Principles of Marketing Final

Changes in technology and the explosive growth of direct and online marketing are having a profound impact on the nature and design of marketing channels. One major trend is towards ___________ insofar as product or service intermediaries displace traditional ones.

disintermediation

When Toyota announces a product recall on its Camry model due to a faulty igniter, they are using _____ to coordinate with dealers and car owners.

reverse logistics

Surf's Up, a family-owned business, offers a free surf lesson with the purchase of any surfboard over $200 during the month of May. This is an example of which promotion mix element?

sales promotion

Producers use marketing intermediaries because they ________.

Create greater efficiency in making goods available to target markets

Harry's caters to the clothing needs of men, manufacturing two different lines of fashion based on the purchasing power of its customers. One product line caters to the needs of affluent, middle-aged men, and the other line targets younger, up-and-coming professionals. Harry's most likely segments the consumer market based on ________ variables.

Demographic

Which of the following media is most suitable for advertising a product that needs to be demonstrated?

television

Rug Designs Inc, a manufacturer of large area rugs, markets its products throughout the United States using a network of regional sales offices. They are using a ________ sales-force structure.

territorial

Which of the following best describes the personality symbol style of advertising?

using an animated character or mascot to represent a product in an advertisement.

Consistency of a product mix refers to the ________.

ways in which the various product lines are related

PC manufacturer, Lenovo, focuses on low labor costs and mass distribution to ensure the continuous availability of its products at reasonable prices. Lenovo most likely follows the ________.

Production Concept

Harry Potts is a salesperson for a national pet food company. He meets Karen Sharp, a buyer for a large, specialty pet retailer, and speaks to her at length about the product categories and brands of pet food the retailer currently carries as well as future needs. At which step of the selling process is Harry Potts in the above scenario?

Approach

CVS Pharmacy changed its name to CVS Health, reshaping and broadening its lines of products and services to align more appropriately with its revamped "better health" mission. For example, it stopped selling tobacco products altogether. How would this be classified in a SWOT analysis?

Strength

American Honda purchases over $20 billion worth of auto parts and materials every year. ________ are key players in the company's success.

Suppliers

___________is a method of gathering primary data that involves asking people questions about their knowledge, attitudes, preferences, and buying behavior.

Survey research

Which if the following is an example of a shopping product?

Television

Cosmetics firm SatinSilk is revamping its mission statement and advertising strategy. The CEO stresses that the new mission statement should be market-oriented rather than product-oriented. Which of the following mission statements will best suit the company?

To give customers the complexion they dream about by providing products suited to their needs.

The responsibility for setting a company's mission, objectives, broad strategies, and politics primarily lies with its_________.

Top Management

JetBlue's promise to put "You Above All" by "bringing humanity back to travel" is their ________.

Value Proposition

Which of the following products would the electronics company CypressSound classify as a cash cow in the BCG matrix?

Xpress-an MP3 player that has a high market share in a market that is not expected to grow significantly.

which of the following promotion mix approaches involves a producer promoting a product to different channel members who in turn promote the product to customers?

a push strategy

Fred's faith in Asics, his favorite brand of running shoes, makes him consider other offerings introduced by Asics. Fred is not a risk-taker, and he tends to evaluate each new product carefully before adopting it. Fred is an opinion leader in his social networking community and best described as a(n) ________.

early adopter

Port Orleans Shipping markets different services to the tourism, defense, and trade segments. The firm designs separate offers for each segment based on their needs. This approach is called ________ marketing.

differentiated

Computer World sells laptops separately from accessory products like docking stations, anti-virus software, and external hard drives. This is referred to as ________ pricing

optional-product

What is most likely the first major marketing decision that a retailer must take?

personal selling

Bose promises "better sound through research." This is an example of ________.

Product differentiation

Which of the following is true of salespeople?

They represent a company to its customers by communicating and selling.

The American Tie Company, a necktie retailer, offers a deep assortment of men's neckties. The American Tie Company is best described as a__________.

Specialty store

The societal marketing concept holds that___________.

A company's marketing decisions should focus on creating economic value in a way that also creates value for the surrounding environments.

Which of the following is part of the microenvironment of a company's marketing environment?

A just-in-time inventory system used by the company's marketing environment?

Which of the following is most likely true of a product in the maturity stage of the product life cycle?

A slowdown occurs in sales growth

Kevin Pinker is a freelance computer programmer who writes computer algorithms for companies such as SoftStar and BlueHill. SoftStar and BlueHill use these algorithms to make specific programs based on online market research. These programs are then sold to the online retailer, Abundon, which then sells them to individual consumers and businesses. Which of the following is a marketing intermediary in this chain?

Abundon

Ainsworth is a toy manufacturer based in Australia. Which of the following most likely indicates that Ainsworth is following a diversification strategy?

Ainsworth enters the U.S. market with a line of children's clothing.

Secure is a financial services and insurance company. The company's most profitable division is one that sells the Secure Future Plan. The Secure Future Plan targets customers who are entering retirement and want long-term savings so they can remain financially independent in the later years of their life. The marketing team at Secure has most likely targeted the plan at ________.

Baby Boomers

A firm has a huge amount of individual customer data saved in different databases. Which of the following can be used to integrate, analyze, and apply the available information effectively?

CRM systems

The final step in the marketing process is _________.

Capturing value from customers

Vernon Inc. would like to set the best price for a new product. The firm conducts an experimental study by selling the new product at two different prices in two different locations keeping other factors constant to see if a lower price results in better sales. This is most likely an example of ________ research.

Casual

Office Solutions is a large retailer that specializes in office products and services. Their offerings include a wide and deep assortment of computers desk furniture, printers, office supplies, stationery, and printing. Office Solutions is most likely an example of a____________.

Category Killer

Which of the following types of differentiation is used to gain competitive advantage through the way a firm designs its distribution coverage, expertise, and performance.

Channel Differentiation

Which of the following is true of focus discussions?

Consumers are not always honest and open about their opinions.

Which of the following is true of an exclusive dealing arrangement between a producer and a dealer?

It gives the producer's products more shelf power compared to a competitor's products being sold by the dealer.

Coolers Inc. has decided to launch a new energy drink that will have the fewest calories among its competitors. To understand the market potential for the new drink and the demographics and attitudes of consumers who are likely to buy the product, Coolers should most likely use ________.

Descriptive research

Mary Kay Cosmetics and Amway sell their products through home and office sales parties, online Web sites, and social media. Both companies use a(n) _______ channel to distribute their offerings.

Direct

Leading "big box" stores, such as Walmart and Target, now dominate the retail scene. However, even "small box" stores like Dollar General, are thriving in the current economic environment. All three retailers are considered ___________.

Discount Stores

Burger Town introduced a new hamburger and released it in two different cities at two different prices. Marketers of Burger Town then analyzed the sales records of their outlets at the two cities, determined the price that resulted in better profits, and used the information to set a nationwide price for their new offering. This is an example of ________.

Experimental Research

Flurrbies, a line of winter accessories by a leading fashion label, quickly fell in and out of favor with customers. Flurrbies represents an example of a(n) ________.

Fad

Which of the following is a social factor that influences consumer buying behavior?

Family

Which of the following is an example of an unsought product?

Life insurance

In the BCG growth-share matrix, question marks refer to products or businesses with a _________.

Low market share in a market with high growth prospects.

Mind and Body Fitness recently entered into a financial agreement that allows 25 independent business people at select locations across the country to set up establishments that offer its holistic services and programs. They include weight-management, group programming, sport-specific training, yoga, pilates, and nutrition. which type of contractual retail association does this represent?

Franchise organization

Which generational group consists of the kid, teen, and tween market?

Gen Z

Which of the following statements is most likely true about the product life cycle?

Growth is a period of rapid market acceptance and increasing profits.

The "Stop the Text. Stop the Wrecks." campaign co-sponsored by the Ad Council​ and the National Highway Traffic Safety Administration is an example of a marketing offering for a (n)

Idea

Which of the following represents a change in the technological environment of a marketing firm?

Increased use of RFID systems to track products.

In which stage of the product life cycle will promotional expenditures be significantly high in an attempt to create consumer awareness of a product and its features?

Introduction

Which of the following is a characteristic of an inside sales force?

It conducts business from an. office via telephone.

Kathy Jenkins is planning to conduct research on consumers' personal care routines. Since the questions are likely to be personal and sensitive, Kathy wants to select a contact method that will encourage respondents to answer honestly. Which of the following contact methods is most likely to serve Kathy's purpose?

Mail questionaries

Appliances Galore is continually updating its line of refrigerators to reflect market trends and customer needs. Although the product class is in the maturity stage of the product life cycle, they maintain healthy sales of their line of refrigerators by continually ________.

Modifying the product

Consumers' needs and wants are fulfilled through ________.

Market Offerings

EcoBean, a chain of cafes, has introduced a Special Shopper Card that allows customers to pay in advance for coffee and snacks. This effort by EcoBean management is most likely an example of ________.

Market Penetration

Ferrari sells only 2,200 of its very high-performance cars in North America each year at very high prices. The company is appealing to a specific ________.

Market Segment

Dividing a market into several sections of customers is known as ________.

Market Segmentation

The first generation Apple iPod was introduced in 2001 and sold for $500. The following year a mini version was introduced for $250. Apple initially used a _______ strategy to price their digital music innovation.

Market-skimming

The_______ concept holds that achieving organizational goals on knowing the needs and wants of target markets and delivering the desired s better than competitors do.

Marketing

_________ are sets of interdependent organizations that help make the product or service of a company available for use by consumers or business users.

Marketing channels`

________ is the systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization.

Marketing research

Doggie World concept tested an idea for a new chew toy that would entertain dogs while simultaneously cleaning their teeth. Dog owners were pleased with the results. The next stage in developing the new product concept is____________.

Marketing strategy development

the first target store opened in 1962. its initial strategy was to set prices low to attract a large number of buyers quickly and win a large market share. This is referred to as ______________.

Marketing- Penetration Pricing

Rad, a manufacturer of luxury watches, charges a higher price for its products than its competitors. Despite the high prices, the brand is popular among customers for its quality and service in comparison to cheaper alternatives available in the market. In this case, Rad offers a(n) ________ value proposition.

More-for-more

A marketing intermediary would most likely help a firm by ____________.

Moving the firm's goods from production points to distribution centers.

Fargo Inc. is a carbonated beverage manufacturer that has many manufacturing plants around the world. It is planning to shift from using thermal power to wind power for its manufacturing plants in the Netherlands to decrease dependency on nonrenewable sources of energy. This scenario depicts Fargo's concern for its ________ environment.

Natural

In a SWOT analysis, which of the following would be considered a weakness of a company?

Obsolete technologies used by the company.

World Skies' Flight 167 takes off at 50 percent capacity. The unoccupied seats cannot be stored for later sale or use. This is an example of which service characteristic?

Perishability

Ford Motor Company issuing a recall that requires customers to schedule appointments with car dealerships to repair faulty igniters would have the greatest impact on the __________ component of its marketing mix.

Place

In a marketer's microenvironment, the ___________ environment consists of laws, government agencies, and pressure groups that influence or limit various organizations and individuals in a given society.

Political

Which of the following includes the target segment of a product, the category to which the product belongs, and the product's point of difference from other members in the category?

Positioning statement

Howard Genks works as a sales representative for Med-Tex, a firm that manufactures hospital supplies. Recently, a prospective buyer walked into the Med-Tex store seeking beds for the children's ward in his private clinic. Howard quickly showed the client the range of beds available that were designed specifically for children. In which of the following steps of the selling process was Howard?

Presentation and demonstration

______ is the only element in the marketing mix that produces revenue.

Price

Harper Farms raises chickens. For years, it has used wooden coops for hauling its poultry to market. When the owner, Jane Harper, went to reuse some of her coops, she noticed many of them could not be sufficiently cleaned for reuse and needed to be replaced. Which stage of the business buying decision process was Harper in when she decided to replace her old coops?

Problem recognition

GE employs different sales forces within different product and service divisions of its major businesses. For example, within GE infrastructure, the company has separate sales forces for aviation, energy, transportation, and water processing products and technologies. GE has most likely adopted a _______ sales-force structure.

Product

Starbucks has signed a contract with a television production company to have its brand featured prominently in a new situation comedy about empty nesters. The conditions of the agreement state that the situation comedy will feature only the Starbucks brand of coffee. What kind of advertising technique is being used in this example?

Product Placement

Salon Du Jour offers special combination packages at a reduced price. Separately, a haircut is $30 and a conditioning treatment is $35. But the combo price is $50. This is referred to as ________ pricing.

Product bundle

Retailers must decide on which three major product​ variables: Product assortment, services mix, and ________.

Store atmosphere

Karen Rogers is a salesperson for Solar Panels Inc. She attends builder trade shows to identify potential customers in an effort to build long-term profitable relationships. Karen Rogers is engaging in which step of the selling process?

Prospecting

Bass Pro Shops recognizes that outdoors enthusiasts are a diverse group. Likely segments include hunters, campers, and boaters. What is this segmentation method called?

Psychographic

In which of the following promotion tools does a customer send a proof of purchase to a manufacturer, who then refund part of the purchase price by mail?

Rebate

________ refers to the activities involved in selling products or services directly to final consumers for their personal, nonbusiness use.

Retailing

In a marketing communications mix,__________refers to any short-term incentive that encourages the purchase or sale of a product or service.

Sales Promotion

Which of the following is true about the introduction stage of a new product.

Sales growth tends to be slow.

The Manufacturer of Two-In-One, a combination shampoo and conditioner, shrink wraps a 4-ounce foil packet of a smoothing hair pomade to its combo product. which of the following promotion tools is being used in this case?

Samples

The National Tree Company offers resellers half-price reductions on artificial Christmas trees if they purchase them in July. This is an example of a _________.

Seasonal discount

which of the following promotion mix approaches involves a producer promoting a product to differnent

Segmentation

which of the following needs in Maslow's hierarchy is generally satisfied last?

Self- actualization

Food Galore is a regional chain of supermarkets in the Midwest. The primary role of the staff is to restock shelves and operate cash registers. Customers locate, compare, and select their groceries and other sundry items. Food Galore is most likely a ________.

Self-service retailer

Which of the following is most likely a true statement about services?

Service industries vary greatly

A ______ refers to a group of retail businesses built on a site that is planned, developed, owned and managed as a unit.

Shopping center

Grace and her fiance visit several furniture stores in and around their hometown of Milwaukee. They use their smartphones to capture information about manufacturers and pricing, and ultimately decide to purchase their favorite items online. This is referred to as _____________.

Showrooming

Hallmark's classic "When you care enough to send the very best" slogan appeals to which need category in Maslow's hierarchy?

Social

Cosmetics retailer Lush knows that doing what is right benefits both customers and the company. Their premium beauty products are made by hand from the freshest possible natural ingredients. This is an example of the ___________ concept.

Societal Marketing

Which of the following statements about buying centers is true?

The buying center is not a fixed and formally identified unit. within a buying organization.

Which of the following best describes a company's business portfolio?

The collection of businesses and products that make up the company.

Silkskin Cosmetics is advertising its newest line of eye makeup. Made from all-natural ingredients, the products are hypoallergenic. Silkskin is selling the products in specially designed tubes that make application easier. Which of the following is a core customer value for Silkskin's line of eye makeup?

The desire for having beautiful eyes

Which of the following is a difference between the marketing concept and the selling concept?

The marketing concept focuses on customer needs, whereas the selling concept focuses on existing products.

Which of the following is a desirable quality for a brand name?

The name should translate easily Into foreign languages

Alice is shopping for a new car, and she has narrowed her decision to a Honda Accord and a Toyota Camry. Both sedans have similar features and prices, but Alice decides to purchase the Honda based on her intuition. Which of the following situations would most likely cause Alice to experience postpurchase dissonance?

The price of the Toyota Camry falls due to an increase in demand.

Which of the following is true of perceptual positioning maps?

They are used to analyze consumer perceptions of a brand relative to competing products.

Delta, an American video game manufacturer, targets teens between the ages of 13 and 18, providing free game trials and applications. The firm's marketing approach exemplifies ________ segmentation.

age and life-cycle

Which mode of transportation is best for carrying perishable goods to distant markets?

air carriers

Kelstone Developers is planning to build a new shopping mall that would require the partial acquisition of a nearby public park. Walking Green, an environmental group, challenges the plan citing environmental destruction. In response to the demands of Walking Green, Kelstone Developers promises to build a huge park-like walkway around the mall. Walking Green is an example of a(n) ________ in this scenario.

citizen-action public

Los Amigos, a new Mexican restaurant, has set up shop across the street from Hot Tamales and More. Which of the following pricing strategies will Los Amigos likely use?

competition- based

_________Pricing involves setting prices based on the expenses involved in producing, distributing, and selling a product plus a fair rate of return for a company's effort an risk.

competition-based

Which of the following sets the upper limit for a product's pricing?

consumer perceptions of value

In terms of packaging functions, Tiffany & Co.'s robins egg blue boxes_________.

create immediate consumer recognition

Craft Inc.'s Krayons is a multi-color chalk material that was released in the market over a century ago. Since the release, the company has had remarkable sales and Krayons has remained unchanged. However, over the last few years, sales of Krayons have been stagnant. Competitors have begun marking prices down, and increasing their advertising and sales promotions. Craft's Krayons is most likely in the ________ stage of the PLC.

decline

Corning produces Gorilla Glass screens that are used in the production of laptops, tablets, and smartphones. Corning promotes its product to final consumers to increase business demand for digital devices made with the specialized, toughened glass. This illustrates ________.

derived demand

The objective of ____________ research is to gather preliminary information that will help define the problem and suggest hypothesis.

exploratory

Consumers rely less on price to judge the quality of a product when they ________.

have prior experience with the product.

Safari Unlimited recently conducted national research to generate ideas for a new line of fatigues geared to women. The company uncovered a number of ideas about clothing and accessory preferences as well as important benefits such as built-in sunblock and durability. The Safari Unlimited product development team will most likely use ________ next to arrive at a realistic number of products for the new fatigues line.

idea screening

Moving products and materials from suppliers to the factory is known as ________ logistics.

inbound

Becca wants to buy a new coat. She asks her friends to recommend a store and/or a style of coat. She looks for sale advertisements for coats in newspapers and also visits nearby stores to check if she can find something in her budget. In this case, Becca is most likely in the ________ stage of the buyer decision process.

information search

Inglast, a chocolate producer, is faced with a class action suit when customers find pieces of plastic in boxes of cocoa powder. Inglast settles the case and then releases an advertising campaign to show the new and improved safety seals on all containers of cocoa powder. Which kind of advertisement has Inglast most likely used?

informative

Producers of convenience products and common raw materials typically seek___________distrubution---a strategy in which they stock their products in as many outlets as possible.

intensive

A(n) _________ is best suited for exploratory research.

observation

Bakeries and coffee bistros that offer pumpkin-flavored items only during the autumn season target their consumers primarily through ________ segmentation.

occasion

Window Concepts has introduced a new line of windows that offer the same benefits as solar panels in reducing heating and cooling costs in homes. The state-of-the-art windows will also contribute to the slowing of global warming while providing energy reliability. The company sends a team of representatives to the National Doors and Windows Trade Show to promote the new line of windows. Which promotion mix tool has Window Concepts used in this scenario?

personal selling

Clorox sells five major product lines including cleaning, household, lifestyle, professional, and international. Together the product lines make up Clorox's ________.

product mix

Chic Eyewear, a producer of designer eyeglass frames, promotes their new line in national fashion magazines. Chic Eyewear lists the select optical retailers that carry their line at the bottom of their ads. This is an example of a ________ strategy.

pull

Salespeople need to know how to ________ lead, that is identifying good leads and screening out poor ones, at the beginning of the selling process.

qualify

which of the following is the first step in developing an advertising program?

setting advertising objectives

Susan has been redecorating her new condo for a year. She is carefully selecting every item. Susan finds an oriental rug that matches her color scheme and decor perfectly and purchases it immediately without engaging in comparison shopping. This is an example of a(n)_________.

specialty product

A company regularly purchases cleaning supplies from a vendor and orders relatively consistent amounts of the same products on each purchase from the same vendor. This is an example of a(n) ________.

straight rebuy

Fads are characterized by their ________.

unusually high sales and rapid decline