Marketing Final Review

When a T-shirt manufacturer states, “We only sell it in black because that way we can buy plenty of black fabric and run our plant efficiently,” its statement reflects the views that were popular in which era of the evolution of marketing?
Production-Oriented
Julia is considering a career in marketing. She is concerned about the image of marketers as fast-talking, high-pressure people who only care about making a sale. When reading about the core aspects of marketing, Julia is relieved to see that in marketing
all parties to an exchange should be satisfied
The four Ps make up the marketing mix, which is the ___________ set of activities that the firm uses to respond to the wants and needs of its target markets.
controllable
Henriette offers financial counseling and management on a fee-only basis. She has found that different customers are willing to pay different rates for her services. This shows that her pricing decisions should depend primarily on
how different customers perceive the value of her services.
The importance of supply chain management is often overlooked in the study of marketing because
many of the activities take place behind the scenes.
UPS, FedEx, DHL, and other shipping companies support other firms’ ___________ marketing goals.
supply chain management
Effective promotion enhances a product or service’s
perceived value
Auction sites like eBay have increased opportunities for ___________ marketing.
C2C
As use of the Internet took off. car manufacturers were tempted to sell directly to consumers, but decided instead to continue to sell through their existing dealer networks. The car manufacturers considered switching from _________ to _________ marketing.
B2B; B2C
Melanie works for a small computer software company. Her boss is constantly improving their products but neglecting customers, billing, and promoting the company. Her boss is probably stuck in the __________ era of marketing.
production-oriented
Near the end of the model year, Move-Them-Out automobile dealership had an unusually high inventory level. The manager increased her advertising spending and gave extra incentives to its salespeople. Move-Them-Out operates as if it were in the __________ era.
sales-oriented
Many U.S. companies first discovered marketing during the __________ era.
market-oriented
During the __________ era, manufacturers and retailers recognized they needed to give their customers greater value than their competitors did.
value-based marketing
Trey sells consumer electronics. He knows his customers weigh the costs versus the benefits associated with the different options available. He decides which products to offer and what prices to charge based on the way his customers think. Trey operates as if he were in the __________ era.
value-based marketing
Even though they operate from out-of-the-way airports and offer few extra services, discount, no-frill airlines like Ryanair and EasyJet have been successful. Consumers obviously consider
the benefit of lower prices to be greater than the cost of reduced services and less convenience.
Many firms with complex products have “missionary” salespeople who assist customers with problems and implementation programs. These salespeople rarely sell products but often become involved in and knowledgeable about specific customers’ needs and wants. These salespeople focus on a(n) __________ orientation with their customers.
relational
The goal of customer relationship management is to
identify and build loyalty among a firm’s customers.
Marketing was once an afterthought to
production.
Many inventors struggle with the question, “I made it; now how do I get rid of it?” They have made the error of considering marketing as
an afterthought.
Marketing enriches society by
sponsoring charitable events
Many entrepreneurs are successful through marketing efforts designed to
satisfy unfilled needs.
People who initate, organize, operate, and assume the risk of a business venture are called
entrepreneurs.
Marney bought a dress from a retail store. Which core aspect of marketing was Marney most directly participating in?
Marketing involves an exchange.
Which element of the marketing mix is most relevant to the activity “capturing value”?
price
Which element of the marketing mix is most relevant to the activity “delivering value”?
place
To build a sustainable competitive advantage, companies should focus on a single strategy.
False
Duke’s is a surfer-themed restaurant chain in Hawaii. Most of its customers are tourists. In a SWOT analysis for Duke’s, the possibility that the recession might cut back on tourism in Hawaii would be considered a weakness.
False
The strategic planning process always proceeds sequentially through the five steps.
False
When Ramona, the keynote speaker at a major business leaders’ conference, arrived in the middle of the night at the Ritz-Carlton, she was exhausted and her suit was wrinkled from her ten-hour plane trip. The night clerk found someone to dry clean Ramona’s suit and have it ready for her morning presentation. She has been a loyal Ritz-Carlton customer ever since. In this example, Ritz-Carlton demonstrated the macro strategy of
customer excellence.
Marketers want their firms to develop excellent supply chain management and strong supplier relations so they can
control prices and lock in margins.
For many years, Southwest Airlines distinguished itself as the low-cost airline. Now, many other low-cost competitors have entered the market. Similarly, Southwest was one of the first airlines to offer online ticketing. Now, all airlines have online ticketing. These examples suggest that
no single strategy is likely to be sufficient to build a sustainable competitive advantage.
Which of the following is LEAST likely to provide a sustainable competitive advantage?
lowering prices
Manufacturers who use just-in-time manufacturing systems coordinate closely with suppliers in order to ensure that materials and supplies arrive just before they are needed in the manufacturing process. While just-in-time systems can offer major advantages in terms of inventory costs, they must be carefully managed. If a firm found that its just-in-time system was badly managed, leading to frequent manufacturing delays due to missing parts, this would represent a(n) __________ in a SWOT analysis.
weakness
Many small businesses whose competitors are national franchises advertise “we are locally owned” or “we have been here since 1951.” This is part of these firms’
positioning strategy.
The idea of value-based marketing requires firms to charge a price that
captures the value customers perceive that they are receiving.
Google and other search engines allow marketers to bid to have their ads shown when consumers search on keywords related to the firm’s products. These marketers are attempting to create value through
promotion
The first objective in the evaluate performance phase of the marketing planning process is to
review implementation programs and results using metrics.
Understanding the causes of performance, regardless of whether that performance exceeded, met, or fell below the firm’s goals
enables firms to make appropriate adjustments.
After conducting STP analysis for her custom auto parts store and developing strategies for each of the four Ps, Monique now has to make _____________ decisions.
resource allocation
Heather has been assessing a number of her firm’s products using the Boston Consulting Group approach to portfolio analysis. She has been trying to assess the strength in a particular market and is looking at the sales of the product and the overall market as well as the sales of competitors. Heather is trying to determine:
the product’s relative market share.
Which of the following is NOT one of the four major growth strategies marketers typically utilize?
segment development
Adrienne decides to add new sales representatives and increase advertising in her existing market for her current line of security systems. Adrienne is pursuing a __________ growth strategy.
market penetration
A ___________ growth strategy employs the existing marketing offering to reach new market segments.
market development
When pursuing a market development strategy, expanding into international markets is generally
more risky than expansion in domestic markets.
Marketers who design and offer new products and services to their existing customers are pursuing a ____________________ growth strategy.
product development
Zara is a women’s clothing retailer headquartered in Spain, with stores located in many countries. Zara has developed a “quick response” system that allows store merchandise to be adjusted rapidly to fit changing customer preferences. Every aspect of Zara’s operation is optimized for this system, making it difficult for competitors like The Gap to duplicate. Zara has established
a sustainable comparative advantage
When a pharmaceutical company develops a new medication, it typically applies for a patent in order to prevent competitors from developing copycat products for several years. Pharmaceutical companies apply for patents in order to establish
a sustainable competitive advantage.
In its discussion of Nike and adidas, two major athletic shoe manufacturers, the text mentions that Nike has purchased Umbro, a sports brand that has appealed mainly to soccer (European football) enthusiasts in the past. This action suggests that Nike intends to compete head to head with adidas, which got its start designing soccer shoes. On a SWOT analysis for adidas, how should Nike’s acquisition of Umbro be categorized?
threat
Delta Airlines is among the companies experimenting with selling products and services on their Facebook pages. The idea is to make purchasing even easier for customers who may spend large portions of the day with Facebook active on their computers or mobile devices. There is no need even to navigate to Delta’s website–users can book a trip in Delta’s “Ticket Agent” application without ever leaving Facebook. Which element of the marketing mix does this represent?
place and value delivery
A product that is in a high-growth market but has a low market share would be classified as ________ on the BCG matrix.
question mark
Smartphone owners tend to be older and more affluent than owners of other types of phones, making them an attractive target market for many firms.
False
Josie became the “Mayor” of Charming Charley’s accessories store during the first few months of school, and earned a store coupon. Josie doesn’t realize it, but she is helping to promote Charming Charley’s to other FourSquare users.
True
Keyword analysis refers to the study of people’s queries on search engines.
True
The more connections you have on social networks, the greater your social reach.
True
It is not possible to measure an individual’s social media usage.
False
The 4E framework for social media guides marketers in using social media effectively to build and deepen customer relationships. Which of the following is NOT one of the four E’s in this framework?
Energy
While waiting in line to make a purchase at Best Buy, Joanie sees signs reminding her to visit its website for online specials and to sign up right now on her smartphone for the Best Buy Loyalty Rewards Program. Others signs remind her that Best Buy will match competitors’ prices on any item they sell. This is an example of which 4E framework?
Educate
Gene’s Complete Cameras offers its customers an interactive website to help them choose the best camera for their lifestyle. But the site’s most-used feature is its user blog in which customers—both satisfied and unsatisfied—talk about products they have purchased and the service received at Gene’s. The user blog best describes which of the 4E frameworks for the store’s customers?
Engage
Karlie likes to post fancy cupcakes and cookies on Pinterest. She also posts pictures of fun kitchen equipment in sherbet colors, and looks for baking ideas and equipment. What type of social media site is Karlie using?
media-sharing
Lauren decides to use Twitter to market her hand-painted scarves to other women on her campus. She sets up a Twitter account with the name @uniquedesignsbylauren, and posts this on her Facebook page, making sure to tweet every few days. Soon Lauren is selling a lot of scarves. Lauren’s Twitter account is an example of
microblogging
Carol loves to experiment with unique uses of computer animation. Every time she finishes a project, she uploads a video to YouTube and then posts the link on a variety of social networks where she participates. What segment of social networking users does Carol belong to?
creators
What is Google+?
a social networking site
Suppose that Nike wanted to use Facebook to increase awareness of a new line of tennis shoes. Which of the following methods would allow Nike to specifically target Facebook users who have mentioned tennis in their profiles?
Placing a Facebook ad.
Southwest Airlines operates a blog called “Nuts About Southwest.” A group of employees share the responsibility for posting items of potential interest to customers—for example, short videos about Southwest’s travel destinations, articles (with photos) about special events, and news about airline promotions. “Nuts About Southwest” is an example of a
corporate blog.
Excluding computers, which of the following methods is used by more consumers to access social media?
mobile phones
Julian and his friends log into an app at the mall. They follow a series of challenges in participating stores, which include snapping pictures of different products and bumping phones with other shoppers. The winner receives a coupon for the food court. What game are they participating in?
SCVNGR
When a company that uses social media runs a contest online, it will measure its effectiveness in a variety of ways. One such measure is the conversion rate. The conversion rate for the contest promotion would be
the percentage of visitors to the page describing the contest who entered the contest.
Companies that specialize in sentiment analysis are least likely to look at ___________ for data.
YouTube
One measure of traffic from visitors on sites, the total page requests, is measured in units called
hits.
The first step in the process of creating a social media campaign is to
set goals.
Darren has developed a better type of medication vial for travelers. He is not sure how to develop a marketing program for his product, as there are a few similar ones on the market. What technique can Darren use to analyze data from his competitor’s websites, particularly to learn how people search for similar products online?
keyword analysis
__________ are a measure that indicates what percentage of potential customers act as the marketer hopes, either by clicking, buying, or donating.
Conversion rates
Despite its vivid design, the website for Lolly’s Bookstore did not seem to attract customers who lingered. In fact, most website visitors left the site before they made a purchase. Which measure does the owner need to address?
bounce rates
According to the text, which of the following has earned the highest Klout score?
Justin Bieber
essica is still in college, but is very motivated to earn some extra money in her spare time. She is quite knowledgeable regarding politics, and was hired by a candidate to generate student interest by posting online articles on student-read sites. Jessica’s new job most likely has the title of
blogger.
The three elements of the consumer’s immediate environment are the company, competition, and corporate partners.
True
Demographic profiles of customers provide an easily understood “snapshot” of the typical consumer in target markets.
True
As the euro becomes more expensive relative to the dollar, Americans are likely to purchase more European wines.
False
Members of Generation Y share a strong emphasis on balancing work and life.
True
The members of Generation X are also referred to as Digital Natives.
False
Inflation refers to the cost of borrowing money.
False
The marketing firm must consider the entire business process from an economic point of view.
False
As a retail clothing store manager, Randy frequently asks his staff what customers are saying and what they are asking for. He also attends the quarterly clothing show at the regional merchandise mart. Randy’s efforts will likely help him to
identify potential opportunities.
Successful firms focus their efforts on satisfying customer needs that
match their core competencies.
Yellow Trucking provides transportation services for Dan’s Delicious Donuts so that Dan’s stores always have a fresh stock. Yellow Trucking is an example of a
corporate partner.
Insight Guides, a line of travel books, provides travelers with background information about the people’s beliefs, values, and customs. Insight’s books educate travelers about a country’s
culture
When studying culture, the challenge for marketers is to determine whether culture
can help to identify a particular group that might be interested in the marketer’s products.
The shift of population from the “Rust Belt” in the North to the “Sun Belt” in the South and Southwest will likely
reduce regional cultural differences.
From a marketing perspective, what separates __________ from the generation before them is that they are individualistic, value leisure time as a high priority, and are trying to maintain their youth.
Baby Boomers
ABC Company knew that its customers were interested in environmentally friendly business practices, so it began marking all of its products as environmentally friendly because they were made with all natural ingredients, even though ABC’s plant was one of the worst polluters in town. The new term for this practice is
greenwashing
For some products, marketers can combine education level with other data like occupation and income to obtain
useful predictions of purchase behavior.
Marketers should not assume that they can target all Asian consumers in the United States with one strategy because
they speak different languages and come from different cultures.
By offering environmentally responsible products, green marketers
add value that other products do not have.
In the early 1990s, the inflation rate in Mexico was twice the rate in the United States, but the Mexican monetary authorities kept the peso/dollar exchange rate almost constant. For Mexican consumers
Mexican products became more expansive while U.S. made products became comparatively less expensive.
Which of these is a macroenvironmental factor?
culture
Suppose that you are the vice president of marketing for Target, the large retail store chain. You want to keep your website and in-store services current with technological advances. You would be experimenting with what is most likely the next expected development in mobile technology, which is
wireless payments form mobile devices.
Part of the social trend toward health and wellness is a concern about the increasing degree of obesity in the United States. Related to this, the text notes the increasing popularity of
yoga.
Which of the following is an example of greenwashing?
A company donates money to a school reading project so it can advertise itself as environmentally friendly.
Which ethnic group in the U.S. tends to earn more, have more schooling, and be more likely to be professionally employed or own a business?
Asian
Which ethnic group not only tends to be more affluent and suburban than previously thought, but also younger, with 47 percent between the ages of 18 and 49 years?
African American
One benefit of having satisfied customers is that they may spread positive word of mouth.
True
Pam didn’t go see the movie Gravity because her friends all said she wouldn’t be able to handle it. When she found out how good it was, she blamed her friends. Pam is demonstrating an internal locus of control.
False
Another name for physiological risk is safety risk.
True
When Karen realized her dog had fleas, Karen had
an unsatisfied need
A key to successful marketing is determining how to meet the correct balance of __________ needs that best appeals to the firm’s target markets.
functional and psychological
When the floor rusted through on her old car, Kelly knew she had a problem. Logically, Kelly’s next step in the consumer decision process would be to
search for information about cars.
Ryan believes he is responsible for his actions, and he will conduct extensive searches before making a purchase. Michael’s favorite phrase, when confronted by the need to make a decision, is “Whatever.” In marketing terms, Ryan is said to have a(n) __________ and Michael, a(n) __________.
internal locus of control; external locus of control
Before flying, Jaden researches the types of planes the airline uses, scans the plane for defects as it taxis up to the terminal, and follows the pilot and crew as they come through the airport. He has no experience as a pilot or airplane mechanic. Jaden probably has a misguided sense of his
locus of control
Consumers consider universal, retrieval, and evoked sets during which stage of the consumer decision process?
evaluation of alternatives
When Maya decided to buy a new computer, she thought about all the brands she could recall seeing advertised, but she would only consider those brands she could buy at her local Best Buy electronics store. This represents Maya’s __________ set.
evoked
Postpurchase cognitive dissonance is especially likely for products that are
expensive, infrequently purchased, and associated with high levels of risk.
Most firms maintain customer complaint services online, in the store, or over the telephone. Firms attempt to respond quickly to complaints, hoping to
minimize negative word of mouth and rumors.
There are approximately 1 billion people living in India. Only about 200 million of these people earn more than the equivalent of $1,000 per year. According to Maslow’s Hierarchy, most of the other 800 million Indian consumers are primarily addressing their __________ needs.
physiological
Natalie and her fiancée Dow are planning their wedding. She knows her mother wants her to have a traditional church wedding with a Roman Catholic priest officiating. Natalie would like to have an informal ceremony on the beach, since that type of wedding has become popular with her friends. Furthermore, Dow is from Thailand and would like to have a monk officiate. Natalie and Dow’s wedding decisions are most influenced by
family, reference groups, and culture.
Before going on his first business trip to China, Brad asked his Chinese-American friend to advise him on customs and values common among the Chinese businesspeople he will likely encounter. Brad is trying to avoid __________ business blunders.
cultural
Where Caroline grew up, everyone knew everyone else, no one locked the doors on their house, and a person’s word could be trusted. When she went to work in another part of the country, she was surprised by how few people had similar values and beliefs. Caroline had to adjust to __________ differences.
cultural
Steve wasn’t sure what kind of salsa he wanted to get for his upcoming Super Bowl party. It seemed like there were dozens of varieties to choose from. He noticed that he could sample a few at a station in the store. He tried four, rejected two, and bought several jars of the two he really liked. He also ended up buying a different—and more expensive—kind of tortilla chip after tasting it. Marketers identify this as a success story of
in-store demonstrations
Brenda was planning a small dinner party, and had gone to a new specialty food store with coupons she’d found in the food section of the paper. At the store she also found a “buy one, get one free” deal, and a gift offered with the purchase of a particular dessert. She altered the menu as a result of the __________ and ended up spending less than she’d planned.
in-store promotion
Many states have laws regulating the prices businesses charge during emergencies like hurricanes. These laws are designed to protect consumers whose __________ state may impair their ability to make sound purchase decisions.
temporal
Consumers use and process different aspects of advertising or messages. __________ yields greater attention and deeper processing, and leads to strong attitudes and purchase intentions.
High involvement
Thanh has to decide which college to attend. This is the most important, riskiest and most expensive decision she has ever made. She will be engaged in
extended problem solving
A home security company will advertise the need for home surveillance products to appeal to which level of Maslow’s Hierarchy of Needs?
safety
Some websites provide allow consumers to shop while getting opinions from online friends. Which of the influences on the consumer buying process does this represent?
social
Reginald greets his regular customers by name every morning when they come in for coffee. He offers them a taste of anything special he is cooking that day. He has a database with their birthdays, and offers them free meals on their birthdays. Reginald hopes that this attention to his “regulars” will encourage them to
spread positive word of mouth
Zappo’s online shoe and clothing store has a unique way of dealing with abandoned shopping carts. If a site visitor places items into the shopping cart and then leaves the site without making a purchase, several days later Zappo’s sends a humorous email saying, “Let us show you what your shopping cart did while you were gone,” along with a photo of a cute dog intended to represent the shopping cart. This attention-getting device is designed to improve the site’s
conversion rate.
Most Americans tend to take access to global products and services for granted.
True
In a joint venture, the burden of ownership, control, and profits is not share.
False
An effective global pricing strategy can be easily established by setting the same price in every market around the world.
False
In order to maximize potential, segments and target markets can and should be defined by more than just geography.
True
Using middlemen in global distribution networks generally lowers costs and prices for products.
False
Direct investment offers the firm complete control over its operations in the foreign country.
True
The components of global market assessment include all of the following EXCEPT
ethnic analysis.
In most cases, countries use tariffs to reduce foreign competition, but tariffs are also used
as a response to perceived unfair trade practices
Geert Hofstede’s cultural dimensions concept focuses on five dimensions of ____________ in a country.
underlying values
NCD company wants to expand into the Mexican market. It has the financial resources, wants to control business operations, and has had considerable success marketing to Hispanics in the United States. NCD will likely use __________ to expand into the Mexican market.
direct investment
Cultural nuances, subcultures, and consumers’ different views of their roles in different countries can make __________ complicated.
segmentation, targeting, and positioning.
Global marketers are under constant pressure to shorten distribution channels in order to
reduce costs.
The term “trade deficit” refers to
higher levels of imports than exports
Which of the following is currently a negative factor for foreign investment in Russia?
Russia is known for corruption, creating ethical dilemmas for firms.
Which of the following is a potential negative factor for foreign investment in China?
China’s population is aging rapidly.
Which country’s government has recently made significant changes that will modernize the retail environment, such as allowing joint ventures and direct ownership in some cases?
India
Which country has embraced market-oriented economic development in spite of maintaining communist political ideals?
China
China has three main languages, and many more dialects. This presents a particular challenge to developing a global ________ strategy.
communication
When a marketer adjusts the marketing mix to give customers a clear, distinctive understanding of what the product does, the marketer is engaging in psychographic segmentation.
False
Positioning strategies generally focus either on how the product benefits the consumer or on how it is better than competitors’ products.
True
When Penguin Catering Services first opened, the owner decided to target only events at resorts in its geographic region. Penguin Catering was using a(n) __________ targeting strategy.
concentrated
Differences in weather and climate create opportunities for
geographic segmentation.
Psychographics is the segmentation method that delves into how consumers
describe themselves.
In order to develop psychographic segments, the marketer must understand consumers’
self-values, self-concept, and lifestyles.
Baby Boomers represent a huge demographic segment for travel marketers. Baby Boomers are also heavily motivated by self-fulfillment, which creates the possibility of __________ segmentation.
psychographic
Marketers have found that __________ segmentation is often more useful for predicting consumer behavior than __________ segmentation.
psychographic; demographic
Although marketers have found that psychographics are often more useful for predicting consumer behavior than demographics, psychographic segmentation
is a more expensive method for identifying potential customers.
__________ segmentation is the segmentation method most directly related to value creation for consumers.
Benefit
Toothpastes sold in supermarkets and pharmacies promise various results, such as whiter teeth, protection against gum disease, tartar control, or fresh breath. Toothpaste marketers are using __________ segmentation.
benefit
Geodemographic segmentation can be particularly useful for __________, because customers typically patronize stores close to their neighborhood.
retailers
When Ron complained to his bank about the unprofessional behavior of one teller, the branch manager added a code into his accounts alerting all tellers that Ron was a valued customer and to provide whatever service he requests. The branch management included Ron in its __________ segmentation.
loyalty
Airlines were among the first retailers to embrace loyalty segmentation when they created
frequent flyer programs
Karen has identified four potential market segments for her Rent-A-Chef home meal catering service. The next step is to
evaluate the attractiveness of each segment.
Ryan wants to sell personal website services to American soldiers in Afghanistan. Because of the difficulty of communicating with people in a war zone, Ryan may have trouble with this segment not being
reachable
With access to the Internet nearly universal in the United States, many potential market segments have become more
reachable
When Talbots, an upscale women’s clothing store, tries to portray an image of “traditional, conservative, and with good taste,” it is appealing to its target market’s
lifestyle
After assessing the market growth potential and market competitiveness for his company’s baby products in Mexico, Harmon wanted to evaluate market access. To do this, Harmon would consider
ease of accessing or developing distribution channels and brand familiarity.
Paula is trying to determine whether the segments she is considering for her day care center will be profitable. Which of the following will NOT specifically help her in this analysis?
The average number of school-age children in families sending a child to the day care center.
Ronaldo wants to develop an Internet auction-based business and is working through the STP process. After establishing his objectives, describing potential market segments, and evaluating the attractiveness of each segment, Ronaldo now has to
select a target market.
Regina wants to position her financial services company. Regina can position her services according to all of the following EXCEPT
profitability
Jim wants to position his firm against his competitors. In doing so he should
avoid looking too much like the competitor so that he’d confuse the target segment
Overriding desires that drive how we live our lives are called
self-values.
When evaluating the attractiveness of the segment, if a segment is expected to react positively to the firm’s offering, we say that the segment is
responsive
Brand equity is calculated by subtracting sales of generic brands from the sales of branded items in a category.
False
The more familiar customers are with a brand, the harder their decision-making process will be.
False
In entertainment licensing, the major risk to licensees is that the brand will become overexposed.
False
For the average college student, a retirement account would be a shopping product.
False
Kellogg’s sells many different breakfast cereals, including Corn Flakes, Rice Krispies, Frosted Flakes, Raisin Bran, and Special K. This is an example of the breadth of the Kellogg’s product mix.
False
Nike sells shoes, clothing and athletic gear. These represent the breadth of Nike’s products.
True
A decrease in a company’s product depth will always hurt its marketing efforts.
False
A familiar brand name always helps the sales of a product.
False
The complete set of all products offered by a firm is called its
product mix.
For a major university, undergraduate studies, graduate studies, and professional programs would be __________ within the university’s product mix.
product lines
Which of the following scenarios is NOT a reason a firm would eliminate an item within a product line?
The firm has decided to capture new markets.
The decision to delete a product is never taken lightly because, generally, manufacturers have
made substantial investments in product development and manufacturing.
A __________ brand is one where there is a contractual arrangement between firms allowing one to use its brand name for a fee.
licensed
In the case of Band-Aid adhesive bandages, the brand name has
become synonymous with the product itself.
Salina is working to create greater brand awareness for her company’s new line of personal digital assistants. To increase brand awareness, the LEAST important information that should be included in promotions is
the product history.
Nora is deciding whether to purchase brand name sneakers or a store brand. She has purchased other shoes with the same brand name in the past but was only marginally satisfied. In this situation, Nora is likely to purchase the store brand sneakers because they offer
greater perceived value.
For marketers, one of the benefits of having achieved brand loyalty is
lower marketing costs associated with reaching loyal customers.
One of the major tools used by marketers to meet the needs of loyal customers is
CRM
Marketers with luxury brands use brand extension cautiously in order to avoid
diluting the core brand.
Shell MasterCard, created cooperatively by Shell Oil Company and Master Card, is an example of
co-branding.
Another name for brand repositioning is
rebranding.
Zappos, an online shoe company, knows shoes are typically a(n) __________ good, with consumers often spending time comparing alternatives. They overcome that aspect of consumers’ search process by offering a free, no questions asked return policy.
shopping
Which of the following is NOT part of the “actual product” level of the product offer?
product warranty
Some credit cards provide free liability insurance, funded by the bank issuing the card, when a customer pays for a rental car using the card. This extra insurance is an example of
an associated service.
What is “wrap rage”?
frustration by a customer when the packaging makes it difficult to get at the product
New product development adds value to a firm’s products and services through innovation.
True
Even if products succeed, not all consumers adopt new-to-the-world products at the same time.
True
To determine if a new product is commercially viable, a firm can conduct premarket testing.
True
On the diffusion of innovation curve, the first group of buyers who want to be on the block to have the new product are known as early adopters.
False
The diffusion of innovation curve follows the following sequence: innovators, early majority, early adopters, late majority and laggards.
False
By adding new product lines beyond its core business of computer software, like the Zune MP3 player and Xbox 360 game system, Microsoft primarily benefits by
creating diversification and reducing risk.
Successful first movers create a market or a product category. They often benefit from being readily recognizable to consumers and
establishing an early market share lead.
Even if they succeed, new-to-the-world products are
not adopted by everyone at the same time.
The process by which the use of a new product or service spreads throughout a market group is referred to as
diffusion of innovation
As soon as she saw one, Hillary wanted a flat-screen television, but she was worried about making the wrong choice. She waited until there were alternatives in the market with lower prices and improved quality. Hillary is part of the __________ diffusion of innovation group.
early majority
When John began helping his favorite uncle Burton with his finances, he discovered his uncle was still renting a rotary-dial telephone from the phone company. Uncle Burton had paid thousands of dollars in rental fees over the previous forty years. Uncle Burton is a(n) __________ in the diffusion of innovation process for telephones.
laggard
Inkjet printers were a big improvement over the dot matrix printers they replaced. Inkjet printers gained rapid acceptance in the marketplace primarily because of their
relative advantage.
Which of the following is LEAST likely to be a source of ideas for new products?
geodemographic segmentation
A major limitation in the use of internal R&D departments for new idea generation is
the costs tend to be quite high.
The pharmaceutical industry often justifies the high prices for new drugs by arguing that they research as many as one hundred new compounds before they come up with one __________, an extremely successful product that pays for the costs associated with the other attempts to develop new products.
blockbuster
Suppose that you work for an advertising agency and are brought into a meeting where everyone is asked to generate ideas for names for a new beach resort. You are engaged in __________, a form of new idea generation.
brainstorming
Kristina created a virtual prototype of her new line of swimwear on a website to show to consumers. Kristina will ask consumers what they think of the clothing, but the most important question is
whether or not they would purchase the swimwear if it becomes available.
The __________ step in the product development process is critical, requiring tremendous resources and extensive coordination of all aspects of the marketing mix.
product launch
Which of the following would NOT be part of the launch of a new product?
educational efforts for complex or conceptually new products
Which of the following is NOT one of the four product life cycle stages?
location
Microsoft’s Windows operating system continues to dominate the market, even though it has been around for over twenty years. Windows will likely remain in the maturity stage of the product life cycle
until a superior product comes along to replace it.
When Dr. Putt invented his Eye-Over-the-Ball (EOB) golf putting device, he knew during the introductory stage
sales would be low and profits nonexistent, but he would attract golf equipment innovators.
Which of the following is NOT a characteristic of products in the maturity stage of the product life cycle?
Laggards are a major focus of marketing efforts.
The ___________ is a specific price at which manufacturers encourage retailers to sell a product.
manufacturer’s suggested retail price
When a manufacturer launches a new product, it may offer __________ to wholesalers and retailers, including introductory price promotions, special events, and personal selling.
trade promotions
The key to successful pricing is to match the product with the consumer’s perception of value.
True
Rarely is the lowest-price product offering the dominant brand in a given market.
True
At the break-even point, profits are maximized.
False
Odd prices suggest low quality.
True
Gerald has a number of customers for his lawn care service who never question his bill but expect their lawns to be perfect. These customers do not want low prices, they want
high value.
Unlike product, promotion, or place, price is the only part of the marketing mix
that generates revenue
Which of the following is NOT one of the Five Cs of pricing
collaboration
Gary is the marketing manager for an automobile dealership. His boss tells him the firm’s primary goal is to increase their local market share from 15 to 30 percent. His firm is using a ________ orientation.
sales
Health clubs often use a low, introductory offer price to get people to join their club. These low prices represent a ______________ pricing strategy.
sales orientation
Julia wants her firm’s gourmet snacks to be the leading brand in the U.S. market. When adopting a pricing strategy designed to gain market share, she should remember that
rarely is the lowest-price offering the dominant brand in a market.
A demand curve shows the relationship between ___________________ in a period of time.
price and demand
_________________ measures consumers’ sensitivity to price changes.
Price elasticity of demand
For which of the following is demand likely to be most sensitive to price increases?
prescription drugs
Variable costs change with
changes in the quantity being produced.
Raymond estimates that the fixed costs associated with opening a new bank branch are $500,000. He expects the branch to attract 1,000 new customer accounts in the first year, each of which will cost $50 per year to service. He also expects to generate $100,000 per year in revenue. For Raymond, the total cost of opening the new branch and remaining open for one year will be:
$550,000.
If the fixed costs of manufacturing a new cell phone are $10,000, the sales price is $60, and variable cost per unit is $20, the break-even point is
250 units.
Because there are only a few firms in markets with oligopolistic competition,
price wars may occur
In a market with _________________, there are many firms providing differentiated products.
monopolistic competition
Because there are many firms in monopolistic competition markets,
the many competitors will focus on product differentiation.
Because there are many firms with similar products in purely competitive markets,
price is determined by the laws of supply and demand.
In determining the price for his company’s new pocket digital camera, Matt determines what consumers consider the regular or original price for similar cameras available in the market. Matt is assessing the influence of __________ on pricing strategy.
reference prices
Odd prices often suggest ___________ to consumers.
low quality
Price skimming focuses on selling products to __________ and __________ in the consumer adoption process model.
innovators; early adopters
____________ pricing tactics lower the price of a product below cost.
Loss leader
It is the responsibility of __________ to determine the ethical approach to setting prices so consumers find value and the firm can make a profit.
marketers themselves
Marketing channel management creates value by getting products to customers efficiently.
True
Retailers generally have no prior knowledge of the merchandise they will be receiving from suppliers in any particular shipment.
False
A firm just starting out usually has the option of choosing from whom it buys and to whom it sells.
False
When manufacturers such as Pampered Chef sell directly to consumers, they perform both production and retailing activities.
True
Distribution centers are always operated by distribution specialists.
False
The vertical marketing system that exhibits the most formalization and control is the corporate vertical marketing system.
True
Students of marketing often overlook or underestimate the importance of place in the marketing mix simply because
it happens behind the scenes.
Typically, manufacturers and retailers exchange business documents through a(n) __________ system, the computer-to-computer exchange of business documents from a retailer to a vendor and back.
electronic data interchange
Roland has just received notification from a vendor that his clothing merchandise order has been processed and dispatched. Roland has just received a(n)
advanced shipping notice
With a pull marketing strategy,
orders for merchandise are generated at the store level based on sales data captured at POS terminals
Which of the following is NOT an advantage of using a distribution center?
Customers know they are dealing with a more sophisticated and financially well-off operation if the firm uses a distribution center.
Which of the following is NOT one of the activities carried on in a distribution center?
Distributing paychecks and paystubs for retail employees
__________ is when vendors ship merchandise prepackaged in the quantity required for each store to the distribution center.
Cross-docking
Colin has just received a delivery from the company’s distribution center. He opens the containers and finds the popcorn and snacks are all bar-coded, priced, and the package includes an end-of-the-aisle display rack. Colin has received a __________ shipment.
floor-ready
Each time a politician or celebrity writes a book, bookstores can expect at least some customers to want the book, but whether or not it will become a bestseller is less certain. The bookstore’s primary inventory management challenge is
having enough books to satisfy customer demands versus the cost of having the inventory.
At the BMW plant in Spartanburg, South Carolina, suppliers deliver parts every four hours when the plant is in operation and are responsible for removing any packaging or pallets used to deliver their products. BMW uses a ______________ inventory control system.
JIT
Especially in the fashion industry where styles and trends change rapidly, a quick response system can
align deliveries more closely with actual sales.
Although conflict is likely to occur in any supply chain, it is generally more pronounced when
the supply chain members are independent entities.
TT TOYS manufactures toys. The company recently started buying paint for its toys from a Chinese firm. This Chinese company is part of TT Toys’
supply chain
A(n) __________ is the set of institutions that transfer the ownership of and move goods from the point of production to the point of consumption.
marketing channel
A(n) __________ is a 13-digit code retailers can use to track inventory
UPC
When Joe’s Chicken Shack wants chicken delivered in smaller batches more frequently, it offers its distributors an incentive in the form of special bonuses to change their schedules. Joe’s demonstrates which kind of power?
reward
When their dry goods deliveries were late for the third time, Melissa withheld payment from her supplier until it was back on schedule. This is an example of ________ power.
coercive
In a retail supply chain, the ________ records the purchase information and electronically sends it to the corporate office.
POS terminal
The local auto supply store gets merchandise delivered to it by its manufacturers as soon as it has a need, reducing stockouts with minimal inventory. This demonstrates the concept of
vendor-managed inventory.
Betty is assessing the effect of her firm’s marketing communications. She should remember that the ultimate goal is to drive the receiver to action.
True
Mobile marketing involves marketing to customers through wireless handheld devices such as mobile phones.
True
Personal selling can only be successful through the use of print, newspapers, and radio.
False
Gross Rating Points (GRP) measure how often the audience is exposed to a communication within a specified period of time.
False
Frequency describes the percentage of the target population exposed to a specific marketing communication, such as advertisement, within a specified period of time.
True
Especially for marketers with new products or services, IMC is needed because
consumers are unlikely to buy products they are not aware of.
The IMC communication process includes all of the following EXCEPT
evaluation
Which of the following is NOT a communication channel used in the IMC process?
supply chain
__________ refers to the process by which the receiver interprets the sender’s message.
Decoding
If you ever watched a television commercial and at the end of the message wondered what they were promoting, you may have had trouble __________ the IMC message.
decoding
In the IMC process, noise can occur as a result of lack of message clarity, a poor choice of medium, or
competing messages.
Advertising agencies often provide the IMC function of comparing their customer’s target audience with the viewer, listener, or reader profile of the communication channel being considered. The agency is most likely trying to avoid noise problems associated with
a poor choice of medium.
The _____________ loop allows the receiver to communicate with the sender in the IMC process.
feedback
Julia is driving down Interstate 95 on her way from New England to Florida and sees a billboard saying “South of the Border Restaurant and Motel is just 100 miles away.” Julia has never heard of South of the Border before. After seeing the sign, she will most likely need additional exposure to the product before deciding whether to stop at South of the Border. This is an example of
the lagged effect.
Which of the following is NOT one of the steps in the AIDA model?
intention
In simple terms, the AIDA model is also known as the __________ model.
think, feel, do
Even the best marketing communication can be wasted if the sender does not first
gain the attention of the consumer.
In the movie Field of Dreams, one of the memorable phrases is, “If you build it, he will come.” The AIDA model would suggest that after marketers “build” a product or service and create awareness among consumers, they need to
create interest among consumers, persuading them to investigate further.
The goal of any marketing communication is to
get the right message to the right audience through the right media.
Compared to mass media advertising, a key advantage of direct marketing in
it allows for personalization of the message.
Cora will be a bridesmaid next summer, and has purchased her dress online. When she turns on her computer again, Cora is surprised to see special offers for matching accessories. This is an example of which marketing strategy?
direct marketing
When purchasing books on Amazon.com, customers are shown other books and a message saying “Customers who purchased (your book) also purchased….” This is an example of
direct marketing.
An ad for Bud Light ran six times during a recently televised football game. When measuring IMC results for this ad, six would be the __________ for this telecast.
frequency
Charming Charlie’s, a fashion accessories retailer, encourages visitors to its stores to “check in” using a smartphone app. In return, customers receive an instant coupon toward that day’s purchase. This is an example of
mobile marketing
In a television commercial for Chobani Greek yogurt, the manufacturer Chobani plays which role in the communication process?
sender
An advertising campaign’s objectives should be specific and measurable.
True
A pulsing advertising schedule uses periods of heavy advertising followed by periods of no advertising.
False
Although it is usually brief, the role of the subhead in print advertisements is to provide additional product information.
True
Contests and sweepstakes are both forms of sales promotions, but a contest requires some sort of skill or effort, while a sweepstakes is a drawing of entrants’ names.
True
Kelly is the head of marketing for a nonprofit agency that supports the arts. She just received the go-ahead from her board of directors to conduct the agency’s first-ever advertising campaign. Her first step will be to
identify the target audience.
Advertising slogans such as “Don’t text and drive” and “Buy flood insurance before it is too late” are examples of ads designed to
persuade consumers to take action.
Because advertising is the most visible form of marketing,
many people think of marketing and advertising as synonymous.
Yesenia is working on an advertisement to promote consumer awareness of the danger of solar radiation causing skin cancer. Yesenia’s first concern will be to
get consumers’ attention.
Brent is working on an advertising campaign to promote downtown businesses. He knows the increasing number of advertising communication channels available and changes in consumers’ media usage
makes his job more difficult.
After using market research to identify the target audience for his advertising campaign, Jorge will next use this information to
set explicit and measurable objectives for the campaign.
“Now available. The latest fall fashions.” is an example of a(n) __________ advertising message.
informative
Campbell’s Soup Company ran a series of radio ads tied to local weather forecasts. Before an impending storm, the ads said “Time to stock up on Campbell’s Soup.” During the storm, the ads said, “Stay home and stay warm with Campbell’s Soup.” The first ad was __________ advertising, while the second ad was __________ advertising.
persuasive; reminder
The content of an advertising message is closely tied to
the characteristics of the media selected to carry the message.
Generally, which of the following is the most expensive media buy?
television
In addition to Spanish-language media, which of the following mediums are experiencing significantly growing advertising expenditures?
Internet
One of the advantages of niche media is it often allows marketers to
change and personalize messages for different audiences.
A ____________ advertising schedule uses heavy advertising during some periods followed by periods of no advertising.
flighting
A ____________ advertising schedule uses a base level of advertising during some periods followed by periods of increased advertising.
pulsing
In the “create advertisements” step when planning and executing an ad campaign, often the execution style for the ad will
dictate the type of medium used to deliver the message.
Thomas had conducted a thorough pretest before the new ad campaign, so he was fairly sure the elements would work together. A lot was riding on the success of the ad campaign, so he couldn’t wait until the campaign was over to see how well it did. During the campaign, he will be monitoring the sales volumes on a daily basis as part of his
tracking
Brett has developed a vitamin-enriched crouton in crazy colors that can be added to children’s salads to make them more nutritious and fun. She’d like to ethically advertise the product directly to the children, so she is examining
the Better Business Bureau’s Children’s Advertising Review Unit guidelines.
__________ are special incentives or excitement-building programs that encourage consumers to purchase a particular product, often used in conjunction with advertising or personal selling programs.
Sales promotions
Sarah goes through the newspaper looking for coupons to help reduce her living expenses. Her roommate Paige doesn’t read newspapers, let alone look through them for coupons. But Paige filled out a form from inside a cereal box entering her in a drawing for free exercise equipment. What kind of sales promotion reached Paige?
sweepstakes
Actress Sissy Spacek once objected to a series of movie scenes that included her smoking a certain brand of cigarettes. She was probably objecting to a __________ arrangement the film company had made with an advertiser.
product placement
Traditionally, marketers have seen the role of __________ as generating short-term results, whereas the goal of __________ was to lead to long-term results.
sales promotion; advertising