ADV TEST CHAP 4

Primary demand refers to consumer demand for a specific brand within a product category.

false

Psychographics are useful in the marketing of all products because psychographic systems, such as VALS, are easy to use.

false

Purchase occasion is a psychographic variable used to segment consumer markets.

false

The process of market segmentation is a three-step process that begins with planning, defining the product, and identifying the market.

false

With an administered vertical marketing system, one company owns multiple levels of the distribution or production channel.

false

The _____ stage of the product life cycle is characterized by rapid market expansion, more and more customers, and a decrease in total advertising expenditures as a percentage of total sales. A. pioneering B. introductory C. maturity D. growth E. revitalization

growth

A pizza restaurant buys fountain Coca-Cola, which it sells to its customers. The pizza restaurant is an example of a(n) A. consumer market. B. VALS market. C. reseller. D. wholesaler. E. business-to-business market.

reseller

What is a vertical marketing system?

A vertical marketing system (VMS) is a system in which the main members of a distribution channel—producer, wholesaler, and retailer—work together as a cooperative group to meet consumer needs.

An ad for Crest's whitening strips shows a woman with white teeth and several boxes with possible ages, suggesting her white teeth make her look younger. Crest is using A. demographic segmentation. B. behavioristic segmentation. C. temporal segmentation. D. psychographic positioning. E. lifestyle segmentation.

B. behavioristic segmentation.

_____ is the totality of what consumers, distributors, dealers, and competitors feel and think about a brand over an extended period of time. A. Brand acceptance B. Market value C. Brand commitment D. Brand equity E. Product loyalty

Brand equity

. Describe business markets, the groups that use them, and the products they sell.

Business markets (or industrial markets) include manufacturers, government agencies, wholesalers, retailers, banks, and institutions that buy goods and services to help them operate. These products may include raw materials, electronic components, mechanical parts, office equipment, vehicles, or services used in conducting their businesses.

The Values and Lifestyles (VALS) typology uses a two-dimensional structure based on A. geographic variables and consumer perceptions. B. consumer behavior and product characteristics. C. primary motivation and resources. D. self-orientation and product differentiation. E. target marketing strategy and product positioning strategy.

C. primary motivation and resources.

According to the research of Stephan and Tannenholz, _____ are the most brand loyal group and require the least amount of promotion. A. early adopters B. innovators C. sole users D. early majority E. laggards

C. sole users

Gary Silva, senior vice president of sales, U.S. Auto Parts Group at Genuine Parts, says NAPA doesn't have a cookie-cutter layout but builds stores based on market need, with each designed independently. "It would be easier if all the stores had the exact same layout, but it's not the right thing to do for independent owners because some areas have more professional customers and others have more do-it-yourselfers," he explained. From this information, you know that NAPA targets both _____ markets. A. domestic and internationalB. internal and externalC. demographic and psychographic D. business and consumer E. non-controllable and controllable

D. business and consumer

Hard apple cider is making a comeback. Cider consumption is expected to hit 15 million cases annually this decade. Early adopters of cider are the same group that first gravitated to the microbreweries. Apple cider's drinkers like the notion that it is basically a fruit drink. It conjures up healthy associations and appeals to people who do not view themselves as serious connoisseurs. What segmentation variable would you recommend Woodchuck Draft Cider use to define its market? A. usage rate B. geographic C. demographic D. psychographic E. purchase occasion

D. psychographic

Fast-food companies like Hardee's create advertising campaigns to appeal to "heavy fast-food users," the people who already eat fast food most days of the week, in order to encourage them to buy at their chain. Hardee's is using A. purchase-occasion segmentation. B. psychographic positioning. C. demographic segmentation. D. lifestyle segmentation. E. volume segmentation.

E. volume segmentation.

What are the two steps that make up the market segmentation process?

Market segmentation is a two-step process. In the first step, groups of people or organizations with certain shared characteristics are identified. In the second step, these groups are aggregated according to their mutual interest in the product's utility. The second step gives the marketer a selection of markets large enough to be profitable to target.

What is the purpose of North American Industry Classification System (NAICS) codes?

NAICS codes are used by the U.S. Department of Commerce to classify all businesses. The NAICS codes help companies segment markets and do research, and advertisers can even obtain lists of companies in particular NAICS divisions for direct mailings.

What is the product element?

The product element is the most important element of the marketing mix: the good or service being offered and the values associated with it—including the way the product is designed and classified, positioned, branded, and packaged.

Once a company decides to use indirect rather than direct distribution, it must choose one of the three strategies of distribution. Discuss what each choice means in terms of product availability to final consumers.

With intensive distribution, products are available to purchasers at every possible location. With selective distribution, the number of outlets that carries a product is limited. Exclusive distribution occurs when a manufacturer grants to one wholesaler or retailer the exclusive right to sell a product in a specific geographic region.

Maidenform Brands is a global intimate apparel company that designs, sources, and markets intimate apparel products under the Maidenform, Flexees, and Lilyette brand names. Maidenform is able to use a multiple brand strategy that provides access to the faster-growing mass-market channel without diluting the strong positive opinions and feelings that its consumers, distributors, dealers, and competitors have for the Maidenform, Flexees, and Lilyette brands. In other words, Maidenform and its major brands have strong A. market share. B. market value. C. brand commitment. D. brand equity. E. market utility.

brand equity

With the common usage of laptops and tablets, large, bulky desktop computers have entered the _____ stage of the product life cycle and are being phased out by many computer firms. A. utility B. laggard C. late adopter D. decline E. growth

decline

When Hannah buys almond soap from a vendor at an arts and crafts show, and the vendor who sells the soap is actually the person who made the soap from scratch, that is an example of A. selective distribution. B. indirect distribution. C. direct distribution. D. unbranded distribution. E. differentiated distribution.

direct distribution

A(n) _____ comprises all the firms and individuals that take responsibility for the product as it moves from the producer to the consumer. A. distribution channel B. communication channel C. intermediating continuum D. marketing channel E. connectivity channel

distribution channel

The differences between Golden Harvest brand canning jars and Mason brand canning jars is not readily visible. Both are made of heavy glass that will not break easily. Through its advertising, Golden Harvest advertises that its jars are made with a glass that is 100 percent free of all impurities. In this way, Golden Harvest is using _____ to differentiate its product from those of the Mason brand. A. hidden differences B. differentiation cues C. imperceptible differences D. sensory cues E. perceptual filters

hidden differences

Proctor & Gamble is a global manufacturer that markets products such as detergents under the Tide, Gain, Cheer, and Era brand names. Which branding strategy does Proctor & Gamble use? A. individual branding B. regional branding C. psychological branding D. private labeling E. family branding

individual branding

Before starting Pedigree Pajamas, the owner of the company realized that he was treating his dog as if it were a child and that a lot of his friends did the same thing. So in what he perceived as a dog-friendly environment, he launched a line of doggie pajamas—available from size 6 for Chihuahuas to size 30 for Great Danes. The ads for Pedigree Pajamas had to convince people that dogs slept better in pajamas. A product that has to create primary demand is more than likely in the _____ stage of the product life cycle. A. pioneering B. introductory C. maturity D. growth E. revitalization

introductory

Mike Rowe is an actor and television host who is known for promoting individual initiative and the importance of blue-collar work. One of his business assets is his name. Royal Bobbles pays a fee to use Rowe's name and likeness on a bobblehead doll. The Mike Rowe Bobblehead is an example of A. licensed branding. B. national positioning. C. family branding D. private branding. E. intensive branding.

licensed branding

In order to reach a new target market, Old Spice has changed its products' package design, reformulated the scent of its products, arranged to have its products carried at hair salons at a higher mark-up, and begun running new ads aimed at women. What has been changed? A. perceptual value B. marketing mix C. niche market D. product line E. product utility

marketing mix

In the _____ stage of the product life cycle, the marketplace becomes saturated with competing products and the number of new customers dwindles and industry sales reach a plateau. A. saturation B. introductory C. maturity D. growth E. revitalization

maturity

Another name for manufacturer's brands is A. private brands. B. umbrella brands. C. national brands. D. family brands. E. individual brands.

national brands

The North American Industry Classification System (NAICS) A. will soon be replaced by the strategic industrial classification (SIC). B. is published by the North American Treaty Alliance. C. organizes all industries in the economy into 20 broad sectors. D. has little relevance for marketers that use direct mail. E. is top secret and cannot be shared with outsiders.

organizes all industries in the economy into 20 broad sectors

The basic goal of a positioning strategy is to A. own a concept that establishes the product in the prospect's mind. B. create a long-term market for a product category. C. correlate the total product concept with the product's position in the product life cycle. D. minimize product differentiation. E. create and maintain primary demand for a product.

own a concept that establishes the product in the prospect's mind

Which of the following is most likely a target market for a manufacturer that is licensed by World Wrestling Entertainment (WWE) to make Halloween costumes based on characters seen in WWE matches? A. older men and women who enjoy watching Olympic wrestling B. preteen males who wish to emulate one of the WWE wrestlers C. people who believe the WWE promotes violence D. children of parents who are sports enthusiasts E. anyone who has attended a WWE match

preteen males who wish to emulate one of the WWE wrestlers

Consumer demand for a whole product category such as DVD players, pickles, or laptop computers is called _____ demand. A. primary B. selective C. positioned D. category E. introductory

primary

While you cannot find televisions at every retail outlet, you can find them at discount stores, electronic stores, appliance stores, and department stores. What kind of distribution is used for televisions? A. exclusive B. pioneering C. selective D. intensive E. direct

selective

There are many brands of energy drinks available at gas stations. The manufacturer of Red Bull energy drink heavily associates it with extreme sports through sponsorships and ads aimed at extreme sports enthusiasts. By putting its sponsors on cans, Red Bull hopes to create _____ so that customers will perceive why it is a better brand of sports drink than all the rest in the gas station. A. secondary demand B. selective demand C. primary demand D. pioneering demand E. utility of demand

selective demand

The _____ for Axe Excite body wash is most likely young men interested in feeling that they have sex appeal. A. product utility B. trial/rejectors C. target market D. market aggregate E. marketing mix

target market

What is the next step for a marketer once market segmentation has been done? A. target marketing process B. budgeting process C. mission statement D. SWOT analysis E. competitive assessment

target marketing process

The _____ refers to the bundle of values built into a product aimed at satisfying various functional, social, psychological, economic, and other consumer needs and wants. A. total product concept B. marketing mix C. targeted product D. product attribution E. product utility

total product concept

A challenge of market segmentation is estimating a firm's potential profits if it focuses on the whole market or only on specific segments.

true

A target market can be classified into two types, namely, consumer markets and business markets.

true

Advertisers use NAICS codes to obtain lists of companies for direct mailings

true

Advertising for a movie that describes the film as a "family-filled riot of fun" is relying on benefit segmentation.

true

Distribution and promotion costs in selective distribution tend to increase as the number of outlets is limited

false

In developing a marketing mix, marketers generally start with the consumption life cycle.

false

What is the advantage of defining a target market?

When a company defines its target market, it knows exactly where to focus its attention and resources.

Intensive distribution involves limiting the number of wholesalers who can sell a product in order to gain a prestige image or maintain premium prices.

false

Differences between products that are readily apparent are called position differences.

false

Bose manufactures and markets home theater systems, surround sound stereos, and audio accessories. The company prices its products higher than most other brands on the market to make its products seem more valuable and of a higher quality. In other words, Bose uses A. exclusive distribution. B. psychographic pricing. C. psychological pricing. D. intensive distribution. E. price branding.

psychological pricing

The important element in psychological pricing is that the price be consistent with the brand image; you can't charge a Rolex price for a Timex watch.

true

If you look at an organically grown tomato and one that has been chemically enhanced, you can easily see the difference—the latter is perfectly formed and uniformly red while the organic tomato is not. In terms of product differentiation, this is an example of a A. hidden difference. B. differentiation cue. C. perceptible difference. D. sensory cue. E. perceptual filter.

perceptible difference

Unlike other ice cream brands, when it was introduced Ben and Jerry's ice cream was the only product that had unusual flavors with interesting ingredients. This is most likely an example of a(n) A. perceptible difference. B. differentiation cue. C. imperceptible difference. D. sensory cue. E. perceptual filter.

perceptible difference

Distinguish between an individual brand, a family brand, a national brand, and private labels.

Individual brand involves assigning a unique name to each product a manufacturer produces. Family brand is the marketing of various products under the same umbrella name. National brands refer to product brands that are marketed in several regions of the country. Private labels are personalized brands applied by distributors or dealers to products supplied by manufacturers. Private brands are typically sold at lower prices in large retail chain stores.

What is marketing communications? What are the tools used in marketing communications?

Marketing communications (often called marcom) refers to all the planned messages that companies and organizations create and disseminate to support their marketing objectives and strategies. In addition to advertising, major marketing communication tools include personal selling, sales promotion, direct marketing, and public relations activities.

Which of the following is a limit of consumer segmentation methods?A. For some products psychographics may offer little real value, as it oversimplifies consumer personalities and purchasing behavior. B. Psychographics help address the emotional factors that motivate consumers, thereby fulfilling their needs and decreasing the likelihood of successive sales. C. Psychographics rely too heavily on reciprocal activation, making them unlikely to create secondary sales. D. Psychographics do not effectively employ Connectors, Mavens, and Salesmen in reaching consumers. E. Psychographics encourage social epidemics such as racial profiling and stigmas against immigrants according to Malcolm Gladwell.

A. For some products psychographics may offer little real value, as it oversimplifies consumer personalities and purchasing behavior.

Home builders are using _____ segmentation to target people over 55 with homes that have wheelchair-friendly door widths, lever door handles, roll-out shelves, raised toilets, and direct 911 wiring. A. demographic B. psychographic C. diffused D. geographic E. psychological

A. demographic

In the health care industries, strategies that target women are becoming increasingly prevalent because capturing the female patient means influencing the vast majority of health care decisions made for families. Plus, women use health services more frequently than men. If you are a health care provider, you would want to use _____ segmentation. A. demographic B. psychographic C. diffused D. geographic E. psychological

A. demographic

Harris Teeter Inc. is a chain of supermarkets in the Atlanta area. In one of its stores in a predominantly Jewish neighborhood, the store has three rabbis on staff who make sure the foods sold at the store are kosher. Every Harris Teeter store has distinct characteristics that align it with the neighborhood in which it is located. The chain is using _____ segmentation. A. geodemographic B. psychographic C. behavioristic D. geographic E. psychological

A. geodemographic

The Japan Weather Association tracked buying patterns on 20,000 items and correlated them to the outside temperature. When the temperature goes up, people buy more sunshades, air conditioners, watermelons, and swimwear. When there's a chill in the air, sales of suits, sweaters, and heaters take off. This would be an example of A. purchase-occasion segmentation. B. psychographic positioning. C. demographic segmentation. D. lifestyle segmentation. E. volume segmentation.

A. purchase-occasion segmentation.

The Visitors Bureau of Greenville, Mississippi, uses an ad with the following headline: "Join some others who got inspired here" and then lists the famous authors that came from that part of the state. The message in this headline indicates the city is using _____ to attract tourists.A. psychographic positioning B. benefit segmentation C. demographic segmentation D. geodemographic segmentation E. volume segmentation

B. benefit segmentation

Market segmentation is a two-step strategic process, and the first step is to: A. conduct advertising research that determines consumers' reactions to various ad campaigns. B. identify groups of people with certain shared characteristics within the broad product market. C. locate as many market niches as possible that will be profitable for the firm. D. develop place, time, service, and possession utility.E. determine which personal influences will have the appropriate effect on consumers.

B. identify groups of people with certain shared characteristics within the broad product market.

Customers who might buy Muir Glen brand organic soups are people who like soup, want to try something different, don't have time to cook, worry about putting chemicals in their bodies, and are vegetarians. These various groups who may be in the market for Muir Glen soups are all examples of A. innovators. B. market segments. C. market aggregations. D. diffusers.E. buying centers.

B. market segments.

With _____, marketers group people by their values, attitudes, personality, and lifestyle. A. demographics B. psychographic C. geodemographics D. attitudinal positioning E. lifestyle positioning

B. psychographic

Over the past decade, brands that were once available only to the wealthy have created more affordable product extensions, giving a far broader range of consumers a taste of the good life. Jaguar, for instance, launched its X-type sedan, which starts at $30,000 and is meant for the "almost rich" consumer who aspires to live in luxury. By marketing to people who desire a luxurious lifestyle, Jaguar is using A. demographic segmentation. B. psychographic segmentation. C. geodemographic segmentation. D. attitudinal positioning. E. lifestyle positioning.

B. psychographic segmentation.

List the four most important variables used in behavioristic segmentation.

Behavioral segments are determined by many variables, but the most important are 1. purchase occasion, 2. benefit sought, 3. user status 4. usage rate.

_____ is the product's ability to satisfy both functional needs and symbolic wants. A. Market position B. Product satisfaction C. Product equity D. Product utility E. Market satisfaction

D. product utility

Which of the following marketing activities most likely takes place in the business market? A. the sale of a Black & Decker hammer to a do-it-yourselfer B. the rental of an apartment by a college student C. the purchase of babysitting services for a small child D. the purchase of a case of Campbell's brand soups by a supermarket E. the payment of a fee to a divorce lawyer

D. the purchase of a case of Campbell's brand soups by a supermarket

Distinguish between primary demand and selective demand.

Primary demand refers to demand for all brands in a product category. Selective demand is demand for a particular brand. A company has to stimulate primary demand when it introduces a major new product category. A company tries to create selective demand for its products when it uses its promotional efforts to impress customers with the subtle advantages of one brand over another.

Discuss the importance of product differentiation with respect to perceptible differences, hidden differences, and induced differences.

Product differentiation creates a product difference that appeals to the preferences of a distinct market segment. In advertising, nothing is more important than being able to tell prospects truthfully that your product is different. Unfortunately, in response to increased competitive pressures, burgeoning innovation and technology, and various constraints on distribution, new-product development cycles have shortened dramatically. Differences between products that are readily apparent to the consumer are called perceptible differences. Hidden differences are not so readily apparent. Induced differences are distinguishing characteristics of products affected through unique branding, packaging, distribution, merchandising, and advertising.

There is an ad for Levi's Warhol Factory X jeans in an issue of magazine. The full-page ad highlights the Warhol images on the inside of the jeans. To which type of market is the advertisement targeted? Briefly explain your answer.

The advertisement is targeted towards the consumer market. The product is targeted towards twenty-something consumers who are image-conscious, which is the readership of

What is the basic goal of any positioning strategy?

The basic goal of a positioning strategy is to own a concept that establishes the product in the prospect's mind.

Explain how the concept of shared characteristics relates to the marketing segmentation process.

The concept of shared characteristics is critical to market segmentation. Marketing and advertising people know that, based on their needs, wants and mental files, consumers leave "footprints in the sand"—the telltale signs of where they live and work, what they buy and how they spend their leisure time. By following these footprints, marketers can locate and define groups of consumers with similar needs and wants, create messages for them and know how and where to send their messages. The goal is to find that particular niche where the marketer's product fits.

What is the first step in target marketing? A. The target marketing process first determines the content, look, and feel of a company's advertising in relation to the specific segments generated in the market segmentation process. B. The first step in the target marketing process is to develop primary demand in a target market by creating a unique selling proposition. C. To perform the target marketing process correctly, an advertiser must first select a comprehensive staff of suppliers, media, managers, and clients. D. From the view of a marketer, the target marketing process begins with setting the advertising budget. E. The first step in target marketing is to assess which of the newly created segments offer the greatest profit potential and which can be most successfully penetrated.

The first step in target marketing is to assess which of the newly created segments offer the greatest profit potential and which can be most successfully penetrated.

Describe the steps in the target marketing process.

The first step in target marketing is to assess which of the newly created segments offers the greatest profit potential and which can be most successfully penetrated. The company designates one or more segments as a target market—those consumers the company wishes to appeal to, design products for, and tailor its marketing activities toward. It may designate another set of segments as a secondary target market and aim some of its resources at it.

List the most important factors for advertising success.

The following factors are particularly important for advertising success: -Strong primary demand trend -Chance for significant product differentiation -Hidden qualities highly important to consumers -Opportunity to use strong emotional appeals -Substantial sums available to support advertising

Describe the use of push and pull strategies in different stages of the product life cycle.

The pull strategy refers to the marketing, advertising, and sales promotion activities aimed at consumers to induce trial purchases and repurchases. Businesses may use this strategy ahead of a product's release in order to pull it through the supply chain and speed into a growth period. The push strategy involves marketing, advertising, and sales promotion activities aimed at getting products into the dealer pipeline to accelerate sales by offering inducements to dealers, retailers, and salespeople. Businesses often use this strategy when product has matured in order to build selective demand for the product over other similar items.

What are the stages in a product life cycle? Discuss each stage in brief.

There are four major stages in the product life cycle: introduction, growth, maturity, and decline. Introductory phase: The initial phase of the product life cycle (also called the pioneering phase) when a new product is introduced, costs are highest, and profits are lowest. Growth stage: The period in a product life cycle that is marked by market expansion as more and more customers make their first purchases while others are already making their second and third purchases. Maturity stage: That point in the product life cycle when the market has become saturated with products, the number of new customers has dwindled, and competition is most intense. Decline stage: The stage in the product life cycle when sales begin to decline due to obsolescence, new technology, or changing consumer tastes.

What is the utility of a product?

Utility refers to a product's ability to satisfy both functional needs and symbolic or psychological wants. A product's problem-solving potential may include form, task, possession, time, or place utility

Which product would most likely involve intensive distribution? A. Waterford crystal B. Harry Potter books C. Wrigley's chewing gum D. Whirlpool refrigerators E. Pepperidge Farm turnovers

Wrigley's chewing gum

In order to get the iPad ordered at retailers like Best Buy, Apple drove up demand through advanced advertising to consumers. Apple knew that consumer demand influences which products the tech retailers would carry. This was an example of A. indirect consumer marketing. B. promotion equity. C. scrambled promotion. D. a push strategy. E. a pull strategy.

a pull strategy.

Market aggregation is a three-step process that involves (1) dividing groups based on different interests, (2) segmenting groups based on motivation, and (3) assigning each group psychographic motivations.

false

Network marketing is also called pyramid marketing.

false

A promotion was launched to position French's mustard as a fun line of condiments for a variety of everyday occasions. Its promotions showed vignettes of families, children, and older Americans enjoying foods flavored with French's Deli Style, Dijon Style, and Honey Mustard flavors as well as its Classic Yellow mustard. The fact that all of these mustards have the French's brand is an example of A. individual branding. B. regional branding. C. psychological branding. D. private labeling. E. family branding.

family branding

When compared to consumer markets, business markets A. contain many more buyers. B. have more systematic purchasing procedures. C. can be segmented using psychological variables. D. have more dispersed markets. E. cannot be segmented by end-users.

have more systematic purchasing procedures.

The sale of traditional brands of chocolate candy bars is declining. The manufacturers of candy have noticed that the demand for energy-boosters is up. As a result, they have introduced a new type of candy bar called "buzz bars." The new candy bars have 60 milligrams of caffeine, with taurine and B vitamins. The candy industry had to create _____ for buzz bars. A. primary demand B. par value C. secondary demand D. utilitarian worth E. market value

primary demand

Joe Boxer products can be found only at Kmart and Sears. Joe Boxer is best described as a(n) A. aggregated brand. B. private label. C. manufacturer's brand. D. indirect consumer promotion. E. demographic brand.

private label

The _____ element of the marketing mix includes the way the product is designed and classified, positioned, branded, and packaged. A. utility B. communication C. distribution D. product E. customer

product

Which of the following is one of the bases for making purchase decisions in the business market and should be emphasized in promotional appeals? A. product demonstrations B. brand equity C. wholesaler D. retailer E. market concentration

product demonstrations

In a(n) _____, promotional efforts are aimed at retailers and other distributors in order to encourage them to stock, display, and advertise the product. A. indirect consumer marketing B. promotion equity C. scrambled promotion D. push strategy E. pull strategy

push strategy

Many book publishers, such as Penguin Books, provide resellers with elaborate point-of-purchase displays to encourage resellers to stock and promote the publisher's lead books. In this example, Penguin is using a A. penetration strategy. B. diversification strategy. C. divestiture strategy. D. push strategy. E. pull strategy.

push strategy

An example of a private label brand is Costco's Kirkland brand.

true

Brand equity is the totality of what consumers, distributors, dealers, and competitors feel and think about a brand over an extended period of time.

true

Communicating product utility is an essential component of marketing success.

true

Demographic segmentation would most likely be used to sell Fulla, a doll designed to embody the image of a proper Muslim woman.

true

Exchange is the traditional trading of values between two entities

true

Exclusive distribution is a strategy commonly used in the high fashion apparel industry.

true

In the United States, more than 40 percent of all retail sales are made through franchise outlets.

true

Manufacturers' representatives, distributors, and retailers are considered resellers.

true

To reach people who love to hunt, markets would most likely use psychographic segmentation.

true