BADM 315 Marketing Final
Which of the following is NOT a cue to consumers about whether a price is high or low?
"Coming Soon!" signs
A company faces fixed costs of $100,000 and variable costs of $8.00/unit. They plan to directly sell their product to the market for $12.00. How many units must they produce and sell to break even?
25,000
Which of the following is true about customer relationship management (CRM)?
CRM aims to maximize customer loyalty
Which of the following is true about the concentrated marketing strategy?
Companies that rely on a few segments for all of their business will suffer if a segment turns sour
Which of the following microenvironment actors has has the most influence on The Landing?
Competitors
_________________ involves actually distinguishing the firm's market offering to create superior customer value.
Differentiation
When marketers set low expectations for a market offering, they run the risk of _________.
Failing to attract enough customers
Which of the following companies uses a direct marketing channel?
Holly Wreaths, a store that sells Christmas ornaments to customers via its online click-to-order catalogs
Which of the following is a disadvantage of using information from internal databases?
Internal information may be incomplete or in the wrong form for making marketing decisions
Which of the following statements is true regarding the affordable method for setting a promotion budget?
It completely ignores the effects of promotion on sales.
Which of the following is NOT an accurate description of modern marketing?
Marketing emphasizes selling and advertising exclusively
Which of the following statements is true of social classes?
People within a social class tend to exhibit similar buying behavior
A particular firm added three new products earlier this year to increase variety for customers. Two of the products failed to reach the minimal sales quota. Which of the following is LEAST likely to have been the cause of their failure?
Product research was too extensive
Which of the following statements characterizes the introduction stage of the PLC?
Profits are nonexistent
Harris Brown, the marketing manager at a small retail chain, wants to assess his firm's strengths, opportunities, weaknesses, and threats. Which of the following would be best suited for his purpose?
SWOT analysis
Why is markup pricing most likely popular?
Sellers do not need to make frequent adjustments as demand changes.
Which of the following is true with regard to services?
Services are a form of product that consists of activities, benefits, or satisfactions offered for sale
The pharmaceuticals division of Omni Healthcare holds low market share in a high-growth market. According to the BCG matrix, the pharmaceuticals division of Omni can be classified as a ____________.
Star
A type of SBU that often requires heavy investment to finance their rapid growth
Stars
Which of the following is a disadvantage of using a differentiated marketing strategy?
The costs of doing business increase
For a market penetration-price strategy to succeed, which of the following is LEAST likely to be true?
The strategy can be changed quickly, to a higher-priced position, with no negative impact
Which of the following is most likely true about shoppers who prefer to shop at "lifestyle centers"?
They prefer upscale stores
Which of the following is an example of an indirect marketing channel?
Wine & Dine, which sells its picnic baskets to select novelty stores across the country
Glasis is a type of paint made specifically for use on cars. An ad in Motor Trend magazine advising consumers to request their auto body shops to use Glasis paint is an example of how a company uses _______________.
a pull strategy
The manufacturer of Crest toothpaste provides free samples of its toothpaste to dentists and encourages them to distribute the samples to their patients and to inform the patients about advantages of using Crest. The manufacturer of Crest toothpaste is using _____________.
a push strategy
Marketing communicators must know what ____________ and what __________.
audiences they wish to reach; responses they want
Brands in a market with many competitors and high advertising clutter must _____________.
be advertised more heavily to be noticed in the marketplace
A lumber mill takes in logs, turns them into 2 x 4's and other sizes needed for building construction. Wood chips created in the milling process are a(n) _________________ that can be sold.
by-product
Multiprint, a printer manufacturing firm, sells ink cartridges for each of its specific models. Only Multiprint cartridges are compatible with Multiprint printers, and no two of the firm's models share the same specifications. What type of pricing does Multiprint use?
captive product pricing
When Verizon Wireless began offering the iPhone, it used its "Can you hear me now?" slogan to attack AT&T's rumored spotty service. This example best illustrates _____________.
comparative advertising
When performing a break-even analysis, the manufacturer should consider all of the following EXCEPT _______________.
competitors' pricing
If a consumer purchases a new flat-screen "smart" television which can connect to services like Netflix and Pandora, what is the core customer value involved?
connection to entertainment and information
Logos, uniforms, brochures, and company trucks are all examples of ________ that can be used to help a company create a visual image for the public.
corporate identity
Which of the following is a major step in selecting advertising media?
determining reach, frequency, and impact
Upon determining who will want the product, retailers must determine in more detail how to _______________ in those markets.
differentiate and position themselves
The Bookworm began delivering books directly to customers through mail instead of selling through brick-and-mortar companies. This is an example of _______________.
disintermediation
Developing an effective integrated marketing mix program involves coordinating price decisions with product design, promotion, and _____________ decisions.
distribution
Which of the following is an advantage of adding new channels in a multichannel distribution system?
expanding sales and market coverage
Freight-absorption pricing is used for _______________.
holding on to increasingly competitive markets
Managers at the Imperial Hotel-Chicago complained that the chain's overall image was hurt because Imperial Hotel-Dallas was overcharging guests and providing poor service. The Imperial Hotel was experiencing ______________ conflict.
horizontal
Based on the target audience, the communicator makes decisions regarding what will be said, who will say it, when it will be said, where it will be said, and ___________________.
how it will be said
Which of the following is most likely gained by stores that cluster together?
increased customer pulling power
Reasons for a price increase all of the following EXCEPT
increasing supply of product
Which of the following is NOT a criterion a company will use to evaluate the major channel alternatives?
likeability
Titan Inc., an automobile manufacturer based in Utah, recently added two new models to its existing line of sedans in order to increase profits and satisfy dealers. This is an example of _________________.
line filling
For which product would a company use and exclusive distribution strategy?
luxury cars
Which of the following is one of the primary goals of reminder advertising?
maintain customer relationships
Whizz Corp. wishes to introduce a new hybrid car into mature markets in developed countries with the goal of gaining mass-market share quickly. Which of the following pricing strategies would help the firm meet its goal?
market-penetration pricing
Specialty stores carry _______________ with _________________ within them.
narrow product lines; deep assortments
Store retailers must master __________________, integrating store and online channels into a single shopper experience.
omni-channel retailing
Which of the following is a specialized and highly targeted media selection that an advertiser might use to reach smaller customer segments with personalized content?
online social networks
The McDonald's fast-food restaurant chain uses Ronald McDonald, a clown, as its primary character. Which message execution style is used by McDonald's?
personality symbol
Which of the following product mix pricing strategies involves setting process across and entire product range based on cost difference between the products, customer evaluations of different features, and competitors' prices?
product line pricing
In return for participating in Honda advertising and sales support programs, Honda dealerships are rewarded with payments or price reductions, which are known as ____________.
promotional allowances
Which of the following actions is a restaurant owner most likely take in order to reduce problems associated with service intangibility?
provide clean tablecloths and fresh napkins for each customer
Press conferences, speeches, store openings, special events, newsletters, and store magazines are examples of ________________ activities used by retailers to promote themselves.
public relations
The National Pork Board developed "Pork. The Other White Meat" campaign. The campaign provided nutritional information and pork recipes in an attempt to encourage people to view pork as a tasty alternative to poultry and fish. Which of the following functions was the goal of this public relations campaign?
rebuilding consumer interest in pork
A decision to position the product on high-performance quality will mean that the _________________.
seller must charge a higher price to cover higher costs
For which of the following products would the intensive distribution strategy most likely be used?
soft drinks
Which of the following is most likely and objective of informative advertising?
suggest new uses for a product
Snappy Cameras is launching a new advertising campaign to demonstrate the high quality of its digital cameras. Which media option would give the audience the most control over exposure to the ads and interactive capabilities?
the Internet
Conflict in the channel can be healthy because _______________.
the channel could become passive and non-innovative
Sam, the owner of a small company, learned that a competitor was planning to spend $150,000 on promotion in the next financial year. As soon as he learned this, Sam called his finance manager and said, "I want to spend $150,000 on promotion next year." In this case, which method of promotional budgeting is used by Sam?
the competitive-parity method
Segmented pricing is only effective when ________________.
the cost of segmenting does not exceed the revenue obtained from the price difference.
In designing the marketing channel, a company must balance customer needs and wants with _______________.
the firm's resources and skills to provide all the desired services
Competitors are most likely to react to a price change when _____________.
the product is uniform
In addition to the specific promotion tools, marketing communication requires ________________ for greatest impact.
the promotion, product, price, and place be coordinated
Which of the following brands most likely heavy advertising in order to be set apart from similar products?
undifferentiated brands
When KFC came into conflict with its franchisees over the brand's "Unthink KFC" repositioning, which emphasized grilled chicken over its traditional Kentucky fried chicken, KFC experienced _____________ conflict.
vertical
The total production costs at Kellner Machine Works are $87,000 out of which $45,000 represent fixed costs. Which of the following is representative of the variable costs incurred by the company?
$42,000
A marketer wanting to determine business behavior is most likely to ask which of the following questions?
What are the major influences on buyers?
A restaurant wants to use value-based pricing. It knows the costs of the ingredients in the food. It must also factor in _____________ in determining customer satisfaction and value.
atmosphere and decor of the restaurant
What causes a specific brand's life cycle to change quickly?
competitive attacks and responses
George is buying his first house. He has spent a month looking at houses and comparing attributes such as price and location. He has contacted several real estate agents to look at different types of houses. George is most likely exhibiting _____________.
complex buying behavior
Sanguine Services is a small company that uses a marketing strategy in which its limited resources are employed to target a large share of two small market segments. Sanguine most likely uses which of the following marketing strategies?
concentrated marketing
Neutron Inc. is conducting a business analysis to determine which of the many newly developed apps should be released. To estimate sales, the company must ______________.
consider the sales history for similar products
Elisandra, a marketing manager at a regional chain restaurant, has decided to sponsor a contest calling for customers to create commercials for the restaurant. Winning entries will be posted on the organization's home page. Elisandra's plan is an example of ________.
consumer-generated marketing
A marketer wants to increase its "share of customer." It can do this by offering a greater variety to customers, or by ___________.
creating programs to cross-sell and up-sell to market more products and service to existing customers
Within a company, who is most likely to perform strategic planning?
cross-functional teams of divisional managers closer to their markets
More and more, companies are shifting their brand management focus from brand profitability toward ________________.
customer management
Sally recently purchased Brand X lotion. In comparing her perception of how the lotion made her skin feel and look to her expectations about Brand X lotion, Sally was measuring her level of ________.
customer satisfaction
When Kraft focused on cost-cutting with its older and established brands, leaving them to wither without much investment or modification, Kraft decided to _____________ the older products.
harvest
Department stores such as Kohl's and JCPenny's practice high-low pricing by ________________.
having frequent sales days for credit-card holders
Service companies can differentiate their service delivery by ________________.
having more able and reliable customer-contact people
All of the following are difficulties associated with selling to government buyers EXCEPT __________________.
high advertising costs
BlueFin canned tuna has higher sales than its unbranded rival, even though the unbranded tuna costs $0.45 less per can than BlueFin tuna. BlueFin most likely has ________________.
high brand equity
Which of the following is a common reason for new product failure?
incorrect estimation of market size
Arrow is "a different kind of company, manufacturing a different kind of a car"; the RoadPro is "like nothing else." Statements such as these reflect a firm's ________.
positioning
A company's broad mission leads to ___________.
a hierarchy of objectives, including business objectives and marketing objectives
Sigma Inc., a software firm based in California, reordered 50 printers from the designated provider without any modifications. This is an example of ______________.
a straight rebuy
Electron Corp. purchased Proton Corp. by buying all of its assets and ownership equity. This is an example of a(n) ______________.
acquisition
A segment is less attractive if it _______________.
already contains many strong and aggressive competitors
Which of the following is LEAST likely a characteristic of business-to-business e-procurement
an increase in the derived demand
Price is important to managers __________________.
because a small percentage improvement in price can generate a large percentage increase in profitability
Which of the following refers to a marketing intelligence technique?
benchmarking competitors' products
The best business portfolio is the one that ___________.
best fits the company's strengths and weaknesses to opportunities in the environment
The collection of businesses and products that make up a company is called its ______________.
business portfolio
P&G "Tide Loads of Hope" program provides mobile laundromats and loads of clean laundry to families in disaster-stricken areas. This is an example of ______________ marketing.
cause-related
FedEx offers its customers fast and reliable package delivery. When FedEx customers weigh these benefits against the monetary cost of using FedEx along with any other costs of using the service, they are acting upon ________.
customer-perceived value
Delta Motorworks markets its cars based on the age, gender, and income of its customers. Which of the following types of market segmentation is evident here?
demographic segmentation
Demand for outboard motors depends on consumers purchasing fishing boats. This is an example of _____________ demand.
derived
P&G has sold off a number of lesser or declining brands such as Oxydol detergent and Jif peanut butter. In these examples, management decided to ______________ the products.
drop
The business marketer normally deals with ___________ than the consumer marketer does.
far fewer but far larger buyers
Firms use competitive marketing intelligence to ________.
gain early warnings of competitor moves and strategies
The environmental sustainability movement encourages companies to ___________.
go beyond government regulations
A manufacturing plant is designed to produce 2000 flat-screen TV's per day. But demand is higher than that. If the company tries to increase its production to 2500 TVs per day, the average costs will __________ because _______________.
increase; the plant becomes inefficient
The Pure Drug Company produces insulin, a product with a very stable demand. Even though the price changed several times in the past two years, the demand for Pure Drug's insulin remained relatively unaffected. In this instance, the demand for insulin is representative of __________ demand.
inelastic
Through ________, a service firm orients and motivates its customer-contact employees and supporting service people to work as a team to provide customer satisfaction.
internal marketing
Which of the following is NOT a method of gathering good marketing intelligence?
interviewing competitors' employees to learn as much "inside information" as possible
Kinger Auto specializes in selling low-quality used vehicles that are priced a good deal lower than other used cars. Which of the following value propositions is evident here?
less for much less
The managers of Alfredo's Pizza, a popular pizzeria in New York City, have been increasingly encouraging senior citizens to visit the pizzeria's numerous outlets spread across the city. Anticipating a rise in the population of senior citizens in the area, the management of Alfredo's Pizza is seeking to tap into this promising segment that consists of retired, affluent consumers. In this instance, the managers of Alfredo's Pizza are anticipating company growth through ____________.
market development
An organic farmer has identified three distinct groups that might be interested in his products: vegetarians, health-conscious individuals, and people identified as trendsetters who try out new products in the market before others. These three groups are examples of ________.
market segments
Jonathan works for a firm that assists companies in promoting, distributing, and selling their products to end consumers. The firm Jonathan works for is a ___________.
marketing intermediary
Which of the following terms refers to sellers being preoccupied with their own products and losing sight of underlying consumer needs?
marketing myopia
Digital and social media's role in business-to-business marketing enhances all of the following EXCEPT ______________.
meeting in person with customers at trade shows or conferences
The winning value proposition would be to offer _____________.
more for less
A good design begins with ______________.
observing and understanding customers and shaping their product-use experience
Rachel loves fashion and is always seen wearing the trendiest fashion outfits. She actively shares her knowledge with a wide group of friends and colleagues about where to shop for the latest fashion at great deals. Most of her friends and colleagues follow her fashion tips. Rachel portrays the image of a(n) _____________.
opinion leader
The research plan _____________.
outlines sources of existing data and spells out the specific research approaches
The information sources that are the most effective at influencing a consumer's purchase decision are __________. These sources legitimize or evaluate products for they buyer.
personal
All of the following are ways a company can differentiate itself or its product EXCEPT ___________________.
price
Which of the following plays the most important role in government buying?
price
Ross Stuart is a purchasing manager in a Texas-based manufacturing company. He sources most of the raw materials needed by his company from Kramer Corp. However, Ross is unhappy with Kramer's prices. Additionally, he thinks that the quality of the raw materials supplied by Kramer is substandard. Which of the following stages in the business buying process is Ross' company currently in?
problem recognition
In the marketing mix, design, packaging, services, and variety can be categorized under ____________.
product
Chronos Inc. designs and markets different brands of cycling watches. Each brand has a single unique feature: the Chronos Cosmos has a heart rate monitor, the Chronos Acumen is designed for older cyclists who prefer a large display, and the Chronos Aegis has a GPS function. Which of the following is evident here?
product differentiation
Henry Ford's philosophy was to perfect the Model-T so that its cost could be reduced further for increased consumer affordability. This reflects the ________ concept.
production
Companies can succeed against their competitors by all of the following EXCEPT ______________.
providing the same product as the competition
A shoe manufacturing company uses ads featuring the members of a country music band with the hope that the band's fans will see them wearing the company's shoes and hence purchase the same brand of shoes. The shoe company believes that the band portrays the image of a _____________ to the band's fans.
reference group
The experience curve reveals that ________________.
repetition in production enhances efficiency
In ____________, companies out their purchasing requests online and invite suppliers to bid for the business.
reverse auctions
Which of the following best characterizes the decline stage of product development?
sales and profits decline
While Jenkins Stationeries was selling branded stationery at premium prices, Pembroke Stationeries, a store across the street, was selling the same branded stationery at discount prices. Which of the following value propositions best describes Pembroke's product positioning?
same for less
Mission statements should be defined in terms of
satisfying basic customer needs
Mark has long supported a particular brand of footwear and has always bought that brand. Recently, the footwear manufacturer was embroiled in a controversy for using child labor at its manufacturing plants. Mark doubts the news reports and continues to purchase the same brand of footwear. It is most accurate to say that Mark displays ______________.
selective distortion
A hickory rocking chair, handmade by an Amish woodcarver in Lancaster, Pennsylvania, from locally grown wood, is an example of a _______________.
speciality product
A company selling child-care products ran a television ad depicting women as being primarily responsible for childcare. Many women viewers considered this regressive, alleging that the ad failed to recognize the much more diversified role of women in today's world. This is an example of __________________.
stereotyping
Sparex Inc. is a manufacturer of metal bolts that are used by Boilex Inc. to manufacture heavy machineries. In this instance, Sparex acts as a ____________.
supplier
Cathy's Clothes is a small yet successful retail chain that sells women's clothing and accessories with a focus on buyers who have relatively modest means. For this specific purpose, the firm has rolled out several marketing initiatives aimed at women of a specific demographic. This is an example of ________.
target marketing
Once the prototype of Wainwright Industries' new riding lawnmower, made especially for women, passes product tests, the next step is _____________.
test marketing
Buyer responses are influenced by marketing stimuli. The responses to the stimuli include all of the following EXCEPT _____________.
the "why" regarding the responses
The research plan should be presented in a written proposal. The proposal should include all of the following EXCEPT ____________.
the predicted results
Several structural factors affect long-run segment attractiveness. These include all of the following EXCEPT __________________.
the segment does not match the company's long-run objectives
Many firms today use RFID technology to __________.
track products through various points in the distribution channel
Product planners need to consider products and services on three levels. At the second level, product planners must _______________.
turn the core benefit into an actual product
A successful CRM program is expected to help a company achieve all of the following EXCEPT __________.
understand the competition better
According to the five-step model of the marketing process a company should ________________ before designing a customer-driven marketing strategy.
understand the marketplace and customer needs and wants
Rex Steelworks makes steel sheets which the firm markets and sells to companies all over the world. Which of the following marketing strategies is most suitable for Rex Steelworks?
undifferentiated marketing
Carrie tends to purchase various brands of bath soap. She has never been loyal to a specific brand; instead she does a lot of brand switching. Carrie exhibits ____________.
variety-seeking buying behavior
Market targeting can bring up concerns about privacy and abuse in all of the following ways EXCEPT ________________.
when customers opt in to receive focused content