Deck 3: Collecting Information and Forecasting Demand

Question 1

A company can take several steps to improve the quality of its marketing intelligence. If the company purchases competitive products for study, attends open houses and trade shows, and reads competitors' published reports and stockholder information, the company is using ________ to improve the quality of its marketing intelligence.

A) advisory panels
B) customer feedback systems
C) intermediaries
D) sales force surrogates
E) external networks

Answer 1

E

Question 2

Marketing managers rely on internal reports on orders, sales, prices, inventory levels, receivables, payables, and more. By analyzing this information, they can spot

A) competitive strategies.
B) macro-markets.
C) micro-markets.
D) opportunities and problems.
E) consumer demographic units.

Answer 2

D

Question 3

There are five main ways that marketers can find relevant online information on competitors' products and weaknesses, and summary comments and overall performance rating of a product, service, or supplier. ________ are concentrated in financial services and high-tech products that require professional knowledge and allow comparison between expert and consumer opinion.

A) Customer complaint sites
B) Distributor or sales agent feedback sites
C) Omnibus poll sites
D) Independent customer goods and service reviews
E) Combo-sites offering customer reviews and expert opinions

Answer 3

E

Question 4

When a magazine collects valuable feedback on each issue from a group of readers and subscribers, which step has it taken to improve the quality of its marketing intelligence?

A) networking externally
B) training and motivating the sales force to report on new developments
C) setting up a customer advisory panel
D) motivating intermediaries to pass along important information
E) purchasing information from outside suppliers

Question 5

The company's marketing information system should be a cross between what managers think they need, what managers really need, and

A) what the competition is doing.
B) what is economically feasible.
C) what consumers are willing to share.
D) what is acceptable industry practice.
E) what the marketing research department is able to do.

Question 6

Zellers was able to mine the large HBC customer database when it launched the Mossimo fashion line in its stores. The company was able to identify customers who typically did not purchase fashions from discount department stores. This is an example of a retailer using

A) sales information systems.
B) a marketing intelligence system.
C) the order-to-payment cycle.
D) data mining.
E) information needs probes.

Question 7

________ consists of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers.

A) A marketing information system
B) A marketing database
C) A promotional campaign
D) A marketing intelligence system
E) A marketing research system

Question 8

When ConAgra initiated a study with some of its retailers, such as Safeway, Kroger, and Walmart, to study how and why people buy its foods, ConAgra was using which of the following steps to improve its marketing intelligence system?

A) A company can motivate distributors, retailers, and other intermediaries to pass along important intelligence.
B) A company can train and motivate the sales force to spot and report new developments.
C) A company can take advantage of government data sources.
D) A company can set up an advisory panel.
E) A company can network externally.

Question 9

Assume that you are a marketing information specialist for a large clothing manufacturer. Your task is to get functional managers to use the company's marketing information system (MIS) on a more regular basis. Which of the following reasons will be the most compelling?

A) All information is good information.
B) Not all of the information gathered will be accurate.
C) People and procedures will be needed to gather, analyze, and distribute.
D) Databases aid in "carpet bombing".
E) Companies with superior information enjoy a competitive advantage.

Question 10

As the manager of an organization that is attempting to build a marketing information system (MIS), you have been informed that a MIS is built upon three fundamental information sources. The sources are ________, marketing intelligence activities, and marketing research.

A) internal company records
B) secondary data from government sources such as the Better Business Bureau
C) databases found on the Internet
D) consultant reports
E) external records and documents

Question 11

As a manager you would most likely use an internal records system to supply ________ data, whereas, you would use your marketing intelligence system to supply happenings data.

A) psychographic
B) primary
C) results
D) logistical
E) demand

Question 12

Statistics Canada provides an in-depth look at the population swings, demographic groups, and changing family structure of Canadians. Which of the following steps to improve the quality of company marketing intelligence system would be most closely associated the above illustration?

A) A company can purchase information from outside suppliers.
B) A company can use online customer feedback systems to collect data.
C) A company can take advantage of government data sources.
D) A company can network externally.
E) A company can use its sales force to collect and report data.

Question 13

The internal records system supplies results data, but the marketing intelligence system supplies ________ data.

A) premium
B) concurrent
C) research
D) secondary
E) happenings

Question 14

The major responsibility for identifying significant marketplace changes falls to

A) the Canadian Marketing Association.
B) industry lobby groups.
C) the marketing research industry.
D) the company's marketers.
E) Statistics Canada.

Question 15

What type of internal record allows companies to quickly access information on customers' purchase recency, frequency, and monetary value?

A) information needs probes
B) customer database
C) sales information systems
D) order-to-payment cycle
E) shipping and billing documents

Question 16

A ________ is a set of procedures and sources managers use to obtain everyday information about developments in the marketing environment.

A) marketing intelligence system
B) marketing information system
C) product management system
D) marketing research system
E) vertical system

Question 17

DuPont commissioned marketing studies to uncover personal pillow behaviour for its Dacron Polyester unit that supplies filling to pillow makers and sells its own Comforel brand. Which of the following was revealed by research to be the primary challenge faced by DuPont in expanding sales in the pillow industry?

A) concerns about rising prices
B) people don't want to give up their old pillows
C) the lack of a favourable reputation in the industry
D) competition from China
E) the smell associated with polyester

Question 18

When a marketer "mines" his or her company's database, fresh insights can be gained into neglected customer segments, ________, and other useful information.

A) possible new inventions
B) recent customer trends
C) long-term competitive trends
D) possible new technologies
E) new primary data possibilities

Question 19

The heart of the internal records system is the

A) service consideration.
B) asset acquisition process.
C) information liquidity ratio.
D) customer database.
E) order-to-payment cycle.

Question 20

Marketers have extensive information about how consumption patterns vary across countries. On a per capita basis, the ________ smoke the most cigarettes.

A) Austrians
B) Irish
C) French
D) Greeks
E) Swiss

Question 21

Diversity goes beyond ethnic markets. Almost ________ percent of Canadians have disabilities, and they constitute a market for delivery and home-care services.

A) 28
B) 15
C) 5
D) 9
E) 12

Question 22

During recession, the market demand curve which is a function of marketing expenditure ________.

A) shifts upward
B) becomes vertical
C) remains unaffected
D) shifts downward
E) slopes downward

Question 23

The French-Canadian minority deserves special attention because of its large size and its dispersion through several provinces. It comprises 80 percent of Quebec households and ________ percent of Canadian households.

A) 20
B) 35
C) 22
D) 11
E) 19

Question 24

Examples of ________ that were considered to be successful were Crocs clogs, Elmo TMX dolls, and Pokemon gifts and toys.

A) megatrends
B) styles
C) fashions
D) fads
E) trends

Question 25

Only one level of industry marketing expenditure will actually occur. The market demand corresponding to this level is called the ________.

A) company demand
B) market potential
C) market share
D) market minimum
E) market forecast

Question 26

A growing population does not mean growing markets unless these markets have

A) sufficient purchasing power.
B) a significant boomer market.
C) a stable death rate.
D) an insufficient food supply.
E) global trade policies.

Question 27

As the advertising director for a young, urban magazine, Leitrim McElroy must often remind his clients that ________ are typically cynical about hard-sell marketing pitches that promise more than they can deliver.

A) Generation X
B) Baby boomers
C) War babies
D) Generation Y
E) Echo boomers

Question 28

A marketer such as Gerber or Mattel should be very interested in ________, a country with a very young and rapidly expanding population.

A) Japan
B) Spain
C) the United Kingdom
D) France
E) Mexico

Question 29

96 percent of immigrants in Canada live in metropolitan areas. Which city has attracted the largest percentage and is considered Canada's most ethnically diverse?

A) Edmonton
B) Toronto
C) Ottawa
D) Montreal
E) Vancouver

Question 30

A ________ is a direction or sequence of events that has some momentum and durability; the shape of the future is revealed and many opportunities are provided.

A) style
B) fad
C) fashion
D) trend
E) megatrend

Question 31

A ________ is a conservative estimate of the expected volume of sales, primarily for making current purchasing, production, and cash flow decisions.

A) company sales forecast
B) sales quota
C) sales budget
D) company sales potential
E) market potential

Question 32

The distance between the market minimum and the market potential shows the overall ________.

A) marketing sensitivity of demand
B) market share of the firm
C) market forecast of the firm
D) product-penetration percentage
E) sales quota

Question 33

________ have been described as "large social, economic, political and technological changes [that] are slow to form, and once in place, they influence us for some time between seven and ten years, or longer".

A) Megatrends
B) Styles
C) Trends
D) Fashions
E) Fads

Question 34

Vancouver-based lululemon was born to serve people particularly upscale young women in the under-30 group. Which trend has been largely responsible for this success?

A) anti-bigness
B) physical fitness and well-being
C) concern for the environment
D) living for today
E) tele-commuting

Question 35

The sales goal set for a product line, company division, or sales representative of an organization is called ________.

A) market potential
B) sales quota
C) sales budget
D) company sales forecast
E) company sales potential

Question 36

A ________ is "unpredictable, short-lived, and without social, economic, and political significance."

A) fashion
B) fad
C) style
D) trend
E) megatrend

Question 37

Canada's ethnic diversity is a factor that falls under which component of a marketer's macro environment?

A) natural
B) social-cultural
C) demographic
D) economic
E) political-legal

Question 38

A low market-penetration index indicates ________.

A) substantial growth potential for all firms
B) it will be expensive for the firms to attract the few remaining prospects
C) the rival firms try to capture greater market share by lowering their product price
D) the profit margins of the firms decline
E) the firms cannot raise demand substantially by raising its market expenditure

Question 39

A company can expect to expand its market share to a large extent when ________.

A) it has a low market potential
B) its product-penetration percentage is high
C) its share-penetration index is high
D) it has a high market-penetration index
E) its share-penetration index is low

Question 40

________ is the limit approached by market demand as industry marketing expenditures approach infinity for a given marketing environment.

A) Sales budget
B) Market potential
C) Company sales forecast
D) Sales quota
E) Company sales potential

Question 41

________ is the maximum sales available to all firms in an industry during a given period, under a given level of industry marketing effort and environmental conditions.

A) Total market potential
B) Company demand
C) Market demand
D) Company sales potential
E) Sales quota

Question 42

People vary in their attitudes toward society and react accordingly. ________ are a major market for movies, music, surfing, and camping.

A) Changers
B) Escapers
C) Developers
D) Preservers
E) Makers

Question 43

________ is the company's estimated share of market demand at alternative levels of company marketing effort in a given time period.

A) Sales budget
B) Market demand
C) Company demand
D) Company sales potential
E) Market potential

Question 44

The ________ household consists of a husband, wife, and children (and sometimes grandparents).

A) "diverse"
B) "extended"
C) "revised"
D) "traditional"
E) "modern"

Question 45

________ is the sales limit approached by company demand as company marketing effort increases relative to that of competitors.

A) Sales budget
B) Market demand
C) Company demand
D) Market potential
E) Company sales potential

Question 46

According to information presented in the text, which of the following countries is surprisingly a very good market for Lamborghini automobiles (costing more than $150 000) because of the number of wealthy families that can afford expensive cars?

A) Portugal
B) Switzerland
C) Holland
D) Russia
E) Greece

Question 47

Black and Decker Canada markets a line of inexpensive and smaller household appliances. Which of the following household types would present them with the most potential?

A) DINKs (double-income, no kids)
B) nuclear families
C) blended families
D) SSWDs (single, separated, widowed, divorced)
E) traditional households

Question 48

In which of the following economies would we expect to find few opportunities for marketers?

A) industrial economies
B) raw-material-exporting economies
C) subsistence economies
D) land-locked economies
E) industrializing economies

Question 49

Which country is poised to spawn the next earthshaking technology innovation, given its high-speed Internet access, world-class universities, and venture capital industry?

A) China
B) Mexico
C) India
D) Brazil
E) Egypt

Question 50

The brand manager of a popular household cleaning product has proposed a uniform promotional strategy across Canada. Which fact would you use to persuade this manager to consider a separate strategy for French-Canadians?

A) French-Canadians are now more interested in materialism and nationalism.
B) French-Canadians are becoming more like other Canadians.
C) French-Canadians are more responsive to messages about home and church.
D) French-Canadians are unique in lifestyle, attitudes, and product usage.
E) French-Canadians only comprise 23 percent of Canadian households.

Question 51

Canada has one of the world's highest percentages of citizens (___ percent) who have some post-secondary education.

A) 30
B) 40
C) 50
D) 60
E) 70

Question 52

Visible minorities (defined as ______) in Canada have grown substantially since 2001.

A) Asian and South Asian
B) non-Caucasian
C) Asian
D) non-Caucasian and non-Aboriginal
E) non-Aboriginal

Question 53

Today, corporations need to make sure that they are good corporate citizens and that their consumer messages are honest. Such a view would be consistent with which of the following views?

A) views of society
B) views of others
C) views of the universe
D) views of organizations
E) views of themselves

Question 54

An efficient method of estimating area market potentials makes use of the ________, developed by the U.S. Bureau of the Census in conjunction with the Canadian and Mexican governments. It classifies all manufacturing into 20 major industry sectors and further breaks each sector into a six-digit, hierarchical structure.

A) Thomson Reuters Business Classification
B) Global Industrial Classification Standard
C) North American Product Classification System
D) North American Industry Classification System
E) Industry Classification Benchmark

Question 55

According to the information found in the social-cultural environment, with respect to views of others, ________ are considered to be things that allow people who are alone to feel they are not (e.g., television, home video games, and chat rooms on the Internet).

A) relationship avoidance
B) primary products
C) secondary products
D) social surrogates
E) subliminal fantasies

Question 56

You've been tasked by your company to develop marketing strategies for the South Asian community in Toronto. What fact about this target will have the biggest influence on your planning?

A) "Off-the-rack" clothing does not fit Asians well.
B) Asians are not a homogenous group.
C) All Asians speak Punjabi.
D) All Asians share the same identities and values.
E) Sri Lankans and Koreans have much in common.

Question 57

Suppose an individual buyer purchases three pairs of shoes each year at $50 each pair and that there are 50 million such consumers in the economy. Compute the total market potential for shoes.

A) $6,500 million
B) $7500 million
C) $5000 million
D) $75 billion
E) $10 000 million

Question 58

People vary in their attitudes toward their society. ________ usually live more frugally, drive smaller cars, and wear simpler clothing.

A) Seekers
B) Escapers
C) Changers
D) Developers
E) Makers

Question 59

Which type of household living arrangement makes up the largest proportion of Canadian households?

A) single person households
B) blended family households
C) common-law couples
D) couples with no children
E) couples with children

Question 60

If a consumer lives the lifestyle of a "pleasure seeker" or goes on a "self-realization" quest, he or she is expressing what is called

A) views of themselves.
B) views of society.
C) views of others.
D) views of organizations.
E) views of the universe.

Question 61

With respect to the shortage of raw materials, oil is classified as ________ resources.

A) infinite
B) near finite
C) absolute
D) finite nonrenewable
E) finite renewable

Question 62

One finite nonrenewable resource, ________, has created serious problems for the world economy. As oil prices soar, companies search for practical means to harness solar, nuclear, wind, and other alternative energies.

A) coffee
B) oil
C) sugar
D) air
E) water

Question 63

Each society contains ________, groups with shared values emerging from their special life experiences or circumstances.

A) cliques
B) subcultures
C) consumer bundles
D) behavioural niches
E) demographic segments

Question 64

Canadians and Americans hold many values in common. However, there are social value differences that can affect marketers. Which of the following is a value shared more by Canadians than Americans?

A) striking it rich
B) tolerance of individual diversity
C) working hard and taking risks
D) striving for happiness
E) maintaining social order

Question 65

An important force affecting business is the movement of citizens and government organized to strengthen the rights and powers of buyers in relation to sellers.

A) environmental movement
B) ethical reform movement
C) self-rights movement
D) consumerist movement
E) lobbyist movement

Question 66

Greenhouse gases in the atmosphere, the depletion of the ozone layer, and the growing shortages of water, are all examples of the deterioration of the

A) technological environment.
B) political-legal environment.
C) natural environment.
D) economic environment.
E) socio-cultural environment.

Question 67

Marketers should note that Canadians focus less on what products and brands say about us and more on

A) where the products are available.
B) what the products cost.
C) what friends and family will think of the products.
D) what the products do for us.
E) what company made the products.

Question 68

A recent survey of 20 countries by Synovate and BBC showed that over ________ percent of the world's population is concerned about climate change.

A) 77
B) 55
C) 70
D) 48
E) 68

Question 69

A staggering 10 billion applications were downloaded from the Apple App Store barely two-and-a-half years following its launch in July 2008. Which trend in the technology environment does this best represent?

A) creative destruction and the economy
B) increased regulation of technological change
C) the accelerating pace of change
D) unlimited opportunities for innovation
E) varying research and development budgets

Question 70

Which type of beliefs or values are more open to change?

A) core beliefs
B) cultural beliefs
C) organizational beliefs
D) secondary beliefs
E) societal beliefs

Question 71

Frito-Lay attributed a recent rise in chip-snacking by grown-ups to

A) core beliefs and values.
B) celebrity endorsements.
C) bringing them first in as teenagers.
D) the boomers' refusal to grow up.
E) the removal of trans fats.

Question 72

When MADD developed and promoted the Good Host kit, what secondary belief and value were they attempting to reinforce?

A) Alcohol should not be sold.
B) Friends don't let friends drive drunk.
C) A good host always gives presents.
D) People should not drink alcohol at parties.
E) Guests should be provided with toiletries.

Question 73

Although core values are fairly persistent, cultural swings do take place. ________ and other cultural phenomena had a major impact on young people's lifestyle and life goals in the 1960s.

A) G.I. Joe action characters
B) George McGovern
C) Ford Motor Company
D) The infomercial
E) The Beatles

Question 74

Which of the following subcultures offers the greatest opportunity to marketers?

A) a softball team
B) teenagers
C) a Boy Scout troop
D) frequent flyers
E) a university alumni association

Question 75

_____s, video games, and etc. are reducing attention to traditional media, as well as face-to-face social interaction.

A) Mobile phone
B) Personal digital assistant
C) Chip implant
D) iPod
E) Solar-powered car

Question 76

Siobhaun rose rapidly in her organization and was the youngest CEO in the company's history. Her self-declared purpose as a leader was to make her company an integral part of the Canadian way of life and to eventually enter into public service. Siobhaun would be characterized as being a

A) maker.
B) taker.
C) preserver.
D) seeker.
E) reaper.

Question 77

________ legislation has four main purposes: to protect companies from unfair competition; to protect consumers from unfair business practices; to protect the interests of society from unbridled business behaviour; and to charge businesses with the social costs of their products or production process.

A) Business
B) Bi-partisan
C) Consumer
D) Activist
E) Global

Question 78

The ________ method of determining area market potential calls for identifying all the potential buyers in each market and estimating their potential purchases.

A) market-buildup
B) group-discussion
C) market-test
D) brand development index
E) multiple-factor index

Question 79

Major new technologies stimulate the

A) natural environment.
B) unemployment rate.
C) rate of creative destruction.
D) economy's growth rate.
E) growth of special interest groups.

Question 80

Which industry is often targeted as the biggest contributor to global warming, and under heavy pressure to become more environmentally friendly?

A) the packaged-food industry
B) the pharmaceutical industry
C) the automobile industry
D) the electricity generation industry
E) the personal electronics industry