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Marketing Management Final Review
BUS 360 Final Exam Missed Mult Chioce
244
Marketing
Undergraduate 3
12/09/2009
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Term
The Great Depression and World War II gave rise to which of the marketing eras?
 Definition
Market-oriented
Term
Twenty-two year old Carl studying to be a corporate attorney aspires to buy a Rolls Royce for his fortieth birthday. Rolls Royce will not target Carl through a marketing campaign since Carl:
 Definition
is not yet a qualified potential buyer
Term
responsibilities of supply chain management
 Definition
producing and distributing products in the right quantities.
C) satisfying the service levels required by customers.
D) minimizing system-wide costs.
Term
In the ____ era, manufacturers were concerned with product innovation, not with satisfying the needs of individual consumers
 Definition
production-oriented
Term
The Great Depression and World War II gave rise to which of the following marketing eras?
 Definition
Sales-oriented
Term
Which of the following should a new massage parlor consider implementing to attract customers in an already saturated market?
 Definition
Better service at cost similar to the competitors.
Term
The marketing department coordinating with the distributors department to ensure that the new alcohol-free beer is available in the distributors' territory is an indication that:
 Definition
marketing helps expand a firm's global presence.
Term
In this task, value-oriented marketers use available customer data to find opportunities in which they can better satisfy their customers' needs and in turn develop long-term loyalties.
 Definition
Balancing benefits with costs
Term
When expanding globally, marketing provides the critical function of
 Definition
understanding customers
Term
Toothpaste makers Crest divide their consumer market into adolescent, smokers, wine drinkers, seniors etc. Which core aspect of marketing is Crest addressing?
 Definition
Satisfying customer needs and wants.
Term
"In addition to easy access to water, an essential part of this created value is the products' brand image, which lets users say to the world, "I'm healthy," "I'm smart," and "I'm chic.""
 Definition
creating value for a product.
Term
Which of the following strategies could most probably result in an increased budget for advertisements, and incentives higher given to the sales personnel?
 Definition
Increased inventory

"In the sales-oriented era, firms found an answer to their overproduction in becoming sales oriented; they depended on heavy doses of personal selling and advertising."
Term
"In today's quickly changing world, consistently creating and delivering value is quite difficult.
 Definition
Consumer perceptions change quickly, competitors constantly enter markets, and global pressures continually reshape opportunities."
Term
Recent reports in India detailing the presence of chlorine and other harmful elements found in Coca-Cola resulted in a decline in sales, and public outcry against the company. The company, in having to control the damage, found that:
 Definition
consumer perceptions change quickly
Term
Which of the following is indicative of marketers using available data to find opportunities through which customers' needs can be better satisfied, and long-term loyalties can be developed?
 Definition
Balancing benefits with costs
Term
Cookies that enable Internet sites to develop, and customize advertisements that the Websites frequent visitors most want to see, and read about, are part of:
 Definition
a customer relationship management approach
Term
define mission and/or vision is in which step of the marketing plan?
 Definition
Planning Phase
Term
Identify/Evaluate Opportunities (STP) and Implement Marketing Mix and Resources is in which phase of the marketing plan?
 Definition
Implementation phase
Term
evaluate performance is in which phase if the marketing plan?
 Definition
control phase
Term
Effectively managing supply chain relationships
 Definition
often has a marked impact on a firm's ability to satisfy the consumer, which results in increased profitability for all parties....
Term
The retailers for Mercedes Benz cars are usually paid on a per-car-sold basis, alongside which, they are always rewarded with high incentives for the high quantities sold, freebies given out to successful retailers, and various promotions frequently encourage retailers to sell more cars. Mercedes Benz is
 Definition
effectively managing the supply chain
Term
In today's volatile environment, firms with this quality are viewed as a safe investment, and firms have realized that it impacts the bottom line.
 Definition
The marketers ensuring that the firm engages in social responsibility.
Term
source of a sustainable competitive advantage
 Definition
Supply chain efficiency
B) Brand name
C) Customer satisfaction
D) Patented technology
Term
The idea of _____ requires firms to charge a price that captures the value customers perceive they are receiving.
 Definition
value-based pricing
Term
Entrepreneurs sometimes neglect capturing _____ value if they direct their staff to "charge whatever the competition does."
 Definition
price
Term
Brian is reviewing the performance of his franchised clothing store. Being a franchise he has access to comparative data from other stores. Brian will likely look at all of the following types of data
 Definition
A) sales.
B) gross margin.
C) number of customers.
D) coupon redemption.
Term
During the evaluation stage, marketers assess how well their strategies worked against predetermined measures. Franchises have the advantage of having access to comparative data to use in evaluation including
 Definition
sales, gross margins, number of customers, and coupon redemption but not regulatory data.
Term
A diversification strategy
 Definition
introduces a new product or service to
a market segment that currently is not served.
Term
Firms achieve operational excellence through:
 Definition
through efficient procedures and supply chain management.
Wal-Mart is known for its operational excellence.
Term
Unlike other business functions like accounting or finance, people in marketing are often singled out as the root cause of ethical concerns because:
 Definition
marketers interact directly with consumers

ecause they are so much in the public's eye, it should not be surprising that marketing and sales professionals sometimes rank poorly in ratings of the most trusted professions.
Term
Common marketing social issues include:
 Definition
products that may damage the environment, use of sweatshop labor, and marketing of dangerous products.
Term
"How would I feel if I did not know this and later learned about the alcohol?" This raises the _____ test of ethical action.
 Definition
golden rule

The golden rule is "Do unto others as you would have them do unto you." In many marketing situations, the Golden Rule Test is a helpful guideline for deciding ethical questions.
Term
When evaluating their competition, marketers need to assess competitors' strengths, weaknesses and:
 Definition
likely reaction to the firm's marketer's activities.
Term
Marketers have learned that _____ influences where, when, how, and what consumers buy.
 Definition
culture
Term
Compared to other groups, _____ are more likely to complain, to need special attention, and to take time browsing before making a purchase decision.
 Definition
Seniors
Term
Generational cohorts have
 Definition
have different experiences, values, and customs which lead to potential marketing strategies to meet the needs of each group.
Term
huge, affluent, and individualistic generational cohort. Because they tend to be very youth conscious, they are big purchasers of products and services related to staying young.
 Definition
Baby Boomer
Term
Jeanette just joined an after-work aerobics class. She also recently had cosmetic surgery and spent a week at rejuvenation spa in Costa Rica. Jeanette is most probably a member of the _____ generational cohort.
 Definition
Baby Boomer
Term
By offering environmentally responsible products, _____ add value that other products do not have.
 Definition
green marketers
Term
Which step of the scenario planning process comes immediately after the identification of different scenarios?
 Definition
Apply the marketing mix to the different scenarios.
Term
Firms use _____ to collect and synthesize information about their position with respect to their rivals
 Definition
competitive intelligence
Term
considered to be the center of the immediate environment
 Definition
Consumers
Term
The shift of population from the "Rust Belt" in the North to the "Sun Belt" in the South and Southwest will likely:
 Definition
reduce regional cultural differences (page 64)
Term
The Generation X (Xers) refers to those set of people who were born between the years:
 Definition
1965 and 1976.
Term
Which group of people are less interested in shopping than their parents but are far more cynical, which tends to make them astute consumers?
 Definition
Generation X
Term
Tweens are also known as Speeders, because
 Definition
they do everything at lightning speed.
Term
Gen Xers possess considerable spending power because
 Definition
they tend to wait to get married and buy houses later in life.
Term
The Baby Boomers' quest for youth
 Definition
in both attitude and appearance, provides a constantly growing market.
Term
They have an immense buying power, estimated at $260 billion annually in the U.S.
 Definition
true of "Tweens"
Term
the fastest growing minority population
 Definition
Asian Americans
Term
Many consumers attempt to cope with their lack of leisure time by multitasking...Consumers have many more choices about the ways they might spend their dwindling leisure hours.. In the majority of families, both parents work, and the kids are busier than ever
 Definition
"Time-Poor Society
Term
Which process integrates the macroenvironment information as a means to understand the potential outcomes of different applications of a firm's marketing mix?
 Definition
Scenario planning
Term
_____ usually relies more on past experience than on external information.
 Definition
Limited problem solving
Term
Limited problem solving involves
 Definition
moderate amount of effort and time. Consumers engage in this type of buying process when they have had some prior experience with the product and the perceived risk is moderate.
Term
Functional needs pertain
 Definition
to performance.
When scuba divers buy equipment
Term
Marketers know they want their brands and products to be in consumers' _____ set, the brands and products they will consider when making a purchase decision.
 Definition
evoked
A consumer's evoked set includes the alternative brands or stores a consumer states he or she would consider when making a purchase decision. Market researchers use "top-of-the-mind" surveys to define consumers' evoked sets for different categories of products or brands.
Term
Marketers are particularly interested in _____ behavior because it entails actual rather than potential customers.
 Definition
postpurchase

Satisfied customers will hopefully become loyal customers, purchase again and provide positive word of mouth for the marketer.
Term
psychological factors that influence purchase decisions
 Definition
Learning, motives, attitudes, and perceptions
Term
Social factors that influence purchase decisions.
 Definition
family, reference groups, and culture, also influence the decision process.
Term
Maslow's PSSP hierarchy of needs, from highest to lowest, are:
 Definition
personal, social, safety, physiological.
Term
the process by which consumers select, organize, and interpret information.
 Definition
Consumer perceptions
Term
Perception influences...
 Definition
our acquisition and consumption of goods and services because it assigns meaning to things such as color, symbols, taste, and packaging.
Term
All of the following observations concerning the WTO are true
 Definition
assists developing countries with trade policy issues.
settles trade disputes.
reviews national trade policies.
reviews national trade policies.
keeps records of countrie's rules.
helps develpoing nations with interntl trade.
acts as a forum for trade negotiations
The WTO superseded and administers the GATT providing a variety of trade support functions. The WTO differs from the GATT in that the WTO is an established institution based in Geneva, Switzerland, instead of simply an agreement.
Term
otal market value of final goods and services produced in an economy in a year. _____ is the most common measure of market potential of an economy.
 Definition
Gross Domestic Product, GDP
Term
The Economist's Big Mac Index employs this measure to assess the relative economic buying power among nations.
 Definition
PPP purchasing power parity

theory that states that if the exchange rates of two countries are in equilibrium, a product purchased in one will cost the same in the other, if expressed in the same currency.A frequently used measure of an overall economy
Term
the major international organization monitoring and managing exchange rates but, it is not a major trade agreement.
 Definition
The IMF or International Monetary Fund
Term
major trade agreements affecting global trade?
 Definition
NAFTA, EU, ASEAN, CAFTA
Term
A firm's segmentation strategy must be consistent with and derived from the firm's _____, as well as its current situation.
 Definition
mission and objectives
Term
The first step in the segmentation process is...
 Definition
Establish overall strategy
to articulate the vision or the objectives of the company's marketing strategy clearly.
Term
Marketers involved in mass customization are engaged in:
 Definition
one-to-one marketing
Term
Demographic segmentation is the most common basis of consumer market segmentation, because these segments are:
 Definition
easy to define and usually easy to reach.
"divides the larger market into groups based on age, income, education, race, or gender. It is usually relatively easy to identify and reach demographic segments in the marketplace."
Term
VALS segments
 Definition
VALS framework : Innovator (high resources and innovation), Thinkers & Believers, Achievers & Strivers , Experiencers & Makers, and Survivors (low resources and innovation)

survey instrument, consumers are classified into one of eight segments
Term
California who were over 50. using _____ segmentation.
 Definition
geodemographic -uses both location (geography: California) and demographics (age: over 50)
Term
"Is the segment substantial?" meaning...
 Definition
are there enough people to potentially sell to? or analyze if the market is significant enough to generate sufficient profits
Term
customers in a segment react similarly and positively to the firm's marketing mix, that market segment is said to be:
 Definition
responsive
Term
Positioning is
 Definition
a firm's efforts to define the firm's marketing mix variables so that target customers have a clear, distinctive, desirable understanding of what their product does or represents in comparison with competing products.
Term
7-Up positioned its product as "the Uncola" to differentiate it from caramel-colored cola beverages like Pepsi and Coke. This is an example of a positioning strategy based on:
 Definition
competition
Firms can choose to position their products or services against a specific competitor or an entire product/service classification.
Term
Related to market research efforts, consumers are more anxious than ever about:
 Definition
preserving their fundamental right to privacy.
Term
directly affects market researchers' attempts to directly survey individuals?
 Definition
With today's information technology, many consumers are concerned about privacy
Term
pieces of information that have already been collected
from other sources and usually are readily available. The data can be quickly accessed at a relatively low cost.
 Definition
secondary research data
Term
can be tailored to meet the specific questions and problems to be addressed.
 Definition
primary research data
Term
engage in exploratory research when:
 Definition
the market research problem is not clearly defined.
Term
conclusive research method?
 Definition
offers a means to confirm implicit hunches through surveys, formal studies such as specific experiments, scanner and panel data, or some combination of these.
Term
Vernice wants to know more about how people feel about her company's product on an individual level. Which of the following research methods would be best in helping Vernice accomplish this research goal?
 Definition
In-depth interviews
Term
if the researcher wants to know what specific customers think or how they feel, it can be the most effective research method to address the problem.
 Definition
in-depth interviews, though they can be expensive and time consuming,
Term
wants more information about his customers' opinions and feelings about upcoming fall styles. Fred will most likely use _____ to gather these data.
 Definition
focus group interviews
Term
has a consumer looking at the neon sign of a Casino with a text box above the consumer. He is then asked to write his thoughts on the issue in the text box. Which exploratory research method is being used here?
 Definition
Projective technique
a type of qualitative research in which subjects are provided a scenario and asked to express their thoughts and feelings about it.
Term
Identify the type of quantitative research systematically manipulates one or more variables to determine which has a causal effect on other variables.
 Definition
Experimental research
Term
For a new firm which just started using MkIS data, the problem it faces is that:
 Definition
they do not have enough internal data to collect and analyze.
Term
For a firm investing resources in market research, value is created if:
 Definition
eventual management decisions are in–line with the results of research.
Term
Every Internet marketer has to tell the consumer what will or will not be done with the information provided by them by issuing a:
 Definition
questionnaire information guide.
Term
Joey wants to do an online survey of students about the factors that make them join a particular university. He would like to use a structured questionnaire but is not sure what responses to include for each question. To help him develop the questionnaire Joey can utilize:
 Definition
in-depth interviews.
-exploratory research
-trained researchers listen to, record, and pose additional questions to consumers about their behavior
Term
Exploratory Research types
 Definition
observation , in-depth interviews, focus groups, projective techniques
-attempts to understand the phenomenon of interest, when a problem lacks clear definition.
Term
Conclusive Research Types
 Definition
Experiments, Surveys, Scanner (obtained from UPC codes) , Pannel (collecting info from a group over time)
Term
Conclusive research definition
 Definition
information needed to confirm preliminary insights, which managers use to pursue appropriate actions.
Term
Observation
 Definition
exploratory research that entails examining behaviors
Term
in-depth interview
 Definition
exploratory research
-trained researchers listen to, record, and pose additional questions to consumers about their behavior
Term
focus group interview
 Definition
-exploratory research
-Unstructured and intensive discussion of a topic happening in a small group
-uses a small group to discuss. using an unstructured inquiry method.
-
- researchers usually make a recording of the whole interview with a primary intention of assessing verbal/nonverbal responses
Term
Scanning systems in retail outlets create a large amount of information related to purchasing, which is usually stored in the company's:
 Definition
exploratory research department.
Term
A breakfast cereal company wants to know how its sale would be affected if it increased prices by 5 percent for a month. A viable research strategy that it may adopt is:
 Definition
scanner research.
Term
projective technique
 Definition
-qualitative exploratory research
-subjects are provided a scenario and asked to express their thoughts/feelings
Term
survey
 Definition
-conclusive research
-systematic means of collecting info using a questionaire
Term
experiments
 Definition
-conclusive research
-systematically manipulates one ore more variables to determine which has a casual effect on the other variables.
Term
Panel research
 Definition
-conclusive research
-collects information from a group of people over time -data may be from a survey or purch. records
Term
Product assortments can also be described...
 Definition
in terms of their breadth and depth
Term
A firm's product line breadth (sometimes also referred to as variety) represents
 Definition
represents the number of product lines offered by the firm.
Term
the product line breadth.
 Definition
The number of product lines offered by the firm
Term
When a firm adds new product categories to address changing consumer preferences, it is effectively:
 Definition
increasing its product depth.
Term
Brand awareness matters most for products that are:
 Definition
bought without much thought, such as bread and candy.
Term
Brand association
 Definition
-reflects the mental links that consumers make between a brand and its key product attributes.
-If consumers think that if Wal-Mart has the lowest prices on food, it is going to have the lowest prices on all goods,
Term
Cobranding is the practice of:
 Definition
marketing two or more brands together.
Term
Brand licensing is
 Definition
a contractual arrangement whereby one firm allows another to use its brand name, logo, symbols, or characters for a negotiated fee.
Term
A university specializing in management studies offers varying courses including research studies, graduate studies and undergraduate studies. These courses can be considered as the university's:
 Definition
product line.
Term
The packaging of a product which is more useful to the retail store than the consumer is called:
 Definition
secondary package.
Term
While estimating the success of a brand, the value of a brand can be measured by:
 Definition
assessing the earning potential of a brand in the next 12 months.
Term
associated with branding?
 Definition
A) Brands facilitate purchasing.
B) Brands establish loyalty.
C) Brands reduce marketing costs.
Term
According to the diffusion of innovation curve, this group usually represents the lowest percentage of the total market for any new product or service.
 Definition
Innovators
Term
The four factors affecting new product diffusion include
 Definition
relative advantage, compatibility, observability, and trialability but not predictability.
Term
Valerie is involved in _____, taking apart a competitor's product, analyzing it, and trying to create an improved product that does not infringe on the competitor's patents.
 Definition
-reverse engineering
-one source of new product ideas. Firms constantly monitor their competitors and taking apart competitors' new products is part of competitive new product development strategy.
Term
Lead users
 Definition
-have customized the firm's products; other customers might wish to do so as well.
-Innovative product users who modify existing products according to their own ideas to suit their specific needs
Term
During _____ for a new product, a marketer will likely ask consumers whether they would buy the product, how frequently would they purchase it, and whether consumers think it is a good value for the price being suggested.
 Definition
concept testing
Term
Beta testing
 Definition
uses potential consumers, who examine the product prototype in a "real use" setting to determine its functionality, performance, potential problems, and other issues specific to its use.
Term
All of the following factors have contributed to the growth of service-oriented economies in developed countries
 Definition
an aging population creating increased demand for services.
household maintenance activities which people increasingly pay others to perform.
consumers placing a high value on convenience and leisure.
manufacturing costs that are lower in developing countries.
(p.205)
Term
Inseparability of services imply that:
 Definition
production and consumption are inseparable.
-"Consumers rarely have the opportunity to try the service before they purchase it. Satisfaction guarantees are one method of assuring customers they will receive good quality service."
Term
Pricing strategies can be used to
 Definition
overcome differences in supply and demand for services that will otherwise go unused like seats in an airplane flight.
Term
The Service Gaps Model identifies
 Definition
four potential service gaps: a knowledge gap, standards gap, delivery gap, and communication gap.
Term
The knowledge gap reflects
 Definition
the difference between customers' expectations and the firm's perception of those customer expectations
Term
Firms can close this gap by
 Definition
matching customer expectations with actual service through research.
Term
Firms can attempt to close the standards gap by:
 Definition
setting appropriate service standards and measuring service performance.
Term
Consumers assess overall service quality based
 Definition
assurance, reliability, empathy, responsiveness, and tangibles.
Term
A zone of tolerance is....
 Definition
the area between customers' expectations regarding their desired service and the minimum level of acceptable service.
Term
to determine a zone of tolerance
 Definition
Firms ask a series of questions about each service dimension.
-desired level of service
- how well the firm performs in each service quality dimension
-the importance of each service quality dimension.
-their expected level of service for each of the five service quality dimensions.
Term
Delivery gaps can be reduced
 Definition
when employees are empowered to act in the customers' and the firm's best interests and supported in their efforts so they can do their jobs effectively. Technology can also be employed to reduce delivery gaps.
Term
Even if there are no other gaps____always results in a service failure
 Definition
a delivery gap
Term
Keystoning is an example of a "rule of thumb" in marketing mix strategy where marketers:
 Definition
double the cost of a product to determine price.
Term
The fewer the substitutes that exist in a market:
 Definition
the lower the price elasticity for each product.
Term
If a 1 percent decrease in price results in less than a 1 percent increase in quantity demanded, demand is:
 Definition
price inelastic.
-percentage change in quantity demanded is less than the percentage change in price.
Term
If the price for a product decreases, the demand for its substitute will:
 Definition
decrease
-cross-price elasticity of demand, as the price of one product decreases, demand for substitute products will decrease as consumers purchase more of the product whose price has been lowered.
Term
promote sales by temporarily reducing prices to encourage purchase.
 Definition
High/low pricing
Term
stresses retail prices that fall somewhere between regular, nonsale prices and deep discounts offered by other retailer,
 Definition
everyday low pricing
Term
the break-even point is determined by
 Definition
diving the fixed costs of $20,000 by the contribution profit per unit ($60-$20) = 20,000/40= 500.
Term
different companies that consumers perceive as substitutable sell commodity products. In such markets, price usually is set according to the laws of supply and demand.
 Definition
With pure competition
Term
a legitimate attempt to build store traffic by pricing a regularly purchased item aggressively but still above the store's cost
 Definition
Leader pricing
Term
This practice involves selling at a price below the store's cost.
 Definition
Loss leader pricing
Term
All of the following are common activities associated with logistics management
 Definition
demand forecasting.inventory control.order processing.return goods handling.
-focusing on managing the flow of materials, inventory, and finished goods from the point of origin to the point of consumption.
Term
Marketing managers often focus on _____, while logistics managers focus on _____, causing conflict when trying to provide value to customers.
 Definition
maximizing sales; minimizing costs
Term
an electronic data interchange which would allow him to do all of the following
 Definition
initiate purchase orders.
C) send and receive invoices.
D) receive returned merchandise documentation.
E) receive sales data.
- exchange of business documents facilitating supply chain management but not necessarily increasing sales.
Term
In a(n) _____ system, information is used to generate a sales forecast and a delivery schedule.
 Definition
CPFR
Term
A collaboration, planning, forecasting, and replenishment system (CPFR) is
 Definition
an inventory management system using an EDI through which retailers send sales information to manufacturers.
Term
A cross-docking distribution center is one ....
 Definition
to which vendors ship merchandise prepackaged in the quantity required for each store.
-merchandise goes straight to a staging area.
Term
JIT or just-in-time delivery systems require
 Definition
cooperation, develop EDI systems. develop CPFR systems.share data.
- require a high level of coordination and trust between firms and their vendors.
Term
the amount of time between the recognition that an order needs to be placed and the arrival of the needed merchandise at the seller's store, ready for sale
 Definition
Lead time
Term
the EDI in the JIT system reduces lead time how?
 Definition
By eliminating the need for paper transactions by mail, overnight deliveries, or even faxes
Term
Manufacturers of _____ frequently use selective distribution intensity, knowing consumers are willing to spend time comparing alternatives.
 Definition
shopping goods
-products that consumers tend to engage in comparison shopping. Since consumers will go through the comparison process, marketers do not need to have the products available everywhere (intensive distribution) but do need to have the products available in more than one outlet making exclusive distribution not appropriate.
Term
Dominant channel member controls the relationship
 Definition
administered vertical marketing system
- no common ownership and no contractual relationships
Term
Retailers use all of the following to create an atmosphere that will offer a more pleasant shopping experience.
 Definition
lighting. music.scents.crowding of merchandise.
Term
refer to the percentage of the customer's purchases made from a particular retailer?
 Definition
Share of wallet
Term
_____ is the most important innovation in retailing in the last twenty years.
 Definition
E-retailing
Term
discount stores, specialty stores, category specialists, department stores, drugstores, off-price retailers, and extreme value retailers
 Definition
main types of general merchandise retailers
Term
A _____ is a retailer with such an extensive assortment in a particular category that would-be competitors do not bother carrying that category of products and instead, simply refer customers to the other firm.
 Definition
category specialist
-offer an extensive assortment of a particular category of products, often overwhelming that category, making it difficult for other retailers to compete in that category.
Term
In recent years, _____ have lost market share to discount and specialty stores.
 Definition
department stores
Term
he IMC communication process includes all of the following
 Definition
the transmitter.the sender.the communication channel.the receiver.
Term
he IMC communication process begins with the sender, followed by
 Definition
followed by the transmitter (often an advertising agency) which encodes the message, followed by the communications channel through which the message is sent to the receiver, who decodes the message.
Term
The AIDA process involves
 Definition
awareness/attention, interest, desire, and action
Term
the three communications goals
 Definition
inform, persuade, or remind
Term
Although consumers don't often interact with professional salespeople, personal selling represents an important component of many IMC programs, especially in
 Definition
in business-to-business (B2B) settings.
Term
Sales promotions such as contests and sweepstakes are used as part of many firms' CRM programs to:
 Definition
build customer loyalty.
-Contests and sweepstakes create a "buzz" about products, particularly among existing customers. Therefore, marketers often used these sales promotions as part of CRM.
Term
When purchasing shoes on Zappos.com, Kathy is shown a message saying "Customers who purchased (your shoes) also purchased........." This is an example of:
 Definition
direct marketing.
-Direct marketing efforts involve sales and promotional techniques that deliver promotional materials to individual potential customers.
Term
Which rule-of-thumb method sets the communication budget in such a manner that the firm's share of communication expenses equals its share of the market?
 Definition
Competitive parity
-his method does not allow firms to exploit the unique opportunities or problems they confront in a market.
-The communication budget is set so that the firm's share of communication expenses equals its share of the market.
Term
The difference between advertising and public relations is that public relations is:
 Definition
not a paid form of marketing communication.
-Advertising is paid marketing communications while publicity is free. Marketers actively cultivate publicity, knowing consumers give greater credibility to publicity than to advertising.
Term
the following observations concerning persuasive advertising are true
 Definition
It is used when the product has gained a certain level of brand awareness.
It is used to motivate consumers to take action.
It generally occurs in the growth and early maturity stages of the PLC.
It attempts to accelerate the market's acceptance of the product.
Term
Informative advertising helps determine
 Definition
determine some important early stages of a product's life cycle, particularly when consumers have little information about the specific product or type of product.
Term
"We are your local university" ad campaign is a(n) _____ campaign.
 Definition
Institutional advertising
-Institutional advertising includes politics, places, industries, or a particular corporation but does not focus on products or brands.
Term
Which of the following is the primary enforcement agency for most mass media advertising?
 Definition
Federal Trade Commission
- The FTC is the primary enforcement agency for most mass media advertising.
Term
Puffery is
 Definition
-legal exaggeration, stopping short of deceptive advertising.
-"You have tried the rest; now try the best!" is an example
Term
Which step immediately follows the request for proposals (RFP) process in a Business-to-Business buying process?
 Definition
Vendor negotiation and selection
-(proposal analysis:evaluate all proposals)
Term
Elliot works in the office of a building materials company. One of his jobs is to identify new building projects and determine who will make the building materials purchase decision. Elliot is involved in the _____ step of the selling process.
 Definition
generate leads
-The first stage of the selling process is to generate and qualify leads or potential customers.
Term
TRUE of cold calls and telemarketing?
 Definition
-Their success rate is fairly low.
-They have become less popular than they were in the past.
-the customers needs are NOT known ahead of time.
-can be very expensive
-and federal and state governments have begun to regulate telemarketing (do-not-call list maintained by the FTC) or before 8am or after 9pm, prohibit unsolicited calls, faxes, emails, or cell phone contact.
Term
The preapproach stage occurs prior to meeting the customer for the first time and:
 Definition
extends the qualification of leads procedure.
Term
Personal Selling Process Steps
 Definition
1. Generate and qualify leads.
2.pre-approach (research)
3. Sales presentation and overcome reservations
4. close the sale
5.follow up
Term
5. follow up service quality dimensions
 Definition
reliability
responsiveness
assurance
empathy
tangibles
Term
In the selling process, the follow-up stage is best characterized by the saying:
 Definition
"It ain't over till it's over."
-experienced salespeople and salespeople engaged in relationship selling know follow-up is critical to success and follow-up "ain't over till it's over."
Term
manufacturer's representatives are hired when a company..
 Definition
When they cannot afford to hire a sales force.
When they are small and trying to get established.
When they want to achieve extensive sales coverage quickly.
When entering new markets.
Term
responsibility of an order getter?
 Definition
Identifying potential customers.
Engaging customers in discussions to attempt to make a sale.
Following up with the customer.
Ensuring that the customer is satisfied.
Term
Eric is a salesperson employed at a paper packaging product manufacturing company. His primary responsibility is to process routine orders or reorders for folding cartons manufactured by his company. Eric is a(n)
 Definition
order taker.
-An order taker is a salesperson whose primary responsibility is to process routine orders or reorders or rebuys for products.
Term
Which compensation system provides the most incentive for the sales force to sell?
 Definition
Commission
Term
autocratic buying center
 Definition
A buying center in which one person makes the decision alone, though there may be multiple participants.
Term
brand extension
 Definition
The use of the same brand name for new products being introduced to the same or new markets.
Term
The number of stock keeping units (SKUs) within a category.
 Definition
category depth
Term
The practice of marketing two or more brands together, on the same package or promotion.
 Definition
cobranding
Term
A component of attitude that comprises the actions a person takes with regard to the issue at hand.
 Definition
behavioral component
Term
A component of attitude that reflects what a person believes to be true.
 Definition
cognitive component
Term
An inventory management system that uses an electronic data interchange (EDI) through which a retailer sends sales information to a manufacturer.
 Definition
collaboration, planning, forecasting, and replenishment (CPFR)
Term
A type of service gap; refers to the difference between the actual service provided to customers and the service that the firm's promotion program promises.
 Definition
communication gap
Term
Used by firms to collect and synthesize information about their position with respect to their rivals; enables companies to anticipate market developments rather than merely react to them.
 Definition
competitive intelligence (CI)
Term
A firm's strategy of setting prices that are similar to those of major competitors.
 Definition
competitive parity
Term
A company objective based on the premise that the firm should measure itself primarily against its competition.
 Definition
competitor orientation
Term
A strategy that involves pricing below, at, or above competitors' offerings.
 Definition
competitor-based pricing
Term
A system in which independent firms at different levels of the supply chain join together through contracts to obtain economies of scale and coordination and to reduce conflict.
 Definition
contractual vertical marketing system
Term
Those for which the consumer is not willing to spend any effort to evaluate prior to purchase.
 Definition
convenience goods/services
Term
countertrade
 Definition
Trade between two countries where goods are traded for other goods and not for hard currency.
Term
cross-docking distribution center
 Definition
A distribution center to which vendors ship merchandise prepackaged and ready for sale. So the merchandise goes to a staging area rather than into storage. When all the merchandise going to a particular store has arrived in the staging area, it is loaded onto a truck, and away it goes. Thus, merchandise goes from the receiving dock to the shipping dock—cross-dock.
Term
culture
 Definition
The set of values, guiding beliefs, understandings, and ways of doing things shared by members of a society; exists on two levels: visible artifacts (e.g., behavior, dress, symbols, physical settings, ceremonies) and underlying values (thought processes, beliefs, and assumptions).
Term
The use of a variety of statistical analysis tools to uncover previously unknown patterns in the data stored in databases or relationships among variables.
 Definition
data mining
Term
The buying center participant who ultimately determines any part of or the entire buying decision—whether to buy, what to buy, how to buy, or where to buy.
 Definition
decider
Term
Mental shortcuts that help consumers narrow down choices; examples include price, brand, and product presentation.
 Definition
decision heuristics
Term
A type of service gap; the difference between the firm's service standards and the actual service it provides to customers.
 Definition
delivery gap
Term
The grouping of consumers according to easily measured, objective characteristics such as age, gender, income, and education.
 Definition
demographic segmentation
Term
Sales and promotional techniques that deliver promotional materials individually to potential customers.
 Definition
direct marketing
Term
The person who coordinates deliveries to distribution centers.
 Definition
dispatcher
Term
A strategy companies use to emphasize the continuity of their retail prices at a level somewhere between the regular, nonsale price and the deep-discount sale prices their competitors may offer.
 Definition
everyday low pricing (EDLP)
Term
A general merchandise discount store found in lower-income urban or rural areas.
 Definition
extreme value retailer
Term
Allows the receiver to communicate with the sender and thereby informs the sender whether the message was received and decoded properly.
 Definition
feedback loop
Term
financial risk
 Definition
Risk associated with a monetary outlay; includes the initial cost of the purchase, as well as the costs of using the item or service.
Term
Pertain to the performance of a product or service.
 Definition
functional needs
Term
Generational cohort of people born between 1977 and 1995; biggest cohort since the original postwar baby boom.
 Definition
Generation Y
Term
gross rating points (GRP)
 Definition
Measure used for various media advertising—print, radio, or television; GRP = reach x frequency.
Term
The part of the strategic marketing planning process when marketing managers (1) identify and evaluate different opportunities by engaging in segmentation, targeting, and positioning (see STP) and (2) implement the marketing mix using the four Ps.
 Definition
implementation phase
Term
Represents the promotion dimension of the four Ps; encompasses a variety of communication disciplines—general advertising, personal selling, sales promotion, public relations, direct marketing, and electronic media—in combination to provide clarity, consistency, and maximum communicative impact.
 Definition
integrated marketing communications (IMC)
Term
A type of service gap; reflects the difference between customers' expectations and the firm's perception of those expectations.
 Definition
knowledge gap
Term
Specifically designed to retain customers by offering premiums or other incentives to customers who make multiple purchases over time.
 Definition
loyalty program
Term
Salespeople who sell a manufacturer's products on an extended contract basis but are not employees of the manufacturer;
 Definition
independent agents, reps, or manufacturer's representative
Term
A growth strategy that employs the existing marketing offering to reach new market segments, whether domestic or international.
 Definition
market development strategy
Term
A pricing strategy of setting the initial price low for the introduction of the new product or service, with the objective of building sales, market share, and profits quickly.
 Definition
market penetration pricing strategy
Term
A growth strategy that employs the existing marketing mix and focuses the firm's efforts on existing customers.
 Definition
market penetration strategy
Term
Involves the process of defining the marketing mix variables so that target customers have a clear, distinctive, desirable understanding of what the product does or represents in comparison with competing products.
 Definition
market positioning
Term
The combination of the media used and the frequency of advertising in each medium.
 Definition
media mix
Term
U.S. Bureau of Census classification scheme that categorizes all firms into a hierarchical set of six-digit codes.
 Definition
North American Industry Classification System (NAICS) codes
Term
Reflects the set of values, traditions, and customs that guide a firm's employees' behavior.
 Definition
organizational culture
Term
Communication used to motivate consumers to take action.
 Definition
persuasive advertising
Term
The part of the strategic marketing planning process when marketing executives, in conjunction with other top managers, (1) define the mission or vision of the business and (2) evaluate the situation by assessing how various players, both in and outside the organization, affect the firm's potential for success.
 Definition
planning phase
Term
Ads designed to generate demand for the product category or an entire industry.
 Definition
primary demand advertising
Term
A group of products that consumers may use together or perceive as similar in some way.
-Groups of associated items, such as those that consumers use together or think of as part of a group of similar products.
 Definition
product line
Term
The number of product lines, or variety, offered by the firm.
 Definition
product line breadth
Term
The number of categories within a product line.
 Definition
product line depth
Term
Argues that when lower-level, more basic needs (physiological and safety) are fulfilled, people turn to satisfying their higher-level human needs (social and personal); see physiological, safety, social, and personal needs.
 Definition
PSSP hierarchy of needs
Term
A theory that states that if the exchange rates of two countries are in equilibrium, a product purchased in one will cost the same in the other, expressed in the same currency.
 Definition
purchasing power parity (PPP)
Term
A method of building a relationship with customers based on the philosophy that buyers and sellers should develop a long-term relationship.
 Definition
relational orientation
Term
sales management
 Definition
Involves the planning, direction, and control of personal selling activities, including recruiting, selecting, training, motivating, compensating, and evaluating, as they apply to the sales force.
Term
A division of the firm itself that can be managed and operated somewhat independently from other divisions and may have a different mission or objectives.
 Definition
strategic business unit (SBU)
Term
Introduces a new product or service to a limited geographical area (usually a few cities) prior to a national launch.
 Definition
test marketing
Term
A psychographic tool developed by SRI Consulting Business Intelligence; classifies consumers into eight segments: innovators, thinkers, believers, achievers, strivers, experiencers, makers, or survivors.
 Definition
Value and Lifestyle Survey (VALS2)
Term
An ongoing marketing research system that collects customer inputs and integrates them into managerial decisions.
 Definition
voice-of-customer (VOC) program
Term
A development bank that provides loans, policy advice, technical assistance, and knowledge-sharing services to low-and middle-income countries in an attempt to reduce poverty in the developing world.
 Definition
World Bank Group
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