Quiz Questions

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

causal

Customer-driven marketing is most effective when ________.

clear needs exist and customers know what they want

In terms of packaging functions, Tiffany & Co.'s robin egg blue boxes ________.

create immediate consumer recognition

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

understanding the marketplace and customer needs and wants

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

Marketing is primarily concerned with engaging customers and secondarily with managing profitable customer relationships. T or F?

False

Paid media refers to promotional channels owned and controlled by the company, including company websites, corporate blogs, owned social media pages, proprietary brand communities, sales forces, and events.

False

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.

Mail surveys have many disadvantages so many marketers have switched to ________.

Internet-based surveys

Which of the following is a disadvantage of straight product extension?

It can be costly in the long run if products fail to satisfy consumers in specific global markets.

Which of the following is true about customer relationship management (CRM)?

It consists of sophisticated software and analytical tools.

________ is the process of dividing a market into distinct groups of buyers who have different needs, characteristics, or behavior.

Market segmentation

________ use the phone, Internet, and social media to find new leads, learn about customers and their business, or sell and service accounts directly.

Telemarketers and online sellers

Which of the following is a disadvantage of licensing?

The licensor potentially creates a competitor in the form of the licensee.

Which of the following is most likely true about direct and digital marketing?

They build customer engagement and constitute a complete model for doing business.

Which aspect of social media sites makes the medium most appealing to niche marketers?

They cater to the needs of small communities of like-minded people.

For inbound telephone marketing, the company provides a toll-free phone number so it can receive orders solicited by television, print ads, direct mail, and catalogs. T or F?

True

Marketing planning involves choosing marketing strategies that will help the company attain its overall strategic objectives. T or F?

True

Holiday Inn divided its customer market into segments and selected the most promising segments. Deciding what position it wants to occupy in these segments is called diversification. T or F?

false

Raw materials consist of ________.

farm products

Asiana, a fragrance manufacturer located in France, markets its products to the North American and Asian countries through independent distributors. In this case, Asiana has entered into international markets through ________.

indirect exporting

Zappos recognizes the importance of the buyer-seller interaction. They only hire people with an innate "passion to serve" and they go through four weeks of customer loyalty training. This is referred to as ________ marketing.

interactive

A market segment is less attractive when ________.

it contains powerful suppliers who can control prices

Green Gardens sells gardening and landscaping goods and equipment. The marketing department places an unmanned machine in the store with touchscreen technology to provide product information. Consumers can use this machine to learn about the company's products and services. The company's marketing form is best referred to as ________ marketing.

kiosk

A successful niche marketing strategy relies on a firm's ________.

knowledge of customer needs

The difference between direct and indirect exporting is that indirect exporting involves ________.

less investment

Nike's goal to increase sales of its running shoes by 25 percent during the first six months of the new fiscal year is an example of a ________.

marketing objective

Dollar General profitably appeals to families with more modest means. The retailer's approach is most likely referred to as ________.

target marketing

Foods International is developing a new gluten-free, chili-flavored pretzel. The marketing strategy for the product has already been developed and presented to top management. Several prototypes were also formulated by the company's R&D team. The final prototype is now being tested rigorously to ensure that it passes FDA standards. Once approved, the next step will most likely be ________.

test marketing

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

the customer insights it provides

Which of the following best describes the value chain of a company?

the series of departments that design, produce, market, deliver, and support the company's products

Data collection, processing, and analysis are undertaken during which stage of the marketing research process?

implementing the research plan

The growth of the Internet caused many traditional companies to ________ in response to customer demands and a changing marketplace.

use omni-channel retailing

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

Advertising can be used to build up a long-term image for a product while sales promotion effects can be short lived.

Marketing, more than any other business function, deals with ________.

customers

Which of the following is a function of an integrated marketing communications system?

delivering a clear, consistent, and compelling message on the product to each brand contact

Acquisitions do not include ________.

developing a product

Studio 19 is a dance studio geared to adults who want to learn ballroom and Latin dance. When individuals call the studio, they're encouraged to access the website to receive a $25 e-coupon entitling them to a free half hour of dance instruction. Once they become patrons, text messages are sent to share news about featured dance instructors and upcoming special events. Which of the following promotion mix tools does Studio 19 employ to reach target customers?

direct marketing

The fastest-growing sales trend is ________ that involves the use of online, mobile, and social media to engage customers, build stronger customer relationships, and augment sales performance.

social selling

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

maturity

Argonaut Food Stores, a retail giant, hires better-skilled employees than its competitors by employing strategic recruitment practices. It also conducts highly specialized training programs for its employees. In this case, Argonaut has focused on gaining a strong competitive advantage through ________ differentiation.

people

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

perishability

A toothpaste manufacturer that bands two products together, selling two for the price of one, is using which type of consumer promotion tool to build short-term sales?

price packs

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

product differentiation

When viewing the market from a buyer's point of view, "communication" corresponds to the ________ component of the marketing mix.

promotion

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

prospecting

The presentation stage of the selling process most likely involves ________.

showing how a company's products can solve a customer's problems