MKT 3013 Study Questions

Large retailers like Walmart have enormous channel control due to their size and power. Which type of channel arrangement does this​ represent?

Administered VMS

​________________________ is the first step in marketing channel design.

Analyzing consumer needs

What are three major factors changing the face of​ today's marketing​ communications?

Changes in​ consumers, changes in marketing​ strategies, and sweeping changes in digital technologies

Which of the following represents the four major classifications of retail​ organizations?

Corporate​ chains, voluntary​ chains, retailer​ cooperatives, and franchise organizations

The​ demographic, economic,​ natural, technological,​ political, and cultural forces that affect a​ company's ability to serve its customers make up which of the​ following?

Macroenvironment

Asher Airlines instituted a marketing program whose intent is to create a relationship with customers with seat upgrades and free miles for their continued patronage. What customer relationship tool is Asher Airlines​ using?

Frequency marketing program

Which of the following describes a​ just-in-time logistics​ system?

Just-in-time logistics systems allow producers and retailers to carry small inventories to last for only a few days of operations.

What are the variables in a​ company's marketing​ mix?

Product, price, place, and promotion

Which of the following represent market​ offerings?

Products, services, information, and experiences

Retailers must decide on which three major product​ variables?

Product​ assortment, services​ mix, and store atmosphere

Which of the following is NOT one of the marketing management​ functions?

Promoting

​___________________is used to build and maintain national or local community relationships and is one of the functions of public relations.

Public affairs

​__________________ are limits countries can set on the amount of foreign imports that they will accept in certain product categories.

Quotas

​________ products have low immediate appeal but might benefit consumers in the long run—for instance, bicycle helmets or some insurance products.

Salutory

Which of the following is the primary reason firms use competitive marketing​ intelligence?

To gain early insights into competitor moves and​ strategies, and to prepare quick responses

What is the purpose of the marketing mix as part of the overall marketing​ strategy?

To produce a response that influences a demand for the product from the customers the company is targeting

Which of the following statements about wholesaling is​ true?

Wholesalers must make decisions regarding their marketing mix

In place of traditional​ media, marketers are using​ __________________________ to engage smaller customer segments with more​ personalized, interactive content.

a broad selection of more specialized and highly targeted media

A company may use the promotion​ mix, also called its marketing communications​ mix, to​ ______________________.

engage​ customers, persuasively communicate customer​ value, and build customer relationships

In pricing innovative new​ products, a company can use​ ________ by initially setting high prices to maximize the amount of revenue from a sufficient number of buyers willing to pay the higher price.

market-skimming pricing

​Geico's website is designed to quickly turn an inquiry into a sale. Geico has designed​ a(n) ______ website.

marketing

Companies apply​ ________ to dig out meaningful patterns in big data to gain customer insights and gauge marketing performance.

marketing analytics

A blog is​ a(n) ______.

online forum

Public relations involves building good relations with the​ company's various publics. What are all of the functions it​ includes?

press agency, product publicity, public affairs, lobbying, investor relations, and development

In​ ________ marketing, a company makes marketing decisions by considering​ consumers' wants, the​ company's requirements,​ consumers' long-run​ interests, and​society's long-run interests.

societal

The​ ________ considers the future welfare of​ consumers, the​ ________ considers future company​ needs, and the sustainable marketing concept considers both.

societal marketing​ concept; strategic planning concept

Marketing's impact on​ ________ has been criticized for creating false wants and too much​ materialism, too few social​ goods, and cultural pollution.

society

Which of the following reverses the usual process of first designing a new​ product, determining its​ cost, and then​ asking, "Can we sell it for​ that?"

target costing

A variation of​ break-even pricing is​ ____________________, which uses the concept of a​ break-even chart that shows the total cost and total revenue expected at different sales volume levels.

target return pricing

During the presentation step in the personal selling​ process, the salesperson​ ______________.

tells the buyer a "value story"

Major advertising involve decisions about​ ________________________.

the objectives, the budget, the media, and the evaluation of results

ZoomShops use​ _____ marketing, which offers automated retailing for a variety of products.

kiosk

Like​ retailers, wholesalers must​ _____________________________.

segment and target​ carefully, differentiate, and position themselves effectively

Retailers always search for new marketing strategies to attract and hold customers. The major marketing decisions they face are​ _______________________.

segmentation and​ targeting, store differentiation and​ positioning, and the retail marketing mix

Another price adjustment strategy is​ ______________ pricing, where the company sells a product at two or more prices to accommodate different​ customers, product​forms, locations, or times.

segmented

One challenge of social media marketing is​ _____________________

social networks are largely​ user-controlled

There are several strategies used to adapt product strategies to a global market. These product strategies include​ ____________________.

straight product​ extension, product​ adaptation, and product innovation

The​ Robinson-Patman Act seeks to ensure that sellers offer the same price terms to customers at a given level of trade to prevent​ ______________________.

price discrimination

Because social media are ​_____​, they are ideal for starting and participating in customer conversations and listening to customer feedback.

interactive

​_____________________ direct(s) its marketing activities​ (primarily advertising, consumer​ promotion, and direct and digital​ media) toward final consumers to induce them to buy the product.

A pull strategy

Which of the following is correct regarding the forms of direct and digital​ marketing?

Both the new digital and the more traditional forms of direct marketing must be blended into a fully integrated marketing communications program.

Which of the following scenarios BEST describes the societal marketing​ concept?

Edward's Earthware attempts to make its pottery in a way that satisfies customers but is also environmentally friendly and sustainable over the long term.

What are the three key approaches to entering foreign​ markets?

Exporting, joint​ venturing, and direct investment

In what three different ways can companies manage their international marketing​ activities?

First organize an export​ department, then create an international​ division, and finally become a global organization.

​GEICO, the​ number-two auto insurer with ​$13 billion in revenue last​ year, spent ​$0.8 billion on advertising that year and plans to continue spending the same percentage of sales on advertising next year. The average​ advertising-to-sales ratio for the insurance industry is 0.1 percent of sales. If GEICO projects ​$16 billion in sales next​ year, using the​ percentage-of-sales method of advertising​ budgeting, how much will the company budget for advertising if basing it on projected​ sales?

GEICO's advertising-to-sales ratio for last year is 0.06150. Using the​ advertising-to-sales ratio for last year​, GEICO will budget ​$1.0 billion for advertising next year. ​

_________________________ eliminated trade barriers and investment restrictions among three large global countries while establishing a single market of 487 million people who produce and consume over​ $23 trillion of goods and services annually.

NAFTA

An international company has appointed a CPO to ensure the privacy and confidentiality of the consumer data it collects. Which of the following is the CPO MOST likely to do as a function of his or her​ job?

Inform customers of the​ company's privacy policy

Producers of a strong brand sometimes sell it to dealers only if the dealers will take some or all of the rest of its line. This is known as​ full-line forcing. Which of the following statements is true regarding​ full-line forcing?

It may or may not be legal

Which of the following is a reason that producers use marketing channels and channel​ intermediaries?

Marketing channel members are able to transform the assortments of products made by producers into the assortments wanted by consumers.

​_________ include biases against a​ company's bids, restrictive product​ standards, or excessive​ host-country regulations or enforcement.

Nontariff trade barriers

​______ means integrating all available shopping channels and devices into a seamless customer shopping experience.

Omni-channel retailing

Which of the following best explains the new view of marketing.

Satisfying​ customer's needs

_________________marketing means that the company should define its mission in broad social terms rather than narrow product terms.

Sense-of-mission

Which of the following is NOT a step in the strategic planning​ process?

Set revenue and financial goals

Assume that a customer shops at a local grocery store spending an average of $150 a​ week, resulting in a retailer profit of $40 each week from this customer. Assuming the shopper visits the store all 52 weeks of the​ year, calculate the customer lifetime value if this shopper remains loyal over a​ 10-year life span. Also assume a 3 percent annual interest rate and no initial cost to acquire the customer.

The customer yields $2080 per year in profits for this retailer

Using the BCG​ growth-share matrix as a​ guide, Masumura Technologies identified question marks in its business portfolio but is currently maintaining its market share. At a recent meeting with the​ company's senior management​ team, the CEO of Masumura and her team members decided to allocate all of the​ company's profits toward the growth and expansion of these question​ marks, in order to cause the question marks to become stars. What is likely to happen to this​ company?

The growth of the company will be unpredictable because there is no guarantee that a question mark will become a star.

How has the internet MOST affected companies and​ customers?

The internet has allowed consumers to take marketing content and share it.

The key to learn about and engage with individual customers is to blend the new digital technologies and approaches with traditional marketing to create​_______________________.

a smoothly integrated marketing strategy and mix

In going beyond​ greening, companies can develop​ ________, which serves as a guide to the future and shows how the​ company's products and​ services, processes, and policies must evolve and what new technologies must be developed to get there.

a sustainability vision

Through sustainable​ marketing, both businesses and consumers​ ___________________.

are both called to more responsible actions

Which of the following generational groups represents one of the most powerful forces shaping the marketing​ environment?

baby boomers

Distribution channels are complex​ ______________ in which people and companies interact to accomplish​ individual, company, and channel goals.

behavioral systems

The best​ ________ is the one that best fits the​ company's strengths and weaknesses to opportunities in the environment.

business portfolio

In the​ whole-channel view of​ distribution, the first​ link, ________,​ move(s) company products from points of production to the borders of countries within which they are sold.

channels between nations

​________ includes practices such as falsely advertising​ "factory" or​ "wholesale" prices or a large price reduction from a phony high retail list price.

Deceptive pricing

Chicago's Best Pizzeria has been operating on the north side of Chicago for more than 30 years. Its target market includes young urban professionals who want​new-style organic pizzas with exotic ingredients.​ However, in recent​ years, the population in the​ pizzeria's neighborhood has been​ shifting, and now fewer young urban professionals live there. The population has grown older and wants traditional​ pizza, not pizza with exotic ingredients. Which of the following identifies the​ pizzeria's BEST response to this​ situation?

Target a new market with a different product

Which marketing management orientation holds that a firm should have a customer focus to achieve sales and​ profits?

The marketing concept

What is the main problem that sellers suffering from marketing myopia​ face?

They focus more on products than on the​ customer's underlying need.

To​ ________ for customers and​ ________, marketers must first gain​ fresh, deep insights into what customers need and want.

create value; build meaningful relationships with them

The real value of marketing information rests in the​ _____________________.

customer insights it provides

The three major pricing strategies are​ ______.

customer​ value-based pricing,​ cost-based pricing, and​ competition-based pricing

The step in the strategic planning process that should be​ market-oriented, realistic,​ specific, motivating, and consistent with the market environment is ​________.

defining the company's mission

A marketing information system​ (MIS) helps users analyze and use information to​ ________, ______________, and​ _______________.

develop customer​ insights, make marketing​ decisions, and manage customer relationships

New retail forms continue to emerge.​ However, different types of retailers are increasingly serving similar customers with the same products and prices​ (retail convergence), making​ __________ more difficult.

differentiation

​________ involve engaging directly with carefully targeted individual consumers and customer communities to both obtain an immediate response and build lasting customer relationships.

direct and digital marketing

The American Marketing Association​ (AMA) developed a code of ethics for marketers based on three principles. These three principles are​ _______.

do no​ harm, embrace ethical​ values, and foster trust in the marketing system

Continually adjusting prices to meet the characteristics and needs of individual customers and situations is known as​ _______________________.

dynamic pricing

With companies becoming more​ market-oriented, the sales force plays a key role in​ ________ and​ __________________________.

engaging​ customers; developing and managing profitable customer relationships

Which of the following describes the type of research used to help define the research problem and suggest​ hypotheses?

exploratory research

Which of the following accurately describes a​ company's efforts to engage​ customers, persuasively communicate customer​ value, and build customer​ relationships?

marketing mix

The massive shift in how and where people buy calls for​ _________________________.

massive shifts in how store retailers operate

​Websites, online​ advertising, email, online​ video, and blogs are all forms of​ ______.

online marketing

Another strategy for creating value and building strong customer relationships includes​ ________, which means working closely with others inside and outside the company to jointly engage and bring more value to customers.

partner relationship management

To avoid being intrusive and​ annoying, most legitimate​ e-mail marketers practice​ ______, which means sending​ e-mail pitches only to customers who​ "opt in."

permission-based marketing messages

​________________________ is one major objective associated with a​ market-penetration pricing strategy.

winning large market share

Two major public policy and ethics issues in marketing research are​ ________.

intrusions on consumer privacy and the misuse of research findings

The demographic environment is of major interest to marketers because​ ________.

it involves people, and people make up markets

Many consumers today rent DVDs from a vending machine called​ Redbox, which can be found in retail stores and other locations. Redbox is type of​ ________ marketing.

kiosk

Which of the following represents a new trend in logistics to save​ costs, increase​ efficiencies, and gain faster and more effective access to global​ markets?

Outsourcing logistics functions

How does the new concept of marketing differ from the old concept of marketing​ ("telling and​ selling")?

The new concept focuses on customer needs

Which of the following states that managers must look beyond what is legal and allowable and develop standards based on personal​ integrity, corporate​ conscience, and​ long-term consumer​ welfare?

The sustainable marketing concept

These​ days, shopper marketing influences​ consumers' buying decisions and calls for​ omni-channel retailing, creating a seamless​ cross-channel buying experience that integrates​ __________________ shopping.

in-store, online, and mobile

When a company begins doing business​ internationally, it generally starts with​ ____________________, working through independent international marketing intermediaries.

indirect exporting

In determining the number of channel​ intermediaries, there are three strategies available. These are​ _________________.

intensive, exclusive, and selective distribution

Sales promotion campaigns call for setting sales promotion objectives. In​ general, sales promotions should be ​________.

consumer relationship building

Personal selling can be more effective than advertising in complex selling situations because it is​ ______________________________.

interpersonal

Free trade zones can be described as​ ____________________.

groups of nations organized to work toward common goals in the regulation of international trade

Environmental sustainability concerns have grown steadily over the past three decades. Marketers should be aware of three primary trends in the natural​ environment, which include​ ________, ________________, and​ ________________.

growing shortages of raw​ materials, increased​ pollution, and increased government intervention in natural resource management

Most companies today want their salespeople to​ _______, which means demonstrating and delivering superior customer value and capturing a return on that value that is fair for both the customer and the company.

practice value selling

One consumer promotion tool is​ _______, which are goods offered either free or at low cost as an incentive to buy a product.

premiums

Bath​ & Body Works uses​ _____________ pricing when the company offers​ "three-fer" deals on its products​ (such as​ soaps, lotions, and​ moisturizers).

product bundle

There are several types of product mix pricing​ situations, which include​ ______________, by-product​ pricing, and product bundle pricing.

product line pricing, optional-product pricing, and captive-product pricing

Marketing departments can be organized in a number of ways.​ However, more and more companies are changing organizational focus from​ ________ to​ ________.

product or territory​ management; customer relationship management

Many companies view the marketing environment as an uncontrollable element to which they must​ ________.

react and adapt

The difference between the marketing concept and the sustainable marketing concept is that the marketing concept​ ___________________________.

recognizes that companies thrive by fulfilling the​ day-to-day needs of customers

The performance difference between an average salesperson and a top salesperson can be substantial.​ Therefore, at the heart of any successful sales force operation is the​ ______ of good salespeople.

recruitment and selection

Which advertising objective is best suited to maintaining customer relationships and for more mature​ products?

reminder

Which of the following retail trends is making differentiation more​ difficult?

retail convergence

Laws prohibit​ ____________, which means a manufacturer cannot require dealers to charge a specified retail price for its product.

retail price maintenance

When evaluating channel member​ performance, companies use standards such as​ _______, ______,​ _____, treatment of damaged and lost​ goods, cooperation in company promotion and training​ programs, and services to the customer.

sales quotas, average inventory levels, customer delivery time

​Justin, Inc., a​ U.S.-based watch​ manufacturer, sells its products in​ China, Russia,​ France, and India. To manage​ sales, Justin appoints a number of sales representatives to each location. Justin has adopted a​ ________ sales force structure.

territorial

The microenvironment consists of those close to the company that combine to form its value delivery network or that affect its ability to serve customers through six key​ways, which include​ ________, __________,​ ___________, ________,​ _________, and​ _______.

the company, suppliers, marketing intermediaries, cultural forces, competitors, and publics

Other internal factors that influence pricing decisions include​ ____________.

the​ company's overall marketing​ strategy, objectives, and marketing​ mix, as well as organizational considerations

Which of the following correctly describes customer​ purchases, sales force​ contacts, service and support​ calls, web and social media site​ visits, satisfaction​ surveys, credit and payment​ interactions, and market research​ studies?

touch points

After recruiting and selecting​ salespeople, what is the next major step in sales force​ management?

training salespeople

The typical personal selling process consists of seven specific steps. The steps in the selling process are​ ________. The aim is to help salespeople close a specific sale with a customer.

transaction oriented

As part of​ marketing's role, the department works closely with partners in other departments to form an effective internal​ ________ and with other companies in the marketing system to create an external value delivery network that jointly serves customers.

value chain

To create value for​ customers, marketers must improve the performance of the​ ______________, which includes partnering with​ suppliers, distributors, and customers.

value delivery network

What event or circumstance has made mobile marketing a must for most​ brands?

widespread adoption of mobile devices

An international corporate division plans for and provides services to various operating​ units, which can be organized in one of three​ ways: geographical​ organizations, _________________.

world product​ groups, or international subsidiaries

Tina's Tunes is a music store that has been selling CDs for 20 years. Throughout the last six​ years, sales have continuously declined and profits have almost completely disappeared. The owner of​ Tina's Tunes believes resurgence is likely to happen soon and wants to continue business as usual. What is likely to happen to​Tina's Tunes?

​Tina's Tunes is likely to fail because it is ignoring the technological environment.

The first step in the marketing research process involves defining the problem and setting research objectives​ , which might be​ _________, ___________, or​____________ research.

​exploratory, descriptive, or causal

Marketers want to predict cultural shifts to spot new opportunities or threats. The major cultural values of a society are expressed in​ people's views of themselves and​others, as well as in their views of​ ________, __________,​ ____________, and​ ________.

​organizations, society,​ nature, and the universe

The major cultural values of a society are expressed by​ people's views of​ ____________________.

​themselves, others,​ organizations, society,​ nature, and the universe