Marketing Exam 2

Which of the following best defines nonprofit marketing? A) Activities conducted by individuals and organizations to achieve some goal other than ordinary business goals such as profit or return on investment B) Marketing activities conducted by organizations other than business organizations C) Nonbusiness activities aimed at goals such as profit or return on investment D) Marketing activities aimed at getting the product to the retailers, through intermediaries

A) Activities conducted by individuals and organizations to achieve some goal other than ordinary business goals such as profit or return on investment

According to the text, a product is defined as A) anything the customer receives in an exchange B) the physical object the customer receives in an exchange C) the service that is rendered to a customer D) the idea that the customer receives in an exchange

A) anything the customer receives in an exchange

Patrick is a member of a consumer marketing panel and has been introduced to a company's new idea for energy drinks. Some of the questions he has been asked are "How often would you buy this product?" and "Which features are of little or no interest to you?" Patrick is most likely participating in the ___ phase of the new-product development process. A) concept testing. B) business analysis C) idea screening. D) idea generation E) test marketing

A) concept testing.

Changes that affect a product's versatility, effectiveness, convenience, or safety are called ____ modifications. A) functional B) formal C) aesthetic D) quality

A) functional

For most consumers, there is an assumed relationship between A) price and quality B) value and cost C) internal and external reference prices D) value and price consciousness E) prestige prices and value

A) price and quality

Advertising, personal selling, sales promotion, and public relations are called A) promotion mix ingredients B) marketing mix components C) characteristics of a product D) advertising tools E) nonpersonal communication

A) promotion mix ingredients

Convenience products are A) relatively inexpensive, frequently purchased items for which buyers exert only minimal purchasing effort B) frequently purchased items for which buyers are willing to exert considerable effort C) frequently purchased items that are found in certain retail outlets D) items that are expensive but are easy to purchase E) items that require some purchase planning and for which the buyer often will not accept substitutes.

A) relatively inexpensive, frequently purchased items for which buyers exert only minimal purchasing effort

At the breakeven point, A) the money a company brings in from selling products equals the amount spent producing the products B) the total fixed costs are exactly equal to the total variable costs C) profits are exactly equal to the difference between revenue and total variable costs D) the marginal revenue of a product is exactly equal to the marginal cost of producing one more unit E) the marginal cost curve and the average cost curve will be identical for a particular product.

A) the money a company brings in from selling products equals the amount spent producing the

An US Airways flight from Dallas to Houston was full, and the tickets were more expensive than the almost-empty US Airways flight from Chicago to Phoenix. This is an example of what kind of service pricing? A) Bundled B) Demand-based C) Supply-based D) Upfront E) Customer-based

B) Demand-based

Price is considered to be the variable in the marketing mix that is A) Least flexible B) Most flexible C) Most difficult D) First to be decided E) Last to be decided

B) Most flexible

Which of the following countries was the world's first service economy? A) England B) United States C) Sweden D) Canada E) Germany

B) United States

Which of the following are personal informal exchanges of communication that customers share with one another about products, brands, and companies? A) Guerilla communication B) Word-of-mouth communication C) Buzz marketing D) Viral marketing E) Conversational promotion

B) Word-of-mouth communication

An individual moves into the adoption stage of the product adoption process at the point when he or she A) is self-motivated to get information about the product B) begins using that specific product C) seriously considers whether the product will satisfy his or her needs D) experiences the product for the first time E) becomes aware that the product exists

B) begins using that specific product

All of the following are major steps in developing new products except A) test marketing. B) evaluation of competitors' efforts. C) screening. D) business analysis. E) idea generation.

B) evaluation of competitors' efforts.

Mars Petcare is one of the world's largest pet food manufacturers. If the strategic goal for Mars Petcare in the coming year was to ___________ in North America, it should use temporary price reductions. A) increase the number of competitors B) gain market share C) decrease volume sold D) increase revenue per item E) decrease the number of competitors.

B) gain market share

The coordination of promotion and other marketing efforts for maximum informational and persuasive impact defines A) communication B) integrated marketing communications C) tactile communication D) kinesic communication E) proxemic communication

B) integrated marketing communications

For most products, a(n) ____ relationship exists between the price of a particular product and the quantity demanded. A) inelastic B) inverse C) positive D) unknown E) elastic

B) inverse

Isabella is a product manager for The Container Store, a retailer of plastic bins and other storage containers. Sales have been declining in the past nine months and her management team is pressuring her to compete based on price discounts. However, Isabella is aware of the dangers associated with engaging in price competition. She knows that competitors can also change prices quickly and aggressively, which can result in a(n) ____ that will be harmful to both companies. A) reduction in cost B) price war C) competitive game D) industry collapse E) advertising battle

B) price war

Anna works for a promotional consultant who develops sweepstakes, games, coupons, and rebate plans for various marketers. Anna is developing which of the following? A) advertising techniques B) sales promotion techniques C) publicity examples D) personal selling techniques E) direct marketing techniques.

B) sales promotion techniques

If Best Western bundles its rooms with services such as free local phone calls, cable television, wireless Internet access, and complimentary breakfast, these services are known as ____ services. A) core B) supplementary C) bundled D) business E) complimentary

B) supplementary

In product modification, the first issue to consider is whether A) existing customers can perceive that a product modification has been made. B) the product is modifiable. C) quality is modified. D) modification will make the product more consistent with customers' desires. E) modification will provide greater satisfaction to the consumer.

B) the product is modifiable.

Steve is aware of the growth in digital media advertising, particularly to certain target markets. The use of advertising on digital devices can alienate young consumers. Steve has uncovered recent research stating that young consumers are more likely to be receptive to advertising appearing on their digital devices if the source is _____; _____ has been given, and the messages are ______. A) known; a coupon; exciting B) trusted; permission; relevant or entertaining C) liked; permission; has a monetary benefit D) trusted; a discount; exciting E) known; a discount; humorous

B) trusted; permission; relevant or entertaining

The Palasi Candy Company is a small business located in the northeastern United States. The owner of Palasi Candy is calculating the projected costs for the coming year. There is rent for the building, salaries for the retail employees, raw materials of sugar, chocolate, and other ingredients, wrappers for packaging of individual pieces of candy, boxes, and radio advertising. Palasi's ______ are most likely to be the raw materials of sugar, chocolate, and other ingredients, as well as the wrappers. A) sunk costs B) variable costs C) direct costs D) fixed costs E) marginal costs

B) variable costs

What equation shows organizations the relationship between price and profit? A) Total Variable Costs + Total Fixed Costs = Sales - Profit B) Price = Profit per Item × Number of Units Sold C) (Price × Quantity Sold) − Total Costs = Profits D) (Price − Profits) × Total Costs = Sales E) Total Costs = (Price × Quantity Sold) - Profits

C) (Price × Quantity Sold) − Total Costs = Profits

The owner of Big Bike Motorcycles is opening a new retail location. Which of the following is most likely to be a fixed cost for Big Bike Motorcycles? A) Retail personnel salaries B) Advertising on Facebook C) Building Rent D) Electricity E) Transportation of sold bikes

C) Building Rent

Which of the following lists forms of competitive advertising? A) Pioneer, comparative, reminder B) Reminder, repetitive, reinforcement C) Comparative, reminder, reinforcement D) Institutional, product, comparative E) Product, pioneer, reminder

C) Comparative, reminder, reinforcement

Julianne is planning her upcoming wedding later this year. She has made a list of all the expenses which will be required for the wedding she has planned. Which of the following is not one of the service products associated with Julianne's wedding? A) Delivery of the wedding cake B) Hiring a limo and driver C) Flowers for the church D) Renting the reception hall E) Having a String quartet provide music

C) Flowers for the church

Why are line extensions more common than new products? A) They are higher risk and more expensive. B) They are guaranteed to succeed in the marketplace. C) They are less expensive and lower-risk. D) They require no market research. E) Modifications to existing products are very easy.

C) They are less expensive and lower-risk

Ralph Lauren is planning a promotion where it will showcase all of its clothing lines to buyers at retail stores. It also plans to develop a direct marketing campaign that will use social media to introduce its new seasonal styles. Ralph Lauren is using ___ with the retail showcase and ___ with the social media campaign. A) a pull policy; a push policy B) personal selling; a pull policy C) a push policy; a pull policy D) guerilla marketing; a push policy E) publicity; a push policy.

C) a push policy; a pull policy

Before launching a new advertising campaign, marketers for Healthy Choice frozen dinners must determine the selling points that they want to include in the advertisements. The identification and organization of these selling points is called the A) advertising appropriation B) objective-and-task approach C) advertising platform D) advertising objective E) advertising budget.

C) advertising platform

When a company promotes its position on a public issue, this is specifically referred to as ____ advertising. A) institutional B) product C) advocacy D) issue E) competitive

C) advocacy

"Is the demand strong enough?" is a question that marketers ask during the ____ phase of new-product development. A) screening B) concept testing C) business analysis D) product development E) test marketing

C) business analysis

The maker of Huggies diapers is developing a media plan that involves trying to expose its target audience to its new advertisement about ten times. This is advertising A) reach B) repetition C) frequency D) targeting E) exposure.

C) frequency

Depending on the length of time it takes them to adopt a new product, people can be divided into five major adopter categories: early adopters, early majority, late majority, laggards, and A) late adopters B) nonadopters C) innovators D) middle adopters E) middle majority

C) innovators

Sara Lee Corporation manufactures desserts, breads, pantyhose, meats, and a variety of other products. These products make up Sara Lee's product A) line B) item C) mix D) width

C) mix

Rick is a new product manager for a large bio-chemical firm. He is currently working on a proposal for a new chemical solvent and knows that introducing the new product can be risky because it might fail. He also knows that ___ is risky as well. A) performing marketing research. B) keeping tabs on the actions of competitors. C) not introducing new products. D) generating new product ideas. E) addressing customers' concerns about products.

C) not introducing new products.

The percentage of consumers in the target audience actually exposed to a particular advertisement in a stated period of time is the definition of A) frequency B) exposure C) reach D) targeting E) push.

C) reach

The cost of ____ is usually substantially lower than the cost of ____. A) stimulating primary demand; stimulating selective demand B) identifying prospects; encouraging product trial C) retaining existing customers; acquiring new customers D) comparative advertising; pioneer promotion E) personal selling; public relations

C) retaining existing customers; acquiring new customers

Often, a new product is launched in stages during commercialization. This gradual introduction of the product is known as A) market development. B) regional commercialization. C) roll-out. D) market extension. E) competitive jamming.

C) roll-out.

Services are usually provided through ____ directed at people or objects. A) tangible and intangible products B) physical labor C) the application of human or mechanical efforts D) ideas and other intangible efforts E) knowledge and technology

C) the application of human or mechanical efforts

Which of the following is not a stage in the buyer's product adoption process? A) Awareness B) Adoption C) Trial D) Exploration E) Interests

D) Exploration

____ is a broad set of communication activities used to create and maintain favorable relations between the organization and its stakeholders. A) Advertising B) Selling C) A press strategy D) Public relations E) Publicity

D) Public relations

Suppose State Farm Insurance stated, "We want our advertising to increase our customer base for home and automobile insurance 10 percent by the end of the fiscal year." This would be considered a(n) A) target audience goal B) advertising platform C) percent-of-sales approach D) advertising objective E) media plan goal.

D) advertising objective

To differentiate their products, companies sometimes emphasize the product support services that they offer. This is especially true when A) the company's prices are higher than the competition's. B) the company introduces a new product. C) consumers are willing to pay for product support services. D) consumers perceive all products in a market to have essentially the same quality, design, and features. E) the quality of the company's products is inferior to the quality of competing products.

D) consumers perceive all products in a market to have essentially the same quality, design, and features.

Services have six basic characteristics: intangibility, inseparability of production and consumption, perishability, client-based relationships, customer contact, and A) labor-intensiveness B) orientation toward value C) homogeneity D) heterogeneity E) specialization.

D) heterogeneity

The four major stages of a product life-cycle include A) prosperity, recession, depression, and recovery B) specialty, convenience, shopping, and unsought goods C) decline, stabilization, exposure, and growth D) introduction, growth, maturity, and decline

D) introduction, growth, maturity, and decline

The width of a product mix is measured by the number of product A) dimensions in the product line B) features in each brand C) items in the product line D) lines a company offers

D) lines a company offers

When encoding the message, the source should use signs that have A) new and exciting meanings B) different meanings to different people C) contemporary jargon D) meanings that the target market will understand E) broad interpretations

D) meanings that the target market will understand

The fact the services cannot be inventoried and then sold at a later date is called A) intangibility B) heterogeneity C) inseparability D) perishability E) nonstorability.

D) perishability

In an attempt to attract customers, service marketers often promise great results and satisfaction to customers, but marketers should be careful not to A) deliver on these promises and risk financial losses and the success of the company B) promise less than they can actually deliver and keep customers away C) make the appearance of their facilities consistent with their promises to customers D) promise too much and cause customer expectations beyond what they can deliver E) make the quality of their services too tangible in the eyes of the customer.

D) promise too much and cause customer expectations beyond what they can deliver

The three general types of media schedules are A) pulsing, beating, and continuous B) short, medium, and long-term C) morning, afternoon, and evening D) pulsing, continuous, and flighting E) light, heavy, and alternating

D) pulsing, continuous, and flighting

The product deletion process is similar to the ____ step of the new-product development process because both involve deciding whether the product should be in the product mix based on an assessment of sales, costs, and profits. A) idea generation B) screening C) product development D) test marketing E) business analysis

E) business analysis

When Yoplait Yogurt gives a portion of its profits to Breast Cancer Research, it is using A) promotion B) integrated marketing communications C) charity marketing D) charitable promotion E) cause-related marketing

E) cause-related marketing

If Target were to base its advertising appropriation on the amount that Walmart spends, it would be using the ____ approach. A) objective-and-task B) percent-of-sales C) industry-standard D) arbitrary E) competition-matching

E) competition-matching

Weyerhaeuser is evaluating its complete product mix. It wishes to decrease some of its marketing expenditures and streamline its product offerings. Weyerhaeuser will most likely look at products in the ____ stage of the product life cycle as possibilities for elimination. A) not yet developed B) growth C) introduction D) maturity E) decline

E) decline

The marketing channels for services are usually A) complex and multifaceted B) characterized by two to three intermediaries C) dependent on the geographical location of the consumer D) determined by the customer E) direct from provider to customer.

E) direct from provider to customer.

Anything that reduces the accuracy and clarity of communication is called A) distraction B) feedback C) interference D) discordance E) noise

E) noise

Communication through the use of brochures, annual reports, event sponsorships, and news stores is referred to as A) advertising B) personal selling C) sales promotion D) publicity E) public relations

E) public relations

Minerals, chemicals, timber, and agricultural products are considered A) process materials B) accessory materials C) MRO supplies D) component parts E) raw materials

E) raw materials

Price is A) money paid in a transaction B) not important to buyers C) of limited interest to sellers D) the most inflexible marketing mix decision variable E) the value that is exchanged for products in a marketing transaction.

E) the value that is exchanged for products in a marketing transaction.

First Step in advertising campaign

Identify target market

In recent years the proportion of promotional dollars spent on sales promotion has a) increased relative to advertising b) remained constant c) declined slightly, and the proportion spent on advertising has increased d) declined slightly, and the proportion spent on advertising has declined as well e) increased, and the proportion spent on advertising has risen as well.

a) increased relative to advertising

The greatest amount of responsibility for providing customer satisfaction falls on the shoulders of a) chief executive officers b) salespeople c) sales managers d) quality control experts e) marketing directors

b) salespeople

Sales force objectives are generally established for a) the organization as a whole b) the total sales force and for each salesperson c) just each salesperson but not the whole sales force d) for each department or division of the company e) long term but not short term sales personnel

b) the total sales force and for each salesperson

Customer density and distribution are important factors in a) prospecting b) motivating sales people c) creating sales territories d) compensating salespeople e) establishing sales force objectives

c) creating sales territories

A major disadvantage of personal selling is that it a) isn't remembered as well by consumers as advertising messages are b) cannot easily adjust the message to satisfy a customer's information needs c) is very expensive per contact d) does not provide immediate feedback e) isn't compatible with other promotional activities

c) is very expensive per contact

Heinz uses various techniques such as coupons, free samples, and consumer contests to encourage consumers to try its products. All of these marketing activities are considered a) consumer incentives b) trade promotion methods c) buying allowances d) consumer sales promotion methods e) consumer sweepstakes

d) consumer sales promotion methods

In establishing sales promotion objectives, a marketer should always a) concentrate on activities that will increase consumer demand b) focus on consumers c) focus on resellers d) be defensive in the methods they use e) align objectives with the organization's overall objectives

e) align objectives with the organization's overall objectives

The ____ stage of the personal selling process is when the salesperson asks the prospect to buy the product a) trial close b)proposal c) overcoming objections d) approach e) closing

e) closing

Company sales records, commercial databases, newspaper announcements, telephone directories, and public records are all sources used for a) surveying b) screening c) researching d) pre-approaching e) prospecting

e) prospecting

The salesperson must attract and hold the prospect's attention, stimulate interest, and spark a desire for the product during the a) prospecting b) preapproach c) follow up d) approach e) sales presentation

e) sales presentation

Technical salespeople

give technical assistance to a firm's current customers