Question 1

To appeal to a new target market,a coffee manufacturer changed the product's package design,reformulated the coffee,began advertising price discounts in magazines,and started distributing samples of the new product at coffee shops.In this scenario,the coffee manufacturer changed the _____ in order to boost sales.
A) product volume
B) marketing mix
C) product life cycle
D) product line
E) brand benefits

Accepted Answer

Companies have many strategic options they can employ to enhance the product/service concept and effect marketing exchanges (make sales). Marketers categorize these options under four headings: (1) product, (2) price, (3) distribution, and (4) communication. The way the marketer mixes and blends these different elements creates the company's marketing strategy-often called the marketing mix.

Question 2

The North American Industry Classification System (NAICS)codes:
A) will soon be replaced by the strategic industrial classification.
B) are published by the North American Treaty Alliance.
C) organize all industries into 20 broad sectors such as mining, manufacturing, wholesale trade, and information.
D) have no relevance for industries outside the United States.
E) were developed in co-operation with Brazil and China.

Accepted Answer

NAICS organizes all the industries into 20 broad sectors such as mining, manufacturing, wholesale trade, and information.

Question 3

The _____ refers to the consumer's perception of the product as a bundle of values of utilitarian and symbolic values that satisfy functional,social,psychological,and other wants and needs.
A) product concept
B) marketing mix
C) product life cycle
D) communications mix
E) product differentiation strategy

Accepted Answer

The total product concept is the consumer's perception of a product as a bundle of utilitarian and symbolic values that satisfy functional, social, psychological, and other wants and needs.

Question 4

During the _____ stage of the product life cycle,competitors jump into the market,but the company that established the early leadership position reaps the biggest rewards.
A) revitalization
B) introductory
C) maturity
D) growth
E) decline

Accepted Answer

When sales volume begins to rise rapidly, the product enters the growth stage. Competitors jump into the market, but the company that established the early leadership position reaps the biggest rewards.

Question 5

A product which is in the introductory stage of the product life cycle will most likely target _____.
A) laggards
B) millennials
C) late adopters
D) Generation X
E) early adopters

Accepted Answer

When a company introduces a new product category, nobody knows about it. By using market segmentation, though, the company may try to identify those prospects who are known to be early adopters-willing to try new things-and begin promoting the new category directly to them.

Question 6

Which of the following statements about the target marketing process is true?
A) The target marketing process solely determines the budget of a company's advertising activities.
B) The first step in the target marketing process is to develop primary demand in a target market.
C) To perform the target marketing process correctly, an advertiser must select only one target market.
D) The target marketing process begins with determining the availability of advertising resources.
E) The first step in target marketing is to assess which of the newly created segments offer the greatest profit potential.

Accepted Answer

The first step in target marketing is to assess which of the newly created segments offer the greatest profit potential and which can be most successfully penetrated.

Question 7

The _____ stage of the product life cycle is characterized by rapid market expansion as more and more customers,stimulated by mass advertising and word of mouth,make their first,second,and third purchases.
A) growth
B) introductory
C) maturity
D) decline
E) revitalization

Accepted Answer

When sales volume begins to rise rapidly, the product enters the growth stage. This period is characterized by rapid market expansion as more and more customers, stimulated by mass advertising and word of mouth, make their first, second, and third purchases.

Question 8

A fast food restaurant buys the liquid concentrate used to make fountain drinks from a supplier.Then,it sells the reconstituted drink to its customers.The restaurant is an example of a(n)_____.
A) consumer market
B) government market
C) reseller
D) wholesaler
E) early adopter

Accepted Answer

Many business marketers sell to resellers, such as retail businesses.

Question 9

Which of the following is an example of an equipment-based service?
A) Waitressing
B) Hair dressing
C) Management consulting
D) Child care
E) Car rental services

Accepted Answer

Equipment-based services involve the use of specialized equipment. In contrast, an ad agency, a law firm or a bank, is a people-based service; it relies on the creative talents and marketing skills of individuals.

Question 10

Which of the following activities is most likely to take place in a business market?
A) Sale of a personal toolkit for home repairs
B) Renting an apartment to a college student
C) Hiring a babysitter for the evening
D) Sale of buttons and zippers to a jeans manufacturing company
E) A financial transaction at a law firm between a lawyer and his client

Accepted Answer

Business markets include manufacturers, government agencies, wholesalers, retailers, banks, and institutions that buy goods and services to help them operate.

Question 11

Which of the following is an example of a people-based service?
A) Dry cleaning
B) DVD vending kiosks
C) Management consulting
D) Drive-through car washing services
E) Automated teller machines

Accepted Answer

An ad agency, like a law firm or a bank, is a people-based service; it relies on the creative talents and marketing skills of individuals.

Question 12

During the _____ phase of the product life cycle,the company incurs considerable costs for educating customers,building widespread dealer distribution,and encouraging demand.
A) decline
B) introductory
C) maturity
D) growth
E) revitalization

Accepted Answer

During the introductory phase of any new product category, the company incurs considerable costs for educating customers, building widespread dealer distribution, and encouraging demand.

Question 13

Which of the following is true of business markets?
A) They have more buyers than consumer markets.
B) They use a more complex process than consumer markets to evaluate new products.
C) They can be segmented using psychological variables.
D) They depend only on price and quality to make purchase decisions.
E) They do not employ professional buyers.

Accepted Answer

When businesspeople evaluate new products, they use a process far more complex than the consumer purchase process.

Question 14

_____ refers to sales promotion efforts aimed at the retail trade.
A) Intensive distribution
B) A pull strategy
C) Direct marketing
D) A push strategy
E) Selective demand

Accepted Answer

A push strategy refers to sales promotion efforts aimed at the retail trade to encourage distributors and dealers to stock, display, and advertise the new products.

Question 15

The _____ process determines the content,look,and feel of product advertisements.
A) target marketing
B) distribution
C) brand equity creation
D) segmentation
E) benchmarking

Accepted Answer

Once the market segmentation process is complete, a company can proceed to the target marketing process. This will determine the content, look, and feel of its advertising.

Question 16

Consumer demand for a whole product category and not just the company's own brand is called _____ demand.
A) primary
B) selective
C) perceptible
D) collateral
E) aggregate

Accepted Answer

Primary demand refers to consumers' demand for the whole product category, not just the company's own brand.

Question 17

The major activities of the _____ element of a marketing mix include the way the good or service is designed and classified,positioned,branded,and packaged.
A) utility
B) price element
C) distribution
D) product element
E) growth

Accepted Answer

In developing a marketing mix, marketers generally start with the product element. Major activities typically include the way the product is designed and classified, positioned, branded, and packaged.

Question 18

In the _____ stage of the product life cycle,the marketplace becomes saturated with competing products and the number of new customers dwindles,so industry sales reach a plateau.
A) decline
B) introductory
C) maturity
D) growth
E) revitalization

Accepted Answer

In the maturity stage, the marketplace becomes saturated with competing products and the number of new customers dwindles, so industry sales reach a plateau.

Question 19

If products are not revitalized,they will enter the _____ stage of the product life cycle due to obsolescence,new technology,or changing consumer tastes.
A) pioneer
B) decline
C) maturity
D) saturation
E) growth

Accepted Answer

If they're not revitalized, products will finally enter the decline stage of the product life cycle because of obsolescence, new technology, or changing consumer tastes.

Question 20

In the _____ stage of the product life cycle,competition intensifies and profits diminish.Companies increase their promotional efforts but emphasize selective demand.
A) decline
B) introductory
C) maturity
D) growth
E) revitalization

Accepted Answer

In the maturity stage of the product life cycle, competition intensifies and profits diminish. Companies increase their promotional efforts but emphasize selective demand to impress customers with the subtle advantages of their particular brand.

Quiz 6: Market Segmentation and the Marketing Mix

The North American Industry Classification System (NAICS) codes:

The _____ refers to the consumer's perception of the product as a bundle of values of utilitarian and symbolic values that satisfy functional,social,psychological,and other wants and needs.

During the _____ stage of the product life cycle,competitors jump into the market,but the company that established the early leadership position reaps the biggest rewards.

A product which is in the introductory stage of the product life cycle will most likely target _____.

Which of the following statements about the target marketing process is true?

The _____ stage of the product life cycle is characterized by rapid market expansion as more and more customers,stimulated by mass advertising and word of mouth,make their first,second,and third purchases.

A fast food restaurant buys the liquid concentrate used to make fountain drinks from a supplier.Then,it sells the reconstituted drink to its customers.The restaurant is an example of a(n) _____.

Which of the following is an example of an equipment-based service?

Which of the following activities is most likely to take place in a business market?

Which of the following is an example of a people-based service?

During the _____ phase of the product life cycle,the company incurs considerable costs for educating customers,building widespread dealer distribution,and encouraging demand.

Which of the following is true of business markets?

_____ refers to sales promotion efforts aimed at the retail trade.

The _____ process determines the content,look,and feel of product advertisements.

Consumer demand for a whole product category and not just the company's own brand is called _____ demand.

The major activities of the _____ element of a marketing mix include the way the good or service is designed and classified,positioned,branded,and packaged.

In the _____ stage of the product life cycle,the marketplace becomes saturated with competing products and the number of new customers dwindles,so industry sales reach a plateau.

If products are not revitalized,they will enter the _____ stage of the product life cycle due to obsolescence,new technology,or changing consumer tastes.

In the _____ stage of the product life cycle,competition intensifies and profits diminish.Companies increase their promotional efforts but emphasize selective demand.