MKT 3013 Study Questions
Large retailers like Walmart have enormous channel control due to their size and power. Which type of channel arrangement does this represent?
Administered VMS
________________________ is the first step in marketing channel design.
Analyzing consumer needs
What are three major factors changing the face of today's marketing communications?
Changes in consumers, changes in marketing strategies, and sweeping changes in digital technologies
Which of the following represents the four major classifications of retail organizations?
Corporate chains, voluntary chains, retailer cooperatives, and franchise organizations
The demographic, economic, natural, technological, political, and cultural forces that affect a company's ability to serve its customers make up which of the following?
Macroenvironment
Asher Airlines instituted a marketing program whose intent is to create a relationship with customers with seat upgrades and free miles for their continued patronage. What customer relationship tool is Asher Airlines using?
Frequency marketing program
Which of the following describes a just-in-time logistics system?
Just-in-time logistics systems allow producers and retailers to carry small inventories to last for only a few days of operations.
What are the variables in a company's marketing mix?
Product, price, place, and promotion
Which of the following represent market offerings?
Products, services, information, and experiences
Retailers must decide on which three major product variables?
Product assortment, services mix, and store atmosphere
Which of the following is NOT one of the marketing management functions?
Promoting
___________________is used to build and maintain national or local community relationships and is one of the functions of public relations.
Public affairs
__________________ are limits countries can set on the amount of foreign imports that they will accept in certain product categories.
Quotas
________ products have low immediate appeal but might benefit consumers in the long run—for instance, bicycle helmets or some insurance products.
Salutory
Which of the following is the primary reason firms use competitive marketing intelligence?
To gain early insights into competitor moves and strategies, and to prepare quick responses
What is the purpose of the marketing mix as part of the overall marketing strategy?
To produce a response that influences a demand for the product from the customers the company is targeting
Which of the following statements about wholesaling is true?
Wholesalers must make decisions regarding their marketing mix
In place of traditional media, marketers are using __________________________ to engage smaller customer segments with more personalized, interactive content.
a broad selection of more specialized and highly targeted media
A company may use the promotion mix, also called its marketing communications mix, to ______________________.
engage customers, persuasively communicate customer value, and build customer relationships
In pricing innovative new products, a company can use ________ by initially setting high prices to maximize the amount of revenue from a sufficient number of buyers willing to pay the higher price.
market-skimming pricing
Geico's website is designed to quickly turn an inquiry into a sale. Geico has designed a(n) ______ website.
marketing
Companies apply ________ to dig out meaningful patterns in big data to gain customer insights and gauge marketing performance.
marketing analytics
A blog is a(n) ______.
online forum
Public relations involves building good relations with the company's various publics. What are all of the functions it includes?
press agency, product publicity, public affairs, lobbying, investor relations, and development
In ________ marketing, a company makes marketing decisions by considering consumers' wants, the company's requirements, consumers' long-run interests, andsociety's long-run interests.
societal
The ________ considers the future welfare of consumers, the ________ considers future company needs, and the sustainable marketing concept considers both.
societal marketing concept; strategic planning concept
Marketing's impact on ________ has been criticized for creating false wants and too much materialism, too few social goods, and cultural pollution.
society
Which of the following reverses the usual process of first designing a new product, determining its cost, and then asking, "Can we sell it for that?"
target costing
A variation of break-even pricing is ____________________, which uses the concept of a break-even chart that shows the total cost and total revenue expected at different sales volume levels.
target return pricing
During the presentation step in the personal selling process, the salesperson ______________.
tells the buyer a "value story"
Major advertising involve decisions about ________________________.
the objectives, the budget, the media, and the evaluation of results
ZoomShops use _____ marketing, which offers automated retailing for a variety of products.
kiosk
Like retailers, wholesalers must _____________________________.
segment and target carefully, differentiate, and position themselves effectively
Retailers always search for new marketing strategies to attract and hold customers. The major marketing decisions they face are _______________________.
segmentation and targeting, store differentiation and positioning, and the retail marketing mix
Another price adjustment strategy is ______________ pricing, where the company sells a product at two or more prices to accommodate different customers, productforms, locations, or times.
segmented
One challenge of social media marketing is _____________________
social networks are largely user-controlled
There are several strategies used to adapt product strategies to a global market. These product strategies include ____________________.
straight product extension, product adaptation, and product innovation
The Robinson-Patman Act seeks to ensure that sellers offer the same price terms to customers at a given level of trade to prevent ______________________.
price discrimination
Because social media are _____, they are ideal for starting and participating in customer conversations and listening to customer feedback.
interactive
_____________________ direct(s) its marketing activities (primarily advertising, consumer promotion, and direct and digital media) toward final consumers to induce them to buy the product.
A pull strategy
Which of the following is correct regarding the forms of direct and digital marketing?
Both the new digital and the more traditional forms of direct marketing must be blended into a fully integrated marketing communications program.
Which of the following scenarios BEST describes the societal marketing concept?
Edward's Earthware attempts to make its pottery in a way that satisfies customers but is also environmentally friendly and sustainable over the long term.
What are the three key approaches to entering foreign markets?
Exporting, joint venturing, and direct investment
In what three different ways can companies manage their international marketing activities?
First organize an export department, then create an international division, and finally become a global organization.
GEICO, the number-two auto insurer with $13 billion in revenue last year, spent $0.8 billion on advertising that year and plans to continue spending the same percentage of sales on advertising next year. The average advertising-to-sales ratio for the insurance industry is 0.1 percent of sales. If GEICO projects $16 billion in sales next year, using the percentage-of-sales method of advertising budgeting, how much will the company budget for advertising if basing it on projected sales?
GEICO's advertising-to-sales ratio for last year is 0.06150. Using the advertising-to-sales ratio for last year, GEICO will budget $1.0 billion for advertising next year.
_________________________ eliminated trade barriers and investment restrictions among three large global countries while establishing a single market of 487 million people who produce and consume over $23 trillion of goods and services annually.
NAFTA
An international company has appointed a CPO to ensure the privacy and confidentiality of the consumer data it collects. Which of the following is the CPO MOST likely to do as a function of his or her job?
Inform customers of the company's privacy policy
Producers of a strong brand sometimes sell it to dealers only if the dealers will take some or all of the rest of its line. This is known as full-line forcing. Which of the following statements is true regarding full-line forcing?
It may or may not be legal
Which of the following is a reason that producers use marketing channels and channel intermediaries?
Marketing channel members are able to transform the assortments of products made by producers into the assortments wanted by consumers.
_________ include biases against a company's bids, restrictive product standards, or excessive host-country regulations or enforcement.
Nontariff trade barriers
______ means integrating all available shopping channels and devices into a seamless customer shopping experience.
Omni-channel retailing
Which of the following best explains the new view of marketing.
Satisfying customer's needs
_________________marketing means that the company should define its mission in broad social terms rather than narrow product terms.
Sense-of-mission
Which of the following is NOT a step in the strategic planning process?
Set revenue and financial goals
Assume that a customer shops at a local grocery store spending an average of $150 a week, resulting in a retailer profit of $40 each week from this customer. Assuming the shopper visits the store all 52 weeks of the year, calculate the customer lifetime value if this shopper remains loyal over a 10-year life span. Also assume a 3 percent annual interest rate and no initial cost to acquire the customer.
The customer yields $2080 per year in profits for this retailer
Using the BCG growth-share matrix as a guide, Masumura Technologies identified question marks in its business portfolio but is currently maintaining its market share. At a recent meeting with the company's senior management team, the CEO of Masumura and her team members decided to allocate all of the company's profits toward the growth and expansion of these question marks, in order to cause the question marks to become stars. What is likely to happen to this company?
The growth of the company will be unpredictable because there is no guarantee that a question mark will become a star.
How has the internet MOST affected companies and customers?
The internet has allowed consumers to take marketing content and share it.
The key to learn about and engage with individual customers is to blend the new digital technologies and approaches with traditional marketing to create_______________________.
a smoothly integrated marketing strategy and mix
In going beyond greening, companies can develop ________, which serves as a guide to the future and shows how the company's products and services, processes, and policies must evolve and what new technologies must be developed to get there.
a sustainability vision
Through sustainable marketing, both businesses and consumers ___________________.
are both called to more responsible actions
Which of the following generational groups represents one of the most powerful forces shaping the marketing environment?
baby boomers
Distribution channels are complex ______________ in which people and companies interact to accomplish individual, company, and channel goals.
behavioral systems
The best ________ is the one that best fits the company's strengths and weaknesses to opportunities in the environment.
business portfolio
In the whole-channel view of distribution, the first link, ________, move(s) company products from points of production to the borders of countries within which they are sold.
channels between nations
________ includes practices such as falsely advertising "factory" or "wholesale" prices or a large price reduction from a phony high retail list price.
Deceptive pricing
Chicago's Best Pizzeria has been operating on the north side of Chicago for more than 30 years. Its target market includes young urban professionals who wantnew-style organic pizzas with exotic ingredients. However, in recent years, the population in the pizzeria's neighborhood has been shifting, and now fewer young urban professionals live there. The population has grown older and wants traditional pizza, not pizza with exotic ingredients. Which of the following identifies the pizzeria's BEST response to this situation?
Target a new market with a different product
Which marketing management orientation holds that a firm should have a customer focus to achieve sales and profits?
The marketing concept
What is the main problem that sellers suffering from marketing myopia face?
They focus more on products than on the customer's underlying need.
To ________ for customers and ________, marketers must first gain fresh, deep insights into what customers need and want.
create value; build meaningful relationships with them
The real value of marketing information rests in the _____________________.
customer insights it provides
The three major pricing strategies are ______.
customer value-based pricing, cost-based pricing, and competition-based pricing
The step in the strategic planning process that should be market-oriented, realistic, specific, motivating, and consistent with the market environment is ________.
defining the company's mission
A marketing information system (MIS) helps users analyze and use information to ________, ______________, and _______________.
develop customer insights, make marketing decisions, and manage customer relationships
New retail forms continue to emerge. However, different types of retailers are increasingly serving similar customers with the same products and prices (retail convergence), making __________ more difficult.
differentiation
________ 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 marketing
The American Marketing Association (AMA) developed a code of ethics for marketers based on three principles. These three principles are _______.
do no harm, embrace ethical values, and foster trust in the marketing system
Continually adjusting prices to meet the characteristics and needs of individual customers and situations is known as _______________________.
dynamic pricing
With companies becoming more market-oriented, the sales force plays a key role in ________ and __________________________.
engaging customers; developing and managing profitable customer relationships
Which of the following describes the type of research used to help define the research problem and suggest hypotheses?
exploratory research
Which of the following accurately describes a company's efforts to engage customers, persuasively communicate customer value, and build customer relationships?
marketing mix
The massive shift in how and where people buy calls for _________________________.
massive shifts in how store retailers operate
Websites, online advertising, email, online video, and blogs are all forms of ______.
online marketing
Another strategy for creating value and building strong customer relationships includes ________, which means working closely with others inside and outside the company to jointly engage and bring more value to customers.
partner relationship management
To avoid being intrusive and annoying, most legitimate e-mail marketers practice ______, which means sending e-mail pitches only to customers who "opt in."
permission-based marketing messages
________________________ is one major objective associated with a market-penetration pricing strategy.
winning large market share
Two major public policy and ethics issues in marketing research are ________.
intrusions on consumer privacy and the misuse of research findings
The demographic environment is of major interest to marketers because ________.
it involves people, and people make up markets
Many consumers today rent DVDs from a vending machine called Redbox, which can be found in retail stores and other locations. Redbox is type of ________ marketing.
kiosk
Which of the following represents a new trend in logistics to save costs, increase efficiencies, and gain faster and more effective access to global markets?
Outsourcing logistics functions
How does the new concept of marketing differ from the old concept of marketing ("telling and selling")?
The new concept focuses on customer needs
Which of the following states that managers must look beyond what is legal and allowable and develop standards based on personal integrity, corporate conscience, and long-term consumer welfare?
The sustainable marketing concept
These days, shopper marketing influences consumers' buying decisions and calls for omni-channel retailing, creating a seamless cross-channel buying experience that integrates __________________ shopping.
in-store, online, and mobile
When a company begins doing business internationally, it generally starts with ____________________, working through independent international marketing intermediaries.
indirect exporting
In determining the number of channel intermediaries, there are three strategies available. These are _________________.
intensive, exclusive, and selective distribution
Sales promotion campaigns call for setting sales promotion objectives. In general, sales promotions should be ________.
consumer relationship building
Personal selling can be more effective than advertising in complex selling situations because it is ______________________________.
interpersonal
Free trade zones can be described as ____________________.
groups of nations organized to work toward common goals in the regulation of international trade
Environmental sustainability concerns have grown steadily over the past three decades. Marketers should be aware of three primary trends in the natural environment, which include ________, ________________, and ________________.
growing shortages of raw materials, increased pollution, and increased government intervention in natural resource management
Most companies today want their salespeople to _______, which means demonstrating and delivering superior customer value and capturing a return on that value that is fair for both the customer and the company.
practice value selling
One consumer promotion tool is _______, which are goods offered either free or at low cost as an incentive to buy a product.
premiums
Bath & Body Works uses _____________ pricing when the company offers "three-fer" deals on its products (such as soaps, lotions, and moisturizers).
product bundle
There are several types of product mix pricing situations, which include ______________, by-product pricing, and product bundle pricing.
product line pricing, optional-product pricing, and captive-product pricing
Marketing departments can be organized in a number of ways. However, more and more companies are changing organizational focus from ________ to ________.
product or territory management; customer relationship management
Many companies view the marketing environment as an uncontrollable element to which they must ________.
react and adapt
The difference between the marketing concept and the sustainable marketing concept is that the marketing concept ___________________________.
recognizes that companies thrive by fulfilling the day-to-day needs of customers
The performance difference between an average salesperson and a top salesperson can be substantial. Therefore, at the heart of any successful sales force operation is the ______ of good salespeople.
recruitment and selection
Which advertising objective is best suited to maintaining customer relationships and for more mature products?
reminder
Which of the following retail trends is making differentiation more difficult?
retail convergence
Laws prohibit ____________, which means a manufacturer cannot require dealers to charge a specified retail price for its product.
retail price maintenance
When evaluating channel member performance, companies use standards such as _______, ______, _____, treatment of damaged and lost goods, cooperation in company promotion and training programs, and services to the customer.
sales quotas, average inventory levels, customer delivery time
Justin, Inc., a U.S.-based watch manufacturer, sells its products in China, Russia, France, and India. To manage sales, Justin appoints a number of sales representatives to each location. Justin has adopted a ________ sales force structure.
territorial
The microenvironment consists of those close to the company that combine to form its value delivery network or that affect its ability to serve customers through six keyways, which include ________, __________, ___________, ________, _________, and _______.
the company, suppliers, marketing intermediaries, cultural forces, competitors, and publics
Other internal factors that influence pricing decisions include ____________.
the company's overall marketing strategy, objectives, and marketing mix, as well as organizational considerations
Which of the following correctly describes customer purchases, sales force contacts, service and support calls, web and social media site visits, satisfaction surveys, credit and payment interactions, and market research studies?
touch points
After recruiting and selecting salespeople, what is the next major step in sales force management?
training salespeople
The typical personal selling process consists of seven specific steps. The steps in the selling process are ________. The aim is to help salespeople close a specific sale with a customer.
transaction oriented
As part of marketing's role, the department works closely with partners in other departments to form an effective internal ________ and with other companies in the marketing system to create an external value delivery network that jointly serves customers.
value chain
To create value for customers, marketers must improve the performance of the ______________, which includes partnering with suppliers, distributors, and customers.
value delivery network
What event or circumstance has made mobile marketing a must for most brands?
widespread adoption of mobile devices
An international corporate division plans for and provides services to various operating units, which can be organized in one of three ways: geographical organizations, _________________.
world product groups, or international subsidiaries
Tina's Tunes is a music store that has been selling CDs for 20 years. Throughout the last six years, sales have continuously declined and profits have almost completely disappeared. The owner of Tina's Tunes believes resurgence is likely to happen soon and wants to continue business as usual. What is likely to happen toTina's Tunes?
Tina's Tunes is likely to fail because it is ignoring the technological environment.
The first step in the marketing research process involves defining the problem and setting research objectives , which might be _________, ___________, or____________ research.
exploratory, descriptive, or causal
Marketers want to predict cultural shifts to spot new opportunities or threats. The major cultural values of a society are expressed in people's views of themselves andothers, as well as in their views of ________, __________, ____________, and ________.
organizations, society, nature, and the universe
The major cultural values of a society are expressed by people's views of ____________________.
themselves, others, organizations, society, nature, and the universe