Deck 8: Developing Marketing Strategies

Question 1

A penetration price refers to:

A) the high prices set by fur retailers.
B) a published price that remains the same for a long time.
C) a different price level set for different lines of merchandise.
D) a price set relatively low to secure market acceptance.

Answer 1

D

Question 2

Market segmentation refers to the:

A) change in a brand's status due to its failure in the marketplace.
B) mix of the uncontrollable elements of a marketing plan.
C) simulation of the conditions under which a product is to be marketed.
D) process of identifying and evaluating various layers of a market.

Answer 2

D

Question 3

A(n) _____ price is one set relatively high initially in order to obtain the "cream" of the target market before competitors enter.

A) skimming
B) penetration
C) predatory
D) bait

Answer 3

A

Question 4

Which of the following best describes leader pricing?

A) A strategy wherein certain products are chosen for their promotional value and priced low to entice customers into retail stores
B) A strategy of setting of high prices used, say, by fur retailers
C) A strategy aimed at obtaining the "cream" of the target market at a high price before dealing with other market segments
D) A strategy of offering the same products and quantities to different customers at different prices

Question 5

Which of the following is true about the maturity stage of the product life cycle?

A) Promotion costs climb and competitors cut prices to attract business
B) Marketing strategy typically encourages strong brand loyalty
C) Prices are usually high, sales are low, and development, promotion, and distribution costs are high
D) Management considers pruning items from the product line to eliminate unprofitable ones

Question 6

Which of the following is true about the growth stage of the product life cycle?

A) Prices are usually high, sales are low, and development, promotion, and distribution costs are high
B) Marketing strategy typically encourages strong brand loyalty
C) Promotion costs climb and competitors cut prices to attract business
D) Management considers pruning items from the product line to eliminate unprofitable ones

Question 7

Which of the following is true about database marketing?

A) It does not require someone with the technology know-how to keep the system up and running because it is fairly easy to use.
B) It is a quick and efficient process for acquiring customers that involves obtaining meaningful consumer information and making marketing decisions.
C) It is the act of simulating the conditions under which a product is to be marketed.
D) It refers to the act of promoting the sale of a product at the point of purchase.

Question 8

_____ involves prodding businesses to improve the quality of their products and to expand consumer knowledge.

A) Consumerism
B) Commercialism
C) Diversification
D) Segmentation

Question 9

_____ is the systematic gathering, recording, and analyzing of data about the merchandising of goods and services.

A) Competitor analysis
B) Market research
C) Competitive intelligence
D) SWOT analysis

Question 10

What is a marketing mix?

A) It is the proper blending of the basic elements of product, price, promotion, and place into an integrated marketing program.
B) It is the process of identifying and evaluating the various layers of a market.
C) It is the part of the total market toward which promotional efforts are concentrated.
D) It is a marketing process for acquiring customers that involves obtaining individual-level consumer information.

Question 11

Which of the following is true about the introduction stage of the product life cycle?

A) Management considers pruning items from the product line to eliminate unprofitable ones
B) Marketing strategy typically encourages strong brand loyalty
C) Promotion costs climb and competitors cut prices to attract business
D) Many products never get beyond this stage

Question 12

Promotion efforts may be cut and plans may be made to phase out the product during the _____ stage of the product life cycle.

A) introduction
B) growth
C) maturity
D) decline

Question 13

In which stage of the product life cycle does competition become more aggressive, with declining prices and profits?

A) Introduction
B) Growth
C) Maturity
D) Decline

Question 14

The sales of a product are rising rapidly and profits are peaking. This product is in the _____ stage of the product life cycle.

A) introduction
B) growth
C) maturity
D) decline

Question 15

Which of the following is a strategy used by companies with a reputation for superior marketing?

A) Uniform pricing for all products
B) Low customer engagement
C) Attention to packaging
D) Waging price wars with competitors

Question 16

Which of the following is a primary marketing research technique?

A) Leaflet distribution
B) Telephone surveys
C) Trade association reports
D) Advertising

Question 17

Which of the following is true of the marketing concept?

A) The survival of any business depends solely on making a profit.
B) Special consideration must be given to the needs, desires, and wishes of present and prospective customers.
C) Being consumer oriented often involves coercing consumers to buy a product, irrespective of its quality.
D) Use of the systems approach is not a part of the marketing concept.

Question 18

John wants to start his own fruit juice and beverage company. He is aware of the large number of competitors in this industry. He is also aware of the fact that his product should not be very costly. To differentiate his product from that of his competitors, he decides to sell his beverages in specially designed containers that keep the juice fresh for 7 days even without refrigeration. John is focusing on the _____ component of the marketing mix.

A) place
B) pricing
C) packaging
D) product

Question 19

Questionnaires used for primary research should:

A) address at least two issues at a time.
B) use technical jargon.
C) be sequenced randomly.
D) be left to experts.

Question 20

What is a competitive edge?

A) A particular characteristic that makes one firm more attractive to customers than other firms
B) A concept that two or more people, working together in a coordinated way, can accomplish more than the sum of their independent efforts
C) An organized effort to gather information about HYPERLINK "http://en.wikipedia.org/wiki/Markets" \o "Markets" markets or customers
D) An assessment of the strengths and weaknesses of current and potential HYPERLINK "http://en.wikipedia.org/wiki/Competition_%28economics%29" \o "Competition (economics)" competitors

Question 21

The marketing concept emphasizes that the survival of any business depends on providing service.

Question 22

The marketing concept opposes the systems approach to managing a business.

Question 23

Which of the following is an example of a strictly business oriented service?

A) Health and beauty
B) Market research firm
C) Real estate
D) Insurance

Question 24

A small retailer provides an allowance to a customer upon purchase of a washing machine. This is called a(n) _____.

A) subsidy
B) trade-in
C) discount
D) rebate

Question 25

_____ is the amount added to the cost of the product to determine selling price.

A) Push money
B) Markup
C) Marginal value
D) Going rate

Question 26

In many small businesses, the competitive edge can be something as simple as courtesy, friendliness, and helpfulness.

Question 27

_____ involves adding products that are unrelated to the present product line.

A) Penetration
B) Acquisition
C) Specialization
D) Diversification

Question 28

Market research is the systematic gathering, recording, and analyzing of data relating to the marketing of goods and services.

Question 29

Market research can be useful before starting a small firm, but it is not required once the firm is in operation.

Question 30

A(n) _____ is an item priced at or below cost to attract customers into the store to buy more profitable items.

A) prestige buy
B) trade-in
C) loss leader
D) premium product

Question 31

Consumerism involves performing product tests.

Question 32

A unit pricing policy is most likely to be used by a _____.

A) grocery store
B) producer
C) building contractor
D) service firm

Question 33

When customers walk out of the store without buying anything, it may be an indication that the business is in trouble.

Question 34

Deceptive advertising is an essential component of consumerism.

Question 35

The marketing concept states that a firm should put consumer needs first, even if it means foregoing profits.

Question 36

In a store, an item is priced extremely low by a dealer, but the salesperson points out the disadvantages of the item and switches customers to items of higher quality and price. What is this pricing policy called?

A) Leader pricing
B) Prestige pricing
C) Bait pricing
D) Odd pricing

Question 37

_____ are reductions from a product's normal list price and are given to customers as an inducement to buy more of the same product.

A) Discounts
B) Allowances
C) Subsidies
D) Trade-ins

Question 38

When people buy something, they purchase satisfaction as well as goods and services.

Question 39

A(n) _____ is given to customers for accepting less of something or as an adjustment for variation in quality.

A) discount
B) rebate
C) allowance
D) subsidy

Question 40

A building contractor would be most likely to use a _____ pricing strategy.

A) break-even
B) unit
C) loss leader
D) cost-plus

Question 41

Marketing research is possible using customer credit records and sales records.

Question 42

Choosing and maintaining a target market is easy because of stable consumer characteristics.

Question 43

Web-based research is not effective in doing marketing research.

Question 44

Market segmentation simulates the conditions under which a product is to be marketed.

Question 45

Employees are not a good source of information about customer preferences as they are usually trying to sell the product.

Question 46

Small firms generally should not attempt to be price leaders.

Question 47

Marketing research should be done only by professional firms in order to meet the needs of the business owner.

Question 48

A product's benefits are identified and emphasized to develop a competitive niche in the introduction stage of a product's life cycle.

Question 49

Test marketing a product is a cost-effective way to do primary research.

Question 50

Watching people is a useful marketing research technique.

Question 51

Packaging can influence customers in making buying decisions.

Question 52

A marketing mix consists of uncontrollable variables that the firm combines to satisfy the target market.

Question 53

The four variables of a marketing mix are-customer, company, competition, and constraints.

Question 54

Markup involves adding products that are unrelated to the present product line.

Question 55

A uniform marketing strategy is beneficial for people of all age groups.

Question 56

A target market is a part of the total market toward which promotional efforts are concentrated.

Question 57

Businesses in the U.S. may have to rehire retirees as consultants because the number of young adults is declining.

Question 58

Competition becomes more aggressive during the decline stage of a product's life cycle, with
declining prices and profits.

Question 59

Marketing objectives need not be tied in with the business's competitive edge.

Question 60

Small businesses should usually leave primary market research to experts.

Question 61

Describe personal services and business services.

Question 62

What is the role of packaging in influencing customers to buy a product?

Question 63

How do small wholesalers and small producers set prices for their products?

Question 64

Describe the introduction stage of the product life cycle.

Question 65

What is the need for small firms to have a wide product mix?

Question 66

Describe the growth stage during implementation of a market strategy by a small firm.

Question 67

Describe e-commerce.

Question 68

What is database marketing?

Question 69

What are the three practical aspects of pricing that a small firm must consider?

Question 70

What is the marketing concept?