Basic Marketing and Management Answers Summary

CHAPTER 8 1. Which of the following correctly defines a product? (a product is anything offered to a market that might satisfy a need or want) 2. Charles Revson, who started Revlon, once said "We sell hope." Revson was defining the __________ of Revlon cosmetics. (core customer value) 3. Product planners think of products on three levels. Which of the following correctly identifies the three levels? (the core customer value, the actual product, and the augmented product) 4. Typically, consumers put in minimum time and effort when buying products such as laundry detergent, candy, and fast food. These types of goods are classified as __________ products. (a convenience) 5. Materials and parts, capital items, and supplies and services are groups of __________products. (industrial) 6. Mothers Against Drunk Driving (MADD) runs advertising campaigns aimed at stopping drunk driving and preventing underage drinking. This is an example of__________. (social marketing) 7. Furniture, major appliances, clothing, and hotel services are classified as__________ products. (shopping) 8. In determining product quality, what are the two dimensions of quality marketers must decide upon? (level and consistency) 9. Which of the following statements regarding individual product decisions iscorrect? (customer service is an important element of product strategy) 10. The number of items in a product line represents the __________ and the total number of product lines a company carries represents the __________. (product line length; product mix width) 11. When a company lengthens a product line by adding more items within that lines current range, they are __________. (filling the line) 12. If a company adds a new product line to its existing portfolio, it has increased its __________. (a product mix width) 13. A group of products that are closely related because they function in a similarmanner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges are called a(n) __________. (product line) 14. Services cannot be seen, tasted, felt, heard, or smelled before they are bought. In other words, services are __________. (intangible) 15. What are the four special service characteristics marketers must consider when designing marketing programs? (intangibility, inseparability, variability, and perishability) 16. One characteristic of services is their variability. What is the main reason for services being variable? (service quality depends on who provides them, as well as when, where, and how they are provided) 17. For which service characteristic do marketers need to pay close attention to fluctuations in demand? (perishability) 18. Which of the following statements about service marketing is correct? (training current employees better and hiring new ones with more skills can increase service productivity) 19. Service quality greatly depends on the quality of the buyer–seller interaction during the service encounter. This is known as __________. (interactive marketing) 20. Walmart created the Great Value brand for their food products and the Equate brand for their pharmacy, health, and beauty products. Walmart does not manufacture any of these products. Which type of brand sponsorship is Walmart using? (a private band) 21. Which of the following best describes brand equity? (a measure of the brand’s ability to capture consumer preference and loyalty) 22. According to the text, what are the three levels on which brands can bepositioned? (product attributes, desirable benefits, and beliefs and values) 23. When Doritos comes out with new flavors of their tortilla chips, what brand development strategy are they using? (line extension) 24. Duracell is well known for manufacturing and marketing batteries. Recently they launched the Duracell Powermat, which is a wireless charger for mobile devices. Which brand development strategy did Duracell use in this example? (brand extension) 25. Which of the following statements regarding managing brands is correct? (customers’ engagement with brands and customers’ brand experiences are key elements in maintaining a brand’s position) CHAPTER 9 1. What must companies do to create successful new products? (understand its consumers, markets, and competitors and develop products that deliver superior value) 2. Which of the following statements about new product development strategy is correct? (innovation can be very expensive and very risky) 3. Which of the following statements concerning new products is correct? (modified and improved products are considered new) 4. What is the first step of the new product development process? (idea generation) 5. At which stage of the new product development process is a physical product first developed? (product development) 6. During the idea generation stage of the new product development process, it is important that __________. (companies creates a large number of ideas) 7. What is a product concept? (a detailed version of a new product idea stated in meaningful consumer terms) 8. If a company finds that a new product concept is acceptable and should be moved forward, what is the next step in the new product development process? (marketing strategy development) 9. One recent development in generating new product ideas is for a company to invite broad communities of people—such as employees, customers, and even the public at large—into the innovation process. This is known as __________. (crowdsourcing) 10. During concept testing, who is the product concept actually tested on? (group of target customers) 11. Which of the following statements regarding standard test marketing is correct? (test marketing can be costly and delay commercialization of the product) 12. According to the text, the most successful new products satisfy three criteria. What are these criteria? (they solve a major customer problem, are differentiated, and offer a compelling value proposition) 13. Installing an innovation management system to collect, review, evaluate, and manage new product ideas represents a(n) __________ approach to new product development. (systematic) 14. Companies should take a holistic approach to new product development. This means that the process should be __________. (customer-centered, team-based, and systematic) 15. When Dr. Footcare developed and launched a revolutionary new walking shoe, he knew that during the introductory stage of the product life cycle (PLC) __________. (sales would be slow and profits nonexistent) 16. Which of the following statements regarding the growth stage of the product life cycle is correct? (companies face a trade-off between high market share and high profits) 17. Most products today are in which stage of their product life cycle? (maturity) 18. Which of the following would be an appropriate strategy during the maturity stage of the product life cycle? (modify the market, product offering, or marketing mix) 19. A firm improves product quality and adds new product features and models. It also shifts some advertising from building product awareness to building product conviction and purchase. At which stage of the product life cycle would this be a recommended strategy? (growth) 20. A temporary period of unusually high sales driven by consumer enthusiasm and immediate product or brand popularity is called a(n) __________. (fad) 21. In the decline stage of the product life cycle, some companies continue to offer the product but reduce various costs, hoping that sales hold up. This is known as __________ the product. (harvesting) 22. Which of the following statements regarding socially responsible product decisions is correct? (the government may prevent companies from adding products through acquisitions if the effect threatens to lessen competition) 23. Which government agency has the authority to ban or seize potentially harmful products and set severe penalties for violation of the law? (the consumer product safety commission CPSC) 24. Which of the following statements is true regarding standardizing products for international markets? (standardization decreases product design, manufacturing, and marketing costs) 25. To succeed in France, McDonalds had to __________. (tailor their operations to local french preferences) CHAPTER 14 1. __________ is the promotion mix tool that consists of short-term incentives to encourage the purchase or sale of a product or service. (sales promotion) 2. Specific promotional tools used in __________ include press releases, sponsorships, events, and web pages. (public relations) 3. Which promotional tool includes presentations, trade shows, and incentiveprograms? (personal selling) 4. Which promotional tool is any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor? (advertising) 5. __________ involves engaging directly with carefully targeted individual consumers and customer communities to both obtain an immediate response and build lasting customer relationships. (direct and digital marketing) 6. What are the three major factors identified in the text that are changing today's marketing communications landscape? (consumers, marketing strategy, and digital technologies) 7. Which of the following statements regarding the changing communications landscape is correct? (the dominance of television, magazines, newspapers, and other traditional mass media is declining) 8. What is the goal of integrated marketing communications? (to deliver clear, consistent, and compelling company and brand messages) 9. Many marketers today create, inspire, and share brand messages and conversations with customers across a mix of communication channels. In this regard they view themselves as __________. (content marketing managers) 10. A recent study showed that more than two-thirds of advertisers are planning video ad campaigns that stretch across multiple viewing platforms. This is called__________. (video convergence) 11. One reason there is a need for integrated marketing communications is that__________. (consumers don’t distinguish between content sources the way marketers do) 12. Which of the following statements regarding advertising in the new marketing communications model is correct? (advertisers are shifting toward digital media) 13. Developing effective marketing communications starts with __________. (identifying the target audience) 14. In the communication process, putting thought into symbolic form is called__________. (encoding) 15. One framework for designing an effective message is the AIDA model. In the AIDA model __________. (attention leads to interest, which hopefully leads to desire and then action) 16. Which of the following is the correct order of the six buyer-readiness stages? (awareness, knowledge, liking, preference, conviction, and purchase) 17. In the content of a message, marketers often use __________ appeals such asjoy, love, humor, fear, and guilt. (emotional) 18. Nonpersonal communication channels include __________. (major media, atmospheres, and events) 19. __________ involves cultivating opinion leaders and getting them to spread information about a product or a service to others in their communities. (buzz marketing) 20. One form of influence that carries great weight, especially for products that are expensive, risky, or highly visible is __________. (word of mouth) 21. Which method for setting the total promotion budget is the most difficult to use? (the objection-and-task method) 22. A company wishes to reach a large number of geographically dispersed buyers at a low cost per exposure. Which element of the promotional mix should the company use? (advertising) 23. Using a push strategy, a firm directs its promotional efforts toward __________. (channel members) 24. At certain stages of the buying process, which element of the promotional mix is most effective in building up buyers' preferences, convictions, and actions? (personal selling) 25. Which promotion budgeting method wrongly views sales as the cause of promotion rather than as the result? (percentage-of-sales) CHAPTER 15 1. Which of the following statements about advertising is correct? (in addition to businesses, advertising is used by many types of organizations) 2. What is the first decision advertisers need to make when developing an advertising program? (setting advertising objectives) 3. Advertising objectives can be classified based on their primary purpose. What are the three purposes? (to inform, persuade, or remind) 4. When a company directly or indirectly compares its brand with one or more other brands in an advertisement, they are using __________. (comparative advertising) 5. Which type of advertising is heavily used for new product category introductions? (informative) 6. Which type of advertising is important for mature, established brands? (reminder) 7. Which of the following statements about setting an advertising budget is correct? (new products typically need relatively large advertising budgets to build awareness and to gain consumer trial) 8. What are the two major elements of advertising strategy? (creating messages and selecting media) 9. Regardless of the size of the budget, to succeed, advertising must engage consumers and __________. (communicate well) 10. It is common to see product placements- embedding brands as props within other programming, such as TV shows or movies. Product placements are a form of __________. (branded entertainment) 11. What is the intent of advertainment? (to make ads and brand content into something that people actually want to watch) 12. Advertising appeals should have three characteristics. These characteristics are __________. (to be meaningful, to be believable, and to be distinctive) 13. To bring the message strategy to life in a distinctive and memorable way, advertisers develop what is known as the "big idea". This big idea becomes the__________. (creative concept) 14. Which execution style shows one or more "typical" people using the product in a normal setting? (slice of life) 15. What is the first step in the media selection process? (determining reach, frequency, impact, and engagement) 16. What is media impact? (the qualitative value of exposure to a message) 17. In selecting a media vehicle, media planners need to determine the cost of thevehicle's reach. To measure this, they use a method known as __________. (cost per 1000) 18. __________ consists of activities designed to engage and build good relations with the company's various publics. (public relations) 19. The public relations function of __________ is used to build and maintain national or local community relationships. (public affairs) 20. Which public relations function is used to work with donors or members of nonprofit organizations to gain financial or volunteer support? (development) 21. Which of the following statements about public relations is correct? (the lines between advertising and public relations are becoming more and more blurred) 22. One primary PR responsibility is to create content that __________. (draws consumers to a brand) 23. A company holds a news conference to announce a new product launch. Which PR tool are they using in this example? (special events) 24. Annual reports, brochures, articles, and company newsletters all represent which type of PR tool? (written materials) 25. Logos, stationery, brochures, signs, business cards, buildings, and uniforms are all types of __________. (corporate identity materials) CHAPTER 16 1. Which of the following statements is true regarding salespeople? (the best salespeople are the ones who work closely with customers for mutual gain) 2. Which of the following statements about personal selling is correct? (many customers are unable to distinguish the salesperson from the company) 3. Some companies still treat sales and marketing as separate functions. One effect this can have is to __________. (damage customer relationships) 4. In complex selling situations, personal selling can be very effective because it is __________. (interpersonal) 5. The concept of salesperson-owned loyalty means that __________. (customers become loyal to salespeople as well as the companies they represent) 6. What is the first decision made in sales force management? (designing sales force strategy and structure) 7. Procter & Gamble organizes its sales reps into teams, and each team is assigned to a major account (such as Safeway or Walmart). Which type of sales force structure is P&G using in this example? (customer) 8. Once the company has set its structure, what is the next strategic decision it faces? (sizing the sales force) 9. One study found that the best salespersons have four traits in common: intrinsic motivation, a disciplined work style, the ability to close a sale, and the ability to build relationships with customers. Knowing this would be most useful at which stage of sales force management? (recruiting and selecting salespeople) 10. What are the four elements of a compensation plan for salespeople? (a fixed amount, a variable amount, expenses, and fringe benefits) 11. Helping salespeople to “work smart” by doing the right things in the right ways is the goal of __________, whereas getting them to work hard is the goal of__________. (supervision; motivation) 12. Sales reports, call reports, and expense reports are all used in the process of __________ salespeople. (evaluating) 13. According to the text, what is the fastest-growing sales trend today? (social selling) 14. What is the focus of the selling process? (getting new customers) 15. __________ identifies qualified potential customers and is the first step of the personal selling process. (prospecting) 16. During a sales presentation, which of the following would best fit a relationship marketing approach? (tell a value story) 17. After the presentation and demonstration step in the sales process, a salesperson should next be prepared to __________. (handle objections) 18. When the only goal of personal selling is to close a sale, a company is using a(n) __________ approach. (transaction-oriented) 19. Which of the following is an objective for trade promotions? (getting retailers to carry new items and more inventory) 20. Which of the following is an objective for business promotions? (getting business leads) 21. One consumer promotion tool is __________, which are goods offered free or at a low cost as an incentive to buy a product. (premiums) 22. Delta Faucet partnered with Warrior Dash, which sponsored several 5k mud run races around the country over the summer. At each event, Delta built a huge custom shower station, complete with 184 Delta showerheads, wheremud-soaked competitors could meet and wash off after the race. This is an example of which type of promotion? (event marketing) 23. Which of the following tools can be used as both consumer and tradepromotions? (contests, premiums, and displays) 24. Which of the following would NOT be a consideration for decision making in designing the full sales promotion program? (how to set it apart from other promotion mix elements) 25. Many manufacturers have to pay retailers to get shelf space. This is an example of which type of promotion? (push money)