Strategic Marketing Final Exam Review

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Having the product available at the right time and location is which part of the marketing mix?
Place
The group of potential buyers is a:
market
The person who uses the product is the:
Consumer.
Informing, persuading and reminding customers about a good or service is which part of the marketing mix?
Promotion
Products that are not necessities but are simply desired by the consumer are:
wants.
Intangible items that satisfy customer's needs and wants are:
services.
Foster's Grill is a new restaurant that specializes in made-to-order hamburgers. Before the restaurant opened, it
researched other nearby restaurants, its competitors, to ensure it was offering something unique. This is an
example of which marketing philosophy orientation?
market
Polka Dots, a local boutique, wants to offer a new service to its customers. It has equipment to personalize small
gifts and wants to expand to personalize clothing as well. This is an example of which marketing philosophy
orientation?
production
KitchenAid is presenting a program called "Cook for the Cure" that encourages women to host breast cancer
awareness parties while sharing new recipes. From these parties, millions of dollars have been raised for the
Susan G. Komen foundation. This is an example of which marketing philosophy orientation?
societal marketing
McAllisters Deli determined it would like to increase revenues by 13% over the next 18 months. This is example
of which element of a strategic marketing plan?
Marketing objectives
XM and Sirius, two satellite radio providers, decided they would like to merge operations. They notify the proper
agencies of this proposal. This can BEST be classified as which factor that impacts the external marketing
environment?
Political and legal
Home Depot promotes and financially supports Habitat for Humanity, a non-profit homebuilding effort that
provides homes for those in need. This is an example of which form of social responsibility?
Philanthropical
Alan changed jobs three times in the last six years. Each time, he relocated to another state. He can BEST be
classified as which factor that impacts the external marketing environment?
Demographic
Recently, several companies have been required to recall products due to the risk of lead paint. This is BEST
classified as which factor that impacts the external marketing environment?
Political and legal
Anna owns a medical supply company. One of her major clients overpaid its bill, and Anna decided to notify it and
refund the money. This is an example of which form of social responsibility?
Ethical
Andrew works for a local, small, start-up business and only earns $12,000 a year. This is BEST classified as
which factor that impacts the external marketing environment?
Economic
Target collects information at its corporate office about customer returns, names, addresses, and other contact
information. This is an example of which stage in the Customer Relationship Management cycle?
Storing and integrating customer data using information technology
A magazine publisher collects information about a customer's opinions and religion when the customer visits the
company website and subscribes to a free email newsletter. This is an example of which stage in the Customer
Relationship Management cycle?
Capturing customer data based on interactions
Sprint empowers its customer service representatives to offer discounts to long- established customers in order
to solve a problem. This is an example of which stage in the Customer Relationship Management cycle?
Identification of customer relationships
A local hospital contracts with premiere landscaping service to maintain its lawn and gardens. This is an example
of which category of business customers?
Institutions
Pillsbury's Slice and Bake cookie dough targets working moms between the ages of 28 and 42 who are busy and
pressed for time. It places ads for the cookie dough in Working Mother magazine. This is an example of which
factor affecting consumer buying behavior?
Personal
Alex plans to purchase a car. He spends much time researching the various brands, makes and models of cars in
his price range. This is an example of which category of consumer decision making?
Extensive
Christian Louboutin is famous for expensive designer shoes with a red sole. Many celebrities enjoy wearing his
shoes with short dresses to show off the red sole. Ashley decides to buy a pair of these shoes based on this trend.
This is an example of which factor affecting consumer buying behavior?
Social
In the U.S. it is appropriate to greet others by shaking hands. This is an example of which factor affecting
consumer buying behavior?
Cultural
Philosophy markets it holiday body wash and lotion in a candy cane scent in a red, white and pink stripe cylinder
box. The packaging is designed to increase sales during the holiday season. This is an example of which factor
affecting consumer buying behavior?
Psychological
Alesha is familiar with the Citgo brand of gas and purchases from the same gas station each time. This is an
example of which category of consumer decision making?
Routine
Jim typically buys Diet Coke soda. However, friends have started making comments about his boring soda
selection. Jim decides to try a new soda but wants to read all of the nutritional facts before making his choice.
This is an example of which category of consumer decision making?
Limited
Billy wants to purchase a new SUV. After looking at all SUVs, he eliminates all that are not hybrids. He begins to
compare fuel efficiency, seating, safety, and price. What is the NEXT step in the buying decision process for
Billy to take?
Make a purchase decision
Heather normally uses Cover Girl cosmetics, but recently started having problems anytime she wears the makeup.
At the drug store, Heather gathers information about other cosmetics companies and compares them to
Cover Girl. What is the NEXT step in the buying decision process for Heather to take?
Make a purchase Decision
Dunkin Donuts asked suppliers to send in proposals for a new variety of coffee. What is the NEXT step in the
buying decision process for it to take?
Evaluate alternatives
The Charlotte Bobcats are dissatisfied with its current scoreboards in the arena. What is NEXT the step in the
buying decision process for the Bobcats to take?
Conduct an information search
A company is targeting consumers who enjoys running, reading, and eating healthy foods. It is segmenting the
consumer market based on:
psychographics.
A local coffee shop decided to expand its product offerings to compete with larger chain stores. Which target
marketing strategy would BEST serve the local coffee shop?
Concentrated or niche
A company is targeting a middle-aged married couple that earns $105,000 each year. It is segmenting the
consumer market based on:
demographics.
Vitamin Water advertises a product called Revive to runners, claiming that it improves recovery time after a
long run. This is an example of which positioning strategy?
Product differentiation
Lowes is targeting consumers living in the Southwest with a new product offering. It is segmenting the consumer
market based on:
geographics.
Harris Teeter is targeting 35- to 40-year-old, male consumers who earn approximately $42,000 each year. It is
segmenting the consumer market based on:
demographics.
A company is targeting consumers who have not purchased its products for several months. It is segmenting the
consumer market based on:
usage rate.
Coca-Cola advertised its product on a billboard in Los Angeles. This is an example of which target marketing
strategy?
Undifferentiated or mass
Apple Computers is testing a new iPod with frequent travelers at major airports. It is collecting research on
battery life, screen size, and portability. It is using marketing research to:
improve the quality of decision making.
Sharon surveys her sales clerks about the effect of a price increase on a certain product. This is an example of
which characteristic of a marketing decision support system?
Discovery-oriented
PowerAde is developing a new product designed specifically for golfers. It is testing the product in markets
across the Southwest and collecting research on taste, nutrient replenishment, and price. It is using marketing
research to:
improve the quality of decision making.
Zappos Shoes determined it must implement a money-back guarantee and offer free shipping for product returns.
It used marketing research to:
focus on the importance of retaining customers.
Food Lion emails a survey asking customers about the prices they are willing to pay for certain products. It
targets certain surveys to certain markets. Which advantage of using the Internet to conduct marketing research
does this represent?
Personalized questions and data
Ted is a manager at Target. He implements a price change in a product and sees sales increase quickly. This is
an example of which characteristic of a marketing decision support system?
Interactive
Which is NOT a good example of a source of competitive intelligence?
Former employees
Which is NOT a good example of a source of competitive intelligence?
Outdated periodicals
Sticky Fingers Barbecue instantly delivers an online survey to thousands of customers. Which advantage of
using the Internet to conduct marketing research does this represent?
Rapid development and real-time reporting
A local restaurant will interview friends and relatives of the staff to determine the satisfaction of a new menu
item. What step in the marketing research process should it take NEXT?
Collect the data
A local Chick-fil-A owner will interview people referred by frequent customers to determine if a new menu item
will succeed. What step in the marketing research process should it take NEXT?
Collect the data
Sony reviewed and studied all of the findings from the email surveys of recent customers it conducted to
determine the level of customer satisfaction with a recent purchase. What step in the marketing research process
should it take NEXT?
Prepare and present the report
Managers for a local credit union recently discussed their marketing plan. They questioned if the plan was
effective in attracting new customers. What step in the marketing research process should they take?
Identify and formulate the problem/opportunity
A company reviewed and studied all of the findings from the closed-ended questionnaire it used to survey
customers about its radio advertisements. What step in the marketing research process should it take NEXT?
Prepare and present the report
Turtle Wax wrote and delivered its findings from the telephone interviews it conducted about its no-rinse car
wash product. What step in the marketing research process should it take NEXT?
Follow up
A company wants to know if it should change the product offerings in its least popular line. What step in the
marketing research process should it take?
Identify and formulate the problem/opportunity
A company reviewed and studied all of the findings from the regional focus groups it conducted about upcoming
advertisements. What step in the marketing research process should it take NEXT?
Prepare and present the report
A hospital surveyed a random sample of recent patients in order to determine satisfaction levels about the care
they received. What step in the marketing research process should it take NEXT?
Analyze the data
Starbucks will use random customer taste tests in a mall to determine if a new product will sell. What step in the
marketing research process should it take NEXT?
Collect the data
The Charlotte Bobcats recently surveyed season ticket holders about the food selections at the arena. What step
in the marketing research process should it take NEXT?
Analyze the data
State Farm Insurance wrote and delivered its findings from the mall intercept research it conducted to gauge the
effectiveness of its advertising. What step in the marketing research process should it take NEXT?
Follow up
LL Bean conducted telephone interviews with customers that live in the northeastern U.S. about a new winter
outerwear product. What step in the marketing research process should it take NEXT?
Analyze the data
Toyota decided that its advertisements are not reaching the intended target market. What step in the marketing
research process should it take NEXT?
Plan the research design and gather primary data
Keebler decided it will use the mall intercept technique to conduct research about a change in a cracker's taste.
What step in the marketing research process should it take NEXT?
Specify the sampling procedures
Nortel determined that it will use surveys of current customers to conduct research about a new product offering.
What step in the marketing research process should it take NEXT?
Specify the sampling procedures
S.C. Johnson reviewed and studied all of the findings from the telephone interviews it conducted about its Pledge
Duster Plus product. What step in the marketing research process should it take NEXT?
Prepare and present the report
Allstate Insurance recently used an open-ended questionnaire to survey customer's opinions about its product
offerings. What step in the marketing research process should it take NEXT?
Analyze the data
Subway determined it will use taste-tests at a local football game to gauge customer reactions for a new type of
sub. What step in the marketing research process should it take NEXT?
Specify the sampling procedures
A company determined that a product in its best product line is not meeting sales expectations. What step in the
marketing research process should it take NEXT?
Plan the research design and gather primary data
Apple Computers used telephone interviews of recent business purchasing managers to conduct research about
its customer service policies. What step in the marketing research process should it take NEXT?
Analyze the data
Mattel wrote and delivered its findings from online user surveys about its product offerings. What step in the
marketing research process should it take NEXT?
Follow up
Crest is a popular, well-branded product. This is an example of which type of branding?
Individual
A local car repair shop is known for its service, dependability, and accuracy. This is an example of which
characteristic of service quality?
Reliability
Sony stopped manufacturing its Walkman brand cassette tape players due to obsolescence. This is an example of
which type of product adjustment?
Contraction
Hilton Hotels sends occasional emails to recent guests to inform them of special events at its hotels. This is an
example of which service marketing mix component?
Promotion
Pepsi introduced Diet Pepsi Max to appeal to the energy drink target market. This is an example of which type
of product adjustment?
Extension
Alex took his wife to the best restaurant in town for their anniversary. This purchase is an example of which type
of consumer product?
Specialty
Dell Computers prides itself on its ability to provide customer service and solve the problem the first time a
customer calls. This is an example of which characteristic of service quality?
Reliability
State Farm Insurance protects a person's house against loss from fire. This is an example of which characteristic
of a service?
Intangible
The Durham Bulls offers mini-packages of tickets to customers at a reduced cost when compared to individual
tickets. This is an example of which service marketing mix component?
Price
Amber just turned 17. She has a car but needs to purchase insurance. This purchase is an example of which type
of consumer product?
Unsought
JVC Corporation makes and sells televisions, speakers, DVD players, and other electronic devices. JVC is an
example of which type of branding?
Family
The popular racing series, NASCAR, is a blend of brands for the benefit of both companies. This is an example
of which type of branding?
Co-branded
Ted bought a new lawn mower at a home improvement store. This item is an example of which type of consumer
product?
Shopping
Diet Coke is a popular, well-branded product. This is an example of which type of branding?
Individual
Due to low sales volume, Wendy's eliminated its Frescata Sandwich selection from its menu. This is an example
of which type of product adjustment?
Contraction
Coca-Cola decided to change its PowerAde product to improve the taste. This is an example of which type of
product adjustment?
Modification
A tax preparation firm offers free electronic filing for new customers. This is an example of which service
marketing mix component?
Price
National Car Rental offers its Emerald Club members the opportunity to rent a car online and avoid the customer
service desk at a local rental facility. The customer simply chooses a car, checks in with the parking lot attendee
to provide his/her driver's license verification, and drives away. This is an example of which level of relationship
marketing?
Structural social financial
Honda traditionally changes a few items on its Accord brand before the style and design is changed, and the new
model is introduced to the market. This is an example of which type of product adjustment?
Modification
Sprint sells digital and cellular phone communications, email, and text messaging. This is an example of which
service marketing mix component?
Product/service
The package of a popular box of cereal describes calories, fiber content, and carbohydrate intake. This is an
example of which part of packaging?
Label
Bill bought milk and flour at the grocery store. These items are an example of which type of consumer product?
Convenience
Rainforest Cafe mails a newsletter informing customers of new entrees at its restaurants. This is an example of
which service marketing mix component?
Promotion
UPS delivers packages for a customer. This is an example of which service marketing mix component?
Product/service
Apple decided to introduce and heavily market a new iPod model every year. The product is in which stage of the
product life cycle?
Maturity
Nabisco is in the process of researching consumer reaction to a new cookie. The company is in which step of the
new product development process?
Test marketing
Chick-fil-A decided to expand the distribution of its newest sandwich due to a high rate of sales and profitability.
The product is in which stage of the product life cycle?
Growth
Polo is in the process of evaluating consumer preferences for a new line of men's cologne. The company is in
which step of the new product development process?
Test marketing
Apple evaluated the sales and costs of developing a new iPod music player and assigned staff to build a
prototype. The company is in which step of the new product development process?
Development
Companies often solicit suggestions for new products from customers. This is an example of which step in the
new product development process?
Idea generation
Caribou Coffee determined that a new coffee drink will align perfectly with the company's existing product line.
It has begun to evaluate the costs and profitability for the item. The company is in which step of the new product
development process?
Business analysis
Television manufacturers have slowed the production of analog televisions due to federal regulations about
HDTV. This product is in which stage of the product life cycle?
Television manufacturers have slowed the production of analog televisions due to federal regulations about
HDTV. This product is in which stage of the product life cycle?
A soft drink company receives suggestions every day about new flavors. The company then evaluates these
ideas to see how they align with the company's mission. The company is in which step of the new product
development process?
Idea screening
After raising the price of its 32 oz bottle of water by fifteen percent, managers for Vitamin Water noticed sales
decreased by twenty percent. This is an example of which factor affecting economic demand and the prices for a
product in the marketplace?
Elasticity of demand
City Convenience Store has a cost of $1.25 per sandwich. The owner adds an additional 60% to cover costs,
bringing the total retail price to $2. This is an example of which cost determinant of price?
Markup
Super Pizza reduced prices because a large, chain pizza maker opened a block away. This is an example of
which determinant of price?
Competition
A local clothing store has chosen to price products so that the revenues will be as high as possible. This is an
example of which type of pricing objective for a company?
Profit-oriented
Pharmaceutical companies always price a new drug high when it first enters the market to pay for research and
development costs. This is an example of which determinant of price?
Stage in the product life cycle
The owner of the Biltmore Bakery has determined he/she should raise the price of muffins because the product
sells out before noon every day. This is an example of which factor affecting economic demand and the prices
for a product in the marketplace?
Demand
A local branch of a chain sandwich franchise closed its business. A locally owned sandwich store decided to
increase its prices by ten percent. This is an example of which determinant of price?
Competition
The Pet Superstore receives dog food from a manufacturer for $10 per bag. The price it charges customers is
$20 per bag. This is an example of which cost determinant of price?
Keystones
Krispy Kreme Donuts rapidly expanded its number of business locations in the late 1990s. The company set its
prices in the new markets with the goal of increasing the percentage of the market it served. This is an example
of which type of pricing objective for a company?
Sales-oriented
The owner of Wally's Computers determined the costs of products to be $5000 per month, and sales and
operating costs are $1000 per month. In order to cover costs, he/she has determined they will need to sell 12
computers at $500 each ($6000 total sales). This is an example of which cost determinant of price?
Break-even
When Apple introduced the iPhone, customers waited in line for days for the chance to purchase one of the
innovative products regardless of price. This is an example of which factor affecting economic demand and the
prices for a product in the marketplace?
Demand
After the major holiday season ends in late December, most retailers will lower prices in an attempt to sell the
maximum amount of products no longer sought by consumers. This is an example of which type of pricing
objective for a company?
Sales-oriented
Heating contractors offer customers twenty percent off their bill if they schedule the work to be done during
July. This is an example of which type of pricing adjustment?
Discounts
Creative Music is a new online music store. The owners have decided to charge ten-cents less per song than
iTunes and Yahoo Music in order to gain market share. This is an example of which type of pricing strategy?
Penetration
Dollar General Stores offer every item in stock in one-dollar increments. For example, a notebook is $1,
toothpaste is $2, etc. This is an example of which pricing tactic?
Unique or other pricing tactics
Samsung Televisions introduced a high-end 50" LCD to the market, setting the price well above that of other
manufacturer's. This is an example of which type of pricing strategy?
Skimming
Overstock.com charges customers $2.95 shipping per item, regardless of the destination. This is an example of
which pricing tactic?
Geographical pricing
After Halloween, retailers greatly reduce the price of candy and costumes. This is an example of which type of
pricing adjustment?
Discounts
Blockbuster Video not only rents, but also sells DVDs. Usually a customer can purchase one DVD for $14.99 or
three DVDs for $30. This is an example of which pricing tactic?
Unique or other pricing tactics
Preston Hardware offers industrial customers five percent off their bill if they pay within ten days. This is an
example of which type of pricing adjustment?
Discounts
Lowes Home Improvement offers its customers a voucher to cover the cost of installation of a room of carpet.
After installation, the customer must mail the voucher to the home office with a copy of the sales receipt. This is
an example of which type of pricing adjustment?
Rebates
The owner of the Raleigh Steakhouse will frequently visit other steakhouses to determine if prices are too high
or too low and, if so, adjust prices to be somewhere in the middle. This is an example of which type of pricing
objective for a company?
Status-quo
Ted's Garage purchases more oil and filter products from a manufacturer than another garage down the street.
As a result, Ted's Garage pays less for the products than the competitor. This is an example of which legal or
ethical issue in regards to pricing?
Price discrimination
John went into a local jewelry store and purchased a new watch. Later that day, he ran into a friend that had just
purchased the same watch at the same store but paid $25 less. This is an example of which legal or ethical issue
in regard to pricing?
Price discrimination
Planter's purchases promotional space in Southern Living to convey its message to a target market. This is an
example of which component of the promotional mix?
Advertising
Gatorade offers a free case of product to retailers in an effort to improve the chances it will sell a new product.
This is an example of which factor affecting the promotional mix the MOST?
Push and pull strategies
John is a sales associate with Belk's. He is responsible for informing and persuading customers to make a
purchase. This is an example of which component of the promotional mix?
Personal selling
Craftsman has recently introduced a new socket set. This is an example of which factor affecting the
promotional mix the MOST?
Stage in the PLC
General Mills advertises its new breakfast cereal in local Sunday newspapers. This is an example of which
component of the communication process?
Message transmission
A local company was recognized in the newspaper for helping Habitat for Humanity by encouraging its workers
to donate time on the weekends to build houses. This is an example of which component of the promotional mix?
Public relations
Crest toothpaste mails coupons to homeowners twice a year and frequently advertises during the dinner hours
for most families. This is an example of which goal of promotion?
Remind
The target market for a new car is classified as married couples, middle-aged, and middle- income wage
earners. This is an example of which component of the communication process?
Receiver and decoding
Campbell's Soup is advertising a new flavor of soup on television. Its goal is to let as many potential consumers
know about the product as possible. This is an example of which goal of promotion? potential consumers know
about the product as possible. This is an example of which goal of promotion?
Inform
Crest sent a single-use package of a new toothpaste product to every household in Wilmington. This is an
example of which type of consumer sales promotion?
Sampling
Hyundai Motor Company aired an advertisement comparing its company to other major brands. This is an
example of which major type of advertising?
Institutional
The NC Optometric Society worked with state legislators and other government officials to pass a law requiring
all public school students to have an eye exam. This is an example of which function of a public relations
department?
Lobbying
Be-Tween offers specialty clothing, gifts, and accessories to girls between ages 10 and 16. Which style of
communication between company and customer would be MOST beneficial?
Personal selling
Motion Industries sells bolts, washers, and other industrial parts to hundreds of manufacturers. Which style of
communication between company and customer would be MOST beneficial?
Advertising and sales promotion
Joan determined that Bill wants to buy a new car with a five-star crash rating, seating for six, and doors that
open automatically. This is an example of which step in the selling process?
Approaching the customer and probing needs
A local pizza manufacturer gave away free 4-inch pizzas at a grocery store on a Saturday afternoon. This is an
example of which type of consumer sales promotion?
Sampling
Kevin uses the telephone directory to call potential customers for his company. This is an example of which step
in the selling process? potential customers for his company. This is an example of which step in the selling
process?
Generating leads
Chick-fil-A gives one randomly selected person a chance to make a field goal kick and win $1,000,000. This is
an example of which type of consumer sales promotion?
Contest or sweepstakes
Kevin's manager has asked him to boost his sales to industrial manufacturers by ten percent in the next two
years. This is an example of which responsibility or decision of a sales force manager?
Define sales goals and processes
Sam's Wholesale allows manufacturers to give free samples and highlight the products' features and benefits to
customers in its frozen foods section. This is an example of which type of trade/industrial/business sales
promotion?
Store demonstrations
Subway encourages consumers to "Eat Fresh!" This is an example of which creative decision made about
advertising?
Developing and evaluating advertising appeal
Hal informed his sales staff that the person with the highest sales margin during the month of May will receive
two free airline tickets. This is an example of which responsibility or decision of a sales force manager?
Compensation and motivation
Proctor & Gamble promotes its Tide brand during NASCAR races. This is an example of which major type of
advertising?
Product
Lisa is a sales manager for Pfizer. She has been asked to make a presentation to a local hospital about the
products her company offers. This is an example of which step in the selling process?
Developing and proposing solutions
Chevrolet advertised its Malibu brand on Yahoo. This is an example of which major type of advertising?
Product
Every year, thousands of home builders from across the nation travel to Orlando in February to see the latest
products and services offered by manufacturers. This is an example of which type of trade/industrial/business
sales promotion?
Meetings, conventions, and trade shows
Paul is a sales manager for Verizon Wireless. He is constantly talking with sales representatives from other
industries to persuade them to work for Verizon. This is an example of which responsibility or decision of a sales
force manager?
Recruitment and training
Daniel recently sold a new car to Wanda. As usual, he sends a gift basket and a note thanking her for the
purchase and reminding her of the maintenance schedule. This is an example of which step in the selling
process?
Following up
Tom was asked by his manager to review a retail customer's account and suggest what products might improve
the sales margin. This is an example of which step in the selling process?
Developing and proposing solutions
Energizer Battery Company traditionally uses its "Energizer Bunny" to help consumers understand the value of
the Energizer brand. This is an example of which creative decision made about advertising?
Executing the message through advertising
Each year, Food City grocery store buys the naming rights to the NASCAR race at Bristol Motor Speedway.
This is an example of which public relations tool?
Sponsorships
Coca-Cola recognized a need for more sales staff in the coastal areas of North Carolina during peak summer
times. This is an example of which responsibility or decision of a sales force manager?
Determine sales force structure
Sam works at Best Buy in the television department. He questions the customer in order to match his/her
desires with the features, technical specifications, and warranties of a brand of television the store sells. This is
an example of which step in the selling process?
Approaching the customer and probing needs
Cathy purchased a Dell computer for the first time. As part of the purchase, Dell provided an in-home teacher
to help her learn the new features of the computer. This is an example of which public relations tool?
Consumer education
Jim determined that his company should use local newspapers to target all of the consumers in a local market.
Which important decision about media did he make?
Type
Oprah Winfrey has a book of the month club. The author traditionally appears on the Oprah show and discusses
the book. This is an example of which public relations tool?
Product placement
While at a Rotary Club meeting, Ted met an owner of a local restaurant. Ted informed the owner about the
many different brands of glassware and dishes his company sold. This is an example of which step in the selling
process?
Qualifying leads
Costco Wholesale frequently offers a flat screen television for sale that requires the customer to purchase the
product and mail-in proof-ofpurchase to receive cash back. This is an example of which type of consumer sales
promotion?
Coupon and rebate
Alex is a member of the local chamber of commerce and attends meetings frequently. He spends most of his
time talking with others about his company and its products. This is an example of which step in the selling
process?
Generating leads
When customers get a prescription filled at Target's pharmacy, the pharmacist will ask the customer if they
have any questions and include a flyer with information containing when and how the prescription should be
administered. This is an example of which public relations tool?
Consumer education
A local company recently issued a press release that it would be increasing salaries of its staff by 10%. This is
an example of which function of a public relations department?
Employee and investor relations
Harris Teeter offers customers the opportunity to enroll in its VIC system and accrue points redeemable for a
free turkey at Thanksgiving. This is an example of which type of consumer sales promotion?
Loyalty or frequency program
Pepsi ran a promotion at a local college football stadium and gave away free samples of its latest product. This
event attracted several members of the local media. This is an example of which public relations tool?
New-product publicity
Lowes Home Improvement sells lumber, plumbing supplies, and lawn equipment. Which style of communication
between company and customer would be MOST beneficial?
Advertising and sales promotion
John is a sales representative at a local Land Rover dealership. He is aware that the prices for his product are
higher than other manufacturers, but is always quick to point out that safety and durability are central to Land
Rovers mission. This is an example of which step in the selling process? process?
Handling objections
Bill has been working with a customer for over 20 minutes and asks, "Which color iPod would you like to
purchase?" This is an example of which step in the selling process?
Closing the sale
General Mills frequently teams with local newspapers to deliver advertisements to customers with an offer to
take $1.00 off any single box of cereal in the local grocery store. This is an example of which type of consumer
sales promotion?
Coupon and rebate
After selling 25 iPods, a salesperson receives an iPod car charger from the manufacturer. This is an example of
which type of trade/industrial/business sales promotion?
Free merchandise
Nationwide Insurance Company is the sponsor for the second-tier NASCAR racing series. This is an example of
which major type of advertising?
Institutional
Ride Makerz is a unique interactive store where customers can custom build their own remote control toy car or
truck. Which style of communication between company and customer would be MOST beneficial?
Personal selling
When customers purchase a Land Rover, they are given the opportunity to learn and test their skills and
abilities on the Land Rover Driving Course. This is an example of which public relations tool?
Consumer education
Claudia works for IBM. She receives a set income each year for meeting her sales goals. This is an example of
which responsibility or decision of a sales force manager?
Compensation and motivation
Bank of America purchased the naming rights to a local sports event in North Carolina. This is an example of
which major type of advertising?
Institutional
ExxonMobil announced to its sales staff that it must increase revenues by six percent over the next year. This
is an example of which responsibility or decision of a sales force manager?
Define sales goals and processes
Paul sells wheelchairs to nursing care facilities. His sales territory is located in southern Florida. This is an
example of which responsibility or decision of a sales force manager?
Determine sales force structure
Hilton Hotels rewards customers for spending 16 nights in a Hilton brand hotel. The customer can chose to
receive free hotel nights, airline tickets, or car rentals. This is an example of which type of consumer sales
promotion?
Loyalty or frequency program
Fox Broadcasting promotes its popular television program "American Idol" at various times during the
weekend. This is an example of which major type of advertising?
Product
Jill received a public service award from a local company. The company sent a notice to the local television
stations highlighting the award and recipient. This is an example of which function of a public relations
department?
Press relations
Best Buy offers customers the opportunity to receive coupons or cash back on purchases by registering
personal information and agreeing to receive promotional ads. This is an example of which type of consumer
sales promotion?
Loyalty or frequency program
FedEx paid a fee to the Orange Bowl to purchase the exclusive naming rights to its bowl game, now named the
FedEx Orange Bowl. This is an example of which public relations tool?
Sponsorships
Apple released a notice about its new music and video unit. This is an example of which function of a public
relations department?
Product publicity
Publisher's Clearinghouse offers customers a chance to become a millionaire if the customer provides personal
information and agrees to receive promotional ads. This is an example of which type of consumer sales
promotion?
Contest or sweepstakes
When Microsoft Office 2007 first arrived in the market, Microsoft sent representatives to local retailers to help
store employees understand all of the features and benefits of the product. This is an example of which type of
trade/industrial/business sales promotion?
Training
John decided to purchase a bedroom set from Rooms-to-Go online. He visited the website, found the product he
desired, and made the purchase using his credit card. This is an example of which logistical component of the
supply chain?
Order processing
A customer can go online and purchase a computer from Dell and have it shipped to his/her home within a few
days. This is an example of which marketing channel structure?
Consumer products
Godiva Chocolate has an arrangement with Coca-Cola to distribute its Mocha blends of coffee through its
connections with local convenience stores. This is an example of which marketing channel structure?
Alternative channel arrangements
A major retailer receives all of its products for resale at one central location and uses its own fleet of trucks to
deliver those products to regional distribution centers. The products are then delivered to retail outlets via local
delivery agents. This is an example of which logistical component of the supply chain?
Transportation
Starbucks is interested in distributing a new coffee drink in the northeastern U.S. This is an example of which
factor affecting channel choice?
Market
Progress Energy sells electricity to customers. When a customer turns on the lights in the house, the electricity
flows from Progress Energy to the house via electrical wires and other technical components. This is an example
of which logistical component of the supply chain?
Transportation
Old Navy allows customers to purchase the same product online or in its retail store. This is an example of
which marketing channel structure?
Alternative channel arrangements
GE began developing and manufacturing a set of inexpensive lights to be used in most homes during the
holidays in December. GE is warehousing the product in anticipation of consumer demand in November and
December. In this scenario, channel members are affecting the distribution process by:
overcoming discrepancies.
Sara Lee Corporation only orders the raw materials it needs for production over the next week, to ensure fresh,
quality products. This is an example of which logistical component of the supply chain?
Production scheduling
Land Rover will only allow Land Rover dealerships to sell its new SUVs. This is an example of which level of
distribution intensity?
Exclusive
Christian Louboutin offers shoes with a trademark red sole. The company only offers its products in a few
Neiman Marcus and Nordstrom locations, as well as other exclusive boutiques. This is an example of which
level of distribution intensity?
Selective
SUPERfeet Premium Shoe Insoles are only sold at specialty retailers in each city. This is an example of which
level of distribution intensity?
Selective
Motion Industries provides parts and safety equipment from suppliers to local manufacturers. This is an
example of which marketing channel structure?
Business or industrial products
Bill works for the Piggly Wiggly Grocery distribution center. His role is to check all of the orders from
manufacturers and store them in the correct location in the facility. This is an example of which logistical
component of the supply chain?
Warehousing and materials handling
Dunkin Donuts distributes its coffee through its retail stores, grocery stores, and now wholesale clubs. This is
an example of which level of distribution intensity?
Intensive
Costco sells groceries, mattresses, and computers. It can be classified as which major type of retail operations?
Discount store
Chuck's Sports Memorabilia sells baseball cards, autographed footballs, and NASCAR driver uniforms on the
Internet. It can be classified as which type of retail operation?
Nonstore retail
Sears carries cosmetics, clothing, and lawn and garden tools. Sears can be classified as which major type of
retail operations?
Department store
Olive Garden sells salads, pasta meals, and desserts. It can be classified as which major type of retail
operations?
Restaurant
Dunkin Donuts allows individuals to build and operate a Dunkin Donuts store for a fee. This can be classified as
which major type of retail operation?
Franchise
Dippin' Dots Ice Cream uses vending machines in malls, office buildings, and theme parks to sell its product. It
can be classified as which type of retail operation?
Nonstore retail
Albert's Designer Stationary sells greeting cards, letterhead, and wedding invitations. It can be classified as
which major type of retail operations?
Specialty store
CVS focuses its product sales on prescription medicines, greetings cards, and cosmetics. CVS can be classified
as which major type of retail operations?
Drugstore
Han Dee Hugo carries soft drinks, water, candy, and automotive fuel. It can be classified as which major type of
retail operations?
Convenience store
Dove soap released a new product designed to relieve symptoms of people who suffer from severe skin
allergies into the market. This is an example of which external environmental factor affecting companies?
Demographics
Legend says that Chevrolet struggled to sell the Nova brand in Latin America in the late 1960s due to the
translation of the word Nova. This is an example of which external environmental factor affecting companies?
Cultural
In 2004, the European Union expanded allowing citizens in Poland to purchase goods from Italy without
exchanging currency or paying a customs duty. This is an example of which external environmental factor
affecting companies?
Political and legal considerations
In the European Union, workers are free to travel and live in any of the other 24 member countries without
losing citizenship or rights. This is an example of which external environmental factor affecting companies?
Political and legal considerations
The CAFTA allows companies in Mexico to purchase components manufactured in Guatemala without a tariff.
This is an example of which external environmental factor affecting companies?
Political and legal considerations
In the late 1990s, fifteen countries in Europe agreed to open their borders to trade freely with each other. This
is an example of which external environmental factor affecting companies?
Political and legal considerations
In the early 1990s, Canada, the U.S., and Mexico agreed to open the borders and ease restrictions on
import/exporting. This is an example of which external environmental factor affecting companies?
Political and legal considerations
A major cellular phone provider decided to introduce a phone with larger buttons, more volume control, and
extended battery life to appeal to the 65-plus age market. This is an example of which external environmental
factor affecting companies?
Demographics
Construction companies have to transport building materials by boat to build new hotels in the Bahamas. This is
an example of which external environmental factor affecting companies?
Natural resources
Before entering a new market in Canada, a furniture manufacturer sends its staff to determine the current
trends of the target market. This is an example of which external environmental factor affecting companies?
Cultural
General Mills introduced a new breakfast bar targeted to the Hispanic market. Before developing the bar, it
test-marketed several flavors to ensure the product's success. This is an example of which external
environmental factor affecting companies?
Cultural
Currently, U.S. companies are not allowed to sell products in Cuba due to trade restrictions. This is an example
of which external environmental factor affecting companies?
Political and legal considerations
When ABC Computers imports components from a Chinese-based company, the U.S. government charges the
Chinese manufacturer a tax. This is an example of which external environmental factor affecting companies?
Political and legal considerations
Russia is the world's largest importer of cane sugar because it lacks the ability to produce enough internally to
meet its consumers' needs. This is an example of which external environmental factor affecting companies?
Natural resources
An exclusive clothing store targets 35 to 60 year-old males with an average annual income of at least $90,000.
This is an example of which external environmental factor affecting companies?
Demographics
In order to bring an automobile into the U.S. for resale, a Japanese-based company must pay the U.S.
government a tax. This is an example of which external environmental factor affecting companies?
Political and legal considerations
A designer jean manufacturer charges a much higher price in the U.S. than in Russia. This is an example of
which external environmental factor affecting companies?
Economic and technological development
In 2005, the U.S. entered a trade agreement with Honduras. The result is a reduction in tariffs on exports to
Honduras. This is an example of which external environmental factor affecting companies?
Political and legal considerations
Bed, Bath, and Beyond decided to build 30 stores in Russia. This is an example of which entry strategy option
for the global marketplace?
Direct investing
Sara Lee Bakery imports sugar from Mexico to use in its production of cheesecake, pound cake, and other
dessert products at its Wales facility. This is an example of which global marketing mix element?
Product
Cobalt Toothpaste has an arrangement with a production facility in Switzerland to manufacture, package, and
distribute the Cobalt brand. This is an example of which entry strategy option for the global marketplace?
Contract manufacturing
A manufacturer in Great Britain agreed to pay Disney three percent of its retail sales in order to use the
Mickey Mouse trademark on stuffed toys for resale in Europe. This is an example of which entry strategy
option for the global marketplace?
Licensing and franchising
Ford decided to sell its new brand of hybrid car directly to consumers in France. This is an example of which
entry strategy option for the global marketplace?
Exporting
Blue Cross and Blue Shield have decided to use an Internet advertisement targeted at the Latino market to
make consumers aware of its new health plan offerings. This is an example of which global marketing mix
element?
Promotion
A popular country music group appeared on local television and radio programs before starting a tour in
England. This is an example of which global marketing mix element? f which global marketing mix element?
Promotion
A medical manufacturing firm sold 250 hospital beds to a new hospital facility in China. This is an example of
which entry strategy option for the global marketplace?
Exporting
A major record label decided to pay FedEx to deliver its cds to retail stores in Australia. This is an example of
which global marketing mix element?
Place
A U.S.-based automobile manufacturer decided to build a production facility in Mexico and intends to sell them
exclusively in that country. This is an example of which entry strategy option for the global marketplace?
Direct investing
When entering a foreign market for the first time, a company may choose to charge less for its products than in
an established market. This is an example of which global marketing mix element?
Price
A French fragrance manufacturer planned to build 50 retail stores in the U.S. This is an example of which entry
strategy option for the global marketplace?
Direct investing
A major U.S. manufacturer of handbags built a production facility and ten retail stores in Italy. This is an
example of which entry strategy option for the global marketplace?
Direct investing
Keebler introduced a lower calorie brand of Fudge Stripes cookie into the German market. This is an example
of which global marketing mix element?
Product
To help make the European consumer more aware of its product, the NFL is scheduling a regular-season
football game in countries in Europe for the next several years. This is an example of which global marketing
mix element?
Place
A manufacturer in Canada agreed to pay Major League Baseball six percent of its retail sales in order to use
the MLB trademarks baseballs and bats for resale. This is an example of which entry strategy option for the
global marketplace?
Licensing and franchising
Many Japanese tourists to the U.S. purchase jeans, shoes, and other apparel to take home because the
exchange rate makes the products more affordable. This is an example of which global marketing mix element?
Price
Proctor & Gamble hired a local shipping firm in India to deliver its retail products to local stores. This is an
example of which global marketing mix element?
Place