Principles of Marketing
_____ ensures that a product meets its specifications in a variety of environments determined by the company.
Alpha testing
_____ are characterized by having a wide variety of household and personal types of merchandise.
Department stores
_____ seeks to measure or describe phenomenon so as to answer the questions who, what, where, when and how.
Descriptive research
_____ might not be central to the buyer's business, but the offerings are very important to a person making the buying decision.
Facilitating offerings
_____ consist of final products that have been put together from raw materials, manufactured materials, and/or component parts.
Original equipment manufacturing offerings
_____ involves tailoring a product so that it stands out from the competition and people want to buy it.
Positioning
In what stage of the B2B buying process do buyers look online to find vendors, attend industry trade shows and/or e-mail suppliers with whom they have relationships?
Potential suppliers are searched for.
_____ limit the amount and type of information a company can collect about a consumer.
Privacy laws
Brands add value because they can save the consumer "search time" in addition to providing piece of mind for high-involvement products.
T
Channel conflicts are atypical.
T
Companies often resort to repetition to be sure their advertising messages get through to you.
T
Customer satisfaction results when expectations meet perceived performance.
T
Dissatisfied customers are likely to tell more friends about their negative experiences than satisfied customers are about good experiences.
T
Distributors are like manufacturer's representatives in that they can sell offerings from multiple manufacturers.
T
Facilitating offerings are products and services a company purchases to support its operations but are not part of the firm's final product.
T
Firms develop strategies to extend the maturity stage of their products by modifying their target markets, their offerings, or their marketing strategies.
T
Firms that manufacture cereals and snacks typically utilize mass marketing efforts.
T
For effective communication to occur, the receiver must interpret the message as the sender intended.
T
From the buyer's point of view, an independent agent can be the best option for finding a good price with a small amount of hassle.
T
Google's AdSense and AdWords programs can be utilized by companies to aid in segmentation practices.
T
In B2B markets, customers are typically a large source of new product ideas.
T
It is important to keep the audience in mind when writing a research report.
T
Jimmy can utilize Facebook to try to generate buzz for his client's book.
T
Marketing activities, such as developing a marketing strategy, do not occur separately from the rest of the company.
T
One of the most well-known psychographic surveys is VALS.
T
Packaging can be part of the brand.
T
People who act like customers and visit competitors to learn about their customer service and their products are known as mystery shoppers.
T
Product reviews on the Internet can be posted by anyone, including the company.
T
Professional buyers are shrewd and well informed.
T
Resale price maintenance agreements are a great tool for companies who want to restrict the price a retailer can charge for a product.
T
Salespeople may deal with objections from potential customers during various parts of the sales process.
T
Sellers like straight rebuys because the buyer doesn't consider any other alternative products or search for new suppliers.
T
Syndicated research is a type of secondary research.
T
The Business Marketing Association has also developed a code of ethics that prohibits bribery and other practices such as disparaging a competitor's products unfairly and treating one's suppliers equitably.
T
The GE approach evaluates the strengths and the attractiveness of industries as high, medium, and low.
T
The amount of the coupon is later reimbursed to the retailer by the manufacturer.
T
The beginning and the end of a message should be strong in comparison to the middle.
T
The company's strategic plan and the marketing plan both begin with a focus on customers.
T
The determination of value will vary for each customer.
T
The marketing concept requires that marketers seek to satisfy customer wants and needs.
T
The money organizations spend on different types of communication will change as the media landscape changes.
T
The size of a company will affect how the different stages of their new product development process are conducted.
T
The total amount someone pays to own, use, and eventually dispose of a product is the TCO.
T
When Sally selected a group of upper income people living in Atlanta as her market, she was engaged in market segmentation.
T
_____ are those that buyers do not generally want to have to shop for until they need them.
Unsought offerings
_____ are the people and groups within the organization who actually utilize the product.
Users
The personal value equation of the customer is reflected in the formula
Value = Benefits received - [Price + Hassle]
The General Electric approach examines _____.
a business's strengths and the attractiveness of industries
A brand is _____.
a name, picture, design, or symbol used by a seller to differentiate their offerings
A unique selling proposition is
a specific benefit consumers will remember
A heavy user is defined as someone who
actually uses or consumes the offering regularly.
As exchanges occur, how should planners adjust?
all of the above
Which of the following are activities in the AMA's definition of marketing?
all of the above
A supply chain consists of
all organizations that play a part in the producing, promoting, and delivering of an offering
Lynn called a lead to introduce herself and her company. She is engaging in the _____ step in the sales process.
approach
Qualifying involves
asking questions to determine whether a buyer is likely to become a customer.
Al manages a grocery store. He decided to put the bread on aisle 1 and the milk next to aisle 10. He is controlling his store's _____ to increase the time his customers spend in the store, which will hopefully result in more sales per customer.
atmospherics
When creating a questionnaire, it is important to
be clear and unambiguous.
A company that produces laundry detergent offers one product with stain removing action while another is made for energy efficient washing machines. The company has utilized a _____ strategy.
benefits segmentation
Companies ultimately utilize supply chain management to
better satisfy customers and gain a competitive advantage.
A _____ is responsible for a broad group of offerings, such as home cleaning products, which have various brands within each group.
category manager
Tom is trying to develop a partnership with a food bank that involves his company donating canned goods in relation to the number of people in the community who volunteer their time at the food bank. Tom is engaging in ______.
cause-related marketing
The firms that a company partners with to actively promote and sell a product as it travels through its marketing channel to users are referred to by the firm as its _____.
channel members
A(n) _____ draws a logical conclusion.
closed-ended message
Overstating the offering's performance level indicates a(n) _____ gap.
communication
Market managers can be found in which types of markets?
consumer and B2B
Intensive distribution is utilized for products that
consumers purchase on the spot without much shopping around.
Marketing of _____ items is often limited to simply trying to get the product in as many places as possible where a purchase could occur.
convenience offerings
Cross-promotions are utilized to
introduce new marketing members to a community
A bonus
is paid at the end of a period of time based on the total amount sold
An active influencer is defined as someone who
is willing to tell others about a product in addition to the fact that others listen to him
As the demand for MP3 players increased, so did the demand for headphones. This is an example of _____.
joint demand
A(n) _____ is formed when two parties agree to share their profits, losses, and control with one another in an economic activity they jointly undertake.
joint venture
A _____ is a two-dimensional graph that visually shows where a product stands relative to competitors.
perceptual map
This segmentation category answers the question, "How do my customers live their lives?"
psychographic
Convincing people that global warming is a real threat is an example of
social marketing.
In Michael Porter's five forces model, the threat of supplier bargaining power refers to _____.
the likelihood a supplier will enter into a customer's market
If a company has multiple planning levels,
the plans must be consistent and all must help achieve the overall goals of the corporation.
A consumer's _____ involves how one spends his/her time.
lifestyle
Cash-and-carry wholesalers are an example of _____.
limited-service wholesalers
The number of different or distinct product lines offered by a company is known as _____.
line breadth
A number of variations in a single product line is known as _____.
line depth
What is the actual transportation and storage of materials and products?
logistics
A _____ is a finished good that still has to be incorporated into something else to be usable.
manufactured material
Olive has decided to open up a factory outlet store in rural Alabama. This is known as a _____.
manufacturer's sales branch
The net promoter score is the number of recommenders an offering has
minus the number of complainers.
The purpose of a premium is to
motivate a consumer to buy a product multiple times.
Sales contests are designed to
motivate salespeople to increase sales of particular products.
When a consumer realizes there is a difference between their current state and their desired state, he/she has entered the _____ stage of the buying process.
need recognition
The more positive the _____ score, the better the company's performance.
net promoter
_____ characteristics divides people and organizations into groups according to how they act toward products.
Behavioral
_____ loyalty refers to a customer habitually purchasing a product, while ____ loyalty refers to the degree to which a customer prefers or likes a brand.
Behavioral; attitudinal
_____ not only tests whether the offering works as advertised, but it also tests the offering's delivery mechanisms, service processes, and other aspects of marketing the product.
Beta testing
_____ are characterized as being motivated by self-expression and tend to be young, enthusiastic, and compulsive consumers.
Experiencers
_____ is a budgeting method whereby companies make sure their promotion budgets are comparable to the competitors'.
Competitive parity method
The problem with a pull strategy is that it doesn't focus on the needs of the actual users of products.
F
A brand extension involves the creation of a brand and then positioning it in the mind of the consumer.
F
A cash cow is a product with high growth and a high market share.
F
A football team has decided to create a line of apparel geared towards women. The team is engaging in geographic segmentation.
F
A point-of-purchase display is designed to show a channel partner's customers how products work.
F
A sales quota involves the number and type of sales calls a representative is expected to make in a certain period of time.
F
A salesperson has the right to share customer information with others outside of the business because it has been openly shared.
F
A service dominant logic means engaging in practices that do not diminish the earth's resources.
F
A service is the tangible component of an offering.
F
A subculture consists of a group of people who share the culture's beliefs and values.
F
Atmospherics are the physical aspects of the selling environment that are out of the retailer's control.
F
B2B laws and regulations are often monitored by the DOD.
F
B2B markets tend to have shorter decision cycles than B2C markets.
F
Business level planning at PepsiCo involves employee responsibility of different products and product categories, such as packaging and product decisions.
F
Causal research is typically utilized when a problem has not yet been defined.
F
Collateral is created by sales professionals.
F
Depth interviews involve gathering eight to twelve consumers and gauging their reaction to a product/service concept.
F
Domino's Pizza engaged in sponsorship as a result of employee videos that were posted on YouTube.
F
Exporting and direct investment are examples of international market-penetration strategies.
F
Face-to-face surveys are less expensive to administer than mail surveys.
F
Financial feasibility is the degree to which the company can actually make and service the product.
F
Fluctuating demand occurs when demand changes slightly in response to a change in consumer demand.
F
Focus groups are conducted during the testing stage of the new offerings development process.
F
Geodemographics combines geographic and psychographic information for marketing purposes.
F
Idea generation is typically the most expensive step in the process of developing new offerings.
F
Influencer panels by nature are defined as communities.
F
Long-term customer relationships are typically founded through transactional relationships.
F
Manufacturing becomes the interface between the marketer and the customer.
F
Marketing benefits society by promoting a higher quality of life in two ways: through job creation and the company's ability to reward stockholders with higher dividends.
F
Missionary salespeople call on retailers and provide them assistance with merchandising and selling products to consumers.
F
Opportunities and threats are internal to the organization and are largely uncontrollable.
F
Personal selling is used more in B2C markets than in B2B markets.
F
Physical factors include social situation, time situation, and the reason for purchase.
F
Product managers are found at companies like Procter & Gamble, SC Johnson, and Kraft.
F
Product placements are utilized with the intention to aid in plot development.
F
Recent research indicates that the number of complaints a company gets could be less important to a firm's success or failure than the customer satisfaction scores.
F
Sales executives typically focus solely on sales.
F
Sponsorship is typically a very low cost form of PR.
F
Sugging is illegal because it is unfair.
F
The amount of time within each stage of the product life cycle tends to be similar for most products.
F
The goal of niche marketing is to be a small fish in a big pond.
F
The intranet is an excellent tool utilized by companies to reach consumers.
F
The lines between retailers, wholesalers, and producers are very easy to distinguish.
F
The percent-of-sales method takes into account any changes in the market.
F
_____ set their own hours, determine their own activities, and manage themselves.
Independent agents
_____ includes any distractions receivers and senders face during the transmission of a message.
Interference
A(n) _____ is a way to manage the vast amount of information firms have on hand.
MIS
_____ are often sold by distributors but a consumer can also buy many of the same products at a retail store.
Maintenance, repair, operations offerings
_____ combines the lifestyle traits of consumers and their personality styles with an analysis of their attitudes, activities, and values to determine groups of consumers with similar characteristics.
Psychographics
A(n) _____ outlines what the vendor is able to offer in terms of its product.
RFP
_____ are typically thought of as commodities, so price and availability are very important in relation to the competition.
Raw materials offerings
The sub-segment of the Hispanic market that is characterized as containing individuals who are English dominant, free thinkers, and multicultural is known as _____.
SYLrs
A divested product is one that the firm drops or sells.
T
A mission statement that reflects a production orientation is based on the premise that success is due to great products and that simply creating supply will lead to demand.
T
A pull strategy utilizes customers to convince businesses to sell a product.
T
All things being equal, companies want to do business with firms that are responsible.
T
_____ refers to when people forget information, even if it is relevant to them.
Selective retention
_____ are specialty items that are available only through limited channels.
Specialty offerings
_____ are products retailers produce themselves.
Store brands
A company that makes an offering available to certain markets first and then other markets later is employing a rolling launch strategy.
T
A _____ is the person responsible for all business decisions regarding offerings within one brand.
brand manager
Pepsi is an example of a(n) _____.
brand name
A _____ site is a site in which a business buys products from multiple sellers that go there to do business with the firm.
buy side
The advantage of market research is that it
can help make a good decision.
Which of the following are activities in the AMA's definition of marketing?
creating offerings that have value communicating about those offerings delivering those offerings exchanging those offerings E) all of the above *****
The shared beliefs, customs, behaviors, and attitudes of a society are known as _____.
culture , culture
Providing tools to customers that enable them to take control of marketing is known as
customer empowerment.
Warranties and guarantees can be utilized to
decrease postpurchase dissonance.
The least risky global entry strategy is known as _____.
exporting
When entering an international market, _____ is the least risky method, while _____ is the most risky strategy.
exporting; direct investment
A(n) _____ is a characteristic of an offering.
feature
Utilizing coupons or filling out a warranty registration are examples of _____.
feedback
A well-developed value proposition
focuses on the external market, or what customers want.
The stage in the product life cycle when a successful product first becomes profitable is known as the _____ stage.
growth
World of mouth
has a powerful influence on purchasing decisions
In what stage of the new product development process does concept testing occur?
idea screening
In the idea screening stage, companies evaluate new offerings by determining
if the product fits with the image and corporate strategy.
The Federal Trade Commission regulates companies
in an effort to prevent them from engaging in unfair trade practices that can hamper competition
Sponsorship is utilized with the intent to
increase brand awareness, improve corporate image, and reach target markets.
Stealing product strategy information from a competitor is known as
industrial espionage.
A(n) _____ is a special type of community that participates regularly in marketing research activities.
influencer panel
A _____ strategy involves selling existing products or services to new customers.
market-development
The stage in the product life cycle when the market is saturated with competitors is known as the _____ stage.
maturity
Trent would like to increase his clothing sales by 4% over the next 24 months. Trent has created a(n) _____.
objective
Forming close, personal relationships with customers and giving them exactly what they want is known as _____.
one-to-one marketing
Mary ran into a store dedicated to the newest cat foods offered by her favorite pet food provider. She had so much fun interacting with the free samples and toys, she decided to bring her cat Fluffy to the store the next week, but it was no longer there. Mary most likely found a _____.
pop-up store
As companies do not want their products to be another "face in the crowd", marketers should be sure to _____ their product.
position
Buyer's remorse is known as
postpurchase dissonance.
Manufacturers and service providers are types of _____.
producers
Martin has incorporated several features customers have suggested into a new model of his company's vacuum cleaners. Martin is engaged in
product development.
Offerings are _____.
products and services designed to deliver value to customers
Purchasing agents for merchandisers are known as
professional buyers.
Both a sales receipt and a completed form are necessary to receive a _____.
rebate
Customer-facing personnel can be a powerful resource for companies if empowered to
rectify customer service failures on the spot.
The Food and Drug administration _____.
regulates the labeling of consumable products
A benefit of utilizing a targeted marketing strategy is that a company may be able to
retain "at risk" customers in danger of defecting to a competitor.
The sales pipeline is also known as the _____.
sales cycle
B2B markets differ from B2C markets because
salespeople personally call on business customers to a far greater extent than they do consumers
Setting performance standards that are too low indicates a(n) _____ gap.
standards
A(n) _____ occurs when a purchaser buys the same product in the same quantities from the same vendor.
straight rebuy
The group of customers toward which an organization directs its marketing efforts is known as the _____.
target market
Avoiding head-on competition with other firms trying to capture the same customers is one reason a firm may choose a _____ strategy.
targeted marketing
Selective perception is
the process of filtering out information based on how relevant it is to you.
The four offering levels include all of the following EXCEPT
the product mix.
Organizations and functions that mine, make, assemble, or deliver materials and products from manufacturer to consumer are referred to as
the supply chain.
David represents a potato chip company. He calls on supermarkets to discuss pricing and store placement. David is a(n) _____.
trade salesperson
Marketers use different types of stimuli to
try to make consumers more perceptive to their products.
Marketers utilize _____ when they create a message with the intention of people passing it along to others, often without the intent to pitch an actual product.
viral marketing
The feature specifications process begins with a strong understanding of
what consumers want and need.
Salespeople are a great source when marketers try to understand
what messages are effective.