Marketing 320 Final

When a firm produces a large quantity of a product, the cost of producing each individual unit usually goes down. This is known as:
economies of scale
The president of a company that produces cardboard boxes is concerned about the large number of competitors with extra capacity As he put it our best shot is in the hands of our sales managers She makes all of our marketing decisions and has created enough to figure out how to sell more boxes it seems that this company were run as if it were in the
Sales era
Which of the following is least likely to be a government’s role in market directed economy?
to determine prices and thereby allocate resources and distribute income
The main difference between the marketing department era ans the marketing company era is
more emphasis on selling and advertising in the marketing department era
discrepancies of assortment happen when
producers specialize in producing a a narrow range of goods and services but consumers need a wide variety
from a micro view, which of the following is the best example of marketing
The American Red Cross seeks more blood donors
After seeing a sale ad in the local newspaper, Ben Griffith went to a local pet supply store and bought a year’s worth of high protein dog food. Which Marketing functions if any did he perform.
All of the marketing functions
The difference between production orientation and marketing orientation is best explained as follows
in a marketing oriented firm, every department’s activities are guided by what customers need and what the firm can deliver as a profit
From the industrial revolution until the 1920’s most companies were in the
production era
From a micro view, marketing
is a set of activities performed by an individual organization to satisfy its customers
The total system view of the marketing concept builds on the idea that
all departments–not just marketing–should be guided by customer needs
The universal functions of marketing do not include
producing
A firm with a marketing orientation
tries to determine customers’ needs before developing its product
The texts considers five “eras” of marketing evolution. Which of the following shows the logical order in which these eras occur.
Simple trade, production,sales,marketing department,marketing company
Concerning marketing ethics:
Individuals develop moral standards based on their own values
Opinions about what is right or wrong vary from one society to another
The prevailing practice of most business people is to be fair and honest
(This is an all of the above answer)
The “universal functions of marketing”:
must be performed in all MACRO-marketing systems
are performed differently in different economies
are performed by different parties in diff economies
are needed to help overcome various separations and discrepancies.
(This is an all of the above answer)
An economic system in which government planners determine production levels is known as
a command economy
The________era is a time when all marketing activities are brought under the control of one department to improve short run planning
marketing department era
Because of increased competition during the _______era, firms put new effort into winning customers.
sales
An intermediary:
is someone who specializes in trade rather than production
Three basic ideas in the marketing concept are:
customer satisfaction, total company effort and profit
Marketing could not take place without
two ore more parties who are willing to exchange something for something else
Which of the following types of firms are collaborators?
a. Marketing research firms
b. Overnight delivery firms
c. Advertising agencies
d. Product-testing labs
(All of the above are true)
Which of the following is TRUE about the micro-macro dilemma?
What is good for some producers and consumers may not be good for society as a whole.
Based on the following company statements, which company is most likely to be in the marketing company era?
“Our long range plan–developed by our marketing manager–is to expand so that we can profitably meet the long-term needs of our customers.”
Which of the following is NOT true about intermediaries?
They always increase total expenses for a product.
_______ is defined as the performance of activities that seek to accomplish an organization’s objectives by anticipating customer needs and directing a flow of need-satisfying goods and services from producer to customer.
Marketing
Trying to balance the interests of people who want to drink beer and the dangers of drunk driving is an example of:
the macro-micro dilemma
MACRO-marketing:
Emphasizes how the whole marketing system works.
Which of the following is the best example of the marketing concept in action?
A cleaning supplies firm learns that many consumers are having trouble hiring maids–so it develops a plan to offer customers complete house cleaning services.
In a market-directed economy
the individual decisions of the many producers and consumers make the macro-level decisions for the whole economy.
Of the following headlines from a business magazine, which is most likely to be about a MACRO-marketing topic?
Chinese Women Demand More Luxury Goods
Which of the following statements about customer value is true?
Customer value is the difference between the benefits a customer sees from a market offering and the costs of obtaining those benefits
Which of the following is a true statement?
a. Since marketing is concerned with many thousands of different products, there is no one set of marketing functions that applies to all products.
b. Responsibility for performing marketing functions can be shifted and shared, but no function can be completely eliminated. Correct
c. From a micro viewpoint, every firm must perform all of the marketing functions.
d. Marketing functions should be performed only by marketing intermediaries or collaborators.
e. Many marketing functions are not necessary in market-directed economies.
Responsibility for performing marketing functions can be shifted and shared, but no function can be completely eliminated.
The role of price in a market-directed economy is to:
a. allocate resources and distribute income according to consumer preferences.
b. serve as a rough measure of the social importance of consumer goods and services.
c. coordinate the economic activity of many people and institutions.
d. serve as a rough measure of the value of resources used to produce goods and services.
All of the above
According to the text, marketing means:
much more than selling and advertising
Marketing is NOT needed in a ______________ economy.
pure subsistence
Which of the following statements about economic systems is true?
Consumers usually have more freedom of choice in a market-directed economy.
Which of the following statements about marketing is FALSE?
The cost of marketing is about 15 percent of the consumer’s dollar
______________ involve(s) sorting products according to size and quality.
Standardization and grading
Identify the incorrect statement regarding target marketing.
Mass marketers cannot do target marketing
The “four Ps” of a marketing mix are
Product, Place, Promotion, and Price
The Sherman Act sought to:
prevent monopolies or conspiracies in restraint of trade
The most important variable in a firm’s marketing mix is:
a. Product.
b. Price.
c. Promotion.
d. Place.
All of the above
It’s best to think of “breakthrough opportunities” as opportunities which:
increase sales
When a firm tries to increase sales by offering new or improved products to its present markets, this is called:
market penetration.
The managerial process of developing and maintaining a match between the resources of an organization and its market opportunities is called:
strategic (management) planning.
The return-on-investment approach to evaluating possible product-market strategic plans is useful when:
the plans differ a lot in terms of investment required.
If a cola producer bought out a Mango juice producer in an attempt to appeal to health-conscious consumers who do not drink soft drinks, it would be pursuing a ______________ opportunity.
diversification
When Colgate encourages its current customers to brush more often by taking their toothbrush and toothpaste to work with them, which market opportunity is Colgate pursuing?
Market penetration
The main difference between a “marketing strategy” and a “marketing plan” is that:
time-related details are included in a marketing plan
The marketing management process is the process of
a. Planning marketing activities.
b. Implementing marketing plans.
c. Controlling marketing plans.
All of the above
A mission statement
sets out the organization’s basic purpose for being.
The most risky types of marketing opportunity to pursue usually involve
diversification.
The Wall Street Journal has been trying to attract new customers by promoting its newspaper for student use in business courses. This is an example of
market development
Scott Paper uses many intermediaries to reach its target markets; Citibank uses none. Which of the marketing mix variables is being considered here?
place
“Promotion” includes:
a. advertising.
b. personal selling.
c. sales promotion.
d. publicity.
all of the above
Product warranties are the focus of the ______________ Act.
Magnuson-Moss
A marketing strategy specifies:
a target market and a related marketing mix
The owner of the new Sharp Scissors hair salon gave coupons to potential customers walking by her store to stimulate interest and trial of her new hair salon. The coupons are an example of
sales promotion.
A S.W.O.T. analysis includes:
a. strengths.
b. weaknesses.
c. opportunities.
d. threats.
all of the above
An appropriate marketing mix should be determined PRIMARILY by
the needs of a target market
Portfolio management:
allows a manager to compare different divisions within the company
The business strengths dimension of the GE grid focuses on:
the ability of the company to pursue a product-market plan effectively.
The Clayton Act specifically aims at:
a. tying contracts.
b. price discrimination by manufacturers.
c. exclusive dealing contracts limiting a buyer’s sources of supply.
all of the above
According to the General Electric strategic planning grid, a business that is the strongest in its industry:
Select one:
is a good prospect, provided the industry has at least medium attractiveness.
The basic objective of a firm should be to:
a. engage in some specific business activity that will perform a socially and economically useful function.
b. develop an organization to carry on the business and implement its strategies.
c. earn enough profit to survive.
all of the above
Regarding the current legal environment facing U.S. marketing managers:
a. state and local laws vary but contain important regulations.
b. the focus has shifted from “let the buyer beware” to “let the seller beware.”
c. product safety is now controlled.
d. businesses and individual managers are subject to both criminal and civil laws.
all of the above
The Federal Trade Commission Act of 1914 is primarily concerned with:
unfair methods of competition.
The “continuum of environmental sensitivity” suggests that:
industrial products need to be adapted more than consumer products for international markets.
A firm that discriminates in price on goods of “like grade and quality” may be in violation of the ___________ Act.
Robinson-Patman
______ means that a firm has a marketing mix that the target market sees as better than a competitor’s mix.
Competitive advantage
In the short run at least, which of the following is usually beyond the control of the marketing manager?
a. Political and legal environments.
b. Economic environment.
c. Cultural and social environment.
d. Competitive environment.
all of the above
A “channel of distribution”:
is any series of firms (or individuals) from producer to final user or consumer.
The marketing manager for Lucky Grains cereals is forecasting potential lifetime sales, costs, and profitability for a potential new product — Lucky Rice Squares. The marketing manager is using ____ to evaluate this opportunity.
total profit approach
Organizational units (within a larger company) which focus their efforts on selected product-markets and are treated as separate profit centers are called:
strategic business units (SBUs)
Advertising is:
any paid form of non-personal presentation of ideas, goods, or services by an identified sponsor.
Which of the following best illustrates a “breakthrough opportunity?”
A drug company develops a patented pill that people can take once a year and safely avoid catching a cold.
The difference between target marketing and mass marketing is that target marketing
focuses on specific customers, while mass marketing aims at an entire market.
Customer equity
is the expected earnings stream of a firm’s current and prospective customers over some time period.
Which of the following criteria should a marketing manager use when segmenting a broad product-market?
The people in different segments should be as heterogeneous as possible with respect to their likely response to marketing mix variables.
Clustering techniques
try to find similar patterns within sets of data.
A large firm with ample resources wants to minimize the risk of “inviting” competitors to “chip away” at its target market(s). It has segmented its broad product-market and identified several homogeneous sub-markets–each of which is large enough to offer attractive sales and profit potential. Which of the following approaches should the firm use?
Multiple target market approach
Gina Williams wanted to start a decorating business. She identified several possible target markets, but decided to serve a market composed of recently married couples that owned their first home. Gina appears to be following:
A single target market approach.
“Qualifying dimensions,” in contrast to “determining dimensions,”
indicate whether a person might be a potential customer but do not show which product or brand that person might buy.
When deciding how far to carry the segmenting process,
profit should be the balancing point–determining how unique a marketing mix the firm can offer to some target market.
A _____ is a market with very similar needs and sellers offering various close substitute ways of satisfying those needs.
product-market
Which of the following segmenting dimensions probably would be LEAST LIKELY to result in segments that would meet the criteria that product-market segments should be “operational?”
Personality
The first step in the seven-step approach for segmenting product-markets is to
select the broad product-market
Segmenting dimensions
help guide marketing mix planning
Which of the following is LEAST likely to compete in the same generic market with the others?
a. Garlic powder.
b. Pepper.
c. Tabasco sauce.
d. Salt.
e. Potato chips.
Potato chips.
A _____ is a relatively homogeneous group of customers who will respond to a marketing mix in a similar way.
market segment
Watson’s Bakery found five different market segments among customers for its bakery goods. When developing a market-oriented strategy, the marketing manager used a ____ approach, putting two target markets together and developing a single marketing mix that would meet the needs of the new larger segment.
combined target market
A marketing manager has just learned about generic markets. This may lead the manager
to think about new ways of satisfying the needs of her current customers.
“Positioning”:
helps strategy planners understand how customers think about various brands or products in relation to each other.
Electro Technologies, Inc. (ETI) has limited capital and wants to reduce the risk of competitors taking customers if it invests in a new product-market. Its broad product-market consists of three reasonably distinct submarkets. To identify a target market, ETI should probably focus on using the __________ approach.
single target market
Segmenting:
tries to aggregate together individuals who have similar needs and characteristics.
Market segmentation:
tries to identify homogeneous sub-markets within a product-market.
The segmenting step of the segmentation process
looks for similarities in needs.
When Procter & Gamble offers both Pantene and Vidal Sassoon shampoos to its customers, which target market approach is P&G using?
Multiple
A firm’s “relevant market for finding opportunities” should:
be bigger than the firm’s present product-market–but not so big that the firm could not be an important competitor.
Which of the following offers a firm the greatest potential for profit?
a. Mass marketing
b. The multiple target market approach
c. The combined target market approach
d. The single target market approach
any of the above
A “product-market” is a market in which:
sellers offer very close substitute ways of satisfying potential customers’ needs.
“Good” market segments are those which are:
a. heterogeneous between.
b. operational.
c. substantial.
d. homogeneous within.
all of the above
The first step in market segmentation should be:
defining some broad product-markets where you may be able to operate profitably.
Regarding segmenting, as opposed to combining:
Segmenters try to satisfy consumers “very well” instead of “pretty well.”
Saying that a “good” product-market segment should be substantial means
it should be large enough to be profitable.
Segmenting international markets (as contrasted with domestic markets):
may be more difficult because critical data may not be available or dependable.
______________ segmenting dimensions help decide whether a person might be a potential customer–but not which specific products or brands that person might buy.
Qualifying
Ideally, product-markets should be described in terms of:
a. behavioral needs, attitudes, and how present and potential goods or services fit into customers’ consumption patterns.
b. urgency to get needs satisfied and desire and willingness to compare and shop.
c. geographic location and other demographic characteristics of potential customers.
all of the above
A combined target market approach
may not satisfy customers as well as the multiple target market approach.
Compared to a product-market, a generic market:
Has sellers offering a more diverse set of products.
Alpine Auto Repair keeps a record of customer oil changes and sends a reminder postcard to its customers when it’s time for the next oil change. This is an example of a ______ system.
customer relationship management
______________ is the process of naming broad product-markets and then segmenting these broad product-markets in order to select target markets and develop suitable marketing mixes.
Market segmentation
_____ aim at one or more homogeneous segments and try to develop a different marketing mix for each segment.
Segmenters
Which of the following is the best example of a “product-market?”
a. The MP3 player market
b. The young adult exercise market
c. The software market
d. The convenience market
e. The status symbol market
The MP3 player market
A market consists of:
a. a group of potential customers with similar needs who are willing to exchange something of value.
b. various kinds of products with similar characteristics.
c. sellers offering substitute ways of satisfying needs.
d. all the firms within a particular industry.
e. both A and C
both A and C
Which of the following is a consumer market demographic dimension?
a. Income distribution.
b. Stage in family life cycle.
c. Family size.
d. Ethnic group.
all of the above
“Positioning” is a marketing management aid which refers to:
how customers think about proposed and/or present brands in a market.
Which of the following is NOT one of the target marketing approaches for developing market-oriented strategies in a broad product-market?
a. Multiple.
b. Single.
c. Exclusive
d. Combined.
e. All of the above are target marketing approaches.
Exclusive
Reference-group influence would be WEAKEST for determining which particular ______________ a person buys.
laundry soap
A marketing manager who wants to apply the “hierarchy of needs” model should keep in mind that:
the same marketing mix might satisfy two or more levels of need.
Billy Longstreet had just bought a new car and was a bit uncertain about whether or not he had done the right thing in buying it. Two days after he purchased it, he decided to take it back to the dealer so that the dealer could install some additional optional equipment. When Billy went to the dealership to pick up the car after the installation, the salesman who sold Billy the car said, “You know, in the last two hours three different customers told me how much they liked the looks of your new car. One of them even wanted to know if it was for sale!” This attempt by the salesman to confirm the wisdom of Billy’s purchase decision seems to be aimed at reducing:
dissonance.
Extensive problem solving probably would be required by a recent college graduate in the purchase of:
a. living room furniture.
b. a color TV set.
c. a new home.
d. a sports car.
all of the above
ABC Technologies manufactures computer accessories, such as modems and network cards. Even though the company has several purchasing managers, the company president has final authority on all purchases over $500, including the selection of the supplier. In the typical buying center in this company, the company president would have the primary role of:
Decider.
Buying specialists for organizations are commonly called:
purchasing managers.
Vendor analysis is a(n)
formal rating of suppliers on all relevant areas of performance.
Ranked from lowest level to highest level, the “hierarchy of needs” model includes:
physiological, safety, social, and personal needs.
While planning a vacation, Betty Jo visited the Web site of a package tour provider and closed a pop-up ad without even noticing what it was for. This is an example of
selective exposure.
Allstate Insurance promotes its auto and home insurance by telling consumers, “You’re in good hands with Allstate.” Which of the following types of needs is Allstate trying to satisfy?
Safety needs
Which of the following would be the most difficult task facing a marketing manager?
Change existing negative attitudes
During the purchase of janitorial services for a new building, Teresa has responsibility for working with suppliers and arranging the terms of the sale. In this role, Teresa appears to be acting as
a buyer.
Which of the following statements about opinion leaders is true?
Opinion leaders on one subject aren’t necessarily opinion leaders on another.
The present state of our knowledge about consumer behavior is such that:
a marketing manager usually must blend intuition and judgment with findings from the behavioral sciences to explain and predict consumer behavior.
Whitewater Corp. is looking for a new vendor for basic plastics because the present vendor has been inconsistent about meeting delivery schedules. Which of the following buying processes is the firm’s purchasing agent MOST LIKELY to use?
Modified rebuy buying
The basic relationship between consumer decisions and consumer lifestyles is such that:
consumer decisions are made to maintain and enhance lifestyle.
Straight rebuy
vendor selections are likely to be made by a purchasing manager–without consulting anyone else.
The statement, “Almond Joy is made with real almonds” is an example of:
a belief
According to the text, your social class level does not depend directly on your:
income level
Routinized response behavior
is most common for purchases where the consumer has much experience in how to meet a need
_____ refers to reliably getting products there exactly before the customer needs them
Just-in-time delivery
When a consumer puts much effort into deciding how to satisfy a need, he engages in
extensive problem solving
With respect to culture and consumer behavior,
a. culture is the whole set of beliefs, attitudes, and ways of doing things of a reasonably homogeneous set of people.
b. culture may exert many subtle influences on other aspects of consumer behavior.
c. different cultural subgroups are likely to require different marketing mixes.
all of the above
Which of the following gives the correct ORDERING of the steps in the “adoption process?”
Awareness, interest, evaluation, trial, decision, confirmation
Eddie Falco went to a grocery store to buy his favorite brand of ice cream. However, the store was temporarily out of that brand, so he looked over the other familiar brands and decided to try a well advertised brand. This case illustrates:
Limited problem solving
According to the text, the economic-buyer theory
is too simplistic to explain consumer behavior.
Reference group influence is likely to have the strongest effect on the particular BRAND of ______________ purchased.
watch
The statement, “I like Southwest Air,” is an example of a(n):
attitude
When dealing with consumer attitudes, marketers should know that:
consumer attitudes tend to be enduring.
______ refers to processes that screen out or modify ideas, messages, and information that conflict with previously learned attitudes and beliefs.
Selective perception
What is the best single indicator of social class?
Select one:
occupation
The AIO items used in life-style analysis include:
activities, interests, and opinions.
Which of the following buying situations gives a seller the most chance for promotion impact?
New-task buying
The desire to climb the organizational ladder represents:
an aspirational group
This act, passed by the U.S. Congress in 1977, prohibits U.S. firms from paying bribes to foreign officials.
Foreign Corrupt Practices Act
Good marketing managers know that
marketers can’t create internal drives in consumers
A _____ refers to all of the people who participate in or influence a purchase.
buying center
Among the multiple buying influences, ____ control the flow of information within the organization.
gatekeepers
Lifestyle can be viewed as:
a unique pattern of living which influences and is reflected by one’s consumption behavior.
Branding is good for some CONSUMERS because it:
a. makes shopping easier.
b. provides dependable guides to product quality.
c. helps assure regular satisfaction.
d. All of the above
All of the above
Quantitative marketing research
a. usually makes it easier and faster for respondents to answer the questions (compared to qualitative research).
b. can use a large, representative sample.
c. data can be collected by mail, e-mail, online, telephone, or personal interviews.
d. makes it easier for the research analyst to summarize answers.
e. All of the above are true
All the above
The big advantage of qualitative research in marketing is:
the in-depth responses it provides
Statistical packages are:
easy-to-use computer programs that analyze data
Secondary data:
a. may not be specific enough to answer the question under consideration.
b. should be considered before primary data is collected.
c. is often all that is needed to solve a problem.
d. is available both internally and outside the firm.
e. all of the above
all of the above
A marketing model is a
statement of relationships among marketing variables.
Which of the following would NOT be a source of primary data?
The Wall Street Journal
Sears’ Kenmore brand of appliances sold in all Sears stores illustrates two kinds of brands.
dealer and family brands.
The most difficult step of the marketing research process is:
defining the problem
A “dealer brand” is sometimes called a ______________ brand.
private
According to the text, “product”:
means the need-satisfying offering of a firm.
Which of the following statements regarding the “battle of the brands” is true?
Manufacturer brands have been losing ground to dealer brands.
Procedures that develop and analyze new information to help marketing managers make decisions are called:
marketing research.
A large U.S. firm produces potato chips, shortening, dishwasher detergent, laundry detergent, shampoo, disposable diapers, and facial tissues. These are the firm’s
product assortment.
_____ refers to an organized way of continually gathering, accessing, and analyzing information that marketing managers need to make ongoing decisions.
Marketing information system
At Verizon Communications, a marketing manager can view up-to-date marketing data that has been customized to fit his area of responsibility by using a:
marketing dashboard.
A trademark or brand name can become public property if:
it becomes a common descriptive word for the product.
An interview with 6 to 10 people in an informal group setting is called a(an):
focus group interview.
The Magnuson-Moss Act requires that:
a warranty must be clearly written, if one is offered.
Characteristics of a good brand name include all of the following except:
Be trendy and fashionable.
Joy Rinaldo has agreed to participate in marketing research in which she will provide information about her purchases on an ongoing basis. She is probably part of a:
consumer panel.
From a marketing perspective, a high quality copy machine is one that:
does a good job satisfying a customer’s requirements or needs.
Which of the following is NOT favorable to successful branding?
Access to favorable shelf locations is very limited.
Which of the following is NOT an advantage of telephone surveys?
They are especially good for getting confidential and personal information.
Nonrecognition of the brand name of a firm’s product is likely to be LEAST important for:
Coal
Branding can help BRANDERS because it:
a. may lower promotion costs.
b. can improve the company’s image.
c. encourages repeat buying.
d. may develop customer loyalty.
e. All of the above.
all of the above
The response rate to a survey affects
how representative the sample is.
When a marketing manager scans a firm’s MIS to try to obtain information about why the firm’s product sales are down, this is an example of a(n):
situation analysis
A decision-making approach that focuses on being objective and orderly in testing ideas before accepting them is the:
scientific method.
Two similar groups of consumers are shown different magazines which include the same ad. Then each consumer is asked questions about the advertised product. This seems to be a description of
the experimental method.
Secondary data is often available–at little or no cost–from:
a. both private and government sources.
b. the Internet.
c. trade associations.
d. company files.
e. All of the above.
all of the above
Darrell Everwine read a review about a new computer program that appealed to him very much. He decided to try to find the program. However, the new program was in short supply–although other brands with similar features were available. Darrell had to try seven shops before he finally found the program in stock. For Darrell, this program achieved brand:
insistence.
Convenience products include:
a. impulse products.
b. staple products.
c. emergency products.
d. All of the above.
all of the above
______________ is concerned with whether the research data measures what it is intended to.
Validity
The percent of people contacted who complete a survey questionnaire is the:
response rate.
Regarding an estimate from a survey, the range on either side of the survey result that is likely to contain the “true” value of the relevant population is called:
confidence interval
A trademark
includes those words, symbols, or marks that are legally registered for use by a single company.
The value of a brand to its current owner or to a firm that wants to buy it is called
brand equity
The text’s consumer product classes are based upon:
the way people think about and shop for products
Which of the following would be MOST LIKELY to use individual brands rather than a family brand for its products?
Manufacturer of canned pet food and sandwich spread for final consumers
According to the US Federal Trade Commission (FTC), a firm can call its product “new” for _____ months.
6
According to the text, product life cycles are:
getting shorter
Corporate chains:
a. have continued to grow–and now account for about half of all retail sales.
b. have an advantage relative to independent stores when it comes to promotion and use of dealer brands.
c. increase their buying power by centralizing at least some of the buying for different stores.
d. all of the above.
all of the above
The ____________ says that retailers should offer low prices to get faster turnover and greater sales volumes by appealing to larger markets.
Mass-merchandising concept
Cooperative chains:
are formed by independent retailers to run their own buying organizations and conduct joint promotion efforts
Many people like to drive motorcycles. But motorcycles have a high death rate in even minor accidents. These motorcycles should probably be thought of as
pleasing products.
Product or brand managers are commonly used when a firm:
has several different kinds of products or brands.
In the market introduction stage of a fast product life cycle, _____ helps develop loyal customers early and keeps competitors out.
a low initial penetration price
Health Care Products Company has noticed that in one of its product-markets industry sales have leveled off and competition has been getting tougher. This product-market appears to be in the ____ stage of the product life cycle.
market maturity
During the introduction stage of the product life cycle,
promotion is likely to be needed to build primary demand.
The first retailers to really show the importance of the mass-merchandising concept were the operators of:
supermarkets.
During the MARKET MATURITY stage of the product life cycle:
persuasive promotion becomes more important.
A new product idea is more likely to move quickly through the early stages of the product life cycle when:
a. the product is easy to use.
b. the product is compatible with the values and experiences of target customers.
c. the product can be given a trial.
d. the product’s advantages are easy to communicate.
e. All of the above are correct.
all of the above
Regarding product life cycles, good marketing managers know that:
product life cycles can be extended through product modifications.
Regarding retail sales in the U.S., it is true that:
a. less than 8 percent of all retail sales are made by smaller stores–those with sales less than $1 million a year.
b. almost 70 percent of all retail sales are made by the largest stores–those with sales over $5 million a year.
c. corporate chains account for about 50 percent of retail sales.
d. All of the above are true.
all of the above
The new-product development process discussed in the text
relies solely on test marketing to decide whether to drop an idea or take it to market.
Department stores:
a. are basically a group of limited-line stores under one roof.
b. are decreasing in number, average sales per store, and share of retail business.
c. usually aim at customers seeking shopping products.
d. All of the above are true. Correct
e. Only B and C are true.
all of the above
A number of independent drugstores are working with a wholesaler to obtain economies of scale in buying. They were organized by this wholesaler after a recent meeting to discuss ways of competing with corporate chains. These drugstores are now part of a
voluntary chain.
When Procter & Gamble introduces a new type of shampoo into one market in Kansas City to determine how many units of it can be sold over a nine-month period, this is an example of:
market testing
The idea that new types of retailers begin as low-status, low-margin, low-price operators and then–if successful–evolve into more conventional retailers offering more services is called the
wheel of retailing theory.
Industry profits are largest in which of the following product life cycle stages?
Market growth
Product life cycles refer to the life of:
a product idea
Franchisors:
a. account for about a third of all retail sales.
b. often provide franchise holders with training.
c. usually receive fees and commissions from the franchise holder.
d. are especially popular with services retailers.
e. all of the above.
all of the above
Scrambled merchandising is carrying
any product lines that a store thinks that they can sell profitably
Regarding supermarkets, which of the following statements is TRUE?
Supermarket net profits after taxes usually are about 1 percent of sales–or less.
Warehouse clubs such as Sam’s Club and Costco:
a. usually operate in large, no-frills facilities.
b. have been successful targeting small-business customers.
c. emphasize homogeneous shopping products.
d. usually charge consumers an annual membership fee.
e. All of the above are true.
all of the above
According to the FTC, for a producer to call a product “new,” the product:
must be entirely new or changed in a functionally significant or substantial respect.
Which of the following statements about single- and limited-line stores is TRUE?
a. Many are small, with high expenses relative to sales.
b. They usually believe in a “buy low and sell high” philosophy.
c. Such stores face the costly problem of having to stock some slow-moving items in order to satisfy their target markets.
d. Most conventional retailers are single- or limited-line stores.
e. All of the above are true.
all of the above
Mass-merchandisers:
are large, self-service stores which stress low price to get faster turnover.
Midway, Inc. has seen most of its competitors drop out of its product-market due to declining industry sales and profits. But Midway still has much demand for its product from a small group of loyal customers. This product-market is in which product life cycle stage?
sales decline
During the SALES DECLINE stage of the product life cycle:
firms with strong brands may make profits almost until the end.
A _____ is a type of conventional limited-line store that is usually small and has a distinct “personality.”
specialty shop
As a product moves through its product life cycle
customers’ needs and attitudes may change
Which of the following observations concerning the product life cycle is NOT TRUE?
The sales and profits of an individual brand follow the life-cycle pattern.
Which of the following is a common cause of new product failures?
The product fails to offer the customer a unique benefit.
Which of the following would be considered a retailing “category killer”?
a. Office Depot (office supplies)
b. PayLess (drugstores)
c. Lowe’s (home improvements)
d. Barnes & Noble (books)
e. all of the above
all of the above
High immediate satisfaction and high long-run consumer welfare is provided by:
desirable products.
Cargill, Inc. is finally earning a profit on the unique product it introduced six months ago. Cargill’s advertising is both informative and persuasive. Much money is being spent on Place development. There is little price competition, although several competitors have come out with reasonable imitations. Total industry sales and profits are both rising. In which stage of the product life cycle is Cargill operating?
Market growth
Industry sales are highest in which of the following product life cycle stages?
Market maturity.
Which of the following is LESS LIKELY to happen as a product moves through the later stages of the product life cycle?
Place – move toward selective distribution.
Sales promotion activities:
try to stimulate interest, trial, or purchase
A producer is likely to focus its promotion effort on stimulating primary demand at what stage in the product life cycle?
Market introduction
The “adoption curve” shows:
when different groups accept ideas.
The AIDA model includes all of the following promotion jobs EXCEPT
increasing demand.
“Promotion” is concerned with:
a. how suitable messages are communicated to target customers.
b. communicating information between seller and buyer or others in the channel to influence attitudes and behavior. Incorrect
c. informing customers that the right Product is available at the right Place at the right Price.
d. blending personal selling, mass selling, and sales promotion.
all of the above
Producers and wholesalers that target business customers typically emphasize
sales promotions.
LAGGARDS or NON-ADOPTERS:
a. are usually the smallest businesses with the least specialization.
b. tend to be older and less well educated.
c. rely mainly on other laggards for information.
d. are suspicious of new ideas.
e. All of the above.
all of the above
What basic promotion objective can be sought by a producer who has won brand insistence among its target customers?
Reminding
Communicating with customers is known as the ________________ portion of the marketing mix.
Promotion
“Advertising”:
a. is less expensive than personal selling for reaching large and widespread target markets.
b. is any paid form of nonpersonal presentation of ideas, goods, or services by an identified seller.
c. is not the same as publicity.
d. is less flexible than personal selling.
e. All of the above are true.
all of the above
“Publicity”:
is mass selling that avoids paying media costs
_____ means getting customers to ask intermediaries for the product
Pulling
The early majority group
tends to avoid risk and waits to consider a new idea after many early adopters have tried it-and liked it.
Producers that advertise in GOOD HOUSEKEEPING magazine sometimes show that they have the Good Housekeeping “seal of approval.” This illustrates their recognition of the importance of the ______________ in the communication process.
message channel
Which of the following is NOT one of the basic promotion objectives discussed in the text?
to manipulate
Any distraction that reduces the effectiveness of the communication process is called
noise.
American Tourister, Inc.–a producer of luggage–is planning to introduce a new product line. The marketing manager is having her sales force call on retailers to explain American Tourister’s consumer advertising plans, the unique features of the new luggage, how the distributors can best promote it, and what sales volume and profit margins they can reasonably expect. This is an example of:
a “pushing” policy.
MASS SELLING, in contrast to personal selling:
a. is less expensive when the target customers are numerous and scattered.
b. doesn’t provide immediate feedback.
c. is less flexible in adapting to customers’ needs and attitudes.
d. All of the above.
All of the above.
Which of the following is NOT a promotion method?
a. mass selling
b. personal selling
c. sales promotion
d. All of the above are promotion methods.
all of the above
Which of the following groups is likely to be the first to adopt a new product?
innovators
What basic promotion objective should be sought by a producer whose Product is very similar to its many competitors’ Products?
Persuading
A retailer’s target customers are skeptical and cautious about new ideas. Strong social pressure from their own peer group may be needed before they adopt a new product. These target customers are:
the late majority.
Poor communication is likely if:
the source and the receiver do not have a common frame of reference.
Communication with noncustomers, including labor, public interest groups, stockholders, and the government is generally referred to as
public relations
A retailer’s target market consists of people who usually will not consider a new idea until others have tried it–and liked it. These potential customers have a lot of contact with mass media and salespeople, but usually are not opinion leaders. These target customers are:
the early majority.
_____ means using normal promotion effort to help sell the whole marketing mix to possible channel members.
Pushing
Personal selling:
Gets immediate feedback from consumers.
A stay-at-home mom is watching a “soap opera” on TV when a commercial for a new type of kitchen cleaning product by Procter & Gamble is presented. She considers whether the new product will clean better than her existing cleaning products. In the traditional communication model, the mom is the:
Decoder
Which of the following statements about innovators is not true?
Innovators need strong social pressure from their own peer group before they adopt a new product.
Regarding PRODUCT LIFE CYCLES and PROMOTION:
Persuading becomes important in the market growth stage.
What basic promotion objective should be emphasized by a producer introducing a really new product which satisfies customer needs better than any existing product?
Informing
Clairol Corp. is introducing a new brand of shampoo in a highly competitive market. Wholesalers might be willing to handle the new product, except that retailers are already complaining about overcrowded shelf space. Therefore, Clairol has decided to spend $10 million on TV advertising and send free samples to 3,000,000 households to convince consumers of the new product’s superiority–and to get them to ask for it at their retail store. Clairol is using:
a “pulling” policy.
Point-of-purchase materials, coupons, trade shows, calendars, merchandising aids, and sales training materials are all examples of:
sales promotion
Early adopters
tend to be opinion leaders.
A producer is likely to focus its promotion effort on stimulating selective demand at what stage in the product life cycle?
Market growth
The adoption curve concept is most closely related to which of the following?
the product life cycle
The basic promotion objective of informing consumers corresponds to which stage(s) of the AIDA model?
a. Getting attention.
b. Holding interest.
c. Arousing desire.
d. Obtaining action.
e. Both A and B.
both A and B
The source deciding what it wants to say and translating it into words or symbols that will have the same meaning to the receiver is termed as
encoding.
Blending the firm’s promotion efforts to convey a complete and consistent message is the goal of:
Integrated marketing communications.