CAA201 - Chapter 2

111) Procter & Gamble has sales of almost $50 billion and spends more than $4 billion on advertising every year. The company's corporate brand value is estimated to be more than $107 billion. In terms of key players in marketing, which one does Procter & Gamble represent? A) marketer B) supplier or vendor C) distributor D) agency E) media

A

12) What term is used to mean a place or a particular type of buyer? A) market B) position C) channel D) target E) segment

A

126) Of the following, which method of adding value to a product is mostly psychological? A) branding B) quality C) features D) convenience E) service

A

15) ________ markets consist of people who buy products and services for personal or household use. A) Consumer B) Business-to-business C) Channel D) Institutional E) Media

A

20) Most advertising dollars are spent in ________ markets. A) consumer B) business-to-business C) distribution D) channel E) institutional

A

21) Firms usually reach ________ markets through mass media. A) consumer B) business-to-business C) distribution D) channel E) institutional

A

3) The classification to which a product is assigned is known as the ________. A) product category B) product position C) market mix D) product class E) product mix

A

35) Which pricing strategy uses marketing communication to manipulate the customer's judgment of value? A) psychological pricing B) value pricing C) distribution pricing D) copy pricing E) customary pricing

A

36) Which pricing strategy is used to communicate a dramatic or temporary price reduction? A) promotional pricing B) value pricing C) parity pricing D) copy pricing E) customary pricing

A

37) Using ________, a marketer sets a high price for a product to make the product seem worthy or valuable. A) prestige pricing B) value pricing C) distribution pricing D) promotional pricing E) customary pricing

A

39) When a company distributes its products through one or more distributors and resellers, the company is using ________. A) channel marketing B) no-channel marketing C) direct marketing D) multi-level marketing E) integrated marketing

A

41) A ________ strategy directs marketing efforts at resellers, and success depends on the ability of these intermediaries to market the product, which they often do with advertising. A) push B) pull C) coverage D) direct E) exchange

A

49) Which of the following were originally sold in black-and-white, no-frills packaging at low prices? A) generic brands B) private labels C) regional brands D) fast-moving consumer goods E) licensed brands

A

50) Which of the following was the top global brand, based on brand value, in 2009? A) Google B) Microsoft C) Coca-Cola D) McDonald's E) Walmart

A

52) A ________ is a legal sign that indicates ownership. A) trademark B) logo C) brand D) brand license E) brand position

A

61) Which of the following is a strategy that uses two brand names owned by two separate companies to create a partnership offering? A) co-branding B) equity branding C) brand licensing D) integrated branding E) parity branding

A

63) Advertising, sales promotion, personal selling, public relations, and direct marketing are all ________. A) promotional tools that should be integrated under the concept of integrated marketing communications B) promotional tools used in business-to-business markets but not consumer markets C) promotional tools used for push strategies but not pull strategies D) promotional tools used for pull strategies but not push strategies E) promotional tools used in consumer markets but not business-to-business markets

A

64) More companies are adopting the concept of ________, which is the practice of unifying all marketing communication messages and tools as well as the messages from the marketing mix decisions so that they send a consistent message supporting the brand's strategy. A) integrated marketing communications B) integrated personal selling C) integrated competitive methods D) nonpersonal communication channels E) buzz marketing

A

65) Integrated marketing communications produces better communications ________. A) consistency B) sales C) simplicity D) variety E) independence

A

8) Which key player in marketing is the organization, company, or manufacturer producing the product and offering it for sale? A) marketer B) supplier or vendor C) distributor or retailer D) agency E) brand manager

A

11) The ________ refers to the various companies that are involved in moving a product from its manufacturer into the hands of its buyer. A) network chain B) distribution chain C) supply chain D) ingredient chain E) promotion network

B

112) Amco, Inc. manufactures small electronic components that become integral parts of the electronic systems in automobiles. Amco does not sell directly to auto manufacturers, but rather through brokers that are involved in selling the components to the auto manufacturers. Additionally, another company is employed to deliver the goods. All of these organizations are part of the ________ in getting electronic component parts to the automobile manufacturers. A) distribution network B) supply chain C) marketing network D) brand management E) parity chain

B

117) A.Y. McDonald, a manufacturer of pumps and plumbing valves, employs regional salespeople to sell its products to wholesalers and cities. This is an example of ________. A) sales promotion B) personal selling C) public relations D) indirect marketing E) advertising

B

120) Peter purchased an inexpensive necklace from a department store to give to his sweetheart, Julie, on Valentine's Day. He didn't want her to know that he did not spend very much for the jewelry, so he put it in a box he had from an upscale jewelry store that sells only expensive items. When Julie unwrapped her gift, she was excited to see that it came from this store and absolutely loved the necklace Peter gave her. Which key concept of marketing does this illustrate? A) exchange B) branding C) situation analysis D) marketing concept E) distribution

B

121) Laurie owns a 2002 Honda Accord, which is the third Honda vehicle that she and her husband have owned. They describe themselves as a "Honda" family and intend to purchase another Honda automobile when their daughter gets her driver's license. They know and trust Hondas. Which key concept of marketing does this illustrate? A) exchange B) branding meaning C) brand personality D) marketing concept E) product concept

B

124) An apparel marketer is planning to launch an existing brand name into a new product category. Which brand development strategy is being implemented? A) co-branding B) brand extension C) ingredient branding D) brand licensing E) rebranding

B

16) ________ markets consist of companies that buy products or services to use in their own businesses or in making other products. A) Consumer B) Business-to-business C) Distribution D) Institutional E) Indirect

B

22) What is the first step in the marketing process? A) Set objectives for the marketing effort. B) Research the consumer market and the competitive marketplace and develop a situation analysis. C) Assess consumer needs and wants relative to the product, segment the market into groups that are likely to respond, and target specific markets. D) Differentiate and position the product relative to the competition. E) Develop the marketing mix strategy

B

23) What is the second step in the marketing process? A) Assess consumer needs and wants relative to the product, segment the market into groups that are likely to respond, and target specific markets. B) Set objectives for the marketing effort. C) Research the consumer market and the competitive marketplace and develop a situation analysis. D) Differentiate and position the product relative to the competition. E) Develop the marketing mix strategy

B

25) Which of the following suggests that marketing should focus first on identifying the needs and wants of the customer? A) the exchange concept B) the marketing concept C) the product concept D) the brand concept E) the production concept

B

33) Which of the following is LEAST likely to be a factor on which the price of a product is based? A) what the market will bear B) the amount of support provided by resellers C) economic well-being of the consumer D) the consumer's ability to gauge the value E) the relative value of the product

B

34) A consumer's ability to gauge the value of a product is referred to as the ________. A) psychological price B) price/value proposition C) exchange rate D) comparative price E) value exchange

B

43) Which of the following refers specifically to creating the tangible and intangible elements of a brand? A) advertising B) branding C) exchanging D) marketing E) integrating

B

45) A(n) ________ is a perception, often imbued with emotion, which results from experiences with and information about a company or a line of products. A) advertisement B) brand C) tagline D) logo E) trademark

B

48) Store brands are also referred to as ________. A) generic brands B) private labels C) regional brands D) fast-moving consumer goods E) licensed brands

B

55) Brand value comes in two forms: the value to the ________ and the value to the ________. A) consumer; competitor B) consumer; corporation C) competitor; channel D) corporation; competitor E) shareholder; stakeholder

B

59) ________ refers to promoting and advertising the use of a brand name for a component used in manufacturing a product. A) Co-branding B) Ingredient branding C) Inside branding D) Brand licensing E) Integrated branding

B

68) A ________ brand is one marketed in a single country. A) house B) local C) regional D) store E) private

B

9) The materials and ingredients used in producing the product are obtained from other companies that are referred to as a producer's ________. A) marketers B) suppliers or vendors C) distributors or retailers D) agencies E) exchangers

B

1) Which of the following refers to the way a product is designed, tested, produced, branded, packaged, priced, distributed, and promoted? A) advertising B) promotion C) marketing D) management E) production

C

10) The complex network of suppliers that produce components and ingredients that are then sold to the manufacturer is known as the ________. A) network chain B) channel of distribution C) supply chain D) ingredient chain E) distribution chain

C

115) Puma sells its edgy designs to trendy retailers but also sells its more mainstream products in stores such as Foot Locker. Which marketing mix element does this strategy illustrate? A) product B) price C) place D) promotion E) branding

C

118) An ad in a professional journal targeted to an audience of dentists asked dentists to recommend Crest toothpaste to their patients. It offered toothpaste samples that dentists could buy at cost to give to their patients to encourage patients to take better care of their teeth. The manufacturer of Crest toothpaste was using ________. A) personal selling B) direct marketing C) a push strategy D) a pull strategy E) public relations

C

125) Harpo Enterprises maintains the Oprah Winfrey show, a Web site, and O magazine. Because Harpo Enterprises practices integrated marketing communications, these different brand contacts all maintain ________ in design and tone. A) variety B) feedback C) consistency D) creativity E) convenience

C

18) ________ markets are made up of members of a company's distribution chain. A) Consumer B) Business-to-business C) Channel D) Institutional E) Media

C

19) Resellers in a channel market are also known as ________. A) suppliers B) vendors C) intermediaries D) shareholders E) competitors

C

26) How a brand is different and superior in some way is referred to as ________. A) brand parity B) brand equity C) competitive advantage D) psychological pricing E) brand meaning

C

28) Which of the following is NOT a way advertising adds value to a product? A) making the product appear more desirable B) making the product appear more of a status symbol C) making the product more convenient for consumers to buy D) providing news and useful information of interest to consumers E) All of the above are ways advertising adds value to a product

C

29) Which marketing element includes product design and development, performance, branding, and packaging? A) distribution B) branding C) product D) place E) promotion

C

38) When a company distributes its products directly to buyers without the use of a reseller, the company is using ________. A) indirect marketing B) no-channel marketing C) direct marketing D) indirect channel marketing E) integrated marketing

C

4) The four tools of product, price, place (distribution), and promotion are collectively referred to as the ________. A) product mix B) promotion mix C) marketing mix D) integration elements E) exchange elements

C

40) Which strategy directs marketing efforts at the consumer? A) push B) exchange C) pull D) coverage E) cooperative

C

47) Parity products are those that have ________. A) no brand name B) few competitors C) few distinguishing features D) a store's label E) an international market

C

51) Which of the following is NOT a desirable quality for a brand name? A) It should suggest something about the product's benefits and qualities. B) It should be easy to pronounce, recognize, and remember. C) The brand should be a long word to get attention. D) The name should translate easily into foreign languages. E) It should be distinctive.

C

54) Bold, fun, exciting, and daring are all examples of ________. A) brand promises B) brand positions C) brand personalities D) brand images E) brand value

C

6) The act of trading a desired product or service to receive something of value in return is called a(n) ________. A) distribution B) position C) exchange D) market E) demand

C

60) A company that uses an established brand name with a related line of products is using a(n) ________. A) co-brand B) ingredient brand C) brand extension D) licensed brand E) brand parity

C

62) Using ________, a partner company rents another company's brand name and transfers some of that brand equity to another product. A) co-branding B) equity branding C) brand licensing D) integrated branding E) parity branding

C

114) Sam is a brand manager for a manufacturer of consumer package goods. Part of his job entails launching new products into the marketplace. Before he launches a new product, however, Sam's department conducts extensive research to identify the needs and wants of the customer, rather than finding ways to sell products that may or may not meet customers' needs. Which key concept of marketing is Sam implementing? A) exchange B) branding C) added value D) marketing concept E) product concept

D

116) During the 2003 World Cup, which was held in Japan and South Korea, Puma got a well-known sushi chef to create a special Puma sushi roll that was served in select Japanese restaurants in cities around the world. Puma also discretely announced the sponsorship in its company-branded chopsticks, sake cups, and napkins. At the same time, Puma partnered with the Terence Conran design shop to sell an exclusive version of its World Cup soccer boot, holding weekend sushi-making events at the home furnishings store. Which marketing mix element does this strategy illustrate? A) product B) price C) place D) promotion E) branding

D

13) The percentage of the total sales in a product category that a particular brand has is called the brand's ________. A) position B) market segment C) distribution D) share of market E) exchange

D

17) ________ markets include a wide variety of profit and nonprofit organizations, such as hospitals, government agencies, and schools that provide goods and services for the benefit of society. A) Consumer B) Business-to-business C) Channel D) Institutional E) Distribution

D

2) The goal of marketing is to match a product's availability to ________. A) the competition's availability B) the previous year's level of sales C) the company's production capabilities D) the consumers' need, desire, or demand for the product E) the legal limits of availability

D

31) The promotion "P" of marketing is also known as ________. A) product B) distribution C) price D) marketing communication E) differentiation

D

42) Which marketing communication tool uses face-to-face contact between the marketer and a prospective customer? A) advertising B) sales promotion C) public relations D) personal sales E) customary marketing

D

44) Computers, automobiles, and toothpaste are all examples of ________. A) services B) ideas C) brands D) products E) markets

D

46) Which of the following is the harmonization of an organization's identity and its image? A) integrated marketing communication B) standardized marketing C) channel marketing D) organizational branding E) brand transformation

D

53) ________ refers to how consumers see a brand relative to the other brands in the product category. A) Segmenting B) Targeting C) Differentiating D) Positioning E) Trademarking

D

113) Which of the following product offerings is intangible? A) fish for an aquarium B) refillable ink cartridges for a computer printer C) a mink coat D) a meal at a fast-food restaurant E) a limousine ride

E

119) Glasis is a type of paint made specifically for use on cars. An ad in Motor Trend magazine advising consumers to request their body shops use Glasis paint is an example of how a company uses ________. A) word of mouth influence B) public relations C) buzz marketing D) a push strategy E) a pull strategy

E

122) When Tylenol brand of pain relief capsules were tampered with, resulting in the death of several consumers, the manufacturer pulled all of its products from store shelves, redesigned packaging to resist tampering, and reintroduced noncapsule forms of the product. This was very expensive for Tylenol to do, but the company knew that the reputation, meaning, and value that its brand name had acquired over time held financial value. Today, Tylenol brand medications have the reputation of being high-quality products. The reputation, meaning, and value that the Tylenol brand name has acquired over time is known as ________. A) brand personality B) trademark C) brand framework D) brand relationship E) brand equity

E

123) Intel manufactures computer chips that are part of several personal computer manufacturers' finished products. Intel and the computer manufacturers realized that customers valued Intel computer chips due to their superior quality and reliability and began asking whether or not the computer they were considering purchasing contained an Intel computer chip. As a result, Intel and computer manufacturers started communicating through advertising and other promotional tools that there's "Intel Inside." This is an example of ________. A) primary branding B) secondary branding C) supply chain branding D) component branding E) ingredient branding

E

14) Which of the following is NOT considered a main type of market? A) consumer B) business-to-business C) channel D) institutional E) media

E

24) Which of the steps in the marketing planning process listed below follows the others? A) Assess consumer needs and wants relative to the product, segment the market into groups that are likely to respond, and target specific markets. B) Set objectives for the marketing effort. C) Research the consumer market and the competitive marketplace and develop a situation analysis. D) Differentiate and position the product relative to the competition. E) Develop the marketing mix strategy.

E

27) Which of the following does NOT add value to a product? A) advertising B) convenience C) useful features D) branding E) All of the above add value to a product.

E

30) Which marketing element includes personal selling, advertising, public relations, sales promotion, direct marketing, events and sponsorships, point-of-purchase, and the communication aspects of packaging? A) price B) distribution C) product D) place E) promotion

E

32) Which element of the marketing mix includes distribution channels, market coverage, and co-op advertising? A) product B) promotion C) price D) communication E) place

E

5) The marketing mix is also known as the ________. A) four Cs B) four Ms C) competitive advantage D) marketing channel E) four Ps

E

56) Brand ________ programs offer customers rewards for repeat business. A) value B) equity C) extension D) integration E) loyalty

E

57) ________ is the intangible value of the brand based on the relationships with its stakeholders, as well as intellectual property. A) Brand position B) Brand parity C) Brand image D) Brand identity E) Brand equity

E

58) Which of the following measures the financial value the brand contributes to a company? A) trademark B) copyright C) brand image D) brand identity E) brand equity

E

66) Integrated marketing communications require a company's mass-market advertisements, Web site, e-mail, and personal selling communications to all have ________. A) equal portions of the advertising budget B) the same return on investment C) separate marketing objectives D) the same target audience E) the same message, look, and feel

E

67) Which of the following is NOT a principle of IMC? A) Everything communicates. B) A brand is a unified vision and a complex system. C) Brand relationships drive brand value. D) You can't be integrated externally if you are not integrated internally. E) Every element of the marketing mix should provide equal return on investment

E

69) A(n) ________ brand is available in a number of different countries in various parts of the world. A) parity B) local C) regional D) extension E) international

E

7) Which of the following are considered "key players" in the marketing industry? A) marketers B) suppliers or vendors C) distributors or retailers D) agencies E) all of the above

E

70) A company that takes a ________ approach to international marketing tries to make accommodations in its marketing mix for cultural differences. A) parity B) domestic C) global D) standardized E) localized

E

101) A car manufacturer buys tires from a tire manufacturer. These manufacturers are part of the institutional market.

F

104) Retailers and wholesalers who have created their own brands-such as Walmart's Sam's Choice beverages and food products-are participating in co-branding

F

105) To maximize the toothpaste market in China, Crest needs to convince more of the Chinese population to brush their teeth three times a day. Crest is most likely to use a standardized approach for its marketing in China.

F

72) The goal in marketing is to sell as many products as possible

F

74) The materials and ingredients used in producing the product are obtained from other companies who are referred to as distributors.

F

75) The channel of distribution refers to the complex network of suppliers who produce components and ingredients that are then sold to the manufacturer.

F

76) The supply chain refers to the various companies that are involved in moving a product from its manufacturer into the hands of its buyer.

F

77) Only manufacturers advertise.

F

79) Institutional markets consist of people who buy products and services for personal use.

F

80) Institutional markets are made up of nonprofit organizations only

F

82) The first step in the marketing planning process is to set objectives for the marketing effort.

F

85) The process of assessing whether there are identifiable groups within the market whose needs and wants intersect with the product and its features is known as differentiation

F

87) Customer is a more general term than consumer

F

89) A push strategy directs marketing efforts at the consumer in an attempt to stimulate consumer demand.

F

91) Advertising is the process of creating the tangible and intangible elements of a brand

F

93) Co-branding means acknowledging a supplier's brand as an important product feature or component.

F

94) Integrated marketing communication (IMC) is a recent trend that uses databases to drive communication with customers and keep track of their interactions with a company

F

97) In marketing terms, ROI stands for rate of interest

F

98) Marketers who calculate ROI do not need to use other tools or techniques to evaluate the efficiency and effectiveness of their marketing communications.

F

100) The growth in global marketing activities continues to increase

T

102) Businesses are more likely to use advertising in specialized media than in mass media to reach customers in business-to-business markets.

T

103) Diane is a repeat buyer of Dove beauty products. Diane is a consumer who is Dove's customer.

T

71) Marketing is the way a product is designed, tested, produced, branded, packaged, priced, distributed, and promoted.

T

73) The key players in the marketing industry include the marketer, suppliers or vendors, distributors and retailers, and agencies

T

78) When marketing strategists speak of markets, they generally refer to a particular type of buyer

T

81) Most goods manufacturers also offer services

T

83) In the marketing planning process, consumer needs should be assessed before the product is positioned.

T

84) A company that operates with a marketing concept philosophy focuses on satisfying its customers' needs and wants

T

86) The process of making a brand stand out as different from its competition is called positioning.

T

88) Advertising can add value to a brand.

T

90) In personal sales, leads are also known as prospects.

T

92) Brand equity measures the financial value the brand contributes to the company

T

95) An IMC program is more complex than a traditional advertising plan

T

96) Implementation of IMC is most successful through the use of cross-functional organization.

T

99) The calculation of ROI identifies how much money a brand made in comparison to its expenses.

T