Marketing 314

Which of the following posters represents a potential communication error?

"Can't read? Let us help. Free literacy classes."

It is estimated that the average cost of a single field sales call on a business customer is about __________, factoring in salespeople compensation, benefits, and travel-and-entertainment expenses.

$350.00

A company that manages apartments decides to buy 15 new dishwashers at a list price of $550 each as replacements for old dishwashers in a small apartment complex it owns. Because the company is buying more than 10 dishwashers, it is eligible for a $150 per unit quantity discount. Financing charges total $20 per unit. The company gets $10 per dishwasher for the 15 dishwashers traded in. What is the actual price the company will pay for each dishwasher?

$410

Emily had an excellent year as a saleswoman in 2010. She earned $97,000. She paid $17,000 for "necessities" such as mortgage, food, and clothing. She was given a six-week all expenses paid vacation by the company for her sales performance that had a value of $9,000. Her state and federal income taxes totaled $24,000. What was her discretionary income?

$56,000

The owner of a small restaurant that sells take-out fried chicken and biscuits pays $2,500 in rent each month, $500 in utilities, $750 interest on his loan, insurance premium of $200, and advertising on local buses $250 a month. A bucket of take-out chicken is priced at $9.50. Unit variable costs for the bucket of chicken are $5.50. How many small buckets of chicken does the restaurant need to sell to break-even each month?

1,050 buckets

More than _________ of the largest firms in the U.S. have uncovered espionage in some form, costing them $300 billion annually in lost sales.

50 percent

The European Union consists of 27 member countries. This single market houses more than ________ million consumers with a combined GDP larger than that of the United States.

500

The manufacturer of a new kind of fat-free ice cream that has the consistency and taste of regular ice cream is thinking of using a penetration pricing strategy for its new product. Which of the following conditions would argue against using a penetration pricing strategy for the tasty fat-free ice cream?

A large potion of the market has inelastic demand for ice cream - over a fairly broad range of prices.

Which of the following statements about environmental forces is most accurate?

Although many consider environmental forces a negative impact on a firm's marketing plans, some environmental forces can actually enhance a firm's marketing opportunities.

Even though there are approximately one hundred different languages and dialects in the world, the three major languages used in global diplomacy and commerce are

English, French, and Spanish

Which of the following statements concerning ethnographic research is most accurate?

Ethnographic research uses anthropologists and other trained researchers to observe consumers in their natural use environment.

A product in the introduction stage of the product life cycle should have which of the following marketing objectives?

Gain awareness and stimulate trial

Which of the following statements regarding market segmentation is most accurate?

If a business firm goes to the trouble and expense of segmenting its markets, it expects to reveal a way to increase sales, profits, and return investment.

Candy bars should most likely be sold using which type of target market coverage?

Intensive distribution

Your product has been suffering from steadily eroding sales and profits. You have tried a number of options to revitalize the product's sales and profits, but after seven changes in your strategy, you have yet to find success. Which of the following actions would be the least appropriate next step?

Stimulate primary demand

Several years ago the Honda Motor Company unveiled the hybrid version of the Honda Civic. While the hybrid vehicles are very fuel efficient, they are also very expensive to purchase. Hybrid vehicles sales have increased over 570 percent with a compound annual growth rate of 88.6%. Sales of the Civic eventually overtook those of the Toyota Prius, making it the number one hybrid car in the U.S. For years, Honda has experienced tremendous success with their Accords-in fact, Honda cars are repeatedly the top selling automobiles in the U.S. Where would the Honda Civic (hybrid version) and the Honda Accord fall in the BCG product portfolio matrix?

The hybrid Civic would be a classified as a star, and the Accord would be classified a cash cow.

Which of the following statements regarding segmentation bases is most accurate?

The identification of demographic variables is more objective than the identification of psychographic variables which is more subjective.

Before opening six Torrid plus-size-only retail stores that cater to women aged 15-30, a great deal of information was gathered to determine what types of items should be carried, the image of the store, its advertising, etc. Which of the following is an example of an open-ended question that might have been asked?

What is personal fashion style?

A key question to ask before using the product differentiation-market segmentation strategy is:

Will the new products steal costumers or sales from the older one?

Four major trends affecting world trade in the past decade are formal economic integration and free trade among nations, global competition among global companies for global customers, the emergence of networked global marketspace, and

a gradual decline in economic protectionism by individual countries

Marketing plan refers to

a road map for the marketing activities of an organization for a specified future time period, such as one year or five years.

Data obtained by manipulating factors under tightly controlled conditions to test cause and effect is an example of

an experiment

Emily wants to purchase a new computer. She is unsure about what hardware and software she will need. As a result, she has begun asking for advice from friends and relatives. In addition, she has talked to several computer salespeople and has looked at some Web sites. Emily is engaging in

an external search

Regional shopping centers are the suburban malls of today, containing 50 to 150 stores. The typical drawing distance is 5 to 10 miles from the mall. The centers often contain two or three _________, which are well-known national or regional stores such as Bloomingdale's or Dillard's.

anchor stores

Thirteen to nineteen year olds in Europe, North and South America, and the industrialized nations of Asia

are more similar than different regarding their purchase behavior.

Mattel has contractually agreed to let Colgate use the Barbie name and image in kids' toothpaste and toothbrushes. Colgate pays Mattel a fee for the use of the Barbie name and image. This is an example of

brand licensing

A general review of the marketing strategy, product assessment, economic analysis, and legal examinations would all take place during which stage of the new-product process?

business analysis

Giant specialty stores are referred to in the trade as _________

category killers

Cadbury Canada recognized that education is crucial to lifting Ghanaian children out of poverty. They had a vision of giving thousands of kids a leg up into a reality. Cadbury's worked with its lead partner, World Vision Ghana, to identify every child in cocoa-farming villages who had to walk at least three kilometers or more each way to school. In the spring of 2009 Cadbury's Canada launched a program which encouraged consumers to enter the bar codes on their candy and chocolate bars online. Each entry represented one bicycle part, and 100 parts "built" one bike. The biggest-ever shipment of bicycles to Ghana - 5,000 in total, is helping thousands of kids get to school - and get a head start on a brighter future. This is an example of

cause marketing

Sports Port, a motorcycle and fishing boat retailer located in a small northern Minnesota town, was the world's largest dealer for Crestliner fishing boats. In order to meet the demand of his many customers, the owner of Sports Port worked with a wide variety of channel members, ranging from the manufacturer of the boats to trucking firms, other retailers, and even detailers. Such a diverse channel of distribution often resulted in channel conflict. However, due to his strong consumer following, the owner of Sports Port had the power to resolve disputes between channel members. The owner of Sports Port served as the __________ in the channel of distribution.

channel captain

A different market segment usually requires a different marketing action that, in turn means greater costs. If increased revenues don't offset extra costs of this action, a marketer should __________ to reduce the number of marketing actions.

combine segments

The services market sells diverse services such as legal advice, auto repair, and dry cleaning. Along with finance, insurance, and real estate businesses, and transportation, __________ and public utility firms, and not-for-profit organizations, these firms represent about 75 percent of all industrial firms.

communication

New flavors like lemon-lime, crystal mint, and mint mojito helped the Wm. Wrigley Jr. Co. add to its profitability. These new flavors of gum are which type of innovation?

continuous innovation

An organization's __________ are the fundamental, passionate, and enduring principles that guide its conduct over time.

core values

Lava.com is an Internet company that helps other organizations put concepts that they hope will let them dominate the market in their industry into action. In its promotion, it states, "We ignore the rules, and we let no obstacle stand in your company's way-no matter how bold or impossible your idea may seem." The company is composed of eighteen bright young Internet experts. They work in one large room, which also contains dartboards, a pool table, and a meditation center. If you were to walk into the office, it would be next to impossible to tell the company owners from its lowest ranking employee. This is a description of the Internet company's

corporate culture

When compared to a multiple-products-multiple-market segments strategy, a one-product-and-multiple-market-segment strategy

creates greater cost savings in manufacturing costs

Spruceland Millworks in Canada makes wooden pallets for transporting and storing new appliances such as stoves, freezers, and refrigerators. The demand for Spruceland pallets would be classified as

derived demand, which is tied to the sales of pallets, which in turn, is tied to the sales of appliances

"Have you been to a dentist within the past 6 months? ___ Yes ___ No?" is an example of which type of question?

dichotomous

Napster was the first software that allowed an individual to easily search and swap MP3 musical files with other individuals. When it was introduced, it would have been an example of a

discontinuous innovation

One evening while watching TV, your stomach growls (cue). You see an ad for Subway. You walk to the Subway shop and buy a sandwich (response), which tastes great. In terms of behavioral learning your hunger is a(n) marketing example of a __________.

drive

Pharmaceutical companies sell to hospitals and clinics directly. They market their products to large retail chains that distribute the medicines to their stores across the nation. They also sell to drug wholesalers that sell to the remaining independent drugstores in the U.S. What method of distribution best describes that used by pharmaceutical companies in this example?

dual distribution

There are five organizational problems that can cause product disasters including (1) not really listening to the voice of the consumer; (2) not learning critical takeaway lessons from past failures; (3) skipping steps in the new-product process; (4) pushing a poorly conceived product into the market to generate quick revenue; and (5)

encountering "groupthink" in task force and committee meetings

Fluctuations in __________ among the world's currencies have direct impact on the sales and profits made by global companies.

exchange rates

Robin wants to find the perfect gift for her grandparents' 50th wedding anniversary. She started looking for the gift last month and expects to spend another couple of months if needed to find a gift they both will like. Robin is engaging in

extended problem solving

If taxes rise at a faster rate than income does, consumers most likely

feel the pinch of less disposable income and try to economize.

The Minnesota Twins, a professional baseball team, wanted to develop creative ways to boost sagging attendance at their ball games. The Twins hired a moderator who, after every home game during the month of July, led informal discussions with groups of 6 to 10 fans to find out what they did and did not like about the baseball team. The discussions were tape recorded and videotaped so that researchers could review the data at a later date and in more detail. What are such informal research discussions called?

focus groups

Nordstrom stores typically have 50 percent more salespeople on the floor than similarly sized stores, and the salespeople are renowned for their professional and personalized attention to customers. Nordstrom would be considered a(n) _________.

full-service retailers

A recent study by the Aberdeen Group analyzed which segmentation bases were used by the top 20 percent of 220 organizations surveyed. From highest to lowest the segmentation bases were

geographic, behavioral, demographic, and psychographic

When a product reaches the decline stage of the product life cycle, a firm has two choices. One choice involves product deletion, where a product is dropped from a firm's product line. Another less drastic choice is to retain the product in the in the product line, but to reduce marketing costs. When this option called ________ is selected, advertising expenditures for the product are reduced, and salespeople do not devote their efforts to selling the product

harvesting

An organization that focuses its efforts on continuously collecting information about customers' needs and competitors' capabilities, sharing this information across departments, and using the information to create customer values is said to

have a market orientation

When consumers think of Harley-Davidson, the image of a masculine, non-conformist is the likely vision associated with that brand name. With Vespa motor scooters, the image is more likely to be a brainy environmentalist that wears polyester and socks that don't match. Both Vespa and Harley-Davidson

have brand personalities

According to The American Cancer Society, 57,000 Americans a year die from colon cancer. They estimate that this number would drop significantly if people over 50 were checked regularly. But being tested for colon cancer is not a pleasant experience and most people of course fear the possibility of bad news. To encourage people to get tested for colon cancer, several ads using a man (known as "Polyp Man"), dressed in a big red suit making him look more like Mr. M&M to encourage people to get tested. This is an example of _________ appeal.

humorous

The inability for a consumer to be able to distinguish the service provider from the service itself is referred to as

inseparability

To promote its theme parks to groups, Disney is using advertising, direct marketing, Internet promotion, and partnerships with other companies. In other words, Disney is using

integrated marketing communications (IMC).

Mars, America's second-largest candy company began doing business in Russia in the late 1980s. The Snickers bar is one of the top selling candies in Russia and is marketed in much the same way as it is in the United States. Mars is most likely a(n) __________ firm.

international

Procter and Gamble Co. manufactures consumer products such as a toothpaste or a mop company. Instead it sees itself as an innovative company with the goal of solving consumer problems. P & G most likely grew its market share in 70% of its businesses because

it invented new products to provide value to the customers it serves

IKEA sells a portable workbench called the FARTFULL. The product has many positive features, and in German or Swedish markets, the name describes the product's features well (fahrt meaning travel). This brand name in the United States however, may not be as effective due to

language and cultural differences

Those activities that focus on getting the right amount of the right product to the right place at the right time at the lowest possible cost are referred to as

logistics

Deliberately selling a product below its customary price, not to increase sales, but to attract customers' attention in hopes that they will buy other products as well, is referred to as

loss-leader pricing

The aggregation of prospective buyers into groups that (1) have common needs and (2) will respond similarly to a marking action is referred to as __________.

market segmentation

Breyer's introduced a new line of ice cream flavors for sale in elegant black containers. This was done on a limited scale to determine consumer reactions before national distribution of the product. Breyer's new product was in the __________ stage of the new-product process.

market testing

Eddie Bauer has leveraged its store, Web site, and catalog channels with impressive results. At Eddie Bauer every effort is made to make the apparel shopping and purchase process for its customers the same in its retail stores, with its catalog, and at its Web site. An Eddie Bauer marketing manager says, "We don't distinguish between channels because it's all Eddie Bauer to our customers." Eddie Bauer is likely following a(n) _________ strategy.

multichannel marketing

U.S. appliance manufacturers find that different customs about shopping must be used to determine product design. For instance, people in Northern Europe shop only once a week, so they need bigger refrigerators than Southern Europeans who shop daily. Furthermore, Northern Europeans insist that freezers should be on the top just as loudly as Southern Europeans insist that freezers should be on the bottom. Other regions use their appliances differently and have other different product demands. Given this information, you should conclude U.S. appliance manufacturers would be more likely successful if they used a(n) __________ marketing strategy.

multidomestic

At the weekly meeting for Choice Hotels (the company that owns Clarion Hotel, Quality Inn, Comfort Inn, Comfort Suites, Sleep Inn, and Mainstay Inn), the marketing manager said, "We need an inexpensive creative way to increase awareness of our hotels among people who travel by automobile. To do that I want to find some new media that the other hotel chains are not using." The purchase of this new media for the hotel chains' advertising would be an example of a

new buy

The key idea behind diffusion of innovation is that

not all consumers accept a new product at the same time; adoption of a product spreads slowly throughout the population.

There are eight main reasons a new product can fail: (1) no economical access to buyers; (2); insignificant point of difference (3) incomplete market and product protocol; (4) bad timing; (5) too little market attractiveness (6) poor product quality; and (7) poor execution of the marketing mix, and (8) __________.

not satisfying customers on critical factors

Kodak, Fuji, and Agfa control the majority of sales for amateur photographic film. The film industry is an example of a(n)

oligopoly

Target market refers to

one or more specific groups of potential consumers toward which an organization directs its marketing program.

The lag from ordering an item until it is received and ready for use or sale is referred to as

order cycle time

When Hallmark cards introduced a line of $.99 cards (about half the price of the previously less expensive cards sold by Hallmark), the greeting card company was trying to appeal to a mass market that was price sensitive. Hallmark was using a __________ pricing strategy.

penetration

Enterprise car rental agency differentiates itself from other similar agencies by providing a delivery service. This delivery service is particularly valuable to someone who has been left stranded without transportation. By making it easy to rent temporary transportation, Enterprise is emphasizing which utility?

possession

Wal-Mart has set a goal to reduce packaging on the products it carries. This change is an example of how they are responding to trends in customer values to

preserve the environment

Talbot's sells women's clothes. A simple tee shirt with the Talbot's label costs $25. If you know you simply want a tee shirt, you can buy one for $5 at a Family Dollar Store, but it won't have the Talbot's label or quality. What kind of demand-oriented approach to pricing is being used by this manufacturer?

prestige pricing

There are five stages in the purchase decision process. The first stage is __________.

problem recognition

Newman's Own is a company that gives all of its profits to charities. The company produces popcorn, salsa, pasta sauce, and salad dressings under the Newman's Own brand name. These product lines comprise a company's

product mix

Twenty years ago, the Mississippi Gulf Coast was a nice place to vacation with a white sandy beach, golfing opportunities, resort hotels, and good seafood restaurants. With the addition of casinos, the Gulf Coast improved its odds of being a tourist destination for more travelers. This is an example of

product modification

Nielsen Claritas' lifestyle segmentation is based on the belief that "birds of a feather flock together." This type of consumer segmentation is referred to as

psychographic segmentation

Consumers accompanied by children

purchase about 40% more than when shopping alone.

Chrysler Corporation provides support and incentives for 2,390 Chrysler and Jeep dealers. Through a multi-level program, Chrysler provides incentives to reward dealers for meeting sales goals. Dealers receive an incentive when they are near a goal, another when they reach a goal, and a larger incentive if they exceed sales projections. All of these actions are intended to encourage Chrysler dealers to __________ the Chrysler products through the channel to consumers.

push

The practice of building ties to customers based on a salesperson's attention and commitment to customer needs over time is referred to as __________.

relationship selling

An ad for Campbell's Soup reads, "We haven't changed that great taste your family's always loved." This is an example of _________ advertising.

reminder

For many years, Kellogg's Frosted Flakes, a ready-to-eat breakfast cereal, was perceived as a cereal for children. Tony the Tiger, a cartoon character, extolled Frosted Flakes, and advertisements depicted children enjoying the product in competitive situations. Recently, in response to declining sales of Frosted Flakes, the cereal-maker has adopted a new series of advertisements that show adults admitting they enjoy Frosted Flakes, too. Kellogg's is attempting to

reposition its product

When developing marketing strategies, marketing managers use the elements of the marketing mix, which includes product, price, place, and promotion. The marketer can effectively control these elements to develop marketing strategies and to change those strategies in response to environmental changes. In a similar fashion, when developing retailing strategies, marketers use what is called the retailing mix, which includes

retail pricing, store location, retail communication, and merchandise

A salesperson at Toshiba America Medical Systems uses a laptop computer with built-in CD-ROM capabilities to provide interactive presentations for their computerized tomography (CT) and magnetic resonance imaging (MRI) scanners. In it the customer sees elaborate three-dimensional animations, high-resolution scans, and video clips of the company's products in operation as well as narrated testimonials from satisfied customers. Such technological capabilities have made it effective both for sales presentations and for training its salespeople. This would be an example of the use of

salesforce technology

As more competitors launch their own products and the product progresses along its life cycle company attention is focused on creating _________ demand, or the preference for a specific brand.

selective

When microwave ovens were in the introduction stage of the product life cycle, some consumers were willing to pay exorbitant prices for the innovative ovens. Taking advantage of this strong customer desire, marketers set the price for microwave ovens at the highest initial price that customers with a strong desire for the product were willing to pay. Marketers of microwave ovens were using a _________ pricing strategy.

skimming

Making counterfeit copies of Gucci purses, Hilfiger sportswear, and other international brands is pervasive in China because it is so easy to get away with it. Laws protecting intellectual property are unclear and sporadically enforced. Even when they are applied, sanctions are minimal, typically consisting of confiscation, a warning, a public apology, and perhaps a fine (negotiated, of course). Moreover, copying enjoys a long tradition in China and does not carry a stigma. Copying a masterpiece was historically considered an art form in its own right, and Chinese students have been taught for centuries to copy their teachers as accurately as possible before attempting to create. A business introducing a product into China needs to know that __________ may lead to trademark infringements.

societal culture and norms

You greatly admire a set of Waterford crystal serving bowls you see at a dinner party, and decide to buy two, despite the price of $250 each. They are only available in your area in a Waterford shop 40 miles from campus. Into which classification of consumer products would they crystal bowls fall?

specialty products

Customers currently link to Cisco's web site to configure, price, and order its networking equipment. Cisco then sends orders back out across the internet to producers and assemblers including Celestica, Flextronics, Jabil, and Solectron. Products are built and tested to Cisco standards, sometimes with procedures run remotely by Cisco. Most are then drop-shipped to buyers, untouched by human hands on Cisco's payroll. This is a description of Cisco's

supply chain

Neilsen Media Research's TV ratings and the J. D. Power automotive quality and customer satisfaction surveys provide a standard set of data on a regular basis. They are examples of

syndicated panels

The system that provides common industry definitions for Canada, Mexico, and the United States, which makes it easier to measure economic activity in the three member countries of the North American Free Trade Agreement (NAFTA) is referred to as

the North American Industry Classification System (NAICS)

Ultimately, ethical choices are based on

the personal moral philosophy of the decision maker

Although research shows consumers are sensitive to ecological issues, they may not be willing to purchase a given product or service solely on the basis of its environmental claims. They may be unwilling to sacrifice convenience and pay higher prices to protect the environment and

they may be confused about which products are truly "environmentally safe" given that many marketers claim to produce "green products" even if they aren't.

Free samples are one of the most popular means to gain consumer trial. In fact most consumers consider a sample _________.

to be the best way to evaluate a new product

As a subscriber to Fitness magazine, Kelly was asked by a researcher, which ads she remembered seeing in the most recent issue of the magazine. Then she was asked questions about the content and appearance of the ads she remembered. The researcher was using ________ to test the effectiveness of ads in the magazine.

unaided recall

Practices that include filing warranty claims after the claim period, misredeeming coupons, making fraudulent returns of merchandise, providing inaccurate information on credit applications, tampering with utility meters, tapping cable TV lines, duplicating copyrighted music and software, and submitting phony insurance claims are examples of

unethical practices of consumers

A new exercise video contends that with one day of fasting and one one-hour period of intense cardiovascular exercise, the average individual can lose five pounds a week and be in peak health within six months of starting the program. __________ barriers will doom the new product to failure because the product's claims are not consistent with what consumers do and how they think.

usage

The 80/20 rule is most closely related to which consumer segmentation variable?

usage

The ratio of perceived benefits to price is referred to as

value

Compared to the general population, online consumers tend to be

younger, more educated, more affluent, and female.