Marketing 310 Final
If the product price is $100, average variable cost $40 per unit, and the total fixed costs are $120,000, what is the breakeven point?
2,000 units
A retailer of Real Dry deodorant prices it at $2.00; it costs the retailer $1.40. What is the approximate markup as a percentage of selling price?
30 percent
As Jessica enters Audio Jetz car electronics department, she is asked by the salesperson if she has seen the new plug-in cell phones with coffee-warming app. She answers that she didn't know that this type of app for cars was available. Based on this information, she is now in what stage of the product adoption process for this item?
Awareness
____ competitors are the most significant to marketers because buyers see the different products of these firms as direct substitutes for each other.
Brand
The director of marketing for 3M tapes tells the rest of the management team, "When it comes to our transparent packaging tape unit, our strategy will be to use funds generated here to support our venture in the industrial bonding market." This strategy indicates that the packaging tape unit falls into which one of the following classifications?
Cash cow
Which of the following pricing objectives sets prices to recover cash as quickly as possible?
Cash flow
OES Office Systems' use of fax machines to carry its advertising messages to its business customers is which component of the communication process?
Communication channel
If your firm uses a ______________ targeting strategy, you can expect to need __________ production processes to support the strategy.
Differentiated; More
Consumers buying products online have dramatically affected the _______ variable of the marketing mix.
Distribution
Issues of inventory levels and storage costs are both concerns relating to the ________ variable of the marketing mix
Distribution
What is the most protectable brand type as determined by a series of court decisions?
Fanciful
Which of the following companies is the best example of a service marketer?
FedEx
Which of the following is essentially an uncontrollable factor in developing a marketing mix?
Government regulations
Organizations should define themselves not according to the products they produce but according to
How they satisfy customers
Mother Against Drunk Driving is a group that works to change attitudes and laws about driving under the influence of alcohol. MADD primarily markets
Ideas
In China, the price of imported Scotch is $30 per glass as opposed to Scotch from China which is $3. Which of the following do you think accounts for the difference in price?
Import tariff
R. J. Reynolds markets several brands of cigarettes, including Vantage, Camel, Winston, and Salem. This is an example of which type of branding policy?
Line family Brand extension Individual Generic
There are a number of situational influences that impact the consumer's buying decision process. Which of the following is one of those influences?
Marketers' information influences Brand influences Distribution influences Consumer's mood influences
A change in the minimum drinking age in any given state illustrates a change in the ______ for Miller Brewing
Marketing Environment
What links producers to consumers through the purchase and reselling of products or contractual agreements?
Marketing intermediaries
Nathan, a marketing manager for Casual Express, a retail clothing store chain, wants to use observation methods to gather information about shopping behavior. Which of the following should Nathan know about observation methods of data collection?
Observation can tell Nathan what is being done, but not why
Which of the following survey methods has the potential to offer quick response at a lower cost than traditional mail and telephone surveys?
Online Surveys
Which of the following types of promotion informs potential customers about a product and what it is?
Pioneer
____ competitors are those that compete in the same product class, but their products have different features, benefits, and prices.
Product
Which of the following is least likely to be a factor affecting the selection of marketing channels?
Product packaging
As the industrial revolution came to the united states most firms operated in a _________ orientation.
Production
The element of the marketing mix used to increase awareness of a product or company is
Promotion
U.S. Electric, the maker of a highly innovative xenon light bulb used in large, manufacturing facilities, finds that it has excess inventory. The firm increases its direct marketing budget by 20 percent and adds three new sales representatives. This company is operating as if it were in which of the following orientations?
Sales
The application of mechanical and human efforts to either people or objects to provide intangible benefits to customers is known as a(n)
Service
The three basic forms that a product can take are
Service, ideas, and goods
Shannon Hill needed to buy an airline ticket to visit her parents. She went to several websites to compare rates and chose a flight on Southwest Air lines because, for a similar price to other airlines, it had a better reputation for service. For Shannon, this flight is an example of which type of product?
Shopping
The Birkenstock Shoe Company is currently writing its marketing plan. Birkenstock is aware of the possible advantage of its brand name over competitor's brands. Which component of the marketing plan does this information most likely fit into?
Strengths and weaknesses Marketing strategies Marketing objectives Executive summary
A SWOT analysis focuses on an organization's:
Strengths, Weaknesses, Opportunities, and Threats.
Kashi Heart to Heart cereal is aimed at people concerned about their heart health. These people represent the Kashi
Target Market
Which of the following is not a key element of planning?
Tasks Timing Budgeting Assessing
At what point does a firm maximize profit?
The point at which marginal cost equals marginal revenue
When Fiat offers to let qualified buyers test drive the Fiat Doblo Van, the dealer is trying to stimulate which stage of the product adoption process?
Trial
Redlands Distributing wants to carry Tide detergent products, made by Procter & Gamble. P&G agrees, but only if the supplier also purchases P&G's entire line of detergents such as Gain, Dreft, and Cheer. If this were to occur, Procter & Gamble would be engaging in which of the following channel management practices?
Tying agreement
If a newly formed country wanted to increase its international trade and reduce worldwide tariffs, it would most likely try to become a part of
WTO
Which one of the following statements by a company president best reflects the marketing concept?
We have organized our business to make certain that customers get what they want.
You are watching an episode of a new game show that tests contestants' knowledge by giving them phrases they must respond to with a question. The following marketing-related phrase comes up in the bonus round of the game: "It's an informed guess or assumption about a problem or set of circumstances. It is based on all the insight and knowledge available about the problem or circumstances from research studies and other sources." The contestant's response should be
What is a hypothesis?
In marketing research, a sample is best described as
a limited number of units chosen to represent the characteristics of a total population.
Starbucks has an agreement with Pepsi Co. through which Pepsi distributes Starbucks' coffee drink, Frappucino, to grocery stores and other retail outlets. This is an example of
a strategic channel alliance.
Crest toothpaste is available in several different versions, such as Crest Whitening, Crest Tartar Control, Crest Whitening with mouthwash, and Crest Total Effects. Given these different variations of the product, it appears that the marketers of Crest are segmenting the market by using ____ segmentation.
advantage behavioristic end-purpose benefit
Kyle is preparing the promotional plan for Jansport backpacks in early May. This promotion will be executed in the month of August and will be a paid form of nonpersonal communication. It will be communicated to a target audience through a mass medium. Kyle is using the ___ form of promotion.
advertising.
The supply chain includes
all entities that facilitate product distribution.
Ryan is on his way to work when he realizes he has a flat tire. He swings into Sam's Club and has a new tire installed. Ryan's purchase of a new tire in this situation is considered to be
an unsought good
Having used both Secret and Sure deodorants, Annette feels that Secret is a good product and the one that best meets her needs. She has formed a(n) ____ about Secret.
attitude
Jason, a 17-year old high school student, wants to buy a pack of Marlboro Lights. He has the money to purchase them, but he is still not considered to be a market for the product due to his lack of ____ to buy.
authority
The definition of marketing implies that _____ should receive benefits from exchange relationships
both customers and businesses
Companies that market products with similar features, benefits, and prices to the same customer group are known as ____ competitors.
brand
Marketers primarily focus their environmental analysis on ____ competitors.
brand
Marvel Comics allowed various organizations to use its Spiderman and Incredible Hulk characters to market a wide variety of toys and clothing items. Marvel Comics received a percentage of the gross revenues. This is
brand licensing
McDonald's golden arches are a classic example of a
brand mark
Suppose managers at Caterpillar have determined the costs associated with producing hay balers are equal to the price that they charge for the hay balers. This indicates that Caterpillar is producing at the ____ point.
breakeven
Appropriate resource allocation strategies for business units classified as question Marks include:
build, harvest, and maintain build, niche, and divest harvest and maintain build and maintain
Brain Games, Inc. is a marketing research company which markets primarily to consumer products organizations. Brain Games provides products that are most likely considered
business services
Products are classified as being business or consumer products according to the
buyer's intended use of the product
Lexmark sells some of its color printers for about $100, but the refill cartridges cost over $30 each. Lexmark's pricing strategy would be best labeled as
captive pricing
If Starbucks were to donate 5 percent of every coffee purchase to shelters for victims of domestic abuse for one month, this would be an example of
cause-related marketing.
When products in an industry are relatively homogeneous and price is a key purchase consideration,
competition-based pricing becomes more important.
Goodyear allows companies like Sears and Discount Tire to distribute and discount its tires. This action significantly increases the possibility of channel ____ with independent Goodyear dealers.
conflict
Brand name awareness is an important element of brand equity because a familiar brand is more likely to be in a customer's ____ than an unfamiliar brand.
consideration set
A distinguishing factor between a brand name and a brand mark is that a brand name
consists of words
In the distribution channel for Domino's Pizza, channel members are linked by legal agreements that spell out the obligations and rights of each member. This is an example of a(n) ____ vertical marketing system.
contractual
Often when a company introduces a new product or line extension, its promotion will focus on ____ in order to initiate the product-adoption process.
creating awareness
The marketing mix is built around the
customer
The driving force behind marketing channel decisions should be
customer satisfaction.
Primary demand is defined as
demand for a product category. demand for a new product. consumer awareness of a product category. demand for a particular brand.
Segmentation variables are usually grouped into four categories:
demographic, geographic, psychographic, and behavioristic.
A survey question that requires a yes or no answer is called a
dichotomous question
The depth of a product mix is measured by the average number of
different products offered in each product line.
A marketing channel is defined as a group of individuals and organizations that
directs the flow of products from producers to customers.
Apple makes its computers available through its own stores, its website, and some major retailers. This is an example of
dual distribution.
When Starbucks decided to expand into the international markets of India, Japan, and Argentina, management realized that there would be significant differences in the standards of living, credit, buying power, and income distribution in those countries. Starbucks is currently examining the ____ forces in its environmental analysis.
economic
If Carnival Cruise Lines increased the price of its seven-day cruise package by 10 percent and, as a result, experienced a 20 percent decline in customer bookings, Carnival's demand would be
elastic
The United States' prohibition against importing cigars from Cuba is an example of a(n)
embargo
To monitor changes in the marketing environment effectively, marketers must engage in
environmental scanning and analysis.
An arrangement where a producer forbids an intermediary to carry products made by competing manufacturers is called
exclusive dealing.
Expensive, high-quality products that are purchased infrequently often reach consumers through
exclusive distribution.
The major levels of intensity at which a company can choose to distribute its products are ____ distribution.
exclusive, selective, and intensive
If Purina forced Kroger's grocery chain to place all of its products in the stores' most favorable locations, it would be
exercising channel power.
Research that allows marketers to make causal inferences about relationships is called
experimental research.
When Hamburger Helper introduced its Oven Varieties, it gave special offers to supermarkets to purchase the new product and supplemented these offers with consumer advertising. Hamburger Helper's primary objective is to
facilitate reseller support.
In one corner of its magazine advertisement for office copiers, Lexmark places a small box asking for the names and addresses of individuals or companies seeking more information. Lexmark has included this box to facilitate ____ for this communication.
feedback
If Starbucks buys a bakery, this would be an example of which of the following?
forward integration diversification horizontal diversification backward integration
Which of the following products will most likely use the shortest distribution channel?
fresh strawberries
A culture can be divided into subcultures according to
geographic regions or human characteristics, such as age or ethnic background.
When a product experiences an increase in the number of competitors, it is usually in the _____ stage of the product life cycle; however, when that competition becomes intense, it is in the ____ stage.
growth; maturity
Appropriate resource allocation strategies for business units classified as cash cows include:
harvest and maintain
A direct-response information form found in a magazine advertisement that allows customers to send for more information has a primary objective of
identifying prospects.
River City, Inc. is an independent business that takes title to products and carries inventories. River City, Inc. is most likely a(n)
industrial distributor.
The three levels of brand loyalty from strongest to weakest are
insistence, preference, recognition.
Chris sees a television commercial for Arby's promoting its roast beef sandwiches at 5 for $5.95. Later that day he goes to the nearest Arby's for a roast beef feast, but is told that the special offer is not available at that location. Arby's seems to lack
integrated marketing communications.
Head nodding, winking, hand gestures, and arm motions are all forms of ____ communication.
kinesic
A group that has the willingness, ability, and authority to buy a product is a
market
Any group of people who, as individuals or as organizations, have needs for products in a product class and who have the ability, willingness, and authority to buy such products is a(n)
market
What type of growth option would it represent when a company is looking for a new market for its existing product
market development
CyberCycle Inc., is preparing a written document specifying the activities to be performed to implement and control its marketing activities. This document is called the
marketing plan.
When encoding the message, the source should use signs that have
meanings that the target market will understand
Sara Lee Corporation manufactures desserts, breads, pantyhose, meats, and a variety of other products. These products make up Sara Lee's product
mix
Anything that reduces the accuracy and clarity of communication is called
noise
Eliminating a wholesaler from a marketing channel will
not eliminate the functions performed by that wholesaler.
Haley is a graphic artist who is currently working on the development of a new container for mustard and mayonnaise. She is also developing its graphic design. Haley is likely working on the product's
packaging
If Nabisco wants to quickly gain a large market share with its new line of reduced-fat snack crackers, it should use
penetration pricing
A problem associated with ____ is that consumers can predict when prices will be lowered and delay purchases until that time.
periodic discounting
Melissa needs some spaghetti sauce and always buys Ragu. However, her local supermarket is out of Ragu and since Melissa wants to get home to cook dinner she settles for Prego. Melissa has brand ____ for Ragu and brand ____ for Prego.
preference; recognition
If Norelco introduced a new electric razor that sonically removes hair and priced it first at $175 and then at $150 before reducing the price to $100, the firm's initial pricing strategy is known as
price skimming.
Data that are observed or collected directly from respondents are called
primary data
By promoting the fact that "orange juice is not just for breakfast anymore," the Florida Orange Growers Association attempted to stimulate
primary demand
Deciding to add gel insoles to its running shoes would be a change in the ____ element of the marketing mix for Nike.
product
The pricing of Clinique makeup considerably higher than brands such as Cover Girl, Revlon, and Maybelline is used to communicate ____, which is the company's primary pricing objective.
product quality
Consumers receive the benefits of place utility when
products are available in locations where consumers want to buy them.
If the push policy is used in promoting a product, the firm
promotes only to the next marketing institution down the marketing channel.
When a salesperson varies the physical distance between himself and a customer he is using
proxemic communication.
Communication through the use of brochures, annual reports, event sponsorships, and news stores is referred to as
public relations.
When Hershey Dark Chocolate Kisses were introduced, Hershey promoted directly to consumers and told them to ask for the product at their favorite stores. This is an example of a ____ policy.
pull
If Germany, in an attempt to bolster the sales of its own auto manufacturers, decided to limit the number of automobiles that could be brought in from other countries, Germany would be using a(n)
quota
If a business decides to reduce its prices once in a while on an unsystematic basis, it is using
random discounting
Marketers who view political forces as being beyond their control are taking a(n) ____ response toward these forces.
reactive
Since Victoria's Secret has decided to use nonprice competition, it distinguishes its brand through all but which of the following?
rebates
During the decoding process, the
receiver attempts to convert signs or symbols into concepts and ideas.
The final step in the marketing research process is
reporting the research findings.
When Sophie buys organic produce for her household using a channel with only one intermediary, that intermediary is classified as a
retailer.
The cost of ____ is usually substantially lower than the cost of ____.
retaining existing customers; acquiring new customers
Shortly after moving into their new home, Mark and Katherine Gould purchase and install smoke detectors and an alarm system. The Goulds are concerned about fulfilling their need for
safety
Marketers of highly seasonal products tend to have more irregular use of
sales promotion
Executives in Japan decided to price Lexus luxury cars in the United States at $55,000 while pricing them at $66,000 in their own country. This is an example of
secondary-market pricing
When Amazon.com introduced its Kindle FireHD, it was available through Amazon.com, Staples office supplies store, and a few other retailers. The Kindle FireHD was most likely distributed through the _____ of distribution.
selective level
In the Gillette advertisement that claims, "Gillette, the best a man can get," Gillette is the communication
source
Based on the work by the Boston Consulting Group, products with a dominant share of the market and good prospects for growth are
stars
Another common name for a private distributor brand is a ____ brand.
store
Successful business organizations should take actions to convert internal weaknesses into ____ and external threats into ____.
strengths; opportunities
The Office Place is an office supplies company who has just adjusted its price levels so that it can increase its sales volume to match its expenses. The Office Place is most likely employing a(n) ____ objective.
survival
A ____ brand type is considered the least protectable under existing trademark regulations.
symbolic suggestive descriptive fanciful
The process of putting one's thoughts (meaning) into signs (symbols) is called
the coding process.
Possession utility is best described as
the customer having access to the product to use now or store and use later.
Generally, customers are most likely to rely on the price-quality association when
they cannot judge the quality of the product for themselves
Generally speaking, individuals who are unemployed would not be considered a target market for lawn care services because
they would not have the ability to purchase such products.
In today's marketing environment, competitors can take on many forms. For example, Diet Coke can be seen as a competitor to Wrigley's Double Mint chewing gum. In this circumstance, these two products are described as ____ competitors.
total budget
The value, measured in either marketing or financial terms, associated with a brand's strength in a market is referred to as brand
value
Warner Bros. sells cookie jars, puzzles, photo albums, and other items featuring its popular cartoon characters directly through its own retail outlets. This is an example of
vertical channel integration.
Marginal analysis involves examining
what happens to a firm's costs and revenues when production is changed by one unit.
One company markets such diverse products as Rosarita Mexican foods, Max Factor cosmetics, and Samsonite luggage. These various offerings exhibit this firm's product mix
width
In the consumer buying decision process, the information search stage
yields a group of brands that a buyer views as possible alternatives.
If Julio Ruiz has an income of $30,000, pays $6,000 in rent, $1,200 in utilities, and $5,000 in taxes per year, his disposable income is
$25,000.
What is a primary difference between an industrial distributor and a manufacturers' agent?
A manufacturers' agent does not acquire title nor usually take possession of the products whereas an industrial distributor does.
The Coca-Cola Company has recognized the significant increase in population diversity within the U.S. soft-drink market. Which one of the following best illustrates the company's integration of this knowledge into its marketing strategy?
Ads featuring Hispanic actors and Tejano music
Texas rice farmers wish to get their product into the Japanese market but are hindered by a complex maze of regulations imposed by the Japanese government. The farmers are most likely to attempt to influence which aspect of the marketing environment?
Competitive Political Technological Economic
When marketers at Consolidated Mustard Company tried to determine demand for their product, they found that at 50 cents, consumers wanted 2,000 jars; at $1.00, they wanted 6,000 jars; and at $1.50, they wanted 4,000 jars. What can Consolidated conclude?
Consolidated mustard is a prestige good
Which of the following describes a company hiring a foreign firm to produce a designated volume of its product to specification?
Contract manufacturing
____ refers to the idea that morality varies from one culture to another and that business practices are therefore differentially defined as right or wrong by particular cultures.
Cultural relativism
TimeWarner Cable uses a segmentation strategy for its cable TV packages based on market characteristics such as age, gender, or income. Which of the following segmentation variables is TimeWarner using?
Demographic
Which category of income are marketers most interested in?
Disposable income
____ can force businesspeople to buy and sell foreign products through a central agency, such as a central bank
Exchange controls
Which of the following agencies regulates marketing activities the most?
Federal Trade Commission
Subaru is producing a new seven-passenger van with all-wheel drive. Which of the following would be the best variables for segmenting the market for this new model?
Geographic location and family life cycle
Which of the following products is an example of a manufacturer brand?
Great Value Corn Flakes Safeway tomato sauce Kmart tires Sony TVs
Which step in the marketing research process involves the use of data analysis and statistical techniques to help draw conclusions?
Interpreting research findings
Which of the following is used to help maintain a more favorable balance of trade by a country?
Limiting imports
To maintain the control needed to obtain accurate information, marketers approach marketing research as a process. Which of the following steps of that process focuses on uncovering the nature and boundaries of the marketing situation to be studied?
Locating and defining problems
Many marketers are concerned about the number of potential customers within a certain area of land because of the different requirements to serve dissimilar areas. What is this segmentation variable called?
Market density
Walmart is currently expanding its stores into Canada and Mexico. This expansion is being facilitated by the
North American Free Trade Agreement.
Caterpillar, maker of large construction equipment in the U.S., would like to better understand factors that would affect its ability to export its products to various countries. Which of the following forces determine how trade barriers affect Caterpillar's marketing efforts?
Political and legal
Your company provides oil exploration services to major oil companies in Russia. The United States government just announced it is imposing economic sanctions on Russia because of the military actions it has taken in Ukraine. This situation is an example of which of the following types of forces that constantly impact a company's dynamic marketing environment?
Political force
During which stage of the business cycle is unemployment low and total income relatively high?
Prosperity
A Macy's manager designs the casual clothing department such that one of Macy's private label pairs of jeans, priced at $24.99, is positioned next to a national brand of jeans, such as Levis, priced at $39.99. What is the manager attempting to accomplish?
Reference pricing strategy
Which of the following statements about self-regulatory programs is false?
Self-regulatory guidelines generally are stricter than governmental regulatory programs.
If all the gas stations in a city collaborated to determine what gas prices should be charged, they would be violating the
Sherman Antitrust Act.
Which of the following is an example of consumer misbehavior?
Shoplifting
Which of the following regulatory groups is a system of nongovernmental, independent, local regulatory agencies supported by local businesses?
The Better Business Bureau
When Disney World wants to have at least 90 percent of its customers indicating they had a memorable and satisfying experience at the park hotels, this is an example of
a marketing objective
Odd-even pricing is
a psychological pricing strategy.
Jennifer is interested in joining Kappa Lambda Iota sorority. She begins to shop at Sarah's, a local store where the Kappas buy their clothes. She also asks her family for a new car because all the sorority members have new cars. In these instances, Jennifer is influenced by
a reference group
Scenario 8.2 Use the following to answer the question. KFC opened its first franchised restaurant outside of North America in England in 1964. Now, over a billion KFC chicken dinners are sold annually at more than 80 countries and territories around the world. KFC has established its own processing plants in these countries to ensure the quality of its chickens and other food items. In the U.S., the menu at KFC is usually the same in all restaurants, with only a very few additional items available in different regions. However, when KFC first franchised into Asian countries, it added many unusual local delicacies to the menuitems such as fried octopus and squid. Additionally, the franchised stores in Asian countries display cooked food in "plates" near windows at the front of the store. This is a tradition for many restaurants in these countriesto offer the customer passing by a preliminary view of their product. Refer to Scenario 8.2. The practice of offering fried octopus and squid at Asian KFC's is best described as
a strategy of some customization
According to the text, marketing ethics refers to principles and standards that define
acceptable conduct in marketing
Abercrombie & Fitch is developing a program to get to know its customers. Which of the following is not a reason why A&F needs to understand consumer buying behavior?
all customers are the same when it comes to buying behavior
When PepsiCo takes the information collected through research and attempts to assess and interpret what it means for its soft-drink marketing efforts, PepsiCo is engaged in environmental
analysis.
The ____ is the difference in value between a nation's exports and its imports.
balance of trade
Problem recognition occurs when a consumer
becomes aware that there is a difference between a desired state and an actual condition.
Budweiser may choose to segment its market based on heavy, moderate, and light drinkers of its alcoholic beverages. This is an example of market segmentation based on
behavioristic variables
The role of export agents is to
bring buyers and sellers from different countries together and collect a commission for arranging sales.
According to the Boston Consulting Group, marketers may classify their products as all of the following except
cash contributors.
Rollins Steel Corporation, a leader in industrial supplies, has identified its auto battery unit as having a dominant market share; however, it has low prospects for growth. The unit currently generates more cash for Rollins Steel than is required to maintain its market share. According to the Boston Consulting Group, the auto battery unit would be classified as a _____
cash cow
After purchasing a new Lexus, Brandon sees an Infinity pass by on the street and begins to wonder if he made the right choice. Brandon is experiencing
cognitive dissonance
A ____ is created when a company matches its core competency to opportunities it has discovered in the marketplace.
competitive advantage
Tiffany's markets its exclusive jewelry and gifts to high-income individuals interested in high-quality products and a well-known brand name. It uses the same marketing mix to reach this market. Tiffany's uses a(n) ____ strategy.
concentrated targeting
In shopping for a new laptop computer for her master's degree program, Jocelyn has narrowed the alternatives to four brands. She is considering Dell, Toshiba, Sony, and Hewlett-Packard. These four brands make up Jocelyn's
consideration set.
The product variable of the marketing mix can include all of the following except
consumer perception of the product price.
Apple has made a success from anticipating what consumers would want in new technological advances, convenience, and ease of use. The introduction of the iPad was an example of a _____ for Apple, something that an organization does extremely well and may give a company an advantage over its competition.
core competency
The reputation and well-known brand name of Rolex watches represents a ____ for Rolex.
core competency
The three primary bases for developing prices are
demand, competition, and cost
Many health care companies are making adaptations to meet the needs of an aging population as the demand for medical services and products such as diabetes supplies increases. This change in marketing strategy is best explained by a change in
demographics
After a firm has identified an appropriate targeting strategy, the next step in the target market selection process is
determining which segmentation variables to use.
After an organization has determined which of the many segmentation variables it will use, the next step in the target market selection process is
developing market segment profiles.
The fact that senior citizens are charged a lower price at movie theaters than younger adults is an example of ____ pricing.
differential
Mattel views the toy market as composed of four age groupings, each with different needs and desires. Mattel is using a(n) ____ targeting strategy for its groups, which are known as _____.
differentiated; market segments.
The purpose of market segmentation is to
divide a total market to enable a marketer to develop a more precise marketing mix.
Retro64 distributes free downloadable versions of its computer games for a very short time. These efforts have a primary promotional objective of
encouraging product trial.
Justin is purchasing his third car in the past five years. He has been a car enthusiast ever since he was a young boy. Justin likes to spend his free time looking at car magazines, going to car shows, and watching NASCAR. Justin's interest in cars is referred to as
enduring involvement.
The forces that affect foreign markets may differ dramatically from those affecting domestic markets. This makes a careful ____ a critical part of a successful international marketing strategy.
environmental analysis
A customer shopping for a fax machine tells a salesperson that it is important for the fax machine to have several attributes. It must use plain paper, be able to make copies, be compatible with all other fax machines, and not require a separate phone line. The buyer has expressed his or her
evaluative criteria
When more information is needed about a problem and a tentative hypothesis needs to be made more specific, marketers usually conduct ____ research.
exploratory
A market orientation is an organization-wide effort that includes all of the following activities except
focusing on the marketing department only.
Tony & Guy is a global hairdressing and education business headquartered in England. It has recently opened salons in Mongolia, adding to its numerous salons worldwide. Tony & Guy allows foreign businesspeople to use its name, logo, methods of operation, advertising, and products. In exchange, Tony & Guy receives a financial commitment and an agreement to conduct business in accordance with its standard of operations. Tony & Guy is engaging in
franchising
All of the following are marketer-dominated sources of information except
friends.
Systems such as PRIZM and Acorn provide companies with lifestyle and demographic information about neighborhoods throughout the United States. This information is used to aid
geodemographic segmentation
Northeastern University and Penn State University both offer online MBA programs that are available to students around the world. This is an example of
globalization.
According to the Boston Consulting Group, question marks are characterized as products
having a small share of a growing market and requiring large amounts of cash to build market share.
The first step in the target market selection process is
identifying an appropriate targeting strategy.
When products are introduced into one nation from another, acceptance is far more likely
if there are similarities between the two cultures.
The real value of marketing research to the organization can best be measured by
improvements in the ability to make decisions.
Marissa goes to Target to purchase school supplies for her two children. As she is approaching the check-out counter, she sees a vase she just has to have and buys it immediately. Marissa's purchase of the vase is an example of
impulse buying
When using credit to make purchases, consumers are
increasing current buying power at the expense of future buying power.
According to Maslow's hierarchy of needs,
individuals first satisfy the most basic needs and then try to fulfill needs at the next level up.
During the evaluation of alternatives stage of the consumer buying decision process, framing most likely influences the decision process of ____ buyers.
inexperienced
Problem location and definition is the first step toward finding a solution to a marketing problem or launching a research study. The first sign of a problem
is typically a departure from some normal function, such as a failure to attain objectives.
The World Trade Organization accomplishes all of the following except
lending money to businesses interested in developing international markets.
If Caterpillar wished to reach the market in Malaysia but was leery of a direct investment in the country, it might provide a Malaysian operation with the knowledge to produce and market its products in exchange for a commission. This type of arrangement is called
licensing.
Cole's smart phone is two years old and he would like to have a new one. This time, he wants to make sure that it has a longer battery charge and better geographic coverage since he is traveling three days a week for his new job. Cole is most likely to use _____ for this purchase.
limited decision making behavior.
If Procter & Gamble, the maker of Dawn dishwashing liquid, wants to know what percentage of customers examine product labels before making a product selection in the grocery store, it can best gain this information through
mail surveys.
Family life cycle is most typically based on
marital status and age of children.
The process of putting marketing strategies into action is called
marketing implementation
J.C. Penney is presently involved in a process of assessing marketing opportunities and resources, determining marketing objectives, re-defining marketing strategies, and developing guidelines for implementation and control. Thus, J.C. Penney is involved in
marketing planning
Customer costs include anything the buyer must give up in order to obtain the benefits the product provides. The most obvious customer cost is
monetary price
If a company segments its market on the basis of their reasons for purchasing a particular product, the primary segmentation variable in use is
motives
Firms that have operations or subsidiaries located in many countries are referred to as
multinational enterprises.
Evaluative criteria for brands within the consideration set are both
objective and subjective.
An item on the University Book Store's survey asks respondents to tell the store, in their own words, what they like least about textbook shopping. This item would be an example of a(n) ____ question.
open-ended
Favorable conditions in the marketplace environment that could produce business rewards for the organization if acted upon properly are called
opportunities.
Designing research procedures that produce reliable marketing data means that
others using the same procedure will get almost identical data.
Paid personal communication that seeks to inform customers and persuade them to purchase products in an exchange situation is
personal selling.
Marketing channels create four types of utility for consumers including
place, time, possession, and form.
All the elements, individuals, or units of interest to researchers for a specific study are called the
population
Procompetitive laws are those designed to
preserve competition
Marketers who attempt to influence and change the various environmental forces have a(n) ____ response to these forces.
proactive
The five major stages of the consumer buying decision process, in order, are
problem recognition, information search, evaluation of alternatives, purchase, and postpurchase evaluation.
The term dumping refers to the sale of
products sold in foreign countries at unfairly low prices.
Today, establishing long-term, mutually beneficial arrangements in which both the buyer and seller focus on value enhancement through the creation of more satisfying exchanges is known as
relationship marketing
Students from a marketing research class are involved in a project about the level of sleep, exercise, and stress individuals experience. They have decided to collect data from three student-center areas on campus. When they analyze their data they find the responses are very similar across the three areas. The students feel comfortable they have achieved which of the following with regard to their data?
reliability
An overall plan for obtaining the information needed to address a research problem or issue is called the
research design
Consumers tend to remember information inputs that support their feelings and beliefs and forget inputs that do not. This is known as selective
retention.
While shopping at a local grocery store, Taylor sees a display of his favorite brand of energy drink. He buys some to take home for the weekend. This purchase process would be described as
routinized response behavior.
When working as a summer intern for a local retail store, Jan Halverson was sent to the library to look up data on population forecasts for the city of San Antonio. The population information she found would be considered
secondary data.
Characteristics of individuals, groups, or organizations that are used for dividing a total market into smaller homogeneous groups are called ____ variables.
segmentation
Perception is a three-step process that involves
selecting, organizing, and interpreting information inputs.
When Anheuser-Busch added Michelob Light to the line of Michelob beers, the firm was using ____ branding.
selective licensed family individua
The Pharmaceutical Research and Manufacturers of America sets guidelines for its member firms to follow regarding the use of unethical practices. Thus, it is engaging in
self-regulation.
The three major categories of influences on the consumer buying decision process are:
situational influences, social influences, and psychological influences.
A consumer's buying decisions are affected in part by the people around him or her. Such people and the forces they exert on an individual buyer are called
social influences.
If a certain country considered handshakes in business transactions to be taboo and preferred to use nodding, this would be an example of differences in ____ forces.
sociocultural
Marketers of computer software, music CDs, and books are particularly affected by cultural differences in
standards regarding intellectual property.
The buildup approach measure of sales potential
starts with forecasts about demand for a specific product within a relatively small area.
The overall role of promotion is to ________________and to build and enhance relationships with current and potential customers.
stimulate product demand
Kraft purchased the Duracell Battery Company and now operates this division as a separate profit center within the firm. In this example, Duracell is a(n) ____ unit of Kraft.
strategic business
An analysis of ____ examines internal factors that give the organization certain advantages and disadvantages in meeting the needs of its target markets.
strengths and weaknesses
Relying on executive judgment for forecasting may be adequate when
the executive has considerable experience and product demand is relatively stable.
The major disadvantage of a mail survey versus a telephone or personal survey is
the failure of respondents to return the questionnaire.
Distribution, price, promotion, and product are all elements of
the marketing mix
You will give the keynote address at the annual meeting of the American Manufacturing Association. You realize most of the attendees think marketing is just advertising. So, you decide to start your keynote address by defining what marketing is in order to set the proper context for your speech. You define marketing as:
the process of creating, distributing, promoting, and pricing goods, services, and ideas to facilitate satisfying exchange relationships with customers.
Which of these statements is not true about business markets?
the purchase is always made by more than one individual
Marketing research is best defined as
the systematic design, collection, interpretation, and reporting of information to help marketers solve specific marketing problems or take advantage of market opportunities.
Which of the following is not a characteristic of a consumer market?
their purchasing decisions are always made by only one individual
Generally, customers are most likely to rely on the price-quality association when
they cannot judge the quality of the product for themselves.
Channel decisions are important to marketers mostly because
they involve long-term commitments and affect customer accessibility
Marketers improve their ability to establish prices appropriately when
they know prices charged for competing brands
A(n) ____ is an organization that links buyers and sellers in different countries but is not involved in manufacturing.
trading company
All of the following are steps in the marketing research process except
understanding your customer
If Morton Salt saw all table salt customers as pretty much alike and thus offered only one marketing mix, it would be using the ____ strategy.
undifferentiated
To find a target market, a firm can use one of these targeting strategies.
undifferentiated strategy, the concentrated strategy, and the differentiated strategy.
A firm has conducted market research and found that customer satisfaction with its product is quite high. Nonetheless, repurchase behavior is very low. The research design evidently has a problem with
validity.
Private distributor brands are owned by
wholesalers or retailers.
The use of marketing research is
widespread throughout business and nonprofit organizations.
Shelby's new job with the federal government provides a comfortable income and a fairly stable income. She would like to buy a new car now that she has a job; however, Shelby hesitates to purchase a new car because she is concerned about how poor economic conditions may affect her position in the future. Shelby lacks
willingness to spend.
Your competition is beating you on price in your most important product market. In response, you decide to launch a new ad campaign focusing your customers on the price attribute of your marketing mix. You need a catchy slogan that conveys the attractiveness of your product's pricing. Which of the following slogans should you use to convey this message most effectively?
"Expect More. Pay Less"
