Midterms

Question 1

With regard to the selling function, what did Peter Drucker have to say about the aim of marketing?
A) Selling should replace marketing.
B) Selling should have equal importance in the corporate hierarchy.
C) It should make selling superfluous.
D) The sales function should set strategy, while the marketing function owns tactics.
E) Selling and marketing are synonymous.

Answer 1

C

Question 2

A public service announcement (PSA) encouraging people to wear masks during a pandemic outbreak represents what kind of marketed entity?
A) Ideas
B) Services
C) Experiences
D) Information
E) Social good

Answer 2

A

Question 3

Which of these reasons was identified as a success factor for the British firm RB (formerly Reckitt Benckiser)?
A) Strong sales teams
B) Emotional advertising
C) Digging deeply into consumer habits
D) Government subsidies
E) Undercutting competitors on prices

Answer 3

C

Question 4

People in emerging countries today are becoming increasingly health conscious and are seeking healthy food choices. As a result, demand for health foods is rising steadily, creating an opportunity for marketers to exploit this ________ market.
A) demographic
B) business
C) need
D) geographic
E) service

Answer 4

C

Question 5

T/F: Properties are tangible rights of ownership to either real property (real estate) or financial property (stocks and bonds).

Answer 5

False

Question 6

How does the social definition of marketing differ from the managerial definition?

Answer 6

The managerial definition focus on the challenges and responsibilities of managing marketing functions and processes within the organization. The social definition is more of an “outside looking in” definition, as a societal process by which individuals and groups obtain what they need and want through creating, offering, and freely exchanging products and services of value with others.

Question 7

What are the five basic markets in the modern economy?

Answer 7

The five basic markets are:
resource markets,
manufacturer markets,
consumer markets,
intermediary markets, and
government markets.

Question 8

Marketers are involved in marketing 10 types of entities. List and briefly characterize these entities.

Answer 8

The types of entities that are marketed are:
*goods – physical goods
*services – hotels and car rental services
*events – time-based events such as trade shows
*experiences – Walt Disney’s Magic Kingdom
*persons – celebrity marketing
*places – cities, states, regions, and even whole nations
*properties – intangible rights of ownership of either real property or financial property
*organizations – corporate identity
*information – information produced and marketed as a product
*ideas – marketing the basic idea of a market offering.

Question 9

Marketing has been described as being both an “art” and a “science.” Discuss the differences and similarities between these two marketing thrusts. Provide your theoretical response and a “real-life” example where you have seen both processes work effectively at creating customer value and loyalty.

Answer 9

The student should demonstrate his or her understanding that the marketer must use data to understand customer needs and translate this understanding into properly designed products and services. This requires the application of state-of-the-art tools and techniques. It is also an art as marketers try to find creative solutions to consumer needs.

Question 10

Selling is not the most important part of marketing. Explain why not.

Answer 10

According to Peter Drucker, “There will always, one can assume, be need for some selling. But the aim of marketing is to make selling superfluous. The aim of marketing is to know and understand the customer so well that the product or service fits him and sells itself. Ideally, marketing should result in a customer who is ready to buy. All that should be needed then is to make the product or service available.

Question 11

Which of these characterizes the need for internal coordination of the marketing effort?
A) A tops-down approach that pushes the marketing concept through the organization
B) Concentric alignment with marketing at the center
C) Vertical alignment with senior management
D) Vertical alignment with senior management and horizontal alignment with other departments
E) Horizontal alignment with other departments and vertical alignment with the sales channel

Answer 11

D

Question 12

What is the ultimate outcome of relationship marketing?
A) Higher profits
B) Sustainable profits
C) A marketing network with mutually profitable relationships
D) Lower barriers to entry in new markets
E) Lower marketing costs through cost-sharing with network partners

Answer 12

C

Question 13

Which of the four transformational market forces mentioned in the chapter is associated with the number of mobile phones in India recently exceeding 500 million and Boston Consulting Group believing brand marketers must enhance their “digital balance sheets”?
A) Demographics
B) Accountability
C) Social responsibility
D) Globalization
E) Technology

Answer 13

E

Question 14

Which of the following reflects the “people” component of the marketing mix?
A) The creativity, discipline, and structure brought to marketing management
B) The development of new products by the marketers
C) The firm’s consumer-directed activities
D) The right set of processes to guide activities and programs within the firm
E) The internal marketing of the firm

Answer 14

E

Question 15

Showrooming is associated with which of the following new consumer capabilities?
A) Consumers can tap into social media to share opinions and express loyalty.
B) Consumers can actively interact with companies.
C) Consumers can use the internet as a powerful information and purchasing aid.
D) Consumers can reject marketing they find inappropriate.
E) Consumers can communicate on the move.

Answer 15

C

Question 16

The success of online purchasing resulted in ________ in the delivery of products and services by intervening in the traditional flow of goods through distribution channels.
A) disintermediation
B) diversification
C) reduced competition
D) deregulation
E) privatization

Answer 16

A

Question 17

In response to threats from such companies as Amazon.com, E*TRADE, and dozens of others, established manufacturers and retailers became “brick-and-click” oriented by adding online services to their existing offerings. This is known as ________.
A) reintermediation
B) disintermediation
C) retail transformation
D) e-collaboration
E) new-market synchronization

Answer 17

A

Question 18

What parameters does a company typically monitor within the concept of performance marketing?

Answer 18

Performance marketing involves reviewing metrics assessing market share, customer loss rate, customer satisfaction, and product quality in the evaluation of the effectiveness of marketing activities.

Question 19

Characterize how proponents of holistic marketing view the importance of internal marketing.

Answer 19

Proponents of holistic marketing consider internal marketing to be as important as marketing to consumers.

Question 20

Characterize the ultimate goal of relationship marketing.

Answer 20

The ultimate outcome of relationship marketing is a unique company asset called a marketing network, consisting of the company and its supporting stakeholders – customers, employees, suppliers, distributors, retailers, and others.

Question 21

Identify three specific ways globalization has affected the marketing environment.

Answer 21

New transportation, shipping, and communication technologies have made it easier for us to know the rest of the world, to travel, to buy and sell anywhere. Globalization has made countries increasingly multicultural. U.S. minorities have much economic clout, and their buying power is growing faster than that of the general population. Globalization changes innovation and product development as companies take ideas and lessons from one country and apply them to another.

Question 22

Discuss the concept of disintermediation and provide an example.

Answer 22

Disintermediation grew out of the rush to embrace the dot-coms and e-commerce. Essentially, the dot-coms removed many of the traditional intermediaries by encouraging consumers to deal directly with the company via the internet. “Brick-and-click” businesses eventually brought some of the intermediaries back through a process called reintermediation.

Question 23

The digital revolution has placed a whole new set of capabilities in the hands of consumers and businesses. Describe the advantages that you as a consumer have today that your parents or grandparents didn’t have.

Answer 23

Answer: Responses to this question should include:
* a substantial increase in buying power
* a greater variety of available goods and services
* a great amount of information about practically anything
* greater ease in interacting and placing and receiving orders
* an increased ability to compare products and services.

Question 24

The internet has given today’s companies a new set of capabilities. Among those capabilities is the ability to operate a new information channel. Describe how information can be used by the marketer in this new channel.

Answer 24

Companies can operate a powerful new information and sales channel, the internet, with augmented geographical reach to inform and promote their businesses and products worldwide. By establishing one or more websites, a company can list its products and services, its history, its business philosophy, its job opportunities, and other information of interest to visitors. This provides consumers with a direct access to the company. Almost all websites include a “contact us” section that enables consumers to put forth their queries and interact with the company directly. This in turn allows marketers to be aware of people’s opinions and preferences.

Question 25

What are the 4 components of Holistic Marketing?

Answer 25

Internal marketing, Relationship marketing, Integrated marketing, Performance Marketing

Question 26

Define internal marketing and its role in the company. Outline how various departments within the company can demonstrate a customer focus.

Answer 26

Internal marketing is the task of hiring, training, and motivating able employees who want to serve customers well. Internal marketing must take place on two levels. At one level, the various marketing functions must work together. At the second level, other departments must embrace marketing and a “think customer” attitude.

Question 27

Increasingly, a key goal of marketing is to develop deep, enduring relationships with all entities that directly or indirectly affect the success of the firm. Discuss the merits of relationship marketing. From your experience as a consumer, describe the relationship marketing efforts undertaken by a company of your choice.

Answer 27

Students should understand that the relationship between any supplier and customer is not just in the mechanics of the transaction, but more importantly how the customer is treated during the transaction. The better the relationship, the more the likelihood of the customer remaining loyal. They should pick a company that has served them well and made them feel special each and every time.

Question 28

What would be the marketing network elements for a motorcycle company such as Harley-Davidson?

Answer 28

A marketing network consists of the company and its supporting stakeholders. These stakeholders for Harley-Davidson are its customers, employees, suppliers, distributors, retailers, repair services, ad agencies, lobby groups, and motorcycle support clubs. The operating principle is simple: Build an effective network of relationships with key stakeholders, and profits will follow.

Question 29

77) Which marketing approach is based on recognizing the breadth and interdependencies of marketing programs, processes, and activities?
A) The marketing concept
B) The product concept
C) The production concept
D) The market-value concept
E) The selling concept

Answer 29

D

Question 30

78) Which of these perspectives best reflects the market-value concept?
A) Products establish a permanent impression of a company’s value.
B) Basic needs and customer groups change constantly.
C) Products are transient; basic needs and customer groups endure forever.
D) Products must be constantly redesigned to reflect unstable basic needs.
E) Basic needs really don’t change, so fundamental product designs don’t need to, either.

Answer 30

C

Question 31

80) If a new CEO announced that from now on the marketing function would be dispersed throughout the organization, with every department expected to contribute to customer success, this would reflect which orientation?
A) The market-value concept
B) The product concept
C) The production concept
D) The customer concept
E) The marketing concept

Answer 31

A

Question 32

81) Which of the following holds that consumers prefer products that are widely available and inexpensive?
A) The product concept
B) The production concept
C) The selling concept
D) The performance concept
E) The marketing concept

Answer 32

B

Question 33

87) Marketers at Johnny Inc. believe in putting their customers ahead of everything else. Their products are carefully designed to meet customer requirements and the entire focus is on achieving customer satisfaction. Johnny Inc. follows the ________ concept in doing business.
A) production
B) product
C) selling
D) marketing
E) social responsibility

Answer 33

D

Question 34

90) The marketing concept holds that ________.
A) a firm should find the right products for its customers, and not the right customers for its products
B) customers who are coaxed into buying a product will most likely buy it again
C) a new product will not be successful unless it is priced, distributed, and sold properly
D) consumers and businesses, if left alone, won’t buy enough of the organization’s products
E) a better product will by itself lead people to buy it without much effort from the sellers

Answer 34

A

Question 35

T/F The production concept is one of the newest concepts in business.

Answer 35

False

Question 36

T/F The marketing concept stresses finding the right customers for the company’s products.

Answer 36

False

Question 37

The selling concept is based on the development, design, and implementation of marketing programs, processes, and activities that recognize their breadth and interdependencies.

Answer 37

False

Question 38

T/F The product concept is based on the development, design, and implementation of marketing programs, processes, and activities that recognize their breadth and interdependence.

Answer 38

False

Question 39

Why is it important for every business to define the role that marketing will play in the organization?

Answer 39

defining marketing’s role is important because whatever philosophy the firm adopts will guide its marketing efforts, determine how to organize and manage the marketing department, and, ultimately, find the best means to build a customer-centric organization that can deliver value to company stakeholders.

Question 40

How does the marketing concept differ from the selling concept in terms of whose needs have priority?

Answer 40

With the selling concept, the company’s primary concerns are its own needs. With the marketing concept, the priority shifts to the customer’s needs.

Question 41

How might adopting the market-value view of its activities can redefine the market(s) in which a company competes?

Answer 41

By shifting its perspective from “what can we make or sell?” to the broader question of “what do customers want or need in order to be satisfied?” a company might discover new market opportunities. These new opportunities would naturally create new competitive concerns as well, as the company could find itself going up against firms it had never before encountered.

Question 42

Arthur Jones has decided to start a business. He wants to manufacture lawn mowers and believes in the production concept. If this approach is taken, what will be Mr. Jones’ primary areas of concentration as he builds his business?

Answer 42

This orientation holds that consumers will prefer products that are widely available and inexpensive. Managers of production-oriented businesses concentrate on high production efficiency, low costs, and mass distribution. Jones will also want an efficient production process in place. This approach is also used when a company wants to expand the market. Students may use these facts as they design their answer.

Question 43

104) What is a customer touch point?
A) Direct interaction with tangible products; does not apply to intangible services
B) The “high touch” aspect of personal services, including personal selling
C) Any real or virtual point where customers directly or indirectly interact with the company
D) Any stage of the marketing process where it’s up to the customer to choose whether to interact with the company
E) Interaction points that are between a company and its customers, without the involvement of third parties such as channel intermediaries

Answer 43

C

Question 44

105) If the home construction firm PulteGroup adopted a marketing organization that combined regional geographic market managers with product category managers who focus on specific types of houses, this would reflect which organizational model?
A) Matrix organization
B) Product-geography organization
C) Geographic organization with product subsets
D) Product organization
E) Customer organization

Answer 44

A

Question 45

A disadvantage of the product-management organization is that ________.
A) it marginalizes a company’s smaller brands
B) it reduces organizational responsiveness to new products in the marketplace
C) product managers generally exercise authority outside their areas of responsibility
D) it prevents product managers from gaining sufficient expertise in their product areas
E) it fails to build long-term strengths as brand managers normally manage brands for only short periods

Answer 45

E

Question 46

108) The most common form of marketing organization consists of ________ reporting to a chief marketing officer who coordinates their activities.
A) zonal managers
B) functional specialists
C) product managers
D) area market specialists
E) brand managers

Answer 46

B

Question 47

Which of the following is the main advantage of a functional marketing organization?
A) Easy coordination
B) Lower staff requirements
C) Administrative simplicity
D) Reduced competition between functional groups
E) Smooth working relationships

Answer 47

C

Question 48

Companies that produce many products for many markets may adopt a ________ marketing organization.
A) flat
B) brand
C) product
D) matrix
E) top-down

Answer 48

D

Question 49

Which of the following is true regarding a matrix-management organization?
A) It proves to be cost-effective in the long run.
B) It often creates conflicts regarding authority and responsibility for marketing activities.
C) It hampers the flow of information among marketing personnel.
D) It fosters a strong sense of accountability for performance among product and market managers.
E) It is best suited to companies that offer a small range of products to niche markets.

Answer 49

B

Question 50

T/F A functional organization allows for adequate planning as the number of products and markets of a firm increases.

Answer 50

FALSE

Question 51

T/F The product-management organization replaces the functional organization in the firm.

Answer 51

False

Question 52

T/F An advantage of the product- and brand-management system is that product and brand managers focus the company on building market share rather than customer relationships.

Answer 52

False

Question 53

What three forces do marketing experts George Day and Robert Malcolm believe will change the role of the CMO in the coming years?

Answer 53

Day and Malcolm believe that three driving forces will change the role of the CMO in the coming years: (1) predictable marketplace trends, (2) the changing role of the C-suite, and (3) uncertainty about the economy and organizational design. They identify five priorities for any successful CMO: act as the visionary for the future of the company, build adaptive marketing capabilities, win the war for marketing talent, tighten the alignment with sales, and take accountability for returns on marketing spending.

Question 54

What steps can a CEO take to create a market- and customer-focused company

Answer 54

To create a true marketing organization, the CEO must convince senior management of the importance of being customer focused. It is also important that the CEO be able to hire strong marketing talent, including a skilled chief marketing officer who not only manages the marketing department but also has the respect of, and influence with, the other C-level executives. the CEO must also facilitate the creation of strong in-house marketing training programs to sharpen the company’s marketing and demonstrate a strong commitment to customers.

Question 55

Describe the functional organization of a marketing department in terms of its structure, advantages, and disadvantages.

Answer 55

The most common form of marketing organization consists of functional specialists reporting to a chief marketing officer (CMO). The main advantage of a functional marketing organization is its administrative simplicity. It can be quite a challenge for the department to develop smooth working relationships, however. This form also can result in inadequate planning as the number of products and markets increases and each functional group vies for budget and status. The CMO constantly weighs competing claims and faces a difficult coordination problem.

Question 56

Explain the product- or brand-management organization and list its advantages and disadvantages.

Answer 56

Companies producing a variety of products and brands often establish a product- (or brand-) management organization. The product- or brand-management organization does not replace the functional organization, but serves as another layer of management. A product-management organization makes sense if the company’s products are quite different, or if the sheer number of products is beyond the ability of a functional organization to handle. Product and brand management is sometimes characterized as a hub-and-spoke system.

The product-management organization has several advantages. The product manager can concentrate on developing a cost-effective marketing mix for the product and can react more quickly to new products in the marketplace; the company’s smaller brands have a product advocate. The disadvantages are that product managers are not given enough authority, they become experts in their product area but rarely achieve functional expertise. The product-management system is costly and brand managers normally manage a brand only for a short time. The fragmentation of markets makes it harder to develop a national strategy. In addition to this, product and brand managers focus on market share and not in building customer relationships.

Question 57

What is a market-management organization?

Answer 57

Many companies sell their products to differing markets. When customers fall into different user groups with distinct buying preferences and practices, a market-management organization is desirable. Market managers supervise several market-development managers, market specialists, or industry specialists and draw on functional services as needed. Market managers of important markets might even have functional specialists reporting to them. Market managers are staff (not line) people, with duties like those of product managers. They develop long-range and annual plans for their markets and are judged by their markets’ growth and profitability. Because this system organizes marketing activity to meet the needs of distinct customer groups, it shares many advantages and disadvantages of product-management systems.

Question 58

Define a category-management organization.

Answer 58

A category-management organization is where a company focuses on product categories to manage its brands.

Question 59

What is a customer-management organization? When should a customer-management organization be adopted?

Answer 59

A customer-management organization deals with individual customers rather than the mass market or even market segments. It is suitable when a close customer relationship is advantageous, such as when customers have diverse and complex requirements and buy an integrated bundle of products and services.

Question 60

Which of these is a key reason why differentiation is difficult to maintain in today’s markets?
A) In most product categories, see little functional differences.
B) Most advanced economies are “brand saturated,” leaving consumers overwhelmed with choices.
C) Companies can copy one another’s advantages and strategies with increasing speed.
D) Recent changes in trademark and patents laws make it virtually impossible to protect product innovations.
E) With cost containment a priority, most firms focus on copycat design.

Answer 60

C

Question 61

What effect could an obsession about protecting market share have on a company’s long-term prospects?
A) Consumers would tire of its “me focus.”
B) It would invite stronger attacks from competitors intent on stealing customers.
C) It could blind itself to major trends in the market.
D) It would more or less automatically position itself for sustained profitability.
E) It would enjoy increased sales as less-determined competitors eventually give up.

Answer 61

C

Question 62

Identify three significant factors that underscore the importance of building a customer-centric organization in today’s business environment.

Answer 62

Three significant factors that underscore the importance of building a customer-centric organization are the proliferation of products, services, and brands; increased consumer knowledge about market offerings; and consumers’ ability to influence public opinion about companies and their offerings.

Question 63

How do managers who believe the customer is the company’s only true “profit center” consider the traditional organization chart?

Answer 63

Such mangers view the traditional pyramid organization charter, with the president at the top, management in the middle, and frontline people and customers at the bottom, to be obsolete. Instead, many favor a circular visualization in which customers are the highest priority.

Question 64

How has the rise of digital technologies shaped customer expectations regarding a company’s responsiveness?

Answer 64

With the rise of digital technologies, increasingly informed consumers expect companies to do more than connect with, satisfy, and even delight them. They expect companies to listen and respond to them.

Question 65

Many companies are beginning to realize that they are not really market and customer driven but rather are product and sales driven. In the attempt to transform themselves into true market-driven companies, many firms must change. Describe and explain what changes are necessary.

Answer 65

To be truly market-driven, companies need to develop a company-wide passion for customers, organize around customer segments instead of around products, and develop a deep understanding of customers through qualitative and quantitative research. Additionally, the organization must be creative; the firm must build capability in strategic innovation and imagination. This capability comes from assembling tools, processes, skills, and measures that let the firm generate more and better new ideas than its competitors.

Question 66

1) Which of these is NOT a top priority when it comes to strategic planning?
A) Managing the company’s businesses as an investment portfolio
B) Assessing the market’s growth rate
C) Assessing the company’s position in its chosen markets
D) Maximizing inventory turnover
E) Developing a viable business model

Answer 66

D

Question 67

Which of these reflects an important strategic planning responsibility for corporate headquarters?
A) Allocating resources to the various business units
B) Overseeing product launches
C) Resolving resource conflicts within product categories
D) Directing product advertising
E) Managing business unit product research

Answer 67

A

Question 68

When does business unit planning occur in the strategic planning process?
A) Before corporate planning
B) After offering planning
C) After corporate planning but before offering planning
D) After offering planning but before product planning
E) After corporate planning and product planning

Answer 68

C

Question 69

SBUs with only one or a few product lines are considered to have ________.
A) limited portfolios
B) noncompetitive portfolios
C) diversified portfolios
D) focused portfolios
E) specialized portfolios

Answer 69

E

Question 70

Which of these is the primary rationale for a diversified business mix?
A) To balance areas where management sees a weakness in branding or product competitiveness
B) To reduce shared overhead expenses
C) To increase cross-portfolio synergies
D) To share employee expertise across product lines
E) To take advantage of growth opportunities in areas in which the company has no presence

Answer 70

E

Question 71

Identifying the metrics underlying the performance of a given business unit is a key aspect of ________.
A) itemizing corporate report cards
B) planning products
C) managing brands
D) developing portfolio models
E) separating product lines into SBUs

Answer 71

D

Question 72

Which two factors are usually assessed when a company is deciding how to allocate resources across its business units?
A) Each SBU’s competitive advantage and the attractiveness of its markets
B) Each SBU’s staffing levels and the competitiveness of its markets
C) Each SBU’s current resources levels and its identified opportunities
D) Each SBU’s market opportunities and strength of competition
E) Each SBU’s contribution share of corporate profits and the competitiveness of its markets

Answer 72

A

Question 73

The Oregon-based tire retailer Les Schwab is famous for having its service techs run outside to greet customers in the parking lot to give them a friendly welcome. This reflects what aspect of the company?
A) Its corporate culture
B) Its strategic emphasis
C) Its personality
D) Its community relations
E) Its promotional strategy

Answer 73

A

Question 74

Which of these is potential shortcoming of the well-known BCG matrix used for portfolio analysis?
A) Licensing fees that must be paid to Boston Consulting Group
B) The difficulty of applying the model internationally
C) The model’s bias against intangible products
D) The model’s oversimplified and subjective approach
E) The model’s inability to track technological changes

Answer 74

D

Question 75

A clear, thoughtful mission statement provides employees with a shared sense of purpose, direction, and ________.
A) profitability
B) target market feasibility
C) opportunity
D) continuous improvement
E) quality products

Answer 75

C

Question 76

Mission statements are at their best when they reflect a ________.
A) market
B) strength
C) competency
D) vision
E) value

Answer 76

D

Question 77

Which of the following is one of the five major characteristics of good mission statements?
A) They focus on a large number of goals.
B) They expand the range of individual employee discretion.
C) They define the major markets that the company aims to serve.
D) They take a short-term view.
E) They are long and comprehensive to ensure that all critical concepts are included.

Answer 77

C

Question 78

T/F A firm put each of its many product lines in its own SBU; these SBUs can be said to have diversified portfolios.

Answer 78

False

Question 79

What is corporate culture?

Answer 79

Corporate culture can be defined as “the shared experiences, stories, beliefs, and norms that characterize an organization.”

Question 80

What are the three main characteristics of a strategic business unit (SBU)?

Answer 80

(1) An SBU is a single business, or a collection of related businesses, that can exist separately from the rest of the company; (2) it has its own set of competitors; and (3) it has a manager responsible for strategic planning and profit performance, who controls most of the factors affecting profit.

Question 81

What are the portfolio management factors that corporations should focus on when it comes to making resource-allocation decisions across SBUs?

Answer 81

Portfolio management focuses on two types of factors: (1) opportunities presented by a particular industry or market and (2) the company’s resources, which determine its ability to take advantage of the identified opportunities.

Question 82

Why is it essential to identify the correct metrics when developing portfolio management models?

Answer 82

These metrics are the factors that allow a company to accurately assess the performance of each SBU and the attractiveness of each SBU’s market opportunities. For example, technological innovation could be a key underlying success factor for a particular company, so this should be considered when assessing its SBUs.

Question 83

What is the difference between a specialized SBU portfolio and a diversified portfolio?

Answer 83

A specialized portfolio involves SBUs with fairly narrow assortments consisting of one or a few product lines. In contrast, a diversified portfolio involves SBUs with fairly broad assortments containing multiple product lines.

Question 84

Describe the steps corporations usually take when deciding how to allocate resources across SBUs.

Answer 84

Resource allocation is often done by assessing each SBU’s competitive advantage and the attractiveness of the market in which it operates. When assessing individual business units, a company might also consider existing synergies among them.

Question 85

Good mission statements are essential to being a success in business. Describe the three major characteristics that good mission statements should have.

Answer 85

Major characteristics of mission statements include the following:
* focus on a limited number of goals
* stress on the company’s major policies and values
* a definition of the major markets that the company aims to serve
* a long-term view
* should be as short, memorable, and meaningful as possible

Question 86

Which of these five factors is NOT part of the Five Cs definition of a target market?
A) Customers
B) Competitors
C) Collaborators
D) Cost structure
E) Context

Answer 86

D

Question 87

Which of these most accurately reflects the definition of a firm’s marketing strategy?
A) Choosing a well-defined target and determining the value it intends to create in this market
B) Mapping the product portfolio against customer need profiles
C) Allocating resources to SBUs and defining their target markets
D) Defining the over-arching message and setting up sales plans
E) Defining the key aspects of the offering

Answer 87

A

Question 88

At which level of planning does a company detail the attributes of the offering that will create value in the chosen market?
A) Corporate
B) Tactics
C) Annual
D) Operations
E) Strategy

Answer 88

B

Question 89

Concerns about inflation and currency exchange rates and their effect on customers’ purchasing power would fall under which main element of the Five Cs framework?
A) Market
B) Company
C) Context
D) Customers
E) Collaborators

Answer 89

C

Question 90

Which of the analysis models discussed in the chapter is noted for being particularly relevant for marketers analyzing the competitive structure within a given industry?
A) The Five Cs framework
B) Michael Porter’s Five Forces framework
C) The Four Ps model
D) Michael Porter’s Five Cs framework
E) The Seven Ts framework

Answer 90

B

Question 91

Which component of the value proposition determines why the company would choose to develop one particular offering over other alternatives?
A) Collaborator value
B) Customer value
C) Company value
D) Social value
E) Economic value

Answer 91

B

Question 92

Which of these indicates the attractiveness of a marketing offering to a company’s business partners?
A) Collaborator value
B) Customer value
C) Company value
D) Social value
E) Economic value

Answer 92

A

Question 93

The intersection of company value, customer value, and collaborator value is known as the ________.
A) ideal market offering
B) strategic focus
C) alternative value proposition
D) optimal value proposition
E) acceptable value proposition

Answer 93

D

Question 94

Which of these is an accurate characterization of the optimal value proposition?
A) It maximizes value for customers, collaborators, and the company.
B) It maximizes value for customers while minimizing value to competitors.
C) It prioritizes company value over customer and collaborator value.
D) It balances the value for customers, collaborators, and the company.
E) It prioritizes customer value over company and collaborator value.

Answer 94

D

Question 95

The process of designing, communicating, and delivering customer value is embodied in which element of marketing management?
A) The marketing mix
B) Marketing strategy
C) SBU strategy
D) The marketing plan
E) The operational plan

Answer 95

A

Question 96

What is the function of incentives in the marketing mix?
A) To enhance the value of the offering by lowering its costs.
B) To enhance the value of the offering by lowering its costs or increasing its benefits.
C) To enhance the value of the offering by increasing its benefits.
D) To overcome inadequacies in the product element of the marketing mix.
E) To communicate about the offering to customers or collaborators.

Answer 96

C

Question 97

Which of these is NOT a part of the value-design process?
A) Product
B) Service
C) Brand
D) Price
E) Communication

Answer 97

E

Question 98

What is the ultimate purpose of the value map?
A) To explain the value of the marketing offering
B) To help collaborators understand how they fit in the marketing process
C) To help customers understand the value of a company’s offerings
D) To facilitate the development of a viable business model
E) To help employees see how their work contributes to the whole

Answer 98

D

Question 99

Which of these is an important limitation of the traditional Four Ps model of marketing planning?
A) It is difficult to remember.
B) It doesn’t include pricing.
C) It doesn’t work for intangible product offerings.
D) It combines communication and distribution as one element.
E) It regards brand as part of the product, rather than as a separate entity.

Answer 99

E

Question 100

Marketing communication tasks fall in which element of marketing management and planning?
A) Brand
B) Distribution
C) The marketing plan
D) Strategic planning
E) The marketing offering/marketing mix

Answer 100

E

Question 101

Which three major components are illustrated in a market value map?
A) Target market, value proposition, marketing offering
B) Optimum value, customer value, marketing offering
C) Optimum value, customer value, marketing mix
D) Customers, competition, collaborators
E) Customers, context, product

Answer 101

A

Question 102

Explain the difference between marketing strategy and marketing tactics.

Answer 102

Strategy involves choosing a well-defined market in which the company will compete and determining the value it intends to create in this market. Tactics, also called the marketing mix, make the company’s strategy come alive: They define the key aspects of the offering developed to create value in a given market. The tactics logically follow from the company’s strategy and reflect the way the company will make this strategy a market reality.

Question 103

Identify the major types of organizations that make up the collaborators component of the Five Cs model.

Answer 103

Collaborators can include suppliers, manufacturers, distributors (including dealers, wholesalers, and retailers), research-and-development entities, service providers, external sales forces, advertising agencies, and marketing research companies.

Question 104

Identify the major elements of the Five Cs framework for identifying the target market.

Answer 104

The five elements are the customers whose needs the company intends to fulfill, the competitors that aim to fulfill the same needs of the same target customers, the collaborators that help the company fulfill the needs of customers, the company that develops and manages the offering, and the context that will affect how the company develops and manages the offering.

Question 105

Explain why the widely studied Four Ps model of the market mix is no longer considered adequate by many marketing practitioners.

Answer 105

The Four Ps is simple and therefore easy to remember, but that simplicity limits its usefulness in contemporary marketing. Its limitations include failing to distinguish between the product and service components of the offering, treating brand as part of product rather than as a distinct entity with unique tactical considerations, and failing to distinguish communication activities from incentives.

Question 106

Identify the seven components or tactics in the marketing mix.

Answer 106

The seven elements are product, service, brand, price, communication, incentives, and distribution.

Question 107

Contrast the way customers view the value-creation process with the way companies view it.

Answer 107

The company regards value creation as a process of designing, communicating, and delivering value, whereas customers regard the process in terms of the attractiveness, awareness, and availability of the offering. Attractiveness reflects the benefits and costs that target customers associate with the product, service, brand, price, and incentives aspects of the offering. Awareness highlights the methods through which target customers are informed about the specifics of the offering. Availability consists of the ways in which target customers can acquire the offering.

Question 108

Identify the five factors that need to be considered when assessing the marketing context.

Answer 108

(1) The sociocultural context is characterized by social and demographic trends, value systems, religion, language, lifestyles, attitudes, and beliefs. (2) The technological context consists of new techniques, skills, methods, and processes for developing, communicating, and delivering market offerings. (3) The regulatory context includes taxes, import tariffs, and embargoes, as well as product specification and pricing, communication regulations, and intellectual property laws. (4) The economic context is made up of economic growth, money supply, inflation, and interest rates. (5) The physical context comprises natural resources, geographic location, topography, climate trends, and health conditions.

Question 109

What is the aim of the brand element of the market offering or marketing mix?

Answer 109

The aim of the brand is to identify the products and services produced by the company and differentiate them from those of the competition, in the process creating unique value over and above the product and service aspects of the offering.

Question 110

Describe the structure of a market value map.

Answer 110

The market value maps has three major sections: the target market, the value proposition to be presented to that market, and the market offering or marketing mix that fulfills the promise of that value proposition. The target market section has five subsections, discussing customers, collaborators, the company itself, competition, and context. The value proposition section has three subsections: customer value, collaborator value, and company value. The market offering section addresses the seven elements of the marketing mix: product, service, brand, price, communication, incentives, and distribution.

Question 111

Which phase of G-STIC concerns the logistics of creating the offering?
A) Implementation
B) Goals
C) Strategy
D) Tactics
E) Control

Answer 111

A

Question 112

In which phase of the G-STIC process do managers craft the value proposition?
A) Implementation
B) Goals
C) Strategy
D) Tactics
E) Control

Answer 112

C

Question 113

A balanced concern for people, planet, and profits is known as the ________
A) triple bottom line
B) Three Ps
C) performance control
D) optimal value proposition
E) balanced value proposition

Answer 113

A

Question 114

What are the two components of strategic marketing goals?
A) Focus and value
B) Benchmarks and value
C) Metrics and tactics
D) Tactics and plans
E) Focus and benchmarks

Answer 114

E

Question 115

When a marketing team from General Mills brainstorms names for a new breakfast cereal, which stage of the G-STIC process are they working in?
A) Tactics
B) Strategy
C) Goal
D) Control
E) Implementation

Answer 115

A

Question 116

Which of these is NOT a customer readiness-to-buy metric?
A) Awareness
B) Preference
C) Purchase intent
D) Trial rate
E) Customer churn

Answer 116

E

Question 117

Measuring consumer awareness of a company’s brands falls into which phase of the G-STIC process?
A) Deployment
B) Development
C) Implementation
D) Control (monitoring the environment)
E) Control (evaluating performance)

Answer 117

E

Question 118

Which of these would NOT be considered a strategic goal in G-STIC?
A) Achieving 20 percent net profit
B) Improving brand awareness
C) Improving social welfare
D) Enhancing corporate culture
E) Facilitating employee recruitment

Answer 118

A

Question 119

What does G-STIC stand for?
A) Growth-Synergy-Teamwork-Ideation-Creativity
B) Goal-Strategy-Teamwork-Individualism-Creativity
C) Goal-Strategy-Tactics-Implementation-Control
D) Goal Synergy and Technology Implementation Control
E) Growth Strategies, Tactics, and Investment Control

Answer 119

C

Question 120

T/F Strategic goals include such outcomes as net income, profit margins, earnings per share, and return on investment.

Answer 120

False

Question 121

Initial commercial deployment is always selective, focusing on specific segments of the target market to allow the company to assess market reaction before embarking on a wider rollout.

Answer 121

False

Question 122

What three main objectives must be specified to implement a company goal in the G-STIC model?

Answer 122

Implementing the company goal requires specifying what the company aims to achieve (goal focus), how much the company wants to achieve (quantitative benchmark), and when the company wants to achieve it (temporal benchmark).

Question 123

Which section typically comes first in a marketing plan?
A) Strategy
B) Situation overview
C) Executive summary
D) Goals
E) Control

Answer 123

C

Question 124

Which of these is NOT one of the specialized plans that often accompany a marketing plan?
A) Inventory plan
B) Product development plan
C) Service management plan
D) Brand management plan
E) Media plan

Answer 124

A

Question 125

Which of these is NOT a target audience of the marketing plan?
A) Company employees
B) Collaborators
C) Shareholders
D) Investors
E) Customers

Answer 125

E

Question 126

Which two sections make up the situation overview?
A) Competitive overview and company overview
B) Market overview and financial analysis
C) Funding plan and market overview
D) Company overview and market overview
E) Sales analysis and market overview

Answer 126

D

Question 127

How does the marketing plan compare to the business plan?
A) They are two names for the same document.
B) The marketing plan is narrower in scope.
C) The marketing plan is broader in scope.
D) The marketing plan is more current than the business plan.
E) The marketing plan is aimed at external rather than internal audiences.

Answer 127

B

Question 128

T/F The marketing plan serves two main functions: describing the company’s goal and proposed course of action and informing the relevant stakeholders about the goal and action plan.

Answer 128

False

Question 129

Describe the content of the situation overview section of a marketing plan.

Answer 129

The situation overview provides an overall evaluation of the environment in which the company operates, as well as of the markets in which the company competes and/or will compete. It is composed of two sections: the company overview that outlines the company’s history, culture, resources (competencies, assets, and offerings, and the market overview that outlines the markets in which the company currently manages offerings and those that the company could potentially target for future offerings.

Question 130

Identify the three main functions of the marketing plan

Answer 130

(1) It describes the company’s goal and proposed course of action, (2) informs the relevant stakeholders about the goal and action plan, and (3) persuades the relevant decision makers of the viability of the goal and the proposed course of action.

Question 131

The dynamic nature of marketing management is reflected in which element of the marketing plan?
A) The control section in the G-STIC portion
B) The strategy discussion
C) The situation overview
D) The goals section in the G-STIC portion
E) The tactics section in the G-STIC portion

Answer 131

A

Question 132

T/F The marketing audit should follow the G-STIC guidelines to analyze the soundness of the company’s goals, strategy, tactics, implementation, and controls.

Answer 132

True

Question 133

Identify the topics that consumer behavior researchers focus on.

Answer 133

Research on consumer behavior explores how individuals, groups, and organizations select, buy, use, and dispose of goods, services, ideas, or experiences to satisfy their needs and wants.

Question 134

Describe the three phases of the consumer behavior model.

Answer 134

Viewed as a process moving from the left to right, the model works in three stages:
1. The seven tactics of the marketing mix shaping the offering along with the context of the market in which the offering will be sold.
2. Those efforts are filtered through the cultural, social, and personal lenses of target customers, as well as being influenced by consumer motivation, perception, emotions, and memory.
3. Those consumer characteristics, in turn, influences the consumer buying process–a journey that entails recognition of a need, a search for the best means to fulfill that need, and evaluation of the available options to finally arrive at the ultimate decision of what, when, where, and how much to buy, and how to pay for these purchases.

Question 135

The A-B-C-D-E segments identified by statisticians and marketers studying the Brazilian consumer market are evidence of ________.
A) target marketing
B) consumer targeting
C) consumerism
D) social consumerism
E) social stratification

Answer 135

E

Question 136

What does “first in, first win” refer to when it comes to marketing to expectant parents?
A) Getting the first sale to parents after their last baby is born
B) Brand loyalty among families of procreation
C) The wide range of products that first-time parents need
D) The importance of reaching expectant parents early to win their trust
E) The fact that whoever gets the first sale to new parents gets all their business

Answer 136

D

Question 137

How do core values relate to behavior and attitude?
A) Core values go much deeper than either behavior or attitude.
B) Core values are the same as behavior.
C) Core values are the same as attitude.
D) People never behave in defiance of their core values.
E) People attitudes shape their core values, which in turn shape their behaviors.

Answer 137

A

Question 138

Which of the following would be the best illustration of a subculture?
A) A religion
B) A group of close friends
C) Your university
D) A fraternity or sorority
E) Your occupation

Answer 138

A

Question 139

A person’s ________ consist(s) of all the people who have a direct (face-to-face) or indirect influence on his/her attitudes or behavior.
A) subculture
B) family
C) social class
D) reference groups
E) social networks

Answer 139

D

Question 140

High school student Raphael is highly concerned about environmental issues. He is a strong supporter of the afforestation campaigns taken up by the environmental activists in his neighborhood. He wants to become a full time volunteer for their upcoming wildlife protection program and has even saved money to contribute to the cause. This group of environmental activists can be categorized under which of the following reference groups?
A) Primary group
B) Secondary group
C) Aspirational group
D) Dissociative group
E) Cognitive group

Answer 140

C

Question 141

If a direct-mail marketer wished to direct promotional efforts toward the family of ________, efforts need to be directed toward parents and siblings of the family members.
A) orientation
B) procreation
C) immediacy
D) intimacy
E) reference

Answer 141

A

Question 142

Consumers often choose and use brands that have a brand personality consistent with how they see themselves, also known as the ________ self-concept.
A) actual
B) ideal
C) others’
D) prohibitive
E) suggestive

Answer 142

A

Question 143

Consumers often choose and use brands that have a brand personality consistent with how they think others view them, also known as the ________ self-concept.
A) actual
B) others’
C) ideal
D) dual
E) perceptual

Answer 143

B

Question 144

Consumers who are highly sensitive to how others see them and who choose brands whose personalities fit the consumption situation are called ________.
A) change agents
B) self-motivators
C) self-monitors
D) self-adapters
E) opinion leaders

Answer 144

C

Question 145

________ portrays the “whole person” interacting with his or her environment.
A) Attitude
B) Personality
C) Lifestyle
D) Self-concept
E) Subculture

Answer 145

C

Question 146

For an employee at an organization, an annual appraisal can be considered a critical life event that impacts his or her consumption behavior.

Answer 146

False

Question 147

A person’s personality portrays the “whole person” interacting with his or her environment.

Answer 147

False

Question 148

Identify the personal characteristics that tend to influence buyers’ decisions.

Answer 148

age and stage in the life cycle, occupation and economic circumstances, personality and self-concept, and lifestyle and values.

Question 149

Explain the differences between culture, subculture, and social class.

Answer 149

Culture is the fundamental determinant of a person’s wants and behavior. Subcultures provide more specific identification and socialization of their members. Subcultures include nationalities, religions, racial groups, and geographic regions. Social class is a relatively homogeneous and enduring division in a society, that are hierarchically ordered and whose members share similar values, interests, and behaviors.

Question 150

Each person has personality characteristics that influence his or her buying behavior. What does personality mean in terms of buying traits?

Answer 150

Consumers typically choose and use brands with a brand personality consistent with their actual self-concept (how we view ourselves), although the match may instead be based on the consumer’s ideal self-concept (how we would like to view ourselves) or even on others’ self-concept of us (how we think others see us). These effects may be more pronounced for publicly consumed products than for privately consumed goods. On the other hand, consumers who are high “self-monitors”–that is, are sensitive to the way others see them–are more likely to choose brands whose personalities fit the consumption situation.

Question 151

Explain the differences between a role and status.

Answer 151

A role consists of the activities a person is expected to perform. Each role carries a status. For example, a senior vice-president has more status than a sales manager.

Question 152

When motivation researchers want to probe consumers’ mindsets indirectly to uncover information that can’t be obtained through explicit questioning, what interview approach do they often use?
A) Projective techniques
B) Observation
C) Ethnography
D) Online testing
E) Group surveys

Answer 152

A

Question 153

An audiophile who has invested $60,000 in a McIntosh home audio system is so brand loyal that he refuses to believe a new equipment review article that says a competing brand’s power amplifier is just as good as the McIntosh model he owns. What psychological phenomenon is this person demonstrating?
A) Selection attention
B) Brand loyalism
C) Brand determinism
D) Exclusive attention
E) Selective distortion

Answer 153

E

Question 154

Nodes and links make up what model of human memory?
A) The associative network memory model
B) The memory linkage model
C) The storage-retention-recall model
D) The nodal retrieval model
E) The virtual network model

Answer 154

A

Question 155

Facts about the world are stored in which type of long-term memory?
A) Semantic
B) Procedural
C) Episodic
D) Neural
E) Virtual

Answer 155

A

Question 156

All the brand-related thoughts, feelings, perceptions, images, experiences, beliefs, and attitudes that consumers hold in memory are known as ________.
A) brand associations
B) brand staying power
C) mind share
D) brand share
E) brand memory

Answer 156

A

Question 157

Six months after they purchased it, your aunt and uncle still can’t stop talking about their amazing, awesome, wonderful new car. You notice they seem to have completely forgotten the fact that their beloved vehicle has already had two serious safety recalls. What memory phenomenon are they demonstrating?
A) Interpretive decoding
B) Selective decoding
C) Selective encoding
D) Selective retention
E) Ego-defense memory

Answer 157

D

Question 158

In general, memory can be described as a process of ________ and retrieval.
A) decoding
B) practice
C) imprinting
D) retention
E) encoding

Answer 158

E

Question 159

Amtex electronics, a consumer products brand, frequently advertises its products inside supermarkets and retail stores to promote the process of memory ________ and stimulate purchase.
A) verification
B) retrieval
C) decoding
D) formation
E) augmentation

Answer 159

B

Question 160

T/F According to Maslow’s hierarchy of needs model, recognition, self-esteem, and status constitute a person’s social needs.

Answer 160

False

Question 161

Because attitudes economize on ________, they can be very difficult to change.
A) time and energy
B) energy and thought
C) effort and energy
D) processing time
E) memory recall

Answer 161

B

Question 162

What are the four key psychological processes that influence consumer response?

Answer 162

motivation, perception, learning, and memory.

Question 163

The steps consumers typically go through as they research, consider, choose, purchase, and use or dispose of products is often referred to as the ________.
A) marketing spectrum
B) marketing process
C) consumption process
D) consumer decision journey
E) consumer decision process

Answer 163

D

Question 164

Marketers can influence consumer decision making by shaping the ________, the environment in which consumer decisions are structured and buying choices are made.
A) decision architecture
B) consumption format
C) shopping space
D) shopping experience
E) consumption architecture

Answer 164

A

Question 165

You’re watching the NBA All-Star Game and notice the brand of shoe worn by the winner of the slam dunk contest. A little voice pops up in your head and says, “We should get some of those.” You have just experienced the effect of a(n) ________ in the elaboration likelihood model.
A) brand stimulus
B) peripheral cue
C) endorsement prompt
D) central cue
E) peripheral route

Answer 165

B

Question 166

You’ve just added a new gaming controller to your online shopping cart, and you’re ready to check out when you start to worry it might be too flimsy. What if it breaks after a month and you need to start all over again, spending even more time searching for and then buying a replacement? What phenomenon have you just experienced?
A) Opportunity risk
B) Physical risk
C) Personal risk
D) Functional risk
E) Psychological risk

Answer 166

A

Question 167

________ accounting refers to the manner in which consumers tend to place different transactions into different mental accounts, even though there is no logic to doing so.
A) Cost
B) Financial
C) Behavioral
D) Mental
E) Factual

Answer 167

D

Question 168

Which of the following can be considered an experiential information source?
A) Consumer-rating organizations
B) Mass media
C) Acquaintances
D) Websites
E) Personal handling and examination

Answer 168

A

Question 169

Maria considers buying a car after she notices the advantages experienced by her best friend from his new car. Which of the following forms of stimulus has activated Maria’s problem recognition process?
A) External stimuli
B) Internal stimuli
C) Peer stimuli
D) Secondary stimuli
E) Marketing induced stimuli

Answer 169

A

Question 170

With respect to consumer decision making, the ________ set is the set of strong contenders from which one will be chosen as a supplier of a good or service.
A) total
B) awareness
C) consideration
D) choice
E) decision

Answer 170

D

Question 171

A(n) ________ puts people into a frame of mind, such as liking or disliking an object, moving toward or away from it.
A) attitude
B) belief
C) feeling
D) position
E) stance

Answer 171

A

Question 172

Marketers need to identify the hierarchy of attributes that guide consumer decision making in order to understand different competitive forces and how these various sets get formed. This process of identifying the hierarchy is called ________.
A) market partitioning
B) brand association
C) market valuation
D) market estimation
E) market identification

Answer 172

A

Question 173

The expectancy-value model of attitude formation posits that consumers evaluate products and services by combining their ________.
A) needs
B) wants
C) desires
D) brand beliefs
E) consuming attitudes

Answer 173

D

Question 174

If a consumer is shopping for a smartphone, all the smartphone options available in the market—whether a consumer knows about them or not—is called the ________ set.
A) awareness
B) total
C) consideration
D) choice
E) inept

Answer 174

B

Question 175

A consumer is persuaded to buy a product by a message that requires little thought and is based on an association with a brand’s positive consumption experiences from the past. In this situation, the consumer used a(n) ________ route to arrive at this purchase decision.
A) central
B) peripheral
C) behavioral
D) subjective
E) objective

Answer 175

B

Question 176

Richard Petty and John Cacioppo’s ________ model, an influential model of attitude formation and change, describes how consumers make evaluations in both low- and high-involvement circumstances.
A) introspective
B) elaboration likelihood
C) stimulus-response
D) associative network memory
E) expectancy-value

Answer 176

B

Question 177

T/F The expectancy-value model of attitude formation posits that consumers evaluate products and services by combining their brand beliefs according to importance.

Answer 177

True

Question 178

How is the expectancy-value model used in the evaluation of alternatives as a consumer engages in a buying process?

Answer 178

The expectancy-value model of attitude formation posits that consumers evaluate products and services by combining their brand beliefs–the positives and negatives–according to importance. The model assists consumers in making choices.

Question 179

Which of these is NOT one of the functions of marketing research listed in the chapter?
A) Specifies the information required to address marketing issues
B) Designs methods for collecting information
C) Manages and implements the data collection process
D) Communicates the findings and their implications
E) Applies research results to the marketing mix

Answer 179

E

Question 180

What research insight did Walmart use to shift its reputation away from a purveyor of “cheap” merchandise?
A) The emotional lift from feeling anti-elitist
B) The logical redefinition of “cheap” to “well-priced”
C) The emotional benefit consumers get from feeling like smart shoppers
D) The logical benefit of saving money
E) The emotional benefit of always getting the best deal

Answer 180

C

Question 181

What is the typical marketing research budget as a percentage of company sales?
A) 30-40 percent
B) Less than 0.5 percent
C) At least 10 percent
D) 1 to 2 percent
E) 10 to 15 percent

Answer 181

D

Question 182

_______ provide diagnostic information about how and why we observe certain effects in the marketplace, and what that means to marketers.
A) Marketing insights
B) Marketing metrics
C) Marketing channels
D) Marketing information systems
E) Marketing-mix models

Answer 182

A

Question 183

Which of the following types of marketing research firms gathers consumer and trade information and then sells it for a fee (e.g., Nielsen Company)?
A) Custom marketing research firms
B) Syndicated-service research firms
C) Specialty-line marketing research firms
D) Generic marketing research firms
E) Focused marketing research firms

Answer 183

B

Question 184

A field-service firm is a ________ research firm.
A) custom marketing
B) syndicated-service
C) specialty-line marketing
D) consumer marketing
E) social marketing

Answer 184

C

Question 185

You are the marketing research director of a medium-sized manufacturing firm and you would like to engage an outside marketing research firm to conduct field interviews. Which of the following categories of marketing research firms should you use?
A) Syndicated-service research firms
B) Custom marketing research firms
C) Global research management firms
D) Specialty-line marketing research firms
E) Brand management specialty research firms

Answer 185

D

Question 186

Marketing research that seeks to quantify demand is considered ________.
A) descriptive
B) prescriptive
C) exploratory
D) narrative
E) causal

Answer 186

A

Question 187

Sales dropped 30 percent from last quarter, but no on can agree on why it happened. Some think it must be a new competitor in the market, some think it was an ill-advised change in the promotional message, some blame short staffing in customer support. What kind of market research should you engage in to find out what factor is behind the sales drop?
A) Exploratory
B) Descriptive
C) Causal
D) Open-ended
E) Close-ended

Answer 187

C

Question 188

What was the point of the “three minutes” approach that Thomson used in its ethnographic research with business customers?
A) To find out what users were doing three minutes before and three minutes after using a Thomson product
B) To find out how many customers could learn to use Thomson products in three minutes or less
C) To gather as much information as possible from each customer in three minutes
D) To give each interview subject a three-minute heads-up that the interview was about to start
E) To find out how many competitive brands customers could name in three minutes

Answer 188

A

Question 189

What is an omnibus survey?
A) A survey that explores transportation needs
B) A survey that asks every major question a company has
C) A survey that uses multiple question types
D) A survey that has questions from multiple companies
E) A survey that is conducted only once per year

Answer 189

D

Question 190

If the goal of marketing research is to shed light on the real nature of a problem and to suggest possible solutions or new ideas, the research is said to be ________.
A) descriptive
B) quantitative
C) primary
D) secondary
E) exploratory

Answer 190

E

Question 191

Unistar Inc. produces a wide range of offerings such as grocery items and personal care products. If Unistar wants to estimate the demand for its new line of body moisturizers, it should opt for ________ research.
A) descriptive
B) exploratory
C) prescriptive
D) causal
E) qualitative

Answer 191

A

Question 192

A company would like to study the impact of advertising expenditure on sales volume and sales revenue. This is an example of ________ research.
A) prescriptive
B) causal
C) secondary
D) exploratory
E) qualitative

Answer 192

B

Question 193

Designing a research plan calls for decisions on all of the following EXCEPT ________.
A) research objectives
B) data sources
C) research approaches
D) research instruments
E) sampling plans

Answer 193

A

Question 194

Which of the following is true of qualitative research?
A) It is a structured measurement approach that permits a range of possible responses.
B) It is indirect in nature, so consumers may be less guarded.
C) It requires large sample sizes.
D) Its results can be easily generalized to broader populations.
E) It generally results in similar results and conclusions across researchers.

Answer 194

B

Question 195

The John Deere brand might make someone think of a rugged, Midwestern male who is hardworking and trustworthy, which the brand management folks would learn through ________ research.
A) brand personification
B) projective technique
C) visualization
D) laddering
E) brand imaging

Answer 195

A

Question 196

If a marketing researcher wishes to reach those people who would not give personal interviews or whose responses might be biased or distorted by interviewers, he or she should use ________.
A) mail questionnaires
B) telephonic interviews
C) online interviews
D) focus groups
E) observational research

Answer 196

A

Question 197

What are the five steps in the marketing research process?

Answer 197

1. define the problem
2. develop the research plan
3. collect the information
4. analyze the information
5. make the decision

Question 198

Describe what happens with “bubble exercises.”

Answer 198

In “bubble exercises” empty bubbles, like those in cartoons, appear in scenes of people buying or using certain products or services. Subjects fill in the bubbles, indicating what they believe is happening or being said.

Question 199

Explain the purpose and nature of experimental research.

Answer 199

Experimental research is designed to capture cause-and-effect relationships by eliminating competing explanations of the observed findings. Experiments call for selecting matched groups of subjects, subjecting them to different treatments, controlling extraneous variables, and checking whether observed response differences are statistically significant.

Question 200

Explain qualitative research and why it might be useful to marketers. What are its major drawbacks?

Answer 200

Qualitative research techniques are relatively unstructured measurement approaches to permit a range of possible responses, and they are a creative means of ascertaining consumer perceptions that may otherwise be difficult to uncover. Because of the freedom it affords both researchers in their probes and consumers in their responses, qualitative research can often be an especially useful first step in exploring consumers’ brand and product perceptions. It is indirect in nature, so consumers may be less guarded and reveal more about themselves in the process.

Qualitative research does have its drawbacks. The samples are often very small and may not necessarily generalize to broader populations. And different researchers examining the same qualitative results may draw very different conclusions.

Question 201

Other things being equal, the company’s ________ depends on the relative scale and effectiveness of its market expenditures.
A) positioning
B) brand loyalty
C) market share
D) sales potential
E) customer service ratings

Answer 201

C

Question 202

During a forecasting cycle, companies typically prepare a(n) ________ forecast first.
A) industry
B) company
C) macroeconomic
D) user demand
E) reachable demand

Answer 202

C

Question 203

The ________ forecast projects such variables as inflation, unemployment, interest rates, consumer spending, business investment, government expenditures, and net exports.
A) industry
B) company
C) macroeconomic
D) user demand
E) reachable demand

Answer 203

C

Question 204

________ helps determine how consumers value different attributes (such as product features, service benefits, and price) that make up a particular offering.
A) Optimum value analysis
B) Conjoint analysis
C) Competitive analysis
D) User needs analysis
E) Demand analysis

Answer 204

B

Question 205

________ breaks past sales into four components (trend, cycle, seasonal, and erratic) and projects them into the future.
A) Time-series analysis
B) Exponential smoothing
C) Statistical demand analysis
D) Econometric analysis
E) Sales force composite

Answer 205

A

Question 206

From all the possible levels of investment in a market, only one level of industry marketing expenditure will actually occur. The market demand corresponding to this level is called the ________.
A) market minimum
B) market share
C) market forecast
D) market potential
E) company demand

Answer 206

C

Question 207

A ________ is a conservative estimate of the expected volume of sales for a business, primarily for making purchasing, production, and cash flow decisions.
A) sales budget
B) company sales forecast
C) sales quota
D) company sales potential
E) market potential

Answer 207

A

Question 208

A ________ is the company’s estimated share of market demand at alternative levels of company marketing effort in a given time period.
A) sales budget
B) market demand
C) company demand
D) company sales potential
E) market potential

Answer 208

C

Question 209

Time-series analysis based on past sales breaks past time series into four components — trend, cycle, seasonal, and ________.
A) regular
B) annual
C) erratic
D) recurring
E) periodic

Answer 209

C

Question 210

________ projects the next period’s sales by combining an average of past sales and the most recent sales, giving more weight to the latter.
A) Time-series analysis
B) Statistical demand analysis
C) Econometric analysis
D) Cost effectiveness analysis
E) Exponential smoothing

Answer 210

E

Question 211

________ measures the impact of a set of causal factors (such as income, marketing expenditures, and price) on the sales level.
A) Time-series analysis
B) Statistical demand analysis
C) Econometric analysis
D) Cost effectiveness analysis
E) Exponential smoothing

Answer 211

B

Question 212

Briefly describe the methods of forecasting future demand on the basis of past sales.

Answer 212

Answer: The methods are:
1. Time-series analysis, that breaks past time series into four components (trend, cycle, seasonal, and erratic) and projects them into the future
2. Exponential smoothing, that projects the next period’s sales by combining an average of past sales and the most recent sales, giving more weight to the latter
3. Statistical demand analysis, which measures the impact of a set of causal factors (such as income, marketing expenditures, and price) on the sales level
4. Econometric analysis, which builds sets of equations that describe a system and statistically derives the different parameters that make up the equations statistically.

Question 213

Which of these metrics measures interaction and engagement with consumers from automated e-mails?
A) Website analytics
B) Social media presence
C) Permission marketing statistics
D) Push statistics
E) Pull statistics

Answer 213

C

Question 214

Researchers use ________ such as regression analysis to investigate how each marketing element influences brand sales, market share, and other marketing outcomes.
A) breakdown metrics
B) multivariate analyses
C) conjoint analyses
D) long-term forecasts
E) factoring methods

Answer 214

B

Question 215

London Business School’s Tim Ambler believes the evaluation of marketing performance can be split into two parts: ________.
A) long-term results and changes in brand equity
B) short-term results and changes in brand equity
C) long-term results and changes in consumer perceptions
D) short-term results and changes in profitability
E) changes in market share and changes in profitability

Answer 215

B

Question 216

Marketing ________ analyze(s) data from a variety of sources, such as retailer scanner data, company shipment data, pricing, media, and promotion spending data, to understand more precisely the effects of specific marketing activities.
A) metrics
B) mix models
C) forecasting
D) intelligence databases
E) decision systems

Answer 216

B

Question 217

When the marketers of a mobile phone manufacturing company want to determine the impact of individual media such as television and online display ads on sales as well as that of trade activities like every day low price, off-shelf display and so on, they usually use ________.
A) marketing metrics
B) market segmentation strategies
C) market capitalization techniques
D) market basket analysis
E) marketing-mix models

Answer 217

E

Question 218

What are the two key market-based scorecards that should be incorporated in a marketing dashboard?

Answer 218

Answer: Company input to the marketing dashboard should include two key market-based scorecards: one that reflects performance and one that provides possible early warning signals.

Question 219

How has media fragmentation complicated the strategy of mass marketing?
A) By expanding the number of products that need to be produced
B) By opening the company up to greater competition
C) By making it more difficult and more expensive to reach a mass audience
D) By losing messaging control through social media exchanges
E) By losing the ability to respond to individual customer communications

Answer 219

c

Question 220

________ strives to reach all strategically important customers in an effective and cost-efficient manner.
A) Strategic targeting
B) All-segment marketing
C) Customer focus
D) Tactical targeting
E) Customer prioritization

Answer 220

D

Question 221

Coca-Cola’s original marketing strategy that offered a single drink Coca-Cola Classic in a single sized bottle with the advertising theme “Coke is it,” is an example of ________ marketing.
A) concentrated
B) niche
C) differentiated
D) micro
E) undifferentiated

Answer 221

E

Question 222

________ is a reflection of the company’s ability to outdo the competition in fulfilling the needs of target customers—in other words, to create superior customer value.
A) Target profitability
B) Target compatibility
C) Segment ranking
D) Segment priority
E) Competitive compatibility

Answer 222

B

Question 223

A ________ has three characteristics: (1) It is a source of competitive advantage and makes a significant contribution to perceived customer benefits, (2) it has applications in a wide variety of markets, and (3) it is difficult for competitors to imitate.
A) strategic competency
B) company strength
C) benefit strength
D) core competency
E) tactical advantage

Answer 223

D

Question 224

________ refers to nonmonetary benefits that customers bring to the company.
A) Customer-company benefits
B) Tactical value
C) Perceived value
D) Nonmeasurable value
E) Strategic value

Answer 224

E

Question 225

Lead users or early adopters can present important ________ to a company in the early stages of a product launch.
A) information value
B) scale value
C) monetary value
D) confirmation value
E) company value

Answer 225

A

Question 226

Target customers can create two kinds of value for a company: monetary and ________.
A) tactical
B) financial
C) strategic
D) market share
E) profitability

Answer 226

C

Question 227

Which of these was NOT mentioned in the chapter as one of the essential for the success of a company’s targeting strategy?
A) Business infrastructure
B) Access to scare resources
C) First mover advantage
D) Skilled employees
E) Strong brands

Answer 227

C

Question 228

What are the three main types of strategic value that customers can bring to a company?

Answer 228

The three main types of strategic value are social value, scale value, and information value.

Question 229

Identify and provide examples of six company resources that are essential to success in its targeting strategy.

Answer 229

• Business infrastructure (examples include manufacturing infrastructure and service infrastructure such as call centers and customer relationship management solutions)
• Access to scarce resources (examples include prime retail locations or unique natural resources)
• Skilled employees (including those with valuable technological, operational, and business expertise in such as areas as research and development and consulting)
• Technological expertise (including proprietary processes and intellectual property such as patents and trade secrets)
• Strong brands (particularly in commoditized industries where only minor differences exist among the competitive products and services; the Coca-Cola brand is a great example)
• Collaborator networks (including vertical networks of collaborators in the company’s supply chain and horizontal networks of manufacturing and other functional capabilities)

Question 230

A company that analyzes web-surfing habits to infer consumers’ interest in cultural activities is using ________ factors to for tactical targeting.
A) personal
B) behavioral
C) demographic
D) psychographic
E) geographic

Answer 230

D

Question 231

Which of these statements about single-segment marketing is true?
A) It is the exception to the rule; most companies target multiple segments.
B) It is invariably more successful than the unfocused multi-segment approach.
C) It is the end goal of most developing companies.
D) Companies targeting single segments usually focus on large, vaguely defined groups of customers.
E) It is never a good way to achieve a strong market presence.

Answer 231

A

Question 232

Which of these is one of the recognized approaches to selective specialization?
A) Product specialization
B) Brand specialization
C) Reputational specialization
D) Innovation specialization
E) Need specialization

Answer 232

A

Question 233

In which of these strategies does a firm concentrate on meeting multiple needs of a given customer group?
A) Product specialization
B) Brand specialization
C) Reputational specialization
D) Market specialization
E) Need specialization

Answer 233

D

Question 234

If Ford markets its Transit van to government agencies, package delivery companies, and airport shuttle firms, it is engaging in the ________ specialization form of multi-segment targeting.
A) product
B) market
C) customer
D) brand
E) niche

Answer 234

A

Question 235

Which of the following best represents the chief advantage of pursuing a selective specialization multi-segment strategy?
A) It makes the company almost bulletproof to competitors’ actions.
B) It minimizes the firm’s risk through diversification.
C) It creates synergy between markets.
D) It is a low-cost strategy.
E) It treats all buyers the same and, therefore, lowers promotion costs.

Answer 235

B

Question 236

Briefly differentiate product specialization and market specialization.

Answer 236

With product specialization, the firm sells a certain product to several different market segments. A microscope manufacturer, for instance, sells to university, government, and commercial laboratories, making different instruments for each and building a strong reputation in the specific product area. The downside risk is that the product may be supplanted by an entirely new technology. With market specialization, the firm concentrates on serving many needs of a particular customer group, such as by selling an assortment of products only to university laboratories. The firm gains a strong reputation among this customer group and becomes a channel for additional products its members can use. The downside risk is that the customer group may suffer budget cuts or shrink in size.

Question 237

Which of these is an advantage some companies have discovered after targeting lower-income segments of consumers?
A) Less competition
B) Reputational rebound
C) Lower expectations
D) More sales channels
E) Simpler distribution

Answer 237

A

Question 238

The PRIZM segments the United States to a neighborhood level using ________.
A) income data
B) postal data
C) demographics
D) GPS tracking
E) geoclustering

Answer 238

E

Question 239

Understanding why certain consumers shun a particular product would be a question raised in ________ segmentation.
A) demographic
B) behavioral
C) psychographic
D) geographic
E) belief

Answer 239

B

Question 240

What is a risk associated with targeting heavy users of a given product category?
A) Heavy users routinely expect discounts.
B) Heavy users can dominate distribution channels.
C) Some heavy users are switchers who show no loyalty to any brand and are always looking for the lowest price.
D) Heavy users tend to be vocal complainers on social media.
E) Supporting several light users is cheaper than supporting one heavy user.

Answer 240

C

Question 241

The VALS framework is one of the oldest and best known ________ segmentation systems.
A) psychographic
B) demographic
C) geographic
D) economic
E) behavioral

Answer 241

A

Question 242

American Airlines’ Rainbow Team with its dedicated LGBT staff and website is an example of ________ segmentation.
A) demographic
B) psychographic
C) behavioral
D) geographic
E) belief

Answer 242

B

Question 243

When the Modern Museum of Art separated its consumers by whether they were culture-oriented or outdoor-oriented for its new exhibit on art that used natural materials, they were using ________ segmentation.
A) psychographic
B) personality
C) behavioral occasions
D) social class
E) demographic

Answer 243

A

Question 244

Pampers divides its market demographically on the basis of ________ into prenatal, new baby, baby, toddler, and preschooler.
A) life stage
B) gender
C) age
D) income
E) social class

Answer 244

C

Question 245

Mingmei was buying all her groceries from Home Needs supermarket for the past 5 years. She recently came across The Convenience Store, another supermarket just a few miles away from her place and started buying her groceries from them. Mingmei can be best described as a(n) ________.
A) split loyal
B) antiloyal
C) shifting loyal
D) hard-core loyal
E) switcher

Answer 245

C

Question 246

When Amy goes shopping for clothes, she goes into every store in the mall looking for the best deal. She is very price conscious. On the basis of loyalty status, Amy can be described as a(n) ________.
A) switcher
B) split loyal
C) shifting loyal
D) hard-core loyal
E) anti-loyal

Answer 246

A

Question 247

Mothers-to-be are potential users who will turn into heavy users of infant products and services. By targeting mothers-to-be as future heavy users, producers of these products and services are segmenting consumers on the basis of ________.
A) attitude
B) buyer-readiness stage
C) loyalty status
D) user status
E) benefits

Answer 247

D

Question 248

T/F The main dimensions of the VALS segmentation framework are consumer motivation and consumer resources.

Answer 248

True

Question 249

With respect to loyalty status, if a consumer is loyal to two or three brands, he or she is called shifting loyal.

Answer 249

False

Question 250

Identify the four market segment groups based on brand loyalty status and list what a company can learn from analyzing the degrees of brand loyalty.

Answer 250

Marketers usually envision four groups based on brand loyalty status:
1. hard-core loyals
2. split loyals
3. shifting loyals
4. switchers

Hard-core loyals can help identify the products’ strengths. Split loyals can show the firm which brands are most competitive with its own. By looking at customers who are shifting away from its brand, the company can learn about its marketing weaknesses and attempt to correct them.

Question 251

If a heavy equipment manufacturer decided not to pursue customers who prefer leasing over buying, it would be using which segmentation variable?
A) Economic stability
B) Operating variables
C) Demographic factors
D) Purchasing approaches
E) Situational factors

Answer 251

D

Question 252

E-commerce has heightened expectations among consumers and businesses alike for fast delivery. Products that used to arrive in a week or two are now expected to arrive overnight or even the same day. However, not all companies are equipped or willing to respond to this new expectation near-immediate delivery. If you chose not to target customers who expected this level of service, which segmentation variable would you be using?
A) Economic stability
B) Operating variables
C) Demographic factors
D) Purchasing approaches
E) Situational factors

Answer 252

E

Question 253

Urgency, specific application, and size of order are examples of ________ segmentation variables for business markets.
A) situational factors
B) demographic
C) purchasing approaches
D) personal characteristics
E) operating variables

Answer 253

A

Question 254

A marketer is interested in segmenting a business market based on technology and customer capabilities. Which of the following major segmentation variables would the marketer most likely use to assist with the task?
A) Demographic variables
B) Purchasing approaches
C) Situational factors
D) Personal characteristics
E) Operating variables

Answer 254

E

Question 255

A marketer is interested in segmenting a business market on ________ if the marketer intends to eventually segment the market based on loyalty and attitudes toward risk.
A) situational factors
B) purchasing approaches
C) personal characteristics
D) operating variables
E) demographic variables

Answer 255

C

Question 256

A marketer interested in segmenting a business market based on ________ intends to eventually segment the market based on power structure and nature of existing relationship.
A) situational factors
B) purchasing approaches
C) personal characteristics
D) operating variables

Answer 256

B

Question 257

Which of these is NOT one of the constraints on consumers’ value maximization as they face purchase decisions?
A) Search costs
B) Limited knowledge
C) Mobility
D) Income
E) Self-belief

Answer 257

E

Question 258

________ is the perceived value of the bundle of functional, psychological, and monetary benefits customers expect from a given market offering because of the product, service, and image.
A) Customer perception
B) Positioning
C) Total customer benefit
D) Product bundling
E) Emotional return

Answer 258

C

Question 259

________ is the perceived bundle of functional, psychological, and monetary costs customers will incur in evaluating, obtaining, using, and disposing of the given market offering.
A) Total customer cost
B) Incurred cost
C) Net value
D) The consumer pain point
E) Product drawback

Answer 259

A

Question 260

The ________ is based on the difference between benefits the customer gets and the costs he or she assumes for different choices.
A) customer net benefit
B) market position
C) psychological position
D) augment product value
E) customer value proposition

Answer 260

E

Question 261

How does the value proposition relate to the positioning?
A) The value proposition is the same thing as the positioning.
B) The value proposition is more encompassing and includes the entire cluster of customer benefits.
C) The value proposition is a subset of the positioning.
D) The value proposition is a customer-facing statement whereas the positioning is a company-facing statement.
E) The value proposition can be viewed as the conceptual opposite of the positioning.

Answer 261

B

Question 262

Why does a positioning need to be somewhat aspirational in nature?
A) Consumers identify with brands that dare to dream big.
B) An aspirational positioning can distract from the offering’s shortcomings.
C) Nobody wants to buy a product that is “just good enough.”
D) An aspirational positioning gives the brand room to grow and improve.
E) Consumers care more about what a brand could be than what it is.

Answer 262

D

Question 263

Unlike the value proposition, which articulates all benefits and costs of the offering, the ________ zeroes in on the key benefits that will provide consumers with a reason to choose the company’s offering.
A) price proposition
B) peak value statement
C) marketing strategy
D) positioning
E) tactical plan

Answer 263

D

Question 264

________ refers to the products or sets of products with which a brand competes and which function as close substitutes.
A) Consumer profitability analysis
B) Competitive frame of reference
C) Category membership
D) Value membership
E) Demand field

Answer 264

C

Question 265

When Method Products highlights the environmentally friendly aspects of its products and overall business model, it is attempting to differentiate itself in the cleaning products category via ________.
A) popularity
B) consumer wishes
C) up-market appeal
D) transparency
E) authenticity

Answer 265

E

Question 266

Marketers can use ________ to reveal “holes” or “openings” that suggest unmet consumer needs and marketing opportunities.
A) positioning
B) perceptual maps
C) brand maps
D) gap analysis
E) segmentation

Answer 266

B

Question 267

Occasionally, a company will be able to ________ two frames of reference with one set of points of difference and points of parity.
A) leap
B) straddle
C) connect
D) split
E) invert

Answer 267

B

Question 268

If consumers believe that low-priced luxury car can’t possibly be very luxurious, the company is wrestling with the problem of ________ attributes or benefits.
A) misunderstood
B) false or faux
C) misaligned
D) inversely related
E) misframed

Answer 268

D

Question 269

Which of the following terms is most closely associated with the statement: “attributes or benefits consumers strongly associate with a brand, positively evaluate, and believe that they could not find to the same extent with a competitive brand”?
A) Points of inflection
B) Points of difference
C) Points of parity
D) Points of value
E) Points of presence

Answer 269

B

Question 270

The three criteria that determine whether a brand association can truly function as a point of difference are ________.
A) comparability, authenticity, deliverability
B) desirability, peculiarity, deliverability
C) deviance, peculiarity, deformity
D) desirability, deliverability, differentiability
E) differentiability, authenticity, desirability

Answer 270

D

Question 271

________ are attributes or benefits that consumers view as essential to a legitimate and credible offering within a certain product or service class.
A) Category points of difference
B) Conceptual points of parity
C) Competitive points of parity
D) Category points of parity
E) Competitive points of difference

Answer 271

D

Question 272

Philip Morris bought Miller Brewing and launched low-calorie beer at a time when consumers had the impression that low-calorie beer does not taste as good as normal beer. What did the company try to build when it conveyed the fact that the beer contained one third less calories and hence it is less filling?
A) Points of difference
B) Points of conflict
C) Points of parity
D) Points of presence
E) Points of inflection

Answer 272

A

Question 273

A marketer who wants to anchor a point of difference for Dove soap on brand benefits might emphasize which of the following?
A) The soap is one-quarter cleansing cream.
B) Dove products include bar soaps and shampoos.
C) Dove soap helps users have softer skin.
D) The soap brand has global presence.
E) The brand has recently launched soap for men

Answer 273

C

Question 274

Straddle positions ________.
A) help firms to analyze who their competitors are
B) allow brands to expand their market coverage and potential customer base
C) are a necessity while creating a firm’s vision and mission statement
D) assist firms in collecting information on competitors that will directly influence their strategy
E) are ambiguous moral principles behind the operation and regulation of marketing

Answer 274

B

Question 275

________ is based on deep metaphors that connect to people’s memories, associations, and stories.
A) Cultural branding
B) Narrative branding
C) Brand journalism
D) Emotional branding
E) Personal branding

Answer 275

B

Question 276

Which element of a brand story framework relates to the time, place, and context of the brand story?
A) Cast
B) Pitch
C) Narrative arc
D) Setting
E) Language

Answer 276

D

Question 277

Which element of a brand story framework relates to the authenticating voice, metaphors, symbols, themes, and leitmotifs?
A) Narrative arc
B) Context
C) Language
D) Setting
E) Cast

Answer 277

C

Question 278

What are the five elements of narrative branding?

Answer 278

Some researchers see narrative branding as based on deep metaphors that connect to people’s memories, associations, and stories. They identify five elements of narrative branding:
1. The brand story in terms of words and metaphors
2. The consumer journey in terms of how consumers engage with the brand over time and touch points where they come into contact with it
3. The visual language or expression for the brand
4. The manner in which the narrative is expressed experientially in terms of how the brand engages the senses
5. The role/relationship the brand plays in the lives of consumers
Diff: 3

Question 279

ome researchers see narrative branding as based on deep metaphors that connect to people’s memories, associations, and stories. Briefly describe their framework for a brand story.

Answer 279

ased on literary convention and brand experience, narrative branding uses the following framework for a brand story:
* Setting. The time, place, and context
* Cast. The brand as a character, including its role in the life of the audience, its relationships and responsibilities, and its history or creation myth
* Narrative arc. The way the narrative logic unfolds over time, including actions, desired experiences, defining events, and the moment of epiphany
* Language. The authenticating voice, metaphors, symbols, themes, and leitmotifs

Question 280

What methods can the coffee shop chain Belling use to convey its category membership?

Answer 280

The three main ways to convey a brand’s category membership are announcing category benefits, comparing to exemplars, and relying on the product descriptor.

Question 281

What is the estimated failure rate of new products?
A) Less than 10 percent
B) Between 10 and 20 percent
C) Around 25 percent
D) Around 50 percent
E) As high as 95 percent

Answer 281

E

Question 282

Intrapreneurs working on new product designs and plans are mostly to be found working in ________.
A) product management departments
B) venture teams
C) new-product departments
D) communities of practice
E) skunk squads

Answer 282

B

Question 283

When a firm has a valid business model in hand for a new offering, what is its next step in the stage-gate framework?
A) Concept development
B) Idea generation
C) Commercial deployment
D) Offering development
E) Sales prospecting

Answer 283

D

Question 284

Designing and validating a prototype version of a potential offering occurs during the ________ stage of the stage-gate framework.
A) concept development
B) idea generation
C) commercial deployment
D) offering development
E) business-model design

Answer 284

A

Question 285

Conducting a market test occurs in the ________ stage of the stage-gate framework.
A) offering implementation
B) idea generation
C) business-model design
D) commercial deployment
E) offering development

Answer 285

A

Question 286

The Keurig single-serving coffee pod represents what kind of innovation?
A) Supplemental innovation
B) New-to-the-world innovation
C) Incremental innovation
D) New-market innovation
E) Predicted innovation

Answer 286

B

Question 287

After developed product concepts are validated by assessing their technological feasibility and potential to fulfill an uncovered customer need, what is a company’s next step toward commercialization?
A) Offering implementation
B) Idea generation
C) Business-model design
D) Commercial deployment
E) Offering development

Answer 287

C

Question 288

If Caterpillar is developing a new compact front-end loader for use on residential construction sites but determines that the product won’t create enough value for the company or its distribution collaborators, which gate in the stage-gate framework stopped the project?
A) Idea validation
B) Concept validation
C) Business-model validation
D) Offering validation
E) Test market

Answer 288

C

Question 289

Most new-product activities are devoted to ________.
A) changing the target markets
B) developing new-to-the-world products
C) introducing backward integration
D) improving existing products
E) changing the existing market dynamics

Answer 289

D

Question 290

A team formed at Intercom Inc. to develop new products conducts most of its meetings at informal locations away from office. These workplaces are called ________.
A) skunkworks
B) idea funnels
C) research centers
D) stage-gate systems
E) contextual bases

Answer 290

A

Question 291

Why is top-down idea generation the preferred way of coming up with new product ideas?
A) It is based on viable market opportunities.
B) It is cheaper.
C) It is faster.
D) It uses fewer company resources.
E) It lets companies bypass stages in the stage-gate framework.

Answer 291

A

Question 292

________ involves customers interacting with prototypes to see how they perform in different applications and to ensure that the final product will be well received in the market.
A) Beta testing
B) Alpha testing
C) Market testing
D) Omega testing
E) Lab testing

Answer 292

A

Question 293

________ involves members of the firm interacting with prototypes to see how they perform in different applications and to ensure that the final product will be well received in the market.
A) Beta testing
B) Alpha testing
C) Market testing
D) Omega testing
E) Lab testing

Answer 293

B

Question 294

Consumer preferences for alternative product concepts can be measured through ________, a method for deriving the utility values that consumers attach to varying levels of a product’s attributes.
A) concept testing
B) perceptual mapping
C) gap level analysis
D) conjoint analysis
E) morphological analysis

Answer 294

D

Question 295

With ________, respondents see different hypothetical offers formed by combining varying levels of the attributes, then rank the various offers.
A) gap level analysis
B) conjoint analysis
C) perceptual mapping
D) concept testing
E) morphological analysis

Answer 295

B

Question 296

Which of the following products normally undergo alpha and beta testing?
A) Food products
B) Expensive industrial goods
C) Consumer products
D) Commodities
E) FMCG products

Answer 296

B

Question 297

Describing how the company will create, communicate, and deliver value to its target customers, collaborators, and the company stakeholders is embodied in which component of business-model design?
A) Target market
B) Value proposition
C) Market offering
D) Marketing plan
E) Business plan

Answer 297

C

Question 298

Which of these products would potentially benefit the most from market testing?
A) An all-new model of Chevrolet pickup truck
B) A larger version of a Samsung smartphone
C) An update to the Duolingo language-learning app
D) A new flavor of Cheerios breakfast cereal
E) A spinoff of a successful mutual fund that targets a different investment sector

Answer 298

A

Question 299

Why does General Mills prefer to launch new products in 25 percent of the country?
A) This keeps its plants operating at optimal capacity.
B) It’s an area too large for rivals to disrupt.
C) This makes the best use of retailer capacity.
D) Retailers won’t cooperate with larger launches.
E) Retailers won’t cooperate with smaller launches.

Answer 299

B