CLEP Marketing Exam Terms & Definitions Study Set

A manufacturer of car batteries, which has been selling through an automotive parts wholesaler to garages and service stations, decides to sell directly to retailers. Which of the following will necessarily occur?

(A) Elimination of the wholesaler's profit will result in a lower price to the ultimate consumer.

(B) Elimination of the wholesaler's marketing functions will increase efficiency.

(C) The total cost of distribution will be reduced because of the elimination of the wholesaler.

(D) The marketing functions performed by the wholesaler will be eliminated.

(E) The wholesaler's marketing functions will be shifted to or shared by the manufacturer and the retailer.

E. The wholesaler's marketing functions will be shifted to or shared by the manufacturer and the retailer.

Which of the following strategies for entering the international market would involve the highest risk?

(A) Joint ventures

(B) Exporting

(C) Licensing

(D) Direct investment

(E) Franchising

(D) Direct investment

For a United States manufacturer of major consumer appliances, the most important leading indicator for forecasting sales is

(A) automobile sales

(B) computer sales

(C) educational level of consumers

(D) housing starts

(E) number of business failures

(D) housing starts

Which of the following statements about the European Union (EU) is true?

(A) The EU creates a single Pan-European government.

(B) The EU eliminates trade barriers among member countries.

(C) The EU is considered the United States of Europe, with its capital in Brussels.

(D) The EU removes all internal and external trade barriers to global trade.

(E) The EU minimizes inflation through price controls.

(B) The EU eliminates trade barriers among member countries.

In contrast to a selling orientation, a marketing orientation seeks to

(A) increase market share by emphasizing promotion

(B) increase sales volume by lowering price

(C) lower the cost of distribution by direct marketing

(D) satisfy the needs of targeted consumers at a profit

(E) market products that make efficient use of the firm's resources

(D) satisfy the needs of targeted consumers at a profit

Which of the following characteristics of services is illustrated when a customer notes

the decoration and cleanliness of a hotel room?

(A) Impossibility

(B) Inconsistency

(C) Inseparability

(D) Intangibility

(E) Inventory

Inseparability

A fertilizer manufacturer which traditionally markets to farmers, through farm supply dealers and cooperatives, decides to sell current products to home gardeners through lawn and garden shops. This decision is an example of

(A) market penetration

(B) market development

(C) product development

(D) diversification

(E) vertical integration

(B) market development

A manufacturer which refuses to sell to dealers its popular line of office copiers unless the dealers also agree to stock the line of paper

products is most likely guilty of which of the following?

(A) Deceptive advertising

(B) Price discrimination

(C) Price fixing

(D) Reciprocity

(E) Tying contracts

(E) Tying contracts

Which of the following is an intermediary in the distribution channel that moves goods without

taking title to them?

(A) Agent

(B) Wholesaler

(C) Merchant

(D) Retailer

(E) Dispenser

(A) Agent

In which of the following situations is the number of buying influences most likely to be greatest?

(A) A university buys large quantities of paper for computer printers on a regular basis.

(B) A computer manufacturer is building a new headquarters and is trying to choose a line of office furniture.

(C) A consumer decides to buy a different brand of potato chips because they are on sale.

(D) A retail chain is searching for a vendor of lower-priced cleaning supplies.

(E) A purchasing manager has been asked to locate a second source of supply for corrugated shipping cartons.

(B) A computer manufacturer is building a new headquarters and is trying to choose a line of office furniture.

Which of the following targeting strategies involves concentrating a company's resources and expertise on one narrowly defined market

segment?

(A) An undifferentiated strategy

(B) A multi-segment strategy

(C) A mass marketing strategy

(D) A niche strategy

(E) A differentiated strategy

(D) A niche strategy

Cooperative advertising is usually undertaken by manufacturers in order to

(A) secure the help of the retailer in promoting a given product

(B) divide responsibilities between the retailers and wholesalers within a channel of distribution

(C) satisfy legal requirements

(D) create a favorable image of a particular industry in the minds of consumers

(E) provide a subsidy for smaller retailers that enables them to match the prices set by chain stores

(A) secure the help of the retailer in promoting a given product

A marketer usually offers a noncumulative quantity discount in order to

(A) reward customers for repeat purchases

(B) reduce advertising expenses

(C) encourage users to purchase in large

quantities

(D) encourage buyers to submit payment promptly

(E) ensure the prompt movement of goods through the channel of distribution

(C) encourage users to purchase in large

Which of the following statements about secondary data is correct?

(A) Secondary data are usually more expensive to obtain than primary data.

(B) Secondary data are usually available in a shorter period of time than primary data.

(C) Secondary data are usually more relevant to a research objective than are primary data.

(D) Secondary data must be collected outside the firm to maintain objectivity.

(E) Previously collected data are not secondary data.

(B) Secondary data are usually available in a shorter period of time than primary data.

Missionary salespersons are most likely to do which of the following?

(A) Sell cosmetics directly to consumers in their own homes

(B) Take orders for air conditioners to be used in a large institution

(C) Describe drugs and other medical supplies to physicians

(D) Secure government approval to sell heavy machinery to a foreign government

(E) Take orders for custom-tailored garments or other specially produced items

(C) Describe drugs and other medical supplies to physicians

The demand for industrial goods is sometimes called "derived" because it depends on

(A) economic conditions

(B) demand for consumer goods

(C) governmental activity

(D) availability of labor and materials

(E) the desire to make a profit

(B) demand for consumer goods

Behavioral research generally indicates that consumers' attitudes

(A) do not change very easily or quickly

(B) are very easy to change through promotion

(C) cannot ever be changed

(D) can only be developed through actual experience with products

(E) are very accurate predictors of actual purchasing behavior

(A) do not change very easily or quickly

A channel of distribution refers to the

(A) routing of goods through distribution centers

(B) sequence of marketing intermediaries from producer to consumer

(C) methods of transporting goods from producer to consumer

(D) suppliers who perform a variety of functions

(E) traditional handlers of a product line

(B) sequence of marketing intermediaries from producer to consumer

A major advantage of distributing products by truck is

(A) low cost relative to rail or water

(B) low probability of loss or damage to cargo

(C) accessibility to pick-up and delivery locations

(D) speed relative to rail or air

(E) ability to handle a wider variety of products than other means

(C) accessibility to pick-up and delivery locations

If a firm is using penetration pricing, the firm is most likely trying to achieve which of the following pricing objectives?

(A) Product quality leadership

(B) Market-share maximization

(C) High gross margin

(D) Status quo

(E) Geographic flexibility

(B) Market-share maximization

If a company decides to allocate more resources to personal selling and sales promotion by its resellers, which of the following strategies is it

using?

(A) Pull strategy

(B) Push strategy

(C) Direct selling strategy

(D) Indirect selling strategy

(E) Integrated marketing communication

(B) Push strategy

Marketing strategy planning includes

(A) supervising the activities of the firm's sales force

(B) determining the most efficient way to manufacture products

(C) selecting a target market and developing the marketing mix

(D) determining the reach and frequency of advertising

(E) monitoring sales in response to a price change

(C) selecting a target market and developing the marketing mix

A German appliance manufacturer plans to purchase microprocessors for its line of Internet connected appliances. To do so, it posts product specifications, order quantity, and delivery requirements on an online platform. Potential

suppliers respond with the price at which they are willing to meet these requirements, with the lowest priced bidder winning the contract. Which form of electronic purchasing does this illustrate?

(A) Traditional auction

(B) Reverse auction

(C) Electronic hub

(D) Purchasing forum

(E) E-marketplace

(B) Reverse auction

Market segmentation that is concerned with people over 65 years of age is an example of which type of segmentation base?

(A) geographic

(B) socioeconomic

(C) demographic

(D) psychographic

(E) behavioral

(C) demographic

The XYZ Corporation has two chains of restaurants. One restaurant specializes in family dining with affordable meals. The second

restaurant targets young, single individuals, and offers a full bar and small servings. The XYZ Corporation uses which form of targeted marketing strategy?

(A) Mass marketing

(B) Differentiated marketing

(C) Undifferentiated marketing

(D) Customized marketing

(E) Concentrated marketing

(B) Differentiated marketing

The marketing director of a manufacturing company says, "If my wholesaler exceeds the sales record from last month, I agree to give him

a paid trip to the Bahamas." This technique is a form of

(A) trade promotion

(B) advertising

(C) personal selling

(D) direct marketing

(E) public relations

(A) trade promotion

Using a combination of different modes of transportation to move freight in order to exploit the best features of each mode is called

(A) conventional distribution

(B) developing dual distribution

(C) selective distribution

(D) intermodal transportation

(E) freight forwarding

(D) intermodal transportation

Which of the following is a major disadvantage associated with the use of dual distribution?

(A) It is usually very expensive.

(B) It can cause channel conflict.

(C) It provides limited market coverage.

(D) It is only appropriate for corporate channels.

(E) Some distribution channel functions are not completed.

(B) It can cause channel conflict.

The estimated market value of a brand is best described as brand

(A) equity

(B) benefit

(C) worth

(D) merit

(E) return on investment

(A) equity

Which of the following would be considered a nonprofit organization?

(A) A homeless shelter that charges a fee for its services and uses the proceeds for the upkeep of the shelter

(B) A drug rehabilitation center in which revenues in excess of cost go to the owners

(C) A vaccination clinic owned by an individual entrepreneur

(D) A bookstore open to the public for business

(E) A hospital that has a publicly traded common stock

(A) A homeless shelter that charges a fee for its services and uses the proceeds for the upkeep of the shelter

Which of the following approaches for entering international markets involves granting the rights to a patent, trademark, or manufacturing process to a foreign company?

(A) Exporting

(B) Franchising

(C) Licensing

(D) Joint venturing

(E) Contract manufacturing

(C) Licensing

Reference groups are more likely to influence a consumer's purchase when the product being purchased is

(A) important

(B) inexpensive

(C) familiar

(D) intangible

(E) socially visible

(E) socially visible

Which of the following is true of the product life cycle?

(A) It can accurately forecast the growth of new products.

(B) It reveals that branded products have the longest growth phase.

(C) It cannot be applied to computer products that quickly become obsolete.

(D) It is based on the assumption that products go through distinct stages in sales and profit performance.

(E) It proves that profitability is highest in the mature phase.

(D) It is based on the assumption that products go through distinct stages in sales and profit performance.

A key goal of market segmentation is to

(A) combine different groups to meet their needs

(B) create sales territories of similar size and market potential to determine sales quotas

(C) reduce market demand to a manageable size

(D) profile the market as a whole to optimize marketing efforts

(E) allocate marketing resources more efficiently

(E) allocate marketing resources more efficiently

A company could have advertised a brand of soap as a detergent bar for men with dirty hands, but instead chose to advertise it as a moisturizing bar for women with dry skin. This illustrates the marketing principle known as

(A) product positioning

(B) sales promotion

(C) cannibalization

(D) deceptive advertising

(E) undifferentiated marketing

(A) product positioning

The process of identifying people who or companies which might have a need for a salesperson's product is known as

(A) cold calling

(B) presenting

(C) approaching

(D) prospecting

(E) targeting

(D) prospecting

Which of the following is a primary

disadvantage of direct marketing?

(A) It is difficult to measure response.

(B) It is not personal.

(C) It is poorly targeted.

(D) It tends to have high costs per contact.

(E) It has a fragmented audience.

(D) It tends to have high costs per contact.

A formal statement of standards that governs professional conduct is called a

(A) customer bill of rights

(B) business mission statement

(C) corporate culture

(D) code of ethics

(E) caveat emptor

(D) code of ethics

Maxine suddenly realizes that she is out of paper towels. She remembers that she last bought Max Dri Towels, so she stops at the store and picks up another roll of Max Dri on her way home from work. In this example, Maxine uses which form of information search in her decision

process?

(A) Limited problem solving

(B) Extended problem solving

(C) Internal information search

(D) Compensatory information search

(E) Information search by personal sources

(C) Internal information search

The ability to tailor the marketing mix processes to fit the specific needs of an individual customer is called

(A) customization

(B) community building

(C) standardization

(D) mediation

(E) product differentiation

(A) customization

Which of the following is true of price skimming?

(A) It requires intermediaries to provide kickback payments.

(B) It calls for relatively high prices to start, reducing over time.

(C) It is reserved for products in the late stages of the product life cycle.

(D) It works best in situations with highly elastic demand.

(E) It is illegal in most jurisdictions in the United States.

(B) It calls for relatively high prices to start, reducing over time.

ABC Company agrees to pay a certain amount of a retailer's promotional costs for advertising ABC's products. This is an example of

(A) cooperative advertising

(B) reminder advertising

(C) comparison advertising

(D) slotting allowance

(E) a premium

(A) cooperative advertising

To save time and money, a marketing research team uses data that have already been gathered for some other purpose. Which type of data is

the team using?

(A) Sample

(B) Primary

(C) Secondary

(D) Survey

(E) Experiment

(C) Secondary

Positioning refers to

(A) the perception of a product in customers' minds

(B) the store location in which a marketing manager suggests a product be displayed

(C) where the product is placed on the shelf

(D) which stores will distribute a company's product

(E) where the new product is first advertised

(A) the perception of a product in customers' minds

Which of the following best describes members of a buying center?

(A) Everyone involved in making the purchase decision

(B) Everyone involved in signing contracts

(C) Everyone employed in the purchasing department

(D) Direct reports of the vice president of purchasing

(E) Technical experts who advise on product specifications

(A) Everyone involved in making the purchase decision

Which of the following most closely describes manufacturers' agents?

(A) They take title to goods that they sell to other intermediaries.

(B) They do not take title to goods that they sell to other intermediaries.

(C) They take title to goods that they sell to final consumers.

(D) They do not take title to the goods that they sell on commission to final consumers.

(E) They manufacture the goods that they sell to final consumers.

(B) They do not take title to goods that they sell to other intermediaries.

Which of the following are key characteristics of services?

(A) Cost, time, quality, and value

(B) Uncertainty, variability, and standardization

(C) Intangibility, durability, and standardization

(D) Intangibility, perishability, and variability

(E) Tangibility, variability, and uncertainty

(D) Intangibility, perishability, and variability

The growth of service industries is primarily the result of

(A) increasingly complex and specialized customer needs

(B) a rise in income and the degree of customer input

(C) rapid growth of population and government tracking systems

(D) increased use of labor-intensive technology

(E) decreasing demand for equipment-based services

(A) increasingly complex and specialized customer needs

Which of the following is the fastest growing non-store retail segment in the United States?

(A) Television home shopping

(B) Automatic vending

(C) Online retailing

(D) Catalog marketing

(E) Direct-response marketing

(C) Online retailing

While writing a marketing plan, Melanie decides that the marketing objective ought to be "to increase market share by 5 percent."

A weakness in this objective is that

(A) it is not measurable

(B) it should be related to brand image rather than market share

(C) it does not specify a time period

(D) if the product is an industrial product, the objective should specify product quality

(E) it does not address all elements of the business plan

(C) it does not specify a time period

Which of the following is the first step in the sales process?

(A) Prospecting

(B) Sales presentation

(C) Gaining commitment

(D) Approach

(E) Precall planning

(A) Prospecting

Which of the following is an example of business-to-business buying?

(A) John buys a new home stereo.

(B) Hannah pays for a new television by monthly installment.

(C) Daniel decides on which college to attend.

(D) Avery purchases a new office desk for his company.

(E) Corey buys a soft drink from a vending machine.

(D) Avery purchases a new office desk for his company.

The Consumer Bill of Rights guarantees all of the following EXCEPT the right to

(A) be informed

(B) be heard

(C) choose

(D) bargain

(E) safety

(D) bargain

Harmony Households is the largest home improvement retailer in China. Because of its size and market power, the firm can insist upon

desired product features, delivery schedules, and price points from its suppliers. Harmony Households is

(A) a primary intermediary

(B) an agent retailer

(C) a multilevel distributor

(D) a channel captain

(E) a dominant distributor

(D) a channel captain

Which THREE of the following are good criteria for segmentation?

(A) accountability

(B) identifiability

(C) viability

(D) accessibility

(E) measurability

(B) identifiability

(D) accessibility

(E) measurability

Rachel Terry, regional manager at Wilcon Solvents, Inc., compares last quarter's sales with the levels projected in the firm's marketing plan. She identifies three solvent brands whose sales are below projections and initiates a series of

inquiries to discover the reasons for the shortfall. Ms. Terry is engaged in which stage of the strategic marketing process?

(A) Environmental scanning

(B) Opportunity analysis

(C) Planning

(D) Implementation

(E) Control

(E) Control

Richard Weiss, SA, is a Swiss watch manufacturer. One of its two major brands offers ruggedness and reliability to active sports enthusiasts while the other offers elegance and style to fashion conscious consumers. Which of the following segmentation approaches is this manufacturer using?

(A) Demographic

(B) Geographic

(C) Usage

(D) Benefits sought

(E) Socioeconomic

(D) Benefits sought

Compared with agent intermediaries, merchant intermediaries

(A) sell only to organizational customers

(B) sell only in export markets

(C) are employees of the manufacturer

(D) are compensated by a commission on sales

(E) take title to the goods they sell

(E) take title to the goods they sell

Gabriella's is an Italian producer of fashion jeans. In this highly competitive market, the firm wishes to match the advertising efforts of its competitors by achieving a share of voice (promotion) which is roughly equal to its share of market (sales). This approach to promotional budgeting is called

(A) all you can afford

(B) percent of sales

(C) allocation per unit

(D) competitive parity

(E) objective and task

(D) competitive parity

On its e-commerce Web site, XYZMusic.com sells songs from new artists who produce their own music. The site also hosts ads from other

e-businesses. The ads presented to a user depend on the type of music the user is reviewing. XYZMusic.com collects ad revenue when users

follow links in the ads to the advertisers' Web sites. XYZMusic.com's advertising revenue is based on

(A) cost-per-thousand exposures

(B) click-through rates

(C) ad presentation rates

(D) unique site-visitor data

(E) site-traffic data

(B) click-through rates

Which of the following is the best rationale for analyzing a company's marketing environment?

(A) To help control pollution of the air, water, and land

(B) To create a brand identity for a new product

(C) To determine the effectiveness of a social media campaign

(D) To provide stakeholders, including investors, with information about the company

(E) To understand the external factors that influence the company's marketing decisions

(E) To understand the external factors that influence the company's marketing decisions

At the most basic level, products and services

should be viewed as a collection of

(A) attributes

(B) expectations

(C) benefits

(D) features

(E) promises

(C) benefits

The primary function of promotion is to

(A) sell products and services

(B) create awareness

(C) inform, persuade, and remind

(D) make a demand more elastic

(E) eliminate competition

(C) inform, persuade, and remind

A marketing strategy is composed of both

(A) a target market and market opportunities

(B) a target market and related marketing mix

(C) a target market and SWOT analysis

(D) a marketing mix and required resources

(E) a marketing mix and competition

(B) a target market and related marketing mix

Which THREE of the following are advantages of Internet advertising as compared with traditional advertising?

(A) Target-market selectivity

(B) Tracking ability

(C) Exclusivity

(D) Mass market messaging

(E) Interactivity

(A) Target-market selectivity

(B) Tracking ability

(E) Interactivity

Which of the following statements most accurately describes antidumping laws?

(A) They set the price that foreign producers must charge.

(B) They control the maximum price of imported products.

(C) They prevent foreign producers from competing on the basis of price.

(D) They prevent foreign manufactured goods from selling at below cost.

(E) They protect consumers from cheaply manufactured foreign products.

(D) They prevent foreign manufactured goods from selling at below cost.

In selling a new global logistics information system to a large client, the national account manager of a leading supply chain management

vendor learns that client executives from marketing, production, human resources, finance, and business strategy will participate in the decision-making process. Which of the following terms best describes the scope of the buying initiative?

(A) Universal

(B) Specialized

(C) Standardized

(D) Cross-functional

(E) Decentralized

(D) Cross-functional

Which of the following lists the correct sequence of steps in the consumer decision-making

process?

(A) Need recognition, evaluation, purchase decision, invoked set, post purchase behavior

(B) Felt need, response to stimulus, evaluation of alternatives, post purchase decision, purchase behavior

(C) Alternative invoked set, need recognition, purchase decision, postpurchase evaluation

(D) Information search, need positioning, evaluation of alternatives, product purchase

decision, postpurchase satisfaction

(E) Need recognition, information search, evaluation of alternatives, purchase, postpurchase behavior

(E) Need recognition, information search, evaluation of alternatives, purchase, postpurchase behavior

Consumers tend to be more satisfied with their purchase of a product when

(A) cognitive dissonance develops after the purchase

(B) the price of the product falls after the purchase

(C) they research the product before the purchase

(D) their opinions are inconsistent with their values

(E) there is no further contact with the seller

(C) they research the product before the purchase

Which of the following is true of global marketing standardization?

(A) It occurs more frequently with consumer products than with industrial goods.

(B) It encourages individualized variation in the product, packaging, and pricing for each nation or local market.

(C) It addresses legal and cultural differences.

(D) It assumes that global consumers increasingly have similar needs.

(E) It reduces profit margins.

(D) It assumes that global consumers

increasingly have similar needs

The three types of marketing research are

(A) explanatory, normative, and descriptive

(B) predictive, normative, and innovative

(C) interactive, diagnostic, and predictive

(D) proactive, interactive, and reactive

(E) exploratory, descriptive, and causal

(E) exploratory, descriptive, and causal

A product is classified as a business product rather than a consumer product based on its

(A) tangible and intangible attributes

(B) life-cycle position

(C) promotion type

(D) pricing strategy

(E) intended use

(E) intended use

Which one of the following changes would most likely motivate a firm to reposition a brand?

(A) Shifting demographics

(B) Stock market fluctuations

(C) An economic downturn

(D) Changes in available financial resources

(E) Rising sales

(A) Shifting demographics

An advertisement for prospective applicants to a college shows individual students along with the slogan "I am getting ready to seize my destiny." The ad appeals to which need in Maslow's hierarchy?

(A) Physiological

(B) Esteem

(C) Social affiliation

(D) Self-actualization

(E) Safety

(D) Self-actualization

If two brands move closer to each other on a perceptual (positioning) map, it means that they have become

(A) less perceptually alike

(B) closer in price

(C) more objectively alike

(D) less likely to be direct competitors

(E) more similarly perceived by consumers

(E) more similarly perceived by consumers

Lutèce Brands, Inc., acknowledges that its French pastries may contribute to health problems in some of its customers, but the company claims that the benefits (such as personal pleasure and taste) outweigh the risks. The company's approach to moral reasoning is best described as

(A) moral idealism

(B) utilitarianism

(C) categorical imperative

(D) enlightened self-interest

(E) situational ethics

(B) utilitarianism

Which of the following lists the correct order of the steps of the target marketing process?

(A) Segmentation, positioning, and targeting

(B) Targeting, segmentation, and positioning

(C) Positioning, targeting, and segmentation

(D) Segmentation, targeting, and positioning

(E) Positioning, segmentation, and targeting

(D) Segmentation, targeting, and positioning

Which of the following types of marketing communications tends to have the shortest-term focus and objectives?

(A) Brand advertising

(B) Public relations

(C) Sales promotion

(D) Event sponsorship

(E) Corporate advertising

(C) Sales promotion

Place the four steps in the marketing research

process in the correct order.

Determine the research design.

Define the problem.

Collect data.

Choose the data collection method

Define the problem.

Determine the research design.

Choose the data collection method.

Collect data.

Demographic Environment

Economic Environment

Technological Environment

-The development of new production techniques

-The growing Spanish speaking population

-Rising mortgage rates

Demographic Environment -The growing Spanish speaking population

Economic Environment -Rising mortgage rates

Technological Environment -The development of new production techniques

Salazar Sweets, SA, sells premium-priced candy products in South America. Faced with losing sales to low-priced competitors, the firm

introduces a new brand, Sellano, at a low price point with a value-oriented promotional message. The new brand is a

(A) flagship brand

(B) flanker brand

(C) private brand

(D) corporate brand

(E) global brand

(B) flanker brand

Anna produces and sells gourmet dog treats. Her total fixed costs for her facility, her salary, and other overhead expenses are $60,000 per year. Each 5-pound bag of dog treats costs her approximately $10 in labor and materials to produce. If she sells her treats for $25 per bag, how many bags of treats does she need to sell

this year to break even?

(A) 1,000 bags

(B) 2,400 bags

(C) 4,000 bags

(D) 5,000 bags

(E) 6,000 bags

(C) 4,000 bags

In researching the Vietnamese market for Teeny Tiny Video's line of miniaturized digital video cameras, Mark Ingram learns that no

Vietnamese firms make a competing product. However, consumers value privacy highly and view unauthorized video recordings as very inappropriate. In the environmental scanning process, Mr. Ingram has found a

(A) regulatory opportunity and a social threat

(B) competitive opportunity and a social threat

(C) social opportunity and a competitive threat

(D) social opportunity and a technical threat

(E) technical opportunity and an economic

threat

(B) competitive opportunity and a social threat

When stating its mission, a company should do which of the following?

(A) Define the company's mission by the products it produces.

(B) Include strategies for all areas of the marketing mix.

(C) Keep the mission statement extremely broad, to avoid missing any opportunities to grow the business.

(D) Keep the statement a tightly held secret known only to the top management.

(E) Define the company by the value it delivers or the needs it fulfills in the marketplace

(E) Define the company by the value it delivers or the needs it fulfills in the marketplace

Which of the following influential entities is an individual making a purchase most likely to interact with on a regular basis?

(A) Online research community

(B) Primary reference group

(C) Customer advisory council

(D) Aspirational reference group

(E) Symbolic reference group

(B) Primary reference group

On a two-dimensional perceptual map used for product positioning, a brand's most direct competitors are those that are

(A) at the highest end of each dimension of the map

(B) closest to the intersection of the dimensions included in the map

(C) closest to the vertical axis

(D) closest to the brand on the map

(E) farthest from the brand on the map

(D) closest to the brand on the map

Which of the following best describes the objective of the marketing concept?

(A) Maximize market share while clearing inventory.

(B) Satisfy consumer needs while achieving organizational objectives.

(C) Produce and sell products at the point where marginal revenue equals marginal cost.

(D) Undercut competitors' prices while remaining profitable.

(E) Develop unique brand positions to maximize profit margins.

(B) Satisfy consumer needs while achieving organizational objectives.

ElectroMax sells highly reliable laser printers to consumers, organizational and governmental markets. Which of the following characteristics likely distinguishes the company's government clients from the other two markets?

(A) Smaller order size and impulse purchasing

(B) Buying centers and infrequent purchases

(C) Individual decision making and rapid purchase processes

(D) Preference for high-quality goods at high price points

(E) Bidding procedures and buy local requirements

(E) Bidding procedures and buy local requirements

EconoKitchen, Inc., sells its pod-based coffee system for $50 in the United States, the lowest price point in the market. Its managers also wish to enter the Brazilian market and the Argentine market as the lowest-priced competitor in those markets. The Brazilian real is trading at 3 to $US1, and the Argentine peso is trading at 15 to $US1. Currently, the lowest competitors' prices are 146 reais in Brazil and 737 pesos in Argentina. In these conditions, EconoKitchen will meet its pricing objective in which of the following countries?

(A) Neither Brazil nor Argentina

(B) Brazil but not Argentina

(C) Argentina but not Brazil

(D) Both Brazil and Argentina

(E) The question is irrelevant, as both countries use $US as national currencies.

(A) Neither Brazil nor Argentina

Which of the following illustrates an application of SoLoMo (Social, Local, and Mobile) marketing?

(A) Joan's smartphone app scans a product code in a traditional retail store and compares prices online.

(B) Mark performs an online search to identify all local stores that carry a desired product.

(C) Debbie's smartphone displays an ad for dress shoes because she searched online for formal apparel.

(D) When Joseph passes a restaurant, his smartphone receives a text with an offer for a discount meal and a list of his social media friends currently in the restaurant.

(E) When Rhonda uses a smartphone app to find a movie at a local theater, the app automatically invites her three best friends and books tickets for those who reply within

10 minutes.

(D) When Joseph passes a restaurant, his smartphone receives a text with an offer for a discount meal and a list of his social media friends currently in the restaurant.

What are the key characteristics of service?

Lack of ownership, intangibility, variability, perishability

What is market orientation?

Identifying customer needs and meeting them

What is sales orientation?

Placing sales team and promotions ahead of customer needs

What is a tying contract?

Forcing a buyer to purchase additional products

What is deceptive advertising?

False or misleading statements by an advertiser

What is price discrimination?

Selling the same product at different prices to different buyers

What is price fixing?

Agreeing with competitors to manipulate prices

What is reciprocity?

Exchanging things for mutual benefit

What is cooperative advertising?

Joint promotional strategy to share marketing costs and to expand awareness of a product

What is a missionary salesperson?

Salesperson providing information in pharmaceuticals, technical or specialized products