing Correct! Telemarketing is a method of direct marketing in which a salesperson solicits prospective customers to buy products or services, either over the phone or through a subsequent face-to-face or web conferencing appointment scheduled during the call. Telemarketing can also include recorded sales pitches programmed to be played over the phone via automatic dialing.

How is customer satisfaction defined? The feeling a customer experiences when an offering meets or exceeds expectations The number of customers who refer their friends to a firm The number of promoters of a brand minus the number of detractors The lifetime value of a customer minus the cost of obtaining and retaining that customer

The feeling a customer experiences when an offering meets or exceeds expectations Correct! Customer satisfaction is all about meeting or exceeding the customer's expectations.

What is contained in a nondisclosure agreement (NDA)? The list of customers that cannot be contacted and the penalties for violation The information that is proprietary and how the seller can use that information The pricing agreement between vendors and buyers The type of customer information that can be sold

The information that is proprietary and how the seller can use that information Correct! An NDA is common in situations between vendors and business buyers.

A manager is seeking to use the BCG matrix to design strategies for the company's products. The manager knows the market shares for the products. What other information about the company's products does this manager need to know to use this technique? The SWOT analysis The value proposition The consumer price index The market growth potential

The market growth potential Correct! Market share and market growth potential are the two different aspects considered in the BCG matrix.

Which ethical issue may arise when a sales team is unable to meet its annual sales quota? The team may misrepresent products to increase sales. The team may be less motivated to sell. The team may request sales quota reductions. The team may receive smaller paychecks.

The team may misrepresent products to increase sales. Correct! Marketers must carefully consider the sales compensation and incentives structure and identify where it creates unnecessary ethical risks or puts sales representatives in an ethical bind.

What strategies do marketers use when positioning products? They orient the positioning statement toward their competitor's weaknesses. They work proactively to create a unique place in the market for the product. They look at what competitors are saying about their product and then react. They emphasize characteristics similar to other products.

They work proactively to create a unique place in the market for the product. Correct! Marketers work to create a desired position for a product rather than waiting for it to be created by customers, the public, or competitors.

The product manager for a dairy company's brand of butter is evaluating the risk posed by another company in the industry that introduced a butter-like product. Which one of Porter's five forces is this manager concerned about? Threat of new entrants Threat of substitute products Bargaining power of suppliers Bargaining power of buyers

Threat of substitute products Correct! The existence of different products which fulfill the same need increases the likelihood that customers will switch to alternatives.

What is the purpose of product positioning? To identify the specific group of customers towards which a firm should direct its marketing efforts To articulate the competitive advantages of a company's products To select potential customers who may be interested in the company's products To determine the place an offering should occupy in a given market, relative to other customer alternatives

To determine the place an offering should occupy in a given market, relative to other customer alternatives Correct! Positioning is a strategic process that marketers use to determine the place an offering should occupy in a given market, relative to other customer alternatives.

Why would a company want to focus on specific segments of a market? To stagger the production process so bulk jobs can be handled in batches of similar work To focus on a specific demographic or interest group so marketing efforts are reaching the intended audience To study buyer behaviors to determine the next demographic so the company's product or service will marketed correctly To pay back segments of a loan incrementally so the company can reduce their interest burden

To focus on a specific demographic or interest group so marketing efforts are reaching the intended audience Correct! Most companies cannot target the entire market. By focusing on a specific segment, the product or service can be more strategically positioned to market to the segment.

A marketing manager is determining the customers who would be most inclined to purchase a new product. Why is the manager performing this activity? To segment by demographic groups To increase market share To identify the target market To enhance stakeholder satisfaction

To identify the target market Correct! Identifying a target market helps a company focus its marketing efforts on those who are most likely to buy its products or services. Concentrating on potential customers lets the firm use its resources efficiently.

What does customer equity measure? Total combined customer lifetime values Customer assessment of the value of the brand Tendency to remain with a brand regardless of value Value of the product or service provided by the company

Total combined customer lifetime values Correct! Customer equity refers to the total combined customer lifetime values for all the purchases the customers make for that product over their total buying experience.

What should a sales manager use to determine customer lifetime value? Average number of touchpoints reaching the customer Total number of support calls Total profit from all customer purchases Average number of contacts with the customer

Total profit from all customer purchases Correct! The total profit margin per average sale is one of the important factors to consider when determining a customer's lifetime value.

What is the first step Ana should take as part of an appropriate customer relationship management strategy? Competitive benchmarking Tracking leads and clients Budgeting for promotion Social media marketing

Tracking leads and clients Correct! Tracking leads and clients is the first customer relationship management strategy.

A small startup company plans to sell affordable footwear manufactured from sustainable materials and has assembled an ethics panel to ensure the products meet this goal. The panel takes into consideration the labor conditions of the distribution channel and if the product can be purchased at the price promised. The ethics panel also wants to know whether the workers in the company can actually afford to purchase the item themselves. Which ethics consideration is being reviewed by this company? Pricing Product Promotion Place

Place Correct! The ethical consideration of place is concerned with the distribution channel and whether it can deliver the product at the price and quality promised, labor conditions for the distribution channel are fair and humane, companies in the distribution channel have similar ethical considerations, and the privacy of customers is protected.

Which three components are part of the marketing mix? Power Professionalism Place Product Promotion People

Place Product Promotion Correct! Place is an element of the marketing mix involved with getting the product from the producer to the customer. The product is an element of the marketing mix that describes something offered to the market in exchange, for which marketing actions are taken and marketing decisions made. Promotion is an element of the marketing mix involving methods for informing and influencing customers to buy a product, including traditional advertising, sales promotion, public relations, personal selling, and digital marketing.

A technology manufacturer creates its smartphones using components with a maximum lifespan of two years. After the two-year period, the customer will likely need to purchase another smartphone. Which behavior is illustrated by this practice? Planned obsolescence Bait and switch Hard selling Pyramid scheme

Planned obsolescence Correct! Planned obsolescence is a policy of designing a product with a limited useful life, putting the consumer under pressure to make another purchase.

Which targeting strategy is synonymous with mass marketing? Undifferentiated marketing Micromarketing Differentiated marketing Concentrated marketing

Undifferentiated marketing Correct! Undifferentiated marketing, also called mass marketing, involves marketing to the entire market the same way.

In working with influencers on a local grocery blog, David was asked to share the contact information of the people who were interviewed for the grocery delivery business. Which ethical conflict does this opportunity present? Using data in ways not disclosed Stereotyping interview participants Engaging in a conflict of interest Avoiding discriminatory practices

Using data in ways not disclosed Correct! David did not disclose to those interviewed that their contact information would be shared with others. This would require the permission of those who were interviewed.

What is customer relationship management (CRM)? Providing public users with access to company data to inform selling opportunities Conducting data analysis about how to better meet the needs of the company Working with software designed to capture external data about customers Using processes implemented by a company that enhance customer interaction

Using processes implemented by a company that enhance customer interaction Correct! CRM is a combination of policies, processes, and strategies implemented by a company that unify its customer interaction and provide a mechanism for tracking customer information.

An electric car manufacturer partner who operates outside of the United States demands a 20% price reduction in rechargeable batteries because of competition with a U.S. car manufacturer. Management at Sure Start Batteries was surprised by the competitive issues. Which marketing planning tool could have provided insight to better anticipate the effects of increased competition? Strategic opportunity matrix SWOT analysis BCG matrix Porter's five forces model

Porter's five forces model Correct! Porter's five forces consist of the following: threat of new entrants (or barriers to entry), threat of substitute products or services, rivalry, bargaining power of buyers, and bargaining power of suppliers. Using this model, the individual could have explored the electric car manufacturer's risk of decreased market share and its impact on the company's bargaining power.

Which part of the marketing mix sets the exchange amount that a company will seek based on the perceived economic value to the customer? Cost Price Profit Revenue

Price Correct! Price is derived from the economic value the customer perceives in the product and the product positioning in the market place. If the customer perceives the product to be of great value, then the customer may be willing to pay much more for the product than the actual production cost.

A company markets its product as the best value in its category. Which positioning strategy is being used by this company? Attributes Price Quality Competition

Price Correct! The price positioning strategy positions the product as the lowest cost or best value.

Pricing a product high to determine the price it commands and to raise profits

Price Skimming

A hotel chain looks to target a variety of travelers by setting a specific cost-per-night level for each of its different hotel brands. Which measure can this hotel target a traveler segment? Price point Bed size Loyalty Geography

Price point Correct! The target market is segment in the hotel industry by price point. The target market for low cost hotels is an economy traveler. Advertising and touch points would be different for this customer than senior executives and entrepreneurs looking for a unique, luxury, personalized experience.

A small startup company plans to sell affordable footwear, manufactured from sustainable materials. Company leadership assembles an ethics panel to ensure their products meet their goals of sustainability and eco-friendliness, while finding a niche market in the marketplace. The members of the ethics panel determines if their products are affordable and can be realistically marketed to certain market segments. Which ethics consideration is this company addressing? Place Promotion Product Pricing

Pricing Correct! The ethics of price consideration involves pricing products at a point that is fair in the market, does not discriminate between different buyers of the same product, does not collude with competitors to fix prices, and does not set prices below market to drive competitors out of the market.

The marketing department hires a research company to conduct surveys with retail owners to evaluate its new product distributed to retailers. Which type of data collection is used in this example? Focus group Consumer Primary Secondary

Primary Correct! Primary research is designed to address a specific company inquiry or problem and is conducted directly with the individuals for whom the inquiry is designed. In this case, the marketing department is hiring a research company to conduct surveys directly with the market, which represents primary research.

David decides to conduct personal interviews with nearby potential customers to determine which variables are considered important when using a grocery delivery service. What type of research is David conducting? Primary and qualitative Primary and quantitative Secondary and quantitative Secondary and qualitative

Primary and qualitative Correct! David will be conducting personal interviews which qualify as primary research and will be asking open-ended, qualitative questions to determine what potential customers would like to receive from their grocery delivery service experience.

A sales manager needs information on potential customers that fit both a specific demographic and live in a specific geographic location. A salesperson suggests using secondary research, but the manager decides to use primary research instead. Why did the manager choose primary research over secondary research for this purpose? Primary research is cheaper to conduct. Secondary research uses historical data. Secondary research uses existing data. Primary research provides richer data.

Primary research provides richer data. Correct! Primary research is customized to the organization's need so the demographic and location targets can be easily incorporated into the process. This will provide the information the manager needs.

When should the BCG matrix be used? When the product industry is in decline When a company has many products When a company has one product When the product industry is a monopoly

When a company has many products Correct! When a company has many different products or even many different lines of business, strategy becomes more complex. The company not only needs to complete a situation analysis for each business, but also needs to determine which businesses warrant focus and investment.

When does market penetration occur? When a company increases production of a product to meet increased demand When a company improves its previous product in a current market When a company removes a line of products to exit a current market When a company increases sales in a market in which its products already exist

When a company increases sales in a market in which its products already exist Correct! Market penetration occurs when a company infiltrates a market in which current products already exist. The best way to achieve this is by gaining the customers of competitors. Other ways include attracting non-users of your product or convincing current clients to use more of your product.

Sure Start's chief marketing officer (CMO) receives feedback that the testimonial campaign did not focus enough on the company's partnership with a specific, well-regarded Asian electric car manufacturer. What type of positioning strategy should the CMO use to address this deficiency? Competition Application Product Price

Product Correct! Positioning by product when there is a strong recognition for the type of product and brand would best address the feedback. Designing a campaign to feature the electrical battery used by reputable car manufacturer would produce higher ratings for the Sure Start brand and would align both companies in the mind of the customer as strong brands.

A company is introducing a new product and wants to conduct market research to position the item for maximum growth and sales. Which component of marketing research provides this information? Customer Corporate Promotion Product

Product Correct! Product research will meet this need and is already part of the research and development process.

A small startup company plans to sell affordable footwear, manufactured from sustainable materials. Company leadership assembles an ethics panel to ensure their products meet their goals of sustainability and eco-friendliness, while finding a niche market in the marketplace. The members of the ethics panel take into consideration the labor conditions under which the materials are grown, harvested, and shipped to market. Which ethics consideration is this company addressing? Place Price Product Promotion

Product Correct! The ethics of product consideration involves the determination of whether or not the product is environmentally friendly, if it provides value and meets the needs of the customers, and if the product is in the best interest of customers in society.

Which three items are controllable elements in the marketing environment? Product Price Place Political Competition Legal

Product Price Place Correct! A company can control the places it sells its products. A company can control the price of its product. A company can control the product it is selling.

A company is marketing a tablet based on its capabilities to be used as both an e-reader and a browsing device. Which positioning strategy is being used by this company? Product attributes Price Competition Quality

Product attributes Correct! Product attribute positioning is based on a characteristic that defines a product and will influence the customer's decision to purchase. In this case, the product attributes being focused on are its multiple use cases.

Which growth strategy utilizes existing markets with new products using the strategic opportunity matrix? Market penetration Diversification Product development Market development

Product development Correct! A product development strategy relates to new products in existing markets.

A PC manufacturer's customers are dissatisfied with their current PCs and want thinner and lighter PCs. The company knows that they can increase sales and profitability by introducing new offerings in the existing market. Which growth strategy is the company pursuing? Diversification Product development Market development Market penetration

Product development Correct! This growth strategy uses new products in the existing market.

An athletic shoe company promotes its new high-performance running shoes by sponsoring a U.S. Olympic athlete. The company wants potential customers to identify with the athlete and see an association between the shoes and the athlete's performance. What is this strategy an example of? Product positioning Market segmentation Geographic marketing Product differentiation

Product positioning Correct! The customers will see the athlete performing at a high level and associate the running shoes with the athlete's competitive advantage. This is an example of product positioning, which is the process of creating an image of the product in the customers' minds.

Sure Start Batteries conducted extensive research and development to produce its line of rechargeable batteries designed for electric cars with the goal of marketing to electric car manufacturers. Which segmentation variable did Sure Start Batteries use to market its batteries? Demographic Psychographic Product-related Undifferentiated

Product-related Correct! Product-related segmentation is differentiated by the customer's relationship with the product. This often relates to the product benefits sought by the customer, user segments (such as heavy users of a product), and brand loyalty. Electric batteries represents a move into sustainable products that have a clearly defined market that is different than the market for traditional batteries.

The director plans to design and implement a marketing campaign. Which example describes the director's primary goal for the marketing campaign? Distributing local food from the warehouse Creating educational resources for citizens Promoting awareness of its food offerings Fundraising for other programs

Promoting awareness of its food offerings Correct! The center will be advertising its three meals to the community. This represents the promotion component of the marketing mix.

Which element of the marketing mix is associated with social media advertising? Promotion Price Place Product

Promotion Correct! Promotion refers to the ways in which is a product is advertised. Social media advertising is associated with the promotion element of the marketing mix.

Which action accurately reflects when permission marketing should be used by a manager? When receiving payment for merchandise Before asking about a buyer's experience When offering marketing messages to buyers Before creating a campaign for a boss

When offering marketing messages to buyers Correct! Permission marketing suggests that if customers give permission, they are open to receive the message. It is used during this type of customer interaction.

What is meant by the term "place" in the marketing mix? Where product ads are posted Where products are manufactured Where products are purchased Where products are shipped from

Where products are purchased Correct! In the marketing mix, the term "place" refers to the distribution of the product. Place might be a traditional brick-and-mortar store, or it could be online.

A small startup company plans to sell affordable footwear, manufactured from sustainable materials. Company leadership has assembled an ethics panel to ensure that the products meet this goal, while finding a niche market in the marketplace. The panel is also considering the marketing claims for the products to determine if the benefits and intrinsic value promised are realistic. Which ethics consideration is this company addressing? Pricing Promotion Place Product

Promotion Correct! The ethics of product promotion considers whether or not the product delivers the benefits advertised, delivers the value promised of the customer, and whether or not the product is being marketed to the appropriate audience.

A realtor has sent VIP invitations to local TV stations, inviting them to a private viewing of beachfront condos to generate media attention. Which element of the marketing mix is represented by this private viewing? Price Product Promotion Place

Promotion Correct! The realtor sent VIP invitations to local TV stations to generate media attention, which represents promotion. Each VIP that attends the event will be able to air the event on the TV station he or she represents.

To boost quarterly sales, a shoe store plans to run a sale for three days. Which pricing strategy is this shoe store using? Prestige Penetration Promotional Skimming

Promotional Correct! The shoe store is running a promotion for a short-term special pricing event. Marketers use promotional pricing to entice customers to act now before it's too late and to increase sales.

Which term is used when the price of a product is lowered for a limited time to attract non-business customers and increase sales volume? Trade discounts Promotional pricing Liquidation pricing Bulk purchasing

Promotional pricing Correct! Promotional pricing is the act of lowering the price of a product for a limited time to attract more customers and increase sales volume.

Which step of the sales cycle describes a salesperson researching targeted customers that may be interested in a product? Prospecting and qualifying Presenting and demonstrating Closing the sale Approaching customers

Prospecting and qualifying Correct! Prospecting and qualifying refers to the research performed to identify targeted customers.

How does a customer relationship management (CRM) system improve services to the customer? Allows customers to pay their bills online using an easy interface Provides information for targeted marketing and sales purposes Provides a social media platform for the organization Allows for secure online chats between sales and customers

Provides information for targeted marketing and sales purposes Correct! A CRM allows an organization to manage customer data and provide information for a targeted marketing and sales purposes.

Which is a benefit that a customer relationship management (CRM) can provide a company? Providing data to the company across the customer life cycle Providing external data to analyze a marketing problem Analyzing total sales per sales personnel Analyzing why a potential customer did not make a purchase

Providing data to the company across the customer life cycle Correct! A CRM is designed to help an organization follow a customer from beginning of the sales process to the end.

A company has decided to target customers who are actively engaged in fitness. What type of segmentation variable is the company using? Location Product Demographic Psychographic

Psychographic Correct! Lifestyle, personality, interests, values, attitudes, and opinions all fall under the psychographic segmentation strategy. In this scenario, the company is targeting customers based on their fitness lifestyles, which represents psychographic segmentation.

A marketing manager wants to better understand customer wants and needs in a product. The marketing department sends out an open ended question survey with a 10% off coupon to current customers to ask about their product preferences. Which kind of research is this survey? Secondary Qualitative Quantitative Tertiary

Qualitative Correct! This kind of open-ended survey is an example of qualitative research. "Qualitative research explores ideas, perceptions, and behaviors in depth with a relatively small number of research participants."

A sales manager is analyzing the sales reports for the prior year in an effort to budget for the next year's marketing. What type of data is this manager reviewing? Primary Qualitative Tertiary Quantitative

Quantitative Correct! Sales numbers represent quantitative, numerical data that can be used to budget for next year's marketing. The data are secondary because the sales department generated the data without the marketing manager's input.

A beverage company purchases advertising to introduce a new line of energy drinks. Which stage of the customer life cycle does this action illustrate? Conversion Acquisition Reach Retention

Reach Correct! Reach is the stage of the customer life cycle in which the seller is endeavoring to attract the attention of a prospective customer.

Andie is interested in working for a competitor to one of her clients. She asks her client if he knows what fees for services the competitor provides. Which ethical factor did the consultant disregard? Providing fair value Renegotiating the contract Respecting confidential information Overselling results

Respecting confidential information Correct! Andie should not violate respect for confidential information in relation to the amount that a competitor is willing to offer.

Ana has now grown the business to include trash, mixed paper, and plastic waste processing. The cost of electricity has increased significantly in the past three years. Ana is faced with the reality that prices must be raised because the company is too small to achieve economies of scale. Ana has already spoken with each client, and each has committed to the trash business for at least five more years. Which kind of equity is being demonstrated by this situation? Value Acquisition Retention Brand

Retention Correct! Retention equity is the tendency of the customer to stick with the brand even when it is priced higher than an otherwise equal product. These customers are committing, even with increased prices.

A company sends an email to its customers with a 20% off coupon, if they make a purchase within the next 48 hours. Which stage of the customer life cycle does this action illustrate? Reach Retention Acquisition Conversion

Retention Correct! The company is sending emails to existing customers. This is an example of retention. Retention is the stage of the customer life cycle where a seller engages with current customers in an effort to maintain them as customers going forward.

A person has a computer using Platform A. When it comes time to replace the computer, the Platform A computer costs $1,000, while a comparable Platform B computer costs $500. The person chooses to purchase the Platform A computer despite the difference in cost. Which driver to customer equity does this individual's decision represent? Brand equity Acquisition equity Value equity Retention equity

Retention equity Correct! Retention equity explains the tendency of the customer to stick with the brand even when it is priced higher than an otherwise equal product.

What is a driver for customer equity? Earnings equity Retention equity Shareholder equity Newsworthy equity

Retention equity Correct! The three main drivers of customer equity are brand, retention, and value equity.

When visiting an ice cream shop, an individual always choose the mint chip flavor. What type of problem-solving behavior is this individual exhibiting? Limited Involvement Routine Extended

Routine Correct! You always choose mint chip ice cream, which is a routine. Routine problem-solving refers to when automatic purchase decisions are based on limited information or information the buyer has gathered in the past.

A new and used textbook store opens in a college town, and the owners want to reach as many of the students and staff as possible to draw in business. Which strategy is effective in reaching these B2C customers? Running advertising on local radio stations Offering discounts for large purchases of the same textbook Meeting with school administrators Buying overstocked titles from the college bookstore

Running advertising on local radio stations Correct! One of the ways to market to a large consumer audience is to run advertising on local radio stations. B2C marketing is usually not as specialized and personalized as B2B marketing is.

What is the relationship between sales and marketing in a firm's business strategy? Sales includes the exchange of money of a company's product or service, while marketing is the process of communicating the value of a product or service. Sales includes the process of communicating the value of a product or service, while marketing focuses on the actual exchange of money for a product or service. Sales includes calculating how much profit has been earned for a company within a fiscal year, while marketing is the process of communicating the value of a product or service. Sales includes the process of communicating the value of a product or service, while marketing involves calculating how much profit has been earned for a company within a fiscal year.

Sales includes the exchange of money of a company's product or service, while marketing is the process of communicating the value of a product or service. Correct! Sales includes the actual sale of the company's product, however marketing often works to help customers make their actual decision to purchase by communicating value.

A hardware store sends a coupon to every resident of a town offering 10% off all services. What type of marketing mix strategy is the hardware store using? Guerilla marketing Sales promotion Content marketing Personal selling

Sales promotion Correct! In the scenario, a sales promotion is being offered to the public. In this case the 10 percent off is providing a direct incentive for customers to make an immediate purchase of the product.

A consumer recognizes the need to upgrade a smartphone to a newer model. The consumer spends significant time finding reviews on the latest models available from various manufacturers. Which step of the buying process is illustrated by this consumer's actions? Search Decision Evaluation Opportunity

Search Correct! Spending time finding reviews and looking for information on the internet is the search phase. During this phase, the consumer will only be looking for this information. At this point, there is no evaluation.

Which type of research consists of source data previously collected for other purposes? Primary Secondary Psychographic Ethnographic

Secondary Correct! Secondary data are just the data collected for some other reason or purpose. These data have been "previously collected for other purposes."

The owner of a small business wants to invest in expansion and needs demographic data on customers in the area, but has a small budget for this kind of information. Which kind of research will fit this owner's needs? Ethnographic Psychographic Secondary Primary

Secondary Correct! Secondary research is more cost-effective than primary research and applies to a larger group or situation. "Secondary data are more cost-effective and may even be freely available."

Ana has been approached by a packaging customer who needs plastic waste processing services, but she is concerned that additional financing would be needed to maintain both the trash and mixed-paper processing as well as a new service line. Which approach creates the most value for Ana if the plastic processing is also adopted? Securing additional repeat clients Generating business interest Creating brand awareness Capturing many one-time customers

Securing additional repeat clients Correct! A high customer lifetime value occurs when clients are loyal and repeat their business.

A group of marketers is collecting their own data for an organization's business project. They will be storing the records in a shared file that all organizational employees can access. Which ethical issue should these researchers be concerned with in regard to these data? Security Development Production Creation

Security Correct! Security will ensure that personal data will not be compromised by internal marketing researchers and employees. This will also ensure that a public data breach will not occur.

What is the term used to describe the practice of identifying customers who might be interested in a company's products or services? Demographic Marketing Promotion Segmentation

Segmentation Correct! Segmentation is the process of dividing the market into subgroups of consumers.

A customer mentions that the motivation for purchasing a luxury appliance in the store is due to the desire to "reach my highest potential as a chef." What stage of the "need hierarchy" is this customer displaying? Belonging Physiological Security Self-actualization

Self-actualization Incorrect. Physiological needs describe the basic requirements of satisfying hunger, thirst, shelter, and other primary physical needs. This customer is not trying to meet his basic need of satisfying his hunger, but to create gourmet dishes, which represents the self-actualization stage.

A company develops a new, high end product which has no direct competition that is popular with customers. The company seeks to temporarily set the price of the product high to gain as much profit as possible. What is this name of this pricing strategy? Skimming Penetration Competitive Bundling

Skimming Correct! Since the product is a high end product with little competition, the company is seeking to skim as much profit from the new product until substitute products become available.

David decides to conduct additional research by posting targeted questions on a recipe publishing platform and network for cooks. The plan is to review all the responses and determine whether influencers will recommend grocery shopping services. Which research technique is David using? Experimental research Social listening Behavioral observation Groupthink

Social listening Correct! Social listening occurs when someone posts on social media and the company listens carefully to the responses to determine what is being directly and indirectly communicated.

The marketing manager for a small company has no budget for research. The manager decides to investigate what customers are saying about the company's products online instead of using more costly approaches. Which primary marketing technique is being used by this manager? Social listening Observation research Focus groups Ethnographic research

Social listening Correct! This "primary marketing research technique monitors or engages with social media communities to gather information."

Which ethical consideration in marketing is illustrated by the community center's meal program? Offering food to everyone Posting community testimonials Creating new partnerships Providing dairy-free products

Offering food to everyone Correct! It will be important that the center offer its meals to everyone who comes to the center, without asking for any information. The center is being provided with fresh meats, vegetables, fruits, and breads for the food insecure in the community, and the director will not know who is food insecure and who is not.

A company uses unified and constant communication to reach its customers, including print media, retail signage, an e-commerce website, and social media. What type of communication is this company using? Personal selling Bundling Omnichannel Influencer marketing

Omnichannel Correct! Omnichannel communication seeks to provide unified and consistent communication with customers across all channels a company employs. As the scenario suggests, the company is using both digital and print forms of communication and promotional materials.

A uniform customer experience across all ways a customer may engage with a company, for example in-store and website.

Omnichannel retailing

A consumer sees an advertisement for soccer shoes presented by a celebrity soccer athlete and decides to purchase a pair. What kind of interpersonal influence is illustrated by this decision? Family Culture Opinion leader Ethnic group

Opinion leader Correct! The athlete is an example of a paid opinion leader. An opinion leader has a high level of influence and can mold the responses of the group around them.

The vice president (VP) of sales for an auto parts supplier reviews the most recent quarter's sales numbers and notes a 20% decline in sales from the previous three quarters. Based on these declining numbers, the company reduces current orders to suppliers. Which type of influence over purchasing does this company decision reflect? Governmental Environmental Organizational Interpersonal

Organizational Correct! The organization is responding to a decline in sales that would reduce the need for products typically ordered from suppliers. There is a direct relationship between sales and orders.