marketing exam 2

Companies that decide to pursue global marketing efforts have a choice of several ways to initiate building international business organizations. These alternatives give ample choices for the firm to match financial resources, envisioned outcomes, and comfortable risks. Which of the following descriptions of global marketing alternatives is(are) accurate?

1) An exporter markets domestically produced merchandise to customers in other countries; 2) In a joint venture, the company shares risks, costs, and management with partners

Choose any of the following types of B2B segmentation that is(are) incorrectly described.

1) In buyer decision segmentation, a company may deal with one or multiple individuals involved in the purchase decision; 2) End-use application segmentation deals with the way in which the product or service is engineered and manufactured

Darren King owns a small printing company and uses reams of print paper every month. When he goes to the wholesaler to pick up his normal paper supply, he also sees that the supplier is selling remnants of colored construction paper. Darren purchases the colored construction paper for his children to use for school projects and to make art. Select the two statements below that correctly describe Darren's purchases.

1) The supply of print paper from the wholesaler is a business product because Darren uses it to provide a service that he sells; 2) The colored construction paper from the wholesaler is a consumer product because Darren's family will use it for personal projects

You work in the stock market. Stock markets allow businesses to raise additional funds for new projects, business expansions, and capital investment plans. Moreover, they enable the public trading and selling of market shares of a company. Major purchases of stock typically require input from various parts of the organization, including senior management and accounting. One of your colleagues, Amos, works in the IT department of one of the U.S.-based tech firms for which you are trading. Amos is in charge of receiving information about new technologies from commercial sources, universities, and Web-based sources, to name a few and then working with other IT professionals to find solutions. Which of the following statements is true about the buying center described above?

Amos has a dual role as a gatekeeper and influencer

While totaling your quarterly receipts for your business, The Breakfast Bar, you note that a sizable amount of your revenue comes from selling packaged coffee beans to regular customers who come in every day for an extra-large cup of coffee togo. Your plan for the next quarter is to promote your selection of fresh roasted beans with a buy one, get one half off incentive to encourage these customers to purchase more and/or try something new. Which segmentation approach are you employing to bolster sales for the next quarter?

Behavioral

Based on sales reports and customer feedback, you have mapped five brands of toothpaste marketed by your company so that you can get a visual of how each rates with the public. Based on the positioning descriptions below, which brand is considered by consumers as the best overall value? Brand A: Low Price; Low Quality. Brand B: High Price; High Quality. Brand C: Moderate Price; Moderate Quality. Brand D: Moderate Price; High Quality. Brand E: High Price; Low Quality.

Brand D

After spending time in the marketing department of a cookware company based in Ohio, you've been told to prepare for a move to a new international division. Your boss hasn't specified its location—only that it will be outside the most mature markets for many U.S. consumer products. Based on that information, you can assume the move will [not] take you to:

Canada

Estee Foods has succeeded in the highly competitive candy market by focusing on sugar-free sweets that meet the needs of people on strict sugar-free diets, like diabetics. Estee practices which of the following strategies for reaching its target market?

Concentrated marketing

Making soap has been your hobby for some time, but now you are contemplating turning your hobby into a small business. You use only hypoallergenic ingredients in your small batch soaps. Now sales come by word of mouth, but you plan to promote your handmade goods and sell them on one or more online outlets to people who are sensitive to the cleaning agents used in mass market soaps. Which marketing strategy will fit your newly established business? Select the best answer.

Concentrated marketing, because you will concentrate on meeting the needs of a single market segment

Your large retail store sells power tools and construction supplies, and your customer base is made up primarily of home improvement contractors, subcontractors, and serious DIYers. But business has stagnated now that the housing market has seen a downturn. What can you do to boost your sales and keep your business solvent?

Consider marketing to a segment that meets the criteria for effective segmentation

Which of the following is not part of the international political-legal environment that affects U.S. firms operating abroad?

Cultural norms

You work for a new company in an emerging market, the 3D printer industry. With about 200 employees, your company is undoubtedly growing, and order requests have doubled within the last year. Because of the size of your company, you are not quite ready to compete with industry giants. You do, however, understand that there is a huge potential for success because a 3D printer can potentially be used for a wide range of activities, including printing products within the home, printing organs for transplant that can be used in operating rooms across the world, and printing and filling small orders for local businesses. Which of the following types of business-to-business market segmentation would you use in the scenario described above?

End-use application segmentation

The organizational buying process is multifaceted and is demonstrated through a seven-stage process. Which of the following descriptions pertains to an activity that the purchaser would be likeliest to undertake during the last stage?

Examine the frequency of on-time delivery

Two demographic variables used when segmenting consumer markets are segmenting by age and segmenting by stage in the life cycle. Which of the following situations does not illustrate segmenting by age?

Flat-pack furniture is marketed as inexpensive and easily portable

You work for a fabric company that sources unique materials from around the world. In the past, you have focused solely on the business of supplying fashion designers with the fabric they make into dresses. However, you've recently recognized an opportunity to expand the business by supplying stores like Jo-Ann Fabrics that sell sewing and craft goods to consumers who sew at home. If you pursue this opportunity, in which direction would your company be expanding?

From a commercial market into a reseller market

As a marketer, you have many different tools at your disposal to gather the information necessary to develop targeted marketing programs. One of those tools is psychographic segmentation. Select the type of information below that cannot be gathered using psychographic variables.

I want to know how many children under the age of 18 live in the households of my target market

In your new marketing position with an international company making custom leather boots, you recognize the global environment offers a different set of challenges for you to navigate on behalf of your employer. You have been assigned to track product sales to Spain. Which of the following information should you thoroughly familiarize yourself with, to respond to Spain's political-legal environment?

Import tariffs on leather goods

You are browsing through job listings for global marketing-related jobs on Monster.com. One job catches your attention because it lists the following major responsibilities that closely match your experience: The candidate will be involved in purchase decisions of robotic manufacturing firms in Asia. The candidate will be involved in setting up an independent division with responsibility for robotic equipment production and marketing. The candidate's major focus will be on evaluating the performance of robotic manufacturing activities and incorporating strategies for effectiveness and efficiency. The candidate should have an international customer value orientation. Which of the following terms best describes the focus of this job?

International direct investment

You're the marketing director for a startup firm in the snack food industry. In the past, you've sold only to small specialty stores, but now you hope to crack a major supermarket chain. As you plan your approach to this prospective new buyer, which of the following likely influences on its decision should you consider?

Interpersonal influences and organizational factors

You turned on your tablet to read an online article about a Texas-based furniture retailer that reported its first gain in same-store sales in almost two years. The gains were realized in foldable tables and convertible sofas, areas specifically targeted for improvement and often preferred by apartment dwellers with limited space. The company attributes its success to having moved its stores from rural and suburban communities into Dallas-Ft. Worth, 1 of the 10 largest metropolitan areas in the United States. What significant geographic variable or combination of variables is likeliest to be responsible for this retailer's success?

Market density

Market segmentation is used by marketers to develop the strategy they will use to present their product or service to the consumer. Select the statement below that best describes how market segmentation works.

Market segmentation groups consumers according to similarities and differences in reference to factors that influence purchase decisions

As the marketer for a new electronics firm that produces a limited number of products, you recognize that consumers are not all cut from the same cloth—many variables exist in needs and preferences. But your company cannot change its products to suit each individual consumer preference. Select the statement below that does not accurately tell how market segmentation can help your company sell its goods.

Market segmentation will help your company identify product changes that will meet all consumer preferences and needs

You have entered a stage in the organizational buying process. The scenarios below indicate which stage you have entered: At this stage in the buying process, you will consider how well a particular supplier has responded to your company's needs. Because your company is so large, it uses standardized methods to judge whether a vendor has met or exceeded the company's expectations. Which of the following is an added benefit of the stage in the organizational buying process identified above?

Measurement of whether or not a vendor has reduced your employees' workloads

The United States places first in a number of categories of global marketing and trade opportunities. For example, the United States is the world's largest exporter of services and retailing. More than $600 billion is spent annually on U.S. service exports. Twenty percent of that $600 billion—more than $120 billion—comes from travel and tourism. Which of the following customer descriptions identifies a buyer of this U.S. service export?

Parisian Cecile, driving a convertible up the West Coast from California to Washington

Business markets differ from consumer markets in several ways. Choose the correct example(s) of these differences.

Personal selling is usually emphasized more in business than consumer markets

***Study the organizational buying process chart*** Mercy Hospital needs to purchase a highly specialized drug that is patented and sold by only one pharmaceutical company. These constraints will primarily affect which step in the organizational buying process?

Step 3

You work for a digital timepiece company which started its entry into the global market a year ago. Your predecessor assumed that the company could use the same product and preexisting marketing campaign materials in nations that shared the same language. Sales never got off the ground. You were brought on board to make strategic changes and continue the fight for customers. Which strategy are you most likely to change?

Straight extension

XYZ Company defines its primary customer group based on demographic variables. To guide the development of its advertising, you were asked to write a description of the typical customer in that group. Just before submitting the assignment, you caught an error: one sentence is wrong because it references a variable that isn't demographic. Which sentence is wrong?

The XYZ consumer doesn't want to look her age

Which of the following positioning strategies is inaccurately described?

To succeed with value positioning, a company must offer the lowest price

The business-to-business (B2B) market can be grouped into four major categories: commercial, reseller, government, and institutional. Organizations can fall into one of the business market categories. Choose the organizations that are part of the reseller market.

Toys "R" Us purchases Barbie dolls from the toy manufacturer Mattel

You work for a tech firm that wants to invest in some capital development projects that could potentially position the company as a multinational giant in the competitive market. One of the projects would require your company to purchase a $500 million software package. Company executives believe the investment would pay off; however, before approving such a costly purchase, they want to identify someone in the IT department who has the expertise to work with this highly specialized package. The person would play a key role within the buying center. Which role would the IT expert be likeliest to play?

User

After interviewing candidates for the job of business marketing specialist, Fred decided to eliminate one—despite her strong paper credentials. Explaining his decision to you, Fred quoted a comment that betrayed the candidate's misunderstanding of B2B market segmentation. Which comment did Fred quote?

When I segment customers demographically, I believe in concentrating on how they use my product

Last year, you left a job in consumer marketing to take one in business marketing. The shift required you to become accustomed to all of the following changes except:

You have more potential buyers than before

You head a marketing team preparing to launch a revised global marketing campaign for a high-end jewelry and accessory company. You review the previous strategies your team has implemented: You started with selling delicate, antique-looking jewelry across all international markets, with the same theme of "Looking Your Feminine Best." Then your team experimented with some countries using the same jewelry, but with a theme of "Investing in Your Best Self." For other countries, your team used the same theme of "Investing in Your Best Self" to sell jewelry-encrusted purses. Buoyed by that success, your team plans a dramatic marketing change: An award-winning designer recrafted the profile of the jewelry to be chunky, rather than delicate. Your team came up with the slogan of "Be Visibly Lovely." Choose the international product and promotional strategy that does [not] illustrate a form of adaptation.

You started with selling delicate, antique-looking jewelry across all international markets, with the same theme of "Looking Your Feminine Best."

The North American Free Trade Agreement (NAFTA), the World Trade Organization (WTO), and the European Union (EU) were all formed to achieve the same purpose of removing trade restrictions between countries. However, there are important differences in the characteristics of these organizations. Fill in the blanks with the word(s) from the drop-down list that would best complete the passage. Each word or term may be used more than once. a. The _______________ involves more than 150 countries. b. NAFTA involves _________ countries. c. The _________________ is a monitor of trade policies and mediator of _____________. d. The _____________ has adopted a common currency among its members. e. The _______________ promotes human rights.

a. World Trade Organization; b. three; c. World Trade Organization, trade disputes; d. European Union; e. European Union

Geographic segmentation uses information about a region's population to form homogeneous groups. Different geographic variables may influence consumer buying decisions. Fill in the blanks with the word(s) from the drop-down list that would best complete the passage. a. Some people move away from urban areas because urban housing tends to be small and crowded. From a marketing perspective, this reflects the variable of ___________________. b. Sunscreen sells better in Florida than in North Dakota, primarily because of the southern state's ________________. c. People who drink iced tea in Georgia and Alabama are more likely to sweeten the beverage than iced tea drinkers in Vermont and New Hampshire. This is an example of a(n) ___________ difference that may be relevant to geographic segmentation based on _________________.

a. density; b. climate; c. cultural, region

Fill in the blanks with the word(s) from the drop-down list that would best complete the passage. a. When the __________ consumer completes a transaction for personal use, it is considered a consumer product. b. Purchases by _______________ are classified as business products because they are used to produce other goods and services for resale. c. Often a _____________ product serves as both a consumer product and a business product. d. The same product purchased for ______________ use by a retail customer may also be purchased by a manufacturer for resale, which makes it both a consumer and a business product.

a. ultimate; b. manufacturers; c. single; d. personal

The business-to-business (B2B) purchasing decision process is much more complicated than the individual consumer's decision process. The B2B purchase decision process often involves multiple people or groups whose input affects the final decision. Fill in the blanks with the word(s) from the drop-down list that would best complete the passage. Company B recently experienced a delay in production due to political riots in the country where its factory is located. Its CEO recognizes that the delay was due to __________________ Company A uses groups to make purchases and must have a majority vote to make a purchase decision. This means its decisions are subject to ____________________ Company C has branches all over the United States but has decided to consolidate all its purchasing at company headquarters. This means its vendors must now consider ______________________

environmental factors; interpersonal influences; organizational factors

Free trade has not produced all of the economic impacts that were originally predicted. At the same time, it is known that global shifts in production and trade have generally ___________________ consumer costs, ___________________ company profits, and ______________ product _______________ .

lowered; improved; increased; choice

Fill in the blanks with the word(s) from the drop-down list that best complete each passage. For a marketer, it may be difficult to identify the most influential members of a buying center because often these members don't work in the ___________________ department An organization's ____________________ consists of each individual who works in any capacity of its purchasing activities In many business buying situations, one person serves as both the decider and the ____________________ A buying center is a(n) __________________ group

purchasing; buying center; buyer; informal