principles of marketing |kotler & armstrong | final

The total production costs at Kellner Machine Works are $87,000 out of which $45,000 represent fixed costs. Which of the following is representative of the variable costs incurred by the company?

$42,000

________ requires finding the major advantages people look for in a product class, the kinds of people who look for each positive aspect of a product, and the major brands that deliver it.

Benefit segmentation

Which of the following statements is true regarding competitive marketing intelligence?

Competitive marketing intelligence relies upon publicly available information.

________ consists of inviting 6 to 10 people to meet with a trained moderator to talk about a product, service, or organization.

Focus group interviewing

Which of the following is true with regard to brand equity?

High brand equity provides a company with many competitive advantages.

Which of the following is an advantage of using an internal database?

Internal databases can be accessed more quickly and cheaply than other information sources.

Which of the following is a drawback of local marketing?

Local marketing increases manufacturing costs by reducing the economies of scale.

Refer to the scenario below to answer the following question(s). Carol Veldt, owner of Seagull Terrace, watched her investment grow from a small, seaside motel to a thriving year-round resort in just a few years. Atop a cliff overlooking the Maine coast, Seagull Terrace had attracted thousands of visitors during summer, but then faced a tremendous downturn in business during winter. "But, given the established industries in the nearby towns, very little year-round competition, and our close proximity to Portland," Carol added, "I couldn't understand why seasonality had to hit Seagull Terrace so hard!" So Carol spent her first winter devising a new marketing plan. She put together a promotional package designed to attract business travelers year-round. Carol's plan also involved a seasonal promotional gimmick—to be implemented from early winter to late spring—that would attract the same numbers as the large summer crowd. Her idea worked! During her second winter, Carol greeted numerous business travelers—both satisfied repeat guests as well as new guests who had been snagged by her promotional appeals. "We still have a long way to go," Carol admitted. "Our delicatessen offers entrees that are a part of the local cuisine, but we'd like to expand that. We provide health club privileges off-site, but we'd like to eventually provide our own. These are goals I hope to achieve in a few years. Our first project, however, included a renovation of our guest rooms and I'm quite proud of the results." Carol then added, "Actually there are so many possibilities. With an indoor pool area, I will eventually offer weekend getaways throughout winter." Seagull Terrace offers its customers good accommodations, local delicacies, and amazing seaside views. The overall experience provided at the motel is a part of its ________.

Marketing Offer

________ refers to the measurement of brain activity to learn how consumers feel and respond.

Neuromarketing

Which of the following statements is true of social classes?

People within a social class tend to exhibit similar buying behavior.

Which of the following is true with regard to price?

Price is the sum of all the values that customers give up to gain the benefits of having a product.

________ occurs when a company lengthens its product line beyond its current range.

Product line stretching

________ involves systematically developing networks of supplier-partners to ensure a dependable supply of products and materials for use in making products or reselling them to others.

Supplier development

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

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

Which of the following is true of the Millennials?

They are the children of baby boomers and were born between 1977 and 2000.

Which of the following is true with regard to cash cows?

They can be used to help finance the company's question marks and stars.

Which of the following is true of Gen Xers?

They were first to grow up in the Internet era.

Which of the following statements is true of the idea generation stage in the new product development process?

Truly innovative companies develop extensive innovation networks that capture ideas and inspiration from every possible source.

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

a bag of potato chips

A gym equipment manufacturer encourages customers to become members of the firm's Web site. Membership provides customers with exercise tips as well as discounts on gym equipment and workout apparel. This is an example of ________.

a club marketing program

Sigma Inc., a software firm based in California, reordered 50 printers from the designated provider without any modifications. This is an example of ________.

a straight rebuy

Gina Parker owns an ad agency in Baton Rouge. She regularly purchases cleaning supplies for her custodial staff, using the same vendor and ordering relatively consistent amounts of the same products on each purchase. This is an example of ________.

a straight rebuy situation

Which of the following product offerings is intangible? a package of laundry detergent a taxi ride a wool jacket a gold ring an ink cartridge for a printer

a taxi ride

An MIS is used to ________.

access informations needs

Among the generational groups in U.S population, the ________ are still the wealthiest generation in U.S. history.

baby boomers

An increasing number of American workers currently work from their homes or remote offices and conduct their business by phone or the Internet. This trend has created a ________.

booming SOHO market

The decision process by which business buyers determine which products and services their organizations need to purchase and then find, evaluate, and choose among alternative suppliers and brands is known as ________.

business buying process

The major activity in strategic planning is ________, whereby management evaluates the products and businesses that make up the company.

business portfolio analysis

A consumer organization in Ohio has challenged the marketing decision of a local firm alleging it to be against the larger social interest. In this instance, the firm is challenged by a(n) ________ public.

citizen action

Which of the following refers to a probability sample in which the population is divided into mutually exclusive groups (such as blocks), and the researcher draws a sample of the groups to interview?

cluster sample

Jason West, owner of A1 Cleaning, started his enterprise in 2001. Jason's primary focus had been on office cleaning for large corporations. But in recent months, Jason has seen a decline in demand for his office cleaning services. Surprisingly, the competitive environment appeared relatively stable with no new competitors. However, Jason knew that office cleaning was a high-frequency service that is usually performed daily; therefore, competitors must have been doing something to attract his customers. Building a competitive advantage seemed to be the only option to offset competition. But as Jason pondered over his dilemma, he realized that prior to building his competitive advantage he needed to better understand how customers assessed service quality and what they look for in a superior cleaning service. Jason developed a research plan. First, he gathered information about his competitors, primarily through pamphlets and Web sites, as well as through a few phone calls in order to find out exactly what the competitors offered in their cleaning packages. In addition, Jason obtained from the Chamber of Commerce an updated list of local corporations. He planned on sending written questionnaires to them. Though the list of corporations contained 141 local company names, Jason chose to survey 75 of them. To better understand customer service expectations between both small and large corporations, Jason divided his surveys into two categories. The survey questions were designed to extract specific data from respondents with regard to service quality expectations in correlation to service frequency and price. Jason awaited the results. Though his primary focus had been on large corporations, he was flexible and would aim his efforts differently if needed. In this scenario, which of the following is representative of competitive marketing intelligence?

collecting data about competitors

When consumers are highly involved with the purchase of an expensive product and they perceive significant differences among brands, they most likely will exhibit ________.

complex buying behavior

In a(n) ________, new products and marketing tactics are tested among specifically identified groups of customers and stores

controlled test market

A pastor from Kansas believes that adultery is immoral. This refers to the pastor's ________.

core belief

The advertising slogan, "We bring good things to life," used by General Electric to market itself, is an example of ________ marketing.

corporate image

Which of the following refers to the total combined customer lifetime value of all of the company's current and potential customers?

customer equity

Ralph Goldsmith works for Zenith Inc., a leading cosmetic company based in Illinois. At Zenith, Ralph's primary responsibility revolves around digging deeply into customer data to gain valuable insights about customer needs, motives, and attitudes. This data is, in turn, used by Zenith to personalize its customers' shopping experiences. Ralph's position at Zenith requires him to focus primarily on ________.

customer relationship management

Consumers who show their allegiance to brands, stores, or companies help marketers to segment consumers by their ________.

degree of loyalty

Greg Williams now has the buying power to purchase the desktop computer that he has wanted for the last six months. Greg's want now has become a(n) ________.

demand

________ segmentation divides the market into segments based on variables such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation.

demographic

Demand for outboard motors depends on consumers purchasing fishing boats. This is an example of ________ demand.

derived

A good brand name should most likely be ________.

distinctive

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

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

P&G has sold off a number of lesser or declining brands such as Oxydol detergent and Jif peanut butter. In these examples, management decided to ________ the products.

drop

________ is the act of obtaining a desired object from someone by offering something in return.

exchange

As production moves up, the average cost per unit decreases because ________.

fixed costs are spread over more units

Pacific Fisheries divides its customers into different regional units, such as Asia, Australia, and the Americas. This is an example of ________ segmentation.

geographic

________ segmentation assumes that nations close to one another will have many common traits and behaviors.

geographic

In the aftermath of the Great Recession of 2008 to 2009, consumers ________.

have become more value conscious

Maslow's theory is that ________ can be arranged in a hierarchy.

human needs

In the new product development process, the first idea-reducing stage is ________.

idea screening

A company can install a(n) ________ management system to collect, review, evaluate, and manage new product ideas.

innovation

Workers, managers, and members of the board are examples of ________ publics.

internal

Fun-Spot Fun Park began as a small amusement park in 1985. With nothing more than a merry-go-round, a slide, pony rides, and an ice cream stand, Fun-Spot grew into a popular family attraction with 20 rides, a restaurant, and an outdoor performing arts theater. "My wife, Gail, and I didn't know what we were getting into," commented Ron Hart, the owner. "We just knew that weekenders coming to the lakes in our rural area represented an untapped market." Today, thousands of visitors flock to Fun-Spot: families, children of all ages, and even senior citizens who enjoy strolling through the gardens and the arbors. "There's something here for everyone," Gail Hart said with a smile. "Dozens of companies hold annual company picnics here. We have welcomed class field trips. And we even had one wedding here at the park!" "Here's the funny thing," Ron chimed in. "We really don't know why we've been so successful. There is nothing else like Fun-Spot Fun Park in the area. We were just lucky." "I think it's the ambience of the park that has brought so many visitors," Gail added. "We provide a 'total package' of entertainment. Plus, we try to change our rides and various attractions from time to time for variety." Ron and Gail Hart admitted that making every visitor happy is a priority. "That has always been our philosophy," they said. "Like the park's motto at the entrance reads, 'We're here to make you happy!' And we've always been able to deliver on that because we've never allowed ourselves to grow too big too quickly." Fun-Spot's mission is ________.

market oriented

Paul Robinson has identified a group of potential customers who seem to respond in a similar way to a series of magazine and radio advertisements for his company's product. Paul has identified a(n) ________.

market segment

________ refers to measuring and evaluating the results of marketing strategies and plans and taking corrective action to ensure that the objectives are achieved.

marketing control

The market researchers at HoneyCamp Foods gather daily sales data and sort it by product line and region. With the help of sophisticated tools and techniques, they develop the data needed by marketing managers to evaluate the market share of the company's different products and also to gain valuable market insights. This mix of people and procedures at HoneyCamp Foods that generate actionable marketing insights represents a(n) ________.

marketing information system

Over the past few years, Binney and Smith's Crayola crayons has expanded to more than 80 countries around the world. Crayola crayons are in the ________ stage of the PLC.

maturity

Mission statements should be ________.

meaningful and specific yet motivating

When it first opened stores across the United States, Bateman's, an office supply chain store, had the best product selection, the best service, and the lowest prices compared to other office supply chain stores. As a result, Bateman's captured a significant chunk of the market in the short run. Which of the following positioning strategies did Bateman's most likely use?

more for less

The physical environment affecting marketing activities is referred to as the ________ environment.

natural

________ refers to a business buying situation in which the buyer purchases a product or service for the first time.

new task

Which of the following marketing strategies is most suitable for smaller firms with limited resources?

niche marketing

A church targeting different demographic groups to increase attendance is an example of ________.

not-for-profit marketing

The movie industry in a country is controlled by six large studios that receive 90 percent of the annual revenues from movies. This is an example of a(n) ________.

oligopolistic competition

The marketing concept takes a(n) ________. It starts with a well-defined market, focuses on customer needs, and integrates all the marketing activities that affect customers.

outside-in prospective

Luke Price, a manager in an automobile factory, wanted his subordinates to rate their satisfaction about the new pistons that arrived last month. He asked them to rate the product based on strength and ease of handling. Which of the following is evident here?

performance review

Elmo Inc., a Michigan-based manufacturer of athletic shoes, uses professional athletes in its ad campaigns to help sell its products. This is an example of ________ marketing.

person

________ marketing consists of activities undertaken to create, maintain, or change attitudes toward particular people. People ranging from presidents, entertainers, and sports figures to professionals such as doctors, lawyers, and architects use it to build their reputations.

person

The information sources that are the most effective at influencing a consumer's purchase decision are ________. These sources legitimize or evaluate products for the buyer.

personal

A buyer's decisions are influenced by ________ such as the buyer's age and life-cycle stage, occupation, economic situation, lifestyle, personality, and self-concept.

personal characteristics

The first step of the business buying process is ________.

problem recognition

What sets the floor for product prices?

product costs

Sunny Brews is a coffeehouse chain based in Boston. It recently introduced Eva, a mild roast, which became immensely popular. This exemplifies ________.

product development

Henry Ford's philosophy was to perfect the Model T so that its cost could be reduced further for increased consumer affordability. This reflects the ________ concept.

production concept

Which of the following marketing management orientations focuses primarily on improving efficiencies along the supply chain?

production concept

________ refers to activities that communicate the merits of the product and persuade target customers to buy it.

promotion

Different soft drinks target different personalities. This is an example of ________ segmentation.

psychographic

In Viña del Mar, Chile, a large number of shops specialize in selling the same quality of seafood products along the beach frequented by tourists. No individual shop dares charge more than the going price without fearing loss of business to other shops. This exemplifies ________.

pure competition

A shoe manufacturing company uses ads featuring the members of a country music band with the hope that the band's fans will see them wearing the company's shoes and hence purchase the same brand of shoes. The shoe company believes that the band portrays the image of a ________ to the band's fans.

reference group

Shoez Inc., a manufacturer of shoes, has recently launched a brand of sturdy shoes ideal for hiking and other outdoor activities. Which of the following brand personalities could be best associated with the new brand? competence ruggedness excitement sophistication sincerity

ruggedness

In a company, the job of a chief privacy officer is to ________.

safeguard the privacy of a firm's customers

Which of the following is the goal of the team-based new product development approach when it uses cross-functional teams that overlap the steps in the process?

save time and increase effectiveness

Stephanie and John wanted to purchase a high-end sports car. They viewed a commercial for a particular sports car that highlighted the cost, design, and power of the car. After viewing the ad, Stephanie felt that the car's price was acceptable, considering the superior and unique design. John thought that the car was expensive owing to the high power engine installed in it. They used the information in different ways, focusing on issues that that each considered important. Which of the following concepts does this scenario demonstrate

selective distortion

According to Maslow's hierarchy of needs, which of the following is the LEAST pressing need? esteem needs social needs self-actualization needs safety needs physiological needs

self-actualization needs

Tristan and Juliet, a newly married couple who intend to go to Egypt for their honeymoon, bought a Europe travel package on Jizo Inc., an online travel site. As they have never seen Europe or used the services of Jizo before, they were largely dependent on other customers' feedback and signals for service quality. Which of the following characteristics of service is highlighted in this instance?

service intangibility

Facebook and Second Life are both examples of ________.

social networks

Some fast-food restaurants offer tasty and convenient food at affordable prices, but in doing so they contribute to a national obesity epidemic and environmental problems. These fast-food restaurants overlook the ________ philosophy.

societal marketing concept

________ are consumer products and services with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort.

speciality products

A company selling child-care products ran a television ad depicting women as being primarily responsible for childcare. Many women viewers considered this regressive, alleging that the ad failed to recognize the much more diversified role of women in today's world. This is an example of ________.

stereotyping

________ provide the resources needed by a company to produce its goods and services.

suppliers

Which of the following is an environmental factor that influences business buyers?

supply of key materials

With an expected increase in ethnic diversity within the American population, marketers are most likely to place a greater emphasis on ________.

targeted advertising messages

Once the prototype of Wainwright Industries' new riding lawnmower, made especially for women, passes product tests, the next step is ________.

test marketing

A downward-sloping experience curve is indicative of ________.

the falling unit production cost of a company

Under oligopolistic competition ________.

the market consists of only a few large sellers

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

value-based pricing

Under ________, buyers share sales and inventory information directly with key suppliers who monitor and replenish the buyer's stock automatically as needed.

vendor-managed inventory

Which of the following is the most likely circumstance for a company to decide to do little or no test marketing?

when the costs of developing and introducing the product are low

According to the commercialization stage of the new product development process, following the decision to introduce the new product at a particular time, a company must next decide ________.

where to launch the new product