Marketing 340 Final-Malliet

Which of the following transforms marketing strategies into real values for consumers?

4 P's of marketing

Which of the following is true of business markets?

Business demand is derived demand as it ultimately derives from the demand for consumer goods.

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.

Which of the following concepts holds that consumers will favor products that are available and highly affordable?

The production concept

Which of the following is true of free trade zones?

They are groups of nations organized to work toward common goals.

Which of the following is an advantage of primary data?

They are more relevant than secondary data

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

They are the wealthiest generation in U.S. history.

Which of the following is true of perceptual positioning maps?

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

Which of the following is a difference between storage warehouses and distribution centers?

Storage warehouses store goods for moderate to long periods, while distribution centers are used to move goods rather than just store them.

Which of the following is true of downstream channels in a company's supply chain?

They form an intermediary link between the company and its customers.

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 most likely a characteristic of firms that adopt a reactive approach toward the marketing environment?

They take advantage of the opportunities provided by the environment.

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

Cost-based

The overall process of dealing with all aspects of acquiring, keeping, and growing customers is referred to as ________.

Customer relationship marketing

Which of the following statements is most likely true about the new product development process?

Customers, competitors, and suppliers are major sources of new product ideas.

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

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

Which of the following conditions is most likely essential for implementing a successful market-penetration pricing strategy for a product?

The market for the product is highly price sensitive.

Which of the following is true of a direct marketing channel?

It does not use any intermediaries.

Which of the following is true of a conventional distribution channel?

It has each channel member acting as a separate business unit trying to maximize its own profits.

Which of the following is true of a vertical marketing system?

It has one channel member owning all the other channel members or has contracts with all other channel members.

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 statements is true in the context of the BCG growth-share matrix?

Stars often need heavy investment to finance their rapid growth in a market.

Which of the following is an example of inbound telemarketing?

Sterrns Media advertises its services by sending letters to potential customers and prompting them to contact the firm through a toll-free number.

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

Sales growth tends to be slow.

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

Sales quotas

________ means that consumers are likely to remember good points made about a brand they favor and forget the good points made about competing brands.

Selective retention

________ refers to using point-of-purchase promotions and advertising to extend brand equity to "the last mile" and encourage favorable point-of-purchase decisions.

Shopper marketing

Which of the following statements is true of shopping centers?

Shopping centers are groups of retail businesses built on a site that is planned, developed, owned, and managed as a unit.

Which of the following is most likely an advantage of social media marketing?

Social media are targeted and personal.

Which of the following statements about buying centers is true?

Some buying centers involve informal participants.

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

Rhonda recently entered into a contractual agreement with StellarCutz, a national chain of affordable, walk-in hair salons. Under the agreement, Rhonda uses the StellarCutz trade name and receives support from StellarCutz in terms of business methods and processes. Rhonda paid a start-up fee to StellarCutz and will pay annual licensing fees for the use of the StellarCutz brand. Which of the following best describes Rhonda's business?

franchise

Flax is a chain of stores that carries several product lines including clothing, home furnishings, and household appliances. Each line is operated as a separate department, and employees are available to assist and advise customers in every phase of the shopping process. Flax is most likely a ________

full-service retailer

Which of the following has resulted from the increased educational levels of the U.S. population?

greater job growth for professional workers

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

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

In supply chain management, moving products and materials from suppliers to the factory is known as ________ logistics.

inbound

Japan is a major exporter of manufactured goods, services, and investment funds. Japan also exports its goods to other types of economies for raw materials and semifinished goods. The country's industrial structure is referred to as a(n) ________ economy.

industrial

When demand hardly changes with a small change in the price of a product, then the demand for the product is best described as ________.

inelastic

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

information search

The objective of ________ advertising is to build primary demand.

informative

Sweet & Cream, a popular frozen yogurt chain, attracts new customers by adding new flavors to its famous frozen yogurt product line. In this case, the company has developed its brand with ________.

line extensions

Demographic, economic, natural, technological, political, and cultural forces form the ________ of an organization.

macroenvironment

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

obsolete technologies used by the company

Firms that manufacture seasonal products target their consumers primarily through ________ segmentation.

occasion

Barry's is a chain of retail stores that stocks a large variety of goods and practices high- low pricing. This means that Barry's is likely to ________.

offer numerous sales or discounts

Glenda is searching airline schedules on HolApp, a mobile Web application. While browsing the application, a banner appears on the mobile screen showcasing offers and discounts on air tickets. The banner is best referred to as a(n) ________.

online display advertisement

A(n) ________ sales-force structure combines several types of sales force organizations.

overlay - complex

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

political

Carleese, a leading fashion brand, sets up small temporary boutiques across numerous locations during its year-end sale, promoting its outdated products at half the price. These temporary boutiques are referred to as ________.

pop-up stores

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

Pricing a product based on consumers' reference prices is referred to as ________ pricing.

psychological

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

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

Which of the following criteria does the Boston Consulting Group approach use to provide a measure of a company's strength in the market?

relative market share

JJ Distributors Ltd. buys electronic products from manufacturers for wholesale and sells them to various retail outlets. To which of the following markets does JJ Distributors Ltd. directly cater?

reseller markets

In a just-in-time logistics system, ________.

retailers carry small inventories of merchandise to last for only a few days

Which term refers to the fixed amount in a salesperson's compensation?

salary

When a market segment is large or profitable enough to serve, it is termed ________.

substantial

The first part of a marketing strategy statement describes the ________ of a new product.

target market

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

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

the collection of businesses and products that make up the company

Which of the following sources constitutes the internal database of a company?

the company's sales records

Which of the following demonstrates the real value of a company's marketing research and information system?

the quality of customer insights it provides

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

the suppliers who work with the company

In a SWOT analysis, ________ refer to unfavorable external factors or trends that may present challenges to performance.

threats

Which of the following channel functions of wholesalers is demonstrated when a buyer receives quicker delivery because wholesalers are located closer than are producers?

transportation

According to the five-step model of the marketing process, the first step in marketing is ________.

understanding the marketplace and customer needs and wants

Reverse logistics refers to moving ________.

unwanted, excess products from resellers to producers

A product is in the maturity stage of the product life cycle, and the company decides to modify the marketing mix. Which of the following steps is the company most likely to take?

use aggressive sales promotions

A ________ is made up of a company, its suppliers, distributors, and, ultimately, customers who "partner" with each other to improve the performance of the entire system.

value delivery network

Introducing a new product into the market is called ________.

commercialization

________ is used to study the course of a product's sales and profits for the duration that it is produced and sold in the market.

A product life cycle

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.

________ represent buyers or sellers on a more permanent basis than brokers.

Agents

________ involves using an existing brand name for a new product category.

Brand extension

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

CRM systems

Pediacertain Pet Supplies, a pet-food company, divides the pet market according to the pet owners' gender, occupation, income, and family life cycle. In this case, which of the following variables has the company used for market segmentation?

Demographic

Brand ________ is the differential effect that knowing the brand name has on customer response to the product and its marketing

Equity

________ is the act of obtaining a desired object from someone by offering something in return.

Exchange

________ distribution gives a limited number of dealers the sole rights to distribute a company's products in their territories.

Exclusive

________ advertising is used heavily when introducing a new product category.

Informative

Erica Jenson has a limited budget to conduct a market research. Which of the following research approaches would provide Erica with the most cost-effective way to reach a large number of respondents in a short period?

Internet-based surveys

Which of the following is most likely a benefit of contract manufacturing?

Investing companies that are new entrants in international markets get a chance to start faster.

Which of the following is true of an intensive distribution strategy?

It strives to make products available where and when consumers want them.

Jacob Kendler works in a wholesale business which specializes in industrial goods needed in automobile industries. Jacob's job involves locating and contacting potential buyers and sellers and facilitating the negotiation process. Which of the following, if true, would strengthen the argument that Jacob works as an agent and not as a merchant wholesaler?

Jacob represents his company but is not liable for any damaged or low-quality goods.

________ is a method of entering a foreign market by associating with foreign companies to produce or market products or services.

Joint venturing

________ are tradition-bound, suspicious of changes, and adopt an innovation only when it has become something of a tradition itself.

Lagging adopters

Which of the following statements regarding marketing intelligence is true?.

Marketing intelligence is the systematic collection and analysis of publicly available information.

________ are the largest group of wholesalers and can be divided into two broad types of wholesalers: full-service and limited-service.

Merchant wholesalers

________ involves combining two or more systems of transportation to move products.

Multimodal transportation

Campbell is one of the oldest retailers in the country. While the service offered at Campbell is fairly mediocre, the retailer is famous for its surprise offerings of seconds, overstocks, and closeouts-occasionally including expensive gadgets and jewelry. Posco, a new chain of retail stores, offers products that are similar to Campbell's offerings; however, Posco is known for encouraging customers to ask questions and for providing service representatives to assist customers in the purchasing decision process. From this scenario, which of the following statements is most likely true?

Posco better utilizes the services mix to differentiate itself from Campbell.

Largest and most dramatic shopping center? 15-50 retail stores 5-15 retail stores

Regional shopping center/mall Community shopping center Neighborhood shopping center

________ marketing is defined as 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.

Sustainable

________ is defined as a business strategy where business buyers prefer to buy a complete solution to a problem from a single seller rather than buying separate products and services from several suppliers.

Systems selling

Which of the following is a drawback of using blogs as a marketing medium?

The content of a blog is difficult to control.

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

Orion Steel is the chief provider of metals to Accline Cars, which manufactures two models of vehicles-cars and large buses. Accline dealers sell the firm's cars to individual citizens, but buses are sold directly to government entities. In such a distribution channel, which of the following would be considered a vertical conflict?

a conflict between Accline Cars and its dealers

Jupiter Steel is the chief provider of metals to Greystone Motors. Greystone Motors has two models of cars-one for commercial and ordinary consumers and another for professional car racing teams. Greystone Motors has designated dealers to sell its commercial cars to consumers, while racing cars are sold directly to the racing teams. In such a distribution channel, which of the following would be considered a horizontal conflict?

a conflict between two Greystone Motors car dealerships

Which of the following is an example of a nontariff trade barrier?

a host-country regulation

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

Market segments that can be effectively reached and served are said to be ________.

accessible

Sonic Shack, an audio equipment retailer, signs an agreement with PineWire, a renowned electronics company, to sell PineWire products. The deal requires Sonic Shack to provide PineWire products with superior displays, shelf space, and promotion compared to competing products. Sonic agrees to these terms as PineWire products command a huge share in the market. Which of the following types of channel arrangements do PineWire and Sonic Shack most likely have?

administered vertical marketing system

Which of the following best describes product positioning?

arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers

Business portfolio analysis is defined as the process in which management ________.

assesses the attractiveness of an SBU's market and the strength of its position in the market

Which of the following is a direct digital marketing tool?

blog

A ________ brings buyers and sellers together and assists in negotiations.

broker

Which term refers to a tool used by managers to supervise their salespeople?

call plan

Setting a price for products that must be used along with a main product is known as ________ pricing.

captive-product

A convenience store ________.

carries a limited line of high-turnover goods for consumer self-service

Which of the following is a traditional direct marketing tool?

catalog

According to the text, ________ are the most important actors in a company's microenvironment.

customers

Subsistence economies are best defined as economies that ________.

consume most of their own agricultural output and offer few market opportunities

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

consumer perceptions of value

Marketers are said to suffer from marketing myopia when they ignore underlying consumer needs and focus excessively on ________.

consumers' existing wants

Every time a search is made using keywords related to construction, search engines display text-based advertisements and links to Regan Builders, a construction firm. The marketing tool used by Regan Builders is best referred to as a ________.

contextual advertisement

Jeff Barkins is a conscientious marketing manager. Sometimes, Jeff and his staff are unclear what decisions to make when faced with moral dilemmas. Jeff and other managers could create broad guidelines that everyone in the organization must follow in the form of a ________.

corporate marketing ethics policy

A company designs what it considers to be a good product, calculates the expenses of making the product, and sets a price that adds a standard markup to the cost of the product. This approach to pricing is called ________ pricing

cost-plus

The marketing manager of Appeal Inc. has noticed a sharp decrease in sales over the last two months. The manager decides to conduct marketing research to identify potential causes for the drop in sales. Which of the following should the manager do first?

define the problem and objectives

Zista, a boutique that caters to the clothing needs of women, manufactures two different lines of fashion wear 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. Zista most likely segments the consumer market based on ________ variables

demographic

Botsford, a U.S. firm, builds automotive transmissions in its manufacturing facility in Taiwan to capitalize on the availability of cheap labor. Botsford's involvement in foreign markets is most likely through ________.

direct investment

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

The process in which printed catalogs, brochures, samples, and DVDs are distributed to customers using highly selective mailing lists is known as ________.

direct-mail marketing

_______ is the degree to which an innovation may be tried on a limited basis.

divisibility

When compared to merchant wholesalers, brokers and agents ________.

do not take title to goods

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

early adopter

Which of the following groups is included in both a company's value chain and its value delivery network?

employees

The simplest way to enter a foreign market is through ________.

exporting

Which of the following is an example of an industrial product grouped under capital items?

factory

Dina loves branded apparel and accessories but cannot afford to buy them too often. Fortunately, Dina lives close to an off-price retail store that is owned and operated by a famous brand. The company utilizes this store to sell its surplus, discontinued, or irregular goods at significantly lower costs. The retail store is best referred to as a ________.

factory outlet

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

family

Expanding a product line by adding more items within the present range of the line is known as product line ________.

filling

Parvon, a cleaning product, is in the maturity stage of the product life cycle, and Parvon managers have decided to modify the market. Which of the following steps should Parvon managers most likely take to achieve this goal?

find new market segments for the brand

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

With a market development strategy, a company aims to improve sales by ________.

introducing its product in a new market without making any changes to the product

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

introduction

Which of the following will most likely be included in the "place" component of a company's marketing mix?

inventory

According to the text, today's large and progressive wholesalers have successfully reacted to rising costs by ________.

investing in information technology systems

Opinion leaders are also known as ________.

leading adopters

Montano Boutiques promotes its brand in new international markets by providing rights to local boutiques to use its patented designs and brand name. In this case, Montano Boutiques' market-entering strategy is referred to as ________.

licensing

Which of the following is a personal factor that influences a consumer's buying behavior?

life-cycle stage

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

In which of the following structures does a company organize its sales force along client or industry lines?

market sales-force structure

Which of the following is the right order of the steps that companies generally follow in designing a customer-driven marketing strategy?

market segmentation, market targeting, differentiation, and positioning

Qriosity Inc. released a new antivirus program at half-price to attract buyers. This is most likely an example of ________.

market-penetration pricing

The strategy of setting a low initial price to attract a large number of buyers quickly and win a large market share is referred to as ________.

market-penetration pricing

A firm uses ________ when it charges a high, premium price for a new product with the intention of reducing the price in the future.

market-skimming pricing

The ________ 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

When the size, purchasing power, and profiles of a market segment can be determined, the market segment is said to be ________.

measurable

Hamilton Wholesaling, an electronics wholesaling firm, provides many services to customers including buying, storing, and transporting expensive and delicate electronics equipment. Hamilton takes title of ownership to all goods that the firm handles. Hamilton is most likely a(n) ________.

merchant wholesaler

Under ________, the market consists of many buyers and sellers trading over a range of prices rather than a single market price.

monopolistic competition

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

more-for-more

Faber Motors manufactures three lines of cars: high-end security cars for government agencies, commercial cars for consumers and individuals, and professional racing cars. The high-end security cars are sold directly to government buyers by the company. The consumer cars are sold through dedicated dealers who only sell Faber's lines at their outlets. For its professional racing cars, Faber collaborates with Radium Tires, an innovative and renowned tire manufacturer. Faber provides the engine and body, while Radium provides the tires and its expertise on the racing industry. Which term best describes Faber's channel arrangements

multichannel distribution system

Xenon, a leading consumer-electronics manufacturing company, markets its products under the company's own brand name. In this case, Xenon has sponsored its products by promoting them as ________ brands.

national

Product mix width refers to the ________.

number of different product lines the company carries

GenX, a manufacturer of sport motorcycles, is seeking a new supplier of motorcycle headlamps and brake lights. After searching trade directories, GenX invites five different suppliers to make formal presentations about how their solutions can create greater value for GenX than competing solutions. GenX is currently in the ________ stage of the business buying process.

proposal solicitation

Simone bought two bottles of wine from two vineyards in Bordeaux. When asked for an opinion on the quality of the wines, she later mentioned that the Pontet Canet tasted like alcoholic grape juice, but the Chateau Margaux had a crisp taste that she really enjoyed. Which of the following stages of the buyer decision process do Simone's remarks reflect?

postpurchase behavior

Store brands are also known as ________ brands.

private

To which of the following elements of the marketing mix do design, packaging, services, and features belong?

product

Which component of the marketing mix refers to the goods-and-services combination a company offers to its target market?

product

Kola, a leading soft drink manufacturer, has recently forayed into the Middle East markets. Based on its research that consumers in the Middle East prefer sweeter drinks, it is manufacturing soft drinks with extra sugar to meet the local requirements. In this scenario, Kola is using a(n) ________ strategy to market its product.

product adaptation

Combining several products and offering the collection at a reduced price is referred to as ________ pricing.

product bundle

What type of pricing is being used when a company temporarily prices its products below the list price to create buying excitement and urgency?

promotional pricing

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

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

Glow, a gift card store, offers a price reduction to customers who buy Christmas cards the week after Christmas. In this case, the store offers a ________.

seasonal discount

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

segmentation

Service inseparability means that ________.

services become a part of their providers, whether the providers are people or machines

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

setting advertising objectives

Checking out products in traditional stores and purchasing them online is referred to as ________.

showrooming

GameStop, a video game retailer, offers a deep assortment of video games and video game consoles. GameStop is best described as a(n) ________.

specialty store

Lengthening a product line beyond its current range is referred to as product line ________.

stretching

Clenzo is a company that provides house cleaning services in major urban and suburban areas. Marketers at Clenzo developed a short, humorous video promoting the company's services and hope that customers who see the video will be so entertained that they will pass the video on to their friends and colleagues. The marketers at Clenzo are using techniques to facilitate ________.

viral marketing

Which wholesaler channel function helps reduce the inventory holding costs and risks of suppliers and customers?

warehousing

Specialty products are consumer products and services that customers generally buy ________.

without making comparisons