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Principles of Marketing > Marketing Strategy Implementation: Marketing Mix > Flashcards

Marketing Strategy Implementation: Marketing Mix Flashcards

1
Q

The reasons many hotel chains now use the same room decor at all their hotels is in the attempt to solve the problem that

(A) services are intangible.
(B) it is difficult to standardize services.
(C) services are inseparable from their providers.
(D) buyers get involved in service design and distribution.

A

(B) it is difficult to standardize services.

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2
Q

Prices of services rise during times of peak demand only to fall – often drastically – when demand declines because

(A) services are intangible.
(B) buyers get involved in service design and distribution
(C) services are perishable.
(D) services are inseparable from their providers.

A

(C) services are perishable.

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3
Q

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 ________.

(A) brand equity
(B) product line
(C) brand extension
(D) private brand
(E) brand symbol
A

(C) brand extension

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4
Q

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.

(A) product line
(B) line extension
(C) private brand
(D) convenience product
(E) product bandwidth
A

(A) product line

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5
Q

A product is classified as a business product rather than a consumer product based on its

(A) tangible and intangible attributes
(B) life-cycle position
(C) promotion type
(D) pricing strategy
(E) intended use
A

(E) intended use

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6
Q

At the most basic level, products and services should be viewed as a collection of

(A) attributes
(B) expectations
(C) benefits
(D) features
(E) promises
A

(C) benefits

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7
Q

The growth of service industries is primarily the result of

(A) increasingly complex and specialized customer needs
(B) a rise in income and the degree of customer input
(C) rapid growth of population and government tracking systems
(D) increased use of labor-intensive technology
(E) decreasing demand for equipment-based services

A

(A) increasingly complex and specialized customer needs

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8
Q

Which of the following are key characteristics of services?

(A) Cost, time, quality, and value
(B) Uncertainty, variability, and standardization
(C) Intangibility, durability, and standardization
(D) Intangibility, perishability, and variability
(E) Tangibility, variability, and uncertainty

A

(D) Intangibility, perishability, and variability

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9
Q

Which of the following is true of the product life cycle?

(A) It can accurately forecast the growth of new products.
(B) It reveals that branded products have the longest growth phase.
(C) It cannot be applied to computer products that quickly become obsolete.
(D) It is based on the assumption that products go through distinct stages in sales and profit performance.
(E) It proves that profitability is highest in the mature phase.

A

(D) It is based on the assumption that products go through distinct stages in sales and profit performance.

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10
Q

All of the following are characteristics of services EXCEPT

(A) intangibility
(B) heterogeneity
(C) inseparability
(D) perishability
(E) inflexibility
A

(E) inflexibility

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11
Q

During the first stage of the product life cycle, a marketer’s objective most likely will be to

(A) maximize market share
(B) build product awareness
(C) reduce expenditures
(D) defend a position
(E) diversify into new categories
A

(B) build product awareness

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12
Q

The estimated market value of a brand is best described as brand

(A) equity
(B) benefit
(C) worth
(D) merit
(E) return on investment
A

(A) equity

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13
Q

Which of the following represent advantages to retailers who sell what are referred to as ‘private label’ brands?

(A) Higher profit margins
(B) Lower distribution costs.
(C) Increased advertising efforts.
(D) A and C.
(E) All of the above.
A

(E) All of the above.

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14
Q

Why do profits increase during the growth stage of the PLC (Product Life Cycle)?

(A) Promotion costs are spread over a large volume.
(B) Unit manufacturing costs fall.
(C) Competition has not yet taken sales away.
(D) All of the above.
(E) None of the above.

A

(D) All of the above.

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15
Q

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

(A) market penetration
(B) market development
(C) product development
(D) diversification
(E) vertical integration
A

(B) market development

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16
Q

The stage of product development that involves launching a new product into the market is called

(A) a debut
(B) an inception
(C) an initiation
(D) test marketing
(E) commercialization
A

(E) commercialization

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17
Q

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?

(A) Deceptive advertising
(B) Price discrimination
(C) rice fixing
(D) Reciprocity
(E) Tying contracts
A

(E) Tying contracts

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18
Q

A marketer usually offers a noncumulative quantity discount in order to

(A) reward customers for repeat purchases
(B) reduce advertising expenses
(C) encourage users to purchase in large quantities
(D) encourage buyers to submit payment promptly
(E) ensure the prompt movement of goods through the channel of distribution

A

(C) encourage users to purchase in large quantities

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19
Q

If a firm is using penetration pricing, the firm is most likely trying to achieve which of the following pricing objectives?

(A) Product quality leadership
(B) Market-share maximization
(C) High gross margin
(D) Status quo
(E) Geographic flexibility
A

(B) Market-share maximization

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20
Q

Which of the following is true of price skimming?

(A) It requires intermediaries to provide kickback payments.
(B) It calls for relatively high prices to start, reducing over time.
(C) It is reserved for products in the late stages of the product life cycle.
(D) It works best in situations with highly elastic demand.
(E) It is illegal in most jurisdictions in the United States.

A

(B) It calls for relatively high prices to start, reducing over time.

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21
Q

Firms set prices as low as possible in order to become the ________.

(A) product quality leader
(B) market share leader
(C) customer quality leader
(D) profit maximization leader
(E) price leader
A

(B) market share leader

22
Q

Rather than basing the price of a product on the seller’s costs, this method uses buyers’ perceptions of what a product is worth.

(A) Value-based pricing
(B) Target costing
(C) Variable costs
(D) Price elasticity
(E) Product image
A

(A) Value-based pricing

23
Q

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

(A) sales maximization.
(B) increasing cost.
(C) target costing.
(D) prestige pricing.

A

(A) sales maximization.

24
Q

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

(A) resilient
(B) antagonistic
(C) derived
(D) exponential
(E) elastic
A

(E) elastic

25
Q

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?

(A) Elimination of the wholesaler’s profit will result in a lower price to the ultimate consumer.
(B) Elimination of the wholesaler’s marketing functions will increase efficiency.
(C) The total cost of distribution will be reduced because of the elimination of the wholesaler.
(D) The marketing functions performed by the wholesaler will be eliminated.
(E) The wholesaler’s marketing functions will be shifted to or shared by the manufacturer and the retailer.

A

(E) The wholesaler’s marketing functions will be shifted to or shared by the manufacturer and the retailer.

26
Q

Which of the following is an intermediary in the distribution channel that moves goods without taking title to them?

(A) Agent
(B) Wholesaler
(C) Merchant
(D) Retailer
(E) Dispenser
A

(A) Agent

27
Q

Missionary salespersons are most likely to do which of the following?

(A) Sell cosmetics directly to consumers in their own homes
(B) Take orders for air conditioners to be used in a large institution
(C) Describe drugs and other medical supplies to physicians
(D) Secure government approval to sell heavy machinery to a foreign government
(E) Take orders for custom-tailored garments or other specially produced items

A

(C) Describe drugs and other medical supplies to physicians

28
Q

A channel of distribution refers to the

(A) routing of goods through distribution centers
(B) sequence of marketing intermediaries from producer to consumer
(C) methods of transporting goods from producer to consumer
(D) suppliers who perform a variety of functions
(E) traditional handlers of a product line

A

(B) sequence of marketing intermediaries from producer to consumer

29
Q

A major advantage of distributing products by truck is

(A) low cost relative to rail or water
(B) low probability of loss or damage to cargo
(C) accessibility to pick-up and delivery locations
(D) speed relative to rail or air
(E) ability to handle a wider variety of products than other means

A

(C) accessibility to pick-up and delivery locations

30
Q

A brand that has achieved brand insistence and is considered a specialty good by the target market suggests which of the following distribution objectives?

(A) Widespread distribution near probable points of use
(B) Exclusive distribution
(C) Intensive distribution
(D) Enough exposure to facilitate price comparison
(E) Widespread distribution at low cost

A

(B) Exclusive distribution

31
Q

Using a combination of different modes of transportation to move freight in order to exploit the best features of each mode is called

(A) conventional distribution
(B) developing dual distribution
(C) selective distribution
(D) intermodal transportation
(E) freight forwarding
A

(D) intermodal transportation

32
Q

Which of the following is a major disadvantage associated with the use of dual distribution?

(A) It is usually very expensive.
(B) It can cause channel conflict.
(C) It provides limited market coverage.
(D) It is only appropriate for corporate channels.
(E) Some distribution channel functions are not completed.

A

(B) It can cause channel conflict.

33
Q

Which of the following approaches for entering international markets involves granting the rights to a patent, trademark, or manufacturing process to a foreign company?

(A) Exporting
(B) Franchising
(C) Licensing
(D) Joint venturing
(E) Contract manufacturing
A

(C) Licensing

34
Q

Which of the following is a primary disadvantage of direct marketing?

(A) It is difficult to measure response.
(B) It is not personal.
(C) It is poorly targeted.
(D) It tends to have high costs per contact.
(E) It has a fragmented audience.
A

(D) It tends to have high costs per contact.

35
Q

Which of the following best describes members of a buying center?

(A) Everyone involved in making the purchase decision
(B) Everyone involved in signing contracts
(C) Everyone employed in the purchasing department
(D) Direct reports of the vice president of purchasing
(E) Technical experts who advise on product specifications

A

(A) Everyone involved in making the purchase decision

36
Q

Which of the following most accurately describes agent wholesalers?

(A) They take title to goods that they sell to other intermediaries.
(B) They do not take title to goods that they sell to other intermediaries.
(C) They take title to goods that they sell to final consumers.
(D) They do not take title to the goods that they sell on commission to final consumers.
(E) They manufacture the goods that they sell to final consumers.

A

(B) They do not take title to goods that they sell to other intermediaries.

37
Q

Which of the following is the first step in the sales process?

(A) Prospecting
(B) A Sales presentation
(C) Gaining commitment
(D) Approach
(E) recall planning
A

(A) Prospecting

38
Q

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) a primary intermediary
(B) an agent retailer
(C) a multilevel distributor
(D) a channel captain
(E) a dominant distributor
A

(D) a channel captain

39
Q

Compared with agent intermediaries, merchant intermediaries

(A) sell only to organizational customers
(B) sell only in export markets
(C) are employees of the manufacturer
(D) are compensated by a commission on sales
(E) take title to the goods they sell

A

(E) take title to the goods they sell

40
Q

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?

(A) Universal
(B) Specialized
(C) Standardized
(D) Cross-functional
(E) Decentralized
A

(D) Cross-functional

41
Q

In marketing terms, we say that the number of intermediary levels indicates the ________ of a channel.

(A) depth
(B) complexity
(C) involvement
(D) length
(E) exchanges
A

(D) length

42
Q

The major reason that producers benefit from using intermediaries is because they ________.

(A) offer greater efficiency in making goods available to target markets
(B) operate less expensively
(C) save a lot of work
(D) are generally backlogged with orders
(E) refuse to store products for longer than a couple of days

A

(A) offer greater efficiency in making goods available to target markets

43
Q

A fast-food chain seeking an easy and low-cost entry into a foreign market would most likely choose which of the following avenues?

(A) Franchising
(B) Joint ventures
(C) Wholly owned subsidiaries
(D) Turnkey operations
(E) Exporting
A

(A) Franchising

44
Q

Which of the following types of marketing communications tends to have the shortest-term focus and objectives?

(A) Brand advertising
(B) Public relations
(C) Sales promotion
(D) Event sponsorship
(E) Corporate advertising
A

(C) Sales promotion

45
Q

The primary function of promotion is to

(A) sell products and services
(B) create awareness
(C) inform, persuade, and remind
(D) make a demand more elastic
(E) eliminate competition
A

(C) inform, persuade, and remind

46
Q

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

(A) all you can afford
(B) percent of sales
(C) allocation per unit
(D) competitive parity
(E) objective and task
A

(D) competitive parity

47
Q

ABC Company agrees to pay a certain amount of a retailer’s promotional costs for advertising ABC’s products. This is an example of

(A) cooperative advertising
(B) reminder advertising
(C) comparison advertising
(D) slotting allowance
(E) a premium
A

(A) cooperative advertising

48
Q

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

(A) sales promotion
(B) advertising
(C) personal selling
(D) direct marketing
(E) public relations
A

(A) sales promotion

49
Q

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?

(A) Pull strategy
(B) Push strategy
(C) Direct selling strategy
(D) Indirect selling strategy
(E) Integrated marketing communication
A

(B) Push strategy

50
Q

Cooperative advertising is usually undertaken by manufacturers in order to

(A) secure the help of the retailer in promoting a given product
(B) divide responsibilities between the retailers and wholesalers within a channel of distribution
(C) satisfy legal requirements
(D) create a favorable image of a particular industry in the minds of consumers
(E) provide a subsidy for smaller retailers that enables them to match the prices set by chain stores

A

(A) secure the help of the retailer in promoting a given product

51
Q

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

(A) cost-per-thousand exposures
(B) click-through rates
(C) ad presentation rates
(D) unique site-visitor data
(E) site-traffic data
A

(B) click-through rates

52
Q

Which of the following is NOT an advantage of Internet advertising as compared with traditional advertising?

(A) Target-market selectivity
(B) Tracking ability
(C) Exclusivity
(D) Deliverability
(E) Interactivity
A

(C) Exclusivity

Principles of Marketing (4 decks)

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