Going over the customer report from Jaime, a German Sheperd breeder, you find that Grand Champion is still Jaime’s food of choice. However, the number of litters that Jaime breeds has been reduced due to the economic downturn.
Which of the following represents the best analysis of Jaime’s needs and wants?
a. Jaime’s needs have increased while his wants have stayed the same.
b. Jaime’s needs have decreased while his wants have stayed the same.
c. Jaime’s wants have increased while his needs have stayed the same.
d. Both Jaime’s needs and wants have increased.
e. Both Jaime’s needs and wants have decreased.
Which conclusion can you draw from this situation?
a. It shows that the Grand Champion brand is suffering from market myopia.
b. It shows that market myopia is not an issue that Grand Champion ever needs to be concerned about.
c. It shows evidence that Grand Champion is taking preventative action to avoid any problems from market myopia.
d. It shows that the Grand Champion brand is about to revive and surge into the future.
e. It shows that the Grand Champion brand is in deep trouble and probably cannot be turned around.
Which of the following is not a good reason for why the traditional market should be expanded?
a. Expanding the traditional market will strengthen the brand’s elite image in the market.
b. The expanded market will increase profits.
c. The traditional market has shrunk in size due to the economic downturn and needs to be expanded.
d. Interest in feeding dogs a high quality food has increased over the past few years.
e. The traditional target market has limited growth potential.
Which of the following identifies the best value proposition for your target market?
a. “Grand Champion—exquisite dog food for the right price.”
b. “Grand Champion—good food for a rock-bottom price.”
c. “Grand Champion—high quality dog food for a good price.”
d. “Grand Champion—when price isn’t an issue.”
e. “Grand Champion—your dog can help you save!”
Which of the following best support the idea that a target market of all dog owners is a good choice?
a. To appeal to all dog owners, Grand Champion would need to lower its price and production costs.
b. To appeal to all dog owners, Grand Champion would be able to take advantage of its traditional, elite image.
c. To appeal to all dog owners, Grand Champion’s association with dog shows and dog breeders would be a sustainable competitive advantage over rivals.
d. To appeal to all dog owners, Grand Champion would probably need to use cheaper ingredients.
e. In appealing to all dog owners, Grand Champion would be likely to increase overall sales.
Which statement best expresses how maximizing the welfare of customers and society as a whole can be a success?
a. Customers respond to improved welfare immediately by increasing purchases that result in higher profits.
b. Improving society typically results in a sense of well-being that makes people want to spend money on luxury items.
c. Maximizing the welfare of customers and society as a whole increases the number of dog owners in the society.
d. Helping to maximize customer and societal welfare creates a positive image which helps the brand grow over the long term.
e. Helping to maximize customer and societal welfare helps eliminate competitors to the brand.
Which of the following explanations best supports the idea that abandoning organic farming methods will improve sales?
a. Organic farming methods are expensive, so abandoning them will lower the cost of Grand Champion and increase sales.
b. Many people disapprove of organic farming methods, so abandoning them will improve Grand Champion’s image and increase sales.
c. Abandoning organic farming methods will improve the taste of Grand Champion which will result in increased sales.
d. Abandoning organic farming methods will increase production costs of Grand Champion and increase sales.
e. Abandoning organic farming methods will speed up the process of making Grand Champion which will result in increased sales.
Given your target market, which of the following is the strongest argument you can make in favor of sponsoring dog shows?
a. Most dog owners avidly follow dog shows, so you will get maximum exposure from the action.
b. Most dog show winners are pampered and finicky, so if they like Grand Champion so will ordinary dogs.
c. Dog shows have an elite, upper class image that suits the image of your target market.
d. Dog show winner testimonials are like Wheaties testimonials from athletes — they create a winning image of the product.
e. Dog shows have folksy image that suits the image of your target market.
Which choice of a customer relationship management approach would be least likely to clash with any of the three target markets?
a. a frequent-buyer program that gives greater discounts the more a customer buys
b. a frequent-buyer program that gives a free bag of Grand Champion for every eight bags a customer buys
c. a web site with dog health information and a place for customers to post pictures of their dogs
d. sponsor major dog shows
e. provide free Grand Champion to winning dogs at major dog shows
Which of the following identifies the best modification to the “picture on the can” idea?
10. “The VP of Marketing likes your idea of putting pictures of “true believers” on cans of Grand Champion. However, she does not like the requirement that customers will need to purchase one thousand cans to be depicted. “It will take too long and it will be too hard to document,” the VP says.
Which of the following identifies the best modification to the “picture on the can” idea?
a. have a sweepstakes in which the winning dog gets its picture on the can
b. put winners of major dog shows on cans
c. put random pictures of dogs that are posted on the Grand Champion web site on cans with a prize for each winner
d. put pictures of guard dogs, rescue dogs, and other heroic dogs on cans
e. have a contest in which entrants explain why they are loyal to Grand Champion — the winning entry goes on the can
a) Building customer relationships.
b) Understanding the marketplace and customer needs.
c) Capturing value from customers.
d) Designing a customer-driven marketing strategy.
a) Reduced regulatory intervention
b) Move toward frugality
c) Increased spending on technology
d) Growth of societal marketing
a) Those who are highly loyal but not very profitable.
b) Those who are both profitable and loyal.
c) Those who are potentially profitable but not loyal.
d) Those who show low potential profitability and little projected loyalty.
a) The total combined customer lifetime values of all of the company’s current and potential customers.
b) The present value of the future cash flows attributed to the customer relationship.
c) The difference between what a customer gets from a product, and what he or she has to give in order to get it.
d) Customer’s perceived opinion of a product’s value to him or her.
a) Customer-generated marketing
b) Customer-managed relationships
c) Customer-perceived value
d) Customer satisfaction
a)Designing a customer-driven marketing strategy.
b) Preparing an integrated marketing plan and program.
c)Understanding the marketplace and customer needs.
d) Building customer relationships.
a) responsibility marketing
b) societal marketing
a) consumer-generated marketing
b) sustainable marketing practices
c) customer-managed relationships
d) selling oriented practices
a. investment diversity
b. needs inventory
c. business portfolio
a. cost advantages present because of advanced technology.
b. the chance to acquire firms with needed technology.
c. likely entry of new competitors in the industry.
d. existing government policies adverse to the industry.
a. market development
c. product development
d. market penetration
a. market development
b. market penetration
c. product expansion
a) Business unit level
b) Product level
c) Market level
d) All of the above
a) Revlon: We sell cosmetics
b) Disney: We run theme parks
c) Wal-Mart: We deliver value through low prices
d) Xerox: We make copy, fax, and other office machines
a) Market positioning
b) Market segmentation
c) Market targeting
d) Marketing mix
a) SWOT analysis
b) Marketing implementation
c) Marketing audit
d) Value delivery network
a) Return on sales
b) Return on profits
c) Return on marketing investment
d) Value return
b) Question marks
c) Cash cows
a) Introduce new bicycle models
b) Introduce modifications to its existing bicycle products
c) Identify new market segments for its current products
d) Start up or acquire businesses outside of its current products and markets
c) Market contraction
d) Market penetration
b) Value delivery network
c) Customer orientation
a) Functional organization
b) Geographic organization
c) Product management organization
d) Market management organization
a. Product is the only important factor for the four Ps. The other three factors are fairly unimportant compared to product.
b. Product includes price and promotion. Once you have chosen the product, price and promotion have already been determined.
c. It doesn’t really matter which one of the four Ps you start with. Product is as good a choice as any of the others.
d. For an item that relies a great deal on image such as skin cream, product is important. For a more practical item, product is less important.
e. Choosing product attributes first will determine how price and promotion decisions are made.
a. Focusing on price first may influence how the a product will be promoted.
b. Focusing on price first puts undue emphasis on where the product will be made.
c. Focusing on price first may cause you to plan a product that cannot be made profitably.
d. Focusing on price first may influence what the product’s market will be.
e. Focusing on price first may influence how the product will be packaged.
a. The advisor is correct. The product is the skin cream itself. Packaging is not part of the product.
b. The advisor is correct. Packaging can be considered part of a product only when the packaging itself is consumed.
c. The advisor is incorrect. The box is not part of the product, but the jar is because the customer opens and closes the jar.
d. The advisor is incorrect. Packaging is part of any product.
e. The advisor is incorrect. Packaging is a more important part of the product than the cream itself.
a. Teens don’t really know what they want, so their opinions should be ignored.
b. The girls with trouble-free complexions in the group obviously influenced others into discounting the importance of acne control.
c. All skin creams control acne to a certain extent, so a formula with moderate acne control is appropriate.
d. Acne control products don’t really work, so including one in the formula will not compromise the success of Blythe.
e. Some oil-based creams can actually promote acne, so having an element of acne control will ensure the success of the formula.
a. You are likely to lose money in the beginning, before the product becomes well known.
b. You may have competitors in the market by the time you are ready to raise the price.
c. Customers get used to low pricing, and may not accept a price hike.
d. Customers may at first refuse to try a product based on its low price.
e. You are likely to create an image for Blythe that is moderate and affordable rather than luxurious and expensive.
a. Many teenaged girls read magazines online where the ads can be blocked.
b. Magazine and other print media are the most expensive way to advertise.
c. Teenaged girls access the media primarily through electronic, not print media.
d. Studies show that many teens do not read magazines at all, online or in print.
e. Print advertising is similar in cost to electronic advertising.
a. Electronic ads too expensive.
b. Teenaged girls get most of their information from television, not the Internet.
c. Television ads fail to reach a wide enough market.
d. Teenage girls almost never watch television.
e. Television ads reach too broad an audience.
a. On the Internet customers must view all ads. Ads cannot be blocked or avoided.
b. You will save money because Formula 2 and electronic advertising are both good values.
c. Electronic media are excellent for targeting a narrow, specific market such as teenaged girls.
d. For electronic media, you can provide more information for interested customers at the click of a mouse.
e. You can coordinate your ads to specific topics. If a girl is reading an article on skin care, your ad will come up.
a. If you go with the more expensive Formula 1, focus on the product itself.
b. If you go with the less expensive Formula 2, focus on the price and use price to determine other decisions.
c. If you go with the anti-acne Formula 3, focus on promotion of the product.
d. No matter which formula you choose, you should focus on the product itself.
e. No matter which formula you choose, you should think of product, price, and promotion as an integrated whole.
a) Cultural forces
b) The company
d) Marketing intermediaries
b) Financial institutions
c) Physical distribution firms
a) Business market
b) Consumer market
c) International market
d) Government market
c) Citizen action
a) Generation X
b) Millennials or Generation Y
c) Baby Boomers
a) The percent of married couples with children is increasing.
b) More people are divorcing, separating, and choosing not to marry.
c) The number of working women is increasing.
d) The number of nontraditional households is growing more rapidly.
a) The South
b) The Northeast
c) The Midwest
a) Becoming more ethnically diverse
b) Growing older
c) More inclined toward citizen action
d) Becoming better educated
a) Cause-related marketing
c) Social marketing
d) Cultural marketing
a. Non-English-speaking students are expected to increase dramatically.
b. Deforestation has created a shortage of trees that are used for paper.
c. New regulations have been passed that change how recycled paper is used.
d. School enrollments have been predicted to decline in the coming decade.
e. A rival company has come out with a new homeschool math program.
a. a growth opportunity because non-English-speaking students will need to have special textbooks
b. a growth opportunity because non-English-speaking students are generally affluent and purchase a lot of books
c. a danger because Gerlach will sell fewer books to English-speaking students
d. a danger because non-English-speaking students will take resources from English-speaking students
e. neither an opportunity nor a danger because schools do not purchase special books for non-English-speaking students
a. Look for ways to reverse the trend and increase the number of school-age children.
b. Encourage older parents to have more children.
c. Look for new markets to develop that are outside of the school systems.
d. Increase the selling price of books to maintain profit margins.
e. Encourage school systems to increase the number of grades from K-12 to K to 14.
a. Gerlach should promote programs for the state to plant more trees.
b. Gerlach should focus on dramatically reducing the size of its staff to cut costs.
c. Gerlach should focus on cutting down on the amount of paper it uses by 50 percent or more.
d. Gerlach should focus on getting the lowest possible short-term price for paper.
e. Gerlach should focus on getting a stable, predictable, long-term price for paper.
a. a threat because these dissatisfied parents are likely to be dissatisfied with the textbooks in Colorado schools
b. a threat because these parents are likely to run for office in local school boards
c. a growth opportunity because it will create a market that Gerlach can serve for students who opt out of the public school system
d. a growth opportunity because it will result in a larger overall school-age population for Colorado
e. neither a growth opportunity nor a threat because it will not change the number of school-age children there are in Colorado
a. There is a shortage of young families all across the U.S.
b. The suggestion is likely to work too well and create an overpopulation of of young families in Colorado.
c. As new families moved in, existing families would be likely to move out of Colorado.
d. As a private company, Gerlach has no way to effectively influence migration policy.
e. Most of the families who are likely to move in would not be attending public schools.
a. If predictions are accurate, ELL students will still make up less than one-seventh of the student population.
b. ELL students are not likely to attend public schools.
c. ELL students are not likely to need special textbooks.
d. Textbooks for ELL students are much more difficult to write, edit, and produce than conventional textbooks.
e. A new ELL department is likely to create conflicts within the company.
a. Produce educational materials on the side of the debate that denies climate change, since it is likely to prevail.
b. Produce educational materials on the side of the debate that supports climate change, since it is likely to prevail.
c. Produce educational materials on both sides of the debate, since it is impossible to predict who will prevail.
d. Do nothing because it is impossible to predict who will prevail, and it is also likely that no new laws are passed at all.
e. Do nothing because this issue is likely to be forgotten by the next election cycle.
a. The homeschooling market is growing.
b. Homeschooling parents are likely to need textbooks.
c. The same texts can be used to sell to both the homeschooling market and the English language learner market.
d. The homeschooling market is growing as fast as the ELL market.
e. Homeschooling is a trend that cuts across all socioeconomic groups.
a. The cost of production of an electronic text is lower than the cost for a hard-copy product.
b. Some customers prefer reading a text in an electronic form than in hard-copy form.
c. With respect to writing, editing, and design, the creation of an electronic text is less complicated than a hard-copy text.
d. Readers of electronic texts can link to other sources and texts to make their experience richer.
e. Almost all people see electronic texts as environmentally friendly, which improves Gerlach’s public image.
a. Obtain a list of adults who can be interviewed about their attitudes toward flavored milk.
b. Define the problem that your research is going address.
c. Set up a data bank for collection of your data.
d. See how children feel about non-flavored milk before you begin research with adults.
e. See how both children and adults feel about flavored milk.
a. How much flavored milk do you drink each day?
b. What is your favorite kind of flavored milk?
c. Is flavored milk just for kids?
d. How healthy do you think flavored milk is compared to other drinks?
e. Would you consider buying flavored milk that was designed for adults if it were available?
a. It leaves out non-health-conscious adults who could be potential customers.
b. It does not say whether the health-conscious adults are looking for specific nutrients or general health benefits.
c. It leaves out teenagers and children, who could be potential customers.
d. It does not say whether the health-conscious adults are looking to flavored milks as a weight-loss food.
e. It does not break down the category of adults into gender or age groups.
a. interviews with adults who normally drink soft drinks
b. questionnaires for milk-drinkers of all ages
c. observations of customers sampling TriState products at a mall
d. published accounts of demographics for all types of beverages
e. response to a Twitter query about flavored milk drinking
a. There is no way to conceal the observers from the consumers.
b. Consumers tend not to be truthful or spontaneous in this kind of situation.
c. The data collected in observational studies is hard to quantify.
d. Observational studies are usually not focused enough to answer research questions.
e. Most people refuse to participate in observational studies.
a. Cut the price of the flavored milk in half.
b. Offer a rebate for flavored milk that can be redeemed at a later date.
c. Lower the price in small increments and monitor sales at each price.
d. Offer a buy one, get one free sale.
e. Give away free samples of the flavored milk and raise its price.
a. Mail questionnaires are expensive to conduct.
b. It is difficult to find survey subjects to participate in mail questionnaires.
c. The data collected in mail questionnaires is hard to analyze.
d. The data for mail questionnaires is unreliable.
e. Only a small percentage of people respond to mail questionnaires.
a. Telephone interviews are more personal than face-to-face interviews.
b. Telephone interviews are less expensive to conduct than face-to-face interviews.
c. A single telephone interviews produces more data than a face-to-face interview.
d. People are likely to be more truthful in a telephone interview.
e. Data for telephone interviews is more reliable than data for face-to-face interviews.
a. Are you a milk drinker right now?
b. Do you prefer flavored milk with or without coloring?
c. How much did you enjoy drinking flavored milk when you were young?
d. Are flavored milk products for children only?
e. What is the typical image that you see for a person who drinks flavored milk?
a. TriState Chocolate Milk: Refreshingly Sweet.
b. TriState Chocolate Milk: Not Just for Healthy Kids Anymore
c. TriState Chocolate Milk: Lower in Calories than Any Soft Drink
d. TriState Chocolate Milk: Any Fresher and It Would Say Moo
e. TriState Chocolate Milk: Your Reward for a Job Well Done
a) Customer insights
a) Survey data
b)The internal database
c) Competitive intelligence
d) Observational research
a) Experimental data
b) Causal data
c) Focus group intelligence
d) Marketing intelligence
a) Descriptive research
b) Casual research
c) Exploratory research
d) Focus group research
a) Ethnographic research
b) Secondary research
c) Observational research
d) Experimental research
a) Group interviewing
b) Telephone surveying
c) Online surveying
d) Mail surveying
a) Cluster sample
b) Convenience sample
c) Simple random sample
d) Quota sample
a) Mechanical device
c) Secondary device
d) Survey device
b) An intranet
c) An extranet
d) A marketing intelligence system
a) Cost of primary data
b) Lack of information availability
c) Misuse of research findings
d) Government interference
In making your analysis of each product line, you will be using classic a Boston Consulting Group (BCG) Matrix. The BCG matrix has four different categories: a star (high market growth, high market share), a dog (low market growth, low market share), a cash cow (low market growth, high market share), and a question mark (high market growth, low market share)
With a BCG matrix, in which kinds of strategic business units (SBUs) does a company look to invest?
a) dogs and cash cows
b) cash cows and stars
c) stars only
d) cash cow only
e) stars and question marks
a. The hair dye’s market share would need to increase from 0.8 to 1.2.
b. Sales for hair dye would need to equal those of the industry leader.
c. The hair dye’s sales would need to increase at least 40 percent.
d. The market growth rate for teen hair dye would need to increase by a significant amount.
e. The hair dye’s market share would need to increase while its market growth rate decreased.
a. I agree. Cash cows are money makers. Investing in a money maker is a good idea.
b. I agree. Cash cows have large market shares in fast-growing markets. Investment is a good idea.
c. I disagree. Cash cows make money but their markets are not growing so they are not a good place to invest.
d. I disagree. Cash cows made money in the past but they don’t make money now. So a cash cow is not a good place to invest.
e. I disagree. Cash cows make no money now but in the future they may make money. So the time to invest in a cash cow is in the future.
a. as a question mark, because it still has a small market share in a booming market
b. as a dog, because its market share is so small
c. as a question mark, because it is impossible to categorize
d. as a combination of a question mark and a dog, because its market share is so small
e. as a dog, because it is impossible to categorize
a.Dogs tend to create a negative atmosphere within a company.
b.A dog is a drain on money and other business resources.
c.A dog is a drain on business resources, it is hard to sell off, and since it has high market share it is difficult to change or improve.
d.A dog is hard to turn around, it is a drain on business resources, and since it is in slow-growth industry it is unlikely to improve.
e.Dogs are easy to sell off.