question

T or F: Berskshire Hathaway Inc., a large property insurance company, owns a large chain of jewelry stores and has recently purchased Russell Corporation, a manufacturer of sporting goods. Berkshire Hathaway uses a market penetration strategy.

answer

False

question

T or F: The marketing plan is a written document that acts as a guidebook of marketing activities for the marketing manager.

answer

True

question

T or F: A firm's mission statement should answer the question, \"What products do we produce best?\"

answer

False

question

T or F: Marketing strategy involves the activities of selecting and describing one or more target markets and developing and maintaining a marketing mix that will produce manually satisfying exchanges with target markets.

answer

True

question

T or F: Typically, the development of the marketing mix starts with determining the promotion for a product.

answer

False

question

T or F: Having a global vision means that management recognizes and reacts to international marketing opportunities, uses effective marketing strategies, and is aware of threats from foreign competitors in all markets.

answer

True

question

T or F: Global marketing standardization presumes that the markets throughout the world are becoming more alike.

answer

True

question

T or F: The same environmental factors that operate in domestic markets also exist internationally. These factors (culture, economic, political structure and actions, demographic makeup, and natural resources) should be examined regardless of the country.

answer

True

question

Even though it is not actively involved in global marketing, Hennessey Enterprises, a US-based business, agreed to sell two thousand of its stress-reducing products to a distribution company in Norway. This would be an example of direct investment.

answer

False

question

T or F: Global marketing research is not any more difficult than domestic marketing research.

answer

False

question

T or F: Consumers with prior experience in buying a certain product will spend less time searching for product information and will limit the number of product they they consider.

answer

True

question

T or F: In general, detailed, informative advertisements are most effective for high-involvement products because consumers actively search for additional information prior to making their decision.

answer

True

question

T or F: By keeping the blue triangle in the corner and the Nabisco name on several similar Nabisco snack products, Nabisco is attempting to capitalize on stimulus generalization.

answer

True

question

T or F: An attitude is a physiological difference among consumers.

answer

False

question

T or F: It is usually easier to change consumer beliefs about a service attribute than a product attribute.

answer

False

question

T or F: For a product to be called a business product, it must be used to manufacture other products, become part of another product, or aid the normal operations of an organization.

answer

True

question

T or F: Business marketers usually have far fewer customers than consumer marketers

answer

True

question

T or F: Most business marketers emphasize personal selling in their promotion efforts.

answer

True

question

T or F: Because formal committees are often established to purchase business products, members of buying centers can be readily identified on formal organizational charts.

answer

False

question

T or F: Although customer service has in the past been an important factor in business buyer-seller relationships, its importance has been waning in the last decade.

answer

False

question

T or F: Inez believes that makeup is the most important part of her wardrobe. She spends considerable time comparing the prices, skin tones, and color options available at various cosmetic counters in department stores. For Inez, makeup is a convenience product.

answer

False

question

T or F: Coca-Cola is one of the world's largest manufacturers of beverages. It makes over 2,800 different beverage products, including sparkling drinks, waters, juices, juice drinks, teas, coffees, sports drinks, and energy drinks. The great variety of beverages made by Coca-Cola represents its product mix.

answer

True

question

T or F: Proctor & Gamble's Olay line of skin products is very popular and profitable. P&G has launched an Olay body wash that is supposed to fight wrinkles. This is an example of repositioning.

answer

False

question

T or F: Retailers love national brands because overhead is low and there are no marketing costs, and they bring higher profit margins than private brands.

answer

False

question

T or F: The most important functions of packaging are to contain and protect products, promote products, facilitate product storage, and facilitate recycling.

answer

True

question

T or F: A firm's new-product strategy links the new-product development process with the objectives of the marketing departments, the business unit, and the corporation.

answer

True

question

T or F: A test market is one example of a focus group test where consumers are encouraged to try a new product and provide feedback to the manufacturer.

answer

False

question

T or F: Proctor and Gamble introduced a new fabric softener dispenser that consumers stick to the inside of the dryer drum and sent consumers free samples in the mail. This strategy likely increased the rate of adoption of the new product.

answer

True

question

T or F: The product life cycle is a biological metaphor that traces the stages of a product's acceptance, from its introduction (birth) to its decline (death).

answer

True

question

T or F: Increasing competition, aggressive brand advertising, and healthy profits are all characteristics found in the introductory stage of the product life cycle.

answer

False

question

T or F: Promotion is communication by marketers that informs, persuades, and reminds potential buyers of a product in order to influence their opinion or elicit a response.

answer

True

question

T or F: Maddie's Beverage Company has recently introduced Wateroos, eight-ounce servings of water in juice-style containers with straws, to encourage children to drink more water. Since this product is in the introductory stage of the product life cycle and as yet has no direct competition, Maddie's promotional objective should be persuasion.

answer

False

question

T or F: Benedict and Taapo are arguing about newspaper publicity. Benedict says favorable publicity is free, hence \"free publicity\". Taapo says that publicity is not free because costs were incurred in developing the public relations materials used by the newspapers. Benedict has a more accurate grasp of the definition of publicity.

answer

False

question

T or F: Allyson Brown is trying to develop a promotional mix for her firm's new product, a sophisticated modular sun porch designed for use all year. She reasons that because her product is complex and carries high financial risks for consumers, the mix should concentrate on personal selling.

answer

True

question

T or F: Lanksy sells 60 different knife and garden tool sharpeners. It uses aggressive personal selling and sales promotions to encourage intermediaries to carry and sell its sharpener. Lanksy is using a push strategy.

answer

True

question

T or F: Social commerce combined social media with the basics of e-commerce.

answer

True

question

T or F: Customers are on social media, and they expect their favorite brands will be there as well.

answer

True

question

T or F: The best way a company can increase sales using social media is to improve customer service.

answer

False

question

T or F: A large part of Twitter's success results from the one-dimensional nature of the platform-it is limited to text messages only, which makes it simpler for people to use than platforms that allow the sharing of photos of external links.

answer

False

question

T or F: A review site allows consumers to post, read, rate, and comment on opinions regarding a wide variety of goods and services.

answer

True

question

T or F: The goal of advertising is to change people's values.

answer

False

question

T or F: There are many snack foods for children, but only Nature's Path makes an organic snack designed for a child's palate. The product's unique selling proposition is that is is completely organic.

answer

True

question

T or F: Mobile advertising may be one of the most promising tactics for contacting consumers when they are thinking about a specific product.

answer

True

question

T or F: An example of product placement is when the judges on American Idol are shown sipping Coca-Cola during the broadcast.

answer

True

question

T or F: Point-of-purchase promotions are seldom used as a sales promotion tool because most purchase decisions are made before consumers ever enter a store.

answer

False

question

T or F: Personal selling becomes a more important promotional tool as product value and complexity increase.

answer

True

question

T or F: With relationship selling, the salesperson would spend most of his or her contact time with the prospect talking about the product because the salesperson does not want to waste the customer's time.

answer

False

question

T or F: Customer-centric is an internal management philosophy similar to the marketing concept.

answer

True

question

T or F: The final selling duty for most successful salespeople is closing the sale.

answer

False

question

T or F: Compensation is one the sales manager's easiest jobs.

answer

False

question

T or F: Today's firms must develop specific, measurable, and attainable pricing objectives if they hope to survive in highly competitive markets.

answer

True

question

T or F: If demand for milk is inelastic, consumers will not change their purchasing habits greatly when the price of milk changes.

answer

True

question

T or F: Costs should not be part of price determination, especially not as a floor for long run pricing.

answer

False

question

T or F: Markup pricing, adding an amount to cost to cover expenses and profit, is the most popular method used by wholesalers and retailers to establish a selling price.

answer

True

question

T or F: Price should not be used as a promotional tool.

answer

False

question

T or F: Proctor and Gamble entered the electric toothbrush market with the Crest Spinbrush at a price considerably lower than those of lesser-known competitors. It used penetration to gain market share.

answer

True

question

T or F: There are two limousine services that drive customers from communities in North Georgia to the Atlanta airport, Whenever one reduces its fare, its competitor reduces its fares by the same amount. This is an example of status quo pricing.

answer

True

question

T or F: Manufacturers known the general price level the can expect when establishing a product price. This general price is called the base price.

answer

True

question

T or F: Evergreen Lighting, a manufacturer of decorative, energy-efficient lighting products, requires its buyers to pay for the cost of transportation from the manufacturing site to their place of businesses. Evergreen Lighting uses FOB origin pricing.

answer

True

question

T or F: One example of price bundling occurs when Nintendo sells the Wii Fit balance board with the Wii game system at a lower price than the total price of each if bought separately.

answer

True

question

T or F: Supply chain management is completely producer driven

answer

False

question

T or F: The demand management process seeks to align supply and demand throughout the supply chain by anticipating customer requirements at each level of creating demand-related plans of action prior to actual customer purchasing behavior.

answer

True

question

T or F: Manufacturers who require suppliers to meet certain environmental standards are implementing sustainable supply chain management.

answer

True

question

T or F: A marketing channel is a set of interdependent organizations that ease the transfer of ownership as products move from producer to business user or consumer.

answer

True

question

T or F: The direct channel is used more often in consumer markets than in business and industrial markets.

answer

False

question

T or F: Metallurgical Designs makes gold and silver charms for necklaces and bracelets. It markets its charms to a few retailers in any one region and promotes them intensively to those retailers. This is an example of intensive distribution.

answer

False

question

T or F: When discussing customer-oriented service industries, you will often hear channel members discussing the needs to minimize wait times.

answer

True

question

T or F: Emily has just opened a health food store that sells organic foods, herbal supplements, and environmentally friendly products. Because it will be a specialty store, she should have a broad product assortment with moderately low prices.

answer

False

question

T or F: Every October through December, Hickory Farms opens a temporary store in many malls to sell products during the Christmas season without the long-term commitment of a more expensive retail lease. This is an example of a pop-up shop.

answer

True

question

T or F: Dillard's, Target, and Walmart use data mining to determine which products to stock at what price. how to manage markdowns, and how to advertise to draw target customers.

answer

True

MKT 301 – Final True/False

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