Deck 12: Understanding Marketing Principles and Developing Products

Question 1

The marketing concept

A) focuses on building products that provide value to customers.
B) excludes input from the human resources department.
C) means building a competitive advantage through product differentiation.
D) means that the whole firm is coordinated to achieve one goal: to serve customers at a profit.
E) does not include the finance department.

Answer 1

D

Question 2

Sales of janitorial services, mainframe computers, and office supplies to other manufacturers are examples of

A) industrial marketing.
B) service marketing.
C) relationship marketing.
D) consumer marketing.
E) idea marketing.

Answer 2

A

Question 3

Products which are purchased by end users for their personal use are ________ goods, while products which are purchased by companies for production purposes are ________ goods.

A) industrial; consumer
B) capital; accessory
C) consumer; industrial
D) high utility; low utility
E) none of these

Answer 3

C

Question 4

Harley-Davidson offers social incentives through the Harley Owners Group (H.O.G.), the largest motorcycle club in the world. This is an example of

A) industrial marketing.
B) relationship marketing.
C) consumer marketing.
D) marketing research.
E) international marketing.

Question 5

The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives is called

A) publicity.
B) marketing.
C) relationship marketing.
D) idea promotion.
E) advertising.

Question 6

According to the marketing concept

A) the firm must coordinate its marketing and non-marketing activities.
B) customer satisfaction is the firm's only objective.
C) maximum short-run profit is the firm's only objective.
D) the marketing department should function independently of the rest of the firm.
E) the finance area becomes critically important because ways must be found to pay for all the marketing research activity that is necessary.

Question 7

When Toronto-based Fairmont Resort Hotels used data mining to find out what kinds of vacations their customers preferred, and then placed ads where they were more likely to reach those customers, this was an example of

A) consumer relationship management.
B) product differentiation.
C) data warehousing.
D) aggregate marketing.
E) industrial marketing.

Question 8

If Brighten Your World Inc. sells its light bulbs to the Jacobs Motor Company to be used in all of their cars as headlights, Brighten Your World is engaging in what type of marketing activity?

A) Marketing research
B) Consumer marketing
C) Relationship marketing
D) Aggregate marketing
E) Industrial marketing

Question 9

Advertising to make people more aware of the hazards of drinking and driving is an example of

A) industrial marketing.
B) relationship marketing.
C) service marketing.
D) idea marketing.
E) consumer marketing.

Question 10

What is data warehousing?

A) A marketing strategy that creates sales agreements that stipulate product delivery
B) The process of dividing a market into categories of customer types
C) The study of consumer needs and wants and the way in which sellers can best meet them
D) The process of collecting, storing, and retrieving data in electronic files
E) A customer identification strategy that targets potential buyers

Question 11

Hydraulics Inc. makes filters for manufacturing companies. What kind of marketing is it engaged in?

A) Consumer marketing
B) Disaggregate marketing
C) Market planning
D) Industrial marketing
E) Product differentiation

Question 12

Value is determined by comparing a product's ________; the formula requires dividing ________.

A) costs and benefits; benefits by costs
B) price and quality; price by quality
C) price and durability; durability by price
D) quality and durability; quality by durability
E) availability and price; price by availability

Question 13

Which phrase best captures the essence of relationship marketing?

A) Emphasis on quality
B) Emphasis on intensive distribution
C) Emphasis on long-term relationships with customers
D) Emphasis on exclusive distribution
E) Emphasis on profitable operations

Question 14

A product's benefits include all of the following except which?

A) The emotional satisfaction associated with owning the product
B) The satisfaction associated with experiencing the product
C) The time required to purchase the product
D) The functions of the product
E) The acceptance by a peer group

Question 15

Which of the following terms describes the kind of products marketed by insurance companies, airlines, investment counsellors, health clinics, and public accountants?

A) Personal goods
B) Services
C) Industrial goods
D) Psychographics
E) Reseller goods

Question 16

Quinn Clothes is a successful business selling fashionable and athletic swimwear. The marketing staff has said that the company's plan to develop and market waterproof perfumes might be hindered by a lack of experience in the perfume field. Which of the following is the best response to that weakness?

A) Hire a chemist to develop the fragrances
B) Seek product ideas from existing staff
C) Employ new graphic designers to develop a new logo
D) Ensure that the perfume can be sold in the same retail stores as the swimwear
E) Rethink the company's promotional approach to selling products

Question 17

________ is the process of planning and executing the development, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.

A) Promotion
B) Relationship marketing
C) Marketing
D) Market strategy
E) Market segmentation

Question 18

What type of goods includes raw materials and integrated circuits?

A) Substitute products
B) Industrial goods
C) Consumer goods
D) Marketing goods
E) Disposable goods

Question 19

Starbucks's Card Rewards attracts return customers with free coffee refills and other extras. This is an example of

A) industrial marketing.
B) relationship marketing.
C) consumer marketing.
D) marketing research.
E) international marketing.

Question 20

What kind of business activity is a grocery store engaged in when it sells meat to a homemaker?

A) Consumer marketing
B) Disaggregate marketing
C) Product differentiation
D) Industrial marketing
E) Market planning

Question 21

________ is the most highly visible component of the marketing mix.

A) Promotion
B) Place
C) Profit
D) Product
E) Price

Question 22

Smart phones are an example of what kind of factor in the business environment?

A) Economic
B) Technological
C) Global
D) Competitive
E) Socio-cultural

Question 23

It is the middle of August, and Bob has been driving for the last three hours without air conditioning. He is hot and thirsty and would like to find something cold to drink. Bob would consider ________ the most important element in the marketing mix for a soft drink marketer.

A) promotion
B) profit
C) place
D) price
E) product

Question 24

The five major environmental factors in the marketing environment are

A) political-legal, socio-cultural, technological, infrastructure, and competitive.
B) political-legal, economic, intellectual, socio-cultural, and competitive.
C) political-legal, socio-cultural, technological, economic, and competitive.
D) infrastructure, socio-cultural, technological, climatic, and competitive.
E) political-legal, intellectual, technological, economic, and competitive.

Question 25

Who has the responsibility for developing the plan to introduce a new product, service, or idea?

A) Quality assurance manager
B) Marketing manager
C) Production manager
D) Planning manager
E) Warehouse manager

Question 26

Hansen Trucking Company transports detergent from a loading dock in Toronto to a supermarket shelf in Sherbrooke. This is a(n) ________ element of the marketing mix.

A) ownership
B) form
C) time
D) product
E) place

Question 27

A TD Canada Trust advertisement that emphasizes non-traditional extended banking hours is an example of

A) product differentiation.
B) market research.
C) industrial marketing.
D) relationship marketing.
E) market segmentation.

Question 28

When Maytag created the perception that its products were more reliable (by showing a lonely repair person with nothing to do) it was using a(n) ________ strategy.

A) product differentiation
B) promotion
C) everyday low prices
D) new product development
E) market segmentation

Question 29

Which element of the marketing mix is illustrated by the use of premiums, trading stamps, and coupons meant to encourage consumers to buy more of a product?

A) Price
B) Promotion
C) Production
D) Place
E) Productivity improvements

Question 30

The four elements in the marketing mix are

A) advertising, sales promotion, publicity, and public relations.
B) marketing managers, a marketing plan, relationship marketing, and profit.
C) price, place, promotion, and product.
D) profit, price, place, and promotion.
E) demographics, psychographics, geographics, and product use.

Question 31

What results are expected from a successful product differentiation program?

A) The manner in which the product functions must be changed.
B) Differentiation requires that prices be mid-level in order to generate a high volume of sales.
C) Customer response to the product will change.
D) Differentiation requires that prices be high in order to generate a high volume of sales.
E) Promotional plans will not change.

Question 32

Mass customization is an important production method to marketers because

A) it promotes loyal customers.
B) it allows marketers to provide products that satisfy specific needs of consumers.
C) it speeds the production cycle, providing time utility to customers.
D) its focus on delivering quality products leads to customer satisfaction.
E) it ensures profitability.

Question 33

Cholesterol levels may be controlled with either a physical-fitness program or a drug regimen. The fitness program and the drugs are examples of

A) dissimilar products.
B) contrary products.
C) international products.
D) brand-name competitive products.
E) substitute products.

Question 34

The ________ is a good, service, or idea that is marketed to fill consumer needs and wants.

A) product
B) place
C) profit
D) promotion
E) price

Question 35

Single parent families, food preferences, and the number of women entering the workforce are all external environmental factors marketing managers must consider when analyzing the ________ environment.

A) public relations
B) legal
C) produce
D) economic
E) socio-cultural

Question 36

What is the fundamental goal of product differentiation?

A) To increase profit margins
B) To set the company's products apart from competitive products in the market
C) To maximize market share
D) To more effectively market to industrial consumers
E) To more effectively market to certain demographic segments of the market

Question 37

The 4 P's of marketing include all of the following except

A) product.
B) place.
C) price.
D) promotion.
E) profit.

Question 38

A company decides to introduce a line of crackers made with organically grown grains and vegetables. What environmental trend is the company responding to?

A) Competitive
B) Socio-cultural
C) Political-legal
D) Economic
E) Technological

Question 39

A detailed and focused strategy for gearing marketing activities to meet consumer needs and wants is called a

A) promotion plan.
B) product positioning.
C) sales plan.
D) marketing plan.
E) marketing mix.

Question 40

________ must support the firm's operating costs, administrative costs, research costs, and marketing costs such as advertising and sales salaries.

A) Product differentiation
B) Price
C) Product
D) Place
E) Promotion

Question 41

If you were the manager for Track & Wheels, a local backhoe dealer, which promotion would likely be the best method to sell high-priced backhoes?

A) Product placement
B) Price placement
C) Product differentiation
D) Personal selling
E) New product development

Question 42

What is a target market?

A) Teenagers ages 13 to 18 who enjoy fast food
B) Men who are taller and heavier than average
C) The percent of market share the firm wants to achieve
D) A group of people with similar wants who are expected to show interest in the same products
E) The percentage of total revenue generated by one product

Question 43

________ is segmentation by such traits as age, income, gender, ethnicity, and marital status.

A) Random selection
B) Demographics
C) Psychographics
D) Product use
E) Geographics

Question 44

The best segmentation for small drug stores or dry cleaners would be

A) geographic.
B) demographic.
C) geo-demographic.
D) product use.
E) psychographic.

Question 45

Which of the following should be considered in the demographic variables for market segmentation?

A) How the product will be used (e.g., athletic footwear vs. dress shoes)
B) Interests, attitudes, and opinions of consumers
C) Income levels, marital status
D) Trends in population shifts
E) Where people live

Question 46

The importance of ________ in marketing can be seen in the example of the introduction of "Crayola IQ" colour pencils because crayons were seen as too "babyish" by 8 to 12 year olds.

A) language
B) geography
C) demographics
D) history
E) psychology

Question 47

Which term is used to identify the division of a market into categories of customer types?

A) Industrial marketing
B) Marketing mix
C) Customer marketing
D) Market segmentation
E) Market de-categorization

Question 48

Which of the following is correct with regard to price?

A) It refers only to the actual amount of money that consumers pay for a product.
B) It is generally the second-most important element in the marketing mix.
C) In some cases, high prices will actually attract customers by implying that the product is unusually good.
D) It is more important for industrial goods than it is for consumer goods.
E) All of these

Question 49

Which segment of a market will consider consumer characteristics such as their motives, opinions, interests, and attitudes?

A) Consumographic variables
B) Geographic variables
C) Psychographic variables
D) Behavioural segmentation
E) Demographic variables

Question 50

Purple Moon markets adventure software to pre-teen girls. This is an example of

A) relationship marketing.
B) mass customization.
C) product differentiation.
D) customer identification.
E) market segmentation.

Question 51

People with similar wants and needs constitute ________, which clearly requires ________.

A) a demographic market segment; market segmentation
B) a target market; market segmentation
C) a target market; relationship marketing
D) a geographic market segment; relationship marketing
E) a psychographic market segment; relationship marketing

Question 52

When Reader's Digest identified and classified its readers into young adults, computer owners, and professionals/managers, it was using

A) prospect identification.
B) potential customer categorizing.
C) customer identification.
D) product differentiation.
E) market segmentation.

Question 53

Multicultural marketing is part of market segmentation by

A) psychographics.
B) demographics.
C) geography.
D) product use.
E) attitudes.

Question 54

The best way to segment the market for umbrellas is probably by

A) geographic variables.
B) behavioural segmentation.
C) psychographic variables.
D) geo-demographic variables.
E) demographic variables.

Question 55

Which of the following is correct with regard to the elements in the marketing mix?

A) Of the four elements, "product" is generally least important.
B) The elements are all equally important, regardless of the product being sold.
C) Price plays a small role in fresh meat, but a relatively larger role in selling newspapers.
D) Distribution is not very important in marketing gasoline, but it is important for lumber.
E) Promotion is vital in selling toys, but much less important in selling nails.

Question 56

________ are particularly important to marketers because marketers can, through marketing efforts, sway consumers' likes and dislikes.

A) Demographics
B) Geographics
C) Marital status and age
D) Psychographics
E) Product uses

Question 57

Groups of people with similar wants and needs that can be expected to show interest in the same products are called

A) customers.
B) prospects.
C) homogeneous segments.
D) potential customers.
E) target markets.

Question 58

What does the process of "positioning" involve?

A) Hiring only employees who have the strongest credentials
B) Designing a company's products to appeal to target customers
C) Focusing on only one component of the marketing mix
D) Disregarding customers' reactions to a company's products
E) Reorganizing employees according to seniority

Question 59

Companies in Poland have succeeded in overcoming consumer resistance to credit by promoting the safety and desirability of using credit rather than depending solely on cash. This is an example of the use of a ________ variable in market segmentation.

A) level of income
B) demographic
C) geographic
D) behavioural segmentation
E) psychographic

Question 60

The blue jean market is quite varied, and people wear them for different reasons and for different purposes. There are fashion jeans, work jeans, truck-driving jeans, cowboy jeans, and so on. To serve this market better, many firms practise

A) mass marketing strategy.
B) regional marketing.
C) market segmentation.
D) diversified marketing.
E) multi-marketing.

Question 61

Rondell Corp. is involved in a market research program. They have already studied the current situation to discover customer needs and what is being done to meet those needs. What should they do next?

A) Collect data
B) Select a research method
C) Analyze the data
D) Conduct a focus group
E) Prepare a report

Question 62

The Ford Focus is promoted to consumers on the basis of economy, while the Porsche is promoted on the basis of high performance. This is an example of

A) relationship marketing.
B) product positioning.
C) product differentiation.
D) mass customization.
E) psychographic segmentation.

Question 63

When UPS asked customers how the company could improve its service, UPS was using

A) video mining.
B) observation.
C) experimentation.
D) focus groups.
E) surveys.

Question 64

Sally spent the day in the local grocery store passing out free samples of a new potato chip. Sally gave every second customer the new chip with dip and every other customer the new chip without dip. What type of research was Sally conducting?

A) Observation
B) Primary and secondary data collection
C) Experimentation
D) Survey
E) Focus groups

Question 65

The study of what buyers need and how best to meet those needs is known as

A) marketing.
B) market research.
C) psychographics.
D) market segmentation.
E) market stimulation.

Question 66

Burberry is repositioning itself as a global luxury brand, such as Gucci and Louis Vuitton, a strategy that calls for luring fashion-conscious customers. This is an example of what type of market segmentation?

A) Geographic
B) Demographic
C) Psychographic
D) Product use
E) Strategic

Question 67

Garrett is in the business of selling baseball bats. He decides to employ focus groups to determine which bats will likely be bestsellers. Which of the following groups will he be least likely to invite as participants?

A) Players from the state's professional baseball team
B) Local college and high school coaches
C) Administrators of the local Little League baseball program
D) Spectators at a baseball tournament
E) Middle school players from the surrounding counties

Question 68

Sherrie wants to save money and time on her research project. You recommend she use

A) observation.
B) focus groups.
C) primary data she collects herself.
D) secondary data.
E) experiments.

Question 69

After asking people about their "desired scent experience," Procter & Gamble developed Febreze Scentstories, a product that gives off 5 different scents every 30-minutes. They did this after using what approach to data gathering?

A) Video mining
B) Observation
C) Experimentation
D) Focus groups
E) Surveys

Question 70

The information that Statistics Canada provides on the Canadian economy is an example of

A) secondary data.
B) statistical variance analysis.
C) primary data.
D) a demographic variable.
E) product research.

Question 71

While Sylvia has not asked teenage consumers any questions, she has noted that they purchase green nail polish, as opposed to purple. Which research method has Sylvia used?

A) Nominal scaling
B) Focus groups
C) Observation
D) Survey
E) Experimentation

Question 72

Sherrie wants to complete a research project; unfortunately, she has no idea where to begin. You advise her to begin by

A) designing a questionnaire.
B) collecting data.
C) selecting a research method.
D) studying the current situation.
E) analyzing data.

Question 73

Primary data are

A) data gathered for primary areas of the firm, like marketing and production.
B) based on facts gathered from library research.
C) based on data newly collected for a specific research purpose.
D) any of the above, depending upon why the marketer is doing the research.
E) gathered by consulting Statistics Canada publications.

Question 74

Marketing research is

A) the study of consumer needs and wants, and the ways in which sellers can best meet them.
B) the process of collecting, storing, and retrieving data in electronic files.
C) the process of fixing, adapting, and communicating the nature of the product itself.
D) the process of dividing a market into categories of customer types.
E) a marketing strategy that emphasizes long-lasting relationships with customers.

Question 75

Tamika starts a business making teddy bears and is excited to deliver the first batch to young patients. When Tamika arrives at the hospital, she learns that she has more bears than she needs. Which of the following would likely explain this?

A) Tamika failed to collect primary data.
B) Tamika did not interview all of the children.
C) Tamika was not told that five more children had been admitted.
D) Tamika conducted too much market research.
E) Tamika received incorrect secondary data from the hospital.

Question 76

When is market research used most frequently?

A) When a new or altered product is being considered
B) When a product is out of stock
C) When the promotional campaign is first under way
D) When the product is fully stocked in each of the distribution centres
E) When determining the reason for a product's failure

Question 77

A group of people in Canada buy all Express Yourself fashion products because they feel the clothes relate to their rebel lifestyle. What kind of segmentation would best help you define this group of individuals?

A) Intrinsic segmentation
B) Psychographic segmentation
C) Demographic segmentation
D) Geographic segmentation
E) Product-use variables segmentation

Question 78

Assume that you went to a shopping mall to determine people's attitudes toward a new peanut butter and pickle flavour ice cream. You would be collecting ________ data.

A) census
B) interview
C) primary
D) psychographic
E) secondary

Question 79

Which of the following is correct with respect to surveys?

A) Questionnaires are not generally necessary in surveys.
B) The accuracy of surveys is routinely very high.
C) When using surveys, a random sample is usually better than a representative sample of consumers.
D) Online surveys are growing in popularity because the company gets immediate results.
E) All of these are correct.

Question 80

Secondary data are

A) statistics and information that are available as a result of previous research.
B) based on data newly collected for a specific research purpose.
C) based on information gathered by someone else, but not yet published.
D) any of the above, depending upon why the marketer is doing the research.
E) data gathered for secondary areas of the firm like marketing research and accounting.