Marketing 3310 Final Exam

Which of the following is a traditional direct marketing tool? A) catalog B) e-mail C) blog D) online advertisement E) Web site

A) catalog

. ________ refers to the activities involved in selling products or services directly to final consumers for their personal, nonbusiness use. A) Sole sourcing B) Retailing C) Manufacturing D) Procurement E) Warehousing

B) Retailing

The simplest way to enter a foreign market is through ________. A) joint ownership B) exporting C) direct investment D) licensing E) contract manufacturing

B) exporting

The ________ concept specifically focuses on future company needs, but not the future welfare of customers. A) societal marketing B) strategic planning C) sustainable marketing D) global marketing E) cause marketing

B) strategic planning

Which of the following sets the price ceiling for a product's pricing? A) profits B) product costs C) consumer perceptions of value D) elements of the product mix E) competition

C) consumer perceptions of value

Which of the following sets the upper limit for a product's pricing? A) profits B) product costs C) consumer perceptions of value D) elements of the product mix E) competition

C) consumer perceptions of value

Managing upstream and downstream value-added flows of materials, final goods, and related information among suppliers, the company, resellers, and final consumers is known as ________. A) marketing logistics B) distribution system management C) supply chain management D) full-line forcing E) physical distribution

C) supply chain management

________ is the process of dividing a market into distinct groups of buyers who have different needs, characteristics, or behavior. A) Differentiation B) Mass marketing C) Market targeting D) Market segmentation E) Positioning

D) Market segmentation

Consumers' needs and wants are fulfilled through ________. A) value B) demand C) desire D) market offerings E) ideas

D) market offerings

Wholesalers absorb risk by taking title and bearing the cost of theft, damage, spoilage, and obsolescence. (True or false)

True

Social media marketing is a traditional direct marketing tool. (True or false)

False

. ________ is the only element in the marketing mix that produces revenue. A) Price B) Place C) Promotion D) Product E) Profit

A) Price

Which of the following are the fastest-growing forms of marketing? A) direct and digital B) undifferentiated and differentiated C) internal and external D) mass and targeted E) standardized and customized

A) direct and digital

In a marketing communications mix, ________ refers to any short-term incentive that encourages the purchase or sale of a product or service. A) advertising B) sales promotion C) personal selling D) crowdsourcing E) public relations

B) sales promotion

Which of the following channel functions of wholesalers is demonstrated when a buyer receives quicker delivery because wholesalers are located closer than are producers? A) buying and assortment building B) financing C) transportation D) risk bearing E) warehousing

C) transportation

Which mode of transportation is best for carrying perishable goods to distant markets? A) railroads B) water carriers C) trucks D) air carriers E) pipelines

C) trucks

Electronics Storage is a wholesaler that holds inventories, thereby reducing carrying costs and risks for both suppliers and customers. Which channel function does Electronics Storage primarily provide? A) showrooming B) assortment building C) warehousing D) financing E) transporting

C) warehousing

Which of the following is true about customer relationship management (CRM)? A) It eliminates the need for primary research. B) It minimizes the need for costly marketing analytics. C) It relies on the use of exploratory and causal research. D) It consists of sophisticated software and analytical tools. E) It excludes data on existing customers to focus on potential customers.

D) It consists of sophisticated software and analytical tools.

According to the five-step model of the marketing process, the first step in marketing is ________. A) capturing value from customers to create profits and customer equity B) constructing an integrated marketing program that delivers superior value C) engaging customers, building profitable relationships, and creating customer delight D) understanding the marketplace and customer needs and wants E) designing a customer-driven marketing strategy

D) understanding the marketplace and customer needs and wants

A ________ is made up of a company, its suppliers, distributors, and, ultimately, customers who "partner" with each other to improve the performance of the entire system. A) manufacturing chain B) distribution center C) marketing intermediary D) value delivery network E) disintermediation system

D) value delivery network

A ________ consists of producers, wholesalers, and retailers acting as a unified system. The system can be dominated by any one of the interdependent members. A) direct marketing system B) horizontal distribution channel C) lateral marketing system D) conventional distribution channel E) vertical marketing system

E) vertical marketing system

Which of the following is the primary purpose of branded community Web sites? A) displaying digital catalogues B) providing detailed descriptions of products C) creating customer-product engagement D) selling products and services E) sending direct mails to consumers

C) creating customer-product engagement

Which of the following is most likely true about the digital age with regards to marketing? A) The number of businesses connecting people over digital networks is in decline. B) Digital networks allow marketers many ways to build customer relationships. C) The Internet has had little impact on the ways consumers purchase products. D) Most firms are shifting back to traditional marketing forms to build customer value. E) Online-only marketing is more commonly used by firms than multichannel marketing

E) Online-only marketing is more commonly used by firms than multichannel marketing

Brokers and agents usually take title to goods and perform various functions for retailers. (True or false)

False

When establishing prices, it's important for a manager to understand that "good value" is not the same as ________. A) "low price" B) "high price" C) "bargain basement" D) "perceived value" E) "everyday value"

A) "low price"

Which of the following is true of advertising in the new marketing communications model? A) Advertisers are increasingly shifting toward digital media. B) Advertisers are spending more on broadcast advertising. C) Advertisers are finding traditional media less expensive. D) Advertisers are using less targeted media to reach customers. E) Advertisers have replaced print catalogues with digital versions.

A) Advertisers are increasingly shifting toward digital media.

________ uses buyers' perceptions of what a product is worth as the key to pricing. A) Customer value-based pricing B) Target return pricing C) Cost-plus pricing D) Psychological pricing E) Competition-based pricing

A) Customer value-based pricing

Which of the following is true of a conventional distribution channel? A) It has each channel member acting as a separate business unit trying to maximize its own profits. B) It consists of producers selling their products directly to customers without the use of intermediaries. C) It has one channel member owning the other channel members. D) It is a distribution channel where a producer is owner of all the other channel members. E) It has all members of the channel working together as a single organization

A) It has each channel member acting as a separate business unit trying to maximize its own profits.

________ is the only element in the marketing mix that produces revenue. A) Price B) Place C) Promotion D) Product E) Profit

A) Price

________ data consist of information collected for the specific purpose at hand. A) Primary B) Secondary C) Derived D) Archival E) Historical

A) Primary

________ marketing calls for socially and environmentally responsible actions that meet the present needs of consumers and businesses while also preserving or enhancing the ability of future generations to meet their needs. A) Sustainable B) Customer driving C) Mass D) Customer-driven E) Differential

A) Sustainable

Which of the following is true of marketing strategies that are being developed in the new marketing communications model? A) They are more targeted, social, and engaging. B) They target much larger customer segments. C) They rely more on mass-media marketing techniques. D) They use very little alternative media. E) They include a greater number of print media ads.

A) They are more targeted, social, and engaging.

Greentech is launching a line of miniature solar chargers for laptops, cellphones, and other electronic devices. The chargers are compact, affordable and the green energy technology is a value-added benefit for both the company and consumers. Which of the following would qualify as an advertisement for Greentech's new solar chargers? A) a front-page notice of the release of Greentech's solar chargers in all leading newspapers B) a press conference to discuss the various benefits, including environmental feature C) the use of dedicated sales personnel to explain the qualities of the new solar chargers to retailers D) an endorsement by a national environmental organization to tout the benefits of the new solar chargers E) an online lottery where interested buyers have a chance to win a prize

A) a front-page notice of the release of Greentech's solar chargers in all leading newspapers

A ________ contains between 15 and 50 retail stores, including a department or variety store, a supermarket, specialty stores, professional offices, and sometimes a bank. A) community shopping center B) warehouse club C) superstore D) neighborhood shopping center E) regional shopping mall

A) community shopping center

11. Producers use marketing intermediaries because they ________. A) create greater efficiency in making goods available to target markets B) supply inexpensive raw materials for manufacturing products C) provide technical expertise for faster production D) monitor day-to-day activities during production E) form a part of the company's direct channel

A) create greater efficiency in making goods available to target markets

Changes in variables, such as income, cost of living, interest rates, and savings and borrowing patterns most likely reflect changes in the ________ environment of a company. A) economic B) natural C) demographic D) political E) cultural

A) economic

Which of the following is a personal factor that influences a consumer's buying behavior? A) life-cycle stage B) motivation C) status D) family E) social networks

A) life-cycle stage

The first generation Apple iPod was introduced in 2001 and sold for $500. The following year a mini version was introduced for $250. Apple initially used a ________ strategy to price their digital music innovation. A) market-skimming B) target costing C) deceptive D) market-penetration E) predatory

A) market-skimming

The ________ concept holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do. A) marketing B) product C) production D) selling E) societal marketing

A) marketing

Both market penetration strategies and market development strategies primarily involve ________. A) selling a company's current products B) modifying the company's product line C) selling in new as well as existing markets D) developing a new product E) leaving the current market

A) selling a company's current products

Which of the following is a shortcoming of advertising? A) It does not allow dramatization of the brand or company. B) It only provides one-way communication with customers. C) It can be too customized and only attracts small, niche markets. D) It reaches targeted customers too slowly in most cases. E) It is the most costly promotion tool for companies.

B) It only provides one-way communication with customers.

________ is the art and science of choosing target markets and building profitable relationships with them. A) Differentiation B) Marketing management C) Positioning D) Segmentation E) Value engineering

B) Marketing management

. ________ creates a seamless cross-channel buying experience that integrates in-store, online, and mobile shopping. A) Shopper marketing B) Omni-channel retailing C) Test marketing D) Online marketing E) Consolidation marketing

B) Omni-channel retailing

________ creates a seamless cross-channel buying experience that integrates in-store, online, and mobile shopping. A) Shopper marketing B) Omni-channel retailing C) Test marketing D) Online marketing E) Consolidation marketing

B) Omni-channel retailing

_______ pricing is when a firm tries to determine the price at which it will break even or earn the profit it is seeking. A) Competition-based B) Target return C) Cost-plus D) Good-value E) Value-added

B) Target return

________ pricing is when a firm tries to determine the price at which it will break even or earn the profit it is seeking. A) Competition-based B) Target return C) Cost-plus D) Good-value E) Value-added

B) Target return

Which of the following would be considered an upstream partner in a company's supply chain? A) a firm that resells a finished product and shares the net sales with the producer B) a firm that provides technical expertise in the production of a product C) a firm that markets a product to consumers through social media D) a firm that buys products at wholesale cost from the company E) a firm that exclusively markets a product to other businesses

B) a firm that provides technical expertise in the production of a product

Safari Unlimited recently conducted national research to generate ideas for a new line of fatigues geared to women. The company uncovered a number of ideas about clothing and accessory preferences as well as important benefits such as built-in sunblock and durability. The Safari Unlimited product development team will most likely use ________ next to arrive at a realistic number of products for the new fatigues line. A) crowdsourcing B) idea screening C) concept testing D) concept development E) business analysis

B) idea screening

Which of the following represents a change in the technological environment of a marketing firm? A) increased use of cause-related marketing B) increased use of RFID systems to track products C) increased need to comply with environmental regulations D) increased use of value marketing techniques and promotions E) increased need to engage in mass marketing over market segmentation

B) increased use of RFID systems to track products

A ________ is a small open-air mall with upscale stores, convenient locations, and nonretail activities such as a playground, hotel, dining establishments, and a movie theater. A) regional shopping center B) lifestyle center C) community shopping center D) power center E) warehouse club

B) lifestyle center

Demographic, economic, natural, technological, political, and cultural forces form the ________ of an organization. A) supply chain B) macroenvironment C) marketing intermediary network D) internal environment E) microenvironment

B) macroenvironment

Specialty stores are characterized by ________. A) the sale of convenience and staple items B) narrow product lines with deep assortments C) a wide range of products and categories D) low prices on a wide range of goods E) routinely purchased food products and services

B) narrow product lines with deep assortments

Fargo Inc. is a carbonated beverage manufacturer that has many manufacturing plants around the world. It is planning to shift from using thermal power to wind power for its manufacturing plants in the Netherlands to decrease dependency on nonrenewable sources of energy. This scenario depicts Fargo's concern for its ________ environment. A) economic B) natural C) demographic D) political E) cultural

B) natural

Outbound logistics refers to moving ________. A) unwanted, excess products from resellers to producers B) raw materials from suppliers to the factory C) excess materials from the factory to suppliers D) products from the factory to resellers and ultimately to customers E) broken, damaged products from customers to producers

B) raw materials from suppliers to the factory

The ________ environment is perhaps the most dramatic force shaping the destiny of individuals and offering exciting opportunities for marketers. A) demographic B) technological C) political D) social E) cultural

B) technological

Which of the following concepts is based on a customer-centered philosophy? A) the product concept B) the marketing concept C) the production concept D) the selling concept E) the distribution concept

B) the marketing concept

________ is any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor. A) Sales promotion B) Personal selling C) Advertising D) Public relations E) Direct marketing

C) Advertising

A firm has a huge amount of individual customer data saved in different databases. Which of the following can be used to integrate, analyze, and apply the available information effectively? A) online market research tools B) integrated marketing systems C) CRM systems D) internal survey methods E) quality assurance tools

C) CRM systems

________ marketing involve engaging directly with carefully targeted individual consumers and customer communities to both obtain an immediate response and build lasting customer relationships. A) Undifferentiated and differentiated B) Mass and targeted C) Direct and digital D) Internal and external E) Standardized and customized

C) Direct and digital

Which of the following is true of a good marketing information system? A) It focuses solely on maximizing the amount of data generated irrespective of relevance. B) It typically uses only external sources of data in marketing research. C) It balances the information that a firm would like to have against what they really need. D) It develops a way of offering information about future plans of action that might not be very feasible or cost-effective. E) It eliminates the time-consuming task of assessing the information needs of a firm.

C) It balances the information that a firm would like to have against what they really need.

Which of the following is true of personal selling? A) It is the most effective promotional tool for geographically dispersed buyers. B) It allows firms to dramatize product offers through arts and visuals. C) It is the most expensive promotional tool for companies to utilize. D) It is an ineffective method for building long-term customer relationships. E) It presents a firm's message as news rather than as a sales-directed communication.

C) It is the most expensive promotional tool for companies to utilize.

________ are sets of interdependent organizations that help make the product or service of a company available for use by consumers or business users. A) Research and development channels B) Upstream channels C) Marketing channels D) Raw materials suppliers E) Backward integration chains

C) Marketing channels

________ is the sum of all the values that customers give up to gain the benefits of having or using a product or service. A) Payroll B) Profit C) Price D) Cost E) Salary

C) Price

________ segmentation factors divide buyers into different groups based on social class, lifestyle, or personality characteristics. A) Geographic B) Demographic C) Psychographic D) Behavioral E) User status

C) Psychographic

What country has the highest rate of inflation in the world right now? A) Monaco B) Germany C) Venezuela D) Brazil E) United States

C) Venezuela

Hollingsworth is a retail company that is planning to release a new line of luxury personal care products. Its managers are now reviewing the sales history of similar products and conducting marketing surveys to estimate minimum and maximum sales for the product. In which of the following stages of the new product development process is the product? A) test marketing B) idea screening C) business analysis D) marketing strategy development E) concept testing

C) business analysis

Lovely Skin is establishing a pricing strategy for a new moisturizer. The total cost to produce each unit is $3.50. The company has decided to add a $1.50 markup, so the unit price to distributors will be $5. Lovely Skin is using a ________ approach to price the new moisturizer. A) value-added B) good-value C) cost-plus D) competitor-based E) break-even

C) cost-plus

The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction is referred to as ________. A) perceived-value management B) societal marketing C) customer relationship management D) partner relationship management E) enterprise resource planning

C) customer relationship management

A strategy for company growth that involves increasing sales to current market segments without changing the product is known as ________. A) market development B) market differentiation C) market penetration D) product development E) diversification

C) market penetration

In which of the following structures does a company organize its sales force along customer or industry lines? A) demographic sales-force structure B) service sales-force structure C) market sales-force structure D) territorial sales-force structure E) product sales-force structure

C) market sales-force structure

In which of the following structures does a company organize its sales force along customer or industry lines? A) demographic sales-force structure B) service sales-force structure C) market sales-force structure D) territorial sales-force structure E) product sales-force structure

C) market sales-force structure

Power centers are characterized by the ________. A) lack of an anchor store B) sale of exclusive brands only C) provision of individual entrances to each store D) provision for nonretail activities, such as playgrounds E) absence of any pricing strategies for differentiation

C) provision of individual entrances to each store

Which of the following sources constitutes the internal database of a company? A) commercial online databases B) conversations on social media C) the company's sales records D) reports sold by market research firms E) the Web

C) the company's sales records

Which of the following is part of the microenvironment of a firm's marketing environment? A) the political state of the country in which the firm exists B) the cultural forces that exist in a society C) the suppliers who work with the company D) the technological resources available to the company E) the different demographic trends in the market

C) the suppliers who work with the company

Which of the following is true of strategic planning in a firm? A) It deals with maintaining the company's current business ventures. B) It focuses on the firm's internal environment rather than the external environment. C) It occurs at the business-unit, product, and market levels rather than at the corporate level. D) It deals with adapting the firm to take advantage of changing marketing opportunities. E) It involves preparing short-term investment objectives at the product level.

D) It deals with adapting the firm to take advantage of changing marketing opportunities

Which of the following statements is most likely true about direct and digital marketing? A) They are used to sell goods to an undifferentiated market segment. B) They are inconvenient and lengthen the process for most buyers. C) They remain unaffected by the rapid growth of technologies. D) They build customer engagement and constitute a complete model for doing business. E) They are rarely used by companies as supplementary channels.

D) They build customer engagement and constitute a complete model for doing business.

Which of the following statements is true of salespeople? A) They do not work with wholesalers and retailers. B) They are employed mostly in click-only companies. C) They do not represent the customers to the company. D) They represent a company to its customers by communicating and selling. E) They represent a new class of professionals who have emerged as part of the steep rise in retailing

D) They represent a company to its customers by communicating and selling.

Which of the following is true of product positioning? A) A product's position is defined by the number of competitors in a market. B) Product positioning has little influence on the design of marketing mixes. C) Consumers generally reevaluate products every time they make a buying decision. D) To simplify the buying process, consumers are likely to position products in their minds. E) Consumers cannot position products with or without the help of marketers.

D) To simplify the buying process, consumers are likely to position products in their minds.

"Informing the target market about a price change for a signature cookie dough product through a national TV campaign within three months" is an example of a(n) ________ objective. A) reminder B) comparative C) informative D) advertising E) persuasive

D) advertising

One reason demographic variables are the most popular bases for segmenting customer groups is because they ________. A) create smaller segments B) create more easily accessible segments C) do not involve stereotypes D) are easier to measure than other variables E) involve fewer attributes to consider

D) are easier to measure than other variables

A(n) ________ describes a person's relatively consistent evaluations, feelings, and tendencies toward an object or idea. A) role B) cue C) drive D) attitude E) motive

D) attitude

PetSafe Pet Supplies, a pet-food company, divides the pet market according to the pet owners' gender, occupation, income, and family life cycle. In this case, which of the following variables has the company used for market segmentation? A) geographic B) psychographic C) benefit D) demographic E) occasion

D) demographic

Becca wants to buy a new coat. She asks her friends to recommend a store and/or a style of coat. She looks for sale advertisements for coats in newspapers and also visits nearby stores to check if she can find a coat in her budget. In this case, Becca is most likely in the ________ stage of the buyer decision process. A) product evaluation B) evaluation of alternatives C) need recognition D) information search E) purchase decision

D) information search

Stores that provide moderate sales assistance because they carry shopping goods about which customers need a moderate level of information are called ________ retailers. A) self-service B) full-service C) off-price D) limited-service E) convenience

D) limited-service

Appliance maker Whirlpool assigns individual teams of salespeople to big retail customers such as Sears, Lowe's, Best Buy, and Home Depot. Each Whirlpool sales team aligns with the large customer's buying team. Whirlpool has most likely adopted a ________ sales-force structure. A) product B) team-based C) territorial D) market E) complex

D) market

PC manufacturer, Lenovo, focuses on low labor costs and mass distribution to ensure the continuous availability of its products at reasonable prices. Lenovo most likely follows the ________. A) customer-driving marketing concept B) marketing concept C) societal marketing concept D) production concept E) selling concept

D) production concept

Power Pro, a leading manufacturer of lawn and garden equipment, releases a new line of cordless, lightweight, electric weed trimmers. To boost sales, Power Pro issues a 50 percent off coupon to the first 100 buyers at all Home Depot stores in the Northeast. Which element of the promotion mix has Power Pro used in this scenario? A) public relations B) crowdsourcing C) advertising D) sales promotion E) personal selling

D) sales promotion

The concept of ________ lends even more importance to the salesperson's customerrelationship-building abilities. A) sales-force territory B) sales promotion C) sales-force management D) salesperson-owned loyalty E) sales-force structure

D) salesperson-owned loyalty

Which of the following is the first step in developing an advertising program? A) setting the advertising budget B) developing an advertising strategy C) developing a brand message D) setting advertising objectives E) evaluating advertising campaigns

D) setting advertising objectives

The authors suggest that the term "supply chain" may be too limited because it takes a "make-and-sell" view of the business. They believe the term ________ is more appropriate because it suggests a "sense-and-respond" view of the market. A) "upstream chain" B) "downstream chain" C) "market chain" D) "production chain" E) "demand chain"

E) "demand chain"

Which of the following is most likely true of a global firm? A) A global firm typically operates from one country. B) A global firm engages in joint partnerships overseas. C) A global firm sees the world as many different markets. D) A global firm maximizes the importance of national boundaries. E) A global firm manufactures and markets goods wherever it can do the best job.

E) A global firm manufactures and markets goods wherever it can do the best job.

________ involves combining two or more systems of transportation to move products. A) Vertical transportation B) Disintermediation C) Just-in-time management D) Vertical integration E) Multimodal transportation

E) Multimodal transportation

________ builds around what P&G calls the "First Moment of Truth" — the critical three to seven seconds that a shopper considers a product on a store shelf. A) Internal marketing B) Sole sourcing C) Warehousing D) Test marketing E) Shopper marketing

E) Shopper marketing

In a(n) ________ marketing system, leadership over production and distribution is assumed through the size and power of one or a few dominant channel members. A) direct B) contractual vertical C) horizontal D) corporate vertical E) administered vertical

E) administered vertical

Which of the following is a direct digital marketing tool? A) printed catalog B) direct mail C) telephone D) television E) blog

E) blog

Wayne Wholesaling fulfills many channel functions for its customers. The company mainly focuses on helping retailers to train their salespeople, improve store layouts, and set up inventory control systems. Based on this description, which channel function is provided by Wayne Wholesaling? A) buying and assortment building B) selling and promoting C) risk bearing services D) market information services E) management services and advice

E) management services and advice

In a promotion mix, ________ performs the functions of building a good rapport with entities outside the company, building up a good corporate image, and handling unfavorable rumors and events. A) personal selling B) sales promotion C) direct marketing D) advertising E) public relations

E) public relations

The Fashion Store, a new startup, sets product prices so that revenues will equal manufacturing and marketing costs. The pricing strategy used by the company is referred to as ________ pricing. A) good-value B) value-added C) cost-plus D) competition-based E) target return

E) target return

A tax on an imported product designed to raise revenue or protect domestic firms is referred to as a(n) ________. A) exchange B) excise C) fine D) quota E) tariff

E) tariff

Loretta Inc., a U.S.-based watch manufacturer, sells its products in France, China, Russia, and India. To manage sales, Loretta appoints a number of sales representatives to each location. Sales representatives report to area managers, and area managers coordinate sales in their respective areas before reporting to regional managers. Loretta has most likely adopted a ________ sales-force structure. A) customer B) product C) complex D) distributor E) territorial

E) territorial

Manufacturers' agents are the most common type of agent wholesaler. (True or false)

True

Merchant wholesalers are the largest single group of wholesalers, accounting for roughly 50 percent of all wholesaling. (True or false)

True

Order getters typically participate in creative selling, social selling, and relationship building. (True or false)

True