question

Which marketing management philosophy focuses on the question, "What do customers want and need?"

answer

Market

question

A company that wants to implement a market orientation would need to:

answer

-do research on its customers, competitors, and markets. - determine how to deliver superior customer value. -implement actions that provide value to customers. -establish and maintain mutually satisfying relationships with customers.

question

_____ is defined as the relationship between benefits and the sacrifice necessary to obtain those benefits.

answer

Customer value

question

_____ is a strategy that focuses on keeping and improving relationships with current customers.

answer

Relationship marketing

question

A business is concerned with many day-to-day activities. Some of the most important of these activities are the planning and development of a product, its ability to communicate value, its pricing policy, and the distribution strategy. These activities are all a part of:

answer

Marketing

question

Earl is starting a new bank. Before the opening day, Earl had a meeting with all employees. He discussed their mission, defined objectives for the bank for the coming years, and shared who their target market is. He talked about their product offerings and where their future branches would be located. Earl is sharing the bank's:

answer

marketing plan.

question

A firm that wants to develop a deeper understanding of its customers may optimize profitability, revenue, and customer satisfaction by focusing on highly defined and precise customer groups. This is _____:

answer

customer relationship management.

question

A _____ is a study conducted by an organization to identify its internal strengths and weaknesses and also examine external opportunities and threats.

answer

situation analysis

question

Coca-Cola vending machines are found all over the world. The newest machines have an interactive screen that runs advertisements and allows users to obtain free photos of themselves and ringtones after they have bought a drink. Critics of these new vending machines are concerned that entertaining technology is being used to market sugary products. In terms of a SWOT analysis, this concern would be an example of a(n):

answer

threat

question

SWOT analysis (also Situational Analysis)

answer

Provides an internal look into the firm's strengths and weaknesses, as well as an external look at their opportunities and threats. Strengths Weaknesses Opportunities Threats

question

Walmart realizes a _____ using its relationships with suppliers to give customers low prices and good customer service.

answer

cost competitive advantage

question

Arizona Tea is marketed by Vultaggio & Sons. Vultaggio & Sons took a basic drink and put it into unusual bottles with elaborate designs. The wide-mouthed, long-necked bottles are now considered to be trendsetters in the new age beverage industry, and customers often buy the tea just for the bottle. The success of Arizona Tea is based on:

answer

a product differentiation competitive advantage.

question

Marketers can control the external environment in which their organizations operate.

answer

False- Although marketers can control the marketing mix and perhaps influence the external environment, they cannot control the external environment in which their organizations operate.

question

Marketers need a thorough understanding of the laws established by the federal government, state governments, and regulatory agencies.

answer

True-The laws established by regulatory agencies is a force that is external to the company and not under their direct control and, yet, laws can have an enormous impact on the ability of a company to produce, distribute, communicate, and price their products and services in the marketplace.

question

Which of the following statements best describes the typical target market?

answer

Target markets change over time as consumers drop in or out of the market, and as tastes change Target markets are defined and described, but they are always changing in response to the environment.

question

The external environment:

answer

must be continually monitored by marketing managers. The goal in gathering the environmental data is to identify future market opportunities and threats.

question

Americans' core value of upward mobility (i.e., success will come to anyone who works hard) has greatly influenced the way luxury goods are marketed. This phenomenon is an example of a(n) _____ factor. a) demographic b)social c) economic d) political and legal e) technological

answer

b) social

question

The steps of the consumer decision-making process, in order, are:

answer

need recognition, information search, evaluation of alternatives, purchase, postpurchase behavior

question

All of the following factors directly influence consumers' level of involvement in the purchase process:

answer

- financial risk associated with the product - previous experience with the product -perceived risk of negative consequences as a result of the purchase -social visibility of the purchased item *consumer age does NOT-Age is a demographic variable that doesn't necessarily influence a consumer's level of involvement.

question

Company X sells their products exclusively to companies in the Y market. In estimating demand from their business customers, Company X must understand that this demand is actually _____________, which means that the demand for industrial products and services is driven by demand for consumer products and services.

answer

derived demand

question

What are the twin pillars of marketing?

answer

Segmentation, differentiation

question

Why is targeting a specific group of customers usually more successful than trying to appeal to everyone?

answer

It will satisfy the segment's specific needs

question

A nationwide restaurant chain that varies its menu based on its location is an example of what kind of segmentation: a) Usage b)Demographic c) Psychological d)Geographic e) Benefits

answer

d) Geographical

question

Clear Channel owns hundreds of radio stations across the U.S. How do they decide what kind of music to play on a particular station?

answer

Usage

question

Procter & Gamble markets six different brands of laundry detergent, each targeting a different market segment. This is an example of concentrated targeting.

answer

False-This is an example of multi-segment targeting.

question

Deciding who to target is the first step in market segmentation.

answer

False- It is the last step in market segmentation.

question

"One-size-fits-all" marketing is largely out of date.

answer

True-Consumers are more sophisticated and want to feel that they are being treated uniquely

question

There are a number of detergents marketed under the Tide brand, including detergents with and without fabric softener, with and without bleach, with various pleasing smells, and fragrance-free formulations. These detergents are an example of Tide's:

answer

product line.

question

Tortilla chips are most likely _____ products, since they are purchased with little shopping effort. a)generic b) branded shoppping c) unbranded shopping d)specialty e) convenience

answer

e) convenience

question

Nestlé's quest is to make some of its existing products more nutritious and provide a health benefit. This is an example of which type of product modification? a) functional b) extension c) style d) brand e) ingredient

answer

a) functional

question

A regional utility company needs to change consumers' perceptions of its current service as being harmful to the environment. Which of the following strategies would best allow the company to accomplish this goal? a) Adding new services to its product line b) Disintermediation c)Repositioning d) Use of product cannibalization e) Contraction of the number of services offered by the utility company

answer

c) repositioning

question

The first stage of the new-product development process is:

answer

establishing the new-product strategy

question

During which stage of the process does the marketer lead the preliminary analysis and calculations for demand, cost, sales, and profitability?

answer

Developing a business analysis New-product ideas that survive the initial screening process move to the business analysis stage, where preliminary figures for demand, cost, sales, and profitability are calculated.

question

A manufacturer of office furnishings is finding it difficult to compete with cheaper imported merchandise. Which of the following is a potential source of new product ideas that would allow it to compete more effectively?

answer

-Customers who have requested its catalogs -The company's employees -R&D -Its foreign competitors

question

Stages of New-Product Strategy

answer

1) New-product Strategy 2) Idea Generation 3) Idea screening 4) Business Analysis 5) Development 6) Test Marketing 7) Commercialization

question

Product Lifecycle Curve https://utexas.instructure.com/courses/1197569/files/42132428/preview

answer

Introduction Growth Maturity Decline

question

In the adopter categories, the final 16 percent to adopt are similar to innovators in that they do not rely on the norms of the group but are independent because they are bound to tradition. They tend to have the lowest socioeconomic status, are suspicious of new products, and are alienated from a rapidly advancing society. They are called:

answer

laggards

question

All of the following are product characteristics influencing the rate of adoption EXCEPT: a) complexity b) observability c) distribution d) relative advantage e) compatibility

answer

c) distribution

question

Which of the following is not one of the stages of the product lifecycle?

answer

New product strategy stage

question

Profits typically reach their peak during the growth stage of the product life cycle.

answer

True

question

Services tend to exhibit more search qualities than do tangible goods.

answer

False - A search quality is a characteristic that can be easily assessed before purchase, and tangible goods tend to exhibit more search qualities than do intangible goods. Services exhibit more experience and credence qualities.

question

Which of the following is NOT one of the four unique elements to services? a)Perishability b)Incoherency c)Inseparability d)Heterogeneity e)Intangibility

answer

b) incoherency

question

Which of the following services would be most likely to exhibit strong credence qualities? a)Consulting services for insurance coverage b)A math tutorial service c)Tax return preparation d)The repair of a leaky drain

answer

c) Tax return preparation

question

All of the following are benefits of supply (value) chain management EXCEPT: a) decreases cash flow. b) reduces supply chain costs. c) key means of differentiation for a firm. d) improves customer service. e) increases flexibility of supply chain activities.

answer

a) decrease cash flow

question

All of the following are logistics components of the supply chain EXCEPT: a) production scheduling. b) order processing. c) inventory control. d) warehousing and materials-handling. e) trade promotions.

answer

e) trade promotions.

question

Which of the following is the inventory control system that manages the replenishment of raw materials, supplies, and components from the supplier to the manufacturer?

answer

Materials requirement planning (MRP)

question

______ within the marketing channel can provide efficiencies and economies of scale as channel members take on tasks that best utilize their expertise or strategic relationships. a) Overcoming temporal discrepancies b) Decreasing the distance between producers and customers c) Addressing assortment issues d) Specialization or Division of labor e) Overcoming quantity discrepancies

answer

d) Specialization or Division of labor

question

The three basic functions channel intermediaries perform are: a) transactional, logistical, and facilitating. b) financing, mediating, and storing. c) assorting, accumulating, and allocating. d) promoting, distributing, and bulk-breaking. e) contacting, negotiating, and ownership.

answer

a) transactional, logistical, and facilitating.

question

One configuration of a marketing channel entails producers selling to consumers without any intermediaries in the channel. This is called a(n): a) alternative channel. b) limited distribution system. c) direct channel. d) reciprocal channel. e) indirect channel.

answer

c) direct channel.

question

________ is a form of distribution aimed at having a product available in every outlet where target customers might want to buy it. a) Multiple b) Cumulative c) Aggregated d) Exclusive e) Intensive

answer

e) Intensive

question

_____ use another manufacturer's already established channel and are used most often when the creation of marketing channel relationships may be expensive and time-consuming. a) Relationship channels b) Strategic channel alliances c) Multiple distribution systems d) Nontraditional channelization e) Reverse channels

answer

b) Strategic channel alliances

question

______ is a clash of goals and/or methods that occurs between different levels in a marketing channel, most typically between the manufacturer and wholesaler or between the manufacturer and retailer. a) Arms-length relationship b) Horizontal conflict c) Channel power d) Vertical conflict e) Channel partnering

answer

d) Vertical conflict

question

The two major categories of communications are: a) direct and indirect. b) informative and persuasive. c) long term and short term. d) mass and interpersonal. e) verbal and nonverbal.

answer

d) mass and interpersonal.

question

When Castrol Syntec, a premium motor oil, sought a new way to reach its young, car-passionate audience, the brand found its mark with video games. In its first-ever attempt at in-game advertising, Castrol Syntec found a way to show consumers (in a virtual world) the brand's power and performance. In the communication process, the game served as a(n) _____ for transmitting the message. a) decoder b) channel c) encoder d) sender e) receiver

answer

b) channel

question

Innovyx is an email marketing service provider. It has a new ad campaign aimed at changing negative perceptions of email. The ads explain how much cheaper email advertising is than traditional advertising and what a high return on investment it can generate if used properly. Finally, the message ends by suggesting that companies wanting to promote their products give email a chance to show what it can do. This promotion has the task of: a) rewarding. b) suppressing. c) reminding. d) informing. e) persuading.

answer

e) persuading.

question

M&M's famous slogan, "Melts in your mouth, not in your hand," is an example of a(n): a) basis for lifestyle strategy. b) basis for comparative advertising. c) unique selling proposition. d) promotional mix. e) advertising objective.

answer

c) unique selling proposition. A unique selling proposition is a desirable, exclusive, and believable advertising appeal selected as a theme for an advertising campaign.

question

Which type of consumer sales promotion rewards loyal consumers for making multiple purchases of a particular good or service? a) A premium program b) An 80/20 program c) A continuity program d) A frequent buyer program e) A net worth program

answer

d) A frequent buyer program These are also called loyalty programs.

question

Angela and Dominic own Cincy by the Slice pizzeria. They are interested in keeping track of the number of mentions their store receives on sites like Twitter and Facebook, but they are unsure of which steps to take next. Which of the following resources would best meet their needs? a) A listening platform with key word report capabilities b) A social customer relationship management system c) Web analytics software d) An insight platform that offers online focus group solutions e) An advanced customer database with predictive application

answer

a) A listening platform with key word report capabilities Such a platform would allow the organization to track discussions, understand sentiment, and identify influencers to improve overall marketing strategy. See Exhibit 1 in Chapter 18.

question

Cutting costs is the best way to maximize profitability.

answer

FALSE

question

Willingness to pay is a way to measure demand elasticity.

answer

TRUE

question

Assume a firm sells 1M units of its product for $10 and has a 30% gross profit margin ($3). Cutting the price to $9.50 might stimulate unit sales by 10%. Will the assumed increase in sales volume offset the decrease in margin? a) No, the increase in sales will not offset the decrease in margin. b) Yes, the increase in sales will offset the decrease in margin due to increased demand. c) There is no way to tell without knowing variable and fixed costs.

answer

c) There is no way to tell without knowing variable and fixed costs. A typical argument for lowering price is to increase volume, but this is often a poor financial tradeoff. The firm is not addressing costs by cutting price. In this case, cutting price from $10 to $9.50 raises sales volume from 1M units to 1.1M units but decreases margin from $3M to $2.75M.

question

What is the unit contribution rounded to whole cents? (Do not include the $ symbol - just a 2 digit decimal number)

answer

$0.51, if rounded per the instructions. Retail price is $1.20 and retail margin is $0.42 (35%) so the wholesale selling price (WSP) is $0.78 (this is the price to the retailer). We're given that the wholesale margin is 11.5% (or $0.09) so the manufacturer's selling price (MSP) is $0.69. Now we can back out manufacturing cost of $0.08 (given), shipping of $0.03 (given) and the sales commission of $0.069 (10% of MSP). That makes contribution of $0.511, rounded to $0.51.

question

What is the break-even point in whole units? (Do not include commas - just the whole number.)

answer

If you round to whole pennies as requested in #1, then the answer should be 3,019,608. Since we cannot make a partial unit the correct answer is one unit about a partial, even if the partial unit is very small. Total fixed costs are $1,540,000/year ($950,000 manufacturing, $550,000 advertising and $40,000 for product management). $1,540,000 / $0.51 = 3,019,608 units.

question

What market share, as a percentage, is needed to break even? (Enter your answer as a rounded 2 digit whole number, without the % symbol).

answer

The correct answer is 17%. 3,019,608 units / 18,000,000 units (given market size) = 16.78% which rounds to 17%.

question

What is the profit impact in whole dollars? (Do not include commas - just the whole number.)

answer

$479,600 Unit volume is 22% of 18,000,000 (given) which is 3,960,000. Unit contribution is $0.51 (we calculated), so total contribution is $2,019,600. Subtract fixed costs of $1,540,000 to get profit of $479,600.

question

Which of the following statements about yield management systems (YMS) is true? a) The first use of YMS was in the U.S. car industry as it looked for ways to compete with imports. b) YMS eliminate the problem of simultaneous production and consumption from services. c) YMS cannot be used by any other businesses but services. d) YMS are mathematically complex systems to make use of underutilized capacity and reduce the cost of perishability. e) YMS are complex pricing systems used to set equilibrium pricing points.

answer

d) YMS are mathematically complex systems to make use of underutilized capacity and reduce the cost of perishability. YMS was first used in the airline industry, but it is now used by automobile manufacturers to make use of underutilized capacity.

question

Although many factors can influence price, the primary determinants are: a) distribution and promotion strategies. b) costs of manufacturing and distribution. c) demand by the consumer and perceived quality. d) the demand for the good and the cost to the seller. e) stage of the product life cycle and costs to the consumer.

answer

d) the demand for the good and the cost to the seller. The price that managers set for each product depends mostly on two factors: the demand for the good or service and the cost to the seller for that good or service.

question

With value-based pricing: a) additional long-term costs to manufacturers will increase. b) the firm is both customer driven and competitor driven. c) consumers are more concerned about price than quality. d) increased profitability for wholesalers will increase the number of services they are willing to perform. e) the firm is sales driven.

answer

b) the firm is both customer driven and competitor driven The basic assumption is that the firm is customer driven, seeking to understand its customers. Because it is unlikely to be operating as a monopoly, it must also pay attention to what its competitors are doing.

question

Imagine that you are planning a fund raising party for after the symphony, and you need a life-size grand piano cake. Or, you are a developer proposing a new shopping center to a group of investors, and you want to serve a cake shaped like an architectural rendition of the center. Is this impossible? No, you just need to contact Cecilia Villaveces Cakes. She actually built a life-size grand piano for a gala in Macon, Georgia. You can expect to pay anywhere from $75 to $10,000 for one of Cecilia's artistic creations, depending on complexity of design and size. She uses only the best ingredients, and no two cakes are ever quite alike. Although many factors determine the prices charged by Cecilia Villaveces Cakes, the two primary determinants are: a) demand by the consumer and perceived quality. b) stage of the product life cycle and costs to the consumers. c) costs of manufacturing and distribution costs. d) the demand for the good and the cost to the seller. e) distribution and promotion strategies used by the cake maker.

answer

d) the demand for the good and the cost to the seller. If there was reduced demand, then Cecilia would have to lower prices. Also, she must charge for the time, energy, and resources that go into each cake.

question

To help understand why attendance at the team's games was so poor, the Atlanta Falcons used marketing research to gather factual information. The organization used in-game surveys and end-of-season surveys of ticket holders. The gathering of factual statements is an example of marketing research in its _____ role. a) normative b) historical c) predictive d) objective e) descriptive

answer

e) descriptive The three roles of marketing research are descriptive, diagnostic, and predictive. The descriptive function is focused on the gathering of facts to explain the current situation of a market and/or marketing program.

question

Through marketing research, the Boston Symphony Orchestra (BSO) learned it has an older market and is not attracting younger concertgoers. It next conducted marketing research to determine if a social media advertising and engagement campaign they were considering that would be targeted to the younger market would be successful. In its second use of research, BSO employed _____ marketing research. a) predictive b) historical c) descriptive d) objective e) normative

answer

a) predictive The three roles of marketing research are descriptive, diagnostic, and predictive. The predictive function is to address "what if" questions. For example, the predictive role might be focused on what will happen to the sales of a product (or sales of tickets to an event, in this case) if we do something new in our marketing program.

question

The first step in the marketing research process is to: a) analyze the marketplace. b) collect the data. c) specify the sampling plan. d) identify and formulate the problem/opportunity to be studied. e) plan the research design.

answer

d) identify and formulate the problem/opportunity to be studied. See Exhibit 1 in Chapter 9 of your textbook

question

Post Properties is a company that manages apartments in various communities. It is concerned with a glut of apartments in Atlanta, Orlando, and Dallas. Its market researcher begins by examining the rental markets in the Southeast, the history of apartment buildings, local economies, competitive rents, and ownership—all information that was on hand and did not require any new research to locate. The market researcher looked at: a) a statistical analysis. b) secondary data. c) priority databases. d) a closed study. e) primary data.

answer

b) secondary data. Secondary data are data previously collected for any purpose other than the one at hand.

question

_____ specifies the research questions to be answered, how and when the data will be gathered, and how the data will be analyzed. a) The sampling plan b) A secondary data use plan c) The research collaborative plan d) The research design e) An autonomous director

answer

d) The research design This is the function of the research design, and once approved, the project budget is finalized.

question

The most popular method for gathering primary data is _____, in which a researcher interacts with people to obtain facts, opinions, and attitudes. a) observation research b) heuristic oriented c) single-source research d) survey research e) experiments

answer

d) survey research Survey research takes several forms and is the most popular method for gathering primary data.

question

_____ research is the study of human behavior in its natural context, involving observation of behavior and physical setting. a) Experiment b) Survey c) Action-based d) Ethnographic e) Visualization

answer

d) Ethnographic

question

In a study whose purpose is to determine the market for a vitamin that is to be chewed like bubble gum, what is the first question to be answered before a sampling plan is selected? a) Must the sample be representative of the population? b) What is the population or universe of interest? c) Who can perform the actual sampling? d) How large should the sample be in terms of its measurement costs? e) How often should the sample be redesigned?

answer

b) What is the population or universe of interest? Before a sampling plan is chosen, the population of interest must be defined.

question

An intelligence system that helps managers assess their competition and vendors in order to become more efficient and effective competitors is called: a) industrial espionage. b) differential competitive advantage. c) competitive research. d) competitive intelligence. e) an audit.

answer

d) competitive intelligence.

question

A carefully selected group of consumers who agree to participate in an ongoing online dialogue with a particular corporation is known as a(n): a) focus blog. b) webinar. c) web community. d) web-based ethnographic group. e) online focus group.

answer

c) web community.

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