a.
It complements advertising by yielding faster sales responses.
b.
It is a long-run tool used by marketers.
c.
It is allotted less marketing money than advertising.
d.
It uses personal selling, advertising, and public relations
Answer: a.
It complements advertising by yielding faster sales responses.
a.
Personal selling
b.
Social media
c.
Public relations
d.
Sales promotion
Answer: b.
Social media
a.
The type of buying decision does not affect the promotional mix of an organization.
b.
Print advertising may be used for high-involvement purchase decisions.
c.
Consumers are the not involved in complex buying decisions.
d.
Personal selling is most effective in helping consumers in routine decisions.
Answer: b.
Print advertising may be used for high-involvement purchase decisions.
a.
Persuasive promotion
b.
Connective promotion
c.
Reminder promotion
d.
Informative promotion
Answer: d.
Informative promotion
a.
Proliferation of thousands of media choices beyond traditional television has made promotion easier.
b.
Marketers have increased their advertisement spending for promotional techniques that generate gradual sales responses.
c.
More selectively segmented markets have replaced the traditional broad market groups.
d.
Marketers have discontinued the use of online advertising due to its lack of measurability
Answer: c.
More selectively segmented markets have replaced the traditional broad market groups.
a.
listen to the target market in order to develop appropriate messages.
b.
promote the purchase of goods and services.
c.
persuade the target market to buy a company's products.
d.
inform and remind the target market of new and existing products.
Answer: a.
listen to the target market in order to develop appropriate messages.
a.
sales promotion can be reduced
b.
advertising and public relations play no role in the promotional mix
c.
mass advertising is used rather than target marketing
d.
early trial of the product is encouraged
Answer: a.
sales promotion can be reduced
a.
to persuade a buyer to accept a point of view.
b.
to use social media sites to talk with large audiences.
c.
to increase the cost of the product that is being sold.
d.
to make a one-time sale rather than a long-term relationship.
Answer: a.
to persuade a buyer to accept a point of view
a.
entails indirect, one-way communication.
b.
meets the needs of a target market.
c.
does not use advertising.
d.
works for all products of a company.
Answer: b.
meets the needs of a target market
a.
AIDA model
b.
SWOT matrix
c.
BCG matrix
d.
IMC model
Answer: a.
AIDA model
a.
Informative promotion
b.
Persuasive promotion
c.
Connective promotion
d.
Reminder promotion
Answer: b.
Persuasive promotion
a.
Communication
b.
Research
c.
Analysis
d.
Evaluation
Answer: a.
Communication
a.
to inform the target audience that the product is available.
b.
to limit personal selling at the retail level.
c.
to target advertising to specific potential buyers.
d.
to reduce the costs incurred in mass advertising.
Answer: a.
to inform the target audience that the product is available.
a.
Selling products to wholesalers
b.
Offering heavy sampling and introductory consumer advertising
c.
Offering aggressive discounts for retailers to buy its products
d.
Using trade advertising
Answer: b.
Offering heavy sampling and introductory consumer advertising
a.
increasing the cost of goods sold.
b.
reducing return on assets or equity.
c.
not using a retailing mix.
d.
reducing costs of goods sold.
Answer: d.
reducing costs of goods sold.
a.
wholesaler
b.
consumer
c.
broker
d.
franchiso
Answer: d.
franchiso
a.
Cloud computing
b.
Retail channel omnification
c.
Click-and-collect
d.
Shopper marketing
Answer: d.
Shopper marketing
a.
eliminate the need of segmenting a market.
b.
increase overhead costs.
c.
eliminate the need of new advertising campaigns.
d.
increase the sales of a specific item.
Answer: d.
increase the sales of a specific item.
a.
It enables consumers to make their purchases online and pick up their orders from physical stores.
b.
It employs outbound and inbound telephone contacts to sell directly to customers.
c.
It allows customers to shop over the Internet and have items delivered directly to their door.
d.
It requires representatives to sell products door-to-door, in offices, or at in-home sales parties.
Answer: a.
It enables consumers to make their purchases online and pick up their orders from physical stores.
a.
Shopper marketing
b.
Big data analysis
c.
Shopper analytics
d.
Market-basket analysis
Answer: d.
Market-basket analysis
a.
They can be eliminated by successful market segmentation.
b.
If handled effectively, they will result in customer loyalty.
c.
Retailers cannot recover from service failures.
d.
They can be solved by cancelling return policies.
Answer: b.
If handled effectively, they will result in customer loyalty.
a.
Product development
b.
Retailing
c.
Production
d.
Manufacturing
Answer: b.
Retailing
a.
Automatic vending
b.
Telemarketing
c.
E-tailing
d.
Direct retailin
Answer: a.
Automatic vending
a.
Benefit selling
b.
Suggestion selling
c.
Co-marketing
d.
Shopper marketing
Answer: b.
Suggestion selling
a.
It benefits retailers as customers must enter their stores in order to claim their purchases.
b.
It allows customers to order products online and pick their orders from stores.
c.
It benefits customers as they can shop from the comfort of their homes.
d.
It enables retailers to offer competitive prices across their various outlets.
Answer: d.
It enables retailers to offer competitive prices across their various outlets.
a.
It creates separate distribution systems for different distribution channels.
b.
It involves treating each distribution channel as an entirely different business.
c.
It combines different distribution channels into a single, unified system for saving costs.
d.
It makes each distribution channel accountable for its own dedicated inventory.
Answer: c.
It combines different distribution channels into a single, unified system for saving costs.
a.
They have the widest product assortment among other retail establishments.
b.
They offer virtually no service to customers.
c.
They carry narrow product lines that are considerably deep.
d.
They use low prices and discounts to lure shoppers
Answer: c.
They carry narrow product lines that are considerably deep
a.
They provide contact efficiency.
b.
Merchant wholesalers create form utility.
c.
Agents and brokers take ownership of goods in the marketing channel.
d.
They provide generalization of labor.
Answer: a.
They provide contact efficiency.
a.
It cannot be used in industries such as auto parts, biomedical, and fast food.
b.
It will eliminate the need for transportation of finished goods to distribution centers and retailers.
c.
It will lead to mass production of standardized goods than custom products.
d.
It is expected to have a negative impact on businesses' carbon footprints and the environment at large.
Answer: b.
It will eliminate the need for transportation of finished goods to distribution centers and retailers.
a.
reduce coordination between multiple companies.
b.
reduce the time between order and customer receipt.
c.
increase inventory levels of the firm.
d.
manage volumes of returned product efficiently.
Answer: b.
reduce the time between order and customer receipt.
a.
It enables supply chain managers to respond quickly to sudden changes in supply or demand.
b.
It reflects a completely employee-driven management philosophy.
c.
It gives assembly line employees total control of materials, processes, money, and finished products.
d.
It enables supply chain managers to focus on pushing products down the marketing channels to consumers.
Answer: a.
It enables supply chain managers to respond quickly to sudden changes in supply or demand.
a.
take title to the products they sell.
b.
lower average production costs.
c.
use "push" strategy.
d.
raise profit margins for independent middlemen.
Answer: a.
take title to the products they sell.
a.
lengthen the order-to-cash cycle.
b.
locate stocks at fewer plants and distribution centers.
c.
focus investment on their logistical functions rather than on core business.
d.
eliminate the need of using a third-party logistics company.
Answer: b.
locate stocks at fewer plants and distribution centers.
a.
supply chain agility
b.
demand chain orientation
c.
supply chain analytics
d.
demand-supply integration
Answer: d.
demand-supply integration
a.
Narrow distribution
b.
Selective distribution
c.
Exclusive distribution
d.
Intensive distribution
Answer: d.
Intensive distribution
a.
It is commonly used for low-cost items that are frequently purchased, such as candy, cigarettes, and magazines.
b.
It involves passing ownership directly from the producer to the ultimate consumer.
c.
It is most common when the retailer is large and can buy in large quantities directly from the manufacturer.
d.
It uses agents and brokers to procure products from manufacturers.
Answer: c.
It is most common when the retailer is large and can buy in large quantities directly from the manufacturer.
a.
They spend less time than their competitors on activities that create direct customer benefits.
b.
They use a "pull" strategy instead of a "push" strategy to market their products.
c.
They partner closely with suppliers and service providers to reduce customer wait times for products.
d.
They increase the complexity of the supply chain.
Answer: c.
They partner closely with suppliers and service providers to reduce customer wait times for products.
a.
They are not better off financially in the long run.
b.
They lack the support of top managers.
c.
They work against their partners when seeking to achieve goals.
d.
They are willing to accept short-term risks on behalf of others.
Answer: d.
They are willing to accept short-term risks on behalf of others.
a.
They are critical to the satisfaction of both company and societal interests.
b.
They increase the negative impacts of potentially hazardous supply chain situations.
c.
They lack power to solve future national and global supply chain problems.
d.
They are formed when the magnitude of a supply chain dilemma is of little importance to a company.
Answer: a.
They are critical to the satisfaction of both company and societal interests.
a.
of a decrease in the length and risk of supply chains globally.
b.
it helps reduce transportation and warehousing costs.
c.
of increasing demand for imported products worldwide.
d.
it helps standardize the quality of the products produced.
Answer: c.
of increasing demand for imported products worldwide.
a.
They incur large incremental expenditure on company assets.
b.
They report reduced logistical flexibility.
c.
They have limited interactions with their suppliers.
d.
They report lower warehousing costs.
Answer: d.
They report lower warehousing costs.
a.
It enables a company to relocate outsourced operations closer to home.
b.
It reduces the fuel costs spent on transporting goods.
c.
It reduces supply chain risks for a company.
d.
It decreases labor costs incurred by a company.
Answer: d.
It decreases labor costs incurred by a company.
a.
supply chain analytics
b.
supply chain agility
c.
supply chain integration
d.
supply chain orientation
Answer: d.
supply chain orientation
a.
are free from problems such as corporate culture.
b.
follow an internal supply chain integration.
c.
do not share responsibility with the suppliers for satisfying customer requirements.
d.
encounter problems such as information hoarding and trust issues.
Answer: d.
encounter problems such as information hoarding and trust issues.
a.
It unifies transportation and distribution systems of different channels.
b.
It becomes difficult to find the channel responsible for discrepancies in the inventory.
c.
It creates a main channel which acts as the sale and profit center.
d.
Customers are offered information, goods, services, and/or support through one or more synchronized channels.
Answer: d.
Customers are offered information, goods, services, and/or support through one or more synchronized channels.
a.
enables companies to act as multiple individual units.
b.
includes ways in which companies collaborate on activities or projects.
c.
makes performance assessments transparent and measurable across the borders of different firms.
d.
is a type of internal integration sought by firms interested in providing top-level service to customers
Answer: b.
includes ways in which companies collaborate on activities or projects.
a.
businesses focus on partnering with members of the supply chain to enhance customer value.
b.
supply chain management reflects a completely employee-driven management philosophy.
c.
standardized products are "pushed" down through marketing channels to consumers.
d.
companies that focus on supply chain management commonly report high inventory costs.
Answer: a.
businesses focus on partnering with members of the supply chain to enhance customer value.
a.
It creates customer-focused plans of action prior to actual purchases being made.
b.
It eases the pressure on the production process of a company.
c.
It increases costs as it involves serving multiple types of customers who have variable wants and needs.
d.
It focuses on providing quick positive response to negative customer feedback.
Answer: a.
It creates customer-focused plans of action prior to actual purchases being made.
a.
They aid upstream producers in marketing to producers.
b.
They increase a brand's coverage in the market.
c.
They help differentiate a firm's product from the competition.
d.
They lead to competition between distribution channels through cannibalization.
Answer: c.
They help differentiate a firm's product from the competition.
a.
reverse channel
b.
nontraditional channel
c.
digital channel
d.
gray marketing channel
Answer: a.
reverse channel
a.
contacting prospective buyers to make them aware of existing products.
b.
sorting, accumulation, consolidation of products.
c.
explaining about a product's features, advantages, and benefits.
d.
researching about channel members and consumers
Answer: b.
sorting, accumulation, consolidation of products.
a.
through specialization and division of labor.
b.
by providing form utility to producers.
c.
by aiding downstream producers to consumers.
d.
through minimum interaction with suppliers.
Answer: a.
through specialization and division of labor.
a.
Intermediaries
b.
Laggards
c.
Innovators
d.
Early adopters
Answer: a.
Intermediaries
a.
It enables suppliers and business units to operate with limited or no interaction.
b.
It introduces features and cost-cutting measures into final products.
c.
It provides structural support for developing and maintaining relationships with suppliers.
d.
It enables firms to act as leaders in protecting the natural environment.
Answer: c.
It provides structural support for developing and maintaining relationships with suppliers.
a.
Form utility
b.
Place utility
c.
Exchange utility
d.
Time utility
Answer: a.
Form utility
a.
It leads to stagnation in the company's technology or knowledge.
b.
It increases labor costs and materials costs for companies.
c.
It exposes companies to risks associated with geopolitical conflict.
d.
It restricts companies from availing trade tariff.
Answer: c.
It exposes companies to risks associated with geopolitical conflict.
a.
It is the time gap between purchase of raw materials and manufacturing of the final product.
b.
It is the amount of time between the cancellation of an order by a customer and the approval of cancellation.
c.
It is the amount of time between order placement and receipt of the customer's payment following order shipment.
d.
It is the time delay between the packaging of an order and the consumption of the product.
Answer: c.
It is the amount of time between order placement and receipt of the customer's payment following order shipment.
a.
They facilitate exchanges of ownership between buyers and sellers.
b.
They provide time and place utility to agents and brokers.
c.
They provide contact efficiency for consumers.
d.
They facilitate the movement of products from the manufacturer to producers and resellers.
Answer: c.
They provide contact efficiency for consumers.
a.
responsiveness
b.
heterogeneity
c.
tangibility
d.
assurance
Answer: d.
assurance
a.
Having too many outlets to distribute products may boost costs unnecessarily.
b.
The location of a service does not influence the distribution strategy of a time-dependent service provider.
c.
Since services are intangible, many service firms choose indirect distribution strategy.
d.
The intensity of distribution should exceed the target market's needs and preferences.
Answer: a.
Having too many outlets to distribute products may boost costs unnecessarily.
a.
Heterogeneity
b.
Perishability
c.
Intangibility
d.
Inseparability
Answer: a.
Heterogeneity
a.
Increasing the credence qualities of services
b.
Improving standardization of services
c.
Providing training for employees
d.
Finding ways to synchronize supply and demand
Answer: d.
Finding ways to synchronize supply and demand
a.
people processing
b.
possession processing
c.
mental stimulus processing
d.
information processing
Answer: a.
people processing
a.
Scheduling
b.
Tangible cues
c.
Price bundling
d.
Customization
Answer: a.
Scheduling
a.
customization level
b.
social level
c.
financial level
d.
structural level
Answer: c.
financial level
a.
It does not respond to individual customers' needs.
b.
It uses technology to customize the products of a firm.
c.
It focuses on customizing rather than standardizing products.
d.
It cannot cater to the needs of different customer groups.
Answer: b.
It uses technology to customize the products of a firm.
a.
determining costs can be difficult for many services.
b.
it does not focus on maximizing the surplus of income over costs.
c.
the profit goals of the company is not taken into account.
d.
it cannot be used by manufacturing companies.
Answer: a.
determining costs can be difficult for many services.
a.
customization level
b.
social level
c.
financial level
d.
structural level
Answer: d.
structural level
a.
public service advertisement
b.
retail advertisement
c.
surrogate advertisement
d.
commercial advertisement
Answer: a.
public service advertisement
a.
They can measure their success and failure in strictly financial terms.
b.
They seek to make a profit for redistribution to owners or shareholders.
c.
They focus on generating enough funds to cover the organization's expenses.
d.
They have a financial bottom line that simplifies decision-making processes for nonprofit managers.
Answer: c.
They focus on generating enough funds to cover the organization's expenses.
a.
Their services are paid for by people who are better off financially.
b.
Their services are priced higher than the costs incurred.
c.
Consumers are charged a monetary price but instead must absorb monetary costs.
d.
Indirect payment is not a common practice in nonprofit organizations.
Answer: a.
Their services are paid for by people who are better off financially.
a.
tangibility
b.
assurance
c.
empathy
d.
responsiveness
Answer: d.
responsiveness
a.
a lack of understanding or a misrepresentation of the customers' needs, wants, or desires.
b.
misleading or deceptive advertising campaigns that promise more than what the firm can deliver.
c.
management's inability to translate customers' needs into delivery systems within the firm.
d.
the inability of management and employees to do what should be done.
Answer: d.
the inability of management and employees to do what should be done.
a.
the inability of management and employees to do what should be done.
b.
a lack of understanding or a misrepresentation of the customers' needs, wants, or desires.
c.
misleading or deceptive advertising campaigns that promise more than what the firm can deliver.
d.
the inability of management to translate customers' needs into delivery systems within the firm.
Answer: d.
the inability of management to translate customers' needs into delivery systems within the firm.
a.
ensure that employees have the skills and the proper tools to perform their jobs.
b.
create realistic customer expectations through honest, accurate communication.
c.
stay attuned to customer wishes by researching customer needs and satisfaction.
d.
encourage teamwork and train employees so that they know what the management expects.
Answer: b.
create realistic customer expectations through honest, accurate communication.
a.
It is simpler for a firm to administer than individually pricing each element.
b.
It is a pricing strategy that does not apply for services.
c.
It is preferable when consumers are willing to pay extra for every part of the service.
d.
It is a pricing strategy where customers pay only for the service elements they use.
Answer: a.
It is simpler for a firm to administer than individually pricing each element.
a.
decline stage
b.
maturity stage
c.
growth stage
d.
introductory stage
Answer: a.
decline stage
a.
Products are not subjected to test marketing.
b.
Products are developed to meet unique market requirements whenever possible.
c.
Products are inadequately distributed in local markets.
d.
Products are developed to cater to local markets.
Answer: b.
Products are developed to meet unique market requirements whenever possible.
a.
It is used to determine the reactions of potential customers in a market situation.
b.
It is a strategy that links the new-product development process with the objectives of the marketing department, the business unit, and the corporation.
c.
It is a strategy that provides general guidelines for generating, screening, and evaluating new-product ideas.
d.
It is the process where all the involved areas work together rather than sequentially during a product's development.
Answer: d.
It is the process where all the involved areas work together rather than sequentially during a product's development.
a.
To eliminate ideas that are inconsistent with the organization's new-product strategy
b.
To get recommendations of product ideas from outside consultants
c.
To directly involve customers in test marketing
d.
To stimulate insightful comments through group interaction
Answer: d.
To stimulate insightful comments through group interaction
a.
The beginning of this stage is signaled by increased sales.
b.
Product design changes tend to become functional rather than stylistic.
c.
It is the shortest stage of the PLC.
d.
Niche marketers that target the underserved segments of a market emerge during this stage.
Answer: d.
Niche marketers that target the underserved segments of a market emerge during this stage.
a.
to implement simultaneous product development.
b.
to create three-dimensional prototypes quickly and at a relatively low cost.
c.
to evaluate alternative marketing strategies.
d.
to shorten the development process of a product and reduce costs.
Answer: c.
to evaluate alternative marketing strategies.
a.
It involves evaluating a new-product idea before creating any prototype.
b.
Costs decrease dramatically once a product idea enters the development stage.
c.
It involves examining the feasibility of manufacturing a product at an acceptable cost.
d.
Simultaneous product development increases the time spent in the development process.
Answer: c.
It involves examining the feasibility of manufacturing a product at an acceptable cost.
a.
a new product is consistent with existing values and product knowledge, past experiences, and current needs.
b.
a product can be tried on a limited basis.
c.
a product is perceived as superior to existing substitutes.
d.
the benefits of using a product can be communicated to target customers.
Answer: c.
a product is perceived as superior to existing substitutes.
a.
A product spends the same amount of time in the different stages of the life cycle.
b.
The PLC for a product form is longer than the PLC for any one brand.
c.
Changes in a product, its uses, its image, or its positioning do not affect that product's life cycle.
d.
The PLC dictates the marketing strategy to be used for a product.
Answer: b.
The PLC for a product form is longer than the PLC for any one brand.
a.
It is used in the business analysis stage of the new-product development process.
b.
It is a forum for meeting with customers and directly involving them in the innovation process.
c.
It is an approach to reposition a company's products.
d.
It promotes status-conscious advertising among customers.
Answer: b.
It is a forum for meeting with customers and directly involving them in the innovation process.
a.
The product should not be developed using crowdsourcing.
b.
The features of the new product should be similar to its substitutes in the market.
c.
The new product should deliver a meaningful and perceivable benefit to a sizable number of people.
d.
The new product should be priced lower than other products in the same category.
Answer: c.
The new product should deliver a meaningful and perceivable benefit to a sizable number of people.
a.
test marketing
b.
the business analysis stage
c.
commercialization
d.
the development stage
Answer: c.
commercialization
a.
compatibility
b.
observability
c.
trialability
d.
complexity
Answer: d.
complexity
a.
Trialability
b.
Complexity
c.
Observability
d.
Compatibility
Answer: a.
Trialability
a.
test locations should mirror the purchasing habits of the overall market
b.
the media reach in test locations should be very high
c.
test marketing should expose the new product and its marketing mix to competitors
d.
the company should have limited distribution in test cities
Answer: a.
test locations should mirror the purchasing habits of the overall market
a.
It eliminates the need for test marketing a new product.
b.
It eliminates the need for conducting laboratory tests on product prototypes.
c.
It shortens the development process and reduces costs.
d.
It ensures that product development occurs in highly structured stages.
Answer: c.
It shortens the development process and reduces costs.
a.
Forecasting market share for a new entry in a new, fragmented, or relatively small niche market is easy.
b.
The newness of the product, the size of the market, and the nature of the competition do not affect the accuracy of revenue projections.
c.
Depending on the nature of the product and the company, this process may be simple or complex.
d.
Costs increase dramatically once a product idea enters the business analysis stage.
Answer: c.
Depending on the nature of the product and the company, this process may be simple or complex.
a.
It is the last stage of the new-product development process.
b.
It refrains from adopting ideas suggested by customers and competitors.
c.
It involves targeting existing products at new markets.
d.
It must be compatible with the objectives of the marketing department, the business unit, and the corporation.
Answer: d.
It must be compatible with the objectives of the marketing department, the business unit, and the corporation.
a.
They are characterized as being venturesome.
b.
They are more worldly and more active outside their community than noninnovators.
c.
Their opinions heavily influence their friends and neighbors.
d.
Their adoption of a new product stems from pressure to conform to group norms.
Answer: d.
Their adoption of a new product stems from pressure to conform to group norms.
a.
They have the longest adoption time and the lowest socioeconomic status.
b.
They most likely belong to the late majority category of adopters.
c.
They are distinguished by demographics.
d.
They speed up the diffusion process through word-of-mouth communication.
Answer: d.
They speed up the diffusion process through word-of-mouth communication.
a.
they are eager to try new ideas and products.
b.
they are characterized as being venturesome.
c.
they act as influencers and begin the viral marketing chain.
d.
they are positioned between earlier and later adopters.
Answer: d.
they are positioned between earlier and later adopters.
a.
It can be used to analyze a brand, a product form, or a product category.
b.
It informs marketers about the duration of a product in the various stages of its life cycle.
c.
It dictates the marketing strategy to be used for a product.
d.
It tells managers the length of a product's life cycle.
Answer: a.
It can be used to analyze a brand, a product form, or a product category.
a.
They are more likely to get their information from scientific sources and experts.
b.
They act as influencers and begin the viral marketing chain.
c.
They have the longest adoption time and the lowest socioeconomic status.
d.
They act as an important link in the process of diffusing ideas.
Answer: c.
They have the longest adoption time and the lowest socioeconomic status.
a.
product line extension
b.
product line classification
c.
product line reeling
d.
product line contraction
Answer: a.
product line extension
a.
New products are categorized as unsought products until advertising and distribution increase consumer awareness of them.
b.
Marketers of unsought products often use selective, status-conscious advertising to maintain the product's exclusive image.
c.
Consumers buy unsought products regularly, usually without much planning, and at inexpensive prices.
d.
Consumers usually buy an unsought product only after comparing several brands or stores on style, practicality, price, and lifestyle compatibility.
Answer: a.
New products are categorized as unsought products until advertising and distribution increase consumer awareness of them.
a.
market segments a firm is willing to target or serve.
b.
product lines an organization offers.
c.
product items in a product line.
d.
competitors present in the market for a particular product line.
Answer: c.
product items in a product line.
a.
Promotional labeling
b.
Perspective labeling
c.
Informational labeling
d.
Persuasive labeling
Answer: c.
Informational labeling
a.
contain products that are liquid, granular, or otherwise divisible.
b.
secure the right of a company to use a brand or part of a brand.
c.
even out seasonal sales patterns.
d.
protect a brand name from being declared a generic product name.
Answer: a.
contain products that are liquid, granular, or otherwise divisible.
a.
specialty product
b.
shopping product
c.
major product
d.
convenience product
Answer: b.
shopping product
a.
helps firms cater to the upper classes effectively.
b.
results in increased brand loyalty or new opportunities for market segmentation.
c.
lets a firm's manufacturer lower the price.
d.
provides new opportunities for market segmentation.
Answer: c.
lets a firm's manufacturer lower the price.
a.
An excellent distribution channel can compensate for an inferior product.
b.
It is usually the starting point in creating a marketing mix for a market segment.
c.
A consumer product and an industrial product is differentiated based on the price.
d.
It is the marketing mix that can be decided after choosing a promotion strategy.
Answer: b.
It is usually the starting point in creating a marketing mix for a market segment.
a.
It prohibits other firms from using a brand or part of a brand without permission.
b.
It comes with the sale of every product under the Uniform Commercial Code.
c.
It ranges from simple statements to extensive documents written in technical language.
d.
It gives the impression of environmental friendliness to a product.
Answer: b.
It comes with the sale of every product under the Uniform Commercial Code.
a.
A one-brand-name strategy reduces the ease of coordinating promotion from market to market.
b.
A one-brand-name strategy is useful when a company markets mainly one product.
c.
Using different brand names in different markets leads to greater identification of the product from market to market.
d.
Using different brand names in different markets means that a company does not follow localization.
Answer: b.
A one-brand-name strategy is useful when a company markets mainly one product.
a.
A wide product mix means that that the product line is deep.
b.
A wide product mix decreases sales and profit-making potential.
c.
Firms widen their product mix to capitalize on established reputations.
d.
All product items in a product mix follow a standard marketing strategy.
Answer: c.
Firms widen their product mix to capitalize on established reputations.
a.
Ingredient branding
c.
Complementary branding
d.
Family branding
Answer: c.
Complementary branding
a.
They are relatively inexpensive and merit little shopping effort.
b.
They are distributed to only a few outlets in a geographic area.
c.
They are easily substituted with other products.
d.
They are made directly available to a consumer through direct mail.
Answer: b.
They are distributed to only a few outlets in a geographic area.
a.
It is marketed using selective, status-conscious advertising to maintain its exclusive image.
b.
It is widely distributed in a geographic area in order to sell sufficient quantities.
c.
It is unknown to a potential buyer or a known product that the buyer does not actively seek.
d.
It is easily substituted with products that have the same features.
Answer: a.
It is marketed using selective, status-conscious advertising to maintain its exclusive image.
a.
They require greater transportation and warehousing costs than product items.
b.
They limit the product choices offered to customers to one or two product items.
c.
They provide economies of scale in advertising.
d.
They increase a firm's manufacturing and inventory costs.
Answer: c.
They provide economies of scale in advertising.
a.
co-branding strategy
b.
one-brand-name strategy
c.
repositioning strategy
d.
family branding strategy
Answer: b.
one-brand-name strategy
a.
It gives the impression of environmental friendliness to a product.
b.
It ranges from simple statements to extensive documents written in technical language.
c.
It is an unwritten guarantee that a good or service is fit for the purpose for which it is sold.
d.
It prohibits other firms from using a brand or part of a brand without permission.
Answer: b.
It ranges from simple statements to extensive documents written in technical language.
Independent federal agency
-clear, understandable, mandatory employee training
-right level on control: doesn't sound or appear overly controlling beyond employer's legitimate interest
-appropriate disclaimers (employee, not corporate)
Answer: Yes, because it's a government device
(ex: Hilary Clinton)
Answer: Current law provides little in the way guidance. State and Federal employment statues do not explicitly regulate employee's online activity, and there is little case law on subject.
-defamation
-disclosure of confidential and propriety info
-security info
-employee morale
-harassment
-bullying and hazing
-pornography and obscenity
-violence/terroristic and harmful threats
-unauthorized statements
-safety issues (texting and driving)
-violations of other policies
-required government warnings about the effects of consumption
-the company that has produced the product and paid for the speech
-whether the beverage is considered to be a malt beverage, wine, or distilled spirit
Trademark Infringement- Two different types:
1. Manufactures make "knockoff" items that illegally display trademarks
2. Customers can confuse two trademarks to be the same, and therefore mixing up the products.
Trademark Dilution
-Given to the owner of the trademark.
-Gives the owner the power to withhold the trademark from others
Trademark Counterfeiting Act of 1984
-Makes it a federal offense to violate the Lanham Act.
-Up to 5 years imprisonment or $250,000 fine
Antitrust Violation
-Group of laws that regulate the conduct of business corporations to promote fair competition.
-a friendly (but firm) letter from the trademark owner's attorney pointing out the infringement and requesting that it cease immediately
-can turn to ligation in court
-the traditional remedy for trademark infringement is injunctive relief (run corrective ads or destroy all goods with logo on it)
-monetary relief
Answer: congress gave them power to seek civil and criminal remedies for violations of the securities law and regulations.
Answer: It looks with disfavor on statements that could mislead potential consumers or investors in the ultimate decision to purchase
untruthful info about:
-changes in senior management of a corp.
-potential mergers or takeovers
-revenues or profits
-significant new markets
-plans for new securities offerings
(can be in press releases, speeches, media interviews)
Answer: used to enforce exisiting regulations, but is now less aggressive
1. fails to indicate possible side effects
2. exaggerates the effectiveness of a drug compared to its drawbacks
3. neglects to specify the negative effects of long-term usage
4. contains a representation that a drug is better, more effective, or useful in a broader range of condition, then can be justified by at least 2 clinical trials
5. claims that a drug is safer than a competitor's product without appropriate scientific evidence
Answer: Must reflect the wording accepted by the FDA for the drug's package labeling, including a description of all the specific side effects and "contraindications" that could result from taking the drug as well as any warnings for its use
is limited to regulating information about the contents and safety of drugs available only by prescription when advertised or promoted through the mass media or direct marketing to consumers
Regulate labels and any written, printed or graphic:
1. upon any article (drug) or any of its containers
2. accompanying such article
The four-part mission of the Food and Drug Administration:
1. Approving new drugs, medical devices and certain food additives for safety and in some cases effectiveness.
2. Setting standards for food and the labeling of food and then ensuring via testing that such foods meet these standards.
3. Inspecting sites where drugs, cosmetics, medical devices and foods are produced to ensure these products meet the FDA's public safety standards.
4. Issuing public warnings or taking legal action when unsafe products threaten the public welfare.
FTC regulation apply to:
-ad and PR agencies
-original manufacturers or providers
Ad or PR agencies can be held:
-vicariously liable as defendants in product liability suit
-false, misleading, or deceptive commercial speech
Answer: (cease and desist order) should be used as a last resort.
they order the offending commercial speaker to stop
Answer: they involve claims about the conditions of the sales situation, including special sales, low prices or unusual merchandising practices
also includes credit
-separate FTC policy statements apply to celebrities and other non-employee spokespeople
-endorsement statements require prior substantiation
-"experts" must have tried before endorsing
(lotteries, contests, games of chance, drawings, and sweepstakes)
-lotteries, are banned by law in most states
-a contest is treated as an illegal lottery if contestants must pay money
The FTC is concerned that it is a risk of deception for potential consumers, so they provide specific guidelines for disclosure of information
-viewed with special scrutiny
-minimum of 2 independent clinical trials
(qualified independent investigators following a research plan)
-exaggeration "it's the best"
-don't require substantiation (no one will believe them)
-provide evidence that all of the material claim have been substantiated in advance
(truthful)
-substantiated (provide evidence to support or prove the truth of) PRIOR to publication
-based on the perception of the message by consumers
-includes sins of omission as well (leaving info out)
Answer: FTC jurisdiction extends to all forms of communication used for publicity and marketing purposes
Answer: If no settlement, an ALJ (adminstrative law judge) may conduct a hearing.
Answer: Sweeping powers to obtain data, info from parties under investigation.
The president, with the advice and consent of the Senate, appoints 5 commission members and no more than 3 members may be from the same political party.
Each commissioner is appointed to a 7 year term and may be reappointed to additional.
FTC staff members determine whether further procedures seem merited.
Answer: The addition of the words "unfair or deceptive acts or practices in commerce" in the amended law gave the FTC authority for the first time to protect consumers by taking action
A.
use a transaction-oriented sales approach
B.
close sales
C.
capture short-term business
D.
cut prices to make the sale
E.
practice value selling
Answer: E.
practice value selling
A.
territorial
B.
complex
C.
customer
D.
product
E.
market
Answer: D.
product
A.
transaction-oriented
B.
profit-oriented
C.
relationship-oriented
D.
customer-oriented
E.
value-oriented
Answer: A.
transaction-oriented
A.
Qualifying
B.
Presentation
C.
Closing
D.
Prospecting
E.
Follow-up
Answer: E.
Follow-up
A.
customer
B.
market
C.
product
D.
territorial
E.
complex
Answer: D.
territorial
A.
Salespeople must be fast talkers.
B.
Most salespeople lack common sense and social skills.
C.
The best salespeople are the ones who work closely with customers for mutual gain.
D.
Salespeople do not play a role in solving customer problems.
E.
Salespeople are not well educated.
Answer: C.
The best salespeople are the ones who work closely with customers for mutual gain
A.
recruitment
B.
compensation plans
C.
motivation
D.
training programs
E.
supervision
Answer: E.
supervision
A.
nonpersonal
B.
only used for face to face customer interactions
C.
less engaging than advertising
D.
interpersonal
E.
designed to reach large groups of consumers
Answer: D.
interpersonal
A.
Clutter
B.
Consumer
C.
Trade
D.
Sales force
E.
Business
Answer: E.
Business
A.
workforce
B.
field
C.
inside
D.
complex
E.
workload
Answer: E.
workload
A.
Rebates, discounts, free goods, and allowances
B.
Discounts, free goods, allowances and price packs
C.
Discounts, free goods, allowances and free advertising specialty items
D.
Rebates, samples, coupons and price packs
E.
Discounts, free goods, coupons and rebates
Answer: C.
Discounts, free goods, allowances and free advertising specialty items
A.
rebates
B.
point-of-purchase promotions
C.
premiums
D.
coupons
E.
advertising specialties
Answer: C.
premiums
A.
Sales promotions are only offered to consumers.
B.
The growing use of sales promotion has resulted in promotion clutter.
C.
Companies that use sales promotions usually do not use any other promotional mix tools.
D.
The use of sales promotions has declined in recent years.
E.
Sales promotions offer long-term incentives to buy a product.
Answer: B.
The growing use of sales promotion has resulted in promotion clutter.
A.
Coordination between marketing and sales is not necessary because companies today see them as the same function.
B.
Marketing and sales do not require coordination.
C.
The sales force only needs to coordinate its efforts with marketing planners.
D.
Coordinating marketing and sales can be improved by increasing communication between the two groups.
E.
Coordinating marketing and sales has little effect on customer relations.
Answer: D.
Coordinating marketing and sales can be improved by increasing communication between the two groups.
A.
Eliminating expense reports
B.
Outside sales
C.
Telemarketing
D.
Team selling
E.
Social selling
Answer: E.
Social selling
A.
handle objections
B.
immediately close the sale
C.
follow up with the customer
D.
approach qualified customers
E.
prospect the customer
Answer: A.
handle objections
A.
A fixed amount, a variable amount, expenses and salary
B.
A fixed amount, a variable amount, stock ownership, and fringe benefits
C.
A fixed amount, a variable amount, salary and commission
D.
A fixed amount, a variable amount, expenses, and fringe benefits
E.
A fixed amount, a variable amount, expenses, and commission
Answer: D.
A fixed amount, a variable amount, expenses, and fringe benefits
A.
The salesperson meets the buyer for the first time.
B.
The salesperson attempts to "razzle dazzle" the buyer.
C.
The salesperson closes the deal.
D.
The salesperson handles objections.
E.
The salesperson tells the buyer a value story.
Answer: E.
The salesperson tells the buyer a value story.
A.
Premium
B.
Allowance
C.
Sponsorship
D.
Sample
E.
Point-of-purchase
Answer: E.
Point-of-purchase
A.
Getting retailers to carry new items and more inventory, buy ahead, or promote the company's products and give them more shelf space
B.
Boosting consumer brand involvement and short-term buying
C.
Urging short-term customer buying and gaining customer loyalty
D.
Generating business leads, stimulating purchases, rewarding customers, and motivating salespeople
E.
Getting more sales force support for current or new products and getting salespeople to sign up new accounts
Answer: A.
Getting retailers to carry new items and more inventory, buy ahead, or promote the company's products and give them more shelf space
A.
Evaluating salespeople.
B.
Recruiting and selecting salespeople.
C.
Training salespeople.
D.
Designing sales force strategy and structure.
E.
Compensating salespeople.
Answer: D.
Designing sales force strategy and structure.
A.
Designing sales force strategy and structure
B.
Supervising salespeople
C.
Compensating salespeople
D.
Evaluating salespeople
E.
Training salespeople
Answer: E.
Training salespeople
A.
Approach
B.
Qualifying
C.
Prospecting
D.
Presentation
E.
Preapproach
Answer: A.
Approach
A.
phishing
B.
telemarketing
C.
infomercials
D.
spamming
E.
mobile marketing
Answer: A.
phishing
A.
Online marketing is the only form of direct and digital marketing.
B.
Both the new digital and the more traditional forms of direct marketing must be blended into a fully integrated marketing communications program.
C.
Marketers today only use direct and digital marketing.
D.
Traditional direct marketing tools are still used but are no longer important.
E.
Direct and digital marketing does not include mobile marketing.
Answer: B.
Both the new digital and the more traditional forms of direct marketing must be blended into a fully integrated marketing communications program.
A.
Direct-mail marketing
B.
Kiosk marketing
C.
Telemarketing
D.
Catalog marketing
E.
Direct-response television marketing
Answer: A.
Direct-mail marketing
A.
engagement and social sharing capabilities
B.
return on investment
C.
the potential for intrusiveness
D.
the low cost
E.
user-controlled content
Answer: A.
engagement and social sharing capabilities
A.
Companies cannot gain insights from their blogs.
B.
They are expensive to start and maintain.
C.
For consumers, they are impersonal.
D.
Blogs are a company-controlled medium.
E.
Blogs can be difficult for the company to control.
Answer: E.
Blogs can be difficult for the company to control.
A.
For sellers, direct and digital marketing is inflexible.
B.
For sellers, direct and digital marketing is very inefficient.
C.
Sellers using direct and digital marketing cannot solicit questions and feedback from customers.
D.
For sellers, using direct and digital marketing is expensive.
E.
Sellers have opportunities to engage in real-time marketing.
Answer: E.
Sellers have opportunities to engage in real-time marketing.
A.
Mobile marketing is not used by companies to stimulate immediate buying.
B.
Most smartphone owners do not use mobile apps.
C.
Like other types of advertising, mobile ads are not very engaging.
D.
Smartphones can be very useful in shopping situations.
E.
Mobile advertising spending in the U.S. is declining.
Answer: D.
Smartphones can be very useful in shopping situations.
A.
branded web communities
B.
mobile marketing
C.
permission-based e-mail marketing
D.
blogs
E.
online advertising
Answer: B.
mobile marketing
A.
search engine marketing
B.
e-mail marketing
C.
viral marketing
D.
online marketing
E.
omni-channel marketing
Answer: C.
viral marketing
A.
phishing
B.
iTV
C.
TV
D.
TVsquared2
E.
an infomercial
Answer: B.
iTV
A.
infomercial
B.
website
C.
kiosk
D.
DRTV
E.
iTV
Answer: C.
kiosk
A.
online marketing, social media marketing, and mobile marketing
B.
direct-response TV marketing, telemarketing and direct-mail marketing
C.
telemarketing, face-to-face selling, and kiosk marketing
D.
telemarketing, direct-mail marketing, and catalog marketing
E.
kiosk marketing, telemarketing and direct-response TV marketing
Answer: A.
online marketing, social media marketing, and mobile marketing
A.
text- and image-based ad and link that appears atop or alongside search engine results
B.
mobile app
C.
type of targeted e-mail
D.
online forum
E.
type of online advertising
Answer: D.
online forum
A.
unsolicited e-mail marketing
B.
spamming
C.
phishing
D.
viral marketing
E.
permission-based e-mail marketing
Answer: E.
permission-based e-mail marketing
A.
Kiosk marketing
B.
Mobile marketing
C.
Social media marketing
D.
Websites
E.
Blogs
Answer: A.
Kiosk marketing
A.
search engine
B.
marketing
C.
D.
branded community
E.
content
Answer: D.
branded community
A.
social media marketing
B.
traditional direct marketing
C.
online marketing
D.
telemarketing
E.
mobile marketing
Answer: C.
online marketing
A.
Selling information to technology businesses
B.
Selling contextual advertising
C.
Selling subscriptions to the site.
D.
Selling search results
E.
Through fund-raising
Answer: B.
Selling contextual advertising
A.
joint venturing
B.
contract manufacturing
C.
management contracting
D.
licensing
E.
direct investment
Answer: E.
direct investment
A.
export departments
B.
geographical organizations
C.
international subsidiaries
D.
world product groups
E.
international divisions
Answer: B.
geographical organizations
A.
excise
B.
fine
C.
barter
D.
tariff
E.
quota
Answer: C.
barter
A.
emerging
B.
raw material exporting
C.
industrial
D.
industrializing
E.
subsistence
Answer: E.
subsistence
A.
Management contracting
B.
Contract manufacturing
C.
Subsistence economies
D.
Joint ownership
E.
Licensing
Answer: C.
Subsistence economies
A.
final user or buyer
B.
communication adaptation
C.
channels within nations
D.
global value delivery network
E.
channels between nations
Answer: C.
channels within nations
A.
A subsistence economy
B.
Emerging economies
C.
Barter
D.
A raw material exporting economy
E.
Industrial economies
Answer: C.
Barter
A.
channels between nations
B.
promotion
C.
price
D.
channels within nations
E.
communication adaptation
Answer: A.
channels between nations
A.
Climate
B.
Transportation structure and market accessibility
C.
Education
D.
Population density (urban and rural)
E.
Country size
Answer: C.
Education
A.
industrial
B.
income distribution
C.
emerging
D.
raw materials exporting
E.
subsistence
Answer: C.
emerging
A.
indirect exporting
B.
direct investment
C.
joint venturing
D.
joint ownerships
E.
franchising
Answer: A.
indirect exporting
A.
GDP size and growth
B.
Natural resources
C.
Industrial infracture
D.
Education
E.
Income distribution
Answer: D.
Education
A.
Raw material exporting
B.
Income distribution
C.
Industrial
D.
Emerging
E.
Subsistence
Answer: C.
Industrial
A.
Communication adaptation
B.
Price escalation
C.
Product adaptation
D.
Product invention
E.
Straight extension
Answer: B.
Price escalation
A.
Promotion
B.
Price
C.
Communication adaption
D.
Product invention
E.
Product adaptation
Answer: E.
Product adaptation
A.
joint ownership
B.
licensing
C.
contract manufacturing
D.
management contracting
E.
exporting
Answer: B.
licensing