Marketing Chapter 7 Test

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True

True or False: A market opportunity is an identified market w/ excellent potential based on careful research

False

True or False: Market segmentation doesn't apply to business markets

False

True or False: Successful companies base their positioning strategy decisions solely on the actions of their competitors

True

True or False: Target markets should be selected from the segments that have the greatest potential

True

True or False: The process of gaining competitive market information is called market intelligence.

product user

a claim that the product is "the choice of the busy parent" is an example of positioning by...

market position

the unique image of a product or service in a consumer's mind relative to similar competitive offerings

false

true or false: a market segment must be defined by its demographic characteristics

true

true or false: companies should communicate their expectations about the confidentiality of information to employees, suppliers, and customers

true

true or false: competition forces businesses to offer reasonable prices for the products and services that consumers use

false

true or false: competition limits the variety of products that are available to consumers

false

true or false: each segment of a market presents a viable opportunity for a business

true

true or false: emphasizing qualities such as service, quality, credit, location, guarantees, or a unique image is appropriate for businesses using non-price competition

false

true or false: market segmentation refers to the unique image of a product or service in a consumer's mind relative to similar competitive offerings

Brand name

which of the following isn't a basis for product positioning?

it allows businesses to charge higher prices for products

which of these is not a benefit of competition?

Psychographics

People's interests and values are referred to as...

all of these choices are correct

competition creates products that...

true

true or false: an example of direct competition is Nike and Reebok

false

true or false: marketers don't need to know how consumers are using their products, as long as they are using them

true

true or false: the type of competition a business faces will affect its positioning

false

true or false: there are relatively few benefits consumers derive from competition compared to the benefits businesses receive from increased sales and higher profits

False

True or False: Once consumers have developed a perception of a product, businesses will be unable to change the product's position

market opportunity

an identified market with excellent potential based on careful research

psychographics

people's interests and values

Market opportunity

An identified market w/ excellent potential based on careful research

asking the employees of competitors to share information

Appropriate methods to gain competitive information would include all of the following except...

Mass marketing

Directs a company's marketing mix @ a large and heterogeneous group of consumers

$830,879.20

If the market potential for gasoline sales in one community is $10,385,990 and one convenience store has a market share of 8%, the value of its gasoline sales is...

All of these choices are correct

Making changes in the distribution strategy should be planned carefully because...

Promotion

The competitive marketing mix element that usually receives more attention than others in the mix is...

False

True or False: A successful company's market share should be larger than the market potential

True

True or False: An advantage of promotional strategies is that they can be changed quickly.

True

True or False: Anytime you see an ad comparing one product w/ a well-known competitor's products, you can assume that a competitor positioning strategy is being used

False

True or False: Because it is difficult to determine the source of much of the information on the Internet, it is not a good source of competitive information.

True

True or False: Businesses use marketing information and market research to complete market segmentation

True

True or False: Changes in the business environment can have an impact on the success of a company's positioning strategy

market opportunity

a ______________ is an identified market w/ excellent potential based on careful research

a cereal manufacturer offering coupons

all of the following are examples of nonprice competition except...

mass marketing

directs a company's marketing mix at a large and heterogeneous group of consumers

demographic segmentation

dividing a market into religious affiliations is an example of...

geographic segmentation

dividing consumers into markets based on where they live

product usage segmentation

dividing customers into groups based on how frequently they use a service is an example of...

distinctive

every company wants to make its products...

mass marketing

marketing aimed @ a broad population of consumers is called...

$40,000

the average number of disposable rain ponchos sold in one tourist area during the rainy season is 50,000. you plan to come out w/ a sturdier line of ponchos @ comparable price and capture 20% of the market the first season. the ponchos generally sell for $4 each. your planned market share in dollars is...

all of these choices are correct

the business environment includes...

promotion

the element of the marketing mix designed to support changes in the other elements of the marketing mix is...

true

true or false: a consumer's interest in fitness is an example of a psychographic characteristic

all of these choices are correct

a benefit to consumers as a result of competition is...

close to the consumers' ideal image

a business will do well when consumers perceive the attributes of its product as being...

attribute

a claim that a product will not cause drowsiness is an example of positioning by...

all of these choices are correct

marketing intelligence may be obtained through...

indirect competition

occurs when a business competes with other companies offering products that are not in the same product category but satisfy similar customer needs

benefit segmentation

offering different soaps for consumers w/ dry skin, sensitive skin, and oily skin is an example of...

all of these choices are correct

positioning strategies usually revolve around...

price competition

rivalry among firms on the basis of price and value is called...

superior

the ideal competitive position for a product is when consumers view the company's product attributes as ___________________ when compared to those of competitors

consumer perceptions

the images consumers have of competing goods and services in the marketplace

market segmentation

the process of dividing a large group of consumers into subgroups based on specific characteristics and common important needs

market potential

the total revenue that can be obtained from the market segment

144,000 units

the total sales for a product is $12,000,000 per year. your company is introducing a competing product into that market and expects to capture 12% of the market share. the average price of the product is $10. what is the planned market share in units for your new product?

True

True or False: Consumer perceptions are the images consumers have of competing goods and services in the marketplace

False

True or False: Dividing consumers into markets based on where they live is referred to as demographic segmentation

False

True or False: Each person is part of only one market segment that influences all of his or her purchase decisions

False

True or False: If a company has a marketing mix that meets the needs of its customers, it will not need to gather information on the marketing mixes its competitors use.

False

True or False: If a company lowers its prices, all companies in direct competition will have to lower their prices as well.

True

True or False: If customers prefer the new product of a competitor, it will be difficult to win those customers back.

True

True or False: It would be unethical to obtain and use information that a competitor considers to be private and does not disclose outside of the organization.

True

True or False: Making a product available to consumers in more locations will usually add to the business's costs.

True

True or False: One method of positioning a product is to associate a type of user with the product

True

True or False: Positioning highlights differences between competitors in the mind of the consumer

true

true or false: a publication of a trade or professional association is an example of an information source that a business could use to gain information about competitors

false

true or false: all businesses should avoid using price competition

true

true or false: an example of attribute positioning would be a store emphasizing a convenient location or ample parking in its ads

true

true or false: an example of direct competition would be competition between a bowling alley and a video arcade

false

true or false: businesses that indirectly compete w/ each other will need to use non-price competition

true

true or false: in order to compete effectively w/ other businesses, marketers must create a unique image of their product or service in the consumer's mind

true

true or false: in order to compete effectively, it's important to learn as much as possible about your competitors' marketing strategies

true

true or false: in the U.S. population, the demographic characteristics of education and income are closely linked

false

true or false: in today's economy, price competition must be used w/ direct competitors

false

true or false: indirect competition occurs when two brands of similar products are compared

false

true or false: industry trade shows will not distribute information that can be used competitively against their own members

false

true or false: it's illegal for businesses to use trade shows to gather competitive information

true

true or false: w/ geographic segmentation, the markets may be as large as a country or as small as a zip code

market positition

unique image of a product or service in a consumer's mind relative to similar competitive offerings


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