Deck 11: Unique Marketing Issues

Question 1

Which of the following selections is incorrect regarding a firm's "positioning" strategy?

A) Position is concerned with how the firm is situated relative to its competitors.
B) A firm's decision about how to position itself relative to its competitors starts with a product or service idea that is tested and refined through feasibility analysis and marketing research.
C) Determining which position in a market to occupy and compete in is a strategic call on the part of a company based on its mission, its overall approach to the marketplace, and its competitive landscape.
D) Once a firm positions itself in a certain way, it must be able to follow through with a product or service offering that lives up to the image it has created.
E) After selecting a positioning strategy, the firm's next step is to select a target market.

Answer 1

E

Question 2

A ________ market is a place within a market segment that represents a narrower group of customers with similar interests.

A) position
B) niche
C) slot
D) spot
E) gap

Answer 2

B

Question 3

The first step in selecting a target market is to study the industry in which the firm intends to compete and determine the different potential target markets in that industry. This process is called ________.

A) market positioning
B) market splitting
C) market targeting
D) market subdividing
E) market segmentation

Answer 3

E

Question 4

A product attribute map is used to help a firm determine if ________.

A) it is emphasizing benefits rather than features
B) its branding strategy is appropriate
C) its market segmentation is correct
D) its positioning strategy is appropriate
E) its target market is appropriate

Question 5

A product attribute map illustrates the strength of a firm's niche (or target) market relative to competing markets.

Question 6

A tagline is a catchy phrase that's used consistently in a company's literature, advertisements, and even invoices and thus becomes associated with a company to reinforce its position in the market.

Question 7

Markets can be segmented in a number of ways, including by geography, demographic variables, psychographic variables, behavioral variables, and product type.

Question 8

Once a firm has segmented the market, the next step is to ________.

A) decide on a position within the segment
B) settle on pricing
C) select a target market
D) establish the company's brand
E) immediately decide on the "4Ps" of the marketing strategy

Question 9

The proper sequence in selecting a target market and positioning strategy is (1) craft a unique positioning strategy, (2) select a target market, and (3) segment the market.

Question 10

A niche market is a place within a market segment that represents a narrow group of customers with similar interests.

Question 11

Wink Natural Cosmetics, the company profiled in the opening feature in Chapter 11, sells cosmetics products. According to the case, the company's initial marketing efforts were aimed at ________.

A) building the company's brand
B) finding strategic partners
C) finding the right target market
D) building a social media presence
E) effectively executing a Google AdWords campaign

Question 12

Katherine Ford is thinking about starting a computer company. After doing some research, she has decided that the computer industry can be divided into the following product categories - handheld computers, laptops, tablet computers, PCs, work stations, minicomputers, mainframes and super computers. She is now trying to decide which product category she is the most interested in competing in. The process that Katherine is going through is called market ________.

A) splitting
B) subdividing
C) segmentation
D) dividing
E) separating

Question 13

A ________ illustrates a firm's positioning strategy relative to its major rivals.

A) product attribute map
B) positioning analysis grid
C) positioning plot
D) competitive analysis grid
E) positioning diagram

Question 14

A firm's target market is the limited group of individuals or businesses that it goes after or tries to appeal to.

Question 15

Broadway Dance Center in New York City targets serious dancers who aspire to earn a living dancing in Broadway plays. This specific portion of the overall dance industry is referred to a ________ market.

A) gap
B) task
C) position
D) hole
E) niche

Question 16

Nike's familiar phrase "Just do it" is an example of a(n) ________.

A) attention-line
B) tagline
C) notice-line
D) catchline
E) grabline

Question 17

Which of the following is the correct sequence of events to the process of selecting a target market and position strategy?

A) Create a unique positioning strategy, Select a target market, Segment the market
B) Segment the market, Create a unique positioning strategy, Select a target market
C) Segment the market, Select a target market, Create a unique positioning strategy
D) Select a target market, Create a unique positioning strategy, Segment the market
E) Create a unique positioning strategy, Segment the market, Select a target market

Question 18

Kyle White owns a sporting goods store that appeals to hunters and fishermen. The market that Kyle is trying to appeal to is called his ________ market.

A) focal
B) objective
C) target
D) critical
E) intention

Question 19

A firm's "position" is concerned with how it is situated relative to its rivals.

Question 20

Birchbox's phrase "The Box is Monthly, the Discoveries are Endless" is an example of a(n) ________.

A) tagline
B) grabline
C) notice-line
D) catchline
E) attention-line

Question 21

A ________ is something that takes on a physical form, such as a smartphone or a laptop computer. A ________ is an activity or benefit that is intangible, such as an airplane trip or advice from an accountant.

A) product; service
B) service; component
C) component; service
D) formation; service
E) service; product

Question 22

Which of the following statements is incorrect regarding the process of building a company's brand, particularly for young firms?

A) A firm's name, logo, Web site design, and even its letterhead are part of its brand.
B) One of the keys to effective branding is to create a strong personality for a firm.
C) Some companies monitor the integrity of their brands through brand management.
D) Startups must build a brand from scratch, which starts with selecting the company's name.
E) Most experts recommend a heavy reliance on advertising in building a firm's brand.

Question 23

A firm's marketing mix consists of ________.

A) product, price, promotion, and place
B) passion, pride, promotion, and place
C) passion, pleasure, product, and price
D) enthusiasm, passion, product, and price
E) place, promotion, passion, and product

Question 24

A firm's ________, in the context of its marketing mix, is the good or service it offers to its target market.

A) conception
B) idea
C) formation
D) product
E) invention

Question 25

What is a tagline? Provide an example of a popular tagline, and discuss why you think it has been effective?

Question 26

________ is a term that denotes the set of assets and liabilities that are linked to a brand and enable it to raise a firm's valuation.

A) Trademark equity
B) Brand equity
C) Logo equity
D) Trademark value-added
E) Trade name strength

Question 27

A brand is the set of attributes-positive or negative-that people associate with a company.

Question 28

"Brand premium" is the term that denotes the set of assets and liabilities that are linked to a brand and enable it to raise a firm's valuation.

Question 29

When Red Bull was first being introduced into the United States, the company would hand out free samples of its product at extreme sports events (e.g., skateboarding, wakeboarding and mountain biking competitions). Red Bull's objective was to create ________ surrounding its product.

A) buzz
B) noise
C) clatter
D) clamor
E) ruckus

Question 30

The 4Ps of marketing refer to a company's ________.

A) tactical mix
B) promotional blend
C) organizational mix
D) marketing mix
E) selling mix

Question 31

Which of the following is not one of the four elements that constitute a firm's marketing mix?

A) Price
B) Promotion
C) Passion
D) Place (or distribution)
E) Product

Question 32

Creating ________ means creating awareness and a sense of anticipation about a company and its offerings.

A) ruckus
B) noise
C) clatter
D) clamor
E) buzz

Question 33

Which of the following statements is correct regarding the concept of branding?

A) Brands cannot be built through advertising, public relations, sponsorships, social media, or similar techniques.
B) A company doesn't normally want its customers to identify with its brand.
C) Startups usually start with an established brand.
D) A brand can be one of a company's most valuable assets.
E) A brand can denote a negative impression of a company.

Question 34

According to the textbook, a brand is all of the following except a(n) ________.

A) firm's reputation
B) firm's credentials
C) indicator of trust and reduced risk
D) description of a company's nature
E) written warranty

Question 35

What is a brand? How does a new firm develop a brand?

Question 36

What is the purpose of market segmentation? How are markets typically segmented? Can a company segment its market on more than one dimension?

Question 37

According to the textbook, a successful brand can increase the market value of a company by ________ to ________ percent.

A) 5; 10
B) 20; 30
C) 40; 50
D) 50; 75
E) 75; 100

Question 38

A(n) ________ is the set of attributes-positive or negative-that people associate with a company.

A) emblem
B) logo
C) symbol
D) brand
E) trade name

Question 39

Creating buzz means creating awareness and a sense of anticipation about a company and its offerings.

Question 40

Some companies monitor the integrity of their brands through a program of brand ________.

A) administration
B) persistence
C) determination
D) resolution
E) management

Question 41

The What Went Wrong feature in Chapter 11 focuses on a series of missteps at JCPenney under the tenure of then CEO Ron Johnson. According to the feature, Johnson's three most damaging marketing-related mistakes were ________.

A) no testing of ideas in advance, poor product quality, and poor sales training for employees
B) reluctance to embrace online sales, a shift from value-based to cost-based pricing, and poor sales training for employees
C) poor product quality, a total misread of JCPenney's brand, and poor use of social media
D) Fair and Square Pricing, no testing of ideas in advance, and a total misread of JCPenney's brand
E) poor use of social media, Fair and Square Pricing, and poor sales training for employees

Question 42

The amount of money consumers pay to buy a product is its ________.

A) price
B) fee
C) value
D) cost
E) charge

Question 43

The Savvy Entrepreneurial Firm feature in Chapter 11 focuses on Airbnb, the company that created a marketplace for people to list, discover, and book unique spaces in people's homes or apartments while traveling. According to the feature, Airbnb was able to generate substantial buzz about its service via the use of ________.

A) Facebook
B) Google AdSense
C) blogs
D) newspaper ads
E) Twitter

Question 44

According to the textbook, most experts recommend ________ pricing because it hinges on the perceived value of a product or service.

A) value-based
B) cost-based
C) competitive-based
D) tactical
E) strategic

Question 45

Kevin Jackson owns a general contracting company. The way Kevin prices his services is to figure his cost and then add a 33 percent markup. The method that Kevin uses to determine his prices is called ________-based pricing.

A) economic
B) value
C) competitive
D) cost
E) conformity

Question 46

The Partnering for Success feature in Chapter 11 focuses on Caribou Coffee and Bruegger's Bagels, two companies that have established a cobranding relationship. Cobranding is when two companies ________.

A) pool their resources to buy advertising space to market their individual brands
B) locate their businesses in close proximity to one another because their brands are complementary
C) form a partnership to combine their brands
D) employ the same advertising agency to promote their brands
E) pool their resources to license a brand from a third company

Question 47

In ________ pricing, the list price is determined by estimating what consumers are willing to pay for a product and then backing off a bit to provide a cushion.

A) value-based
B) tactical
C) strategic
D) cost-based
E) economic-based

Question 48

A(n) ________ is an early user of a firm's product who is willing to give a testimonial regarding his or her experience with the product.

A) tribute account
B) reference account
C) approval report
D) appreciation account
E) acknowledgment report

Question 49

The Google program called ________ allows advertisers to buy keywords on the Google Home Page.

A) AdSense
B) Adcenter
C) AdWords
D) Search Marketing
E) AdGoogle

Question 50

Annie Clarke owns a smartphone app development firm. The way Annie prices her products is to determine what consumers are willing to pay, and then she backs off a bit to provide a cushion. The method that Annie used to determine her prices is called ________ pricing.

A) predatory
B) technical
C) cost-based
D) competitive-based
E) value-based

Question 51

________ refers to the activities the firm takes to communicate the merits of its product to its target market.

A) Sponsorship
B) Advertising
C) Endorsement
D) Promotion
E) Price

Question 52

A(n) ________ channel is a route a product takes from the place it is made to the customer who is the end user.

A) trade
B) product
C) allotment
D) promotion
E) distribution

Question 53

A firm's marketing mix is the assortment of products and services that it sells.

Question 54

Karen Simon recently purchased a digital camera. She considered three cameras-a Sony that was priced at $239.00, a Canon priced at $319.00, and a Nikon priced at $399.00. Karen couldn't tell much difference between the cameras, so she bought the Nikon, figuring that because it was the most expensive of the three, it must be the best. According to the textbook, Karen was making a ________.

A) price-quality attribution
B) price-merit attribution
C) cost-value acknowledgement
D) cost-worth attribution
E) price-worth acknowledgement

Question 55

Which element of the marketing mix is the only one that produces revenue?

A) Product
B) Place (or distribution)
C) Advertising
D) Price
E) Promotion

Question 56

Every January thousands of electronic products manufacturers gather in Las Vegas to display their products and to see what their competitors are up to. This type of event is called a ________ show.

A) trade
B) promotions
C) deal
D) goods
E) skill

Question 57

Efforts to establish and maintain a company's image with the public are referred to as ________.

A) open relations
B) public relations
C) civic relations
D) community relations
E) advertising

Question 58

Before Kimberly Campbell opened her jiffy print store, she processed several large print jobs for local merchants for free, to demonstrate the quality of her service and to solicit feedback. Two of the merchants wrote favorable reviews of Kimberly's service, and agreed to let Kimberly post the reviews on her company's Web site. The companies that wrote the favorable reviews are referred to as ________.

A) appreciation reports
B) acknowledgement accounts
C) referent accounts
D) tribute reports
E) approval reports

Question 59

________ marketing is a low-budget approach to marketing that relies on ingenuity, cleverness, and surprise rather than traditional techniques.

A) Rebel
B) Bug
C) Catching
D) Guerrilla
E) Revolutionary

Question 60

In ________-based pricing, the list price of an item is determined by adding a markup percentage to a product's cost.

A) cost
B) compliance
C) value
D) competitive
E) economic

Question 61

An important distinction should be made between a firm's core product and its actual product. While the core product may be a CD that contains an antivirus software program, the actual product may have a number of characteristics, including a quality level, features, design, a brand name, and packaging.

Question 62

Describe the concept of guerrilla marketing. Why is guerrilla marketing particularly suitable for entrepreneurial firms?

Question 63

The final step in the formal sales process described in the book is ________.

A) qualify the lead
B) make the sales presentation
C) follow-up
D) closing the sale
E) meeting objections and concerns

Question 64

A firm's sales process depicts the steps it goes through to identify prospects and close sales.

Question 65

Because of the weaknesses associated with advertising, most startups do not advertise their products broadly.

Question 66

Social plugins are tools that Web sites can use to provide users with personalized social experiences.

Question 67

The first step in the formal sales process described in the book is ________.

A) qualify the lead
B) make the sales presentation
C) prospect for sales leads
D) meet objections and concerns
E) make the initial contact

Question 68

What is an exclusive distribution agreement? Why do firms enter into exclusive distribution agreements with other firms?

Question 69

The Google AdWords program allows advertisers to buy ads that will be shown on other Web sites instead of Google's Home Page.

Question 70

Price is the only element in the marketing mix that represents a cost-all other elements produce revenue.

Question 71

A firm's sales process ________.

A) is typically not put in place until a year or more after a startup launches
B) describes its branding strategy
C) depicts the steps it goes through to identify prospects and close sales
D) describes its social media strategy
E) depicts the steps it goes through to identify its target market and positioning strategy

Question 72

A referent account is an early user of a firm's product who is willing to give a testimonial regarding his or her experience with the product.

Question 73

Which of the following statements is untrue regarding a firm's sales process?

A) A formal sales process helps a firm fine tune its approach to sales and build uniformity into the process.
B) Following a formal or structured process to generate and close sales benefits a firm.
C) A "sales process" is equally valuable whether a firm is selling directly to customers or through intermediaries.
D) A firm's sales process depicts the steps it goes through to identify its target market.
E) A formal sales process involves a number of identifiable steps.

Question 74

Many startups emphasize advertising over public relations primarily because it's cheaper and helps build the firm's credibility.

Question 75

In cost-based pricing, the list price is determined by estimating what customers are willing to pay for a product and then backing off a bit to provide a cushion.