Exam 12: Understanding Marketing Principles and Developing Products

DVD Heaven sells new and used DVDs, particularly to university and college students in large Canadian cities. It plans to expand its business online, hoping to increase sales by offering a more convenient means of ordering for busy college students. The vice-president of marketing suggests opening a Facebook page for DVD Heaven, but the president argues that social media sites would not help its business. Which of the following statements, if true, would support the argument made by the president for not using social media sites as part of DVD Heaven's advertising strategy?

How is the screening phase of new product development different than the concept testing phase?

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

Experimentation tries to compare the responses of similar individuals in different circumstances.

Which of the following is correct with respect to surveys?

Secondary data are

Penelope's Pizza, a local chain of carryout restaurants, has made the decision to expand to a national basis. It plans to open 50 Penelope's in 20 cities across the country within the next two years. In order to efficiently integrate all the tools and company resources to maximize the impact on new customers, Penelope's Pizza is considering using an integrated marketing strategy to promote a coherent national brand perception. The account manager argues that an integrated marketing strategy is the way to go, but the CEO argues that each local community is different, and the needs, values, and norms of the host cities should drive the marketing campaign. Which of the following practices would support the CEO's argument?

In which stage of the new product development process is a preliminary version of the product produced?

The comments of people in a focus group are taped, and researchers go through the data looking for common themes in participants' comments.

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

Buildings, manufacturing equipment, computers, and desks are examples of ________ purchased by companies that make other goods.

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

What is the fundamental goal of product differentiation?

ComicalYou is a new social media service in which participants create avatars to represent themselves, describe their lives, and interact with one another. All the postings are graphical, presenting the messages in the form of comic panels and strips. The service's software easily converts ideas into whimsical images. The site's creators, Ginny and RJ, believe that ComicalYou will be especially appealing to young people because it is so effective in conveying emotional content with a lighthearted appeal. They, along with a team of six employees, have completed the software, tested it on two dozen of their closest friends, and are eager to open up their site to users. What will make the product testing and test marketing stage challenging for an online product such as ComicalYou?

What is customer relationship management (CRM)?

Which of the following is correct with regard to the concept of a "product"?

List the factors in the external environment of businesses that affect marketing activities.

Marketing plans, decisions, and strategies are not determined unilaterally by any business. Rather, they are strongly influenced by powerful environmental forces.

Lextel Ltd. is involved in a market research study. They have already studied the current situation to determine which needs exist. Their next step is to begin collecting data.

The total array of products a company has for sales is its product mix, while a product line is a group of products that are closely related because they function in a similar manner or are sold to the same customer group who will use them in similar ways.