Archive for September 2021

As more and more Americans are moving to "micropolitan areas," marketers can most reasonably assume that ________.

As more and more Americans are moving to "micropolitan areas," marketers can most reasonably assume that ________.



A) geographic segmentation may be less critical

B) rural populations will offer an expanding market

C) micropolitan areas may offer the same advantages as metropolitan areas

D) congested areas may become more ensnarled

E) crime rates in metropolitan areas will increase



Answer: C

A company's marketing environment includes various ________ that are made up of groups that have an actual or potential interest in, or impact on, an organization's ability to achieve its objectives.

A company's marketing environment includes various ________ that are made up of groups that have an actual or potential interest in, or impact on, an organization's ability to achieve its objectives.



A) teams

B) audiences

C) markets

D) publics

E) intermediaries



Answer: D

You are directed to study the factors that are larger societal forces that affect your company-demographic, economic, natural, technological, political, and cultural. What are you studying?

You are directed to study the factors that are larger societal forces that affect your company-demographic, economic, natural, technological, political, and cultural. What are you studying?



A) the macroenvironment

B) the microenvironment

C) the marketing environment

D) the marketing mix

E) the global environment



Answer: A

You are directed to study the factors close to the company that affect its ability to serve its customers-departments within the company, suppliers, marketing intermediaries, customer markets, competitors, and publics. What are you studying?

You are directed to study the factors close to the company that affect its ability to serve its customers-departments within the company, suppliers, marketing intermediaries, customer markets, competitors, and publics. What are you studying?



A) the macroenvironment

B) the microenvironment

C) the marketing environment

D) the green movement

E) the global environment



Answer: B

In the marketing context, what does 80:20 mean?

In the marketing context, what does 80:20 mean?


a. 80% of niche marketers give primary importance to the price of a product, while 20% give importance to their customers.

b. 80% of a company's sale comes from 20% of its customers.

c. 80% of a marketplace is segmented, while 20% is untapped.

d. 80% of a company's customers give 20% importance to the product design.



Answer: B

One-to-one marketing occurs when:

One-to-one marketing occurs when:


a. the public is educated about a product's pay off.

b. each customer serves as his or her own segment.

c. information about a product is provided to a niche segment.

d. people are segregated into specific groups.



Answer: B

Mass marketing occurs when:

Mass marketing occurs when:



a. a group of services are bundled together.

b. all customers are treated in the same manner.

c. a product is marketed as a large entity.

d. customers are segregated based on their earning potential.



Answer: B

A market segment is a:

A market segment is a:


a. complete customer population at a marketplace.

b. group of industrial customers with variable wants and needs.

c. customer group who share similar inclinations toward a brand.

d. homogenous customer group broken down into groups that are heterogeneous.



Answer: C

With respect to STP in the marketing framework, the positioning process helps a marketer to:

With respect to STP in the marketing framework, the positioning process helps a marketer to:



a. evaluate groups of industrial customers who share similar wants and needs.



b. choose a niche group segment from a selected set of industrial customers.



c. analyze the market potential for a product's horizontal diversification.



d. communicate a product's benefits clearly to the intended target customers.



Answer: D

With respect to STP in the marketing framework, which of the following statement distinguishes segmentation from targeting?

With respect to STP in the marketing framework, which of the following statement distinguishes segmentation from targeting?




a. Segmentation deals with tangible goods, while targeting deals with intangible services.



b. Segmentation identifies the marketing effort required for a macro-environment group, while targeting identifies the marketing effort required for a micro-environment group.



c. Segmentation identifies groups with similar wants or needs, while targeting deals with the marketing efforts required for an identified group.



d. Segmentation identifies the customers and collaborators of a company, while targeting deals with the competitive factors in an industry.



Answer: C

With respect to STP in the marketing framework, the targeting process helps:

With respect to STP in the marketing framework, the targeting process helps:





a. create an image of the product in the mind of a selected customer.



b. select a group of customers from a set of identified groups.



c. provide additional information about a product to the public.



d. educate customers about a product's benefits and values.



Answer: B

The central players in a marketing exchange are:

The central players in a marketing exchange are:



a. collaborators and competitors.



b. customer and company.



c. context and market concentration.



d. price and promotion.



Answer: B

Which of the following is an example of an industry marketing itself?

Which of the following is an example of an industry marketing itself?




a. An ad encouraging the purchase of a Firefox mountain bike.



b. An ad introducing Pizza Hut's new menu.



c. An ad encouraging the consumption of a Snicker bar.



d. An ad encouraging the consumption of eggs.



Answer: D

Which of the following was the most immediate effect of the Portuguese establishment of a school for navigation in the 1400s?

Which of the following was the most immediate effect of the Portuguese establishment of a school for navigation in the 1400s?



A

The development of overseas trade between West Africa and Europe

B

The establishment of regular trade contacts between Europe and the Americas

C

The decline of Venetian control of the trade in Asian luxury goods

D

The establishment of direct overseas trade links between India and Europe



Answer: A

Which of the following was a major long-term effect of Vasco da Gama's voyage to India in the late 1490s?

Which of the following was a major long-term effect of Vasco da Gama's voyage to India in the late 1490s?



A

It led to the integration of European merchants into the Indian Ocean economy.

B

It brought about the complete destruction of Muslim-controlled trade routes in the Indian Ocean.

C

It spurred the Mughal Empire to invest resources in becoming a major naval power.

D

It catalyzed the adoption of new European naval technology by states throughout the Indian Ocean basin.



Answer: A

Which of the following factors best explains why the Portuguese did not engage in direct trading relations with West African states until the fifteenth century?

Which of the following factors best explains why the Portuguese did not engage in direct trading relations with West African states until the fifteenth century?



A

Lack of the necessary navigational and maritime technology

B

Lack of European interest in African goods

C

Directives from the pope to limit trade between Christians and Africans

D

Fear of death from tropical diseases



Answer: A

Which of the following factors best explains why the Portuguese did not engage in direct trading relations with West African states until the fifteenth century?

Which of the following factors best explains why the Portuguese did not engage in direct trading relations with West African states until the fifteenth century?



A

Lack of the necessary navigational and maritime technology

B

Lack of European interest in African goods

C

A prohibition on external trade by the Islamic states of North Africa

D

Directives from the pope to limit Christian trade with Africa

E

Fear of dying from tropical diseases



Answer: A

The ability of Portuguese merchants and explorers to communicate with the local population of Canton was most likely an effect of which of the following?

The ability of Portuguese merchants and explorers to communicate with the local population of Canton was most likely an effect of which of the following?



A

Mandarin had replaced Cantonese as the primary spoken language in southern China.

B

Migrations and commercial contacts led to the use of printing in southern China.

C

Portuguese merchants had established trading posts in southern China.

D

Portuguese had replaced Arabic and Persian as the language of trade in southern China.



Answer: C

Which of the following best explains a similar motivation behind the establishment of Portuguese trading posts in Africa and the establishment of Portuguese trading posts in Asia?

Which of the following best explains a similar motivation behind the establishment of Portuguese trading posts in Africa and the establishment of Portuguese trading posts in Asia?



A

The trading posts in both regions were intended to prevent economic collapse following the disintegration of powerful local empires.

B

The trading posts in both regions were intended to facilitate commercial cooperation between European states.

C

The trading posts in both regions were intended to facilitate the transfer of slaves to the Americas.

D

The trading posts in both regions were intended to allow the Portuguese to control access to heavily trafficked maritime routes.



Answer: D

Which of the following best explains a similarity between the earliest English and French voyages across the North Atlantic in the late fifteenth and sixteenth centuries?

Which of the following best explains a similarity between the earliest English and French voyages across the North Atlantic in the late fifteenth and sixteenth centuries?



A

They succeeded despite receiving little support from their respective state governments.

B

They were often launched in the hopes of finding alternative sailing routes to Asia.

C

They were ended after encountering violent resistance from Portuguese and Spanish naval forces.

D

They helped convince western European monarchies to abandon mercantilist policies in favor of free-trade policies.



Answer: B

Over the next century, the Portuguese activities referenced in the two passages resulted in which of the following changes in the region?

Over the next century, the Portuguese activities referenced in the two passages resulted in which of the following changes in the region?



A

The establishment of an effective Hindu-Muslim alliance that successfully resisted the Portuguese in India

B

The conquest of large areas of the Indian interior by the Portuguese

C

An influx of precious metals to Europe that caused price inflation

D

The creation of a Portuguese trading-post empire



Answer: D

Which of the following best explains an effect of Spanish voyages across the Atlantic and Pacific Oceans in Europe in the late fifteenth and sixteenth centuries?

Which of the following best explains an effect of Spanish voyages across the Atlantic and Pacific Oceans in Europe in the late fifteenth and sixteenth centuries?



A

They encouraged many governments to expand the use of coerced labor in Europe.

B

They led to the rapid spread of epidemic diseases such as smallpox.

C

They greatly increased interest in transoceanic travel and trade in other European countries.

D

They led to the introduction of new staple crops such as sugar.



Answer: C

The development of Indian Ocean trade routes in the period 600 B.C.E. to 600 C.E. and the development of transatlantic trade routes in the period 1450 C.E. to 1600 C.E. were similar in that both depended on

The development of Indian Ocean trade routes in the period 600 B.C.E. to 600 C.E. and the development of transatlantic trade routes in the period 1450 C.E. to 1600 C.E. were similar in that both depended on



A

the impetus of missionizing religions

B

understanding of currents and wind patterns

C

the political consolidation of newly conquered regions into empires

D

innovations in ship design that originated in Europe



Answer: B

Some world historians have argued that the growth of European influence in the period 1450—1750 was due in large part to non-European inventions. The history of which of the following technological developments best supports this contention?

Some world historians have argued that the growth of European influence in the period 1450—1750 was due in large part to non-European inventions. The history of which of the following technological developments best supports this contention?



A

The compass

B

Silk weaving

C

Steam power

D

The stirrup



Answer: A

The illustration above shows which of the following about the fifteenth century?

The illustration above shows which of the following about the fifteenth century?



A

The relative number of ships produced by the Hangzhou shipyards and the Genoese shipyards

B

The beginning of a long period of Chinese domination of Indian Ocean trade

C

The meting of Vasco de Gama and Zheng He

D

The relative size of the European caravel and the Ming treasure ship

E

The use of the lateen sail



Answer: D

All of the following statements about the Ottoman Empire in the period 1450-1750 are factually accurate. Which would most strongly support Barkey's claim regarding the Ottoman state and toleration in the passage?

All of the following statements about the Ottoman Empire in the period 1450-1750 are factually accurate. Which would most strongly support Barkey's claim regarding the Ottoman state and toleration in the passage?



Answer: The Ottoman army increasingly relied on the contributions of the Janissary corps, which was mostly composed of soldiers of non-Turkic origin.

The actions of the Maroons that forced British colonial authorities to conclude a treaty with them are best explained as evidence of reactions against which of the following global trends in the period 1450-1750?

The actions of the Maroons that forced British colonial authorities to conclude a treaty with them are best explained as evidence of reactions against which of the following global trends in the period 1450-1750?




Answer: The increasing expansion and centralization of state power

Imperfect competition occurs when:

Imperfect competition occurs when:



a. the demand is not equal to the supply of goods.

b. consumers have unique needs and desires.

c. companies indulge in unfair trade practices.

d. the marketplace is homogeneous.



Answer: B

In an umbrella branding approach, firms:

In an umbrella branding approach, firms:



a. introduce a new brand name for every major product line.

b. unite with firms from the same industry to brand a product line.

c. attach the same brand name for every major product line.

d. unite with firms from a different industry to brand a product line.



Answer: C

Which of the following examples should be categorized at the bottom of a brand value hierarchy?

Which of the following examples should be categorized at the bottom of a brand value hierarchy?



a. Capello, a lip balm brand, plans to introduce strawberry flavored lip balms.

b. Droopy is a brand of lip balm that can be used as a pain relief balm on cuts and minor burns.

c. Drumstick, a brand of lip balm, uses vitamin E in its lip balms.

d. Ruby, a brand of lip balm, is less expensive than the other competing brands in the market.



Answer: A

Which of the following is an example of branding standardized services?

Which of the following is an example of branding standardized services?



a. Creating a service brand for an airline

b. Creating a service brand for an insurance firm

c. Building a service brand for a training institution

d. Building a service brand for a consultation agency



Answer: A

In branding of products and services, which of the following indicates the difference between reliability and variability?

In branding of products and services, which of the following indicates the difference between reliability and variability?



a. Reliability implies a product's consistency, while variability implies a product's inconsistency.

b. Reliability deals with perishable services, while variability deals with imperishable goods.

c. Reliability deals with intangible products, while variability deals with intangible services.

d. Reliability implies the experience attributes of a product, while variability implies the search attributes of a product



Answer: A

In the marketing framework, "branding" refers to:

In the marketing framework, "branding" refers to:



a. positioning of a product.

b. segmentation of a population set.

c. diversification of a product.

d. identification of a niche market.



Answer: A

Which of the following is a characteristic of perceptual fluency observed in ads?

Which of the following is a characteristic of perceptual fluency observed in ads?



a. It is found in ads that are dependent on brief periods of exposure.

b. It is found in ads that are subliminal and conscious in nature.

c. It is found in the cues of ads that are subtle in nature.

d. It is the result of ignoring the secondary information of an ad.



Answer: C

Which of the following is a characteristic of subliminal ads?

Which of the following is a characteristic of subliminal ads?



a. Print ads of this type depend on brief periods of exposure.

b. TV ads of this type depend on brief periods of exposure.

c. These ads meet the threshold of consciousness.

d. These ads meet the threshold of liminal recognition.



Answer: B

Which of the following statements distinguishes a modified rebuy from a new buy?

Which of the following statements distinguishes a modified rebuy from a new buy?



a. In a modified rebuy, the customer is familiar with the product attributes to be considered, while in a new buy scenario the customer is not aware of the product's attributes.

b. In a modified rebuy, the customer is mainly concerned with purchasing raw materials, while the customer in a new buy is interested in business services.

c. In a modified rebuy, products are broken down into small units for easy handling, while in a new buy the customer buys the product as a whole.

d. In a modified rebuy, the customer purchases the product from an approved seller, while the customer in a new buy chooses a brand new seller in the market.



Answer: A

Which of the following statements distinguishes a straight rebuy from a modified rebuy?

Which of the following statements distinguishes a straight rebuy from a modified rebuy?



a. A straight rebuy deals with the internal customers of an organization, while a modified rebuy deals with external customers.

b. A straight rebuy deals with purchases from the same vendor, while a modified rebuy deals with purchases from a new or different vendor.

c. A straight rebuy is analogous to a shopping purchase, while a modified rebuy is analogous to a specialty purchase.

d. A straight rebuy deals with intangible purchases, while a modified rebuy deals with tangible purchases.



Answer: B

Which of the following statements distinguishes convenience purchases from specialty purchases?

Which of the following statements distinguishes convenience purchases from specialty purchases?



a. Convenience purchases usually generate word-of-mouth referrals, while specialty purchases do not.

b. Convenience purchases deal with fairly mindless staple purchases, while specialty purchases require more thought.

c. Convenience purchases are commonly B2B purchases, while specialty purchases relate mostly to B2C customers.

d. Convenience purchases deal with purchases internal to an organization, while specialty purchases deal with external purchases.



Answer: B

Which of the following is an example of a post-purchase behavior exhibited by consumers?

Which of the following is an example of a post-purchase behavior exhibited by consumers?



a. Peter was happy with the car audio system he purchased from RadioShack.

b. Eddie could not decide whether to pick up a sports game or a strategy game for his son, Nathan.

c. Barlow decided to buy a new Sony PS3 as the Nintendo Wii was too expensive.

d. Brad wanted to own an apartment in New York, just like Michael.



Answer: A

The USP element in a positioning statement:

The USP element in a positioning statement:



a. expresses clearly the firm's brand's strengths from its competitors.

b. alienates the firm's stock product from its product mix.

c. differentiates the firm's B2B customers from its B2C customers.

d. distinguishes the firm's intangible services from its tangible goods.



Answer: A

A positioning statement:

A positioning statement:



a. is a customized communication statement for different audiences.

b. communicates succinctly the parameters of a product to a number of audiences.

c. encourages brand dilution by helping a firm launch multiple products under a single brand.

d. aggregates groups of customers based on different demographic factors.



Answer: B

In positioning, which of the following is a weakness of a perceptual map?

In positioning, which of the following is a weakness of a perceptual map?



a. It looks into the tangible factors of a firm, not its intangible factors.

b. It does not express competitors' profiles of perceptual data.

c. It looks into just two attributes necessitating the study of many plots.

d. It looks into a firm's threats, not its weaknesses.



Answer: C

In the context of a positioning matrix, assuming that promotion is categorized as "heavy" vs. " light," and distribution is categorized as "wide" vs. "exclusive," a "niche" product would mean:

In the context of a positioning matrix, assuming that promotion is categorized as "heavy" vs. " light," and distribution is categorized as "wide" vs. "exclusive," a "niche" product would mean:



a. heavy promotion and exclusive distribution

b. light promotion and wide distribution

c. heavy promotion and wide distribution

d. light promotion and exclusive distribution



Answer: D

A perceptual map helps a firm to:

A perceptual map helps a firm to:



a. identify the closest substitute products.

b. pinpoint a customer group in a large set.

c. identify a new raw materials supplier.

d. identify a new customer base.



Answer: A

Which of the following is an example of positioning?

Which of the following is an example of positioning?



a. Bird Inc., a basketball distributor, supplies basketballs to few sports stores in Boston.

b. Carroll Joy, a toy store in Minnesota, decides to identify the age group of kids visiting their store.

c. Barry Inc., a shoe manufacturer, promotes itself as the only existing customized shoe manufacturer in San Antonio.

d. McHale Inc., a camera distributor, restricts its consideration set of customer segments in Houston.



Answer: C

Typically, a firm creates a perceptual map by:

Typically, a firm creates a perceptual map by:



a. analyzing its performances with respect to a successful historical data set.

b. evaluating its corporate strengths against absolute measures.

c. assessing its performances against a set of performance standards.

d. assessing its corporate strengths relative to its competitors.



Answer: D

In the SWOT analysis of a firm, which of the following explains the difference between weaknesses and threats?

In the SWOT analysis of a firm, which of the following explains the difference between weaknesses and threats?



a. Weaknesses are dependent on subliminal characteristics of a firm, while threats are dependent on perceptual fluency characteristics of a firm.

b. Weaknesses relate to a firm's inability to satisfy customers' physiological needs, while threats relate to a firm's inability to satisfy customer's social needs.

c. Weaknesses are dependent on micro-environment characteristics of a firm, while threats are dependent on macro-environment characteristics of a firm.

d. Weaknesses relate to the segmenting process of a firm, while threats relate to the positioning process of a firm.



Answer: C

In context of SWOT analysis, which of the following reflects the difference between strengths and opportunities?

In context of SWOT analysis, which of the following reflects the difference between strengths and opportunities?



a. Strengths depend on the B2B products of a firm, while opportunities depend on the B2C products of a firm.

b. Strengths relate to the tangible products of a firm, while opportunities relate to the intangible services of a firm.

c. Strengths relate to the internal factors of a firm, while opportunities relate to the external factors of a firm.

d. Strengths depend on the entire functioning of the firm, while opportunities depend on the functioning of a specific department in the firm.



Answer: C

In the SWOT analysis of a firm, which of the following is an example of a threat?

In the SWOT analysis of a firm, which of the following is an example of a threat?



a. Restrictions imposed by the government on the use of kids in ads

b. Lack of ability to retain entry level marketers

c. Failure to renew a contract with its primary supplier

d. Lack of effort to cash in on a growing product segment



Answer: A

In the SWOT analysis of a firm, which of the following is an example of a firm's weakness?

In the SWOT analysis of a firm, which of the following is an example of a firm's weakness?



a. Increase in the variable cost of the firm's primary raw material

b. Two main competitors joining hands to evaluate an expansion opportunity

c. Entry of a well known manufacturer into the firm's primary market segment

d. High employee turnover over rate in the firm's marketing department



Answer: D

In the SWOT analysis of a firm, which of the following is an example of a firm's strengths?

In the SWOT analysis of a firm, which of the following is an example of a firm's strengths?



a. A chance to diversify into an exclusive niche market segment.

b. Potential of a firm in a diversified product line.

c. An opening for the firm to add more products into its product line.

d. A versatile and qualified R&D team in the firm.



Answer: D

In the marketing framework, which of the following actions is implemented by a firm during the targeting process?

In the marketing framework, which of the following actions is implemented by a firm during the targeting process?



a. Creating a product feature that differentiates the core product from its competitors.

b. Educating the general public about its product's benefits.

c. Assessing its product's alignment with a specific market segment.

d. Giving out additional product information to a market segment.



Answer: C

In the context of high pricing strategies for products, the equation used to determine the percent change in sales for a stable price sensitive product is:

In the context of high pricing strategies for products, the equation used to determine the percent change in sales for a stable price sensitive product is:



a. (Price sensitivity * Original Price) / (New Price - Original Price)

b. Price sensitivity * ( New price - Original price) / Original price

c. ( New Price - Original Price ) / (Price sensitivity * Original price )

d. Original Price * (New price - Original price ) / Price sensitivity



Answer: B

Dominic Inc., a pretzel manufacturer, introduced a new flavor of pretzels in the market. The fixed manufacturing costs came up to $5,000, and the cost of packaging materials for a box came up to $15. If a box of pretzels is priced at $25, what is the breakeven point of Dominic Inc.?

Dominic Inc., a pretzel manufacturer, introduced a new flavor of pretzels in the market. The fixed manufacturing costs came up to $5,000, and the cost of packaging materials for a box came up to $15. If a box of pretzels is priced at $25, what is the breakeven point of Dominic Inc.?



a. 50 boxes

b. 250 boxes

c. 200 boxes

d. 500 boxes



Answer: D

Which of the following explains the difference between elastic and inelastic demand?

Which of the following explains the difference between elastic and inelastic demand?



a. Elastic demand means product demand varies with a change in the product's price, while inelastic demand means the product demand remains static even with a change in the product's price.

b. Elastic demand relates to intangible services, while inelastic demand relates to tangible goods.

c. Elastic demand relates to the internal projects of a firm, while inelastic demand relates to the external projects of a firm.

d. Elastic demand means the product demand depends on the segmentation process of a firm, while inelastic demand means the product demand depends on the targeting process of a firm.



Answer: A

Forecasting is the:

Forecasting is the:



a. factor that distinguishes external test markets from internal test markets.

b. unique collection of ideas from a unique niche group segment.

c. factor used to distinguish between two different core product attributes.

d. prediction of a product's likely success using customer data.



Answer: D

Beta testing refers to:

Beta testing refers to:



a. estimating the profitability and breakeven point of a product idea using statistical tools.

b. launching a product and estimating the sales volume of the same product.

c. creating the physical prototype of a product, and testing it under typical usage conditions.

d. building a product with minimal features, and testing it on the internal shareholders of a firm.



Answer: C

With reference to a focus group, conjoint analysis refers to:

With reference to a focus group, conjoint analysis refers to:



a. combining two customer segments to form a new customer segment.

b. combining two product attributes to form a single product attribute.

c. combining two products from different product categories.

d. combining two products from the same product category.



Answer: B

Focus groups refer to the form of marketing research that:

Focus groups refer to the form of marketing research that:



a. groups customer segments into a separate niche market segment.

b. groups customer segments based on demographic factors.

c. asks a group of people to describe the use of a product in a specific category.

d. uses quantitative techniques to collect the primary data for new product development.



Answer: C

With reference to new product development, which of the following statements is true regarding the difference between the top-down approach and the marketing approach that is followed by firms?

With reference to new product development, which of the following statements is true regarding the difference between the top-down approach and the marketing approach that is followed by firms?



a. A firm following the top-down approach uses subliminal ads to promote its stock product, while a firm following the marketing approach uses perceptual fluency ads to promote its stock product.

b. A firm following the top-down approach asks for customers' feedback at the end of a process, while a firm following the marketing approach asks for customers' feedback at most phases in a process.

c. A firm following the top-down approach deals with brand extensions, while a firm following the marketing approach deals with product line extensions.

d. A firm following the top-down approach relates to macro-environmental factors of the firm, while a firm following the marketing approach relates to micro-environmental factors of the firm.



Answer: B

Which of the following statements explains the difference between forward integration and backward integration?

Which of the following statements explains the difference between forward integration and backward integration?



a. A manufacturer takes up the product's distribution responsibilities in forward integration, while a manufacturer controls raw material inputs in backward integration.

b. Forward integration deals with tangible goods and perishable services, while back ward integration deals with perishable goods and intangible services.

c. Forward integration deals with the internal or micro-environmental factors of a firm, while backward integration deals with the external or macro-environmental factors of a firm.

d. The number of intermediaries in a forward integration process is greater than the number of intermediaries in a backward integration process.



Answer: A

In the context of distribution, double marginalization occurs when:

In the context of distribution, double marginalization occurs when:



a. a firm's top management and middle management fail to agree on a product's feature.

b. a firm's top management and suppliers fail to agree on a raw material's price revision.

c. a manufacturer, based on a monthly sales target, rewards its intermediaries.

d. a manufacturer and its intermediaries expect to earn a profit from the same transaction.



Answer: D

Transaction cost analysis is a model that:

Transaction cost analysis is a model that:



a. considers channel members' production costs and governance costs, both of which are ideally minimized.

b. compares a manufacturer's processes with those of its competitors' and ranks them accordingly.

c. considers the effect of a policy, program, project, activity, or event on the economy of a given area.

d. compares the inherent risks of a situation to its related benefits and helps arrive at a decision.



Answer: A

Which of the following statements differentiate push and pull strategies?

Which of the following statements differentiate push and pull strategies?



a. A manufacturer using push strategies relies on word-of-mouth referrals, while a manufacturer using pull strategies relies on valid forecasts.

b. A manufacturer using push strategies concentrates on B2B customers, while a manufacturer using pull strategies concentrates on B2C customers.

c. A manufacturer using push strategies concentrates on intangible services, while a manufacturer using pull strategies concentrates on tangible products.

d. A manufacturer using push strategies concentrates on channel partners, while a manufacturer using pull strategies concentrates on customers.



Answer: D

Which of the following defines a manufacturer's distribution intensity?

Which of the following defines a manufacturer's distribution intensity?



a. Number of tangible products in a purchase transaction

b. Number of intangible services in a purchase transaction

c. Number of component suppliers for a stock product

d. Number of intermediaries required to reach a customer



Answer: D

CRM is defined as a:

CRM is defined as a:



a. tool in the company that tracks spending, regardless of whether customers are segmented into loyals or disloyals, and rewarded or not.

b. tool used to promote or encourage specific actions or behavior by a specific group of suppliers during a defined period of time.

c. pricing tool that distinguishes a firm's stock product from its complements and substitutes.

d. tool that distinguishes a firm's intangible products, tangible services, perishable products, and imperishable services



Answer: A

In the context of the 5Cs, the zone of tolerance:

In the context of the 5Cs, the zone of tolerance:



a. is the difference between a customer's low, ideal, and adequate level of expectations.

b. explains the difference between a firm's supply chain management and channel members.

c. is the difference between a product's search, experience, and credence qualities.

d. explains the difference between a product's motivational and enhancing factors.



Answer: A

In the context of the 5Cs, the "moment of truth":

In the context of the 5Cs, the "moment of truth":



a. is the point of interaction between a firm and its customers.

b. differentiates a firm's supply chain management from its channel members.

c. is the combination of a firm's suppliers and distributors.

d. differentiates the primary supplier of a firm from its secondary suppliers.



Answer: A

In the context of media planning, a firm using occasional schedules:

In the context of media planning, a firm using occasional schedules:



a. alters the periodicity of the ad depending on the length of the buying cycle.

b. focuses on the pre-term season for the product.

c. advertises in sync with purchase cycles.

d. incurs more costs than a firm using continuous schedules.



Answer: C

In the context of media planning, a firm using a continuous schedule:

In the context of media planning, a firm using a continuous schedule:



a. has a consistent set of distributors to meet its customer demands.

b. follows a predictable time schedule to show the ad to its customers.

c. has a consistent set of suppliers to meet its product deadlines.

d. advertises a little more frequently than the object is purchased.



Answer: D

In the context of gross rating points, frequency is defined as the:

In the context of gross rating points, frequency is defined as the:



a. percentage of target audience who has seen the marketer's ad at least once.

b. number of times a marketer's target audience is exposed to an ad.

c. firm's market share in an exclusive niche market segment.

d. number of B2B products sold in the guise of research.



Answer: B

GRP = ?

GRP = ?



a. Reach × Frequency

b. Reach + Frequency

c. Reach / Fequency

d. Reach - Frequency



Answer: A

There are instances where customers' are affected by positive association with a celebrity, even if the celebrity knows little about the product being endorsed. This is known as the ________.

There are instances where customers' are affected by positive association with a celebrity, even if the celebrity knows little about the product being endorsed. This is known as the ________.



a. subliminal effect

b. humor effect

c. one-sided effect

d. sleeper effect



Answer: D

The elaboration likelihood model:

The elaboration likelihood model:



a. assumes that there are two ways into a consumer brain — a central path or a peripheral path.

b. transfers the experience of "correctness and importance" to the ensuing assessment of the chosen object, increasing its superficial worth.

c. assumes that buying inertia is directly proportional to two factors — the empathy gap and impact basis.

d. offers an economic advantage by requiring minimal cognitive effort on the part of the recipient



Answer: A

In the context of the product life cycle, ads for a brand in the growth stage:

In the context of the product life cycle, ads for a brand in the growth stage:



a. inform customers about the new product or offering.

b. maintain a steady presence by serving reminders.

c. enhance the positivity of the target segment's attitudes.

d. concentrate on the promotion of a diversified product.



Answer: C

List each aspect of the company's macro-environment.

List each aspect of the company's macro-environment.



1. Demographic Environment

2. Economic Environment

3. Natural Environment

4. Technological Environment

5. Political Environment

6. Cultural Environment

8 of the Consumer, Cultural trends in the Macroenvironment are.

8 of the Consumer, Cultural trends in the Macroenvironment are.



1. Paradox- life is getting better and worse at the same time

2. Trust not- consumer confidence has dropped for groups that used to be "honorable"

3. Go it alone

4. Intelligence does count

5. No sacrifices- give up taste?

6. Stress is hard to beat- get enough sleep

7. Reciprocity is the way to go

8. Me-2- the desire to live in a world built by me, not by you

Why has business legislation been enacted?

Why has business legislation been enacted?



- Protect companies from each other

- protect consumers from unfair business practices

- protect the interests of society

Which countries have strong consumer protection laws?

Which countries have strong consumer protection laws?



(part of Political Macroenvironment)

- Norway bans contests for sale promotions

- Germany prohibits displaying of the competition's products in an advertising face off

What do Marketers need to keep track of?

What do Marketers need to keep track of?



1. Changing Age and Fmaily structures

2. geographic population shifts

3. educational characteristics

4. population diversity

What are the seven types of publics a company can interact with in the micro environment?

What are the seven types of publics a company can interact with in the micro environment?



1. Financial publics (influence banks, investment houses, stockholders)

2. Media Publics

3. Govt. Publics

4. Citizen-action publics (PR department)

5. Local publics (community relations officer)

6. General publics (firm's general public image)

7. Internal publics (keeping staff happy, Mission statement)

Marketing intermediaries include:

Marketing intermediaries include:



1. resellers

2. marketing services agencies (i.e. advertising agencies)

3. physical distribution firms (help the company move stuff)

4. financial intermediaries (banks, credit comapnies, insurance companies)

How to analyze the company's microenvironment?

How to analyze the company's microenvironment?



Answer: vigorous evaluation of departments inside company, are there any parts or division of the firm that are "sick"?

The Marketer's Microenvironment includes:

The Marketer's Microenvironment includes:



A. The company's health- how are the "other" departments?

B. Suppliers= are you a price maker or a price taker?

C. Marketing Intermediaries- are you a price maker or a price taker?

D. Competitors

E. Various publics

F. Customers

What does the Macro-environment ask Marketers to consider?

What does the Macro-environment ask Marketers to consider?



Answer: Larger societial FORCES that affect the actors of the Microenvironment:

- demographic forces

- economic forces

- natural

- tech

- political

- cultural

What is the Product Life Cycle Theory?

What is the Product Life Cycle Theory?



1. Product development (new product idea, sales are zero, investment costs mount)

2. Introduction (introduced to market)

3. Growth (rapid markets acceptance and increasing profits

4. maturity (slowdown of sales growth because the product has achieved acceptance by most)

5. Decline (sales fall off, profits decline)

What is a Return on Marketing?

What is a Return on Marketing?



Answer: (not like ROI)

qualitative aspirations related to the customers

- challenging to quantify customer relations

- has my lifetime customer equity been improved?

What does a Marketing Audit cover?

What does a Marketing Audit cover?




  1. Environment
  2. Strategy
  3. Organization
  4. Systems
  5. Mix
  6. Productivity
  7. Profitability

What is a Marketing Audit?

What is a Marketing Audit?




Answer: 


comprehensive examination of:

company's environment, objectives, strategies, activities to find internal problem areas and opportunities

What are the 4 steps of Marketing Control?

What are the 4 steps of Marketing Control?



1. Mgmt sets marketing goals

2. Mgmt measures its performance in the marketplace

3. Mgmgt evaluates causes of any differences between expected and actual performance

4. Mgmt takes corrective action to close gaps

What does Marketing Control involve?

What does Marketing Control involve?



- Monitory the progress of the Marketing Plan

- Evaluating the results of marketing strategies

- taking corrective action to ensure: objectives are attained and problems are mitigated

What are some possibilities for developing the Marketing Mix?

What are some possibilities for developing the Marketing Mix?




  • product (what is the company offering?)
  • price
  • place (how to get the product to ctarget consumers)
  • promotion (how to communicate about your product and persuade target customers to buy it)
  • Some people believe the 4Ps take the Sellers POV not the Buyer's

Marketing strategies must be designed to

Marketing strategies must be designed to



"fight a war on two fronts"

- to identify true needs of consumers

- to understand the strategies of competitors = COMPETITOR ANALYSIS

How can firms create Competitive Advantage?

How can firms create Competitive Advantage?



  • charging lower prices than competitors
  • offering more benefits- quality - to justify higher prices

What is Market Segmentation?

What is Market Segmentation?



Answer: dividing a market into distinct groups of buyers w different needs and therefore require distinct products

What is The Customer Value-Delivery Network?

What is The Customer Value-Delivery Network?



Answer: more companies today are partnering with other members of the supply chain to create a new and improved distribution system

Two kinds of "Partners" in Partner Relationship Management

Two kinds of "Partners" in Partner Relationship Management



1. Marketers must partner up with other company intermediaries in the distribution channel --> Value-Delivery Network

2. must work closeley with partners in other departments to form "Value-Chain" that serves customer

The Marketing Concept provides a guiding philosophy that suggests that:

The Marketing Concept provides a guiding philosophy that suggests that:



- company strategy should revolve around building profitable relationships w important consumer groups

- marketing provides inputs to strategic planners (firm's potential to take advantage of opportunities)

- strategies for each individual SBU's objectives

Fundamental strategic-planning methods include.

Fundamental strategic-planning methods include.



- identify major elements of business environment the business has operated in, in the past few years

- describe Mission in terms of its "Nature" and "Function" for next 2 years

- "Internal and External Forces that will impact Mission

- Identify force that will drive the organization in the future

- long-term objectives

- general plan of action

PLANNING MARKETING: DO NOT LEAVE CUSTOMER RELATIONSHIPS TO CHANCE

How to increase sales with Strategic Business Units and Products?

How to increase sales with Strategic Business Units and Products?



  1. at this step, "Strategy" blends into mechanized "tactics"
  2. the activation of the specific (Marketing) decisions that have to be instituted to reach the long-term strategic objectives of the firm
  3. STRATEGIC PLANNING IS NOT ONLY FOR LARGE BUSINSSES

What is the Product-Market Expansion Grid?

What is the Product-Market Expansion Grid?



Answer: Created by Igor Ansoff, points to an Intensive Growth Strategy for taking advantage of future markets and products.

Boston Consulting Group Approach suggests four strategies, what are they?

Boston Consulting Group Approach suggests four strategies, what are they?



1. invest more to build share

2. invest only enough in order to sustain the current market share

3. harvest the SBU, milking short term cash flow regardless of long term

4. divest the SBU by selling it or phasing it out so as to use the resources elsewhere

What is the Portfolio Theory?

What is the Portfolio Theory?



Answer: Says that Cash Cow products are responsible for maintaining the company profitable while the money raised from the Star products should be used to fund R & D and any Publicity Push

How should Firms Analyze their Current Business Portfolio?

How should Firms Analyze their Current Business Portfolio?



A. Identify Strategic Business Units

B. Assess the SBU's attractiveness (how much support does each deserve?) i.e. Boston Consulting Group's Matrix

Why should companies perform Portfolio Analysis?

Why should companies perform Portfolio Analysis?



- with the aid of a persuasive graphic, mgmt can evaluate the products and businesses that make up the company

- normally companies will want to put strong resources into its more profitable businesses and lsowsly phase out the weaker ones

What does Business Portfolio planning involve?

What does Business Portfolio planning involve?



Answer: 

  • Analyzing current Business Portfolio and deciding which businesses should receive: more/less investment or no investment
  • the firm must shape the future Portfolio by developing strategies for

- growth

- downsizing

In theory, what should Mission Statements be?

In theory, what should Mission Statements be?



- based on company's distinct competencies

- realistic

- specific

- motivating

- market oriented

What is a Mission Statement?

What is a Mission Statement?


Answer: 


  • statement of the organization's purpose
  • what it wants to accomplish over the long term

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