Marketing True/False Test 2
if Burger King added tacos to the burger oriented menu in its existing restaurants, it would be seeking "market development opportunities
False
is a product market segment is homogeneous within it is called a substantial target market
False
it is usually necessary for a firm to use a family brand rather than individual brands if it plans to offer products at different quality and price levels to different target markets
False
a close buyer seller relationship in a business market may reduce a firms flexibility
True
"Positioning" means using a map to show where a firm's products are distributed geographically
False
A firm which tries to increase sales by selling new products in new markets is pursuing "market development" opportunities
False
a market is a group of two or more sellers who offer substitute ways of satisfying customer needs
False
a service is not a product because services don't include any physical good
False
according to out class discussion, the consumer product classes are based on why consumers use products
False
brand equity is likely to be lower is customers insist on buying a product and retailers are eager to stock it
False
brand insistence means customers usually choose the brand over other brands perhaps out of habit or past experience
False
business product classes are based on the way that buyers shop for and buy products, because there is much more shopping for business products compared to consumer products
False
capital items which are more expensive and longer-lived than installations are called accessory equipment
False
consumer products that a customer really wants and is willing to make a special effort to shop for and compare different possibilities are speciality products
False
consumers usually plan and shop for impulse products
False
dealer brands are brands created by producers
False
dependability of supply is usually much less important that price for most business customers
False
expense items are depreciated over many years while capital items are charged off as they are used usually in the year of purchase
False
few purchasing managers have been able to turn over any of their order placing to computers because so few organizational purchases are routine
False
for professional services which are needed only occasionally and require special skills, it is usually better for a firm to have its own employees provide them than to use outsiders
False
goods are intangible and services are tangible
False
manufacturer brands are always advertised and distributed more widely than dealer brands
False
market segmentation says that target marketers should develop one good marketing mix aimed at a fairly large market
False
negotiated contract buying would be used when the buyer knows precisely what he wants and the requirements of the job aren't likely to change as the job is done
False
personal selling is important for new unsought products but it tends not to be important for regularly unsought products
False
shopping for a speciality product involves comparing the special features of different brands
False
shopping products that a customer sees as basically the same and wants at the lowest price are heterogeneous shopping products
False
speciality products are usually only purchased one in a lifetime, so the customer must search extensively before buying
False
straight rebuy buying takes longer than modified rebuy or new task buying and offers more chance for promotion impact by the seller
False
the martinis company has just modified and enlarged its product line to meet the changing needs of its current customers. this is an example of "market development"
False
the process of organizational buying is entirely different from consumer buying
False
the product area is concerned with what goods and services are produced but not with the decisions about installation, instructions on use, packaging, brand name, and warranty or after sale service
False
the product life cycle concept is concerned with planning for product recycling to protect the environment
False
the universe product code has been opposed by large supermarket chains because it slows down the checkout process
False
there are more final consumers than business and organizational customers, so more is purchased by final consumers
False
there is no real reason for a firm to use individual brands rather than a family brand-- except to avoid confusion
False
when comparing two similar products, the product with the most features is the higher quality product
False
"positioning" shows how proposed and/or present brands are located in a market--as seen by customers
True
A "substantial" market segment is one which is big enough to be profitable
True
Finding "competitive advantages" is important because they are needed for survival in increasingly competitive markets
True
Just-in-time relationships between buyers and sellers usually require operational linkages and information sharing
True
Like final consumers, organizations make purchases to satisfy specific needs, but their basic need is for goods and services that will help them satisfy their own customers or clients.
True
Product means the need-satisfying offering of a firm
True
When a firm tries to increase sales by offering new or improved products to its present markets, this is called "product development"
True
a firm can lose all rights to a brand name is the name becomes a common descriptive term for that kind of product
True
a firms relevant market for finding opportunities should be bigger than the present product market but not so large that it couldn't expand and still be an important competitor
True
a good market segment should be composed of people who are as homogeneous as possible with respect to their likely responses to marketing mix variables
True
a manager who aggregates all potential customers into a single product market segment is likely to find that the segment is not homogeneous
True
a marketing manager should make sure the firms brand names don't become so familiar that they become common descriptive terms for certain kinds of products
True
a product assortment is the set of all product lines and individual product that a firm sells
True
a product might involve a physical good, service or a combo of the two
True
a product should be thought of as potential customer satisfactions or benefits
True
a product which has no brand other that the identification of the contents is a generic product
True
a requisition is a request to buy something
True
a warranty explains what the seller promises about its products
True
although the total industry demand for business products may be inelastic, the demand facing individual sellers may be extremely elastic
True
because packaged products are regularly seen in retail stores a good package may give a firm more promotion effect than it could possibly afford with advertising
True
brand familiarity means how well customers recognize and accept a company brand
True
brand names that convey a positive image in one language may be meaningless in another
True
brand preference means customers usually choose the brand over other brands perhaps out of habit or past experience
True
branding includes the use of trademark and brand names to identify a product
True
branding would be more likely to be successful if dependable and widespread availability of a product is possible
True
business product classes are based on how buyers see products and how the products are to be used
True
consumer product which offer really new ideas that potential customers don't know about yet are new unsought products
True
consumer products that a customer feels are worth the time and effort to compare with competing products are shopping products
True
consumer products which a customer buys on sight as unplanned purchases, may have bought the same way before, and wants right now are impulse products
True
consumer products which are bought often, routinely and without much thought are staples
True
convenience products include staples, impulse products, unplanned purchases, and emergency products
True
cost considerations usually favor more aggregating and larger market segments but smaller segments may be required to satisfy needs more exactly
True
differentiation emphasizes uniqueness rather than similarity
True
differentiation means that the marketing mix is distinct from and better hat what is available from a competitor
True
differentiation often requires firm to fine-tune its marketing mis to meet the specific needs of its target markets
True
dimensions that should be looked at when segmenting consumer markets are: geographic location and other demographic characteristics, behavioral needs, urgency to get needs satisfied, and willingness to compare and shop
True
effective market segmentation is a two step process that starts with naming broad product markets and then goes on to segmenting these broad product markets into more homogeneous submarkets
True
emergency products are purchased only when the need is great and urgent and therefore price is usually not very important
True
even consumers who don't pay attention to unit pricing may benefit from the price competition it encourages
True
expense items which have had more processing than raw materials and become part of a finished product are component parts and materials
True
family brands ma cut promotion costs because the goodwill attached to one or two products may help the others
True
firms should try to show the value of unsought products through promotion because people don't want them or know that they are available
True
for different people, the same product might be a convenience product, shopping product, or a speciality products
True
good market segments should be homogeneous within, heterogeneous between, substantial and operations
True
ideally, segmenters should start with the ice that each person is one of a kind and can be described by a special set of dimensions that may be used to aggregate similar customers together
True
in cooperative relationships in a business market, the buyer and seller work together to jointly achieve both mutual and individual objectives
True
installations are long lasting capital items such as building and land rights, custom made equipment, and standard equipment
True
it may be economically impossible for small firms to offer strong warranties
True
marketing opportunities involving present products and present markets are called "market penetration" opportunities
True
modified rebuy relationships usually occur because of dissatisfaction with a current suppliers ability to fulfill the needs of organizational buyers
True
most retail and wholesale buyers seem themselves as purchasing agents for their target customers
True
multiple buying influence means that the buyer share the purchasing decision with several people
True
one of the difficult things about segmenting is that not every customer will neatly fit into some market segment
True
one of the important differences between raw materials and other business products is that raw materials usually have to be graded
True
organizational buyers are also referred to as industrial or intermediate buyers
True
organizational buyers often but on the basis of a set of purchasing specifications
True
products which a consumer needs but isn't willing to spend much time shopping for are convenience products
True
professional services are usually expense items which support the operation of a firm
True
purchasing managers are buying specialists for organizations and may not have a lot of power
True
raw materials are unprocessed expense items such as farm products and natural products
True
shopping products that a customer sees as basically the same and wants at the lowest price are homogeneous shopping products
True
supplies (business products) are expense items that do not become part of a final product
True
the Lanham Act spells out the exact method for protecting registered trademarks, but does not force firms to register their trademarks
True
the battle of the brands is the competitions between dealer brands and manufacturer brands
True
the contractual purchasing of raw materials may well start out as a new task buying situation but may end up n the long term as a straight rebuy decision is a supplier continually meets its supply and delivery commitments for raw materials
True
the demand for business products derives from the demand for final consumer products
True
the four groups of consumer products are: convenience, shopping, speciality, and unsought
True
the internet is making even straight rebuys more competitive
True
there are two broad groups of product classes based on the type of customer that will use the product
True
to protect themselves from unpredictable events, most purchasing managers seek several dependable sources of supple
True
total distribution costs may increase because of packaging
True
unit pricing means placing the price per ounce, or some other standard of measure, on or near the product
True
using one or two demographic dimensions to describe market segments usually doesn't provide enough detail for planning a marketing strategy
True
when firms are confronted with securing new equipment, machinery and building that are considered to be strategic in nature, a new task buying situation usually is recommended
True
when selling to the government customers, both bid buying and negotiated contracts are common
True
without promotion, unsought products will probably stay unsold
True
branding is more likely to be successful if the product is the best value for the price and quality can be consistently maintained
`True
During the sales decline stage of the product life cycle, no firm can earn a profit
false
During the various stages of the product life cycle, the attitudes and needs of target customers do not change
false
Sales and profits generally decrease continually throughout the product life cycle
false
a good business manager should adhere to the idea "if it aint broke, don't fix it"
false
a good marketing strategy will work all throughout the different stages of the product life cycle
false
a marketing manager who is willing to spend enough on persuasive promotion can usually get consumers to buy anything the company chooses to produce
false
according to our class discussions this session, the proper function of marketing is to persuade consumers to buy what firms want to sell
false
as the product life cycle moves on, the marketing manager should expect to see the market move closer to monopoly
false
even in a full scale market test the firm is testing only the product, not the whole marketing mix
false
having patent on a new product provides very strong protection in slowing down competitors
false
in general, product life cycles appear to be getting longer in recent years
false
in the market growth stage of the product life cycle, firms usually earn smaller profits than they did in the market introduction stage because new competitors enter the market
false
mass marketing means focusing on some specific customers, as opposed to assuming that everyone is the same and will want whatever the firm offers
false
monopolistic (imperfect) competition may result in high costs and therefore it does not do a good job of serving consumers the way they want to be served
false
new product development usually fits into the old routines of a firm, so its not necessary for top management to support new product development in any special way
false
sales growth is usually faster when the product is incompatible with the past values and experience of the target market
false
setting a low price for a firms offering is a sure way of creating high customer value
false
the first step in new product development is evaluating ideas
false
the four P's of he marketing mix are people, products, price and promotion
false
the length of each stage in the product life cycle is set
false
the market maturity stage of the product life cycle has very low promotion expenditures, little price competition and rising industry profits
false
the market maturity stage of the product life cycle rarely lasts more than one or two months
false
the probable length of the product life cycle has little effect on strategy planning
false
the product life cycle shows that sales of an individual firms product follows a general pattern -- which is very useful for marketing strategy planning
false
the risks and costs of failure in new-product development are minor when one considers the likely rewards
false
the smaller the comparative advantage pf a new product over those already on the market, the faster its sales will grow
false
when introducing a really new product, the marketer should be concerned about building channels of distribution but not about promotion
false
when planning new products, managers need not be too concerned about safe design because it is each customers responsibility to decide what products are safe to buy and use
false
a fad cycle is shorter than a fashion cycle
true
a firm may introduce or withdraw a product during any stage of the product life cycle
true
a firm that adopts the marketing concept will aim all its efforts at satisfying customers, while trying to make a profit
true
a marketing plan usually spells out the time schedule for a marketing strategy as well as the time related details
true
a marketing program blends all of a firm marketing plans into one big plan
true
a marketing strategy is composed of two interrelated parts--a target market and a marketing mix
true
a new product development process helps make sure that new ideas for products are carefully studied and good ideas are marketed profitably
true
a sales forecast is an estimate of how much an industry or firm hopes to sell to a market segment
true
customer value is the difference that a customer sees between the benefits of a firms offering and the costs of obtaining those benefits
true
during the market growth stage of the product life cycle, industry profits usually reach their peak and begin to decline
true
experts generally estimate that 80 percent of all new consumer packaged goods brands fail
true
firms should try to develop marketing mixes that make the most of the market growth stage of the product life cycle when profits are highest
true
how quickly a new product will be accepted by customers and how quickly competitors will follow with their own version of a product are important factors when planning the best strategy for a new product
true
if an individual is injured by a defective or unsafely designed product, the sellers legal obligation to pay damages is called product liability
true
if the prospects in some product market are poor a firm may need a phase out strategy
true
in the U.S. the aim of the economic system has been to satisfy consumers needs as they -- the consumers-- see them
true
in the new product development process discussed in class, the burden is on the new product idea to prove itself or be rejected
true
industry profits usually decline steadily during the market maturity stage of the product life cycle
true
its possible for a firm with a mature product in the US to experience new growth with the same product in international markets
true
making sure that the customer benefits of a marketing mix exceed the customers costs of obtaining those benefits is one way to gain a competitive advantage
true
market introduction, market growth, market maturity, sales decline are the four stages of the product life cycle
true
market potential refers to what a whole market segment might buy
true
marketing efforts help the economy grow by stimulating innovation
true
marketing often does cost too much because many firms improperly blend the four Ps and misunderstand both their customers and the marketing environment that affects their operation
true
marketing strategy planning for. product depends on where the product is in its life cycle and how fast it is moving to the next stage
true
monopolistic (imperfect) competition is caused by customer preferences not business manipulation of markets
true
product life cycles describe industry sales and profits within a particular product market, and not the sales and profits of individual products or brands
true
sales growth is faster when a new product is easy to use and its advantages are easy to communicate
true
sales growth is faster when the product can be used on a trial basis
true
test marketing can be risky because it gives information to competitors, but not testing may be even riskier
true
the legal environment sets the minimum standards of ethical behavior
true
the market introduction stage of the product life cycle is usually marked by losses, as money is being invested in the hope of future profits
true
the product life cycle is the four stages a new product idea goes through from beginning to end
true
the sales and profits of an individual brand may or may not follow the life cycle pattern of the product idea
true
the stage of the product life cycle in which competitors are most likely to introduce product improvements is the market growth stage
true
to be called "new" according to the FTC a product must be entirely new or changed in a functionally significant or substantial respect
true
to develop lasting relationships with customers, marketing orientated firms need to focus on customer satisfaction both before and after each sale
true
when a large firm has several different kinds of products, product managers or brand managers may be put in charge of each one
true