chp 6 mktg, Marketing Ch.6, Marketing Chapter 8, MKTG test 2 ch 6, MKTG ch 3, Marketing 351 Chapter 1, Marketing, MKTG Chapter 1, MKTG Chapter 5, MKT 230 - chp. 5
Marketing Mix
4 activities- product, distribution (placement), promotion, pricing (4 P's)
Online sales account for about ____ percent of all retail sales in the U.S.
5
E
Positioning a product to avoid competition may be best when the a) competing products are priced higher than or at least equal to the new product. b) company has an established reputation with the consumers of that particular market. c) market is characterized by consumers who are not sensitive to price or value. d) market is characterized by consumers who are price conscious and brand specific. e) product's performance characteristics are not significantly different from those of competing brands.
Environmental scanning
Process of COLLECTING and GATHERING INFORMATION
Whats Marketing?
Process of creating, distributing, promoting and pricing goods, services and ideas to facilitate satisfying relationships with customers in a dynamic environment.
As the Industrial Revolution came to the United States, most firms operated in a(n) ___________ orientation. a) marketing b) societal c) sales d) evolutionary e) production
e
Changing the hours of operation for a service business involves the _____ component of the marketing mix. a)price b) good c) product d) promotion e) distribution
e
Consumer confidence is at a low during periods of a) recession. b) prosperity. c) recovery. d) slowdown. e) depression.
e
Consumers begin to become more price and value conscious during periods of a) prosperity b) uncertainty c) recovery d) expansion e) recession
e
Consumers buying products online have dramatically affected the ___________ variable of the marketing mix. a)price b) good c) product d) promotion e) distribution
e
Discretionary income is associated with all of the following except a) automobiles. b) education. C) pets. d) furniture. e) food.
e
T F Consideration of the firm's overall objectives usually does not influence the final selection of a target market segment.
f
T F Customer surveys as a means of forecasting sales are not appropriate for a firm that has relatively few customers.
f
T F During the evaluation of relevant market segments, competitive assessment is used primarily to determine the possibility of additional competitors entering particular segments.
f
T F Effective product positioning helps serve the total market by creating a concept that appeals to the general public.
f
T F Family life cycle is a psychological dimension used for segmenting markets.
f
T F Head-to-head competition is most appropriate when the product performance characteristics do not differ significantly from those of competing brands.
f
T F In developing a company sales forecast, the forecasting methods are limited to surveys and correlation methods.
f
T F It is likely that during the fifth step of the target market selection process, marketers will decide not to enter and compete in any market segments.
f
T F Lifestyle is a product-related variable.
f
T F Market potential is the amount of a product that an organization could sell during a specified time period.
f
T F Only one variable can be used to segment a market.
f
T F Product positioning refers to marketers' efforts to have their brands located in the most appropriate location in stores.
f
T F Sales forecasts are always long-range in nature.
f
T F The executive judgment method of sales forecasting is very accurate in predicting future sales.
f
T F The five-step process usually used for target market selection includes identifying the appropriate targeting strategy, determining which segmentation variables to use, developing market segment profiles, evaluating relevant market segments, and deciding which targeting strategy to use.
f
T F The information yielded by market segment profiles usually is not very useful later in the marketing process.
f
T F The types of surveys used to forecast sales are customer, executive, and competitor surveys.
f
T F There are only two basic strategies for selecting target markets: the undifferentiated targeting strategy and the concentrated targeting strategy.
f
T F Through market tests, a forecaster gains data regarding consumers' intended purchases.
f
A marketer that targets customers based on marital status and the presence and age of children is using
family life cycle
If Campbell were to offer single serving "Soup for One" packages to small household markets, it would be using segmentation based on
family life cycle
one half
for most firms, the costs of marketing activities consume approximately what portion of the consumer's dollar?
sales
from the 1920s to the 1950s, demand for manufactured goods decreased, leading to what orientation?
marketing unit
functions, products, regions, types of customers, or a combination of all four organizes what?
Cosmopolitan magazine, Secret deodorant, and Eve cigarettes are all products whose marketers have used segmentation based on
gender
Justin Franklin's company is interested in locating areas where the average income is high, the average age range is 25-35 years, and the lifestyles of the people involve extreme adventures and dangerous leisure activities. His company would most likely find possible markets through ______
geodemographic segmentation
A market in which a large proportion of customers have similar needs for a product is called a(n) _____ market.
homogeneous
Costco believes that most of its sales are to small businesses rather than consumers -- and that women are more likely to be making the purchasing decisions. This is an example of a(n) ___________ that Costco could test through marketing research. Select one: a. hypothesis b. conceptual error c. experimental question d. sampling error e. descriptive sample
hypothesis
The psychographic variable that includes numerous characteristics related to people's activities, interests, and opinion is
lifestyle
customer relationship management
long-term relationships with profitable customers is the key objective of what?
buying behavior
managing customer relationships requires identifying patterns of _________ and then using that information to focus on the most promising and profitable customers
Family life cycle is most typically based on
marital status and ages of children
Many marketers are concerned about the number of potential customers within a certain area of land because of the different requirements to serve dissimilar areas. What is this segmentation variable called?
market density
The total volume of a product, for all firms in an industry, that would be purchased by specific customer groups within a specified time period at a given level of industry-wide marketing activity, is the _____
market potential
__________ describe the similarities among potential customers within a market segment and explain the differences among people in different market segments.
market segment profiles
T F At times, after doing segmentation analysis, marketers in an organization decide not to enter any segments.
t
T F Company sales potential is the maximum percentage of market potential that an individual firm within an industry can expect to obtain for a specific product.
t
T F Demographic characteristics are commonly used to segment a market because they are closely related to consumers' product needs and purchasing behavior.
t
T F In a customer survey, a marketer would question customers about the types and quantities of products they intend to buy during a specific time period.
t
T F Individuals' ability to buy depends on the amount of their buying power.
t
T F Lifestyle analysis focuses on people's activities, interests, and opinions
t
T F Market segment profiles help determine the most desirable segment or segments in relation to the firm's strengths, weaknesses, objectives, and resources.
t
T F Motives can be used to segment markets.
t
T F One condition for effective segmentation is that at least one segment must have substantial profit potential.
t
T F One limitation of the sales force survey technique is that salespeople often believe that their sales goals are determined by their sales estimates.
t
T F One problem with using psychographic variables for segmentation purposes is that they are difficult to measure accurately.
t
T F One way marketers can segment business markets is according to their geographic location.
t
T F Perceptual maps are created by questioning a sample of customers about their perceptions of products, brands, or organizations, with respect to two or more dimensions.
t
T F Product position is customers' concept of a product's attributes relative to their concept of competitive brands.
t
T F Segmentation variables are characteristics of individuals, groups, or organizations in a total market.
t
T F Surveys are sometimes used to forecast sales.
t
T F The concentrated targeting strategy is one in which an organization directs its marketing efforts toward a single market segment through one marketing mix.
t
T F The four requirements of a market are that the individuals in the market must have a need for the product and the ability, willingness, and authority to buy it.
t
T F The size of the market potential places limits on the size of the company sales potential.
t
T F The sum of firms' marketing efforts equals industry marketing efforts
t
T F The term market density refers to the number of potential customers per unit of land area, such as per square mile.
t
T F The two general approaches to measuring company sales potential are the breakdown and the buildup approach.
t
T F The undifferentiated strategy can be effective for an organization that has a homogeneous market and can develop and maintain a single marketing mix.
t
T F The ways in which customers use a particular product may be a basis for segmenting the market.
t
T F Trend analysis is a sales forecasting technique based on historical sales data.
t
T F When a firm's management is making the final selection of specific target markets to enter, it should consider whether the organization has the financial resources, managerial skills, expertise, and facilities needed to effectively compete in the selected segments.
t
T F When evaluating relevant market segments, cost estimates are important to determine if an organization entering a particular segment can operate at costs equal to or below those of competitors.
t
service
the application of mechanical and human efforts to either people or objects to provide intangible benefits to customers
Product positioning refers to
the decisions and activities intended to create and maintain a certain concept of the firm's product in customers' minds.
effectiveness
the degree to which an exchange helps achieve an organization's objectives
promotion
the element of the marketing mix used to increase awareness of a product or company
value=customer benefits-customer costs
the equation a buyer applies to assess a product's value
government regulations
which of the following is essential an uncontrollable factor in developing a marketing mix? product adaptations, pricing strategies, government regulations, advertising campaigns, retail locations
The forecasting method that utilizes a firm's historical sales data to find patterns in the firm's sales volume over time is
time series analysis
The forecasting techniques that assume past sales patterns will continue into the future are all variations of
time series analysis
Pillsbury defines all purchasers of flour as its target market. What targeting strategy would be most appropriate in this case?
undifferentiated
When a firm designs a single marketing mix and directs it at an entire market for a particular product, the company is using a(n) _________ strategy.
undifferentiated
To find a target market, a firm can use the
undifferentiated strategy, the concentrated strategy, and the differentiated strategy
Which of the following is an example of a behavioristic segmentation variable?
usage rate
Through marketing newsprint to newspaper publishers and glass manufacturers that use it in packing, International Paper segments its market based on
use of product
marketing activities
used by all sizes of organizations including for-profit, nonprofit, and government agencies
Marketing control process
1. Establishment of performance standards 2. Evaluation of actual performance relative to establish standards 3. corrective action if necessary
A marketing manager decides what combination of variables is needed to satisfy customers' needs for a general type of product. What are the essential variables that the marketing manager combines? A) Product, price, distribution, and promotion variables B) Marketing environment variables C) Product and promotion variables D) Product, price, and customer variables
A
A(n) ___________ is a collection of information arranged for easy access and retrieval. a) database b) marketing information system c) marketing decision support system d) online information service e) e-mail system
A
According to the text, ___________ interpretation focuses on what is typical or what deviates from the average. a) statistical b) descriptive c) exploratory d) secondary e) primary
A
Administrative assistants that control the flow of information to other people in the organization often play the _____ role in the buying center. a) gatekeeper b) user c) influencer d) buyer e) controller
A
All of the following describe the demand for business products except a) elastic. b) derived. c) joint. d) inelastic. e) fluctuating.
A
An item on the University Book Store's survey asks respondents to tell the store, in their own words, what they like least about textbook shopping. This item would be an example of a(n) ___________ question. a) open-ended b) dichotomous c) forced-sum-choice d) multiple-choice e) limited-choice
A
An offshoot of mail surveys, ______ have shortcomings because the people who participate in them generally have higher incomes and education levels than the general population. a) purchase diaries b) telephone surveys c) online surveys d) focus-group interviews e) immediate feedback forms
A
An overall plan for obtaining the information needed to address a research problem or issue is called the a) research design. b) problem recognition. c) hypothesis. d) data collection method. e) sampling procedure.
A
Barry Gluckman of WP International, a major marketer of word-processing software, calls the secretary of Renee Dorchette, director of purchasing for MMK, Inc. He sets up an appointment to discuss an upcoming purchase of software. The secretary plays the role of ___________ in this purchase decision. a) gatekeeper b) buyer c) decider d) buying center captain e) order giver
A
Before administering the questionnaire, Colin discovered through talking to other sports rental businesses that, although retired males made up a small percentage of the area's population, they often rented kayaks and canoes. In light of this, Colin decided to include a minimum of 25 percent retired males in his sample. The final choice of respondents was left up to the interviewers. This sampling method is known as ___________ sampling. a) quota b) stratified c) random d) representative e) area
A
Darren uses Microsoft Excel to determine how much the responses to his survey about household decision making for toilet paper vary. Darren is in the ______ step of the marketing research process. a) interpreting research findings b) reporting research findings c) collecting data d) designing the research project e) developing a hypothesis
A
Designing research procedures that produce reliable marketing data means that a) others using the same procedure will get almost identical data. b) the procedure must give results that support the hypothesis. c) the procedure must not give results that contradict other research studies. d) the procedure may give results that contradict other research studies. e) sampling must be done in a completely random manner
A
Emily Dawson and seven other people were paid to get together and discuss a new product idea proposed by Johnson & Johnson. Researchers observed the interaction of the group. This method is called a a) focus-group interview. b) group survey. c) personal interview survey. d) sampling team. e) mail survey.
A
In reporting marketing research findings, the researcher should a) provide explanations in language that those who use the report to make decisions can understand. b) write the report in an extremely technical and statistical style. c) fit the problem to a favored statistical technique. d) not acknowledge any limitations associated with the study. e) give management the answers it wants.
A
Information from the U.S. Census Bureau is commonly used as ____ by a variety of agencies and organizations. a) external secondary data b) sampling systems c) primary data d) internal secondary data e) hypotheses
A
Information provided by a single firm on household demographics, consumer purchases, television viewing behavior, and responses to promotions is called ___________ data. a) single-source b) census c) consumer demographic d) multi-point e) single-point
A
Johnson's Industrial Pest Control Service wants to meet its customers' expectations with regard to the quality of service it provides. How should Johnson's identify these expectations? a) Conduct market research. b) Use management judgment. c) Trace existing service levels. d) Stress quality service with employees. e) Train employees better.
A
Kelsey thinks she will be able to get the highest quality of responses concerning the product features most sought by consumers through personal interviews. She decides to conduct her interviews at _____ because this is the most common location for personal interviews. a) a shopping mall b) the respondent's home c) the interviewer's home d) the company's offices e) a city park
A
Many suppliers and their customers invest time and resources to build and maintain mutually beneficial relationships which are often called a) partnerships. b) co-ops. c) monopolies. d) reciprocity. e) alliances.
A
The ability to purchase a product is a function of
buying power
Marketing research is best defined as a) the systematic design, collection, interpretation, and reporting of information to help marketers solve specific marketing problems or take advantage of market opportunities. b) a framework for the day-to-day management and structuring of information gathered by marketers. c) a continuous gathering of data for an organization to make marketing decisions d) the collecting of data from secondary sources and internal documents. e) an intuitive process for making decisions based on personal knowledge and experience.
A
Marketing researchers at Essex Co. repeated a particular experiment several times and discovered that the results produced each time were nearly identical. This phenomenon would indicate that the results were a) reliable. b) valid. c) unusable. d) predictable. e) compatible.
A
Marriott wants to collect data about employee satisfaction within its organization. It decides to survey a sample of 50 employees by having a computer program automatically pick which employees will be in the sample. If every employee has an equal chance of being selected, Marriott is using a) random sampling. b) sampling populations. c) stratified sampling. d) nonprobability sampling. e) quota sampling.
A
Motorola buys silicone which is used in its chip-making process. Motorola produces microchips for use within a wide variety of products for other firms, such as Ford, GM and Samsung. Motorola is a buyer in a _____ market. a) producer b) government c) reseller d) construction e) institutional
A
Nelson Marketing Research is concerned about using surveys to conduct a marketing research project because a) response rates are declining. b) primary data are so much cheaper and easier to gather. c) survey data collection is highly inaccurate. d) survey data do not provide in-depth responses. e) the survey method has been replaced by the Internet.
A
Peter Demos, director of marketing at Holcomb, Inc., calls in Andrea Carter, the firm's marketing research director. Peter wants a study done to assess the company's image relative to a new competitor, Levitt Labs. He has a flexible time schedule, has very little money to devote to the research, and feels that a relatively low response rate will not be a major problem. Andrea will probably recommend using a ___________ survey. a) mail b) telephone c) random d) personal interview e) population
A
Product specifications are a) physical characteristics and level of quality. b) types of services that are provided with the product. c) financing available for the product. d) types of competitors offering similar products. e) product return policies.
A
Retailers like Target and Kmart are considered to be members of which business market? a) Reseller b) Customer c) Producer d) Institutional e) Services
A
Snappy Tools, Inc., purchases hammers, bolts, and other hardware items from a variety of manufacturers and sells them to hardware stores at a price that includes a profit for Snappy Tools, Inc. The company would be part of what type of business market? a) Reseller b) Producer c) Consumer d) Government e) Supply
A
Students from marketing research class collect data from three areas on campus. When they analyze their data the responses are very similar. The students can state they achieved which of the following? a) reliability b) causal relationships c) validity d) sampling e) measurability
A
SunnyD is aimed at mothers with children under age twelve. These mothers represent SunnyD's A) target market. B) consumer advocates. C) marketing strategy. D) marketing mix. E) marketing tactic.
A
The primary value that a marketer expects to receive from a customer in an exchange relationship is A) the price charged for the product. B) customer satisfaction. C) references to other potential customers. D) quality merchandise that meets expectations. E) few returns of the merchandise purchased.
A
The stages of the business buying decision process, in order, are a) recognizing the problem, establishing product specifications, searching for products and evaluating possible suppliers, selecting suppliers and products, and evaluating performance. b) recognizing the problem, searching for products and evaluating possible suppliers, selecting suppliers and products, establishing product specifications, and evaluating performance. c) recognizing the problem, selecting suppliers and products, evaluating performance, establishing product specifications, and searching for substitute products. d) establishing product specifications, recognizing the problem, searching for products, evaluating possible products and suppliers, selecting suppliers and products, and evaluating performance. e) establishing product specifications, searching for products, selecting suppliers and products, evaluating performance, recognizing the problem, and evaluating possible products and suppliers.
A
To maintain the control needed to obtain accurate information, marketers approach marketing research as a process. Which of the following steps of that process focuses on uncovering the nature and boundaries of the marketing situation to be studied? a) Locating and defining problems b) Designing the project c) Collecting data d) Interpreting findings e) Reporting findings
A
Wade is puzzled by the recent decrease in sales at one of the Auto Zone locations for which he is the regional manager. He knows the best way to approach this problem and obtain accurate information is to use a) the marketing research process. b) the opinions of store managers. c) company sales' data. d) hypothesis testing. e) stratified sampling of customers.
A
What are the four major categories of factors that influence business buying decisions? a) Environmental, organizational, interpersonal, and individual b) Environmental, organizational, psychological, and individual c) Environmental, psychological, individual, and technological d) Technological, organizational, environmental, and interpersonal e) Environmental, organizational, technological, and individual
A
When Precision Brake's sales team calls on tractor manufacturing companies, the first person they usually talk to is the receptionist. In this example, the receptionists would be considered to be ________, part of the buying center. a) gatekeepers b) influencers c) users d) buyers e) controllers
A
When researchers divide the population of interest in a study into groups and then arbitrarily choose participants from each group, they are using a) quota sampling. b) selective surveying. c) random sampling. d) stratified sampling. e) researcher samples.
A
When the requirements associated with a new-task purchase are changed the second or third time, this is called a ___________ purchase. a) modified rebuy b) continued new-task c) contractual d) straight rebuy e) negotiated rebuy
A
E
A business advantage of the concentrated targeting strategy for any company is that it a) requires less market research and information. b) requires less intensive analysis of customers' characteristics and needs. c) allows a firm to utilize all of its production capacity. d) maintains the firm's flexibility in moving into other market segments. e) allows a firm to develop a special marketing mix for a single market segment.
Market Opportunity
A combo of circumstances and timing that permits an organization to reach a target market
A
A disadvantage of the concentrated targeting strategy is that a) the firm's financial condition is tied to a single and specialized marketing mix. b) large sales volumes cannot be generated. c) production costs may be higher than with other strategies. d) marketing personnel may become dissatisfied with the limited opportunities provided by this approach. e) marketing costs are often higher than for other strategies.
Strategic business unit (SBU)
A division, product line or other profit center within a parent company (a business within a business)
A
A forecasting method that predicts sales based on relationships between past sales and other variables is called a) regression analysis. b) customer forecasting surveys. c) the Delphi technique. d) random factor analysis. e) time series analysis.
Market
A group of individuals or organizations that have needs for products in a product class and have ability willingness and authority to purchase those products
C
A market in which a large proportion of customers have similar needs for a product is called a(n) _____ market. a) undifferentiated b) heterogeneous c) homogenous d) differentiated e) concentrated
D
A marketer that targets customers based on marital status and the presence and age of children is using a) behavioristic segmentation. b) lifestyle variables. c) psychographic variables. d) family life cycle. e) phase of life segmentation
Target Market?
A specific group of customers on whom an organization focuses on (Can be large or small groups)
Study of Marketing is what?
A spin off of economics
A
A targeting strategy in which an organization directs its marketing efforts at several segments is called a(n) ___________ targeting strategy. a) differentiated b) total market c) concentrated d) undifferentiated e) integrated
D
A targeting strategy in which an organization targets a single market segment using one marketing mix is called a(n) _____ strategy. a) selective b) focused c) differentiated d) concentrated e) undifferentiated
A Values attitude and lifestyle
A widely used system for classifying individuals on the basis of lifestyle is a) VALS. b) PRIZM. c) CMSA. d) LIFO. e) Prospect Zone.
C
After a firm has identified an appropriate targeting strategy, the next step in the target market selection process is a) determining the demographic variables of the target market. b) developing market segment profiles. c) determining which segmentation variables to use. d) selecting specific target markets. e) evaluating relevant market segments.
E
After an organization has determined which of the many segmentation variables it will use, the next step in the target market selection process is a) evaluating each of the relevant market segments. b) selecting the specific target markets. c) reviewing the appropriate marketing strategy. d) analyzing the interaction between segmentation variables. e) developing market segment profiles.
D
Age, rate of product use, location, and gender are all examples of common a) demographic variables. b) geographic characteristics. c) targeting strategies. d) psychographic variables. e) segmentation variables.
E
Alex Wren of Owens Corning Fiberglass talks to Terry Jones, a homebuilder, to find out how much fiberglass insulation he intends to use in building homes during the next year. Albert then multiplies that number by the total number of builders in the territory. He is using a ___________ approach to measure sales potential. a) multivariable b) use of product c) breakdown d) regression e) buildup
b
All of the following statements about product positioning are true except a) product positioning decisions are not only for new products. b) product positioning is the customer's absolute perception of a product's attributes. c) effective product positioning helps serve a specific market segment by creating an appropriate concept in the minds of customers in that market segment. d) product positioning is concerned with creating and maintaining a certain concept of the firm's product in customers' minds. e) when marketers position a product, they try to position it so that it seems to possess the characteristics the target market desires.
What has to happen in the Marketing Concept?
Allows organization to achieve goals and has to be win-win
SWOT ANALYSIS
An assessment of an organizations strengths and weaknesses (internal) opportunities and threats (external)
b
Any group of people who, as individuals or as organizations, have needs for products in a product class and who have the ability, willingness, and authority to buy such products is a(n) a) business market. b) market. c) undifferentiated market d) segmented market e) market variable
Customer cost
Anything customers give up in exchange for benefits
Customer benefits
Anything desired by the customer that is received in exchange
What is price?
Anything the customer has to give up
A buyer for Macy's Department Stores orders handbags from a supplier because that supplier allows the buyer to maintain Macy's company policy of 30-day advance purchase notice. This is an example of ___________ influence on the business buying decision process. a) environmental b) organizational c) interpersonal d) individual e) demographic
B
A framework for gathering and managing information from sources both inside and outside an organization is referred to as a) marketing research agencies. b) a marketing information system. c) the marketing mix. d) a marketing research system. e) a secondary data system.
B
A study that is valid and reliable a) is called a marketing research study. b) measures what it is supposed to measure and produces almost identical results every time. c) is expensive to implement and complete. d) measures subtle differences in the population being studied. e) is difficult to produce without expert researchers.
B
A target market A) involves a large number of customers B) is a specific group of customers on whom a company focuses its marketing efforts. C) already has several competitors vying for customers' business. D) is the same as a salesperson's prospective client list. E) is a customer group classified as people with similar demographic characteristics.
B
American Flooring sells all types of floor coverings to contractors and other businesses. It keeps a collection of information about all of its clients that can be easily accessed on the company's computer system. This collection of information is called a a) marketing information system. b) database. c) management information system. d) single-source data. e) marketing decision support system.
B
An accountant who purchases software for maintaining clients' books is an example of a buyer in a(n) ___________ market. a) consumer b) producer c) reseller d) government e) institutional
B
Assume that Verizon Wireless is interested in studying the pricing expectations of its customers. If the study calls for selecting at random 100 people from each of three age groupings, ___________ sampling is being used. a) random b) stratified c) quota d) area e) experimental
B
Because retailers have to be concerned with product selection, price, and space, they often evaluate products on the basis of a) their markup. b) sales per square foot of selling area. c) how many of the product they can fit in a certain amount of space. d) profit per dollar of selling price. e) the reliability of the supplier.
B
Colin went to the university library and collected everything he could find on the kayaking and canoeing sports industries. The type of data he collected are known as ___________ data. a) primary b) secondary c) descriptive d) exploratory e) mixed
B
Collin Roberts of Roberts Construction is planning to buy a piece of used earth-moving equipment. He would most likely base his purchase decision on ___________ of the alternative machines. a) descriptions b) inspections c) a sampling d) specifications e) reputations
B
Using the breakdown approach to sales potential, estimates are made
by starting with general economic conditions
Compared with consumer goods, marketers aiming at business customers a) do not need to select target markets. b) have an enormous amount of information available concerning potential customers. c) have more difficulty in determining where their customers are located. d) are restricted in the types of promotion they can use. e) have more difficulty in estimating customers' purchase potential
B
Decreasing sales, increasing expenses, or decreasing profits a) are to be expected during the marketing research process. b) are examples of symptoms that point to larger problems. c) usually have no effect on the marketing research process. d) are important considerations in designing the research project. e) should be carefully considered before collecting data.
B
Demand for a business product is _____ when two or more items are used in combination to produce a product. a) inelastic b) joint c) fluctuating d) derived e) partnered
B
Demand for a business product is ___________ if a price increase or decrease will not significantly affect that demand. a) elastic b) inelastic c) derived d) joint e) separate
B
Distribution, price, promotion, and product are all elements of A) marketing strategy. B) the marketing mix. C) a target market. D) a consumer good. E) a business strategy.
B
During the search for products and evaluating possible suppliers stage of the business buying decision process, marketers sometimes use _________ analysis to examine the quality, design, materials, and possibly item reduction in order to acquire the product in the most cost-effective way. a) cost b) value c) profit d) strategic e) SWOT
B
For demographic purposes, a mail survey sent out by the American Cancer Society asks each respondent to identify their race by choosing among a list of possibilities. This common type of question is called a(n) _____ question. a) dichotomous b) multiple-choice c) categorized d) open-ended e) optional respons
B
If Carrie wants to do some market research about the footwear industry that her company is a part of, but she has limited money and time, she would most likely collect a) sampling units. b) secondary data. c) quota data. d) primary data. e) survey data.
B
A survey question that requires a yes or no answer is called a a) qualifier. b) multiple-choice question. c) 50-50 question. d) dichotomous question. e) bimodal question.
D
If Staples believes that most of its sales are to businesses rather than consumers and that women are more likely to be making purchasing decisions, this would be a(n) ______ that Staples could test through marketing research. a) description b) hypothesis c) explanation d) sample e) experiment
B
If a marketing researcher is interested in observing group interaction during an informal, unstructured, and open-ended data collection process, he or she should use a) observation. b) a focus-group interview. c) an on-site computer interview. d) a shopping mall intercept interview. e) a telephone survey.
B
If you were to choose a sample with which to study the market for preschool toys in Illinois, the population would logically be defined as all a) children in Illinois. b) families in Illinois that have or are expecting preschool children. c) people in Illinois. d) preschools in Illinois. e) preschool children in Illinois.
B
In its purchase of desktop business computers, Albertson's asked that potential suppliers provide information only on units with 4.0 gigabytes of memory. As Albertson's management evaluates this purchase, it finds that 4.0 gigabytes are inadequate for many of the software programs used at Albertson's. In this instance, the firm would need to modify which aspect of the purchase process? a) Searching b) Specification development c) Alternative evaluation d) Selection e) Performance evaluation
B
In placing a tire order with Michelin, South Side Industrial Supply finds that the truck tires it is ordering have increased $37.50 in price since the last order. South Side proceeds with the order, confident that it can pass on the price increase to future customers. This is an example of business products having ___________ demand. a) derived b) inelastic c) joint d) fluctuating e) higher
B
In the process of conducting marketing research, marketers should allow for a) periodic review of data during the collection period. b) continual evaluation of the data during the entire collection period. c) no data review during collection; instead, they should wait for later interpretation of research findings. d) descriptive research to solve general problems. e) statistical analysis during the collection period.
B
Inelastic demand in business markets refers to a situation where a) demand for a given product fluctuates very little over time. b) price increases or decreases will not significantly change demand for a given product. c) demand for a given product fluctuates significantly over time. d) demand for one product depends heavily on the demand for another product. e) supply for a given product cannot keep pace with the demand for it.
B
Input-output analysis is most likely to yield what type of information? a) Number of employees that a firm has b) Industries that purchase the major portion of an industry's output c) Kinds of returns a firm is getting on its equipment investments d) Type of inventory turnover that is characteristic of a firm e) Kinds of variables that would be used to segment the target market
B
Jack Bateson knows his business has a problem because of an increasing number of consumer complaints received recently. He has decided how to make this problem a precise, researchable statement and should next move on to a) calculating reliability and validity. b) designing the research project. c) collecting data. d) interpreting research findings. e) taking corrective action.
B
Kroger Grocery Store is an example of a reseller. Which of the following factors concerning reseller purchase decisions is false? a) Resellers are concerned with the level of demand for the product. b) Resellers are not concerned with how much space the product takes up as long as it has a high price. c) Resellers want producers to be able to supply adequate quantities of the product. d) Resellers are concerned with the availability of technical and promotional assistance from the producer. e) Resellers are concerned with the markup percentage they can get on the product.
B
Marketers often begin the data collection phase of a research project by gathering secondary data. This type of information may come from both ___________ and ___________ sources. a) government; business b) internal; external c) primary; secondary d) formal; informal e) collected; distributed
B
One overlooked internal source of secondary marketing information discussed in the text is a) sales receipts. b) accounting records. c) interviews with salespeople. d) quality control data. e) consumer surveys.
B
Palmetto Regional Hospital has designed an upcoming research project for determining the best methods for improving patient care. The next step the organization must take in the marketing research process is a) interpreting research findings. b) collecting data. c) developing a testable hypothesis. d) sampling the population. e) reporting research findings.
B
Participants in _______ frequently get to see pictures, products, advertising samples, and diagrams. a) online surveys b) personal interview surveys c) mail surveys d) telephone surveys e) probability samples
B
Raython Hardware and Thames Industrial Supplier have worked closely for many years and have a mutually beneficial relationship in which Raython provides all of Thames's hardware needs in a timely manner. Raython and Thames's relationship could be best characterized as a(n) a) reciprocity agreement. b) partnership. c) intra-organizational group. d) alliance. e) tying arrangement.
B
St. Jude's Hospital decides to redo its kitchen with new flooring, cabinets, counters, and appliances. The hospital compiles a description of the project and then asks sellers to submit bids. After determining the most attractive bids, the hospital will then work with two or three companies to determine who will get the contract. This is an example of using ______ for a purchase decision. a) sampling b) negotiation c) inspection d) elimination e) description
B
Suppose that a retail store conducts a mail survey of its customers and finds that 50 percent of the customers believe store personnel are "courteous." Which benchmark or comparison would be most useful for interpreting this result? a) The annual dollars spent at the store by those customers who believe store personnel are courteous b) How the 50 percent figure compares with that for competitors c) The percentage of store personnel who have completed training in customer service and public relations d) How the 50 percent figure compares with industrial or wholesale institutions and stores e) The percentage of store personnel who feel they are courteous to customers
B
Suppose that when selecting the 5,000 homes to participate in scanner studies in one city, the research firm first divided the city's population into upper-, middle-, and lower-class families, then took a probability sample within each group. This would be a(n) _________ sample. a) random b) stratified c) area d) quota e) population
B
The major disadvantage of a mail survey versus a telephone or personal survey is a) having to offer premiums. b) the failure of respondents to return the questionnaire. c) the elimination of interview bias. d) the lack of open-ended questions. e) the cost.
B
The two basic types of sampling that marketing researchers use are a) random and nonrandom. b) probability and nonprobability. c) stratified and quota. d) even and odd. e) planned and spontaneous
B
There is some concern that marketing research has been used incorrectly by some firms. The major problem comes from ___________ because the researcher wants to obtain favorable results. a) using an inappropriate sample b) bias and distortion c) trying to be objective about views and opinions d) using in-house research departments e) employing large research firms, such as Gallup
B
What is the primary factor contributing to the increasing difficulty associated with gathering primary data through surveys? a) Most companies do not have any funding for survey research. b) Fewer people are willing to participate in surveys. c) Laws significantly limit firms' ability to conduct surveys. d) Unreliable methods of distributing surveys make them difficult to conduct. e) Very little useful information is ever gathered from survey results.
B
When Pepsi Max implemented a telephone survey to determine the effectiveness of a recent advertising campaign. One of the questions the interviewer asked was, "Have you ever heard of a cola with twice the caffeine of regular colas?" This is an example of which of the following kinds of questions? a) Open-ended b) Dichotomous c) Multiple-choice d) Imperative e) Declarative
B
When Precision Brake sells to the individual dealers, they would be considered which of the following business types? a) Producer b) Reseller c) Government d) Institutional e) Covert
B
T F An undifferentiated targeting strategy does not target a single market with one marketing mix.
f
When working as a summer intern for a local retail store, Jan Halverson was sent to the library to look up data on population forecasts for the city of San Antonio. The population information she found would be considered a) primary data. b) secondary data. c) information data from syndicated research services. d) secondhand data. e) a primary database.
B
Which method of business buying is necessary when products are highly homogeneous and examination of each item is not feasible? a) Negotiation b) Sampling c) Description d) Inspection e) Homogeneous selection
B
Which of the following basic survey methods is the least expensive method if there is an adequate response rate? a) Mail surveys b) Online surveys c) Telephone surveys d) Personal interview surveys e) Focus groups
B
Which of the following is a probability sampling technique used to reduce errors within random sampling? a) Quota b) Stratified c) Nonprobability d) Cluster e) Snowball
B
Which one of the following best characterizes a marketing information system (MIS)? a) An MIS is an orderly gathering of information that is not supplied through routine reporting systems such as sales reports and accounting data. b) An MIS provides a continuous flow of information about such things as distribution costs, prices, sales, and advertising expenses. c) An MIS is conducted on a special-project basis when needed. d) An MIS requires adjustments to its techniques to adapt to environmental circumstances and is in reality part of the accounting system. e) An MIS involves internal information collection about employees and customers
B
Which sampling design gives every member of the population an equal chance of appearing in the sample? a) Nonprobability b) Random c) Quota d) Stratified e) Poll
B
_________ is(are) a major threat to the sales success of jointly demanded products. a) Price changes b) Shortages c) Economic instability d) Inventory buildup e) Proliferation of brands
B
___________ analysis is a systematic evaluation of current and potential suppliers that focuses on many dimensions including price, product quality, delivery service, product dependability, and overall company reliability. a) Value b) Vendor c) Buying center d) Strategic e) Cost
B
A
Budweiser may choose to segment its market based on heavy, moderate, and light drinkers of its alcoholic beverages. This is an example of market segmentation based on a) behavioristic variables. b) benefits. c) lifestyles. d) psychographic variables. e) demographic variables.
A Pillsbury mill in Utah buys grain from growers in the western region. The purchasing agent for Pillsbury will most likely use which buying method? a) Description b) Inspection c) Sampling d) Negotiation e) Selection
C
A firm has conducted market research and found that customer satisfaction with its product is quite high. Nonetheless, repurchase behavior is very low. The research design evidently has a problem with a) secondary data. b) reliability. c) validity. d) reporting findings. e) generalizability.
C
A representative from Coca-Cola stops by at a local fast-food restaurant once a month to inquire how much soft drink syrup the store will need. The restaurant's orders are an example of which type of business purchase? a) New-task b) Modified rebuy c) Straight rebuy d) Bid e) Negotiated
C
A research method in which a number of people are exposed to an idea or concept and the interaction of the people is observed is called a(n) a) in-home interview. b) mail-group survey. c) focus-group interview. d) shopping mall intercept interview. e) chat room interview.
C
About what percentage of the annual U.S. gross domestic product is government spending? a) 2 percent b) 10 percent c) 20 percent d) 30 percent e) 50 percent
C
After deciding to order replacement parts for aging machinery, the buyer for a construction company examines catalogs and trade publications looking for these parts. The buyer is at which stage in the business buying decision process? a) Problem recognition b) Product specification c) Product-supplier search and evaluation d) Product-supplier selection e) Product-supplier post-evaluation
C
All of the following are important concerns of business customers except a) achieving a specific level of quality in the products offered to target markets. b) obtaining a level of quality that meets specifications. c) obtaining products that exceed specifications to ensure the best possible product performance. d) obtaining products for which the quality level is consistent. e) supporting customers with services they expect.
C
All the elements, individuals, or units of interest to researchers for a specific study are called the a) data set. b) sample. c) population. d) focus group. e) target market.
C
An informed guess or assumption about a certain problem or set of circumstances is known as a) a description of the situation. b) good research design. c) a hypothesis. d) a reliable guess. e) managerial intuition.
C
As it places its order for truck tires with Michelin, South Side Industrial Supply realizes that it must also place an order for valve stems and balancing weights for the truck tires. Such business products are characterized as having ____________ demand. a) derived b) inelastic c) joint d) fluctuating e) higher
C
Avon believes that sales of one of its lipstick lines have fallen due to the introduction of a new lipstick line, but it wants to make this tentative hypothesis more specific before proceeding. Avon should conduct a) experimental research. b) hypothesis testing. c) exploratory research. d) conclusive research. e) descriptive research.
C
Bart's Appliance Center owner Ron Bart feels that his organization has access to a great deal of information generated both inside and outside the firm, but much of this information is presently going to waste. Apparently, Bart needs to develop a a) marketing research focus. b) marketing knowledge bank. c) marketing information system. d) marketing strategy. e) data-gathering system.
C
Bob Denton of Denton Pest Control buys equipment from a supplier because that supplier hires him to spray the warehouse for insects periodically. This practice is known as a) cost-benefit analysis. b) cooperative selling. c) reciprocity. d) supplier agreement. e) modified rebuy purchase.
C
Business markets are typically divided into four categories. These categories are a) retailers, wholesalers, services, and nonprofit firms. b) producer, manufacturer, reseller, and government. c) producer, reseller, government, and institutional. d) manufacturer, wholesaler, retailer, and services. e) reseller, retailer, government, and institutional.
C
Carlos was given the task of conducting a research project for his firm and proceeds with the following steps: he asks questions to determine the research topic, conducts a telephone survey, writes a report describing the survey results, and gives that report to his boss. Which step of the marketing research process has Carlos omitted? a) Collecting data b) Defining and locating problems c) Interpreting research d) Designing the research project e) Reporting research findings
C
Churches, charitable organizations, and private colleges are considered _____ buyers. a) corporate b) government c) institutional d) producer e) nonprofit
C
Colin decided to apply some of the things he had learned in his MBA marketing research class to his business. The first thing he did was to a) develop a questionnaire. b) identify a sample frame. c) define the problem to be researched. d) conduct store exit interviews. e) collect secondary data.
C
Compared with the SIC system, the North American Industry Classification System (NAICS) will a) look at many industries at one time. b) be used throughout the world. c) contain the most up-to-date information for the NAFTA partners. d) provide less information about service industries. e) generate statistics that will not be useful in comparing countries.
C
Demand for business products is characterized as derived. From what is the demand derived? a) Industrial demand b) Modified demand c) Demand for consumer products d) Future product demand e) The business cycle
C
Goodyear is a manufacturer and marketer of tires for new passenger cars. In recent years, the company's business has declined because of the overall decrease in consumer demand for new cars. In this case, the demand for Goodyear's tire products is said to be _______since it depends on the demand for new cars. a) inelastic b) fluctuating c) derived d) elastic e) nonderived
C
Having recording biases and collecting only descriptive information are two of the primary drawbacks to a) statistical interpretation. b) mail surveys. c) observation. d) personal interviews. e) experimentation.
C
If Bloomingdale's wants to learn about consumers' attitudes toward on-line purchases and conducts a study to acquire this information, this study would collect ____________ data. a) causal b) experimental c) primary d) laboratory e) secondary
C
In a buying center, purchasing agents or purchasing managers are also known as a) gatekeepers. b) deciders. c) buyers. d) users. e) influencers.
C
In marketing research, a sample is best described as a) a small group that is a part of a larger group. b) all the elements, units, or individuals of interest to researchers for a specific study. c) a limited number of units chosen to represent the characteristics of a total population. d) a group that shares a common attribute within a population. e) a small portion of a product offered to customers to try a new product.
C
Individuals and business organizations that purchase products for the purpose of making a profit either by using the products to produce other products or by using them in their operations are classified as ___________ markets. a) consumer b) institutional c) producer d) government e) reseller
C
Inelastic demand simply means that a) buyers will not make a modified rebuy purchase. b) demand depends on how many items are purchased. c) a price increase or decrease will not significantly change the demand for an item. d) when price goes up, demand goes down. e) when supply is reduced, the price will increase.
C
Last year, Precision Brake's sales to the manufacturers of lawn tractors declined, partially due to the fact that more consumers were hiring small landscaping businesses to cut their grass. This decline in sales for Precision Brake is an example of a) Product scarcity b) Joint demand c) Derived demand d) Reciprocity demand e) Inelastic demand
C
Maggie has limited funds for collecting data about a new pricing strategy, but she needs data from a wide geographic area. Under these circumstances, Maggie should use a) telephone surveys. b) in-home interviews. c) mail surveys. d) shopping mall intercept interviews. e) focus-group interviews
C
Management at Readyfresh Dry Cleaners is concerned that it maintains a high level of service for its business accounts. How should the firm monitor the level of service these customers receive? a) Develop a code of service. b) Set service objectives. c) Formally survey customers. d) Specify service uniformity. e) Stress truthfulness with employees.
C
Marketing research is a process designed to gather information a) exclusively about a company's customers. b) from the company's database. c) not currently available to decision makers. d) about the needs and desires of employees. e) concerning the interpretation of the company's sales goals
C
Most business buying decisions are made by a) one person. b) a team of purchasing agents. c) a firm's buying center. d) inventory control personnel. e) the sales force.
C
Most business purchases can be classified as belonging to one of three types: a) delinquent, repetitive, or delivered. b) repetitive, new-task, or modified rebuy. c) modified rebuy, new-task, or straight rebuy. d) delinquent, new-task, or reciprocal. e) rebuy, reciprocal, or delayed.
C
Nathan, a marketing manager for Casual Express, a retail clothing store chain, wants to use observation methods to gather information about shopping behavior. Which of the following should Nathan know about observation methods of data collection? a) Observation uses secondary sources of data. b) Observation depends on mall interviews. c) Observation can tell Nirendra what is being done, but not why. d) Observation focuses on open-ended questions. e) Observation works best for telephone surveys.
C
Patricia Robertson is running for Congress from the Sixth District in her state. She is interested in knowing the intended choices of the voters. All the registered voters in her district would constitute the study's a) experiment. b) dependent variable. c) population. d) independent variable. e) sample.
C
Perry Supply's sales and sales force have continued to expand. Now, the firm plans to add a fleet of company cars as part of its sales compensation package. For Perry Supply, these vehicles would represent a ____________ purchase. a) modified rebuy b) straight rebuy c) new-task d) reevaluated e) repetitive
C
Primary data are best described as the a) first batch of data collected for a specific study. b) data that are necessary for a correct decision. c) data that are observed, recorded, or collected directly from subjects. d) data that are compiled for some purpose other than the study in question. e) data that are collected inside and outside the organization for some purpose other than the current investigation.
C
Research that is conducted to clarify the characteristics of certain phenomena to solve a particular problem is called ______ research. a) primary b) experimental c) descriptive d) secondary e) exploratory
C
Suppose that marketers at Lever Bros. are trying to determine whether the use of free samples of Snuggle fabric softener was the reason for a sales increase in a particular store. The type of research conducted to answer this question is a) exploratory. b) descriptive. c) experimental. d) informal. e) qualitative.
C
The 5,000 households that allowed their group purchases to be scanned are a a) focus group. b) quota. c) sample. d) target market. e) population.
C
The fact that business customers purchase products to be used directly or indirectly in the production of goods and services to satisfy customers' needs means that demand for business products is a) joint. b) economically stable. c) derived. d) inelastic. e) more fluctuating.
C
The main focus of a marketing information system is on a) the coordination of external information sources. b) classifying data into the proper information categories. c) data storage and retrieval. d) the accurate maintenance of inventory levels. e) gathering information on competitive activity.
C
The manager of MegaMarket is interested in asking consumers what they think about the store's new layout and expanded produce selection. If the manager would like to obtain a high response rate and have the study conducted as quickly as possible, which data collection method would you recommend? a) Mail survey b) Direct observation of consumers in the store c) Telephone survey d) Focus-group interview e) Shopping mall intercept interview
C
The marketing Mix is built around the A) product. B) company. C) customer. D) employee. E) retail outlet.
C
The objective of sampling in marketing research is to a) obtain responses from as many people as possible. b) control independent variables that might influence research results. c) select representative units from a total population. d) ensure that measures in the study are reliable. e) provide data that can be used to test the hypotheses being investigated.
C
The recently created Department of Homeland Defense is a member of the _____ market. a) regulatory b) reseller c) government d) producer e) institutional
C
The second stage in the business buying decision process is to a) search for products and suppliers. b) select the most appropriate product. c) develop product specifications. d) evaluate product and supplier performance. e) recognize the problem.
C
The three purposes for which individuals or groups can use products in order for it to be considered a business market are a) use in daily operations, end consumption, and resale. b) direct use in producing other products, company travel, and end consumption. c) resale, use in daily operations, and direct use in producing other products. d) governmental, institutional, and reseller purposes. e) making other products, selling to other businesses, making component parts.
C
What are the two ways governments make purchases? a) Cash or credit b) Contracting previous suppliers and bids c) Bids and negotiated contracts d) Lottery system and contract negotiations e) Request for new purchases and recurring orders
C
What type of business purchase is Samsung undertaking? a) Modified rebuy b) Straight rebuy c) New-task d) Straight purchase e) New rebuy
C
What was the first step of the buying decision process that Samsung went through when looking for the quasi-assembly pods? a) Searching for products and suppliers b) Selecting and ordering the most appropriate product c) Recognizing the problem or need d) Establishing product specifications e) Evaluating the product relative to specifications
C
When a business routinely purchases the same product with similar terms of sale, the purchase is called a a) new-task. b) repetitive purchase. c) straight rebuy. d) modified rebuy. e) standard order.
C
When a market researcher is using ethnographic techniques, he or she is engaging in a) mail surveys. b) personal interview surveys. c) observation. d) experimentation. e) focus groups.
C
When buying materials, the purchasing agent for Alco Pillow Manufacturing Company considers a variety of factors. Which one of the following is least likely to concern this buyer? a) Does the quality of the goods meet company specifications? b) Does the supplier consistently deliver on time? c) Does the supplier also sell to my competitors? d) Does the supplier offer the services required? e) Does the price meet company budget requirements?
C
When more information is needed about a problem and a tentative hypothesis needs to be made more specific, marketers usually conduct _________ research. a) descriptive b) experimental c) exploratory d) analytical statistical e) conclusive
C
Which method of business buying is most likely to be used when the products being purchased are standardized based on certain characteristics? a) Homogeneous selection b) Inspection c) Description d) Sampling e) Negotiation
C
Which of the following groups should Samsung not include in its buying center for the new equipment? a) Purchasing agents at Samsung b) Eventual users within Samsung c) Potential future Samsung customers d) Gatekeepers within Samsung e) Senior managers at Samsung
C
Which of the following is true with respect to buyers in business markets? a) Business buyers always act rationally when making purchases for their company. b) Business customers tend to be less informed about the products they purchase than consumer buyers. c) Business customers demand detailed information about a product's quality, features, or technical specifications. d) Business customers are no different than buyers in consumer markets. e) Business customers tend to buy products from their friends and contacts with business suppliers.
C
Which step in the marketing research process follows collecting data? a) Reporting research results b) Implementing organizational change c) Interpreting research findings d) Designing the research project e) Refining the research issue
C
Which of the following best describes Nintendo's initial strategy when introducing the Wii? A) Increase its sales of software to current gamers B) Increase its sales of game consoles to the under-25 market C) Increase its sales of game consoles by broadening the appeal of gaming to all ages
C) Increase its sales of game consoles by broadening the appeal of gaming to all ages
What is customer relationship management?
CPM is using info about customers to create marketing strategies that develop desirable customer relationships
C
Characteristics of individuals, groups, or organizations that are used for dividing a total market into smaller homogeneous groups are called ___________ variables. a) marketing b) classification c) segmentation d) stratification e) dividing
Promotion=?
Communication
E
Company sales forecasts are least likely to be based on a) executive judgment. b) customer surveys or sales force surveys. c) time series analysis. d) market tests. e) single-variable segmentation.
What are we concerned with?
Competitve forces
FORMULA WE NEED TO KNOW
Customer value = customer benefits - customer costs
Marketing focus?
Customers
Value
Customers subjective assessments of benefits relative to the cost in determining the worth of a product
A disadvantage of reciprocity is that it can lead to a) a price war. b) higher promotional costs. c) more competitive firms entering the industry. d) less-than-optimal purchases for the buyer. e) longer periods of negotiation.
D
A practice in which two businesses agree to buy from each other is a) a new task purchase. b) a straight rebuy. c) a modified rebuy. d) reciprocity. e) a straight purchase.
D
Although telephone surveys can be conducted very quickly, a major limitation is a) the ability to gain rapport with respondents. b) the difficulty in asking probing questions. c) that few companies prefer this survey method. d) that only a small portion of the population likes to participate in telephone surveys. e) the expense compared to in-home interviews.
D
Analysis of business input-output data by the federal government allows the government to have a better understanding of the a) cash flows that exist among industries. b) raw materials and labor required to produce a given product. c) amount of reinvestment that different industries use. d) types of industries that purchase particular products. e) growth projections for a given industry.
D
Baskin Robbins is conducting research on possible new ice cream flavors and products. It is selecting at random 100 males and 100 females in order to collect data. This is an example of ______ sampling. a) nonprobability b) random c) quota d) stratified e) selective
D
Besides administering the questionnaire, Colin observed people who went kayaking and canoeing on the Chatsworth River, making notes about their appearance and behavior. The type of data he collected are ___________ data. a) indirect b) mechanical c) secondary d) primary e) direct
D
Cameras, counting machines, and scanners are used most often in a) surveys. b) secondary data gathering. c) field settings. d) observation. e) experimentation.
D
Christy Bridgman is considering the purchase of a new fax machine for her real estate office. She is considering a machine that doesn't have as many functions but is available at a considerably lower price than her current machine. She is engaged in ___________ analysis. a) vendor b) downsizing c) strategic d) value e) profit
D
Coca-Cola is aiming its Diet Coke Plus (with vitamins and minerals) at health-conscious customers. These health-conscious customers represent Coke's A) audience. B) sales alternative. C) business group. D) target market. E) focus group.
D
Computer software that aids marketing managers in decision making by helping them anticipate the effect of certain decisions is known as a a) database. b) marketing research system. c) marketing information system. d) marketing decision support system. e) single-source system.
D
Corporate executives often prefer marketing research findings to be put into a report a) full of statistical analysis with details on methods employed by the researchers. b) examining the ethical implications of implementing results from the research report. c) that exposes no deficiencies or limitations of the research process. d) that is clear, short, and simply expressed. e) expressing the views and beliefs of top management about the research problem.
D
Data that are observed or collected directly from respondents are called a) direct samples. b) secondary data. c) stratified data. d) primary data. e) firsthand information.
D
Given the type of business market in which Precision Brake is currently operating, which group would it be least likely to sell to? a) Producers b) Governments c) Retailers d) Consumers e) Institutions
D
If Procter & Gamble, the maker of Dawn dishwashing liquid, wants to know what percentage of customers examine product labels before making a product selection in the grocery store, it can best gain this information through a) focus groups. b) mail surveys. c) personal interviews. d) observation. e) mall intercepts.
D
If Weight Watchers is interested in collecting information about Americans' perceptions of dieting programs, and the company believes that significant regional differences may exist, the best type of sampling would be a) random. b) quota. c) population. d) stratified. e) nonquota.
D
Mike's Roadside Market buys produce from area farmers, marks the merchandise at a price that includes some profit, and then sells the fruit and vegetables to the people in and around Centerville. Mike's would be classified as part of a ___________ market. a) consumer b) producer c) government d) reseller e) wholesaler
D
In business markets, individuals or groups purchase products for one of three purposes. These purposes are a) resale, wholesale, and direct use. b) wholesale, direct use, and use in producing other products. c) resale, wholesale, and use in producing other products. d) resale, direct use in producing other products, and use in general daily operations. e) use in general daily operations, wholesale, and resale.
D
In which of the following sampling designs do all members of a population have an equal chance of being selected? a) Stratified b) Nonprobability c) Quota d) Random e) Judgment
D
Individual influencing factors refer to a) relationships among those in the firm's buying center. b) uncontrollable environmental forces. c) the power an individual controls in the buying center. d) personal characteristics of individuals in the buying center. e) activities of suppliers.
D
Kashi's testing of the Crunchy Wheat promotion is an example of a) the collection of secondary data. b) information feedback. c) an exploratory study. d) a descriptive study. e) defining and locating problems.
D
Marketing researchers typically favor ___________ because they are extremely flexible. a) mail surveys b) direct observation c) experiments d) personal interviews e) telephone surveys
D
The purpose of market segmentation is to
divide a total market to enable a marketer to develop a more precise marketing mix.
Most businesses try to control the level of quality in the parts they buy from suppliers. Most firms develop standards for _____ in order to achieve their quality goals. a) how many different suppliers they use b) how many parts can fail c) controlling when shipments will arrive d) the percentage of defects allowed e) how long the parts should last
D
Pi Delta Mu sorority purchases food in bulk to feed its members living in the house. This means it is part of a(n) ___________ market. a) producer b) consumer c) reseller d) institutional e) government
D
Pointing out any deficiencies and the possible reasons for them should be done in the _______ step of the marketing research process. a) interpreting research findings b) collecting data c) defining the issue or problem d) reporting research findings e) designing the research project
D
Research designed to verify insights through an objective procedure to help marketers to choose between several alternatives is called a) primary. b) secondary. c) exploratory. d) conclusive. e) hypothetical.
D
Safeway Supermarkets recently placed an order with the Kahn Corporation. Safeway has ordered these same products before under the same terms of sale. What type of purchase does this situation represent? a) New-task b) Repetitive c) Institutional d) Straight rebuy e) Modified rebuy
D
Secondary data cannot be obtained from a) trade journals. b) the government. c) international sources. d) surveys. e) computerized literature retrieval databases.
D
Spam and privacy are both issues of concern related to a) personal interview surveys. b) telephone surveys. c) shopping mall intercept interviews. d) e-mail surveys. e) online experimentation.
D
Subscription services from firms such as ACNielsen provide marketing researchers with a good source of ___________ data. a) census b) statistical c) internal secondary d) external secondary e) primary
D
The Gap wants to target an older crowd in order to increase its market share so it surveys men and women from ages 40 to 60 about how often and for what type of activities they wear casual clothing. This is an example of a) reliability. b) exploratory research. c) probability sampling. d) descriptive research. e) experimental research.
D
The definition of marketing implies that ______ should receive benefits from exchange relationships. A) only customers B) only businesses C) company management D) both customers and businesses E) only the most important customers
D
The final step in the marketing research process is a) interpreting research findings. b) making sure the marketing research was conducted in an ethical manner. c) putting the results into a written document that is technical and written in formal language. d) reporting the research findings. e) deciding what the next research project should investigate.
D
The government decides to purchase a new fleet of fighter jets for the U.S. Air Force. What type of buying procedure is the government most likely to use? a) The government will request bids from all companies on its qualified bidder list. b) It will contact whatever company made the last jets and have them develop the new ones. c) Ads will be placed in the top five circulated U.S. newspapers for a company to produce the jets. d) The government will select a few firms and enter into negotiations with them until the contract is awarded. e) The contract will go to the first company that submits a reasonable bid for the desired jets.
D
The real value of marketing research to the organization can best be measured by a) its immediate impact on profits. b) the amount of time spent. c) how much it costs. d) improvements in the ability to make decisions. e) the increase in sales volume or market share.
D
The student senate at your university has been asked to give input on the purchase of new computers for campus computer labs. In this instance, the student senate would be acting as a(n) ______. a) buyer. b) gatekeeper. c) user. d) influencer. e) decider.
D
The use of marketing research is a) limited strictly to large corporations. b) limited to for-profit businesses of all sizes. c) controlled by the federal government. d) widespread throughout business and nonprofit organizations. e) carefully monitored by each state's trade agencies.
D
There are many factors that would influence Samsung's business buying decisions. Which one of the following would not? a) Environmental b) Organizational c) Interpersonal d) Demographic e) Individual
D
When a business is making its initial purchase of an item to be used to perform a new job, it is known as a _________ purchase. a) straight rebuy b) reciprocal c) delayed d) new-task e) modified rebuy
D
When certain consumer products are in high demand, producers might buy extra materials and equipment and when demand subsides, producers will cut back on their material purchases. This describes _____ demand. a) joint b) inelastic c) consumer d) fluctuating e) derived
D
Which of the following is the least flexible survey method? a) Telephone surveys b) Focus-group interviews c) Personal interview surveys d) Mail surveys e) Observation
D
Which of the following products is most likely to be purchased on the basis of contract negotiation? a) Eggs b) Office supplies c) Used cars d) A custom-made bulldozer e) Wheat
D
Which of the following would be considered an institutional buyer? a) The University of Illinois b) The Environmental Protection Agency c) Apple Computers d) The United Way e) City of Greenville
D
Which one of the following countries will not be included in the data presented in the new industry classification system that is replacing the SIC? a) Mexico b) Canada c) United States d) Japan e) All but one NAFTA country
D
Which step in the marketing research process involves the use of data analysis and statistical techniques to help draw conclusions? a) Locating and defining problems or research issues b) Developing hypotheses c) Collecting data d) Interpreting research findings e) Reporting research findings
D
Which type of business market tends to have the most complex buying procedures? a) Reseller b) Institutional c) Retailer d) Government e) Producer
D
2 categories of competition
Direct (take customers away) and Indirect (anything else)
A friend of yours starts his own business. He would like to expand his client base to include the government, but he believes his small business would be ignored. Based on your knowledge from the text, you tell him a) that he's absolutely right, the government doesn't deal with small businesses. b) although the government will deal with small businesses, he will never make a profit off a government contract. c) that any government, federal, state, or local would laugh at the size of his business. d) the government rarely considers new suppliers when making purchasing decisions. e) the government buys products from all sizes of business, but there is some red tape.
E
A representative product taken from a lot or batch, evaluated, and purchased refers to a) homogeneous selection. b) description. c) trust. d) negotiated inspection. e) sampling.
E
A valid study a) portrays the population being studied. b) results in a causal relationship between the independent and dependent variables. c) uses random sampling. d) verifies expected results. e) measures what it is supposed to.
E
AOL Time Warner uses its sales reports broken down by geographic regions as part of its marketing research to determine which markets are most rapidly adopting high-speed Internet connections. In this example, AOL Time Warner is using a) internal sampling. b) internal primary data. c) external secondary data. d) external primary data. e) internal secondary data.
E
All of the following are steps in the marketing research process except a) collecting data. b) interpreting research findings. c) designing the research project. d) reporting research findings. e) understanding your customer.
E
An online survey conducted before students could register for their fall semester classes asked, "Do you think online professor evaluation forms would be better than paper and pencil forms administered during class?" This is an example of a(n) ______ question. a) close-ended b) short answer c) multiple-choice d) open-ended e) dichotomous
E
An organization that decides to buy all of a certain part from the same company is using a) single-supplier purchasing. b) multiple sourcing. c) same vendor analysis. d) straight rebuy. e) sole sourcing.
E
Anderson Distribution Company has purchased 15 forklifts over the past two years. As it plans to place its next order for another five machines, management wonders if additional features may be needed in order to handle changes in the product lines it carries. For Anderson, these new forklifts represent a ___________ purchase. a) new-task b) repetitive c) straight rebuy d) repetitive order e) modified rebuy
E
Behavior Scan, a research company, provides information on household demographics, television viewing habits, and purchases tracked with Hotline cards. This is a) a marketing information system. b) a business software database. c) online information. d) U.S. Census data. e) single-source data.
E
Ben Davideau is assigned by his sales manager to come up with the names and addresses of twenty firms in his territory that have some potential for using sizable quantities of his firm's products. Wanting to be as efficient as possible, Ben looks in a) Sales & Marketing Management. b) an SIC listing. c) the Census of Business. d) the Census of Manufacturers. e) Standard & Poor's Register.
E
Colin developed a research design to aid his investigation. This design included a questionnaire that attempted to measure "outdoor activity preferences"; however, Colin's MBA professor said that the questionnaire measured not "outdoor activity preferences" but something else. The professor was questioning the research design's a) reliability. b) significance. c) truthfulness. d) corroboration. e) validity.
E
Compared to a mail survey, telephone surveys have a) lower response rates. b) a slower response time. c) invalid results. d) fewer expenses. e) higher response rates.
E
Demand for business products is also known as ______ demand. a) derived b) corporate c) business buying d) manufacturing e) industrial
E
If Georgia-Pacific seeks information about trends in housing starts around the country and uses U.S. Department of Commerce reports to get this information, it is using ___________ data. a) causal b) exploratory c) primary d) laboratory e) secondary
E
If Little Caesars wants to determine the impact of different coupon offers on pizza unit sales, it needs to conduct a) exploratory research. b) hypothesis development. c) survey research. d) stratified sampling. e) experimental research.
E
If the University Bookstore wanted to understand the textbook and school supplies needs on the campus of the University of Michigan, the population of study would be a) the faculty and staff of the University of Michigan. b) all college-aged adults in the state of Michigan. c) all the people who live in Ann Arbor and surrounding areas. d) undergraduate students at the University of Michigan. e) all students, faculty, supporters, and staff of the University of Michigan.
E
E
End use, price sensitivity, and brand loyalty are all _____ variables that can be used in market segmentation. a) psychographic b) usage c) demographic d) geodemographic e) behavioristic
In ___________ sampling, there is no way to calculate the likelihood that a specific element of the population being studied will be chosen. a) population b) random c) stratified d) probability e) nonprobability
E
In what type of sampling does every element have a known chance of being selected for study? a) Quota b) Stratified c) Random d) Nonprobability e) Probability
E
In which type of sampling design is the final choice of respondents left up to the interviewer? a) Stratified b) Random c) Cluster d) Area e) Quota
E
Individuals and business organizations that buy finished goods and resell them to make a profit without changing the physical characteristics of the product are classified as ___________ markets. a) consumer b) institutional c) producer d) government e) reseller
E
Institutional markets are a) intermediaries who resell goods to make a profit. b) federal and state government units. c) state or local government units. d) consumers who buy products for their own use. e) organizations that seek nonbusiness goals.
E
Marketing information systems and marketing research have changed rapidly because customers and companies around the world have been linked by a) the computer. b) the super database. c) the Interactive network. d) electronic online services. e) evolving telecommunications.
E
Problem location and definition is the first step toward finding a solution to a marketing problem or launching a research study. The first sign of a problem a) involves an informed guess or assumption about a certain set of circumstances. b) is usually accompanied by a cost/benefit analysis. c) most often comes in the form of customer complaints. d) is often mentioned in secondary data reports, such as trade journals. e) is typically a departure from some normal function, such as a failure to attain objectives.
E
Quota sampling is most commonly used in a) descriptive research. b) population research. c) surveys. d) collecting primary data. e) exploratory studies.
E
Research that allows marketers to make causal inferences about relationships is called a) variable research. b) relationality. c) exploratory research. d) linkage research. e) experimental research.
E
The National Do-Not-Call list affects the ability of marketing researchers to use a) mail surveys. b) sampling. c) personal interview surveys. d) in-home interviews. e) telephone surveys.
E
The following are all guidelines for questionnaire construction that support ethical marketing research except to a) allow the interviewer to introduce him/herself by name. b) indicate that this is a marketing research project. c) explain that no sales will be involved. d) state the likely duration of the interview. e) keep the name of the research company confidential.
E
The group of people within a business who are involved in making business buying decisions is referred to as a) the new-task team. b) negotiators. c) purchasing agents. d) deciders. e) the buying center.
E
The state of Montana is preparing to buy a large quantity of frozen orange juice for use in a large school district. Citrus Sweet, Inc. is in the citrus juice business but has never sold to the government market. To have a chance at getting this order, Citrus Sweet's first step must be to get her firm to a) make a presentation appointment with the state. b) quote prices to the purchasing department. c) advertise in the capital city. d) negotiate with the state. e) secure a slot on the list of qualified bidders.
E
The third stage in the business buying decision process is to a) evaluate product specifications to solve the problem. b) evaluate products relative to specifications. c) select and order the most appropriate product. d) evaluate product and supplier performance. e) search for products and suppliers.
E
Volkswagen purchases upholstery for the interiors of its vehicles from various suppliers. This upholstery must have a set of characteristics that is expressed by Volkswagen. This set is called a) descriptions. b) product features. c) criterion. d) purchase requests. e) specifications.
E
What is a primary difference between business and consumer buyers? a) Consumer buyers require more product information than business buyers. b) Business purchases are made by one individual whereas families make consumer purchases together. c) Repeat sales are more common with consumer buyers than business buyers. d) Consumers primarily buy inexpensive items; businesses only buy expensive items. e) Business buyers generally make larger orders than consumer buyers.
E
When Hunter Ceiling Fans buys electrical wire for use in producing its ceiling fans, Hunter is part of what type of market for electrical wire? a) Resale b) Wholesale c) Customer d) Consumer e) Business
E
When marketing researchers consider sampling techniques, they are preparing to collect ___________ data. a) census b) statistical c) internal secondary d) external secondary e) primary
E
When marketing researchers try to manipulate an independent variable and measure the resulting changes in a dependent variable, they are engaging in a) surveys. b) secondary data gathering. c) interviews. d) observation. e) experimentation.
E
When the researchers compared the average sales of Crunchy Wheat for the group that saw the promotion with the average sales for the group that did not see the promotion, in which stage of the marketing research process were they? a) Defining and locating problems b) Reporting research findings c) Developing hypotheses d) Collecting data e) Interpreting research findings
E
T F A product can be repositioned by changing its image through promotional efforts directed at customers.
t
Which of the following statements about business buying is false? a) Business marketers prefer not to sell to customers who place small orders. b) Business marketers must often sell their products in large quantities to make profits. c) Most business purchases are made by committee. d) Business purchases are usually made on the basis of contracts. e) Orders in business markets tend to be smaller than those placed in consumer markets.
E
Which of the following statements about conducting marketing research internationally is false? a) The marketing research process may need to be modified to allow for regional differences. b) A detailed search for and analysis of secondary data can help researchers gain a greater understanding of a particular marketing environment and pinpoint issues that must be taken into account in gathering primary research data. c) Primary data gathering may have a greater chance of success if the firm employs local researchers who better understand how to approach potential respondents and can do so in their own language. d) Specific differences among countries can have a profound influence in data gathering. e) Specific differences among countries have no affect on data gathering or the marketing research process.
E
Which of the following survey methods has the potential to offer quick response at a lower cost than traditional mail and telephone surveys? a) Total population surveys b) In-home (door-to-door) interviews c) Focus-group interviews d) Personal interview surveys e) Online surveys
E
_____ that are either accepted or rejected become the primary conclusions of a marketing research study. a) Descriptions b) Issues c) Primary data d) Samples e) Hypotheses
E
______ buy products from manufacturers and then resell the products to other firms in the distribution system. a) Retailers b) Producers c) Distributors d) Warehouses e) Wholesalers
E
The focal point of all marketing activities is A) Products B) The marketing mix C) profits D) sales E) customers
E) customers
Difference between market and market shares
Focus on market shares and what piece of pie you have
What can be tangible or intangible?
Goods, services and ideas which are the product
STAR
High growth market- dominate market share
If Little Caesars wants to determine the impact of different coupon offers on pizza unit sales, it needs to conduct Select one: a. exploratory research. b. hypothesis development. c. survey research. d. experimental research. e. stratified sampling.
Hypothesis development
D
If Jaguar focused all its marketing efforts for the new Jaguar XKR on professionals earning more than $250,000, it would be using a(n) ___________ strategy. a) homogeneous b) undifferentiated c) multisegmented d) concentrated e) stratified
D
If a company extends a line of products by introducing a new product to the market, and the firm does not distinctly position this product (i.e., separately from the other products in the line), the result could be a) poor product positioning. b) product deletion. c) product repositioning. d) cannibalization. e) new-product development.
B
If a company segments its market on the basis of their reasons for purchasing a particular product, the primary segmentation variable in use is a) lifestyle. b) motives. c) personality. d) benefit expectations. e) personality attributes.
B
In the context of marketing, cannibalization means a) one company eating up another company's market share. b) sales of a new product hurts sales of the company's existing products. c) a product is past its prime and should be deleted from the product mix. d) a company illegally uses copyrights and patents from another company. e) sales of a new product may exceed sales of an older, more established product.
A
Individuals, groups, or organizations with one or more similar characteristics that cause them to have similar product needs are classified as a) market segments. b) heterogeneous markets. c) concentrated markets. d) demographic segments. e) strategic segments.
Marketing Planning
Internal and defines the assignment of responsibilities and tasks and sets schedules for implementation
Time Warner Cable uses its sales reports broken down by geographic regions as part of its marketing research to determine which markets are most rapidly adopting high-speed Internet connections. In this example, Time Warner Cable is using Select one: a. internal secondary data. b. external primary data. c. internal sampling. d. external secondary data. e. internal primary data.
Internal secondary data
B
Intuition and expediency are primary characteristics of which of the following sales forecasting methods? a) Surveys b) Executive judgment c) Cycle analysis d) Market tests e) Industry indicators
What happens if a customer comes back more than once?
It is a 100% return
Marketing management
It is process of planning, organizing, implementing and controlling marketing activities to facilitate exchanges affecting and efficiently
Mission statement
Long term vision of what an organization wants to become
DOG
Low declining market-subordinate market share
CASH COW
Low growth-dominate market share
Mission
Main thing we run decisions through (COMPASS)
C
Many marketers are concerned about the number of potential customers within a certain area of land because of the different requirements to serve dissimilar areas. What is this segmentation variable called? a) Micromarketing b) Population c) Market density d) MSA e) PMSA
True or False
Marketing activities take place in a dynamic environment?
C
Mattel views the toy market as composed of four age groupings, each with different needs and desires. Each of these GROUPS are known as a) an undifferentiated market. b) heterogeneous. c) a market segment. d) a marketing mix. e) a concentrated market.
A
McDonald's uses a segmentation strategy for its sandwiches based on market characteristics such as age, gender, or income. Which of the following segmentation variables is McDonald's using? a) Demographic b) Geographic c) Psychographic d) Product-related e) Education
A
Micromarketing is a) a market segmentation approach in which firms focus precise marketing efforts on very small geographic markets. b) developing a very specific marketing mix that will effectively meet the needs of only a small segment of the market. c) marketing efforts that are tightly controlled by high-level executives in the organization. d) a way to segment the market to meet the needs of individuals with the same motives and personality attributes. e) creating advertising that is so specific to a certain type of individual that few people outside that micromarket will respond to the message.
E
Most markets for products are made up of individuals or groups with diverse needs for products and are called ________ markets. a) undifferentiated b) concentrated c) homogenous d) differentiated e) heterogeneous
b
Often, the Delphi technique is used in conjunction with an expert forecasting survey. The major objective is to a) allow an opportunity to obtain diverse expert opinions. b) allow experts to work separately to reach a consensus as to their forecasts. c) reach an accurate sales forecast through the use of multiple sales forecasting techniques. d) determine if the expert forecasting survey is superior to regression analysis. e) assess the extent to which this year's sales forecast is more accurate than that of previous years.
A
Pepsi wants to know where its Sierra Mist soft drink fits in with other drinks in the mind of the consumer. Marketers question a sample of consumers about Sierra Mist and other drinks on two different dimensions. They will most likely put this information into a _____ to show Sierra Mist's position. a) perceptual map b) ideal cluster c) product position chart d) market graph e) product matrix
D
Pillsbury defines all purchasers of flour as its target market. What targeting strategy would be most appropriate in this case? a) Concentrated b) Differentiated c) Wide appeal d) Undifferentiated e) Clustered
Marketing strategy
Plan of action for identifying and analyzing a target market in developing a marketing mix to meet the needs of that market. (Does not have to be in writing)
A
Population density and city size are _______ variables used for market segmentation. a) geographic b) demographic c) psychographic d) environmental e) geodemographic
Strategic planning
Process of establishing an organizational mission and formulating goals, corporate strategies, marketing objectives, marketing strategy and a marketing plan
B
Procter & Gamble markets Cheer detergent to young singles and couples and Tide detergent to families. Procter & Gamble is using a(n) ___________ targeting strategy for laundry detergents. a) multiuse b) differentiated c) stratified d) undifferentiated e) concentrated
D
Product positioning refers to a) the area in retail stores in which the manufacturer strives to position its products. b) product price but not to product image. c) product image but not to product price. d) the decisions and activities intended to create and maintain a certain concept of the firm's product in customers' minds. e) the length of time a product has survived in the market.
E
Retail-site location analyses, unique product offerings, and special advertising campaigns are all examples of the use of a) market density. b) demographic segmentation. c) behavioristic segmentation. d) environmental segmentation. e) micromarketing.
BCG Classification (Boston consultant group matrix)
STAR-CASH COW-DOG-QUESTION MARK
Marketing Concept
Satisfy customers, focus what your customers want, if they're satisfied it is all part of building the relationship
E
Segmentation variables are usually grouped into four categories: a) demographic, geographic, religion, and income. b) geopolitical, income, behavioristic, and psychographic. c) attitudes, lifestyles, behaviors, and gender. d) geographic, demographic, psychographic, and attitudes. e) demographic, geographic, psychographic, and behavioristic.
B
Several conditions must exist for market segmentation to be successful. These conditions include all of the following except a) the total market should be divided so that segments can be compared on sales potential, costs, and profits. b) customers' needs for the product must be homogeneous. c) the company must be able to reach the chosen segment with a particular marketing mix. d) segments must be identifiable and divisible. e) at least one segment must have enough profit potential to justify developing and maintaining a special marketing mix for that segment.
B
Systems such as PRIZM and Acorn provide companies with lifestyle and demographic information about neighborhoods throughout the United States. This information is used to aid a) behavioristic segmentation. b) geodemographic segmentation. c) market density analysis. d) demographic segmentation. e) geographic segmentation.
B
The ProMark Company manufactures and sells only one type of ballpoint pen at just one price. All its advertising is the same and is directed at the mass market. What type of targeting strategy is the ProMark Company using? a) Extensive b) Undifferentiated c) Concentrated d) Intensive e) Differentiated
A
The ability to purchase a product is a function of a) buying power. b) desire. c) willingness. d) authority. e) needs.
E
The amount of product a company expects to sell during a specific period at a specified level of marketing activity is called the a) company sales potential. b) revenue estimate. c) company sales prediction. d) market potential. e) sales forecast.
C
The buildup approach measure of sales potential a) starts with broad estimates of general economic activity. b) ends with an estimate of a single firm's sales of a specific product. c) starts with forecasts about demand for a specific product within a relatively small area. d) does not use sales estimates. e) is seldom employed by industrial firms.
strong
during the industrial revolution demand for manufactured goods was
C
The division of a market according to what benefits consumers want from the product is called ______ segmentation. a) behavioristic b) product usage c) benefit d) end-purpose e) advantage
D
The final step in the target market selection process is a) implementing the appropriate marketing mix for the target market. b) evaluating relative market segments. c) eliminating market segments that are cost prohibitive. d) selecting specific target markets. e) revising the final segmentation variables based on target selection.
C
The first step in the target market selection process is a) determining which segmentation variables to use. b) selecting specific target markets. c) identifying an appropriate targeting strategy. d) evaluating relevant market segments. e) developing market segment profiles.
D
The forecasting techniques that assume past sales patterns will continue into the future are all variations of a) regression analysis. b) random factor analysis. c) seasonal analysis. d) time series analysis. e) past sales forecasting surveys.
C
The maximum percentage of market potential that an individual firm can expect to obtain for a specific product is the a) sales forecast. b) market potential. c) company sales potential. d) company sales objective. e) market share goal.
Market Share
The percentage of a market that actually buys a specific product from a particular company
B
The primary advantage of a concentrated targeting strategy is a) it meets the needs of a wide range of consumers. b) it allows a firm to specialize to meet specific customer needs. c) it is more flexible than any other approach. d) it is the least risky targeting approach. e) its customers are the most willing to repurchase the same brands.
A
The process of dividing a total market into market groups because people within each group have relatively similar product needs is called a) segmentation. b) diversification. c) target marketing. d) concentration. e) customization.
E
The psychographic variable that includes numerous characteristics related to people's activities, interests, and opinion is a) motive. b) social class. c) personality. d) stage in family life cycle. e) lifestyle.
B
The purpose of market segmentation is to a) differentiate products. b) divide a total market to enable a marketer to develop a more precise marketing mix. c) reduce the overall cost of marketing activities. d) identify a single marketing mix that will be satisfactory for the general market. e) meet the needs of homogeneous markets.
C
The sales prediction technique based on the correlation between sales and other factors—such as population density, per capita income, or family size—is a) executive judgment. b) time series analysis. c) regression analysis. d) a market test. e) an expert survey.
E
The three most commonly used psychographic segmentation variables are a) personality, perception, and learning. b) personality, perception, and behavior. c) motives, attitudes, and lifestyles. d) attitudes, personality, and perception. e) personality, motives, and lifestyles.
E
The total volume of a product, for all firms in an industry, that would be purchased by specific customer groups within a specified time period at a given level of industry-wide marketing activity, is the a) competitor sales potential. b) sales objective. c) forecasted sales. d) company sales potential. e) market potential.
C
The undifferentiated targeting strategy for finding a target market will likely not be successful if a) product positioning is needed. b) the firm defines the total market as its target market. c) people within the market have heterogeneous needs. d) people within the market have homogeneous needs. e) the firm is capable of developing a single marketing mix that satisfies all people's needs.
Which of the following statements about the undifferentiated targeting strategy is false?
The undifferentiated targeting strategy uses multiple distribution systems to best reach individuals in the target market.
Core Competency
Thing that firm does well "strength" which SOMETIMES gives us an advantage over competition
D
Through marketing newsprint to newspaper publishers and glass manufacturers that use it in packing, International Paper segments its market based on a) customer size. b) psychographics. c) demographics. d) use of product. e) geographic location.
E
To find a target market, a firm can use the a) total market strategy and the undifferentiated strategy. b) product differentiation strategy and the customer differentiation strategy. c) demographic strategy and the psychographic strategy. d) socioeconomic strategy and the psychological strategy. e) undifferentiated strategy, the concentrated strategy, and the differentiated strategy.
A
Toyota has learned that some people want sports cars, while others want vans, trucks, sedans, and economy cars. In this instance, Toyota has found its markets to be a) heterogeneous. b) undifferentiated. c) concentrated. d) homogeneous. e) focused.
E
Using the breakdown approach to sales potential, estimates are made a) by referring to specific geographic factors. b) by establishing levels of marketing effort that will be required to achieve specific levels of sales. c) without reference to industry marketing efforts. d) without reference to general economic conditions. e) by starting with general economic conditions.
A widely used system for classifying individuals on the basis of lifestyle is
VALS
B
Variables such as geographic location, type of organization, customer size, and type of product usage are used to segment ___________ markets. a) consumer b) business c) government d) international e) most target
Environmental analysists
We ASSESS and INTERPRET the info from environmental scanning
E
When a business has a relatively small number of customers, a preferred method of forecasting is a) regression analysis. b) trend analysis. c) the Delphi technique. d) a market test. e) a customer forecasting survey.
a
When a company has its sales forecasts prepared by management consultants, economists, or college professors, it is using a(n) a) expert forecasting survey. b) Delphi technique. c) random factor analysis. d) external judgment survey. e) market test.
d
When a firm designs a single marketing mix and directs it at an entire market for a particular product, the company is using a(n) _________ strategy. a) concentrated targeting b) differentiated c) heterogeneous market d) undifferentiated e) single mix
E
When a marketer is engaged in the target market selection process and has assessed relevant market segments by considering such factors as sales estimates, competition, and estimated costs, the marketer is ready for the next step, which is to a) identify the appropriate targeting strategy. b) determine which segmentation variables to use. c) develop market segment profiles. d) evaluate relevant market segments. e) select specific target markets.
c
When evaluating market segments, assessment of competitors is important because a) it is difficult to segment a market when it has multiple competitors. b) an absence of competitors usually creates difficulties in accurately measuring segment sales potential. c) sales estimates may cause a segment to appear to be lucrative, but there may be several competitors that together have a large share of that segment. d) a competitive analysis may lead to confusion as to who are the key competitors. e) competition is generally not a major problem as long as a marketer is aware of it.
A
When markets are comprised of people with differing product needs, the marketing manager should use a(n) ___________ strategy. a) concentrated or differentiated targeting b) market-intensive c) integrated d) product-oriented e) undifferentiated
d
When research indicated that Bluetooth's products were not reaching the correct target market, marketers of Bluetooth decided to change from demographic segmentation to psychographic segmentation. Which group of new segmentation variables will Bluetooth now be using? a) Geographic location of customers b) Age, sex, and socioeconomic characteristics c) Social class variables d) Personality characteristics, motives, and lifestyles e) Family life cycle, social class, and religion
B
When selecting specific target markets, a firm should a) revert to an undifferentiated approach if the market is deemed heterogeneous. b) choose the segments most in line with the firm's objectives and long-term growth. c) choose all segments that are determined to be profitable for the organization. d) choose the minimum number of segments necessary to achieve company sales potential. e) pick the segments with the best sales forecasts for the upcoming period of time.
D
When using personality characteristics as a market segmentation variable, marketers generally a) conduct personality assessments of their potential target market to determine which personality characteristics they possess. b) use research developed by clinical psychologists to determine which personality characteristics consumers using their products are most likely to have. c) use generic characteristics that all members of the population have. d) use a positively viewed characteristic they assume much of their target market has or would like to have. e) conduct a series of focus groups to determine both the positive and negative characteristics members of their target market are perceived to have.
D
Which of the following is an example of a behavioristic segmentation variable? a) Family size b) Climate c) Age d) Usage rate e) Personality characteristics
D
Which of the following is not a characteristic of a consumer market? a) it consists of purchasers who intend to consume or benefit from the purchased products b) they do not buy products for the main purpose of making a profit c) they are sometimes referred to as B2C markets d) their purchasing decisions are always made by only one individual e) each of us belongs to numerous markets of this type
B
Which of the following is not a requirement or characteristic of a market? a) The ability to purchase a product b) A large number of people or organizations c) The authority to buy a product d) The willingness to use buying power e) The need for a specific product in a specific product category
D
Which of the following is not one of the major categories of consumer market segmentation variables? a) Demographic characteristics b) Geographic variables c) Psychographic dimensions d) Situational variables e) Behavioristic characteristics
B
Which of the following is the biggest drawback to using psychographic variables? a) They are not strongly reflective of consumer behavior. b) They are difficult to measure. c) They give poor information about consumer needs. d) They do not reflect socioeconomic characteristics of consumers. e) The resulting segments are difficult to be reached.
D
Which of the following products is least likely to be segmented according to stages in the family life cycle? a) Single-family homes b) Ford automobiles c) European vacations d) Diet Coke e) General Electric appliances
D
Which of the following sales forecasting techniques would generally be most suitable for estimating sales of a new product? a) Executive judgment b) Customer surveys c) Time series analysis d) Market tests e) Regression methods
d
Which of the following statements about the undifferentiated targeting strategy is false? a) The undifferentiated targeting strategy should be used when the needs of individual customers are similar. b) The undifferentiated targeting strategy uses one promotional program aimed at everyone in the target market. c) The undifferentiated targeting strategy is good for use with staple items, such as sugar and salt. d) The undifferentiated targeting strategy uses multiple distribution systems to best reach individuals in the target market. e) The opposite of the undifferentiated targeting strategy is the differentiated targeting strategy.
B
Which of the following variables would most likely be used to segment a business market? a) An attitude of the company's CEO b) The geographic location of the company c) The lifestyle of the company's buying agent d) Net income generated by the company e) Common opinions of the company's employees
What 2 questions does the mission statement answer?
Who are our customers and what is our core competency?
c
Why would a company use the undifferentiated strategy? a) The needs of individual consumers are dissimilar, and distinctive marketing mixes are required to satisfy them. b) The undifferentiated strategy is the one strategy that provides maximum satisfaction to the whole market. c) The needs of individual consumers in the target market for a specific product are similar, so the organization can satisfy most customers with a single marketing mix. d) The undifferentiated strategy is expensive to implement but tends to produce the most sales. e) The undifferentiated strategy requires less time and fewer resources.
Marketing Plan
Written document
B
__________ describe the similarities among potential customers within a market segment and explain the differences among people in different market segments. a) Market segmentation variables b) Market segment profiles c) Segmentation grids d) Market differentiation indexes e) Market concentrations
T F A market segment profile provides customers with an understanding of how a business can use its capabilities.
f
Approximately what percentage of civilian workers in the United States performs marketing activities? a) 25 to 33 percent b) 81 to 92 percent c) 42 to 50 percent
a
Assuming that inflation is low, high buying power characterizes the _____ stage of the business cycle. a) prosperity b) depression c) recovery d) succession e) recession
a
Boca Burger's website features information about products, recipes, and nutritional values, but customers cannot actually purchase products from the website. This website is most likely used primarily as a ______ marketing tool. a) promotional b) distributional c) pricing d) targeting e) production
a
During which stage of the business cycle is unemployment low and total income relatively high? a) prosperity b) depression c) recovery d) succession e) recession
a
For most firms, the costs of marketing activities consume approximately what portion of the consumer's dollar? a) one-half b)one-fifth c) one-third
a
If all the gas stations in a city collaborated to determine what gas prices should be charged, they would be violating the a) Sherman Antitrust Act b) Clayton Act c) Federal Trade Commission Act d) Robinson-Patman e) Act Wheeler-Lea Act
a
Many health care companies are making adaptations to meet the needs of an aging population as the demand for medical services and products such as diabetes supplies increases. This change in marketing strategy is best explained by a change in a) demographics. b) cultural values. c) income levels. d) consumerism. e) subcultures.
a
Marketers primarily focus their environmental analysis on ____ competitors. a) Brand b) Generic c) Total budget d) Product e) Monopolistic
a
Marketers use the term "___________" to describe establishing long-term, mutually satisfying buyer-seller relationships. a) relationship marketing b) customer service c) marketing management d) exchange e) utility
a
Marketers who view political forces as being beyond their control are taking a ___________ response toward these forces. a) reactive b) aggressive c) proactive d) competitive e) liberal
a
Marketing activities are a) used by all sizes of organizations including for-profit, nonprofit, and government agencies. b) limited to use by larger for-profit and nonprofit organizations. c) implemented only to increase profits for the organization and to expand the scope of its customer base. d) used by all types and sizes of businesses but are not used by nonprofit organizations.
a
Procompetitive laws are those designed to a) preserve competition. b) protect the consumer. c) ensure product safety. d) reduce competition. e) limit business lobbying of government officials.
a
The Better Business Bureau is probably the best-known a) nongovernmental regulatory group. b) state-operated enforcement agency. c) national evaluator of advertisements. d) federal regulatory group. e) self-regulatory unit operating at the national level.
a
The amount of money received through wages, rents, investments, pensions, and subsidies is called a) income. b) wealth. c) discretionary income. d) prosperity. e) credit.
a
The forces of the marketing environment include a) political, legal and regulatory, sociocultural, technological, economic, and competitive. b) sociocultural, legal, regulatory, economic, and competitive. c) legal, regulatory, political, and sociocultural. d) competitive and noncompetitive forces that affect most lifestyles. e) fairly static components.
a
The forces of the marketing environment primarily affect marketers in three ways: They influence customers by affecting their lifestyles and preferences for products; they determine whether or how a marketing manager can perform certain marketing activities; and they a) affect a marketing manager's decisions and actions by influencing buyers' reactions to the firm's marketing mix. b) dictate that changes be made to the existing marketing mix despite any negative reactions from customers. c) make most new products obsolete very quickly so that research and development must continually develop new products.
a
The type of competitive structure that exists in the case where there are almost no substitutes for a product is a(n) a) Monopoly b) Oligopoly c) Monopolistic competition d) Pure competition e) noncompetition
a
To monitor changes in the marketing environment effectively, marketers must engage in a) environmental scanning and analysis. b) economic scanning c) self-regulatory analysis d) marketing research analysis e) information collecting
a
What type of competitive structure exists when a firm produces a product that has no close substitutes? a) Monopoly b) Oligopoly c) Monopolistic competition d) Pure competition e) Mixed competition
a
What type of competitive structure exists when just a few sellers control a large portion of the supply of a product? a) oligopoly b) monopoly c) pure competition d) mixed competition e) monopolistic competition
a
When Burger King offers 99-cent Whoppers to increase store traffic, it is altering which aspect of the marketing mix? a) Price b) Promotion c) Distribution d) Product e) Target market
a
Which of the following acts was enacted to prevent businesses from restraining trade and monopolizing markets? a) Sherman Antitrust Act b) Clayton Act c) Federal Trade Commission Act d) Robinson-Patman e) Act Wheeler-Lea Act
a
Which of the following agencies would most likely have jurisdiction over the problem with lead in the paint of children's toys? a) Consumer Product Safety Commission b) Children's Online Protection Act c) Food and Drug Administration d) Environmental Protection Agency e) National Advertising Review Board
a
Which of the following best describes the acceptance of the marketing concept by American organizations? a) The marketing concept has yet to be fully accepted by all organizations. b) All organizations fully utilize the marketing concept to run their businesses. c) Nearly half of all organizations are still in the sales orientation and have not implemented the marketing concept.
a
Which of the following companies is the best example of a service marketer? a)fedex b) sony c)abercrombie
a
Which of the following firms would be most likely to have a monopoly for its competitive environment? a) TimeWarner Cable TV b) Mitchell Trucking c) Continental Airlines d) Rogers Plumbing e) Chemlawn Lawn Care
a
Which one of the following statements by a company president best reflects the marketing concept? a) We have organized our business to make certain that customers get what they want. b) We believe that the marketing department must organize to sell what we produce. c) We have organized an aggressive sales force in our company to promote our products.
a
___________ competitors are the most significant to marketers because buyers see the different products of these firms as direct substitutes for each other. a) Brand b) Generic c) Total budget d) Product e) Oligopolistic
a
value
a customer's subjective assessment of benefits relative to costs in determining the worth of a product
If a marketing researcher is interested in observing group interaction during an informal, unstructured, and open-ended data collection process, he or she should use Select one: a. a focus-group interview. b. observation. c. an on-site computer interview. d. a shopping mall intercept interview. e. a telephone survey.
a focus-group interview
In marketing research, a sample is best described as Select one: a. all the elements, units, or individuals of interest to researchers for a specific study. b. a group that shares a common attribute within a population. c. a small portion of a product offered to customers to try a new product. d. a small group that is a part of a larger group. e. a limited number of units chosen to represent the characteristics of a total population.
a limited number of units chosen to represent the characteristics of a total population
The marketing concept is
a management philosphy
marketing concept
a philosophy stating that an organization should try to satisfy customers' needs through a coordinated set of activities that allowed the organization to achieve its goals
good
a physical product that you can touch is a
target market
a specific group of customers on whom a company focuses its marketing efforts
McDonald's uses a segmentation strategy for its sandwiches based on market characteristics such as age, gender, or income. Which of the following segmentation variables is McDonald's using? a) Demographic b) Geographic c) Psychographic d) Product-related e) Education
a) Demographic
When a company is introducing a new brand in a market where it already has one or more brands, which type of product positioning is most likely to be used? a) Positioning to avoid competition b) Head-to-head competition c) Parallel positioning d) Segmented positioning e) Counter positioning
a) Positioning to avoid competition
In an effort to forecast his firm's sales for the coming year, Henry Thompson takes sales for the last three years and calculates a growth trend. Henry is employing which forecasting method? a) Time series analysis bExecutive judgment c) Surveys d) Regression analysis e) Market tests
a) Time series analysis
A widely used system for classifying individuals on the basis of lifestyle is a) VALS. b) PRIZM. c) CMSA. d) LIFO. e) Prospect Zone.
a) VALS.
Micromarketing is a) a market segmentation approach in which firms focus precise marketing efforts on very small geographic markets. b) developing a very specific marketing mix that will effectively meet the needs of only a small segment of the market. c) marketing efforts that are tightly controlled by high-level executives in the organization. d) a way to segment the market to meet the needs of individuals with the same motives and personality attributes. e) creating advertising that is so specific to a certain type of individual that few people outside that micromarket will respond to the message.
a) a market segmentation approach in which firms focus precise marketing efforts on very small geographic markets
The sales forecasting method that consists of making a product available to buyers in one or more locations and measuring purchase response is a) a market test. b) regression analysis. c) trend analysis. d) a survey. e) the Delphi technique.
a) a market test.
Budweiser may choose to segment its market based on heavy, moderate, and light drinkers of its alcoholic beverages. This is an example of market segmentation based on a) behavioristic variables. b) benefits. c) lifestyles. d) psychographic variables. e) demographic variables.
a) behavioristic variables.
The manager at a local recreational vehicle store, Off-Road Rage, believes the next two years will be difficult because of an economic recession. Using this forecast, he determines the effect on the industry's market potential and then estimates how his company's potential sales will look based on this outlook. This manager is using a _________ approach to estimating sales potential. a) breakdown b) recessionary c) buildup d) pyramid e) dimensional
a) breakdown
The ability to purchase a product is a function of a) buying power. b) desire. c) willingness. d) authority. e) needs.
a) buying power.
Interior Designs Inc. sells expensive custom-made draperies, bedding, and accessories using a single marketing mix and is therefore most likely using a(n) _____ targeting strategy. a) concentrated b) differentiated c) exclusive d) focused e) undifferentiated
a) concentrated
When markets are comprised of people with differing product needs, the marketing manager should use a(n) ___________ strategy. a) concentrated or differentiated targeting b) market-intensive c) integrated d) product-oriented e) undifferentiated
a) concentrated or differentiated targeting
Kelly's Kids is a home-based business that sells high-quality children's clothing at premium prices using in-home parties. These in-home parties typically cater to families with small children and middle- to upper-middle-class income. Kelly's Kids is using _____ variables to segment its market. a) demographic b) psychographic c) sociographic d) behavioristic e) geographic
a) demographic
With its Venus razor, Gillette was the first marketer to offer a triple blade razor specifically designed for women. This is an example of market segmentation using ___________ variables. a) demographic b) psychographic c) geographic d) family life cycle e) product use
a) demographic
A targeting strategy in which an organization directs its marketing efforts at several segments is called a(n) ___________ targeting strategy. a) differentiated b) total market c) concentrated d) undifferentiated e) integrated
a) differentiated
When a company has its sales forecasts prepared by management consultants, economists, or college professors, it is using a(n) a) expert forecasting survey. b) Delphi technique. c) random factor analysis. d) external judgment survey. e) market test.
a) expert forecasting survey.
Population density and city size are _______ variables used for market segmentation. a) geographic b) demographic c) psychographic d) environmental e) geodemographic
a) geographic
Toyota has learned that some people want sports cars, while others want vans, trucks, sedans, and economy cars. In this instance, Toyota has found its markets to be a) heterogeneous. b) undifferentiated. c) concentrated. d) homogeneous. e) focused.
a) heterogeneous.
Individuals, groups, or organizations with one or more similar characteristics that cause them to have similar product needs are classified as a) market segments. b) heterogeneous markets. c) concentrated markets. d) demographic segments. e) strategic segments.
a) market segments.
Pepsi wants to know where its Sierra Mist soft drink fits in with other drinks in the mind of the consumer. Marketers question a sample of consumers about Sierra Mist and other drinks on two different dimensions. They will most likely put this information into a _____ to show Sierra Mist's position. a) perceptual map b) ideal cluster c) product position chart d) market graph e) product matrix
a) perceptual map
A forecasting method that predicts sales based on relationships between past sales and other variables is called a) regression analysis. b) customer forecasting surveys. c) the Delphi technique. d) random factor analysis. e) time series analysis.
a) regression analysis.
The process of dividing a total market into market groups because people within each group have relatively similar product needs is called a) segmentation. b) diversification. c) target marketing. d) concentration. e) customization.
a) segmentation.
A market in which a large proportion of customers have similar needs for a product is called a(n) _____ market. a) undifferentiated b) heterogeneous c) homogenous d) differentiated e) concentrated
a) undifferentiated
Marketers for C & H Sugar believe that consumers have similar needs for the product. C & H will most likely use a(n) ___________ approach in defining a target market. a) undifferentiated b) differentiated c) product strategy d) cost-benefit e) demographic
a) undifferentiated
When the needs of individual consumers in a target market for a specific product are similar and the organization can satisfy most customers with a single marketing mix, the best approach to use may be the ___________ strategy. a) undifferentiated b) differentiated c) segmented d) concentrated e) heterogeneous
a) undifferentiated
market orientation
an organization-wide effort that includes researching customers' needs, generating marketing intelligence for use in the organization, being responsive to customers' ever-changing wants and needs, and disseminating marketing intelligence across departments within the organization
Decreasing sales, increasing expenses, or decreasing profits Select one: a. are important considerations in designing the research project. b. should be carefully considered before collecting data. c. usually have no effect on the marketing research process. d. are examples of symptoms that point to larger problems. e. are to be expected during the marketing research process.
are examples of symptoms that point to larger problems
When marketing research shows that a group of people does not desire a particular product, the people in that group
are not in the market for that product
production
as the industrial revolution came to the united states, most firms operated in what orientation?
T F A marketer can use regression analysis techniques to predict the sales of new products.
f
A change in the minimum drinking age in any given state illustrates a change in the ___________ for Miller Brewing. a) marketing mix b) marketing environment c) marketing concept d) marketing task e) product concept
b
A marketing manager for a small computer manufacturer is analyzing the potential effects of political, legal, sociocultural, and economic forces on the firm's operations. The marketing manager is examining the ___________ that influence(s) the firm's strategy. a)operating situation b)marketing environment c)surroundings d)economic conditions e)trends
b
A marketing orientation is an organization-wide effort that includes all of the following activities except a) researching customers' needs. b) focusing on the marketing department only. c) generating marketing intelligence for use in the organization. d) being responsive to customers' ever-changing wants and needs. e) disseminating marketing intelligence across departments within the organization.
b
A physical product you can touch is a(n) a) service. b) good. c) idea.
b
Customer relationship management focuses on using ___________ about customers to create marketing strategies. a)internal communication b)information c)purchasing power insights d)marketing mix knowledge e)implementation knowledge
b
Due to limited resources, a consumer decided to serve Hawaiian Punch to a New Year's Eve party crowd instead of Korbel champagne. As a result of this action, Korbel and Hawaiian Punch can be viewed as ___________ competitors. a) Pure b) Generic c) Total budget d) Product e) Oligopolistic
b
Initiatives intended to improve an organization's positive impact on society and the natural environment are called a) environmental marketing b) green marketing c) socially-responsible marketing d) energy-conscious marketing
b
Long-term relationships with profitable customers is the key objective of a) personal selling. b) customer relationship management. c) production oriented firms. d) e-marketing. e) distribution channels.
b
Marketing knowledge and skills a) are not necessary for a nonprofit organization. b) enhance consumer awareness and help provide people with satisfying goods and services.
b
Most marketers operate in a competitive environment of either a) oligopoly or monopoly. b) oligopoly or monopolistic competition. c) oligopoly or pure competition. d) monopoly or pure competition. e) pure competition or monopolistic competition.
b
Mothers Against Drunk Driving (MADD) is a group that works to change attitudes and laws about driving under the influence of alcohol. MADD primarily markets a)goods. b)ideas. c)services. d)political figures.
b
Rob Donaldson runs a successful wholesale business that sells equipment to restaurants throughout the Midwest. He is considering purchasing his own fleet of trucks to deliver the equipment instead of relying on a shipper as he is currently doing. This most closely represents a decision about a) which market he should target. b) the best way to distribute his products. c) how to effectively promote his business.
b
Technology assessment is a) measuring how much technology has been incorporated into an organization. b) trying to foresee the effects of new products and processes on the firm's operation and on society in general. c) assessing how much technology one wants to incorporate into a company in the future. d) judging how a firm's products affect society. e) weighing the cost of new technology to determine whether a firm can afford to use it.
b
Technology is a) the application of scientific knowledge to build products that customers desire. b) the application of knowledge and tools to solve problems and perform tasks more efficiently. c) applied sciences. d) one of the weakest marketing environment forces. e) the result of research performed primarily by universities.
b
The FTC can issue a cease-and-desist order, which is an injunction to a) report to the FTC immediately. b) stop doing whatever caused the complaint. c) appear before the courts. d) pay for damages caused by negligence of the firm. e) close down the firm until further notice.
b
The marketing concept affects a) just the marketing department. b) all organizational activities. c) only marketing and finance.
b
The marketing concept is a management philosophy that affects a) only marketing activities. b) all efforts of the organization. c) mainly the efforts of sales personnel. d) mainly customer relations. e) only business organizations.
b
The marketing concept is best defined as a) a second definition of marketing. b) a philosophy stating that an organization should try to satisfy customers' needs through a coordinated set of activities that allows the organization to achieve its goals. c) the performance of business activities that direct the flow of goods and services from producer to customer or user. d) a philosophy stating that an organization should attempt to accomplish its goals with no regard for the needs of customers.
b
The product variable of the marketing mix can include all of the following except a) creation of brand names. b) consumer perception of the product price. c) development of product packaging. d) warranty issues. e) repair services.
b
The two least common competitive structures at the opposite ends of the continuum are a) monopolies and oligopolies. b) pure competition and monopolies. c) monopolistic competition and monopolies. d) pure competition and no competition. e) oligopolies and pure competition.
b
Today, establishing long-term, mutually beneficial arrangements in which both the buyer and seller focus on value enhancement through the creation of more satisfying exchanges is known as a) marketing synthesis. b) relationship marketing. c) a marketing orientation. d) the marketing concept. e)strategic marketing.
b
What national self-regulatory organization screens ads? a) Federal Advertising Review Division b) National Advertising Review Board c) Federal Communications Commission d) Consumer Federation of America
b
Which category of income are marketers most interested in? a) Wealth b) Disposable income c) Discretionary income d) Total income e) Extra income
b
Which of the following would represent a brand competitor for Ford's Escape Hybrid sport utility vehicle? a) Honda Pilot b) Toyota's Highlander Hybrid c) Honda Civic Hybrid d) Taxi ride
b
______ is the degree to which an exchange helps achieve an organization's objectives. a) Controlling b) Effectiveness c) Success rate
b
_________ is the process of establishing performance standards, comparing actual performance with established standards, and reducing the difference between desired and actual performance. a) Internal control analysis b) Marketing control c) Market flow regulation d) Environmental market analysis
b
_________ of marketing plans hinges on coordination of marketing activities, motivation of marketing personnel, and effective communication within the marketing unit. a) Marketing control b) Implementation c) Organizing d) Planning e) Strategic planning
b
__________ competitors provide very different products that satisfy the same basic customer need. a) Brand b) Generic c) Total budget d) Product e) Marketing
b
Which of the following is not a requirement or characteristic of a market? a) The ability to purchase a product b) A large number of people or organizations c) The authority to buy a product d) The willingness to use buying power e) The need for a specific product in a specific product category
b) A large number of people or organizations
Intuition and expediency are primary characteristics of which of the following sales forecasting methods? a) Surveys b) Executive judgment c) Cycle analysis d) Market tests e) Industry indicators
b) Executive judgment
What is the main problem with using a market test as a forecasting tool? a) Difficult to interpret b) Expensive c) Inaccurate d) Unacceptable to consumers e) Overused
b) Expensive
Subaru is producing a new crossover van with all-wheel drive. Which of the following would be a likely variable for segmenting the market for this new model? a) Religion b) Geographic location c) Income d) Political views e) Ethnicity
b) Geographic location
__________ describe the similarities among potential customers within a market segment and explain the differences among people in different market segments. a) Market segmentation variables b) Market segment profiles c) Segmentation grids d) Market differentiation indexes e) Market concentrations
b) Market segment profiles
The Sara Lee Company is attempting to forecast sales for a new ice cream cake. To come up with an accurate forecast, Sara Lee places the product in Atlanta supermarkets for a period of four months. In this instance, Sara Lee is using which forecasting method? a) Time series analysis b) Market test c) Executive judgment d) Regression analysis e) Survey
b) Market test
Which of the following variables would most likely be used to segment a business market? a) An attitude of the company's CEO b) The geographic location of the company c) The lifestyle of the company's buying agent d) Net income generated by the company e) Common opinions of the company's employees
b) The geographic location of the company
Which of the following is the biggest drawback to using psychographic variables? a) They are not strongly reflective of consumer behavior. b) They are difficult to measure. c) They give poor information about consumer needs. d) They do not reflect socioeconomic characteristics of consumers. e) The resulting segments are difficult to be reached.
b) They are difficult to measure.
The ProMark Company manufactures and sells only one type of ballpoint pen at just one price. All its advertising is the same and is directed at the mass market. What type of targeting strategy is the ProMark Company using? a) Extensive b) Undifferentiated c) Concentrated d) Intensive e) Differentiated
b) Undifferentiated
Often, the Delphi technique is used in conjunction with an expert forecasting survey. The major objective is to a) allow an opportunity to obtain diverse expert opinions. b) allow experts to work separately to reach a consensus as to their forecasts. c) reach an accurate sales forecast through the use of multiple sales forecasting techniques. d) determine if the expert forecasting survey is superior to regression analysis. e) assess the extent to which this year's sales forecast is more accurate than that of previous years.
b) allow experts to work separately to reach a consensus as to their forecasts.
Variables such as geographic location, type of organization, customer size, and type of product usage are used to segment ___________ markets. a) consumer b) business c) government d) international e) most target
b) business
When selecting specific target markets, a firm should a) revert to an undifferentiated approach if the market is deemed heterogeneous. b) choose the segments most in line with the firm's objectives and long-term growth. c) choose all segments that are determined to be profitable for the organization. d) choose the minimum number of segments necessary to achieve company sales potential. e) pick the segments with the best sales forecasts for the upcoming period of time.
b) choose the segments most in line with the firm's objectives and long-term growth.
Marketing is the process of: A) promoting products through personal selling and advertising to develop and maintain favorable relationships with customers and stakeholders. B) creating, distributing, promoting, and pricing products to facilitate satisfying exchange relationships with customers and to develop and maintain favorable relationships with stakeholders in a dynamic environment. C) delivering a standard of living to a society. D) creating, distributing, promoting, and pricing goods, services, and ideas to facilitate the achievement of the firm's objectives. E) focusing on customers' needs.
b) creating, distributing, promoting, and pricing products to facilitate satisfying exchange relationships with customers and to develop and maintain favorable relationships with stakeholders in a dynamic environment.
Several conditions must exist for market segmentation to be successful. These conditions include all of the following except a) the total market should be divided so that segments can be compared on sales potential, costs, and profits. b) customers' needs for the product must be homogeneous. c) the company must be able to reach the chosen segment with a particular marketing mix. d) segments must be identifiable and divisible. e) at least one segment must have enough profit potential to justify developing and maintaining a special marketing mix for that segment.
b) customers' needs for the product must be homogeneous.
Procter & Gamble markets Cheer detergent to young singles and couples and Tide detergent to families. Procter & Gamble is using a(n) ___________ targeting strategy for laundry detergents. a) multiuse b) differentiated c) stratified d) undifferentiated e) concentrated
b) differentiated
The purpose of market segmentation is to a) differentiate products. b) divide a total market to enable a marketer to develop a more precise marketing mix. c) reduce the overall cost of marketing activities. d) identify a single marketing mix that will be satisfactory for the general market. e) meet the needs of homogeneous markets.
b) divide a total market to enable a marketer to develop a more precise marketing mix.
Systems such as PRIZM and Acorn provide companies with lifestyle and demographic information about neighborhoods throughout the United States. This information is used to aid a) behavioristic segmentation. b) geodemographic segmentation. c) market density analysis. d) demographic segmentation. e) geographic segmentation.
b) geodemographic segmentation.
The primary advantage of a concentrated targeting strategy is a) it meets the needs of a wide range of consumers. b) it allows a firm to specialize to meet specific customer needs. c) it is more flexible than any other approach. d) it is the least risky targeting approach. e) its customers are the most willing to repurchase the same brands.
b) it allows a firm to specialize to meet specific customer needs.
Sixteen-year-old high school students do not form a market for alcoholic beverages because they a) lack sufficient buying power to form a market. b) lack the authority to purchase this type of product. c) do not want to purchase this type of product. d) do not have sufficient experience with this type of product. e) lack the money to purchase this type of product.
b) lack the authority to purchase this type of product.
General Electric calculates that the total number of light bulbs sold to consumers in the next year by all light bulb producers is 1 billion, given anticipated marketing efforts by the firms involved. This figure represents the industry's a) sales potential. b) market potential. c) target growth rate. d) sales forecast. e) sales objective.
b) market potential.
Any group of people who, as individuals or as organizations, have needs for products in a product class and who have the ability, willingness, and authority to buy such products is a(n) a) business market. b) market. c) undifferentiated market d) segmented market e) market variable
b) market.
If a company segments its market on the basis of their reasons for purchasing a particular product, the primary segmentation variable in use is a) lifestyle. b) motives. c) personality. d) benefit expectations. e) personality attributes.
b) motives.
All of the following statements about product positioning are true except a) product positioning decisions are not only for new products. b) product positioning is the customer's absolute perception of a product's attributes. c) effective product positioning helps serve a specific market segment by creating an appropriate concept in the minds of customers in that market segment. d) product positioning is concerned with creating and maintaining a certain concept of the firm's product in customers' minds. e) when marketers position a product, they try to position it so that it seems to possess the characteristics the target market desires.
b) product positioning is the customer's absolute perception of a product's attributes.
In the context of marketing, cannibalization means a) one company eating up another company's market share. b) sales of a new product hurts sales of the company's existing products. c) a product is past its prime and should be deleted from the product mix. d) a company illegally uses copyrights and patents from another company. e) sales of a new product may exceed sales of an older, more established product.
b) sales of a new product hurts sales of the company's existing products.
Which of these statements is not true about business markets? a) the purchase may be made to resell the item b) the purchase is always made by more than one individual c) the purchase may be made to use in general daily operations d) the purchase may be made to use in production of another product e) they can also be referred to as organizational markets
b) the purchase is always made by more than one individual
Dell segments its business markets into small business, corporate, government agencies, K-12 schools, and higher education institutions. The primary segmentation variable used in this example is a) geographic location. b) type of organization. c) secondary product use. d) customer size. e) market potential.
b) type of organization.
If Morton Salt saw all table salt customers as pretty much alike and thus offered only one marketing mix, it would be using the ___________ strategy. a) directed b) undifferentiated c) segmented d) differentiated e) product-use
b) undifferentiated
End use, price sensitivity, and brand loyalty are all _____ variables that can be used in market segmentation.
behavioristic
The division of a market according to what benefits consumers want from the product is called ______ segmentation.
benefit
There is some concern that marketing research has been used incorrectly by some firms. The major problem comes from __________ because the researcher wants to obtain favorable results. Select one: a. trying to be objective about views and opinions b. using an inappropriate sample c. employing large research firms, such as Gallup d. bias and distortion e. using in-house research departments
bias and distortion
The manager at a local recreational vehicle store, Off-Road Rage, believes the next two years will be difficult because of an economic recession. Using this forecast, he determines the effect on the industry's market potential and then estimates how his company's potential sales will look based on this outlook. This manager is using a _________ approach to estimating sales potential.
breakdown
Alex Wren of Owens Corning Fiberglass talks to Terry Jones, a home builder, to find out how much fiberglass insulation he intends to use in building homes during the next year. Albert then multiplies that number by the total number of builders in the territory. He is using a ___________ approach to measure sales potential.
buildup
Variables such as geographic location, type of organization, customer size, and type of product usage are used to segment ___________ markets.
business
According to the marketing concept, an organization should try to a) consider short-run objectives and cash flow needs before developing new products. b) define its business as "making a product." c) provide products that satisfy customers' needs and allow the organization to achieve its goals.
c
By offering credit and financing through its GMAC division, General Motors is trying to help consumers a) expand future buying power at the expense of current buying power. b) expand disposable income at the expense of discretionary income. c) expand current buying power at the expense of future buying power. d) expand both disposable income and wealth. e)decrease both disposable and discretionary income.
c
Collecting information from secondary sources such as business, government, trade, and general-interest publications plays an important role in a) environmental analysis. b) competitive forces. c) environmental scanning. d) procompetitive legislation. e) self-regulatory forces.
c
Companies that compete for the same limited financial resources of the same customers are known as _________ competitors. a) Brand b) Generic c) Total budget d) Product e) Oligopolistic
c
Companies that market products with similar features, benefits, and prices to the same customer group are known as _________ competitors. a) generic b) product c) brand d) total budget e) monopolistic
c
Consumer confidence and willingness to spend begins to increase during periods of _____, and marketers must remain very flexible to make the necessary adjustments. a) recession. b) prosperity. c) recovery. d) growth. e) depression.
c
Consumer protection legislation deals with all of the following legal concerns except a) consumer safety. b) sale of hazardous products. c) monopolistic practices. d) information disclosure. e) health claims on food packages.
c
Customer costs include anything the buyer must give up in order to obtain the benefits the product provides. The most obvious customer cost is a) risk b) time c) monetary price d) effort
c
Deciding to add gel insoles to its running shoes would be a change in the _____ element of the marketing mix for Nike. a)price b) good c) product d) promotion e) distribution
c
Developing the internal structure of a firm's marketing unit relates to which of the following marketing management activities? a) Marketing control b) Implementation c) Organizing d) Planning e) Managing
c
Environmental scanning means ___________ information about the marketing environment, whereas environmental analysis is concerned with ___________ this information. a) assessing; collecting b) assessing; interpreting c) collecting; assessing d) interpreting; observing e) gathering; observing
c
If in an industry, none of the many sellers could influence the price of supply of its products, this industry would be characterized as a) oligopoly b) monopoly c) pure competition d) oligopolistic competition e) monopolistic competition
c
In general, which of the following competitive structures is an organization least likely to operate? a) oligopoly b) monopoly c) pure competition d) oligopolistic competition e) monopolistic competition
c
In today's marketing environment, competitors can take on many forms. For example, Diet Coke can be seen as a competitor to Wrigley's Double Mint chewing gum. In this circumstance, these two products are described as ___________ competitors. a) Pure b) Generic c) Total budget d) Product e) Monopolistic
c
International Office Supplies Wholesaler charges different prices to its various customers without any legal justification. This company is in violation of the a) Sherman Act b) Clayton Act c) Robinson-Patman Act d) Lanham Act e) Celler-Kefauver Act
c
Making modifications to packaging or brand names involves the _____ component of the marketing mix. a)price b) good c) product d) promotion e) distribution
c
Marketing management is defined as a process of a) providing products that satisfy customers' needs through a coordinated set of activities. b) facilitating satisfying exchanges between an organization and its customers. c) planning, organizing, implementing, and controlling marketing activities.
c
Price discrimination is prohibited by the ___________ Act. a) Sherman Act b) Clayton Act c) Robinson-Patman Act d) Lanham Act e) Celler-Kefauver Act
c
The American automobile industry used to be dominated by "The Big Three," including General Motors, Ford, and Chrysler. However, as many more foreign competitors began influencing this market, the American companies had to modify and differentiate their products. The automobile industry moved from a(n) ______ structure to a(n) _______ structure. a) monopolistic; oligopolistic b) oligopolistic; pure competition c) oligopolistic; monopolistic competition d) monopolistic competition; pure competition e) monopolistic; monopolistic competition
c
The Pharmaceutical Research and Manufacturers of America sets guidelines for its member firms to follow regarding the use of unethical practices. Thus, it is engaging in a) legislation. b) lobbying. c) self-regulation. d) environmental scanning. e) trade restraint.
c
T F A person who has buying power also has the authority to buy.
f
The equation a buyer applies to assess a product's value is a) value = monetary price - customer benefits. b) value = customer costs - customer benefits. c) value = customer benefits - customer costs.
c
The marketing concept is a philosophy that states that an organization should try to satisfy customers' needs and also a) increase market share. b) increase sales. c) achieve the organization's goals. d) produce high-quality products. e) coordinate its activities to increase production.
c
When Cisco Systems attempts to anticipate the effect of new products and processes on its own innovations, other business organizations, and society in general, the firm is engaging in a) product differentiation. b) monopolistic competition. c) technology assessment. d) distinctive promotional methods. e) innovative marketing.
c
When marketers define their target market, they establish a set of a) technologies. b) monopolies. c) competitors. d) government regulations. e) sociocultural forces.
c
Which of the following are the most frequently sentenced organizational crimes? a) False advertising and price discrimination b) Price discrimination and fraud c) Fraud and antitrust violations d) Price fixing and antitrust violations e) Fraud and price fixing
c
Which of the following attributes of a Toyota Scion would be most appropriate to emphasize in television commercials during an economic recession? a) Stereo system b) Prestige c) Durability d) Leg room
c
Which of the following is essentially an uncontrollable factor in developing a marketing mix? a) Product adaptations b) Pricing strategies c) Government regulations d) Advertising campaigns e) Retail locations
c
Which of the following is not an example of the implementation of the marketing concept? a) jimmy deans b) mars candy c) burger king d) microsoft e) saab
c
Which of the following statements about marketing environment forces is not correct? A) They influence customers by affecting their lifestyles, standards of living, and preferences and needs for products. b) They may influence customers' reactions to a firm's marketing mix. c) They fluctuate slowly and thereby create threats to a firm's marketing mix. d) They can fluctuate quickly and dramatically.
c
______ refers to minimizing the resources an organization must spend to achieve a specific level of desired exchanges. a) Effectiveness b) Productivity c) Efficiency d) Objectivity e)Cost cutting
c
In order to be considered a market, people do not have to have
discretionary income to purchase the product
. Volkswagen markets its Routan to large families, its R32 racecar to men, and its Jetta to young singles. What targeting approach is Volkswagen using? a) Concentrated b) Strategic c) Differentiated d) Undifferentiated e) Multisegmented
c) Differentiated
Many marketers are concerned about the number of potential customers within a certain area of land because of the different requirements to serve dissimilar areas. What is this segmentation variable called? a) Micromarketing b) Population c) Market density d) MSA e) PMSA
c) Market density
Why would a company use the undifferentiated strategy? a) The needs of individual consumers are dissimilar, and distinctive marketing mixes are required to satisfy them. b) The undifferentiated strategy is the one strategy that provides maximum satisfaction to the whole market. c) The needs of individual consumers in the target market for a specific product are similar, so the organization can satisfy most customers with a single marketing mix. d) The undifferentiated strategy is expensive to implement but tends to produce the most sales. e) The undifferentiated strategy requires less time and fewer resources
c) The needs of individual consumers in the target market for a specific product are similar, so the organization can satisfy most customers with a single marketing mix.
While developing a company sales forecast at Safeway, Barb Herrington discovered a pattern in sales volume over the past five years. She likely used which sales forecasting technique? a) Surveys b) Executive judgment c) Time series analysis d) Market tests e) Regression analysis
c) Time series analysis
Mattel views the toy market as composed of four age groupings, each with different needs and desires. Each of these groups are known as a) an undifferentiated market. b) heterogeneous. c) a market segment. d) a marketing mix. e) a concentrated market.
c) a market segment.
The division of a market according to what benefits consumers want from the product is called ______ segmentation. a) behavioristic b) product usage c) benefit d) end-purpose e) advantage
c) benefit
The maximum percentage of market potential that an individual firm can expect to obtain for a specific product is the a) sales forecast. b) market potential. c) company sales potential. d) company sales objective. e) market share goal.
c) company sales potential.
All of the following are categories of common forecasting techniques for business except a) surveys. b) time series analysis. c) customer determined. d) executive judgment. e) market tests.
c) customer determined.
After a firm has identified an appropriate targeting strategy, the next step in the target market selection process is a) determining the demographic variables of the target market. b) developing market segment profiles. c) determining which segmentation variables to use. d) selecting specific target markets. e) evaluating relevant market segments.
c) determining which segmentation variables to use.
In order to be considered a market, people do not have to have a) a need or desire for a particular product. b) the ability to purchase the product. c) discretionary income to purchase the product. d) the willingness to use their buying power. e) the authority to buy the specific products.
c) discretionary income to purchase the product.
Justin Franklin's company is interested in locating areas where the average income is high, the average age range is 25-35 years, and the lifestyles of the people involve extreme adventures and dangerous leisure activities. His company would most likely find possible markets through a) U.S. Census Bureau information. b) geographic segmentation variables. c) geodemographic segmentation. d) climate information. e) psychographic segmentation.
c) geodemographic segmentation.
If PepsiCo and Coca-Cola use celebrities to challenge the taste of the other firm's cola, this is referred to as ___________ positioning. a) direct b) focused c) head-to-head d) avoidance e) parallel
c) head-to-head
The first step in the target market selection process is a) determining which segmentation variables to use. b) selecting specific target markets. c) identifying an appropriate targeting strategy. d) evaluating relevant market segments. e) developing market segment profiles.
c) identifying an appropriate targeting strategy.
Demographic variables such as income and occupation, as well as how people spend their time and the importance of things in their surroundings, are all factors considered in ______ segmentation. a) psychographic b) social class c) lifestyle d) personality e) family life cycle
c) lifestyle
Family life cycle is most typically based on a) income. b) geographic location. c) marital status and age of children. d) occupation. e) buying power.
c) marital status and age of children.
. Evaluating and making product positioning decisions is important for a) new products only. b) existing products only. c) new and existing products. d) product deletions only. e) new products and product deletions.
c) new and existing products.
The undifferentiated targeting strategy for finding a target market will likely not be successful if a) product positioning is needed. b) the firm defines the total market as its target market. c) people within the market have heterogeneous needs. d) people within the market have homogeneous needs. e) the firm is capable of developing a single marketing mix that satisfies all people's needs.
c) people within the market have heterogeneous needs.
Bethlehem Steel provides steel for a variety of uses to its various customers. Customers have different needs for the steel and thus Bethlehem has to prepare the raw steel differently depending on how customers will use it in their production processes. The primary business segmentation variable in this example is a) geographic location. b) customer size. c) product use. d) customer importance. e) organization classification.
c) product use.
The sales prediction technique based on the correlation between sales and other factors—such as population density, per capita income, or family size—is a) executive judgment. b) time series analysis. c) regression analysis. d) a market test. e) an expert survey.
c) regression analysis.
information
customer relationship management (CRM) begins its focus on customers with
When evaluating market segments, assessment of competitors is important because a) it is difficult to segment a market when it has multiple competitors. b) an absence of competitors usually creates difficulties in accurately measuring segment sales potential. c) sales estimates may cause a segment to appear to be lucrative, but there may be several competitors that together have a large share of that segment. d) a competitive analysis may lead to confusion as to who are the key competitors. e) competition is generally not a major problem as long as a marketer is aware of it.
c) sales estimates may cause a segment to appear to be lucrative, but there may be several competitors that together have a large share of that segment.
Guess? will be spending $22 million on marketing activities next year and expects to sell 30 million pairs of jeans. These 30 million pairs represent the company's a) sales potential. b) market potential. c) sales forecast. d) market sales. e) selected market.
c) sales forecast.
Characteristics of individuals, groups, or organizations that are used for dividing a total market into smaller homogeneous groups are called ___________ variables. a) marketing b) classification c) segmentation d) stratification e) dividing
c) segmentation
The buildup approach measure of sales potential a) starts with broad estimates of general economic activity. b) ends with an estimate of a single firm's sales of a specific product. c) starts with forecasts about demand for a specific product within a relatively small area. d) does not use sales estimates. e) is seldom employed by industrial firms.
c) starts with forecasts about demand for a specific product within a relatively small area.
Generally speaking, individuals who are unemployed would not be considered a target market for Mercedes or other luxury European import sedans because a) they would not desire such products. b) they would not be willing to purchase such products. c) they would not have the ability to purchase such products. d) such markets are narrowly defined geographically. e) they are not authorized to purchase such products.
c) they would not have the ability to purchase such products.
If a company extends a line of products by introducing a new product to the market, and the firm does not distinctly position this product (i.e., separately from the other products in the line), the result could be
cannibalization
Corporate executives often prefer marketing research findings to be put into a report Select one: a. expressing the views and beliefs of top management about the research problem. b. examining the ethical implications of implementing results from the research report. c. that exposes no deficiencies or limitations of the research process. d. that is clear, short, and simply expressed. e. full of statistical analysis with details on methods employed by the researchers.
clear, short, and simply expressed
The maximum percentage of market potential that an individual firm can expect to obtain for a specific product is the
company sales potential
A targeting strategy in which an organization targets a single market segment using one marketing mix is called a(n) _____ strategy.
concentrated
If Jaguar focused all its marketing efforts for the new Jaguar XKR on professionals earning more than $250,000, it would be using a(n) ___________ strategy.
concentrated
When markets are comprised of people with differing product needs, the marketing manager should use a(n) ___________ strategy.
concentrated or differentiated
marketing
creating, distributing, promoting, and pricing products to facilitate satisfying exchange relationships with customers and to develop and maintain favorable relationships with stakeholders in a dynamic environment
product variable of the marketing mix
creation of brand names, development of product packaging, warranty issues, and repair services
monetary price
customer costs include anything the buyer must give up in order to obtain the benefits the product provides. the most obvious customer cost is risk, time, monetary price, effort, availability
Several conditions must exist for market segmentation to be successful. These conditions include all of the following except
customer needs must be homogeneous
A person's buying power is a function of a) disposable income. b) past income, natural resources, and financial resources. c) wages, rents, and investments. d) income, wealth, and credit. e) discretionary income.
d
Consumerism is a a) diverse group of individuals and organizations opposed to foreign producers that sell products in the United States that are much cheaper than those produced by U.S. manufacturers. b) social movement that is trying to encourage consumer satisfaction. c) social movement that is reorganizing the Council of Better Business Bureaus. d) diverse group of individuals and organizations attempting to protect the rights of consumers. e) social movement that provides consumers with means for expressing satisfaction and expressing their gratitude to producers.
d
Organizations that provide smoke-free environments or low-fat products are responding to changes in a) technology. b) the legal environment. c) demographics. d) cultural values. e) political forces.
d
Customer relationship management (CRM) begins its focus on customers with a) communication. b) product. c) distribution. d) information. e) promotion.
d
During the Industrial Revolution demand for manufactured goods was a)weak. b) nonexistent. c) declining. d) strong.
d
From the 1920s to the 1950s, demand for manufactured goods decreased, leading to the ______ orientation. a)production b) marketing c) revolutionary d) sales e)reduction
d
Heidi decided to spend some of her saved money on tickets to a Cold Play concert coming to town, and now she is planning on buying a new outfit for the concert. What type of resources is Heidi making decisions about? a) Disposable income b) Wealth c) Buying power d) Discretionary income e) Savings income
d
In its advertisements for Bud Light beer, Anheuser-Busch has decided to include a statement saying "Know when to say when." This is an example of which one of the following types of regulatory forces affecting marketing efforts? a) Federal regulation b) State regulation c) City regulation d) Self-regulation e) Social regulation
d
In today's market environment, you might pay $15 for a CD by your favorite musical artist. Approximately how much of that price goes to activities related to marketing (promotion, distribution, profit margins)? a)$1.70 b) $3.40 c) $5.10 d) $7.50 e)$12.75
d
Jared Bledsoe hires a local landscape firm to plant trees and shrubs in his yard. The firm plants mostly dead plants but refuses to return Jared's money or replace the dead items. Jared's best course of action would be to contact the a) police. b) Federal Trade Commission. c) Sherman Commission. d) Better Business Bureau. e) federal district court.
d
Marketers often speak of the "controllable" variables in the practice of marketing. Which of the following is not considered one of the controlled variables? a) Product b) Price c) Distribution d) Competition e) Promotion
d
Marketing managers strive to develop a marketing mix that A) minimizes marketing costs. b) matches what competitors are offering. c) best matches the abilities of the firm. d) matches the needs of the target market. e) generates the highest level sales.
d
Of all the federal regulatory units, the ____________ most heavily influences marketing activities. a) Food and Drug Administration (FDA) b) Federal Communications Commission (FCC) c) Environmental Protection Agency (EPA) d) Federal Trade Commission (FTC) e) Federal Power Commission (FPC)
d
The 1990 Nutritional Labeling and Education Act directly prohibits a) exaggerated claims made by health and fitness products. b) putting the words "cholesterol-free" on any food package. c) putting nutritional information on most food products. d) exaggerated health claims on food packages. e) the use of any health claim on food packaging.
d
The Internet has been used as a search engine to find information about a marketer's product or service by about ____ percent of adults in the U.S. a) 65 b) 78 c) 82 d) 91 e) 99
d
The accumulation of past income, natural resources, and financial resources is known as a) income b) collected income c) credit d) wealth e) savings
d
The best approach for a company to take when monitoring its competitors is a) watching for increases and decreases in competitors' prices and match them. b) analyzing all information that is readily available about competitors. c) sending employees to competitors' offices and factories to observe their actions. d) developing a system for gathering ongoing information about competitors. e) reading important business publications such as The Wall Street Journal.
d
The concept of "exchange" is fundamental to the definition of marketing. What is the best description of exchange? a) Activities that are performed primarily by producers and manufacturers b) Development of products, distribution channels, promotional strategies, and pricing objectives to satisfy customer requirements c) Transfer of products in return for monetary considerations d) Provision or transfer of goods, services, or ideas in return for something of value
d
The four major competitive structures are a) monopolies, oligopolies, oligopolistic monopolies, and pure competition. b) pure competition, heavy competition, moderate competition, and light competition. c) brand, product, total budget, and generic. d) oligopolies, monopolies, monopolistic competition, and pure competition. e) monopolies, limited competition, oligopolistic competition, and pure competition.
d
The marketing environment is best described as being a) composed of controllable variables. b) composed of variables independent of one another. c) an indirect influence on the performance of marketing activities. d) dynamic and changing. e) slow, with infrequent fluctuations.
d
The three basic forms that a product can take are a) markets, products, and images. b) goods, ideas, and intangibles. c) brands, services, and tangibles. d)services, ideas, and goods. e)ideas, services, and things.
d
Three primary methods of collecting information for environmental scanning are a) marketing research, company records, and advance orders. b) secondary sources, company records, and observation. c) executive knowledge, media, and marketing research. d) observation, secondary sources, and marketing research. e) company database, executive knowledge, and research.
d
What is the most important factor in distinguishing disposable income from income? a) Taxes b) Housing c) Employment levels d) Consumer spending e) Saving
d
When DataComp Corp., a producer of computer software, delayed the introduction of its new spreadsheet program to modify the package, its scheduled magazine advertisements announcing the new product needed to be revised. In this case, a change in the ___________ variable caused changes in the ___________ variable of the marketing mix. a) distribution; promotion b) distribution; product c) product; price d) product; promotion e) promotion; price
d
Which of the following agencies regulates marketing activities the most? a) Food and Drug Administration b) Federal Communications Commission c) Environmental Protection Agency d) Federal Trade Commission e) Federal Power Commission
d
Which of the following is most likely to be an idea marketer? a) Car salesperson b) Airline pilot c) Attorney d) Abuse counselor
d
Which of the following is not a reason that marketers try to maintain good relations with elected political officials? a) Political officials can influence how much a government agency purchases and from whom. b) Political officials can play key roles in helping organizations secure foreign markets. c) Political officials well disposed toward particular firms or industries are less likely to create or enforce laws and regulations unfavorable to these firms. d) Political officials can accept direct corporate campaign contributions. e) Political officials who believe that companies in a particular industry are making honest efforts to control pollution are unlikely to create and enforce highly restrictive pollution control laws over that industry.
d
Which of the following provides protection for and regulates brand names, brand marks, trade names, and trademarks? a) Sherman Act b) Clayton Act c) Robinson-Patman Act d) Lanham Act e) Celler-Kefauver Act
d
Which of the following scenarios involves the distribution element of the marketing mix? a) Deciding whether or not a certain product should continue to be sold b) Determining whether an advertising message would be more effective on television or in magazines c) Choosing between a company jet or the airlines for executive travel d) Deciding whether or not to have retail outlets in addition to a website e) Developing a new warranty policy for an existing product
d
T F A segmentation variable is used to group smaller markets into one larger market.
f
Which of the following statements about self-regulatory programs is false? a) Self-regulatory programs are usually less expensive than governmental regulatory programs. b) Self-regulatory programs' guidelines generally are more realistic and operational. c) Nongovernmental self-regulatory programs have neither the tools nor the authority to enforce guidelines. d) Self-regulatory guidelines generally are stricter than governmental regulatory programs. e) When a trade association sets up industry guidelines, some firms that are in the industry but not in the trade association do not follow the guidelines.
d
Which of the following would not be a customer cost considered in determination of product value? a) Product's purchase price b) Time spent purchasing the product c) Effort spent purchasing the product d) Benefits received in the exchange for the products
d
Why are marketers interested in consumers' levels of disposable income? a) It accurately predicts future buying power. b) It increases current buying power. c) It is what is left after taxes and savings to buy luxuries with. d) It is a ready source of buying power. e) It is essential for forecasting future business trends.
d
___________ competitors are those that compete in the same product class, but their products have different features, benefits, and prices. a) Brand b) Generic c) Total budget d) Product e) price
d
Which of the following products is least likely to be segmented according to stages in the family life cycle? a) Single-family homes b) Ford automobiles c) European vacations d) Diet Coke e) General Electric appliances
d) Diet Coke
Zerex markets its radiator liquid as a coolant in the South and an antifreeze in the North. Which of the following segmentation variables is Zerex using? a) Demographic b) Psychographic c) Life cycle d) Geographic e) Product use
d) Geographic
Which of the following products is most likely to have its market segment based on age? a) Bass shoes b) Lipton Iced Tea c) Bic pens d) Legos e) Carpet
d) Legos
Which of the following sales forecasting techniques would generally be most suitable for estimating sales of a new product? a) Executive judgment b) Customer surveys c) Time series analysis d) Market tests e) Regression methods
d) Market tests
A targeting strategy in which an organization targets a single market segment using one marketing mix is called a(n) _____ strategy. a) selective b) focused c) differentiated d) concentrated e) undifferentiated
d) concentrated
When research indicated that Bluetooth's products were not reaching the correct target market, marketers of Bluetooth decided to change from demographic segmentation to psychographic segmentation. Which group of new segmentation variables will Bluetooth now be using? a) Geographic location of customers b) Age, sex, and socioeconomic characteristics c) Social class variables d) Personality characteristics, motives, and lifestyles e) Family life cycle, social class, and religion
d) Personality characteristics, motives, and lifestyles
Which of the following is not one of the major categories of consumer market segmentation variables? a) Demographic characteristics b) Geographic variables c) Psychographic dimensions d) Situational variables e) Behavioristic characteristics
d) Situational variables
Which of the following statements about the undifferentiated targeting strategy is false? a) The undifferentiated targeting strategy should be used when the needs of individual customers are similar. b) The undifferentiated targeting strategy uses one promotional program aimed at everyone in the target market. c) The undifferentiated targeting strategy is good for use with staple items, such as sugar and salt. d) The undifferentiated targeting strategy uses multiple distribution systems to best reach individuals in the target market. e) The opposite of the undifferentiated targeting strategy is the differentiated targeting strategy.
d) The undifferentiated targeting strategy uses multiple distribution systems to best reach individuals in the target market.
Pillsbury defines all purchasers of flour as its target market. What targeting strategy would be most appropriate in this case? a) Concentrated b) Differentiated c) Wide appeal d) Undifferentiated e) Clustered
d) Undifferentiated
Which of the following is an example of a behavioristic segmentation variable? a) Family size b) Climate c) Age d) Usage rate e) Personality characteristics
d) Usage rate
When marketing research shows that a group of people does not desire a particular product, the people in that group a) are a market. b) do not have the ability to purchase the product. c) do not have the authority to purchase the product. d) are not a market for the product. e) are a market but will not purchase the product.
d) are not a market for the product.
Alli segments its diet pills based on those who have morning cravings, those who tend to overeat near the end of the day, those who need all day long appetite suppression, and those who want appetite control and more energy. This is an example of market segmentation based on variables of a) demographics. b) lifestyles. c) psychographics. d) behavior. e) personality characteristics.
d) behavior.
If a company extends a line of products by introducing a new product to the market, and the firm does not distinctly position this product (i.e., separately from the other products in the line), the result could be a) poor product positioning. b) product deletion. c) product repositioning. d) cannibalization. e) new-product development.
d) cannibalization.
If Baskin-Robbins calculates that it could sell up to 25 percent of all ice cream cones sold in the United States, this percentage would represent the ice cream marketer's a) target growth rate. b) sales forecast. c) sales objective. d) company sales potential. e) market potential.
d) company sales potential.
marketing mix
distribution, price, promotion, and product are all elements of this
If Jaguar focused all its marketing efforts for the new Jaguar XKR on professionals earning more than $250,000, it would be using a(n) ___________ strategy. a) homogeneous b) undifferentiated c) multisegmented d) concentrated e) stratified
d) concentrated
A marketer that targets customers based on marital status and the presence and age of children is using a) behavioristic segmentation. b) lifestyle variables. c) psychographic variables. d) family life cycle. e) phase of life segmentation.
d) family life cycle.
Cosmopolitan magazine, Secret deodorant, and Eve cigarettes are all products whose marketers have used segmentation based on a) age. b) education. c) product use. d) gender. e) income.
d) gender.
Which of the following products is most likely to be marketed, using an undifferentiated approach? a) bicycle b) computer c) notebook d) seasoning salt e) oscillating fan
d) seasoning salt
Frito-Lay Snack Foods is currently conducting market segmentation studies. For several segments, they have completed competitive assessments and cost estimates. The next major step they must take is to a) determine which segmentation variables to use. b) develop market segment profiles. c) identify the appropriate targeting strategy. d) select specific target markets. e) develop sales forecasts.
d) select specific target markets.
The final step in the target market selection process is a) implementing the appropriate marketing mix for the target market. b) evaluating relative market segments. c) eliminating market segments that are cost prohibitive. d) selecting specific target markets. e) revising the final segmentation variables based on target selection.
d) selecting specific target markets.
Product positioning refers to a) the area in retail stores in which the manufacturer strives to position its products. b) product price but not to product image. c) product image but not to product price. d) the decisions and activities intended to create and maintain a certain concept of the firm's product in customers' minds. e) the length of time a product has survived in the market.
d) the decisions and activities intended to create and maintain a certain concept of the firm's product in customers' minds.
Estimating the cost of entering a market and focusing on a specific target segment is important because a) cost estimates are crucial to estimating sales potential accurately. b) higher costs will keep other potential competitors from entering that particular segment. c) customers are more likely to be attracted to marketers that invest heavily in the target segment. d) the organization's marketers need to know if they can reach the segment at costs equal to or below competitors' costs. e) higher cost generally ensures long-term success.
d) the organization's marketers need to know if they can reach the segment at costs equal to or below competitors' costs.
Which of the following is not a characteristic of a consumer market? a) it consists of purchasers who intend to consume or benefit from the purchased products b) they do not buy products for the main purpose of making a profit c) they are sometimes referred to as B2C markets d) their purchasing decisions are always made by only one individual e) each of us belongs to numerous markets of this type
d) their purchasing decisions are always made by only one individual
Consumers that do not own dogs are not likely to be in the market for dog food because a) they lack the authority to purchase the dog food. b) they do not possess the buying power for purchasing dog food. c) their ability to purchase the dog food is questionable. d) they do not have the need or desire for dog food. e) they are willing to use their buying power.
d) they do not have the need or desire for dog food.
The forecasting techniques that assume past sales patterns will continue into the future are all variations of a) regression analysis. b) random factor analysis. c) seasonal analysis. d) time series analysis. e) past sales forecasting surveys.
d) time series analysis.
When a firm designs a single marketing mix and directs it at an entire market for a particular product, the company is using a(n) _________ strategy. a) concentrated targeting b) differentiated c) heterogeneous market d) undifferentiated e) single mix
d) undifferentiated
When using personality characteristics as a market segmentation variable, marketers generally a) conduct personality assessments of their potential target market to determine which personality characteristics they possess. b) use research developed by clinical psychologists to determine which personality characteristics consumers using their products are most likely to have. c) use generic characteristics that all members of the population have. d) use a positively viewed characteristic they assume much of their target market has or would like to have. e) conduct a series of focus groups to determine both the positive and negative characteristics members of their target market are perceived to have.
d) use a positively viewed characteristic they assume much of their target market has or would like to have.
Through marketing newsprint to newspaper publishers and glass manufacturers that use it in packing, International Paper segments its market based on a) customer size. b) psychographics. c) demographics. d) use of product. e) geographic location.
d) use of product.
Marketing research is best defined as Select one: a. the collecting of data from secondary sources and internal documents. b. an intuitive process for making decisions based on personal knowledge and experience to take advantage of market opportunities. c. a framework for the day-to-day management and structuring of information gathered by marketers. d. the systematic design, collection, interpretation, and reporting of information to help marketers solve specific marketing problems or take advantage of market opportunities. e. a continuous gathering of data for an organization, the systematic design, collection, to make marketing decisions take advantage of market opportunities.
d. the systematic design, collection, interpretation, and reporting of information to help marketers solve specific marketing problems or take advantage of market opportunities.
Volkswagen markets its Routan to large families, its R32 race car to men, and its Jetta to young singles. What targeting approach is Volkswagen using?
differentiated
Primary data are best described as the Select one: a. data that are necessary for a correct decision. b. data that are compiled for some other purpose other than the study in question. c. data that are collected inside and outside the organization for some purpose other than the current investigation. d. data that are observed, recorded, or collected directly from subjects. e. first batch of data collected for a specific study.
data that are observed, recorded, or collected directly from subjects.
product
deciding to add gel insoles to its running shoes would be a change in which of the following elements of the marking mix for nike? price, good, product, promotion, distribution
Occupation, family size, and family life cycle are all ______ variables for segmenting consumer markets.
demographic
Segmentation variables are usually grouped into four categories:
demographic, geographic, psychographic, and behavioristic.
After a firm has identified an appropriate targeting strategy, the next step in the target market selection process is
determining segmentation variables
A survey question that requires a yes or no answer is called a Select one: a. 50-50 question. b. dichotomous question. c. bimodal question. d. qualifies. e. multiple-choice question.
dichotomous question
Procter & Gamble markets Cheer detergent to young singles and couples and Tide detergent to families. Procter & Gamble is using a(n) ___________ targeting strategy for laundry detergents.
differentiated
A systematic process of assessing opportunities and resources, determining marketing objectives, and developing a marketing strategy and plans for implementation and control describes which of the following marketing management activities? a)Strategic planning b) Marketing control c) Implementation d) Organizing e) Planning
e
Although marketing theory supports the contrary, it is more probable that marketing budgets will be cut during periods of economic a) prosperity b) uncertainty c) recovery d) expansion e) recession
e
In managing customer relationships, the three primary ways profits can be obtained are by a) acquiring new customers, enhancing the profitability of new customers, and shortening the duration of relationships with existing customers. b) enhancing the profitability of existing customers, eliminating customers who provide smaller profits, and finding new customers. c) extending the length of relationships with customers, cutting organizational costs, and enhancing the profitability of new customers. d) eliminating long-term customers who have decreased purchases, finding new customers, and increasing sales to existing customers. e) enhancing the profitability of existing customers, extending the duration of relationships with customers, and obtaining new customers.
e
Issues of inventory levels and storage costs are both concerns relating to the _____ variable of the marketing mix. a)price b) good c) product d) promotion e) distribution
e
J. Pitner Clothing is a medium-size specialty men's and women's clothing store in a market with many other specialty stores, department stores, and discounters. It has established a reputation for offering high-quality, fashionable merchandise with quality service. J. Pitner's competitive environment would best be characterized as a) oligopoly b) monopoly c) pure competition d) oligopolistic competition e) monopolistic competition
e
Mark goes to a vending machine, deposits $1.00, and receives a Sprite. Which one of the following aspects of the definition of marketing is illustrated here? a) Production conception b) Satisfaction of organizational goals c) Distribution of ideas d) Product planning e) Exchange
e
Marketers who attempt to influence and change the various environmental forces have a(n) _____ response to these forces. a) reactive b) inactive c) variable d) positive e) proactive
e
Marketing activities a) are aimed at persuading customers through advertising. b) involve mainly distribution and promotion decisions. c) and selling activities are basically the same. d) are important only when a firm is developing new products or entering new markets. e) help sell an organization's products and generate financial resources for the firm.
e
Marketing facilitates exchange relationships between buyers and sellers. What is marketing's intended outcome for this relationship? a) Profits for the seller b) A good bargain on the product for the buyer c) Reducing the seller's inventory d) One party having to compromise in the exchange e) Satisfaction for both the buyer and seller
e
One way for corporations to attempt to influence the political environment is through a) special benefits to employees. b) direct contributions to candidates. c) contributions to elected officials. d) contributions to political action committees. e) organizing political action committees.
e
Texas rice farmers wish to get their product into the Japanese market but are hindered by a complex maze of regulations imposed by the Japanese government. The farmers are most likely to attempt to influence which aspect of the marketing environment? a) Sociocultural b) Technological c) Competitive d) Economic e) Political
e
The Church of the Latter Day Saints has used advertising for many years to market its a)goods. b)services. c)experiences. d)production. e)ideas.
e
The application of mechanical and human efforts to either people or objects to provide intangible benefits to customers is known as a(n) a)issue. b) experience. c)idea. d) good. e) service.
e
The element of the marketing mix used to increase awareness of a product or company is a)communication. b)product. c) price. d) distribution. e) promotion.
e
The marketing concept focuses on a) achieving the goals of top executives. b) creating maximum visibility for the firm. c) maximizing sales. d) maximizing market share. e) satisfying customers' needs in a way that helps to achieve organizational objectives.
e
The rapid adoption of the use of the Internet has resulted in rapid changes such as the increase of distance learning, changing social networks, and concerns such as copyright and privacy issues that the government is focusing on. These effects of technology are collectively known as a) reach. b) the self-sustaining nature. c) growth. d) technological advancement. e) dynamics.
e
The textbook suggests that the best approach a firm can take in responding to marketing environmental forces is a) reactive. b) proactive. c) inactive. d) active. e) variable.
e
Total buying power declines during periods of economic a) prosperity b) uncertainty c) recovery d) expansion e) recession
e
When DuPont develops new carpet fibers that are highly stain-resistant and durable, it must educate consumers about the product's benefits. This calls for activity in which of the following marketing mix variables? a)communication. b)product. c) price. d) distribution. e) promotion.
e
When a firm has many potential competitors and tries to develop a marketing strategy to differentiate its products from the competitors' products, a(n) _______ structure exists in the competitive environment. a) oligopoly b) monopoly c) pure competition d) oligopolistic competition e) monopolistic competition
e
When using credit to make purchases, consumers are a) decreasing current buying power and increasing future buying power. b) increasing their present discretionary income to extend purchasing power. c) putting themselves at significant risk of financial disaster. d) forgoing the accumulation of wealth to increase current income. e) increasing current buying power at the expense of future buying power.
e
Which of the following best characterizes the forces of the marketing environment? a)The forces are relatively stable over time and are interrelated with one another. b)There are few overlapping aspects of these forces; therefore, a change in one is unlikely to result in a change in another. c)The various forces ensure that the marketing environment will remain fairly certain in the future. d)These forces change dramatically over time, but a change in one force is unlikely to impact another force. e)The forces change dramatically and quickly, and a change in one force is likely to affect the other forces.
e
________ is a customer's subjective assessment of benefits relative to costs in determining the worth of a product. a) Marketing orientation b) Monetary price c) Product assessment d) Price assessment e) Value
e
Which of the following forecasting methods is least dependent on historical sales data? a) Regression analysis b) Trend analysis c) Time series analysis d) Cycle analysis e) A market test
e) A market test
Katy Ramirez is a marketer for a golf equipment manufacturer. When forecasting company sales, she finds a direct association between past sales and per capita income. Which sales forecasting technique is Katy using? a) Surveys b) Executive judgment c) Time series analysis d) Market tests e) Regression analysis
e) Regression analysis
When a business has a relatively small number of customers, a preferred method of forecasting is a) regression analysis. b) trend analysis. c) the Delphi technique. d) a market test. e) a customer forecasting survey.
e) a customer forecasting survey.
Yvonne and Garret are looking at information about how their organization's products could fit potential customers' needs. This information deals with demographic characteristics, product benefits sought, lifestyles, geographic factors, brand preferences, and usage rates. They are most likely looking at a) the sales force survey results. b) the results of sales forecasting. c) a market trend analysis. d) a market segmentation discrimination analysis. e) a market segment profile.
e) a market segment profile.
A business advantage of the concentrated targeting strategy for any company is that it a) requires less market research and information. b) requires less intensive analysis of customers' characteristics and needs. c) allows a firm to utilize all of its production capacity. d) maintains the firm's flexibility in moving into other market segments. e) allows a firm to develop a special marketing mix for a single market segment.
e) allows a firm to develop a special marketing mix for a single market segment.
End use, price sensitivity, and brand loyalty are all _____ variables that can be used in market segmentation. a) psychographic b) usage c) demographic d) geodemographic e) behavioristic
e) behavioristic
Alex Wren of Owens Corning Fiberglass talks to Terry Jones, a homebuilder, to find out how much fiberglass insulation he intends to use in building homes during the next year. Albert then multiplies that number by the total number of builders in the territory. He is using a ___________ approach to measure sales potential. a) multivariable b) use of product c) breakdown d) regression e) buildup
e) buildup
Using the breakdown approach to sales potential, estimates are made a) by referring to specific geographic factors. b) by establishing levels of marketing effort that will be required to achieve specific levels of sales. c) without reference to industry marketing efforts. d) without reference to general economic conditions. e) by starting with general economic conditions.
e) by starting with general economic conditions.
Tiffany's markets its exclusive jewelry and gifts to high-income individuals interested in high-quality products and a well-known brand name. It uses the same marketing mix to reach this market. Tiffany's uses a(n) ______ strategy. a) undifferentiated b) differentiated targeting c) exclusive targeting d) heterogeneous e) concentrated targeting
e) concentrated targeting
Segmentation variables are usually grouped into four categories: a) demographic, geographic, religion, and income. b) geopolitical, income, behavioristic, and psychographic. c) attitudes, lifestyles, behaviors, and gender. d) geographic, demographic, psychographic, and attitudes. e) demographic, geographic, psychographic, and behavioristic.
e) demographic, geographic, psychographic, and behavioristic.
After an organization has determined which of the many segmentation variables it will use, the next step in the target market selection process is a) evaluating each of the relevant market segments. b) selecting the specific target markets. c) reviewing the appropriate marketing strategy. d) analyzing the interaction between segmentation variables. e) developing market segment profiles.
e) developing market segment profiles.
Adolescents are not considered part of the market for casinos because they a) have very little buying power. b) do not have the desire to gamble. c) are not willing to spend their money on gambling. d) cannot afford to gamble their savings. e) do not have the authority to gamble.
e) do not have the authority to gamble.
If Campbell were to offer single serving "Soup for One" packages to small household markets, it would be using segmentation based on a) income. b) ethnicity. c) taste. d) geographic considerations. e) family life cycle.
e) family life cycle.
Alpine Ski Shops U.S, is looking for new markets. Since their market is based mainly on access to snow, they would most likely use which base for segmentation? a) behavioristic b) demographic c) psychographic d) environmental e) geographic
e) geographic
Most markets for products are made up of individuals or groups with diverse needs for products and are called ________ markets. a) undifferentiated b) concentrated c) homogenous d) differentiated e) heterogeneous
e) heterogeneous
The psychographic variable that includes numerous characteristics related to people's activities, interests, and opinion is a) motive. b) social class. c) personality. d) stage in family life cycle. e) lifestyle.
e) lifestyle.
The total volume of a product, for all firms in an industry, that would be purchased by specific customer groups within a specified time period at a given level of industry-wide marketing activity, is the a) competitor sales potential. b) sales objective. c) forecasted sales. d) company sales potential. e) market potential.
e) market potential.
Retail-site location analyses, unique product offerings, and special advertising campaigns are all examples of the use of a) market density. b) demographic segmentation. c) behavioristic segmentation. d) environmental segmentation. e) micromarketing.
e) micromarketing.
The three most commonly used psychographic segmentation variables are a) personality, perception, and learning. b) personality, perception, and behavior. c) motives, attitudes, and lifestyles. d) attitudes, personality, and perception. e) personality, motives, and lifestyles.
e) personality, motives, and lifestyles.
Positioning a product to avoid competition may be best when the a) competing products are priced higher than or at least equal to the new product. b) company has an established reputation with the consumers of that particular market. c) market is characterized by consumers who are not sensitive to price or value. d) market is characterized by consumers who are price conscious and brand specific. e) product's performance characteristics are not significantly different from those of competing brands.
e) product's performance characteristics are not significantly different from those of competing brands.
The amount of product a company expects to sell during a specific period at a specified level of marketing activity is called the a) company sales potential. b) revenue estimate. c) company sales prediction. d) market potential. e) sales forecast.
e) sales forecast.
Age, rate of product use, location, and gender are all examples of common a) demographic variables. b) geographic characteristics. c) targeting strategies. d) psychographic variables. e) segmentation variables.
e) segmentation variables.
When a marketer is engaged in the target market selection process and has assessed relevant market segments by considering such factors as sales estimates, competition, and estimated costs, the marketer is ready for the next step, which is to a) identify the appropriate targeting strategy. b) determine which segmentation variables to use. c) develop market segment profiles. d) evaluate relevant market segments. e) select specific target markets.
e) select specific target markets.
Company sales forecasts are least likely to be based on a) executive judgment. b) customer surveys or sales force surveys. c) time series analysis. d) market tests. e) single-variable segmentation.
e) single-variable segmentation.
Relying on executive judgment for forecasting may be adequate when a) levels of marketing efforts put forth by competitors vary considerably. b) recent events give the executive specific impressions of product demand. c) product demand is erratic. d) the executive conducts surveys. e) the executive has considerable experience and product demand is relatively stable.
e) the executive has considerable experience and product demand is relatively stable.
The most important reason that a firm might use a sales force forecasting survey to determine its sales forecast is a) salespeople are generally optimistic about the future and will provide excellent forecast targets. b) most salespeople tend to have a pessimistic outlook, which is more likely to result in an achievable sales forecast. c) this tends to be the fastest way to determine a good sales forecast for the upcoming period. d) the averaging and other statistical techniques applied to these forecasts result in extremely accurate numbers. e) the sales staff is closer to the actual customers on a regular basis than anyone else in the organization.
e) the sales staff is closer to the actual customers on a regular basis than anyone else in the organization.
The forecasting method that utilizes a firm's historical sales data to find patterns in the firm's sales volume over time is a) the regression method. b) customer forecasting. c) a market test. d) sales force forecasting. e) time series analysis.
e) time series analysis.
To find a target market, a firm can use the a) total market strategy and the undifferentiated strategy. b) product differentiation strategy and the customer differentiation strategy. c) demographic strategy and the psychographic strategy. d) socioeconomic strategy and the psychological strategy. e) undifferentiated strategy, the concentrated strategy, and the differentiated strategy.
e) undifferentiated strategy, the concentrated strategy, and the differentiated strategy.
marketing knowledge and skills
enhance consumer awareness and help provide people with satisfying goods and services
relationship marketing
establishing long-term, mutually beneficial arrangements in which both the buyer and seller focus on value enhancement through the creation of more satisfying exchanges
T F A differentiated targeting strategy is when the organization targets two or more markets by developing a single marketing mix.
f
T F A firm operating in a one-state market would not regionalize its market.
f
T F A firm ordinarily uses the same sales forecasting method for determining short-range and long-range sales forecasts.
f
T F A market segment profile deals primarily with demographic characteristics.
f
Population density and city size are _______ variables used for market segmentation.
geographic
Adolescents are not considered part of the market for casinos because they
have little buying power
If PepsiCo and Coca-Cola use celebrities to challenge the taste of the other firm's cola, this is referred to as ___________ positioning.
head to head
marketing activities
help sell an organization's products and general financial resources for the firm
Most markets for products are made up of individuals or groups with diverse needs for products and are called ________ markets.
heterogeneous
Toyota has learned that some people want sports cars, while others want vans, trucks, sedans, and economy cars. In this instance, Toyota has found its markets to be
heterogeneous
question mark
high growth market- low market share
Compared to a mail survey, telephone surveys have Select one: a. a slower response time, but less cost b. faster response time, but less cost c. fewer expenses overall d. lower response rates but higher validity e. higher response rates, but higher costs
higher response rates, but higher costs
The first step in the target market selection process is
identifying an appropriate target strategy
$1,000
if a family spends $2,000 a month on goods and services, how much of that $2,000 goes for marketing activities?
The real value of marketing research to the organization can best be measured by Select one: a. its immediate impact on profits. b. the amount of time spent. c. how much it costs. d. improvements in the ability to make decisions. e. the increase in sales volume or market share.
improvements in the ability to make decisions
green marketing
initiatives intended to improve an organization's positive impact on society and the natural environment
distribution
issues of inventory levels and storage costs are both concerns relating to which of the following variables of the marketing mix? distribution, product, exchange, price, promotion
Which of the following is not a requirement or characteristic of a market?
large number of people
Individuals, groups, or organizations with one or more similar characteristics that cause them to have similar product needs are classified as
market segments
The sales forecasting method that consists of making a product available to buyers in one or more locations and measuring purchase response is
market test
Which of the following sales forecasting techniques would generally be most suitable for estimating sales of a new product?
market tests
competition
marketers often speak of the "controllable" variables in the practice of marketing. which of the following is not considered one of the controlled variables? product, price, distribution, competition, promotion
satisfaction for both the buyer and seller
marketing facilitates exchange relationships between buyers and sellers. what is marketing's intended outcome for this relationship?
matches the needs of the target market
marketing managers strive to develop a marking mix that
A study that is valid and reliable Select one: a. is difficult to produce without expert researchers. b. is expensive to implement and complete. c. measures subtle differences in the population being studied and produces almost identical results in repeated trials. d. is called a marketing research study. e. measures what it is supposed to measure and produces almost identical results in repeated trials.
measures what is supposed to measure and produces almost identical results in repeated trials
Retail-site location analyses, unique product offerings, and special advertising campaigns are all examples of the use of
micromarketing
a market segmentation approach in which firms focus precise marketing efforts on very small geographic markets
micromarketing
For demographic purposes, a mail survey sent out by the American Cancer Society asks each respondent to identify their race by choosing among a list of possibilities. This common type of question is called a(n) ____________ question. Select one: a. open-ended b. categorized c. multiple choice d. dichotomous e. optional response
multiple choice
Cameras, counting machines, and scanners are used most often in Select one: a. surveys. b. experimentation. c. observation. d. field settings. e. secondary data gathering.
observation
An item on the University Book Store's survey asks respondents to tell the store, in their own words, what they like least about textbook shopping. This item would be an example of a(n) __________ question. Select one: a. dichotomous b. multiple-choice c. force-sum-choice d. open-ended e. limited-choice
open-ended
how they satisfy customers
organizations should define themselves not according to the products they produce but according to
The three most commonly used psychographic segmentation variables are
personality, motives, lifestyles
the forces of the marketing environment
political, legal and regulatory, sociocultural, technological, economic, and competitive the forces change dramatically and quickly, and a change in one force is likely to affect the other forces
All the elements, individuals, or units of interest to researchers for a specific study are called the Select one: a. sample. b. population. c. focus group. d. target market. e. data set.
population
Soft Shave is a shaving cream aimed primarily at women. The activities and decisions involved in developing and maintaining Soft Shave's product concept in buyers' minds are called
product positioning
all is true except
product positioning is the customer's absolute perception of a product's attributes
Positioning a product to avoid competition may be best when the
product's performance characteristics are not significantly different from those of competing brands.
exchange
provision or transfer of goods, services, or ideas in return for something of value
Which sampling design gives every member of the population an equal chance of appearing in the sample? Select one: a. Quota b. Random c. Nonprobability d. Stratified e. Poll
random
efficiency
refers to minimizing the resources an organization must spend to achieve a specific level of desired exchanges
A forecasting method that predicts sales based on relationships between past sales and other variables is called
regression analysis
Katy Ramirez is a marketer for a golf equipment manufacturer. When forecasting company sales, she finds a direct association between past sales and per capita income. Which sales forecasting technique is Katy using?
regression analysis
Guess? will be spending $22 million on marketing activities next year and expects to sell 30 million pairs of jeans. These 30 million pairs represent the company's
sales forecast
In the context of marketing, cannibalization means
sales of a new product hurts sales of the company's existing products
Characteristics of individuals, groups, or organizations that are used for dividing a total market into smaller homogeneous groups are called ___________ variables.
segmentation
Age, rate of product use, location, and gender are all examples of common
segmentation variables
The objective of sampling in marketing research is to Select one: a. provide data that can be used to test the hypotheses being investigated. b. control independent variables that might influence research results. c. ensure that measures in the study are reliable. d. select representative units from a total population. e. obtain responses from as many people as possible.
select representative units from a total population
The final step in the target market selection process is
selecting specific target markets
both customers and businesses
should receive benefits from exchange relationships according to the definition of marketing
The forces of the marketing environment include
social cultural, competitive, economic, political, legal irregulation, technological
T F A company sales forecast is the amount of a product that a firm actually expects to sell during a specific time period.
t
T F A company sometimes defines a total market as its target market.
t
T F A firm using a concentrated targeting strategy aims its marketing activities at one segment of a market.
t
T F A market is a group of people who, as individuals, have needs for products in a product class and have the ability, willingness, and authority to purchase such products.
t
T F A market segment profile describes the similarities among potential customers within a segment and explains the differences among people across market segments.
t
T F A market segment profile may cover such aspects as demographic characteristics, geographic factors, product benefits sought, lifestyles, brand preferences, and usage rates.
t
T F A marketer is likely to use competition avoidance positioning when it is introducing a new brand into a market where it has existing brands.
t
T F A marketer may segment a market in terms of the benefits that customers expect to receive from a particular product.
t
A disadvantage of the concentrated targeting strategy is that a) the firm's financial condition is tied to a single and specialized marketing mix. b) large sales volumes cannot be generated. c) production costs may be higher than with other strategies. d) marketing personnel may become dissatisfied with the limited opportunities provided by this approach. e) marketing costs are often higher than for other strategies.
the firm's financial condition is tied to a single and specialized marketing mix.
customers
the focal point of all marketing activities
all organizational activities
the marketing concept affects (choose one) just the marketing department all organizational activities only marketing and finance only production and marketing few decisions in an organization
dynamic and changing
the marketing environment is best described as being
customer
the marketing mix is built around what?
achieve the organization's goals
the marking concept is a philosophy that states that an organization should try to satisfy customers' needs and also
implementation
the part of marketing plans that hinges on coordination of marketing activities, motivation of marketing personnel, and effective communication within the marketing unit
the price charged for the product
the primary value that a marketer expects to receive from a customer in an exchange relationship
marketing control
the process of establishing performance standards, competing actual performance with established standards, and reducing the difference between desired and actual performance
Which of these statements is not true about business markets?
the purchase is always made by more than one individual
services, ideas, and goods
the three basic forms that a product can take
Which of the following is not a characteristic of a consumer market?
their purchasing decisions are always made by only one individual
Which of the following is the biggest drawback to using psychographic variables?
they are hard to measur
Consumers that do not own dogs are not likely to be in the market for dog food because
they do not have a need for it
abuse counselor
which of the following is most likely to be an idea marketer? car salesperson, airline pilot, attorney, abuse counselor, orthodontist
