UNIT1 Marketing is _____. 1. another word for advertising and sales 2. only used by major corporations 3. about satisfying customer needs 4. about simply making a profit The first step in the marketing process is to work to understand customers. 1. True 2. False Once we have created value for customers, the final step in the marketing process is to capture value from them. 1. True 2. False The most basic concept underlying marketing is that of _____. 1. profits 2. products 3. human needs 4. services Marketers create social needs in consumers. 1. True 2. False (Marketers do not create customer needs, whether social, physical or individual.
Needs are a basic part of the human makeup. ) The act of obtaining a desired object from someone by offering something in return is called a(n) _____. 1. exchange 2. switch 3. market 4. sale The art and science of choosing target markets and building profitable relationships with them is called _____. 1. marketing profiles 2. marketing maneuvers 3. marketing selection 4. marketing management Which marketing philosophy listed below is useful when supply exceeds demand and when production costs are too high and need to be reduced? 1. production concept 2. product concept 3. selling concept 4. marketing concept
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Which marketing philosophy believes that an organization can achieve its goals if it knows the needs of its target market well and delivers satisfaction better than its competition? 1. production concept 2. product concept 1. selling concept 2. marketing concept Customer relationship management (CRM) is solely about acquiring and keeping customers. 1. True 2. False (CRM is about acquiring, keeping and growing customers. ) To build lasting customer relationships, firms should focus on delivering _____ and _____. 1. high quality products; low prices 2. customer value; customer satisfaction 3. ustomer satisfaction; customer growth 4. customer value; high profits It costs 5 to 10 times more to find a new customer than to keep a current one happy. 1. True (Due to changing demographics, more competition, and overcapacity in many industries, the cost of finding new customers is rising. ) 2. False The aim of customer relationship management is to _____. 1. create customer satisfaction 2. create customer profits 3. create customer delight 4. create customer longing The portion of the customer’s purchasing power that a company gets in its product categories is called its _____. 1. customer equity 2. hare of customer 3. customer quotient 4. customer lifetime value Customers that are a good fit between a company’s offerings and that are expected to be loyal over the long term are called _____. 1. butterflies 2. barnacles 3. true friends 4. strangers The most dramatic new technology is the Internet. 1. True 2. False The _____ is the nation’s 24th largest advertiser with an annual budget of over $1 billion. 1. Procter and Gamble Co. 2. Boeing Co. 3. Levi Strauss Co. 4. U. S. Government Which of the first four steps of the marketing process asks, “What consumers will we serve? ” and “How can we best serve targeted customers? 1. Step 1: Understanding the marketplace 2. Step 2: Designing the marketing strategy 3. Step 3: Constructing the marketing program 4. Step 4: Building profitable relationships with customers Which step of the marketing process is the most important? 1. Step 1: Understanding the marketplace 2. Step 2: Designing the marketing strategy 3. Step 3: Constructing the marketing program 4. Step 4: Building profitable relationships with customers In addition to delighting customers, companies today must also harness technology, think globally and be ethically and socially responsible. 1. True 2. False UNIT2
This type of business plan involves adapting the firm to take advantage of opportunities in its constantly changing environment. 1. annual plan 2. marketing plan 3. strategic plan 4. long-range plan A good mission statement should be all of the following except _____. 1. market oriented 2. product oriented 3. realistic 4. motivating The organization should base its mission statement on its _____. 1. profitable goals 2. customers’ welfare 3. product’s value 4. distinctive competencies Business portfolio management involves two steps. Step 1 requires the business to analyze its current business portfolio.
Step 2 requires it to shape its future portfolio. 1. True 2. False _____ are low-growth, high-share businesses or products. 1. Question marks 2. Cash cows 3. Dogs 4. Stars _____ are high-growth, high-share businesses or products. 1. Question marks 2. Cash cows 3. Dogs 4. Stars Which of the following are limitations to the BCG method of strategic planning? 1. difficult to implement 2. costly 3. provide little advice for the future 4. all of the above _____ has the main responsibility for achieving profitable growth for a company. 1. Management 2. Human resources 3. Marketing 4. All of the above
Which of the following is an example of market penetration for Starbucks? 1. adding drive-thru windows to their current coffee shops 2. adding new stores in the Southeast (market development) 3. adding hot breakfast items to the menu (product development) 4. buying Hear Music (diversification) Downsizing is reducing the business portfolio by eliminating products or business units that are not profitable or no longer fit the company’s overall image. 1. True 2. False The _____ takes the customer’s point of view. 1. Human Resource Dept. 2. Management Dept. 3. Information Technology Dept. . Marketing Dept. _____ should be at the center of a company’s marketing strategy. 1. Customers 2. Profits 3. Products 4. Employees _____ involves dividing a market into distinct groups of buyers who have distinct needs, characteristics, or behaviors and who might require separate products or marketing mixes. 1. Market definition 2. Target marketing 3. Product positioning 4. Market segmentation Once the various market segments have been determined, the next step in the marketing strategy process is _____. 1. market evaluation 2. target marketing 3. product positioning 4. market penetration
A company should target segments in which it can profitably generate the greatest customer value and sustain it over time. 1. True 2. False The purpose of a product’s image statement is to present the product in a clear, distinct and desirable way relative to competing products in the minds of target consumers. 1. True 2. False (positioning statement) The set of controllable, tactical marketing tools that the firm blends together to produce its response to the wants of its target market are called its _____. 1. marketing arsenal 2. marketing mix 3. marketing portfolio 4. integrated marketing options (IMOs)
The four P’s in marketing refer to_____, _____, _____ and _____. 1. product; place; price; promotion 2. product; property; price; promotion 3. production; property; people; promotion 4. product; place; promotion; people Which of the “P’s” listed below relates to a customer’s cost? 1. product 2. place 3. price 4. promotion Managers are correct in thinking that, “doing things right” (implementation) is more important than, “doing the right things” (strategy). 1. True 2. False (both are critical to success) UNIT3 A company’s _____ consists of its suppliers, marketing intermediaries, customers, competitors and publics. . macroenvironment 2. microenvironment 3. business environment 4. marketing environment _____ include resellers, marketing service agencies and financial firms that help a company to promote and sell its offerings to its final customers. 1. Advertising agencies 2. Suppliers 3. Intelligence firms 4. Marketing intermediaries Marketers today are only concerned with their consumer markets. 1. True 2. False (marketers today may have five types of customer markets. These are the consumer market, the business market, the reseller market, the government market and the international market.
A company’s _____ public includes its workers, managers, volunteers and board of directors. 1. employee 2. citizen-action 3. internal 4. human resource The single most important demographic trend in the U. S. is the changing age structure of the population. 1. True 2. False Of the seven generations present in the U. S. today, _____ is(are) the largest and most influential. 1. the Baby Boomers 2. Generation X 3. Generation Y 4. the Millenials In the United States today, married couples with children make up _____ of the nation’s 105 million households. 1. 50% 2. 65% 3. 25% 4. 34%
The disabled market is relatively small in the United States and is not being actively pursued by marketers. 1. True 2. False (Marketers are actively pursuing this market, which is larger than the Hispanic and African-American markets) The “shop until you drop” mentality of the 1990’s has been replaced with a more _____ approach. 1. save all you can 2. value is key 3. don’t shop at all 4. splurge regularly There are three trends in the natural environment that marketers are monitoring. These are _____, _____ and _____. 1. shortages of raw materials; increased legislation; increased consumerism 2. he green movement; shortages of raw materials; increased pollution 3. increased pollution; increased government intervention; shortages of raw materials 4. increased consumerism; increased population; increased ethical expectations The most dramatic force shaping business today is the _____ environment. 1. natural 2. technological 3. economic 4. political Which country leads the world in research and development spending? 1. United States 2. Japan 3. China 4. Germany Legislation affecting business has _____ over the years. 1. increased steadily 2. decreased slightly 3. remained steady . grown immensely This legislation prohibits Web sites or online services from collecting personal information from children without parental consent. 1. Wheeler-Lea Act 2. Child Protection Act 3. Children’s Internet Protection Act 4. Children’s Online Privacy Protection Act Which of the following is not one of the reasons business legislation is enacted? 1. To protect companies from each other 2. To protect companies from consumers 3. To protect consumers from unfair business practices 4. To protect the interests of society A person’s core values and beliefs are often erratic. . True 2. False (People’s core beliefs and values have a high degree of persistence. ) Which of the following is not one of the ways a society’s values are expressed? 1. people’s view of history 2. people’s view of society 3. people’s view of the universe 4. people’s view of others Recently, observers have noted a shift from a “me society” to a “we society. ” 1. True 2. False A woman who drives a hybrid car, consistently recycles, and buys “earth-friendly” products, is acting out her view of _____. 1. society 2. organizations 3. others 4. nature
A company has several options with regard to its marketing environment. A strong company takes a(n) _____ approach. 1. proactive 2. reactive 3. ingenuous 4. peaceful A company’s macroenvironment consists of all of the following except _____. 1. demographic forces 2. economic forces 3. competitive forces 4. none of the above UNIT4 Managers today often receive _____ information. 1. too much 2. too little 3. irrelevant 4. both 1 and 3 A _____ consists of the people, equipment and procedures to gather, sort, analyze and distribute accurate information to marketing decision makers. 1. marketing intelligence system . database mining system 3. marketing information system 4. marketing research system A marketing information system begins and ends with information from _____. 1. customers 2. databases 3. administrators 4. users The costs of obtaining, processing, storing and delivering information is relatively inexpensive. 1. True 2. False (the costs can increase quickly, forcing managers to decide if the information is worth the expense) Which of the following is a problem with using internal databases? 1. the information was collected for another reason 2. the information is in the wrong format . the information may be out of date 4. all of the above The goal of _____ is to improve strategic decision making, access and track competitors’ actions, and to provide early warning of opportunities and threats. 1. competitive research analysis 2. marketing intelligence 3. information technology 4. marketing segmentation A new source for competitor-supplied information is the Internet. 1. True 2. False What are the four steps (in order) of the marketing research process? 1. Define the problem, develop the research plan, implement the research plan, survey the participants. 2.
Define the problem, develop the research plan, implement the research plan, report the findings. 3. Define the problem, develop the research plan, survey the participants, report the findings. 4. Develop the research plan, implement the research plan, survey the participants, report the findings. What is the often the hardest step in the marketing research process? 1. defining the problem 2. developing the research plan 3. implementing the research plan 4. reporting the findings The objective of _____ is to gather preliminary information that will help define the problem and suggest reasons. 1. ausal research 2. competitive research 3. descriptive research 4. exploratory research _____ consists of information that already exists having been collected prior to the research plan. 1. Primary data 2. Secondary data 3. Exploratory data 4. Sales research Researchers usually start with _____ when developing the research plan. 1. primary data 2. secondary data 3. projection research 4. sales research The three types of research approaches a marketer may use are _____, _____ and _____. 1. surveys; observations; historic reviews 2. observations; surveys; databases 3. observations; experiments; surveys . experiments; databases; surveys The most widely used form of primary research and the one best suited for descriptive information is _____ 1. survey research 2. ethnographic research 3. observational research 4. experimental research Which type of research is best suited for gathering causal information? 1. survey research 2. ethnographic research 3. observational research 4. experimental research If a marketer wanted to collect large amounts of information at a low cost per respondent, she could use _____. 1. telephone interviews 2. mail questionnaires 3. focus groups 4. approach interviews
If a marketer wanted to collect information quickly and allow for flexible answers, he should use _____. 1. telephone interviews 2. mail questionnaires 3. focus groups 4. approach interviews Interviewer bias is often greater with _____. 1. telephone interviews 2. mail questionnaires 3. focus groups 4. online surveys If an interviewer wanted to reach the teen market, a fast and low cost method would be to use _____. 1. telephone interviews 2. mail questionnaires 3. focus groups 4. online surveys Which of the following is not one of the decisions a marketer must make when designing a sample? 1. who should be sampled 2. ow many people should be sampled 3. how the people in the sample should be chosen 4. all of the above are important sampling decisions One of the biggest challenges facing marketing researchers today is that some consumers believe collecting the research violates their privacy. 1. True 2. False UNIT5 Consumer behavior refers to the buying behavior of final customers. 1. True 2. False According to the textbook, consumer purchases are strongly influenced by cultural, social, personal and _____ characteristics. 1. psychological 2. emotional 3. physical 4. economic _____ is the most basic cause of a person’s wants and behavior. 1. Greed . Fear 3. Culture 4. Materialism Which of the following is not a value normally presented in the U. S. culture? 1. achievement 2. progress 3. material comfort 4. collectivism Groups of people with shared value systems based on common life experiences are called _____. 1. cohorts 2. generations 3. subcultures 4. affiliate groups The fastest-growing and most affluent subculture in the U. S. is the _____ population. 1. Hispanic 2. African American 3. Asian American 4. mature Social class is determined only by an individual’s income. 1. True 2. False (Income is only one of several factors used to determine a person’s social class.
Other factors include one’s occupation, education, wealth and type of residence. ) The _____ is the most important consumer buying organization in society. 1. school 2. family 3. government 4. business Which of the following is not a personal factor that influences a buyer’s decision? 1. beliefs 2. age 3. lifestyle 4. personality The VALS classification system measures a person’s _____. 1. income 2. occupation 3. lifestyle 4. personality A person’s _____ is his/her unique set of psychological characteristics that are relatively consistent and lasting. 1. self esteem 2. self concept 3. lifestyle 4. personality
According to _____, people are largely unconscious about the real psychological forces shaping their behavior. 1. Abraham Maslow 2. Bill Gates 3. Alfred Skinner 4. Sigmund Freud The process of selecting, organizing and interpreting information to form a meaningful picture of the world is referred to as _____. 1. perception 2. sensation 3. subliminal imprinting 4. rationalization When a person changes his/her behavior as a result of an experience, we say that _____ has occurred. 1. motivation 2. sensation 3. learning 4. perception If a person’s attitude reflects one of his/her core values, then the attitude is easy to change. . True 2. False (Attitudes are difficult to change because they fit into a pattern, and changing one attitude may require difficult adjustments in many others. ) A consumer purchasing fine furniture (which is expensive and for which a brand’s name matters) would probably result in _____ buying behavior. 1. dissonance-reducing 2. variety-seeking 3. complex 4. habitual _____ buying behavior is characterized by low consumer involvement but significant perceived brand differences. 1. Dissonance-reducing 2. Variety-seeking 3. Complex 4. Habitual The final step in the buying decision process is _____. 1. the purchase itself 2. ostpurchase behavior 3. choosing the product 4. getting the rebate What two factors come between the purchase intention and the purchase decision? 1. attitudes of others and unexpected situational factors 2. attitudes of others and lack of resources 3. unexpected situational factors and lack of resources 4. shortages and lack of resources (Note: lack of resources and shortages are examples of unexpected situational factors) What are the two largest populations in the adoption process? 1. innovators and early majority 2. early adopters and early majority 3. early majority and late majority 4. innovators and laggards
Which of the following does not influence a product’s rate of adoption? 1. relative advantage 2. compatibility 3. divisibility 4. perceptibility UNIT6 Business buyer behavior includes retailers and wholesalers who buy things with the purpose of making a profit. 1. True 2. False Business markets are _____ than consumer markets. 1. considerably larger 2. slightly larger 3. slightly smaller 4. no different The main differences between the business to business (B2B) market and the business to consumer (B2C) market include all of the following except _____. 1. the differences in market structure and demand 2. that people assume buying roles . the nature of the buying unit 4. the types of decisions and the decision process involved _____ is demand that ultimately comes from the demand for consumer goods. 1. Consumer demand 2. Marketing demand 3. Derived demand 4. End-user demand Which of the following is not a characteristic of the business market? 1. Business markets are more geographically concentrated. 2. Many business markets have elastic demand. 3. Business markets have more fluctuating demand. 4. Business marketers have far fewer but larger customers. In recent years, relationships between business customers and suppliers have grown more adversarial. . True 2. False (In recent years, business customers and suppliers have begun working together more closely as “partners,” not adversaries. ) Which of the following is not one of the major types of buying situations faced by business buyers? 1. straight rebuy 2. new task buy 3. online rebuy 4. modified rebuy Which of the business buyer purchase decisions offers the greatest opportunities and the greatest challenges for marketers? 1. straight rebuy 2. new task buy 3. modified rebuy 4. Both 2 and 3 The decision-making unit of a buying organization is called its _____. 1. buying center 2. purchasing department 3. ead office 4. marketing department The _____ role in the purchase decision process is to control the flow of information to others. 1. buyer’s 2. gatekeeper’s 3. influencer’s 4. decider’s A business buying center is a fixed and formally identified unit within the buying organization. 1. True 2. False (The buying center is not a fixed and formal unit in the business buying organization. It fluctuates as different people are needed to make different purchases. ) When competing products vary greatly, business buyers pay more attention to _____ factors. 1. economic 2. personal 3. organizational 4. interpersonal
Shortages in key materials is an important _____ factor. 1. organizational 2. individual 3. environmental 4. interpersonal 1. individual factors Individual factors are affected by all of the following except _____. 1. buyer’s attitude toward risk 2. buyer’s income 3. buyer’s buying style 4. all of the above affect individual factors Once a business buyer determines a problem or need, the next step in the business buying process is to _____. 1. begin a supplier search 2. solicit suppliers’ proposals 3. determine a general need description 4. make a purchase The 8-stage buyer decision model would most likely be used for a _____ buying decision. . straight rebuy 2. new task 3. online 4. modified rebuy E-procurement is being used by _____ of business buyers today. 1. 33% 2. 50% 3. 75% 4. 90% Which of the following is not one of the benefits of business to business e-procurement? 1. reduced transaction costs for suppliers 2. reduced transaction time between order and delivery 3. enhanced relationships between decades-old suppliers and customers 4. increased time for purchasers to focus on strategic issues The _____ consists of schools, hospitals, nursing homes and prisons that provide goods and services to people in their care. 1. government market . institutional market 3. non-profit market 4. organizational market Unlike business markets, government markets are closely watched by outside publics. 1. True 2. False UNIT7 What is the first step in target marketing? 1. market positioning 2. market segmentation 3. target marketing 4. none of the above Which of the following steps of target marketing takes into account competitors’ offerings to the market? 1. market positioning 2. market segmentation 3. market targeting 4. all of the above Which of the following is not a way to segment consumer markets? 1. geographic segmentation 2. psychographic segmentation 3. emographic segmentation 4. all of the above are ways to segment the consumer market Of the four main types of segmentation bases used to segment consumer markets, _____ is the most popular. 1. geographic segmentation 2. psychographic segmentation 3. demographic segmentation 4. behavioral segmentation A marketer selling different offerings in different communities would be using _____ segmentation. 1. geographic 2. psychographic 3. demographic 4. behavioral Marketers selling luxury cars often use income as a segmenting variable. Income is one component of _____ segmentation. 1. geographic 2. psychographic 3. demographic 4. ehavioral Social class, lifestyle and personality characteristics are three components of _____ segmentation. 1. geographic 2. psychographic 3. demographic 4. behavioral Many marketers believe that _____ variables are the best starting point for building market segments. 1. geographic 2. psychographic 3. demographic 4. behavioral Marketers usually limit their segmentation analysis to behavioral variables. 1. True 2. False (Marketers will use a variety of variables to identify smaller, better-defined, target groups. ) Marketers believe that buying behavior and _____ provide the best basis for segmenting business markets. . operating characteristics 2. situational factors 3. benefits sought 4. personal characteristics Segmenting international markets on the basis of geographic, economic, political and cultural factors is called intermarket segmentation. 1. True 2. False (Intermarket segmentation is forming segments of consumers in various countries who have similar needs and buying behavior. ) In order to be useful, market segments need to be which of the following? 1. differentiable 2. accessible 3. substantial 4. all of the above Which of the following structural factors is not related to a segment’s attractiveness? 1. he presence of strong competitors in the segment 2. the existence of potential substitute products 3. the lack of raw materials 4. a number of powerful suppliers When using a _____ marketing strategy, a firm decides to target several segments and designs separate offers for each. 1. differentiated 2. concentrated 3. mass 4. micro Micromarketing includes _____ and _____. 1. local marketing; niche marketing 2. local marketing; individual marketing 3. niche marketing; concentrated marketing 4. individual marketing; concentrated marketing This type of micromarketing is also known as one-to-one marketing or mass customization. . local marketing 2. tailored marketing 3. niche marketing 4. individual marketing If a beer manufacturer were to place a commercial on a TV show that was predominantly viewed by children, it could be considered using _____. 1. socially irresponsible targeting 2. socially responsible targeting 3. adult targeting 4. niche targeting A product’s _____ is the way the product is defined by consumers on important attributes relative to the competition. 1. image 2. equity 3. position 4. value A firm that practices _____ differentiation gains competitive advantage by the way it designs its channel coverage. 1. services . product 3. people 4. channel Which of the following is a powerful value proposition because it offers consumers a “good deal”? 1. more for more 2. more for the same 3. the same for less 4. less for much less UNIT8 A _____ is anything that can be offered to a market that might satisfy a need or a want. 1. position 2. product 3. promotion 4. none of the above Only tangible goods are considered products. 1. True 2. False (Products are more than tangible goods. They can be services, events, persons, places, ideas, or a mix of these. ) A visit to a doctor’s office is an example of a _____. 1. pure tangible good . pure intangible good 3. mixture of the two 4. none of the above The most basic level of a product is called its _____. 1. center 2. value 3. core benefit 4. customer Consumer products include convenience products, shopping products, specialty products, and _____ products. 1. unique 2. luxury 3. unsought 4. all of the above _____ products are purchased frequently, with little comparison or shopping effort. 1. Convenience 2. Shopping 3. Specialty 4. Unsought _____ products are typically associated with a higher price tag and available in selective locations. 1. Convenience 2. Shopping 3. Specialty 4. Unsought ____ products are those purchased for further processing or for use in conducting a business. 1. Industrial 2. Mechanical 3. Unsought 4. Physical The distinction between a consumer product and an industrial product is the purpose for which it is bought. 1. True 2. False The design, implementation, and control of programs seeking to increase the acceptability of a social idea, cause, or practice among a target group is called _____ marketing. 1. cause 2. social 3. image 4. non-profit The two dimensions of product quality are _____ and _____. 1. value; features 2. style; design 3. level; consistency 4. style; value
A(n) _____ is a name, term, sign, symbol or combination of these intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors. 1. product 2. position 3. image 4. brand Branding is not as popular today as it was twenty years ago. 1. True 2. False (Branding is so strong today that nearly everything is branded. ) The designing and producing of the container or wrapper for a product is called _____. 1. packaging 2. labeling 3. manufacturing 4. industrial design A company can lengthen its product line by _____ it or by _____ it. 1. modifying; stretching 2. tretching; switching 3. filling; stretching 4. brushing; combing Which of the following is not a dimension in a company’s product mix? 1. width 2. depth 3. consistency 4. length A good brand name should do which of the following? 1. Suggest something about the brand’s benefits. 2. Be easy to translate into other languages. 3. Be capable of registration and legal protection. 4. all of the above A _____ brand is created by a reseller of a product or service. 1. private 2. public 3. manufacturer’s 4. licensed Purina Tuna would be a poor attempt at a _____. 1. line extension 2. brand extension 3. multibrand 4. new brand
Which of the following is not a special characteristic of service? 1. tangibility 2. inseparability 3. variability 4. perishability _____ marketing happens when a firm trains and effectively motivates its customer contact staff and its support staff to work as a team in order to provide customer satisfaction. 1. Internal 2. Interactive 3. Impression 4. Servic UNIT9 New product development is risky. _____ percent of new products fail within the first 2 years. 1. Fifty 2. Sixty-five 3. Eighty 4. Ninety Which of the following is not a reason that a new product might fail? 1. The product is priced too high. 2. The product is poorly designed. . The estimated market for the product is too large. 4. All of the above are reasons that a new product might fail. The systematic search for new-product ideas is called _____. 1. idea generation 2. idea search 3. idea screening 4. concept development Which of the following is not a good external source of ideas? 1. customers 2. the R&D department 3. suppliers 4. competitors The purpose of idea screening is to reduce the number of new ideas. 1. True 2. False A _____ is a detailed version of a new product idea stated in meaningful consumer terms. 1. product concept 2. product idea 3. product image 4. product license
Once the new product ideas have been screened, the next step in the new product development process is _____. 1. marketing strategy 2. concept development and testing 3. product development 4. none of the above _____ is a review of the sales, costs, and profit projections for a new product to find out whether these factors satisfy the company’s objectives. 1. Market strategy development 2. Product development 3. Business analysis 4. Forecasting When the product idea moves from a description or mock-up of a product, to an actual physical product, marketers say we are in the _____ stage. 1. market strategy 2. product development . business analysis 4. forecasting Test marketing is the stage at which the product and marketing program are introduced into more realistic settings. 1. True 2. False Which of the following is not a form of test marketing? 1. standard test markets 2. controlled test markets 3. simulated test markets 4. perceptual test markets Some of the drawbacks of _____ are that they can be very costly, and they can give competitors a chance to look at the company’s new ideas. 1. standard test markets 2. controlled test markets 3. simulated test markets 4. Internet test markets Introducing a new product to the marketplace is called _____. . new product penetration 2. commercialization 3. consumer initiation 4. product development The first thing a company must decide when launching a new product is _____. 1. who to launch it to 2. where to launch it 3. when to launch it 4. who its advertising agency will be When a company uses sequential product development, the various company departments work together closely and overlap the steps in the product development process in order to save time and increase effectiveness. 1. True 2. False (The definition above is for a company using simultaneous product development, not sequential product development. Which of the following is not a stage in the product life cycle (PLC)? 1. product development 2. growth 3. maturity 4. All of the above are stages in the PLC. Which stage of the product life cycle (PLC) is characterized by slow growth because the product has achieved acceptance by most of its potential buyers? 1. introduction stage 2. growth stage 3. maturity stage 4. decline stage Which of the following tends to have the longest life cycle? 1. a product class 2. a product form 3. a product brand 4. All of the above have similar life cycles. _____ tend to grow slowly, remain popular for a while, and then decline slowly. . Fads 2. Styles 3. Fashions 4. Designs In the _____, sales start climbing quickly and competition often enters the market. 1. introduction stage 2. growth stage 3. maturity stage 4. decline stage UNIT10 _____ is the sum of values that consumers exchange for the benefits of having or using a product or service. 1. Place 2. Purchase 3. Price 4. Premium The Internet is potentially changing pricing practices from _____ to _____. 1. fixed; dynamic 2. dynamic; fixed 3. value; premium 4. external; internal eBay. com is an example of a company that uses _____ pricing. 1. fixed 2. dynamic 3. prestige 4. value
Which of the elements in the marketing mix produce revenue? 1. promotion 2. product 3. price 4. all of the above One problem with pricing is that managers are often too quick to reduce their price, rather than to convince their buyers that their product is worth the higher cost. 1. True 2. False Which of the following is not an internal factor affecting pricing? 1. marketing objectives 2. marketing mix strategy 3. costs 4. competition A product that is high in quality and available in a limited number of outlets will probably have a _____. 1. high price 2. low price 3. discounted price 4. none of the above
Target costing involves designing a new product, determining its cost, and then asking, “Can we sell it for that? ” 1. True 2. False (Target costing starts with setting an ideal price based on customer considerations then targets the costs to see that the price is met. ) _____ costs do not vary with production or sales level. 1. Materials 2. Fixed 3. Total 4. Value The _____ shows the drop in average costs with accumulated production experience. 1. learning curve 2. demand curve 3. cost curve 4. all of the above Which type of market consists of many buyers and sellers who trade over a range of prices rather than a single market price? . pure competition 2. monopolistic competition 3. oligopolistic competition 4. pure monopoly Which type of market has few sellers who are very sensitive to each other’s prices? 1. pure competition 2. monopolistic competition 3. oligopolistic competition 4. pure monopoly A(n) _____ curve shows the number of units the market will buy in a given time period at different prices that might be charged. 1. demand 2. elastic 3. experience 4. reverse If demand changes greatly with a small change in price, we say the demand is _____. 1. inelastic 2. elastic 3. sensitive 4. reversed an external consideration when setting prices? 1. costs 2. he government 3. social concerns 4. resellers The simplest pricing method is _____. 1. break-even pricing 2. cost-plus pricing 3. value-based pricing 4. competition-based pricing If a reseller buys a product from a manufacturer for $20 and wants to mark it up 50%, what will the new price be? 1. $30 2. $40 (Markup price = unit price/(1-desired return on sales) 3. $25 4. none of the above What is the break-even volume for a company with fixed costs of $50k, variable costs of $20 and a price of $30/unit? 1. 500 2. 1000 3. 5000 (BE volume = FC/(Price???VC) 4. 2500 Value-based pricing uses the buyer’s perception of value to set prices. . True 2. False According to the text, competition-based pricing is popular in _______ markets. 1. pure competition 2. pure monopoly 3. monopolistic competition 4. oligopolistic competition UNIT11 Companies have two choices when setting prices for a product during the introductory stage. These choices are _____ and _____. 1. market-skimming pricing; fixed pricing 2. market-skimming pricing; value pricing 3. value pricing; cost pricing 4. market-penetration pricing; market-skimming pricing In order for market-penetration pricing to work, which of the following market conditions must be met? . The market must not be price sensitive. 2. Production and distribution costs must stay the same as volume increases. 3. The market must be highly price sensitive. 4. none of the above Setting price steps between product lines is called _____. 1. by-product pricing 2. product line pricing 3. product-step pricing 4. price-skimming pricing When a company offers to sell optional or accessory products along with its main product, this practice is referred to as _____. 1. by-product pricing 2. product line pricing 3. optional-product pricing 4. price-skimming pricing
Because of _____ pricing, Sony’s PlayStation games generate more than a third of the company’s profits. 1. by-product 2. product line 3. optional-product 4. captive-product When a theater sells season tickets for less than the cost of the individual seats, they are using _____ pricing. 1. by-product 2. bundle 3. discount 4. prestige A reduction given to buyers who pay their bills promptly, such as “2/10, net 30,” is called a _____ discount. 1. cash 2. prepay 3. trade 4. buyer Marketers who purchase large quantities of products at the same time may receive a _____ discount. 1. cash 2. reseller . trade 4. quantity _____ discounts are often given to retailers in order to encourage early ordering in anticipation of heavy selling seasons. 1. Functional 2. Reseller 3. Seasonal 4. Quantity Which of the following is not an example of segmented pricing? 1. customer segment pricing 2. yield management pricing 3. location pricing 4. sales promotion pricing Yield management pricing is often practiced by which of the following? 1. airlines 2. restaurants 3. hotels 4. all of the above Reference prices are prices that buyers carry around in their minds and refer to when looking at a product. . True 2. False For most purchases, consumers don’t have all the skills or information they need to figure out if they are paying a good price. 1. True 2. False Temporarily pricing products below the list price or even below cost is called _____ pricing. 1. blue light 2. retail 3. promotional 4. psychological A drawback of promotional pricing is that it may create “deal-prone” consumers. 1. True 2. False A geographical pricing strategy that charges buyers the same price plus freight regardless of location is called _____ pricing. 1. FOB-origin 2. uniform-delivered 3. zone 4. asing-point A company may set up more than one basing point in hopes of creating more _____. 1. reliability 2. cost reductions 3. flexibility 4. factors of scale _____ pricing is used for market penetration and to hold on to increasingly competitive markets. 1. FOB-origin 2. Uniform-delivered 3. Basing-point 4. Freight-absorption Which of the following is a reason for a firm to consider a price cut? 1. The firm has excess capacity. 2. The firm has falling market share due to price competition. 3. The firm wants to dominate the market through lower costs. 4. all of the above
The _____ seeks to prevent unfair price discrimination by ensuring that sellers offer the same price to customers at a given level of trade. 1. Anderson-Lieberman Act 2. Robinson-Patman Act 3. Sherman Act 4. Clayton Act UNIT12 A(n) _____ is made up of the company, suppliers, distributors and, ultimately, customers who “partner” with each other to improve the performance of the entire system. 1. supply chain 2. dealer network 3. value delivery network 4. integrated marketing system The downstream side of the value delivery network, often consisting of wholesalers and retailers, is called _____. 1. the supply chain . the dealer network 3. marketing channels 4. the integrated marketing system A _____ is the set of interdependent organizations involved in the process of making a product or service available for use or consumption by the consumer or business user. 1. distribution channel 2. dealer network 3. value delivery network 4. supply chain Distribution channel decisions often involve short-term commitments to other firms. 1. True 2. False (Distribution channel decisions often involve long-term commitments to other firms. ) Which of the following is a key function performed by marketing channel members? 1. matching . negotiation 3. promotion 4. all of the above When a marketing channel member shapes or fits the offer to the buyer’s needs, including grading, assembling, and packaging the product, it is performing the _____ function. 1. contact 2. matching 3. physical distribution 4. risk taking Which of the following channel levels contains no marketing intermediaries? 1. direct marketing channel 2. indirect marketing channel 3. hybrid marketing channel 4. vertical marketing channel Channel conflict between wholesalers and retailers is a form of _____. 1. indirect conflict 2. hybrid conflict 3. vertical conflict 4. eseller conflict A conventional distribution system consists of producers, wholesalers, and retailers acting as a unified system. 1. True 2. False (A conventional distribution system is made up of independent producers, wholesalers, and retailers trying to maximize their individual profits. ) Which of the following is not a type of vertical marketing system (VMS)? 1. conventional 2. corporate 3. contractual 4. administered Which vertical marketing system (VMS) integrates successive stages of production and distribution under single ownership? 1. conventional VMS 2. corporate VMS 3. contractual VMS 4. administered VMS
A franchise organization is a form of which vertical marketing system? 1. hybrid VMS 2. corporate VMS 3. contractual VMS 4. administered VMS Banks in grocery stores are examples of which type of marketing system? 1. hybrid marketing system 2. horizontal marketing system 3. direct marketing system 4. administered marketing system Because Pottery Barn offers its customers a variety of ways (PotteryBarn. com, catalogs and retail stores) to purchase its products, we say it is using a _____ . 1. hybrid marketing system 2. horizontal marketing system 3. direct marketing system 4. administered marketing system
The term disintermediation refers to the displacement of traditional resellers from a marketing channel by radical new types of intermediaries. 1. True 2. False Producers of convenience products typically use _____ distribution. 1. intensive 2. selective 3. direct 4. exclusive Producers of high-priced, luxury products typically use _____ distribution. 1. intensive 2. selective 3. direct 4. exclusive _____ involve(s) planning, implementing and controlling the physical flow of goods, services, and related information from points of origin to points of consumption in order to meet consumer requirements at a profit. . Value chain management 2. Distribution networks 3. Marketing logistics 4. Outsourcing The goal of the marketing logistics should be to _____. 1. get the product to the customer as quickly as possible 2. increase the market share of the firm 3. provide a superior level of customer service regardless of cost 4. provide a targeted level of customer service at the least cost Which of the following is not a major logistics function listed in your text? 1. financing 2. logistics information management 3. transportation 4. inventory control UNIT13 ____ consists of all of the activities involved in selling products or services directly to the final customer. 1. Retailing 2. Reselling 3. Wholesaling 4. Marketing Retail stores can be classified in which of the following ways? 1. how they are organized 2. the amount of service they offer 3. the prices they charge 4. all of the above Nordstrom would be considered a _____ retailer because its customers like to be “waited on. ” 1. specialty-service 2. limited-service 3. full-service 4. elite-service The most frequently “shopped in” type of retail stores are _____ stores. . specialty 2. department 3. supermarket 4. superstore Which of the following retail stores carry a limited line of high-turnover goods like soda, candy, and newspapers? 1. specialty stores 2. convenience stores 3. superstores 4. discount stores Home Depot and Lowe’s are giant specialty stores which are known as _____. 1. superstores 2. category killers 3. monster stores 4. all of the above In addition to classifying stores based on their level of service, stores are also classified by their _____. 1. relative prices 2. locations 3. promotional campaigns 4. distribution channels
Which of the following is not an example of an off-price retailer? 1. TJ Maxx 2. Levi Strauss outlet stores 3. Costco 4. Petco One of the hottest growth areas in retailing are _____. 1. supermarkets 2. department stores 3. factory outlet malls 4. convenience stores Once considered upstarts among independent businesses, franchises now command _____ of all retail sales in the United States. 1. 75% 2. 63% 3. 50% 4. 35% The three major product variables retailers must decide on are _____, _____, and _____. 1. product line; product width; product breadth 2. service mix; product assortment; store atmosphere . product mix; product depth; product assortment 4. product assortment; store atmosphere; price standards Most retailers either seek _____ markups on low volumes or _____ markups on high volumes. 1. low; high 2. high; low 3. moderate; high 4. none of the above According to the text, the three critical factors in retailing success are _____. 1. location, location, and location 2. price, service, and store design 3. price, service, and convenience 4. service, style, and design The largest and most dramatic shopping center, with between 40 and 200 stores, is called a _____ shopping center. 1. community . neighborhood 3. regional 4. all of the above Strip malls generally contain between _____ stores. 1. 5 and 15 2. 10 and 20 3. 20 and 40 4. 2 and 5 The future of malls will be about creating places to be rather than places to buy. 1. True 2. False The _____ states that new types of retailers usually begin as low-margin, low-price, low-status operations and eventually evolve into the higher priced, higher service organizations they replaced. 1. law of retailing 2. wheel of retailing 3. reseller paradigm 4. retailing life cycle (RLC) The newest form of nonstore retailing is _____. 1. intranet sales 2. atalog retailing 3. mail-order retailing 4. online retailing Which of the following is not a trend in retailing today? 1. Retail technology is growing in importance. 2. The balance of power is shifting back to the manufacturers. 3. Today’s retailers are increasingly selling the same product to the same customers at the same price. 4. Retail life cycles are shortening. The largest single group of wholesalers are called _____. 1. dealers 2. merchant wholesalers 3. brokers 4. agents Unlike retailers and manufacturers, wholesalers don’t choose their target markets or positioning strategies. 1. True 2.
False (Like retailers and manufacturers, wholesalers must carefully choose their target markets and positioning strategies. ) Which of the following is not a trend in wholesaling today? 1. Due to slow growth in domestic markets, many wholesalers are going global. 2. Extremely price sensitive consumers are the biggest challenge faced by wholesalers today. 3. The distinction between large and small wholesalers is growing. 4. Wholesalers will need to continue to increase the services they provide. UNIT14 Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor is called _____. 1. dvertising 2. public relations 3. sales promotion 4. direct marketing Which of the following includes point-of-purchase displays, premiums, discounts, and demonstrations? 1. advertising 2. public relations 3. sales promotion 4. direct marketing Besides fragmented mass markets, what other factor is changing how marketing communication works today? 1. decreasing media choices 2. increasing advertising costs 3. increasing use of information technology 4. decreasing choices in marcomm agencies Promotion is shifting away from segmented marketing toward more mass marketing. 1. True 2. False (Promotion is shifting toward more segmented marketing. _____ involves identifying the target audience and shaping a well-coordinated promotional program to obtain the desired audience response. 1. Advertising 2. Promotion 3. Integrated marketing communication 4. Direct marketing Which of the following are the two major communication tools of the communications process? 1. the senders and the receivers 2. the message and the media 3. encoding and feedback 4. the media and encoding The first step in effective communication is to _____. 1. determine the communication objectives 2. choose a spokesperson 3. identify the target audience 4. buy media space
The first buyer-readiness stage is _____. 1. awareness 2. knowledge 3. liking 4. conviction Which of the following is not a type of message appeal frequently used by marketers? 1. moral appeals 2. emotional appeals 3. rational appeals 4. all of the above “Listerine tastes bad twice a day,” is an example of what type of message? 1. conclusion drawing message 2. one-sided message 3. two-sided message 4. none of the above W What are the two broad communication channels marketers must choose between? 1. print and broadcast 2. personal and non-personal 3. advertising and public relations 4. direct mail and the Internet
Personal communication about a product between target buyers and family members, neighbors, friends, and associates is called _____. 1. buzz marketing 2. public relations 3. word of mouth 4. all of the above The final step in the communication model involves _____. 1. selling the product 2. collecting feedback 3. filtering out noise 4. buying media Which method of setting the promotional budget is the most logical? 1. affordable method 2. objective-and-task method 3. competitive-parity method 4. percentage-of-sales method A company’s most expensive promotional tool is _____. 1. advertising 2. personal selling 3. ales promotion 4. direct mail If a company wanted to reach a geographically dispersed population, frequently, and at a low cost per exposure, then the company should use _____. 1. advertising 2. personal selling 3. sales promotion 4. public relations Which of the following is a distinct characteristic of direct marketing? 1. nonpublic 2. interactive 3. customized 4. all of the above If a company wants to reach customers who avoid salespeople and advertisements, then it should try using _____. 1. direct marketing 2. personal selling 3. sales promotion 4. public relations Most large companies use only push strategies. 1.
True 2. False (Most large companies use a combination of push and pull strategies. ) A product in the introductory stage of the PLC should be promoted using _____ to help build awareness among the target audience. 1. advertising and public relations 2. personal selling and direct marketing 3. sales promotion and advertising 4. public relations and direct marketing UNIT15 Which of the following is not an advertising objective? 1. to persuade 2. to inform 3. to remind 4. All of the above are advertising objectives. Which type of advertising is heavily used when introducing a new product category? 1. persuasive advertising . informative advertising 3. reminder advertising 4. none of the above According to the text, a brand’s advertising budget often depends on _____. 1. how persuasive the brand manager is 2. the brand’s stage in the PLC 3. how much revenue the brand produced in the past 4. the company’s sales revenue for the past quarter Creating advertising messages and selecting advertising media are two major elements of _____. 1. advertising planning 2. advertising design 3. advertising strategy 4. advertising objectives The general message to be communicated to consumers is called the _____. 1. storyline 2. ad appeal 3. essage strategy 4. slogan Advertising appeals need to be which of the following? 1. meaningful 2. believable 3. distinctive 4. all of the above This type of ad execution style shows one or more “typical” people using the product in a normal setting. 1. slice of life 2. word of mouth 3. lifestyle 4. testimonial This type of ad execution style creates a character that represents the product. 1. personality symbol 2. characterization 3. fantasy 4. image ____ is a measure of the percentage of people in the target market who are exposed to the ad campaign during a given time period. 1. Frequency 2. Scope 3. Reach 4. Impact
Media buyers look at _____ when making their media choices. 1. the media habits of their target market 2. the cost of the media 3. the nature of the product 4. all of the above Specific media within each general media type are called _____. 1. media vehicles 2. media forms 3. media channels 4. none of the above What is the main drawback of standardized international ad campaigns? 1. They produce higher advertising costs. 2. They allow for greater global coordination. 3. They ignore the differences in cultures among countries. 4. They present a consistent message globally. Sales promotions are mainly targeted to final buyers. . True 2. False (Sales promotions may also be targeted to channel members, business customers, or members of the sales staff. ) In an average consumer packaged-goods company, sales promotion counts for _____ of all marketing expenditures. 1. 25% 2. 50% 3. 66% 4. over 75% Promotion clutter is one of the biggest challenges to sales promotion managers today. 1. True 2. False Of the various forms of consumer sales promotions, _____ are the most effective and most expensive. 1. coupons 2. rebates 3. samples 4. contests Manufacturers direct more sales promotions toward retailers and wholesalers than to consumers. 1. True . False Press releases, public affairs, and lobbying are all forms of _____. 1. advertising 2. public relations 3. direct marketing 4. sales promotion Which of the following is true of public relations? 1. One of the benefits of public relations is that there are no costs involved. 2. Public relations only helps promote companies, not brands. 3. Public relations is often overlooked as an effective tool by marketing departments. 4. Public relations is declining as an effective promotional tool. Which of the following is not a major tool of public relations? 1. press releases 2. special events 3. speeches 4. contests