Deck 7: Marketing Strategy

Question 1

The difference between e-marketing and traditional marketing is in the venue.

Answer 1

True

Question 2

Differentiation and positioning considerations are relevant to the product and placing elements of the marketing mix.

Answer 2

False

Question 3

Market segmentation precedes the selection of a target market.

Answer 3

True

Question 4

If a market is new to the firm, concentrating on one target market makes the most sense.

Question 5

Price-quality signaling occurs when the cost of a good or a service reflects the perceived quality of that product or service.

Question 6

Design issues do not apply to services.

Question 7

The mission statement tries to articulate the long-term purpose and idealized notion of what a business hopes to become.

Question 8

Price skimming occurs when a new product is priced higher than that of the competition to maximize profit.

Question 9

Differential response is the extent to which market segments are easily distinguishable from each other and respond differently to company marketing strategies.

Question 10

If a brand name is used for a firm as a whole, the preferred term for referring to it is "trade name."

Question 11

Product mix is the selection of a firm's products or services that is offered to the marketplace.

Question 12

The PLC provides guidance for watching how a product or a service progresses in the marketplace so that the necessary marketing strategy steps can be taken.

Question 13

The price of a product never includes the values of time, energy, and psychic cost.

Question 14

All products and services can have only two layers: core and augmented.

Question 15

Differentiation is about the mind of the consumer: placing a company or a brand in the consumer's mind in relation to the competition.

Question 16

The product or service package communicates both emotional and functional benefits to the buyer, and it can be an important means of product differentiation.

Question 17

The basic marketing principles that guide small-business marketing and big-business marketing are the same.

Question 18

A firm may find ready-made target markets when a competing firm ignores the smaller segments of the market.

Question 19

Typography is the use of typefaces or fonts in a design.

Question 20

Segmentation and target market decisions must be made only for onground customers.

Question 21

The extent to which market segments are easily distinguishable from each other and respond in another way to company marketing strategies is known as:

A) marketing measurability.
B) product substantiality.
C) research stability.
D) customer accessibility.
E) differential response.

Question 22

In the context of marketing research, actionability:

A) identifies and estimates the size of a segment.
B) has to do with consumer preferences.
C) studies if the segment is large and profitable enough to justify an investment.
D) studies if a business can communicate with and reach the segment.
E) studies if a small business is capable of designing an effective marketing program that can serve the chosen market segment.

Question 23

Marketing objectives are about:

A) where the business is going.
B) why the business exists.
C) what the business will want to accomplish with its marketing strategy.
D) how the business will accomplish its marketing objectives.
E) what sales level is required to start making a profit.

Question 24

In the context of marketing research, stability:

A) identifies and estimates the size of a segment.
B) has to do with consumer preferences.
C) studies if the segment is large and profitable enough to justify an investment.
D) studies if a business can communicate with and reach the segment.
E) studies if a small business is capable of designing an effective marketing program that can serve the chosen market segment.

Question 25

Loss leaders are products that are discounted to get customers in the door in the hope that they will also buy more profitable products.

Question 26

In the context of marketing research, accessibility:

A) identifies and estimates the size of a segment.
B) has to do with consumer preferences.
C) studies if the segment is large and profitable enough to justify an investment.
D) studies if a business can communicate with and reach the segment.
E) studies if a small business is capable of designing an effective marketing program that can serve the chosen market segment.

Question 27

Direct marketing is about using information to educate, establish trust, and build a company or someone in it as an authority.

Question 28

Logistics involves all the activities involved in the physical flow and storage of materials, semi-finished goods, and finished goods to customers in a manner that is efficient and cost effective.

Question 29

Retailers that offer a wide assortment of products will spend more on logistics because transportation and storage costs will increase as the number of carried products increases.

Question 30

All service-based businesses use the indirect channel because the role of intermediaries is very essential for these businesses.

Question 31

Taxes, the cost of advertising, competitors who benefit from government subsidies, consumer demand, differences in costs of living, and the general cost of doing business are other factors that enter into the decision to use even-odd pricing.

Question 32

Integrated marketing communications (IMC) is about pulling all the marketing communications together to convey a consistent message.

Question 33

In the context of marketing research, measurability:

A) identifies and estimates the size of a segment.
B) has to do with consumer preferences.
C) studies if the segment large and profitable enough to justify an investment.
D) studies if a business can communicate with and reach the segment.
E) studies if a small business is capable of designing an effective marketing program that can serve the chosen market segment.

Question 34

A company's vision tries to articulate:

A) where the business is going.
B) why the business exists.
C) what the business will want to accomplish with its marketing strategy.
D) how the business will accomplish its marketing objectives.
E) what sales level is required to start making a profit.

Question 35

High inventories are undesirable because they may lead to obsolete products and depressed sales of new models.

Question 36

In the context of marketing research, substantiality:

A) identifies and estimates the size of a segment.
B) has to do with consumer preferences.
C) studies if the segment is large and profitable enough to justify an investment.
D) studies if a business can communicate with and reach the segment.
E) studies if a small business is capable of designing an effective marketing program that can serve the chosen market segment.

Question 37

The focus of marketing strategy identifies:

A) where the business is going.
B) why the business exists.
C) what the business will want to accomplish with its marketing strategy.
D) how the business will accomplish its marketing objectives.
E) what sales level is required to start making a profit.

Question 38

A company's mission looks to articulate:

A) where the business is going.
B) why the business exists.
C) what the business will want to accomplish with its marketing strategy.
D) how the business will accomplish its marketing objectives.
E) what sales level is required to start making a profit.

Question 39

Quick-response (QR) codes are high-tech bar codes that are scanned with smartphone cameras, after which company and/or product content pops up on the screen.

Question 40

A discount pricing strategy could lead to a product or a service being perceived as low quality.

Question 41

Dynamic pricing is seen to be in action when:

A) buyers and sellers can view and compare prices for products sold online.
B) prices are varied for individual customers.
C) a company figures out how much it costs to make a product or deliver a service and then sets the price by adding a profit to the cost.
D) when the pricing strategy taps into the belief that a high price means high quality.
E) a low price is set in order to attract customers and gain market share.

Question 42

Lindt, a confectionery company, offers expensive luxury Swiss chocolates. Which of the following approaches to positioning is this company using?

A) Positioning by attribute
B) Positioning by price/quality
C) Positioning by use or application
D) Positioning by product user
E) Positioning by product class

Question 43

Which of the following layers of a product captures the emotional and psychological connections of a product to a consumer?

A) Core layer
B) Expected layer
C) Augmented layer
D) Potential layer
E) Symbolic layer

Question 44

Which stage of a product's life cycle has costs but absolutely no sales?

A) Product development stage
B) Product introduction stage
C) Product growth stage
D) Product maturity stage
E) Product decline stage

Question 45

Which of the following layers of a product carries its physical anatomy and its basic features?

A) Core layer
B) Expected layer
C) Augmented layer
D) Potential layer
E) Symbolic layer

Question 46

Each time a coach teaches a new batch of students, he will perform in a different way. This implies that services are:

A) intangible.
B) perishable.
C) inseparable.
D) variable.
E) simultaneous.

Question 47

Which of the following pricing strategies taps into the belief that a high price means high quality?

A) Discount pricing
B) Cost-based pricing
C) Prestige pricing
D) Eve-odd pricing
E) Geographic pricing

Question 48

If a reservation at a restaurant is missed, it is lost or it does not exist. This means that services are:

A) intangible.
B) perishable.
C) inseparable.
D) variable.
E) heterogeneous.

Question 49

Which of the following is a typical characteristic of a product's growth stage?

A) There are costs but no sales.
B) Profits are typically low or nonexistent.
C) Sales decline and profits erode.
D) Sales increase rapidly.
E) Profits stabilize or decline.

Question 50

Which of the following stages of a product's life cycle is characterized by slow growth because most of the buyers interested in a product have bought it?

A) Product development stage
B) Product introduction stage
C) Product growth stage
D) Product maturity stage
E) Product decline stage

Question 51

Which of the following is a characteristic of a product's augmented layer?

A) It carries a product's physical anatomy and its basic features.
B) It enhances a product by attaching additional value to it.
C) It contains attributes that buyers normally expect when they purchase a product.
D) It captures the emotional and psychological connections of a product to a consumer.
E) It augments and transforms a product to undergo changes in the future.

Question 52

Competition enters the marketplace once the product observes success. This is usually the characteristic of a product's:

A) development stage.
B) introduction stage.
C) growth stage.
D) maturity stage.
E) decline stage.

Question 53

Unlike a product, services offered by a university cannot be seen, smelled, heard, or touched prior to purchase. This implies that services are:

A) intangible.
B) perishable.
C) inseparable.
D) variable.
E) heterogeneous.

Question 54

Which of the following approaches to positioning has its focus on a particular quality, a product feature, or customer benefit?

A) Positioning by attribute
B) Positioning by price/quality
C) Positioning by use or application
D) Positioning by product user
E) Positioning by product class

Question 55

Things such as packaging, promotion, warranties, guarantees, brand name, and design are a part of a product's:

A) core layer.
B) expected layer.
C) augmented layer.
D) potential layer.
E) symbolic layer.

Question 56

A company's website has articles that engage visitors, allowing them to add comments or opinions. Which of the following design elements does this site feature?

A) Layout
B) Typography
C) Graphics
D) Interactivity
E) Navigation

Question 57

When a product is available to buy for the first time, it is in its:

A) development stage.
B) introduction stage.
C) growth stage.
D) maturity stage.
E) decline stage.

Question 58

Setting selling prices in whole numbers in order to convey a higher-quality image is a form of:

A) cost-based pricing.
B) prestige pricing.
C) geographic pricing.
D) even-odd pricing.
E) dynamic pricing.

Question 59

A user has used a company's website before, and he can remember enough to use it effectively the next time without having to start over again and learning everything. This means that the website has high-quality:

A) color.
B) typography.
C) usability.
D) graphics.
E) performance.

Question 60

The service consumer must sit in a restaurant, and correspondingly, a waitress must be in the same restaurant for delivering service. This implies that services are:

A) intangible.
B) perishable.
C) inseparable.
D) variable.
E) heterogeneous.

Question 61

The process of communicating with a potential buyer (or buyers) face-to-face with the purpose of selling a product or service is known as:

A) personal selling.
B) reputation management.
C) sales promotion.
D) banner advertising.
E) direct selling.

Question 62

Which of the following steps of the traditional sales process involves describing the needs of a prospect, attitudes about available products and brands, critical product attributes and benefits desired, and current vendors?

A) Prospecting and qualifying
B) Preapproach
C) Presentation and demonstration
D) Overcoming objections
E) Closing

Question 63

_____ is defined as the result of information technology applied to traditional marketing.

Question 64

Online advertisements in newsletters are a form of:

A) banner advertising.
B) e-mail advertising.
C) news site advertising.
D) blog advertising.
E) social media advertising.

Question 65

_____ can be defined as the performance of the product in terms of sales and profits over time.

Question 66

A local baker allows its customers to order cakes online or by phone and then pick them up at the bakery. Which of the following channels of distribution is the bakery using?

A) Intermediary channel
B) Retail channel
C) Wholesale channel
D) Service channel
E) Hybrid channel

Question 67

A good _____ should deliver a clear message, be to pronounce, confirm a company's credibility, make an emotional connection with the target market, motivate the buyer, and solidify customer loyalty.

Question 68

Online shoppers abandon their carts for a variety of reasons, the most important one being:

A) high shipping charges.
B) not being able to find preferred payment option.
C) item being unavailable at checkout.
D) not being able to find customer support.
E) concern about security of credit card data.

Question 69

Which of the following is an example of a direct channel?

A) A farmer who sells his produce to local shops.
B) A small business that makes one-of-a-kind handcrafted vases sells them to a florist who in turn sells the vases to his customers.
C) A baker selling his products at a local school.
D) A manufacturer that sells its products through another online business.
E) A farmer selling flowers with the help of a hundred florists across the state.

Question 70

_____ pricing is an approach by which a company figures out how much it costs to make a product or deliver a service and then sets the price by adding a profit to the cost.

Question 71

Which of the following is a form of online advertising where advertisers pay the website owner when the ad is clicked?

A) Banner advertising
B) E-mail advertising
C) News site advertising
D) Blog advertising
E) Affiliate advertising

Question 72

A(n) _____ is a small, more narrowly defined market that is not being served well or at all by mainstream product or service marketers.

Question 73

Odd-numbered prices give consumers the impression that they are getting a great value; this is a form of _____ pricing.

Question 74

_____ is the process of dividing a market into relatively homogeneous subgroups that behave much the same way in the marketplace.

Question 75

Contests, sweepstakes, coupons, premiums and gifts, product samples, rebates, low-interest financing, price discounting, point-of-sale displays, and frequent user or loyalty programs are forms of:

A) advertising.
B) interactive marketing.
C) direct marketing.
D) affiliate marketing.
E) sales promotion.

Question 76

Websites that feature user-generated content or material created by visitors rather than the website publishers and encourage visitors to read and respond to that material are a form of:

A) reputation management.
B) direct marketing.
C) advertising.
D) social media.
E) sales promotion.

Question 77

The most significant risk factor facing small businesses is _____.

Question 78

An outcome of PR that is produced by the news media and is not paid for or sponsored by the business involved is known as:

A) advertising.
B) banner advertising.
C) sales promotion.
D) publicity.
E) affiliate marketing.

Question 79

_____ is about placing a company or a brand in the mind of the consumer in relation to the competition.

Question 80

_____ involves segmenting the market, selecting a target or targets, making differentiation and positioning decisions, and designing the marketing mix.