Marketing

There are four service characteristic: intangibility, inseparability, variability, perishability.

True. intangibility: Services cannot be seen, tasted, felt, heard or smelled before purchase. inseparability: Services cannot be separated from their providers. variability: Quality of services depends on who provides them and when, where, and how. perishability: Services cannot be stored for later sale or use.

There are 3 types of VMS: Corporate VMS, Contractual VMS and Administered VMS.

True. • Corporate VMS: A vertical marketing system that combines successive stages of production and distribution under single ownership—channel leadership is established through common ownership (e.g. Zara). • Contractual VMS: A vertical marketing system in which independent firms at different levels of production and distribution join together through contracts (mostly franchising, e.g., Subway). • Administered VMS: A vertical marketing system that coordinates successive stages of production and distribution through the size and power of one of the parties (e.g., P&G, Walmart).

Team-based new-product development is an approach to developing new products in which various company departments work closely together, overlapping the steps in the product development process to save time and increase effectiveness

True. • Customer-centered new-product development: New-product development that focuses on finding new ways to solve customer problems and create more customer satisfying experiences. • Systematic new-product development: holistic and systematic process rather than compartmentalized

In the growth stage of a product life-cycle, company should maximize profit while defending market share.

False, company should do that in the maturity stage. -Introduction stage: Creat product awareness and trial. • Growth stage: Maximize market share. • Decline stage: Reduce expenditure and milk the brand.

Aldi's pricing strategy is value-added pricing.

False. Customer value-based pricing: Setting price based on buyers' perceptions of value rather than on the seller's cost. • Good-value pricing: Offering the right combination of quality and good service at a fair price (e.g, Aldi, Ryanair). • Value-added pricing: Attaching value-added features and services to differentiate a company's offers and charging higher prices.

Evernote's positioning statement is: "To busy multitaskers who need help remembering things, Evernote is a digital content management application that makes it easy to capture and remember moments and ideas from your everyday life using your computer, phone, tablet, and the web.". This statement is not in the right form.

False. Positioning statement: A statement that summarizes company or brand positioning. It takes this form: To (target segment and need) our (brand) is (concept) that (point of difference). • Has to be delivered and communicated: Marketing Mix

Public relations have weak impact possible with less control but lower costs than advertising.

False. Strong impact possible, but less control • Lower costs than advertising

In cost-based pricing, the amount of products and the volume of production are not that important.

False. Cost-based pricing: Setting prices based on the costs for producing, distributing, and selling the product plus a fair rate of return for effort and risk.

A buying center is a set of buying roles assumed by one person for different purchases.

False. Buying center: All the individuals and units that play a role in the purchase decision-making process. • Not a fixed and formally identified unit within the buying organization. • Set of buying roles assumed by different people for different purchases. • Within the organization, the size and makeup of the buying center will vary for different products and for different buying situations.

Customer-perceived value is all about the price of a marketing offer relative.

False. Customer-perceived value: The customer's evaluation of the differences between all the benefits and all the costs of a marketing offer relative to those of competing offers.

Company should look at international trade system, social environment, physical environment and cultural environment before deciding to get global.

False. It should look at: • International trade system • Economic environment • Political-legal environment • Cultural environment

If a brand collapses with another brand in the same market in a positioning map that means it's a good positioning.

False. It's a bad positioning. If it doesn't collapse with other brands it's good positioning because that means they don't have competitors.

National brand is a brand created and owned by a reseller of a product or service.

False. It's store brand's definition. • National brand: manufacturer's brand • Licensing: companies license names or symbols previously created by other manufacturers, names of well-known celebrities, or characters from popular movies and books. • Co-branding: The practice of using the established brand names of two different companies on the same product.

Personal contact method in marketing research has a fair response rate but it doesn't cost much.

False. Response rate is good but it costs much.

Systems selling (or solutions selling) is a complex buying situation which buyer buys every product or service from different sellers.

False. Systems selling (or solutions selling): Buying a packaged solution to a problem from a single seller, thus avoiding all the separate decisions involved in a complex buying situation.

Adoption process has 5 stages: awareness, interest, evaluation, trial, purchase.

False. The last stage is not purchase, it is adoption.

There is a higher risk and more competition on global market. A company should go global only if the international market provides better opportunities for growth.

False. There are some other reasons: • Counteracting attacks of global competitors in a company's home market • Customers expand abroad and require international servicing • International markets provide growth opportunities

Buzz marketing involves enlisting or even creating opinion leaders to serve as "brand ambassadors" who spread the word about a company's products. This is a cultural factor to influence buyers.

False. This is a social factor (groups and social networks, family, roles and status). Culture: The set of basic values, perceptions, wants, and behaviors learned by a member of society from family and other important institutions. Opinion leader: A person within a reference group who, because of special skills, knowledge, personality, or other characteristics, exerts social influence on others

Stars produce a lot of the cash that the company uses to pay its bills and support other SBUs that need investment.

False. This is cash cows; low-growth, high-share businesses or products. These established and successful SBUs need less investment to hold their market share. Stars are high-growth, high-share businesses or products. They often need heavy investments to finance their rapid growth. Eventually their growth will slow down, and they will turn into cash cows

The customer-managed relationship is the brand exchanges created by consumers themselves— both invited and uninvited— by which consumers are playing an increasing role in shaping their own brand experiences and those of other consumers.

False. This is consumer-generated marketing. Customer-managed relationships: Marketing relationships in which customers, empowered by today's new digital technologies, interact with companies and with each other to shape their relationships with brands.

Customer equity is the the value of the entire stream of purchases that the customer would make over a lifetime of patronage.

False. This is customer lifetime value. Customer equity: The total combined customer lifetime values of all of the company's customers

Product concept is the idea that consumers will favor products that are available and highly affordable and that the organization should therefore focus on improving production and distribution efficiency.

False. This is production concept. Product concept: The idea that consumers will favor products that offer the most quality, performance, and features and that the organization should therefore devote its energy to making continuous product improvements.

Exploratory research is the marketing research to better describe marketing problems, situations, or markets, such as the market potential for a product or the demographics and attitudes of consumers.

False. This is the definition of descriptive research. Exploratory research: Marketing research to gather preliminary information that will help define problems and suggest hypotheses.

Value delivery network is the series of internal departments that carry out value creating activities to design, produce, market, deliver, and support a firm's products.

False. This is value chain. Value delivery network: The network made up of the company, its suppliers, its distributors, and, ultimately, its customers who partner with each other to improve the performance of the entire system.

An organization is buying tires to make cars. Tires are consumer product here.

False. • Consumer product: A product bought by final consumers for personal consumption. • Industrial product: A product bought by individuals and organizations for further processing or for use in conducting a business. • Organizations, persons, places, and ideas (social marketing) as products. (e.g. IAMSTERDAM)

Product life cycle is the course of a product's sales and profits over its lifetime. It involves five distinct stages

True. -Introduction stage: The PLC stage in which a new product is first distributed and made available for purchase. No positive profits. • Growth stage: The PLC stage in which a product's sales start climbing quickly. • Maturity stage: The PLC stage in which a product's sales growth slows or levels off. Renewing the product might be a good decision. • Decline stage: The PLC stage in which a product's sales decline.

Brand equity is the differential effect that knowing the brand name has on customer response to the product or its marketing.

True. Brand value: The total financial value of a brand.

Undifferentiated (mass) marketing: A market-coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer.

True. Differentiated (segmented) marketing: A market-coverage strategy in which a firm decides to target several market segments and designs separate offers for each.

Market-penetration pricing is setting a low price for a new product to attract a large number of buyers and a large market share.

True. Market-skimming pricing (price skimming): Setting a high price for a new product to skim maximum revenues layer by layer from the segments willing to pay the high price; the company makes fewer but more profitable sales.

If Redbull started to sell Redbull filled chocolates, they would have a product mix width.

True. Product mix (or product portfolio): The set of all product lines and items that a particular seller offers for sale. • Product mix width refers to the number of different product lines the company carries. • Product mix length refers to the total number of items a company carries within its product lines. • Product mix depth refers to the number of versions offered for each product in the line.

Push strategy is a promotion strategy that calls for using the sales force and trade promotion to push the product through channels. The producer promotes the product to channel members who in turn promote it to final consumers.

True. Pull strategy: A promotion strategy that calls for spending a lot on consumer advertising and promotion to induce final consumers to buy the product, creating a demand vacuum that "pulls" the product through the channel.

The research plan outlines sources of existing data and spells out the specific research approaches, contact methods, sampling plans, and instruments that researchers will use to gather new data.

True. Research approach: Observation, survey, experiment. Contact Methods: Mail, telephone, personal, online. Sampling plan: Sampling unit, sample size, sampling procedure. Research Instruments: Questionnaire, mechanical instruments.

Choosing among major media types and deciding on media timing have no parts on developing advertising strategy.

False.

If Coca-Cola started to sell beer tasted cola, it would be product line stretching.

False, it would be product mix filling. Product line: A group of products that are closely related because they function in a similar manner, sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges. • Product line length: the number of items in the product line. • Product line filling involves adding more items within the present range of the line • Product line stretching occurs when a company lengthens its product line beyond its current range.

Standardized global marketing is an international marketing strategy that adjusts the marketing strategy and mix elements to each international target market, bearing more costs but hoping for a larger market share and return.

False, it's adapted global marketing's definition. • Standardized global marketing: An international marketing strategy that basically uses the same marketing strategy and mix in all of the company's international markets.

Cost-plus pricing (markup pricing) is a cost-based pricing strategy that setting price to break even on the costs of making and marketing a product or setting price to make a target return

False, it's break-even pricing (target return pricing)'s definition. Cost-plus pricing (markup pricing): Adding a standard markup to the cost of the product.

Trade promotions are sales promotion tools used to generate business leads, stimulate purchases, reward customers, and motivate salespeople.

False, it's business promotions' definition. • Consumer promotions: Sales promotion tools used to boost short-term customer buying and involvement or enhance long-term customer relationships. • Event marketing (or event sponsorships): Creating a brand-marketing event or serving as a sole or participating sponsor of events created by others. • Trade promotions: Sales promotion tools used to persuade resellers to carry a brand, give it shelf space, promote it in advertising, and push it to consumers.

Product adaptation is a global communication strategy of fully adapting advertising messages to local markets.

False, it's commınication adaptation's definition. Straight product extension: Marketing a product in a foreign market without making significant changes to the product. Product adaptation:Adapting a product to meet local conditions or wants in foreign markets. product invention: Creating new products or services for foreign markets.

Micromarketing is a market-coverage strategy in which a firm goes after a large share of one or a few segments or niches.

False, it's concentrated (niche) marketing. Micromarketing: Tailoring products and marketing programs to the needs and wants of specific individuals and local customer segments; It includes local marketing and individual marketing • Local marketing: Tailoring brands and marketing to the needs and wants of local customer segments—cities, neighborhoods, and even specific stores. • Individual marketing: Tailoring products and marketing programs to the needs and preferences of individual customers.

Vertical marketing system (VMS) is a channel consisting of one or more independent producers, wholesalers, and retailers, each a separate business seeking to maximize its own profits, even at the expense of profits for the system as a whole.

False, it's conventional distribution channel's definition. Vertical marketing system (VMS): A distribution channel structure in which producers, wholesalers, and retailers act as a unified system. One channel member owns the others, has contracts with them, or has so much power that they all cooperate. • Horizontal marketing system: A channel arrangement in which two or more companies at one level join together to follow a new marketing opportunity (e.g., Microsoft and Yahoo).

Mcdonald's uses ethnic groups for segmentation. It's a right choice because our eating habits, taste choices are under influence of our ethnic group. Ethnic group is under the geographic segmentation.

False, it's demographic segmentation. Geographic: Nations, regions, states, counties, cities, neighborhoods, population density (urban, suburban, rural), climate. Demographic: Age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, generation. Psychographic: Lifestyle, personality. Behavioral: Occasions, benefits, user status, usage rate, loyalty status.

Deficient products are products that give both high immediate satisfaction and high long-run benefits.

False, it's desirable products' definition. Deficient products: Products that have neither immediate appeal nor long-run benefits. (Bad tasting, inefficient medicine) Pleasing products: Products that give high immediate satisfaction but may hurt consumers in the long run. (cigarettes, junk food) Salutary products: Products that have low immediate appeal but may benefit consumers in the long run. (bicycle helmets) Desirable products: E.g. tasty and nutricious breakfast food.

Discount and allowance pricing strategy is adjusting prices continually to meet the characteristics and needs of individual customers and situations.

False, it's dynamic pricing strategy's definition. Discount and allowance pricing: Reducing prices to reward customer responses such as volume purchases, paying early, or promoting the product. Segmented pricing: Adjusting prices to allow for differences in customers, products, or locations. Psychological pricing: Adjusting prices for psychological effect. Promotional pricing: Temporarily reducing prices to spur short-run sales. Geographical pricing: Adjusting prices to account for the geographic location of customers. International pricing: Adjusting prices for international markets.

E-business consists of company efforts to communicate about, promote, and sell products and services over the Internet.

False, it's e-marketing's definition. • E-business involves the use of electronic platforms - intranets, extranets and the Internet - to conduct a company's business. • E-commerce involves buying and selling processes supported by electronic means, primarily the Internet.

Fashion is a temporary period of unusually high sales driven by consumer enthusiasm and immediate product or brand popularity.

False, it's fad's definition. • Style: A basic and distinctive mode of expression. A style has a cycle showing several periods of renewed interest. • Fashion: A currently accepted or popular style in a given field. Fashions tend to grow slowly, remain popular for a while, and then decline slowly.

Habitual buying behavior is a consumer buying behavior in situations characterized by low consumer involvement but significant perceived brand differences.

False, this is variety-seeking buying behavior (e.g. cookies). Habitual buying behavior: Consumer buying behavior in situations characterized by low-consumer involvement and few significantly perceived brand differences (e.g. salt).

Idea generation is screening new-product ideas to spot good ideas and drop poor ones as soon as possible.

False, it's idea screening. New Product Development Process • Idea generation: internal, external idea sources and crowdsourcing. - Idea screening. • Product concept: A detailed version of the new-product idea stated in meaningful consumer terms. • Concept testing: Testing new-product concepts with a group of target consumers to find out if the concepts have strong consumer appeal. - Marketing Strategy Development: Designing an initial marketing strategy for a new product based on the product concept. Business analysis: A review of the sales, costs, and profit projections for a new product to find out whether these factors satisfy the company's objectives. • Product development: Developing the product concept into a physical product to ensure that the product idea can be turned into a workable market offering. • Test marketing: The stage of new-product development in which the product and its proposed marketing program are tested in realistic market settings. • Commercialization: Introducing a new product into the market.

Internal marketing is training service employees in the fine art of interacting with customers to satisfy their needs.

False, it's interactive marketing. Internal marketing: Orienting and motivating customer contact employees and supporting service people to work as a team to provide customer satisfaction.

Exporting is entering foreign markets by joining with foreign companies to produce or market a product or service.

False, it's joint venturing's definition. Exporting: Entering a foreign market by selling goods produced in the company's home country, often with little modification. • Joint venturing: - Licensing: A method of entering a foreign market in which the company enters into an agreement with a licensee in the foreign market. - Contract manufacturing: A joint venture in which a company contracts with manufacturers in a foreign market to produce the product or provide its service. - Management contracting: A joint venture in which the domestic firm supplies the management know-how to a foreign company that supplies the capital; the domestic firm exports management services rather than products. - Joint ownership: A joint venture in which a company joins investors in a foreign market to create a local business in which the company shares joint ownership and control. • Direct investment: Entering a foreign market by developing foreign-based assembly or manufacturing facilities.

Online marketing is marketing messages, promotions, and othercontent delivered to on-the-go consumers through mobile phones, smartphones, tablets, and other mobile devices.

False, it's mobile marketing's definition. • Online marketing: Marketing via the Internet using company Web sites, online ads and promotions, e-mail, online video, and blogs. • Social media: Independent and commercial online communities where people congregate, socialize, and exchange views and information.

Advertising is short-term incentives to encourage the purchase or sale ofa product or service.

False, it's sales promotion's definition. Advertising: Any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor. • Personal selling: Personal presentation by the firm's sales force for the purpose of making sales and building customer relationships. • Public relations (PR): Building good relations with the company's various publics by obtaining favorable publicity, building up a good corporate image and handling or heading off unfavorable rumors, stories, and events. • Direct and social-media marketing: Engaging and interacting directly with carefully targeted individual consumers and consumer communities to both obtain an immediate response and cultivate lasting customer relationships.

intensive distribution is the use of more than one but fewer than all the intermediaries who are willing to carry the company's products.

False, it's selective distribution's definition. • Intensive distribution: Stocking the product in as many outlets as possible. • Exclusive distribution: Giving a limited number of dealers the exclusive right to distribute the company's products in their territories.

The second part of marketing strategy statement describes the planned long-run sales, profit goals, and marketing mix strategy.

False, it's the third part. - The first part describes the target market; the planned value proposition; and the sales, market share, and profit goals for the first few years. - The second part outlines the product's planned price, distribution, and marketing budget for the first year.

Fixed costs (overhead) are osts that vary directly with the level of production.

False, it's variable costs' definition. • Fixed costs (overhead): Costs that do not vary with production or sales level. • Total costs: The sum of the fixed and variable costs for any given level of production.

Macroenvironment is the larger societal forces that affect the microenvironment— such as the company, suppliers, marketing intermediaries, customer markets, competitors, and publics.

False, the forces in macroenvironment are demographic, economic, natural, technological, political, and cultural forces. Microenvironment: The actors close to the company that affect its ability to serve its customers—the company, suppliers, marketing intermediaries, customer markets, competitors, and publics.

There are 4 types of advertising objectives: Informative advertising, persuasive advertising, reminder advertising and competitive advertising.

False, the last one (competitive advertising) is not an advertising objevtive.

Marketers have some chance of changing core values but little chance of changing secondary values.

False, the opposite.

Revlon's product-oriented definition is "We sell lifestyle and self-expression; success and status; memories, hopes and dreams." and its market-oriented definition is "We make cosmetics".

False, the opposite.

Motive (drive) is the process by which people select, organize, and interpret information to form a meaningful picture of the world.

False, this definition belongs to perception. Motive (drive): A need that is sufficiently pressing to direct the person to seek satisfaction of the need. Perception is selective (attention, distortion, retention).

Complex buying behavior is a consumer buying behavior in situations characterized by high involvement but few perceived differences among brands.

False, this is dissonance-reducing buying behavior (e.g. carpets). Complex buying behavior: Consumer buying behavior in situations characterized by high consumer involvement in a purchase and significant perceived differences among brands (e.g. cars).

When choosing a targeting strategy company should think about company resources, product variability, product life cycle, market variability, competitor's marketing strategies

True.

When deciding which markets to enter, company should make a research about indicators of market potential such as demographic characteristics, sociocultural factors, geographic characteristics, political and legal factors, economic factors.

True.

Wholesalers buy mostly from producers and sell mostly to retailers, industrial consumers, and other wholesalers. As a result, many of the nation's largest and most important wholesalers are largely unknown to final consumers.

True.

A customer-driven marketing strategy involves two key questions: "Which customers will we serve" and "How will we create value for them".

True

A competitor's strength is a threat to the company.

True.

According to Maslow's theory starving people will not take an interest in the latest happenings in the art world because there's a hierarchic order between the needs.

True.

Brand content marketing is creating, inspiring, and sharing brand messages and conversations with and among consumers across a fluid mix of paid, owned, earned, and shared channels.

True.

Business markets have four additional segmentation variables: Customer operating characteristics, purchasing approaches, situational factors, personal characteristics.

True.

Buyer Decision Process starts with need recognition; includes information search, evaluation of alternatives, purchase decision; ends with postpurchase behaviour.

True.

Causal research is the marketing research to test hypotheses about cause-and-effect relationships.

True.

Company should determine reach (percentage of people in the target market who are exposed to the ad campaign during a given period of time), frequency (how many times the average person in the target market is exposed to the message), impact (qualitative value of message exposure through a given medium), and engagement (e.g. ratings, readership, listenership, and click-through rates).

True.

Competition-based pricing strategy is setting prices based on competitors' strategies, prices, costs, and market offerings.

True.

Conducting online marketing has 4 major steps: Setting up online social networks, creating a website, placing ads or promotions online, using e-mails.

True.

Crowdsourcing is inviting broad communities of people- customers, employees, independent scientists and researchers, and even the public at large-into the new product innovation process.

True.

Customer relationship management (CRM) is managing detailed information about individual customers and carefully managing customer touch points to maximize customer loyalty.

True.

Defining the company's mission; setting objectives and goals; designing the business portfolio are the corporate level of strategic planning.

True.

Differentiation and positioning strategy steps are identifying possible value differences and competitive advantages; choosing the right competitive advantages; selecting an overall positioning strategy.

True.

Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate products or marketing programs is market segmentation.

True.

Global firm is a firm that, by operating in more than one country, gains R&D, production, marketing, and financial advantages in its costs and reputation that are not available to purely domestic competitors.

True.

If Marlboro increases its price, people switch to another brand. That means the demand is elastic.

True.

Joint venturing differs from exporting in that the company joins with a host country partner to sell or market abroad. It differs from direct investment in that an association is formed with someone in the foreign country.

True.

Marketing return on investment (or marketing ROI) is the net return from a marketing investment divided by the costs of the marketing investment.

True.

Objective-and-task method has 3 steps for developing the promotion budget by (1)defining specific promotion objectives, (2)determining the tasks needed to achieve these objectives, and (3) estimating the costs of performing these tasks. The sum of these costs is the proposed promotion budget.

True.

Perceptual positioning maps show consumer perceptions of their brands versus competing products on important buying dimensions.

True.

Salesperson is an individual representing a company to customers by performing one or more of the following activities: prospecting, communicating, selling, servicing, information gathering, and relationship building.

True.

Segments must be measurable, accessible, substantial, differentiable and actionable.

True.

Strategic planning is the process of developing and maintaining a strategic fit between the organization's goals and capabilities and its changing marketing opportunities.

True.

We define marketing as the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return.

True.

In making products and services available to consumers, channel members add value by bridging the major time, place, and possession gaps that separate goods and services from those who use them. Members of the marketing channel perform many key functions.

True. •Information: Gathering and distributing information about consumers, producers, and other actors and forces in the marketing environment needed for planning and aiding exchange. •Promotion: Developing and spreading persuasive communications about an offer. •Contact: Finding and engaging customers and prospective buyers. •Matching: Shaping offers to meet the buyer's needs, including activities such as manufacturing, grading, assembling, and packaging. •Negotiation: Reaching an agreement on price and other terms so that ownership or possession can be transferred. Fulfilling completed transactions: •Physical distribution: Transporting and storing goods. •Financing: Acquiring and using funds to cover the costs of the channel work. •Risk taking: Assuming the risks of carrying out the channel work.

There are 4 types of retailers: Amount of service, product line, relative prices and organization.

True. • Amount of service: self-service vs. full-service retailers • Product line: e.g., speciality stores, department stores, supermarkets, etc. • Relative prices: e.g, discount stores, outlets • Organization: e.g., franchise, voluntary chain

Coca-Cola uses different colors for different tastes, e.g. Coca-Cola Cherry. This brand development strategy is named line extension.

True. • Line extension: Extending an existing brand name to new forms, colors, sizes, ingredients, or flavors of an existing product category. • Brand extension: Extending an existing brand name to new product categories. • Multibrand: Companies market many different brands in a given product category (e.g. P&G).

Innovative marketing is a principle of sustainable marketing that requires a company seek real product and marketing improvements.

True. Business actions toward sustainable marketing five principles: • Consumer-oriented marketing: A principle of sustainable marketing that holds a company should view and organize its marketing activities from the consumer's point of view. • Customer-value marketing: A principle of sustainable marketing that holds a company should put most of its resources into customer-value-building marketing investments. • Sense-of-mission marketing: A principle of sustainable marketing that holds a company should define its mission in broad social terms rather than narrow product terms. • Societal marketing: A principle of sustainable marketing that holds a company should make marketing decisions by considering consumers' wants, the company's requirements, consumers' long-run interests, and society's long-run interests.

Marketing Information System (MIS) is defined as people and procedures for assessing information needs, developing the needed information, and helping decision makers to use the information to generate and validate actionable customer and market insights.

True. Companies must design effective marketing information systems that give managers the right information, in the right form, at the right time and help them to use this information to create customer value and stronger customer relationships.

Sources to develop marketing informations are internal databases, competitive marketing intelligence and marketing research.

True. Internal databases: Electronic collections of consumer and market information obtained from data sources within the company network. • Competitive marketing intelligence: The systematic collection and analysis of publicly available information about consumers, competitors, and developments in the marketing environment. • Marketing research: The systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization.

Demand in business markets is more inelastic.

True. It is not affected as much in the short run by price changes.

The MINI automobile has an instantly recognizable personality as a clever and sassy but powerful little car. MINI owners—who sometimes call themselves "MINIacs"—have a strong and emotional connection with their cars. This is because the MINI appeals to personality segments.

True. Marketers use a concept related to personality—a person's self-concept (also called self-image). The idea is that people's possessions contribute to and reflect their identities—that is, "we are what we consume." So MINI appeals to people who are "adventurous, individualistic, openminded, creative, tech-savvy, and young at heart," just like the car.

Under Armour added athletic shoes to its apparel lines in 2006, and it continues to introduce innovative new athletic-footwear products, such as the recently added Under Armour SpeedForm line. What Under Armour does is product development.

True. Product development: same market, new products.

Probability sample types are sample random sample, stratified random sample and cluster (area) sample.

True. Simple random sample: Every member of the population has a known and equal chance of selection. stratified random sample: The population is divided into mutually exclusive groups (such as age groups), and random samples are drawn from each group. cluster (area) sample: The population is divided into mutually exclusive groups (such as blocks), and the researcher draws a sample of the groups to interview.

Nonprobability sample types are convenience sample, judgment sample and quota sample.

True. convenience sample: The researcher selects the easiest population members from which to obtain information. judgment sample: The researcher uses his or her judgment to select population members who are good prospects for accurate information. quota sample: The researcher finds and interviews a prescribed number of people in each of several categories.