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Principles of Marketing-CLEP

Terms in this set (121)

A manufacturer of car batteries, who has been
selling through an automotive parts wholesaler
to garages and service stations, decides to sell
directly to retailers. Which of the following will
necessarily occur?
The wholesaler's marketing functions will
be shifted to or shared by the manufacturer
and the retailer.
Which of the following strategies for entering
the international market would involve the
highest risk?
Direct investment
For a United States manufacturer of major
consumer appliances, the most important
leading indicator for forecasting sales is
housing starts
Which of the following statements about the
European Union is true?
The EU eliminates trade barriers among
member countries.
In contrast to a selling orientation, a marketing
orientation seeks to
satisfy the needs of targeted consumers
at a profit
All of the following are characteristics of
services EXCEPT
inflexibility
A fertilizer manufacturer who traditionally
markets to farmers through farm supply dealers
and cooperatives decides to sell current products
to home gardeners through lawn and garden
shops. This decision is an example of
market development
A manufacturer who refuses to sell to dealers its
popular line of office copiers unless the dealers
also agree to stock the manufacturer's line of
paper products would most likely be guilty of
which of the following?
Tying contracts
Which of the following is an intermediary in the
distribution channel that moves goods without
taking title to them?
Agent
In which of the following situations is the
number of buying influences most likely to be
greatest?
A computer manufacturer is building a new
headquarters and is trying to choose a line
of office furniture
Which of the following best describes the
process of selecting target markets in order
to formulate a marketing mix?
Market segmentation
Cooperative advertising is usually undertaken by
manufacturers in order to
secure the help of the retailer in promoting a
given product
A marketer usually offers a noncumulative
quantity discount in order to
encourage users to purchase in large
quantities
Which of the following statements about
secondary data is correct?
Secondary data are usually available in a
shorter period of time than primary data
Missionary salespersons are most likely to do
which of the following?
Describe drugs and other medical supplies
to physicians
The demand for industrial goods is sometimes
called "derived" because it depends on
demand for consumer goods
Behavioral research generally indicates that
consumers' attitudes
do not change very easily or quickly
A channel of distribution refers to the
sequence of marketing intermediaries from
producer to consumer
A major advantage of distributing products by
truck is
accessibility to pick-up and delivery
locations
If a firm is using penetration pricing, the firm is
most likely trying to achieve which of the
following pricing objectives?
Market-share maximization
If a company decides to allocate more resources
to personal selling and sales promotion by its
resellers, which of the following strategies is it
using?
Push strategy
Marketing strategy planning includes
selecting a target market and developing the
marketing mix
A brand that has achieved brand insistence and
is considered a specialty good by the target
market suggests which of the following
distribution objectives?
Exclusive distribution
Market segmentation that is concerned with
people over 65 years of age is called
demographic
The XYZ Corporation has two chains of
restaurants. One restaurant specializes in family
dining with affordable meals. The second
restaurant targets young, single individuals, and
offers a full bar and small servings. The XYZ
Corporation uses which form of targeted
marketing strategy?
Differentiated marketing
The marketing director of a manufacturing
company says, "If my wholesaler exceeds the
sales record from last month, I agree to give him
a paid trip to the Bahamas." This technique is a
form of
sales promotion
Using a combination of different modes of
transportation to move freight in order to exploit
the best features of each mode is called
freight forwarding/intermodal transportation
Which of the following is a major disadvantage
associated with the use of dual distribution
It can cause channel conflict.
The estimated market value of a brand is best
described as brand
equity
Which of the following would be considered a
nonprofit organization?
A homeless shelter that charges a fee for its
services and uses the proceeds for the
upkeep of the shelter
Which of the following approaches for entering
international markets involves granting the rights
to a patent, trademark, or manufacturing process
to a foreign company?
Licensing
Reference groups are more likely to influence a
consumer's purchase when the product being
purchased is
socially visible
Which of the following is true of the product
life cycle?
It is based on the assumption that products
go through distinct stages in sales and profit
performance.
The primary purpose of market segmentation
is to
allocate marketing resources to meet the
needs of specific segments
A marketing expert said that he could have
advertised a brand of soap as a detergent bar
for men with dirty hands, but instead chose to
advertise it as a moisturizing bar for women with
dry skin. This illustrates the marketing principle
known as
product positioning
The process of identifying people or companies
who may have a need for a salesperson's product
is known as
prospecting
Which of the following is a primary
disadvantage of direct marketing?
It tends to have high costs per contact.
A formal statement of standards that governs
professional conduct is called a
code of ethics
Maxine suddenly realizes that she is out of paper
towels. She remembers that she last bought
Max Dri Towels, so she stops at the store and
picks up another roll of Max Dri on her way
home from work. In this example, Maxine uses
what form of information search in her decision
process?
Internal information search
The ability to tailor marketing processes to fit
the specific needs of an individual customer is
called
customization
Which of the following is true of price
skimming?
It calls for relatively high prices to start,
reducing over time
ABC Company agrees to pay a certain amount
of a retailer's promotional costs for advertising
ABC's products. This is an example of
cooperative advertising
To save time and money, a marketing research
team uses data that have already been gathered
for some other purpose. Which type of data is
the team using?
Secondary
Positioning refers to
the perception of a product in customers'
minds
Which of the following best describes members
of a buying center?
Everyone involved in making the purchase
decision
Which of the following most accurately
describes agent wholesalers?
They do not take title to goods that they sell
to other intermediaries.
Which of the following are key characteristics of
services?
Intangibility, perishability, and variability
The growth of service industries is primarily the
result of
increasingly complex and specialized
customer needs
Which of the following is the fastest growing
nonstore retail segment in the United States?
Online retailing
While writing a marketing plan, Melanie
decides that the marketing objective should
be "to increase market share by 5 percent."
A weakness in this objective is that
it does not specify a time period
Which of the following is the first step in the
sales process?
Approach/Prospecting
Which of the following is an example of
business-to-business buying?
be informed
President John F. Kennedy's assertion that
consumers have certain rights led to legislation
that guaranteed all of the following EXCEPT
the right to
bargain
Harmony Households is the largest home
improvement retailer in China. Because of its
size and market power, the firm can insist upon
desired product features, delivery schedules, and
price points from its suppliers. Harmony
Households is
a channel captain
Which of the following is NOT a segmentation
criterion or consideration used for choosing a
target market?
Market accountability
Rachel Terry, regional manager at Wilcon
Solvents, Inc., compares last quarter's sales with
the levels projected in the firm's marketing plan.
She identifies three solvent brands whose sales
are below projections and initiates a series of
inquiries to discover the reasons for the shortfall.
Ms. Terry is engaged in which stage of the
strategic marketing process?
Control
Richard Weiss, SA, is a Swiss watch
manufacturer. One of its two major brands
offers ruggedness, reliability and durability
to active sports enthusiasts. The other offers
elegance and stylishness to fashion conscious
consumers. Which of the following segmentation
approaches is this firm using?
Benefits sought
Compared with agent intermediaries, merchant
intermediaries
take title to the goods they sell
Gabriella's is an Italian producer of fashion
jeans. In this highly competitive market, the
firm wishes to match the advertising efforts of
its competitors by achieving a share of voice
(promotion) which is roughly equal to its share
of market (sales). This approach to promotional
budgeting is called
competitive parity
On its e-commerce Web site, XYZMusic.com
sells songs from new artists who produce their
own music. The site also hosts ads from other
e-businesses. The ads presented to a user depend
on the type of music the user is reviewing.
XYZMusic.com collects ad revenue when users
follow links in the ads to the advertisers' Web
sites. XYZMusic.com's advertising revenue is
based on
click-through rates
Which of the following organizations
administers the GATT (General Agreement
on Tariffs and Trade) ?
The World Trade Organization
At the most basic level, products and services
should be viewed as a collection of
benefits
The primary function of promotion is to
inform, persuade, and remind
A marketing strategy is composed of both
a target market and related marketing mix
Which of the following is NOT an advantage of
Internet advertising as compared with traditional
advertising?
Exclusivity
Which of the following statements most
accurately describes antidumping laws?
They prevent foreign-manufactured goods
from selling at below cost
In selling a new global logistics information
system to a large client, the national account
manager of a leading supply chain management
vendor learns that client executives from
marketing, production, human resources,
finance, and business strategy will participate in
the decision-making process. Which of the
following terms best describes the scope of the
buying initiative?
Cross-functional
Which of the following lists the correct sequence
of steps in the consumer decision-making
process?
Need recognition, information search,
evaluation of alternatives, purchase,
postpurchase behavior
Consumers tend to be more satisfied with their
purchase of a product when
they research the product before the
purchase
Which of the following is true of global
marketing standardization?
It assumes that global consumers
increasingly have similar needs.
The three types of marketing research are
exploratory, descriptive, and causal
A product is classified as a business product
rather than a consumer product based on its
intended use
Which one of the following changes would most
likely motivate a firm to reposition a brand?
Shifting demographics
An advertisement for prospective applicants to a
college shows individual students along with the
slogan "I am getting ready to seize my destiny."
The ad appeals to which need in Maslow's
hierarchy?
Self-actualization
If two brands move closer to each other on a
perceptual (positioning) map, it means that they
have become
more similarly perceived by consumers
Lutèce Brands, Inc., acknowledges that its
French pastries may contribute to health
problems in some of its customers, but the
company claims that the benefits (such as
personal pleasure and taste) outweigh the risks.
The company's approach to moral reasoning is
best described as
utilitarianism
Which of the following lists the correct order of
the steps of the target marketing process?
Segmentation, targeting, and positioning
Which of the following types of marketing
communications tends to have the shortest-term
focus and objectives?
Corporate advertising/sales promotion
Place the four steps in the marketing research
process in the correct order.
Determine the research design.
Define the problem.
Collect data.
Choose the data collection method.
Sociocultural Environment
The growing Latino Population
Economic Environment
Rising mortgage rates
Technological Environment
The development of new population techniques
The principle task of marketers is to offer a product or service that offers satisfaction. Such an exchange process is intended to satisfy customer ___________.
Wants and Needs
The sign on the wall of The Health Hut reads, "We want to provide our customers with the freshest and healthiest of foods so that they can live life to the fullest." This sign reflects the:
Mission Statement
When backed by buying power, wants become ________.
Demands
Which of the following is the set of benefits a company promises to deliver the customer to satisfy their needs?
a value proposition
Relationship marketing can help a company...
Create long-term, cost-effective links with individual customers for mutual benefit.
________ is an important concept when we realize that losing a customer means losing more than a single sale. It means losing the entire stream of purchases that the customer would make over a lifetime of patronage.
customer lifetime value
A statement most consistent with the philosophy of the marketing concept would say that the key to success is
customer satisfaction
You are directed to study the demographic, economic, natural, technological, political, and cultural factors that are larger societal forces affecting your company. What are you studying?
the macroenvironment
In a marketing research study for a manufacturer of porch swings, _____ would most likely be a source of primary data.
researchers' interviews with hardware-store owners who sell porch swings
The best business portfolio is one that best fits the company's strengths and weaknesses to ________.
opportunities in the environment
Which of the following specifies a limit on the amount of certain products that can be imported into a country?
A quota
The stage of product development that involves launching a new product into the market is called
commercialization
In the marketing research process, firms often gather and analyze secondary data rather than primary data because secondary data
is more readily available and less expensive to collect than primary data
A fast-food chain seeking an easy and low-cost entry into a foreign market would most likely choose which of the following avenues?
Franchising
During the first stage of the product life cycle, a marketer's objective most likely will be to
build product awareness
When a convenience store manager raised the price of fountain drinks by 10 percent, she found that the store sold only half as many fountain drinks. The manager's observation indicates that the demand for fountain drinks is highly
elastic
With seven other homeowners, Marty was invited to a(n) _____ where the researcher asked the group general questions about how they do yard work. The interview revealed that most have limited time to work in the yard and would be willing to hire a lawn care service if the price were reasonable.
focus group
A customer is satisfied, when a customer's purchase ________ his or her expectations.
lives up to
A(n) ______________ is a group of customers (people or organizations) at whom the seller specifically intends to aim its marketing efforts.
target market
Which customer question is answered by a company's value proposition?
"Why should I buy your brand rather than a competitor's?"
Causal research is used to ________.
test hypotheses about cause-and-effect relationships
In marketing terms, we say that the number of intermediary levels indicates the ________ of a channel.
length
In general, a company should enter only segments in which it can ________ and ________.
offer superior value; gain advantages over competitors
This positioning strategy is very competitive. It can attack a more-for-more strategy by introducing a brand offering comparable quality but at a lower price.
same-for-less strategy
A ________ is a group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same type of outlets, or fall within given price ranges.
product line
Why do profits increase during the growth stage of the PLC?
Promotion costs are spread over a large volume, unit manufacturing costs fall, and competition has not yet taken sales away
Kellogg's has introduced a new puffed corn cereal, Kellogg's Corn Puffs, a category where they previously did not have a product. This is an example of ________.
brand extension
Firms set prices as low as possible in order to become the ________.
market share leader
Rather than basing the price of a product on the seller's costs, this method uses buyers' perceptions of what a product is worth.
Value-based pricing
A consumer is reading a magazine with an HP advertisement, but is distracted from reading the advertisement or its key points. This unplanned static or distortion during the communication process is called ________.
noise
The major reason that producers benefit from using intermediaries is because they ________.
offer greater efficiency in making goods available to target markets
Prices of services rise during times of peak demand only to fall -- often drastically -- when demand declines because
services are perishable.
The reasons many hotel chains now use the same room decor at all their hotels is in the attempt to solve the problem that
it is difficult to standardize services.
When a firm decides on a minimum acceptable profit level and seeks to increase its sales subject to this profit constraint, its pricing objective is
sales maximization.
Which of the following represent advantages to retailers who sell what are referred to as 'private label' brands?
Higher profit margins, lower distribution costs, and increased advertising efforts
The degree to which a customer's experience with a product or organization meets or exceeds his or her expectations is often referred to as:
Customer satisfaction.
Buyers typically experience some post-purchase anxieties in all but routine purchases. This state of anxiety is known as cognitive dissonance and can be expected to increase if:
the relative importance of the purchase increases.
Which of the following products is most likely to be a high-involvement purchase?
A birthday gift for your new mother-in-law.
Suppose a company's marketing research found that consumers between the ages of 18 and 34 were potentially the most profitable. If the company decided to direct all of its marketing efforts solely to this age group, the age group would represent the company's:
target market.
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