MKT 320F Final
Company profile: "Our products are sold in more than 35 markets around the world and our global independent sales force exceeds 2 million." A. Societal B. Product-oriented C. Sales-oriented D. Market-oriented
Answer: C. Sales-oriented
Which marketing management philosophy focuses on the question, "What do customers want and need?" A. Sales B. Production C. Product D. Market E. Internal
Answer: D. Market
As part of the marketing team at GoPro, you need to develop a promotion plan. You've decided that the key target market is consumers under 30 who have an active lifestyle. The positioning for the camera is: "Smaller, lighter, mightier still." What promotional tools will you use to get this message across to the target market? Choose all that apply. A. Coupons for online purchase B. Public relations campaign C. Sweepstakes to win a camera and package of accessories D. Advertisements on day-time television E. Social media campaign on Facebook
Answer: B. Public relations campaign C. Sweepstakes to win a camera and package of accessories E. Social media campaign on Facebook There is no 100% correct answer! While using all of these tools is possible, there are advantages and disadvantages for each. Nevertheless, it is good practice to use more than one to achieve integrated marketing communications. Television advertisements might have a wider reach but they're expensive. A social media campaign directed to the target market would further promote advocates for the brand. However, there is less control over the messaging and GoPro would need to monitor the campaign. Coupons would help stimulate purchases and a sweepstakes would reinforce messages promoted through advertisements, yet both of these are fairly impersonal. Lastly, public relations are often free for companies but there's a lack of control over the messaging.
Runners recovering from an injury: Product Configuration A. Minimal structure B. More aggressive ankle protection and tread pattern, waterproof C. More structured shoes with endorsement and sales
Answer: C. More structured shoes with endorsement and sales
Which type of consumer sales promotion rewards loyal consumers for making multiple purchases of a particular good or service? A. A frequent buyer program B. A premium program C. A net worth program D. An 80/20 program E. A continuity program
Answer: A. A frequent buyer program These are also called loyalty programs.
Reasons A. I want to convince heavy-duty cleaners that our products meet their needs. Other less intense cleaning consumers will see the benefits. B. Consumers that spend an average amount of time cleaning make up the largest percentage of the market. C. Consumers that don't want to clean will be easily won over with the convenience of our products. Besides, they make up a large percentage of the market.
Answer: A. I want to convince heavy-duty cleaners that our products meet their needs. Other less intense cleaning consumers will see the benefits. For instance, Method Products chooses to target "cleaning routinists" due to their influence on other consumers. Method's approach is to win over the routinists, which can be harder to convince, with their durable cleaning solution while passive cleaners will also see the benefits of their products. In the athletics industry, Nike is another company that uses top down influence to encourage consumers to invest in their products. By endorsing sport celebrities, Nike demonstrates how it meets the needs of high-performing athletes but can also be used by consumers that work out less avidly.
Why is targeting a specific group of customers usually more successful than trying to appeal to everyone? A. It will satisfy the segment's specific needs B. It takes less effort C. Customer interests change D. It costs less
Answer: A. It will satisfy the segment's specific needs
Runners wanting to experiment with "barefoot" running: Price Points A. Lower Price B. High price
Answer: A. Lower Price
Runners wanting to experiment with "barefoot" running: Product Configuration A. Minimal structure B. More aggressive ankle protection and tread pattern, waterproof C. More structured shoes with endorsement and sales
Answer: A. Minimal structure
Introducing new, lower-priced products to the market A. Neither B. Both C. Threat D. Opportunity
Answer: A. Neither This is a marketing tactic that P&G could use to respond to opportunities and threats in the market. Since this is an internal decision under P&G's control, this would not be considered an opportunity or threat.
P&G has a lot of brands in the marketplace at different price points A. Neither B. Both C. Threat D. Opportunity
Answer: A. Neither This is something that is under the direct control of P&G and, thus, would be most likely considered a strength for P&G rather than an opportunity or threat.
Magazine advertisement: "Your well being is important to us. It's our commitment to The Greater Good." A. Societal B. Product-oriented C. Sales-oriented D. Market-oriented
Answer: A. Societal
Mission statement: "Continuing the founder's legacy of commitment to consumers, community and children, we provide high-quality products while conducting our business in a socially responsible and environmentally sustainable manner." A. Societal B. Product-oriented C. Sales-oriented D. Market-oriented
Answer: A. Societal
Runners recovering from an injury: Distribution A. Through sports physiologists, podiatrists, orthopedists B. Promoted through event sponsorship C. Promoted through natural health magazines
Answer: A. Through sports physiologists, podiatrists, orthopedists
A specialty retailer of imported furniture A. Weekly design and printing needs, purchase decisions may be made by a marketing professional B. High-end design and inexpensive printing needs, purchase decisions made by owner C. Simple printing needs, purchase decisions made by owner who is price sensitive D. Large design pieces and expensive printing needs, purchase decisions must be approved by manufacturer
Answer: A. Weekly design and printing needs, purchase decisions may be made by a marketing professional A specialty retailer of imported furniture. Needs to design and print new sales flyers in bulk every week.
In a study whose purpose is to determine the market for a vitamin that is to be chewed like bubble gum, what is the first question to be answered before a sampling plan is selected? A. What is the population or universe of interest? B. Who can perform the actual sampling? C. How often should the sample be redesigned? D. How large should the sample be in terms of its measurement costs? E. Must the sample be representative of the population?
Answer: A. What is the population or universe of interest? Before a sampling plan is chosen, the population of interest must be defined.
Walmart realizes a _____ using its relationships with suppliers to give customers low prices and good customer service. A. cost competitive advantage B. niche competitive advantage C. marketing competitive advantage D. brand name strategy E. synergistic competitive advantage
Answer: A. cost competitive advantage
All of the following are product characteristics influencing the rate of adoption EXCEPT: A. distribution. B. compatibility. C. complexity. D. observability. E. relative advantage.
Answer: A. distribution. While it is a marketing factor that may influence the rate of adoption of a new product, distribution is not a product factor influencing the rate of adoption.
The first step in the marketing research process is to: A. identify and formulate the problem/opportunity to be studied. B. plan the research design. C. collect the data. D. analyze the marketplace. E. specify the sampling plan.
Answer: A. identify and formulate the problem/opportunity to be studied.
Post Properties is a company that manages apartments in various communities. It is concerned with a glut of apartments in Atlanta, Orlando, and Dallas. Its market researcher begins by examining the rental markets in the Southeast, the history of apartment buildings, local economies, competitive rents, and ownership—all information that was on hand and did not require any new research to locate. The market researcher looked at: A. secondary data. B. a closed study. C. priority databases. D. a statistical analysis. E. primary data.
Answer: A. secondary data. Secondary data are data previously collected for any purpose other than the one at hand.
Americans' core value of upward mobility (i.e., success will come to anyone who works hard) has greatly influenced the way luxury goods are marketed. This phenomenon is an example of a(n) _____ factor. A. social B. demographic C. political and legal D. technological E. economic
Answer: A. social
The most popular method for gathering primary data is _____, in which a researcher interacts with people to obtain facts, opinions, and attitudes. A. survey research B. single-source research C. experiments C. heuristic oriented D. observation research
Answer: A. survey research Survey research takes several forms and is the most popular method for gathering primary data.
Imagine that you are planning a fund raising party for after the symphony, and you need a life-size grand piano cake. Or, you are a developer proposing a new shopping center to a group of investors, and you want to serve a cake shaped like an architectural rendition of the center. Is this impossible? No, you just need to contact Cecilia Villaveces Cakes. She actually built a life-size grand piano for a gala in Macon, Georgia. You can expect to pay anywhere from $75 to $10,000 for one of Cecilia's artistic creations, depending on complexity of design and size. She uses only the best ingredients, and no two cakes are ever quite alike. Although many factors determine the prices charged by Cecilia Villaveces Cakes, the two primary determinants are: A. the demand for the good and the cost to the seller. B. demand by the consumer and perceived quality. C. costs of manufacturing and distribution costs. D. distribution and promotion strategies used by the cake maker. E. stage of the product life cycle and costs to the consumers.
Answer: A. the demand for the good and the cost to the seller. If there was reduced demand, then Cecilia would have to lower prices. Also, she must charge for the time, energy, and resources that go into each cake.
Coca-Cola vending machines are found all over the world. The newest machines have an interactive screen that runs advertisements and allows users to obtain free photos of themselves and ringtones after they have bought a drink. Critics of these new vending machines are concerned that entertaining technology is being used to market sugary products. In terms of a SWOT analysis, this concern would be an example of a(n): A. threat. B. opportunity. C. strength. D. weakness. E. advantage.
Answer: A. threat.
Customers moving to higher and lower-priced products A. Neither B. Both C. Threat D. Opportunity
Answer: B. Both Depending on how the company considers this issue, they could arguably view it as an opportunity or threat (and, perhaps, most appropriately, they should view it as both). This issue might represent an opportunity if P&G is able to develop marketing programs in response that can successfully reach one or both ends of the market (i.e., high and low).
Consumer Group Options A. Quick and convenient: consumers who spend around 4.5 hours a week cleaning (24% of the market) B. Cleaning routinists: consumers that perform cleaning tasks an average of 18 times a week for a total of 5 hours (21% of the market) C. Time-pressured appearance cleaners: consumers that do not find joy in cleaning and spend about 3 hours a week cleaning (15% of the market) D. Cleaning avoiders: Consumers that do not want to clean and spend around 2.5 hours a week cleaning (21% of the market) E. Cleaning is nirvana: consumers that find joy in cleaning and spend around 4 hours a week cleaning (19% of the market)
Answer: B. Cleaning routinists: consumers that perform cleaning tasks an average of 18 times a week for a total of 5 hours (21% of the market)
Clear Channel owns hundreds of radio stations across the U.S. How do they decide what kind of music to play on a particular station? A. Geographic B. Demographic C. Usage D. Benefits E. Psychographic
Answer: B. Demographic
During which stage of the process does the marketer lead the preliminary analysis and calculations for demand, cost, sales, and profitability? A. Establishing the new-product strategy B. Developing a business analysis C. Exploring opportunities D. Screening and concept testing E. The building of a prototype
Answer: B. Developing a business analysis New-product ideas that survive the initial screening process move to the business analysis stage, where preliminary figures for demand, cost, sales, and profitability are calculated.
A nationwide restaurant chain that varies its menu based on its location is an example of what kind of segmentation: A. Demographic B. Geographic C. Benefits D. Usage E. Psychographic
Answer: B. Geographic
Runners competing in the "mudder" type races that involve obstacles and messy conditions: Price Points A. Lower Price B. High price
Answer: B. High price
Runners recovering from an injury: Price Points A. Lower Price B. High price
Answer: B. High price
A swimming pool company A. Weekly design and printing needs, purchase decisions may be made by a marketing professional B. High-end design and inexpensive printing needs, purchase decisions made by owner C. Simple printing needs, purchase decisions made by owner who is price sensitive D. Large design pieces and expensive printing needs, purchase decisions must be approved by manufacturer
Answer: B. High-end design and inexpensive printing needs, purchase decisions made by owner A swimming pool company. They need high-end brochures to sell pool design/installation but they also need inexpensive flyers to promote pool service contracts
Which of the following is NOT one of the four unique elements to services? A. Heterogeneity B. Incoherency C. Intangibility D. Perishability E. Inseparability
Answer: B. Incoherency
Runners competing in the "mudder" type races that involve obstacles and messy conditions: Product Configuration A. Minimal structure B. More aggressive ankle protection and tread pattern, waterproof C. More structured shoes with endorsement and sales
Answer: B. More aggressive ankle protection and tread pattern, waterproof
Assume a firm sells 1M units of its product for $10 and has a 30% gross profit margin ($3). Cutting the price to $9.50 might stimulate unit sales by 10%. Will the assumed increase in sales volume offset the decrease in margin? A. There is no way to tell without knowing variable and fixed costs. B. No, the increase in sales will not offset the decrease in margin. C. Yes, the increase in sales will offset the decrease in margin due to increased demand.
Answer: B. No, the increase in sales will not offset the decrease in margin. A typical argument for lowering price is to increase volume, but this is often a poor financial tradeoff. The firm is not addressing costs by cutting price. In this case, cutting price from $10 to $9.50 raises sales volume from 1M units to 1.1M units but decreases margin from $3M to $2.75M.
Runners wanting to experiment with "barefoot" running: Distribution A. Through sports physiologists, podiatrists, orthopedists B. Promoted through event sponsorship C. Promoted through natural health magazines
Answer: C. Promoted through natural health magazines
Company website: "We realize it is a privilege for our products to be invited into our customers' homes and we strive to exceed their expectations. State-of-the-art worldwide physical testing labs allow us to continually analyze the quality of our raw materials, construction methods, and finished products." A. Societal B. Product-oriented C. Sales-oriented D. Market-oriented
Answer: B. Product-oriented
Runners competing in the "mudder" type races that involve obstacles and messy conditions: Distribution A. Through sports physiologists, podiatrists, orthopedists B. Promoted through event sponsorship C. Promoted through natural health magazines
Answer: B. Promoted through event sponsorship
Which of the following represents all activities directly related to the sale of goods and services to the ultimate consumer for personal, nonbusiness use? A. Sales and Marketing B. Retailing C. Product development D. Production E. Manufacturing
Answer: B. Retailing
Which of the following services would be most likely to exhibit strong credence qualities? A. The repair of a leaky drain B. Tax return preparation C. A math tutorial service D. Consulting services for insurance coverage
Answer: B. Tax return preparation A credence quality is a characteristic that cannot easily be assessed even after purchase and experience.
Which of the following statements about yield management systems (YMS) is true? A. The first use of YMS was in the U.S. car industry as it looked for ways to compete with imports. B. YMS are mathematically complex systems to make use of underutilized capacity and reduce the cost of perishability. C. YMS cannot be used by any other businesses but services. D. YMS eliminate the problem of simultaneous production and consumption from services. E. YMS are complex pricing systems used to set equilibrium pricing points.
Answer: B. YMS are mathematically complex systems to make use of underutilized capacity and reduce the cost of perishability. YMS was first used in the airline industry, but it is now used by automobile manufacturers to make use of underutilized capacity.
All of the following factors directly influence consumers' level of involvement in the purchase process EXCEPT: A. social visibility of the purchased item B. consumer's age C. previous experience with the product D. perceived risk of negative consequences as a result of the purchase E. financial risk associated with the product
Answer: B. consumer's age
Tortilla chips are most likely _____ products, since they are purchased with little shopping effort. A. branded shopping B. convenience C. generic D. specialty E. unbranded shopping
Answer: B. convenience Convenience products typically are purchased regularly, usually with little planning, and require wide distribution.
All of the following are benefits of supply (value) chain management EXCEPT: A. key means of differentiation for a firm. B. decreases cash flow. C. improves customer service. D. reduces supply chain costs. E. increases flexibility of supply chain activities.
Answer: B. decreases cash flow.
One configuration of a marketing channel entails producers selling to consumers without any intermediaries in the channel. This is called a(n): A. alternative channel. B. direct channel. C. limited distribution system. D. reciprocal channel. E. indirect channel.
Answer: B. direct channel.
A company that wants to implement a market orientation would need to: A. establish and maintain mutually satisfying relationships with customers. B. do all of the activities listed. C. do research on its customers, competitors, and markets. D. determine how to deliver superior customer value. E. implement actions that provide value to customers.
Answer: B. do all of the activities listed.
Earl is starting a new bank. Before the opening day, Earl had a meeting with all employees. He discussed their mission, defined objectives for the bank for the coming years, and shared who their target market is. He talked about their product offerings and where their future branches would be located. Earl is sharing the bank's: A. financial analysis. B. marketing plan. C. reengineering. D. strategic contingency. E. hierarchical restructuring.
Answer: B. marketing plan.
The steps of the consumer decision-making process, in order, are: A. information search, need positioning, evaluation of alternatives, product trial, purchase decision, postpurchase satisfaction B. need recognition, information search, evaluation of alternatives, purchase, postpurchase behavior C. need positioning, stimulus response reactions, evaluation of alternatives, purchase decision, postpurchase evaluation D. need positioning, alternative aggregation and divestment, purchase decision, postpurchase evaluation E. need recognition, alternative aggregation, reevaluation, purchase decision, postpurchase behavior
Answer: B. need recognition, information search, evaluation of alternatives, purchase, postpurchase behavior
A carefully selected group of consumers who agree to participate in an ongoing online dialogue with a particular corporation is known as a(n): A. online focus group. B. web community. C. focus blog. D. web-based ethnographic group. E. webinar.
Answer: B. web community.
A manufacturer of office furnishings is finding it difficult to compete with cheaper imported merchandise. Which of the following is a potential source of new product ideas that would allow it to compete more effectively? A. Its foreign competitors B. Customers who have requested its catalogs C. All of these D. R&D E. The company's employees
Answer: C. All of these New-product ideas come from many sources, including customers, employees, distributors, competitors, research and development (R&D), consultants, and other experts.
_____ research is the study of human behavior in its natural context, involving observation of behavior and physical setting. A. Experiment B. Survey C. Ethnographic D. Visualization E. Action-based
Answer: C. Ethnographic
Which of the following statements is true of demand-supply integration? A. It is used to align supply and demand throughout the supply chain by anticipating customer requirements. B. It is a system of management practices that is consistent with a "systems thinking" approach. C. It is focused on integrating the supply-management and demand-generating functions of an organization. D. It is used for warehousing and materials-handling. E. It is composed of bundles of interconnected activities that stretch across firms in the supply chain.
Answer: C. It is focused on integrating the supply-management and demand-generating functions of an organization.
Company website: "Confidence isn't just a word to us. Strengthening your confidence so you can achieve your goals is our first priority, and the reason millions of consultants have achieved success on their own terms." A. Societal B. Product-oriented C. Sales-oriented D. Market-oriented
Answer: C. Sales-oriented
An appliance repair shop A. Weekly design and printing needs, purchase decisions may be made by a marketing professional B. High-end design and inexpensive printing needs, purchase decisions made by owner C. Simple printing needs, purchase decisions made by owner who is price sensitive D. Large design pieces and expensive printing needs, purchase decisions must be approved by manufacturer
Answer: C. Simple printing needs, purchase decisions made by owner who is price sensitive An appliance repair shop. Infrequent printing--often the same materials.
Competitors are starting to introduce lower-priced options into the market A. Neither B. Both C. Threat D. Opportunity
Answer: C. Threat The actions of competitors are external to P&G and not under their direct control. Alternatively, if there are not many strong competitors in the lower-end part of the market, this might represent an opportunity for P&G.
Shrinking middle class A. Neither B. Both C. Threat D. Opportunity
Answer: C. Threat The shrinking middle class is a force that is outside the control of P&G and could negatively impact P&G's long-standing strategic approach to the marketplace.
When Castrol Syntec, a premium motor oil, sought a new way to reach its young, car-passionate audience, the brand found its mark with video games. In its first-ever attempt at in-game advertising, Castrol Syntec found a way to show consumers (in a virtual world) the brand's power and performance. In the communication process, the game served as a(n) _____ for transmitting the message. A. sender B. decoder C. channel D. receiver E. encoder
Answer: C. channel A channel is the transmitter of the message such as a voice, gesture, radio, newspaper, or any other communication medium.
Company X sells their products exclusively to companies in the Y market. In estimating demand from their business customers, Company X must understand that this demand is actually _____________, which means that the demand for industrial products and services is driven by demand for consumer products and services. A. primary demand B. selective demand C. derived demand D. secondary demand
Answer: C. derived demand
The first stage of the new-product development process is: A. developing a business analysis B. exploring opportunities C. establishing the new-product strategy D. the building of a prototype E. screening and concept testing
Answer: C. establishing the new-product strategy New-product strategy is the first subset of the organization's new-product development plan. It specifies what roles new products play in the organization's overall plan and describes goals.
In the adopter categories, the final 16 percent to adopt are similar to innovators in that they do not rely on the norms of the group but are independent because they are bound to tradition. They tend to have the lowest socioeconomic status, are suspicious of new products, and are alienated from a rapidly advancing society. They are called: A. decliners. B. late majority. C. laggards. D. luddites. E. generics.
Answer: C. laggards.
The external environment: A. does not have an impact on Fortune 500 companies. B. does not change over time. C. must be continually monitored by marketing managers. D. can be controlled in much the same manner as the internal marketing mix. E. cannot be influenced by marketing managers.
Answer: C. must be continually monitored by marketing managers.
There are a number of detergents marketed under the Tide brand, including detergents with and without fabric softener, with and without bleach, with various pleasing smells, and fragrance-free formulations. These detergents are an example of Tide's: A. mix consistency. B. marketing mix. C. product line. D. product equity. E. product mix.
Answer: C. product line. Because these are closely related product items, the large variety of detergents marketed under the Tide brand is an example of a product line.
With value-based pricing: A. increased profitability for wholesalers will increase the number of services they are willing to perform. B. the firm is sales driven. C. the firm is both customer driven and competitor driven. D. consumers are more concerned about price than quality. E. additional long-term costs to manufacturers will increase.
Answer: C. the firm is both customer driven and competitor driven. The basic assumption is that the firm is customer driven, seeking to understand its customers. Because it is unlikely to be operating as a monopoly, it must also pay attention to what its competitors are doing.
Angela and Dominic own Cincy by the Slice pizzeria. They are interested in keeping track of the number of mentions their store receives on sites like Twitter and Facebook, but they are unsure of which steps to take next. Which of the following resources would best meet their needs? A. A social customer relationship management system B. An advanced customer database with predictive application C. Web analytics software D. A listening platform with key word report capabilities E. An insight platform that offers online focus group solutions
Answer: D. A listening platform with key word report capabilities Such a platform would allow the organization to track discussions, understand sentiment, and identify influencers to improve overall marketing strategy. See Exhibit 1 in Chapter 18.
Which of the following represents programs that use convenience to get consumers to recycle products like batteries or cell phones during a regular trip to the store? A. Strategic channel alliance B. Gray marketing C. Reverse channel D. Drop and shop E. Channel partnering
Answer: D. Drop and shop
________ is a form of distribution aimed at having a product available in every outlet where target customers might want to buy it. A. Cumulative B. Multiple C. Aggregated D. Intensive E. Exclusive
Answer: D. Intensive
A local car dealer A. Weekly design and printing needs, purchase decisions may be made by a marketing professional B. High-end design and inexpensive printing needs, purchase decisions made by owner C. Simple printing needs, purchase decisions made by owner who is price sensitive D. Large design pieces and expensive printing needs, purchase decisions must be approved by manufacturer
Answer: D. Large design pieces and expensive printing needs, purchase decisions must be approved by manufacturer A local car dealer. Large, expensive direct mail pieces sent quarterly based on camera-ready artwork provided by manufacturers.
Some customer segments are interested in spending more money on new products in the personal care category A. Neither B. Both C. Threat D. Opportunity
Answer: D. Opportunity The article describes how, in response to customers moving to the high-end of the market (in contrast to customers who have moved to the low-end), P&G was able to introduce a $60 skin-care regimen. This product was a marketing tactic developed in response to the opportunity created by some customers interested in spending more on personal care products.
What are the twin pillars of marketing? A. Product, place B. Customer relationships, segmentation C. Customer relationships, promotion D. Segmentation, differentiation
Answer: D. Segmentation, differentiation
______ within the marketing channel can provide efficiencies and economies of scale as channel members take on tasks that best utilize their expertise or strategic relationships. A. Addressing assortment issues B. Overcoming quantity discrepancies C. Overcoming temporal discrepancies D. Specialization or Division of labor E. Decreasing the distance between producers and customers
Answer: D. Specialization or Division of labor
Which of the following statements best describes the typical target market? A. A target market will remain stable over time, including the same group of consumers. B. Target markets are not strongly affected by changes in the external environment. C. Target markets cannot be specifically defined according to age, income, or location, because these factors are continually changing. D. Target markets change over time as consumers drop in or out of the market, and as tastes change. E. Target markets only change when the features and benefits of the product offering change.
Answer: D. Target markets change over time as consumers drop in or out of the market, and as tastes change. Target markets are defined and described, but they are always changing in response to the environment.
_____ specifies the research questions to be answered, how and when the data will be gathered, and how the data will be analyzed. A. The research collaborative plan B. An autonomous director C. A secondary data use plan D. The research design E. The sampling plan
Answer: D. The research design This is the function of the research design, and once approved, the project budget is finalized.
Arizona Tea is marketed by Vultaggio & Sons. Vultaggio & Sons took a basic drink and put it into unusual bottles with elaborate designs. The wide-mouthed, long-necked bottles are now considered to be trendsetters in the new age beverage industry, and customers often buy the tea just for the bottle. The success of Arizona Tea is based on: A. reengineering. B. a heterogeneous marketing strategy. C. supply-demand curves. D. a product differentiation competitive advantage. E. a cost competitive advantage.
Answer: D. a product differentiation competitive advantage.
An intelligence system that helps managers assess their competition and vendors in order to become more efficient and effective competitors is called: A. differential competitive advantage. B. an audit. C. industrial espionage. D. competitive intelligence. E. competitive research.
Answer: D. competitive intelligence.
A firm that wants to develop a deeper understanding of its customers may optimize profitability, revenue, and customer satisfaction by focusing on highly defined and precise customer groups. This is _____: A. sales maximization. B. customer optimization. C. sales orientation. D. customer relationship management. E. social orientation.
Answer: D. customer relationship management.
Innovyx is an email marketing service provider. It has a new ad campaign aimed at changing negative perceptions of email. The ads explain how much cheaper email advertising is than traditional advertising and what a high return on investment it can generate if used properly. Finally, the message ends by suggesting that companies wanting to promote their products give email a chance to show what it can do. This promotion has the task of: A. suppressing. B. reminding. C. informing. D. persuading. E. rewarding.
Answer: D. persuading. This promotion is aimed at persuading consumers to change their attitudes and try email.
Through marketing research, the Boston Symphony Orchestra (BSO) learned it has an older market and is not attracting younger concertgoers. It next conducted marketing research to determine if a social media advertising and engagement campaign they were considering that would be targeted to the younger market would be successful. In its second use of research, BSO employed _____ marketing research. A. normative B. historical C. objective D. predictive E. descriptive
Answer: D. predictive The three roles of marketing research are descriptive, diagnostic, and predictive. The predictive function is to address "what if" questions. For example, the predictive role might be focused on what will happen to the sales of a product (or sales of tickets to an event, in this case) if we do something new in our marketing program.
A _____ is a study conducted by an organization to identify its internal strengths and weaknesses and also examine external opportunities and threats. A. competitive advantage audit B. marketing audit C. strategic alternative selection D. situation analysis E. trend analysis
Answer: D. situation analysis
M&M's famous slogan, "Melts in your mouth, not in your hand," is an example of a(n): A. basis for comparative advertising. B. promotional mix. C. basis for lifestyle strategy. D. unique selling proposition. E. advertising objective.
Answer: D. unique selling proposition. A unique selling proposition is a desirable, exclusive, and believable advertising appeal selected as a theme for an advertising campaign.
_____ is defined as the relationship between benefits and the sacrifice necessary to obtain those benefits. A. Satisfaction percentage B. Opportunity cost C. Marketing utility D. Market quality E. Customer value
Answer: E. Customer value
Nestlé's quest is to make some of its existing products more nutritious and provide a health benefit. This is an example of which type of product modification? A. Brand B. Style C. Ingredient D. Extension E. Functional
Answer: E. Functional Functional modifications involve changes in a product's versatility, effectiveness, convenience, or safety. Nestlé is attempting to make its existing products more versatile and effective.
Which of the following is not one of the stages of the product lifecycle? A. Growth stage B. Decline stage C. Maturity stage D. Introductory stage E. New product strategy stage
Answer: E. New product strategy stage New product strategy is part of the new-product development process, not the product life cycle.
_____ is a strategy that focuses on keeping and improving relationships with current customers. A. Commitment selling B. Transactional marketing C. Organization-customer synergy D. Market engineering E. Relationship marketing
Answer: E. Relationship marketing
A regional utility company needs to change consumers' perceptions of its current service as being harmful to the environment. Which of the following strategies would best allow the company to accomplish this goal? A. Disintermediation B. Contraction of the number of services offered by the utility company C. Adding new services to its product line D. Use of product cannibalization E. Repositioning
Answer: E. Repositioning Repositioning is a firm's attempt to change customer perceptions of a product.
_____ use another manufacturer's already established channel and are used most often when the creation of marketing channel relationships may be expensive and time-consuming. A. Multiple distribution systems B. Nontraditional channelization C. Relationship channels D. Reverse channels E. Strategic channel alliances
Answer: E. Strategic channel alliances
Connections between cargo vessels or trucks and transportation networks may eventually lead to the development of smart transportation modes that reroute in real time based on local traffic patterns, weather events, and accidents. Which of the following will someday enable such a possibility? A. Supply chain analytics. B. Cloud computing C. Strategic channel alliances D. Electronic data interchange (EDI) E. The Internet of Things
Answer: E. The Internet of Things Integration into wearables, appliances, apparel, & more
To help understand why attendance at the team's games was so poor, the Atlanta Falcons used marketing research to gather factual information. The organization used in-game surveys and end-of-season surveys of ticket holders. The gathering of factual statements is an example of marketing research in its _____ role. A. normative B. historical C. objective D. predictive E. descriptive
Answer: E. descriptive The three roles of marketing research are descriptive, diagnostic, and predictive. The descriptive function is focused on the gathering of facts to explain the current situation of a market and/or marketing program.
A business is concerned with many day-to-day activities. Some of the most important of these activities are the planning and development of a product, its ability to communicate value, its pricing policy, and the distribution strategy. These activities are all a part of: A. human resources. B. accounting. C. a control system. D. production. E. marketing.
Answer: E. marketing.
The two major categories of communications are: A. verbal and nonverbal. B. informative and persuasive. C. direct and indirect. D. long term and short term. E. mass and interpersonal.
Answer: E. mass and interpersonal.
Although many factors can influence price, the primary determinants are: A. costs of manufacturing and distribution. B. demand by the consumer and perceived quality. C. stage of the product life cycle and costs to the consumer. D. distribution and promotion strategies. E. the demand for the good and the cost to the seller.
Answer: E. the demand for the good and the cost to the seller. The price that managers set for each product depends mostly on two factors: the demand for the good or service and the cost to the seller for that good or service.
Cutting costs is the best way to maximize profitability. True/False
Answer: False
Services tend to exhibit more search qualities than do tangible goods. True/False
Answer: False A search quality is a characteristic that can be easily assessed before purchase, and tangible goods tend to exhibit more search qualities than do intangible goods. Services exhibit more experience and credence qualities.
Deciding who to target is the first step in market segmentation. True/False
Answer: False It is the last step in market segmentation.
Procter & Gamble markets six different brands of laundry detergent, each targeting a different market segment. This is an example of concentrated targeting. True/False
Answer: False This is an example of multi-segment targeting.
Focus group with 8 people for 1 hour Qualitative or Quantitative
Answer: Qualitative We cannot analyze the data using quantitative analysis techniques and must analyze the data using some type of structured, qualitative analysis technique
Sitting next to people, observing them navigating a website and asking questions about what is easy and difficult for them Qualitative or Quantitative
Answer: Qualitative We cannot analyze the data using quantitative analysis techniques and must analyze the data using some type of structured, qualitative analysis technique
Scanner-based research (e.g., analyzing data from cash register sales) Qualitative or Quantitative
Answer: Quantitative We can analyze the data using quantitative analysis techniques
Internet-based survey with 25 Likert-type questions (e.g., strongly agree to strongly disagree) Qualitative or Quantitative
Answer: Quantitative We can analyze the data using quantitative analysis techniques
Willingness to pay is a way to measure demand elasticity. True/False
Answer: True
"One-size-fits-all" marketing is largely out of date. True/False
Answer: True Consumers are more sophisticated and want to feel that they are being treated uniquely.
Profits typically reach their peak during the growth stage of the product life cycle. True/False
Answer: True Profits rise rapidly, reach their peak, and begin declining as competition intensifies during the growth stage.
Marketers can control the external environment in which their organizations operate. True/False
False Although marketers can control the marketing mix and perhaps influence the external environment, they cannot control the external environment in which their organizations operate.
Fixed or Variable costs? Factory Labor Accountant Salaries Manufacturing Equipment Sales Commissions Utilities Office Computers Materials
Fixed: Accountant Salaries, Manufacturing Equipment, Utilities, Office Computers Variable: Factory Labor, Sales Commissions, Materials
Ford Explorer, Chevrolet Silverado, Tesla S, Ford F-150, Honda Accord, Nissan Leaf, Ford Taurus, Toyota Prius, Honda Pilot, Chevrolet Tahoe, Toyota Camry, Toyota Tundra A. SUV B. Pickup truck C. 4-door sedan D. Electric/hybrid
SUV: Ford Explorer, Honda Pilot, Chevrolet Tahoe Pickup truck: Chevrolet Silverado, Ford F-150, Toyota Tundra 4-door sedan: Honda Accord, Ford Taurus, Toyota Camry Electric/hybrid: Tesla S, Nissan Leaf, Toyota Prius
Marketers need a thorough understanding of the laws established by the federal government, state governments, and regulatory agencies. True/False
True The laws established by regulatory agencies is a force that is external to the company and not under their direct control and, yet, laws can have an enormous impact on the ability of a company to produce, distribute, communicate, and price their products and services in the marketplace.
