MARKETING 3340 FINAL

The team-based new product approach saves times and increases effectiveness because departments work closely together in __________.

Cross-functional teams

Which of the following is a commercial source of product information?

Dealer and manufacturer websites and mobile sites

Customer involvement has a positive effect on the new product development process and product success.

True

Specialty products are consumer products and services that customers generally buy __________.

Without making comparisons

Rather than just creating and placing "TV ads" or "print ads" or "Snapchat branded story ads," many marketers now view themselves more broadly as ________ managers.

content marketing

Which of the following is a transaction site?

eBay

Unsolicited and unwanted commercial e-mail is referred to as ________.

Spam

The basic notion behind the concept of "consumer surplus" is what exactly? If the consumer believes the value of a new automobile, for example is $20,000 and the cost to produce is 12,000, the manufacturer margin is $2,000 and the retail margin is $1,500, how much is the consumer surplus?

$4,500

CVS Pharmacy sells Gillette Sensor Excel 5-Pack of Blades for $14.50. It purchased these blade packs from a distributor and makes 25% margin on the retail price. The distributor makes 10% for handling the blades, distributing them and managing returns and defects. At what price goes Gillette sell the blade packs to the distributor?

$9.79

Break-even is a fundamental pricing concept that is important to ascertain the volume that must be sold before beginning to make profit. The formula is straightforward: fixed costs/contribution margin. Alcon sells its daily contact lenses for $80.00 per monthly pack of 30 lenses. It has costs to consider such as rent for the sales office of $1,250 per month, marketing management of $1,100 per month, variable production costs of $32.00 per pack and advertising costs of $500,000 per year. How many units most Alcon sell annually to break even?

917

Which of the following would be considered an upstream partner in a company's supply chain?

A firm that provides technical expertise in the production of a product

Explain the major benefits of direct and digital marketing for both customers and sellers.

Able to target more effectively

Which of the following is true of advertising in the new marketing communications model?

Advertisers are increasingly shifting toward digital media.

"Informing the target market about a price change for a signature cookie dough product through a national TV campaign within three months" is an example of a(n) ____________ objective.

Advertising

Product planners must build a(n) ____________ product around the core benefit and actual product by offering additional consumer services and benefits.

Augmented

Which of the following statements is true of viral marketing?

Because customers find and pass along the message, viral marketing can be very inexpensive.

A(n) __________ is a descriptive thought that a person has about something:

Belief

Which of the following is a direct digital marketing tool?

Blogs

Which of the following is true of marketing through blogs?

Blogs are an inexpensive yet personal way to connect with consumers.

Online visitors can't buy anything at ESPN.com. Instead, the site creates a virtual experience for sports enthusiasts and fans that can be customized to meet their needs. This is most likely an example of a(n) ________.

Branded community Website

Experimental research is best suited for gathering __________ information.

Casual

Which of the following sets the price ceiling for a product's pricing?

Consumer perceptions of value

Which of the following is most likely true about the digital age with regards to marketing?

Digital networks allow marketers many ways to build customer relationships.

________ marketing involve engaging directly with carefully targeted individual consumers and customer communities to both obtain an immediate response and build lasting customer relationships.

Direct and digital

Changed in technology and the explosive growth of direct and online marketing are having a profound impact on the nature and design of marketing channels. One major trend is toward __________ insofar as product or service producers cut out intermediaries and go directly to final buyers or when radically new types of channel intermediaries displace traditional ones.

Disintermediation

Which of the following account for the largest portion of firms' online advertising spending?

Display and search-related advertisements

A(n) ____________ becomes a motive when it is directed toward a particular stimulus object.

Drive

A market researcher wants to find the cause-and-effect relationship between using organic ingredients in food and the subsequent consumption by customers. He invites ten respondents to his research firm and asks them to taste two identical dishes. The dishes were prepared in a similar manner, but one has natural herbs for flavoring, and the other has trifocals flavors. This is an example of ___________

Experimental research

According to Maslow's theory, safety and social needs must be fulfilled after self-actualization needs.

False

Consumers rarely compare shopping products before purchasing them.

False

Pricing strategies usually remain the same as a product passes through its life cycle.

False

Social class is determined by a single factor, such as income, but is measured as a combination of occupation, income, education, wealth, and other variables.

False

The demand curve shows the number of units the market will buy in a given time period at similar prices.

False

Customers at Carat, a premium jewelry store, are encouraged to make an appointment before a visit so that a customer service representative is assigned to them. These representatives help every customer make a purchase that meets his or her needs and budget after considering numerous options. The different styles and special features of the jewelry are explained to each customer to aid the purchase decision. In this case, Carat is an example of a(n) ________.

Full-service retailer

The primary role of marketing is to:

Generate profitable revenue

When demand hardly changes with a small change in the price of a product, the demand for the product is best described as ________.

Inelastic

Producers of popular beverages often partner with global music channels to target consumers through a variety of promotional events and advertisements. This approach to marketing is referred to as ________ segmentation.

Intermarket

Susan Hart, the manager of a children's boutique, collects data from her monthly records of sales, costs, and cash flow. In this case, Susan is making use of ________ databases.

Internal

Which of the following is true of viral marketing?

It is the digital version of word-of-mouth marketing.

What is a disadvantage of a viral success?

Marketers have little control over where the message ends up.

Backpacks Galore has an online tool that offers a wide variety of backpacks for direct purchase. The tool even allows customers to select an option to monogram their backpacks. Which of the following has Backpacks Galore most likely used?

Marketing website

When the size, purchasing power, and profiles of a market segment can be determined, the market segments is said to be __________.

Measurable

Which of the following terms best describes the process of designing and producing a container or wrapper for a product?

Packaging

Pat thought he had received the best deal on his new car. Shortly after buying the car, Pat started to notice certain disadvantages of his new car as he learned more about other cars available in the market. Pat is experiencing:

Post-purchase dissonance

Jeff is in the process of buying a new car. He carefully analyzes the features that he wants in a car, and perceives significant differences in price, quality, and features among three of his favorite models. He rates the models on each factor and ranks them in the order of his preference. To which of the following stages of the buyer decision process will Jeff most likely proceed next?

Purchase decision

Many companies are taking a ____________ approach, viewing quality as an investment and holding quality efforts accountable for bottom-line results.

Return-on-quality

In a marketing communications mix, ___________ refers to any short-term incentive that encourages the purchase or sale of a product or service.

Sales promotion

Surf'a Up, a family-owned business, offers a free surf lesson with the purchase of any surfboard over $200 during the month of May. This is an example of which promotion mix element?

Sales promotion

Pizza Hut, now called The Hut was challenged with whether or not to enter the pizza delivery service when most if not all of its franchisees were accustomed to the prestige and success of in-store dining. What did Steve Reinemund and the leadership team do to address this challenge and why did they have few choices but to move forward?

Split the model into sit-down and delivery

___________ is a method of gathering primary data that involves asking people questions about their knowledge, attitudes, preferences, and buying behavior.

Survey research

Lifetime Value Determination: T-Mobile is interested in the segment it should target based upon their lifetime value. One is the affluent segment that spends $140/month on combined services. The other is the middle-income segment that spends $90/month on services. The affluent segment has an attrition rate of 15% per year while the middle-income segment has a 5% attrition rate each year. Attrition is defined as the number of customers who discontinue service each year, switch or otherwise stop using T-Mobile. Which segment should T-Mobile target, assuming my a lifespan period of 5 years.

The affluent based on LTV of $600

How had the internet most likely affected direct and digital marketing?

The expenditures on direct and digital marking have increased.

The Red Bull case described a challenging situation for this brand, even though the business had grown substantially. The marketing team was faced with what choices and how did they determine which was the best long-term approach for the brand?

The invested more in extreme sports

A company's total marketing communications mix consists of a specific blend of advertising, sales promotion, public relations, personal selling, and direct-marketing tools that the company uses to communicate customer value and build customer relationships. Which of the following terms he's described this set of communications tools?

The promotion mix

As mass markets have fragmented, marketers have shifted away from mass marketing.

True

Big data refers to the huge data sets generated by sophisticated information generation, collection, storage, and analysis technologies.

True

Digital marketing through online, mobile, and social media provides a sense of brand engagement and community.

True

Omni-channel retailing aims to create a seamless cross-channel buying experience that integrates in-store, online, and mobile shopping.

True

Clenzo is a company that provides house cleaning services in major urban and suburban areas. Marketers at Clenzo developed a short, humorous video promoting the company's services and hope that customers who see the video will be so entertained that they will pass the video on to their friends and colleagues. The marketers at Clenzo are using techniques to facilitate ________.

Viral marketing

As the marketing manager at Secure Services, a home security systems company, you have been asked to devise a new sales and marketing strategy for a new line of sophisticated alerting systems called "Imperio." These alerting systems can be programmed to meet individual specifications, have special child lock features, and require the thumb impression of the homeowner(s) for a visitor to be allowed inside the house. The two previous promotional ventures failed to elicit much consumer response because most people were unaware of the benefits of such devices except for those consumers who were specifically looking for them. Can the use of email marketing by Secure services be justified for its current marketing effort? Why or why not?

Yes, email is an effective tool for this purpose

Dividing buyers into groups based on their knowledge, attitudes, uses, or responses to a product is called ________ segmentation.

behavioral

Spartan Sportsgear is a company that sells sports equipment for adventure sports. It recently launched ExtremeSpartan.com to showcase products and provide testimonials of famous adventure sports athletes who use Spartan's products. It also includes videos and blogs. Which of the following best describes ExtremeSpartan.com?

branded community Web site

Excel Enterprises uses a Web site, online social networks, and print advertisements to promote its products. Since Excel Enterprises practices integrated marketing communications, all these different brand contacts maintain ________ in design and tone.

consistency

More than 80 percent of McDonald's restaurants worldwide are owned and operated by franchisees. This illustrates a(n) ________ marketing system.

contractual vertical

Which of the following is the primary purpose of branded community websites?

creating customer-product engagement

Vertical conflicts in distribution channels are conflicts that occur between ________.

different levels of the same channel

Controlling the ingredients that go into certain products and reducing the level of advertising "noise" are part of proposals relating to the consumer's right to ________.

influence marketing practices in ways that will improve quality of life

Rage, a leading motor vehicle manufacturer, introduces a new superbike model. It invites proposals from independent dealers who are willing to set up exclusive showrooms that only sell Rage's superbikes. Chosen dealers will sell and service the superbikes, and Rage will oversee national advertising. This is most likely an example of a(n) ________.

manufacturer-sponsored retailer franchise system

Which of the following is the right order of the steps that companies generally follow in designing a customer-driven marketing strategy?

market segmentation, market targeting, differentiation, and positioning

The first Target store opened in 1962. Its initial strategy was to set prices low to attract a large number of buyers quickly and win a large market share. This is referred to as ________.

market-penetration pricing