Marketing 311 Chapter 5, Mktg Ch 9, MKTG Chapter 8, MKTG Ch 11, MKTG Ch10, Mktg Ch 17, Mktg Ch14, Marketing 311 Chapter 7, Chapter 6: Customer Value- Driven Marketing Strategy, Chapter 16: Sustainable Marketing, Marketing 12 and 13, Product Mix, Prin...

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Product Mix

All products that an organization sells.

Which of the following is the total combined customer lifetime values of all a company's current and potential customers?

Customer of Equity

The process by which the use of a product spreads throughout a population is __________.

Diffusion

A good brand name should most likely be ________. A) trendy B) complex C) long D) conventional E) distinctive

Which of the following refers to a cultural factor in the context of segmenting international markets? A) receptivity of foreign firms B) economic development of the country C) population income levels D) stability of the government E) values and attitudes

The strongest brands do not engage customers on a deep, emotional level.

False

Which generation of consumers often has a cynical attitude toward marketing?

Generation X

Which of the following is the second step in the target marketing process?

Targeting

Customer Satisfaction

The extent to which a product's perceived performance matches a buyer's expectations.

Should your product go to market right now?

We propose that the client wait 1 to 2 years to take this product to market.

Traditional advertising

Which of the following has NOT contributed to the deeper, more interactive nature of today's customer relationships? A) e-mail B) Web sites C) online social networks D) traditional advertising E) video sharing

Brand ________ refers to how highly consumers regard and respect the brand. A) esteem B) conformance C) differentiation D) relevance E) knowledge

In the context of the AIO dimensions for measuring consumers' lifestyles, "A" stands for ________. A) activities B) achievements C) admirations D) attitudes E) associations

Individuals and households that buy or acquire goods and services for personal consumption make up the ________. A) consumer market B) market offering C) market mix D) subculture E) social class

________ are minor stimuli that determine where, when, and how a person responds to an idea. A) Cues B) Drives C) Reinforcers D) Cognitions E) Impulses

A hickory rocking chair, handmade by an Amish woodcarver in Lancaster, Pennsylvania, from locally grown wood, is an example of a ________. A) convenience product B) capital item C) service D) specialty product E) product attribute

According to Maslow's hierarchy of needs, which of the following is the LEAST pressing need? A) physiological needs B) social needs C) esteem needs D) self-actualization needs E) safety needs

Life-stage changes usually result from ________. A) birthdays B) mentors C) friends D) life-changing events E) siblings

raw materials

unprocessed products that become part of an organization's finished product.

Which customer question is answered by a company's value proposition?

"Why should I buy your brand rather than a competitor's?"

The __________ product is the physical good or delivered service that supplies the desired benefit.

Actual Product

Advantages of manufacturer's brands

Ads, attract new customers, enhance dealer prestige, rapid delivery and carry less inventory, and if the dealer carrier poor quality brand, the customer may simply switch brands and remain loyal to the dealer.

The final step in the marketing process is ________.

Capturing Value From Customers

Which of the following describes the strategy of establishing thought leadership in the form of bylines, blogs, commenting opportunities, videos, sharable social images, and infographics?

Content marketing

Which of the following describes a consumer good or service that is usually low priced, widely available, and purchased frequently with a minimum of comparison and effort?

Convenience product

shopping products

Items that are typically purchased through comparison. Customers generally prefer having a choice and alternatives when purchasing these types of products. Cars, clothing.

Some combination of products, services, information or experiences offered to a market to satisfy a need or want

Market Offering

What is the creation of many consumer groups due to a diversity of distinct needs and wants in modern society?

Market fragmentation

Product Line

A group of closely-related product items.

Butterfly

A highly profitable, short-term customer is a ________. A) true friend B) butterfly C) stranger D) barnacle E) true believer

Digital catalogs eliminate printing and mailing costs.

Direct and digital marketing involves engaging directly with carefully targeted individual consumers and customer communities to both obtain an immediate response and build lasting customer relationships.

E-mail can be the ultimate direct marketing tool, as it lets marketers send highly targeted, tightly personalized, relationship-building messages.

For customers, the benefits of direct marketing are being able to shop online anytime and anywhere.

Marketers often involve actual customers in product testing.

The federal government may prevent a company from adding products through acquisitions if acquisition threatens to lessen competition.

The percentage-of-sales budget is based on the availability of funds rather than on opportunities.

The relative power of buyers affects segment attractiveness.

To avoid too few new product ideas and the failure of many good ideas, management should implement an innovation management system that collects, reviews, evaluates, and manages new product ideas.

To the extent that a company can differentiate and position itself as providing superior customer value, it gains competitive advantage.

While many consumers welcome the convenience that mobile marketing ads offer, marketers still must be smart about how they engage people on mobile devices.

Customer Satisfaction

The extent to which a product's perceived performance matches the buyer;s expectations

The Production Concept

The idea that consumers will favor and products that are available and highly affordable and that the organization should therefore focus on improving production and distribution efficiency. While useful in some situations, the production concept can lead to marketing myopia. Companies adopting this orientation run a major risk of focusing too narrowly on their own operations and loosing sight of the real objective - satisfying customer needs and building customer relationships.

Product Line Depth

The number of product items in a product line

Share of Customer

The portion of the customer's purchasing that a company gets in its product categories

Share of Customer

The portion of the customer's purchasing that a company gets in its product categories.

Core Product

The product's primary purpose. What customers are essentially purchasing. A car as a transportation vehicle.

Markets

The set of all actual and potential buyers of a product or service.

Marketing Mix

The set of marketing tools a firm uses to implement its marketing strategy is called the ________. A) promotion mix B) product mix C) marketing mix D) TQM E) marketing effort

Marketing Mix

The set of marketing tools the firm uses to implement its marketing strategy. Classified into four broad groups (The four-P's of Marketing): Product, Price, Place, and Promotion. A firm must blend each marketing mix tool into a comprehensive Integrated Marketing Program that communicates and delivers the intended value to chosen customers.

Consumers who have no past experience with a product are more likely to judge it by its price.

True

Customer-perceived value is defined as the customer's evaluation of the perceived difference between all the benefits and all the costs of a marketing offer relative to those of competing offers. T/F

True

Good service recovery can turn angry customers into loyal ones.

True

If a company faces competition, its demand at different prices will depend on whether competitors' prices stay constant or change with the company's own prices.

True

Launching a fighter brand is an effective way to deal with a situation in which the market segment being lost is price sensitive and will not respond to arguments of higher quality.

True

Online flash sales are used to create buying urgency and make buyers feel lucky to have gotten in on the deal.

True

Price decisions must be coordinated with product design, distribution, and promotion decisions to form a consistent and effective integrated marketing mix program.

True

Prices have a direct impact on a firm's bottom line.

True

When a manufacturer seeks a market for by-products and accepts a price that covers more than the cost of storing and delivering those by-products, the manufacturer is able to reduce the main product's price to make it more competitive.

True

A market-coverage strategy in which a firm decides to target several market segments and designs separate offers for each is known as ________. A) mass marketing B) differentiated marketing C) concentrated marketing D) individual marketing E) cross-marketing

Which of the following refers to a technique that divides consumers into segments on the basis of how they act toward, feel about, or use a good or service?

Behavioral segmentation

Customer-Generated Marketing

Brand exchanges created by consumers themselves - both invited and uninvited - by which consumers are playing an increasing role in shaping their own brand experiences and those of other consumers.

When you create a __________ for a product or service, you need to develop a distinctive image that captures its character and benefits.

Brand personality

Choosing a Value Proposition

Company must decide how it will differentiate and position itself int he marketplace. A brand's value proposition is the set of benefits or values it promises to deliver to consumer's to satisfy their needs.

Of the following, which is the most important concept of modern marketing?

Customer Relationship Management

Which of the following promotional tools is the most effective in building up buyers' preferences, convictions, and actions? A) mass-market advertising B) sales promotion C) segmented advertising D) personal selling E) public relations

Online companies include all of the following EXCEPT ________. A) content sites B) online social media C) search engines and portals D) transaction sites E) brick-and-mortar

At which stage of the positioning process would a company engage in a repositioning strategy?

Evaluate responses and modify as needed

Customer-Perceived Value

FedEx offers its customers fast and reliable package delivery. When FedEx customers weigh these aforementioned benefits against the monetary and psychic costs of using the service, they are acting upon ________. A) loyalty B) relationship marketing C) customer-perceived value D) social relationships E) a societal marketing campaign

The __________ group of people to adopt a new product is known as innovators.

First

Frequency marketing program

Frequent flyer programs offered by airlines are an example of a ________. A) frequency marketing program B) basic customer relationship C) club marketing program D) consumer-generated marketing program E) structural benefit provided for top customers

Which of the following refers to the group of consumers born between 1965 and 1978?

Generation X

Branding decisions

Giving a firm's product a name, term, symbol, design, etc that differentiates them from competitor alternatives.

a. Customer Satisfaction b. Perceived value c. Customer relations

How do you build profitable relationships and create customer delight?

A perceptual map is a(n) __________.

If you want to visually describe where brands are "located" in consumers' minds relative to competing brands, you would create a ___________.

Augmented Product

Includes all of the additional options and services that are part of the product offering. Lawyers want a BMW. Others want a warranty for their iPhone. The grand scale.

Which of the following is true of a territorial sales-force structure?

It clearly defines each salesperson's job and establishes accountability.

What do companies call a set of benefits that they promise to consumers to satisfy their needs?

Market offering

States of felt deprivation

Needs

Which of the following would make a segment less attractive to enter?

New entrants finding it easy to enter the segment

Market myopia

Paying more attention to products instead of the benefits produced

What is the name for a strategy that influences how a particular market segment perceives a good or service in comparison with the competition?

Positioning

Adjustments to Product Items, Lines, and Mixes (3)

Product modification, product repositioning, and product line or extension.

Which concept holds that firms must strive to deliver value to customers in a way that maintains or improves the consumer's and society's well-being?

Social Marketing

Which statement is most likely true about the affordable method of setting an advertising budget?

Spending on advertising is calculated after operating expenses, and capital outlays are deducted from total revenues.

Mission statement

Statement of the organization's purpose (Always from the view of the customers)

Cathy's Clothes is a small retail chain successfully selling women's clothing and accessories with a profitable focus on buyers who have relatively modest means. This is an example of ________.

Target Marketing

Selection of which segments of a population of customers to serve is called _________.

Target Marketing

High Customer Equity

The ultimate aim of customer relationship management is to produce ________. A) high customer equity B) high current market share C) steady sales volume D) a reliable database E) satisfied customers

According to the simple five-step model of the marketing process, a company needs to _______ before designing a customer-driven marketing strategy.

Understand the marketplace and customer needs and wants.

ROI

Used to prove you deserve the company investment

failing to attract enough customers

When marketers set low expectations for a market offering, they are most likely to run the risk of which of the following? A) disappointing loyal customers B) decreasing customer satisfaction C) failing to attract enough customers D) failing to understand their customers' needs E) incorrectly identifying a target market

Freight-absorption pricing is used for ________. A) penetrating international markets B) generating customer buzz about new products C) holding on to increasingly competitive markets D) generating quick profits to offset input costs E) maintaining quality service records

If demand changes greatly with a small change in price, the demand is ________. A) variable B) inelastic C) derived D) elastic E) negative

A person's occupation has no effect on the goods and services that she buys.

false

Children exert little influence on family buying decisions.

false

Consumers can easily explain what influences their purchases.

false

Habitual buying behavior involves consumers searching extensively for information about brands and evaluating brand characteristics.

false

People differ greatly in their readiness to try new products. In each product area, there are "consumption pioneers," also referred to as lagging adopters.

false

Awareness is the __________ stage in a consumer's adoption of a new product.

first

Segmentation is the __________ step in the target marketing process.

first

Byron Tied 2 Bowties groups its customers by regions in the United States, such as Midwest, Northeast, and Southwest. For each region, Byron Tied 2 Bowties creates a different set of advertisements and promotions. On which of the following segmentation variables does the firm divide its market?

geography

A company can differentiate itself from competitors using symbols such as McDonald's golden arches, Twitter's bird, and the Nike swoosh. Which type of differentiation is this?

image differentiation

The principle of ________ marketing requires that a company continuously seek real product and marketing improvements.

innovative

Which technique is used by firms to deliver a unified and consistent image about their organizations and brands to consumers?

integrated marketing communications

Greater consumer control means that companies must rely more on marketing by ________ than by ________.

interaction; intrusion

Which of the following best describes the term "Madison and Vine"?

merging advertising with entertainment

country of origin effect

people develop an impression of a product based on where it is from

Having decided to use primary sources to obtain data, you need to decide what sort of primary sources you will use. The following three options are suggested by the researchers within the market research department. Choose the one you think best suits your research objectives.

performing a survey that focus on consumer knowledge, attitudes and prefereces towards

Which of the following promotion tools will most likely make a consumer feel the need to listen and immediately respond to a seller?

personal selling

casual

price hike high heels

Product mix width

the number of product lines an organization offers. Diversifies risk and capitalizes on established reputations.

The distribution strategy during the decline stage of PLC involves building more intensive distribution networks.

F; during the growth stage

After entering a market by using market-penetration pricing, a company can easily raise its price and maintain its market share.

False; low price must be maintained

Dynamic pricing is least prevalent online.

False; most prevalent online

Co-branding occurs when retailers and wholesalers create their own store brands.

False; store-branding

A company should strive to build a brand name that becomes identified with the product category, as Scotch Tape did.

False; that is identified with benefits, beliefs, and values

Though often criticized, the selling concept is particularly appropriate and effective with which of the following types of products?

Unsought

Internal Databases

Use info from company - cheap/available

According to the model of buyer behavior, which of the following is one of the two primary parts of a "buyer's black box"? A) technological stimuli B) buyer's decision process C) buyer's spending habits D) social stimuli E) promotion stimuli

What are the two dimensions of product quality? A) consistency and level B) performance and conformance C) design and innovation D) conformance and style E) feature and design

What is the most important consumer buying organization in society? A) family B) social class C) membership group D) subculture E) reference group

Which of the following involves costs that most likely occur during the commercialization stage of new product development? A) building or renting a manufacturing facility B) paying target customers for product feedback C) determining the product's planned distribution D) developing a prototype of the product E) identifying target markets

private brand

a brand name owned by a wholesaler or a retailer. Also known as a private label or store brand

Which of the following is an example of branded entertainment?

a company placing its product in a movie scene

JoAnn Fabrics Inc. has created a new combination of colors and fabric types. The firm wants to know how consumers will perceive the new product. The firm is concerned with the product ________. A) idea B) displacement C) image D) activation E) placement

The use of short-term incentives to encourage the purchase or sale of a product or service is called ________. A) direct and digital marketing B) sales promotion C) personal selling D) public relations E) publicity

________ is a pricing strategy in which the company sets up two or more clearly identified geographic regions within which all customers pay the same total price. A) Freight-absorption pricing B) Zone pricing C) Uniform-delivered pricing D) FOB-origin pricing E) Basing-point pricing

________ is the process by which people select, organize, and interpret information to form a meaningful picture of the world. A) Motivation B) Perception C) Dissonance D) Learning E) Self-actualization

________ pricing refers to offering just the right combination of quality and gratifying service at a fair price. A) Markup B) Good-value C) Cost-plus D) Target profit E) Break-even

Consumer products refer to ________. A) products purchased by consumers for further processing or for use in conducting a business B) products and services bought by final consumers for personal consumption C) primarily intangible offerings from marketers D) raw materials as well as manufactured materials and parts E) products that aid in the consumer's production or operations, including installations and accessory equipment

Consumers learn about new products for the first time and make the decision to buy those products during the ________. A) need recognition stage B) adoption process C) evaluation process D) trial process E) quality assessment stage

Developing a product or service involves defining the benefits that it will offer. These benefits are communicated and delivered by ________. A) product labels B) product attributes C) support services D) product packaging E) branding

Dips in the economy and the instant price comparisons made possible by the Internet have contributed to ________. A) decreased consumer price sensitivity B) increased consumer price sensitivity C) a less direct relationship between supply and demand D) low brand equity for luxury goods E) decreased brand loyalty

Extel Inc., a home appliance manufacturer, uses sales representatives to sell its products to wholesalers and individual customers. This is an example of ________. A) sales promotion B) personal selling C) public relations D) direct and digital marketing E) advertising

Failure to enter the current price into a retailer's system may result in charges of ________. A) predatory pricing B) scanner fraud C) retail maintenance pricing D) discriminatory pricing E) price fixing

Family is one of the ________ factors that influence consumer behavior. A) regional B) social C) personal D) psychological E) business

Federal legislation on price fixing requires that sellers set their prices ________. A) based on their fixed and variable costs B) without communication from competitors C) to achieve a specific profit margin D) without the intention of cutting into competitors' profits E) consistently throughout a region

The advertising slogan, "We bring good things to life," used by General Electric to market itself, is an example of ________ marketing. A) person B) corporate image C) internal D) place E) niche

The discount offered by Glamor Gifts to customers who bought Valentine-themed merchandise the week following Valentine's Day is an example of a ________. A) functional discount B) seasonal discount C) trade discount D) cash discount E) time-based discount

Under oligopolistic competition ________. A) the market consists of a single dominant seller B) the market consists of numerous small sellers C) the market consists of many buyers and sellers who trade over a range of prices rather than a single market price D) sellers are typically unresponsive to competitors' pricing strategies and marketing moves E) the market consists of only a few large sellers

Which figures does the company use to analyze the new product's financial attractiveness? A) size of population B) expected market share C) number of competitors D) anticipated number of options E) sales and costs

Personality is a person's pattern of living as expressed in his or her psychographics.

false

Social class is based on shared value systems and common life experiences and situations.

false

Subcultures consist only of religious groups.

false

________ involves the use of a successful brand name for new or modified products in a new category. A) A line extension B) A product line C) A brand extension D) Co-branding E) Cannibalization

A company that sells only one product line to one industry with customers in many locations would typically use a ________.

territorial sales-force structure

In the competitive-parity method of setting an advertising budget, the budget is set based on ________.

the amount spent by similar companies in the same industry

shipping package

the container used for transportation and storage functions

What is market fragmentation?

the creation of many consumer groups due to a diversity of distinct needs and wants in modern society

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

Greg Williams now has the buying power to purchase the computer system he has wanted for the last six months. Greg's want now has become a(n) ________.

Demand

Integrated marketing communications calls for recognizing all communications channels where the customer may encounter the company and its brands.

Interactive TV (iTV) lets viewers interact with television programming and advertising.

Pricing across a product mix is difficult because various products have related demand and costs, and products face different degrees of competition.

True

Pricing strategies tend to change and evolve as the average product passes through its life cycle.

True

Product line filling is overdone if it results in cannibalization and customer confusion.

True

convenience products

inexpensive items that customers tend to exert little shopping effort in purchasing. convenience of the purchase is typically important. Tide laundry detergent would be this type of product. Cuz if they are all out of it at the store, chances are you won't drive 10 miles to find it elsewhere.

5 benefits of product lines

Advertising Economies, package uniformity, standardized components, efficient sales and distribution, equivalent quality.

Consumers today receive commercial messages from a broad range of sources. However, consumers ________ the way marketers do. A) don't distinguish between message sources B) never pay attention to sales promotions C) don't care about buzz marketing D) are not able to block out messages E) block out all media messages

Different soft drinks target different personalities. This is an example of ________ segmentation. A) psychographic B) demographic C) occasion D) life-cycle E) benefits

Though the ________ method of setting an advertising budget is simple to use and helps management think about the relationships among promotion spending, selling price, and profit per unit, it wrongly views sales as the cause of promotion rather than the result. A) percentage-of-sales B) integrated C) competitive-parity D) objective-and-task E) regression

Using a(n) ________ strategy, the producer directs its marketing activities toward final consumers to induce them to buy the product. A) pull B) blitz C) push D) buzz E) pulse

Which of the following is a drawback of local marketing? A) Local marketing increases manufacturing costs by reducing the economies of scale. B) Local marketing requires specialization that is difficult to identify. C) Local marketing is not profitable for most small firms. D) Local marketing cannot accommodate the needs of modern buyers who are technology savvy. E) Local marketing almost always results in brand dilution.

With direct marketing, companies can interact with customers in all of the following ways EXCEPT ________. A) in person B) learning more about customers' needs C) personalizing products and services D) answering questions from customers E) by phone or online

________ segmentation assumes that nations close to one another will have many common traits and behaviors. A) Geographic B) Occasion C) Psychographic D) Benefit E) Demographic

Which of the following is the set of benefits a company promises to deliver the customer to satisfy their needs?

A Value Proposition

Inside-out

A firm that uses the selling concept takes a(n) ________ approach. A) outside-in B) customer-driven C) inside-out D) marketing concept E) customer service

What is a prototype?

A test version of a proposed product

Internet

A vast public web of computer networks that connects users of all types all around the world to each other and to an amazingly large information repository.

Strategic planning

Align organization's goals and capabilities with a changing market conditions

Benefits of Product line depth

Attracts buyers with different preferences, increases sales/profits by further market segmentation, capitalizes on economies of scale. Evens out seasonal sales patterns.

63) In the communication process, the more the sender's field of experience ________ that of the receiver, the more ________ the message is likely to be. A) varies from; distinguishable B) overlaps with; effective C) connects with; ineffective D) coincides with; creative E) departs from; direct

A ________ is an unsolicited, unwanted commercial e-mail message that clogs up e- mailboxes. A) catalog B) spam C) podcast D) tweet E) blog

A(n) ________ is designed to present brand content that engages consumers and creates customer-brand community. A) podcast B) branded community Web site C) search engine D) digital catalog E) online magazine

All of the following are forms of traditional direct marketing EXCEPT ________. A) face-to-face selling B) point-of-purchase promotion C) telemarketing D) direct-mail marketing E) kiosk marketing

Nonpersonal communication channels include major media, ________, and events. A) sales calls B) atmospheres C) buzz marketing D) word-of-mouth influence E) phone calls

Online ads that incorporate animation, video, sound, and interactivity are called ________. A) search-related ads B) rich media ads C) content-based ads D) digital catalogs E) parody ads

The key is to ________ traditional mass media with online, mobile and social media to best engage customers, communicate the brand message, and enhance the customer's brand experiences. A) prioritize B) integrate C) utilize D) design E) spend on

The six stages consumers normally pass through on their way to making a purchase are known as the ________ stages. A) personal-readiness B) buyer-readiness C) objective-readiness D) market-readiness E) supplier-readiness

The winning value proposition would be to offer ________. A) more for the same B) more for less C) more for more D) same for less E) same for more

To ________, a marketer would most likely ask target audience members whether they remember the message, how many times they saw it, and what points they remember. A) select a message source B) collect feedback C) select a message channel D) plan a media purchase E) design a marketing appeal

Which of the following is NOT a deception or fraud concern for Internet users and marketers? A) phishing B) viral marketing C) malware D) cyber spying E) spyware

Which of the following is a major form of direct-response television marketing? A) telemarketing B) interactive TV C) social media D) digital catalog E) podcast

Which of the following is the fastest growing form of direct marketing? A) ambush marketing B) digital marketing C) direct-mail marketing D) kiosk marketing E) telemarketing

________ are designed to engage consumers in interactions that will move them closer to a direct purchase or other marketing outcome. A) Online magazines B) Marketing Web sites C) Search engines D) Digital catalogs E) Podcasts

A market segment that is large enough or profitable enough to serve is ________. A) measurable B) accessible C) substantial D) profitable E) differentiable

Buyers with low sales resistance can often be tempted by all the following common features of infomercials EXCEPT ________. A) elaborately staged demonstrations B) "while they last" time limitations C) free shipping D) smooth-talking hosts E) claims of drastic price reductions

Mobile marketing is used to enrich the brand experience, stimulate immediate buying, or ________. A) decrease advertising costs B) help friends contact friends C) make shopping easier D) create new customer relationships E) find new suppliers

Runners can compare performances, set up profiles, meet new people, and share information on Nike's Nike+ Web site. Nike+ is an example of a(n) ________. A) podcast B) blog C) online community D) content sponsorship program E) kiosk

The manufacturer of Crest toothpaste provides free samples of its toothpaste to dentists and encourages them to distribute these samples to their patients and to inform the patients about advantages of using Crest. The manufacturer of Crest toothpaste is using ________. A) sales promotion B) direct marketing C) a push strategy D) a pull strategy E) a vertical diversification strategy

To communicate effectively, a marketing communicator should most likely ________. A) ensure that the encoding and decoding processes are different B) encode and decode the message personally and frequently C) understand the consumer's field of experience D) foresee unplanned static or distortion E) use familiar words and symbols

Which of the following is LEAST relevant when a firm evaluates different market segments? A) segment size and growth B) company resources C) segment structural attractiveness D) core competencies of competitors E) company objectives

________ is the process by which firms interact one-to-one with masses of customers to design products and services tailor-made to individual needs. A) Product diversification B) Micromarketing C) Mass customization D) Differentiated marketing E) Local marketing

Reasons for repositioning a product

Changing demographics, declining sales, changing social environment (example: euro disney changed to Disney paris)

Communication Adaptation

Changing for cultures

Adapted Global Market

Changing market for different cultures

Cultural

Common set of beliefs

________ are certificates that save buyers money while they purchase specified products.

Coupons

________ is one of the best ways to increase share of customer.

Cross-selling

The ultimate aim of customer relationship management is to produce ________.

Customer Equity

98) ________ marketing tailors brands and promotions to the needs and wants of regional customer groups, such as cities, neighborhoods, and even specific stores. A) Undifferentiated B) Differentiated C) Niche D) Local E) Individual

A ________ refers to the way a product is defined by consumers on important attributes— the place the product occupies in consumers' minds relative to competing products. A) core competency B) value stream C) value proposition D) product position E) product specification

Among the buyer-readiness stages, the first stage is ________. A) preference B) knowledge C) liking D) awareness E) insistence

Subcultures include nationalities, religions, geographic regions, and ________. A) genders B) ages C) professions D) racial groups E) income levels

Using the AIDA model, an effective marketing message should get attention, hold interest, ________, and obtain action. A) create differences B) enhance doubts C) double interest levels D) arouse desire E) minimize dismay

Which of the following is one of the four major communication functions? A) coordination B) distribution C) noise D) response E) preference

Which of the following is the most logical budget-setting method? A) percentage-of-sales method B) affordable method C) competitive-parity method D) objective-and-task method E) push method

________ consists of arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers. A) Mass customization B) Targeting C) Segmentation D) Differentiation E) Positioning

Concept testing works best with people who are familiar with the new idea and the new product's purpose. This generally includes top management, the sales force, and research and development.

F; works best with consumers

The product concept says that a company should do which of the following?

Focus on making continuous product improvements

Which of the following statements is most likely true of team selling?

It can unearth problems and provide solutions that no individual salesperson could.

Types of Product Modification

Quality, Function, and style

A firm can obtain new products through acquisition or new product development efforts.

Advertising Age, a magazine for advertising professionals, recently gave its Ad Agency of the Year award to ________.

The Consumer

Product

The Set of features, functions, and benefits that customers purchase. May consist of a combination of tangible and/or intangible attributes

Business Products

These are primarily purchased in order to facilitate businesses in their quest to achieve organizational goals. Usually purchased by a business or organization.

Which of the following is true of consumers in the new marketing communications model?

They are better equipped to find product and brand information on their own.

Which of the following is most likely true about salespeople in a field sales force?

They build relationships with customers by traveling to see them.

Customer Relationships

Which of the following is most essential to any definition of marketing? A) demand management B) the production concept C) customer relationships D) making a sale E) making a profit

Few customers will be satisfied

Which of the following is the most likely result of a marketing strategy that attempts to serve all customers? A) All customers will be delighted. B) Customer-perceived value will be increased. C) Customer evangelists will become unpaid salespersons for the service or product. D) Few customers will be satisfied. E) The company will likely need to follow up with a demarketing campaign.

________ means that service quality depends on the quality of buyer-seller interaction during the service encounter. A) Interactive marketing B) Service differentiation C) Service productivity D) Corporate image marketing E) Traditional external marketing

________ occurs when a company introduces additional items in a given product category under the same brand name, such as new flavors, forms, colors, ingredients, or package sizes. A) Line extension B) Megabranding C) Interactive marketing D) Internal marketing E) Co-branding

What is a convenience product?

a modification of an existing product that sets one brand apart from its competitors

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

Product item

a specific version of a product that can be designated as a distinct offering among an organization's products.

express warranty

a written guarantee

Types of capture-able customer value

a. Cash b. Loyalty and Retention c. Grow market share d. Customer Equity (Good will)

Millie Foods, producers of baby food, offers a monetary sum to retailers who agree to feature its new products on their shelves for a considerable time period. In this case, the promotion tool used by the company is referred to as a(n) ________.

allowance

Which of the following is a promotion tool used for trade promotions?

allowances

What is the first stage in a positioning decision?

analyze competitors positions

Marketing research

a. Stuff you have to get - Exploratory, Descriptive (Most common) and Casual b. Marketing research plan

The aim of ________ is to make ads so engaging or useful that people want to watch them.

advertainment

________ marketing involves activities undertaken to create, maintain, or change attitudes toward particular cities, states, or regions. A) Idea B) Place C) Organization D) Social E) Interactive

Which of the following refers to the group of consumers born between 1946 and 1964?

baby boomers

Which of the following promotion tools involves building up a good corporate image and handling unfavorable stories and events? A) sales promotion B) personal selling C) direct and digital marketing D) public relations E) advertising

Lanham law

deals with what you have to do when you're labeling. ex: list ingredients, health warnings, all those requirements.

________ includes exaggerating package contents through subtle design, using misleading labeling, or describing size in misleading terms.

deceptive packaging

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

deceptive pricing

________ refers to practices such as misrepresenting the product's features or performance or luring customers to the store for a bargain that is out of stock.

deceptive promotion

________ products, such as bad-tasting and ineffective medicine, have neither immediate appeal nor long-run benefits.

deficient

ABM Connect is one of the largest Internet service providers in India. The company's salespersons regularly contact buyers to make sure that the installation and services have been properly executed. Which of the following steps of the selling process does this scenario depict?

follow-up

market generically

no brand identification. got milk?

The team now needs to decide on the physical packaging for the anti-aging cream prototype, taking the product from concept to mock-up. The team has reviewed similar moisturizer and face cream packaging to help with its decision.

plastic bottle

A customized marketing strategy tailor

specific products and the messages about them to individual customers.

The ________ concept considers future company needs.

strategic planning

Having chosen to use a survey to obtain descriptive data on eSports attitudes, you now need to decide how to contact consumers. You want to gather a large quantity of data fairly quickly, while not incurring high costs. How will you collect this data?

telephone

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

television

Manufacturer's brand

the brand name of a manufacturer

secondary package

the container that protects the primary package

What is the definition of psychographics?

the use of psychological, sociological, and anthropological factors to construct market segments

Make selling unnecessary

According to management guru Peter Drucker, "The aim of marketing is to ________." A) create customer demands B) identify customer demands C) make selling unnecessary D) set realistic customer expectations E) sell products

Marketing

According to the authors of your text, the ________ concept is a "sense and respond" philosophy rather than a "make and sell" philosophy. A) product B) production C) marketing D) retailing E) societal marketing

understand the marketplace and customer needs and wants

According to the simple five-step model of the marketing process, a company needs to ________ before designing a customer-driven marketing strategy. A) determine how to deliver superior value B) build profitable relationships with customers C) use customer relationship management to create full partnerships with key customers D) understand the marketplace and customer needs and wants E) construct key components of a marketing program

Briefly explain the societal marketing concept. Give an example of an organization that has effectively used the societal marketing concept.

According to this concept, firms will succeed if they take underlying consumer needs and society's well being into account over the long term. A pure marketing concept can damage consumers' long-run welfare by focusing exclusively on satisfying consumers' short-run wants. Over a long period of time, this too-narrow focus can be damaging to the company. In setting their marketing strategies, marketers today need to balance company profits, consumer wants, and society's interests. Johnson & Johnson is an example of a company that has successfully implemented the societal marketing concept. The organization stresses honesty, integrity, and putting people before profits, an ethic that helped Johnson & Johnson quickly address and recover from the poisonous tampering of Tylenol capsules in 1982.

Marketing Concept

Achieving goals depends on knowing needs and wants/satisfying customers better than competitors

Which of the following is true of advertising in the new marketing communications model?

Advertisers are increasingly shifting toward digital media.

________ is any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor.

Advertising

Which of the following is most likely a difference between advertising and sales promotions?

Advertising is an invitation to buy the product, while a sales promotion is an incentive to buy the product immediately.

Which of the following is the first stage in the positioning process?

Analyze the competitor's position

145) ________ positioning involves meeting consumers' lower performance or quality requirements at a much lower price. A) More for less B) Less for much less C) Same for less D) More for more E) More for the same

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 ________. A) cause marketing B) stereotyping C) niche marketing D) scapegoating E) positioning

Customer Relationship Management

Building and maintaining profitable value-laden relationships with customers of a company is called ________. A) customer lifetime value B) customer perceived value C) customer relationship management D) database marketing E) societal marketing

During which phase of new product development do organizations determine if a new product can make a profitable contribution to the product mix?

Business analysis Correct. Even though marketers have evidence that there is a market for the product, they still must find out if the product can make a profitable contribution to the organization's product mix. The business analysis for a new product begins with assessing how the new product will fit into the firm's total product mix.

153) Apex describes its clothing line as, "Elegance and attitude, now as one. For the daily office-goer, who takes pride in what he or she wears everyday, Apex makes sure you get noticed." This exemplifies a ________. A) statement of purpose B) vision statement C) positioning statement D) general need description E) product specification

A newspaper article announced that Connect Wireless, the sixth-largest wireless carrier in a country, was changing its name to M-Mobile and that to begin the makeover process it had replaced spokesperson Robert Garmon with Catherine Naylor. Which of the following elements of a promotion mix is represented in this example? A) sales promotion B) advertising C) public relations D) personal selling E) direct marketing

A recent study conducted by Estelle Cosmetics Company showed that heavy users of Estelle's products comprise a small percentage of the market. The study indicated that less than 7 percent of all shoppers buy nearly 71 percent of Estelle's products in the United States. This is an example of ________. A) benefit segmentation B) segmentation by loyalty status C) segmentation by usage rate D) psychographic segmentation E) occasion segmentation

All of the following are benefits of direct marketing for sellers EXCEPT ________. A) access to small groups or individuals B) program flexibility C) mass reach and immediate returns D) low cost E) easy to personalize products

All of the following are benefits of online direct marketing for buyers EXCEPT ________. A) access to numerous products B) access to product reviews C) live product demonstrations D) convenience E) privacy

All of the following are ways a company can differentiate itself or its product EXCEPT ________. A) services B) channels C) price D) people E) image

An ad for Maybelline age-minimizing makeup in Ladies' Home Journal magazine featured actress Gigi Hadid and offered readers a $2-off coupon when they tried the new makeup. In the context of the communication model, measuring which of the following would be the best way for the source to measure feedback? A) the number of subscribers to Ladies' Home Journal B) the number of people who make up the target market C) the number of people who redeem the coupon D) the number of people who have purchased Maybelline products in the past E) the number of people to whom Gigi Hadid is an appealing spokesperson

An appeal that attempts to stir up either negative or positive sentiments that can motivate purchase is called a(n) ________ appeal. A) rational B) structural C) emotional D) moral E) standard

Calypso Motors recently rolled out its Proteus hatchback. Proteus combines the attractiveness of a luxury car with the excellent agility of a sports car. Calypso Motors is confident that Proteus will appeal to both sports car enthusiasts as well as the luxury segment. Which of the following types of market segmentation is evident here? A) gender segmentation B) income segmentation C) benefit segmentation D) geographic segmentation E) age and life-cycle segmentation

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? A) channel differentiation B) service differentiation C) product differentiation D) people differentiation E) image differentiation

Communication through a telephone call is considered a part of a(n) ________ communication channel. A) online B) nonverbal C) personal D) nonpersonal E) unidirectional

Donello Equipment hosts infomercials on television and at the same time allows its viewers to interact with its advertisements. Viewers can request more details and order via their Internet-ready smart televisions. Which of the following forms of marketing is evident here? A) catalog marketing B) telemarketing C) interactive television D) podcast marketing E) kiosk marketing

Gary sends samples of sheet music to schools for demonstration or presentation. Which of the following types of marketing is being illustrated from this statement? A) kiosk marketing B) viral marketing C) direct-mail marketing D) telemarketing E) direct-response television marketing

In a recent radio spot, John and Barb gave a quick explanation of Sparkle's cleaning process and a description of the value consumers receive for their money. This is an example of a(n) ________ appeal. A) emotional B) standard C) rational D) moral E) social

In marketing his wooden pens and pencils to specialty-shop customers, Ruben was most likely using ________ marketing. A) mass B) trigger-based C) concentrated D) segmented E) individual

In the context of behavioral segmentation, markets segmented by ________ can be categorized into light, medium, and heavy product users. A) benefits sought B) loyalty status C) usage rate D) user status E) occasion

In which step of the communication process does the marketing communicator need to know the buyer-readiness stage of the target audience? A) designing the message B) choosing the media through which to send the message C) determining communication objectives D) collecting feedback E) selecting the message source

Malcolm Sanders, a graduate student from Boston, makes customized snowboards for local snowboarding enthusiasts. The demand for snowboards peaks during the winter months, a busy time for Malcolm. He advertises more aggressively and sells most of his snowboards around this time. Which market segmentation approach does Malcolm most likely use? A) gender segmentation B) psychographic segmentation C) occasion segmentation D) geographic segmentation E) age and life-cycle segmentation

Market targeting can bring up concerns about privacy and abuse in all of the following ways EXCEPT ________. A) when marketing toward children B) when entertainment and commercial content blend C) when customers opt in to receive focused content D) when deceptive messaging is used E) when e-mails are personalized based on Internet searches by the customer

Market targeting is ________. A) arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers B) dividing a market into distinct groups of buyers who have different needs and characteristics C) evaluating segment attractiveness and deciding how many and which segment(s) to serve D) marketing to buyers with separate marketing strategies or mixes E) differentiating the firm's market offering to create customer value

Most products in the marketplace are in the ________ stage of the product life cycle. A) growth B) decline C) maturity D) introduction E) development

Pacific Fisheries divides its customers into different regional units, such as Asia, Australia, and the Americas. This is an example of ________ segmentation. A) demographic B) psychographic C) geographic D) occasion E) benefit

Stores such as Walmart, Best Buy, PetSmart, David's Bridal, and DSW Shoes use ________ positioning. A) more for the same B) more for less C) same for less D) less for much less E) more for more

TRUSTe, a nonprofit self-regulatory organization, works with other companies to audit online privacy and security measures. It lends its TRUSTe privacy seal to all the following communication channels that meet its privacy and security standards EXCEPT ________. A) mobile apps B) e-mail marketing C) telemarketing D) Web sites E) social media

The AIDA model identifies the characteristics of an effective ________. A) advertising budget B) channel of communication C) marketing message D) marketing mix E) marketing response

The FTC has adopted a three-day cooling-off rule to give special protection to ________. A) customers who purchased because of deceptive advertising B) customers who purchased because of bait-and-switch tactics C) customers who were not seeking a product D) resellers who do not receive proportionately equal treatment from manufacturers E) resellers who are not covered by the Robinson-Patnam Act

Today's consumers do not need to rely on marketer-supplied information about products and services because they can use ________ to seek out a wealth of information. A) push strategies B) direct and digital marketing C) the Internet D) personal selling E) public relations

Under which promotional mix strategy does the producer direct its marketing activities toward channel members to induce them to carry the product and promote it to final consumers? A) pull strategy B) blitz strategy C) push strategy D) buzz strategy E) pulse strategy

What is the primary advantage of printed catalogs? A) filtering out interested prospects B) offering immediate rebates and coupons C) building emotional connections with customers D) offering unlimited space for merchandise details E) reaching consumers in a quick and inexpensive manner

When a company customizes its merchandise store by store to meet shopper needs, it is practicing ________ marketing. A) niche B) mass C) local D) segmented E) trigger-based

When a customer lets a producer know something about its products or advertising, the customer is providing ________. A) decoding B) noise C) feedback D) encoding E) reverse marketing

When order requests come in, the designers of Titus Furniture often go to a client's location to note their requirements, budget, and expected date of delivery. In this way, Titus Furniture is successful in tailor-making products for its customers. This is an example of ________. A) market diversification B) undifferentiated marketing C) mass customization D) differentiated marketing E) trigger-based marketing

Which of the following best describes permission-based e-mail marketing? A) sending unsolicited, unwanted commercial e-mail messages B) sending requests to users to join online social networking communities C) sending e-mail pitches only to customers who "opt-in" D) offering free promotional materials to new customers E) gathering demographic details for customer databases

Which of the following is NOT a benefit of using multivariable segmentation systems? A) help companies identify key customer segments B) help companies reach key customer segments more efficiently C) help companies more accurately price their products to appeal to key customer segments D) help companies better understand key customer segments E) help companies tailor market offering to the needs of the key customer segments

Which of the following is NOT a reason that companies use social media? A) cost effectiveness B) engagement and social sharing capabilities C) ease of creating content D) immediacy and timeliness E) interactiveness

Which of the following is NOT one of the major variables used in segmenting consumer markets? A) demographic B) behavioral C) ethical D) geographic E) psychographic

Which of the following is a disadvantage of using a differentiated marketing strategy? A) It generates far lower sales compared to an undifferentiated marketing strategy. B) Customer loyalty is negatively impacted and difficult to obtain. C) The costs of doing business increase. D) Quality control problems increase. E) Product safety decreases.

Which of the following is an advantage of a well-designed and targeted telemarketing plan? A) exemption from the National Do Not Call Registry B) ability to portray wider merchandise C) purchasing convenience for customers D) interactive infomercials via phone E) coordination with nearby kiosks

Which of the following is most likely a disadvantage of viral marketing? A) Viral marketing usually takes time to make an impact. B) Viral marketing is very inexpensive. C) Marketers have great control over who receives the viral message. D) Viral marketing messages are offensive to the audiences who are not a part of the targeted market. E) Viral marketing messages are blocked by most search engines.

Which of the following is most likely a shortcoming of advertising? A) It is the most expensive promotion tool. B) It cannot reach masses of geographically dispersed buyers. C) It is impersonal and lacks the direct persuasiveness of company salespeople. D) It cannot trigger quick sales. E) It cannot be used to build up a long-term image for a product.

Which of the following is true about e-mail marketing messages? A) E-mail marketing messages involve sending an offer, announcement, reminder, or sample to a person living at a particular address. B) E-mail marketing messages involve connecting directly with carefully targeted consumers, exclusively on a one-to-one, interactive basis. C) E-mail marketing messages are effective in reaching the desired target market and result in low costs. D) E-mail marketing messages cost more per thousand people reached than mass media such as television or magazines. E) E-mail marketing messages create a stronger emotional connection with the customers compared to traditional direct mail.

Which of the following is true about online direct marketing? A) Online direct marketing is also referred to as multi-level marketing. B) Salespersons are compensated for other salespeople they recruit. C) Online direct marketing allows sellers to create immediate, timely, and personal offers. D) Online direct marketing involves two or more intermediaries. E) In online direct marketing, outside and inside sales forces coordinate to provide value products to customers

Which of the following is true with regard to store brands? A) Store brands have been declining in popularity and strength for more than two decades. B) Store brands are also known as national brands. C) Store brands are created and owned by resellers of a product or service. D) Increasing consumer distrust toward store brands has led to a store-brand slump. E) Store brands are growing far slower than manufacturer's brands.

Which of the following marketing strategies is most suitable for smaller firms with limited resources? A) mass marketing B) undifferentiated marketing C) niche marketing D) differentiated marketing E) one-to-one marketing

Which of the following methods is used by companies to set their advertising budgets based on the industry average? A) percentage-of-sales method B) affordable method C) competitive-parity method D) objective-and-task method E) regression method

Which of the following statements is true of direct marketing? A) Direct marketing is also referred to as referral marketing. B) Salespersons are compensated for other salespeople they recruit. C) Direct marketing offers sellers a low-cost alternative for reaching their markets. D) Direct marketing involves two or more intermediaries. E) In direct marketing, consumers earn a commission every time they buy a product.

Which of the following statements is true of viral marketing? A) Marketers have significant control over where their viral messages end up. B) Viral marketing gives consumers online places to congregate, socialize, and exchange views. C) Because customers find and pass along the message, viral marketing can be very inexpensive. D) In viral marketing, links appear alongside search engine results on sites such as Google and Bing. E) Viral marketing messages are blocked by most search engines, security software, and social networking sites.

Which of the following statements is true regarding the old mass-media communications model? A) Mass-media costs are decreasing. B) Mass-media audiences are increasing. C) Many viewers are gaining control of message exposure through DVRs and video streaming. D) Ad clutter is decreasing. E) Internet ad spending has stagnated and more marketers are shifting toward TV advertising.

Which of the following terms best describes the channels through which two or more people communicate directly with each other, including face-to-face, mail, e-mail, texting, or an Internet chat? A) shared communication channel B) earned communication channel C) personal communication channel D) nonverbal communication channel E) owned communication channel

Which promotional tool is the most immediate, customized, and interactive? A) segmented advertising B) sales promotion C) direct marketing D) horizontal diversification E) public relations

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? A) more for less B) more for the same C) same for less D) less for much less E) more for more

With a(n) ________ marketing strategy, a firm goes after a large share of one or a few smaller niches. A) individual B) mass C) concentrated D) differentiated E) local

________ companies use both offline and online marketing channels. A) Start-up B) Click-only C) Omni-channel retailing D) Brick-and-mortar E) Brick-only

________ consists of evaluating each market segment's attractiveness and selecting one or more segments to enter. A) Positioning B) Mass customization C) Market targeting D) Market segmentation E) Differentiation

________ involves cultivating opinion leaders and getting them to spread information about a product or a service to others in their communities. A) Sales promotion B) Indirect marketing C) Buzz marketing D) Stealth marketing E) Public relations

________ involves dividing a market into smaller segments of buyers with distinct needs, characteristics, or behaviors that might require separate marketing strategies or mixes. A) Mass customization B) Market targeting C) Market segmentation D) Differentiation E) Positioning

________ represent(s) consumers' perceptions and feelings about a product and its performance. A) Product lines B) Labeling C) Brands D) Design E) Product attributes

________ requires finding the major advantages people look for in a product class, the kinds of people who look for each positive aspect of a product, and the major brands that deliver it. A) Gender segmentation B) Psychographic segmentation C) Benefit segmentation D) Geographic segmentation E) Age and life-cycle segmentation

________ segmentation refers to dividing the market into segments according to occasions when buyers get the idea to buy, actually make their purchase, or use the purchased item. A) Gender B) Psychographic C) Occasion D) Geographic E) Income

A message showing a product's quality, economy, value, or performance is an example of a(n) ________ appeal. A) structural B) rational C) emotional D) moral E) standard

A(n) ________ argument is most likely to be effective when the audience is highly educated or likely to hear opposing claims. A) one-sided B) two-sided C) moral D) emotional E) structured

An increasing number of retailers and wholesalers have created their own ________, also called store brands. A) national brand B) support brand C) private brand D) generic brand E) manufacturer's brand

Anchor Tractors focuses on selling its farm equipment in North America and Europe. It has not yet considered expanding into the Middle East. Which factor is likely most important in this decision regarding expansion? A) geographic B) political C) demographic D) personality E) cultural

Bailey's Burgers promotes the Bailey's Jumbo Burger as a fun snack for teens and young adults. In this instance, Bailey's Burgers is practicing ________ segmentation. A) benefit B) age and life-cycle C) psychographic D) geographic E) gender

Boson Corp. is introducing consumers to its new car with the help of an advertisement campaign. This introductory campaign most likely aims to affect the ________ stage of buyer-readiness. A) liking B) awareness C) preference D) insistence E) conviction

By using ________ to contact potential customers, marketers sell directly to consumers. A) undercover marketing B) outbound telephone marketing C) affinity marketing D) multi-level marketing E) ambush marketing

Charlie Putnam received an e-mail promoting a new financial services institution that offers surprisingly low mortgage rates. The e-mail simply asked customers to provide their address, date of birth, social security number, and current mortgage information in order to receive a free loan quote. Suspicious of the offer, Charlie researched the company and discovered that the e-mail was a fraud. This is an example of ________. A) cyberbullying B) phishing C) adware D) spamdexing E) viral marketing

Companies must attract visitors to their Web sites. Which of the following is a method companies use to entice visitors not just to visit but also to return to a site? A) using flashy graphics, bright colors and vivid pictures B) aggressively promoting the site in broadcast advertising and through ads and links on other sites C) offering prizes for visiting the site D) providing rewards for visitors connecting their friends to the site E) requiring registration on the first visit to the site

Consumers who show their allegiance to brands, stores, or companies help marketers to segment consumers by their ________. A) user status B) degree of loyalty C) income D) geographic location E) benefit-seeking attitudes

Ferrari sports cars claim superior quality, performance, and style. Ferrari provides "perfection" at a premium price to keep its brand image intact. Which type of value proposition does Ferrari most likely position its products with? A) more for the same B) more for more C) less for much less D) the same for less E) more for less

GamaPix makes point-and-shoot cameras and handycams for amateur photographers and hobbyists. It also has a separate line of cameras dedicated to professional photographers. Additionally, it designs separate offers for each segment. Which of the following marketing strategies does GamaPix most likely use in this instance? A) mass marketing B) differentiated marketing C) individual marketing D) local marketing E) direct marketing

Jean Malone, a market researcher, recently found that most people in Bradburg County purchase automobiles with predominantly functional designs and prefer darker colors. Which of the following marketing strategies should Jean most likely recommend to an automobile dealer interested in opening a dealership in Bradburg County? A) one-to-one marketing B) undifferentiated marketing C) segmented marketing D) individual marketing E) direct marketing

Papillon, a popular retailer of chic women's clothing, segments its market according to consumer lifestyles. Papillon most likely uses ________ segmentation for segmenting its market. A) geographic B) psychographic C) benefit D) age and life-cycle E) occasion

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? A) one-to-one marketing B) undifferentiated marketing C) individual marketing D) local marketing E) trigger-based marketing

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 does Sam use? A) the objective-and-task method B) the competitive-parity method C) the percentage-of-sales method D) the affordable method E) the pull-push method

Several structural factors affect long-run segment attractiveness. These include all of the following EXCEPT ________. A) easy entry by new competitors B) the segment does not match the company's long-run objectives C) strong and aggressive competitors D) many substitute products E) power of buyers

Shine Enterprises mass produces an all-purpose floor cleaner that is aimed at the whole market. This firm uses a(n) ________ marketing strategy. A) segmented B) undifferentiated C) individual D) niche E) one-to-one

Symbols such as the McDonald's golden arches, the colorful Google logo, the Nike swoosh, or Apple's "bite mark" logo provide strong company or brand recognition and are indicative of ________ differentiation. A) people B) image C) channel D) services E) product

The Jay Group hires better employees than its competition by conducting effective searches and multi-tiered interviews. The company also provides high quality training to its employees, an aspect often neglected by competitors. The Jay Group is most likely to gain a strong competitive advantage through which type of differentiation? A) image differentiation B) people differentiation C) services differentiation D) product differentiation E) channel differentiation

To carefully integrate and coordinate the company's many communications channels and produce greater sales impact, some companies appoint a(n) ________. A) idea champion B) marketing communications director C) sales representative D) business analyst E) media planner

To decrease direct marketing abuses, government agencies are investigating do-not-call lists, do-not-mail lists, do-not-track-online lists, and ________. A) claimed fraudulent credit card charges B) Can Spam legislation C) possibly deceptive television advertising D) offerings of illegal products E) bait-and-switch offers

Uptown-Clean Crew is a company that provides house-cleaning services in major urban and suburban areas. Marketers at Uptown-Clean Crew developed a short, humorous video promoting the company's services and posted it online. Soon the video was a rage as customers who saw the video found it hilarious and they passed it on to their friends and colleagues calling it the "Uptown comedy." Which form of marketing is illustrated from this scenario? A) telemarketing B) viral marketing C) integrated marketing D) omni-channel marketing E) kiosk marketing

Using interactive TV can allow consumers to perform all the following tasks during a company's ad EXCEPT ________. A) see what other sizes or colors are available B) identify a nearby location at which the product is available C) access additional product information D) order the product E) send product information to another device

When it first opened stores across the United States, Bateman's, an office supply chain store, had the best product selection, the best service, and the lowest prices compared to other office supply chain stores. As a result, Bateman's captured a significant chunk of the market in the short run. Which of the following positioning strategies did Bateman's most likely use? A) more for the same B) more for less C) same for less D) less for much less E) more for more

Which of the following acts requires that Web site operators obtain parental consent before collecting personal information about children under the age of 13? A) Safe Children's Act of 2001 B) Children's Online Privacy Protection Act C) Children's Online Protection Act D) Adam Walsh Child Protection and Safety Act E) Children's Act for Responsible Employment

Which of the following is a strength of advertising? A) It is the most inexpensive promotion tool. B) It reaches masses of geographically dispersed buyers at low cost per exposure C) It is impersonal and lacks the direct persuasiveness of company salespeople. D) It cannot trigger quick sales. E) It cannot be used to build up a long-term image for a product.

Which of the following is the first step in developing an effective integrated communications and promotion program? A) designing a message B) identifying the target audience C) determining the communication objectives D) collecting feedback E) choosing the media through which to send a message

Which of the following is true about behavioral segmentation on the basis of the loyalty variable? A) Consumers tend to pay more for products that are targeted at their respective age group or generation. B) By looking at customers who are shifting away from its brand, a company can learn about its marketing weaknesses and take actions to correct them. C) Highly loyal customers of a brand are less likely to engage in word-of-mouth publicity than those who are not. D) Completely loyal customers of a brand are typically loyal to two or three brands of a given product. E) Only consumers who seek premium or luxury services are subjected to behavioral segmentation based on the loyalty variable.

Which of the following statements is true regarding the affordable method for setting a promotion budget? A) It is mostly used by large businesses. B) It completely ignores the effects of promotion on sales. C) It tends to place promotion first among spending priorities. D) It leads to a certain annual promotion budget. E) It almost always results in overspending.

Which of the following terms best represents the communication channel that a company uses to move its advertising messages from sender to receiver? A) decoder B) media C) encoder D) communicator E) feedback loop

Which of the following types of marketing involves sending out letters, brochures, samples, and DVDs to consumers' addresses? A) direct-response marketing B) direct-mail marketing C) direct digital marketing D) kiosk marketing E) online marketing

Which term best describes sites such as the New York Times on the Web and ESPN.com? A) search engine B) content site C) online social network D) transaction site E) e-tailer

While blogs are a fundamentally a consumer-controlled medium, marketers can ________. A) directly contact customers through them B) use insights from them to improve their marketing programs C) offer special promotions to new customers D) retrieve research data from clicks in them E) provide content

________ are online journals where people post their thoughts, usually on a narrowly defined topic. A) Social networks B) Blogs C) Forums D) Search engines E) Web directories

________ calls for dividing the market into regions, states, counties, cities, or even neighborhoods. A) Benefit segmentation B) Geographic segmentation C) Demographic segmentation D) Psychographic segmentation E) Occasion segmentation

________ involves actually distinguishing the firm's market offering to create superior customer value. A) Mass customization B) Differentiation C) Market segmentation D) Diversifying E) Targeting

________ is very believable because news stories, features, sponsorships, and events seem more real and believable to readers than ads do. A) Differentiated marketing B) Public relations C) Direct marketing D) Sales promotion E) Personal selling

________ marketing is more suited for uniform products, such as grapefruit or steel. A) Niche B) Undifferentiated C) One-to-one D) Trigger-based E) Local

________ refers to the process of putting thought into symbolic form. A) Sending B) Encoding C) Decoding D) Receiving E) Feedback

________ segmentation has long been used in clothing, cosmetics, toiletries, and magazines. A) Behavioral B) Gender C) Benefit D) Occasion E) Geographic

Selecting Customers to Serve

Company must decide whom it serve by dividing the market into segments of customers (market segmentation), and selecting which segments to go after (target marketing). It is impossible to serve all customers.

The three areas of consideration that should be balanced in the societal marketing concept are consumer wants, society's interests, and ________.

Company profits

________ advertising would most likely result in advertising wars between competitors.

Comparative

What are the five customer and market place concepts?

1. Needs, Wants, and Demands 2. Market Offering (Products, Services, and Experiences) 3.Value and Satisfaction 4. Exchanges and Relationships 5. Markets

What are the five ways in which the Marketing Landscape can change?

1. The Uncertain Economic Environment: Changes in the economy can change how consumers buy products. 2. The Digital Age: Quicker communication between companies and customers is possible with the advances in technology and through the internet. 3. Rapid Globalization: Global marketing partners and global competition is more relevant now more than ever. 4. The call for more ethics and social responsibility: This has become a hot topic for every new business as they need to cooperate with the social standards. 5. The growth of not-for-profit marketing: Not-for-profit companies have now joined the marketing field.

Microenvironment

1. The company itself 2. Suppliers 3. Marketing intermediaries a. Companies helping to sell 4. Competitors 5. Publics a. Any group with actual or potential impact 6. Customers

What are the five steps in the marketing process?

1. Understand the marketplace and customer needs and wants. 2. Design a customer-driven marketing strategy. 3. Construct an integrated marketing program that delivers superior value. 4. Build profitable relationships and create customer delight. 5. Capture value from customers to create profits and customer equity.

One rule of marketing is that _____% of purchasers account for _____% of a product's sales.

20;80

"To busy multitaskers who need help remembering things, Evernote is a digital content management application that makes it easy to capture and remember moments and ideas from your everyday life using your computer, phone, tablet, and the Web." This is an example of a(n) ________. A) positioning statement B) statement of purpose C) order-routine specification D) vision statement E) product specification

A catalog retailer in the United States has identified African American professionals between the ages of 35 and 45 as a group of potential customers for its products. The retailer plans to direct its marketing efforts toward this group of consumers. Which of the following market segmentation variables did the catalog retailer most likely use? A) demographic B) psychographic C) user status D) loyalty status E) usage rate

A consumer is reading a magazine with an advertisement, but due to a loud sound he is distracted from reading the advertisement and is not able to grasp its key points. In the context of the communication process, this unplanned static or distortion is called ________. A) noise B) encoding C) feedback D) response E) decoding

According to the "Privacy Promise to American Consumers" program, DMA members need to comply with which of the following consumer privacy rules? A) agree to notify customers when any personal information is rented, sold, or exchanged with others B) offer to register all customers in the National Do Not Call Registry C) make sure that consumers are adhering to the Children's Online Privacy Protection Act D) educate consumers on the Can Spam legislation E) include the advertising option icon to let consumers know why they are being targeted

Andrew Levitt runs a retail store in Norristown. Andrew's store stocks cold weather products as Norristown mostly has sub-zero temperatures. Which of the following is evident here? A) local marketing B) concentrated marketing C) segmented marketing D) mass marketing E) direct marketing

Business-to-consumer companies are more likely to emphasize a ________ promotion strategy, while business-to-business companies are more likely to emphasize a ________ promotion strategy. A) pull; push B) push; pull C) pulse; pull D) blitz; pull E) push; blitz

Even when competing offers look the same, buyers may perceive a difference based on ________ differentiation. A) image B) people C) price D) channel E) services

Fiona Lambrech is the marketing director of a newly established detergent company. In order to introduce her product effectively into the market, Fiona sends samples of the detergent to a select group of individuals. Which of the following forms of marketing was most likely used by Fiona? A) direct-mail marketing B) catalog marketing C) telephone marketing D) kiosk marketing E) direct-response television marketing

Gant Hardware is a huge chain of hardware stores. GantHardware.com helps customers conduct product research and also lets them order directly online or redirects them to the nearest Gant retail store. Which of the following best describes GantHardware.com? A) marketing Web site B) digital catalog C) social network D) podcast E) blog

Gary wants to expand the reach of his business. An effective approach to reaching the most likely potential customers would be ________ marketing. The message will include a link to Treble Clef's Web site. A) e-mail B) viral C) kiosk D) mobile E) catalog

In addition to sending samples of sheet music to schools, Gary sends school music directors messages with links to sample digital clips of the compositions. What kind of marketing is this? A) e-mail marketing B) viral marketing C) kiosk marketing D) mobile marketing E) catalog marketing

In the communication process, the reaction of the receiver after being exposed to a message is called the ________. A) response B) disturbance C) noise D) code E) distortion

In the context of behavioral segmentation, who among the following is a potential user? A) Anita, who recently had a baby B) Peter, who recently changed his job C) Mary, who enrolled as a graduate student in a university last year D) Gina, who opened a dental clinic in Orange County E) Raj, who is planning a trip to Hawaii with friends

James is looking for a new suit for a job interview. He is shopping at Smith & Jones, a well-regarded menswear store. While he looks at various styles and uses his smartphone to scan codes, the menswear shopping app provides him with suggestions for shirts, ties, and shoes that would complete the ensemble he needs to make a strong, positive impact at his interview. The ability of the app to provide this information serves to ________. A) enrich the shopping experience B) annoy James C) complicate the shopping experience D) use James' data plan E) interrupt the shopping experience

Many companies today are localizing their products, advertising, promotion, and sales efforts to fit the needs of individual regions, cities, and neighborhoods. This is an example of ________. A) geographic segmentation B) product diversification C) branding D) psychographic segmentation E) demographic segmentation

Marketers publicize inbound toll-free numbers to consumers in television and print ads, direct mail, and catalogs. The benefit to sellers is that it presents an opportunity for consumers to order products and for the seller to build the relationship. A benefit to consumers is ________. A) increased convenience B) increased telemarketing calls C) decreased telemarketing calls D) 24/7 availability of support E) a discounted price on the product

Neal Murphy sells his company's unique products on television programs. He hosts a 30- minute show in which he demonstrates and explains the advantages of the product. At the end of the show, a toll-free number is displayed on the screen that can be used by viewers to place their orders for the product. Which of the following forms of advertising is evident here? A) direct-response television advertising B) telemarketing C) interactive television marketing D) podcast marketing E) kiosk marketing

One of the message structure issues that a marketer must handle is whether to ________. A) present the strongest arguments first or last B) make a moral appeal or not C) use the pull strategy or push strategy D) diversify vertically or horizontally E) use mass marketing or niche marketing

Sales executives at Keiron Air Conditioners use phone directories to call customers and convince them to buy their air conditioners. Which form of direct marketing is used here? A) telemarketing B) direct-mail marketing C) catalog marketing D) direct-response television marketing E) kiosk marketing

Shifting away from mass marketing, marketers are developing ________ which are designed to build relationships with customers in more narrowly defined micromarkets. A) focused marketing programs B) horizontal diversification programs C) backward integration strategies D) new pull strategies E) new push strategies

Social media are all of the following EXCEPT ________. A) expensive B) interactive C) personal D) targeted E) timely

Spartan Sportsgear is a company that sells sports equipment for adventure sports. It recently launched ExtremeSpartan.com to showcase products and provide testimonials of famous adventure sports athletes who use Spartan's products. It also includes videos and blogs. Which of the following best describes ExtremeSpartan.com? A) branded community Web site B) digital catalog C) social network D) podcast E) blog

Suppose Amazon.com has offered you free shipping on your next purchase of more than $35. This offer is an example of ________. A) sales promotion B) personal selling C) a public relations strategy D) horizontal diversification E) a pull strategy

The ________ was established by the Direct Marketing Association. A) Privacy Promise to American Consumers B) Trusted Email Open Standard C) Children's Online Privacy Protection Act D) CAN-SPAM legislation E) Do Not Call Registry

The full mix of benefits on which a brand is differentiated and positioned is known as the brand's ________. A) value proposition B) service life C) value stream D) supply chain E) demand chain

To enable customers to opt out of seeing particular ads, marketers use a(n) ________. This is added to behaviorally targeted online ads to tell consumers why they are seeing a particular ad. A) advertising option icon B) opt-in question C) X to close the ad D) survey E) questionnaire

To the extent that a company can differentiate and position itself as providing superior customer value, it gains ________. A) competitive advantage B) complementary assets C) service life D) core competencies E) contingent liability

Tropicana promotes drinking orange juice at any time of day as a cool, refreshing drink. The market segmentation approach Tropicana is using is ________. A) occasion segmentation B) benefit segmentation C) age and life-cycle segmentation D) gender segmentation E) behavioral segmentation

Venus Inc., a company designing and marketing branded diamond jewelry, targets wealthy consumers with similar needs and buying behaviors, even though the consumers are located in different countries. This is an example of ________ segmentation. A) intermarket B) loyalty C) life-cycle D) income E) psychographic

What action do consumers continue to perform even though a majority are concerned with identify theft? A) shopping online B) searching for product information C) reading reviews from friends on Facebook D) sending and responding to e-mail messages E) watching videos

When the size, purchasing power, and profile of a market segment can be calculated, the market is ________. A) measurable B) profitable C) substantial D) actionable E) competitive

Which of the following appeals is based on the idea that consumers often feel before they think? A) emotional appeal B) rational appeal C) structural appeal D) standardized appeal E) integrated appeal

Which of the following is NOT a common variable used by both consumer and business marketers while segmenting markets? A) operating characteristics B) loyalty status C) usage rate D) geographic location E) benefits sought

Which of the following is a challenge of marketing through online social networks? A) Results are hard to measure. B) Users seldom have control over the online social networks. C) Most existing networks are already controlled by major corporations and therefore do not favor competitors. D) It is difficult to get the approval of the online advisory board to post an ad in a social network. E) Marketing via online social networks is expensive and time-consuming.

Which of the following is a disadvantage of using blogs as a marketing tool? A) The blogosphere is cluttered and difficult to control. B) Advertising on a blog is typically expensive and time consuming. C) Using blogs as a marketing tool offers minimum reach to a target audience. D) Blogs, when used as a marketing tool, have a low rank in Web directories and search engines. E) Blogs do not provide the kind of personalized approach that today's marketers are looking for.

Which of the following is a reason a consumer would follow a company's blog? A) The blog offers fresh insights or new ideas about the company or products. B) The blog provides the consumer with familiar information. C) The blog allows consumers to communicate with each other. D) A well-followed blog gives the company influence in the marketplace. E) Consumers know that companies want them to follow the blog postings.

Which of the following is the reason a company may choose not to focus on the largest, fastest-growing segments? A) The smaller segments may be more profitable to the firm. B) It may lack the skills to serve larger segments. C) The right size and growth characteristics don't match its goals. D) The segments may be too competitive. E) It may lack the physical and financial resources to serve larger segments.

Which of the following is true about the concentrated marketing strategy? A) Companies that rely on a few segments for all of their business will suffer if a segment turns sour. B) Concentrated marketing is not profitable for most firms. C) Niche marketing involves few risks for most firms. D) Concentrated marketing involves going after a small share of a large market. E) The Internet has limited the use and benefits of niche marketing.

Which of the following refers to a behavioral segmentation variable that involves segmenting markets into nonusers, ex-users, potential users, first-time users, and regular users of a product? A) user status B) usage rates C) gender status D) income status E) loyalty status

Which of the following statements is most likely true regarding the objective-and-task method of budget setting? A) It forces management to spell out its assumptions about the relationship between the money spent and promotion results. B) It is the simplest and least time consuming method to use. C) It is the least logical budget-setting method. D) It involves setting the promotion budget to match competitors' outlays. E) It wrongly views sales as the cause of promotion rather than as the result.

Which of the following would be classified as bait-and-switch advertising? A) advertising a cheaper brand but making only a more expensive one available to customers B) advertising the advantages of a product by comparing it to its competitors C) providing free samples of a product D) providing discount coupons with a product E) favoring certain customers over others through trade promotions

Which term refers to an in-store machine that allows a customer to order merchandise not Green Gardens is a click-and-mortar company that sells gardening and landscaping goods and equipment. When customers are unable to find a product they need on the shelves of their local Green Gardens store, customers order the product online with the help of the in-store ordering machine. Which of the following best describes the ordering machine? A) kiosk B) digital catalog C) podcast D) tablet E) online networkscarried in the store? A) kiosk B) automated teller machine C) virtual catalog D) interactive TV E) direct-response device

While comparing hotel rates on Google's search engine, Brenda came across text-based ads and links alongside the search results. This form of advertising is known as ________. A) contextual advertising B) rich media ads C) content sponsorship D) catalog advertising E) social media advertising

________ segmentation divides buyers into segments based on their knowledge, attitudes, uses, or responses concerning a product. A) Behavioral B) Psychographic C) Age and life cycle D) Gender E) Geographic

Customer-driven marketing usually works well when _________ and when customers ________.

A clear need exists; know what they want

The Niketown running club that organizes twice weekly evening runs and follow-up meetings in the Nike Store is an example of which of the following?

A club marketing program

What is a convenience product?

A consumer good or service that is usually low priced, widely available, and purchased frequently with a minimum of comparison and effort

Magnuson Moss Warranty Act

A law passed a long time ago that is all about how warrantys are governed

The Market Concept

A philosophy that holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfaction better than competitors do. Focuses on the market and customer needs, and the profits are gained through integrated marketing and high customer satisfaction. This is an outside-in perspective that is very customer driven.

Marketing

A process by which companies create value for customers and build strong customer relationships in order to capture value from consumers in return

Which of the following statements is true of a product sales-force structure?

A product sales-force structure is characterized by specialization along product lines.

All of the following are accurate descriptions of modern marketing:

A) Marketing is the creation of value for customers. B) Marketing is managing profitable customer relationships. D) Marketing involves satisfying customers' needs. E) Marketing is used by for-profit and not-for-profit organizations.

All personal communication channels are controlled directly by the company.

As long as a product is not identical to a competitor's product offering, a company can introduce, market and sell it without penalty.

Because of strict consumer privacy regulations, invasion of privacy is no longer a concern for the direct marketing industry.

Because personal selling involves developing relationships, it is acceptable for salespeople to stretch claims they make about a product's advantages.

Companies find it as easy to come up with a good positioning strategy as to execute it.

Demographic segmentation divides buyers into segments based on their knowledge, attitudes, uses, or responses concerning a product.

Firms that practice product differentiation gain competitive advantage through the way they design their channel's coverage, expertise, and performance.

Geographic segmentation divides the market into segments based on variables such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation.

Integrating the promotion mix starts with suppliers.

Intermarket segmentation refers to forming segments of consumers who have different needs and buying behaviors in a given geographical region.

Kia Motors offers a new car model with the same features as other cars in the same segment. However, Kia's model is priced higher than its two main competitors. Kia is following a more-for-less positioning strategy.

Marketers usually limit their segmentation analysis to only one major variable.

Mass marketing involves identifying market segments, selecting one or more of them, and developing products and marketing programs tailored to each.

Most successful products are immediately accepted, and quickly move to the growth stage of the PLC.

Niche marketing involves tailoring brands and promotions to the needs and wants of local customer groups—cities, neighborhoods, and even specific stores.

Product differentiation refers to the way a product is defined by consumers on important attributes—the place the product occupies in consumers' minds relative to competing products.

Profits drop during the growth stage of the PLC because per customer promotion costs are high.

The affordable method of setting advertising budgets more frequently results in overspending, rather than in underspending.

The affordable method of setting advertising budgets takes into consideration the effects of promotion on sales.

The international growth of many professional and business services such as accounting, consulting, and advertising led to the globalization of the client companies they served.

The shift toward digital communication allows companies to keep control of message exposure.

Through market targeting, companies divide large, diverse markets into smaller segments that can be reached more efficiently and effectively with products and services that match their unique needs.

Using a segmented marketing strategy, a firm might decide to ignore market segment differences and target the whole market with one offer.

Using an undifferentiated marketing strategy, a firm might decide to target several market segments and designs separate offers for each.

When competitors use differentiated marketing to focus on the customer's needs, a firm should use undifferentiated marketing to compete with them.

When segmenting by usage rate, markets can be segmented into nonusers, ex-users, potential users, first-time users, and regular users of a product.

Kiosk marketing connects users around the world to each other and to an amazingly large information repository.

F; allows users to get information and order from convenient locations

GreenTree Lawn and Garden Products is engaged in a review of the sales, costs, and profit projections for some new products to find out whether they satisfy the company's objectives. This activity is called business product development.

F; business analysis

Using a push strategy, the producer directs its marketing activities (primarily advertising and consumer promotion) toward final consumers to induce them to buy the product.

F; channel members to promote to final consumers

Blair Housewares wants to add new products to its existing line of products. Managers are correct in believing that the purpose of idea generation is to create a few ideas, and the purpose of succeeding stages is to increase that number.

F; create many ideas in idea generation, and then decreasing it through screening

With outbound telephone marketing, the company provides a toll-free phone number to receive orders from television ads, print ads, direct mail, and catalogs.

F; direct response television marketing (DRTV)

When sales of a product drop during the decline stage of the PLC, a company typically modifies the marketing mix, the product, or the market.

F; during maturity stage

Viral marketing allows marketers to send tailored messages to targeted customers who have chosen to receive them.

F; email

Decoding is the process by which a sender puts his or her thoughts into a symbolic form.

F; encoding

The four major communication functions are encoding, decoding, response, and noise.

F; encoding, decoding, response, feedback

Companies seldom solicit ideas from customers during the idea generation stage of product development.

F; encouraged

GreenTree Lawn and Garden Products is engaged in marketing strategy development. The first part of the marketing strategy statement created by management should outline the product's planned price, distribution, and marketing budget for the first year.

F; first part is the target market, value proposition, sales, market-share, and profit goals for first years; essentially, what is the product giving consumers, who are the consumers, and how much are they hopefully going to give us for it short term?

A company launching a new product into the market must first decide where to launch the product.

F; first, timing and then where

Direct marketing seldom occurs on a one-to-one, interactive basis.

F; frequently

You receive a text message on your phone from Upscale Furnishings about an upcoming sale on custom furniture. Upscale Furnishings is developing a direct customer relationship with you through kiosk marketing.

F; mobile marketing

In the concept development stage, a firm will create a single product concept to test.

F; multiple product concepts to test in concept testing

Social media sites primarily exist for broad topics, making it difficult for marketers to appeal to smaller communities and niche markets.

F; niche social media

Direct marketing through catalogs and direct mailers is still the primary method used by marketing professionals.

F; online

Online-only companies are more successful than omni-channel marketing companies.

F; opposite, omni-channel marketing companies are more highly successful

Search advertisers buy search terms from the search site and pay whenever the search terms come up in the results of a consumer's search.

F; pay whenever consumers click on their site-directed ads

Advertising involves a personal presentation by the firm's sales force for the purpose of making sales and building customer relationships.

F; personal selling

The business analysis stage represents the first large jump in financial investment in the new product development process.

F; product development stage is the first jump, the second is commercialization

Sales promotion involves building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events.

F; public relations

Marketers drive traffic to the company Web sites solely through using other online and digital marketing tools.

F; real-world marketing tools as well

Encoding is the process by which the receiver assigns meaning to symbols.

F; sender

Direct and digital marketing involve targeting broad segments of customers.

F; small targeted segments or individual

Sequential product development has the advantage of not only being a team-oriented approach, but also of being faster in bringing products to market.

F; team based, sequential is the opposite

The affordable method involves setting promotion budgets to match competitors' outlays.

F; the competitive parity method

Consumers welcome e-mail marketing messages; opportunities to control the messages they receive are frequently ignored.

F; they are mostly seen as nuisances, 70% of email is spam

Mass marketers can expect consumers to distinguish between commercial message sources to maintain a clear image of a company and its brands.

F; they must implement integrated marketing communications (IMC)

Rational appeals are often used to urge people to support social causes, such as a cleaner environment or helping the disadvantaged.

F; usually moral appeals

Direct marketing is an expensive way of reaching target markets.

F; very cost effective

A good marketing message will try to move consumers through several steps of the buyer-readiness stages in a single message.

F; will have qualities of: getting attention, holding interest, arousing desire, and obtaining action; few messages will take the consumer through all 6 buyer readiness stages

A downward-sloping experience curve is indicative of a company's rapidly increasing production costs.

False

Amy's law office has developed a new format and wording for wills. The staff believes they offer the most in quality, performance, and innovative features. Her law office is practicing the production concept. T/F

False

Attributes are the most desirable level for brand positioning because competitors can easily copy attributes.

False

For most marketers, customer relationship management (CRM) is exclusively a matter of customer data management. T/F

False

Human needs are shaped by culture and individual personality. True/False

False

If demand changes greatly with price, the demand is inelastic.

False

Line extension refers to extending an existing brand name to new product categories.

False

Market offerings are limited to physical products. True/False

False

Market segmentation is the process of seeking fewer customers and reduced demand for profit maximization only. T/F

False

Only sellers of products, services, and ideas practice marketing; buyers do not. True/false

False

Price is the most inflexible of the marketing mix elements.

False

Selling is managing profitable customer relationships. True/False

False

The marketing mix includes production, price, promotion, and packaging; this is known as the four Ps of marketing. T/F

False

The more elastic the demand, the more it pays for the seller to raise the price.

False

To increase their "share of customer," a firm concentrates on retaining as many customers as possible over their lifetimes. T/F

False

When backed by buying power, needs become demands. True/False

False

When sellers focus on existing needs and lose sight of underlying customer wants, they suffer from marketing myopia. True/false

False

Your department holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfaction better than competitors do. Your department is practicing the selling concept. T/F

False

Product mix width refers to the total number of items a company carries within its product lines.

False, it is all the lines and items that a seller offers

The uniform-delivered pricing strategy means that goods sold are placed free on board a carrier with the customer paying the freight from the factory to the destination.

False; FOB-origin Uniform-delivered pricing strategy: All consumers pay the same amount for shipping

Department stores that practice everyday low pricing typically provide frequent sale days,early-bird savings, and bonus earnings for store credit-card holders.

False; High-low pricing

In segmented pricing, the difference in prices is based on differences in costs.

False; based on differences in demand based on: customer segment, location, time of day, and product form

Cost-based pricing involves setting prices based on consumer perception of value.

False; based on product cost

Markup pricing is used when a firm tries to determine the price at which it will break even or make the target return it is seeking.

False; break-even pricing/target return pricing

Print-Fast Printers prices its printer cartridges at a premium, since customers must buy Print-Fast cartridges to work with their Print-Fast printer. Print-Fast uses optional-product pricing.

False; captive-product pricing

Customers located close to a firm are less likely to benefit from FOB-origin pricing than customers located farther away.

False; closer customers are more likely to benefit because it is the customer who is paying for the shipping costs

Unsought products are products that the customer usually buys frequently, immediately, and with a minimum of comparison and buying effort.

False; convenience products

Excess capacity leads to companies initiating an increase in price.

False; decrease in price

Average cost tends to increase with accumulated production experience.

False; decrease, the phenomena is called the experience curve/learning curve

Style is a larger concept than design. Design simply describes the appearance of a product.

False; design switched with style

If used infrequently, price promotions create "deal-prone" customers who wait until brands go on sale before buying them.

False; frequently

In a pure monopoly, the market consists of many buyers and sellers who trade over a range of prices rather than a single market price.

False; in monopolistic competition

Customer perceptions of the product's value set the floor for prices.

False; it sets the ceiling for prices; costs set the floor for prices

Line extension refers to extending an existing brand name to new product categories.

False; line stretching

When The Candy Store sets a low initial price in order to get its "foot in the door" and to quickly attract a large number of buyers, the company is using market-skimming pricing.

False; market penetration pricing

While regulations exist to prohibit deceptive pricing practices, in reality, most reputable sellers do the minimum required to meet the regulations.

False; most reputable sellers go beyond what is required by law because treating customers fairly and making sure that they understand prices and pricing terms builds strong and lasting customer relationships

Product quality is harder to define and judge than service quality.

False; opposite

In addition to its customary services, On the Spot, a moving company, also sells the boxes and padding that are used when moving household furniture. This is an example of customer- segmented pricing.

False; optional product pricing

Thinking Cap Corp. prices its various cap designs at different price levels, ranging from $2.05 to $5.95. This is an example of optional product pricing.

False; product line pricing

When using product bundle pricing, sellers combine several of their products and offer the bundle at an increased price for increased profit.

False; reduced price but still increased profit

A product line consists of unrelated products that are sold to diverse customer groups.

False; related products sold to similar customer groups

The widespread use of scanner-based computer checkouts has eradicated complaints of retailers overcharging their customers.

False; scanner fraud exists when organizations fail to update databases or may even be intentional

At a hotel renowned for its superior service, one registration-desk employee may be cheerful and efficient, whereas another may be irritable and slow. This exemplifies service consistency.

False; service variability

Services are growing more slowly in the world economy as a percentage of gross world product than in the U.S. economy, as a percentage of gross domestic product.

False; services growing more quickly in the US than in the world

Convenience products are less frequently purchased consumer products and services that customers compare carefully on suitability, quality, price, and style.

False; shopping products

Specialty products are consumer products and services that customers evaluate on suitability, quality, price, and style, by gathering information and making comparisons.

False; shopping products

Service inseparability means that the quality of services depends on who provides them, as well as when, where, and how they are provided.

False; the supply of the service cannot be separated from the consumption, ie: haircuts, car servicing

Marketing a product internationally rarely requires a product to be priced differently depending on the country.

False; there are many differences due to differing consumer perceptions and preferences, local market conditions and costs, laws and regulations, and potentially different wholesale and retail systems

Companies frequently try to offer the highest possible performance quality level.

False; they decide on a quality level and consistency

Sellers cannot influence or use consumers' reference prices when setting their product prices

False; they may present more expensive options to make lesser ones seem more affordable

Companies stretch downward to add prestige to their current products.

False; upward

A company cannot stretch its product line downward.

False; upwards, downwards, or both

Value-based pricing uses the sellers' perception of value as the key to pricing.

False; value-based pricing users the customer's perception of value as the key to pricing

Some industries commonly use two-part pricing, breaking the price down into a fixed fee and a fixed usage rate.

False; variable usage rate

Target marketing

Family Dollar stores profitably focusing on buyers who have relatively modest means is an example of ________. A) convenience B) value pricing C) market segmentation D) target marketing E) value packing

1. Understand the Marketplace and customer needs and wants 2. Design a customer-driven marketing strategy 3. Construct an integrated marketing program that delivers superior value: Use the four P's 4. Build profitable relationships and create customer delight 5. Capture value from customers to create profits and customer equity

Five Step Marketing Process

Perceived value

Give customers an experience they believe is worth the price

Today almost every company, small and large, is affected in some way by which of the following?

Global Competition

attraction; intrusion

Greater consumer control means that companies must rely more on marketing by ________ than by ________. A) interruption; involvement B) attraction; intrusion C) socialization; information D) producing; selling E) inspiration; competition

Briefly compare and contrast the concepts of needs, wants, and demands, giving an example of each. Discuss how these concepts relate to marketing practices.

Human needs are states of felt deprivation. Needs are part of the human make-up; they are not created by external forces. Humans have a basic physical need for food, clothing, warmth, and safety; a basic social need for belonging and affection; and a basic individual need for knowledge and self-expression. Unlike needs, wants are not innate; instead, wants are needs shaped by culture, society, and individual personality. For example, an American needs food but wants a Big Mac and a soft drink. An American with ten dollars needs food, wants a Big Mac and soft drink, and demands lunch at McDonalds. Wants become demands when they are backed by consumers' buying power. Marketers conduct extensive research to understand customers' wants and demands. They then attempt to fulfill customers' wants and demands through their market offerings.

What is the first step in new product development?

Idea generation

Purposes of branding

Identification of marketer's product, familiarization by customer (repeat sales), influences quality standardization, creates efficiences for both customers and marketers, helps launch new products.

Retain

In addition to attracting new customers and creating transactions, the goal of marketing is to ________ customers and grow the company's business. A) encourage B) entertain C) retain D) recognize E) educate

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

It conducts business from an office via telephone.

What is the primary advantage of using television as an advertising medium?

It involves a low cost per exposure

Which of the following is a disadvantage of using a magazine as an advertising medium?

It involves high costs.

Which of the following is a disadvantage of standardization of advertising messages?

It is less responsive to local market needs.

What is the primary disadvantage of outdoor advertising?

It provides little audience selectivity.

Which statement is most likely true about the affordable method of setting an advertising budget?

It typically overlooks how promotion affects sales.

Line

Laborers

The societal marketing concept seeks to establish a balance between consumer short-run wants and consumer __________.

Long-run welfare

1. Assess information needs 2. Internal Databases 3. Marketing Intelligence 4. Marketing research 5. Types of data

MIS

Installations

Major capital goods, typically customized and expensive.

A(n) ___________ is the set of actual and potential buyers of a product.

Market

The set of all actual and potential buyers of a product or service

Market

Which of the following refers to sellers being preoccupied with their own products and losing sight of underlying consumer needs?

Market Myopia

Which of the following is created when consumers have diverse interests and backgrounds, resulting in distinct needs and wants?

Market fragmentation This means that people's diverse interests and backgrounds naturally divide them into numerous groups with distinct needs and wants. Because of this diversity, the same good or service will not appeal to everyone

Consumer research, product development, communication, distribution, pricing, and service are all core ________ activities.

Marketing

The Process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return

Marketing

Which concept holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do?

Marketing

The art and science of choosing target markets and building profitable relationships with them is called __________.

Marketing Management

i. Define problem and what to accomplish ii. Develop plan to get data iii. Implementation of plan iv. Analyze data, and report information

Marketing Research Plan

_________ recognizes that organizations thrive from day to day by determining the current needs and wants of target customers and fulfilling those needs and wants more effectively and efficiently than competitors do.

Marketing concept

Customer Generated Marketing

Marketing messages, ads, and other brand exchanges created by consumers themselves-both invited and uninvited.

The set of marketing tools a firm uses to implement its marketing strategy is called the _______.

Marketing mix

Customer_Managed Relationships

Marketing relationships in which customers, empowered by today's new digital technologies, interact with companies and with each other to shape their relationships with brands. Due to greater consumer control, companies can no longer rely on marketing intrusion but must practice marketing by attraction.

Pete Sanchez, a recent graduate of business school, has a different approach than his marketing manager, who believes in keeping customers at arm's length and using mass media advertising. Pete knows that today few successful firms still practice true ________ and are instead turning to selective relationship management.

Mass Marketing

Herb Kelleher of Southwest Airlines used the marketing concept in his successful organization. Having a customer department rather than a marketing department, as suggested by Kelleher, is an example of a(n) ________ perspective.

Outside-in

CRM - Customer Relationship Management

Overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction

To create customer value and build strong customer relationships, marketers know they cannot go it alone; therefore, they practice ________.

Partner Relationship Management

Partners inside and outside of the company

Partner relationship management focuses on working with ________ to bring more value to customers. A) partners inside and outside of the company B) competitors C) consumers D) interest groups E) all of the above

__________ show consumer perceptions of their brands versus those of competing products on important buying dimensions.

Perceptual positioning maps

Customer-perceived value is determined by a customer's _________ of the benefits and costs of a marketing offering relative to those of competing offers.

Personal Assessment

______ consists of arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.

Positioning

Which of the following is an indication of the specific value of an organization's product offering compared to the competition?

Positioning statement positioning statement can help the company frame internally how a product is positioned so that marketing communication remains focused on articulating to consumers the specific value offered by a product.

Consumer Products

Primarily purchased in order to satisfy individuals purchasing for personal or household needs.

Relevant but costs a lot i. Observe, Questionnaire and Experiment ii. Contact methods - Mail, telephone, personal and online

Primary Data

Railroads were once operated based on the thinking that users wanted trains rather than transportation, overlooking the challenge of other modes of transportation. This reflects the ________ concept.

Product

The ____________ concept is aligned with the philosophy of continuous product improvement and the belief that customers will choose products that offer the most in quality, performance, and innovative features.

Product

Construct an integrated marketing program that delivers superior value: Use the four P's

Product, Price, Promotion and Place

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

Which of the following marketing management concepts is most likely to lead to marketing myopia?

Production

Which of the following marketing management orientations focuses primarily on improving efficiencies along the supply chain?

Production Concept

What are the five alternative concepts under which organizations design and carry out their marketing strategies?

Production, product, selling, marketing, and social marketing concepts.

specilaty products

Products that are unique and one of a kind. Customers will typically exert a lot more effort when purchasing these products.

Unsought products

Products that customers may benefit from, but don't usually recognize their need and rarely actively seek. Every infomercial for a wacky product ever. Also, life insurance or travel insurance.

Which of the following is a variable used to segment consumer buyers that is not used to segment business buyers?

Psychographics

Marketers who develop profiles on customers based on activities, interests, and opinions are using _____ to better understand how to market to them.

Psychographics Psychographics segments consumers in terms of psychological and behavioral similarities, such as shared activities, interests, and opinions, or AIOs. Marketers often develop profiles of the typical customers they desire to paint a more vivid picture of them.

Exchange

Receiving cash or word of mouth for your product aka The act of obtaining a desired object from someone by offering something in return

________ is when major retailers draw a red line around disadvantaged neighborhoods and avoiding placing stores there.

Redlining

Brand equity

Refers to the fact that established brand names can create value through recognition.

__________ is the degree to which a consumer perceives that a new product provides superior benefits.

Relative advantage

________ advertising primarily maintains brand relationships and is important for mature products.

Reminder

Within the organization, what is the process that includes a systematic and well-defined approach to innovation?

Research and development Correct. This process is based on expenditures in research and development (R&D), which in most organizations is a well-defined and systematic approach to how it innovates.

1. Internal: Strengths and Weaknesses 2. External: Opportunities and Threats

SWOT

Sales promotions targeted at ________ are called trade promotions.

________ are the standards stating the amount salespersons should sell and how sales should be divided among the company's products.

Sales quotas

________ are offers of a trial amount of a product.

Samples

i. Advantage - Cheap and quick ii. Disadvantage - May not be relevant

Secondary Data/Already existing

Which of the following describes dimensions that divide the total market into fairly homogenous groups, each with different needs and preferences?

Segmentation variables

Which of the following segments would a marketer be utilizing if the marketer offered diapers in pink for girls and blue for boys?

Segmenting by gender

Target marketing

Selecting which segments of a population of customers to serve is called ________. A) market segmentation B) positioning C) customization D) target marketing E) choosing a value proposition

Members of the sales team at Dekko International visit only prospective customers who purchase a minimum of $50,000 of insulated wire per year. Dekko is using ________.

Selective Relationship Management

Using customer profitability analysis to weed out unprofitable customers and target winning ones for pampering is referred to as ________.

Selective Relationship Management

Jolene's firm markets preplanning services for a mortician. She finds that most of her target market wants to avoid discussing their future funeral needs, and she must somehow first get their attention. Jolene's firm is most likely practicing the ________.

Selking Concept

In a short essay, explain how and why marketers go beyond selling a product or service to create brand experiences.

Sellers are most effective when they focus more on the benefits and experiences produced by their products and services than on the specific products and services themselves. Smart marketers focus on creating a brand experience, incorporating several products and services for their customers. By doing so, marketers hope to increase customer satisfaction, creating a body of customers who will repeatedly purchase their market offerings and recommend those offerings to friends.

Which concept calls for aggressive selling and focuses on generating transactions to obtain profitable sales?

Selling

Business Services

Services that aid in the functioning of the business.

Which of the following describes an approach that modifies a basic good or service to meet the needs of an individual?

Set up a meeting with the VP of Marketing and other involved parties to define the problem that needs to be solved.

Amazon.com leverages relationships with its 35 million customers by offering them music, videos, gifts, toys, consumer electronics, and office products, among other items. Based on previous purchase history, the company recommends related CDs, books, videos, or other products that might interest a customer. This most directly helps Amazon.com capture a greater ________.

Share of Customer

When an airline goes after a "share of travel" from its customers, it is attempting to increase ________.

Share of Customer

Governmental agencies are becoming more involved in marketing as the years pass. When a local government advertises keeping the area's streams and water supply cleaner, it is involved in ________.

Social Marketing Compaigns

Some fast-food restaurants offer tasty and convenient food at affordable prices, but in doing so they contribute to a national obesity epidemic and environmental problems. These fast-food restaurants overlook the ________ philosophy.

Social Marketing Concept

Which of the following is a disadvantage of using social media tools for selling?

Social media tools can intimidate low-tech sales people or clients.

Sustainable Marketing

Socially and environmentally responsible marketing that meets the present needs of consumers and businesses while also preserving or enhancing the ability of future generations to meet their needs. Companies should balance three consideration in setting their marketing strategies: company profits, consumer wants, and society's interests.

Market Offerings

Some combination of products, services, information, or experiences offered to a market to satisfy a need or want. Not limited to physical products, can include services, which are activities or benefits offered for sale that are essentially intangible and do not result in the ownership of anything.

Which of the following describes demographics?

Statistics that measure observable aspects of a population, including size, age, gender, ethnic group, income, education, occupation, and family structure

Customer lifetime value

Stew Leonard, owner/operator of supermarkets, reacts adversely to losing a single customer sale. He feels that this amounts to losing the entire stream of future purchases that a customer is likely to make if he or she remains in the area. This is an illustration of ________. A) share of customer B) market share C) profitability D) customer lifetime value E) market share maintenance

A product position is the way a product is defined by consumers on important attributes.

A target market consists of a set of buyers who share common needs or characteristics that the company decides to serve.

Acquisition involves the purchase of a whole company, a patent, or a license to produce someone else's product.

Advertisements for prescription drugs often feature potential benefits and negative side effects that consumers may experience with use of the medication. These ads present two-sided arguments.

Although products that remain in the maturity stage of the PLC seem unchanged, the most successful ones actually evolve to meet changing consumer needs.

As mass markets have fragmented, marketers have shifted away from mass marketing.

Benefit segmentation requires finding the major benefits people look for in a product class, the kinds of people who look for each benefit, and the major brands that deliver each benefit.

Blogs can be used to appeal to specific special-interest groups, about almost any topic.

Branded community Web sites are designed to present brand content that engages consumers and builds closer customer relationships rather than to sell the company's products directly.

Buzz marketing involves cultivating opinion leaders and getting them to spread information about a product or service to others in their communities.

Communications technologies such as cell phones and the Internet give companies new media for interacting with targeted consumers, but these technologies also give consumers more control over the advertising messages they receive.

Direct and digital marketing includes catalogs, e-mail, direct mail, social media, and mobile marketing.

Gender segmentation has long been used in clothing, cosmetics, toiletries, and magazines.

Good marketing communications can speed the demise of a poor product.

Individual marketing is also known as one-to-one marketing, mass customization, and markets-of-one marketing.

JumBo Games is in the commercialization stage. The first decision that the firm should make while introducing the product in the market is introduction timing.

Large-scale advertising conveys a positive message about the seller's size, popularity, and success.

Less-for-much-less positioning involves meeting consumers' lower performance or quality requirements at a much lower price.

Most companies use direct marketing as a supplementary channel or medium.

New product development begins with a systematic search for new product ideas through idea generation.

Psychographic segmentation divides buyers into different segments based on lifestyle or personality characteristics.

Sales of products decline because of technological advances, shifts in consumer tastes, and increased competition.

Social media marketing can be inexpensive for companies to use.

Spam is unsolicited, unwanted commercial e-mail messages that clog up users' e- mailboxes.

Telemarketing is especially effective for business-to-business marketers.

The Children's Online Privacy Protection Act requires online operators targeting children to post privacy policies on their sites and notify parents about any information they are gathering and obtain parental consent before collecting information from children under age 13.

The customer-driven marketing strategy involves four steps: market segmentation, market targeting, positioning, and differentiation.

The integrated marketing concept ties together all of the company's messages and images.

The percentage-of-sales method wrongly views sales as the cause of promotion rather than as the result.

Using the PLC concept to develop marketing strategy can be problematic because strategy is both a cause and a result of the product's life cycle.

When using a niche marketing strategy, a firm goes after a large share of one or a few smaller segments.

Which of the following is the process of developing products for a specific segment of a larger market?

Target marketing Marketers select a target marketing strategy in which they divide the total market into different segments based on customer characteristics, select one or more segments, and develop products to meet the needs of those specific segments.

What is the name for a strategy in which marketers evaluate the attractiveness of each potential segment and decide in which of these groups they will invest resources to turn them into customers?

Targeting

Explain how the Internet has transformed the way in which we do business today.

The Internet links individuals and businesses of all types to each other. The Internet allows firms access to exciting new marketspaces. The Internet has spawned an entirely new breed of "click only" companies-the "dot-coms." The post-Internet frenzy of the late 1990s has introduced companies that are both savvy and face promising futures. These companies use a set of new Web technologies to reach customers, including blogs (web logs), vlogs (video-based logs), and social networking sites. "Brick-and-mortar" companies of the past are now "click-and-mortar" companies, with online presences aimed at attracting new customers and strengthening bonds with current customers. Approximately 65% of American Internet users now shop online, making a Web presence a necessity for any organization.

Selling

The ________ concept calls for aggressive selling and focuses on generating transactions to obtain profitable sales. A) marketing B) production C) product D) selling E) societal marketing

Social Marketing

The ________ concept holds that firms must strive to deliver value to customers in a way that maintains or improves both the consumer's and society's well being. A) marketing B) selling C) product D) societal marketing E) equity

Marketing Management

The art and science of choosing target markets and building profitable relationship with them. Marketing management is customer management and demand management.

Marketing Management

The art and science of choosing target markets and building profitable relationships with them is called ________. A) marketing management B) positioning C) segmentation D) selling E) societal marketing

Which of the following is a disadvantage of using online, mobile, and social media for advertising?

The audience controls ad exposure.

True Friends

The authors of your text classify customers into four relationship groups, according to the customers' profitability and projected loyalty. ________ are the customers with the highest profit potential and strong loyalty. A) Barnacles B) Strangers C) Butterflies D) True friends E) Big fish

Customer Perceived Value

The customer's evaluation of the difference between all the benefits and all the costs of a marketing offer relative to those competing offers

Customer-Perceived Value

The customer's evaluation of the difference between all the benefits and all the costs of a marketing offer relative to those of competing offers. These are 'perceived' values because customers often do not judge values and costs accurately or objectively.

Capturing Value from Customers

The final step in the marketing process is ________. A) capturing value from customers B) creating customer loyalty C) creating customer lifetime value D) understanding the marketplace E) designing a customer-driven marketing strategy

t is most accurate to say that customers buy from stores and firms that offer which of the following?

The highest customer-perceived value

The Social Marketing Concept

The idea that a company's marketing decisions should consider consumer's wants, the company's requirements, consumers' long-run interests, and society's long-run interests.

Selling Concept Ex. Ritz Carolton

The idea that a consumer will not buy enough of the firms products unless it undertakes a large selling and promotion effort. Typically practiced with unsought goods like insurance and blood donations. Focuses on the factory and existing products, and the profits are gained through selling and promoting and higher sales volume. This is an inside-out perspective. Such aggressive selling can carry high risks however; loss of focus on building long-term customer relationships, and the company will focus on the company's current products more than what the market actually wants.

Customer-Managed Relationships

The marketing world is embracing ________ because consumers can wield greater power and control in the marketplace through communication technologies. A) partner relationship management B) supply chain management C) customer-managed relationships D) market segmentation E) target marketing

Customer Relationship Management (CRM)

The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction. Perhaps the most important concept of modern marketing.The key to building lasting customer relationships is to create superior customer value and satisfaction.

Which of the following is most likely true of a sales force?

The performance difference between an average salesperson and a top salesperson is generally substantial.

Tangible Product

The specific features that are a part of the product. These features can be tangible or intangible. The style of the car, the size, the seat fabric. This level of product planning can't be left to just the engineers, otherwise it will be like the great car that Ford couldn't sell.

Company Profits

The three areas of consideration that should be balanced in the societal marketing concept are consumer wants, society's interests, and ________. A) human welfare B) want satisfaction C) company profits D) short-run wants E) long-term needs

Customer Equity

The total combined customer lifetime values of all of the company's customers. Companies should view customers as assets that must be managed and maximized. Customers can be classified into four relationship groups based on potential profitability and projected loyalty: strangers, butterflies, true friends, and barnacles. Different types of customers require different relationship management strategies and the goal is to build the right relationships with the right customers. Strangers show low potential profitability and little projected loyalty. Butterflies are potentially profitable but not loyal. True friends are both profitable and loyal. Barnacles are highly loyal but not very profitable.

Customer Lifetime Value

The value of the entire stream of purchases that the customer would make over a lifetime of patronage.

a firm providing interesting information about a product to the news media

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

Supply Chain Management

Through ________, many companies today are strengthening their connections to all partners, from providers of raw materials and components to final buyers who purchase final products. A) supply chain management B) direct marketing C) partnership relationship marketing D) customized marketing E) deviated marketing

Which of the following best explains why consumers have greater power and control in today's marketplace?

Through new communication technologies, customers have more access to information and more methods of sharing their opinions with other customers.

________ are sales promotion tools used to generate new business leads, stimulate purchases, educate customers, and motivate salespeople.

Trade shows

Which of the following has NOT contributed to the deeper, more interactive nature of today's customer relationships?

Traditional advertising

A break-even chart shows the total cost and total revenue expected at various sales volume levels.

True

Companies need to respond to a competitor's price change if its own market share and profits will decrease because of the change.

True

Constantly reduced prices can erode a brand's value in the eyes of customers.

True

For market skimming to be successful, the costs of producing a smaller volume cannot be so high that they cancel the advantage of charging more.

True

For segmented pricing to be an effective strategy, prices should reflect real differences in customers' perceived value.

True

If demand is elastic rather than inelastic, sellers will consider lowering their prices.

True

In customer value-based pricing, price is considered along with all other marketing mix variables before the marketing program is set.

True

In product line pricing, price steps should account for differences in customer perceptions of the value of different features.

True

Internal factors affecting pricing include the company's overall marketing strategy, objectives, and marketing mix.

True

Labels range from simple tags attached to products to complex graphics that are part of the packaging.

True

Large-scale marketing approaches that foster two-way customer relationships are made possible by new communication technologies. T/F

True

Markup pricing is popular because when all firms in the industry use this pricing method, prices tend to be similar, so price competition is minimized.

True

Multibranding offers a way to establish different features that appeal to different customer segments, lock up more reseller shelf space, and capture a larger market share.

True

Overhead costs are costs that do not vary with production or sales level.

True

Price discrimination is permissible if the seller manufactures different qualities of the same product for different retailers and can prove that the price difference is proportional.

True

Service companies can differentiate their service delivery by having more able and reliable customer-contact people.

True

The augmented product is the actual product plus the various services and benefits offered with it, such as a warranty, free delivery, installation, and maintenance.

True

The difference between human needs and wants is that needs are not influenced by marketers. True/False

True

The selling concept holds that consumers will not buy enough of the firm's products unless it undertakes a large-scale selling and promotion effort. T/F

True

The simplest pricing method is cost-plus pricing, which involves adding a standard markup to the cost of the product.

True

The societal marketing concept calls on marketers to balance consumer wants and desires, company profits, and society's interests. T/F

True

The total financial value of a brand is brand value.

True

Using value-based pricing, a marketer would not design a product and marketing program before setting the price.

True

Variable costs change directly with the level of production.

True

When it becomes necessary to reduce demand for a product or service, an organization may use demarketing to reduce or shift the number of customers. T/F

True

While lower prices may attract additional customers, it is possible for pricing strategies to result in the product becoming a commodity in the customers' eyes.

True

With selective relationship management, companies use customer profitability analysis to eliminate losing customers and target winning ones. T/F

True

In 1938, Congress enacted the ________, which gave the Federal Trade Commission (FTC) power to regulate "unfair or deceptive acts or practices."

Wheeler-Lea Act

Share of Customer

When an airline goes after a "share of travel" from its customers, it is attempting to increase ________. A) its value proposition B) share of customer C) target markets D) customer variety E) customer ownership

Customer-driving

When customers don't know what they want or don't even know what's possible, the most effective strategy is ________ marketing. A) customer-driven B) customer-driving C) societal D) production E) product

When you want something and can afford it i. Also called buying power ii. Adjust price to adjust size of market

When is demand created

"Why should I buy your brand rather than a competitor's?"

Which customer question is answered by a company's value proposition? A) "Why should I buy your brand rather than a competitor's?" B) "How does your brand benefit me and society?" C) "What are the costs and benefits of your brand?" D) "What kind of experience will I have with products and services associated with this brand?" E) "What are the benefits of being a loyal consumer of your brand?"

Spending less and choosing products more carefully

Which of the following has been the most common consumer response to the economic downturn that began in 2008? A) spending more on luxury items B) discontinuing any spending on luxury items C) spending less and choosing products more carefully D) spending less but choosing products less carefully E) saving more but spending more on credit cards

Online marketing

Which of the following is currently the fastest-growing form of marketing? A) consumer-generated marketing B) online marketing C) mass media marketing D) social marketing E) word-of-mouth marketing

Customer Evangelists

Which of the following is the term for customers who make repeat purchases and tell others about their positive experiences with a product or service? A) satisfied customers B) customer evangelists C) butterflies D) full partners E) social customers

Product

Which of the following marketing management concepts is most closely aligned with the philosophy of continuous product improvement and the belief that customers will choose products that offer high quality, performance, and innovative features? A) product B) production C) customer D) marketing E) promotion

Product

Which of the following marketing management concepts is most likely to lead to marketing myopia? A) customer-driven marketing B) customer-driving marketing C) societal marketing D) selling E) product

Production Concept

Which of the following marketing management orientations focuses primarily on improving efficiencies along the supply chain? A) production concept B) product concept C) selling concept D) marketing concept E) societal marketing concept

The internet allows anytime, anywhere connections to information, entertainment, and communication.

Which of the following statements about the Internet is most accurate? A) Companies are hesitant to use the Internet to build closer relationships with customers and marketing partners alike. B) The Internet is still in its infancy with few consumers buying products and/or services online. C) The Internet allows anytime, anywhere connections to information, entertainment, and communication. D) Consumer e-commerce looks promising, but business-to-business e-commerce is declining. E) Web 2.0 involved a less balanced approach to online marketing than the original dot-com boom did.

A Value Proposition

________ is the set of benefits a company promises to deliver to its consumers to satisfy their needs. A) A money-back guarantee B) Low pricing C) Good customer service D) A value proposition E) An attribute

Customer Equity

________ is the total combined customer lifetime values of all the company's current and potential customers. A) Share of customer B) Customer lifetime value C) Customer equity D) Profitability E) Share of market

Marketing myopia

________ refers to sellers being preoccupied with their own products and losing sight of underlying consumer needs.

12) ________ is the most basic determinant of a person's wants and behavior. A) Culture B) Brand personality C) Cognitive dissonance D) Motive E) Attitude

A ________ consists of all the product lines and items that a particular seller offers for sale. A) product mix B) store brand C) supply chain D) value chain E) line extension

A ________ is a group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same type of outlets, or fall within given price ranges. A) product line B) line extension C) private brand D) multibrand E) new brand

A buyer's decisions are influenced by ________ such as the buyer's age and life-cycle stage, occupation, economic situation, lifestyle, personality, and self-concept. A) personal characteristics B) stereotypes C) perceptions D) attitudes E) psychographics

A seller offers a ________ to trade-channel members who perform certain functions, such as selling, storing, and record keeping. A) functional discount B) storage allowance C) cash discount D) promotional allowance E) quantity discount

A(n) ________ refers to promotional money paid by manufacturers to retailers in return for an agreement to feature the manufacturer's products in some way. A) allowance B) sample C) discount D) tax credit E) tax exemption

According to the commercialization stage of the new product development process, following the decision to introduce the new product at a particular time, a company must next decide ________. A) where to launch the new product B) how to launch the new product C) why to launch the new product D) what pricing strategies to implement E) what marketing mix elements to use

Cameron loves to own and be up-to-date on the latest technological gadgets available in the market. Among his friends, he is always the first to own the latest electronic gadgets. He loves trying out new products before others. Cameron most likely belongs to the ________ adopter group. A) innovator B) surrogate consumer C) late mainstream D) early mainstream E) lagging

Companies can legitimately charge a higher price if ________. A) consumers perceive that the company's product offers greater value B) the demand for products manufactured by a firm is highly elastic C) the cost of advertising is minimal D) derived demand remains constant E) consumers de-emphasize quality

Developing an effective integrated marketing mix program involves coordinating price decisions with product design, promotion, and ________ decisions. A) distribution B) production C) assembly D) warranty E) competition

Experience-curve pricing assumes that ________. A) competitors are weak and not willing to match price cuts B) competitors are strong and invincible C) aggressive pricing adversely affects product image D) volume-based production slows down organizational learning E) lower-cost technologies are almost always inferior

Fixed costs ________. A) are costs that do not vary with production or sales level B) vary directly with the level of production C) decrease with accumulated production experience D) are the sum of the overhead and variable costs for any given level of production E) represent the annual costs of inputs incurred by a company

Go Zone plans to introduce four tablet models over the next year. These models range from basic readers at $99 per unit, to more sophisticated tablets at $399 per unit. The more features a model has, the more expensive it is. What pricing strategy is Tone Zone using for its range of tablets? A) product line pricing B) product bundle pricing C) captive product pricing D) by-product pricing E) optional product pricing

Hearth & Home, a store which sells household products, has announced a one-week sale on its new carpet line. This is an example of ________. A) promotional pricing B) seasonal pricing C) by-product pricing D) product bundle pricing E) time-based pricing

Hispanic Americans tend to be deeply family oriented and make shopping a family affair. Older consumers are brand loyal, while younger Hispanics have shown increasing price sensitivity and willingness to choose store brands. Hispanic Americans make up a ________. A) subculture B) social class C) social network D) life-cycle stage E) lifestyle

In Viña del Mar, Chile, a large number of shops specialize in selling the same quality of seafood products along the beach frequented by tourists. No individual shop dares charge more than the going price without fearing loss of business to other shops. This exemplifies ________. A) pure competition B) monopolistic competition C) oligopolistic competition D) pure monopoly E) the dominant firm model

In a(n) ________, new products and marketing tactics are tested among specifically identified groups of customers and stores. A) controlled test market B) simulated test market C) standard test market D) systematic sample E) accidental sample

In the aftermath of the Great Recession of 2008 to 2009, consumers ________. A) have become more value conscious B) have become less value conscious C) exhibit great interest in prestige pricing D) show no interest in price cutting E) rarely endorse value-for-money deals

In which of the following geographic pricing strategies would customers located close to the company pay the same amount as customers in distant locations? A) uniform-delivered pricing B) zone pricing C) FOB-origin pricing D) location-based pricing E) reference pricing

In which situation is the market dominated by one seller? A) pure monopoly B) monopolistic competition C) oligopolistic competition D) pure competition E) free market

Industrial products and services include raw materials, buildings, fixed equipment, supplies, services, and ________. A) computers and desks B) electricity C) groceries D) insurance E) employees

Lubricants, coal, paper, and pencils are examples of ________. A) operating supplies B) capital items C) raw materials D) specialty products E) installations

Many companies use ethnically specific themes in their mainstream marketing strategy because marketers have realized that insights gleaned from ethnic consumers can influence their broader markets. This type of marketing is known as ________. A) total market strategy B) buzz marketing C) social networking D) word-of-mouth marketing E) life-style marketing

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 ________. A) selective distortion B) cognitive dissonance C) selective retention D) selective attention E) consumer ethnocentrism

Marketers describe the way a consumer processes information to arrive at brand choices as ________. A) alternative evaluation B) information search C) impulse buying D) consumer capitalism E) cognitive dissonance

Marketing mix planning begins with ________. A) building an offering that brings value to target customers B) finding a suitable promotion strategy for the product C) setting a reasonable price for the product D) selecting the right channel for distribution of the product E) calculating the total costs involved in manufacturing the product

Opinion leaders are also referred to as ________. A) leading adopters B) lower uppers C) innovators D) lagging adopters E) surrogate consumers

P&G introduced its Duncan Hines ready-to-spread frosting in a small geographic area. When General Mills became aware of the product, it rushed to market its own Betty Crocker ready-to-spread frosting, which eclipsed the Duncan Hines product introduction. General Foods was able to enter the ________ stage of the new product development process before P&G could. A) commercialization B) co-marketing C) idea generation D) idea screening E) simulation

Price discrimination may be used to match competition as long as the strategy is temporary, localized, and ________. A) defensive B) offensive C) publicized D) private E) uniform across channels

Price setting is usually determined by ________ in small companies. A) the top managers B) the marketing department C) the sales department D) divisional managers E) product managers

Some products that have entered the decline stage have been cycled back to the growth stage through ________. A) repositioning B) harvesting C) maintaining D) pruning E) expanding

Sparkling Valley, a luxury resort, prices cottages facing the lake higher than cottages that do not, even though the cottages and services offered are identical in every other aspect. This form of pricing is called ________ pricing. A) location-based B) time-based C) by-product D) seasonal E) captive product

Steelz Inc. has designed a process that manufactures an improved version of steel more efficiently, which will save the firm both money and resources. In considering the launch of this new steel in the market, the firm must first decide on ________. A) timing B) location C) organizational structure D) test marketing E) product mix

Stephanie and John wanted to purchase a high-end sports car. They viewed a commercial for a particular sports car that highlighted the cost, design, and power of the car. After viewing the ad, Stephanie felt that the car's price was acceptable, considering the superior and unique design. John thought that the car was expensive owing to the high power engine installed in it. They used the information in different ways, focusing on issues that each considered important. Which of the following concepts does this scenario demonstrate? A) selective distortion B) consumer ethnocentrism C) selective retention D) selective attention E) cognitive dissonance

The "bottom of the pyramid" refers to ________. A) the world's poorest consumers B) the middle classes of Brazil, Russia, India, and China C) a market with little or no purchasing power D) people with easy access to luxury goods E) the middle class of high-income countries

The Sherman, Clayton, and Robinson-Patman Acts are all federal laws that were enacted to curb the formation of ________. A) monopolies B) global partnerships C) competitive markets D) internal markets E) intrastate partnerships

The break-even volume is the point at which ________. A) the total revenue and total cost curves intersect B) demand equals supply C) the production of one more unit will not lead to increase in demand D) the company can pay off all its long-term debt E) a firm exceeds the sales forecast

The buying decision process starts with ________, in which the buyer spots a problem. A) need recognition B) information search C) impulse purchases D) buyer's remorse E) alternative evaluation

The long-run average cost (LRAC) curve indicates the ________. A) per unit cost of output in the long run B) projected total production costs of competitors C) variable costs incurred by a firm over time D) fixed costs incurred by a firm over the long term E) number of units the market will buy in a given time period, at different prices that might be charged

The major purpose of test marketing is to provide management with the information needed to make a final decision about ________. A) the entire marketing program B) which market to compete in C) whether to launch the new product D) how to compete in the market E) how long to compete in the market

The new felt-tip pens, multiple-cartridge pens, and quills offered by Ruben Delgado are examples of ________. A) product line filling B) multibranding C) megabranding D) product line inconsistencies E) co-branding

The product development stage requires ________. A) a huge jump in investment B) salespeople to contact potential customers C) financial analysis D) a few hours E) management approval

The relationship between the consumer's expectations and the product's ________ determines whether the buyer is satisfied or dissatisfied with a purchase. A) perceived performance B) brand personality C) market reach D) consumer market E) market share

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 ________. A) line filling B) social marketing C) market diversification D) negative brand equity E) person marketing

To take advantage of a downward-sloping experience curve, a company must do all of the following EXCEPT ________. A) increase the product's price B) be able to sell the higher volume of product C) price its product lower D) increase its production output E) decrease its costs through experience gained

Today, most companies are adopting the concept of ________, which carefully combines and coordinates the company's many communication channels to deliver a clear, consistent, and compelling message about the organization and its brands. A) integrated marketing communications B) pull strategy C) vertical diversification D) nonpersonal communication channels E) buzz marketing

Tristan and Juliet, a newly married couple who intend to go to Egypt for their honeymoon, bought a Europe travel package on Jizo Inc., an online travel site. As they have never seen Europe or used the services of Jizo before, they were largely dependent on other customers' feedback and signals for service quality. Which of the following characteristics of service is highlighted in this instance? A) service intangibility B) service inseparability C) service variability D) service perishability E) service distinction

Under ________ pricing, different versions of the product are priced differently but not according to differences in their costs. A) product form B) optional product C) captive product D) by-product E) seasonal

Under ________, the market consists of many buyers and sellers trading in a uniform commodity. A) pure competition B) monopolistic competition C) oligopolistic competition D) a pure monopoly E) the dominant firm model

Underpriced products ________. A) produce less revenue than they would if they were priced at the level of perceived value B) sell poorly in the global marketplace C) produce more revenue than they would if they were priced at the level of perceived value D) mostly offer higher value than those with a high markup price E) are characterized by rapidly declining demand

When a company sets a high price for a new product with the intention of reducing the price in the future, it is using the ________ pricing strategy. A) market-skimming B) cost-plus C) market-segmentation D) market-penetration E) competitive

When companies set prices, the government and social concerns are ________ factors affecting pricing decisions. A) external B) internal C) economic D) cultural E) organizational

Which consumer group tends to show more brand loyalty and makes shopping a family event, with children having a big say in the purchase decision? A) Hispanic Americans B) African Americans C) Arab Americans D) working class consumers E) middle class consumers

Which form of geographic pricing is a company using when it charges the same rate to ship a product anywhere in the United States? A) uniform-delivered pricing B) psychological pricing C) zone pricing D) FOB-origin pricing E) basing-point pricing

Which of the following companies uses captive product pricing? A) Photo Genie, which sells inexpensive cameras that run only on their own expensive batteries B) Go Zone, which launched a range of tablet models, each priced according to its features C) Penguin's Parlor, which offers customers a 20-percent discount on their birthdays D) Sportsprint, which prices sports equipment according to customer evaluations E) Burger Den, whose combo meals are priced lower than its individual components sold together

Which of the following is NOT true of public policies and pricing? A) Companies are free to charge whatever prices they wish. B) Federal, state, and local laws govern the rules of fair play in pricing. C) Deceptive pricing is not permitted. D) Companies must consider broader societal pricing concerns. E) Regulations exist to control predatory pricing.

Which of the following is a common reason for new product failure? A) incorrect estimation of the market size B) low product development costs C) ineffective social marketing campaigns D) low selling prices of products E) patent ownership exclusively held by the company

Which of the following is a consequence of standardizing an international product? A) image consistency B) regional design flexibility C) decreased product demand D) increased manufacturing costs E) higher marketing costs

Which of the following is a geographical pricing strategy? A) basing-point pricing B) segmented pricing C) dynamic pricing D) Internet pricing E) location-based pricing

Which of the following is an adverse effect of using promotional pricing? A) It makes shopping stressful if used by multiple stores simultaneously. B) It erodes the value of competing brands in the eyes of customers. C) It gives pricing secrets away to competitors. D) It creates "deal-immune" customers if used often. E) It delays the company's focus on short-term strategies.

Which of the following is an example of a convenience product? A) fast food B) diamond ring C) furniture D) life insurance E) refrigerator

Which of the following is the first stage in the new product adoption process? A) awareness B) adoption C) evaluation D) interest E) trial

Which of the following is true of product bundle pricing? A) It promotes the sale of products that consumers might not otherwise buy. B) It is used to set prices across an entire product range based on customer evaluations. C) It forces customers to buy product parts that are only compatible with the main product. D) It results in companies making fewer—though more profitable—sales. E) It involves pricing the main product low and setting high markups on the supplies.

Which of the following is true of product line pricing? A) The price steps take cost differences between products in the line into account. B) The pricing strategy cannot be used by companies in developed countries. C) The price steps do not account for the prices of similar products from competitors. D) The pricing strategy involves overpricing products so that they appeal to the elite. E) The customer's perception of the value of different features is considered irrelevant.

Which of the following is true of promotional pricing? A) It leads to 'deal-prone' customers who buy products only during sales. B) It fortifies the brand's image in the eyes of customers if relied upon extensively. C) It simplifies shopping for customers if used simultaneously by multiple stores. D) It makes balancing short-term sales incentives against long-term brand building unnecessary. E) It is extremely beneficial for the brand's profitability if practiced repeatedly.

Which of the following is true of value-based pricing? A) The targeted value and price drive decisions about what costs can be incurred and the resulting product design. B) Value-based pricing is mostly product driven. C) Value-based pricing involves setting prices based on the costs of producing, distributing, and selling the product plus a fair rate of return for its effort and risk. D) The marketer usually designs a product and marketing program and then sets the price. E) A company using value-based pricing designs what it considers to be a good product, adds up the costs of making the product, and sets a price that covers costs plus a target profit.

Which of the following is true with regard to pure competition? A) Under pure competition, no single buyer or seller has much effect on the going market price. B) In a purely competitive market, marketing research is of utmost importance. C) In a purely competitive market, product development is the focus of most firms. D) Under pure competition, the market consists of many buyers and sellers who trade over a range of prices rather than a single market price. E) Under pure competition, the market consists of only a few large sellers.

Which of the following price adjustment strategies offers a price reduction to buyers who pay their bills promptly? A) cash discount B) season discount C) quantity discount D) trade discount E) functional discount

Which of the following promotion categories is most likely to include the use of displays, discounts, coupons, and demonstrations? A) sales promotion B) direct and digital marketing C) horizontal diversification D) public relations E) advertising

Which of the following shows the number of units the market will buy in a given time period, at different prices that might be charged? A) demand curve B) supply curve C) learning curve D) break-even pricing E) target costing

Which of the following stages of new product development was Evelyn involved in when she set up a demonstration booth to learn about consumers' feelings toward her vacuum cleaner? A) concept testing B) marketing strategy development C) idea screening D) commercializing E) crowdsourcing

Which of the following stages of the PLC is characterized with the same level or slightly higher level of promotional expenditures in an attempt to respond to increasing competition? A) growth B) decline C) maturity D) product development E) adoption

Which of the following strategies involves weeding out weaker brands and focusing marketing dollars only on brands that can achieve the number one or number two market share positions with good growth prospects in their categories? A) megabrand strategies B) niche marketing strategies C) social marketing strategies D) co-branding E) licensing

Which of the following would lead to greater competition in the maturity stage of the PLC? A) overcapacity B) market pioneers C) poor management D) inadequate promotion E) diminishing budgets

Which of the following would most likely be included in an executive's write up of a new product idea to be presented to a new product committee? A) the proposed customer value proposition B) the product image C) the marketing strategy D) the business analysis E) the pricing strategy

With accumulated production experience and a higher volume of production, companies not only become more efficient but also ________. A) gain economies of scale B) incur higher overhead costs C) create derived demand in the market D) spend more per unit of produced output E) tend to routinely spend less on inputs

________ allowances are payments or price reductions that reward dealers for participating in advertising and sales support programs. A) Promotional B) Trade-in C) Segmented D) Functional E) Dynamic

________ are less frequently purchased consumer products and services that customers compare carefully on suitability, quality, price, and style. A) Shopping products B) Convenience products C) Unsought products D) Capital items E) Supplies and repair services

________ are people within a reference group who, because of special skills, knowledge, personality, or other characteristics, exert influence on others. A) Opinion leaders B) Innovators C) Surrogate consumers D) Stealth marketers E) Lagging adopters

________ are society's relatively permanent and ordered divisions whose members share similar values, interests, and behaviors. A) Social classes B) Societal norms C) Reference groups D) Universal cultures E) Social networks

________ involves designing and producing the container or wrapper for a product. A) Packaging B) Patenting C) Servicing D) Co-branding E) Labeling

________ is the only element in the marketing mix that produces revenue. A) Price B) Product C) Place D) Fixed costs E) Variable costs

________ pricing involves charging higher prices on an everyday basis but running frequent promotions to lower prices temporarily on selected items. A) High-low B) Everyday low C) Cost-plus D) Break-even E) Penetration

________ pricing uses buyers' perceptions of value as the key to pricing. A) Customer value-based B) Cost-based C) Time-based D) Markup E) Target return

________ refers to a measure of the sensitivity of demand to changes in price. A) Price elasticity B) A demand curve C) Price-value equation D) Marginal utility E) Income elasticity of demand

Universal Product Codes (UPCs)

a Series of thick and think lines (bar codes) readable by computerized optical scanners, that represent numbers used to track products.

Trademark

a brandmark that has been registered for legal protection. the swoosh.

Which of the following is an example of a combination of sales promotions and direct marketing?

a company sending an e-mail to a customer about a discount on a product during a holiday season

Warranty

a confirmation of the quality or performance of a good or service

Which of the following is an example of a firm utilizing public relations as a promotion tool?

a firm providing interesting information about a product to the news media

A concentrated targeting strategy focuses

a firm's efforts on offering one or more products to a single segment.

Remington Motors releases a new line of hybrid electric vehicles called Electra. The line promises superior mileage and excellent horsepower in an environmentally friendly automobile. Remington decides to use advertising as the promotional tool for the car's launch. Which of the following would qualify as an advertisement for Electra?

a front-page notice of the release of Electra in all leading newspapers with the caption "Green Speed"

What is a concentrated targeting strategy?

a strategy used to select one segment of a market for targeting marketing efforts

Which of the following is most likely an example of a business promotion tool?

a trade fair showcasing a new audio system developed by an electronics firm

Koffee, a brand of instant coffee, gives away a free coffee mug with its logo imprinted on it with every purchase of a 500g packet of its instant coffee powder. Which promotion tool is Koffee using?

advertising specialties

Kidcomp, an American computer-manufacturing firm, targets children below the age of ten by providing free games and applications. The firm's marketing approach is reflective of ________ segmentation.

age and life cycle

Marketers must be careful to guard against stereotypes when using ________.

age and life cycle segmentation

A customized marketing strategy tailors specific products

and the messages about them to individual customers.

Based on the marketing research findings, which of the three products looks like the best choice to bring to market?

anti-aging cream

Customer service

any added activity that may be included as part of the augmented product

n undifferentiated targeting strategy

appeals to a broad spectrum of people.

In which step of the selling process does a salesperson most likely meet a customer for the first time?

approach

Sheldon Parks works as a salesperson in a large company that sells vending machines and beverages like coffee, tea, and hot chocolate. He meets Rosa Thoms, a potential client who heads the administration department of a large MNC, and speaks to her at length to determine the kind of vending machine and beverages her company would need. After understanding the specifications, he provides her team of employees with samples to obtain their feedback. At which step of the selling process is Sheldon in the above scenario?

approach

Which of the following is the collection of features, functions, packaging, and uses of a tangible item?

attributions Correct. A product is a tangible good, service, idea, or some combination of these that satisfies consumer or business customer needs through the exchange process; it is a bundle of attributes, including features, functions, benefits, and uses as well as its brand and packaging.

A ________ consists of the activities an individual is expected to perform, according to the people around him/her. A) motive B) role C) lifestyle D) life cycle E) perception

A ________ is a name, term, sign, symbol, design, or a combination of these, that identifies the maker or seller of a product or service. A) feature B) brand C) line extension D) package E) value chain

A company can install a(n) ________ management system to collect, review, evaluate, and manage new product ideas. A) quality B) innovation C) content D) supply chain E) customer relationship

A company faces fixed costs of $100,000 and variable costs of $8 per unit. It plans to directly sell its product in the market for $12. How many units must it produce and sell to break even? A) 20,000 B) 25,000 C) 30,000 D) 35,000 E) 40,000

A detailed version of a new idea stated in meaningful customer terms is called a product ________. A) solution B) concept C) image D) proposal E) lining

A manufacturer has fixed costs of $100,000, a variable cost of $10 per unit of output, and break-even volume of 50,000 units. What should the manufacturer's unit cost be in order to break even? A) $10 B) $12 C) $14 D) $16 E) $20

A marketing research company asked members of a focus group to describe several brands as animals. The purpose of the request is to measure the prestige of the various brands. This is an example of ________. A) brand strength analysis B) interpretive consumer research C) quantitative research D) buzz marketing E) brand extension

A quantity discount is a price reduction for buyers who ________. A) buy merchandise out of season B) buy merchandise in bulk C) pay their bills on time D) buy discontinued products E) return old items while buying new ones

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. A) membership group B) reference group C) status symbol D) subculture E) lifestyle

A(n) ________ chooses a strategy consistent with the intended product positioning. To gain market leadership requires correct decisions from the beginning. A) brand evangelist B) market pioneer C) early adopter D) laggard E) harvester

According to the PLC, the ________ stage is reached when sales plunge to zero, or when they drop to a low level where they continue for many years. A) laggard B) decline C) maturity D) growth E) incubation

Alex Smith rents storage space to college students who go home for the summer but do not want to haul all of their property home and back. The business is profitable during the summer months, but when the storage space is unoccupied in the off-season, Alex loses money. Which of the following characteristics of service is most likely the source of Alex's problem? A) intangibility B) perishability C) inconsistency D) variability E) inseparability

Although more price-conscious than other population segments, ________ consumers tend to be strongly motivated by quality and selection, and give importance to brands. A) lower upper B) African American C) Asian American D) Filipino E) working class

An attractive product idea must be developed into a ________. A) concept alternative B) product concept C) brand personality D) brand placement E) product strategy

An easier, more comfortable, more stylish transfer of thought onto paper refers to the ________ of Ruben's offerings. A) tangible element B) core customer value C) actual product D) augmented product E) service variability

Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor is called ________ and includes broadcast, mobile, print, and online forms. A) sales promotion B) advertising C) direct and digital marketing D) personal selling E) public relations

Apollo Couriers, a company providing international express mail services, has a proactive customer communications team. The primary job of this team is to identify situations that led to customer dissatisfaction, and then provide quick remedies to fix the problems. To a great extent, this has helped Apollo in winning customer loyalty. In this instance, Apollo has benefitted from ________. A) product differentiation B) good service recovery C) multibranding D) place marketing E) co-branding

As a manufacturer increases the price, ________. A) efficiency drops B) the break-even volume drops C) competition is minimized D) the total costs increase E) the profit margin shrinks

As production workers become better organized and more familiar with equipment, the average cost per unit tends to decrease with the ________. A) increase in the diseconomies of scale B) accumulated production experience C) decrease in the economies of scale D) increase in derived demand E) increase in primary demand

Azure Air, an airline company, offers attractive prices to customers with tighter budgets. A no-frills airline, it charges for all other additional services, such as baggage handling and in-flight refreshments. Which of the following best describes Azure Air's pricing method? A) target profit pricing B) good-value pricing C) cost-based pricing D) break-even pricing E) penetration pricing

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 ________. A) whether it will be said B) how it will be said C) what noise to anticipate D) how much it will cost to prepare the message E) how frequently it will be said

Beach Heaven uses two-part pricing for its holiday resort charges. Because this is a service, the price is broken into a fixed fee for the room plus a(n) ________ usage rate for activities, including kite-sailing and child care. A) fixed B) variable C) standard D) market E) optional

Big Moose Toys is a market pioneer introducing a modern version of Bubble the Moose, a character from an animated television series originally broadcast in the '50s and '60s. The company's version of Sandy the Flying Squirrel, a character from the show targeted to baby boomers, was a strong success. Since the firm is a market pioneer, it needs to make the new launch strategy for Bubble the Moose consistent with the intended ________. A) pricing B) product positioning C) brand extension D) prototype E) fad

Electron Corp. purchased Proton Corp. by buying all of its assets and ownership equity. This is an example of a(n) ________. A) new product development B) acquisition C) joint venture D) licensing contract E) divestment

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 ________. A) variety-seeking buying behavior B) complex buying behavior C) consumer capitalism D) dissonance-reducing buying behavior E) marketing myopia

Herbie Inc., a firm manufacturing sandwich makers, has fixed costs of $250,000, variable costs of $20 per unit of output, and expected unit sales of 50,000 units. What is the unit cost of a sandwich maker manufactured by Herbie? A) $15 B) $25 C) $30 D) $50 E) $75

If demand hardly changes with a small change in price, the demand is ________. A) variable B) inelastic C) highly elastic D) derived E) negative

In a ________, new products and marketing tactics are tested online in a virtual shopping environment. A) controlled test market B) simulated test market C) standard test market D) focus group E) survey

In a bid to attract more customers in a market that has several competitors, Barrymore's Bakery slashed the prices of all its products by 50 percent. Managers at the firm reasoned that lower prices would draw in even more customers, making up for the reduction in price several times over. Which of the following pricing strategies are they using? A) market-skimming pricing B) market-penetration pricing C) captive-product pricing D) cash discount pricing E) by-product pricing

In industrial markets, ________ typically has the final say in setting the pricing objectives and policies of a company. A) the sales manager B) top management C) the production manager D) the HR department E) the sales staff

Lawyers, accountants, and other professionals typically price by adding a standard markup for profit. This exemplifies ________. A) target pricing B) cost-plus pricing C) value-based pricing D) break-even pricing E) penetration pricing

Low-interest financing and longer warranties are both examples of ________ pricing. A) segmented B) promotional C) product bundling D) captive product E) product form

Many families with children are now attracted to the shopping district in Forest Ridge. What characteristics about families as consumer groups might the owners of The Attic Trunk want to keep in mind? A) Though more women hold jobs outside the home today than when The Attic Trunk first opened, husband-wife involvement in the buying process has remained relatively unchanged. B) Children have considerable amounts of disposable income and have a strong influence on family buying decisions. C) Women seldom account for any technology-related purchases. D) Women typically account for most habitual purchases. E) Men make all the major purchasing decisions in most families.

Mark's Markers, a manufacturer of white board markers, has required its dealers to charge a specified retail price for its markers. Mark's is most likely guilty of ________. A) captive pricing B) retail price maintenance C) price discrimination D) competitive pricing E) unfair price skimming

Marketing stimuli consist of the four Ps. Which of the following is NOT one of these? A) product B) packaging C) price D) promotion E) place

Marketing stimuli include which of the following? A) economic stimuli B) price stimuli C) technological stimuli D) social stimuli E) cultural stimuli

Midnight Magic, a perfume manufacturing company, plans to release a new fragrance during the holiday season at $99 per bottle. The company intends to bring the price down to $49 within six months of its release to attract buyers who couldn't afford the initial price. Which of the following pricing strategies is Midnight Magic using? A) market-penetration pricing B) market-skimming pricing C) competitive pricing D) cost-plus pricing E) product-line pricing

Motorzone offers replacement parts for old Volkswagen Beetles. The company calculates shipping charges based on shipping parts from Boston, even though some parts actually ship from St. Louis. Motorzone most likely practices ________ pricing. A) FOB-origin B) basing-point C) zone D) uniform-delivered E) freight-absorption

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 models share the same specifications. What type of pricing does Multiprint use? A) product line pricing B) captive product pricing C) optional product pricing D) by-product pricing E) product bundle pricing

Noticing that themed envelopes aren't selling well, Charles Payton decides to offer customers a special "letter writing" kit. He prices the kit—which comprises letter paper, matching envelopes, and pens—at $5, even though the combined prices of the individual items is $8. Which of the following pricing strategies is he using? A) optional product pricing B) product bundle pricing C) by-product pricing D) dynamic pricing E) captive product pricing

Product mix ________ refers to the number of versions offered for each product in the line. A) length B) depth C) height D) width E) consistency

Product planners need to consider products and services on three levels. At the third level, product planners must build ________. A) an actual product B) an augmented product C) core customer value D) a brand personality E) a basic product

Public health campaigns designed to reduce alcoholism, drug abuse, smoking, and obesity are all examples of ________ marketing. A) internal B) social C) organization D) person E) place

Retailers such as Costco and Walmart charge a constant, daily low price with few or no temporary price discounts. This is an example of ________ pricing. A) competition-based B) everyday low C) cost-plus D) break-even E) penetration

Robert has taken up cycling as a hobby and as a way to maintain his physical fitness. He wants to buy a hydration system since he will need a lot of water as he cycles. Having gathered a great deal of information, he has finally narrowed down his choices to three systems: Waterbags for Roadies, Supertanker Hydropacks, and Fast Water. Robert is in the ________ stage of the buyer decision process. A) need recognition B) evaluation of alternatives C) product trial D) postpurchase evaluation E) information search

Segmented pricing is only effective when ________. A) the segments show similar degrees of demand B) the cost of segmenting does not exceed the revenue obtained from the price difference C) the segmented prices do not reflect real differences in customers' perceived value D) the customers of different socio-economic classes are treated according to their rank E) companies make their services and products accessible exclusively to wealthy patrons

Service ________ means that services cannot be stored for later sale or use. A) consistency B) perishability C) variability D) intangibility E) inseparability

Since a person's economic situation will affect her store and product choices, marketers watch trends in spending, personal income, interest rates, and ________. A) employment B) savings C) home purchases D) rents E) fuel prices

Some consumers worry that they will be affected by marketing messages without even knowing it. They are concerned about ________. A) alternative evaluation B) subliminal advertising C) selective retention D) cognitive dissonance E) selective communication

Starbucks introduced a less-than-perfect mobile payments app, then worked out the flaws after the launch. The company chose speed to market over a perfect app at introduction. This illustrates ________. A) why many companies engage in crowdsourcing B) the influence of fast-changing market developments C) why prototypes are so important D) how idea screening can make a product a commercial success E) the importance of different sources for idea generation

Style simply describes the ________ of a product. A) quality B) appearance C) utility D) durability E) long-term benefits

Symmonds Inc., a company manufacturing breakfast cereals, has extended its special Crispo cereal brand into a full line of breakfast cereals plus protein shakes, fruit and sandwich spreads, butter, and doughnuts. This is an example of ________. A) line extension B) brand extension C) licensing D) co-branding E) cannibalization

Target return pricing is a variation of which of the following cost-oriented pricing approaches? A) cost-plus pricing B) break-even pricing C) markup pricing D) value-based pricing E) fixed cost pricing

Target return pricing uses the concept of a(n) ________, which shows the total cost and total revenue expected at different sales volume levels. A) BCG matrix B) break-even chart C) SWOT analysis D) demand curve E) experience curve

The ________ requires sellers to provide detailed nutritional information on food products. A) Fair Packaging and Labeling Act of 1966 B) Nutritional Labeling and Educational Act of 1990 C) Glass-Steagall Act D) Commodity Futures Modernization Act of 2000 E) Federal Trade Commission Act of 1914

The fundamental asset underlying brand equity is ________, the value of customer relationships that the brand creates. A) the customer mix B) customer equity C) the product experience D) service variability E) the service encounter

The innovation management system approach yields two favorable outcomes: it helps create an innovation-oriented company culture, and it ________. A) clearly assigns responsibility for the process to a single department B) yields a larger number of new product ideas C) guarantees successful products D) frees up senior management time E) requires less budget support

The learning curve is representative of the ________. A) per unit cost of output in the long run B) drop in the average per-unit production cost that comes with accumulated production experience C) number of units the market will buy in a given time period, at different prices that might be charged D) total market demand resulting from different prices E) per unit cost of output in the short run

The more formal "business attire" look of corporate dress of the 1980s and 1990s gave way to the "business casual" look of the 2000s and 2010s. This is an example of a ________. A) style B) fashion C) fad D) subculture E) norm

The product life cycle presents challenges. Which of the following is LEAST likely to require a company to adapt its marketing strategies? A) developments in technology B) decreased manufacturing costs C) competition D) changing tastes of consumers E) aging of products

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? A) $35,000 B) $42,000 C) $45,000 D) $87,000 E) $132,000

Under ________, the market consists of many buyers and sellers who trade over a range of prices rather than a single market price. A) pure competition B) monopolistic competition C) oligopolistic competition D) a pure monopoly E) the dominant firm model

What sets the floor for product prices? A) consumer perceptions of the product's value B) product costs C) competitors' strategies D) advertising budgets E) market competition

When a product is in the maturity stage, the company should most likely consider ________. A) harvesting the product or market B) modifying the product, market, or marketing mix C) divesting the product line D) liquidating the firm's assets E) dropping the product from its market offerings

When consumers are highly involved with the purchase of an expensive product and they perceive significant differences among brands, they most likely will exhibit ________. A) consumer capitalism B) complex buying behavior C) consumer ethnocentrism D) dissonance-reducing buying behavior E) variety-seeking buying behavior

When theaters vary seat prices due to audience preferences for seats in coveted rows, they use ________ pricing. A) customer-segment B) location-based C) time-based D) product line E) captive product

Which of the following best supports the idea that The Attic Trunk's mature, wealthy clientele can remain a viable target market? A) Older, first generation Hispanic consumers are not especially family-oriented. B) Older, first-generation Hispanic consumers favor sellers who show special interest in them. C) Older, first generation Hispanic consumers tend to be very price conscious. D) Older, first generation Hispanic consumers tend to display little brand loyalty. E) Older, first generation Hispanic consumers are motivated by mainstream marketing.

Which of the following companies uses product line pricing? A) Photo Genie, which sells inexpensive cameras that run only on their own expensive batteries B) Mobile Point, which launched a range of cell phone models, each priced according to its features C) Penguin's Parlor, which offers customers a 20-percent discount on their birthdays and certain holidays D) Green Thumb, which gives away free watering cans with the purchase of certain potted plants E) Panizza, whose combo meals are priced lower than the individual components sold together

Which of the following factors would most likely lead to a company initiating a price cut? A) over-demand B) weakened economy C) poor competition D) cost inflation E) weak price competition

Which of the following involves adjusting prices to account for the physical location of customers? A) location-based pricing B) geographical pricing C) domestic pricing D) interior pricing E) captive pricing

Which of the following involves introducing less-expensive versions of established, brand name products? A) markup pricing B) good-value pricing C) time-based pricing D) cost-based pricing E) target profit pricing

Which of the following is a goods-and-services combination? A) a bicycle B) a milk shake at an ice cream store C) chocolate chips D) a train ride E) a music lesson

Which of the following is a price adjustment strategy that considers how a customer's perception of a product is influenced by its price? A) captive product pricing B) psychological pricing C) by-product pricing D) promotional pricing E) international pricing

Which of the following is an external factor that affects pricing decisions in a company? A) the company's overall marketing strategy B) the nature of the market C) the organizational objectives of the company D) elements of the company's marketing mix E) the annual advertising budget of rival firms

Which of the following is an internal source for new product ideas? A) competitors B) company employees C) marketing research firms D) trade magazines E) government agencies

Which of the following is one of the other stimuli present in a buyer's environment apart from marketing stimuli? A) product stimuli B) cultural stimuli C) price stimuli D) place stimuli E) promotion stimuli

Which of the following is the goal of the team-based new product development approach when it uses cross-functional teams that overlap the steps in the process? A) gain a big competitive edge by getting the right new products to market B) save time and increase effectiveness C) increase production efficiency and customer satisfaction D) speed product distribution to market and reduce costs E) reduce organizational tension and confusion

Which of the following is true of optional-product pricing? A) It involves capitalizing on low value by-products. B) It involves pricing products that can be added to the base product. C) It is used to price a company's main product. D) It involves setting geographically specific prices. E) It is used to price products that must be used with the company's main product.

Which of the following is true with regard to value-added pricing? A) Companies that practice value-added pricing typically match the competition by cutting prices. B) Companies practicing value-added pricing differentiate their offers by attaching value-added features to offerings that, in turn, justify higher prices. C) The intrinsic value of products sold by companies practicing value-added pricing is far less than their actual selling price. D) Companies practicing value-added pricing primarily rely on cost differentiation. E) Value-added pricing is the most suitable pricing strategy in pure monopolies.

Which of the following likely does NOT play into products being offered for different prices in different countries? A) additional costs of operations B) product commonality C) physical distribution D) shipping and insurance E) exchange-rate fluctuations

Which of the following product mix pricing strategies involves pricing multiple products to be sold together? A) product line pricing B) product bundle pricing C) optional product pricing D) by-product pricing E) captive product pricing

Which of the following stages in the new product development would a firm engage in immediately after the completion of concept testing? A) idea screening B) marketing strategy development C) business analysis D) product development E) idea generation

Which of these is NOT a way in which pricing can accomplish company objectives? A) set prices to attract new customers and retain existing customers B) raise prices to create excitement for a brand C) set prices low to hinder competition from entering the market D) price one product to help sales of other products in the company's line E) set price to keep the loyalty of resellers

Which term refers to prices that buyers carry in their minds and check with when they look at a given product? A) product line prices B) reference prices C) location-based prices D) product form prices E) time-based prices

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? A) market-skimming pricing B) market-penetration pricing C) market-segmentation pricing D) cost-plus pricing E) captive-product pricing

________ are a form of product that consists of activities, benefits, or satisfactions offered for sale that are essentially intangible and do not result in the ownership of anything. A) Liabilities B) Services C) Brands D) Consumer products E) Specialty products

________ are ambassadors who enthusiastically share their passion for a company's products with large circles of friends and acquaintances. A) Leading adopters B) Brand evangelists C) Surrogate consumers D) Market mavens E) Innovators

________ are groups to which an individual wishes to belong, as when a young basketball player hopes to play someday in the NBA or WNBA. A) Membership groups B) Aspirational groups C) Leading adopters D) Subcultures E) Reference groups

________ contributes to a product's usefulness as well as to its looks. A) Sensational style B) Good design C) Quality D) Consistency E) Packaging

________ describes changes in an individual's behavior arising from experience. A) Lifestyle B) Learning C) Perception D) Cognitive dissonance E) Selective attention

________ is the product life cycle period when sales growth slows because the product has achieved acceptance. Profits level off because marketing costs increase in the face of competition. A) Decline B) Maturity C) Product development D) Introduction E) Growth

________ marketing consists of activities undertaken to create, maintain, or change attitudes toward particular people. People ranging from presidents, entertainers, and sports figures to professionals such as doctors, lawyers, and architects use it to build their reputations. A) Corporate image B) Person C) Social D) Organization E) Place

________ marketing consists of activities undertaken to create, maintain, or change the attitudes and behaviors of target consumers toward an organization. A) Social network B) Organization C) Niche D) Location E) Concentrated

________ means that consumers are likely to remember good points made about a brand they favor and forget good points made about competing brands. A) Selective attention B) Selective retention C) Cognitive dissonance D) Selective distortion E) Cognitive bias

________ occurs when a company lengthens its product line beyond its current range. A) Product line filling B) Product line stretching C) Co-branding D) Niche marketing E) Market diversification

________ refers to the characteristics of a product or service that bear on its ability to satisfy stated or implied customer needs. A) Brand equity B) Product quality C) Product labeling D) Brand image E) Brand personality

Which of the following is the foundation of a value proposition?

benefits Correct. A benefit is an outcome that the customer receives from owning or using a product. Marketing is about supplying benefits, not attributes. And benefits are the foundation of any value proposition.

Conventions, trade shows, and sales contests are types of ________.

business promotions

A cell phone manufacturing firm produced 1,000 cell phones a day but believed that it could reasonably step up production to 2,000 cell phones a day. Consequently, it built a larger plant and installed efficient machinery and work arrangements to realize the projected output. Which of the following can most likely be inferred from this information? A) The unit cost of producing 2,000 cell phones per day would be twice that of the unit cost of producing 1,000 units per day. B) A production plant with the capacity of producing 5,000 cell phones a day would be most efficient. C) The unit cost of producing 2,000 cell phones per day would be lower than the unit cost of producing 1,000 units per day. D) A 2,000-capacity production plant would be less efficient because of increasing diseconomies of scale. E) The fixed costs of the firm are more likely to increase with the increase in output.

A current trend in the United States involves rediscovering the benefits of home-cooked food and the use of organic ingredients. People are choosing to spend hours in the kitchen using only the freshest ingredients to cook healthy and nutritious meals. This change in ________ is one of the reasons for the increasing demand for organic ingredients. A) self-concept B) subculture C) lifestyle D) personality E) life-cycle

A downward-sloping experience curve is indicative of ________. A) the negative customer perception about a company's products B) the falling demand for a company's products C) the falling unit production cost of a company D) the low quality of a company's products E) slow and inadequate organizational learning

At Fantastic Flavors, a large regional chain of candy stores, employees from marketing, design, production, and finance work in cross-functional groups to save time and money in the new product development process. Fantastic Flavors uses a ________ approach. A) customer-centered new product development B) sequential product development C) team-based new product development D) heuristic E) functional

Big Mike's Health Food Store sells nutritional energy foods. The price of the products sold varies according to individual customer accounts and situations. For example, long-time customers receive discounts. This strategy is an example of ________. A) time-based pricing B) seasonal pricing C) dynamic pricing D) promotional pricing E) penetration pricing

Bruno Servers has decided to decrease its prices on its popular higher-range servers. The company can reasonably expect ________ to increase. A) fixed costs B) variable costs C) demand D) additional value E) overhead costs

Companies can research many aspects of buying decisions. However, the one that is the most difficult to identify is ________. A) what consumers buy B) how and how much they buy C) why they buy D) when they buy E) where they buy

Companies facing the challenge of setting prices for the first time can choose between two broad strategies: market-penetration pricing and ________ pricing. A) comparative B) competitive C) market-skimming D) market-segmentation E) cost-plus

Companies often fail to integrate their various messages to consumers because ________. A) historically, consumers have been able to distinguish between message sources B) advertising departments are reluctant to work with public relations professionals C) communications often come from different parts of the company D) personal selling and sales promotion are in direct conflict E) firms have overemphasized the concept of brand contact

Companies that adopt value-added pricing ________. A) consider value-added features as a fitting substitute for aggressive cost cutting B) set incredibly low prices to meet competition C) attach value-added features and services to differentiate their offers and support their higher prices D) overprice their products without any apparent justification E) underprice their products and lower quality to boost demand in the short-run

Companies with lower costs ________. A) specialize in selling products with value-added features B) usually market products with inferior quality, thereby justifying the low selling price C) can set lower prices that result in smaller margins but greater sales and profits D) tend to overprice products owing to their monopolistic advantage E) usually set higher prices that result in higher margins

Consumers are less likely to use price to judge the quality of a product when they ________. A) have never tried the product before B) have little knowledge of the brand C) have experience with the product D) are shopping for luxury items E) cannot physically examine the product

Cost-plus pricing ________. A) is a complex pricing method B) involves pricing that accurately reflects production costs C) involves adding a standard markup for profit D) aims at breaking even on the costs of making and marketing a product E) is a value-based pricing method

Delia's is a clothing retailer that targets teenage girls. The company runs coordinated promotions for its catalogs, Web site, and retail outlets. It uses the same models in its catalog, print ads, and Web site. Delia's works to make sure its public relations activities as well as its sales promotions harmonize with its advertising in all aspects. From this information, we can infer that Delia's is using ________. A) buzz marketing B) experiential marketing C) integrated marketing communication D) word-of-mouth marketing E) database marketing

Departments or managers that have an influence on pricing include sales managers, finance managers, accountants, and ________. A) engineering managers B) human resources managers C) production managers D) customers E) resellers

DivetheBlue, a company marketing deep-sea diving equipment, charges very high prices for its products. Despite the availability of many low-priced products in the market, customers seem to prefer DivetheBlue, which has earned a reputation for selling high-quality products. This exemplifies ________. A) a pure monopoly B) an oligopoly C) a nonprice position D) break-even pricing E) target costing

Each culture contains smaller ________, or groups of people with shared value systems based on common life experiences and situations. A) cultural universals B) reference groups C) subcultures D) monocultures E) social networks

Eduardo usually purchases the same breakfast cereal, the kind he grew up eating. Eduardo exhibits ________. A) dissonance-reducing buying behavior B) complex buying behavior C) habitual buying behavior D) variety-seeking buying behavior E) conspicuous consumption behavior

Electrowhip, a company that manufacturers blenders and electric whisks, has decided to use a market penetration pricing strategy. Which of the following, if true, proves their decision to be a wise one? A) Electrowhip's competitors utilize social media for marketing their products. B) Electrowhip sells products whose image and quality support high prices. C) Electrowhip operates in a market with many competitors. D) Electrowhip does not operate in a price sensitive market. E) Electrowhip's products are intended to appeal to the elite in society.

Elmo Inc., a global conglomerate, designed the ElBrush, an electric toothbrush. Sensing market demand for the electric toothbrush, Elmo started with an ideal selling price of $13 based on customer value considerations and then targeted costs to ensure that the price was met. This exemplifies ________. A) competition-based pricing B) cost-plus pricing C) target costing D) everyday low pricing E) high-low pricing

Facebook, Snapchat and LinkedIn are all examples of ________. A) brand alliances B) opinion leaders C) social networks D) early adopters E) market mavens

Features are a competitive tool for differentiating a company's product from competitors' products. Which question are companies LEAST likely to ask in a survey of buyers regarding product features? A) Which features could we add to improve the product? B) Which specific features of the product do you like most? C) How much would (a certain new feature) be worth to you? D) Which features of the product do you like the least? E) How do you like the product?

Five characteristics are important in influencing an innovation's rate of adoption. Which of the following is NOT one of those characteristics? A) relative advantage B) compatibility C) consumability D) complexity E) communicability

If Detroit DLX charges the same price for the delivery of its product to customers located in the states near the Great Lakes, but a different price to customers elsewhere, the company is using ________. A) psychological pricing B) promotional pricing C) zone pricing D) reference pricing E) uniform-delivered pricing

If a large retailer sold numerous items below cost with the intention of punishing small competitors and gaining higher long-run profits by putting those competitors out of business, the retailer would be guilty of ________. A) price collusion B) price fixing C) predatory pricing D) competitive pricing E) penetration pricing

In 2011, the fixed costs of a company were $500,000, and its variable costs equaled $150,000. In 2010, the company made an annual profit of $200,000. It has been predicted that, despite a steady growth, the company's variable costs will likely equal $300,000 by 2013. The total costs of the company in 2011 were ________. A) $350,000 B) $450,000 C) $650,000 D) $800,000 E) $950,000

In the case of services, captive product pricing is called ________ pricing. A) by-product B) optional product C) two-part D) bundle E) segmented

In the context of product characteristics that influence the rate of adoption, ________ refers to the degree to which the innovation fits the values and experiences of potential consumers. A) communicability B) relative advantage C) compatibility D) complexity E) divisibility

Independent bloggers are self-made influencers. Traits that make them relevant to marketers include ________. A) creative writing skills B) professional Web site C) good fit with the brand D) a few vocal followers E) technological skills

Installations consist of ________. A) highly priced luxury goods such as Rolex watches B) portable office equipment such as computers C) major purchases such as elevators D) portable factory equipment such as hand tools E) products such as insurance

Juana looked at the September issue of her favorite fashion magazine and did not find anything particularly interesting despite the fact that the magazine had several advertisements that were targeted at Juana's demographic. The only thing that interested her was an article about an upcoming fashion show. Which consumer behavior is being illustrated in this instance? A) subliminal advertising B) groupthink C) selective attention D) social loafing E) consumer ethnocentrism

Leicestershire Renovations has a history of problems with customers who do not pay their bills on time. Leicestershire Renovations wants to improve its cash situation, reduce bad debts, and reduce credit-collection costs. Which of the following forms of pricing would most likely help the firm achieve its goal? A) by-product pricing B) zone pricing C) cash discounts D) product bundling E) quantity discounts

Market offering includes everything from pure tangible goods to pure services, as well as combinations of goods and services. Which of the following is NOT a product or service? A) breakfast cereal B) rental car C) free concert D) shoes E) haircut

Milt Alden says that his line workers "know each product like the back of their hands," and that this knowledge helps the company keep its prices low. This indicates that Alden Manufacturing most likely benefits from the ________. A) cost-plus pricing B) value-added pricing C) experience curve D) inelastic demand in the market E) derived demand in the market

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 ________. A) conduct surveys of competitors B) exclusively consider the government's opinions C) consider the sales history of similar products D) apply the PLC concept to industry sales E) opt for business process reengineering

New product development starts with ________. A) concept development B) idea screening C) idea generation D) concept testing E) test marketing

Once managers of The Grecian Urn have decided on their product concept and marketing strategy, they can evaluate the business attractiveness of the proposal in the ________ stage of the new product development process. A) business transformation B) test marketing C) business analysis D) business process reengineering E) concept testing

Over the past few years, Binney and Smith's Crayola crayons has expanded to more than 80 countries around the world. Crayola crayons are in the ________ stage of the PLC. A) introduction B) laggard C) maturity D) decline E) incubation

P&G has sold off a number of lesser or declining brands such as Folgers coffee and Cover Girl cosmetics. In these examples, management decided to ________ the products. A) modify B) maintain C) drop D) harvest E) franchise

Pat thought he had received the best deal on his new car. Shortly after buying the car, Pat started to notice certain disadvantages of his new car as he learned more about other cars available in the market. Pat is experiencing ________. A) dissonance-reducing buying behavior B) need recognition C) postpurchase dissonance D) marketing myopia E) complex buying behavior

Price discrimination is legal when a ________. A) manufacturer and reseller have agreed upon a specified retail price for a product B) manufacturer sells to retailers in different markets C) seller can prove its costs are different when selling to different retailers D) seller advertises prices that are not actually available to consumers E) seller has not communicated with competitors before announcing prices

Proton Corp. is an automobile manufacturer known for producing efficient, durable, and low-priced cars. Recently, the company launched a new range of luxury cars to broaden its market appeal and to add prestige to its existing line of cars. This is an example of ________. A) social marketing B) product line filling C) product line stretching D) internal marketing E) cannibalization

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) ________. A) surrogate consumer B) lagging adopter C) opinion leader D) brand personality E) social networker

Relative advantage, compatibility, complexity, divisibility, and communicability are all characteristics of ________. A) alternative evaluations B) the degree of buyer involvement C) a product's rate of adoption D) unexpected situational factors E) postpurchase behaviors

Rhodia invites tourists from all over the world to experience its pristine nature, clear skies, and beautiful summertime climate. This exemplifies ________. A) corporate image marketing B) social marketing C) place marketing D) social engineering E) negative brand equity

Service ________ means that services cannot be seen, tasted, felt, heard, or smelled before they are bought. A) inseparability B) variability C) intangibility D) perishability E) heterogeneity

Service ________ means that the quality of services depends on who provides them as well as when, where, and how they are provided. A) intangibility B) inseparability C) variability D) perishability E) heterogeneity

The New Age Gallery has three admission prices for students, adults, and seniors, even though all three groups are entitled to the same services. This form of pricing is called ________ pricing. A) psychological B) product form C) customer-segment D) captive product E) by-product

The PLC concept can be applied by marketers as a useful framework for describing how ________. A) competitors' moves are predicted B) marketing strategies are developed C) products and markets work D) concept testing is conducted E) product ideas are developed

The ________ of the product mix refers to how closely related the various product lines are in end use, production requirements, distribution channels, or some other way. A) length B) depth C) consistency D) width E) height

The fixed cost in manufacturing a single LED monitor is $40 and the variable cost is $12. If the company expects to manufacture 5,000 monitors, the total costs would be ________. A) $60,000 B) $200,000 C) $260,000 D) $420,000 E) $500,000

The movie industry in a country is controlled by six large studios that receive 90 percent of the annual revenues from movies. This is an example of a(n) ________. A) pure competition B) monopolistic competition C) oligopolistic competition D) pure monopoly E) government monopoly

The perceived value of different product offers can be reasonably assessed by ________. A) conducting a SWOT analysis B) preparing demand curves C) conducting surveys and experiments D) collecting data about competitors' offers E) setting a benchmark for product quality

The service profit chain includes internal service quality, satisfied and productive service employees, greater service value, healthy service profits and growth, and ________. A) higher market share B) better paid employees C) satisfied and loyal customers D) increased manufacturing efficiency E) higher morale

Under a team-based new product development approach, ________. A) a single departmental team works to complete different stages of the process before passing the new product along to the next department and stage B) the organizational tension and confusion is less than under the sequential approach C) company departments work closely together in cross-functional teams D) a bottleneck at one phase can seriously delay an entire project E) the new product passes from one department to another before finalizing

Ways to avoid accusations of price gouging include ________. A) bundling products together B) matching competitors' pricing C) communications to customers explaining why prices are being increased D) passing along increased costs E) increase quality of the product

What sets the ceiling for product prices? A) product manufacturing costs B) sellers' perceptions of the product's value C) customer perceptions of the product's value D) variable costs E) break-even volume

When McDonald's and other fast food restaurants offer "value menu" items at surprisingly low prices, they are most likely using ________ pricing. A) break-even B) target profit C) good-value D) cost-plus E) target return

When a competitor cuts its price, a company should ________ if it believes it will not lose much market share or would lose too much profit by cutting its own prices. A) reduce its production costs B) reduce its marketing costs C) maintain its current prices and profit margin D) increase its marketing budget to raise the perceived value of the product E) increase its production costs to improve the quality of the product

When faced with a competitor who has cut its product's price, which of the following is the most cost-effective way for a company to maintain its own price but raise the perceived value of its offer? A) by improving the quality of the product B) by introducing a higher-priced premium brand C) by altering the company's marketing communications D) by bundling the offer with add-ons E) by distributing the product through less costly channels

When performing a break-even analysis, the manufacturer should consider all of the following EXCEPT ________. A) probable demand B) likely profits C) competitors' pricing D) estimated break-even volumes E) different prices

When sellers set prices after talking to competitors and engaging in collusion, they are involved in ________. A) interstate commerce B) comparative pricing C) price fixing D) skimming pricing E) price bundling

Which of the following best characterizes the decline stage of product development? A) rapid market acceptance B) slow sales growth C) sales and profits decline D) high investment costs E) increasing profits

Which of the following consumer buying behaviors is related to conditions of low- consumer involvement and little significant brand difference? A) complex buying behavior B) dissonance-reducing buying behavior C) habitual buying behavior D) variety-seeking buying behavior E) consumer capitalism

Which of the following exemplifies a service? A) candy B) laptop C) hair salon D) car E) laundry detergent

Which of the following is a cost-based approach to pricing? A) value-based pricing B) high-low pricing C) target return pricing D) good value pricing E) EDLP

Which of the following is a significant challenge presented by the product life cycle? A) increased expenses B) increased competition C) new product development D) evaluation of results E) recognizing the stages as a product goes through them

Which of the following is an advantage offered by co-branding? A) Manufacturers do not have to invest in creating their own brand names with co-branding. B) Co-branding allows retailers to sell exclusive products that cannot be purchased from competitors. C) Co-branding allows a company to expand its existing brand into a category it might otherwise have difficulty entering alone. D) Co-branding dilutes brand equity and increases the appeal of store brands. E) Co-branding does not involve complex legal contracts and licenses.

Which of the following is an internal factor that affects pricing decisions in a company? A) the nature of the market B) the degree of inflation in the economy C) the overall marketing strategy of the company D) the forces of demand and supply in the market E) consumers' perception of value

Which of the following is included in the second part of the marketing strategy statement? A) advertising tagline B) promotional mix C) planned price D) customer segmentation E) operational excellence

Which of the following is the adoption process stage at which the consumer considers whether trying the new product makes sense? A) awareness B) interest C) evaluation D) adoption E) trial

Which of the following is the lowest level on which marketers can position their brands in target customers' minds? A) beliefs and values B) product benefits C) product attributes D) after-sale services E) brand equity

Which of the following processes does value-based pricing reverse? A) high-low pricing B) everyday low pricing C) cost-based pricing D) good-value pricing E) value-added pricing

Which of the following terms refers to a specific mix of human traits that may be attributed to a particular brand? A) brand perception B) brand identity C) brand personality D) brand concept E) brand equity

Which of the following would each consumer segment attracted to The Attic Trunk have in common with the other consumer segments? A) habitual buying behaviors B) self-concepts C) AIO dimensions D) life-cycle stages E) aspirational groups

Which stage in the PLC normally lasts longest and poses strong challenges to marketing managers? A) growth B) decline C) maturity D) introduction E) adoption

Which stage in the product life cycle is characterized by rapid market acceptance and increasing profits? A) introduction B) maturity C) growth D) decline E) product development

Which stage of new product development requires management to estimate minimum and maximum sales to assess the range of risk in launching a new product? A) concept testing B) marketing strategy development C) business analysis D) product development E) test marketing

While advertising campaigns can help create name recognition, brand knowledge, and perhaps even some brand preference, brands are not maintained by advertising but by ________. A) brand differentiation B) line extensions C) brand experiences D) brand sponsorships E) brand awareness

Yummy Peanut Butter created a new coconut-flavored peanut butter that it tested in a small number of representative cities. The company plans to use the results to forecast national sales and profits. Which of the following did the firm use? A) controlled test markets B) simulated test markets C) standard test markets D) ambush marketing E) affinity marketing

________ are consumer products and services with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort. A) Shopping products B) Unsought products C) Specialty products D) Capital items E) Convenience products

________ are consumer products that the consumer either does not know about or knows about but does not normally think about buying. A) Specialty products B) Convenience products C) Unsought products D) Shopping products E) Capital items

________ involves adding more items within the present range of the product line. A) Market diversification B) Brand extension C) Product line filling D) Upward product line stretching E) Downward product line stretching

________ involves setting prices based on the costs for producing, distributing, and selling the product plus a fair rate of return for effort and risk. A) Value-based pricing B) Competition-based pricing C) Cost-based pricing D) Penetration pricing E) Break-even pricing

________ is a new product development approach in which one company department works to complete its stage of the process before passing the new product along to the next department and stage. A) Team-based product development B) Simultaneous product development C) Sequential product development D) Horizontal integration E) Vertical integration

________ is a person's pattern of living as expressed in his/her psychographics, and it includes the individual's activities, interests, and opinions. A) Personality B) Culture C) Lifestyle D) Motive E) Social class

________ is an approach in which all the company's people are involved in constantly improving the quality of products, services, and business processes. A) Business intelligence B) Quality function deployment C) Total quality management D) Brand equity management E) Product positioning

________ occurs when a seller states price savings that are not actually available to consumers. A) Comparative pricing B) Scanner fraud C) Deceptive pricing D) Market skimming E) Price collusion

________ occurs when two established brand names of different companies are used on the same product. A) Market diversification B) Niche marketing C) Co-branding D) Licensing E) Cannibalization

________ refers to qualitative research designed to probe consumers' hidden, subconscious motivations. A) Perception analysis B) Subliminal analysis C) Motivation research D) Need recognition E) Market segmentation

________ refers to the amount of money charged for a product or service. A) Value B) Cost C) Price D) Wage E) Salary

________ traditionally has been considered the main purchasing agent for the family in the areas of food, household products, and clothing, although this is changing as more work outside the home. A) A teenager B) The husband C) The wife D) The couple together E) The parent

A modification to an existing product that sets the brand apart from its competitors is a __________ innovation.

continous

Honest Tea's products provide benefits to its customer such as a tasty refreshment, social responsibility, fresh and organic ingredients, and so on. The outcomes a customer receives from using the product is known as the ________ product.

core The core product is the basic product category benefits and customized benefits the product provides. The outcomes or benefits of Honest Tea are not only the physical characteristics of the product, such as organic ingredients and the quenching of thirst, but also the benefit that the consumer gets by purchasing products from a socially responsible company.

Which of the following approaches is common in industrial contexts where a manufacturer often works with one or a few large clients and develops products that only these clients will use?

customized marketing strategy

32) Excel Enterprises uses a Web site, online social networks, and print advertisements to promote its products. Since Excel Enterprises practices integrated marketing communications, all these different brand contacts maintain ________ in design and tone. A) variety B) simplicity C) creativity D) consistency E) flexibility

57) Introducing a new product into the market is called ________. A) test marketing B) simulation C) co-marketing D) commercialization E) segmentation

A ________ is a need that is sufficiently pressing to direct a person to seek satisfaction. A) stimulus B) perception C) culture D) motive E) tradition

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? A) The products were priced too high. B) The products were advertised incorrectly. C) Competitors fought back harder than expected. D) Product research was too extensive. E) The product development costs were high.

A supermarket places its store brand of blackberry jam priced at $5 per jar in the fruit preserves aisle, alongside the jam jars of a better known brand—whose products are priced at $8 apiece. Store managers reason that customers are more likely to choose the store brand instead of the better-known brand when they realize the price difference. What price adjustment strategy is evident in the supermarket's reasoning? A) by-product pricing B) product bundle pricing C) captive product pricing D) psychological pricing E) seasonal pricing

According to the service profit chain, superior internal service quality results in ________. A) lesser service value B) increased word-of-mouth sales C) reduced after-sale services D) more satisfied, loyal, and hardworking employees E) negative brand equity of newly launched products

All of the following are disadvantages of test marketing EXCEPT that test marketing ________. A) is typically expensive B) can be time consuming C) enables competitors to gain advantages D) encourages dishonesty among participants E) fails to guarantee product success in the market

At which stage in the PLC do profits increase as promotion costs are spread over a large volume, and as the firm enters new market segments? A) maturity B) introduction C) decline D) growth E) harvest

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 ________. A) dissonance-reducing buying behavior B) complex buying behavior C) habitual buying behavior D) variety-seeking buying behavior E) conspicuous consumption behavior

Consumer purchases are influenced strongly by characteristics that marketers cannot control but must take into account, including cultural, social, psychological, and ________ characteristics. A) economic B) professional C) medical D) personal E) genetic

Department stores such as Kohl's and JCPenney's practice high-low pricing by ________. A) charging a constant, everyday low price B) providing few or no temporary price discounts C) increasing prices temporarily on select products D) having frequent sale days for store credit-card holders E) underpricing most consumer items

Donna wants to buy a new coat. During the ________ stage of the buyer decision process she will ask her friends to recommend stores that sell good quality winterwear clothing. She will also go through newspapers and magazines to look out for offers and sales on coats. A) product evaluation B) alternative evaluation C) need recognition D) information search E) purchase decision

Due to dropping sales, a company that manufactures soaps begins to sell them to restaurants and hotels to extend their product's life. The soap manufacturer is in the ________ stage of PLC. A) introduction B) growth C) maturity D) decline E) development

Effective ________ pricing involves understanding how much value consumers place on the benefits they receive from the product and setting a price that captures that value. A) competition-oriented B) cost-based C) time-based D) customer-oriented E) marketer-oriented

Erica wants to replace her old washing machine with a new one. In order to get the maximum value for her money, she plans to spend substantial time and effort in gathering information and making product comparisons before making the actual purchase. In this instance, Erica is planning to buy a(n) ________ product. A) convenience B) unsought C) specialty D) shopping E) exclusive

Executives at an automobile manufacturing company conducted a brainstorming session for selected employees. This session resulted in a large number of ideas for developing new cars after extensive R&D. The executives then planned to filter out the best ideas during the ________ stage. A) business analysis B) idea generation C) concept testing D) idea screening E) concept development

Factors a company considers in setting its price include all of the following EXCEPT ________. A) competitors' strategies and prices B) product costs C) overall marketing strategy and mix D) value of the product on the pre-owned market E) nature of the market and demand

For concept test, companies will frequently present customers with ________ of the concept for a reliable concept test. A) a verbal description B) a PowerPoint slide C) a picture D) a physical presentation E) a printed paragraph

Harley-Davidson promotes its motorcycles with images of independence, freedom, and power. Harley-Davidson has created a ________. A) motive B) life-cycle stage C) self-concept D) brand personality E) self-actualization need

The Great Recession of 2008 to 2009 triggered a shift in consumer attitudes toward ________. A) variety and price B) perceptions of value C) locations of stores D) price and quality E) economic data

The customers of Parry's Hair Salon have noticed that the quality of a haircut depends on who provides it as well as when, where, and how the service is provided. Which of the following characteristics of service is evident in this instance? A) service intangibility B) service inseparability C) service perishability D) service variability E) service distinction

The information sources that are the most effective at influencing a consumer's purchase decision are ________. These sources legitimize or evaluate products for the buyer. A) commercial B) public C) experimental D) personal E) attitudinal

The major product line decision involves product ________, the number of items in the product line. A) features B) line depth C) line conformance D) line length E) packaging

Through ________, a service firm orients and motivates its customer-contact employees and supporting service people to work as a team to provide customer satisfaction. A) service inseparability B) social marketing C) service variability D) internal marketing E) corporate image marketing

Using ________ pricing, companies are able to turn their trash into cash, allowing them to make the price of their main product more competitive. A) product bundle B) optional product C) captive product D) by-product E) product line

Ways companies have avoided relying on price cuts in the new value-conscious era include all of the following EXCEPT ________. A) by adding more affordable product lines for the cost-conscious consumer B) by redefining the "value" in their value propositions C) by adding premium product lines for the higher end consumer D) by offering deep discounts E) by creating price tiers

What causes a specific brand's life cycle to change quickly? A) costs of raw materials B) changing demographics C) shift in company strategy D) competitive attacks and responses E) new technology

What is the core customer value a customer might purchase when buying Urban Decay cosmetics? A) variety of collections B) unique packaging C) unusual colors D) sense of adventure E) long-lasting makeup

What is usually the first step in cost-based pricing? A) testing the product concept with potential customers B) determining the marketing mix strategy C) setting a price that covers costs plus a target profit D) designing a good product E) adding up the costs of making the product

What type of pricing is being used when a company temporarily prices its product below the list price or even below cost to create buying excitement and urgency? A) segmented pricing B) international pricing C) reference pricing D) promotional pricing E) basing-point pricing

When Heinz introduced EZ Squirt packaging and new colors such as Blastin' Green and Awesome Orange to revitalize consumer buying, the company was modifying the ________. A) market B) pricing strategy C) distribution D) product E) competition

When Kraft focused on cost cutting with its older, established brands, leaving them to wither without much investment or modification, Kraft decided to ________ the older products. A) extend B) modify C) drop D) harvest E) analyze

When a customer feels uneasy about losing out on the benefits of a brand not purchased, she is likely to experience ________. A) selective retention B) selective attention C) selective distortion D) cognitive dissonance E) consumer ethnocentrism

Which of the following best describes the role of a product steward? A) to protect employees and laborers from harm B) to evaluate new product ideas against a set of general criteria C) to develop a new product concept into a physical product D) to protect consumers from harm and the company from liability E) to decide whether to maintain, harvest, or drop the product in the decline stage of the PLC

Which of the following has become a major packaging concern in recent years? A) underpackaging B) legibility of print C) colors used D) product safety E) durability

Which of the following is NOT a category of consumer products? A) unsought B) specialty C) convenience D) luxury E) shopping

Which of the following is NOT likely to be a question asked in the new product screening process? A) Is there a real need and desire for the product? B) Is there a clear product concept? C) Does the product offer a sustainable advantage? D) How many items will the company sell in the first two years? E) Does the product fit the company's overall growth strategy?

Which of the following is a disadvantage of a team-based approach to new product development? A) It takes longer for the development of a new product. B) The development effort is not as effective because of employee inexperience. C) It decreases the efficiency of the new product development process. D) It can result in organizational confusion and tension. E) The process does not work with the shorter life cycles of many of today's products.

Which of the following is a potential drawback of multibranding? A) Multibranding tends to decrease brand loyalty. B) Company resources are likely to be concentrated on a single brand. C) Multibranding curbs the growth opportunities of established brands. D) Each brand might obtain only a small market share, and none may be very profitable. E) Multibranding causes companies to refrain from product diversification.

Which of the following is true of FOB-origin pricing? A) It is a strategy in which the company charges the same price plus freight to all customers. B) It is a costly option for customers who are located near the company. C) It charges all customers the freight cost from a base city to the customer location. D) It is an expensive alternative for customers in distant locations. E) It is a strategy in which the seller absorbs all or part of the freight charges.

Which of the following is true of price changes? A) Over-demand leads to companies initiating price cuts. B) Changes in price do not affect a brand's image. C) Customer reaction to price changes is not as important as competitor reaction. D) A drop in price can adversely affect how consumers view the brand. E) Excess capacity is a factor that causes increases in price.

Which of the following is true of the bottom of the pyramid? A) It is a market segment that has been tapped into and depleted. B) It consists of people who have easy access to luxury goods. C) It comprises people who have easy access to the basic amenities of life. D) It is considered a source of fresh growth opportunities. E) It is a market segment that has insignificant purchasing power.

Which of the following is true with regard to monopolistic competition? A) Under monopolistic competition, the market consists of many buyers and sellers who trade at a single market price. B) Under monopolistic competition, the market consists of only a few large sellers. C) In a monopolistic market, little time is spent on marketing strategy. D) Sellers can differentiate their products to buyers. E) In a monopolistic market, price becomes a major competitive tool.

Which of the following is true with regard to price? A) Historically, price has had the least perceptible impact on buyer choice. B) Price is the least flexible element in the marketing mix. C) Unlike product features and channel commitments, prices cannot be changed quickly. D) Price is the sum of all the values that customers give up to gain the benefits of having a product. E) Prices only have an indirect impact on a firm's bottom line.

Which of the following is true with regard to products? A) The quality of products is far more difficult to measure than that of services. B) Products do not include experiences, organizations, persons, places, and ideas. C) Products are not meant for sale in the market. D) Products include services, events, persons, places, organizations, ideas, or a mixture of these. E) Products refer to only those activities that are essentially intangible.

Which of the following product characteristics refers to the degree to which the innovation appears superior to existing products? A) compatibility B) divisibility C) communicability D) relative advantage E) complexity

While comparison pricing claims are legal if they are truthful, the FTC warns sellers not to advertise a) factory or wholesale prices unless such prices are what they claim to be, b) comparable value prices on imperfect goods, or c) ________. A) a sale unless the products are available in sufficient quantity to meet expected demand B) in a way which confuses potential buyers of the product C) a description of a product unless all versions of the product are offered with the same pricing terms D) a price reduction unless it is a savings from the usual retail price E) if only a limited quantity are available at the reduced price

Why is markup pricing most likely impractical? A) Calculating costs is complicated due to fluctuations. B) By tying the price to cost, sellers oversimplify pricing. C) When all firms in the industry use this pricing method, prices tend to be similar. D) The method ignores demand and competitor prices. E) With a standard markup, consumers know when they are being overcharged.

Why is markup pricing most likely popular? A) Sellers are more certain about demand than about costs. B) Markup pricing tends to maximize market competition. C) Markup pricing affords buyers greater bargaining power. D) Sellers do not need to make frequent adjustments as demand changes. E) Markup pricing is designed to set prices to break even on the costs of making and marketing a product

________ are consumer products and services that customers usually buy frequently, immediately, and with minimal comparison and buying effort. A) Unsought products B) Capital items C) Shopping products D) Convenience products E) Supplies and repair services

________ are industrial products. A) Major appliances B) Laundry detergents C) Life insurance policies D) Office supplies E) Legal services

________ products are those products purchased for further processing or for use in conducting a business. A) Unsought B) Specialty C) Shopping D) Industrial E) Convenience

________ refers to freedom from defects and consistency in delivering a targeted level of performance. A) Performance quality B) Product style C) Branding D) Conformance quality E) Product design

________ refers to the unique psychological characteristics that distinguish an individual or group. A) Attitude B) Belief C) Perception D) Personality E) Self-awareness

Which of the following is a function of an integrated marketing communications system?

delivering a consistent message on the product to each brand contact

H2Coast, an automobile manufacturer, produces fuel-efficient hybrid vehicles that are targeted toward middle-income consumer groups. H2Coast most likely segments the consumer market based on ________ variables.

demographic

Heeltoe, a boutique that caters to the footwear needs of women, manufactures two different lines of footwear based on the purchasing power of its customers. One product line caters to the needs of affluent, middle-aged women, and the other line targets younger professionals and homemakers. Heeltoe most likely segments the consumer market based on ________ variables.

demographic

Which of the following refers to statistics that measure observable aspects of a population, including size, age, gender, ethnic group, income, education, occupation, and family structure?d

demographics

In a promotion mix, ________ involves personally connecting with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships.

direct marketing

________ refers to consciously avoiding harmful actions or omissions by embodying high ethical standards and adhering to all applicable laws and regulations in the choices we make.

do no harm

A good design begins with ________. A) brainstorming new product ideas B) making prototypes of the planned product C) identifying the most suitable and aesthetic packaging D) brainstorming technical product specifications E) observing and understanding customers and shaping their product-use experience

A manufacturing plant is designed to produce 2000 flat-screen TVs 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 ________. A) decrease; the plant becomes more efficient B) stay the same; the plant becomes more efficient C) decrease; the plant becomes inefficient D) increase; the plant becomes more efficient E) increase; the plant becomes inefficient

A movie theater offers a reduced price for an afternoon showing of a film. This type of pricing is ________ pricing. A) location-based B) customer-segmented C) cost-based D) product form E) time-based

A number of top fashion-modeling agencies would most likely be charged with ________ for jointly determining what commissions they charge for models. A) prestige pricing B) competitive pricing C) price bundling D) dynamic pricing E) price fixing

A particular automobile company works to keep its customers happy after each sale, aiming to delight each one of them in order to increase their customer lifetime value. Which of the following steps of the buyer decision process does the company exemplify? A) need recognition B) information search C) evaluation of alternatives D) purchase decision E) postpurchase behavior

A style is best defined as a ________. A) currently popular trend in retail goods B) popular consumer taste at a given time C) temporary period of unusually high sales D) short-term component of the marketing mix E) basic and distinctive mode of expression

According to Freud, a person's buying decisions are primarily affected by ________. A) family influences B) societal expectations C) brand images D) cultural norms E) subconscious motives

If a consumer purchases a new flat-screen "smart" television, what is the augmented product involved? A) connection to the world of entertainment B) state-of the art technology C) slick and attractive packaging D) brand name E) tech support and warranty

In industries in which pricing is a key factor, ________ often set the best prices or help others in setting them. A) sales departments B) salespeople C) production managers D) line managers E) pricing departments

In the new product development process, the first idea-reducing stage is ________. A) business analysis B) idea generation C) concept development D) crowdsourcing E) idea screening

Leona bought two different brands of wine from vineyards in Australia. When asked for her opinion about the wines, she said that one brand of wine tasted like alcoholic grape juice, but the other had a crisp taste that she really enjoyed. These statements were most likely made during the ________ stage of the buyer decision process. A) information search B) need recognition C) alternative evaluation D) purchase decision E) postpurchase behavior

Mansfield Pharmaceuticals markets Zipro, an antibiotic. The firm has fixed costs of $1,000,000 and variable costs of $2 per bottle of 50 tablets priced at $10 per bottle. What is the break-even volume? A) 25,000 B) 55,000 C) 100,000 D) 115,000 E) 125,000

New product success requires all of the following EXCEPT ________. A) a whole-company commitment B) a holistic approach for finding new ways to create valued customer experiences C) thinking up a few good ideas D) introducing products that will satisfy a want or need for customers E) efficient engineering and manufacturing

Service companies can differentiate their service delivery by ________. A) using symbols and logos B) instituting a hierarchical organizational structure C) offering innovative product features D) de-emphasizing branding E) having more able and reliable customer-contact people

Shoez Inc., a manufacturer of shoes, has recently launched a brand of sturdy shoes ideal for hiking and other outdoor activities. Which of the following brand personalities could be best associated with the new brand? A) sincerity B) excitement C) sophistication D) competence E) ruggedness

Tourism Australia's global marketing campaign, "There's nothing like Australia" is an example of ________ marketing. A) corporate image B) person C) organization D) internal E) place

Under which type of geographic pricing strategy does each customer take responsibility for the freight charges for the product from the factory to its destination? A) zone pricing B) basing-point pricing C) uniform-delivered pricing D) dynamic pricing E) FOB-origin pricing

What is included in the first part of a marketing strategy statement? A) distribution strategy B) product longevity C) long-run sales goals D) promotional mixes E) target market description

When amusement parks charge customers for admission and later for food and beverages, they are following a ________ pricing strategy. A) by-product B) product line C) penetration D) skimming E) two-part

Which of the following best supports a market-penetration strategy for Champion? A) Production costs increase as sales volume increases. B) It is very difficult for competitors to enter the market. C) The cost of producing a smaller volume is negligible. D) The quality of the products supports high initial prices. E) The market for the products is highly price sensitive.

Which of the following companies uses product bundle pricing? A) Photo Genie, which sells inexpensive cameras that run only on their own, expensive, batteries B) Go Zone, which launched a range of tablet models, each priced according to its features C) Penguin's Parlor, which offers customers a 20 percent discount on their birthdays D) Green Thumb, which gives away free watering cans with the purchase of certain potted plants E) Panizza, whose combo meals are priced lower than its individual components sold together

Which of the following exemplifies a pure competitive market? A) a market where many buyers and sellers trade over a range of prices rather than a single market price B) a market where a single firm controls the larger fraction of the market share C) a market where a few powerful firms control the larger fraction of the market share D) a market characterized by only a few large sellers E) a market where many buyers and sellers trade in a uniform commodity

Which of the following involves setting prices based on a rival firm's strategies, costs, prices, and market offerings? A) target return pricing B) good-value pricing C) competitor value-added pricing D) market-based pricing E) competition-based pricing

Which of the following is a price adjustment strategy? A) product bundle pricing B) by-product pricing C) product line pricing D) optional product pricing E) discount and allowance pricing

Which of the following is an example of a pure tangible good? A) a laptop with a comprehensive warranty for three years B) an online shoe retailer that provides free home delivery C) an agency that offers free legal advice D) a credit card E) a bag of potato chips

Which of the following is an external source for ideas? A) project managers B) engineers C) salespeople D) manufacturing staff E) suppliers

Which of the following is included in the third part of the marketing strategy statement? A) the planned value proposition B) distribution strategy C) the product's planned price D) marketing budget E) the planned long-run sales

Which of the following is most likely a fixed cost? A) sales representative commissions B) product distribution costs C) manufacturing input costs D) temporary worker salaries E) facility rental payments

Which of the following is most likely a risk associated with experience-curve pricing? A) High-volume production facilities are unable to meet demand. B) New technology often leads to productivity problems. C) Demand for the product fluctuates unpredictably. D) Consumers tend to prefer new brands over established ones. E) Aggressive pricing often gives a product a cheap image.

Which of the following is one of the five major promotion tools? A) market penetration B) strategic positioning C) product line filling D) market diversification E) direct and digital marketing

Which of the following is one of the four consumer perception dimensions used by ad agency Young & Rubicam to measure brand strength? A) brand conformance B) brand consistency C) brand convenience D) brand extension E) brand relevance

Which of the following is the most likely circumstance for a company to decide to do little or no test marketing? A) when the new product requires a major investment B) when management lacks confidence in the new product C) when management lacks confidence in the marketing strategy D) when the product has no substitutes and is new in its category E) when the costs of developing and introducing the product are low

Which of the following is true about the demand curve? A) A demand curve indicates the drop in the average per-unit production cost that comes with accumulated production experience. B) A demand curve indicates the cost per unit of output in the long run. C) A demand curve indicates the cost per unit of output in the short run. D) In a monopoly, the demand curve does not indicate the total market demand resulting from different prices. E) A demand curve shows the number of units the market will buy in a given time period at different prices that might be charged.

Which of the following price adjustment strategies involves reducing prices to reward customer responses such as volume purchases, paying early, or participating in sales-support programs? A) product bundle pricing B) captive product pricing C) product line pricing D) dynamic pricing E) discount and allowance pricing

Which of the following product mix pricing strategies involves pricing additional or accessory products sold along with the main product? A) inclusive product pricing B) exclusive product pricing C) by-product pricing D) product bundle pricing E) optional-product pricing

Which of the following product mix pricing strategies involves setting prices across an entire product range based on cost differences between the products, customer evaluations of different features, and competitors' prices? A) by-product pricing B) product bundle pricing C) optional product pricing D) captive product pricing E) product line pricing

Which of the following product offerings is intangible? A) a package of laundry detergent B) an ink cartridge for a printer C) a wool jacket D) a gold ring E) a taxi ride

Which of the following statements about break-even analysis is true? A) It is used to determine how much production experience a company must have in order to achieve desired efficiencies. B) It is a technique used to calculate fixed costs. C) It determines the amount of retained earnings a company will have during a given accounting period. D) It is a technique marketers use to determine the relationship between supply and demand. E) It is calculated by using variable costs, the unit price, and fixed costs.

Which of the following statements best explains why idea screening may be the most important step of new product development? A) It increases the number of ideas generated. B) It provides an opportunity for the marketer to test the prototype in a simulated market. C) It helps forecast the products' sales and profits accurately for a specific period. D) It gives research and development team members an opportunity to gather consumer feedback. E) It saves the company money in product development costs by going ahead with only the product ideas that are likely to be profitable.

Which of the following statements is true of test marketing? A) The amount of test marketing needed remains constant for each new product. B) When the costs of developing and introducing the product are low, the company will have to do significant test marketing. C) Test marketing is seldom done on products that are risky. D) Test marketing is seldom done when management is not sure of the product or its marketing program. E) Test marketing costs can be high, and it takes time that may allow competitors to gain advantages

Who can pass along information about new concepts or techniques to use in new products? A) competitors B) salespeople C) customers D) suppliers E) distribution channels

Word-of-mouth influence comes to consumers from family, colleagues, and ________. A) investors B) athletes C) neighbors D) entertainment celebrities E) friends

________ consumers are the most brand conscious of all the ethnic groups, are extremely brand loyal, and shop frequently. A) African American B) Native American C) Hispanic American D) Italian American E) Asian American

Who is known to gravitate towards products that will make others think the adopter is fashionable and cutting-edge?

early adopters Correct. Unlike innovators, early adopters are very concerned about social acceptance, so they tend to gravitate toward products they believe will make others think they are cutting-edge or fashionable. Typically, they are heavy media users and often are heavy users of the product category.

Advantages of private brands

earn higher profits, less pressure to mark down price, manufacturer could otherwise become a direct competitor, ties customer to wholesaler or retailer, and control of the intensity of distribution of their own brands

________ means building relationships and enhancing consumer confidence in the integrity of marketing by affirming these core values: honesty, responsibility, fairness, respect, transparency, and citizenship.

embrace ethical values

________ is an organized movement of concerned citizens, businesses, and government agencies designed to protect and improve people's current and future living environment.

environmentalism

AirNetwork, a telecommunications company, sponsors a rock concert by a famous band in order to further its brand visibility. This is an example of a(n) ________.

event marketing program

Abel is considering whether or not to get an e-reader. He has read online reviews of three different kinds of readers and has talked with two friends who own e-readers. Abel is at the awareness stage of the new product adoption process.

false

Alternative evaluation is the process by which people select, organize, and interpret information to form a meaningful picture of the world.

false

Asian-American consumers are the least brand conscious of all ethnic groups.

false

Being able to try a new product is an unimportant stage in the adoption process as the consumer already has a good idea of the product's value.

false

Commercial sources of information typically legitimize and evaluate products for buyers.

false

Early mainstream adopters accept new ideas after the average person.

false

In the United States, the lines between social classes are not fixed and rigid, but people can only drop to a lower social class and not move up into a higher one.

false

Jim is planning on buying an expensive HDTV and he realizes that there are few differences between brands. Jim is displaying complex buying behavior.

false

People's tastes in food, clothes, recreation, and even furniture remain unchanged as they age.

false

Store salespeople and a consumer's friends rarely impact someone's final purchase decision.

false

Viviana wants to be the first to own the new fashion style of shoes. Viviana is an early mainstream adopter.

false

While an individual's beliefs are difficult to change, an individual's attitudes are easy to change.

false

What is the last step in the selling process?

follow-up

Because of the lack of supermarkets in low-income areas, many disadvantaged consumers find themselves in ________, with little or no access to healthy, affordable fresh foods.

food deserts

Which type of market segmentation has long been used in clothing, cosmetics, toiletries, and magazines?

gender

________ segmentation calls for dividing the market into different nations, regions, states, counties, cities, or even neighborhoods.

geographic

Marketers who track the locations of website visitors in order to deliver location specific content are utilizing _____.

geotargeting One interesting specific approach to location-based targeting is geotargeting, which in Internet marketing refers to determining the geographic location of a website visitor and delivering different content to that visitor based on his or her location, such as country, region/state, city, metro code/ZIP code, organization, IP address, Internet service provider (ISP), or other criteria.

Honest Tea produces a product that is tangible. It can be felt, seen, and tasted. This indicates that Honest Tea produces a ________.

good Goods are tangible items; they can be seen, touched, or tasted. Intangible products cannot always been seen, touched, tasted, smelled, or possessed, such as people, places, and ideas.

In which of the following steps of the selling process does a salesperson seek out, clarify, and overcome any customer disapproval to buying?

handling objections

Segmentation is

he process of dividing a larger market into smaller pieces based on one or more meaningfully shared characteristics.

Compare the selling and marketing concepts, listing the key components of each philosophy.

he selling concept reflects an inside-out philosophy, while the marketing concept takes an outside-in perspective. The selling concept is typically practiced when an organization is marketing products or services that buyers do not normally think of purchasing, such as insurance or blood donation. Aggressive selling focuses on creating sales transactions rather than on building long-term relationships with customers, with the aim of selling what the company makes rather than making what the customer wants. The marketing concept, on the other hand, is based upon identifying the needs and wants of target markets and then satisfying those needs and wants better than competitors do. In contrast to the selling concept, marketing focuses on the customer, not the product, as the path to profits.

The website leftyslefthand.com markets products to left-handed consumers only. Which targeting strategy does this represent?

Concentrated marketing

When a firm offers one or more products to a single segment, it uses which of the following strategies?

Concentrated marketing strategy

Find needs, wants, demand and market offering

Conduct market research to:

Societal marketing Concept

Consider: - Consumers' wants - the company's requirements - consumers' long-run interests - society's long-run intersts i. Relationships with everyone ii. Key is long term relationships and benefits

Marketing

Consumer research, product development, communication, distribution, pricing, and service are all most accurately described as core ________ activities. A) exchange B) marketing C) management D) production E) customer relationship management

________ marketing means that the company should view and organize its marketing activities from the consumer's point of view.

Consumer-oriented

Which of the following is an effect of the advancement of technology on marketing?

Consumers rely less on marketer-supplied information than in the past.

Honest Tea did not invent tea as a beverage, but rather, it modified the current tea offerings by using organic ingredients and offering additional benefits to the purchaser and user of the product. This indicates that Honest Tea is involved in which type of innovation?

Continuous innovation Continuous innovation is a modification to an existing product, as is the case of Honest Tea, which changed some of the basic ingredients so that they are organic.

Which type of product is usually a nondurable good and purchased with a minimum of effort by the consumer?

Convenience Correct. A convenience product typically is a nondurable good or service that consumers purchase frequently with a minimum of comparison and effort. As the name implies, consumers expect these products to be handy, and they will buy whatever brands are easy to obtain.

What is the first layer in the layers of the product concept?

Core product

Which of the following describes all the benefits the product will provide for consumers or business customers?

Core product

Which of the following is the term for customers who make repeat purchases and tell others about their positive experiences with a product or service?

Customer Evangelists

Stew Leonard, the owner of a highly successful regional supermarket chain, reacts adversely to losing a single customer sale. He feels that this amounts to losing the entire stream of future purchases that a customer is likely to make if he or she remains in the area. Stew Leonard's concern is an illustration of which of the following?

Customer Lifetime Value

Building, keeping, and growing profitable relationships by delivering customer value and satisfaction is called ________.

Customer Relationship Management

You have just taken a new position in an organization and you're learning about the job functions of your new colleagues. You observe that your marketing manager is heavily involved in the process of building and maintaining profitable customer relationships. Your marketing manager frequently speaks about the need to deliver superior customer value and satisfaction. Your manager is concerned with which one of the following?

Customer Relationship Management

Define customer relationship management and explain its associated tools and levels of relationships.

Customer Relationship Management (CRM) is the process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction. A company with mostly low-margin customers is likely to seek basic relationships, using brand-building advertising and sales promotion. An organization with few customers and high margins, on the other hand, will work to create key partnerships with select customers. To create stronger bonds with customers, some marketers use tools such as financial benefits or rewards based on frequency of purchase. Other tools include social benefits, like offering key customers the opportunity to network and create communities through club marketing programs. Another approach adds structural ties to the aforementioned financial and social benefits. Hence, to retain current customers and remain profitable, companies today are going beyond transactional marketing to customer relationship management. The key is to create and sustain relationships for the long term.

Sally purchased Brand X lotion. In comparing her perception of how the lotion made her skin feel and look to her expectations for Brand X lotion, Sally was measuring her level of ________.

Customer Satisfaction

Define customer equity and explain how a company can increase it.

Customer equity is the sum of the lifetime values of all a company's current and potential customers. Customer equity is dependent upon customer loyalty from a firm's profitable customers. Because customer equity is a reflection of a company's future, companies must manage it carefully, viewing customers as assets that need to be maximized. To increase customer equity, companies should work to delight their customers and establish full relationships with their most profitable customers.

Tommy Gray attempts to deliver customer satisfaction every day in his Audio Expressions installation business. He is a smart operator who knows that the key to this goal is to match ________ with ________.

Customer expectations; company performance

Explain why the aim of customer relationship management is to create not just customer satisfaction, but also customer delight.

Customer satisfaction cannot be taken for granted. Because brand loyalty is dependent upon strong customer satisfaction, companies strive to retain, satisfy, and even delight current customers. Firms create customer delight by promising only what they can deliver and then delivering more than what they promised. They also create emotional relationships with key customers. Delighted customers make repeated purchases and become customers for life. More importantly, they also essentially become an unpaid sales force for the firm as "customer evangelists" who tell other potential customers about their positive experiences with the product.

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

A clear need exists; know what they want

Customer-driven marketing is most likely to work well when ________ and when customers ________. A) a clear need exists; are difficult to identify B) customers do not know what they want; have limited budgets C) there are few competitors; are concerned about their long-run welfare D) a clear need exists; know what they want E) a want exists; cannot afford it

Marie Ortiz enjoys her work at Futuristic Designs, Inc. Her organization understands and anticipates customer needs even better than customers themselves do and creates products and services to meet current and future wants and demands. Marie's firm practices ________ marketing.

Customer-driving

Product Concept

Customers favor products with quality, performance and innovated features - devote energy to making continuous product improvements

Selling Concept

Customers won't buy enough product unless properly promoted - should undertake a large selling and promotion effort

ColaBlue, a soft drink manufacturer, is sued by an environmental group for not meeting certain safety standards in its waste disposal. ColaBlue remedies the problem by adding higher-grade filters and purifiers. Which of the following actions by ColaBlue would constitute a public-relations effort to address the effects of the lawsuit and the consequent damage to its brand image?

holding a press conference to explain the remedial steps that ColaBlue has taken

Which type of marketing strategy is being utilized when a manufacturer works with just a few large clients and makes only products those clients will use?

Customized A customized marketing strategy also is common in industrial contexts where a manufacturer often works with one or a few large clients and develops products that only these clients will use.

A charitable trust's appeal which states, "While you are trying to figure out what to get the man who has everything, don't forget the man who has nothing" is an example of a(n) ________ appeal. A) structural B) awareness C) rational D) moral E) standard

A manufacturer of a variety of technological devices asked its marketing department to develop inexpensive methods of building and maintaining brand awareness and excitement. The marketing department then recruited consumers who were early adopters of technological devices to spread the word about the company's new products. This is an example of ________. A) a reverse marketing activity B) nonpersonal marketing C) sales promotion D) buzz marketing E) direct marketing

A public relations firm tailors its advertising and promotional services according to the needs and preferences of specific customers. This exemplifies ________. A) trigger-based marketing B) mass marketing C) segmented marketing D) individual marketing E) concentrated marketing

A segment is less attractive if it ________. A) is difficult for new entrants to enter B) is substantial C) is actionable D) already contains many strong and aggressive competitors E) contains weak suppliers

Advantages of direct and digital marketing for sellers include all of the following EXCEPT ________. A) low cost B) efficiency C) speed D) need for sales training E) flexibility

An Irish company that manufactures umbrellas and ponchos primarily targeting consumers during the winter months is using ________ segmentation. A) psychographic B) income C) geographic D) occasion E) benefit

An ad for Maybelline age-minimizing makeup in Ladies' Home Journal magazine featured actress Gigi Hadid and offered readers a $2-off coupon when they tried the new makeup. In terms of the communication model, the sender of this message is ________. A) Gigi Hadid B) Ladies' Home Journal C) readers who redeem the $2-off coupon D) Maybelline E) the target market to which Gigi Hadid appeals

An ad for Maybelline age-minimizing makeup in Ladies' Home Journal magazine featured actress Gigi Hadid and offered readers a $2-off coupon when they tried the new makeup. In terms of the communication model, the medium of this ad is ________. A) Gigi Hadid B) Ladies' Home Journal C) readers who redeem the $2-off coupon D) Maybelline E) the target market to which Gigi Hadid appeal

An integrated social marketing campaign likely could include all of the following EXCEPT ________. A) Facebook pages B) Twitter postings C) Instagram photos D) television ads E) YouTube videos

Business information services such as Experian Marketing Services and Nielsen help marketers to ________. A) save significant amounts of money on shipping products B) spend more time identifying potential customers C) learn more specific details from consumers about their products D) segment people and locations into marketable groups of like-minded consumers E) expand their product offerings to interested clients and provide high-quality service to them

Changes to the marketing communications model include that consumers are changing and are better informed, that marketing strategies are changing and are moving from mass marketing, and that ________. A) manufacturing processes are becoming more efficient B) distribution of products worldwide is more feasible and cost-effective C) segmenting and targeting of consumers are more detailed than ever before D) digital technologies are changing the ways companies and customers communicate E) retailing is more competitive with more sources of products available for consumers

Communications programs need to be developed for specific niches, individuals, and ________. A) genders B) countries C) departments D) products E) segments

Companies know they cannot appeal to all buyers in the marketplace, or at least not in the same way. Reasons for this include all of the following EXCEPT ________. A) buyers are too numerous B) companies vary widely in their abilities to serve different market segments C) buyers are varied in their needs and buying practices D) companies need more information to offer the right products to the right customers E) buyers are widely scattered

Companies such as Amazon.com and Expedia.com that sell products and services directly to final buyers exclusively over the Internet are known as ________. A) transaction sites B) content sites C) search engines and portals D) e-tailers E) online social media

Consumers' names and additional information likely become part of ________ whenever they enter a sweepstakes, apply for a credit card, visit a Web site, or send a tweet. A) other consumers' contact lists B) telemarketers' lists C) their computer's cookie history D) a company's database E) the FTC's surveys regarding online privacy

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? A) geographic segmentation B) benefit segmentation C) occasion segmentation D) demographic segmentation E) psychographic segmentation

Double Drill Inc. segments its foreign markets by per capita income. This firm segments the international markets based on ________. A) political factors B) legal factors C) geographic location D) economic factors E) cultural factors

Even large companies use infomercials for all the following reasons EXCEPT to ________. A) recruit members B) refer customers to retailers C) attract buyers to online, mobile, and social media sites D) introduce new advertising campaigns E) sell their products

Geller Insurance calls qualified prospects to sell insurance. Which of the following forms of marketing is evident from this example? A) catalog marketing B) kiosk marketing C) direct-response television marketing D) telemarketing E) direct-mail marketing

Gilron Holidays runs a premium membership club that caters to customers whose annual salary exceeds $100,000. Members of this club are offered seasonal discounts at select luxury hotels in select cities worldwide. Gilron Holidays most likely follows a(n) ________ segmentation approach. A) gender B) benefit C) occasion D) income E) geographic

HP's advertising agency assembles words and illustrations into an advertisement that conveys the company's intended brand message. In the context of the communication process, HP is ________. A) messaging B) decoding C) sending D) encoding E) responding

Harvey's Bookstore is a popular online bookstore that has differentiated itself through smooth-functioning delivery networks. This is an example of ________ differentiation. A) product B) image C) price D) channel E) people

If Ruben interacted one-to-one with his customers to design his products and services according to individual needs, he would be practicing ________. A) concentrated marketing B) trigger-based marketing C) undifferentiated marketing D) mass customization E) segmented marketing

In ________, text-based ads and links appear alongside search engine results on sites such as Google, Yahoo!, and Bing. A) content sponsorships B) digital billboards C) digital catalogs D) contextual advertisements E) RSS feeds

In a communication process, a receiver assigns meaning to the symbols encoded by a company in its advertisements through a process known as ________. A) integrating B) reciprocating C) acknowledging D) decoding E) coordinating

In order to avoid shortsightedness, today marketers are moving toward viewing communications as managing the ________. A) organizational culture B) nonpersonal communication channels C) word-of-mouth influence D) ongoing customer relationships with the company E) product life cycle

John and Barb could have drawn attention to their services in several ways by using effective integrated marketing communications. Which of the following is NOT a part of an IMC strategy? A) public relations B) personal selling C) direct marketing D) strategic planning E) sales promotion

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? A) more for the same B) more for less C) same for less D) less for much less E) more for more

Kirk's Comic Store has its own mobile app that users can download for free. The app lets users know about special events, discounts, and merchandise currently available in the store. Which of the following forms of marketing is exemplified from this scenario? A) social media marketing B) kiosk marketing C) direct-response television marketing D) mobile marketing E) direct-mail marketing

Marketers now view themselves as ________ that create and share brand messages and conversations with and among customers across a mix of paid, owned, earned, and shared communication channels. A) promotion managers B) public relations managers C) sales managers D) content marketing managers E) account managers

Marketers often segment international markets according to the type and stability of government. In such instances, they segment markets based on ________. A) geographic location B) economic factors C) cultural factors D) political factors E) sociocultural factors

Marketers who use ________ often segment their markets by consumer lifestyles and base their marketing strategies on lifestyle appeals. A) demographic segmentation B) geographic segmentation C) benefit segmentation D) psychographic segmentation E) occasion segmentation

Marketing communicators must know what ________ and what ________. A) products they wish to sell; audiences they want to target B) distribution channel(s) they wish to use; timing they need C) advertising media they will use; message they will send D) audiences they wish to reach; responses they want E) message they will send; feedback they expect

Moral appeals ________. A) relate to the audience's self-interest by showing that the product will produce the desired benefits B) attempt to stir up either negative or positive emotions that can motivate purchase C) range from love, joy, and humor to fear and guilt D) are directed to an audience's sense of what is "right" and "proper" E) are based on the idea that practical benefits are more important for consumers than emotions

Of the following actions, which is permitted in personal selling activities? A) obtain or use trade secrets B) criticize competitors by using inaccurate information C) bribes to those who can influence a sale D) offer incentives such as discounts based on size of an order E) stretching the truth when describing advantages of a product

Of the various digital marketing categories, ________ is the fastest-growing category. A) blogs B) e-mail C) social media D) mobile E) brand Web sites

Online marketing includes marketing via the Internet using company Web sites, e-mail marketing, blogs, and ________. A) direct mail brochures B) live demonstrations C) samples D) online video E) focus groups

Pierre's Mart, a grocery store in New Orleans, Louisiana, offers less merchandise selection and fairly low levels of service. Despite the lackluster service and limited selection of merchandise, customers still flock to Pierre's because it charges rock-bottom prices. Pierre's Mart most likely uses the ________ positioning. A) more for the same B) more for less C) same for less D) less for much less E) more for more

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? A) individual marketing B) one-to-one marketing C) mass marketing D) concentrated marketing E) trigger-based marketing

Teen Mania Inc., a company marketing adventure sports merchandise for teenagers, targets the world's teenagers, who have similar needs and buying behavior even though they are located in different countries. Which market segmentation is evident here? A) income segmentation B) psychographic segmentation C) gender segmentation D) intermarket segmentation E) occasion segmentation

The strongest brands are positioned on ________. A) desirable benefit B) good packaging C) service inseparability D) strong beliefs and values E) product attributes

Through ________ differentiation, brands can be differentiated on features, performance, or style and design. A) services B) channel C) people D) product E) price

What is a significant issue for social media and for companies using it as a marketing tool? A) measuring viewership B) creating content C) identifying target markets D) monetizing the tool E) recognizing effective social media sites

When an effective program can be designed for attracting and serving a particular segment, the segment is best described as ________. A) accessible B) measurable C) competitive D) actionable E) differentiable

When marketers at Fair & Leigh Inc. selected the Millennials, a demographic group that includes many college students, as an untapped group of potential customers for their new line of products, they were engaging in ________. A) occasion segmenting B) local marketing C) market diversification D) market targeting E) product positioning

Which of the following is NOT a specific goal of branded community Web sites? A) present brand content that engages consumers B) build closer customer relationships C) generate engagement with and between the brand and its customers D) increase online sales E) allows visitors to interact with likeminded people to explore and communicate experiences with the brand

Which of the following is an advantage of using digital catalogs? A) lists the phone numbers of interested prospects B) coordinates with direct-response television ads C) points customers to the nearest kiosk D) eliminates printing and mailing costs E) creates emotional contact with customers

Which of the following is true with regard to the same for less value proposition? A) Discount stores and "category killers" rarely use the same-for-less value proposition. B) The same-for-less value proposition is mostly offered by marketers who sell higher quality upscale products or services. C) The same-for-less value proposition cannot generate profits. D) Offering the same for less can be a powerful value proposition because everyone likes a good deal. E) The same-for-less positioning involves meeting consumers' lower performance or quality requirements at a much lower price.

Which of the following statements is most likely true regarding the competitive-parity method? A) This method involves starting with total revenues, deducting operating expenses and capital outlays, and then devoting some portion of the remaining funds to advertising. B) It is based on the availability of funds rather than on opportunities. C) It wrongly views sales as the cause of promotion rather than as the result. D) In this method, promotion budgets are set to match competitors' outlays. E) This method involves setting the promotion budget at a certain percentage of current or forecasted sales.

While developing an effective integrated communication, once the target audience has been defined, marketers must do all these steps EXCEPT ________. A) determine the desired response B) collect feedback C) choose the media through which to send a message D) identify potential distractions E) design a message

While using integrated marketing communications, the communications process should start with a(n) ________. A) advertising strategy B) competitive-parity analysis C) long-term public relations plan D) audit of all potential customer touch points E) strategy for implementing a social media presence

Why are historically online shops such as Zappos.com adding catalogs to their marketing methods? A) to meet the increased demand in print catalogs B) to reduce the costs involved in online marketing C) to connect with customers in hard-to-reach places D) to drive online sales and services E) to reduce the need for telemarketers

________ consists of strong short-term incentives that invite and reward quick responses from customers. A) Public relations B) Personal selling C) Advertising D) Sales promotion E) Direct marketing

________ involves creating a video, e-mail, mobile message, advertisement, or other marketing event that is so infectious that customers will seek it out or pass it along to their friends. A) Telemarketing B) Omni-channel marketing C) Integrated marketing D) Viral marketing E) Kiosk marketing

________ involves sending an offer, announcement, reminder, or other item to a person at a particular address. A) Kiosk marketing B) Online marketing C) Ambush marketing D) Direct-mail marketing E) Telemarketing

________ marketing features marketing messages and promotions delivered to on-the-go consumers through their handheld devices. A) Kiosk B) Ambush C) Direct-mail D) Mobile E) Catalog

________ marketing is more suited for products that vary in design. A) Mass B) Local C) Direct D) Differentiated E) Individual

________ refers to a market-coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer. A) Individual marketing B) Local marketing C) Niche marketing D) Undifferentiated marketing E) Segmented marketing

________ refers to how a company will create differentiated value for targeted segments and what positions it wants to occupy in those segments. A) Targeted marketing B) Market segmentation C) Product positioning D) Value proposition E) Niche marketing

________ segments are conceptually distinguishable and respond differently to different marketing mix elements and programs. A) Complex B) Measurable C) Competitive D) Differentiable E) Homogeneous

________ show(s) consumer perceptions of a company's brands versus competing products on important buying dimensions. A) Differentiation B) Positioning C) Market targeting D) Perceptual positioning maps E) Market segmentation

n a short essay, discuss the challenges and advantages that new communication technologies have created for marketers.

hrough the Internet and related technologies, people can now interact in direct and surprisingly personal ways with large groups of others, from neighbors within a local community to people across the world. With communication technologies such as e-mail, blogs, Web sites, online communities, and online social networks, today's marketers incorporate interactive approaches that help build targeted, two-way customer relationships. Marketers can create deeper consumer involvement and a sense of community surrounding a brand, making a brand a meaningful part of consumers' conversations and lives. However, while new communication tools create relationship-building opportunities for marketers, they also create challenges. They give consumers a greater voice, and therefore greater power and control in the marketplace. Today's consumers have more information about brands than ever before, and they have a wealth of platforms for airing and sharing their brand views with other consumers. This benefits companies when views of its products are positive, but can be damaging when customers share stories of negative experiences with a company's products.

reasons packaging is more important now

increased use of self service for purchasing. greater consumer afflunece, increased emphasis on brand image, opportunities for innovative packaging, determining portion purchase size

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

Zephyr Inc., an electronics manufacturer, wants to enter the commercial tracking device market with its latest product, FindIt. Unlike other tracking devices, FindIt is very small and relatively cheap, but it can be used only within small areas as it has a low detection-range. Which type of advertising would be best for FindIt?

informative advertising

Trainstar, a sportswear equipment manufacturer, releases a new line of energy drinks called VitaZing. The television ad for the energy drink shows people jogging, working out in a gym, and doing aerobics. The actors then take a break to drink VitaZing, which visibly re-energizes them and leads them to continue exercising. Which advertising style is most likely used in the VitaZing ad?

lifestyle

Grocers in neighborhoods with a large Hispanic population typically carry more brands that Hispanic consumers prefer than grocers in other neighborhoods. This is an example of ________.

local marketing

component parts

manufactured products that have been made to become part of a finished product.

If a company assigns individual teams of salespeople to big retail customers, it most likely has a(n) ________ sales-force structure.

market

Sandy Bayes works at Hilton Brews as a senior sales executive and manages all the key national accounts of his company. His job involves ensuring that key customers receive the best service from Hilton Brews. Sandy is also responsible for acquiring new customers with high consumption needs on a nation-wide basis. Despite his lack of product specialization in all the product lines, Sandy is hired for this position because of his excellent interpersonal skills. Hilton Brews has most likely adopted a ________ sales-force structure.

market

Lemony Inc. sells its popular bottled lemonade-the company's only product-in various geographic locations through tie-ups and agreements with retailers. Each location is represented by two salespersons, one of whom serves current customers while the other finds new ones. Which of the following sales-force structures has most likely been combined to form the complex sales-force structure at Lemony Inc.?

market and territorial

In which of the following structures does a company organize its sales force along client or industry lines?

market sales-force structure

________ involves dividing a market into smaller segments of buyers with distinct needs or behaviors that might require separate marketing strategies.

marketing segmenting

processed materials

materials that have been processed to conform to specific standards and eventually become part of a finished product.

Toyota allows Scion buyers to customize their cars to meet their exact needs and preferences. This is an example of ____________.

micromarketing

Based on this desire, the team has come up with three product concepts for the anti-aging cream. Before you decide on a concept, they want to do product testing, which is the next phase in the product development process. The team has decided that focus groups with potential customers that fit the three different concepts will be conducted for product testing. Choose the product concept that you think will test the best.

mid tier product

Targeting is a strategy in which marketers evaluate the attractiveness of each potential segment and decide

n which of these groups they will invest resources to turn them into customers.

According to the text, the most logical budget-setting method in advertising is the ________ method.

objective-and-task

Firms that manufacture seasonal products target their consumers primarily through ________ segmentation.

occasion

Which method of setting advertising budgets best helps management think about the relationship between promotion spending, selling price, and profit per unit?

percentage-of-sales method

In a promotion mix, ________ occurs when a firm's sales force makes individual presentations to consumers for the purpose of promoting sales and building customer relationships.

personal selling

Tilt Entertainment, a gaming design firm, has developed a new game called World Below. In order to get wider distribution, Tilt participates in the Gaming Entertainment Expo, which is attended by both sellers and consumers. Tilt sends a team of representatives for game presentation and negotiation and a team of professional gamers to showcase World Below at the Expo. The company also sends a team to sell its other games to consumers at the Expo. Which promotion mix tool has Tilt used in this scenario?

personal selling

Which of the following types of promotion tools requires the most interaction with a customer?

personal selling

What is the primary goal of trade promotions?

persuading resellers to carry a brand

The primary objective of ________ advertising is to build selective demand.

persuasive

________ products give high immediate satisfaction but might hurt consumers in the long run.

pleasing

Cream Bay has come out with a new range of ice creams. To promote the new products, Cream Bay has set up shopping mall kiosks to offer free ice cream samples to potential customers. Which promotion tool is Cream Bay most likely using?

point-of-purchase promotions

A(n) _____ statement can help the company frame internally how a product is situated in consumers' minds so that marketing communication remains focused on articulating to consumers the specifics value offered by a product.

positioning

Which of the following terms refers to developing a marketing strategy to influence how a particular market segment perceives a good or service in comparison to the competition?

positioning

An undifferentiated targeting strategy

ppeals to a broad spectrum of people.

In which step of the selling process does a salesperson learn as much as possible about a prospective customer before making a sales call?

preapproach

In which step of the selling process does a salesperson set call objectives?

preapproach

If competitors cannot easily copy the benefit a company chooses to promote, that benefit is said to be _________.

preemptive

Kartoffel, a food processing company, offers a free toy inside every 50g packet of their potato chips. Which of the following promotion tools does this exemplify?

premium

You have worked with the research department to implement the research plan. The team has gathered the data, checked it for accuracy, and coded it for analysis. How should you present your findings so that the VP of Marketing can best utilize them?

present only those important insights and findings that you think will be useful n the major decisions made by management

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

Which consumer promotion tool involves selling two products for the price of one?

price packs

Simpson Ltd., located in San Diego, provides a range of household and healthcare goods to consumers within the region. The firm also runs a number of local hotels and resorts under its brand name. Simpson employs different sales forces for each major division, so there are sales teams for household goods, healthcare goods, hotel management, and resort management. Simpson has most likely adopted a(n) ________ sales-force structure.

product

Easy Life manufactures a wide range of kitchen appliances, healthcare products, and cosmetics. Its salespeople are divided on the basis of their expertise in a product category. Again, within each category, they are divided into teams addressing large retail customers, convenience stores, and the general public. Which of the following sales-force structures has most likely been combined to form this complex sales-force structure?

product and market

Lazer Telecom, a cell phone manufacturer, has signed a contract with a production house to fund a new movie. The conditions of the agreement state that the movie will feature Lazer Telecom phones onscreen. What kind of advertising technique has Lazer Telecom most likely adopted in this example?

product placement

supplies

products purchased in support of a business organization's operational activities.

In which step of the selling process does a salesperson or company identify qualified potential customers?

prospecting

Robert Solis is a salesman in a company that specializes in event management. He uses the Internet to identify potential companies with which his company can build long-term profitable relationships. Which step in the selling process does this scenario depict?

prospecting

What is the first step in the selling process?

prospecting

reasons for packaging

protection of product, promotion, identification, information, innovation, usage of product, storage and handling.

As part of the decision-making process in positioning, marketers must define the competitive advantage, which means to __________.

provide a reason why consumers will perceive the product as better than the competition

Dividing buyers into groups based on social class, lifestyle, or personality characteristics is called ________ segmentation.

psychographic

The marketing manager at Arbor's Delicatessen targets customers who are working to lose weight but who still want to dine out. The restaurant chain offers a wide variety of low-fat, low-calorie meals that appeal to dieters. Arbors' approach is best referred to as ________ segmentation.

psychographic

A company which uses a press release to explain the resignation of a former CEO is using ________ to maintain its brand image.

public relations

In a promotion mix, ________ performs the functions of building a good rapport with entities outside the company, building up a good corporate image, and handling unfavorable rumors and events.

public relations

A ________ strategy involves a company spending a lot of money on advertising and promotion to induce consumers into buying the product by creating a demand vacuum.

pull

Pearl Sands is a resort in the town of Willington. It attracts the maximum number of customers in the summer. In the spring, Pearl Sands sponsors shows on TV and puts up billboards in Willington and the surrounding towns. The billboards advertise Pearl Sands as an ideal holiday spot, whether for a weekend getaway in the summer heat or for a family vacation. This is an example of a ________ strategy.

pull

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

rebate

How have social media tools most likely affected personal selling?

reducing the use of person-to-person selling efforts

Master brand

refers to a brand that becomes so dominant that people tend to think of the brand and the product as one and the same.

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

salutary

Fruity Loop, a leading manufacturer of fruit-juices, introduces a new range of potato chips. To promote this new product, it offers a packet of potato chips free with every bottle of Fruity Loop juice. Which of the following promotion tools is Fruity Loop using in this case?

samples

What is the process of dividing a larger market into smaller pieces based on one or more meaningfully shared characteristics called?

segmentation

Which of the following is the first step in the target marketing process?

segmentation

Which of the following segments would a marketer be targeting if the marketer were analyzing the habits of Millennials, Baby Boomers, and Generation X?

segmenting by age

Which segment is a marketer appealing to by recognizing that a consumer's national origin is often a strong indicator of preferences for specific magazines or TV shows, foods, apparel, and leisure activities?

segmenting by ethnicity

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

sense- of-mission

Your local pizzeria promises "Delivery in 30 minutes or less or the pizza is free." What point of differentiation is this?

services differentiation

You consider the situation, roll up your sleeves, and get to work. What should be the first step you take in obtaining the information you need to help eCompeteUSA move up in the eSports industry?

set up a meeting with the VP of marketing hand other involved parties to define the problem that

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

setting advertising objectives

Which of the following types of products usually require the consumer to spend time to gather information on quality, price, and attributes before making a purchase decision?

shopping Correct. In contrast to convenience products, shopping products are goods or services for which consumers will spend time and effort to gather information on price, product attributes, and product quality. For these products, consumers are likely to compare alternatives before they buy.

Accessories

short lived products that are standardized and purchased more frequently.

The ________ style of advertising shows ordinary people clearly using a product in a normal setting.

slice of life

Which of the following would best describe the type of product Honest Tea produces?

specialty product Consumer goods can be classified by the way they are purchased. Specialty products, such as Honest Tea, have unique characteristics that are important to buyers at almost any price. Organic ingredients and the social responsibility of the company are characteristics important to Honest Tea consumers, and they are willing to pay more for these characteristics. Unsought products are those in which the consumer has little awareness or interest until the need arises. Convenience products are those that are purchased routinely with little thought or comparison behind the purchase decision. Equipment and raw materials are classifications of products within the B2B market.

What is the purpose of a sales manager using a time-and-duty analysis?

supervising salespeople

Confirmation is the __________ stage in a consumer's adoption of a new product. s

sure

Harvesting the product involves reducing various costs such as maintenance, R&D, and advertising to increase profits.

Which of the following terms refers to the market segments on which an organization focuses its marketing plan and toward which it directs its marketing efforts?

target market

When marketers evaluate the attractiveness of each potential segment and decide in which of these groups they will invest resources to try to turn them into customers, marketers are engaging in _____.

targeting

Which of the following promotion tools would best reach a geographically dispersed mass audience in a short period of time?

television advertising

Loretta Inc., a U.S.-based watch manufacturer, sells its products in France, China, Russia, and India. To manage sales, Loretta appoints a number of sales representatives to each location. Sales representatives report to area managers, and area managers coordinate sales in their respective areas before reporting to regional managers. Loretta has most likely adopted a ________ sales-force structure.

territorial

An ad that shows real-life examples of people whose lives have changed due to a product is an example of the ________ style of advertising.

testimonial evidence

brand mark

the part of the brand that is developed as a symbol or shape that is recognized to represent the product. NOT AUTOMATICALLY LEGALLY PROTECTED

descriptive

thirsty athletes \ yoga love

Value

During the economic downturn, marketers have been emphasizing the ________ of their products more than ever. A) image B) value C) personality D) safety E) uniqueness

A __________ innovation is a change in an existing product that requires a moderate amount of learning or behavior change.

Dynamically continuous innovation

After selecting a sweater on the Land's End Web site, Kelly was asked to fill in details for the customer database. Kelly was given a form that required her to fill in her name, date of birth, and e-mail address. Kelly then checked a box that was next to the following statement: "Yes, I would like to receive weekly promotional information from Land's End online." Which of the following practices is evident from this scenario? A) e-mail hosting service B) e-mail spoofing C) catalog marketing D) contextual advertising E) permission-based e-mail marketing

Amazon.com and GEICO approach customers via Web sites or mobile apps. This is an example of ________ marketing. A) mass B) niche C) individual D) multi-level E) direct

An American cola-manufacturing company that primarily targets rebellious and adventurous people most likely uses ________ segmentation. A) occasion B) geographic C) income D) benefit E) psychographic

Business marketers use geographic, demographic, benefit, user status, usage rate, and loyalty status to segment their markets. They also use ________, customer operating characteristics, purchasing approaches, and situational factors. A) weather patterns B) psychographics C) ethical traits D) budgets and financial status E) personal characteristics

Digital catalogs offer all of the following benefits EXCEPT ________. A) presenting an almost unlimited amount of merchandise B) offering a broad assortment of presentation formats, including search and video C) adding and removing products as needed D) adjusting prices instantly to meet demand E) touching the product

Display media includes ________. A) newspapers B) magazines C) television D) company Web sites E) billboards

Effective Web sites contain interactive tools that help find and evaluate content of interest, links to other related sites, useful information, changing promotional offers, and ________. A) celebrity endorsers B) respected columnists C) advertising for unrelated products D) enticements for customers to include their friends and contacts E) entertaining features that lend excitement

Gainville Inc. manufactures Android phones. Each new Gainville phone launch advances the cause of democratizing technology. Gainville, an expert in fostering customer community, engages customers at a deep, emotional level, and has been ranked one of the Breakaway Brands by the brand consultancy, Kendell Associates. Gainville is most likely positioned on ________. A) basic product attributes B) short-term benefits C) service variability D) self-image enhancement E) strong beliefs and values

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) word-of-mouth influence B) public relations C) buzz marketing D) a push strategy E) a pull strategy

How has do-not-call legislation helped direct marketers? A) Marketers are compensated by the Federal Trade Commission for lost sales caused by the laws. B) Direct marketers have outsourced their activities to firms that are exempt from such laws. C) Direct marketers have developed kiosks as an alternative to telemarketing. D) Telemarketers are allowed to call customers for a small fee. E) Telemarketers have developed opt-in calling systems that target consumers who have chosen to be contacted and therefore are less invasive.

In addition to the specific promotion tools, marketing communication requires ________ for greatest impact. A) the engineering and manufacturing departments work together B) the sales force lead the communication process C) the advertising be developed with the manufacturers' representatives D) the pubic relations staff work closely with the sales force E) the promotion, product, price, and place be coordinated

In the scenario, Ruben has segmented his market based on ________. HE TARGETED SCHOOL STUDENTS. A) geography B) benefits sought C) occasion D) degree of loyalty E) demographics

Integrated marketing communications require a company's mass-market advertisements, Web site, e-mail, and personal selling communications to all ________. A) have equal portions of the advertising budget B) use independent communications directors C) develop separate marketing objectives D) engage the same target audience E) deliver a clear, consistent, and compelling message

Sales promotion tools used to persuade resellers to carry a brand, give it shelf space, promote it in advertising, and push it to consumers are collectively called ________ promotions.

trade

Josh received an e-mail stating that he had won a lottery of $500,000 from Lottors Corporation. The e-mail asked Josh to send his bank account details and social security number to transfer cash directly to his account. Josh did not remember buying any lottery tickets, and so was apprehensive about providing his bank details without verification. Which of the following is illustrated from this scenario? A) adware B) viral marketing C) telemarketing D) cyberbullying E) phishing

Music Mogul has arrangements with several stores and retail chains to place their DVDs and digital music machines in prime spots such as near billing counters and at store entrances. Consumers can buy DVDs by depositing payment or they can buy music online via the touchscreen interface on the machine. Which form of marketing is illustrated in this scenario? A) direct-response television advertising B) telemarketing C) interactive television D) podcast marketing E) kiosk marketing

Orion Inc. markets luxury watches. It targets the wealthy global elite segment, regardless of their geographic location. Orion most likely uses ________ segmentation. A) income B) age-group C) occasion D) benefit E) cross-market

Personal communications about a product between target buyers and neighbors, friends, family members, associates, and other consumers, are known as ________. A) personal selling B) direct marketing C) public relations D) buzz marketing E) word-of-mouth influence

Randy keeps getting unwanted and annoying e-mails from several marketing firms unknown to him. The number of these e-mails is alarmingly high in his inbox. Which of the following best describes these e-mails? A) malware B) adware C) Trojan D) firewall E) spam

The difference between an inside sales force and an outside sales force is that an outside sales force ________.

travels frequently to call on customers in the field

In which stage of the consumer adoption process do consumers experience or use the product for the first time?

trial Correct. Trial is the stage in the adoption process when potential buyers will actually experience or use the product for the first time. Often marketers stimulate trial when they provide opportunities for consumers to sample the product.

Runner Sprintz, a particular brand of shoes, has its own Web site, myrunnersprintz.com that welcomes consumers to "the Runner Sprintz Century," invites readers to post their Runner Sprintz stories, and offers a wide variety of shoes for direct purchase. The site even allows customers to individually design their own shoes and share them among their circles on the Web site. Which of the following best describes myrunnersprintz.com? A) Web directory B) blog C) corporate Web site D) digital catalog E) branded community Web site

Some companies obtain the rights to use the names or symbols previously created by other manufacturers for a fee. This process is known as ________. A) multibranding B) positioning C) segmenting D) co-branding E) licensing

SparkClean is a company that specializes in producing cleaning products for automobiles. In order to promote its products, SparkClean sends a complimentary sample of its products to auto enthusiasts. Which form of marketing is SparkClean involved in? A) online marketing B) viral marketing C) telemarketing D) kiosk marketing E) direct-mail marketing

The decision to use an NBA star player to communicate the desirability of Nike basketball shoes represents the ________ process of the communication model. A) sourcing B) messaging C) acknowledging D) decoding E) encoding

Using ________ segmentation, marketers form segments of consumers who have similar needs and buying behaviors even though they are located in different countries. A) psychographic B) demographic C) occasion D) benefit E) intermarket

What is a disadvantage of a viral success? A) Many people will see the marketing message. B) The cost per exposure is relatively low. C) Word-of-mouth is strong. D) Publicity is always good. E) Marketers have little control over where the message ends up.

What is the most likely reason that direct-response television marketing has increased in recent years? A) uses of social media B) shifts in demographics C) increases in global demand D) changes in FTC legislation E) advances in technology

When starting their business, John and Barb would most likely have benefitted from understanding ________. A) social media B) buzz marketing C) public relations campaigns D) network television advertising E) integrated marketing communications

Which buyer-readiness stage are consumers in when they are feeling favorable about the product? A) preference B) conviction C) knowledge D) purchasing E) liking

Which of the following advertising slogans most likely represents a two-sided argument? A) Breakfast of champions B) Good to the last drop C) A diamond is forever D) The ultimate driving machine E) The next big thing is already here

Which of the following is a benefit of using blogs as marketing tools for companies? A) Blogs provide companies with a platform to help portray wider merchandise. B) Blogs are online selling platforms for people located in hard-to-reach places. C) Blogs help reach a wider audience compared to other online direct marketing tools. D) Demographic information about customers can be easily discovered. E) Blogs can offer a fresh, original, personal, and cheap way to enter into consumer conversations.

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? A) radio B) magazines C) newspapers D) network television E) online social networks

Which of the following is most likely an advantage of viral marketing? A) Viral marketing reinforces consumers' attitudes about a brand. B) Most messages are likely to "go viral." C) Consumers want to be a part of viral marketing. D) Viral marketing can easily be successfully accomplished. E) Viral marketing produces engagement and positive exposure for a brand.

Which of the following is true about multivariable segmentation systems? A) Marketers using multiple segmentation bases tend to ignore smaller markets. B) Marketers often use multiple segmentation bases to control inflation. C) Multiple segmentation rarely involves the use of demographic data. D) Multiple segmentation is ineffective in large markets. E) Multiple segmentation bases help identify smaller, better-defined target groups.

Which of the following is true of a pure competitive market? A) A single seller has a major effect on the current and future market price. B) Companies spend significantly on marketing research and product development. C) The advertising budget of companies is usually huge. D) Sellers try to develop differentiated offers for E) Sellers spend little time on marketing strategy.

A brand personality is the specific mix of human traits that may be attributed to a particular brand.

true

According to Maslow's hierarchy of needs theory, when the most important need is satisfied, it will cease to be a motivator, and the person will then try to satisfy the next most important need.

true

Dissonance-reducing buying behavior typically occurs when a buyer sees little difference among brands but is highly involved with the purchase.

true

Early adopters are opinion leaders in their communities. They adopt new ideas early but carefully.

true

Ed purchased electronic devices such as a smartphone, and tablet after many people he knew already owned the devices. Ed belongs to the adopter group called lagging adopters.

true

Online social networks represent an important avenue to create buzz for marketers.

true

Postpurchase behavior is the stage of the buyer decision process in which consumers take further action after purchase, based on their satisfaction or dissatisfaction.

true

The adoption process for new products refers to the mental process through which an individual passes from first learning about an innovation to final adoption.

true

The starting point of understanding how consumers respond to various marketing efforts is called the stimulus-response model of buyer behavior.

true

Two of the characteristics that are especially important in influencing an innovation's rate of adoption are relative advantage and compatibility.

true

Which of the following requires a company to be willing to bet that people have similar needs so the same product and message will appeal to many customers?

undifferentiated target strategy

Many marketers think that companies should aggressively promote only one benefit to the target market. The benefit promoted is known as a(n) ________.

unique selling proposition

Which of the following is a measurement that reflects the quantity purchased or frequency of use among consumers of a particular product or service?

usage rate

Having decided what you want to research, you now must decide what sources to use to gather your data. The following secondary resources are available. Which will you choose to use first? Bear in mind that using in-house databases costs very little, whereas using a commercial database will incur considerable expenses.

use-in house year purchase history data from the past 10 years which contains consumer profiles

Which of the following statements is true regarding today's marketing communications? A) More marketers are shifting away from narrowly defined micromarkets and moving toward mass marketing. B) More customers have started relying on marketer-supplied information rather than finding out information on their own. C) Network television, magazines, newspapers, and other traditional mass media continue to increase their dominance. D) Focused marketing programs, which are designed to build closer relationships with customers in more narrowly defined micromarkets, are no longer used by marketers. E) Today's consumers are better informed about products and services.

Which of the following terms refers to a 30-minute television advertising program that markets a single product? A) social media B) digital catalog C) telemarketing D) blog E) infomercial

While shopping at KelfanDesigns.com, Shelly came across a checkbox beside which a statement said, "I want to receive promotional offers from KelfanDesigns.com." Which of the following types of marketing is illustrated in this example? A) telemarketing B) viral marketing C) direct response television marketing D) contextual advertising E) permission-based e-mail marketing

While there may be many differences between brands, not all are meaningful or relevant to consumers. Which of the following is NOT a criterion for establishing the value of a difference to promote? A) superior; the difference is superior to other ways that customers might obtain the same benefit B) affordable; buyers can afford to pay the difference C) profitable; the company can introduce the difference profitably D) important; the difference delivers a highly valued benefit to target buyers E) visually appealing; customers will be able to see and appreciate the difference

________ allows consumers to gain additional information about a product through the use of a remote control. A) Telemarketing B) Kiosk marketing C) Podcasting D) Video conferencing E) Interactive television

________ can be a poor predictor of a person's health, work or family status, needs, or buying power. A) Occupation B) Education C) Ethnicity D) Religion E) Age

________ is the practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations. A) Mass marketing B) Trigger-based marketing C) Differentiated marketing D) Concentrated marketing E) Micromarketing

________ positioning involves providing the most upscale product or service and charging a higher price to cover the higher costs. A) More for the same B) More for less C) Same for less D) Less for much less E) More for more

________ segmentation divides buyers into different segments based on lifestyle or personality characteristics. A) Benefit B) Occasion C) Geographic D) Demographic E) Psychographic

________ segmentation divides buyers into different segments based on social class, lifestyle, or personality characteristics. A) Benefit B) Occasion C) Geographic D) Demographic E) Psychographic

________ segmentation divides the market into segments based on variables such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation. A) Geographic B) Benefit C) Occasion D) Psychographic E) Demographic

During which step of the positioning strategy process is a brand image evaluated to make sure it reflects changes in the market?

Evaluating responses and modifying as needed Marketers evaluate the target market's responses so they can modify strategies if necessary. Over time, the firm may find that it needs to change which segments it targets or even alter a product's position to respond to marketplace changes.

Staff

Everybody else

Perfect Price

Everything sells

Secondary values

Example: when to get married

_______ is the act of obtaining a desired object from someone by offering something in return.

Exchange

Which of the following best describes what equipment is?

Expensive goods that an organization uses in its daily operations and that last for a long time

Which of the following segments would a marketer be targeting if the marketer analyzed consumers based on their needs and wants as changes within their family occur such as the members getting married, having children, kids moving away to go to college, and retirement?

Segmenting by family life cycle

Branding decisions include determining a product price.

False;

Which of the following describes the adoption step in a consumer's adoption of a new product? Trial Trial

Making the product available and providing product use information

Customer Equity

The total combined lifetime values of all the company's customers

Because of ________, a company cannot make its product illegally similar to a competitor's already established product. A) anti-monopoly laws B) patent laws C) the Consumer Product Safety Act D) product warranties E) product liability

Companies that use brand ambassadors are most likely involved in ________ marketing. A) ambush B) spam C) buzz D) viral E) database

Product attributes include all of the following EXCEPT ________. A) style B) design C) price D) features E) quality

Which type of product does Delgado manufacture? A) industrial B) convenience C) specialty D) shopping E) unsought

Life-stage segmentation allows marketers to create targeted, actionable, and ________ campaigns based on how people consume and interact with brands. A) inexpensive B) professional C) multimedia D) social media E) personalized

Which of the following is characteristic of online social networks? A) use of one-way communication techniques B) negligible adoption rates C) guaranteed positive results D) easy methods to measure results E) interactive media content

In most cases, what is the most expensive promotion tool? A) advertising B) personal selling C) mass media D) public relations E) publicity

Which of the following variables are the most popular for marketers to use in segmenting customer groups? A) ethical B) psychographic C) demographic D) behavioral E) geographic

Which of the following is a type of identity theft that uses deceptive e-mails and fraudulent Web sites to fool consumers into revealing their personal data? A) bait-and-switch B) cyber spying C) viral marketing D) phishing E) spam

A company will always choose the largest and fastest-growing segments as the most attractive for it to enter.

A marketing communications director has overall responsibility for the company's communications efforts.

An experience such as a vacation can be defined as a market offering. True/False

True

Break-even volume is the number of unit sales required for total revenue to cover total cost.

True

implied warranty

an unwritten guarantee that the good or service is fit for the purpose for which it was sold.

________ are the major marketing factors in the sale of most manufactured materials and parts. A) Branding and advertising B) Price and service C) Sales promotion and advertising D) Branding and packaging E) Public relations and brand management

________ consumers are one of the fastest-growing U.S. population subsegments and are expected to surge to nearly one third of the total U.S. population by 2030. A) African American B) Hispanic American C) Asian American D) Baby boomer E) Millennial

According to the principle of ________ marketing, the company should put most of its resources into customer value-building marketing investments.

customer value

________ is the product life cycle period when sales fall off and profits drop. A) Introduction B) Growth C) Maturity D) Decline E) Product development

A label can identify, promote, and ________ the product. A) sell B) assemble C) package D) brand E) describe

Brand extension decisions

using established brands to launch other products

Which of the following reflects the marketing concept?

"This is what I want; won't you please make it?"

Which of the following reflects the marketing concept philosophy?

"We don't have a marketing department; we have a customer department."

Goal of Marketing

1. Attract new customers by promising superior value 2. Keep and Grow new customers by delivering satisfaction

Macro environment

1. Demographic - Age, gender, race, people moving/shifts, education 2. Economic 3. Natural - Shortages of raw materials 4. Technological - Things we use to produce product 5. Political/Social - Laws, regulations, pressure groups a. Anti-trust law: Fight fair or don't lie about your product

Value Chain

1. Design 2. Produce 3. Market 4. Deliver 5. Support

Marketing Intelligence

Activities that go into marketing plan a. Publicly available information

Selling and advertising are synonymous with marketing

All of the following are accurate descriptions of modern marketing today, EXCEPT which one? A) Marketing is the creation of value for customers. B) Marketing is managing profitable customer relationships. C) Selling and advertising are synonymous with marketing. D) Marketing involves satisfying customers' needs. E) Marketing is used by for-profit and not-for-profit organizations.

Share of Customer

Amazon.com leverages relationships with its 35 million customers by offering them music, videos, gifts, toys, consumer electronics, and office products, among other product items. Based on previous purchase history, the company recommends related CDs, books, or videos that might be of interest. This helps Amazon.com capture a greater ________. A) value proposition B) customer ownership C) share of customer D) social network E) customer base

Ask what to know to make a good decision

Assess information needs

According to the production concept, consumers will favor products that are ________ and _________

Available;affordable

In building a connection to customers through catalogs, marketers want to ________. A) offer a new brand experience B) inspire and engage C) create word-of-mouth advertising D) develop a viral following E) perform marketing research

Marbles Inc. has placed vending machines in most of its retail stores in Florida. Consumers can order a pack of marbles by just selecting their requirements on the touch screen. Which term best describes such machines? A) POP B) kiosk C) virtual catalog D) interactive television E) automated teller machine

Market segments that can be effectively reached and served are ________. A) measurable B) accessible C) substantial D) actionable E) profitable

Which budgeting method entails defining specific promotion goals, determining the necessary tasks, and estimating the costs to determine a promotion budget? A) percentage-of-sales method B) objective-and-task method C) affordable method D) exponential task method E) competitive-parity method

Which kind of social media networks are smaller communities likely to join or create? A) blog B) niche C) Internet D) video E) commercial

A(n) ________ is a set of symbols that the sender transmits. A) encoder B) feedback loop C) message D) media E) decoder

Joanna uses her smartphone to accomplish many tasks everyday. She is also an avid shopper. Which online marketing tool will benefit Joanna the most to help her shop? A) e-mail messages from sites to which she subscribes B) banking app for her bank C) instant deals and digital coupons D) YouTube video E) Facebook friends

John Deere does very little promoting of its lawn mowers and garden tractors to final consumers. Instead, John Deere's sales force works with Lowe's, Home Depot, independent dealers, and other channel members, who in turn sell John Deere products to final consumers. According to this information, which of the following promotion mix strategies is being used by John Deere? A) public relations strategy B) direct marketing strategy C) push strategy D) blitz strategy E) pull strategy

Many firms hire celebrities to appear in their advertisements. Which step of the communication process is represented? A) collecting feedback B) designing a message C) selecting the message source D) determining the communication objectives E) choosing the media

Marketing communicators must be good at ________ messages that take into account how the target audience ________ them. A) delivering; encodes B) sending; encodes C) encoding; decodes D) retrieving; perceives E) decoding; receives

Which of the following examples represents a product sales-force structure?

Cartlon Computers sells its range of highly specialized computers through special teams, each of which has received training in the configuration, uses, and USPs of a single model in the range.

Threats

Competitors, Regulators and Customers

The Three Levels of Planning Product

Core Product, Tangible Product, and Augmented Product

When customers don't know what they want or don't even know what's possible, the most effective strategy is ________ marketing.

Customer-driving

In the communication process, an actual HP printer/fax machine advertisement would be considered ________. A) encoding B) decoding C) the product D) the message E) the medium

Oscarz Aviation's Web site, GoOscarzAv.com, informs customers about a wide variety of services offered by the firm. It also has a guestbook where customers can provide feedback on their experiences with Oscarz Aviation. They can also view videos Oscarz Aviation posts, as well as read and respond to blogs and ask questions. GoOscarzAv.com is an example of a(n) ________. A) online social network B) blog C) kiosk D) branded community Web site E) digital catalog

Which of the following statements is true about personal communication channels? A) A magazine advertisement exemplifies the use of a personal communication channel. B) All personal communication channels are directly controlled by a company. C) Personal communication channels do not allow sending and receiving of feedback. D) word-of-mouth influence uses a personal communication channel. E) A billboard message exemplifies the use of a personal communication channel.

Which of the following states the product's membership in a category and then shows its point of difference from other members of the category? A) a mission statement B) a vision statement C) a general need description D) a positioning statement E) an order-routine specification

________ are communities over the Internet where people congregate, socialize, and exchange views and information. A) Corporate Web sites B) Interactive television C) Digital catalogs D) Online social networks E) Content sponsorships

When backed by buying power, wants become __________.

Demands

In the case of excess demand, _________ may be required to reduce the number of customers or to shift demand temporarily or permanently.

Demarketing

To avoid traffic gridlock in large metro areas, a community might use ________ to discourage travelers from driving during peak commuting hours.

Demarketing

Which of the following refers to an approach of developing one or more products for each of several distinct customer groups and making sure these offerings are kept separate in the marketplace?

Differentiated targeting strategy

What is a target marketing strategy?

Divides the total market into different segments on the basis of customer characteristics, selecting one or more segments and developing products to meet the needs of those specific segments

A ________ consists of a set of buyers who share common needs or characteristics that the company decides to serve. A) marketing channel B) citizen-action group C) distribution channel D) customer franchise E) target market

A marketer making decisions about the headline, copy, illustration, and colors for a print ad is determining the message ________. A) structure B) content C) medium D) channel E) format

Contraction

Eliminating existing products items from an established product line due to being obsolete, declining sales, and new product line direction

Nike makes shoes out of "environmentally preferred materials." It recycles old sneakers and educates young people about conservation, reuse, and recycling. What policy has this company adopted?

Environmental sustainability

A company introducing a product that is similar to its competitors' product will do a complete test market to gain maximum information before product introduction.

Adapting marketing strategies is not a challenge faced in the product life cycle.

When segmenting by user status, markets are segmented into light, medium, and heavy product users.

With technology advances making it simple to contact many customers at once, companies have moved toward mass marketing over target marketing.

The "Stop. Think. Tylenol." ad slogan is an example of a moral appeal.

The communications process should start with mass media advertising in order to reach a large number of consumers.

F; starts with identifying the target audience & characteristics

When marketers set low expectations for a market offering, the biggest risk they run is __________.

Failing at attract enough customers

A company will be at an advantage even if it costs more than its competitors to make and sell a similar product.

False

Consumer-generated marketing, a relatively new phenomenon, has so far had little impact as a marketing force. T/F

False

Demarketing is a marketing philosophy focused upon product differentiation and positioning. T/F

False

Fast Food, Inc. views marketing as the science and art of finding, retaining, and growing profitable customers by providing them with the food they want. Fast Food, Inc. practices societal marketing. T/F

False

For few companies, the package itself has become an important promotional medium.

False; many companies, practically all

A seasonal discount is a price reduction to buyers who buy merchandise while the products are in season.

False; off season

Persuasive labeling

Focuses on the promotional theme or logo of a product, printed on its box. a type of labeling.

________ means striving for good faith and fair dealing so as to contribute toward the efficacy of the exchange process as well as avoiding deception in product design, pricing, communication, and delivery or distribution.

Foster trust in the marketing system

A room upgrade offered by a hotel to a guest who often stays in the hotel is an example of a ________.

Frequency Marketing Program

1. Harness Technology 2. Manage global markets 3. Ensure ethics and social responsibility

How to achieve the 5 steps

________ advertising is used heavily when introducing a new product category.

Informative

A firm that uses the selling concept takes a(n) ________ approach.

Inside-out

Business products classifications

Installations, accessories, raw materials, processed materials, component parts, supplies, and business services

Customer-Perceived Value

It is most accurate to say that a customer will buy from the company that offers the highest ________. A) value for the dollar B) customer perceived value C) level of customer satisfaction D) company image E) concern for society's interests

Global competition

It is most accurate to say that today almost every company, small and large, is affected in some way by which of the following? A) the societal marketing concept B) customer relationship management C) global competition D) not-for-profit marketing E) customer-generated marketing

Which of the following is true of public relations?

It is not a sales-directed form of communication.

Which of the following is true of direct marketing?

It is suited for highly targeted marketing efforts and for building one-to-one customer relationships.

Which of the following is true of personal selling?

It is the most expensive promotional tool for companies to utilize.

Which of the following is a shortcoming of advertising?

It only provides one-way communication with customers.

Symptoms of Product Line overextension

Low sales and cannibalization of other items, resources disproportionately allocated to slow moving products, items become obsolete because of new product entries

Beyond simply retaining good customers, marketers want to constantly increase their "share of customer." What does this mean in marketing terms?

Marketers want to increase the share they get of the customer's purchasing in their product categories.

Which of the following is an example of consumer-generated marketing?

MasterCard's use of "Priceless" commercials shot by customers

Straight Product Extension

No changes for international market

Which of the following is the most likely result of a marketing strategy that attempts to serve all potential customers?

Not all customers will be satisfied

Customer Relationship Management

Of the following, which is the most important concept of modern marketing? A) customer relationship management B) e-mail advertising C) mass marketing D) properly trained sales people E) low prices

Which of the following is currently the fastest-growing form of marketing?

Online Marketing

Which of the following examples represents a territorial sales-force structure?

Oriental Meals, producers of precooked Chinese meals, markets its products throughout the country using a network of regional sales offices.

Marketing

Process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return

"Build a better mousetrap and the world will beat a path to your door" reflects the __________ concept.

Product

Product Mix Decision activities

Product Mix, branding, packaging, labeling, warranties, customer service.

At one time, Miller Beer was known as the "champagne of bottled beer." It was targeted at an elite class of customers. Later, to increase sales, Miller was repositioned to attract members of the working, middle-class. What is this segmentation method called?

Psychographic

Through ________, many companies today are strengthening their connections to all partners, from providers of raw materials to components to final products that are delivered to final buyers.

Supply Chain Management

A marketing Web site interacts with consumers to move them closer to a direct purchase or other marketing outcome.

A product idea is an idea for a possible product that a company can offer the market.

If the pull strategy is effective, then consumers will demand the product from channel members, who will in turn demand it from producers.

In evaluating different market segments, a firm should look at three factors: segment size and growth, segment structural attractiveness, and company objectives and resources.

Marketing

The ________ concept holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfaction better than competitors do. A) product B) production C) selling D) equity E) marketing

Several factors affect the rate of adoption for a new product. Which of the following describes the compatibility factor?

The extent to which a new product is consistent with existing cultural values, customs, and practices

Devote its energy to making continuous product inprovements

The product concept says that a company should ________. A) improve marketing of its best products B) market only those products with high customer appeal C) focus on the target market and make products that meet those customers' demands D) devote its energy to making continuous product improvements E) make promoting products the top priority

Which of the following must take place before a product qualifies as a discontinuous innovation?

The product must radically change modern lifestyle Correct. To qualify as a discontinuous innovation, the product must create major changes in the way we live. Major inventions, such as the airplane, the car, and the TV, are the sort of innovations that radically changed modern lifestyles.

Customer Lifetime Value (CLV)

The value of the entire stream of purchases that the customer would make over a lifetime of patronage.

Which of the following is true of marketing strategies that are being developed in the new marketing communications model?

They are more targeted, social, and engaging.

Which of the following statements is true of consumer promotions?

They include a wide range of tools like samples, coupons, and refunds.

Which of the following is an advantage of a territorial sales-force structure?

Travel expenses are relatively small.

A company's product mix has four important dimensions: width, length, depth, and consistency.

True

A demand curve shows the number of units the market will buy in a given time period at different prices that could be charged.

True

Cost-based pricing is often product driven.

True

a. Secondary Data/Already existing b. Primary Data - Relevant but costs a lot c. Commercial/online data d. Megadata - Already know what trends are e. Focus group - Intimate, you can ask questions about product f. Relative sample - Take one because you can't ask the whole world

Types of Data

Customer-Driving Marketing

Understanding the customer needs even better than customers themselves do and creating products and services that meet existing and latent needs, now and in the future.

If an organization is hoping to achieve economies of scale, what targeting strategy should they be pursuing?

Undifferentiated Undifferentiated targeting strategies can be very efficient because production, research, and promotion costs benefit from economies of scalelong dashit's cheaper to develop one product or one advertising campaign than to choose several targets and create separate products or messages for each.

Which of the following is an example of a consumer product?

Unsought product

Which of the following refers to a measurement that reflects the quantity purchased or frequency of use among consumers of a particular product or service?

Usage rate

The process by which benefits-based value is created through collaborative participation by customers and other stakeholders in the new product development process is __________.

Value co-creation

_________ are human needs as shaped by individual personality and culture.

Wants

Demands

When backed by buying power, wants become ________. A) social needs B) demands C) physical needs D) self-esteem needs E) exchanges

Disposable incomes decreased.

Which of the following is a true statement about the economic crisis that began in 2008? A) The economic crisis caused a short-term change in consumers' spending habits. B) The average home value increased after the stock market plunge. C) Decreasing energy prices provided consumers with unexpected savings. D) Disposable incomes decreased. E) Consumers quickly regained confidence in the economy.

BMW's use of brand-related consumer videos posted on video-sharing web sited

Which of the following is an example of consumer-generated marketing? A) Toyota's presence in online communities B) Nike's Nike Plus running Web site C) BMW's use of brand-related consumer videos posted on video-sharing Web sites D) Neiman Marcus's InCircle Rewards program for its best customers E) The Lexus Covenant aimed at creating customer delight

Customer-Perceived Value

Which of the following is determined by a customer's personal evaluation of the benefits and costs of a market offering relative to those of competing offers? A) customer-perceived value B) customer satisfaction C) customer-perceived performance D) customer relationship management E) market segmentation

Lowering prices

Which of the following strategies would a company most likely use to increase customer satisfaction? A) decreasing variety of services offered B) lengthening the supply chain C) lowering prices D) "firing" unprofitable customers E) limiting experiences with a brand

Web 3.0

Which version of the Internet has introduced small, fast, and customizable applications that can be accessed through multifunction mobile devices? A) Web 1.0 B) Web 2.0 C) Web 3.0 D) Web 4.0 E) Web 5.0

Partner Relationship Management

Working closely with partners in other company departments and outside the company to jointly bring greater value to customers

Partner relationship management

Working closely with partners in other company departments and outside the company to jointly bring greater value to customers.

The client is a cosmetics company that has been in business for five years and has distribution relationships with several large department stores. The company wants to increase overall company market share by 10% with this product within the next two years. The team now needs to choose the best marketing strategy.

You chose concentrated niche marketing. This was the best choice. The results of the focus groups suggest men and women in the middle income bracket, age 45+, would most likely purchase an anti-aging cream.

This product received glowing reviews from all three men and five of the women. The other two women felt that they would be more drawn to a product with a nice scent. Based on this feedback, what is the next step to move this product forward?

You chose to begin marketing strategy development. This was the best choice. This is the next step in the new product development process.

Your next step in the process is to test the product in the market. Test marketing can be extensive and expensive. At a brainstorming session, the team comes up with the following three scenarios. You now need to recommend which option is best for the anti-aging cream.

You chose to use a controlled test market. This was the best choice. Using a controlled test market is less expensive than doing a complete test marketing program. The results will also be from real consumers.

Wants

________ are human needs as shaped by individual personality and culture. A) Deprivations B) Wants C) Demands D) Values E) Exchanges

Marketing

________ is defined as a social and managerial process by which individuals and organizations obtain what they need and want through creating and exchanging value with others. A) Selling B) Advertising C) Bartering D) Marketing E) Negotiating

Exchange

________ is the act of obtaining a desired object from someone by offering something in return. A) A value proposition B) Exchange C) Bribery D) Value E) Donation

A market

________ is the set of actual and potential buyers of a product. A) A market B) An audience C) A group D) A segment E) An exchange

A company must pay each month's bills for rent, heat, interest, and executive salaries regardless of the company's level of output. This exemplifies its ________ costs. A) overhead B) variable C) target D) total E) unit

A decision to position the product on high-performance quality will mean that the ________. A) seller must charge a higher price to cover higher costs B) seller must charge a lower price to attract more customers C) producer must step down production D) marketer must boost derived demand in the market E) break-even volume will be fairly low

A group of business entrepreneurs who worried about their teenage children drinking and driving decided there must be some way to approach this problem proactively. They came up with an idea for a pair of blurry goggles. They believed looking through the goggles would simulate what the world looks like when someone is seriously intoxicated. They developed a crude pair of blurry goggles to show prospective customers. This crude pair of goggles is known as a ________. A) prototype B) concept test C) product concept D) product image E) product idea

Acquisition refers to ________. A) the buying of a whole company, a patent, or a license to produce someone else's product B) an agreement between two or more commercial companies to produce a common product C) a partnership between two companies to produce a product in different countries by sharing risks D) investments made in a country's businesses by foreign citizens, often in the form of stocks E) the development of original products, product improvements, product modifications, and new brands through the firm's own product development strategies

Bon Vivant offers an assortment of exclusive French wines at incredibly low prices. These prices are neither limited-time offers nor special discounts, but represent the daily prices of products sold by Bon Vivant. This reflects Bon Vivant's ________ pricing strategy. A) everyday low B) markup C) penetration D) break-even E) cost-based

By definition, ________ pricing is used when a firm sells a product or service at two or more prices, even though the difference in price is not based on differences in cost. A) segmented B) variable C) flexible D) cost-plus E) reference

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? A) connection to entertainment and information B) state-of the art technology C) slick and attractive packaging D) brand name E) tech support and warranty

Many marketers use the self-concept premise that people's possessions contribute to and reflect their identities—that is, "we are what we consume." According to this premise, consumers ________. A) buy products to support their self-image B) rarely identify with brand personalities C) are affected by opinion leaders D) compare product brands E) conduct primary research

Product mix ________ refers to the total number of items a company carries within its product lines. A) length B) depth C) height D) width E) consistency

Service productivity can be increased by hiring new employees who will work harder, by giving up some quality, or by ________. A) using technology more effectively B) outsourcing portions of the process to other firms C) creating more self-serve opportunities for customers D) reducing the number of products offered E) increasing the price on some of the product line

According to the text, the search for new product ideas should most likely be ________. A) intermittent B) holistic C) segmented D) compartmentalized E) flexible

Almost all major purchases result in ________, or discomfort caused by postpurchase conflict. A) need recognition B) cognitive dissonance C) consumer ethnocentrism D) conspicuous consumption E) consumer capitalism

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 ________. A) an aggressive brand personality B) high brand equity C) no brand commitment D) negative brand equity E) low brand relevance

CellTones, a new company selling several types of cellular phones, has closely modeled its products after successful products that are already in the marketplace. As it prepares to enter the market with its new products and services, which of the following should concern CellTones the most? A) legal obligations to suppliers and dealers B) patent laws C) distribution requirements D) product liability suits E) limited warranties

Companies set not a single price, but a pricing ________ that covers different items in its line and changes over time as products move through their life cycles. A) by-product B) structure C) loop D) cycle E) bundle

Companies that set a low price for a new product in order to attract a large number of buyers and a large market share are using the ________ strategy. A) market-skimming pricing B) market-penetration pricing C) cost-plus pricing D) inclusive pricing E) exclusive pricing

Companies with higher costs ________. A) can drive out competitors through their pricing strategy B) intentionally pay higher costs so that they can add value through higher quality and claim higher prices and margins C) can set lower prices that result in increased sales though with lower margins D) specialize in selling products without value-added features E) are more financially successful

Competitors are most likely to react to a price change when ________. A) a large number of competitors are involved B) the product is uniform C) the buyers are not well informed about product features D) buyers are not well informed about price differences E) the products are not uniform

Consumer information provider Nielsen uses a life-stage segmentation system that places U.S. households into one of 66 different life-stage groups. According to Nielsen's groups, which of the following refers to the group consisting of hip, single twenty-somethings who are politically liberal, listen to alternative music, and enjoy lively nightlife? A) Striving Singles B) Young Achievers C) Bohemian Mix D) Young Influentials E) Young Digerati

Costs that change with the level of production are referred to as ________. A) fixed costs B) variable costs C) target costs D) total costs E) overhead costs

Evelyn's ________ is the practical use of solar power in a vacuum cleaner that is designed to effortlessly vacuum clean the floors of on-the-go and elderly consumers. A) product placement B) product concept C) product image D) product idea E) virtual product

For the past ten years, Bill and Margaret have saved money to go to the Super Bowl should their team, the Chicago Bears, reach the finals of the NFC championship. This is the year, and several tour companies offer attractive, but very similar, packages to the game. Since all packages are pretty much the same, they have chosen one that fits their budget. Bill and Margaret are most likely exhibiting ________. A) complex buying behavior B) dissonance-reducing buying behavior C) habitual buying behavior D) consumer capitalism E) consumer ethnocentrism

Generally, the consumer's purchase decision will be to buy the most preferred brand, but two factors can come between the purchase intention and the purchase decision. Which of the following is one of these factors? A) economic risks B) attitudes of others C) cognitive dissonance D) alternative evaluation E) buyer's remorse

If a service employee provides the service, then the employee becomes a part of the service. This is an example of service ________. A) intangibility B) inseparability C) variability D) perishability E) heterogeneity

John's fascination for his grandmother's sherbet recipes inspired him to come up with a recipe for SherBetter, a gourmet sherbet for the American market. Which of the following stages of the new product development process does this exemplify? A) idea screening B) idea generation C) concept testing D) product development E) product manufacturing

Kellogg's begins to sell its cereals in new markets after conducting extensive marketing research. After the cereal begins to appear in these new markets, the company increases its promotion expenditure to counteract competitive responses. Kellogg's is in the ________ stage of the product life cycle. A) introduction B) growth C) maturity D) decline E) adoption

Manufacturers must comply with specific laws regarding ________. A) profit margins B) product quality and safety C) product harvesting D) distribution channel length E) product life cycles

Many marketers now use ________ research to dig deeply into consumer psyches and develop better marketing strategies. A) analytical B) interpretive C) causal D) descriptive E) experiential

People tend to interpret new information in a way that will support what they already believe. This is called ________. A) selective retention B) selective distortion C) cognitive dissonance D) selective attention E) cognitive bias

Price is important to managers ________. A) because prices cannot be changed quickly, so must be correctly determined B) because a small percentage improvement in price can generate a large percentage increase in profitability C) but other marketing mix elements create customer value and build relationships D) but product features can be changed more quickly E) but has little impact on a firm's market share

Product improvements, product modifications, and original products can all be classified as ________. A) blueprints B) new products C) prototypes D) product extensions E) test products

Skyrim Corp. lacks the capital and capacity to launch its new helicopter for full national and international distribution. If the test market results look promising, what should be management's next step? A) retest the product in additional markets B) develop a planned market rollout over time C) liquidate its assets to gain capital and capacity D) seek the help of a nationally known consultant E) develop a prototype

The Internet offers ________, where the price can easily be adjusted to meet changes in demand. A) captive pricing B) dynamic pricing C) basing-point pricing D) price bundling E) cost-plus pricing

The ________ seeks to prevent unfair price discrimination by ensuring that sellers offer the same price terms to customers at a given price level. A) FTC's "Guides against Deceptive Pricing" B) Robinson-Patman Act C) Sherman Act D) Clayton Act E) Automobile Information Disclosure Act

The experience curve reveals that ________. A) repetition in production has no visible impact on production costs B) repetition in production enhances efficiency C) the average cost of production remains the same with accumulated production experience D) repetition in production adds to the costs and thereby increases the prices of outputs E) the average cost of production increases with accumulated production experience

Trade-in allowances are most commonly used in the ________ industry. A) real estate B) automobile C) dairy products D) financial services E) health care

Which major promotion category uses catalogs, direct mail, e-mail, mobile marketing and social media? A) sales promotion B) direct and digital marketing C) horizontal diversification D) public relations E) advertising

Which of the following actions is a restaurant owner most likely to take in order to reduce problems associated with service intangibility? A) increase entree prices after 6:00 p.m. B) provide clean tablecloths and fresh napkins for each new customer C) empower employees to handle customer complaints D) offer discounted prices for appetizers ordered during happy hour E) hold regular employee workshops focusing on customer service

Which of the following is true of price skimming? A) It is effective in situations in which competitors are able to undercut prices easily. B) It can be profitably used when the product's quality and image support its price. C) It involves underpricing products so that companies make larger sales. D) It is ineffective in situations in which competitors are unable to enter the market easily. E) It leads to a situation in which the company completes more, though less profitable, sales.

Which of the following is true of public policies and pricing? A) The government imposes no limits on intrastate pricing issues. B) The Robinson-Patman Act governs interstate commerce. C) Companies have free rein when it comes to setting prices. D) The Sherman Act governs intrastate commerce. E) The Clayton Act encourages the formation of monopolies.

Which of the following is true with regard to brand equity? A) Brand equity refers to how much consumers know about the brand. B) High brand equity provides a company with many competitive advantages. C) A brand has positive brand equity if consumers react less favorably to it than to an unbranded version. D) Positive brand equity derives from low brand esteem. E) The total financial value of a brand can be easily measured.

Which of the following is true with regard to services? A) Services refer to purely tangible products. B) Services are a form of product that consists of activities, benefits, or satisfactions offered for sale. C) Services can be stored for later use. D) Services can be easily separated from their providers. E) Services are tangible product offerings whose quality can be easily measured.

Which of the following stages of the new product development process occurs immediately after the completion of the business analysis for the product or service? A) idea screening B) product development C) product activation D) marketing strategy development E) product design

Which of the following statements characterizes the introduction stage of the PLC? A) There are increased marketing outlays. B) Profits are nonexistent. C) The company incurs minimal expenses. D) The product achieves acceptance by most potential buyers. E) Promotional expenditures are zero.

Which of the following statements is true of cultural factors that influence consumer behavior? A) Cultural influences on buying behavior are identical across countries. B) Social classes show distinct product and brand preferences in areas such as clothing and travel. C) Subcultures include nationalities and racial groups, but exclude religions. D) Subcultures are groups within which each individual has a unique and distinct value system. E) Hispanic Americans and African Americans are examples of racially segregated groups and not subcultures.

Which of the following statements is true of the new product development process? A) The purpose of the idea screening stage is to create a large number of ideas. B) Under the business analysis stage, if the new product satisfies the company's objectives, the product then moves to the product development stage. C) A product concept is the way consumers perceive an actual or potential product. D) The concept testing stage is the stage at which the product and its proposed marketing program are introduced into realistic market settings. E) Commercialization is the process of inviting broad communities of people such as customers, employees, and scientists into the new product innovation process.

Which of the following would be considered predatory pricing? A) a company that prices its products below cost to get rid of a surplus B) a company that prices below cost to drive out competitors C) a company that offers a volume discount D) a company that offers the suggested retail price on the manufacturer's package E) a company that offers real-time pricing online

Why are customers often considered the most important sources of new product ideas? A) Customers are close to the market and can pass along information about problems and new product possibilities. B) The company can analyze customer questions and complaints to find new products that better solve consumer problems. C) Customers buy competing new products, take them apart to see how they work, analyze sales, and then decide to purchase. D) Customers review the sales, costs, and profit projections for a new product to find out whether the product satisfies the company's objectives. E) Customers estimate the minimum and maximum sales to assess the range of risk.

With which pricing strategy does the seller take responsibility for part or all of the actual freight charges in order to acquire the desired business? A) FOB origin pricing B) freight-absorption pricing C) basing-point pricing D) location-based pricing E) uniform-delivered pricing

________ allowances are price reductions given for turning in an old item when buying a new one. A) Promotional B) Trade-in C) Depreciation D) Segmented E) Functional

The Pillsbury Doughboy is an example of _____ in which his friendly demeanor and the trademark giggle he lets out when poked in the belly help shape consumer perceptions of the brand.

brand anthropomorphoism

In which step in the product development process do marketers assess a product's commercial viability?

business analysis

The marketers at Honest Tea determine commercial viability prior to introducing a new product to the market. Which step of new product development does this best describe?

business analysis The phases by which firms develop new products include idea generation, product concept development and screening, marketing strategy development, business analysis, technical development, test marketing, and commercialization. During business analysis, marketers assess a product's commercial viability.

117) Flurrbies, a brand of unique winter accessories that quickly fell in and out of favor with customers, is an example of a ________. A) style B) fashion C) fad D) norm E) subculture

A ________ is the way consumers perceive an actual or potential product. A) product idea B) product concept C) product image D) brand personality E) concept test

A company's total marketing communications mix consists of a specific blend of advertising, sales promotion, public relations, personal selling, and direct-marketing tools that the company uses to communicate customer value and build customer relationships. Which of the following terms best describes this set of communications tools? A) the product mix B) product line filling C) the promotion mix D) the price mix E) horizontal diversification

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. A) bundled product B) captive product C) by-product D) optional product E) primary product

A market-penetration pricing policy should LEAST likely be used for a new product when ________. A) the market is highly price sensitive B) production and distribution costs fall as sales volume increases C) the product's quality and image support a high price D) a high price helps keep out the competition E) there are few or no competitors in the market

A marketer of women's hair care products targeting Chinese customers created an advertising message that told women their hair could be worn any way they wanted as opposed to wearing it straight. The message suggested the women did not need to conform to the mainstream media definition of beauty. It is most accurate to say that this ad was based on an understanding of customers' ________. A) social class B) life-cycle stage C) self-concept D) status E) role

A person's buying choices are influenced by four major psychological factors. Which of the following is NOT one of these factors? A) motivation B) perception C) association D) learning E) beliefs

A product idea is ________. A) the way consumers perceive an actual or potential product B) the knowledge and awareness of a product among consumers C) a possible product that the company can see itself offering to the market D) a detailed version of the new product idea stated in meaningful consumer terms E) the testing of new product concepts with groups of target consumers

A product's ________ identifies the product or brand, describes several things about the product, and promotes the brand. A) line extension B) portfolio C) label D) design E) feature

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. A) wages of employees B) costs of utilities of the restaurant C) atmosphere and décor of the restaurant D) travel distance for customers E) percentage of bar patrons versus dining patrons

A review of the sales, costs, and profit projections for a new product to find out whether they satisfy the company's objectives is called a ________. A) business feasibility plan B) marketing strategy development C) business analysis D) product acceptance E) business proposal

A well-known cosmetic company in New York City added new product lines in order to increase its business. In other words, it ________. A) lengthened its existing product line B) decreased its product line consistency C) widened its product mix D) engaged in market diversification E) engaged in social marketing

A(n) ________ is a descriptive thought that a person has about something. A) lifestyle B) motive C) belief D) attitude E) cognition

A(n) ________ is a straight reduction in price on purchases during a stated period of time or of larger quantities. A) allowance B) free sample C) discount D) tax credit E) quota

Advertising campaigns involving issues ranging from health care, education, and environmental sustainability to human rights and personal safety can be classified under ________ marketing. A) corporate image B) internal C) social D) place E) person

After the purchase of a product, consumers will be either satisfied or dissatisfied and engage in ________. A) consumer capitalism B) alternative evaluation C) postpurchase behavior D) consumer ethnocentrism E) information searches

An invitation to go skiing over the weekend forced Donna to look at her current wardrobe. She realized that she required a warmer coat. Which of the following stages of the buyer decision process does Donna exemplify? A) product evaluation B) situational analysis C) need recognition D) problem screening E) information search

Apple's iPod has been called "one of the greatest consumer electronics hits of all time." iPods have been sold in huge numbers, and Apple captures a large share of the music player market. This success has attracted many large, resourceful competitors. The iPod is in the ________ stage of the product life cycle. A) introduction B) growth C) maturity D) decline E) adoption

As production moves up, the average cost per unit decreases because ________. A) variable costs decrease B) of increasing diseconomies of scale C) fixed costs are spread over more units D) overhead costs decrease E) revenue increases

Brand ________ is the differential effect that knowing the brand name has on customer response to the product and its marketing. A) differentiation B) knowledge C) equity D) personality E) relevance

James has decided to buy a new vehicle. His brother John has recently purchased a new truck and recommends the same model to James. James finally decides to buy the same truck. Which of the following sources of information has most likely influenced James' purchase decision? A) experiential sources B) public sources C) personal sources D) commercial sources E) market mavens

John has decided to buy a particular smartphone that he saw reviewed online. Which of the following sources of information has most likely influenced John's purchase decision? A) laggards B) commercial sources C) public sources D) personal sources E) market mavens

Price setting is usually determined by ________ in large companies. A) top managers B) external stakeholders C) product managers D) non-executive employees E) the sales department

Product mix ________ refers to the number of different product lines the company carries. A) length B) height C) width D) consistency E) depth

Product planners need to consider products and services on three levels. At the second level, product planners must ________. A) offer additional product support and after-sale services B) identify the core customer value that consumers seek from the product C) turn the core benefit into an actual product D) find out how they can create the most satisfying brand experience E) define the problem-solving benefits or services that consumers seek

Product planners need to consider products and services on three levels. Each level adds more customer value. The most basic level is ________, which addresses the question, "What is the buyer really buying?" A) an actual product B) an augmented product C) core customer value D) co-branding E) exchange value

The buyer decision process consists of five stages. Which of the following is NOT one of these stages? A) need recognition B) information search C) conspicuous consumption D) purchase decision E) postpurchase behavior

The first step in designing support services is to ________. A) add new services that will both delight customers and yield profits to the company B) closely observe the product and pricing strategies of consumers C) survey customers to assess the value of current services and obtain ideas for new ones D) prevent brand dilution E) encourage customers to try new products

The simplest pricing method is ________ pricing. A) value-based B) fixed cost C) cost-plus D) target return E) competition-based

Which of the following focuses on finding new ways to solve customer problems and create more customer-satisfying experiences? A) concept testing process B) customer value proposition C) customer-centered new product development D) customer lifetime value E) team-based new product development

Which of the following groups do marketers involve for the process of concept testing new products? A) suppliers B) employees C) target consumers D) manufacturers E) competitors

Which of the following is NOT part of Maslow's hierarchy of needs? A) physiological needs B) safety needs C) spiritual needs D) esteem needs E) social needs

Which of the following is the practice of inviting broad communities of customers, employees, independent researchers, and members of the public into the new product innovation process? A) brainstorming B) idea screening C) crowdsourcing D) outsourcing E) concept testing

Which of the following is true of market-penetration pricing? A) It should be used when the product's quality and image support a high price. B) It involves setting a high price for a new product to appeal to the elite in society. C) It results in drawing in large numbers of buyers quickly, winning a large market share. D) It is best used in conjunction with a market-skimming pricing strategy. E) It results in the company making fewer and less profitable sales.

Which of the following is used in an attempt to dominate the market through a pricing strategy? A) price increase B) match competitors' pricing C) price cuts D) quantity discounts E) custom prices

Which of the following product mix pricing strategies involves pricing products that can only be used with the main product? A) by-product pricing B) product bundle pricing C) captive product pricing D) product line pricing E) optional product pricing

Which of the following statements is true of social classes? A) Social classes are society's temporary divisions. B) Members of a social class have unique and distinct values, interests, and behaviors. C) People within a social class tend to exhibit similar buying behavior. D) Income is the single factor that determines social class. E) Social classes universally exhibit identical product and brand preferences.

Which of the following statements is true regarding social classes in the United States? A) Social class is determined by income alone. B) Lines between social classes in the United States are fixed and rigid. C) Social classes show distinct product preferences in clothing and automobiles. D) Wealth is more critical than education level in measuring social class. E) People are relegated to a permanent social class in the United States.

________ are formed by noting current prices, remembering past prices, or assessing the buying situation. A) Product line prices B) Seasonal prices C) Reference prices D) Time-based prices E) Product bundle prices

________ are industrial products that aid in the buyer's production or operations, including installations and accessory equipment. A) Unsought products B) Convenience products C) Capital items D) Specialty items E) Repair items

________ consumers are the most affluent U.S. demographic segment and are expected to have an annual buying power approaching $1 trillion by 2017. A) Hispanic American B) African American C) Asian American D) Baby boomers E) Generation X

________ includes sales presentations, trade shows, and incentive programs. A) Direct and digital marketing B) Sales promotion C) Personal selling D) Public relations E) Advertising

Which term refers to a tool used by managers to supervise their salespeople?

call plan

Salespeople write up their completed activities in a(n) ________.

call report

you hold a meeting with VP of Marketing and others to define

can we increase eCompeteUSA's market share

You hold a meeting with the VP of Marketing and others to define the main focus of the research. Which of the following questions would best serve eCompeteUSA at this time?

can we increase eCompeteUSA's market share by targeting nontraditional niche (small) audiences?

Socially responsible target marketing would classify which of the following as an especially vulnerable target market for harmful or controversial products?

children

In which of the following steps of the selling process does a salesperson ask a buyer for an order?

closing

A ________ sales-force structure combines several types of sales force organizations.

complex

Based on this feedback, what is the next step to move this product forward?

conduct more

__________ is the coming together of two or more technologies to create a new system with greater benefits than the sum of its parts.

convergence

Which of the following takes place when two or more technologies are combined to create a new system that provides greater benefits?

convergence Correct. One particular type of discontinuous innovation is convergence, which means the coming together of two or more technologies to create new systems that provide greater benefit than the original technologies alone.

A company getting ready to launch a new product must make several decisions. The company must first decide on ________. A) whether to launch the product in a single location B) whether to launch the product in a region C) whether to launch the product into full national distribution D) when to introduce the product E) when to develop a planned market rollout

A company that uses well-known celebrities to help sell its products is using ________ marketing. A) interactive B) internal C) social D) person E) organization

A market-skimming pricing strategy should NOT be used for a new product when ________. A) the product's quality and image support its higher price B) enough buyers want the products at that price C) competitors are unable to enter the market D) competitors can undercut prices easily E) producing a smaller number of goods is feasible

A pharmaceutical company in Utah recently released a new and expensive anti-ulcer drug in the market. The company justifies the high price of the drug by claiming that it is highly effective for treating all kinds of ulcers. The company also claims that the new drug will help bring down the need for invasive surgeries, an additional benefit for patients. Which of the following pricing strategies is the pharmaceutical company most likely using in this instance? A) target pricing B) markup pricing C) cost-based pricing D) value-based pricing E) break-even pricing

A(n) ________ is a person's relatively consistent evaluations, feelings, and tendencies toward an object or idea. A) lifestyle B) motive C) belief D) attitude E) perception

Companies are doing less ________ and more ________ as a result of the explosive developments in communication technologies to better target smaller customer segments. A) personal selling; digital activities B) public relations activities; digital activities C) digital activities; mass marketing D) mass marketing; digital marketing E) viral marketing; word-of-mouth marketing

If Milt Alden focuses on overall costs of manufacturing plus profit in setting product prices, which strategy would he employ? A) break-even pricing B) competition-based pricing C) value-added pricing D) cost-plus pricing E) good-value pricing

If a consumer's drive is strong and a satisfying product is near at hand, the consumer is likely to purchase the product at that time. If not, the consumer may store the need in memory or undertake ________. A) consumer ethnocentrism B) buyer's remorse C) a need recognition D) an information search E) cognitive dissonance

In a(n) ________, consumers interact with new products and marketing tactics in laboratory stores or virtual online shopping environments. A) standard test market B) focus group C) controlled test market D) simulated test market E) individual survey

In an effort to differentiate its offerings from its competitors, Pegasus Computers decided to add an extra USB port in all its laptops besides providing a free pair of Delphi power bass headphones with every Pegasus laptop. Although the additional features increased the price of the laptops by $500, Pegasus was confident that the strategy would help boost demand for its laptops substantially. This is an example of ________. A) good-value pricing B) markup pricing C) break-even pricing D) value-added pricing E) cost-based pricing

In response to price cuts from competitors, a cereal company with several more expensive and higher quality cereals introduced a lower-priced option to its product line. This is an example of which of the following responses to a competitor's price cut? A) raising the perceived value of a product B) improving product quality C) accepting a reduced market share D) launching a "fighter brand" E) using high-low 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 ________. A) seasonal discounts B) functional allowances C) cash discounts D) promotional allowances E) trade-in allowances

In the ________ stage of the new product development process, products undergo rigorous tests to make sure that they perform safely and effectively, or that consumers will find value in them. A) product design B) idea generation C) concept development and testing D) product development E) product activation

In the model of buyer behavior, which of the following is NOT a major type of force or event in the buyer's environment? A) economic B) technological C) social D) political E) cultural

La Belle released a cut glass bottle of perfume at $299 per item, even though its major competitor prices its signature scent at $99 per item. La Belle reasons that customers in search of luxury goods will prefer its product because they are likelier to believe that high price indicates superior quality. What price adjustment strategy is evident in its reasoning? A) seasonal pricing B) time-based pricing C) captive product pricing D) psychological pricing E) location-based pricing

Many companies have developed ________ programs that encourage employees to develop new product ideas. A) management B) incentive C) entrepreneurial D) intrapreneurial E) crowdsourcing

Maslow's theory is that ________ can be arranged in a hierarchy. A) marketing stimuli B) personal beliefs C) perceptions D) human needs E) decisions

Milt Alden uses which of the following strategies for pricing his products? A) basing company price on competitors' prices B) using everyday low pricing C) initiating an aggressive promotional campaign D) starting with customer-value considerations E) focusing on overall fixed costs of manufacturing

Overhead costs ________ as the number of units produced increases. A) decrease B) increase steadily C) fluctuate D) remain the same E) increase rapidly

People cannot focus on all of the stimuli that surround them each day. A person's tendency to screen out most of the information is called ________. A) subliminal retention B) selective distortion C) cognitive dissonance D) selective attention E) cognitive inertia

PoolPak produces climate-control systems for large swimming pools. The company's customers are more concerned about service support for maintaining their systems than the initial price of the product. PoolPak specializes in and differentiates itself through both cutting-edge technologies used to build its high-value climate control systems as well as seamless quality service. PoolPak's prices are very high, but demand for its climate-control systems seems to be forever on the rise. This exemplifies ________. A) target costing B) a pure monopoly C) cost-plus pricing D) a nonprice position E) break-even pricing

Samsung Mobile plans to launch a new phone with a unit cost of $270 and wants to earn a 10 percent markup on its sales. Samsung's markup price is ________. A) $275 B) $280 C) $295 D) $300 E) $335

Service companies can differentiate their offering by ________. A) having a lower price than their competitors B) designing a superior delivery process C) offering a stellar physical environment in which the product is delivered D) developing innovative features E) adopting a recognizable image

Shoe Trends, a company that manufactures formal shoes for men and women, offers to give its customers $10 for an old pair of shoes when they buy a new pair. In essence, they're reducing the price of the new shoes by $10. What is this type of price adjustment called? A) functional discount B) captive product pricing C) seasonal discount D) trade-in allowance E) by-product pricing

Solar Tanning Salon prices tanning sessions at $25 per visit. It also offers seasonal passes for $175 that allow the customer to visit the salon multiple times in a year. This is an example of a ________. A) sample B) promotional allowance C) product bundle D) discount E) product line

Stores can combat the current consumer practice of ________, in which consumers visit stores and then check online for price comparisons. A) discounting B) conferencing C) using Instagram to share purchases D) showrooming E) auctioning

When a firm varies its price by the season, it is using ________ pricing. A) product form B) customer-segment C) location-based D) time-based E) value-added

When consumers are highly involved with an expensive, infrequent, or risky purchase but see little difference among brands, they most likely will exhibit ________. A) habitual buying behavior B) complex buying behavior C) impulse buying behavior D) dissonance-reducing buying behavior E) consumer capitalism

When customers have low involvement in a purchase but perceive significant brand differences, they will most likely engage in ________. A) complex buying behavior B) dissonance-reducing buying behavior C) habitual buying behavior D) variety-seeking buying behavior E) consumer ethnocentrism

Which of the following best describes divisibility of an innovation that influences the rate of adoption? A) It is the degree to which the innovation is difficult to understand. B) It is the degree to which the results of using the innovation can be observed or described to others. C) It is the degree to which the innovation appears superior to existing products. D) It is the degree to which the innovation may be tried on a limited basis. E) It is the degree to which the innovation fits the values and experiences of potential

Which of the following is NOT a cue to consumers about whether a price is high or low? A) price-matching guarantees B) prices of surrounding, similar products C) signs such as "Clearance" D) "Coming Soon!" signs E) location in the store, especially at the entry

Which of the following product mix pricing strategies did Polaroid use when it set the general price range of its cameras low and the markup on its film high? A) product-segmented pricing B) by-product pricing C) customer-segmented pricing D) captive product pricing E) product bundling pricing

Which of the following promotion categories is most likely to use the promotion tools of press releases, sponsorships, events, and Web pages? A) sales promotion B) direct and digital marketing C) advertising D) public relations E) horizontal diversification

Which of the following questions is most important for product designers to consider while developing a product? A) Which specific features of the product do customers like most? B) How does the product appear to buyers? C) What are the product's technical specifications? D) How would customers use and benefit from the product? E) How can the product be packaged to stimulate instant purchase?

Which of the following refers to the course that a product's sales and profits take over its lifetime? A) total product process B) service life C) product mix D) product life cycle E) marketing mix

Which of the following stages of the PLC is characterized with high promotional expenditures that result from an effort to create consumer awareness? A) growth B) product development C) maturity D) introduction E) decline

Which of the following statements is true of the idea generation stage in the new product development process? A) The purpose of idea generation is to reduce the number of ideas to the least possible number. B) Truly innovative companies rely exclusively on a single source for new product ideas. C) Customers are the least important sources of new product ideas. D) Truly innovative companies develop extensive innovation networks that capture ideas and inspiration from every possible source. E) Truly innovative companies seldom rely on customers and the general public for ideas.

Which of the following would a marketer LEAST likely do to encourage habitual buying behavior? A) dominate shelf space B) run frequent reminder ads C) keep shelves fully stocked D) stress unique features in ads E) offer lower prices and coupons

Which of the following would most likely lead to a company initiating a price increase? A) weakened economy B) possession of outdated merchandise C) excess capacity D) over-demand E) possession of defective merchandise

After defining the problem that eCompeteUSA wants solved, you need to determine what type of research objective to pursue. What type of research objective would be most appropriate given eCompeteUSA's research problem?

descriptive researcher

________ products give both high immediate satisfaction and high long-run benefits, such as tasty and nutritious breakfast food.

desirable

A differentiated targeting strategy is a strategy that __________.

develops one or more products for each of several distinct customer groups and makes sure these offerings are kept separate in the marketplace

A(n) __________ strategy develops one or more products for each of several distinct customer groups and makes sure these offerings are kept separate in the marketplace.

differential targeting

A company that uses telephone marketing to sell its products to customers is most likely using the promotion tool of ________.

direct marketing

Dazed is a bar which mostly plays trance music and has a dedicated day every week for local bands to perform. To build strong customer relations, Dazed sends text messages to customers, telling them about happy hours, bands playing that week, dedicated genre nights, and other activities. Which of the following promotion mix tools does Dazed employ to reach target customers in this scenario?

direct marketing

exploratory

distintive coffee hypothesis help

Which of the following promotes the idea of a code of ethics that calls on marketers to adopt an ethical norm?

do no harm

Brand ________ refers to how consumers feel if a brand meets their needs. A) differentiation B) equity C) dilution D) esteem E) relevance

Buyer responses are influenced by marketing stimuli. The responses to the stimuli include all of the following EXCEPT ________. A) brand engagement B) buying attitudes C) purchasing behavior D) buying preferences E) the "why" regarding the responses

Companies using target costing ________. A) first design a new product and then determine its cost B) tailor their products to be in line with the marketing mix C) routinely neglect customer value considerations D) avoid determining an ideal selling price until analyzing test market results E) start with an ideal selling price and then target costs that will ensure that the price is met

For a market penetration-price strategy to succeed, which of the following is LEAST likely to be true? A) Production costs decrease as sales volume increases. B) A low price triggers market growth. C) Distribution costs decrease as sales volume increases. D) Low prices must inhibit competition from entering the market. E) The strategy can be changed quickly, to a higher-priced position, with no negative impact.

John assured his venture capitalists an earning of 25-percent return on equity when he began his IT startup. In order to achieve this result, he will most likely use which of the following pricing approaches? A) value-based pricing B) markup pricing C) EDLP D) customer-based pricing E) target return pricing

Marketers realize that their commercial sources ________ the buyer. A) legitimize products B) attract C) evaluate products D) personalize products to E) inform

Questions a company should consider if a competitor initiates a price change include all of the following EXCEPT ________. A) "Are other competitors going to respond?" B) "What will happen to the company's market share if it does not respond?" C) "Is the price change temporary or permanent?" D) "Why did the competitor change the price?" E) "How can we improve our product?"

Reasons for a price increase include all of the following EXCEPT ________. A) a desire to improve profits B) cost inflation C) when the alternative is rationing of the product D) decreasing gross margins E) increasing supply of product

Reasons sellers go beyond what is required by pricing regulations include all of the following EXCEPT that ________. A) it is good business to treat customers fairly B) customers that fully understand prices and pricing terms are happy customers C) word-of-mouth from dissatisfied customers spreads rapidly D) building strong and lasting relationships is key to business success E) it improves profitability to earn additional revenue due to customer confusion

Sara is about to purchase a new television. She is using several attributes to evaluate her choices. Which of the following is least likely to be a criterion Sara is using? A) price B) size of screen C) color of body D) network connectivity E) availability

Savings for You, a discount retail chain, is highly competitive. When entering a new market, Savings for You often cuts prices so deeply that it sells below costs, effectively pushing smaller companies with less purchasing power out of the market. Savings for You is most likely guilty of ________. A) market skimming B) price fixing C) deceptive pricing D) price collusion E) predatory pricing

Which of the following describes expensive goods that an organization uses in its daily operations and that last for a long time?

equipment

In which of the following steps of the selling process does a salesperson make sure that there is proper installation and support after a buyer receives the initial order?

follow-up

The objective of ________ advertising is to build primary demand.

informative

A continuous innovation is a __________.

modification to an existing product that sets the brand apart from its competitors

Which of the following is the third step in the target marketing process?

positioning

You are now tasked with developing a research plan that would best support the research objectives you have just chosen. You consider your options and narrow them down to the following three.

research the attitude sthat US women and their consumers over 35 have toward the Espots industry

Which term refers to the fixed amount in a salesperson's compensation?

salary

A company that offers an early bird discount to the first fifty purchasers of a new product is using the promotional tool of ________.

sales promotion

In a marketing communications mix, ________ refers to any short-term incentives to encourage the purchase of a product or service.

sales promotion

Mercury Electric, a leading manufacturer of kitchen appliances, releases a new line of blenders called SpinPro. To boost sales, Mercury Electric gives scratch-and-win coupons to all buyers and provides a three-day trip to Hawaii for the winner. Which element of the promotion mix has Mercury Electric used in this scenario?

sales promotion

Weekly or monthly work plans used by management to get information about salespeople are referred to as ________.

sales reports

Which of the following describes a company that makes employees feel better about their work by giving them a clear direction?

sense- of-mission

Which of the following is an example of narrowcasting using advertisements?

showing ads for diapers to would-be mothers in hospitals

The presentation stage of the selling process most likely involves ________.

showing how a company's products can solve a customer's problems

The ________ concept considers the future welfare of consumers.

societal marketing

Which of the following considers the future needs of a company?

strategic planning concept

If a segment is large enough or profitable enough to serve, it is ________.

substantial

Which of the following refers to the process of dividing the total market into different segments on the basis of customer characteristics, selecting one or more segments, and developing products to meet the needs of those specific segments?

target marketing strategy

brand name

the part of the brand that can be spoken, written. includes letters and numbers

primary package

the wrapper or container immediately surrounding the product

Positioning is the __________ and final step in the target marketing process.

third

informational labeling

this type of labeling lists important information.

questionnaire When writing the questionnaire you decide to include a question that will allow you to classify consumers by consumption level. Which of the following questions should you include in the survey in order to accurately discover this information?

would you classify yourself as heavy, moderate, light or non-consumer eSports memorabiliya and tickets

Having decided what secondary sources you will use, you now need to decide whether you elect to use any primary sources for obtaining data. This will involve setting up targeted research to answer the questions that you need answered. Note that this research will be carried out in-house by the market research department, but will be quite expensive.

Marketing 311 Chapter 5, Mktg Ch 9, MKTG Chapter 8, MKTG Ch 11, MKTG Ch10, Mktg Ch 17, Mktg Ch14, Marketing 311 Chapter 7, Chapter 6: Customer Value- Driven Marketing Strategy, Chapter 16: Sustainable Marketing, Marketing 12 and 13, Product Mix, Prin...

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