Exam 18: Ethical Marketing in a Consumer-Oriented World: Appraisal and Challe

The Xtreme Football League (XFL) was launched in 2001 by Vince McMahon, chairman of World Wrestling Entertainment (WWE). It was designed to provide professional football to American sports fans in the months after the conclusion of the National Football League (NFL) season. In spite of heavy promotion, lots of advertising, and a national network television contract, the XFL was a classic product failure, largely because the quality of play was not good enough to satisfy most football fans. The league evaporated after one season. This type of failure refutes the frequent claim of critics that advertising:

Which of the following is NOT a trend affecting marketing strategy planning in the area of Sales Promotion?

The reason that MICRO-marketing costs too much in many firms is that:

Which of the following components of the marketing mix involves the strategic decision areas of benefits, features, and packaging?

Which of the following strategic decision areas is a part of the product component of the marketing mix?

Which of the following does NOT support the idea that "MICRO-marketing often DOES cost too much"?

There are many reasons for business failures including products that do not create value in the eyes of the customer, improperly identifying the target market, or lack of innovative thinking.

Measuring MICRO-marketing effectiveness is ______________ than measuring MACRO-marketing effectiveness.

The letters in "S.W.O.T. analysis" are an abbreviation for the first letters of the words "strengths, weaknesses, opportunities, and threats."

Which of the following statements regarding marketing's influence on values is False?

Use the following information to answer question that refer to the Jewel Craft case. Jewel Craft, Inc. is a leading producer in the United States' women's costume jewelry and accessories market. Its brands are well known and are sold by department stores and better women's stores. Several stores in a city may carry Jewel Craft's brands because most of Jewel Craft's customers will not consider any other brand. Jewel Craft's sales force calls on one wholesaler in each state. Gemco, Inc., of Boston, Massachusetts, is the Jewel Craft distributor in that state. Gemco stocks and sells women's accessories (noncompeting lines) for several manufacturers like Jewel Craft. Wholesalers are allowed a 20 percent markup by Jewel Craft-but pay the freight charges to their warehouses. Jewel Craft's policy of using one wholesaler per state comes from its desire to control its distribution. Jewel Craft uses national magazine advertising and also supports a cooperative ad program with retailers. Jewel Craft's prices allow for a 40 percent retail markup-an attractive percent when one considers that Jewel Craft's products require little in-store selling because of their well-established reputation. Recently, Jewel Craft was approached by a watch producer with the idea of expanding to watches under the Jewel Craft name. It was argued that although national watch sales have leveled off, Jewel Craft could enjoy growing sales for several years because of the fine reputation the company has achieved. If watches are added, Jewel Craft will use its present policies regarding distribution, pricing, and advertising. Further, it will offer the wholesalers and retailers an attractive "package" deal as an incentive to carry Jewel Craft watches. Intermediaries will be required to carry the watches if they wish to handle the jewelry and accessories. Given the information in the Jewel Craft case, jewelry and accessories would be in which product class?

Advertising

Alia was satisfied with the old television that she had owned for years. But after watching a few shows on her friend's big, flat-screen, HD television, she felt that she should buy a newer model for herself. Which of the following limitations of macro-marketing effectiveness does this illustrate?

Use this information to answer the following question that refer to the EI (Electech Inc.) case. Electech, Inc. (EI) produces a line of semiconductors for electronics products manufacturers. These items range in price from $5-$100 and are used in products the buyer is producing. EI also designs and builds computer networking equipment. The prices of these items range from $5,000 to $100,000. These are used to control production equipment. Usually, they are custom-made to the specifications of the buyer-the firm that will use the product in its own production process. EI sells nationally through independent sales reps-paid on commission-who work in the large industrial centers across the country. EI is more concerned with the quality of these reps than with the number of them. All of them also sell other lines. EI also uses five full-time salaried salespeople who work out of its corporate headquarters under a sales manager. The home office salespeople are "technical specialists" who sell almost all the networking equipment, while the "reps" mostly sell the semiconductors. Sometimes, however, the reps will send in leads to customers who want networking equipment. EI also sells some of its semiconductors through a Los Angeles wholesaler who carries stock for West Coast customers. There are many producers and importers of semiconductors in the U.S.-but several firms have captured large shares of the networking equipment market. EI has held its own, and in fact, over the past five years has increased its market share of these products to over 25 percent-because of its better technical designs. Industry-wide prices of the more or less homogeneous semiconductors have been forced further and further down over the last seven years-as have industry profits. The price of networking equipment is set by adding a standard markup percent to the direct cost of the items-for overhead and for profit. Following industry practice, all prices are quoted at the seller's factory. EI publishes a catalog, which is revised periodically. Also, it exhibits in most equipment trade shows. What promotion method is EI using when it publishes catalogs, and exhibits in trade shows?

Which of the following is NOT a current trend affecting marketing strategy planning?

When developing a marketing plan for a new product that is about to enter the market introduction stage of its product life cycle, a marketing manager should:

Marketing:

A good business manager should adhere to the idea "if it ain't broke, don't fix it."

Satisfaction with a firm's marketing efforts can be roughly measured by

Good marketing managers put themselves in the customer's position.