Marketing True/False Test 2

if Burger King added tacos to the burger oriented menu in its existing restaurants, it would be seeking "market development opportunities

False

is a product market segment is homogeneous within it is called a substantial target market

False

it is usually necessary for a firm to use a family brand rather than individual brands if it plans to offer products at different quality and price levels to different target markets

False

a close buyer seller relationship in a business market may reduce a firms flexibility

True

"Positioning" means using a map to show where a firm's products are distributed geographically

False

A firm which tries to increase sales by selling new products in new markets is pursuing "market development" opportunities

False

a market is a group of two or more sellers who offer substitute ways of satisfying customer needs

False

a service is not a product because services don't include any physical good

False

according to out class discussion, the consumer product classes are based on why consumers use products

False

brand equity is likely to be lower is customers insist on buying a product and retailers are eager to stock it

False

brand insistence means customers usually choose the brand over other brands perhaps out of habit or past experience

False

business product classes are based on the way that buyers shop for and buy products, because there is much more shopping for business products compared to consumer products

False

capital items which are more expensive and longer-lived than installations are called accessory equipment

False

consumer products that a customer really wants and is willing to make a special effort to shop for and compare different possibilities are speciality products

False

consumers usually plan and shop for impulse products

False

dealer brands are brands created by producers

False

dependability of supply is usually much less important that price for most business customers

False

expense items are depreciated over many years while capital items are charged off as they are used usually in the year of purchase

False

few purchasing managers have been able to turn over any of their order placing to computers because so few organizational purchases are routine

False

for professional services which are needed only occasionally and require special skills, it is usually better for a firm to have its own employees provide them than to use outsiders

False

goods are intangible and services are tangible

False

manufacturer brands are always advertised and distributed more widely than dealer brands

False

market segmentation says that target marketers should develop one good marketing mix aimed at a fairly large market

False

negotiated contract buying would be used when the buyer knows precisely what he wants and the requirements of the job aren't likely to change as the job is done

False

personal selling is important for new unsought products but it tends not to be important for regularly unsought products

False

shopping for a speciality product involves comparing the special features of different brands

False

shopping products that a customer sees as basically the same and wants at the lowest price are heterogeneous shopping products

False

speciality products are usually only purchased one in a lifetime, so the customer must search extensively before buying

False

straight rebuy buying takes longer than modified rebuy or new task buying and offers more chance for promotion impact by the seller

False

the martinis company has just modified and enlarged its product line to meet the changing needs of its current customers. this is an example of "market development"

False

the process of organizational buying is entirely different from consumer buying

False

the product area is concerned with what goods and services are produced but not with the decisions about installation, instructions on use, packaging, brand name, and warranty or after sale service

False

the product life cycle concept is concerned with planning for product recycling to protect the environment

False

the universe product code has been opposed by large supermarket chains because it slows down the checkout process

False

there are more final consumers than business and organizational customers, so more is purchased by final consumers

False

there is no real reason for a firm to use individual brands rather than a family brand-- except to avoid confusion

False

when comparing two similar products, the product with the most features is the higher quality product

False

"positioning" shows how proposed and/or present brands are located in a market--as seen by customers

True

A "substantial" market segment is one which is big enough to be profitable

True

Finding "competitive advantages" is important because they are needed for survival in increasingly competitive markets

True

Just-in-time relationships between buyers and sellers usually require operational linkages and information sharing

True

Like final consumers, organizations make purchases to satisfy specific needs, but their basic need is for goods and services that will help them satisfy their own customers or clients.

True

Product means the need-satisfying offering of a firm

True

When a firm tries to increase sales by offering new or improved products to its present markets, this is called "product development"

True

a firm can lose all rights to a brand name is the name becomes a common descriptive term for that kind of product

True

a firms relevant market for finding opportunities should be bigger than the present product market but not so large that it couldn't expand and still be an important competitor

True

a good market segment should be composed of people who are as homogeneous as possible with respect to their likely responses to marketing mix variables

True

a manager who aggregates all potential customers into a single product market segment is likely to find that the segment is not homogeneous

True

a marketing manager should make sure the firms brand names don't become so familiar that they become common descriptive terms for certain kinds of products

True

a product assortment is the set of all product lines and individual product that a firm sells

True

a product might involve a physical good, service or a combo of the two

True

a product should be thought of as potential customer satisfactions or benefits

True

a product which has no brand other that the identification of the contents is a generic product

True

a requisition is a request to buy something

True

a warranty explains what the seller promises about its products

True

although the total industry demand for business products may be inelastic, the demand facing individual sellers may be extremely elastic

True

because packaged products are regularly seen in retail stores a good package may give a firm more promotion effect than it could possibly afford with advertising

True

brand familiarity means how well customers recognize and accept a company brand

True

brand names that convey a positive image in one language may be meaningless in another

True

brand preference means customers usually choose the brand over other brands perhaps out of habit or past experience

True

branding includes the use of trademark and brand names to identify a product

True

branding would be more likely to be successful if dependable and widespread availability of a product is possible

True

business product classes are based on how buyers see products and how the products are to be used

True

consumer product which offer really new ideas that potential customers don't know about yet are new unsought products

True

consumer products that a customer feels are worth the time and effort to compare with competing products are shopping products

True

consumer products which a customer buys on sight as unplanned purchases, may have bought the same way before, and wants right now are impulse products

True

consumer products which are bought often, routinely and without much thought are staples

True

convenience products include staples, impulse products, unplanned purchases, and emergency products

True

cost considerations usually favor more aggregating and larger market segments but smaller segments may be required to satisfy needs more exactly

True

differentiation emphasizes uniqueness rather than similarity

True

differentiation means that the marketing mix is distinct from and better hat what is available from a competitor

True

differentiation often requires firm to fine-tune its marketing mis to meet the specific needs of its target markets

True

dimensions that should be looked at when segmenting consumer markets are: geographic location and other demographic characteristics, behavioral needs, urgency to get needs satisfied, and willingness to compare and shop

True

effective market segmentation is a two step process that starts with naming broad product markets and then goes on to segmenting these broad product markets into more homogeneous submarkets

True

emergency products are purchased only when the need is great and urgent and therefore price is usually not very important

True

even consumers who don't pay attention to unit pricing may benefit from the price competition it encourages

True

expense items which have had more processing than raw materials and become part of a finished product are component parts and materials

True

family brands ma cut promotion costs because the goodwill attached to one or two products may help the others

True

firms should try to show the value of unsought products through promotion because people don't want them or know that they are available

True

for different people, the same product might be a convenience product, shopping product, or a speciality products

True

good market segments should be homogeneous within, heterogeneous between, substantial and operations

True

ideally, segmenters should start with the ice that each person is one of a kind and can be described by a special set of dimensions that may be used to aggregate similar customers together

True

in cooperative relationships in a business market, the buyer and seller work together to jointly achieve both mutual and individual objectives

True

installations are long lasting capital items such as building and land rights, custom made equipment, and standard equipment

True

it may be economically impossible for small firms to offer strong warranties

True

marketing opportunities involving present products and present markets are called "market penetration" opportunities

True

modified rebuy relationships usually occur because of dissatisfaction with a current suppliers ability to fulfill the needs of organizational buyers

True

most retail and wholesale buyers seem themselves as purchasing agents for their target customers

True

multiple buying influence means that the buyer share the purchasing decision with several people

True

one of the difficult things about segmenting is that not every customer will neatly fit into some market segment

True

one of the important differences between raw materials and other business products is that raw materials usually have to be graded

True

organizational buyers are also referred to as industrial or intermediate buyers

True

organizational buyers often but on the basis of a set of purchasing specifications

True

products which a consumer needs but isn't willing to spend much time shopping for are convenience products

True

professional services are usually expense items which support the operation of a firm

True

purchasing managers are buying specialists for organizations and may not have a lot of power

True

raw materials are unprocessed expense items such as farm products and natural products

True

shopping products that a customer sees as basically the same and wants at the lowest price are homogeneous shopping products

True

supplies (business products) are expense items that do not become part of a final product

True

the Lanham Act spells out the exact method for protecting registered trademarks, but does not force firms to register their trademarks

True

the battle of the brands is the competitions between dealer brands and manufacturer brands

True

the contractual purchasing of raw materials may well start out as a new task buying situation but may end up n the long term as a straight rebuy decision is a supplier continually meets its supply and delivery commitments for raw materials

True

the demand for business products derives from the demand for final consumer products

True

the four groups of consumer products are: convenience, shopping, speciality, and unsought

True

the internet is making even straight rebuys more competitive

True

there are two broad groups of product classes based on the type of customer that will use the product

True

to protect themselves from unpredictable events, most purchasing managers seek several dependable sources of supple

True

total distribution costs may increase because of packaging

True

unit pricing means placing the price per ounce, or some other standard of measure, on or near the product

True

using one or two demographic dimensions to describe market segments usually doesn't provide enough detail for planning a marketing strategy

True

when firms are confronted with securing new equipment, machinery and building that are considered to be strategic in nature, a new task buying situation usually is recommended

True

when selling to the government customers, both bid buying and negotiated contracts are common

True

without promotion, unsought products will probably stay unsold

True

branding is more likely to be successful if the product is the best value for the price and quality can be consistently maintained

`True

During the sales decline stage of the product life cycle, no firm can earn a profit

false

During the various stages of the product life cycle, the attitudes and needs of target customers do not change

false

Sales and profits generally decrease continually throughout the product life cycle

false

a good business manager should adhere to the idea "if it aint broke, don't fix it"

false

a good marketing strategy will work all throughout the different stages of the product life cycle

false

a marketing manager who is willing to spend enough on persuasive promotion can usually get consumers to buy anything the company chooses to produce

false

according to our class discussions this session, the proper function of marketing is to persuade consumers to buy what firms want to sell

false

as the product life cycle moves on, the marketing manager should expect to see the market move closer to monopoly

false

even in a full scale market test the firm is testing only the product, not the whole marketing mix

false

having patent on a new product provides very strong protection in slowing down competitors

false

in general, product life cycles appear to be getting longer in recent years

false

in the market growth stage of the product life cycle, firms usually earn smaller profits than they did in the market introduction stage because new competitors enter the market

false

mass marketing means focusing on some specific customers, as opposed to assuming that everyone is the same and will want whatever the firm offers

false

monopolistic (imperfect) competition may result in high costs and therefore it does not do a good job of serving consumers the way they want to be served

false

new product development usually fits into the old routines of a firm, so its not necessary for top management to support new product development in any special way

false

sales growth is usually faster when the product is incompatible with the past values and experience of the target market

false

setting a low price for a firms offering is a sure way of creating high customer value

false

the first step in new product development is evaluating ideas

false

the four P's of he marketing mix are people, products, price and promotion

false

the length of each stage in the product life cycle is set

false

the market maturity stage of the product life cycle has very low promotion expenditures, little price competition and rising industry profits

false

the market maturity stage of the product life cycle rarely lasts more than one or two months

false

the probable length of the product life cycle has little effect on strategy planning

false

the product life cycle shows that sales of an individual firms product follows a general pattern -- which is very useful for marketing strategy planning

false

the risks and costs of failure in new-product development are minor when one considers the likely rewards

false

the smaller the comparative advantage pf a new product over those already on the market, the faster its sales will grow

false

when introducing a really new product, the marketer should be concerned about building channels of distribution but not about promotion

false

when planning new products, managers need not be too concerned about safe design because it is each customers responsibility to decide what products are safe to buy and use

false

a fad cycle is shorter than a fashion cycle

true

a firm may introduce or withdraw a product during any stage of the product life cycle

true

a firm that adopts the marketing concept will aim all its efforts at satisfying customers, while trying to make a profit

true

a marketing plan usually spells out the time schedule for a marketing strategy as well as the time related details

true

a marketing program blends all of a firm marketing plans into one big plan

true

a marketing strategy is composed of two interrelated parts--a target market and a marketing mix

true

a new product development process helps make sure that new ideas for products are carefully studied and good ideas are marketed profitably

true

a sales forecast is an estimate of how much an industry or firm hopes to sell to a market segment

true

customer value is the difference that a customer sees between the benefits of a firms offering and the costs of obtaining those benefits

true

during the market growth stage of the product life cycle, industry profits usually reach their peak and begin to decline

true

experts generally estimate that 80 percent of all new consumer packaged goods brands fail

true

firms should try to develop marketing mixes that make the most of the market growth stage of the product life cycle when profits are highest

true

how quickly a new product will be accepted by customers and how quickly competitors will follow with their own version of a product are important factors when planning the best strategy for a new product

true

if an individual is injured by a defective or unsafely designed product, the sellers legal obligation to pay damages is called product liability

true

if the prospects in some product market are poor a firm may need a phase out strategy

true

in the U.S. the aim of the economic system has been to satisfy consumers needs as they -- the consumers-- see them

true

in the new product development process discussed in class, the burden is on the new product idea to prove itself or be rejected

true

industry profits usually decline steadily during the market maturity stage of the product life cycle

true

its possible for a firm with a mature product in the US to experience new growth with the same product in international markets

true

making sure that the customer benefits of a marketing mix exceed the customers costs of obtaining those benefits is one way to gain a competitive advantage

true

market introduction, market growth, market maturity, sales decline are the four stages of the product life cycle

true

market potential refers to what a whole market segment might buy

true

marketing efforts help the economy grow by stimulating innovation

true

marketing often does cost too much because many firms improperly blend the four Ps and misunderstand both their customers and the marketing environment that affects their operation

true

marketing strategy planning for. product depends on where the product is in its life cycle and how fast it is moving to the next stage

true

monopolistic (imperfect) competition is caused by customer preferences not business manipulation of markets

true

product life cycles describe industry sales and profits within a particular product market, and not the sales and profits of individual products or brands

true

sales growth is faster when a new product is easy to use and its advantages are easy to communicate

true

sales growth is faster when the product can be used on a trial basis

true

test marketing can be risky because it gives information to competitors, but not testing may be even riskier

true

the legal environment sets the minimum standards of ethical behavior

true

the market introduction stage of the product life cycle is usually marked by losses, as money is being invested in the hope of future profits

true

the product life cycle is the four stages a new product idea goes through from beginning to end

true

the sales and profits of an individual brand may or may not follow the life cycle pattern of the product idea

true

the stage of the product life cycle in which competitors are most likely to introduce product improvements is the market growth stage

true

to be called "new" according to the FTC a product must be entirely new or changed in a functionally significant or substantial respect

true

to develop lasting relationships with customers, marketing orientated firms need to focus on customer satisfaction both before and after each sale

true

when a large firm has several different kinds of products, product managers or brand managers may be put in charge of each one

true