Practice Exam #2

If men and women respond similarly to the same marketing mix, they do not constitute distinct, identifiable segments. Gender would not be an effective base for segmentation in this example because the segments are not __________.

differentiable

Some sellers require that dealers not handle competitor's products. This strategy is called __________.

exclusive dealing

Foot Locker has mastered online and mobile efforts that link seamlessly with store operations, offering options such as "buy online, ship from store" and "buy online, reserve in store" for pickup. This is an example of ________.

omni-channel retailing

Retailing today requires __________, which means creating a seamless cross-channel buying experience that integrates in-store, online, and mobile shopping.

omni-channel retailing

When a company provides superior value by leading its industry in price and convenience, it is pursuing a(n) __________ strategy.

operational excellence

A company has a(n) __________ orientation when it is not customer-centered and is also not competitor-centered.

product

A group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges are called a(n) __________.

product line

The number of items in a product line represents the __________ and the total number of product lines a company carries represents the __________.

product line length; product mix width

If a company adds a new product line to its existing portfolio, it has increased its __________.

product mix width

Increasingly, different types of retailers now sell the same products at the same prices to the same consumers. This trend is called __________.

retail convergence

When Dr. Footcare developed and launched a revolutionary new walking shoe, he knew that during the introductory stage of the product life cycle (PLC) __________.

sales would be slow and profits nonexistent

Retailers need to differentiate and position their store and make decisions regarding their retail marketing mix. Before making those decisions, retailers must first __________.

segment and define their target market

CVS pharmacy stores have recently stopped selling cigarettes. For cigarette manufacturers, this highlights the challenge of __________ channel members.

selecting

Furniture, major appliances, clothing, and hotel services are classified as __________ products.

shopping

Omni-channel retailers are those who ________.

successfully merge the virtual and physical worlds

After the company has defined its channel objectives, it should next identify its major channel alternatives in terms of the types of intermediaries, the number of intermediaries, and __________.

the responsibilities of channel members

One recent retailing trend resulting from economic conditions is __________.

tighter consumer spending

The company, suppliers, distributors, and customers who "partner" with one another to improve the performance of the entire system make up the __________.

value delivery network

The full mix of benefits on which a brand is differentiated and positioned is called a(n) __________.

value proposition

Which of the following is an example of horizontal channel conflict?

A Ford dealer complaining that another Ford dealer is advertising in their territory.

Which of the following statements regarding a customer intimacy strategy is correct?

A customer intimacy strategy requires a quick response to customer needs.

Walmart created the Great Value brand for their food products and the Equate brand for their pharmacy, health, and beauty products. Walmart does not manufacture any of these products. Which type of brand sponsorship is Walmart using?

A private brand

Which of the following correctly defines a product?

A product is anything offered to a market that might satisfy a need or want.

What does the process of designing marketing channels start with?

Analyzing consumer needs

What is positioning?

Arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers

A firm that bases its moves mainly on competitors' actions and reactions

Competitor orientation

Which orientation could result in a firm simply matching or extending industry practices rather than seeking innovative new ways to create more value for customers?

Competitor-centered

Which of the following statements regarding concentrated marketing is correct?

Concentrated marketing involves higher-than-normal risks.

In 2001, Apple opened its first Apple stores in the United States. These stores were owned and operated by Apple. This is an example of which type of vertical marketing system (VMS)?

Corporate

A firm quickly responds to customer needs

Customer intimacy

The orientation the textbook suggests companies practice today

Customer orientation

A firm improves product quality and adds new product features and models. It also shifts some advertising from building product awareness to building product conviction and purchase. At which stage of the product life cycle would this be a recommended strategy?

Growth

What is the first step of the new product development process?

Idea generation

What are the three main types of off-price retailers?

Independents, factory outlets, and warehouse clubs

On the My M&Ms website buyers can place custom orders for M&Ms. They can choose their own colors, put a personalized text message on the candies, and even upload a photo to be placed on each M&M. Which targeting strategy is M&M using for My M&Ms?

Individual marketing

What are the four special service characteristics marketers must consider when designing marketing programs?

Intangibility, inseparability, variability, and perishability

Which of the following is a recent trend in wholesaling?

Less distinction between large retailers and large wholesalers

When Doritos comes out with new flavors of their tortilla chips, what brand development strategy are they using?

Line extension

A discount store (for example, Target, Kohl's, or Walmart) sells standard merchandise at lower prices. To do this, discount stores accept which of the following two conditions?

Lower margins and selling higher volume

Which of the following statements about retailer marketing decisions is correct?

Many retailers identify three critical factors for retail success: location, location, and location.

A firm that's not customer-centered or competitor-centered

Market orientation

According to the text, which customer and competitor orientation should companies practice today?

Market-centered

Which of the following is a reason that producers use marketing channels and channel intermediaries?

Marketing channel members are able to transform the assortments of products made by producers into the assortments wanted by consumers.

If a company finds that a new product concept is acceptable and should be moved forward, what is the next step in the process?

Marketing strategy development

Which targeting strategy focuses on common consumer needs, as opposed to different needs?

Mass marketing

Most products today are in which stage of their product life cycle?

Maturity

Which of the following are the largest group of wholesalers, accounting for roughly 50 percent of all wholesaling?

Merchant wholesalers

Which of the following would be an appropriate strategy during the maturity stage of the product lifecycle?

Modify the market, product offering, or marketing mix.

Which value proposition is the most difficult to sustain in the long run?

More for less

Which of the following strategies would be utilized by a market challenger?

Observe what has made the market leader successful and improve on it

A firm provides superior value by leading its industry in price and convenience.

Operational excellence

Companies such as Walmart and Spirit Airlines offer lower prices than competitors.

Overall cost leadership

Companies such as Walmart and Spirit Airlines offer lower prices than competitors. Which competitive strategy are they using?

Overall cost leadership

What are the three winning competitive positioning strategies proposed by Michael Porter?

Overall cost leadership, differentiation, and focus

For which service characteristic do marketers need to pay close attention to fluctuations in demand?

Perishability

Which of the following statements regarding positioning is correct?

Positions must adapt over time to meet changing consumer needs.

Retailers must decide on which three major product variables?

Product assortment, services mix, and store atmosphere

According to the text, what are the three levels on which brands can be positioned?

Product attributes, desirable benefits, and beliefs and values

At which stage of the new product development process is a physical product first developed?

Product development

One characteristic of services is their variability. What is the main reason for services being variable?

Service quality depends on who provides them, as well as when, where, and how they are provided.

What are the four broad characteristics used to classify retail stores?

Service, product lines, price, and organization

What is the key idea in a market nicher strategy?

Specialization

Which type of retailer carries narrow product lines with deep assortments within those lines?

Specialty stores

Which government agency has the authority to ban or seize potentially harmful products and set severe penalties for violation of the law?

The Consumer Product Safety Commission (CPSC)

Which of the following statements regarding socially responsible product decisions is correct?

The government may prevent companies from adding products through acquisitions if the effect threatens to lessen competition.

According to the text, the most successful new products satisfy three criteria. What are these criteria?

They solve a major customer problem, are differentiated, and offer a compelling customer value proposition.

According to the text, what is the best way a market leader can protect its market share position?

Through continuous innovation

What is the overall purpose of differentiation?

To create superior customer value

In terms of location, most stores today cluster together. What is the primary reason for this?

To increase their customer pulling power

What must companies do to create successful new products?

Understand its consumers, markets, and competitors and develop products that deliver superior value.

Which wholesaler channel function helps reduce inventory holding costs?

Warehousing

What are the four major functions of logistics?

Warehousing, inventory management, transportation, and logistics information management

Walmart has a lot of power and exerts strong influence on the suppliers they buy from. This channel power is an example of a(n) __________ vertical marketing system (VMS).

administered

One new technology being adopted by retailers is __________. For example, when opted-in customers enter a store, a signal wakes up an app on their smartphone or tablet, which welcomes them and alerts them to location-specific rewards and personalized product recommendations within the store.

beacon technology

Fitbit makes health and fitness tracking devices. Some buyers want very basic fitness tracking such as steps taken and calories consumed. Others are focused on high performance and want heart rate and sleep monitoring, text notification, and wireless sync to their smart phone. In serving these two very different groups, Fitbit is using __________ segmentation.

benefits sought

Recently, superstores that are actually giant specialty stores, such as Petco and Home Depot, have seen tremendous growth. These types of superstores are called __________.

category killers

Omni-channel retailing includes all of the following EXCEPT ________.

changing only the in-store product mix

A cluster of between 15 and 50 retail stores that usually contains a branch of a department store or variety store, a supermarket, specialty stores, professional offices, and (sometimes) a bank is a __________.

community shopping center

During the idea generation stage of the new product development process, it is important that __________.

companies create a large number of ideas

Typically, consumers put in minimum time and effort when buying products such as laundry detergent, candy, and fast food. These types of goods are classified as __________ products.

convenience

Which of the following statements regarding the growth stage of the product life cycle is correct?

Companies face a trade-off between high market share and high profits.

Duracell is well known for manufacturing and marketing batteries. Recently they launched the Duracell Powermat, which is a wireless charger for mobile devices. Which brand development strategy did Duracell use in this example?

Brand extension

How do brokers and agents differ from merchant wholesalers?

Brokers and agents do not take title and perform a limited number of specialized functions.

Which of the following statements is correct regarding the functions channel members perform?

Channel members create greater efficiencies than manufacturers could achieve on their own.

Which of the following statements about segmentation is true?

Different segments might require different marketing strategies or mixes.

A firm targets several market segments but designs separate offers for each

Differentiated Marketing

Ritz-Carlton focuses on the top 5 percent of corporate and leisure travelers

Focus

__________ is a practice whereby a producer agrees to sell a brand to a dealer only if the dealer agrees to sell some or all of the rest of its line.

Full-line forcing

Which of the following statements regarding green retailing is correct?

Green retailing initiatives extend to helping consumers be more environmentally responsible.

Adidas' Fifth Avenue emporium showcases an adidas design concept that mimics a sports arena. Customers enter through a tunnel-like entrance, climb cement stairs to reach different floors, sit on bleachers to watch games broadcast live on large screens, and pay for their purchases at stations designed to look like ticket booths. The store features a miniature running track where customers can take a test run or get their stride analyzed to ensure they're buying the right shoe. This is an example of __________.

experiential retailing

A temporary period of unusually high sales driven by consumer enthusiasm and immediate product or brand popularity is called a(n) __________.

fad

There are three ways that market leaders can expand total market demand. They can expand total demand by __________.

finding new users of the product, promoting new uses for the product, and encouraging more usage of its products

Ritz-Carlton focuses on the top 5 percent of corporate and leisure travelers. This represents a(n) __________ strategy.

focus

In the decline stage of the product life cycle, some companies continue to offer the product but reduce various costs, hoping that sales hold up. This is known as __________ the product.

harvesting

Materials and parts, capital items, and supplies and services are groups of __________ products.

industrial

Services cannot be seen, tasted, felt, heard, or smelled before they are bought. In other words, services are __________.

intangible

Psychographic segmentation divides buyers into different segments based on __________.

lifestyle and personality

In competitive positioning, __________ are runner-up firms that want to hold their share without rocking the boat.

market followers

Regarding their competitive position, Walmart, Amazon, Coca-Cola, and Facebook are all examples of __________.

market leaders

The process of evaluating each market segment's attractiveness and selecting one or more market segments to enter is called __________.

market targeting