MKT421 Week 5 Final Exam â€“ 2014 (100% correct) 1 A producer might use a â€œpulling policyâ€ rather than a â€œpushing policyâ€ if: Â• Intermediaries are reluctant to handle a new product. Â• Its sales force has been very successful getting wholesalers and retailers to handle its product. Â• It has a very limited promotion budget. Â• It is offering a very â€œhigh-techâ€ product to a small product-market. 2 When new product ideas are chosen based on ratings and comments from customers, this process is called ______. Â• Creative resourcing Â• Idea engineering Â• Reaction engineering Â• Crowdsourcing 3 The primary purpose of branding is: Â• To prevent competitors from stealing product ideas. Â• To boost customer satisfaction. Â• To identify a product. Â• To enhance package design. 4 Â• The company tries to follow an organized new-product development processÂ—rather than using a faster and more spontaneous, â€œrace-to-marketâ€ approach. Â• The managers worry too much about the competition. 5 Genetech Corp. has invested heavily to develop a patented new product. Genetech wants to achieve a rapid return on its investment. It probably should set a ______________ pricing objective. Â• Status quo Â• Target return Â• Profit maximization Â• Sales-oriented 6 In the American Marketing Associationâ€™s Statement of Ethics, which ethical value stresses a firmâ€™s attempts to balance the needs of its buyers with the interests of sellers? Â• Responsibility Â• Citizenship Â• Fairness Â• Honesty 7 David Oreck advertises Oreck vacuum cleaners via commercials that run on national radio programs. He encourages consumers to â€œÂ…try my 8-pound Oreck vacuum for free for 30 days,â€ and to return free-trial period and availability of a toll-free number are devices used mainly to: Â• Get attention. Â• Arouse desire. Â• Obtain action. Â• Hold interest. 8 Most firms in the business world set their prices using: Â• Supply and demand analysis. Â• Federal price guidelines. Â• Cost-oriented price setting. Â• Demand-oriented price setting. 9 Compared with other approaches to business, the marketing concept is distinct in that it: Â• Focuses on sales. Â• Focuses on satisfying customersâ€™ needs. Â• Produces new products and services. Â• Creates a broad assortment of products. 10 More than 600,000 loyal customers signed up in advance to for sale in the U.S. What type of response behavior were these Apple followers demonstrating? Â• Dissonance response Â• Low-involvement buying Â• Routinized response Â• Limited problem solving 11 In which quadrant of the SWOT analysis tool does the following fit? A firm is in a fast-growing industry. Â• Weaknesses Â• Strengths Â• Opportunities Â• Threats 12 A useful tool for organizing the competitor analysis is: Â• Rivals chart. Â• The competitive summary. Â• The oligopoly chart. Â• A competitor matrix. 13 From the perspective of macro-marketing, e-commerce specialists CarFax (which provides vehicle history reports) and Cars.com (a website offering auto comparison shopping) have emerged within the auto industry because: Â• The role of the automotive sales person is becoming obsolete. Â• The market needs competitive rivals to auto dealerships. Â• The information they provide makes the exchange process between producers and consumers more efficient and effective. Â• Auto manufacturers need to sell direct to consumers. 14 Which of the following is true of direct distribution? Â• Direct distribution always serves customer needs better and at a lower cost. Â• It requires a significant investment in facilities. Â• Most firms selling consumer products rely on direct distribution. Â• It reduces a producerâ€™s need for working capital. 15 Behavioral targeting: Â• Tries to reach target customers who are actually interested in what the firm has to communicate. Â• Allows advertisers to pay only when a customer clicks on the ad and links to the advertiserâ€™s website. Â• Tries to place ads on websites that are designed to appeal to the firmâ€™s target market. Â• Delivers ads to consumers based on previous websites the customer has visited. 16 The main difference between a â€œmarketing strategyâ€ and a â€œmarketing planâ€ is that: Â• A marketing strategy omits pricing plans. Â• A marketing strategy provides more detail. Â• A marketing plan includes several marketing strategies. Â• Time-related details are included in a marketing plan. 17 When a company provides its advertising agency with a statement about a new product to use in designing an advertising campaign, and this statement includes a description of the target market, the product type, the primary benefits of using the product, and how this product is different from, and better than, competitive products, what type of statement is this? Â• Determining Â• Qualifying Â• Clustering Â• Positioning 18 Blending the firmâ€™s promotion efforts to convey a complete and consistent message is the goal of: Â• Sales management communications. Â• Integrated marketing communications. Â• Sales promotion communications. Â• Integrated promotional marketing 19 In the 1990s, DVDs replaced audiocassettes and floppy disks as the storage media of choice for music and computers. At which stage of the product life cycle is the DVD today? Â• Market introduction Â• Sales decline Â• Market extinction Â• Market immaturity 20 According to the concept of social responsibility, a firm has a duty to: Â• Place customer satisfaction above all other considerations. Â• Place profit above all other considerations. Â• Communicate regularly with the public. Â• Conduct business in a way that is good for society as a whole, both now and for the future. 21 The advantages of working with an intermediary usually increase when there is: Â• A smaller number of competing products. Â• Little distance between customers. Â• Excellent communication with customers. Â• A greater number of customers. 22 Clearwater Office Supply sells frequently purchased office supplies to businesses in a metropolitan area. It is a well-established company with a large share of the market. Its promotion should probably focus on: Â• Stimulating primary demand. Â• Reminding. Â• Innovators. Â• Informing. 23 The phrase â€œbig dataâ€ refers to: Â• the use of marketing research in big marketing decisions. Â• the massive amount of data being collected and processed by todayâ€™s organizations. Â• the top five firms in the marketing research industry. Â• marketing research data taken from Internet sources. 24 When an advertiser pays a fixed amount (e.g. 70 cents) each time a Web surfer clicks on the advertiserâ€™s ad and links to the advertiserâ€™s website, this process is called a(n): Â• pay-per-click. Pay per view Â• pioneering ad. Â• copy thrust. 25 The sales analysis of a product revealed that profits were highest when it was initially introduced into the market with a high selling price. However, the price was gradually reduced as it started facing competition as substitutes entered the market. This is an example of a(n) _____. Â• Penetration price policy Â• Skimming price policy Â• Introductory price dealing Â• Temporary price cut policy 26 Tammi Soloft has itchy eyes and a stuffy nose, and suddenly becomes aware of many TV ads for allergy products that she never noticed before. This illustrates: Â• reinforced cognition. Â• selective perception. Â• selective retention. Â• selective exposure. 27 The main difference between the â€œmarketing department eraâ€ and the â€œmarketing company eraâ€ is: Â• More emphasis on selling and advertising in the marketing department era. Â• More emphasis on short-run planning in the marketing company era. Â• Whether the whole company is customer-oriented. Â• Whether the president of the firm has a background in marketing. 28 The three basic sales tasks are: Â• Order-taking, order-managing, and order-getting. Order-taking, supporting, and order-getting. Â• Order-closing, order-opening, and sales-promoting. Â• Order-taking, missionary selling, and order-getting. 29 Marketers cannot assume that a product that meets consumer needs in one country will do so in another. This is because: Â• The purchase situations may be different. Â• Economic wants do not influence purchases in many regions of the world. Â• Family life cycles may be different. Â• Many wants are culturally learned. 30 Because she frequently buys books at Amazon.com, Sophie Soleil set up an account and password at the website. Now, when she logs on and searches for a specific book, a note pops up at the center of her laptop screen saying: â€œHello, Sophie, we have recommendations for you,â€ and proceeds to list other titles that Sophie might enjoy based on her previous purchases. Amazon can remember Sophie (and her previous purchases) because the online retailer uses: Â• Encoding. Â• Banners. Â• Cookies. Â• Decoding.