Question 1

What elements of Panther's marketing mix might change when going international?

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Question 2

List five possible attributes likely to be found in the value package for Panther Shoes' top-selling shoes.

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Question 3

Panther Shoes manufacturers multiple product lines in the athletic apparel industry. How can Panther benefit from multiple product lines?

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Question 4

How might economic environmental factors affect business for Panther Shoes?

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Question 5

After becoming a successful national brand, Penelope's Pizza has made the decision to expand overseas and enter the global market. Using a globally integrated marketing plan, Penelope's plans to enter the pizza market in Germany, Japan, and India. The CEO wants to use an adaptation plan in the new markets, and thus offer kielbasa pizza in Germany, sushi pizza in Japan, and vegetarian pizza in India. The advertising firm recommends a standardization approach as being more cost efficient and brand identifiable. Which statement, if True, supports the CEO's argument?
A) Traditionally, all three markets are slow to adapt to the idea of fast food, and prefer meals with known ingredients that are familiar to them.
B) The cost of introducing new ingredients to the menu will increase the price of pizza by 15 percent.
C) Marketing surveys show that the under-30 generation in each of the three countries is increasingly eager to consume American fast food as a status symbol of increasing wealth.
D) The current economic slump has decreased the volume of sales for all fast foods on a global basis.
E) Obtaining vendors for new pizza toppings would require the hiring of additional translators in each country.

Accepted Answer

A) Choice A says that these three markets are unlikely to embrace a new fast food product with mostly foreign ingredients. Thus the CEO's plan-to adapt the product and the advertising to focus on cultural preferences and known ingredients that are familiar and readily available locally-makes sense. Choices B and E would support the argument made by the advertising firm for standardization, since adaptation would raise costs. Choice C also supports the advertising firm's stand, as it would emphasize fast food as sold in America, thus standardization. Choice D does not support either argument.

Question 6

Which of the following, if True, would weaken the CEO's position?
A) Young males have shown strong brand loyalty to the current market leader in energy drinks.
B) Young males are especially likely to be opinion leaders on many lifestyle issues.
C) Clothing companies typically segment more precisely than beverage companies.
D) Even effective targeting does not guarantee success when it is followed by ineffective positioning.
E) As compared to other groups, young males spend a high percentage of their income on discretionary purchases.

Accepted Answer

A) The CEO wants to market to young males, but if those people are very loyal to another brand, Choice A, then marketing to them sounds like a waste of resources. Choices B and E could only strengthen the CEO's position. Choice C: Clothing companies are irrelevant. Choice D speaks to the effects of doing targeting well, but the issue here is how to target well.

Question 7

Martin remembers learning about the three major categories of consumer goods while in graduate school. How would shoes and athletic apparel sold by Panther be categorized?

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Question 8

Which of the following, if True, would most strongly support the VP of Operation's position?
A) Industry-leading companies tend to target as wide a market as possible.
B) Female professionals are more likely to stay with a known brand for expensive items such as cars.
C) Female professionals tend to have a strongly positive opinion of Snazzy's current products.
D) Young females consume more energy drinks per person than does the general population.
E) Male professionals often report a lack of energy while at work.

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C) The VP of Operations wants to target female professionals. If those people already have a positive opinion of Snazzy, Choice C, then they would be more likely to try a new Snazzy product. So Choice C strengthens the argument. Choice A: This is about Snazzy, not about industry in general. In any case, Choice A works against the notion of targeting. Choice B is irrelevant because energy drinks would not qualify as an "expensive item." Choice D would be correct if it said "female professionals," but young females are a different group. Choice E suggests that male professionals might be a good target.

Question 9

Martin is surprised at the narrow scope of his responsibilities and he wishes to explain to his boss that marketing is more than just advertising. Help Martin by giving a more complete definition of marketing.

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Question 10

Penelope's Pizza also wants to be at the forefront of current trends and changes in the practice of advertising. The account manager wants to focus on consumer generated advertising via YouTube, Twitter, and Facebook, whereas the CEO prefers to focus on mainstream media. Which of the following, if True, would support the position of the account manager?
A) The number of television cable channels has skyrocketed in recent years.
B) Over the same time, the four major television networks suffered a 20 percent decrease in viewership, leading to a reduction in advertising rates.
C) The emphasis on effectiveness and accountability has lowered the production costs for a 30-second television commercial.
D) Television networks are seeking to ban the feature in recording devices that allows viewers to record television shows while deleting all commercial messages.
E) Young adults, under the age of 30, consume the largest amount of pizza per capita, and are the greatest users of social media.

Accepted Answer

E) Choice E supports the argument of the account manager to focus on consumer generated advertising through social media sites. Since young males use the sites most frequently, and also eat the most pizza, the account manager is reaching a greater number of the target audience. Choices A, B, and C support the position by the CEO, by suggesting that the opportunities for mainstream media advertising have never been higher, during a time when both production and rate costs are falling. Choice D represents a long-term concern for the CEO's position if the networks lose the battle to limit commercial-skipping features, but it isn't really relevant to the current argument between the account manager and the CEO.

Question 11

The president of DVD Heaven has been talking to several other business owners, and now expresses some concerns over developing the e-commerce side of the business. The vice president argues that it is essential for continued growth, but the president argues that there are too many consumer concerns. Which of the following statements, if True, would NOT support the argument being made by the president regarding consumer concerns?
A) Fraudulent businesses are being set up and run on the Internet. Many consumers would rather enter a building that houses a business they know really exists.
B) Identity theft and the theft of credit card numbers can occur when ordering online.
C) Privacy can be compromised on the Internet, and unethical e-businesses can track or sell sensitive information such as buying patterns.
D) College students are five times more likely to order over the Internet than older adults.
E) Customers like to see and feel products before ordering them.

Accepted Answer

D) Choice D would not support the president's argument, but rather the vice president's for expanding the e-commerce side of the business. Younger adults are more comfortable with all aspects of Internet buying and selling, and since DVD Heaven caters to college students, its customers and potential customers would already be comfortable with Internet ordering. Choices A, B, C, and E would all support the president's argument about consumer Internet concerns. Fraudulent businesses, identity theft, privacy issues, and wanting to actually see and hold purchases are all consumer concerns.

Question 12

Why is the role of the marketing manager and the culmination of the marketing plan critical for the company?

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Question 13

Where would athletic shoes fit into the product life cycle?

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Question 14

Martin has begun to look at product differentiation strategies for Panther Shoes. Explain product differentiation.

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Question 15

Which of the following practices would support the CEO's argument?
A) Penelope's Pizza decides to pursue a co-branding partnership with either Pepsi or Coke.
B) Penelope's Pizza employees all must wear the same uniform.
C) Penelope's corporate Web site has links to individual stores for ordering pizza online.
D) All Penelope's Pizza restaurants have an art deco interior design.
E) Penelope's Pizza encourages individual stores to create their own menu options and pricing structure.

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E) Allowing individual stores to create their own unique menus would not promote a coherent brand perception, particularly with multiple stores within an individual city. Choices A, B, and D: A co-branding partnership with an iconic soft drink, standardized employee uniforms, and a common interior design are all factors that could be used to promote a coherent national brand. Choice C, a Web site with local links, could be a feature of an integrated marketing strategy or a more localized approach.

Question 16

When Martin suggested a relationship marketing campaign, his supervisor expressed little need for Panther Shoes to focus on such a campaign. How could Panther Shoes benefit from relationship marketing?

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Question 17

The vice president of marketing suggests opening a Facebook page for DVD Heaven, but the president argues that social media sites would not help its business. Which of the following statements, if True, would support the argument made by the president for NOT using social media sites as part of DVD Heaven's advertising strategy?
A) Social media is changing so rapidly that what is relevant today may easily be outdated tomorrow.
B) Search ads combined with social media campaigns lead to higher results for products than just using general search ads.
C) Brands entered in social networks as topics or members of the community can build customer relations.
D) Social media sites can increase buzz and word of mouth simply by conversation about a product or business.
E) Social media sites provide real-time discussions that can include the latest DVDs available or recommendations for DVD purchases.

Accepted Answer

A) Choice A would be the only statement that supports the argument of the president for not using social media advertising, because it is changing so rapidly that strategies developed today may not be relevant in the near future. Choices B, C, D, and E all would support the argument made by the vice president for using social media sites. Choice B emphasizes that combining social media and general search ads leads to better results than general search ads alone. Choices C and D indicate that social media sites increase brand recognition and customer relations. Choice E supports the vice president's argument in that real-time discussions can lead to increased buzz, resulting in increased sales.

Question 18

Which of the following, if True, would support the CEO's position?
A) Snazzy decided that producing a line of energy drinks would be more profitable than attempting to penetrate international markets.
B) Young males, as a group, consume more energy drinks than any other market segment.
C) Energy drinks cost more per ounce than other popular beverages.
D) Energy drink manufacturers have recently tried to associate their product with positive social causes.
E) Different companies define "young" differently.

Accepted Answer

B) The CEO wants to target young males. If young males are heavy consumers of energy drinks, Choice B, then the CEO's approach looks better. Choices A, C, and D concern the decision to produce energy drinks at all, and not the issue of which segments to target. Choice E suggests that the CEO's segment definition might be imprecise, so Choice E could only hurt the CEO's position. But we don't care about everyone's definition of "young," anyway. We just care about Snazzy Sodas' definition.

Question 19

In his first staff meeting, a heated discussion erupts over the need to develop new products. The product manager explains that they have had a loyal following of consumers and do not need to develop new products. Others disagree. How should Martin respond?

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Question 20

Martin realizes that he knows less about the company than he had thought. He is not sure if Panther Shoes is selling consumer or industrial products. Can you help Martin clarify that?

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Quiz 11: Marketing Processes and Consumer Behavior