BUS 2600 Marketing Final

Samsung Mobile plans to launch a new phone with a unit cost of $270 and wants to earn a 10 percent markup on its sales. Samsung's markup price is ________.

$300

Mansfield Pharmaceuticals markets Zipro, an antibiotic. The firm has fixed costs of $1,000,000 and variable costs of $2 per bottle of 50 tablets priced at $10 per bottle. What is the break-even volume?

125,000

What is an advantage of consumer-generated content?

?

In addition to advertainment, advertisers are creating content that ________.

??

________ are groups to which an individual wishes to belong, as when a young basketball player hopes to play someday in the NBA or WNBA.

Aspirational groups

Which of the following statements is true of viral marketing?

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

Which of the following is a benefit of using blogs as marketing tools for companies?

Blogs can offer a fresh, original, personal, and cheap way to enter into consumer conversations.

Which of the following is true about behavioral segmentation on the basis of the loyalty variable?

By looking at customers who are shifting away from its brand, a company can learn about its marketing weaknesses and take actions to correct them.

Which of the following statements is true of direct marketing?

Direct marketing offers sellers a low-cost alternative for reaching their markets.

Which of the following is true about e-mail marketing messages?

E-mail marketing messages are effective in reaching the desired target market and result in low costs.

Which of the following best explains why public relations is often overlooked as a tool for supporting product marketing objectives?

Many public relations professionals see their jobs as communicating, not brand building.

Which of the following companies uses product line pricing?

Mobile Point, which launched a range of cell phone models, each priced according to its features

Which of the following is true with regard to personal selling?

Personal selling entails personal presentations by a firm's sales force for the purpose of making sales and building customer relationships.

Which of the following is true with regard to services?

Services are a form of product that consists of activities, benefits, or satisfactions offered for sale.

Which of the following is true with regard to strategic planning?

The focus of strategic planning is to define a game plan for long-run survival and growth.

Which of the following is an example of a pure tangible good?

a bag of potato chips

Which of the following abilities would LEAST likely be measured when recruiting and testing applicants for a sales position?

accounting skills

Product planners need to consider products and services on three levels. At the third level, product planners must build ________.

an augmented product

Oscarz Aviation's Web site, GoOscarzAv.com, informs customers about a wide variety of services offered by the firm. It also has a guestbook where customers can provide feedback on their experiences with Oscarz Aviation. They can also view videos Oscarz Aviation posts, as well as read and respond to blogs and ask questions. GoOscarzAv.com is an example of a(n) ________.

branded community Web site

Marketing mix planning begins with ________.

building an offering that brings value to target customers

Once managers of The Grecian Urn have decided on their product concept and marketing strategy, they can evaluate the business attractiveness of the proposal in the ________ stage of the new product development process.

business analysis

Leicestershire Renovations has a history of problems with customers who do not pay their bills on time. Leicestershire Renovations wants to improve its cash situation, reduce bad debts, and reduce credit-collection costs. Which of the following forms of pricing would most likely help the firm achieve its goal?

cash discounts

Which of the following is NOT a type of off-price retailer?

category killer

Akira Takano, a marketing manager, is about to test the hypothesis that the sale of a particular product will increase exponentially if there is a $5 drop in the selling price of the product. Akira is involved in ________ research.

causal

George is buying his first house. He has spent a month looking at houses and comparing attributes such as price and location. He has contacted several real estate agents to look at different types of houses. George is most likely exhibiting ________.

complex buying behavior

Neutron Inc. is conducting a business analysis to determine which of the many newly developed apps should be released. To estimate sales, the company must ________.

consider the sales history of similar products

While comparing hotel rates on Google's search engine, Brenda came across text-based ads and links alongside the search results. This form of advertising is known as ________.

contextual advertising

Product planners need to consider products and services on three levels. Each level adds more customer value. The most basic level is ________, which addresses the question, "What is the buyer really buying?"

core customer value

FedEx offers its customers fast and reliable package delivery. When FedEx customers weigh these benefits against the monetary cost of using FedEx along with other costs of using the service, they are acting upon

customer-perceived value

Integrated marketing communications require a company's mass-market advertisements, Web site, e-mail, and personal selling communications to all ________.

deliver a clear, consistent, and compelling message

Bruno Servers has decided to decrease its prices on its popular higher-range servers. The company can reasonably expect ________ to increase.

demand

________ segments are conceptually distinguishable and respond differently to different marketing mix elements and programs.

differentiable

For the past ten years, Bill and Margaret have saved money to go to the Super Bowl should their team, the Chicago Bears, reach the finals of the NFC championship. This is the year, and several tour companies offer attractive, but very similar, packages to the game. Since all packages are pretty much the same, they have chosen one that fits their budget. Bill and Margaret are most likely exhibiting ________.

dissonance-reducing buying behavior

Market segmentation can be best described as the process of ________.

dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate marketing programs

Big Mike's Health Food Store sells nutritional energy foods. The price of the products sold varies according to individual customer accounts and situations. For example, long-time customers receive discounts. This strategy is an example of ________.

dynamic pricing

While looking for ideas on how to craft a user-friendly dishwasher, the designers of a dishwasher-manufacturing company spent 10 days observing people as they used their dishwashers in their homes. In this instance, the designers were conducting ________.

ethnographic research

In ________ research, the objective is to gather preliminary information that will help define the problem and suggest hypotheses.

exploratory

Which of the following is an example of a convenience product?

fast food

Retailers connect brands with consumers in the ________ phases of the buying process.

final

The BCG matrix approach is problematic in that it ________.

focuses solely on current businesses and provides little scope for future planning

McDonald's, Subway, and Jiffy Lube are all examples of ________.

franchises

Which consumer group tends to show more brand loyalty and makes shopping a family event, with children having a big say in the purchase decision?

hispanic americans

The term big data refers to the ________ generated by today's sophisticated information generation, collection, storage, and analysis technologies.

huge and complex data sets

In which of the following situations has a company most actively embraced customer-managed relationships?

iRobot invites enthusiastic Roomba owners to develop and share their own uses for the company's robotic vacuum cleaner.

John's fascination for his grandmother's sherbet recipes inspired him to come up with a recipe for SherBetter, a gourmet sherbet for the American market. Which of the following stages of the new product development process does this exemplify?

idea generation

Executives at an automobile manufacturing company conducted a brainstorming session for selected employees. This session resulted in a large number of ideas for developing new cars after extensive R&D. The executives then planned to filter out the best ideas during the ________ stage.

idea screening

JoAnn Fabrics Inc. has created a new combination of colors and fabric types. The firm wants to know how consumers will perceive the new product. The firm is concerned with the product ________.

image

Which of the following is a common reason for new product failure?

incorrect estimation of the market size

Today, most companies are adopting the concept of ________, which carefully combines and coordinates the company's many communication channels to deliver a clear, consistent, and compelling message about the organization and its brands.

integrated marketing communications

Donello Equipment hosts infomercials on television and at the same time allows its viewers to interact with its advertisements. Viewers can request more details and order via their Internet-ready smart televisions. Which of the following forms of marketing is evident here?

interactive television

A current trend in the United States involves rediscovering the benefits of home-cooked food and the use of organic ingredients. People are choosing to spend hours in the kitchen using only the freshest ingredients to cook healthy and nutritious meals. This change in ________ is one of the reasons for the increasing demand for organic ingredients.

lifestyle

Mobile marketing is used to enrich the brand experience, stimulate immediate buying, or ________.

make shopping easier

________ involves dividing a market into smaller segments of buyers with distinct needs, characteristics, or behaviors that might require separate marketing strategies or mixes.

market segmentation

An organic farmer has identified three distinct groups that might be interested in his products: vegetarians, health-conscious individuals, and people identified as trendsetters who try out new products in the market before others. These three groups are examples of ________.

market segments

Midnight Magic, a perfume manufacturing company, plans to release a new fragrance during the holiday season at $99 per bottle. The company intends to bring the price down to $49 within six months of its release to attract buyers who couldn't afford the initial price. Which of the following pricing strategies is Midnight Magic using?

market-skimming pricing

Which of the following terms refers to sellers being preoccupied with their own products and losing sight of underlying consumer needs?

marketing myopia

Apple's iPod has been called "one of the greatest consumer electronics hits of all time." iPods have been sold in huge numbers, and Apple captures a large share of the music player market. This success has attracted many large, resourceful competitors. The iPod is in the ________ stage of the product life cycle.

maturity

An invitation to go skiing over the weekend forced Donna to look at her current wardrobe. She realized that she required a warmer coat. Which of the following stages of the buyer decision process does Donna exemplify?

need recognition

Tropicana promotes drinking orange juice at any time of day as a cool, refreshing drink. The market segmentation approach Tropicana is using is ________.

occasion segmentation

Melissa Thomas leads the marketing research division at Tronics Inc., a manufacturing company based in Alabama. To improve future sales of the company's products, she has decided to collect customer opinions and feedback on the current products offered by her company. For this purpose, Melissa is looking for a highly flexible contact method that can be used to gather large amounts of data within the least possible time. In this instance, which of the following contact methods is most likely to hold the highest appeal for Melissa?

online surveys

Rachel loves fashion and is always seen wearing the trendiest fashion outfits. She actively shares her knowledge with a wide group of friends and colleagues about where to shop for the latest fashion at great deals. Most of her friends and colleagues follow her fashion tips. Rachel portrays the image of a(n) ________.

opinion leader

Omega Inc. makes lightweight sunglasses with 100-percent UV protection for people who love to hunt, hike, and ride bikes. The company's long-term plans include the development of lenses that, in addition to protecting users from UV rays, would help reduce lens spotting through effective water-sheeting methods. This new feature would be valuable to people who fish. Given the rising popularity of recreational fishing in the United States, Omega products clearly have a huge market potential. In terms of a SWOT analysis, Omega has recognized a market ________.

opportunity

By using ________ to contact potential customers, marketers sell directly to consumers.

outbound telephone marketing

A company that uses well-known celebrities to help sell its products is using ________ marketing.

person

Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers is known as ________.

positioning

Kathy Champe, a public relations specialist for a regional chain of pharmacies, regularly contacts members of the local and statewide media with information about community events and charity fundraisers sponsored by her company. This is an example of the ________ function of public relations.

press relations

Katrina Mendoza is a senior manager in a manufacturing firm that hires lobbyists to influence legislation that affects the manufacturing industry. Katrina's firm takes a(n) ________ stance toward the marketing environment.

proactive

In the marketing mix, design, packaging, services, and variety can be categorized under ________.

product

Consumer products refer to ________.

products and services bought by final consumers for personal consumption

In the ________ stage of the selling process, a company first identifies qualified potential customers.

prospecting

________ segmentation divides buyers into different segments based on social class, lifestyle, or personality characteristics.

psychographic

Which of the following promotion categories is most likely to use the promotion tools of press releases, sponsorships, events, and Web pages?

public relations

Using a(n) ________ strategy, the producer directs its marketing activities toward final consumers to induce them to buy the product.

pull

________ includes all the activities involved in selling products or services directly to final consumers for their personal, nonbusiness use.

retailing

________ is defined as analyzing, planning, implementing, and controlling sales force

sales force management

Mark has long supported a particular brand of footwear and has always bought that brand. Recently, the footwear manufacturer was embroiled in a controversy for using child labor at its manufacturing plants. Mark doubts the news reports and continues to purchase the same brand of footwear. It is most accurate to say that Mark displays ________.

selective distortion

Your state's department of education has budgeted a significant amount of money for a radio, print, television, and online advertising campaign emphasizing the long-term benefits, both educationally and professionally, of reading every day. This is an example of a(n) ________ campaign.

social marketing

Which of the following is most likely an objective of informative advertising?

suggest new uses for a product

Selecting which segments of a population to serve is called ________.

target marketing

In the ________, each salesperson is assigned to an exclusive geographic area and sells the company's full line of products or services to all customers in that region.

territorial sales force structure

Snappy Cameras is launching a new advertising campaign to demonstrate the high quality of its digital cameras. Which media option would give the audience the most control over exposure to the ads and interactive capabilities?

the Internet

Which of the following is a trend that depicts the increasingly nontraditional nature of today's American families?

the low percentage of married couples with children

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 best describes this set of communications tools?

the promotion mix

Retailers are classified on characteristics including the amount of service they offer, the breadth and depth of their product lines, how they are organized, and ________.

the relative prices they charge

Product planners need to consider products and services on three levels. At the second level, product planners must ________.

turn the core benefit into an actual product

________ are consumer products that the consumer either does not know about or knows about but does not normally think about buying.

unsought products

Marketing is defined as a social and managerial process by which individuals and organizations obtain what they need and want through ________.

value creation and exchange

A pharmaceutical company in Utah recently released a new and expensive anti-ulcer drug in the market. The company justifies the high price of the drug by claiming that it is highly effective for treating all kinds of ulcers. The company also claims that the new drug will help bring down the need for invasive surgeries, an additional benefit for patients. Which of the following pricing strategies is the pharmaceutical company most likely using in this instance?

value-based pricing

Companies can research many aspects of buying decisions. However, the one that is the most difficult to identify is ________.

why they buy

A good marketing information system balances the information users ________ to have against what they ________ and what is ________ to offer.

would like; need; feasible